Citations Affected: IC 8-1-2-61.5.
Synopsis: Alternative regulations for small utilities. Allows the
Indiana utility regulatory commission to adopt rules or issue orders that
establish regulatory procedures or standards governing a public or
municipally owned utility that: (1) serves less than 5,000 customers; (2)
primarily provides retail service to customers; and (3) does not serve
extensively another utility.
Effective: July 1, 2001.
January 8, 2001, read first time and referred to Committee on Commerce and Consumer
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities and transportation.
, AS AMENDED BY P.L.159-1999,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2001]: Sec. 61.5. (a) An order affecting rates of service may
be entered by the commission without a formal public hearing in the
case of any public or municipally owned utility that:
(1) serves less than five thousand (5,000) customers;
(2) primarily provides retail service to customers; and
(3) does not serve extensively another utility.
(b) The commission may require a formal public hearing on any petition or complaint filed under this section concerning a rate change request by a utility upon its own motion or upon motion of any of the following:
(1) The utility consumer counselor.
(2) A public or municipal corporation.
(3) Ten (10) individuals, firms, limited liability companies, corporations, or associations.
(4) Ten (10) complainants of any class described in this
(c) A not-for-profit water utility must include in its petition a statement as to whether it has an outstanding indebtedness to the federal government. When an indebtedness is shown to exist, the commission shall require a formal hearing, unless the utility also has included in its filing written consent from the agency of the federal government with which the utility has outstanding indebtedness for the utility to obtain an order affecting its rates from the commission without a formal hearing.
(d) Notwithstanding any other law, the commission may:
(1) on its own motion; or
(2) at the request of:
(A) the utility consumer counselor;
(B) a utility described in subsection (a);
(C) ten (10) individuals, firms, limited liability companies, corporations, or associations; or
(D) ten (10) complainants of any class described in this subsection;
adopt a rule under IC 4-22-2 , or issue an order in a specific proceeding, providing for the development, investigation, testing, and use of regulatory procedures or generic standards with respect to utilities described in subsection (a) or their services.
(e) The commission may adopt a rule or enter an order under subsection (d) only if it finds, after notice and hearing, that the proposed regulatory procedures or standards are in the public interest and promote at least one (1) of the following:
(1) Utility cost minimalization to the extent that a utility's quality of service or facilities are not diminished.
(2) A more accurate evaluation by the commission of a utility's physical or financial conditions or needs.
(3) A less costly regulatory procedure for a utility, its consumers, or the commission.
(4) Increased utility management efficiency that is beneficial to consumers.