§ 8-1.5-3-8 — Rates and charges; payment of rates, charges, and fees by occupant of property that is not property owner

Indiana § 8-1.5-3-8

• Jurisdiction: Indiana
• Art. 1.5: MUNICIPAL UTILITIES
• Ch. 3: Operation of Municipally Owned Utilities Generally

Text

(a) A municipality owning a utility under this
chapter shall furnish reasonably adequate services and facilities.
(b) The rates and charges made by a municipality for a service
rendered or to be rendered, either directly or in connection therewith,
must be nondiscriminatory, reasonable, and just.
(c) "Reasonable and just rates and charges for services" means rates
and charges that produce sufficient revenue to:
(1) pay all the legal and other necessary expenses incident to the
operation of the utility, including:
(A) maintenance costs;
(B) operating charges;
(C) upkeep;
(D) repairs;
(E) depreciation;
(F) interest charges on bonds or other obligations, including
leases; and
(G) costs associated with the acquisition of utility property
under IC 8-1.5-2;
(2) provide a sinking fund for the liquidation of bonds or other
obligations, including leases;
(3) provide a debt service reserve for bonds or other obligations,
including leases, in an amount established by the municipality,
not to exceed the maximum annual debt service on the bonds or
obligations or the maximum annual lease rentals;
(4) provide adequate money for working capital;
(5) provide adequate money for making extensions and
replacements to the extent not provided for through depreciation
in subdivision (1); and
(6) provide money for the payment of any taxes that may be
assessed against the utility.
(d) It is the intent of this section that the rates and charges produce
an income sufficient to maintain the utility property in a sound physical
and financial condition to render adequate and efficient service. Rates
and charges too low to meet these requirements are unlawful.
(e) The board may recommend to the municipal legislative body
rates and charges sufficient to include a reasonable return on the utility
plant of the municipality.
(f) Rates and charges established under this section are subject to
the approval of:
(1) the municipal legislative body by ordinance; and
(2) the commission, in accordance with the procedures set forth
in IC 8-1-2.
The commission shall approve rates and charges that are sufficient, in
addition to the cash revenue requirements set forth in subsection (c), to
include a reasonable return on the utility plant of the municipality if the
legislative body so elects.
(g) Except for a municipally owned utility taxed under IC 6-1.1-8-3,
the commission shall approve rates and charges sufficient to
compensate the municipality for taxes that would be due the
municipality on the utility property were it privately owned. These rates
and charges in lieu of taxes may be transferred to the municipal general
fund, if the legislative body so elects.
(h) The commission shall grant a request that an increase in rates
and charges not be effective until after the occurrence of a future event
if the legislative body so requests.
(i) A municipality that acquires and operates a utility under IC 8-1.5-2 by exercising the power of eminent domain may not impose a
special rate, charge, surcharge, or other fee, other than rates and
charges approved under this section or otherwise authorized by law, on
the customers of the utility in order to pay for the costs associated with
acquiring the utility through the exercise of the power of eminent
domain.
(j) This subsection does not apply to services rendered by a sewage
works that is subject to IC 36-9-23 or to IC 36-9-25. This subsection
also does not apply to services rendered by a department of public
utilities created by IC 8-1-11.1 or to services rendered by a utility
company owned, operated, or held in trust by a consolidated city. This
subsection applies to property that is served by a municipally owned
utility and that is occupied by someone other than the owner of the
property. Upon applying for utility service from a municipally owned
utility for property subject to this subsection, the person occupying the
property shall provide the municipally owned utility with the name and
contact information of the owner or manager of the property. Subject
to subsection (k), all rates, charges, and other fees for services rendered
by a municipally owned utility to a property that is subject to this
subsection are payable by the person occupying the property if the
account or other customer or billing records maintained by the
municipally owned utility for the property indicate that:
(1) the property is occupied by someone other than the owner; and
(2) the person occupying the property is responsible for paying
the rates, charges, and fees assessed for the services rendered by
the municipally owned utility with respect to the property.
Rates, charges, and fees assessed for services rendered by a
municipally owned utility with respect to property occupied by
someone other than the owner of the property do not constitute a lien
against the property.
(k) With respect to property that is served by a municipally owned
utility and that is occupied by someone other than the owner of the
property, subsection (j) does not:
(1) prohibit a municipal legislative body from imposing any:
(A) requirement for a deposit to ensure payment by the person
occupying the property of the rates, charges, and fees assessed
for the services rendered by the municipally owned utility with
respect to the property; or
(B) other requirement to ensure the creditworthiness of the
person occupying the property as the account holder or
customer with respect to the property;
that the municipal legislative body may lawfully impose; or
(2) abrogate or limit the authority of the owner of a multi-unit
building to engage in electrical submetering under IC 8-1-2-36.5,
subject to:
(A) the owner's qualification to engage in submetering under IC 8-1-2-36.5 and 170 IAC 4-5; and
(B) the owner's compliance with the requirements for
submetering set forth in IC 8-1-2-36.5 and 170 IAC 4-5.
(l) With respect to property that is served by a municipally owned
utility and that is occupied by someone other than the owner of the
property, subsection (k) does not allow a municipal legislative body to
impose a requirement that the owner of the property must:
(1) ensure the creditworthiness of the person occupying the
property; or
(2) accept responsibility for charges incurred by the person
occupying the property;
by cosigning an agreement or by any other method.
As added by Acts 1982, P.L.74, SEC.1. Amended by
P.L.105-1983, SEC.2; P.L.35-1990, SEC.28; P.L.172-2009, SEC.5;
P.L.105-2019, SEC.1; P.L.161-2020, SEC.1.