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 this
chapter.
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 distribution
system 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 depreciation
expenses and pretax return associated with eligible distribution
system 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 revenues
produced through a DSIC exclusive of revenues from all other rates
and 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 system
improvements" means new used and useful water utility plant
projects that:
(1) do not increase revenues by connecting the distribution
system to new customers;
(2) are in service; and
(3) were not included in the public utility's rate base in its most
recent 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 revenues
necessary to:
(1) produce net operating income equal to the public utility's
weighted cost of capital multiplied by the net original cost of
eligible distribution system improvements; and
(2) pay state and federal income taxes applicable to such
income.
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 utility
providing water service may file with the commission rate schedules
establishing a DSIC that will allow the automatic adjustment of the
public utility's basic rates and charges to provide for recovery of
DSIC costs.
(b) The public utility shall serve the office of the utility consumer
counselor a copy of its filing at the time of its filing with the
commission.
(c) Publication of notice of the filing is not required.
(d) A public utility may not file a petition under this section in the
same calendar 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 8-1-31-9
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 examine
information of the public utility to confirm that the system
improvements are in accordance with section 5 of this chapter, to
confirm proper calculation of the proposed charge, and submit a
report to the commission not later than thirty (30) days after the
petition is filed.
(c) The commission shall hold the hearing and issue its order not
later than sixty (60) days after the petition is filed.
(d) If the commission finds that a DSIC petition complies with the
requirements of this chapter, the commission shall enter an order
approving 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 utility
may, but is not required to, file a petition for a change in its DSIC not
more often than one (1) time every twelve (12) months.
(b) Except as provided in section 15 of this chapter, a public
utility may not file a petition for a change in its DSIC in the same
calendar 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, the
commission 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 debt
and preferred stock.
(4) The public utility's cost of common equity.
(5) Other components that the commission considers
appropriate.
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 calculation
of the charge shall be the most recent determination by the
commission in a general rate proceeding of the public utility. If the
commission finds that the last such determination is no longer
representative of current conditions, the commission may make a
new determination of the common equity cost rate for use in
determining the charge, after notice and hearing. The most recent
prior 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 extent
it would produce total DSIC revenues exceeding five percent (5%)
of the public utility's base revenue level approved by the commission
in 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 reasonable
estimate 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 utility
shall reconcile the difference between DSIC revenues and DSIC
costs during that period and recover or refund the difference, as
appropriate, 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 new
basic rates and charges become effective for the public utility
following a commission order authorizing a general increase in rates
and charges that includes in the utility's rate base eligible distribution
system 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 and
a change in a DSIC is not a general increase in basic rates and
charges.
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 by
order other procedures not inconsistent with this chapter that the
commission finds reasonable or necessary to administer a DSIC.
As added by P.L.94-2000, SEC.1.