CHAPTER 30. OPERATION OF CERTAIN WATER AND SEWER UTILITIES
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 this
chapter.
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 either
of 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 or
any combination of the following aspects of a utility company's
operations:
(1) Technical, financial, and managerial capacity.
(2) Physical condition and capacity of the utility company's
plant.
(3) Compliance with Indiana or federal law or the commission's
orders.
(4) Provision of service to customers.
(b) The commission may conduct a review under this section upon
its own motion, a request of the office of the utility consumer
counselor, or upon the filing of a complaint by a customer of the
utility company. The commission's order for review must state facts
to 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 this
chapter if the commission finds either of the following:
(1) The utility company has continued violations of:
(A) law regulating the utility company after the commission
has ordered compliance; or
(B) commission orders.
(2) The commission finds after a review conducted under
section 3 of this chapter that the utility company has severe
deficiencies 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 of
receivers
Sec. 5. (a) As used in this section, "subject utility company" refers
to a utility company that is the subject of a finding by the
commission under section 4 of this chapter.
(b) If the commission makes a finding under section 4 of this
chapter, the commission may, after notice and hearing, make
appropriate orders to do any of the following:
(1) Provide for the acquisition of the subject utility company by
another utility company, a municipally owned utility, or by
another person that has the ability to operate the subject utility
company:
(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 the
subject 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 commission
shall 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 utility
company's service territory.
(d) An order under subsection (b)(1) must provide:
(1) that the person acquiring the subject utility company must
pay the fair market value of the subject utility company at the
time of acquisition; and
(2) the specific accounting methods and appraisal procedures
and terms by which the fair market value of the subject utility
company is to be determined.
(e) An order under subsection (b)(1) may provide cost recovery
mechanisms for costs associated with improvements to the acquired
system that are immediate and necessary to remedy deficiencies,
including any of the following:
(1) A mechanism for expediting any adjustments to the rate
base and rates of the person acquiring the subject utility
company.
(2) Surcharges on customers of the acquired utility company
system to pay for extraordinary costs.
(3) A plan for deferring certain improvement costs and
recovering costs in phases.
(4) A plan for equalizing rates of the subject utility company
with the rates of the person acquiring the subject utility
company, if necessary.
(5) Other incentives to the person acquiring the subject utility
company, including adjustments to the allowed rate of return.
(f) If the commission makes an order under subsection (b)(2), the
attorney general shall file an action in a court with jurisdiction on
behalf of the commission for the appointment of a receiver under
IC 32-30-5. The receiver appointed by the court:
(1) has the same rights and duties under Indiana law as a utility
company providing water or sewer service; and
(2) shall continue to operate the subject utility company until
the court finds that the subject utility company:
(A) has the ability to comply and will comply with Indiana
law and the commission's orders relating to the operation of
the utility company; and
(B) has the ability to operate without any of the deficiencies
found 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 require
a utility company that provides water or sewer service to sell
property used in the provision of such service to the municipality or
governmental unit under IC 8-1-2-92, IC 8-1-2-93, or otherwise,
unless the procedures and requirements of this chapter have been
complied with and satisfied.
As added by P.L.145-1999, SEC.7.