IC 8-1-30
    Chapter 30. Operation of Certain Water and Sewer Utilities

IC 8-1-30-1
Applicability of definitions
    Sec. 1. The definitions in IC 8-1-2-1 apply throughout thischapter.
As added by P.L.145-1999, SEC.7.

IC 8-1-30-2
"Utility company" defined
    Sec. 2. As used in this chapter, "utility company" refers to eitherof the following:
        (1) A public utility that provides water or sewer service.
        (2) A regional sewer and water district.
The term does not include a municipally owned utility.
As added by P.L.145-1999, SEC.7.

IC 8-1-30-3
Commission review of operations
    Sec. 3. (a) The commission may review any of the following orany combination of the following aspects of a utility company'soperations:
        (1) Technical, financial, and managerial capacity.
        (2) Physical condition and capacity of the utility company'splant.
        (3) Compliance with Indiana or federal law or the commission'sorders.
        (4) Provision of service to customers.
    (b) The commission may conduct a review under this section uponits own motion, a request of the office of the utility consumercounselor, or upon the filing of a complaint by a customer of theutility company. The commission's order for review must state factsto justify a review by the commission.
As added by P.L.145-1999, SEC.7.

IC 8-1-30-4
Findings of violations
    Sec. 4. The commission may issue orders under section 5 of thischapter if the commission finds either of the following:
        (1) The utility company has continued violations of:
            (A) law regulating the utility company after the commissionhas ordered compliance; or
            (B) commission orders.
        (2) The commission finds after a review conducted undersection 3 of this chapter that the utility company has severedeficiencies that the utility company has failed to remedy.
As added by P.L.145-1999, SEC.7.

IC 8-1-30-5 Issuance of orders to provide for acquisition or appointment ofreceivers
    Sec. 5. (a) As used in this section, "subject utility company" refersto a utility company that is the subject of a finding by thecommission under section 4 of this chapter.
    (b) If the commission makes a finding under section 4 of thischapter, the commission may, after notice and hearing, makeappropriate orders to do any of the following:
        (1) Provide for the acquisition of the subject utility company byanother utility company, a municipally owned utility, or byanother person that has the ability to operate the subject utilitycompany:
            (A) in compliance with law and the commission's orders; and
            (B) to remedy any deficiencies found by the commission.
        (2) Provide for the appointment of a receiver to operate thesubject public utility:
            (A) in compliance with law and the commission's orders; and
            (B) to remedy any deficiencies found by the commission.
    (c) Before making an order under subsection (b), the commissionshall give notice of the hearing to the following:
        (1) The subject utility company.
        (2) Other utility companies in Indiana.
        (3) Appropriate public agencies and political subdivisions,including all municipalities, located in the subject utilitycompany's service territory.
    (d) An order under subsection (b)(1) must provide:
        (1) that the person acquiring the subject utility company mustpay the fair market value of the subject utility company at thetime of acquisition; and
        (2) the specific accounting methods and appraisal proceduresand terms by which the fair market value of the subject utilitycompany is to be determined.
    (e) An order under subsection (b)(1) may provide cost recoverymechanisms for costs associated with improvements to the acquiredsystem that are immediate and necessary to remedy deficiencies,including any of the following:
        (1) A mechanism for expediting any adjustments to the ratebase and rates of the person acquiring the subject utilitycompany.
        (2) Surcharges on customers of the acquired utility companysystem to pay for extraordinary costs.
        (3) A plan for deferring certain improvement costs andrecovering costs in phases.
        (4) A plan for equalizing rates of the subject utility companywith the rates of the person acquiring the subject utilitycompany, if necessary.
        (5) Other incentives to the person acquiring the subject utilitycompany, including adjustments to the allowed rate of return.
    (f) If the commission makes an order under subsection (b)(2), theattorney general shall file an action in a court with jurisdiction on

behalf of the commission for the appointment of a receiver underIC 32-30-5. The receiver appointed by the court:
        (1) has the same rights and duties under Indiana law as a utilitycompany providing water or sewer service; and
        (2) shall continue to operate the subject utility company untilthe court finds that the subject utility company:
            (A) has the ability to comply and will comply with Indianalaw and the commission's orders relating to the operation ofthe utility company; and
            (B) has the ability to operate without any of the deficienciesfound by the commission.
As added by P.L.145-1999, SEC.7. Amended by P.L.2-2002, SEC.37.

IC 8-1-30-6
Municipal requirement to sell utility property
    Sec. 6. A municipality or other governmental unit may not requirea utility company that provides water or sewer service to sellproperty used in the provision of such service to the municipality orgovernmental unit under IC 8-1-2-92, IC 8-1-2-93, or otherwise,unless the procedures and requirements of this chapter have beencomplied with and satisfied.
As added by P.L.145-1999, SEC.7.