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 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
Surplus profits; division or distribution; sliding scale of charges
Sec. 24. 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.
(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 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 ex