CHAPTER 2. UTILITY REGULATION
IC 8-1-2
Chapter 2. Utility Regulation
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 receiversappointed by a court, that may own, operate, manage, or control anyplant 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 sanitarymanner of liquid and solid waste, sewage, night soil, andindustrial waste.
The term does not include a municipality that may acquire, own, oroperate any of the foregoing facilities.
(b) "Municipal council", as used in this chapter, means thelegislative body of any town or city in Indiana wherein the propertyof the public utility or any part thereof is located.
(c) "Municipality", as used in this chapter, means any city or townof Indiana.
(d) "Rate", as used in this chapter, means every individual or jointrate, fare, toll, charge, rental, or other compensation of any utility orany two (2) or more such individual or joint rates, fares, tolls,charges, rentals, or other compensation of any utility or any scheduleor tariff thereof, but nothing in this subsection shall give thecommission any control, jurisdiction, or authority over the ratecharged by a municipally owned utility except as in this chapterexpressly provided.
(e) "Service" is used in this chapter in its broadest and mostinclusive sense and includes not only the use or accommodationafforded consumers or patrons but also any product or commodityfurnished by any public or other utility and the plant, equipment,apparatus, appliances, property, and facility employed by any publicor other utility in performing any service or in furnishing any productor commodity and devoted to the purposes in which such public orother utility is engaged and to the use and accommodation of thepublic.
(f) "Commission", as used in this chapter, means the commissioncreated by IC 8-1-1-2.
(g) "Utility", as used in this chapter, means every plant orequipment 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, andindustrial waste.
The term does not include a municipality that may acquire, own, oroperate facilities for the collection, treatment, purification, anddisposal in a sanitary manner of liquid and solid waste, sewage, nightsoil, and industrial waste. A warehouse owned or operated by anyperson, firm, limited liability company, or corporation engaged in thebusiness of operating a warehouse business for the storage of usedhousehold goods is not a public utility within the meaning of thischapter.
(h) "Municipally owned utility", as used in this chapter, includesevery utility owned or operated by a municipality.
(i) "Indeterminate permit", as used in this chapter, means everygrant, directly or indirectly from the state, to any corporation,company, partnership, limited liability company, individual,association of individuals, their lessees, trustees, or receiversappointed by a court, of power, right, or privilege to own, operate,manage, or control any plant or equipment, or any part of a plant orequipment, within this state, for the:
(1) production, transmission, delivery, or furnishing of heat,light, water, or power, either directly or indirectly to or for thepublic;
(2) collection, treatment, purification, and disposal in a sanitarymanner of liquid and solid waste, sewage, night soil, andindustrial waste; or
(3) furnishing of facilities for the transmission of intelligenceby electricity between points within this state;
which shall continue in force until such time as the municipality shallexercise its right to purchase, condemn, or otherwise acquire theproperty of such public utility, as provided in this chapter, or until itshall 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 enabledretail services; regulatory status
Sec. 1.1. A person or an entity that:
(1) transmits communications through Internet Protocol enabledretail services, including:
(A) voice;
(B) data;
(C) video; or
(D) any combination of voice, data, and videocommunications; or
(2) provides the necessary software, hardware, transmissionservice, or transmission path for communications described insubdivision (1);is not a public utility solely by reason of engaging in any activitydescribed 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 landlordor a person acting on a landlord's behalf.
(b) A landlord that distributes water or sewage disposal servicefrom a public utility or a municipally owned utility to one (1) ormore dwelling units is not a public utility solely by reason ofengaging in this activity if the landlord complies with all of thefollowing:
(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 thesame services, less the landlord's own use.
(3) The landlord makes a disclosure to the tenant that satisfiessubsection (d). A disclosure required by this subdivision mustbe in:
(A) the lease;
(B) the tenant's first bill; or
(C) a writing separate from the lease signed by the tenantbefore entering into the lease.
(c) A landlord may charge only the following costs undersubsection (b)(1)(B):
(1) A reasonable initial set-up fee.
(2) A reasonable administrative fee that may not exceed fourdollars ($4) per month.
(3) A reasonable fee for the return for insufficient funds of aninstrument 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 largestfont used in the lease; and
(2) include the following:
(A) A description of the water or sewage disposal servicesto be provided.
(B) An itemized statement of the fees that will be charged aspermitted under subsection (c).
(C) The following statement: "If you believe you are beingcharged in violation of this disclosure or if you believe youare being billed in excess of the utility services provided toyou as described in this disclosure, you have a right underIndiana law to file a complaint with the Indiana UtilityRegulatory Commission. You may contact the Commissionat (insert phone number for the tenant to contact the
Commission).".
(e) If a complaint is filed under section 34.5 or 54 of this chapteralleging that a landlord may be acting as a public utility in violationof this section, the commission shall:
(1) consider the issue; and
(2) if the commission considers necessary, enter an orderrequiring 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 thecommission and shall prosecute all cases in which the commissionmay be interested. He shall advise the commission in legal mattersarising in the discharge of their duties and shall represent thecommission in all suits to which the commission is a party. Theattorney-general shall have the right to call upon the prosecutingattorney of any county or the legal officers of any city to assist in theprosecution or defense of any case in their county or city to whichthe commission may be a party, and it shall be the duty of suchprosecuting attorney or legal officer to give such assistance as maybe 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 reasonablyadequate service and facilities. The charge made by any public utilityfor any service rendered or to be rendered either directly or inconnection therewith shall be reasonable and just, and every unjustor unreasonable charge for such service is prohibited and declaredunlawful. The commission, in order to expedite the determination ofrate questions, or to avoid unnecessary and unreasonable expense, orto avoid discrimination in rates between classes of customers, or,whenever in the judgment of the commission public interest sorequires, may, for ratemaking and accounting purposes, or either ofthem, consider a single municipality and/or two (2) or moremunicipalities and/or the adjacent and/or intervening rural territoryas a regional unit where the same utility serves such region, and maywithin such region prescribe uniform rates for consumers or patronsof the same class. Nothing in this chapter contained shall authorizeany public utility during the remainder of the term of any grant orfranchise under which it may be acting on May 1, 1913, to charge forany service, in such grant or franchise contracted, exceeding themaximum rate or rates therefor, if any, that may be fixed in suchgrant or franchise.(Formerly: Acts 1913, c.76, s.7; Acts 1933, c.190, s.2.) As amendedby P.L.59-1984, SEC.10.
IC 8-1-2-5
Joint use of facilities; physical connections with facilities andequipment
Sec. 5. (a) Every public utility, and every municipality, and everyperson, association, limited liability company, or corporation havingtracks, conduits, subways, poles, or other equipment on, over, orunder any street or highway shall for a reasonable compensation,permit the use of the same by any other public utility or by amunicipality owning or operating a utility, whenever publicconvenience and necessity require such use, and such use will notresult in irreparable injury to the owner or other users of suchequipment, nor in any substantial detriment to the service to berendered by such owners or other users. Every public utility for theconveyance of telephone messages shall permit a physical connectionor connections to be made, and telephone service to be furnished,before any telephone system operated by it, and the telephone tollline operated by another such public utility or between its toll lineand the telephone system of another such public utility, or betweenits toll line and the toll line of another such public utility, or betweenits telephone system and the telephone system of another such publicutility, whenever public convenience and necessity require suchphysical connection or connections and such physical connection orconnections will not result in irreparable injury to the owner or otherusers of the facilities of such public utilities, nor in any substantialdetriment to the service to be rendered by such public utilities. If anyprospective consumers or patrons of any public utility for theproduction, transmission, delivery, or furnishing of light or power,living in territory outside of cities and towns, and within not toexceed 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 suchutility, such public utility shall permit the necessary physicalconnection or connections to be made and service to be furnished tothe person or persons who have constructed and installed suchequipment. The term "physical connection", as used in this section,shall mean such number of trunk lines or complete wire circuits andconnections as may be required to furnish reasonably adequatetelephone service between such public utilities.
(b) In case of failure to agree upon such use or the conditions orcompensations for such use, or in case of failure to agree upon suchphysical connection or connections, or the terms and conditions uponwhich the same shall be made, any public utility or any person,association, limited liability company, or corporation interested mayapply to the commission and if after investigation the commissionshall ascertain that public convenience and necessity require such useor such physical connections, and that such use or such physicalconnection or connections would not result in irreparable injury to
the owner or other users of such equipment or the facilities of suchpublic utilities, nor in any substantial detriment to the service to berendered by such owner or other public utilities or other users ofsuch equipment or facilities, it shall by order direct that such use bepermitted and prescribe reasonable conditions and compensations forsuch joint use and that such physical connection or connections bemade and determine how and within what time such connection orconnections shall be made, and by whom the expense of making andmaintaining such connection or connections shall be paid.
(c) Such use so ordered shall be permitted, and such physicalconnection or connections so ordered shall be made and suchconditions and compensation so prescribed for such use, and suchterms and conditions upon which such physical connection orconnections shall be made, as so determined, shall be lawfulconditions and compensations for such use, and the lawful terms andconditions upon which such physical connection or connections shallbe made, to be observed, followed, and paid, subject to recourse tothe courts upon the complaint of any interested party as provided insections 73 and 74 of this chapter and IC 8-1-3, and such statute sofar as applicable shall apply to any action arising on such complaintso made. Any such order of the commission may be from time totime revised by the commission upon application of any interestedparty 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 everypublic utility actually used and useful for the convenience of thepublic at its fair value, giving such consideration as it deemsappropriate in each case to all bases of valuation which may bepresented or which the commission is authorized to consider by thefollowing provisions of this section. As one of the elements in suchvaluation the commission shall give weight to the reasonable cost ofbringing the property to its then state of efficiency. In making suchvaluation, the commission may avail itself of any information inpossession of the department of local government finance or of anylocal authorities. The commission may accept any valuation of thephysical property made by the interstate commerce commission ofany public utility subject to the provisions of this act.
(b) The lands of such public utility shall not be valued at a greateramount than the assessed value of said lands exclusive ofimprovements as valued for taxation. In making such valuation noaccount shall be taken of presumptive value resting on naturalresources independent of any structures in relation thereto, thenatural resource itself shall be viewed as the public's property. Noaccount shall be taken of good will for presumptive values growingout of the operation of any utility as a going concern, all such values
to rest with the municipality by reason of the special and exclusivegrants given such utility enterprises. No account shall be taken ofconstruction costs unless such costs were actually incurred and paidas part of the cost entering into the construction of the utility. Allpublic utility valuations shall be based upon tangible property, thatis, such property as has value by reason of construction costs, eitherin materials purchased or in assembling of materials into structuresby the labor or (of) workers and the services of superintendents,including engineers, legal and court costs, accounting systems andtransportation costs, and also including insurance and interestcharges on capital accounts during the construction period. As anelement in determining value the commission may also take intoaccount reproduction costs at current prices, less depreciation, basedon the items set forth in the last sentence hereof and shall not includegood will, going value, or natural resources.
(c) In determining the amount of allowable operating expenses ofa utility, the commission may not take into consideration or approveany expense for institutional or image building advertising, charitablecontributions, 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 facilityand directly or indirectly reduces airborne emissions of sulfuror nitrogen based pollutants associated with the combustion oruse of coal; and
(2) that either:
(A) is not in general commercial use at the same or greaterscale in new or existing facilities in the United States as ofJanuary 1, 1989; or
(B) has been selected by the United States Department ofEnergy for funding under its Innovative Clean CoalTechnology program and is finally approved for suchfunding on or after January 1, 1989.
(b) As used in this section, "Indiana coal" means coal from a minewhose coal deposits are located in the ground wholly or partially inIndiana regardless of the location of the mine's tipple.
(c) Except as provided in subsection (d), the commission shallallow a utility to recover as operating expenses those expensesassociated with:
(1) research and development designed to increase use ofIndiana coal; and
(2) preconstruction costs (including design and engineeringcosts) associated with employing clean coal technology at a
new or existing coal burning electric generating facility if thecommission finds that the facility:
(A) utilizes and will continue to utilize (as its primary fuelsource) Indiana coal; or
(B) is justified, because of economic considerations orgovernmental requirements, in utilizing non-Indiana coal;
after the technology is in place.
(d) The commission may only allow a utility to recoverpreconstruction costs as operating expenses on a particular project ifthe commission awarded a certificate under IC 8-1-8.7 for thatproject.
(e) The commission shall establish guidelines for determiningrecoverable 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 propertyconstructed before March 31, 2002
Sec. 6.6. (a) As used in this section:
"Clean coal technology" means a technology (includingprecombustion treatment of coal):
(1) that is used at a new or existing electric generating facilityand directly or indirectly reduces airborne emissions of sulfuror nitrogen based pollutants associated with combustion or useof coal; and
(2) that either:
(A) is not in general commercial use at the same or greaterscale in new or existing facilities in the United States as ofJanuary 1, 1989; or
(B) has been selected by the United States Department ofEnergy for funding under its Innovative Clean CoalTechnology program and is finally approved for suchfunding on or after January 1, 1989.
"Indiana coal" means coal from a mine whose coal deposits arelocated in the ground wholly or partially in Indiana regardless of thelocation of the mine's tipple.
"Qualified pollution control property" means an air pollutioncontrol device on a coal burning electric generating facility or anyequipment that constitutes clean coal technology that has beenapproved for use by the commission, that meets applicable state orfederal requirements, and that is designed to accommodate theburning of coal from the geological formation known as the IllinoisBasin.
"Utility" refers to any electric generating utility allowed by law toearn a return on its investment.
(b) Upon the request of a utility that began construction afterOctober 1, 1985, and before March 31, 2002, of qualified pollutioncontrol property that is to be used and useful for the publicconvenience, the commission shall for ratemaking purposes add tothe value of that utility's property the value of the qualified pollution
control property under construction, but only if at the time of theapplication and thereafter:
(1) the facility burns only Indiana coal as its primary fuel sourceonce the air pollution control device is fully operational; or
(2) the utility can prove to the commission that the utility isjustified because of economic considerations or governmentalrequirements in utilizing some non-Indiana coal.
(c) The commission shall adopt rules under IC 4-22-2 toimplement 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 facilityand directly or indirectly reduces airborne emissions of sulfuror nitrogen based pollutants associated with the combustion oruse of coal; and
(2) that either:
(A) is not in general commercial use at the same or greaterscale in new or existing facilities in the United States as ofJanuary 1, 1989; or
(B) has been selected by the United States Department ofEnergy for funding under its Innovative Clean CoalTechnology program and is finally approved for suchfunding on or after January 1, 1989.
(b) The commission shall allow a public or municipally ownedelectric utility that incorporates clean coal technology to depreciatethat technology over a period of not less than ten (10) years or theuseful economic life of the technology, whichever is less and notmore than twenty (20) years if it finds that the facility where theclean coal technology is employed:
(1) utilizes and will continue to utilize (as its primary fuelsource) Indiana coal; or
(2) is justified, because of economic considerations orgovernmental 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 propertyconstructed after March 31, 2002
Sec. 6.8. (a) This section applies to a utility that beginsconstruction of qualified pollution control property after March 31,2002.
(b) As used in this section, "clean coal technology" means atechnology (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 emissionsassociated with the combustion or use of coal; and
(2) that either:
(A) was not in general commercial use at the same or greaterscale in new or existing facilities in the United States at thetime of enactment of the federal Clean Air Act Amendmentsof 1990 (P.L.101-549); or
(B) has been selected by the United States Department ofEnergy for funding under its Innovative Clean CoalTechnology program and is finally approved for suchfunding on or after the date of enactment of the federalClean 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 energygenerating facility or any equipment that constitutes clean coaltechnology that has been approved for use by the commission andthat meets applicable state or federal requirements.
(d) As used in this section, "utility" refers to any energygenerating utility allowed by law to earn a return on its investment.
(e) Upon the request of a utility that begins construction afterMarch 31, 2002, of qualified pollution control property that is to beused and useful for the public convenience, the commission shall forratemaking purposes add to the value of that utility's property thevalue of the qualified pollution control property under construction.
(f) The commission shall adopt rules under IC 4-22-2 toimplement 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 commissionshall, after notice to the public utility, hold a public hearing as tosuch valuation in the manner prescribed for a hearing in sections 54through 67 of this chapter, and the provisions of such sections so faras 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 suchvaluation is determined, shall deliver a written statement thereof tothe public utility interested and a copy thereof to the clerk of eachmunicipality in which any part of the plant or equipment of suchutility is located. In such statement, the commission shall declare andfix the reasonable and necessary expenses incurred by it in makingsuch valuation, and, within twenty (20) days thereafter, the utilityshall pay into the treasury of the state the amount of the expenses sodeclared and fixed. (b) The commission shall not make any order, based on any suchvaluation, increasing any rate of any public utility until suchexpenses have been paid. All such moneys paid into the treasury ofthe state are hereby appropriated to the commission until andincluding September 30, 1925, to defray its expenses until said dateand 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 amendedby 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 thecommission, in the manner and form prescribed by the commission,uniform accounts of all business transacted. In formulating a systemof accounting for any class of public utilities, the commission shallconsider any system of accounting established by any federal law,commission or department and any system authorized by a nationalassociation 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 anyother or subsidiary business shall, if ordered by the commission,keep and render separately to the commission, in like manner andform, the accounts of all such business, in which case all theprovisions of this chapter shall apply with like force and effect to thebooks, accounts, papers, and records of such other business;provided, every public utility may, with consent of the commissionand the proper local authorities, furnish to all patrons or personsapplying therefor any service, product, or commodity which itcreates as a necessary incident and subsidiary to its main or primarybusiness. No such consent shall be granted except as provided insection 86 of this chapter, and every such subsidiary business shallbe 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 publicutility is required to keep and render its books, accounts, papers andrecords accurately and faithfully in the manner and form prescribed
by the commission and to comply with all directions of thecommission 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 suitableblanks for carrying out the purpose of this chapter and shall, whennecessary, 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 orapproved by the commission, unless required by other publicauthority.
(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 thetowns or cities in this state in which its property or some part thereofis located, and shall keep in said office all books, accounts, papers,and records as shall be required by the commission to be kept withinthe state. No books, accounts, papers, or records required by thecommission to be kept within the state shall be at any time removedfrom this state, except upon such conditions as may be prescribed bythe commission. A majority in number of the board of directors ofeach and every company or association organized under Indianastatutes and coming under the provisions of this chapter shall bebona fide residents and citizens of the state of Indiana while actingas such directors.
(Formerly: Acts 1913, c.76, s.18; Acts 1915, c.110, s.1.) As amendedby 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-firstday of December, and a balance sheet of that date promptly takentherefrom. On or before the thirtieth day of April following, suchbalance sheet, together with such other information as thecommission shall prescribe, verified by an officer of the publicutility, shall be filed with the commission.
(Formerly: Acts 1913, c.76, s.19; Acts 1917, c.150, s.1.) As amendedby 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 andaudit of all accounts, and all items shall be allocated to the accountsin 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 andexamination
Sec. 18. The agents, accountants or examiners employed by thecommission shall have authority, under the direction of thecommission, 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 andadequate depreciation account whenever the commission, afterinvestigation, shall determine that such depreciation accountreasonably can be required. The commission, from time to time, shallascertain and determine the proper and adequate rates of depreciationof the several classes of property of each public utility. The rates,tolls and charges shall be such as will provide the amounts requiredover and above the reasonable and necessary operating expenses, tomaintain such property in an operating state of efficiencycorresponding to the progress of the industry. Each public utilityshall conform its depreciation accounts to such rates, so ascertainedand determined by the commission. The commission shall makechanges in such rates of depreciation, from time to time, as it mayfind 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, regulationsand forms of accounts regarding such depreciation, which the publicutility 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 infixing 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 theearnings and carried in a separate depreciation fund. The money in
this fund shall be applied first to depreciation expenses. Any balancein the fund, not applied to depreciation expenses, may be invested bythe public utility or expended temporarily by it for new construction,extensions or additions to its utility property. This fund shall be usedfor no other purpose. If invested, the income from the investmentshall be carried into and become a part of the depreciation fund. Anybalance, not applied to depreciation expenses, shall always remain apart of the depreciation fund. In no event shall moneys, temporarilyexpended from this fund for new construction, extensions oradditions to the property, be carried into or considered a part of thecapital account of such public utility. Upon the sale of any publicutility property, to continue in operation as such, the balance in thedepreciation fund, unexpended for depreciation expenses, shall betransferred 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 bycommission
Sec. 23. The commission shall keep itself informed of all newconstruction, extensions and additions to the property of such publicutility and shall prescribe the necessary forms, regulations andinstructions to the officers and employees of such public utility forthe keeping of construction accounts which shall clearly distinguishall operating expenses and new construction. Unless a public utilityshall obtain the approval by the commission of any expenditureexceeding ten thousand dollars ($10,000) for an extension,construction, addition or improvement of its plant and equipment, thecommission shall not, in any proceeding involving the rates of suchutility, consider the property acquired by such expenditures as a partof the rate base, unless in such proceeding the utility shall show thatsuch property is in fact used and useful in the public service;Provided, That the commission in its discretion may authorize theexpenditure for such purpose of a less amount than shown in suchestimate.
(Formerly: Acts 1913, c.76, s.26; Acts 1933, c.190, s.5.)
IC 8-1-2-24
Surplus profits; division or distribution; sliding scale of charges
Sec. 24. Nothing in this chapter shall be taken to prohibit a publicutility from entering into any reasonable arrangement with itscustomers or consumers, or with its employees, or with anymunicipality in which any of its property is located, for the divisionor distribution of its surplus profits, or providing for a sliding scaleof charges or other financial device that may be practicable andadvantageous to the parties interested. No such arrangement ordevice shall be lawful until it shall be found by the commission, afterinvestigation, to be reasonable and just and not inconsistent with thepurpose of this chapter. Such arrangement shall be under the
supervision and regulation of the commission.
(Formerly: Acts 1913, c.76, s.27.) As amended by P.L.59-1984,SEC.16.
IC 8-1-2-25
Rates and charges; rules and regulations involving changes
Sec. 25. The commission shall ascertain, determine and order suchrates, charges and regulations as may be necessary to give effect tosuch arrangement, but the right and power to make such other andfurther changes in rates, charges and regulations as the commissionmay ascertain and determine to be necessary and reasonable, and theright to revoke its approval and amend or rescind all orders relativethereto, is reserved and vested in the commission, notwithstandingany 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 insuch form and at such time as the commission shall require, suchaccounts, 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 othersales, 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 whoare not employees;
(13) names of, and amount of fees paid to, other consultants;and
(14) such other items, whether of a nature similar to thosehereinbefore enumerated or otherwise, as the commission mayprescribe, in order to show completely and in detail the entireoperation of the public utility in furnishing the unit of itsproduct 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; accessof parties to relevant rate information
Sec. 29. (a) All facts and information in the possession of thecommission and all reports, records, files, books, accounts, papers,and memoranda of every nature whatsoever in its possession shall beopen to inspection by the public at all reasonable times subject toIC 5-14-3.
(b) Nothing in this section shall be construed to limit the accessof parties to rate and finance proceedings before the commission toinformation in the possession of another party that is relevant to theissues 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 eachkind of public utility suitable and convenient standard commercialunits of product or service. These shall be lawful units for thepurpose 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 andserviceable standards for the measurement of quality, pressure, initialvoltage, or other conditions pertaining to the supply of the productor service rendered by any public utility and prescribe reasonableregulations for examinations and testing of such product or serviceand 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 ofall meters and appliances for measurements, and every public utility
is required to carry into effect all orders issued by the commissionrelative thereto. Nothing contained in this section shall limit in anymanner any powers or authority vested in municipal corporations asprovided 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 rulesand regulations to govern the relations between public utilities andany or all classes of their customers. Those rules and regulationsshall 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 therules.
(b) Notwithstanding IC 8-1-2-54, the commission may investigateand enter orders on complaints filed by individual customers arisingunder this section. The commission may establish an appeals divisionto act on its own behalf regarding individual customer complaints.The decision of the division shall be binding on all parties to thecomplaint. The commission shall review decisions of the appealsdivision upon timely request by an affected party.
(c) This section does not invalidate any rule or regulation adoptedby the commission before July 1, 1979, to govern the relationsbetween public utilities and their consumers if the rule or regulationis 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 andtesting of any and all appliances used for the measuring of anyproduct or service of a public utility. Any consumer or user may haveany such appliance tested upon payment of the fees fixed by thecommission. The commission shall declare and establish reasonablefees to be paid for testing such appliances on the request of theconsumers or users, the fee to be paid by the consumer or user at thetime of his request, but to be paid by the public utility and repaid tothe consumer or user if the appliance or rate be found unreasonablydefective 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, apparatusand standard measuring instruments for such examinations and testsas 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 anybuilding containing more than one (1) residential unit, includingtrailer courts and similar multiple user installations, but does notinclude hotels, motels, or other similar transient lodging.
(b) Notwithstanding any other law, any owner, operator, ormanager 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 forelectricity because the building is exempt from commissionrules on master metering or for any other lawful reason;
may install kilowatt hour submetering equipment for each individualdwelling unit to fairly allocate the cost of each individual dwellingunit's electrical consumption and charge the tenant of the dwellingunit for that consumption.
(c) The submetering equipment shall be used to measure thenumber of kilowatt hours used by a tenant during a particular billingperiod. The amount that a tenant owes is equal to:
(1) the total number of kilowatt hours consumed by the tenantduring a particular billing period; multiplied by
(2) a fraction, the numerator of which is the total electric bill fora master meter, and the denominator of which is the totalkilowatt hours consumed on a master meter, all for the samebilling period as in subdivision (1).
The total electric bill for a master meter, in addition to the rate perkilowatt hour, includes any sales tax, demand charges, energycomponent charges, and any other taxes or charges that are lawfullyapplied to the bill. The owner, operator, or manager of a building orbuildings served by a master meter may not impose on the tenant anyextra charges over and above the total electric bill for a master meter(which includes the rate per kilowatt hour and any lawful taxes orcharges, but does not include a late payment charge) for a particularbilling period than is charged to the owner, operator, or manager ofa building or buildings served by a master meter.
(d) The commission shall adopt rules in accordance withIC 4-22-2 to govern the following:
(1) Maintenance of adequate records by the owner, operator, ormanager of a building or buildings served by a master meter.
(2) Accuracy, testing, and recordkeeping associated with thesubmeters.
(3) Complaints of violations of this section, filed with andinvestigated by the consumer affairs department of the
commission.
(4) Procedures for the installation of submetering equipment.
(5) Procedures for hearings on complaints filed undersubdivision (3).
(6) Any other rules necessary to carry out this section.
(e) In the hearings on complaints under subsection (d)(5), thecommission's authority is limited solely to a determination ofwhether a violation did in fact occur.
(f) The commission shall adopt rules in accordance with IC 4-22-2to 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 shallhave power to enter upon any premises occupied by any public utilityfor the purpose of making the examinations and tests provided in thischapter and to set up and use on such premises any apparatus andappliances 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, withina time fixed by the commission, schedules, which shall be open topublic inspection, showing all rates, tolls and charges which it hasestablished and which are enforced at the time for any serviceperformed by it within the state, or for any service in connectiontherewith, or performed by any public utility controlled or operatedby it. The rates, tolls and charges shown on such schedules shall notexceed, without the consent of the commission, the rates, tolls andcharges 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 toaccompany
Sec. 39. Every public utility shall file, with and as a part of suchschedule, all rules and regulations that in any manner affect the ratescharged 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 commissionshall deem necessary for the use of the public shall be printed inplain type, and kept on file in every station or office of such publicutility where payments are made by the consumers or users, open to
the public in such form and place as to be readily accessible to thepublic 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 bein force between two (2) or more public utilities, such schedulesshall, in like manner, be printed and filed with the commission andso much thereof as the commission shall deem necessary for the useof the public shall be filed in every such station or office as providedin 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, includingschedules of joint rates, except upon thirty (30) days notice to thecommission, and approval by the commission, and all such changesshall be plainly indicated upon existing schedules or by filing newschedules in lieu thereof thirty (30) days prior to the time the sameare to take effect. The commission may prescribe a shorter timewithin which a change may be made. A public, municipally owned,or cooperatively owned utility may not file a request for a generalincrease in its basic rates and charges within fifteen (15) months afterthe filing date of its most recent request for a general increase in itsbasic rates and charges, except that the commission may order amore timely increase if:
(1) the requested increase relates to a different type of utilityservice;
(2) the commission finds that the utility's financial integrity orservice 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 agencieshaving jurisdiction over the utility.
The phrase "general increase in basic rates and charges" does notinclude changes in rates related solely to the cost of fuel or to thecost of purchased gas or purchased electricity or adjustments inaccordance 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 orauthorizes any changes in charges based upon costs is effectivewithout the approval of the commission. Before the commissionapproves any changes in the schedule of rates, tolls, and charges ofan electric utility, which generates and sells electricity, based uponthe cost of fuel to generate electricity or upon the cost of fuelincluded 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 todetermine the cost of fuel upon which the proposed charges arebased. In addition, before such a fuel cost charge becomes effective,the commission shall hold a summary hearing on the sole issue of thefuel charge. The utility consumer counselor shall conduct his reviewand make a report to the commission within twenty (20) days afterthe utility's request for the fuel cost charge is filed. The commissionshall hold the summary hearing and issue its order within twenty (20)days after it receives the utility consumer counselor's report. Theprovisions of this section and sections 39, 43, 54, 55, 56, 59, 60, and61 of this chapter concerning the filing, printing, and changing ofrate schedules and the time required for giving notice of hearing andrequiring publication of notice do not apply to such a fuel cost chargeor such a summary hearing.
(c) Regardless of the pendency of any request for a fuel costcharge by any electric utility, the books and records pertaining to thecost of fuel of all public, municipally owned, or cooperatively ownedutilities that generate electricity shall be examined by the utilityconsumer counselor not less often than quarterly, and the books andrecords of all electric nongenerating public, municipally owned, orcooperatively owned utilities shall be examined by the utilityconsumer counselor not less often than annually. The utilityconsumer counselor shall provide the commission with a report as tothe examination of said books and records within a reasonable timefollowing said examination. The utility consumer counselor may, ifappropriate, request of the commission a reduction or elimination ofthe fuel cost charge. Upon such request, the commission shall holda hearing forthwith in the manner provided in sections 58, 59, and 60of this chapter.
(d) An electric generating utility may apply for a change in its fuelcharge not more often than each three (3) months. When suchapplication is filed the petitioning utility shall show to thecommission its cost of fuel to generate electricity and the cost of fuelincluded in the cost of purchased electricity, for the period betweenits last order from the commission approving fuel costs in its basicrates and the latest month for which actual fuel costs are available.The petitioning utility shall also estimate its average fuel costs forthe three (3) calendar months subsequent to the expiration of thetwenty (20) day period allowed the commission in subsection (b).The commission shall conduct a formal hearing solely on the fuelcost charge requested in the petition subject to the noticerequirements of IC 8-1-1-8 and shall grant the electric utility therequested fuel cost charge if it finds that:
(1) the electric utility has made every reasonable effort toacquire fuel and generate or purchase power or both so as toprovide electricity to its retail customers at the lowest fuel costreasonably possible;
(2) the actual increases in fuel cost through the latest month forwhich actual fuel costs are available since the last order of the
commission approving basic rates and charges of the electricutility have not been offset by actual decreases in otheroperating expenses;
(3) the fuel adjustment charge applied for will not result in theelectric utility earning a return in excess of the return authorizedby the commission in the last proceeding in which the basicrates and charges of the electric utility were approved.However, subject to section 42.3 of this chapter, if the fuelcharge applied for will result in the electric utility earning areturn in excess of the return authorized by the commission, inthe last proceeding in which basic rates and charges of theelectric utility were approved, the fuel charge applied for willbe reduced to the point where no such excess of return will beearned; and
(4) the utility's estimate of its prospective average fuel costs foreach such three (3) calendar months are reasonable after takinginto consideration:
(A) the actual fuel costs ex