Section 8-1-1.9-6 - Wastewater utility not under the jurisdiction of the commission; required proposals; approval; IURC annual report(a) This section applies to a wastewater utility that:(1) is not subject to the jurisdiction of the commission for the approval of rates and charges; and(2) receives wholesale wastewater service from another wastewater utility.(b) As used in this section, "wastewater utility" means a:(2) municipally owned utility (as defined in IC 8-1-2-1(h)) that serves fewer than eight thousand (8,000) customers;(3) not-for-profit utility (as defined in IC 8-1-2-125(a));(4) cooperatively owned corporation;(5) conservancy district established under IC 14-33; or(6) regional sewer district established under IC 13-26.(c) Before a wastewater utility may:(1) disconnect from the wholesale wastewater service provided by another wastewater utility; and(2) construct a new wastewater treatment plant to serve its customers; the wastewater utility must obtain the approval of the commission of its plan to disconnect from the other wastewater utility's wholesale wastewater service and construct a new wastewater treatment plant.
(d) A wastewater utility to which subsection (c) applies must submit to the commission as part of the wastewater utility's case in chief: (1) the current costs incurred by the wastewater utility for utility service with the other wastewater utility providing wholesale wastewater service;(2) the projected future costs to be incurred by the wastewater utility for utility service if the other wastewater utility were to continue providing wholesale wastewater service; and(3) the projected future costs to be incurred by the wastewater utility for utility service if the wastewater utility were to disconnect from the other wastewater utility providing wholesale wastewater service and construct a new wastewater treatment plant.(e) The commission may approve a wastewater utility's proposal under subsection (c) if the commission finds that: (1) the disconnection from the wholesale wastewater service and the construction of a new wastewater treatment plant is reasonable and in the public interest;(2) the total rates charged by the wastewater utility for wastewater service will not increase above the projected cost of continued service with the wholesale wastewater service provider as a result of the disconnection from the wholesale wastewater service and the new wastewater treatment plant construction;(3) the wastewater utility has developed an asset management program, as defined in guidelines adopted by the Indiana finance authority under IC 5-1.2; and(4) the wastewater utility has the legal, managerial, technical, and financial expertise to construct and manage a new wastewater treatment plant.(f) In the commission's annual report under IC 8-1-1-14, the commission shall include a description of any activity under this section.Amended by P.L. 9-2024,SEC. 279, eff. 7/1/2024.Added by P.L. 232-2023,SEC. 1, eff. 7/1/2023.