Bill Text: IN HB1137 | 2013 | Regular Session | Engrossed
Bill Title: IURC review of extraterritorial water rates.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-05-13 - Public Law 163 [HB1137 Detail]
Download: Indiana-2013-HB1137-Engrossed.html
Citations Affected: IC 8-1.5.
Synopsis: IURC review of extraterritorial water rates. Requires that
petitions for review by the utility regulatory commission (IURC) of
extraterritorial water rates must be signed by each individual seeking
review or by an attorney representing the individuals. Provides that the
IURC may extend the deadline for approving or disapproving a petition
for up to 60 days for good cause upon agreement of all parties to the
petition. (Current law provides that a petition is dismissed if the IURC
fails to act by the deadline.)
Effective: July 1, 2013.
(SENATE SPONSOR _ MERRITT)
January 10, 2013, read first time and referred to Committee on Utilities and Energy.
January 17, 2013, amended, reported _ Do Pass.
January 22, 2013, read second time, ordered engrossed. Engrossed.
January 23, 2013, read third time, passed. Yeas 94, nays 0.
February 25, 2013, read first time and referred to Committee on Utilities.
April 1, 2013, amended, reported favorably _ Do Pass.
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A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
(b) As used in this section:
(1) "utility"; and
(2) "works";
have the meaning set forth for those terms in section 8.1 of this chapter.
(c) This subsection applies if a municipal legislative body adopts an ordinance under section 8.1 of this chapter or under IC 36-9-23-26 that is in effect on March 31, 2012, and that imposes rates and charges on users of the works for service to property located outside the corporate boundaries of the municipality that exceed by more than fifteen percent (15%), but not more than fifty percent (50%), the rates and charges imposed on users of the works for service to property located within the corporate boundaries of the municipality. Not later than September 30,
2012, the municipality may petition the commission to approve the
percentage difference between rates and charges established in the
ordinance for property within and property outside the corporate
boundaries. In the petition, the municipality shall set forth the
following:
(1) The date on which the ordinance took effect.
(2) The percentage difference between rates and charges imposed
on users of the works for service to property located outside the
corporate boundaries of the municipality and to property located
within the corporate boundaries of the municipality.
(3) Whether the works that is the subject of the ordinance is a
water utility works, a wastewater utility works, or both a water
and wastewater utility works.
If the commission determines that a petition filed under this subsection
satisfies the requirements of this subsection, the commission shall
approve the petition, including the percentage difference between rates
and charges described in subdivision (2). If the commission determines
that a petition filed under this subsection does not satisfy the
requirements of this subsection, the commission shall disapprove the
petition. However, if the percentage difference imposed in the
ordinance was the subject of an objecting petition that was filed under
section 8.2 of this chapter or under IC 36-9-23-26.1 and sustained on
final judgment or appeal, as applicable, by a court, the percentage
difference is considered approved without the filing of a petition under
this subsection.
(d) If a municipality that files, or that is exempt from filing, a
petition under subsection (c) adopts an ordinance under section 8.1 of
this chapter after March 31, 2012, that imposes rates and charges on
users of the works for service to property located outside the corporate
boundaries of the municipality that exceed the rates and charges
imposed on users of the works for service to property located within the
corporate boundaries of the municipality by more than the sum of the
percentage difference approved or considered approved by the
commission under subsection (c) plus fifteen percent (15%), either or
both of the following may petition the commission to review and
adjust, if necessary, the rates and charges imposed on users of the
works for service to property located outside the corporate boundaries
of the municipality:
(1) The municipality.
(2) The lesser of:
(A) ten percent (10%) of all; or
(B) twenty-five (25);
users of the works whose property is located outside the corporate boundaries of the municipality.
A petition filed under this subsection must be filed not more than fourteen (14) days after the date on which the ordinance referred to in this subsection is adopted. A petition may not be filed under this subsection if a petition has already been filed under section 8.2 of this chapter appealing the same rates and charges.
(e) If a municipal legislative body, other than a municipal legislative body described in subsection (c), adopts an ordinance under section 8.1 of this chapter after March 31, 2012, that imposes rates and charges on users of the works for service to property located outside the corporate boundaries of the municipality that exceed the rates and charges imposed on users of the works for service to property located within the corporate boundaries of the municipality by more than fifteen percent (15%), either or both of the following may petition the commission to review and adjust, if necessary, the rates and charges imposed on users of the works for service to property located outside the corporate boundaries of the municipality:
(1) The municipality.
(2) The lesser of:
(A) ten percent (10%) of all; or
(B) twenty-five (25);
users of the works whose property is located outside the corporate boundaries of the municipality.
A petition must be filed not more than fourteen (14) days after the date on which the ordinance is adopted. A petition may not be filed under this subsection if a petition has already been filed under section 8.2 of this chapter or under IC 36-9-23-26.1 appealing the same rates and charges.
(f) The filing of a petition with the commission under subsection (d) or (e) stays the ordinance adopted under section 8.1 of this chapter or under IC 36-9-23-26. The rates and charges in effect before the adoption of the ordinance remain in effect until:
(1) the commission approves or disapproves the petition;
(2) if applicable, the commission adjusts the rates and charges imposed by the ordinance on users of the works whose property is located outside the corporate boundaries of the municipality.
(g) The commission shall prescribe the form and manner in which a petition must be filed under subsection (d) or (e). A petition filed under subsection (d)(2) or (e)(2) must be signed by:
(1) each individual user seeking review by the commission; or
(2) one (1) or more attorneys licensed to practice law in Indiana who represent the individual users seeking review by the commission.
The burden of proof to demonstrate that the proposed rates and charges are nondiscriminatory, reasonable, and just is on the municipality, regardless of who petitions the commission.
(h) For purposes of determining whether the percentage difference between rates and charges imposed on users of the works for service to property located outside the corporate boundaries of the municipality and the rates and charges imposed on users of the works for service to property located within the corporate boundaries of the municipality is nondiscriminatory, reasonable, and just under section 8 of this chapter, the commission:
(1) may consider the benefit and expense to all users of the works of extending the works outside the corporate boundaries of the municipality; and
(2) may not consider any connection fees or capital surcharges imposed on users of the works for service to property that is located outside the corporate boundaries of the municipality that are specifically designated to pay for the costs associated with main extensions to the users of the works.
(i) If the commission determines that the percentage difference between the rates and charges imposed on users of the works for service to property located outside the corporate boundaries of the municipality and the rates and charges imposed on users of the works for service to property located within the corporate boundaries of the municipality is not nondiscriminatory, reasonable, and just under section 8 of this chapter, the commission may:
(1) establish nondiscriminatory, reasonable, and just rates and charges for users of the works for service to property located outside the corporate boundaries of the municipality; and
(2) order the municipal legislative body to adopt an ordinance imposing the nondiscriminatory, reasonable, and just rates and
charges.
However, with respect to rates and charges imposed in an ordinance
that was the subject of an objecting petition filed under section 8.2 of
this chapter or under IC 36-9-23-26.1 and sustained on final judgment
or appeal, as applicable, by a court, the commission may not establish
rates and charges such that the percentage difference between rates and
charges established by the commission is less than the percentage
difference between rates and charges imposed in the ordinance.
(j) This section does not:
(1) authorize the commission to review or revise rates and charges
imposed on users of the works for service to property located
within the corporate boundaries of the municipality; or
(2) otherwise return or subject a utility to the jurisdiction of the
commission for the approval of rates and charges.
(k) The commission may adopt rules under IC 4-22-2 to implement
this section.
(l) The commission may not impose a fee with respect to
proceedings under this section.
