2013 Indiana Code TITLE 8. UTILITIES AND TRANSPORTATION ARTICLE 1. UTILITIES GENERALLY CHAPTER 2. UTILITY REGULATION
Download as PDF
IC 8-1-2
Chapter 2. Utility Regulation
IC 8-1-2-0.3
Effective date of certain amendments made to section 103 of this
chapter
Sec. 0.3. Notwithstanding the amendments made to section 103 of
this chapter by P.L.93-1993, in the case of a public utility that is
described in section 103(c) of this chapter, as amended by
P.L.93-1993, the effective date for the implementation of the
amendments made to section 103 of this chapter by P.L.93-1993, is
July 1, 1993.
As added by P.L.220-2011, SEC.185.
IC 8-1-2-1
Definitions
Sec. 1. (a) Except as provided in section 1.1 of this chapter,
"public utility", as used in this chapter, means every corporation,
company, partnership, limited liability company, individual,
association of individuals, their lessees, trustees, or receivers
appointed by a court, that may own, operate, manage, or control any
plant or equipment within the state for the:
(1) conveyance of telegraph or telephone messages;
(2) production, transmission, delivery, or furnishing of heat,
light, water, or power; or
(3) collection, treatment, purification, and disposal in a sanitary
manner of liquid and solid waste, sewage, night soil, and
industrial waste.
The term does not include a municipality that may acquire, own, or
operate any of the foregoing facilities.
(b) "Municipal council", as used in this chapter, means the
legislative body of any town or city in Indiana wherein the property
of the public utility or any part thereof is located.
(c) "Municipality", as used in this chapter, means any city or town
of Indiana.
(d) "Rate", as used in this chapter, means every individual or joint
rate, fare, toll, charge, rental, or other compensation of any utility or
any two (2) or more such individual or joint rates, fares, tolls,
charges, rentals, or other compensation of any utility or any schedule
or tariff thereof, but nothing in this subsection shall give the
commission any control, jurisdiction, or authority over the rate
charged by a municipally owned utility except as in this chapter
expressly provided.
(e) "Service" is used in this chapter in its broadest and most
inclusive sense and includes not only the use or accommodation
afforded consumers or patrons but also any product or commodity
furnished by any public or other utility and the plant, equipment,
apparatus, appliances, property, and facility employed by any public
or other utility in performing any service or in furnishing any product
or commodity and devoted to the purposes in which such public or
other utility is engaged and to the use and accommodation of the
public.
(f) "Commission", as used in this chapter, means the commission
created by IC 8-1-1-2.
(g) "Utility", as used in this chapter, means every plant or
equipment within the state used for:
(1) the conveyance of telegraph and telephone messages;
(2) the production, transmission, delivery, or furnishing of heat,
light, water, or power, either directly or indirectly to the public;
or
(3) collection, treatment, purification, and disposal in a sanitary
manner of liquid and solid waste, sewage, night soil, and
industrial waste.
The term does not include a municipality that may acquire, own, or
operate facilities for the collection, treatment, purification, and
disposal in a sanitary manner of liquid and solid waste, sewage, night
soil, and industrial waste. A warehouse owned or operated by any
person, firm, limited liability company, or corporation engaged in the
business of operating a warehouse business for the storage of used
household goods is not a public utility within the meaning of this
chapter.
(h) "Municipally owned utility", as used in this chapter, includes
every utility owned or operated by a municipality.
(i) "Indeterminate permit", as used in this chapter, means every
grant, directly or indirectly from the state, to any corporation,
company, partnership, limited liability company, individual,
association of individuals, their lessees, trustees, or receivers
appointed by a court, of power, right, or privilege to own, operate,
manage, or control any plant or equipment, or any part of a plant or
equipment, within this state, for the:
(1) production, transmission, delivery, or furnishing of heat,
light, water, or power, either directly or indirectly to or for the
public;
(2) collection, treatment, purification, and disposal in a sanitary
manner of liquid and solid waste, sewage, night soil, and
industrial waste; or
(3) furnishing of facilities for the transmission of intelligence
by electricity between points within this state;
which shall continue in force until such time as the municipality shall
exercise its right to purchase, condemn, or otherwise acquire the
property of such public utility, as provided in this chapter, or until it
shall be otherwise terminated according to law.
(Formerly: Acts 1913, c.76, s.1a; Acts 1955, c.37, s.1; Acts 1957,
c.313, s.1.) As amended by P.L.59-1984, SEC.8; P.L.384-1987(ss),
SEC.5; P.L.8-1989, SEC.38; P.L.8-1993, SEC.105; P.L.91-1995,
SEC.2; P.L.27-2006, SEC.3.
IC 8-1-2-1.1
Transmitting communications through Internet Protocol enabled
retail services; regulatory status
Sec. 1.1. A person or an entity that:
(1) transmits communications through Internet Protocol enabled
retail services, including:
(A) voice;
(B) data;
(C) video; or
(D) any combination of voice, data, and video
communications; or
(2) provides the necessary software, hardware, transmission
service, or transmission path for communications described in
subdivision (1);
is not a public utility solely by reason of engaging in any activity
described in subdivisions (1) through (2).
As added by P.L.27-2006, SEC.4.
IC 8-1-2-1.2
Landlord distributing water or sewage disposal service;
requirements for exemption from treatment as a public utility;
allowed charges; disclosure; complaints
Sec. 1.2. (a) As used in this section, "landlord" refers to a landlord
or a person acting on a landlord's behalf.
(b) A landlord that distributes water or sewage disposal service
from a public utility or a municipally owned utility to one (1) or
more dwelling units is not a public utility solely by reason of
engaging in this activity if the landlord complies with all of the
following:
(1) The landlord bills tenants, separately from rent, for:
(A) the water or sewage disposal service distributed; and
(B) any costs permitted by subsection (c).
(2) The total charge for the services described in subdivision
(1)(A) is not more than what the landlord paid the utility for the
same services, less the landlord's own use.
(3) The landlord makes a disclosure to the tenant that satisfies
subsection (d). A disclosure required by this subdivision must
be in:
(A) the lease;
(B) the tenant's first bill; or
(C) a writing separate from the lease signed by the tenant
before entering into the lease.
(c) A landlord may charge only the following costs under
subsection (b)(1)(B):
(1) A reasonable initial set-up fee.
(2) A reasonable administrative fee that may not exceed four
dollars ($4) per month.
(3) A reasonable fee for the return for insufficient funds of an
instrument in payment of charges.
(d) A disclosure required by subsection (b)(3) must:
(1) be printed using a font that is not smaller than the largest
font used in the lease; and
(2) include the following:
(A) A description of the water or sewage disposal services
to be provided.
(B) An itemized statement of the fees that will be charged as
permitted under subsection (c).
(C) The following statement: "If you believe you are being
charged in violation of this disclosure or if you believe you
are being billed in excess of the utility services provided to
you as described in this disclosure, you have a right under
Indiana law to file a complaint with the Indiana Utility
Regulatory Commission. You may contact the Commission
at (insert phone number for the tenant to contact the
Commission).".
(e) If a complaint is filed under section 34.5 or 54 of this chapter
alleging that a landlord may be acting as a public utility in violation
of this section, the commission shall:
(1) consider the issue; and
(2) if the commission considers necessary, enter an order
requiring that billing be adjusted to comply with this section.
As added by P.L.103-2008, SEC.1. Amended by P.L.1-2009, SEC.64.
IC 8-1-2-2
Legal counsel for commission
Sec. 2. The attorney-general shall be the legal counsel for the
commission and shall prosecute all cases in which the commission
may be interested. He shall advise the commission in legal matters
arising in the discharge of their duties and shall represent the
commission in all suits to which the commission is a party. The
attorney-general shall have the right to call upon the prosecuting
attorney of any county or the legal officers of any city to assist in the
prosecution or defense of any case in their county or city to which
the commission may be a party, and it shall be the duty of such
prosecuting attorney or legal officer to give such assistance as may
be required by the attorney general.
(Formerly: Acts 1913, c.76, s.3; Acts 1917, c.16, s.1.)
IC 8-1-2-3
Repealed
(Repealed by P.L.89-1985, SEC.14.)
IC 8-1-2-4
Services to public; rates and charges
Sec. 4. Every public utility is required to furnish reasonably
adequate service and facilities. The charge made by any public utility
for any service rendered or to be rendered either directly or in
connection therewith shall be reasonable and just, and every unjust
or unreasonable charge for such service is prohibited and declared
unlawful. The commission, in order to expedite the determination of
rate questions, or to avoid unnecessary and unreasonable expense, or
to avoid discrimination in rates between classes of customers, or,
whenever in the judgment of the commission public interest so
requires, may, for ratemaking and accounting purposes, or either of
them, consider a single municipality and/or two (2) or more
municipalities and/or the adjacent and/or intervening rural territory
as a regional unit where the same utility serves such region, and may
within such region prescribe uniform rates for consumers or patrons
of the same class. Nothing in this chapter contained shall authorize
any public utility during the remainder of the term of any grant or
franchise under which it may be acting on May 1, 1913, to charge for
any service, in such grant or franchise contracted, exceeding the
maximum rate or rates therefor, if any, that may be fixed in such
grant or franchise.
(Formerly: Acts 1913, c.76, s.7; Acts 1933, c.190, s.2.) As amended
by P.L.59-1984, SEC.10.
IC 8-1-2-5
Joint use of facilities; physical connections with facilities and
equipment
Sec. 5. (a) Every public utility, and every municipality, and every
person, association, limited liability company, or corporation having
tracks, conduits, subways, poles, or other equipment on, over, or
under any street or highway shall for a reasonable compensation,
permit the use of the same by any other public utility or by a
municipality owning or operating a utility, whenever public
convenience and necessity require such use, and such use will not
result in irreparable injury to the owner or other users of such
equipment, nor in any substantial detriment to the service to be
rendered by such owners or other users. Every public utility for the
conveyance of telephone messages shall permit a physical connection
or connections to be made, and telephone service to be furnished,
before any telephone system operated by it, and the telephone toll
line operated by another such public utility or between its toll line
and the telephone system of another such public utility, or between
its toll line and the toll line of another such public utility, or between
its telephone system and the telephone system of another such public
utility, whenever public convenience and necessity require such
physical connection or connections and such physical connection or
connections will not result in irreparable injury to the owner or other
users of the facilities of such public utilities, nor in any substantial
detriment to the service to be rendered by such public utilities. If any
prospective consumers or patrons of any public utility for the
production, transmission, delivery, or furnishing of light or power,
living in territory outside of cities and towns, and within not to
exceed one-half (1/2) mile of the transmission line of such utility,
shall agree to and shall construct and install the necessary equipment,
in compliance with plans and specifications prescribed by such
utility, such public utility shall permit the necessary physical
connection or connections to be made and service to be furnished to
the person or persons who have constructed and installed such
equipment. The term "physical connection", as used in this section,
shall mean such number of trunk lines or complete wire circuits and
connections as may be required to furnish reasonably adequate
telephone service between such public utilities.
(b) In case of failure to agree upon such use or the conditions or
compensations for such use, or in case of failure to agree upon such
physical connection or connections, or the terms and conditions upon
which the same shall be made, any public utility or any person,
association, limited liability company, or corporation interested may
apply to the commission and if after investigation the commission
shall ascertain that public convenience and necessity require such use
or such physical connections, and that such use or such physical
connection or connections would not result in irreparable injury to
the owner or other users of such equipment or the facilities of such
public utilities, nor in any substantial detriment to the service to be
rendered by such owner or other public utilities or other users of
such equipment or facilities, it shall by order direct that such use be
permitted and prescribe reasonable conditions and compensations for
such joint use and that such physical connection or connections be
made and determine how and within what time such connection or
connections shall be made, and by whom the expense of making and
maintaining such connection or connections shall be paid.
(c) Such use so ordered shall be permitted, and such physical
connection or connections so ordered shall be made and such
conditions and compensation so prescribed for such use, and such
terms and conditions upon which such physical connection or
connections shall be made, as so determined, shall be lawful
conditions and compensations for such use, and the lawful terms and
conditions upon which such physical connection or connections shall
be made, to be observed, followed, and paid, subject to recourse to
the courts upon the complaint of any interested party as provided in
sections 73 and 74 of this chapter and IC 8-1-3, and such statute so
far as applicable shall apply to any action arising on such complaint
so made. Any such order of the commission may be from time to
time revised by the commission upon application of any interested
party or upon its own motion.
(Formerly: Acts 1913, c.76, s.8; Acts 1933, c.190, s.3; Acts 1935,
c.293, s.2.) As amended by P.L.59-1984, SEC.11; P.L.8-1993,
SEC.106.
IC 8-1-2-6
Valuation of property
Sec. 6. (a) The commission shall value all property of every
public utility actually used and useful for the convenience of the
public at its fair value, giving such consideration as it deems
appropriate in each case to all bases of valuation which may be
presented or which the commission is authorized to consider by the
following provisions of this section. As one of the elements in such
valuation the commission shall give weight to the reasonable cost of
bringing the property to its then state of efficiency. In making such
valuation, the commission may avail itself of any information in
possession of the department of local government finance or of any
local authorities. The commission may accept any valuation of the
physical property made by the interstate commerce commission of
any public utility subject to the provisions of this act.
(b) The lands of such public utility shall not be valued at a greater
amount than the assessed value of said lands exclusive of
improvements as valued for taxation. In making such valuation no
account shall be taken of presumptive value resting on natural
resources independent of any structures in relation thereto, the
natural resource itself shall be viewed as the public's property. No
account shall be taken of good will for presumptive values growing
out of the operation of any utility as a going concern, all such values
to rest with the municipality by reason of the special and exclusive
grants given such utility enterprises. No account shall be taken of
construction costs unless such costs were actually incurred and paid
as part of the cost entering into the construction of the utility. All
public utility valuations shall be based upon tangible property, that
is, such property as has value by reason of construction costs, either
in materials purchased or in assembling of materials into structures
by the labor or (of) workers and the services of superintendents,
including engineers, legal and court costs, accounting systems and
transportation costs, and also including insurance and interest
charges on capital accounts during the construction period. As an
element in determining value the commission may also take into
account reproduction costs at current prices, less depreciation, based
on the items set forth in the last sentence hereof and shall not include
good will, going value, or natural resources.
(c) In determining the amount of allowable operating expenses of
a utility, the commission may not take into consideration or approve
any expense for institutional or image building advertising, charitable
contributions, or political contributions.
(Formerly: Acts 1913, c.76, s.9; Acts 1933, c.190, s.4; Acts 1947,
c.307, s.1.) As amended by Acts 1979, P.L.85, SEC.1; P.L.90-2002,
SEC.309.
IC 8-1-2-6.1
Indiana coal and clean coal technology; research, development,
and preconstruction expenses
Sec. 6.1. (a) As used in this section, "clean coal technology"
means a technology (including precombustion treatment of coal):
(1) that is used at a new or existing electric generating facility
and directly or indirectly reduces airborne emissions of sulfur
or nitrogen based pollutants associated with the combustion or
use of coal; and
(2) that either:
(A) is not in general commercial use at the same or greater
scale in new or existing facilities in the United States as of
January 1, 1989; or
(B) has been selected by the United States Department of
Energy for funding under its Innovative Clean Coal
Technology program and is finally approved for such
funding on or after January 1, 1989.
(b) As used in this section, "Indiana coal" means coal from a mine
whose coal deposits are located in the ground wholly or partially in
Indiana regardless of the location of the mine's tipple.
(c) Except as provided in subsection (d), the commission shall
allow a utility to recover as operating expenses those expenses
associated with:
(1) research and development designed to increase use of
Indiana coal; and
(2) preconstruction costs (including design and engineering
costs) associated with employing clean coal technology at a
new or existing coal burning electric generating facility if the
commission finds that the facility:
(A) utilizes and will continue to utilize (as its primary fuel
source) Indiana coal; or
(B) is justified, because of economic considerations or
governmental requirements, in utilizing non-Indiana coal;
after the technology is in place.
(d) The commission may only allow a utility to recover
preconstruction costs as operating expenses on a particular project if
the commission awarded a certificate under IC 8-1-8.7 for that
project.
(e) The commission shall establish guidelines for determining
recoverable expenses.
As added by P.L.88-1985, SEC.1. Amended by P.L.105-1989, SEC.1.
IC 8-1-2-6.6
Valuation of property; qualified pollution control property
constructed before March 31, 2002
Sec. 6.6. (a) As used in this section:
"Clean coal technology" means a technology (including
precombustion treatment of coal):
(1) that is used at a new or existing electric generating facility
and directly or indirectly reduces airborne emissions of sulfur
or nitrogen based pollutants associated with combustion or use
of coal; and
(2) that either:
(A) is not in general commercial use at the same or greater
scale in new or existing facilities in the United States as of
January 1, 1989; or
(B) has been selected by the United States Department of
Energy for funding under its Innovative Clean Coal
Technology program and is finally approved for such
funding on or after January 1, 1989.
"Indiana coal" means coal from a mine whose coal deposits are
located in the ground wholly or partially in Indiana regardless of the
location of the mine's tipple.
"Qualified pollution control property" means an air pollution
control device on a coal burning electric generating facility or any
equipment that constitutes clean coal technology that has been
approved for use by the commission, that meets applicable state or
federal requirements, and that is designed to accommodate the
burning of coal from the geological formation known as the Illinois
Basin.
"Utility" refers to any electric generating utility allowed by law to
earn a return on its investment.
(b) Upon the request of a utility that began construction after
October 1, 1985, and before March 31, 2002, of qualified pollution
control property that is to be used and useful for the public
convenience, the commission shall for ratemaking purposes add to
the value of that utility's property the value of the qualified pollution
control property under construction, but only if at the time of the
application and thereafter:
(1) the facility burns only Indiana coal as its primary fuel source
once the air pollution control device is fully operational; or
(2) the utility can prove to the commission that the utility is
justified because of economic considerations or governmental
requirements in utilizing some non-Indiana coal.
(c) The commission shall adopt rules under IC 4-22-2 to
implement this section.
As added by P.L.88-1985, SEC.2. Amended by P.L.23-1988, SEC.21;
P.L.105-1989, SEC.2; P.L.159-2002, SEC.3.
IC 8-1-2-6.7
Depreciation of clean coal technology
Sec. 6.7. (a) As used in this section, "clean coal technology"
means a technology (including precombustion treatment of coal):
(1) that is used in a new or existing electric generating facility
and directly or indirectly reduces airborne emissions of sulfur
or nitrogen based pollutants associated with the combustion or
use of coal; and
(2) that either:
(A) is not in general commercial use at the same or greater
scale in new or existing facilities in the United States as of
January 1, 1989; or
(B) has been selected by the United States Department of
Energy for funding under its Innovative Clean Coal
Technology program and is finally approved for such
funding on or after January 1, 1989.
(b) The commission shall allow a public or municipally owned
electric utility that incorporates clean coal technology to depreciate
that technology over a period of not less than ten (10) years or the
useful economic life of the technology, whichever is less and not
more than twenty (20) years if it finds that the facility where the
clean coal technology is employed:
(1) utilizes and will continue to utilize (as its primary fuel
source) Indiana coal; or
(2) is justified, because of economic considerations or
governmental requirements, in utilizing non-Indiana coal;
after the technology is in place.
As added by P.L.105-1989, SEC.3.
IC 8-1-2-6.8
Valuation of property; qualified pollution control property
constructed after March 31, 2002
Sec. 6.8. (a) This section applies to a utility that begins
construction of qualified pollution control property after March 31,
2002.
(b) As used in this section, "clean coal technology" means a
technology (including precombustion treatment of coal):
(1) that is used in a new or existing energy generating facility
and directly or indirectly reduces airborne emissions of sulfur,
mercury, or nitrogen oxides or other regulated air emissions
associated with the combustion or use of coal; and
(2) that either:
(A) was not in general commercial use at the same or greater
scale in new or existing facilities in the United States at the
time of enactment of the federal Clean Air Act Amendments
of 1990 (P.L.101-549); or
(B) has been selected by the United States Department of
Energy for funding under its Innovative Clean Coal
Technology program and is finally approved for such
funding on or after the date of enactment of the federal
Clean Air Act Amendments of 1990 (P.L.101-549).
(c) As used in this section, "qualified pollution control property"
means an air pollution control device on a coal burning energy
generating facility or any equipment that constitutes clean coal
technology that has been approved for use by the commission and
that meets applicable state or federal requirements.
(d) As used in this section, "utility" refers to any energy
generating utility allowed by law to earn a return on its investment.
(e) Upon the request of a utility that begins construction after
March 31, 2002, of qualified pollution control property that is to be
used and useful for the public convenience, the commission shall for
ratemaking purposes add to the value of that utility's property the
value of the qualified pollution control property under construction.
(f) The commission shall adopt rules under IC 4-22-2 to
implement this section.
As added by P.L.159-2002, SEC.4.
IC 8-1-2-7
Valuation of property; hearings
Sec. 7. Before final determination of such value, the commission
shall, after notice to the public utility, hold a public hearing as to
such valuation in the manner prescribed for a hearing in sections 54
through 67 of this chapter, and the provisions of such sections so far
as applicable shall apply to such hearing.
(Formerly: Acts 1913, c.76, s.10.) As amended by P.L.59-1984,
SEC.12.
IC 8-1-2-8
Valuation of property; expenses; orders
Sec. 8. (a) The commission, within five (5) days after any such
valuation is determined, shall deliver a written statement thereof to
the public utility interested and a copy thereof to the clerk of each
municipality in which any part of the plant or equipment of such
utility is located. In such statement, the commission shall declare and
fix the reasonable and necessary expenses incurred by it in making
such valuation, and, within twenty (20) days thereafter, the utility
shall pay into the treasury of the state the amount of the expenses so
declared and fixed.
(b) The commission shall not make any order, based on any such
valuation, increasing any rate of any public utility until such
expenses have been paid. All such moneys paid into the treasury of
the state are hereby appropriated to the commission until and
including September 30, 1925, to defray its expenses until said date
and thereafter shall be paid into the general fund of the state.
(Formerly: Acts 1913, c.76, s.11; Acts 1925, c.63, s.1.) As amended
by P.L.23-1988, SEC.22.
IC 8-1-2-9
Valuation of property; revaluation
Sec. 9. The commission may, at any time, on its own initiative,
make a revaluation of such property.
(Formerly: Acts 1913, c.76, s.12.)
IC 8-1-2-10
Accounting systems
Sec. 10. Every public utility shall keep and render to the
commission, in the manner and form prescribed by the commission,
uniform accounts of all business transacted. In formulating a system
of accounting for any class of public utilities, the commission shall
consider any system of accounting established by any federal law,
commission or department and any system authorized by a national
association of such utilities.
(Formerly: Acts 1913, c.76, s.13.)
IC 8-1-2-11
Accounts and accounting; other subsidiary business
Sec. 11. Every public utility engaged, directly or indirectly, in any
other or subsidiary business shall, if ordered by the commission,
keep and render separately to the commission, in like manner and
form, the accounts of all such business, in which case all the
provisions of this chapter shall apply with like force and effect to the
books, accounts, papers, and records of such other business;
provided, every public utility may, with consent of the commission
and the proper local authorities, furnish to all patrons or persons
applying therefor any service, product, or commodity which it
creates as a necessary incident and subsidiary to its main or primary
business. No such consent shall be granted except as provided in
section 86 of this chapter, and every such subsidiary business shall
be subject to all the provisions of this chapter.
(Formerly: Acts 1913, c.76, s.14.) As amended by P.L.59-1984,
SEC.13.
IC 8-1-2-12
Books, accounts, papers, and records
Sec. 12. The commission shall prescribe the forms of all books,
accounts, papers and records required to be kept, and every public
utility is required to keep and render its books, accounts, papers and
records accurately and faithfully in the manner and form prescribed
by the commission and to comply with all directions of the
commission relating to such books, accounts, papers and records.
(Formerly: Acts 1913, c.76, s.15.)
IC 8-1-2-13
Forms; conduct of business
Sec. 13. The commission shall cause to be prepared suitable
blanks for carrying out the purpose of this chapter and shall, when
necessary, furnish such blanks to each public utility.
(Formerly: Acts 1913, c.76, s.16.) As amended by P.L.59-1984,
SEC.14.
IC 8-1-2-14
Books, accounts, papers, or records; approval of system
Sec. 14. No public utility shall keep any other books, accounts,
papers or records of the business transacted than those prescribed or
approved by the commission, unless required by other public
authority.
(Formerly: Acts 1913, c.76, s.17.)
IC 8-1-2-15
Books, accounts, papers, or records; removal from state; directors;
residence
Sec. 15. Each public utility shall have an office in one (1) of the
towns or cities in this state in which its property or some part thereof
is located, and shall keep in said office all books, accounts, papers,
and records as shall be required by the commission to be kept within
the state. No books, accounts, papers, or records required by the
commission to be kept within the state shall be at any time removed
from this state, except upon such conditions as may be prescribed by
the commission. A majority in number of the board of directors of
each and every company or association organized under Indiana
statutes and coming under the provisions of this chapter shall be
bona fide residents and citizens of the state of Indiana while acting
as such directors.
(Formerly: Acts 1913, c.76, s.18; Acts 1915, c.110, s.1.) As amended
by P.L.59-1984, SEC.15.
IC 8-1-2-16
Accounts; closing date; filing with commission
Sec. 16. The accounts shall be closed annually on the thirty-first
day of December, and a balance sheet of that date promptly taken
therefrom. On or before the thirtieth day of April following, such
balance sheet, together with such other information as the
commission shall prescribe, verified by an officer of the public
utility, shall be filed with the commission.
(Formerly: Acts 1913, c.76, s.19; Acts 1917, c.150, s.1.) As amended
by Acts 1979, P.L.84, SEC.3; P.L.103-1983, SEC.2.
IC 8-1-2-17
Accounts; examination and audit
Sec. 17. The commission shall provide for the examination and
audit of all accounts, and all items shall be allocated to the accounts
in the manner prescribed by the commission.
(Formerly: Acts 1913, c.76, s.20.)
IC 8-1-2-18
Books, accounts, papers, records, and memoranda; inspection and
examination
Sec. 18. The agents, accountants or examiners employed by the
commission shall have authority, under the direction of the
commission, to inspect and examine any and all books, accounts,
papers, records and memoranda kept by such public utility.
(Formerly: Acts 1913, c.76, s.21.)
IC 8-1-2-19
Depreciation account
Sec. 19. Every public utility shall carry a separate, proper and
adequate depreciation account whenever the commission, after
investigation, shall determine that such depreciation account
reasonably can be required. The commission, from time to time, shall
ascertain and determine the proper and adequate rates of depreciation
of the several classes of property of each public utility. The rates,
tolls and charges shall be such as will provide the amounts required
over and above the reasonable and necessary operating expenses, to
maintain such property in an operating state of efficiency
corresponding to the progress of the industry. Each public utility
shall conform its depreciation accounts to such rates, so ascertained
and determined by the commission. The commission shall make
changes in such rates of depreciation, from time to time, as it may
find necessary.
(Formerly: Acts 1913, c.76, s.22; Acts 1925, c.64, s.1.)
IC 8-1-2-20
Depreciation account; rules, regulations, and forms
Sec. 20. The commission shall also prescribe rules, regulations
and forms of accounts regarding such depreciation, which the public
utility is required to carry into effect.
(Formerly: Acts 1913, c.76, s.23.)
IC 8-1-2-21
Depreciation; rates, tolls, and charges
Sec. 21. The commission shall provide for such depreciation in
fixing the rates, tolls and charges to be paid by the public.
(Formerly: Acts 1913, c.76, s.24.)
IC 8-1-2-22
Depreciation fund; management
Sec. 22. All money thus provided shall be set aside out of the
earnings and carried in a separate depreciation fund. The money in
this fund shall be applied first to depreciation expenses. Any balance
in the fund, not applied to depreciation expenses, may be invested by
the public utility or expended temporarily by it for new construction,
extensions or additions to its utility property. This fund shall be used
for no other purpose. If invested, the income from the investment
shall be carried into and become a part of the depreciation fund. Any
balance, not applied to depreciation expenses, shall always remain a
part of the depreciation fund. In no event shall moneys, temporarily
expended from this fund for new construction, extensions or
additions to the property, be carried into or considered a part of the
capital account of such public utility. Upon the sale of any public
utility property, to continue in operation as such, the balance in the
depreciation fund, unexpended for depreciation expenses, shall be
transferred to the purchaser and by the purchaser shall be held,
administered and used as herein authorized and required.
(Formerly: Acts 1913, c.76, s.25; Acts 1925, c.64, s.2.)
IC 8-1-2-23
Construction accounts; additions or extension; approval by
commission
Sec. 23. The commission shall keep itself informed of all new
construction, extensions and additions to the property of such public
utility and shall prescribe the necessary forms, regulations and
instructions to the officers and employees of such public utility for
the keeping of construction accounts which shall clearly distinguish
all operating expenses and new construction. Unless a public utility
shall obtain the approval by the commission of any expenditure
exceeding ten thousand dollars ($10,000) for an extension,
construction, addition or improvement of its plant and equipment, the
commission shall not, in any proceeding involving the rates of such
utility, consider the property acquired by such expenditures as a part
of the rate base, unless in such proceeding the utility shall show that
such property is in fact used and useful in the public service;
Provided, That the commission in its discretion may authorize the
expenditure for such purpose of a less amount than shown in such
estimate.
(Formerly: Acts 1913, c.76, s.26; Acts 1933, c.190, s.5.)
IC 8-1-2-24
Arrangement for distribution of profits or sliding scale of charges;
temporary discount to demand component of electricity rates and
charges
Sec. 24. (a) Nothing in this chapter shall be taken to prohibit a
public utility from entering into any reasonable arrangement with its
customers or consumers, or with its employees, or with any
municipality in which any of its property is located, for the division
or distribution of its surplus profits, or providing for a sliding scale
of charges or other financial device that may be practicable and
advantageous to the parties interested. No such arrangement or
device shall be lawful until it shall be found by the commission, after
investigation, to be reasonable and just and not inconsistent with the
purpose of this chapter. Such arrangement shall be under the
supervision and regulation of the commission.
(b) A customer of an electricity supplier (as defined in
IC 8-1-2.3-2) that is a public utility that is under the jurisdiction of
the commission for the approval of rates and charges may apply to
the commission for a temporary discount to the demand component
of the rates and charges contained in the electricity supplier's
applicable standard tariff for service to a single facility of the
customer that is located in Indiana if the customer:
(1) has or will have a maximum demand for electricity of at
least ten (10) megawatts at the facility;
(2) employs more than fifty (50) full-time employees at the
facility;
(3) demonstrates that the temporary discount is necessary and
essential for the customer to attract or create additional jobs or
retain existing jobs at the facility;
(4) demonstrates that the customer's demand for electricity at
the facility will increase by at least one (1) megawatt as a result
of the jobs created or retained under subdivision (3); and
(5) has applied for and received from the Indiana economic
development corporation approval for the requested temporary
discount amount.
(c) Upon receiving an application from a customer of an
electricity supplier under subsection (b), the commission may
approve a temporary discount to the demand component of the rates
and charges contained in the electricity supplier's applicable standard
tariff if the commission finds that the discount is just and reasonable
and consistent with the circumstances described by the customer
under subsection (b), as follows:
(1) For circumstances not described in subdivision (2) or (3), a
discount up to ten percent (10%).
(2) For circumstances involving a redevelopment project in
which the customer is involved, a discount up to fifteen percent
(15%).
(3) For circumstances involving a brownfield project in which
the customer is involved, a discount up to twenty percent
(20%).
(d) A temporary discount authorized under subsection (c) expires
three (3) years after the effective date of the discount. The cost of the
temporary discount shall be included by the commission in the cost
of service for the electricity supplier and shall be deferred for
ratemaking purposes by the electricity supplier for subsequent
recovery in connection with the electricity supplier's next general
retail electric rate case.
(e) A customer that receives a temporary discount under this
section for service to a facility may not:
(1) enter into a contract with the customer's electricity supplier
for electric utility service to the facility that provides for rates,
terms, or conditions that differ from the rates, terms, and
conditions contained in the electricity supplier's applicable
standard tariff; or
(2) take electric utility service to the facility under a
commission-approved economic development tariff offered by
the electricity supplier.
(f) A temporary discount authorized under subsection (c) applies
only to the demand component of the customer's rates and charges
related to the increase in the customer's load described in subsection
(b)(4). However, the commission may authorize the application of
the applicable temporary discount under subsection (c) to all or part
of the demand component of the customer's rates and charges related
to the entire facility if the commission determines that a broader
application is beneficial to all customers of the electricity supplier.
(Formerly: Acts 1913, c.76, s.27.) As amended by P.L.59-1984,
SEC.16; P.L.133-2013, SEC.3.
IC 8-1-2-25
Rates and charges; rules and regulations involving changes
Sec. 25. The commission shall ascertain, determine and order such
rates, charges and regulations as may be necessary to give effect to
such arrangement, but the right and power to make such other and
further changes in rates, charges and regulations as the commission
may ascertain and determine to be necessary and reasonable, and the
right to revoke its approval and amend or rescind all orders relative
thereto, is reserved and vested in the commission, notwithstanding
any such arrangement and mutual agreement.
(Formerly: Acts 1913, c.76, s.28.)
IC 8-1-2-26
Financial statements and accounts
Sec. 26. Each public utility shall furnish to the commission in
such form and at such time as the commission shall require, such
accounts, reports, and information as will show in itemized detail:
(1) the depreciation per unit;
(2) the salaries and wages separately per unit;
(3) legal expenses per unit;
(4) taxes and rentals separately per unit;
(5) the quantity and value of material used per unit;
(6) the receipts from residuals, byproducts, services or other
sales, separately per unit;
(7) the total and net cost per unit;
(8) the gross and net profit per unit;
(9) the dividends and interest per unit;
(10) surplus or reserve per unit;
(11) the prices per unit paid by consumer;
(12) names of, and amount of fees paid to, legal counsel who
are not employees;
(13) names of, and amount of fees paid to, other consultants;
and
(14) such other items, whether of a nature similar to those
hereinbefore enumerated or otherwise, as the commission may
prescribe, in order to show completely and in detail the entire
operation of the public utility in furnishing the unit of its
product or service for the public.
(Formerly: Acts 1913, c.76, s.29.) As amended by P.L.103-1983,
SEC.1.
IC 8-1-2-27
Repealed
(Repealed by Acts 1979, P.L.17, SEC.55.)
IC 8-1-2-28
Repealed
(Repealed by Acts 1979, P.L.17, SEC.55.)
IC 8-1-2-29
Public inspection of commission reports, files, and records; access
of parties to relevant rate information
Sec. 29. (a) All facts and information in the possession of the
commission and all reports, records, files, books, accounts, papers,
and memoranda of every nature whatsoever in its possession shall be
open to inspection by the public at all reasonable times subject to
IC 5-14-3.
(b) Nothing in this section shall be construed to limit the access
of parties to rate and finance proceedings before the commission to
information in the possession of another party that is relevant to the
issues in the proceeding.
(Formerly: Acts 1913, c.76, s.32.) As amended by P.L.59-1984,
SEC.17; P.L.88-1985, SEC.3; P.L.114-1987, SEC.1.
IC 8-1-2-30
Repealed
(Repealed by P.L.12-1984, SEC.6.)
IC 8-1-2-31
Repealed
(Repealed by P.L.114-1987, SEC.2.)
IC 8-1-2-32
Standard commercial units of product or service
Sec. 32. The commission shall ascertain and prescribe for each
kind of public utility suitable and convenient standard commercial
units of product or service. These shall be lawful units for the
purpose of this chapter.
(Formerly: Acts 1913, c.76, s.35.) As amended by P.L.59-1984,
SEC.18.
IC 8-1-2-33
Standard measurements for units of product or service
Sec. 33. The commission shall ascertain and fix adequate and
serviceable standards for the measurement of quality, pressure, initial
voltage, or other conditions pertaining to the supply of the product
or service rendered by any public utility and prescribe reasonable
regulations for examinations and testing of such product or service
and for the measurement thereof.
(Formerly: Acts 1913, c.76, s.36.)
IC 8-1-2-34
Meters and measuring appliances; specifications and standards
Sec. 34. The commission shall establish reasonable rules,
regulations, specifications, and standards to secure the accuracy of
all meters and appliances for measurements, and every public utility
is required to carry into effect all orders issued by the commission
relative thereto. Nothing contained in this section shall limit in any
manner any powers or authority vested in municipal corporations as
provided in section 101 of this chapter.
(Formerly: Acts 1913, c.76, s.37.) As amended by P.L.59-1984,
SEC.19.
IC 8-1-2-34.5
Customer service; determination of complaints
Sec. 34.5. (a) The Commission shall establish reasonable rules
and regulations to govern the relations between public utilities and
any or all classes of their customers. Those rules and regulations
shall cover the following subjects:
(1) extension of service;
(2) extension of credit;
(3) deposits, including interest thereon;
(4) billing procedures;
(5) termination of service;
(6) complaints; and
(7) information and notice to customers of their rights under the
rules.
(b) Notwithstanding IC 8-1-2-54, the commission may investigate
and enter orders on complaints filed by individual customers arising
under this section. The commission may establish an appeals division
to act on its own behalf regarding individual customer complaints.
The decision of the division shall be binding on all parties to the
complaint. The commission shall review decisions of the appeals
division upon timely request by an affected party.
(c) This section does not invalidate any rule or regulation adopted
by the commission before July 1, 1979, to govern the relations
between public utilities and their consumers if the rule or regulation
is consistent with this section.
As added by Acts 1979, P.L.85, SEC.2.
IC 8-1-2-35
Meters and measuring appliances; testing
Sec. 35. The commission shall provide for the examination and
testing of any and all appliances used for the measuring of any
product or service of a public utility. Any consumer or user may have
any such appliance tested upon payment of the fees fixed by the
commission. The commission shall declare and establish reasonable
fees to be paid for testing such appliances on the request of the
consumers or users, the fee to be paid by the consumer or user at the
time of his request, but to be paid by the public utility and repaid to
the consumer or user if the appliance or rate be found unreasonably
defective or incorrect to the disadvantage of the consumer or user.
(Formerly: Acts 1913, c.76, s.38.)
IC 8-1-2-36
Meters and measuring instruments; purchase by commission for
examinations and tests
Sec. 36. The commission may purchase such material, apparatus
and standard measuring instruments for such examinations and tests
as it may deem necessary.
(Formerly: Acts 1913, c.76, s.39.)
IC 8-1-2-36.5
Installation of submetering equipment for individual units;
adoption of rules
Sec. 36.5. (a) As used in this section, "building" means any
building containing more than one (1) residential unit, including
trailer courts and similar multiple user installations, but does not
include hotels, motels, or other similar transient lodging.
(b) Notwithstanding any other law, any owner, operator, or
manager of a building in which:
(1) units of the building are separately rented or leased; and
(2) units of the building are not individually metered for
electricity because the building is exempt from commission
rules on master metering or for any other lawful reason;
may install kilowatt hour submetering equipment for each individual
dwelling unit to fairly allocate the cost of each individual dwelling
unit's electrical consumption and charge the tenant of the dwelling
unit for that consumption.
(c) The submetering equipment shall be used to measure the
number of kilowatt hours used by a tenant during a particular billing
period. The amount that a tenant owes is equal to:
(1) the total number of kilowatt hours consumed by the tenant
during a particular billing period; multiplied by
(2) a fraction, the numerator of which is the total electric bill for
a master meter, and the denominator of which is the total
kilowatt hours consumed on a master meter, all for the same
billing period as in subdivision (1).
The total electric bill for a master meter, in addition to the rate per
kilowatt hour, includes any sales tax, demand charges, energy
component charges, and any other taxes or charges that are lawfully
applied to the bill. The owner, operator, or manager of a building or
buildings served by a master meter may not impose on the tenant any
extra charges over and above the total electric bill for a master meter
(which includes the rate per kilowatt hour and any lawful taxes or
charges, but does not include a late payment charge) for a particular
billing period than is charged to the owner, operator, or manager of
a building or buildings served by a master meter.
(d) The commission shall adopt rules in accordance with
IC 4-22-2 to govern the following:
(1) Maintenance of adequate records by the owner, operator, or
manager of a building or buildings served by a master meter.
(2) Accuracy, testing, and recordkeeping associated with the
submeters.
(3) Complaints of violations of this section, filed with and
investigated by the consumer affairs department of the
commission.
(4) Procedures for the installation of submetering equipment.
(5) Procedures for hearings on complaints filed under
subdivision (3).
(6) Any other rules necessary to carry out this section.
(e) In the hearings on complaints under subsection (d)(5), the
commission's authority is limited solely to a determination of
whether a violation did in fact occur.
(f) The commission shall adopt rules in accordance with IC 4-22-2
to carry out this section.
As added by P.L.60-1984, SEC.1. Amended by P.L.7-1987, SEC.11;
P.L.23-1988, SEC.23.
IC 8-1-2-37
Entry on property; testing meters and measuring instruments
Sec. 37. The commission, its agents, experts, or examiners shall
have power to enter upon any premises occupied by any public utility
for the purpose of making the examinations and tests provided in this
chapter and to set up and use on such premises any apparatus and
appliances and occupy reasonable space therefor.
(Formerly: Acts 1913, c.76, s.40.) As amended by P.L.59-1984,
SEC.20.
IC 8-1-2-38
Filing schedule of rates and charges
Sec. 38. Every public utility shall file with the commission, within
a time fixed by the commission, schedules, which shall be open to
public inspection, showing all rates, tolls and charges which it has
established and which are enforced at the time for any service
performed by it within the state, or for any service in connection
therewith, or performed by any public utility controlled or operated
by it. The rates, tolls and charges shown on such schedules shall not
exceed, without the consent of the commission, the rates, tolls and
charges in force January 1, 1913.
(Formerly: Acts 1913, c.76, s.41.)
IC 8-1-2-39
Filing schedule of rates and charges; rules and regulations to
accompany
Sec. 39. Every public utility shall file, with and as a part of such
schedule, all rules and regulations that in any manner affect the rates
charged or to be charged for any service.
(Formerly: Acts 1913, c.76, s.42.)
IC 8-1-2-40
Copies of schedule; public inspection
Sec. 40. A copy of so much of said schedule as the commission
shall deem necessary for the use of the public shall be printed in
plain type, and kept on file in every station or office of such public
utility where payments are made by the consumers or users, open to
the public in such form and place as to be readily accessible to the
public and as can be conveniently inspected.
(Formerly: Acts 1913, c.76, s.43.)
IC 8-1-2-41
Schedule of joint rates and charges; printing
Sec. 41. Where a schedule of joint rates or charges is or may be
in force between two (2) or more public utilities, such schedules
shall, in like manner, be printed and filed with the commission and
so much thereof as the commission shall deem necessary for the use
of the public shall be filed in every such station or office as provided
in sections 38 and 40 of this chapter.
(Formerly: Acts 1913, c.76, s.44.) As amended by P.L.59-1984,
SEC.21.
IC 8-1-2-42
Changes in schedules
Sec. 42. (a) No change shall be made in any schedule, including
schedules of joint rates, except upon thirty (30) days notice to the
commission, and approval by the commission, and all such changes
shall be plainly indicated upon existing schedules or by filing new
schedules in lieu thereof thirty (30) days prior to the time the same
are to take effect. The commission may prescribe a shorter time
within which a change may be made. A public, municipally owned,
or cooperatively owned utility may not file a request for a general
increase in its basic rates and charges within fifteen (15) months after
the filing date of its most recent request for a general increase in its
basic rates and charges, except that the commission may order a
more timely increase if:
(1) the requested increase relates to a different type of utility
service;
(2) the commission finds that the utility's financial integrity or
service reliability is threatened; or
(3) the increase is based on:
(A) a rate structure previously approved by the commission;
or
(B) orders of federal courts or federal regulatory agencies
having jurisdiction over the utility.
The phrase "general increase in basic rates and charges" does not
include changes in rates related solely to the cost of fuel or to the
cost of purchased gas or purchased electricity or adjustments in
accordance with tracking provisions approved by the commission.
(b) No schedule of rates, tolls, and charges of a public,
municipally owned, or cooperatively owned utility which includes or
authorizes any changes in charges based upon costs is effective
without the approval of the commission. Before the commission
approves any changes in the schedule of rates, tolls, and charges of
an electric utility, which generates and sells electricity, based upon
the cost of fuel to generate electricity or upon the cost of fuel
included in the cost of purchased electricity, the utility consumer
counselor shall examine the books and records of the public,
municipally owned, or cooperatively owned generating utility to
determine the cost of fuel upon which the proposed charges are
based. In addition, before such a fuel cost charge becomes effective,
the commission shall hold a summary hearing on the sole issue of the
fuel charge. The utility consumer counselor shall conduct his review
and make a report to the commission within twenty (20) days after
the utility's request for the fuel cost charge is filed. The commission
shall hold the summary hearing and issue its order within twenty (20)
days after it receives the utility consumer counselor's report. The
provisions of this section and sections 39, 43, 54, 55, 56, 59, 60, and
61 of this chapter concerning the filing, printing, and changing of
rate schedules and the time required for giving notice of hearing and
requiring publication of notice do not apply to such a fuel cost charge
or such a summary hearing.
(c) Regardless of the pendency of any request for a fuel cost
charge by any electric utility, the books and records pertaining to the
cost of fuel of all public, municipally owned, or cooperatively owned
utilities that generate electricity shall be examined by the utility
consumer counselor not less often than quarterly, and the books and
records of all electric nongenerating public, municipally owned, or
cooperatively owned utilities shall be examined by the utility
consumer counselor not less often than annually. The utility
consumer counselor shall provide the commission with a report as to
the examination of said books and records within a reasonable time
following said examination. The utility consumer counselor may, if
appropriate, request of the commission a reduction or elimination of
the fuel cost charge. Upon such request, the commission shall hold
a hearing forthwith in the manner provided in sections 58, 59, and 60
of this chapter.
(d) An electric generating utility may apply for a change in its fuel
charge not more often than each three (3) months. When such
application is filed the petitioning utility shall show to the
commission its cost of fuel to generate electricity and the cost of fuel
included in the cost of purchased electricity, for the period between
its last order from the commission approving fuel costs in its basic
rates and the latest month for which actual fuel costs are available.
The petitioning utility shall also estimate its average fuel costs for
the three (3) calendar months subsequent to the expiration of the
twenty (20) day period allowed the commission in subsection (b).
The commission shall conduct a formal hearing solely on the fuel
cost charge requested in the petition subject to the notice
requirements of IC 8-1-1-8 and shall grant the electric utility the
requested fuel cost charge if it finds that:
(1) the electric utility has made every reasonable effort to
acquire fuel and generate or purchase power or both so as to
provide electricity to its retail customers at the lowest fuel cost
reasonably possible;
(2) the actual increases in fuel cost through the latest month for
which actual fuel costs are available since the last order of the
commission approving basic rates and charges of the electric
utility have not been offset by actual decreases in other
operating expenses;
(3) the fuel adjustment charge applied for will not result in the
electric utility earning a return in excess of the return authorized
by the commission in the last proceeding in which the basic
rates and charges of the electric utility were approved.
However, subject to section 42.3 of this chapter, if the fuel
charge applied for will result in the electric utility earning a
return in excess of the return authorized by the commission, in
the last proceeding in which basic rates and charges of the
electric utility were approved, the fuel charge applied for will
be reduced to the point where no such excess of return will be
earned; and
(4) the utility's estimate of its prospective average fuel costs for
each such three (3) calendar months are reasonable after taking
into consideration:
(A) the actual fuel costs experienced by the utility during the
latest three (3) calendar months for which actual fuel costs
are available; and
(B) the estimated fuel costs for the same latest three (3)
calendar months for which actual fuel costs are available.
(e) Should the commission at any time determine that an
emergency exists that could result in an abnormal change in fuel
costs, it may, in order to protect the public from the adverse effects
of such change suspend the provisions of subsection (d) as to the
utility or utilities affected by such an emergency and initiate such
procedures as may be necessary to protect both the public and the
utility from harm. The commission shall lift the suspension when it
is satisfied the emergency no longer exists.
(f) Any change in the fuel cost charge granted by the commission
under the provisions of this section shall be reflected in the rates
charged by the utility in the same manner as any other changes in
rates granted by the commission in a case approving the basic rates
and charges of the utility. However, the utility may file the change as
a separate amendment to its rate schedules with a reasonable
reference therein that such charge is applicable to all of its filed rate
schedules.
(g) No schedule of rates, tolls, and charges of a public,
municipally owned, or cooperatively owned gas utility that includes
or authorizes any changes in charges based upon gas costs is
effective without the approval of the commission except those rates,
tolls, and charges contained in schedules that contain specific
provisions for changes in gas costs or the cost of gas that have
previously been approved by the commission. Gas costs or cost of
gas may include the gas utility's costs for gas purchased by it from
pipeline suppliers, costs incurred for leased gas storage and related
transportation, costs for supplemental and substitute gas supplies,
costs incurred for exploration and development of its own sources of
gas supplies and other expenses relating to gas costs as shall be
approved by the commission. Changes in a gas utility's rates, tolls,
and charges based upon changes in its gas costs shall be made in
accordance with the following provisions:
(1) Before the commission approves any changes in the
schedule of rates, tolls, and charges of a gas utility based upon
the cost of the gas, the utility consumer counselor may examine
the books and records of the public, municipally owned, or
cooperatively owned gas utility to determine the cost of gas
upon which the proposed changes are based. In addition, before
such an adjustment to the gas cost charge becomes effective, the
commission shall hold a summary hearing on the sole issue of
the gas cost adjustment. The utility consumer counselor shall
conduct his review and make a report to the commission within
thirty (30) days after the utility's request for the gas cost
adjustment is filed. The commission shall hold the summary
hearing and issue its order within thirty (30) days after it
receives the utility consumer counselor's report. The provisions
of this section and sections 39, 43, 54, 55, 56, 59, 60, and 61 of
this chapter concerning the filing, printing, and changing of rate
schedules and the time required for giving notice of hearing and
requiring publication of notice do not apply to such a gas cost
adjustment or such a summary hearing.
(2) Regardless of the pendency of any request for a gas cost
adjustment by any gas utility, the books and records pertaining
to cost of gas of all public, municipally owned, or cooperatively
owned gas utilities shall be examined by the utility consumer
counselor not less often than annually. The utility consumer
counselor shall provide the commission with a report as to the
examination of said books and records within a reasonable time
following said examination. The utility consumer counselor
may, if appropriate, request of the commission a reduction or
elimination of the gas cost adjustment. Upon such request, the
commission shall hold a hearing forthwith in the manner
provided in sections 58, 59, and 60 of this chapter.
(3) A gas utility may apply for a change in its gas cost charge
not more often than each three (3) months. When such
application is filed, the petitioning utility shall show to the
commission its cost of gas for the period between its last order
from the commission approving gas costs in its basic rates and
the latest month for which actual gas costs are available. The
petitioning utility shall also estimate its average gas costs for a
recovery period of not less than the three (3) calendar months
subsequent to the expiration of the thirty (30) day period
allowed the commission in subdivision (1). The commission
shall conduct a summary hearing solely on the gas cost
adjustment requested in the petition subject to the notice
requirements of IC 8-1-1-8 and may grant the gas utility the
requested gas cost charge if it finds that:
(A) the gas utility has made every reasonable effort to
acquire long term gas supplies so as to provide gas to its
retail customers at the lowest gas cost reasonably possible;
(B) the pipeline supplier or suppliers of the gas utility has
requested or has filed for a change in the costs of gas
pursuant to the jurisdiction and procedures of a duly
constituted regulatory authority;
(C) the gas cost adjustment applied for will not result, in the
case of a public utility, in its earning a return in excess of the
return authorized by the commission in the last proceeding
in which the basic rates and charges of the public utility
were approved; however, subject to section 42.3 of this
chapter, if the gas cost adjustment applied for will result in
the public utility earning a return in excess of the return
authorized by the commission in the last proceeding in
which basic rates and charges of the gas utility were
approved, the gas cost adjustment applied for will be
reduced to the point where no such excess of return will be
earned; and
(D) the utility's estimate of its prospective average gas costs
for each such future recovery period is reasonable and gives
effect to:
(i) the actual gas costs experienced by the utility during
the latest recovery period for which actual gas costs are
available; and
(ii) the actual gas costs recovered by the adjustment of the
same recovery period.
(4) Should the commission at any time determine that an
emergency exists that could result in an abnormal change in gas
costs, it may, in order to protect the public or the utility from
the adverse effects of such change suspend the provisions of
subdivision (3) as to the utility or utilities affected by such an
emergency and initiate such procedures as may be necessary to
protect both the public and the utility from harm. The
commission shall lift the suspension when it is satisfied the
emergency no longer exists.
(5) Any change in the gas cost charge granted by the
commission under the provisions of this section shall be
reflected in the rates charged by the utility in the same manner
as any other changes in rates granted by the commission in a
case approving the basic rates and charges of the utility.
However, the utility may file the change as a separate
amendment to its rate schedules with a reasonable reference
therein that such charge is applicable to all of its filed rate
schedules.
(Formerly: Acts 1913, c.76, s.45; Acts 1975, P.L.75, SEC.1.) As
amended by Acts 1979, P.L.85, SEC.4; P.L.43-1983, SEC.9;
P.L.115-1987, SEC.1; P.L.108-1995, SEC.1.
IC 8-1-2-42.1
Cost recovery; substitute natural gas contracts
Sec. 42.1. (a) As used in this section, "substitute natural gas"
means pipeline quality gas produced by a facility that uses a
gasification process to convert coal into a gas capable of being used:
(1) by a utility to supply gas utility service to end use
consumers in Indiana; or
(2) as a fuel used by a utility to produce electric power to
supply electric utility service to end use consumers in Indiana.
(b) As used in this section, "customer choice program" means a
program under which residential and commercial consumers located
in the service area of a gas or electric utility may:
(1) purchase their supply from a provider other than the utility
in the service area; and
(2) receive transportation service from the utility in the service
area for the delivery of the supply purchased under subdivision
(1) to the consumer's premises.
(c) Subject to IC 8-1-8.9 and notwithstanding any other law, if the
commission approves a contract for the purchase of substitute natural
gas, or electricity generated in connection with the production of
substitute natural gas, by a utility, the commission shall allow the
utility to recover the following costs on a timely basis throughout the
term of the contract:
(1) All costs incurred in connection with and resulting from the
utility's purchases under the contract, including the cost of the
substitute natural gas and related costs for generation,
transmission, transportation, and storage services.
(2) All costs the utility incurs in obtaining replacement gas if
the seller fails to deliver substitute natural gas required to be
delivered under the contract, including the price of the gas, and
related transportation, storage, and hedging costs, to the extent
those costs are not paid by the seller.
(3) Upon petition by the utility, any other costs the commission
finds are reasonably necessary in association with the contract.
(d) Any costs recovered under subsection (c):
(1) are in addition to the recovery of other costs; and
(2) shall be made through an adjustment under section 42 of this
chapter or another rate adjustment mechanism that allows for
comparable timely cost recovery.
(e) If a customer choice program is implemented, expanded, or
renewed for a utility during the term of a contract approved by order
of the commission under subsection (c) that has the effect of
reducing the utility's sales volumes, a condition of the authorization
of that program must be the proportionate assignment of the gas or
electric utility's substitute natural gas purchase obligation to the
service providers in the customer choice program that meets the
assignment requirements in the approved contract.
(f) Regardless of changes in market conditions or other
circumstances, the commission may not take any action during the
term of a contract approved under this section that adversely affects
a utility's right to timely recover costs under this section or to
otherwise fully recover such costs.
(g) With respect to utilities that are parties to a contract for the
purchase of substitute natural gas approved by the commission under
this section, the state covenants and agrees that as long as the
contract is in effect the state will not limit, alter, or impair a utility's
right to recover costs as provided in this section. Notwithstanding
any other law, neither the commission nor any other state agency,
political subdivision, or governmental unit may take any action that
would have the effect of limiting, altering, or impairing a utility's
right to recover costs as provided in this section.
As added by P.L.175-2007, SEC.9. Amended by P.L.52-2008, SEC.2.
IC 8-1-2-42.3
Calculation of relevant period; determination of reduction;
exception
Sec. 42.3. (a) As used in this section, "relevant period" means the
last month of the twelve (12) month test period considered in the
current application before the commission under section 42(d)(3) and
42(g)(3)(c) of this chapter and extending through the longer of the:
(1) immediately preceding fifty-nine (59) months; or
(2) period beginning with the first full month following the last
order issued by the commission in which the utility's basic rates
and charges were approved.
(b) The commission shall order a reduction in the:
(1) fuel charge applied for under section 42(d)(3) of this
chapter; or
(2) gas cost adjustment applied for under section 42(g)(3)(c) of
this chapter;
only if the amount determined under subsection (c) is greater than
zero.
(c) The commission shall calculate for the relevant period the sum
of the differentials (both positive and negative) between the
determined return and the authorized return for the respective twelve
(12) month test period for each application for the relevant period, in
each case as shown directly or indirectly by the commission's
findings in each respective order issued under section 42(d) or 42(g)
of this chapter.
(d) Consistent with subsection (b), the amount of reduction shall
be determined by dividing the lesser of:
(1) the amount determined under subsection (c); or
(2) the amount by which the return in the current application
before the commission was more than the authorized return;
by the total number of applications filed during the twelve (12)
month test period considered in the current application before the
commission.
(e) This section does not apply to a general district corporation
within the meaning of IC 8-1-13-23(a).
As added by P.L.108-1995, SEC.2.
IC 8-1-2-42.5
Periodic review of rates and charges
Sec. 42.5. The commission shall by rule or order, consistent with
the resources of the commission and the office of the utility
consumer counselor, require that the basic rates and charges of all
public, municipally owned, and cooperatively owned utilities (except
those utilities described in IC 8-1-2-61.5) are subject to a regularly
scheduled periodic review and revision by the commission. However,
the commission shall conduct the periodic review at least once every
four (4) years and may not authorize a filing for an increase in basic
rates and charges more frequently than is permitted by operation of
section 42(a) of this chapter.
As added by P.L.88-1985, SEC.4.
IC 8-1-2-42.7
Designation of test period; temporary implementation of rates and
charges; extension of time; reconciliation of rates and charges
Sec. 42.7. (a) For purposes of this section,"average prime rate"
means the arithmetic mean, to the nearest one-hundredth of one
percent (0.01%), of the prime rate values published in the Federal
Reserve Bulletin for the three (3) months preceding the first month
of a calendar quarter.
(b) For purposes of this section, "case in chief" includes the
following:
(1) Testimony, exhibits, and supporting work papers.
(2) Proposed test year and rate base cutoff dates.
(3) Proposed revenue requirements.
(4) Jurisdictional operating revenues and expenses, including
taxes and depreciation.
(5) Balance sheet and income statements.
(6) Jurisdictional rate base.
(7) Proposed cost of capital and capital structure.
(8) Jurisdictional class cost of service study.
(9) Proposed rate design and pro forma tariff sheets.
(c) For purposes of this section, "utility" refers to the following:
(1) A public utility.
(2) A municipally owned utility.
(3) A cooperative owned utility.
(d) In a petition filed with the commission to change basic rates
and charges, a utility may designate a test period for the commission
to use. The utility must include with its petition the utility's complete
case in chief. The commission shall approve a test period that is one
(1) of the following:
(1) A forward looking test period determined on the basis of
projected data for the twelve (12) month period beginning not
later than twenty-four (24) months after the date on which the
utility petitions the commission for a change in its basic rates
and charges.
(2) A historic test period based on a twelve (12) month period
that ends not more than two hundred seventy (270) days before
the date on which the utility petitions the commission for a
change in its basic rates and charges. The commission may
adjust a historic test period for fixed, known, and measurable
changes and appropriate normalizations and annualizations.
(3) A hybrid test period based on at least twelve (12)
consecutive months of combined historic data and projected
data. The commission may adjust the historic data as set forth
in subdivision (2).
(e) This subsection does not apply to a proceeding in which a
utility is seeking an increase in basic rates and charges and
requesting initial relief under IC 8-1-2.5-5 or IC 8-1-2.5-6. If the
commission does not issue an order on a petition filed by a utility
under subsection (d) within three hundred (300) days after the utility
files its case in chief in support of the proposed increase, the utility
may temporarily implement fifty percent (50%) of the utility's
proposed permanent increase in basic rates and charges, subject to
the commission's review and determination under subsection (f). The
utility shall submit the proposed temporary rates and charges to the
commission at least thirty (30) days before the date on which the
utility seeks to implement the temporary rates and charges. The
temporary rates and charges may reflect proposed or existing
approved customer class allocations and rate designs. However, if the
utility uses a forward looking test period described in subsection
(d)(1) or a hybrid test period described in subsection (d)(3), the
utility may not:
(1) implement the temporary increase before the date on which
the projected data period begins; or
(2) object during a proceeding before the commission to a
discovery request for historic data as described in subsection
(d)(2) solely on the basis that the utility has designated a
forward looking or hybrid test period.
(f) The commission shall review the temporary rates and charges
to determine compliance with this section. The temporary rates and
charges take effect on the latest of the following dates unless the
commission determines that the temporary rates and charges are not
properly designed in compliance with this section:
(1) The date proposed by the utility.
(2) Three hundred (300) days after the date on which the utility
files its case in chief.
(3) The termination of any extension of the three hundred (300)
day deadline authorized under subsection (g) or (h).
If the commission determines that the temporary rates and charges
are not properly designed in compliance with this section, the utility
may cure the defect and file the corrected temporary rates and
charges with the commission within a reasonable period determined
by the commission.
(g) If the commission grants a utility an extension of the
procedural schedule, the commission may extend the three hundred
(300) day deadline set forth in subsection (e) by the length of the
extension.
(h) The commission may suspend the three hundred (300) day
deadline set forth in subsection (e) one (1) time for good cause. The
suspension may not exceed sixty (60) days.
(i) If a utility implements temporary rates and charges that differ
from the permanent rates and charges approved by the commission
in a final order on the petition filed under subsection (d), the utility
shall perform a reconciliation and implement a refund, in the form of
a credit rider, or a surcharge, as applicable, on customer bills
rendered on or after the date the commission approves the credit or
surcharge. The refund or surcharge shall be credited or added in
equal amounts each month for six (6) months. The amount of the
total refund or surcharge equals the amount by which the temporary
rates and charges differ from the permanent rates and charges, plus,
for a refund only, interest at the applicable average prime rate for
each calendar quarter during which the temporary rates and charges
were in effect.
As added by P.L.133-2013, SEC.4.
IC 8-1-2-43
New schedules; filing
Sec. 43. Copies of all new schedules shall be filed as hereinbefore
provided in every station or office of such public utility where
payments are made by consumers or users ten (10) days prior to the
time the same are to take effect, unless the commission shall
prescribe a less time.
(Formerly: Acts 1913, c.76, s.46.)
IC 8-1-2-44
Overcharges and undercharges
Sec. 44. It shall be unlawful for any public utility to charge,
demand, collect, or receive a greater or less compensation for any
service performed by it within the state, or for any service in
connection therewith, than is specified in such printed schedules,
including schedules of joint rates, as may at the time be in force, or
to demand, collect, or receive any rates, tolls, or charges not
specified in such schedule. The rates, tolls, and charges named
therein shall be the lawful rates, tolls, and charges unless the same
are changed as provided in this chapter.
(Formerly: Acts 1913, c.76, s.47.) As amended by P.L.59-1984,
SEC.22.
IC 8-1-2-45
Rate schedules; changes in form
Sec. 45. The commission may prescribe such changes in the form
in which the schedules are issued by any public utility as may be
found to be expedient.
(Formerly: Acts 1913, c.76, s.48.)
IC 8-1-2-46
Classification of services; rates and charges
Sec. 46. The commission shall provide for a comprehensive
classification of such service for each public utility and such
classification may take into account the quantity used, the time when
used, the purpose for which used and other reasonable consideration.
Each public utility is required to conform its schedules of rates, tolls
and charges to such classification.
(Formerly: Acts 1913, c.76, s.49.)
IC 8-1-2-46.1
Classification of service; rate for furnishing traction power
Sec. 46.1. In providing for a classification of service, the
commission shall approve a rate for furnishing traction power for a
commuter transportation system (IC 8-5-15) that is equal to or lower
than the rate approved for any industrial or commercial consumer of
the public utility. The rate established under this section is subject to
timely payments as negotiated between the utility and the district for
furnishing the traction power.
As added by P.L.385-1987(ss), SEC.1.
IC 8-1-2-47
Inspections; tests; audits and investigations; rules and regulations
Sec. 47. The commission shall have power to adopt reasonable
and proper rules and regulations relative to all inspections, tests,
audits and investigations, and to adopt and publish reasonable and
proper rules to govern its proceedings, and to regulate the mode and
manner of all investigations of public utilities and other parties
before it.
All hearings shall be open to the public.
(Formerly: Acts 1913, c.76, s.50.)
IC 8-1-2-48
Conduct of business; information; excessive wages; inquiry or
audit of utility's power plant efficiency and system reliability
Sec. 48. (a) The commission shall inquire into the management of
the business of all public utilities, and shall keep itself informed as
to the manner and method in which the same is conducted and shall
have the right to obtain from any public utility all necessary
information to enable the commission to perform its duties. If, in its
inquiry into the management of any public utility, the commission
finds that the amount paid for the services of its officers, employees,
or any of them, is excessive, or that the number of officers or persons
employed by such utility is not justified by the actual needs of the
utility, or that any other item of expense is being incurred by the
utility which is either unnecessary or excessive, the commission shall
designate such item or items, and such item or items so designated,
or such parts thereof as the commission may deem unnecessary or
excessive, shall not be taken into consideration in determining and
fixing the rates which such utility is permitted to charge for the
service which it renders.
(b) For purposes of IC 8-1-2, IC 8-1-8.5, IC 8-1-8.7, IC 8-1-8.8,
and IC 8-1-27, wages paid to an independent contractor of a utility
for construction or maintenance performed for the utility shall not be
found to be excessive merely because the wages are those normally
paid for work of the same type and quality in the labor market in
which the work for the utility is being performed.
(c) In carrying out its duties and powers under subsection (a) with
regard to any utility which sells or generates electricity, the
commission may also inquire into or audit a utility's powerplant
efficiency and system reliability.
(Formerly: Acts 1913, c.76, s.51; Acts 1927, c.146, s.1.) As amended
by Acts 1981, P.L.104, SEC.4; P.L.53-1992, SEC.1; P.L.1-1993,
SEC.47; P.L.159-2002, SEC.5.
IC 8-1-2-49
Inspection of books and records; affiliated interests; jurisdiction;
annual reports
Sec. 49. (1) The commission or any commissioner when
authorized by the commission or any person or persons employed by
the commission for that purpose shall upon demand have the right to
inspect the books, accounts, papers, records, and memoranda of any
public utility and to examine, under oath, any officer, agent, or
employee of such public utility in relation to its business and affairs.
Any person other than one of said commissioners who shall make
such demand shall produce his authority to make such inspection.
The commission shall have jurisdiction over holders of the voting
capital stock of all public utility companies under its jurisdiction to
such extent as may be necessary to enable the commission to require
the disclosure of the identity in respective interests of every owner
of any substantial interest in such voting capital stock. One percent
(1%) or more is a substantial interest, within the meaning of this
section.
(2) Said commission shall have jurisdiction over affiliated
interests having transactions, other than ownership of stock and
receipt of dividends thereon, with utility corporations and other
utility companies under the jurisdiction of the commission, to the
extent of access to all accounts and records of joint or general
expenses, any portion of which may be applicable to such
transactions, and to the extent of authority to require such reports to
be submitted by such affiliated interests, as the commission may
prescribe. For the purpose of this section only, "affiliated interests"
include the following:
(a) Every corporation and person owning or holding directly or
indirectly ten percent (10%) or more of the voting capital stock
of such utility corporation.
(b) Every corporation and person in any chain of successive
ownership of ten percent (10%) or more of voting capital stock.
(c) Every corporation ten percent (10%) or more of whose
voting capital stock is owned by any person or corporation
owning ten percent (10%) or more of the voting capital stock of
such utility corporation or by any person or corporation in any
such chain of successive ownership of ten percent (10%) or
more of voting capital stock.
(d) Every person who is an officer or director of such utility
corporation or of any corporation in any chain of successive
ownership of ten percent (10%) or more of voting capital stock.
(e) Every corporation which has one (1) or more officers or one
(1) or more directors in common with such utility corporation.
(f) Every corporation or person which the commission may
determine as a matter of fact after investigation and hearing is
actually exercising any substantial influence over the policies
and actions of such utility corporation even though such
influence is not based upon stockholding, stockholders,
directors, or officers to the extent specified in this section.
(g) Every person or corporation who or which the commission
may determine as a matter of fact after investigation and
hearing is actually exercising such substantial influence over
the policies and actions of such utility corporation in
conjunction with one (1) or more other corporations and/or
persons with which or whom they are related by ownership
and/or blood relationship or by action in concert that together
they are affiliated with such utility corporation within the
meaning of this section even though no one of them alone is so
affiliated; provided, however, that no such person or
corporation shall be considered as affiliated within the meaning
of this section if such person or corporation is otherwise subject
to the jurisdiction of the commission or such person or
corporation shall not have had transactions or dealings other
than the holding of stock and the receipt of dividends thereon
with such utility corporation during the two (2) year period next
preceding.
No management, construction, engineering, or similar contract, made
after March 8, 1933, with any affiliated interest, as defined in this
section, shall be effective unless it shall first have been filed with the
commission. If it be found that any such contract is not in the public
interest, the commission, after investigation and a hearing, is hereby
authorized to disapprove such contract.
(3) Every annual report of any utility corporation reporting under
this chapter to the commission shall contain, in addition to any other
information required to be included by or pursuant to law, the
following information:
(a) It shall state the name and address of, and the number of
shares held by each holder of one percent (1%) or more of the
voting capital stock of the reporting corporation, according to
its records.
(b) Where one percent (1%) or more of the voting capital stock
of the reporting corporation is held by a trustee or trustees, or
other intermediate agency, for the beneficial interest of an
owner or owners, other than the holder of record, or where one
percent (1%) or more of the voting capital stock of the reporting
corporation is held by another corporation, such annual report
shall state, if the information is available from the records of the
reporting corporation, the name and addresses and respective
interests of such beneficial owners, and the names and
addresses of the officers and directors of any such other
corporation and the total number of shares of capital stock
thereof held by each, showing separately the number of shares
of the voting capital stock, and the names and addresses and
respective stockholdings of every stockholder of such other
corporation holding one percent (1%) or more of its voting
capital stock. Such report shall be accompanied by a certified
copy of each trust agreement or other instrument under which
any voting capital stock of the reporting corporation is held.
Where the information specified in subsection (3)(b) is not available
from the records of the reporting corporation, any such holder, of
record, of one percent (1%) or more of the voting capital stock of the
reporting corporation, if ordered so to do by the commission, shall
file with the commission, a sworn statement, in such form and to be
filed within such time as the commission shall prescribe, setting forth
whether or not any of such stock held by him or it is so held for the
beneficial ownership of any person, firm, limited liability company,
or corporation other than the record holder thereof, and, if stated to
be so held, the names, addresses, and respective interests of such
beneficial owners. If such stockholder is a trustee, he or it also shall
file with such statement a certified copy of the trust agreement or
other instrument under which such stock is held. A corporation
which is the holder, of record, of one percent (1%) or more of the
voting capital stock of the reporting corporation, if ordered so to do
by the commission, and regardless of whether the information is or
is not available or apparently available from the records of the
reporting corporation, also shall file with the commission a sworn
statement, in such form and to be filed within such time as the
commission shall prescribe, or shall include in the sworn statement,
if any, required to be filed by it pursuant to other provisions of this
chapter a statement setting forth the names and addresses of its
officers and directors and the total number of shares of its capital
stock, held by each, showing separately the number of shares of the
voting capital stock, and the names and addresses and respective
stockholdings of each stockholder thereof holding one percent (1%)
or more of its voting capital stock.
(4) If the annual report, or the sworn statements provided for in
this section, do not furnish the information desired, because of any
chain of successive ownership or of stockholdings, or because of an
intermediate agency or agencies, or for any other reason, the
commission, by order, may require similar sworn statements from
any person or corporation who or which can give the necessary
information, as the commission may have discovered from its
investigations, to the end that the commission may obtain a complete
disclosure of the natural persons, firms, limited liability companies,
or corporations and their respective interests, who or which own or
control directly or indirectly one percent (1%) or more of the voting
capital stock of the reporting corporation.
(Formerly: Acts 1913, c.76, s.52; Acts 1933, c.190, s.6.) As amended
by P.L.59-1984, SEC.23; P.L.8-1993, SEC.107.
IC 8-1-2-50
Compelling production of books, papers, and records; offenses
Sec. 50. The commission may require, by order or subpoena to be
served on any public utility in the same manner that a summons is
served in a civil action in the circuit court, the production, within the
state, at such time and place as it may designate, of any books,
accounts, papers, or records kept by said public utility in any office
or place without the state of Indiana, or verified copies in lieu
thereof, if the commission shall so order, in order that an
examination thereof may be made by the commission or under its
direction. Any public utility failing or refusing, after reasonable
written notice, to comply with any such order or subpoena shall, for
each day it shall so fail or refuse, forfeit and pay into the state
treasury a sum of not less than fifty dollars ($50.00) nor more than
five hundred dollars ($500.00).
(Formerly: Acts 1913, c.76, s.53.)
IC 8-1-2-51
Investigations; commission
Sec. 51. For the purpose of making any investigation with regard
to any public utility, the commission shall have power to appoint, by
an order in writing, an agent, whose duties shall be prescribed in
such order. In the discharge of his duties, such agent shall have every
power whatsoever of an inquisitorial nature granted in this chapter
to the commission. The commission may conduct any number of
such investigations contemporaneously through different agents and
may delegate to such agent the taking of all testimony bearing upon
any investigation or hearing. The decision of the commission shall
be based upon its examination of all the testimony and records. The
recommendations made by such agents shall be advisory only, and
shall not preclude the taking of further testimony, if the commission
so orders, nor further investigation.
(Formerly: Acts 1913, c.76, s.54.) As amended by P.L.59-1984,
SEC.24.
IC 8-1-2-52
Information; submission to commission
Sec. 52. Every public utility shall furnish to the commission all
information required by it to carry into effect the provisions of this
chapter and shall make specific answers to all questions submitted by
the commission.
(Formerly: Acts 1913, c.76, s.55.) As amended by P.L.59-1984,
SEC.25.
IC 8-1-2-53
Information; furnishing to commission
Sec. 53. Any public utility receiving from the commission any
blanks, with directions to fill the same, shall cause the same to be
properly filled out so as to answer fully and correctly each question
therein propounded, and, in case it is unable to answer any question,
it shall give a good and sufficient reason for such failure, and said
answers shall be verified under oath by the president, secretary,
superintendent or general manager or person in charge of such public
utility and returned to the commission at its office within the period
fixed by the commission. Whenever required by the commission,
every public utility shall deliver to the commission for examination
any or all maps, profiles, contracts, reports of engineer and all
documents, books, accounts, papers and records, or copies of any or
all of the same, with a complete inventory of all its property in such
form as the commission may direct.
(Formerly: Acts 1913, c.76, s.56.)
IC 8-1-2-54
Complaints against utilities; hearing
Sec. 54. Upon a complaint made against any public utility by any
mercantile, agricultural or manufacturing society or by any body
politic or municipal organization or by ten (10) persons, firms,
limited liability companies, corporations, or associations, or ten (10)
complainants of all or any of the aforementioned classes, or by any
public utility, that any of the rates, tolls, charges or schedules or any
joint rate or rates in which such petitioner is directly interested are
in any respect unreasonable or unjustly discriminatory, or that any
regulation, measurement, practice or act whatsoever affecting or
relating to the service of any public utility, or any service in
connection therewith, is in any respect unreasonable, unsafe,
insufficient or unjustly discriminatory, or that any service is
inadequate or can not be obtained, the commission shall proceed,
with or without notice, to make such investigation as it may deem
necessary or convenient. But no order affecting said rates, tolls,
charges, schedules, regulations, measurements, practice or act,
complained of, shall be entered by the commission without a formal
public hearing.
(Formerly: Acts 1913, c.76, s.57.) As amended by P.L.8-1993,
SEC.108.
IC 8-1-2-54.1
Actions for mandate to compel hearing or issuance of orders
Sec. 54.1. Notwithstanding any other law, if the commission fails
to conduct a formal public hearing or to issue an order within a
reasonable period of time upon a complaint that complies with
sections 54 or 61 of this chapter, the complainant may bring an
action for mandate under IC 34-27 to compel the commission to
conduct the hearing or to issue the order. However, notwithstanding
IC 34-27 or any other law or rule, the action for mandate may only
be filed in the court of appeals. For the purposes of IC 1-1-1-8, if any
part of this section is held invalid, the entire section is void.
As added by P.L.106-1989, SEC.1. Amended by P.L.1-1998, SEC.86.
IC 8-1-2-55
Complaints against utilities; notice to utilities
Sec. 55. The commission shall, prior to such formal hearing,
notify the public utility complained of that a complaint has been
made, and ten (10) days after such notice has been given, the
commission may proceed to set a time and place for a hearing and an
investigation as hereinafter provided.
(Formerly: Acts 1913, c.76, s.58.)
IC 8-1-2-56
Complaints; notice to public utility and complainant
Sec. 56. The commission shall give the public utility and the
complainant, if any, ten (10) days' notice of the time and place when
and where such hearing and investigation will be held and such
matters considered and determined. Both the public utility and
complainant shall be entitled to be heard and shall have process to
enforce the attendance of witnesses.
(Formerly: Acts 1913, c.76, s.59.)
IC 8-1-2-57
Complaints against utilities; separate hearings
Sec. 57. The commission may, in its discretion, when complaint
is made of more than one (1) rate or charge, order separate hearings
thereon, and may consider and determine the several matters
complained of separately and at such times as it may prescribe. No
complaint shall at any time be dismissed because of the absence of
direct damage to the complainant.
(Formerly: Acts 1913, c.76, s.60.)
IC 8-1-2-58
Complaints against utilities; investigations
Sec. 58. Whenever the commission shall believe that any rate or
charge may be unreasonable or unjustly discriminatory or that any
service is inadequate, or can not be obtained, or that an investigation
of any matters relating to any public utility should for any reason be
made, it may, on its motion, summarily investigate the same, with or
without notice.
(Formerly: Acts 1913, c.76, s.61.)
IC 8-1-2-59
Complaints against utilities; investigations; hearing
Sec. 59. If, after making such investigation, the commission
becomes satisfied that sufficient grounds exist to warrant a formal
hearing being ordered as to the matter so investigated, it shall furnish
such public utility interested a statement notifying the public utility
of the matters under investigation. Ten (10) days after such notice
has been given, the commission may proceed to set a time and place
for a hearing and an investigation, as hereinbefore provided.
(Formerly: Acts 1913, c.76, s.62.)
IC 8-1-2-60
Complaints against utilities; hearings; decision and order
Sec. 60. Notice of the time and place for such hearing shall be
given to the public utility and to such other interested persons as the
commission shall deem necessary, as provided in section 56 of this
chapter, and thereafter proceedings shall be had and conducted in
reference to the matter investigated in like manner as though
complaint had been filed with the commission relative to the matter
investigated, and the same order or orders may be made in reference
thereto as if such investigation had been made on complaint.
(Formerly: Acts 1913, c.76, s.63.) As amended by P.L.59-1984,
SEC.26.
IC 8-1-2-61
Complaint by utility; contents; notice; summary orders in certain
cases; public hearings
Sec. 61. (a) Any public utility may make complaint as to any
matter affecting its own rates or service. The petition or complaint
must include a statement as to whether the utility, if a not-for-profit
water utility or municipal utility, has any outstanding indebtedness
to the federal government. The public utility shall publish a notice of
the filing of such petition or complaint in a newspaper of general
circulation published in any county in which the public utility
renders service. An order affecting rates or service may be entered by
the commission without a formal public hearing, if:
(1) the utility is a not-for-profit water utility or a municipal
utility; and
(2) the utility has obtained written consent to obtain an order
affecting its rates from the commission without a formal
hearing from any agency of the federal government with which
the utility has outstanding evidence of indebtedness to the
federal government.
The commission may, however, on its own motion require a formal
public hearing, and shall, upon a motion filed by the utility consumer
counselor, by any public or municipal corporation, or by ten (10)
individuals, firms, corporations, limited liability companies, or
associations, or ten (10) complainants of all or any of these classes,
hold a formal public hearing with respect to any such petition or
complaint.
(b) In any general rate proceeding under subsection (a) which
requires a public hearing and in which an increase in revenues is
sought which exceeds the sum of two million five hundred thousand
dollars ($2,500,000), the commission shall conduct at least one (1)
public hearing in the largest municipality located within such utility's
service area.
(Formerly: Acts 1913, c.76, s.64; Acts 1951, c.161, s.1; Acts 1963,
c.187, s.1.) As amended by Acts 1979, P.L.85, SEC.3; P.L.103-1983,
SEC.3; P.L.8-1993, SEC.109.
IC 8-1-2-61.5
Rate orders; formal public hearing; adoption of rules
Sec. 61.5. (a) An order affecting rates of service may be entered
by the commission without a formal public hearing in the case of any
public or municipally owned utility that:
(1) serves less than five thousand (5,000) customers;
(2) primarily provides retail service to customers; and
(3) does not serve extensively another utility.
(b) The commission may require a formal public hearing on any
petition or complaint filed under this section concerning a rate
change request by a utility upon its own motion or upon motion of
any of the following:
(1) The utility consumer counselor.
(2) A public or municipal corporation.
(3) Ten (10) individuals, firms, limited liability companies,
corporations, or associations.
(4) Ten (10) complainants of any class described in this
subsection.
(c) A not-for-profit water utility or a not-for-profit sewer utility
must include in its petition a statement as to whether it has an
outstanding indebtedness to the federal government. When an
indebtedness is shown to exist, the commission shall require a formal
hearing, unless the utility also has included in its filing written
consent from the agency of the federal government with which the
utility has outstanding indebtedness for the utility to obtain an order
affecting its rates from the commission without a formal hearing.
(d) Notwithstanding any other provision of this chapter, the
commission may:
(1) on its own motion; or
(2) at the request of:
(A) the utility consumer counselor;
(B) a water or sewer utility described in subsection (a);
(C) ten (10) individuals, firms, limited liability companies,
corporations, or associations; or
(D) ten (10) complainants of any class described in this
subsection;
adopt a rule under IC 4-22-2, or issue an order in a specific
proceeding, providing for the development, investigation, testing,
and use of regulatory procedures or generic standards with respect to
water or sewer utilities described in subsection (a) or their services.
(e) The commission may adopt a rule or enter an order under
subsection (d) only if it finds, after notice and hearing, that the
proposed regulatory procedures or standards are in the public interest
and promote at least one (1) of the following:
(1) Utility cost minimalization to the extent that a utility's
quality of service or facilities are not diminished.
(2) A more accurate evaluation by the commission of a utility's
physical or financial conditions or needs.
(3) A less costly regulatory procedure for a utility, its
consumers, or the commission.
(4) Increased utility management efficiency that is beneficial to
consumers.
As added by P.L.88-1985, SEC.5. Amended by P.L.116-1987, SEC.1;
P.L.107-1989, SEC.1; P.L.8-1993, SEC.110; P.L.159-1999, SEC.1;
P.L.226-2001, SEC.1.
IC 8-1-2-61.6
Water utilities with less than 5,000 customers; changes in
wholesale rates; notice; rate relief
Sec. 61.6. (a) This section applies to water utilities that serve less
than five thousand (5,000) customers.
(b) As used in this section, "purchaser" means a water utility that
buys water from another water utility on a wholesale basis.
(c) As used in this section, "supplier" means a water utility that
provides water to another water utility on a wholesale basis.
(d) As used in this section, "water utility" means:
(1) an investor owned water utility;
(2) a municipally owned water utility;
(3) a conservancy district (as described in IC 14-33); or
(4) a nonprofit water utility.
(e) Notwithstanding section 42 of this chapter, whenever a
supplier petitions the commission for a change in rates or charges
that affect its wholesale rates, the supplier shall notify each of its
wholesale customers by United States registered mail. The notice
must include the cause number assigned to the supplier's petition.
(f) Upon notification by the supplier, the purchaser of a wholesale
water supply may notify the secretary of the commission of its intent
to monitor its supplier's cause. The commission shall then provide a
copy of the supplier's prehearing conference order upon its approval
to the purchaser.
(g) If the purchaser requests simultaneous rate relief for its cost of
water in conjunction with the relief requested by its supplier, the
purchaser shall complete and file forms prescribed by the
commission within fourteen (14) days of the supplier's case in chief.
(h) After the purchaser has filed the forms as described in
subsection (g), the commission may provide rate relief to the
purchaser simultaneously with an order approved for its supplier.
As added by P.L.107-1989, SEC.2. Amended by P.L.1-1995, SEC.54.
IC 8-1-2-61.7
Petition for review of rates and charges for wholesale sewage
service contracts
Sec. 61.7. (a) As used in this section, "utility" refers to a
wastewater utility that:
(1) is owned or operated by a political subdivision (as defined
in IC 36-1-2-13); and
(2) is not under the jurisdiction of the commission for the
approval of rates and charges.
(b) As used in this section, "wholesale sewage service" means the
collection, treatment, purification, and disposal in a sanitary manner
of liquid and solid waste, sewage, night soil, and industrial waste
provided by a utility to another utility.
(c) A utility that:
(1) either provides or receives wholesale sewage service; and
(2) negotiates to renew or enter into a new contract for
wholesale sewage service on expiration of a contract for the
same wholesale sewage service;
may file a petition for review of rates and charges for wholesale
sewage service with the commission or the circuit or superior court
with jurisdiction in the county where the utility has its principal
office.
(d) If a utility files a petition under subsection (c), the following
apply:
(1) The utility that provides the wholesale sewage service has
the burden of proving that the rates and charges are just and
reasonable.
(2) A petition concerning the same rates and charges may not be
filed with both the commission and a court.
(3) If multiple petitions concerning the same rates and charges
are filed, all petitions filed after the first petition filed must be:
(A) consolidated with the first petition filed; and
(B) heard in the forum in which the first petition was filed.
(4) The petition is not subject to IC 36-9-23 or IC 36-9-25.
(5) If the petition is heard by a court, the court shall hear the
petition de novo.
(e) After notice and hearing, the commission may issue an order
determining whether the rates and charges that are the subject of a
petition filed with the commission under subsection (c) are just and
reasonable. The order of the commission is a final order for purposes
of IC 8-1-3.
(f) This section does not:
(1) authorize the commission to revise rates and charges of a
utility for any other purpose other than as stated in this section;
or
(2) otherwise return or subject a utility to the jurisdiction of the
commission.
(g) The commission may adopt rules under IC 4-22-2 to
implement this section.
As added by P.L.251-2013, SEC.1.
IC 8-1-2-62
Evidence; compelling production; witnesses; compelling
attendance
Sec. 62. Each of the commissioners and every agent provided for
in this chapter shall have power to administer oaths, certify to
official acts, issue subpoenas, compel the attendance of witnesses,
and compel the production of books, accounts, papers, records,
documents and testimony. In case of disobedience on the part of any
person or persons to comply with any order of the commission or any
commissioner or any subpoena, or on the refusal of any witness to
testify to any matter regarding which he may be lawfully interrogated
before the commission, or its authorized agent, it shall be the duty of
the circuit or superior court of any county, on application of a
commissioner, to compel the obedience to the requirements of a
subpoena issued from such court or a refusal to testify therein.
(Formerly: Acts 1913, c.76, s.65.) As amended by P.L.59-1984,
SEC.27.
IC 8-1-2-63
Witnesses; expenses
Sec. 63. Each witness who shall appear before the commission or
its agent by its order, shall receive for his attendance the fees and
mileage now provided for witnesses in civil cases in courts of record
which shall be audited and paid by the state, in the same manner as
other expenses are audited and paid, upon the presentation of proper
vouchers sworn to by such witnesses and approved by the chairman
of the commission. No witnesses subpoenaed at the instance of
parties other than the commission shall be entitled to compensation
from the state for attendance or travel unless the commission shall
certify that his testimony was material to the matter investigated;
Provided, That the commission shall have power to pass upon,
approve and limit the expenditures of a public utility in connection
with a rate case which are to be charged against the rate base and to
be amortized over a period of years as determined by the
commission; it being the intent and purpose to prevent excessive
expenditures by the utilities for expert witnesses, legal and
stenographic expenses in rate hearings and appraisals.
(Formerly: Acts 1913, c.76, s.66; Acts 1933, c.190, s.7.)
IC 8-1-2-64
Witnesses; depositions
Sec. 64. The commission, or any party, may, in any investigation,
cause the depositions of witnesses residing without the state to be
taken in the manner prescribed by law for like depositions in civil
actions in circuit courts.
(Formerly: Acts 1913, c.76, s.67.)
IC 8-1-2-65
Record of investigations
Sec. 65. A record shall be kept of all proceedings had before the
commission or its agent or any formal investigation had and all
testimony shall be taken down by the stenographer appointed by the
commission.
(Formerly: Acts 1913, c.76, s.68.)
IC 8-1-2-66
Investigations; transcript of evidence; admissibility
Sec. 66. A transcript copy of the evidence and proceedings, or any
specific part thereof, on any investigation, taken by the stenographer
appointed by the commission, being certified under oath by such
stenographer to be a true and correct transcript of all the testimony
on the investigation, of a particular witness or of other specific part
thereof, carefully prepared by him from his original notes, and to be
a correct statement of the evidence and proceedings had on such
investigations so purporting to be taken and transcribed, shall be
received in evidence with the same effect as if such reporter were
present and testified to the fact so certified.
(Formerly: Acts 1913, c.76, s.70.)
IC 8-1-2-67
Investigations; transcript of evidence; copy
Sec. 67. A copy of such transcript shall be furnished on terms
fixed by the commission to any party to such investigation.
(Formerly: Acts 1913, c.76, s.71.)
IC 8-1-2-68
Rates and charges; order fixing
Sec. 68. Whenever, upon an investigation, the commission shall
find any rates, tolls, charges, schedules, or joint rate or rates to be
unjust, unreasonable, insufficient, or unjustly discriminatory, or to
be preferential or otherwise in violation of any of the provisions of
this chapter, the commission shall determine and by order fix just
and reasonable rates, tolls, charges, schedules, or joint rates to be
imposed, observed, and followed in the future in lieu of those found
to be unjust, unreasonable, insufficient, or unjustly discriminatory or
preferential or otherwise in violation of any of the provisions of this
chapter.
(Formerly: Acts 1913, c.76, s.72.) As amended by P.L.59-1984,
SEC.28.
IC 8-1-2-69
Complaints against utilities; orders of commission
Sec. 69. Whenever, upon the investigation made under the
provisions of this chapter, the commission shall find any regulations,
measurements, practices, acts, or service to be unjust, unreasonable,
unwholesome, unsanitary, unsafe, insufficient, preferential, unjustly
discriminatory, or otherwise in violation of any of the provisions of
this chapter, or shall find that any service is inadequate or that any
service which can be reasonably demanded can not be obtained, the
commission shall determine and declare and by order fix just and
reasonable measurements, regulations, acts, practices, or service to
be furnished, imposed, observed, and followed in the future in lieu
of those found to be unjust, unreasonable, unwholesome, unsanitary,
unsafe, insufficient, preferential, unjustly discriminatory, inadequate,
or otherwise in violation of this chapter, as the case may be, and shall
make such other order respecting such measurement, regulation, act,
practice, or service as shall be just and reasonable.
(Formerly: Acts 1913, c.76, s.73.) As amended by P.L.59-1984,
SEC.29.
IC 8-1-2-70
Expenses of investigations
Sec. 70. In its order upon any investigation made under the
provisions of this chapter or IC 8-1.5-3, either upon complaint
against any municipal utility, or upon the petition of any such
municipal utility, or upon the initiation of the commission, the
commission shall ascertain and declare the expenses incurred by it
upon such investigation, and the municipal utility affected thereby
shall pay into the commission public utility fund account described
in IC 8-1-6-2 the amount of the expenses, so ascertained and
declared, within a time to be fixed in the order, not exceeding twenty
(20) days from the date thereof. The commission shall cause a
certified copy of all such orders to be delivered to an officer or agent
of the municipal utility affected thereby, and all such orders shall, of
their own force, take effect and become operative twenty (20) days
after service thereof unless a different time be provided in said order.
Any order of the commission as may increase any rate of such
municipal utility shall not take effect until such expenses are paid
into the commission public utility fund account described in
IC 8-1-6-2.
(Formerly: Acts 1913, c.76, s.74; Acts 1925, c.60, s.1; Acts 1963,
c.187, s.2; Acts 1969, c.260, s.1.) As amended by P.L.59-1984,
SEC.30; P.L.384-1987(ss), SEC.6; P.L.251-2013, SEC.2.
IC 8-1-2-71
Rate schedules; changes
Sec. 71. All public utilities to which the order applies shall make
such changes in their schedule on file as may be necessary to make
the same conform to said order, and no change shall thereafter be
made by any public utility in any such rates, tolls, or charges, or any
joint rate or rates, without the approval of the commission. Certified
copies of all other orders of the commission shall be delivered to the
public utility affected thereby in like manner and the same shall take
effect within such time thereafter as the commission shall prescribe.
(Formerly: Acts 1913, c.76, s.75.)
IC 8-1-2-72
Orders; rescission; modification
Sec. 72. The commission may, at any time, upon notice to the
public utility and after opportunity to be heard as provided in
sections 54 through 67 of this chapter, rescind, alter, or amend any
order fixing any rate or rates, tolls, charges, or schedules, or any
other order made by the commission, and certified copies of the same
shall be served and take effect as provided in this chapter for original
orders.
(Formerly: Acts 1913, c.76, s.76.) As amended by P.L.59-1984,
SEC.31.
IC 8-1-2-73
Burden of proof; proceedings against utilities
Sec. 73. In all trials, actions, and proceedings arising under the
provisions of this chapter or growing out of the exercise of the
authority and powers granted in this chapter to the commission, the
burden of proof shall be upon the party adverse to such commission
or seeking to set aside any determination, requirement, direction, or
order of said commission to show that the determination,
requirement, direction, or order of the commission complained of is
unreasonable or unlawful, as the case may be.
(Formerly: Acts 1913, c.76, s.84.) As amended by P.L.59-1984,
SEC.32.
IC 8-1-2-74
Investigations; self-incrimination
Sec. 74. No person shall be excused from testifying or from
producing books, accounts, and papers in any proceeding based upon
or growing out of any violation of the provisions of this chapter on
the ground or for the reason that the testimony or evidence,
documentary or otherwise, required of him would incriminate him or
subject him to penalty or forfeiture; but no person having so testified
shall be prosecuted or subjected to any penalty or forfeiture for or on
account of any transaction, matter, or thing concerning which he may
have testified or produced any documentary evidence; provided, that
no person testifying shall be exempted from prosecution or
punishment for perjury in so testifying.
(Formerly: Acts 1913, c.76, s.86.) As amended by P.L.59-1984,
SEC.33.
IC 8-1-2-75
Orders of commission; distribution of copies
Sec. 75. Upon application of any person, the commission shall
furnish certified copies, under the seal of the commission, of any
order made by it, which shall be prima facie evidence of the facts
stated therein.
(Formerly: Acts 1913, c.76, s.87.)
IC 8-1-2-75.5
Telegraph utility stocks, bonds, commercial paper, and other
evidences of indebtedness; authority to issue
Sec. 75.5. Any public utility within this state organized for the
conveyance of messages by telegraph may issue stocks, bonds,
commercial paper, or other evidences of indebtedness without the
approval of the commission. Such a public utility is exempt from the
provisions of sections 76, 77, 78, 79, and 80 of this chapter.
As added by Acts 1980, P.L.66, SEC.1.
IC 8-1-2-76
Stocks, bonds, commercial paper, and other evidences of
indebtedness; limitations upon authority to issue
Sec. 76. No public utility shall hereafter issue for any purposes
connected with or relating to any part of its business, any stocks,
certificates of stock, bonds, notes or other evidences of indebtedness,
payable at periods of more than twelve (12) months, to an amount
exceeding that which may from time to time be reasonably necessary,
determined as herein provided, for the purpose for which issue of
stock, certificates of stock, bonds, notes or other evidences of
indebtedness may be authorized.
(Formerly: Acts 1913, c.76, s.88.)
IC 8-1-2-77
Stock; consideration; discount or premium
Sec. 77. No public utility shall issue any stock or certificate of
stock, except in consideration of money or of labor or property at its
current fair cash value as found and determined by the commission
actually received by it. No stock or certificate of stock shall be sold
at a discount or premium without the approval of the commission and
if sold at a discount, the commission shall make a record thereof and
give such publicity of the facts as it may deem necessary at the
expense of the utility. No public utility shall issue any bonds, notes,
or other evidences of indebtedness except for money or labor or
property estimated at its current fair cash value as found and
determined by the commission actually received by it equal to a sum
to be approved by the commission not less than seventy-five (75) per
cent of the face value thereof. The amount of bonds, notes, and other
evidences of indebtedness which any public utility may issue shall be
reasonable in aggregate amount, due consideration being given to the
nature of the business in which the corporation is engaged, its credit,
future prospects, and earnings, and the effect which such issue may
have upon the management and efficient operation of the public
utility.
(Formerly: Acts 1913, c.76, s.89; Acts 1933, c.190, s.7a; Acts 1939,
c.19, s.1; Acts 1941, c.37, s.1.)
IC 8-1-2-78
Stocks, bonds, commercial paper, and other evidences of
indebtedness; authority to issue
Sec. 78. A public utility, as defined in section 1 of this chapter,
may, with the approval of the commission, issue stock, certificates
of stock, bonds, notes, or other evidence of indebtedness payable at
periods of more than twelve (12) months after the date thereof, for
the purpose of and to the extent required for obtaining funds
sufficient for:
(a) the acquisition of property, material, or working capital;
(b) the construction, completion, extension, or improvement of
its facilities, plant, or distributing system;
(c) the improvement of its service;
(d) the discharge or lawful refunding of its obligations; or
(e) the reimbursement of its treasury for money actually
expended from income, or from any other money in the treasury
of the public utility, for such purposes, not secured or obtained
from the issue of stock, bonds, notes, or other evidence of
indebtedness of such public utility, where the applicant shall
have kept its accounts and vouchers of such expenditures in
such manner as to enable the commission to ascertain the
amount of money so expended and the purpose for which such
expenditure was made.
(Formerly: Acts 1913, c.76, s.90; Acts 1939, c.19, s.2; Acts 1941,
c.37, s.2.) As amended by P.L.59-1984, SEC.34.
IC 8-1-2-79 Version a
Securities; issuance; approval; fraud; offense
Note: This version of section effective until 7-1-2014. See also
following version of this section, effective 7-1-2014.
Sec. 79. (a) Whenever a public utility desires to issue bonds, notes
or other evidences of indebtedness, payable more than one (1) year
from the execution thereof, or preferred or common stock, it shall file
with the commission a petition verified by its president or
vice-president, and secretary or assistant secretary, or by two (2) of
its incorporators, if it has no such officers, setting forth:
(1) the principal amount of bonds, notes, or other evidences of
indebtedness, and the par value or number of shares of preferred
and common stock;
(2) the minimum price for which said securities are to be
disposed of or sold;
(3) the purposes for which said securities are to be disposed of
or sold;
(4) the description, cost, or value of any property acquired or to
be acquired from the proceeds of the disposal or sale of said
securities;
(5) a balance sheet and income account; and
(6) all other information that may be relevant or that may be
required by the commission.
For the purpose of enabling it to determine whether the proposed
issue is in the public interest, in accordance with laws touching the
issuance of securities by public utilities, and reasonably necessary in
the operation and management of the business of the utility in order
that the utility may provide adequate service and facilities, the
commission also may consider the total outstanding capitalization of
the utility, including the proposed issue, in relation to the total value
of or investment in the property of the utility, including the property
to be acquired by the proposed issue, as shown by the balance sheet,
accounts, or reports of the utility, the records of the commission, or
other evidence, and the character and proportionate amount of each
kind of security, including the proposed issue, and the unamortized
discount suffered by the utility in the sale of the outstanding
securities. The commission shall make such further inquiry or
investigation, hold such hearing or hearings, and examine such
witnesses, books, papers, documents, or contracts as it may deem of
importance in enabling it to reach a decision.
(b) An owner, officer, or agent of any public utility who
knowingly violates this section, or knowingly makes any material
misrepresentation or misstatements in connection with this section,
commits a Class D felony.
(Formerly: Acts 1913, c.76, s.91; Acts 1933, c.190, s.8.) As amended
by Acts 1978, P.L.2, SEC.801.
IC 8-1-2-79 Version b
Securities; issuance; approval; fraud; offense
Note: This version of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
Sec. 79. (a) Whenever a public utility desires to issue bonds,
notes, or other evidences of indebtedness, payable more than one (1)
year from the execution thereof, or preferred or common stock, it
shall file with the commission a petition verified by its president or
vice-president, and secretary or assistant secretary, or by two (2) of
its incorporators, if it has no such officers, setting forth:
(1) the principal amount of bonds, notes, or other evidences of
indebtedness, and the par value or number of shares of preferred
and common stock;
(2) the minimum price for which said securities are to be
disposed of or sold;
(3) the purposes for which said securities are to be disposed of
or sold;
(4) the description, cost, or value of any property acquired or to
be acquired from the proceeds of the disposal or sale of said
securities;
(5) a balance sheet and income account; and
(6) all other information that may be relevant or that may be
required by the commission.
For the purpose of enabling it to determine whether the proposed
issue is in the public interest, in accordance with laws touching the
issuance of securities by public utilities, and reasonably necessary in
the operation and management of the business of the utility in order
that the utility may provide adequate service and facilities, the
commission also may consider the total outstanding capitalization of
the utility, including the proposed issue, in relation to the total value
of or investment in the property of the utility, including the property
to be acquired by the proposed issue, as shown by the balance sheet,
accounts, or reports of the utility, the records of the commission, or
other evidence, and the character and proportionate amount of each
kind of security, including the proposed issue, and the unamortized
discount suffered by the utility in the sale of the outstanding
securities. The commission shall make such further inquiry or
investigation, hold such hearing or hearings, and examine such
witnesses, books, papers, documents, or contracts as it may deem of
importance in enabling it to reach a decision.
(b) An owner, officer, or agent of any public utility who
knowingly violates this section, or knowingly makes any material
misrepresentation or misstatements in connection with this section,
commits a Level 6 felony.
(Formerly: Acts 1913, c.76, s.91; Acts 1933, c.190, s.8.) As amended
by Acts 1978, P.L.2, SEC.801; P.L.158-2013, SEC.130.
IC 8-1-2-80
Stocks, bonds, commercial paper, and evidences of indebtedness;
certificate of authority for issuance
Sec. 80. If the commission shall determine that such proposed
issue complies with the provisions of this chapter, such authority
shall thereupon be granted, and it shall issue to the public utility a
certificate of authority stating:
(a) the amount of such stocks, certificates of stock, bonds,
notes, or other evidences of indebtedness, reasonably necessary
for the purposes for which they are to be issued and the
character of the same; and
(b) the purposes for which they are to be issued and the
property or services to be acquired thereby valued in detail.
Such public utility shall not apply the proceeds of such stock, bonds,
notes, or other evidences of indebtedness as aforesaid to any
purposes not specified in such certificate, nor issue such stock,
bonds, notes, or other evidences of indebtedness in greater amounts
than specified in such certificate. Nothing contained in this section
shall prohibit the commission from giving its consent to the issue of
bonds, notes, or other evidences of indebtedness for the
reimbursement of moneys actually expended before May 1, 1913,
from income for any of the purposes specified in section 78 of this
chapter if, in the judgment of the commission, such consent should
be granted, provided, application for such consent shall be made
prior to January 1, 1915. For the purpose of enabling it to determine
whether it should issue such an order, the commission shall make
such inquiry or investigation, hold such hearings and examine such
witnesses, books, papers, documents, or contracts as it may deem of
importance in enabling it to reach a determination. The commission
shall have power to impose such conditions upon a public utility in
issuing of securities as it may deem reasonable. Such public utilities
shall not, without the consent of the commission, apply said issue or
any proceeds thereof to any purpose not specified in such order.
Provided, however, that the commission shall have no power to
authorize the capitalization of any franchise to be a corporation, or
to authorize the capitalization of any franchise or the right to own,
operate, or enjoy any franchise whatsoever, in excess of the amount
(exclusive of any tax or annual charge) actually paid to the state or
to any political subdivision thereof as the consideration for the grant
of such franchise or right. The capitalization of a corporation formed
by the merger or consolidation of two (2) or more corporations shall
be subject to the approval of the commission, but in no event shall
such capitalization exceed the sum of the corporations so
consolidated, at the par value thereof, or such sums and any
additional sum actually paid in cash; nor shall any contract for
consolidation or lease be capitalized in the stock of any corporation
whatever; nor shall any corporation after May 1, 1913, issue any
bonds against or as a lien upon any contract for consolidation or
merger.
(Formerly: Acts 1913, c.76, s.92; Acts 1967, c.64, s.1.) As amended
by P.L.59-1984, SEC.35.
IC 8-1-2-81
Stocks, bonds, commercial paper, or other evidences of
indebtedness; state not obligated to pay or guarantee
Sec. 81. No provision of this chapter, and no deed or act done or
performed under or in connection therewith, shall be held or
construed to obligate the state of Indiana to pay or guarantee in any
manner whatsoever any stock or stock certificate or bond, note, or
other evidence of indebtedness authorized, issued, or executed under
the provisions of this chapter.
(Formerly: Acts 1913, c.76, s.93.) As amended by P.L.59-1984,
SEC.36.
IC 8-1-2-82
Franchise; sale; transfer; assignment or encumbrance
Sec. 82. Any person or association of persons other than an
existing public service corporation, which shall have, or may have
hereafter become the owner or assignee of the rights, powers,
privileges and franchises of any public utility created or organized by
or under the law of this state, by purchase under a mortgage sale, sale
in bankrupt proceedings, or sale under any judgment, order, decree
or proceedings of any court in this state, including the courts of the
United States sitting herein, shall within sixty (60) days after such
purchase or assignment, organize anew by filing articles of
incorporation as provided by law, and thereupon shall have the
rights, privileges and franchises which such utility had, or was
entitled to have, at the time of such purchase and sale. The new
corporation may issue stock, certificates of stock, bonds, notes or
other evidences of indebtedness for the property of the former
corporation thus acquired, in an amount not to exceed the true value
of such property, as found and determined by the commission, in
accordance with the provisions hereof.
(Formerly: Acts 1913, c.76, s.94.)
IC 8-1-2-83
Franchises; sale; transfer; assignment or encumbrance; special
rate contracts
Sec. 83. (a) No public utility, as defined in section 1 of this
chapter, shall sell, assign, transfer, lease, or encumber its franchise,
works, or system to any other person, partnership, limited liability
company, or corporation, or contract for the operation of any part of
its works or system by any other person, partnership, limited liability
company, or corporation, without the approval of the commission
after hearing. And no such public utility, except temporarily or in
case of emergency and for a period of not exceeding thirty (30) days,
shall make any special contract at rates other than those prescribed
in its schedule of rates theretofore filed with the commission, and in
force, with any other utility for rendering any service to or procuring
any service from such other utility, without the approval of the
commission. It shall be lawful, however, for any utility to make a
contract for service to or from another utility at rates previously filed
with and approved by the commission and in force.
(b) The approval of the commission of the sale, assignment,
transfer, lease, or encumbrance of a franchise or any part thereof
under this section shall not revive or validate any lapsed or invalid
franchise, or enlarge or add to the powers and privileges contained
in the grant of any franchise or waive any forfeiture. No such public
utility shall directly or indirectly purchase, acquire, or become the
owner of any of the property, stock, or bonds of any other public
utility authorized to engage or engaged in the same or a similar
business, or operating or purporting to operate under a franchise
from the same or any other municipality or under an indeterminate
permit unless authorized so to do by the commission.
(c) Nothing contained in this section shall prevent the holding of
stock lawfully acquired before May 1, 1913, or prohibit, upon the
surrender or exchange of said stock pursuant to a reorganization plan,
the purchase, acquisition, taking, or holding by the owner of a
proportionate amount of the stock of any new corporation organized
to take over at foreclosure or other sale, the property of the
corporation whose stock has been thus surrendered or exchanged.
(d) Every contract by any public utility for the purchase,
acquisition, assignment, or transfer to it of any of the stock of any
other public utility by or through any person, partnership, limited
liability company, or corporation without the approval of the
commission shall be void and of no effect, and no such transfer or
assignment of such stock upon the books of the corporation pursuant
to any such contract shall be effective for any purpose.
(Formerly: Acts 1913, c.76, s.95; Acts 1925, c.54, s.1.) As amended
by P.L.59-1984, SEC.37; P.L.23-1988, SEC.24; P.L.8-1993,
SEC.111.
IC 8-1-2-84
Merger or consolidation; acquisition, lease, sale, or encumbrance
of property
Sec. 84. (a) With the consent and approval of the commission and
with the authority of their stockholders as provided in this chapter,
but not otherwise, any two (2) or more public utilities furnishing a
like service or product and doing business in the same municipality
or locality within Indiana, or any two (2) or more public utilities
whose lines intersect or parallel each other within Indiana, may be
merged and may enter into contracts with each other which will
enable such public utilities to operate their plants or lines in
connection with each other. Before any merger shall become
effective there shall be filed with the commission proof that the
voting stockholders have authorized or consented to such merger. If
the law under which the company is incorporated or reorganized so
provides, then the authorization and consent of the holders of the
majority of the voting stock shall be shown. In all other cases the
consent of the holders of three-fourths (3/4) of the outstanding voting
stock of the company shall be shown. Such authority and consent
may be shown by filing with the commission a certified copy of the
minutes of a stockholders' meeting or by filing with the commission
a written consent of such holders or both. In case of such merger,
union, or consolidation, dissenting stockholders shall apply to the
commission within sixty (60) days after approval by the commission
to have the value of their stock assessed and determined.
Stockholders not so applying shall be held to have assented. Upon
the determination of the value of the stock of such dissenting
stockholder, the corporation in which they are stockholders may
within sixty (60) days pay the dissenting stockholders for their stock
the appraised value thereof, or may elect to abandon the merger,
union, or consolidation by filing with the commission notice of such
election.
(b) It shall not be necessary for any public utility merging, uniting,
or consolidating to comply with such provisions of any law
governing the procedure in the merger, union, or consolidation of
corporations as are in conflict with the provisions of this chapter.
This chapter shall not create any new right of merger or enlarge any
such right but is intended only to prescribe and simplify the
proceedings in mergers which are authorized by other statutes.
(c) Any such public utility may purchase or lease the used and
useful property, plant, or business, or any part thereof, of any other
such public utility at a price and on terms approved by the
commission. Whenever, in the case of any such purchase, the amount
to be paid by the purchaser for the property, plant, or business to be
purchased shall be an amount in excess of five percent (5%) of the
book cost to the purchaser of all the properties, plants, and business
owned by it at the time application is made to the commission for
approval of such purchase, or whenever, in the case of any such
lease, the book cost to the lessor of the property, plant, or business
to be leased shall be an amount in excess of five percent (5%) of the
book cost to the lessee of all the properties, plants, and business
owned by the lessee at the time application is made to the
commission for approval of such lease, there shall be obtained from
the holders of three-fourths (3/4) of the voting stock of such
purchaser or lessee their consent, authority, and approval to such
purchase or lease.
(d) Any such public utility may purchase or lease the used and
useful property, plant, or business, or any part thereof, of a
municipally owned utility, as used in this chapter, owned or operated
by a city having a population of more than one hundred fifty
thousand (150,000) but less than five hundred thousand (500,000),
with the approval of the commission at a price or rental and on terms
approved by the commission.
(e) Any such public utility may sell or lease its used or useful
property, plant, or business, or any part thereof, to any other such
public utility at a price and on terms approved by the commission.
Whenever in the case of any such sale or lease the book cost to the
seller or lessor of such property, plant, or business to be sold or
leased shall be an amount in excess of five percent (5%) of the book
cost to such seller or lessor of all the properties, plants, and business
owned by it at the time application is made to the commission for
approval of such sale or lease, there shall be obtained from the
holders of three-fourths (3/4) of the voting stock of such seller or
lessor their consent, authority, and approval to such sale or lease.
Whenever in the case of any such sale or lease the book cost to the
seller or lessor of such property, plant, or business to be sold or
leased shall be an amount in excess of twenty percent (20%) of the
book cost to such seller or lessor of all the properties, plants, and
business owned by it at the time application is made to the
commission for approval of such sale or lease, dissenting
stockholders of such seller or lessor shall, if the sale or lease is
consummated, be paid for their stock the appraised value thereof as
determined by the commission. Dissenting stockholders in such a
case shall, within sixty (60) days after publication of notice of the
approval by the commission of such sale or lease, apply to the
commission to have the value of their stock assessed and determined.
Stockholders not so applying shall be held to have assented. Such
publication of notice shall be given by the seller or lessor to its
stockholders by publishing such notice once each week for three (3)
successive weeks in a newspaper of general circulation printed in the
English language and published in Marion County, Indiana. Upon
determination of the value of the stock of such dissenting
stockholders such seller or lessor may within sixty (60) days either
pay the dissenting stockholders for their stock the appraised value
thereof or elect to abandon the sale or lease by filing with the
commission notice of its election to abandon.
(f) No such public utility shall encumber its used and useful
property or business or any part thereof without the approval of the
commission and the consent, authority, and approval of the owners
of three-fourths (3/4) of its voting stock.
(g) Any public utility corporation upon the order of a majority of
its board of directors and with the approval of the commission may
acquire, purchase or lease any real or personal estate or other
property of any other public utility not used and useful in the public
service of such other public utility.
(h) Any public utility corporation, upon the order of a majority of
its board of directors and with the approval of the commission, may
sell and convey or lease to any other public utility corporation any of
its real or personal estate or other property not used and useful in its
public service.
(Formerly: Acts 1913, c.76, s.95.5; Acts 1925, c.54, s.2; Acts 1939,
c.19, s.3; Acts 1973, P.L.61, SEC.1.) As amended by P.L.23-1988,
SEC.25; P.L.1-1989, SEC.15; P.L.12-1992, SEC.57.
IC 8-1-2-85
Municipally owned utilities; securities; fee for issuance
Sec. 85. The commission shall charge every municipality
receiving permission from it to issue any bonds, notes, or other
securities an amount equal to twenty-five cents ($.25) for each one
hundred dollars ($100) for such bonds, notes, or other securities, but
in no case shall the fee be less than one hundred dollars ($100). All
of such fees assessed hereunder shall be paid to the secretary of the
commission within thirty (30) days of the receipt of the bond
proceeds by the municipality and only if the bonds, notes, or other
securities are issued. The fees collected by the secretary shall be paid
into the state treasury and deposited in the commission public utility
fund account established under IC 8-1-6, as if they were fees
collected under IC 8-1-6.
(Formerly: Acts 1913, c.76, s.96; Acts 1925, c.71, s.1; Acts 1947,
c.317, s.1; Acts 1969, c.260, s.2.) As amended by Acts 1982, P.L.74,
SEC.2; P.L.23-1988, SEC.26.
IC 8-1-2-86
Second utility serving same area; declaration of public convenience
and necessity
Sec. 86. (a) No license, permit, or franchise shall be granted to
any person, copartnership, or corporation to own, operate, manage,
or control any plant or equipment of any public utility in any
municipality where there is in operation a public utility engaged in
similar service under a license, franchise, or permit without first
securing from the commission a declaration, after a public hearing,
of all parties interested, that public convenience and necessity
require such second public utility; provided, that any municipality
may purchase, condemn, and operate, or construct and operate, a
utility in such municipality for the purpose of transportation,
production, transmission, delivery, sale, and furnishing of heat, light,
water, and/or power to such municipality, and/or the public in and
within six (6) miles of the limits of such municipality, without the
consent of said commission, although there is operating in said
municipality a public utility engaged in a similar service under a
license, franchise, or indeterminate permit.
(b) Any permit, license, or franchise in existence on May 1, 1913,
which shall contain any term whatsoever interfering with the
existence of a second public utility is hereby declared to be against
public policy and is hereby amended in such manner as to permit a
municipality to grant a license, franchise, or permit for the operation
of such second public utility pursuant to the provisions of this
chapter.
(Formerly: Acts 1913, c.76, s.97; Acts 1933, c.190, s.9.) As amended
by P.L.59-1984, SEC.38.
IC 8-1-2-86.5
Territorial disputes between water utilities
Sec. 86.5. (a) As used in this section, "four (4) mile area" means
the area within four (4) miles of a municipality's corporate
boundaries.
(b) Except as provided in subsection (c), the commission, after
notice and hearing, may, by order, determine territorial disputes
between all water utilities.
(c) This subsection applies only to a municipality:
(1) having a population of less than seven thousand five
hundred (7,500); and
(2) that, as of January 1, 2007, has adopted an ordinance
exercising the power to regulate the furnishing of water to the
public granted by IC 36-9-2-14 within a four (4) mile area.
The commission may not determine a territorial dispute within a four
(4) mile area unless the territorial dispute concerns a geographic area
located in more than one (1) four (4) mile area.
As added by P.L.79-1988, SEC.1. Amended by P.L.175-2007,
SEC.10.
IC 8-1-2-87
Gas utilities; necessity certificates; requirements
Sec. 87. (a) When used in this section, unless the context
otherwise requires:
(1) The term "gas" means natural gas, artificial or manufactured
gas, and mixed gas.
(2) The term "necessity certificate" means a certificate of public
convenience and necessity issued by the commission pursuant to the
provisions of this section, which certificate shall be deemed an
indeterminate permit.
(3) The term "rural area" means territory within the state of
Indiana that is outside the corporate limits of a municipality.
(4) The term "gas utility" means and includes any public utility
selling or proposing to sell or furnish gas directly to any consumer or
consumers within the state of Indiana for his, its or their domestic,
commercial, or industrial use.
(5) The term "gas distribution service" means the furnishing or
sale of gas directly to any consumer within the state of Indiana for
his or its domestic, commercial, or industrial use.
(b) It is hereby declared that in order adequately to protect the
public interest in the distribution of gas to consumers within the state
of Indiana, it is necessary and desirable that to the extent provided in
this section the holding of necessity certificates should be required
as a condition precedent to the rendering of gas distribution service
in rural areas of the state of Indiana.
(c) After February 26, 1945, no gas utility shall commence the
rendering of gas distribution service in any rural area in the state of
Indiana in which it is not actually rendering gas distribution service
on February 26, 1945, without first obtaining from the commission
a necessity certificate authorizing such gas distribution service,
defining and limiting specifically the rural area covered thereby, and
stating that public convenience and necessity require such gas
distribution service within such rural area by such gas utility; and no
gas utility required by this section to hold a necessity certificate for
any rural area shall render gas distribution service within such a rural
area to any extent greater than that authorized by such necessity
certificate or shall continue to render gas distribution service within
such a rural area if and after such necessity certificate has been
revoked or transferred as in this section provided.
(d) Whenever any gas utility proposes to commence the rendering
of gas distribution service in any rural area in which it is not actually
rendering such service on February 26, 1945, it shall file with the
commission a verified application for a necessity certificate covering
such service by it. The commission shall, by regulations, prescribe
the form of application and such application shall conform to such
prescribed form. Within a reasonable time after the filing of any such
application, the commission shall fix a time and place for a public
hearing thereon. Notice of such hearing shall be given in such
manner and to such persons as is from time to time required by law
or by the regulations of the commission. Such hearing shall be held
in the manner prescribed for a hearing in sections 54 through 67 of
this chapter, and the provisions of such sections so far as applicable
shall apply to such hearing. Any person interested in such
proceedings, including without limiting the generality of the
foregoing any gas utility rendering gas distribution service within the
general service area (including territory within and without
municipalities) of which the rural area covered by the application
may reasonably be deemed a part, shall be permitted to appear either
in person or by attorney and offer evidence in support of or
opposition to the application. The applicant shall, at all times, have
the burden of proving by evidence each of the matters specified in
this subsection as necessary to be found by the commission before a
necessity certificate shall be issued by it. If the commission shall find
from the evidence, including such evidence, if any, as the
commission may cause to be introduced as a result of any
investigation which it may have made relative to the matter, that the
applicant therefor has lawful power and authority to obtain such
necessity certificate and to render the proposed gas distribution
service if it obtains such certificate, that he or it has the financial
ability to provide the proposed gas distribution service, that public
conveyance and necessity require the rendering of the proposed gas
distribution service, and that the public interest will be served by the
issuance of the necessity certificate to him or it, the application shall
be granted, subject to such terms, restrictions, and limitations as the
commission shall determine to be necessary and desirable in the
public interest; otherwise the application shall be denied.
(e) Upon approval by the commission given after notice and
public hearing given and held in the manner provided for in
subsection (d) in cases of applications for necessity certificates, but
not otherwise, any necessity certificate may:
(1) be sold, assigned, leased, or transferred by the holder
thereof to any person, firm, or corporation to whom a necessity
certificate might be lawfully issued; or
(2) be included in the property and rights encumbered under any
indenture of mortgage or deed of trust of such holder.
(f) Any necessity certificate may, upon application by the holder
to the commission, be revoked by the commission, in whole or in
part, after notice given and hearing held in the manner provided for
in subsection (d). Any necessity certificate may, after notice given
and hearing held in the manner provided for in subsection (d), be
revoked by the commission, in whole or in part, for the failure of the
holder to comply with any applicable order, rule, or regulation
prescribed by the commission in the exercise of its powers under this
chapter, or with any term, condition, or limitation of such necessity
certificate.
(Formerly: Acts 1913, c.76, s.97a; Acts 1945, c.53, s.1.) As amended
by P.L.59-1984, SEC.39; P.L.8-1993, SEC.112.
IC 8-1-2-87.5
Transportation of gas; necessity certificate; application; public
hearing; grounds for granting certificate; revocation
Sec. 87.5. (a) For purposes of this section, "transportation of gas"
means physical transmission, exchange, backhaul, displacement, or
any other means of transporting gas, including gathering.
(b) Any person, corporation, or other entity that:
(1) is engaged in the transportation of gas from outside Indiana
for direct sale or delivery to any end use consumer or
consumers within this state;
(2) is engaged in the transportation of gas solely within this
state on behalf of any end use consumer or consumers; or
(3) is an end use consumer engaged in the transportation within
this state of gas owned or acquired by such end use consumer
for use in this state, other than transportation on the premises
where the gas is consumed;
is a public utility as defined in section 1 of this chapter and must
obtain a necessity certificate from the commission before it may
engage in any activities described in this subsection. This subsection
does not apply to a gas utility operating pursuant to an indeterminate
permit or necessity certificate issued under section 87 of this chapter,
nor to the production, sale, and gathering of natural gas produced in
Indiana.
(c) As a condition for receiving the necessity certificate, such
person, corporation, or entity desiring to engage in the activities
described in subsection (b) shall file an application with the
commission. The commission shall hold a public hearing on the
application and provide notice in accordance with IC 8-1-1-8. The
commission shall prescribe the form of the application, the procedure
for the hearing, and the parties to whom notice is to be sent.
(d) Any interested person, including any gas utility authorized to
render gas distribution service within the service area covered by the
application, may appear either in person or by attorney and offer
evidence in support of or in opposition to the application. The
applicant has the burden of proving each of the matters specified in
this section. The commission may conduct an investigation and
introduce any evidence obtained as a result of the investigation at the
hearing.
(e) The commission shall grant the necessity certificate only if the
commission has found from the evidence that:
(1) the applicant has the power and authority to obtain the
certificate and render the requested service;
(2) the applicant has the financial ability to provide the
requested service;
(3) public convenience and necessity require the providing of
the requested service giving consideration to the availability of
gas service from any gas utility authorized to serve end use
customers within the geographic area covered by the
application; and
(4) the public interest will be served by the issuance of the
necessity certificate.
(f) The commission may revoke a necessity certificate in whole
or in part after a public hearing is held if:
(1) the holder fails to comply with any applicable order or rule
prescribed by the commission;
(2) the holder fails to comply with any term, condition, or
limitation of the necessity certificate; or
(3) the holder requests the commission to revoke the necessity
certificate.
(g) An end use consumer determined to be a public utility under
subsection (b) may not exercise the power of eminent domain
granted under IC 8-1-8. The limitations contained in sections 76
through 81 of this chapter do not apply to issues of stock or
certificates of stock, bonds, notes, or other evidence of indebtedness
issued by an end use consumer determined to be a public utility
under subsection (b).
(h) This section applies to sales or transportation of natural gas to
end users under contracts or agreements entered into after May 31,
1985. It does not apply to sales or transportation of natural gas to end
users under contracts or agreements entered into before June 1, 1985,
or any renewals or extensions of those contracts or agreements.
As added by P.L.89-1985, SEC.1.
IC 8-1-2-87.6
Exemption of Indiana produced natural gas; petition and hearing
on rates for purchase or transport
Sec. 87.6. (a) Except as provided in this section, the production,
gathering, sale, or transportation of Indiana produced natural gas is
exempt from this chapter.
(b) Any person, corporation, or other entity engaged in the
production, gathering, sale, or transportation of natural gas produced
in Indiana may petition the commission to:
(1) require a gas utility certified under section 86 or 87 of this
chapter to purchase or transport Indiana produced natural gas
owned by the petitioning entity; and
(2) set the rates for the purchase or transportation of that gas.
(c) Upon receiving a petition under subsection (b), the
commission may order the gas utility to transport or purchase the gas,
and shall conduct a public hearing to set the purchase or
transportation rates. The commission may only require the purchase
or transportation of Indiana produced natural gas that:
(1) is of pipeline quality and reliability; and
(2) is to be delivered to a facility of the transporting or
purchasing local distribution company that has adequate
capacity to accept and transport the volume of gas involved.
The commission shall provide notice of the hearing in accordance
with IC 8-1-1-8. The commission shall prescribe the form of the
petition, the procedures for the hearing, and the parties to whom
notice is to be sent.
(d) If the sale of Indiana produced natural gas to an end use
consumer for consumption in the franchise territory of a gas utility
with less than five thousand (5,000) customers detrimentally affects
the other end use consumers in the utility's franchise territory, the
utility may petition the commission to require the seller to instead
sell the gas to that utility at a rate and under terms and conditions set
by the commission.
(e) Any interested party may appear at a hearing conducted under
subsections (c) and (d) either in person or by attorney and offer
evidence in support of or in opposition to the petition. The
commission may conduct an investigation and introduce any
evidence obtained as a result of the investigation at the hearing.
(f) The commission may adopt rules under IC 4-22-2 to implement
this section.
As added by P.L.81-1986, SEC.1.
IC 8-1-2-87.7
Gas utilities; tariffs; reasonableness factors
Sec. 87.7. (a) The commission may, on its own motion or upon
petition of any customer, and after appropriate notice and hearing,
order any gas utility subject to its jurisdiction to file or change one
(1) or more gas transportation tariffs to better meet the needs of the
utility's customers.
(b) The commission shall determine and set reasonable rates,
terms, and conditions in the tariffs. In determining what is
reasonable, the commission may consider the following:
(1) The cost of providing the transportation service according
to generally accepted cost of service principles.
(2) The effects of the service on the consumers to whom it
would be available.
(3) The effects of the service on the industrial development of
the state.
(4) The effects of the transportation rate upon current customers
of the utility.
(5) The extent to which a transportation rate will aid the utility
in retaining its existing load or create opportunities to lower the
cost of gas supplies purchased on behalf of all ratepayers.
(6) Whether or not the proposed tariff is a negotiated tariff
between the utility and its customers.
(7) The extent to which the availability of transportation
services under the proposed tariff is restricted.
(8) Any other factors bearing upon the tariff resulting from
decisions of the Federal Energy Regulatory Commission, other
rulings of the commission, or applicable case law.
(9) The effect of contract obligations on the utility relating to
unavoidable gas costs for which the utility will be responsible.
(10) Whether or not the amount of transportation offered under
the proposed tariff is limited other than for reasons necessitated
by operational constraints.
(11) Any other factors the commission considers appropriate.
As added by P.L.117-1987, SEC.1.
IC 8-1-2-88
Repealed
(Repealed by P.L.27-2006, SEC.62.)
IC 8-1-2-88.5
Repealed
(Repealed by P.L.27-2006, SEC.62.)
IC 8-1-2-88.6
Access charges for interconnection to local exchange facilities
Sec. 88.6. (a) As used in this section, "telephone company" means
any individual, firm, partnership, cooperative organization,
unincorporated association, or corporation engaged in the business
of furnishing telecommunications service.
(b) Access charges paid by an interexchange carrier for
interconnection to local exchange facilities must be reasonable as
determined by the commission. A local exchange provider may not
make or grant any undue preference or advantage concerning its
pricing and provision of access to any telephone company providing
interexchange telecommunications service.
As added by P.L.81-1988, SEC.1.
IC 8-1-2-88.7
Telephone companies that are REA borrowers; rates sufficient to
repay financial assistance
Sec. 88.7. (a) As used in this section, "financial assistance"
means:
(1) a loan or loan guarantee; or
(2) a lien accommodation provided to secure a loan made by
another lender;
that is made by the Rural Electrification Administration of the United
States Department of Agriculture (REA) or by the Rural Telephone
Bank.
(b) As used in this section, "REA borrower" means a telephone
company subject to this chapter that is the recipient of financial
assistance.
(c) An REA borrower shall charge rates sufficient to enable the
REA borrower to:
(1) satisfy its reasonable expenses and obligations; and
(2) earn a rate of return on the property sufficient to cover the
REA borrower's cost of capital, including any financial
assistance and the interest thereon.
(d) So long as there remains any unpaid portion of any financial
assistance associated with the property of an REA borrower, the rates
of the REA borrower shall be set at a level sufficient to repay the
financial assistance regardless of any change in the status of the
property, including the full or partial retirement of the property or
any other change in the status of the property.
As added by P.L.74-1991, SEC.1. Amended by P.L.27-2006, SEC.5.
IC 8-1-2-89
Sewers and sewer systems; certificate of territorial authority;
municipal or county acquisition and operation
Sec. 89. (a) As used in this section, unless the context otherwise
requires, the following terms have the following meanings:
(1) "Sewage disposal service" means any public utility service
whereby liquid and solid waste, sewage, night soil, and
industrial waste of any single territorial area is collected,
treated, purified, and disposed of in a sanitary manner, and
includes all sewage treatment plant or plants, main sewers,
submain sewers, local and lateral sewers, intercepting sewers,
outfall sewers, force mains, pumping stations, ejector stations,
and all other equipment and appurtenances necessary or useful
and convenient for the rendition of such service.
(2) "Sewage disposal company" means any natural person, firm,
association, corporation, or partnership owning, leasing, or
operating any sewage disposal service within the rural areas of
this state, and all provisions of this chapter pertaining to a
public utility shall apply with equal force and effect to a sewage
disposal company, except insofar as said provisions may be
inconsistent with specific provisions of this section.
(3) "Rural area" means territory lying within the state of Indiana
and lying outside the corporate limits of a municipality.
(4) "Certificate of territorial authority" means a certificate of
convenience and necessity issued by the commission pursuant
to this section, which said certificate shall be deemed an
indeterminate permit, unless expressly conditioned otherwise by
the commission when issued.
(5) "Notice of hearing" means notice of the time, place, and
purpose of a hearing, given by publication in at least one (1)
newspaper of general circulation in each of the counties in
which the particular sewage disposal company operates or
proposes to operate and given also in writing by United States
registered mail:
(A) to each other sewage disposal company operating in
territory contiguous to the territory in which the particular
sewage disposal company operates or proposes to operate;
(B) to each municipality in territory contiguous and nearest
to the territory in which the particular sewage disposal
company operates or proposes to operate; and
(C) to such other persons or entities which the commission
may from time to time require by its rules and forms;
all such notices shall be so mailed as to be received by the
recipients at least ten (10) days prior to any hearing, or as
otherwise required by the commission.
(b) It is hereby declared to be in the public interest to provide for
the orderly development and rendering of sewage disposal service in
rural areas within the state of Indiana, and such public interest makes
it necessary and desirable that to the extent provided herein the
holding of a certificate of territorial authority should be required as
a condition precedent to the rendering of such service, and that such
operation be under the control, regulation, and supervision of the
commission, and such sewage disposal companies shall not be
subject to regulation by any municipality or county government or
metropolitan regulatory body, or any branch or subdivisions thereof
or substitute therefor in the form of special service districts, with the
exception that said sewage disposal company shall be subject to the
comprehensive plan, zoning, and subdivision requirements and
regulations of the governmental units having jurisdiction in the area.
However, all functions, powers, and duties of the state department of
health and the water pollution control board shall remain unaffected
by this section.
(c) No sewage disposal company shall commence the rendering
of sewage disposal service in any rural area in the state of Indiana in
which it is not actually rendering sewage disposal service, without
first obtaining from the commission a certificate of territorial
authority authorizing such sewage disposal service, finding that
public convenience and necessity require such sewage disposal
service within such rural area by such sewage disposal company, and
defining and limiting specifically the rural area covered thereby. No
sewage disposal company hereby required to hold such a certificate
shall render any additional sewage disposal service within such rural
area to any extent greater than that authorized by such certificate or
shall continue to render sewage disposal service within such rural
area if and after such certificate of territorial authority has been
revoked or transferred as in this section provided, unless in such
order of revocation or transfer the commission shall require
continued service until a new sewage disposal company or
municipality actually takes over such service. The commission shall
not have the power to require extension of such service by any
sewage disposal company into any additional territory than that
defined and limited in such a certificate without the consent of such
sewage disposal company.
(d) Whenever any sewage disposal company proposes to
commence the rendering of sewage disposal service in any rural area,
it shall file with the commission a verified application for a
certificate of territorial authority to cover the proposed service. The
commission shall by rule prescribe the form of the application and
the information to be contained therein, and such application by any
such company shall conform to such prescribed form. The
commission shall set the matter for hearing and notice of such
hearing shall be given to the parties and in the manner defined in this
section. Any city may, and upon petition to the commission shall, be
made a party to any service proposal if its territorial limits lie within
five (5) miles of the area to be serviced under this section.
(e) If, after notice of hearing and hearing on any application for
a certificate of territorial authority, the commission shall find from
the evidence introduced at such hearing, including any evidence
which the commission shall have caused to be introduced as a result
of any investigation which it may have made into the matter, that the
applicant has proved:
(1) lawful power and authority to apply for said certificate and
to operate said proposed service;
(2) financial ability to install, commence, and maintain said
proposed service; and
(3) public convenience and necessity require the rendering of
the proposed service in the proposed rural area by this particular
sewage disposal company; however, in the event the service is
proposed for a proposed rural real estate addition, division, or
development, or any part thereof, the reasonably expected
sewage disposal service requirements of the anticipated
residents may be found to constitute such public convenience
and necessity;
then the certificate of territorial authority, defining and limiting the
rural area to be covered thereby, shall be granted to the applicant,
subject to such terms, restrictions, limitations, and conditions,
including but not limited to a reasonable time in which to commence
operations, as the commission shall determine to be necessary and
desirable in the public interest.
(f) In cases of applications filed by two (2) or more sewage
disposal companies seeking the issuance of a certificate of territorial
authority for the same area or areas or any conflicting portions
thereof, the commission may either consider such applications
separately or by consolidation of two (2) or more or all within a
single hearing at its discretion and shall have the power to issue its
certificate after notice of hearing and hearing to any single qualified
sewage disposal company for a particular rural area, or, in the event
that the commission determines and finds that two (2) or more or all
applicants seeking the same area or areas or any conflicting portions
thereof are both or all qualified, then the commission shall have the
power to determine which is the better or best qualified, or whether
the same area or areas or any conflicting portions thereof shall be
divided between or among such qualified applicants. However, in no
event shall such area or areas or portions thereof be greater than that
for which the particular applicant applied, unless such sewage
disposal company shall consent and agree in writing to such
modification of its application and the issuance of such modified
certificate.
(g) After the issuance of such certificate, no other sewage disposal
company shall render sewage disposal service in the area or areas so
determined and so defined in any certificate of territorial authority
issued by the commission, except after notice of hearing and hearing,
and the determination and finding by the commission that public
convenience and necessity require that sewage disposal service in
said same area or areas be also rendered or offered by an additional
or another company, and the issuance of a certificate duly granted by
the commission as provided in this section.
(h) A sewage disposal company shall be required to furnish
reasonable adequate sewage disposal services and facilities for which
said service and facilities it shall be entitled to charge reasonable,
nondiscriminatory rates, subject to the jurisdiction of the commission
for the purpose of fixing said rates to be charged to patrons of such
sewage disposal company for sewage disposal service, and for such
purpose the commission is given jurisdiction to proceed in the same
manner and with like power as is provided by this chapter in the case
of public utilities.
(i) To encourage the installation of sewage treatment plants, and
sewers, mains, stations, and all other equipment and appurtenances
for rendering sewage disposal service in rural areas in close
proximity to municipalities, and to ensure that a sewage disposal
company which had made such installation in such area can recover
the cost of its investment, in the event that the area or areas or any
part thereof included within the territory granted under a certificate
of territorial authority shall be annexed by any municipality at any
time within twelve (12) years from the date that such certificate was
granted, a sewage disposal company operating under such certificate
shall continue to operate under such certificate of territorial
authority, subject to the exclusive jurisdiction and regulation of the
commission, for the unexpired portion of such period of twelve (12)
years from the date of granting such certificate, or, in the case of a
determinate permit specifying a term shorter than twelve (12) years,
then for the unexpired portion of such lesser period as specified by
such permit from the date of granting such permit. However, the
foregoing provisions in regard to continued operation within the
corporate limits of a municipality after annexation shall not affect the
right of the sewage disposal company to cease its operation of
providing sewage disposal service within such annexed territory
prior to the termination of said twelve (12) year or lesser determinate
permit period, upon thirty (30) days written notice to the
commission, the municipality, and all patrons.
(j) Upon approval by the commission given after notice of hearing
and hearing, but not otherwise, any certificate of territorial authority
may:
(1) be sold, assigned, leased, or transferred by the holder
thereof to any sewage disposal company to which a territorial
certificate might be lawfully issued; or
(2) be included in the property and rights encumbered under any
indenture of mortgage or deed of trust of such holder;
or any sewage treatment plant or plants, sewers, mains, stations, and
equipment and appurtenances for the rendering of sewage disposal
service, or any part thereof, may be sold, assigned, leased, or
transferred by the holder thereof to any municipality if these assets
lie within an area which shall have been annexed by such
municipality or lie within the given radius of miles from the
corporate limits of such municipality into which it is authorized to
render such services, if such municipality is prepared to render a
comparable sewage disposal service without loss of continuity of
service, and if the terms of such sale, assignment, lease, or transfer
are reasonable. However, once the commission has given its approval
to such transaction and the transaction itself is actually
consummated, the commission shall have no control over the sewage
disposal service henceforth rendered by such municipality as a
municipally owned utility (as defined in this chapter).
(k) Any certificate of territorial authority may, after notice of
hearing and hearing, be revoked by the commission, in whole or in
part, for the failure of the holder thereof to furnish reasonably
adequate sewage disposal service within the area or areas determined
and defined in such certificate of territorial authority, or for the
failure of the holder thereof to comply with any applicable order or
rule prescribed by the commission in the exercise of its powers under
this chapter, or for failure to comply with any term, condition, or
limitation of such certificate of territorial authority.
(l) After the commission revokes any certificate of territorial
authority under subsection (k) or after the county board of health
determines the existence of a serious health problem related to the
sewage disposal facility, the county commissioners of the county in
which the sewage disposal facility is located may acquire the facility,
subject to the approval of the acquisition by the county council,
except that the county commissioners may not acquire any facility
already acquired by any city or town. The county commissioners
shall acquire the sewage disposal facility by:
(1) gift, grant, purchase, or condemnation that is funded in the
same manner that cities and towns fund sewage treatment
acquisitions under IC 36-9; or
(2) a lease arrangement that is funded in the same manner that
cities and towns fund leases of sewage disposal facilities under
IC 36-9.
After acquisition, the county commissioners shall repair, operate, and
maintain the sewage disposal facility and charge user fees for these
services.
(Formerly: Acts 1913, c.76, s.97c; Acts 1957, c.313, s.2.) As
amended by Acts 1976, P.L.25, SEC.1; Acts 1981, P.L.11, SEC.41;
P.L.143-1985, SEC.186; P.L.23-1988, SEC.27; P.L.2-1992, SEC.76.
IC 8-1-2-90
Repealed
(Repealed by Acts 1982, P.L.74, SEC.6.)
IC 8-1-2-91
Grant of licenses, permits, or franchises; state corporations or
citizens
Sec. 91. No license, permit or franchise to own, operate, manage
or control any plant or equipment of any public utility shall be
hereafter granted or transferred except to a corporation duly
organized under the laws of the state of Indiana or to a citizen of
such state.
(Formerly: Acts 1913, c.76, s.99.)
IC 8-1-2-92
Indeterminate licenses, permits, or franchises; purchase or
condemnation by municipality
Sec. 92. (a) Every license, permit, or franchise granted after April
30, 1913, to any public utility shall have the effect of an
indeterminate permit subject to the provisions of this chapter, and
subject to the provisions that:
(1) the license, franchise, or permit may be revoked by the
commission for cause; or
(2) except as provided in IC 8-1-30-6, the municipality may
purchase or condemn the property as provided in IC 8-1.5-2,
IC 36-9-23, or IC 36-9-25, as applicable.
A municipality that is authorized to purchase property and a public
utility that is required to sell the property under subdivision (2) shall
do so at the value and according to the terms and conditions as
provided in IC 8-1.5-2, IC 36-9-23, or IC 36-9-25, as applicable.
(b) If this chapter should be repealed or annulled, then all such
indeterminate franchises, permits, or grants shall cease and become
inoperative, and in place thereof such utility shall be reinstated in the
possession and enjoyment of the license, permit, or franchise
surrendered by such utility at the time of the issue of the
indeterminate franchise, permit, or grant; but in no event shall such
reinstated license, permit, or franchise be terminated within a less
period than five (5) years from the date of the repeal or annulment of
this chapter.
(Formerly: Acts 1913, c.76, s.100; Acts 1933, c.190, s.11.) As
amended by P.L.59-1984, SEC.40; P.L.172-2009, SEC.1;
P.L.270-2013, SEC.1.
IC 8-1-2-93
Acceptance of indeterminate licenses, permits, or franchises; effect
Sec. 93. (a) This section does not apply to a public utility that
provides water or sewer utility service unless:
(1) the commission makes a finding under IC 8-1-30-4; and
(2) the procedures and requirements of IC 8-1-30 have been
complied with and satisfied.
(b) Notwithstanding subsection (a), this section does apply to the
following:
(1) A public utility to the extent that the public utility provides
water or sewer utility service in or contiguous to a municipality
that, as of July 1, 2012, had established and operated a water
utility.
(2) An action brought under:
(A) section 92 of this chapter;
(B) this section; or
(C) IC 8-1.5-2;
before March 1, 2013.
(c) Any public utility accepting or operating under any
indeterminate license, permit, or franchise granted after April 30,
1913, shall by acceptance of any such indeterminate license, permit,
or franchise be deemed to have consented to a future purchase or
condemnation of its property including property located in
contiguous territory within six (6) miles of the corporate limits of
such municipality by the municipality in which such utility is
located, at the value and under the terms and conditions as provided
in IC 8-1.5-2, IC 36-9-23, or IC 36-9-25, as applicable, and shall
thereby be deemed to have waived the right of requiring the necessity
of such taking to be established by the judgment of a court, and to
have waived all other remedies and rights relative to condemnation,
except such rights and remedies as are provided in IC 8-1.5-2,
IC 36-9-23, or IC 36-9-25, as applicable, and shall have been deemed
to have consented to the revocation of its license, permit, or franchise
by the commission for cause.
(Formerly: Acts 1913, c.76, s.102; Acts 1933, c.190, s.12.) As
amended by P.L.59-1984, SEC.41; P.L.172-2009, SEC.2;
P.L.270-2013, SEC.2.
IC 8-1-2-94
Repealed
(Repealed by Acts 1982, P.L.74, SEC.6.)
IC 8-1-2-94.1
Repealed
(Repealed by Acts 1982, P.L.74, SEC.6.)
IC 8-1-2-95
Repealed
(Repealed by Acts 1982, P.L.74, SEC.6.)
IC 8-1-2-95.1
Electric utilities; eminent domain against electric utility property
prohibited
Sec. 95.1. Notwithstanding any other provision of this chapter,
after February 29, 1980, a municipality, public utility, or corporation
organized under IC 8-1-13 may not bring any action in the circuit or
superior court of any county against any corporation organized under
IC 8-1-13 or any public utility as defendant for the condemnation of
its electric utility property for the use of the property in providing
electric utility service.
As added by Acts 1980, P.L.69, SEC.2.
IC 8-1-2-96
Repealed
(Repealed by Acts 1982, P.L.74, SEC.6.)
IC 8-1-2-97
Repealed
(Repealed by Acts 1982, P.L.74, SEC.6.)
IC 8-1-2-98
Repealed
(Repealed by Acts 1982, P.L.74, SEC.6.)
IC 8-1-2-99
Repealed
(Repealed by Acts 1982, P.L.74, SEC.6.)
IC 8-1-2-100
Repealed
(Repealed by Acts 1982, P.L.74, SEC.6.)
IC 8-1-2-101
Municipal regulations; county executive's power; relocation of
facilities
Sec. 101. (a) Every municipal council or county executive shall
have power:
(1) To determine by ordinance the provisions, not inconsistent
with this chapter or IC 8-1-11.1, upon which a public utility or
department of public utilities created under IC 8-1-11.1
occupies the areas along, under, upon, and across the streets,
highways, or other public property within such municipality or
county, and such ordinance or other determination of such
municipality or county executive shall be in force and prima
facie reasonable. Upon complaint made by such public utility,
department of public utilities, or by any qualified complainant,
as provided in section 54 of this chapter, the commission shall
set a hearing, as provided in sections 54 to 67 of this chapter,
and if it shall find such ordinance or other determination to be
unreasonable, such ordinance or other determination shall be
void.
(2) To require of any public utility, by ordinance, such additions
and extensions to its physical plant within said municipality or
county as shall be reasonable and necessary in the interest of
the public, and to designate the location and nature of all such
additions and extensions, the time within which they must be
completed, and all conditions under which they must be
constructed, subject to review by the commission as provided
in subdivision (1).
(3) To provide for a penalty for noncompliance with the
provisions of any ordinance or resolution adopted pursuant to
the provisions of this section.
(4) The power and authority granted in this section shall exist
and be vested in said municipalities or county executives,
anything in this chapter to the contrary notwithstanding.
Provided, however, whenever, after a request by petition in writing
of any public utility, department of public utilities, the city, or other
political subdivision or other body, having jurisdiction of the matter,
shall refuse or fail, for a period of thirty (30) days, to give or grant to
such public utility or department of public utilities permission and
authority to construct, maintain, and operate any additional
construction, equipment, or facility, reasonably necessary for the
transaction of the business of such public utility or department of
public utilities and for the public convenience or interest, then such
public utility or department of public utilities may file a petition with
said commission for such right and permission, which petition shall
state, with particularity, the construction, equipment, or other facility
desired to be constructed and operated, and show a reasonable public
necessity therefor, and also the failure or refusal of such city,
political subdivision, or other body to give or grant such right or
permission; and the commission shall thereupon give notice of the
pendency of such petition, together with a copy thereof, to such city
or other political subdivision or body, and of the time and place of
hearing of the matter set forth in such petition; and such commission
shall have power to hear and determine such matters and to give or
grant such right and permission and to impose such conditions in
relation thereto as the necessity of such public utility or department
of public utilities and the public convenience and interest may
reasonably require. Provided, further, that when the relocation by a
public utility or department of public utilities of any of its
construction, equipment, or facility located within the corporate
limits of two (2) or more adjoining cities is reasonably necessary for
the public convenience or interest, and any or either of said cities fail
or refuse to give or grant to such public utility or department of
public utilities permission and authority to relocate such
construction, equipment, or facility, any municipality which has
given or granted to such public utility or department of public
utilities permission and authority to relocate such construction,
equipment, and facility, the public utility or department of public
utilities may file a petition with said commission for such right and
permission to which petition the city or cities failing or refusing to
give or grant the same shall be made a respondent, and such public
utility or department of public utilities if not the petitioner shall also
be made a respondent, and said commission shall have power to hear
and determine such matter and to give or grant such right and
permission and to impose such conditions in relation thereto as the
public convenience and interest may reasonably require; and if said
commission shall give or grant such right and permission, no further
public authority to make such relocation as authorized or to go on
any street, alley, road, or highway in said city or cities necessary to
be used therefor shall be required of said public utility or department
of public utilities. All orders entered before June 30, 1931, by the
commission in cases within the provisions of this section are hereby
declared legal and valid.
(b) Subject to the commission's authority under subsection (a)(1)
with respect to an unreasonable ordinance or other determination, the
municipality or county executive may operate and maintain the
streets, highways, and other public property in the municipality or
county for the safety of the traveling public, and a municipality or
county executive may manage the public right-of-way or require by
ordinance fair and reasonable compensation on a competitively
neutral and nondiscriminatory basis for occupation of the public
right-of-way on a nondiscriminatory basis, including occupation by
the municipality or county executive, if the compensation required
is publicly disclosed by the municipality or county executive. Fair
and reasonable compensation may not exceed the municipality's or
county executive's direct, actual, and reasonably incurred costs of
managing the public right-of-way caused by the public utility's or
department of public utilities' occupancy. The management costs,
which the municipality or county executive shall assign individually
to the public utility or department of public utilities creating the
management costs, must be limited to the direct, actual, and
reasonably incurred costs a municipality or county incurs in
managing the public right-of-way. As used in this section, the term
"management costs" includes but is not limited to the costs to the
municipality or county of the following:
(1) Registering occupants.
(2) Verifying public right-of-way occupation.
(3) Inspecting job sites and restoration projects.
(4) Restoring work inadequately performed after providing
notice and the opportunity to correct the work.
(5) Administering a reasonable restoration ordinance that
ensures that a public utility or department of public utilities
adequately restores the right-of-way as near as is reasonably
possible to the right-of-way's original condition.
(6) Management costs associated with the implementation of an
ordinance adopted under this section.
However, as used in this section, direct, actual, and reasonably
incurred management costs do not include rents, franchise fees, or
any other payment by a public utility or department of public utilities
for occupation of the public right-of-way. As used in this section, the
term "public right-of-way" does not include the airwaves above the
streets, highways, or other public property within the municipality or
county as those airwaves are used for cellular or other nonwire
telecommunications or broadcast service.
(c) A municipality or county executive may not unreasonably
delay a public utility's or department of public utilities' access to or
use of a street, highway, or other public property within the
municipality or county. However, subsection (a)(1) and this
subsection do not limit a municipality or county executive's right to
advance notification of and review of a public utility's or department
of public utilities' occupation of a street, highway, or other public
property within the municipality or county to ensure and protect the
safety of the public.
(d) Nothing in this section may be construed to affect franchise
agreements between a cable company and a municipality or county.
(Formerly: Acts 1913, c.76, s.110; Acts 1931, c.126, s.1.) As
amended by P.L.59-1984, SEC.42; P.L.127-1998, SEC.1.
IC 8-1-2-102 Version a
Political influence or activities; free or reduced rates or charges for
products or services; violations; offense
Note: This version of section effective until 7-1-2014. See also
following version of this section, effective 7-1-2014.
Sec. 102. (a) The definitions set forth in IC 3-5-2 apply to this
section.
(b) No public utility, or any agent or officer thereof, or any agent
or officer of a political subdivision constituting a public utility, as
defined in this chapter, may offer or give, for any purpose, to any
political committee or any member or employee thereof, candidate
for, or incumbent of, any office or position under the constitution or
laws of Indiana, or under any political subdivision or to any person,
at the request, or for the advantage of, any of them, any frank,
privilege, or property withheld from any person for any product or
service produced, transmitted, delivered, furnished, or rendered, or
to be produced, transmitted, delivered, furnished, or rendered by any
public utility or any free product or service.
(c) No political committee, or member or employee thereof, or
candidate for or incumbent of any office or position under the
constitution or laws of Indiana or under any political subdivision
may ask for or accept from any public utility, or any agent or officer
thereof, or any agent or officer of any political subdivision
constituting a public utility, as defined in this chapter, or use, in any
matter or for any purpose, any frank or privilege withheld from any
person for any product or service produced, transmitted, delivered,
furnished, or rendered, or to be produced, transmitted, delivered,
furnished, or rendered by any public utility.
(d) A person who knowingly violates this section commits a Class
D felony.
(e) This chapter does not:
(1) prevent any public utility, carrier, or agent or officer thereof,
from furnishing free or reduced service or transportation to any
bona fide employee or officer thereof;
(2) prohibit any carrier from carrying free, or at reduced rates,
agricultural experiment and demonstration cars or trains and the
lecturers and necessary demonstrators accompanying such
trains or cars; or
(3) prohibit any carrier from carrying free, or at reduced rates,
its furloughed, pensioned, or superannuated employees, persons
who have become disabled or infirm in its service, the remains
of any person killed in its service, or the unremarried surviving
spouses and dependent children under eighteen (18) years of
age of persons who died in its service.
(Formerly: Acts 1913, c.76, s.111; Acts 1915, c.95, s.1; Acts 1973,
P.L.63, SEC.1; Acts 1975, P.L.76, SEC.1.) As amended by Acts 1978,
P.L.2, SEC.802; P.L.3-1997, SEC.424.
IC 8-1-2-102 Version b
Political influence or activities; free or reduced rates or charges for
products or services; violations; offense
Note: This version of section effective 7-1-2014. See also
preceding version of this section, effective until 7-1-2014.
Sec. 102. (a) The definitions set forth in IC 3-5-2 apply to this
section.
(b) No public utility, or any agent or officer thereof, or any agent
or officer of a political subdivision constituting a public utility, as
defined in this chapter, may offer or give, for any purpose, to any
political committee or any member or employee thereof, candidate
for, or incumbent of, any office or position under the constitution or
laws of Indiana, or under any political subdivision or to any person,
at the request, or for the advantage of, any of them, any frank,
privilege, or property withheld from any person for any product or
service produced, transmitted, delivered, furnished, or rendered, or
to be produced, transmitted, delivered, furnished, or rendered by any
public utility or any free product or service.
(c) No political committee, or member or employee thereof, or
candidate for or incumbent of any office or position under the
constitution or laws of Indiana or under any political subdivision
may ask for or accept from any public utility, or any agent or officer
thereof, or any agent or officer of any political subdivision
constituting a public utility, as defined in this chapter, or use, in any
matter or for any purpose, any frank or privilege withheld from any
person for any product or service produced, transmitted, delivered,
furnished, or rendered, or to be produced, transmitted, delivered,
furnished, or rendered by any public utility.
(d) A person who knowingly violates this section commits a Level
6 felony.
(e) This chapter does not:
(1) prevent any public utility, carrier, or agent or officer thereof,
from furnishing free or reduced service or transportation to any
bona fide employee or officer thereof;
(2) prohibit any carrier from carrying free, or at reduced rates,
agricultural experiment and demonstration cars or trains and the
lecturers and necessary demonstrators accompanying such
trains or cars; or
(3) prohibit any carrier from carrying free, or at reduced rates,
its furloughed, pensioned, or superannuated employees, persons
who have become disabled or infirm in its service, the remains
of any person killed in its service, or the unremarried surviving
spouses and dependent children under eighteen (18) years of
age of persons who died in its service.
(Formerly: Acts 1913, c.76, s.111; Acts 1915, c.95, s.1; Acts 1973,
P.L.63, SEC.1; Acts 1975, P.L.76, SEC.1.) As amended by Acts 1978,
P.L.2, SEC.802; P.L.3-1997, SEC.424; P.L.158-2013, SEC.131.
IC 8-1-2-103
Rates and charges; discriminatory overcharges and undercharges;
offense; free service or special rate exceptions
Sec. 103. (a) No public utility, or agent or officer thereof, or
officer of any municipality constituting a public utility, as defined in
this chapter, may charge, demand, collect, or receive from any person
a greater or less compensation for any service rendered or to be
rendered, or for any service in connection therewith, than that
prescribed in the published schedules or tariffs then in force or
established as provided herein, or than it charges, demands, collects,
or receives from any other person for a like and contemporaneous
service. A person who recklessly violates this subsection commits a
Class A misdemeanor.
(b) Notwithstanding subsection (a), if a city of less than twenty
thousand (20,000) in population according to the most recent federal
decennial census, constituting a public water utility, and acting as a
public utility prior to May 1, 1913, either as such city, or by any
commercial association, chamber of commerce, or committee with
the consent of such city, entered into any agreement with any person
engaged in manufacturing any articles of commerce to furnish free
water for a certain limited time as an inducement to such person so
engaged in manufacturing to locate the establishment or
manufacturing plant of such person within such city, such city may
carry out such agreement to furnish free water to such person for the
period of time remaining, as stipulated in such contract. This chapter
does not prohibit any public utility from supplying or furnishing free
service or service at special rates to any municipality, or any
institution or agency of such municipality, in cases where the
supplying or furnishing of such free service or service at special rates
is stipulated in any provision of the franchise under which such
public utility was operating before May 16, 1919, or, in the event that
such franchise shall have been surrendered, from supplying or
furnishing such free service or service at special rates until such time
as the franchise would have expired had it not been surrendered
under this chapter; and it shall be the duty of any utility operating
under any franchise, stipulating for free service or service at special
rates to the municipality, or any institution or agency of such
municipality, to furnish such free service or service at special rates.
(c) This subsection applies to a public utility that provides water
for public fire protection services in both a county containing a
consolidated city and in portions of counties that are adjacent to the
county containing a consolidated city. This subsection applies
throughout the territory served by the public utility. In the case of a
public utility furnishing water and beginning on January 1, 1994, the
charges for the production, storage, transmission, sale and delivery,
or furnishing of water for public fire protection purposes shall be
included in the basic rates of the customers of the public utility.
However, the construction cost of any fire hydrant installed after
December 31, 1993, at the request of a municipality, township,
county, or other governmental unit shall be paid for by or on behalf
of the municipality, township, county, or other governmental unit.
The change in the recovery of current revenue authorized by this
section shall be reflected in a new schedule of rates to be filed with
the commission at least thirty (30) days before the time the new
schedule of rates is to take effect. The new schedule of rates shall:
(1) eliminate fire protection charges billed directly to
governmental units, other than charges for the construction cost
for new hydrants installed after December 31, 1993; and
(2) increase the rates charged each customer of the utility, based
on equivalent meter size, by an amount equal to:
(A) the revenues lost from the elimination of such fire
protection charges; divided by
(B) the current number of equivalent five-eighths (5/8) inch
meters.
This change in the recovery of public fire protection costs shall not
be considered to be a general increase in basic rates and charges of
the public utility and is not subject to the notice and hearing
requirements applicable to general rate proceedings. The commission
shall approve the new schedule of rates that are to be effective
January 1, 1994.
(d) This subsection applies to a public utility or a municipally
owned water utility that is not subject to subsection (c). Except as
provided in subsection (e), in the case of a public utility or
municipally owned water utility furnishing water, if the governing
body of any municipality within the service area of the utility adopts
an ordinance providing that costs shall be recovered under this
subsection, the charges for the production, storage, transmission, sale
and delivery, or furnishing of water for public fire protection
purposes shall be included in the basic rates of all customers of the
utility within the municipality. However, on or after a date specified
in the ordinance, the construction cost of any fire hydrant installed
at the request of a municipality, township, county, or other
governmental unit that adopts an ordinance under this subsection
shall be paid for by or on behalf of the municipality, township,
county, or other governmental unit. The change in the recovery of
current revenue authorized by the ordinance shall be reflected in a
new schedule of rates to be filed with the commission at least thirty
(30) days before the time the new schedule of rates is to take effect.
The new schedule of rates shall:
(1) eliminate fire protection charges billed directly to
governmental units, other than charges for the construction cost
for new hydrants installed on and after the date specified in the
ordinance; and
(2) increase the rates charged each customer of the utility, based
on equivalent meter size, by an amount equal to:
(A) the revenues lost from the elimination of such fire
protection charges; divided by
(B) the current number of equivalent five-eighths (5/8) inch
meters.
This change in the recovery of public fire protection costs shall not
be considered to be a general increase in basic rates and charges of
the utility and is not subject to the notice and hearing requirements
applicable to general rate proceedings. The commission shall
approve the new schedule of rates that are to be effective on a date
specified in the ordinance.
(e) This subsection applies to a municipally owned water utility
in a city having a population of more than fifty thousand (50,000) but
less than fifty-one thousand (51,000). The city may adopt a plan to
recover costs as described in subsection (d) without passing an
ordinance, if the plan applies only to customers of the utility residing
in a county having a population of more than two hundred fifty
thousand (250,000) but less than two hundred seventy thousand
(270,000). If the city wishes to adopt such a plan, the city shall file
a new schedule of rates with the commission, but is not subject to
commission approval of the rates.
(f) In the case of a change in the method of recovering public fire
protection costs under an ordinance adopted under subsection (d):
(1) on or after July 1, 1997, a customer of the utility located
outside the limits of a municipality whose property is not
located within one thousand (1,000) feet of a fire hydrant
(measured from the hydrant to the nearest point on the property
line of the customer) must be excluded from the increase in
rates attributable to the change and must not be included in the
number of equivalent five-eighths (5/8) inch meters for
purposes of subsection (d)(2)(B); or
(2) before July 1, 1997, the commission may:
(A) in the context of a general rate proceeding initiated by
the utility; or
(B) upon petition of:
(i) the utility;
(ii) the governmental unit that passed the ordinance; or
(iii) an affected customer;
prospectively exclude public fire protection costs from the rates
charged to customers located outside the limits of any
municipality whose property is not located within one thousand
(1,000) feet of a fire hydrant (measured from the hydrant to the
nearest point on the property line of the customer) if the
commission authorizes a simultaneous increase in the rates of
the utility's other customers to the extent necessary to prevent
a loss of revenues to the utility.
An increase in the rates of the utility's other customers under
subdivision (2) may not be construed to be a general increase in basic
rates and charges of the utility and is not subject to the hearing
requirements applicable to general rate proceedings. This subsection
does not prohibit the commission from adopting different methods
of public fire protection cost recovery for unincorporated areas after
notice and hearing within the context of a general rate proceeding or
other appropriate proceeding.
(Formerly: Acts 1913, c.76, s.112; Acts 1915, c.137, s.1; Acts 1919,
c.168, s.1.) As amended by Acts 1977, P.L.2, SEC.37; Acts 1978,
P.L.2, SEC.803; Acts 1981, P.L.44, SEC.6; P.L.93-1993, SEC.1;
P.L.79-1997, SEC.1; P.L.80-1997, SEC.1; P.L.2-1998, SEC.33;
P.L.170-2002, SEC.57; P.L.176-2002, SEC.5; P.L.119-2012,
SEC.82.
IC 8-1-2-104
Rates and charges; undercharges by furnishing facilities to utility
prohibited; exception
Sec. 104. It shall be unlawful for any public utility or any
municipally-owned utility to demand, charge, collect or receive from
any person, firm, limited liability company, or corporation, less
compensation for any service rendered or to be rendered by said
public or municipally-owned utility in consideration of the furnishing
by said person, firm, limited liability company, or corporation of any
part of the facilities incident thereto. However, nothing herein shall
be construed as prohibiting any such public utility or
municipally-owned utility from renting any facilities incident to its
business.
(Formerly: Acts 1913, c.76, s.113; Acts 1933, c.190, s.20.) As
amended by P.L.8-1993, SEC.114.
IC 8-1-2-105
Rates and charges; discrimination; penalty; exceptions
Sec. 105. (a) No public utility may make or give any undue or
unreasonable preference or advantage to any person, or subject any
person to any undue or unreasonable prejudice or disadvantage in
any respect. A person who violates this section commits a Class B
infraction.
(b) Nothing in this chapter shall prevent any public utility from
furnishing service free or at reduced rates to any of its employees and
officers or retired employees and officers or from providing energy
assistance to a heating assistance program administered under
IC 4-4-33 to persons eligible for that assistance.
(Formerly: Acts 1913, c.76, s.114; Acts 1917, c.161, s.1; Acts 1967,
c.2, s.1.) As amended by Acts 1978, P.L.2, SEC.804; Acts 1979,
P.L.18, SEC.3; P.L.384-1987(ss), SEC.7; P.L.3-1989, SEC.50;
P.L.2-1992, SEC.77; P.L.181-2006, SEC.47.
IC 8-1-2-106
Rates and charges; undercharges by rebates or concessions
prohibited; offense
Sec. 106. It is a Class B infraction for a person knowingly to
solicit, accept, or receive any rebate, concession, or discrimination
in respect to any service in or affecting or relating to any public
utility or for any service in connection therewith, whereby any such
service is rendered free or at a less rate than that named in the
published schedules and tariffs in force as provided herein, or
whereby any service or advantage is received other than is herein
specified.
(Formerly: Acts 1913, c.76, s.115.) As amended by Acts 1978, P.L.2,
SEC.805.
IC 8-1-2-107
Damages; loss or injury caused by violation
Sec. 107. If any public utility shall do, or cause to be done or
permit to be done, any matter, act, or thing in this chapter prohibited
or declared to be unlawful, or shall omit to do any act, matter, or
thing required to be done by this chapter, such public utility shall be
liable to the person, firm, limited liability company, or corporation
injured thereby in the amount of damages sustained in consequence
of such violation. Provided, that any recovery as in this section
provided shall in no manner affect a recovery by the state of the
penalty prescribed for such violation.
(Formerly: Acts 1913, c.76, s.116.) As amended by P.L.59-1984,
SEC.43; P.L.8-1993, SEC.115.
IC 8-1-2-108
Officers and employees; violations; municipally owned utilities;
annual reports
Sec. 108. (a) An officer, agent, or employee of any public utility,
or a public utility (as defined in this chapter) who:
(1) fails to fill out and return any blanks as required by this
chapter;
(2) fails to answer any question therein propounded;
(3) knowingly gives a false answer to any such question or
evades the answer to any such question where the fact inquired
of is within his knowledge;
(4) fails, upon proper demand, to exhibit to the commission, any
commissioner, any administrative law judge, or any person
authorized to examine the same, any book, paper, account,
record, or memoranda of the public utility which is in his
possession or under his control;
(5) fails to keep his system of accounting, or any part thereof,
which is required by the commission; or
(6) refuses to do any act or thing in connection with the system
of accounting when so directed by the commission or its
authorized representative;
commits a Class B infraction.
(b) A municipally owned and operated utility under the
jurisdiction of the commission for approval of rates and charges shall
file with the commission, an annual report of the operation of said
plant on forms to be furnished by the commission, which forms are
to be substantially the same as for reports filed annually with the
commission by public utilities. Such annual reports shall remain in
the office of said commission as a public record. Whenever in this
chapter public utilities are required to make reports to the
commission or are otherwise subject to the commission, municipally
owned utilities are exempted from making such reports and are not
under the jurisdiction of the commission, except as otherwise
provided.
(Formerly: Acts 1913, c.76, s.117; Acts 1933, c.190, s.21.) As
amended by Acts 1977, P.L.99, SEC.1; Acts 1978, P.L.2, SEC.806;
Acts 1979, P.L.84, SEC.4; P.L.23-1988, SEC.28; P.L.68-1990,
SEC.1.
IC 8-1-2-109
General penalty provision
Sec. 109. A public utility that violates this chapter, or fails to
perform any duty enjoined upon it, for which a penalty is not
otherwise provided, commits a Class B infraction.
(Formerly: Acts 1913, c.76, s.118.) As amended by Acts 1978, P.L.2,
SEC.807.
IC 8-1-2-110
Repealed
(Repealed by Acts 1982, P.L.74, SEC.6.)
IC 8-1-2-111
Repealed
(Repealed by Acts 1978, P.L.2, SEC.867.)
IC 8-1-2-112
Continuing acts as separate offenses
Sec. 112. Every day during which any public utility or any officer,
agent, or employee thereof shall fail to observe and comply with any
order or direction of the commission, or to perform any duty
enjoined by this chapter, shall constitute a separate and distinct
violation of such order or direction of this chapter, as the case may
be.
(Formerly: Acts 1913, c.76, s.121.) As amended by P.L.59-1984,
SEC.44.
IC 8-1-2-113
Emergency alteration, amendment, or suspension of rates or
services
Sec. 113. (a) The commission may, when it considers necessary
to prevent injury to the business or interests of the people or any
public utility of this state in case of any emergency to be judged by
the commission, temporarily alter, amend, or with the consent of the
public utility concerned, suspend any existing rates, service,
practices, schedules, and order relating to or affecting any public
utility or part of any public utility in this state. The alterations,
amendments, or suspensions of the rates, service, schedules, or
practices made by the commission shall apply to one (1) or more of
the public utilities in this state or to any portion thereof, as directed
by the commission, and shall take effect at the time and remain in
force for the length of time prescribed by the commission.
(b) The commission may adopt emergency rules under
IC 4-22-2-37.1 to carry out this section.
(Formerly: Acts 1913, c.76, s.122; Acts 1947, c.315, s.1.) As
amended by P.L.37-1989, SEC.3; P.L.1-1990, SEC.102.
IC 8-1-2-114
Accidents, investigation, and report
Sec. 114. Every public utility shall, whenever an accident attended
with loss of human life occurs within this state upon its premises, or
directly or indirectly arising from or connected with its maintenance
or operation, give immediate notice thereof to the commission. In the
event of any such accident, the commission, if it deem the public
interest requires it, shall cause an investigation to be made forthwith,
which investigation shall be held in the locality of the accident
unless, for greater convenience of those concerned, it shall order
such investigation to be held at some other place; and said
investigation may be adjourned from place to place as may be found
necessary and convenient. The commission shall give due notice to
the public utility of the time and place of the investigation.
(Formerly: Acts 1913, c.76, s.123.)
IC 8-1-2-115
Enforcement of law; recovery of forfeitures or penalties
Sec. 115. The commission shall inquire into any neglect or
violation of the statutes of this state or the ordinances of any city or
town by any public utility doing business therein, or by the officers,
agents, or employees thereof, or by any person operating the plant of
any public utility, and shall have the power, and it shall be its duty,
to enforce the provisions of this chapter, as well as all other laws,
relating to public utilities. Any forfeiture or penalty provided in this
chapter shall be recovered and suit therein shall be brought in the
name of the state of Indiana in the circuit or superior court where the
public utility has its principal place of business. Complaint for the
collection of any such forfeiture may be made by the commission or
any member thereof, and, when so made, the action so commenced
shall be prosecuted by the general counsel.
(Formerly: Acts 1913, c.76, s.124.) As amended by P.L.59-1984,
SEC.45.
IC 8-1-2-116
Orders and decisions; compliance
Sec. 116. A substantial compliance with the requirements of this
chapter shall be sufficient to give effect to all the rules, orders, acts,
and regulations of the commission, and they shall not be declared
inoperative, illegal, or void for any omission of a technical nature in
respect thereto.
(Formerly: Acts 1913, c.76, s.125.) As amended by P.L.59-1984,
SEC.46.
IC 8-1-2-117
Rates, penalties, or forfeitures; recovery action
Sec. 117. This chapter shall not have the effect to release or waive
any right of action by the state or by any person for any right,
penalty, or forfeiture which may have arisen before May 1, 1913, or
which may arise under any statute of this state; and all penalties and
forfeitures accruing under this chapter shall be cumulative and a suit
for any recovery of one shall not be a bar to the recovery of any other
penalty.
(Formerly: Acts 1913, c.76, s.126.) As amended by P.L.59-1984,
SEC.47.
IC 8-1-2-118
Public service commission; traveling expenses and per diem
Sec. 118. The members of said commission, its secretary and
clerk, and such other persons as it may appoint or employ, as
provided in this chapter, shall be entitled to receive from the state
their actual necessary traveling expenses, which shall include the
cost of transportation, hotel, telegraph, and telephone bills while
traveling on the business of the commission, which amount shall be
paid by the treasurer of state, on warrant of the auditor of state, upon
an itemized statement thereof, sworn to by the party who incurred
such expense in traveling, and after the same shall have been
approved by the commission.
(Formerly: Acts 1913, c.76, s.127.) As amended by P.L.59-1984,
SEC.48.
IC 8-1-2-119
Repealed
(Repealed by Acts 1972, P.L.13, SEC.7.)
IC 8-1-2-120
Repealed
(Repealed by Acts 1978, P.L.2, SEC.867.)
IC 8-1-2-121
Termination of residential electric or gas service
Sec. 121. (a) Notwithstanding any other provision of law, from
December 1 through March 15 of any year, no electric or gas utility,
including a municipally owned, privately owned, or cooperatively
owned utility, shall terminate residential electric or gas service for
persons who are eligible for and have applied for assistance from a
heating assistance program administered under IC 4-4-33. The
commission shall implement procedures to ensure that electric or gas
utility service is continued while eligibility for such persons is being
determined.
(b) Any electric or gas utility, including a municipally owned,
privately owned, or cooperatively owned utility, shall provide any
residential customer whose account is delinquent an opportunity to
enter into a reasonable amortization agreement with such company
to pay the delinquent account. Such an amortization agreement must
provide the customer with adequate opportunity to apply for and
receive the benefits of any available public assistance program. An
amortization agreement is subject to amendment on the customer's
request if there is a change in the customer's financial circumstances.
(c) The commission may establish a reasonable rate of interest
which a utility may charge on the unpaid balance of a customer's
delinquent bill that may not exceed the rate established by the
commission under section 34.5 of this chapter.
(d) The commission shall adopt rules under IC 4-22-2 to carry out
the provisions of this section.
(e) This section does not prohibit an electric or gas utility from
terminating residential utility service upon a request of a customer or
under the following circumstances:
(1) If a condition dangerous or hazardous to life, physical
safety, or property exists.
(2) Upon order by any court, the commission, or other duly
authorized public authority.
(3) If fraudulent or unauthorized use of electricity or gas is
detected and the utility has reasonable grounds to believe the
affected customer is responsible for such use.
(4) If the utility's regulating or measuring equipment has been
tampered with and the utility has reasonable grounds to believe
that the affected customer is responsible for such tampering.
As added by P.L.43-1983, SEC.10. Amended by P.L.41-1987, SEC.6;
P.L.2-1992, SEC.78; P.L.181-2006, SEC.48.
IC 8-1-2-122
Notice of termination of service; requisites
Sec. 122. (a) As used in this section:
"Dwelling" means an individual residence, including a mobile
home or trailer, or a room or combination of rooms, with facilities
for living for a single household.
"Heating season" means the period beginning on November 1 of
any year and ending on the following April 1.
(b) A utility, including a municipally owned utility, that provides
energy or fuel to an occupied dwelling may not, during the heating
season, terminate service to the dwelling because of the failure of the
customer to pay his energy or fuel bills until fourteen (14) days after
it serves notice upon the customer of its intent to terminate service.
(c) A notice served under this section must be in language that is
clear, concise, and easily understandable to a layman. It must, in
separately numbered paragraphs:
(1) indicate the date on which service will be terminated;
(2) state the reason and factual basis for the termination of
service;
(3) list the telephone number of the utility office that the
customer may call during regular business hours in order to
question the proposed termination of service or to seek
information concerning his rights; and
(4) state that the customer may refer to the pamphlet furnished
to him under 170 IAC 4-1-18 for information as to his rights.
(d) Service of a notice under this section must be by:
(1) mail addressed to the customer; or
(2) personal delivery to the customer or to a responsible
member of his household;
at the address listed for the customer in the records of the utility.
(e) No notice may be served under this section before the date on
which the customer's account becomes delinquent.
As added by P.L.43-1983, SEC.11.
IC 8-1-2-125
"Not-for-profit utilities"; services and facilities; reasonable and
just charges; not-for-profit sewer utilities
Sec. 125. (a) As used in this section, "not-for-profit utility" means
a public water or sewer utility that:
(1) does not have shareholders;
(2) does not engage in any activities for the profit of its trustees,
directors, incorporators, or members; and
(3) is organized and conducts its affairs for purposes other than
the pecuniary gain of its trustees, directors, incorporators, or
members.
The term does not include a regional district established under
IC 13-26, a conservancy district established under IC 14-33, or, for
purposes of subsections (f), (g), (h), (i), (j), and (k), a utility company
owned, operated, or held in trust by a consolidated city.
(b) As used in this section, "sewage disposal system" means a
privy, cesspool, septic tank, or other similar structure. The term
includes a septic tank soil absorption system (as defined in
IC 13-11-2-199.5). The term does not include a sewer system
operated by a not-for-profit public sewer utility.
(c) A not-for-profit utility shall be required to furnish reasonably
adequate services and facilities. The charge made by any
not-for-profit utility for any service rendered or to be rendered, either
directly or in connection with the service, must be nondiscriminatory,
reasonable, and just. Each discriminatory, unjust, or unreasonable
charge for the service is prohibited and unlawful.
(d) A reasonable and just charge for water or sewer service within
the meaning of this section is a charge that will produce sufficient
revenue to pay all legal and other necessary expense incident to the
operation of the not-for-profit utility's system, including the
following:
(1) Maintenance and repair costs.
(2) Operating charges.
(3) Interest charges on bonds or other obligations.
(4) Provision for a sinking fund for the liquidation of bonds or
other evidences of indebtedness.
(5) Provision for a debt service reserve for bonds or other
obligations in an amount not to exceed the maximum annual
debt service on the bonds or obligations.
(6) Provision of adequate funds to be used as working capital.
(7) Provision for making extensions and replacements.
(8) The payment of any taxes that may be assessed against the
not-for-profit utility or its property.
The charges must produce an income sufficient to maintain the
not-for-profit utility's property in sound physical and financial
condition to render adequate and efficient service. A rate too low to
meet these requirements is unlawful.
(e) Except as provided in subsections (f) and (h), a not-for-profit
public sewer utility may require connection to its sewer system of
property producing sewage or similar waste and require the
discontinuance of use of a sewage disposal system if:
(1) there is an available sanitary sewer within three hundred
(300) feet of:
(A) the property line, if the property is:
(i) located in a consolidated city;
(ii) adjacent to a body of water, including a lake, river, or
reservoir; or
(iii) any part of a subdivision, or land that is divided or
proposed to be divided into lots, whether contiguous or
subject to zoning requirements, for the purpose of sale or
lease as part of a larger common plan of development or
sale; or
(B) for all other properties, the improvement or other
structure from which the sewage or similar waste is
discharged; and
(2) the utility has given written notice by certified mail to the
property owner at the address of the property at least ninety (90)
days before the date for connection stated in the notice.
The notice given under subdivision (2) must also inform the property
owner, other than an owner of property located in a consolidated
city, that the property owner may qualify for an exemption as set
forth in subsection (f).
(f) Subject to subsection (h), a property owner is exempt from the
requirement to connect to a not-for-profit public sewer utility's sewer
system and to discontinue use of a sewage disposal system if the
following conditions are met:
(1) The property owner's sewage disposal system is a septic
tank soil absorption system that was new at the time of
installation and approved in writing by the local health
department.
(2) The property owner, at the property owner's expense,
obtains a written determination from the local health
department or the department's designee that the septic tank soil
absorption system is not failing. The local health department or
the department's designee shall provide the owner with a written
determination not later than sixty (60) days after receipt of the
owner's request. If the local health department or the
department's designee fails to provide a written determination
within the time established in this subdivision, the owner, at the
owner's expense, may obtain a written determination from a
qualified inspector. If the local health department or the
department's designee determines that a septic tank soil
absorption system is failing, the property owner may appeal the
determination to the board of the local health department. The
decision of the board is final and binding.
(3) The property owner provides the not-for-profit public sewer
utility with:
(A) the written notification of potential qualification for the
exemption described in subsection (i); and
(B) the written determination described in subdivision (2);
within the time limits set forth in subsection (i).
(g) If a property owner, within the time allowed under subsection
(i), notifies a not-for-profit public sewer utility in writing that the
property owner qualifies for the exemption under this section, the
not-for-profit public sewer utility shall, until the property owner's
eligibility for an exemption under this section is determined, suspend
the requirement that the property owner discontinue use of a sewage
disposal system and connect to the not-for-profit public sewer
utility's sewer system.
(h) A property owner who qualifies for the exemption provided
under this section may not be required to connect to the not-for-profit
public sewer utility's sewer system for a period of ten (10) years
beginning on the date the new sewage disposal system was installed.
A property owner may apply for two (2) five (5) year extensions of
the exemption provided under this section by following the
procedures set forth in subsections (f) and (g). If ownership of an
exempt property is transferred during a valid exemption period,
including during an extension of an initial exemption:
(1) the exemption applies to the subsequent owner of the
property for the remainder of the exemption period during
which the transfer occurred; and
(2) the subsequent owner may apply for any remaining
extensions.
However, the total period during which a property may be exempt
from the requirement to connect to a district's sewer system under
this section may not exceed twenty (20) years, regardless of
ownership of the property.
(i) To qualify for an exemption under this section, a property
owner must:
(1) within sixty (60) days after the date of the written notice
given to the property owner under subsection (e), notify the
not-for-profit public sewer utility in writing that the property
owner qualifies for the exemption under this section; and
(2) within one hundred twenty (120) days after the
not-for-profit public sewer utility receives the written notice
provided under subdivision (1), provide the not-for-profit public
sewer utility with the written determination required under
subsection (f)(2).
(j) When a property owner who qualifies for an exemption under
this section subsequently discontinues use of the property owner's
sewage disposal system and connects to the not-for-profit public
sewer utility's sewer system, the property owner may be required to
pay only the following to connect to the sewer system:
(1) The connection fee the property owner would have paid if
the property owner connected to the sewer system on the first
date the property owner could have connected to the sewer
system.
(2) Any additional costs:
(A) considered necessary by; and
(B) supported by documentary evidence provided by;
the not-for-profit public sewer utility.
(k) A not-for-profit public sewer utility may not require a property
owner to connect to the not-for-profit public sewer utility's sewer
system if:
(1) the property is located on at least ten (10) acres;
(2) the owner can demonstrate the availability of at least two (2)
areas on the property for the collection and treatment of sewage
that will protect human health and the environment;
(3) the waste stream from the property is limited to domestic
sewage from a residence or business;
(4) the system used to collect and treat the domestic sewage has
a maximum design flow of seven hundred fifty (750) gallons
per day; and
(5) the owner, at the owner's expense, obtains and provides to
the district a certification from the local health department or
the department's designee that the system is not failing.
(l) A property owner who connects to a not-for-profit public sewer
utility's sewer system may provide, at the owner's expense, labor,
equipment, materials, or any combination of labor, equipment, and
materials from any source to accomplish the connection to the sewer
system, subject to inspection and approval by the not-for-profit
public sewer utility.
(m) This section does not affect the authority of the state
department of health, a local health department, or a county health
officer with respect to a sewage disposal system.
(n) For purposes of this section, a sewage disposal system is
"failing" if one (1) or more of the following apply:
(1) The system refuses to accept sewage at the rate of design
application and interferes with the normal use of plumbing
fixtures.
(2) Effluent discharge exceeds the absorptive capacity of the
soil into which the system discharges, resulting in ponding,
seepage, or other discharge of the effluent to the ground surface
or to surface waters.
(3) Effluent discharged from the system contaminates a potable
water supply, ground water, or surface waters.
(o) As used in this section, "qualified inspector" means any of the
following:
(1) An employee of a local health department who is designated
by the local health department as having sufficient knowledge
of onsite sewage systems to determine if an onsite sewage
system is failing.
(2) An individual who is certified by the Indiana Onsite
Wastewater Professionals Association as an onsite sewage
system installer or inspector.
(3) An individual listed by the state department of health or the
local health department with jurisdiction over the service area
of the property inspected as having sufficient knowledge of
onsite sewage systems to determine if an onsite sewage system
is failing.
As added by P.L.82-1986, SEC.1. Amended by P.L.35-1990, SEC.25;
P.L.78-1996, SEC.1; P.L.97-2012, SEC.1; P.L.178-2013, SEC.1;
P.L.292-2013, SEC.1.
IC 8-1-2-126
Electrical power generated outside the United States
Sec. 126. A public utility or municipally owned utility may not
purchase or transmit any electrical power generated in a country
outside of the borders of the United States, unless the commission
determines that the purchase or transmission is necessary for the
health and welfare of the citizens of Indiana.
As added by P.L.119-1987, SEC.1.
IC 8-1-2-127
Customer billing; indication of amount of federal energy tax
Sec. 127. A public utility shall:
(1) indicate separately and conspicuously on each customer's
bill the total charge attributable to any tax imposed under
federal law on the basis of British Thermal Units or any other
measure of the energy content of energy consumed by the
customer during the billing period; and
(2) identify the charge described under subdivision (1) as a
federal energy tax.
As added by P.L.35-1993, SEC.2.
Disclaimer: These codes may not be the most recent version. Indiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
