SB0180: Allocation of wastewater utility costs.

Legislative Summary

Allocation of wastewater utility costs. Allows a utility company that: (1) provides both water and wastewater service; and (2) has acquired wastewater utility property; to request, in the context of a petition by the utility company to the Indiana utility regulatory commission (IURC) for preapproval of a plan for proposed service enhancement improvements to the utility company's wastewater utility property, authorization from the IURC to allocate a portion of the eligible costs of the utility company's wastewater utility property to the utility company's water customers. Provides that if the petition includes such a request for an allocation of costs, the utility company shall provide a copy of: (1) the petition; and (2) the utility company's case in chief; to each intervenor in the utility company's last general rate case. Provides that the IURC may approve the request if the IURC finds that: (1) because of reasonable and necessary improvements that are proposed for the wastewater utility property, the resulting rates charged to wastewater customers would reach levels necessitating the provision of financial assistance to those customers; (2) the total rates charged by the utility company for water service will not increase unreasonably as a result of the allocation; (3) the utility company has included information in its proposal regarding the availability of grants or low interest loans and whether the utility company considered using grants or low interest loans to help finance or reduce the cost of the service enhancement improvements; and (4) the utility company has developed an asset management program. Provides that an increase in the total rates charged for water service by the utility company as a result of the allocation is not unreasonable to the extent the allocation results in an increase in authorized total revenues of 2% or less. Provides that if the IURC approves a utility company's request for an allocation of costs, the utility company shall include a notice on or with water customer monthly bills specifying the amount of the service enhancement improvement adjustment rider approved by the commission that recovers necessary wastewater utility improvements.