CHAPTER 31. DISTRIBUTION SYSTEM IMPROVEMENT CHARGES
IC 8-1-31
Chapter 31. Distribution System Improvement Charges
IC 8-1-31-1
Applicability of definitions
Sec. 1. The definitions in IC 8-1-2-1 apply throughout thischapter.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-2
"DSIC" defined
Sec. 2. As used in this chapter, "DSIC" refers to distributionsystem improvement charge.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-3
"DSIC costs" defined
Sec. 3. As used in this chapter, "DSIC costs" means depreciationexpenses and pretax return associated with eligible distributionsystem improvements.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-4
"DSIC revenues" defined
Sec. 4. As used in this chapter, "DSIC revenues" means revenuesproduced through a DSIC exclusive of revenues from all other ratesand charges.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-5
"Eligible distribution system improvements" defined
Sec. 5. As used in this chapter, "eligible distribution systemimprovements" means new used and useful water utility plantprojects that:
(1) do not increase revenues by connecting the distributionsystem to new customers;
(2) are in service; and
(3) were not included in the public utility's rate base in its mostrecent general rate case.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-6
"Pretax return" defined
Sec. 6. As used in this chapter, "pretax return" means the revenuesnecessary to:
(1) produce net operating income equal to the public utility'sweighted cost of capital multiplied by the net original cost ofeligible distribution system improvements; and
(2) pay state and federal income taxes applicable to suchincome.As added by P.L.94-2000, SEC.1.
IC 8-1-31-7
"Public utility" defined
Sec. 7. As used in this chapter, "public utility" means a:
(1) public utility (as defined in IC 8-1-2-1(a)); or
(2) municipally owned utility (as defined in IC 8-1-2-1(h)).
As added by P.L.94-2000, SEC.1.
IC 8-1-31-8
Utility's filing of rate schedules
Sec. 8. (a) Except as provided in subsection (d), a public utilityproviding water service may file with the commission rate schedulesestablishing a DSIC that will allow the automatic adjustment of thepublic utility's basic rates and charges to provide for recovery ofDSIC costs.
(b) The public utility shall serve the office of the utility consumercounselor a copy of its filing at the time of its filing with thecommission.
(c) Publication of notice of the filing is not required.
(d) A public utility may not file a petition under this section in thesame calendar year in which the public utility has filed a request fora general increase in the basic rates and charges of the public utility.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-9
Hearing and order
Sec. 9. (a) When a petition is filed under section 8 of this chapter,the commission shall conduct a hearing.
(b) The office of the utility consumer counselor may examineinformation of the public utility to confirm that the systemimprovements are in accordance with section 5 of this chapter, toconfirm proper calculation of the proposed charge, and submit areport to the commission not later than thirty (30) days after thepetition is filed.
(c) The commission shall hold the hearing and issue its order notlater than sixty (60) days after the petition is filed.
(d) If the commission finds that a DSIC petition complies with therequirements of this chapter, the commission shall enter an orderapproving the petition.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-10
Petition for change in DSIC
Sec. 10. (a) Except as provided in subsection (b), a public utilitymay, but is not required to, file a petition for a change in its DSIC notmore often than one (1) time every twelve (12) months.
(b) Except as provided in section 15 of this chapter, a publicutility may not file a petition for a change in its DSIC in the samecalendar year in which the public utility has filed a request for a
general increase in the basic rates and charges of the public utility.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-11
Pretax return factors
Sec. 11. In determining an appropriate pretax return, thecommission may consider the following factors:
(1) The current state and federal income tax rates.
(2) The public utility's actual regulatory capital structure.
(3) The actual cost rates for the public utility's long term debtand preferred stock.
(4) The public utility's cost of common equity.
(5) Other components that the commission considersappropriate.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-12
Cost of common equity
Sec. 12. The cost of common equity to be used in the calculationof the charge shall be the most recent determination by thecommission in a general rate proceeding of the public utility. If thecommission finds that the last such determination is no longerrepresentative of current conditions, the commission may make anew determination of the common equity cost rate for use indetermining the charge, after notice and hearing. The most recentprior determination shall be used pending any redetermination.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-13
DSIC approval not permitted with certain revenues
Sec. 13. The commission may not approve a DSIC to the extentit would produce total DSIC revenues exceeding five percent (5%)of the public utility's base revenue level approved by the commissionin the public utility's most recent general rate proceeding.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-14
DSIC calculation
Sec. 14. The DSIC may be calculated based on a reasonableestimate of sales in the period in which the charge will be in effect.At the end of each twelve (12) month period the charge is in effect,and using procedures approved by the commission, the public utilityshall reconcile the difference between DSIC revenues and DSICcosts during that period and recover or refund the difference, asappropriate, through adjustment of the charge.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-15
Utility filing revised rate schedules
Sec. 15. A public utility that has implemented a DSIC under this
chapter shall file revised rate schedules resetting the charge if newbasic rates and charges become effective for the public utilityfollowing a commission order authorizing a general increase in ratesand charges that includes in the utility's rate base eligible distributionsystem improvements reflected in the DSIC.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-16
DSIC filing not general increase in basic rates and charges
Sec. 16. For purposes of IC 8-1-2-42(a), the filing of a DSIC anda change in a DSIC is not a general increase in basic rates andcharges.
As added by P.L.94-2000, SEC.1.
IC 8-1-31-17
Adoption of other procedures
Sec. 17. The commission may adopt by rule under IC 4-22-2 or byorder other procedures not inconsistent with this chapter that thecommission finds reasonable or necessary to administer a DSIC.
As added by P.L.94-2000, SEC.1.