§ 8-1.5-3-8.3 — Objection to extraterritorial rates and charges; review by commission

Indiana § 8-1.5-3-8.3

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

Text

3. (a) This section applies to a utility that
provides service to property located outside the corporate boundaries
of the municipality.
(b) As used in this section:
(1) "utility"; and
(2) "works";
have the meaning set forth for those terms in section 8.1 of this chapter.
(c) This subsection applies if a municipal legislative body adopts an
ordinance under section 8.1 of this chapter or under IC 36-9-23-26 that
is in effect on March 31, 2012, and that imposes rates and charges on
users of the works for service to property located outside the corporate
boundaries of the municipality that exceed by more than fifteen percent
(15%), but not more than fifty percent (50%), the rates and charges
imposed on users of the works for service to property located within the
corporate boundaries of the municipality. Not later than September 30,
2012, the municipality may petition the commission to approve the
percentage difference between rates and charges established in the
ordinance for property within and property outside the corporate
boundaries. In the petition, the municipality shall set forth the
following:
(1) The date on which the ordinance took effect.
(2) The percentage difference between rates and charges imposed
on users of the works for service to property located outside the
corporate boundaries of the municipality and to property located
within the corporate boundaries of the municipality.
(3) Whether the works that is the subject of the ordinance is a
water utility works, a wastewater utility works, or both a water
and wastewater utility works.
If the commission determines that a petition filed under this subsection
satisfies the requirements of this subsection, the commission shall
approve the petition, including the percentage difference between rates
and charges described in subdivision (2). If the commission determines
that a petition filed under this subsection does not satisfy the
requirements of this subsection, the commission shall disapprove the
petition. However, if the percentage difference imposed in the
ordinance was the subject of an objecting petition that was filed under
section 8.2 of this chapter or under IC 36-9-23-26.1 and sustained on
final judgment or appeal, as applicable, by a court, the percentage
difference is considered approved without the filing of a petition under
this subsection.
(d) If a municipality that files, or that is exempt from filing, a
petition under subsection (c) adopts an ordinance under section 8.1 of
this chapter or under IC 36-9-23-26 after March 31, 2012, that imposes
rates and charges on users of the works for service to property located
outside the corporate boundaries of the municipality that exceed the
rates and charges imposed on users of the works for service to property
located within the corporate boundaries of the municipality by more
than the sum of the percentage difference approved or considered
approved by the commission under subsection (c) plus fifteen percent
(15%), either or both of the following may petition the commission to
review and adjust, if necessary, the rates and charges imposed on users
of the works for service to property located outside the corporate
boundaries of the municipality:
(1) The municipality.
(2) The lesser of:
(A) ten percent (10%) of all; or
(B) twenty-five (25);
users of the works whose property is located outside the corporate
boundaries of the municipality.
A petition filed under this subsection must be filed not more than
fourteen (14) days after the date on which the ordinance referred to in
this subsection is adopted. A petition may not be filed under this
subsection if a petition has already been filed under section 8.2 of this
chapter appealing the same rates and charges.
(e) If a municipal legislative body, other than a municipal legislative
body described in subsection (c), adopts an ordinance under section 8.1
of this chapter or under IC 36-9-23-26 after March 31, 2012, that
imposes rates and charges on users of the works for service to property
located outside the corporate boundaries of the municipality that
exceed the rates and charges imposed on users of the works for service
to property located within the corporate boundaries of the municipality
by more than fifteen percent (15%), either or both of the following may
petition the commission to review and adjust, if necessary, the rates and
charges imposed on users of the works for service to property located
outside the corporate boundaries of the municipality:
(1) The municipality.
(2) The lesser of:
(A) ten percent (10%) of all; or
(B) twenty-five (25);
users of the works whose property is located outside the corporate
boundaries of the municipality.
A petition must be filed not more than fourteen (14) days after the date
on which the ordinance is adopted. A petition may not be filed under
this subsection if a petition has already been filed under section 8.2 of
this chapter or under IC 36-9-23-26.1 appealing the same rates and
charges.
(f) The filing of a petition with the commission under subsection
(d), (e), or (m) stays the ordinance adopted under section 8.1 of this
chapter or under IC 36-9-23-26. The rates and charges in effect before
the adoption of the ordinance remain in effect until:
(1) the commission approves or disapproves the petition; and
(2) if applicable, the commission adjusts the rates and charges
imposed by the ordinance on users of the works whose property
is located outside the corporate boundaries of the municipality.
(g) The commission shall prescribe the form and manner in which
a petition must be filed under subsection (d), (e), or (m). A petition
filed under subsection (d)(2), (e)(2), or (m)(2) must be signed by:
(1) each individual user seeking review by the commission; or
(2) one (1) or more attorneys licensed to practice law in Indiana
who represent the individual users seeking review by the
commission.
The burden of proof to demonstrate that the proposed rates and charges
are nondiscriminatory, reasonable, and just is on the municipality,
regardless of who petitions the commission. The commission shall
approve or disapprove a petition within one hundred twenty (120) days
after the petition is filed in the form and manner prescribed by the
commission. However, the commission may extend the one hundred
twenty (120) day deadline for up to sixty (60) days for good cause if all
parties to the proceeding agree. A petition is automatically disapproved
if the petitioner has filed a petition under section 8.2 of this chapter or
under IC 36-9-23-26.1 with respect to the same rate ordinance.
(h) For purposes of determining whether the percentage difference
between rates and charges imposed on users of the works for service to
property located outside the corporate boundaries of the municipality
and the rates and charges imposed on users of the works for service to
property located within the corporate boundaries of the municipality is
nondiscriminatory, reasonable, and just under section 8 of this chapter,
the commission:
(1) may consider the benefit and expense to all users of the works
of extending the works outside the corporate boundaries of the
municipality; and
(2) may not consider any connection fees or capital surcharges
imposed on users of the works for service to property that is
located outside the corporate boundaries of the municipality that
are specifically designated to pay for the costs associated with
main extensions to the users of the works.
(i) If the commission determines that the percentage difference
between the rates and charges imposed on users of the works for
service to property located outside the corporate boundaries of the
municipality and the rates and charges imposed on users of the works
for service to property located within the corporate boundaries of the
municipality is not nondiscriminatory, reasonable, and just under
section 8 of this chapter, the commission may:
(1) establish nondiscriminatory, reasonable, and just rates and
charges for users of the works for service to property located
outside the corporate boundaries of the municipality; and
(2) order the municipal legislative body to adopt an ordinance
imposing the nondiscriminatory, reasonable, and just rates and
charges.
However, with respect to rates and charges imposed in an ordinance
that was the subject of an objecting petition filed under section 8.2 of
this chapter or under IC 36-9-23-26.1 and sustained on final judgment
or appeal, as applicable, by a court, the commission may not establish
rates and charges such that the percentage difference between rates and
charges established by the commission is less than the percentage
difference between rates and charges imposed in the ordinance.
(j) This section does not:
(1) authorize the commission to review or revise rates and charges
imposed on users of the works for service to property located
within the corporate boundaries of the municipality; or
(2) otherwise return or subject a utility to the jurisdiction of the
commission for the approval of rates and charges.
(k) The commission may adopt rules under IC 4-22-2 to implement
this section.
(l) The commission may not impose a fee with respect to
proceedings under this section.
(m) This subsection applies if a municipal legislative body, other
than a municipal legislative body described in subsection (c), adopts an
ordinance under section 8.1 of this chapter or under IC 36-9-23-26 that
is in effect on March 31, 2012, and that imposes rates and charges on
users of the works for service to property located outside the corporate
boundaries of the municipality that exceed by more than fifty percent
(50%) the rates and charges imposed on users of the works for service
to property located anywhere within the corporate boundaries of the
municipality. Not later than December 31, 2013, either or both of the
following may petition the commission to review and adjust, if
necessary, the rates and charges imposed on users of the works for
service to property located outside the corporate boundaries of the
municipality:
(1) The municipality.
(2) Subject to subsection (n), the lesser of:
(A) ten percent (10%) of all; or
(B) twenty-five (25);
users of the works whose property is located outside the corporate
boundaries of the municipality.
(n) At least twenty (20) days before a group of users described in
subsection (m)(2) may petition the commission under subsection (m),
the group of users must file the petition with the municipal legislative
body. The municipal legislative body and the group of users shall
attempt to resolve the issues set forth in the petition concerning the
rates and charges imposed on the group of users. If the group of users
and the municipal legislative body are unable to resolve the issues
within ten (10) days, the group of users may petition the commission
under subsection (m).

Legislative History

As added by P.L.139-2012, SEC.3. Amended by P.L.163-2013, SEC.1; P.L.270-2013, SEC.8.