Bill Text: IN HB1137 | 2013 | Regular Session | Enrolled
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-Enrolled.html
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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; or the
petition is dismissed under subsection (g); and
(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. If The commission fails to
shall approve or disapprove a petition within one hundred twenty (120)
days after the petition is filed in the form and manner prescribed by the
commission. the petition is dismissed, and the ordinance adopted under
section 8.1 of this chapter or under IC 36-9-23-26 takes effect.
However, the commission may extend the one hundred twenty
(120) day deadline for up to sixty (60) days for good cause if all
parties to the proceeding agree. A petition is automatically
disapproved if the petitioner has filed a petition under section 8.2 of
this chapter or under IC 36-9-23-26.1 with respect to the same rate
ordinance.
(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.
(1) Water utilities that are owned or operated by second class cities.
(2) Third class cities.
(3) Towns.
(b) In addition to section 9 of this chapter, a municipally owned utility to which this section applies may be removed from the jurisdiction of the commission for the approval of rates and charges and of the issuance of stocks, bonds, notes, or other evidence of indebtedness, if the municipal legislative body adopts an ordinance removing the utility from commission jurisdiction. The municipal legislative body shall, at least thirty (30) days before the final vote on the ordinance, mail written notice of the meeting to all ratepayers of the utility and to the commission. For a second class city the municipal legislative body must hold two (2) public meetings before the final vote on an ordinance removing the utility from commission jurisdiction may be adopted. An explanation of the removal process must be provided at each public meeting under this section. Each public meeting must be held in a different location.
(c) The ordinance described in subsection (b) takes effect sixty (60) days after adoption by the municipal legislative body.
(d) The question of removal from commission jurisdiction shall be submitted to the registered voters of the municipality if, within the sixty (60) day period described in subsection (c), the legislative body receives a petition:
(1) that is signed by at least the number of the registered voters of the municipality required under IC 3-8-6-3 to place a candidate on the ballot; and
(2) that requests the legislative body to submit the question of removal from commission jurisdiction to the registered voters of the municipality at the next election.
The municipal legislative body shall certify the public question in subsection (e) to the county election board of the county that contains the greatest percentage of population of the municipality under IC 3-10-9-3.
(e) If the legislative body receives a petition described in subsection (d) in the proper form, the legislative body shall submit the following public question to the registered voters of the municipality at the next election in the form prescribed by IC 3-10-9-4:
"Shall the municipally owned utility be taken out of the jurisdiction of the Indiana utility regulatory commission for the approval of rates and charges and of the issuance of stocks, bonds, notes, or other evidence of indebtedness?".
The legislative body shall mail written notice of the referendum to the commission at least ten (10) days before the date of the election.
(f) If a majority of those voting on the question described in subsection (e) favor taking the municipally owned utility out of the jurisdiction of the commission, the utility is removed from the jurisdiction of the commission for approval of rates and charges and of the issuance of stocks, bonds, notes, or other evidences of indebtedness.
(g) If the legislative body receives a petition in proper form under subsection (d), the ordinance does not take effect until after removal is approved by a majority of those voting. If a majority of those voting vote against removal, the utility remains under the jurisdiction of the commission and the ordinance does not take effect.
(h) In addition to the notice required by subsection (b), if the municipal legislative body adopts the ordinance, described in subsection (b), the municipal legislative body shall mail written notice of the withdrawal from commission jurisdiction to the commission within thirty (30) days after the ordinance becomes effective.
(i) Notwithstanding this section or section 9 of this chapter, the commission may require a municipally owned utility that generates electric power to provide information to the permanent forecasting group under IC 8-1-8.5-3.5.
(j) This section does not affect the obligations of a municipally owned utility under IC 8-1-2.3, IC 8-1-8.5, IC 8-1-22.5, or
IC 8-1.5-3-14.
(k) Notwithstanding subsection (a) and the procedure set forth
in section 9 of this chapter, if a city adopts an ordinance under this
section before January 1, 2013, to remove the city's municipally
owned electric utility from the jurisdiction of the commission for
the approval of rates and charges and of the issuance of stocks,
bonds, notes, or other evidence of indebtedness, the removal of the
city's municipally owned electric utility from the commission's
jurisdiction for the approval of rates and charges and of the
issuance of stocks, bonds, notes, or other evidence of indebtedness
is effective for all purposes and is legalized and validated.
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