MADAM PRESIDENT:
The Senate Committee on Utilities and Technology, to which was referred House Bill No. 1126, has had
the same under consideration and begs leave to report the same back to the Senate with the
recommendation that said bill be AMENDED as follows:
under IC 8-1.5-2;
(2) provide a sinking fund for the liquidation of bonds or other
obligations, including leases;
(3) provide a debt service reserve for bonds or other obligations,
including leases, in an amount established by the municipality,
not to exceed the maximum annual debt service on the bonds or
obligations or the maximum annual lease rentals;
(4) provide adequate money for working capital;
(5) provide adequate money for making extensions and
replacements to the extent not provided for through depreciation
in subdivision (1); and
(6) provide money for the payment of any taxes that may be
assessed against the utility.
(d) It is the intent of this section that the rates and charges produce
an income sufficient to maintain the utility property in a sound physical
and financial condition to render adequate and efficient service. Rates
and charges too low to meet these requirements are unlawful.
(e) The board may recommend to the municipal legislative body
rates and charges sufficient to include a reasonable return on the utility
plant of the municipality.
(f) Rates and charges established under this section are subject to
the approval of:
(1) the municipal legislative body by ordinance; and
(2) the commission, in accordance with the procedures set forth
in IC 8-1-2.
The commission shall approve rates and charges that are sufficient, in
addition to the cash revenue requirements set forth in subsection (c), to
include a reasonable return on the utility plant of the municipality if the
legislative body so elects.
(g) Except for a municipally owned utility taxed under IC 6-1.1-8-3,
the commission shall approve rates and charges sufficient to
compensate the municipality for taxes that would be due the
municipality on the utility property were it privately owned. These rates
and charges in lieu of taxes may be transferred to the municipal general
fund, if the legislative body so elects.
(h) The commission shall grant a request that an increase in rates
and charges not be effective until after the occurrence of a future event
if the legislative body so requests.
(i) A municipality that acquires and operates a utility under
IC 8-1.5-2 by exercising the power of eminent domain may not impose
a special rate, charge, surcharge, or other fee, other than rates and
charges approved under this section or otherwise authorized by law, on
the customers of the utility in order to pay for the costs associated with
acquiring the utility through the exercise of the power of eminent
domain.
(j) As used in this subsection, "works" has the meaning set forth
in section 8.1(b) of this chapter. For purposes of determining
whether the percentage difference between the rates and charges
imposed on:
(1) users of a works for service to property located outside the
corporate boundaries of a municipality; and
(2) users of the same works for service to property located
within the corporate boundaries of the municipality;
are nondiscriminatory, reasonable, and just, the commission may
consider the benefit and expense to all users of the works of
extending the works outside the corporate boundaries of the
municipality, including the rates and charges that users outside the
corporate boundaries of the municipality would incur to establish
a separate works.".
and when so amended that said bill do pass .
Committee Vote: Yeas 8, Nays 0.