IC 8-1-2.7
    Chapter 2.7. Local Water Corporations; Indiana UtilityRegulatory Commission Jurisdiction

IC 8-1-2.7-1
Repealed
    (Repealed by P.L.82-1997, SEC.19 and P.L.80-1997, SEC.24.)

IC 8-1-2.7-1.2
Repealed
    (Repealed by P.L.159-1999, SEC.21.)

IC 8-1-2.7-1.3
Applicability of chapter
    Sec. 1.3. (a) This chapter applies to the following:
        (1) A public utility established to provide water service that is:
            (A) privately owned and serves less than three hundred (300)customers;
            (B) a not-for-profit utility (as defined by IC 8-1-2-125(a));
            (C) a cooperative corporation exempt from state and federalincome taxation; or
            (D) a conservancy district established under IC 14-33-2 that:
                (i) has as a purpose of the district the provision of a watersupply, including the treatment and distribution of water,for domestic, industrial, and public use; and
                (ii) provides water service to less than two thousand(2,000) customers.
        (2) A public utility established to provide sewage disposalservice (as defined in IC 8-1-2-89(a)(1)) that holds a certificateof territorial authority as required by IC 8-1-2-89, and that is:
            (A) privately owned and serves less than three hundred (300)customers;
            (B) a not-for-profit utility (as defined in IC 8-1-2-125(a)); or
            (C) a cooperative corporation exempt from state and federalincome taxation.
        (3) Except as provided in subsection (b), a legal entityproviding only sewage treatment service to a not-for-profitsewage disposal company.
    (b) Subsection (a)(3) does not include a sewage treatmentprovider that is otherwise subject to the commission's jurisdiction.
As added by P.L.82-1997, SEC.2 and P.L.80-1997, SEC.2. Amendedby P.L.159-1999, SEC.2; P.L.78-2007, SEC.1.

IC 8-1-2.7-1.4
"Members" and "shareholders" defined
    Sec. 1.4. As used in this chapter, "members" of a not-for-profitwater or sewage disposal company and "shareholders" of a privatelyowned water or sewage disposal company shall also include thecustomers of that utility.
As added by P.L.80-1997, SEC.3 and P.L.82-1997, SEC.3. Amended

by P.L.159-1999, SEC.3.

IC 8-1-2.7-1.5
Repealed
    (Repealed by P.L.159-1999, SEC.21.)

IC 8-1-2.7-1.6
"Sewage treatment provider" defined
    Sec. 1.6. (a) As used in this chapter, "sewage treatment provider"means a legal entity that provides only sewage treatment service toa not-for-profit sewage disposal company.
    (b) As used in this chapter, "sewage treatment recipient" meansa not-for-profit sewage disposal company that receives sewagetreatment service from another legal entity.
As added by P.L.159-1999, SEC.4.

IC 8-1-2.7-1.7
Entity contracting with nonprofit public sewage utility not subjectto commission jurisdiction
    Sec. 1.7. (a) This section does not apply to a sewage treatmentprovider that is otherwise subject to the jurisdiction of thecommission.
    (b) When a sewage treatment provider contracts to provide onlysewage treatment service to a sewage treatment recipient, the sewagetreatment provider is not subject to the jurisdiction of thecommission, regardless of whether the sewage treatment recipient issubject to the jurisdiction of the commission.
As added by P.L.80-1997, SEC.5 and P.L.82-1997, SEC.5. Amendedby P.L.159-1999, SEC.5.

IC 8-1-2.7-2
Withdrawal of utility from commission jurisdiction
    Sec. 2. (a) This chapter provides the exclusive statutory mannerfor a utility described in section 1.3(a)(1) or 1.3(a)(2) of this chapterto withdraw from the jurisdiction of the commission for the approvalof the following:
        (1) Rates and charges.
        (2) Stocks, bonds, notes, or other evidence of indebtedness.
        (3) Rules.
        (4) The annual report filing requirement.
    (b) Notwithstanding any other provision in this article, a sewerdisposal company described in section 1.3(a)(2) of this chapter shallnot initiate operations or provide service or seek commissionauthority to do so within a territory for which the commission hasgranted operating and territorial authority to any other entity, whichhas not been revoked.
    (c) A sewage disposal company described in section 1.3(a)(2) ofthis chapter that has withdrawn from commission jurisdiction underthis chapter shall offer service to all customers within the territoryfor which the commission has granted the utility territorial authority.As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.6;P.L.82-1997, SEC.6; P.L.159-1999, SEC.6.

IC 8-1-2.7-3
Approval for withdrawal
    Sec. 3. A utility described in section 1.3(a)(1) or 1.3(a)(2) of thischapter that proposes to withdraw from the jurisdiction of thecommission must first obtain approval from its members orshareholders.
As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.7;P.L.82-1997, SEC.7; P.L.159-1999, SEC.7.

IC 8-1-2.7-4
Referendum on withdrawal
    Sec. 4. The board of directors of a utility described in section1.3(a)(1) or 1.3(a)(2) of this chapter must conduct a referendumamong its members or shareholders to determine whether themembers or shareholders approve the withdrawal from commissionjurisdiction.
As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.8;P.L.82-1997, SEC.8; P.L.159-1999, SEC.8.

IC 8-1-2.7-5
Notice of special meeting for referendum
    Sec. 5. The referendum must be conducted at a special meetingcalled by the board. Written notice of the meeting must be sent toevery member or shareholder of the withdrawing utility and to thesecretary of the commission not less than thirty (30) days before thedate of the meeting. The notice must contain the followinginformation:
        (1) The place, date, and hour of the meeting.
        (2) The purpose of the meeting, including an explanation ofwhat the withdrawal from commission jurisdiction entails.
        (3) The fact that no proxies will be permitted.
As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997, SEC.9;P.L.82-1999, SEC.9; P.L.159-1999, SEC.9.

IC 8-1-2.7-6
Quorum
    Sec. 6. A quorum consisting of not less than five percent (5%) ofthe members must be present at the meeting to transact business andto take official action regarding the jurisdiction question.
As added by P.L.108-1989, SEC.1.

IC 8-1-2.7-7
Ballots; form; eligible voters; results
    Sec. 7. The board shall distribute secret written ballots to themembers or shareholders present at the meeting. The form of theballots must be as follows:
        [] YES, I want to withdraw from the jurisdiction of the

commission.
        [] NO, I want to remain under the jurisdiction of thecommission.
Only those members or shareholders present at the meeting areeligible to vote, and proxy votes are not permitted. Each member orshareholder present is entitled to one (1) vote on the question ofwithdrawal from commission jurisdiction. If a majority of membersor shareholders present vote in favor of the utility withdrawing fromcommission jurisdiction, the withdrawal becomes effective thirty(30) days after the date of the vote. If less than a majority of themembers or shareholders present vote in favor of withdrawal fromcommission jurisdiction, the utility is prohibited from seekingwithdrawal for two (2) years following the date of the vote.
As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997,SEC.10; P.L.82-1997, SEC.10; P.L.159-1999, SEC.10.

IC 8-1-2.7-8
Repealed
    (Repealed by P.L.159-1999, SEC.21.)

IC 8-1-2.7-9
Effect of withdrawal
    Sec. 9. (a) Except as provided under subsection (c) or section 15of this chapter, when a utility successfully withdraws fromcommission jurisdiction, the commission does not have authority toregulate the following:
        (1) Rates and charges.
        (2) Stocks, bonds, notes, or other evidence of indebtedness.
        (3) Rules.
        (4) The annual report filing requirement.
    (b) When the number of patrons served by a withdrawn utilitydescribed in section 1.3(a)(1)(A) or 1.3(a)(2)(A) of this chapterreaches five thousand (5,000), the utility:
        (1) becomes subject to the annual report filing requirementdescribed in IC 8-1-2-16; and
        (2) shall immediately notify the commission of the number ofpatrons served by the utility.
Upon receiving notice under subdivision (2), the commission mayreassert jurisdiction over the utility, in whole or in part, after noticeand hearing if the commission finds that the public interest sorequires.
    (c) As used in this subsection, "utility" refers to a utility describedin section 1.3(a)(1)(B) of this chapter that is located in a countyhaving a population of more than sixteen thousand seven hundred(16,700) but less than seventeen thousand (17,000). When one (1)utility has successfully withdrawn from commission jurisdictionunder this chapter, upon the filing of a complaint by another utilitythat has not withdrawn from commission jurisdiction under thischapter, the commission shall reassert jurisdiction over thewithdrawn utility with respect to the withdrawn utility's:        (1) rates and charges;
        (2) rules; and
        (3) operating and territorial authority;
that have been or may be established concerning the purchase ofwater for resale by the complaining utility from the withdrawnutility. The rates and charges described in subdivision (1) are subjectto the requirements of IC 8-1-2-125. The burden of proof that therates and charges described in subdivision (1) comply withIC 8-1-2-125 is on the withdrawn utility.
As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997,SEC.12; P.L.82-1997, SEC.12; P.L.159-1999, SEC.11;P.L.226-2001, SEC.2; P.L.170-2002, SEC.58.

IC 8-1-2.7-10
Confirmation of withdrawal
    Sec. 10. (a) If a utility successfully withdraws from commissionjurisdiction, the board of directors shall, within five (5) days of themeeting, send written confirmation to the secretary of thecommission containing the following information:
        (1) The total membership or number of shareholders of theutility.
        (2) The total number present at the meeting.
        (3) The vote totals both for and against withdrawal.
        (4) Written verification of notice of the meeting.
        (5) An affidavit, signed by all of the members of the board ofdirectors, stating that all of the requirements of this chapterhave been met.
    (b) If a utility successfully withdraws from commissionjurisdiction, the utility is not required to pay the public utility feeimposed under IC 8-1-6.
    (c) Notwithstanding any other provision of this chapter, a utilitydescribed in section 1.3(a)(2) of this chapter that has withdrawn fromcommission jurisdiction remains subject to commission jurisdictionwith regard to the requirements of IC 8-1-2-89(f).
    (d) Whenever two (2) or more utilities described in section1.3(a)(1) or 1.3(a)(2) of this chapter propose to consolidate, and atleast one (1), but not all of the utilities have withdrawn fromcommission jurisdiction, then the following apply:
        (1) For purposes of the consolidation, all of the utilities areunder the commission's jurisdiction.
        (2) The new corporation that is formed as a result of theconsolidation is under the commission's jurisdiction for allpurposes and must fully comply with this chapter in order towithdraw from commission jurisdiction.
    (e) If two (2) or more utilities described in section 1.3(a)(1)(C) or1.3(a)(2)(C) of this chapter propose to consolidate, and all of thecooperatives have withdrawn from commission jurisdiction, the newutility continues to operate outside the commission's jurisdictionunder the terms of this section.
    (f) The commission's approval is not required for consolidation of

two (2) or more utilities that have all withdrawn from commissionjurisdiction.
As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997,SEC.13; P.L.82-1997, SEC.13; P.L.159-1999, SEC.12.

IC 8-1-2.7-11
Petition to return to commission jurisdiction; referendum; ballotform
    Sec. 11. (a) Whenever the members or shareholders of a utilitydesire to return to commission jurisdiction, they must petition thecommission. A petition signed by:
        (1) at least fifteen percent (15%) of the members orshareholders; or
        (2) the board of directors of the utility;
must first be submitted to the commission, informing that body of theutility's intent to conduct a referendum concerning the return tocommission jurisdiction. The procedures outlined in sections 2through 7 of this chapter must be followed when conducting areferendum under this section, except that the form of the ballotsmust be as follows:
        [] YES, I want to return to the jurisdiction of the commission.
        [] NO, I want to remain outside of the jurisdiction of thecommission.
    (b) The question of returning to commission jurisdiction may notbe submitted to the members or shareholders within four (4) yearsafter the date the utility withdrew from commission jurisdiction.
As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997,SEC.14; P.L.82-1997, SEC.14; P.L.159-1999, SEC.13.

IC 8-1-2.7-12
Return to commission jurisdiction
    Sec. 12. If a utility returns to commission jurisdiction, thecommission assumes jurisdiction thirty (30) days after the date of thevote over the following:
        (1) Rates and charges.
        (2) Stocks, bonds, notes, or other evidence of indebtedness.
        (3) Rules.
        (4) The annual report filing requirement.
If less than a majority of the members or shareholders present votein favor of returning to commission jurisdiction, a referendum on thequestion may not be conducted for four (4) years following the dateof the vote.
As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997,SEC.15; P.L.82-1997, SEC.15; P.L.159-1999, SEC.14.

IC 8-1-2.7-13
Confirmation of return to commission jurisdiction
    Sec. 13. If a utility attempts to return to commission jurisdiction,the board of directors shall, within five (5) days following themeeting, send written confirmation to the secretary of the

commission containing the following information:
        (1) The total membership or number of shareholders of theutility.
        (2) The total number present at the meeting.
        (3) The vote totals both for and against the return.
        (4) Written verification of notice of the meeting.
        (5) An affidavit, signed by all the members of the board ofdirectors, stating that all of the requirements of this chapterhave been met.
As added by P.L.108-1989, SEC.1. Amended by P.L.82-1997,SEC.16; P.L.80-1997, SEC.16; P.L.159-1999, SEC.15.

IC 8-1-2.7-14
Annual reports of utility before return to commission jurisdiction
    Sec. 14. When a utility returns to commission jurisdiction, thecommission may order the utility to file an annual report of theoperation of its plant for each of the three (3) calendar yearsimmediately preceding its return to commission jurisdiction on aform prescribed by the commission.
As added by P.L.108-1989, SEC.1. Amended by P.L.80-1997,SEC.17; P.L.82-1997, SEC.17; P.L.159-1999, SEC.16.

IC 8-1-2.7-14.5
Failure to follow procedures for withdrawal from or return tocommission's jurisdiction
    Sec. 14.5. (a) This section applies when a utility fails to follow theprocedures provided in this chapter for withdrawal from or return tothe commission's jurisdiction.
    (b) To contest compliance with this chapter:
        (1) parties aggrieved by the decision to withdraw fromcommission jurisdiction; or
        (2) other interested parties;
must file an action in the circuit or superior court with jurisdiction inthe county where the utility has its principal office.
    (c) An action filed under this section must be filed not later thanthirty (30) days after the date of the vote regarding commissionjurisdiction over the utility.
As added by P.L.159-1999, SEC.17.

IC 8-1-2.7-15
Revocation or limitation of withdrawal from commissionjurisdiction
    Sec. 15. (a) This section applies after a utility has properlywithdrawn from commission jurisdiction under this chapter.
    (b) The commission shall revoke or limit the withdrawal from thejurisdiction of the commission of a utility if the lesser of:
        (1) one hundred (100); or
        (2) more than fifty percent (50%);
of the utility's customers file, individually or collectively, a verifiedpetition with the commission and prove that the public interest

requires the commission to revoke or limit the withdrawal from thejurisdiction of the commission.
    (c) A petition may be filed with the commission under this sectionat any time following the withdrawal of the utility.
As added by P.L.82-1997, SEC.18. Amended by P.L.159-1999,SEC.18.