Bill Text: IN HB1254 | 2011 | Regular Session | Introduced
Bill Title: Notification of utility rate increases.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-01-12 - First reading: referred to Committee on Utilities and Energy [HB1254 Detail]
Download: Indiana-2011-HB1254-Introduced.html
Citations Affected: IC 8-1.
Synopsis: Notification of utility rate increases. Provides that not later
than January 1, 2012, the utility regulatory commission (IURC) shall
develop a communications system to enable the following: (1) A
customer of a gas, electric, water, or sewer utility to request to receive
notification from the IURC whenever the IURC receives a petition
from the utility for an increase in the utility's retail rates and charges.
(2) The IURC to generate and send, transmit, or otherwise
communicate to each requesting customer notices of the filing of the
petition and of the IURC's issuance of a final order in the case.
Specifies certain information that each required notice must include,
including instructions on how the customer may opt out of receiving
further communications concerning the case. Provides that the required
communications system may include any of the following means of
communication: (1) Electronic means. (2) Telephonic means. (3) Any
other technologically and economically feasible means, as determined
by the commission in considering the technological, staffing, and
budgetary resources available to the commission. Allows the IURC to
adopt rules, including emergency rules, to implement these
requirements. Makes conforming amendments.
Effective: Upon passage.
January 12, 2011, read first time and referred to Committee on Utilities and Energy.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
(b) Whenever the utility regulatory commission shall order a hearing in any proceeding instituted by or against any public utility, notice of the hearing shall be given by one (1) publication appearing not less than ten (10) days prior to the date fixed for the hearing in two (2) newspapers of general circulation published in one (1) county wherein reside patrons or customers of the public utility who might be affected by an order made by the commission pursuant to the hearing. If two (2) newspapers of general circulation are not published in the county, then one (1) publication appearing not less than ten (10) days prior to the date fixed for the hearing in one (1) newspaper of general circulation published in the county shall be sufficient. If no newspaper of general
circulation is published in the county, then the commission shall cause
notice of the hearing to be given by one (1) publication appearing not
less than ten (10) days prior to the date fixed for the hearing in two (2)
newspapers of general circulation published in a county adjoining the
county wherein reside patrons or customers of the public utility who
might be affected by the order.
(c) Whenever the department of state revenue orders a hearing in
any proceeding instituted by or against a motor vehicle carrier, notice
of such hearing shall be given by one (1) publication appearing not less
than ten (10) days prior to the date fixed for such hearing in two (2)
newspapers of general circulation published in the county where such
motor vehicle carrier has its principal office or place of business. If two
(2) newspapers of general circulation are not published in such county,
then one (1) publication appearing not less than ten (10) days prior to
the date fixed for such hearing in one (1) newspaper of general
circulation published in such county shall be sufficient. If no
newspaper of general circulation is published in the county, the
department of state revenue shall cause notice of such hearing to be
given by one (1) publication appearing not less than ten (10) days prior
to the date fixed for such hearing in two (2) newspapers of general
circulation published in a county adjoining the county where such
motor vehicle carrier has its principal office or place of business. If the
motor vehicle carrier has no office or place of business in Indiana, then
such notice shall be given by one (1) publication appearing not less
than ten (10) days prior to the date fixed for the hearing in two (2)
newspapers of general circulation published in Marion County.
(d) In addition to the published publishing notice of a hearing as
prescribed in subsection (b), the commission shall do the following:
(1) Mail notice of the hearing and notice of the filing of
applications or proceedings to persons, firms, limited liability
companies, or corporations having competitive interests involved
and to the representatives of any city or town affected by the
hearing, application, or proceeding. Failure to mail the notices
under this subdivision shall not be deemed to be jurisdictional,
but may be ground for rehearing.
(2) In a case involving a petition by a utility (as defined in
IC 8-1-1.6-5) for the commission's approval of an increase in
the utility's retail rates and charges, provide any notices
required by IC 8-1-1.6.
Chapter 1.6. Notification to Customers of Utility Rate Increases
Sec. 1. As used in this chapter, "commission" refers to the Indiana utility regulatory commission created by IC 8-1-1-2.
Sec. 2. As used in this chapter, "communications system" means a system developed by the commission under section 6 of this chapter that allows the commission to communicate to customers, and customers to access or request information from the commission, with respect to a rate case to which this chapter applies, through one (1) or a combination of any of the following means:
(1) An electronic means, including electronic mail or an interactive feature on the commission's Internet web site.
(2) Telephonic means, including:
(A) the transmission of voice communications or data; and
(B) communications made through automated dialing or recorded message devices.
(3) Any other technologically and economically feasible means, as determined by the commission in considering the technological, staffing, and budgetary resources available to the commission.
Sec. 3. As used in this chapter, "customer" means any:
(1) person;
(2) firm;
(3) corporation;
(4) municipality;
(5) government agency; or
(6) any other entity;
that has agreed, orally or otherwise, to pay for retail utility service received from a utility.
Sec. 4. For purposes of this chapter, "increase in a utility's retail rates and charges" does not include:
(1) changes in the utility's retail rates and charges related solely to the cost of fuel or to the cost of purchased gas or purchased electricity; or
(2) adjustments to the utility's retail rates and charges made in accordance with tracking provisions approved by the commission.
Sec. 5. As used in this chapter, "utility" means a utility that:
(1) is a public utility, a municipally owned utility, or a cooperatively owned utility;
(2) provides retail:
(A) gas;
(B) electric;
(C) water; or
(D) sewer;
service to the public; and
(3) is under the jurisdiction of the commission for the approval of rates and charges.
Sec. 6. (a) Not later than January 1, 2012, the commission shall develop a communications system to enable the following:
(1) A customer of a utility to request to receive notification from the commission whenever the commission receives a petition from the utility for approval of an increase in the utility's retail rates and charges.
(2) The commission to generate and send, transmit, or otherwise communicate to each customer that requests to receive notification under subdivision (1) the following notices:
(A) A notice that informs the customer that the utility has filed a petition with the commission for approval of an increase in the utility's retail rates and charges. The notice required by this clause must include the following:
(i) The date the petition was filed with the commission and the cause number or docket number assigned to the case by the commission.
(ii) At the discretion of the commission, a summary of any information contained in the utility's petition that may be helpful to customers in understanding the utility's request.
(iii) Instructions on how the customer may access additional information about the case, including information that is available on the commission's Internet web site.
(iv) Instructions on how the customer may unsubscribe from, or otherwise opt out of, further communications concerning the case.
(v) Instructions on how the customer may communicate the customer's opinions or objections with respect to the utility's request, or otherwise participate in the case's proceedings.
(vi) An address, toll free telephone number, and electronic mail address for the consumer affairs division of the commission, or for another appropriate division of the commission, that the customer may contact with
questions about the case.
(vii) An address, toll free telephone number, and
electronic mail address for the office of utility consumer
counselor that the customer may contact with questions
about the case.
(viii) Any other information concerning the case, or the
customer's rights with respect to the case, that the
commission determines to be appropriate and in the
public interest to include in the notice required by this
clause.
The notice required by this clause shall be generated and
sent, transmitted, or otherwise communicated by the
commission not later than ten (10) business days after the
date the commission formally assigns the case to the
presiding officer for the case. If a customer's request under
subdivision (1) is received by the commission after the
presiding officer is assigned in the case, the notice required
by this clause shall be generated and sent, transmitted, or
otherwise communicated by the commission not later than
five (5) business days after the commission receives the
customer's request under subdivision (1).
(B) When the commission issues a final order in the case,
or otherwise renders a final decision in the case, a notice
that informs the customer that the commission has made
a final determination concerning the utility's request for
approval of an increase in the utility's retail rates and
charges. The notice required by this clause must include
the following:
(i) A statement that summarizes the commission's
decision in the case.
(ii) A statement describing the impact of the decision on
customers' utility bills, if such impact is determinable at
the time the decision is issued. If the impact is not
determinable, or not fully known at the time the decision
is issued, a statement setting forth the time by which the
utility is expected to file revised tariffs with the
commission.
(iii) Instructions on how the customer may access the full
text of the commission's order, including instructions for
accessing the order through the commission's Internet
web site, if applicable, along with a statement that the
order is available for public inspection and copying at
the offices of the commission, as required by IC 5-14-3.
(iv) An address, toll free telephone number, and
electronic mail address for the consumer affairs division
of the commission, or for another appropriate division of
the commission, that the customer may contact with
questions about the case.
(v) An address, toll free telephone number, and
electronic mail address for the office of utility consumer
counselor that the customer may contact with questions
about the case.
(vi) Any other information concerning the case, or the
customer's rights with respect to the case, that the
commission determines to be appropriate and in the
public interest to include in the notice required by this
clause.
The notice required by this clause shall be generated and
sent, transmitted, or otherwise communicated by the
commission not later than three (3) business days after the
date of the commission's final order. However, the notice
required by this clause shall not be sent, transmitted, or
otherwise communicated to any customer who, under
clause (A)(iv), at any time before the date the notice
required by this clause is generated, has unsubscribed
from, or otherwise opted out of, receiving further
communications concerning the case.
(b) In sending, transmitting, or otherwise communicating the
notices described in this section, the commission shall use the
contact information provided by the customer in the customer's
request under subsection (a)(1) for receipt of the notices described
in this section. A failure to provide any notice described in this
section to a requesting customer (or a failure to provide the notice
within the time specified by this section), or an error in any notice
provided under this section to a requesting customer, does not
invalidate any order issued by the commission in the case,
regardless of whether the failure or error is the result of:
(1) an act or omission by commission staff or by any outside
consultant employed by the commission in connection with the
communications system developed under this chapter; or
(2) an operational interruption to, or failure in, the
communications system developed under this chapter,
including:
(A) an electrical failure;
(B) computer hardware or software failures;
(C) regularly scheduled maintenance of, or updates to, computer systems, the commission's Internet web site, or any other equipment or technologies used as part of the communications system developed under this chapter;
(D) repairs to computer systems, the commission's Internet web site, or any other equipment or technologies used as part of the communications system developed under this chapter; or
(E) other similar disruptions or malfunctions.
Sec. 7. The commission may adopt rules under IC 4-22-2, including emergency rules under IC 4-22-2-37.1, to implement this chapter. An emergency rule adopted by the commission under IC 4-22-2-37.1 expires on the date the rule is adopted by the commission under IC 4-22-2-24 through IC 4-22-2-36.
(b) An order affecting rates or service may be entered by the commission without a formal public hearing, if:
(1) the utility is a not-for-profit water utility or a municipal utility; and
(2) the utility has obtained written consent to obtain an order affecting its rates from the commission without a formal hearing from any agency of the federal government with which the utility has outstanding evidence of indebtedness to the federal government.
The commission may, however, on its own motion require a formal public hearing, and shall, upon a motion filed by the utility consumer counselor, by any public or municipal corporation, or by ten (10) individuals, firms, corporations, limited liability companies, or associations, or ten (10) complainants of all or any of these classes, hold a formal public hearing with respect to any such petition or
complaint.
(b) (c) In any general rate proceeding under subsection (a) which
requires a public hearing and in which an increase in revenues is
sought which exceeds the sum of two million five hundred thousand
dollars ($2,500,000), the commission shall conduct at least one (1)
public hearing in the largest municipality located within such utility's
service area.
(1) serves less than five thousand (5,000) customers;
(2) primarily provides retail service to customers; and
(3) does not serve extensively another utility.
(b) The commission may require a formal public hearing on any petition or complaint filed under this section concerning a rate change request by a utility upon its own motion or upon motion of any of the following:
(1) The utility consumer counselor.
(2) A public or municipal corporation.
(3) Ten (10) individuals, firms, limited liability companies, corporations, or associations.
(4) Ten (10) complainants of any class described in this subsection.
(c) A not-for-profit water utility or a not-for-profit sewer utility must include in its petition a statement as to whether it has an outstanding indebtedness to the federal government. When an indebtedness is shown to exist, the commission shall require a formal hearing, unless the utility also has included in its filing written consent from the agency of the federal government with which the utility has outstanding indebtedness for the utility to obtain an order affecting its rates from the commission without a formal hearing.
(d) Notwithstanding any other provision of this chapter, the commission may:
(1) on its own motion; or
(2) at the request of:
(A) the utility consumer counselor;
(B) a water or sewer utility described in subsection (a);
(C) ten (10) individuals, firms, limited liability companies, corporations, or associations; or
(D) ten (10) complainants of any class described in this subsection;
adopt a rule under IC 4-22-2, or issue an order in a specific proceeding, providing for the development, investigation, testing, and use of regulatory procedures or generic standards with respect to water or sewer utilities described in subsection (a) or their services.
(e) The commission may adopt a rule or enter an order under subsection (d) only if it finds, after notice and hearing, that the proposed regulatory procedures or standards are in the public interest and promote at least one (1) of the following:
(1) Utility cost minimalization to the extent that a utility's quality of service or facilities are not diminished.
(2) A more accurate evaluation by the commission of a utility's physical or financial conditions or needs.
(3) A less costly regulatory procedure for a utility, its consumers, or the commission.
(4) Increased utility management efficiency that is beneficial to consumers.
(1) "Sewage disposal service" means any public utility service whereby liquid and solid waste, sewage, night soil, and industrial waste of any single territorial area is collected, treated, purified, and disposed of in a sanitary manner, and includes all sewage treatment plant or plants, main sewers, submain sewers, local and lateral sewers, intercepting sewers, outfall sewers, force mains, pumping stations, ejector stations, and all other equipment and appurtenances necessary or useful and convenient for the rendition of such service.
(2) "Sewage disposal company" means any natural person, firm, association, corporation, or partnership owning, leasing, or operating any sewage disposal service within the rural areas of this state, and all provisions of this chapter pertaining to a public utility shall apply with equal force and effect to a sewage disposal company, except insofar as said provisions may be inconsistent with specific provisions of this section.
(3) "Rural area" means territory lying within the state of Indiana and lying outside the corporate limits of a municipality.
(4) "Certificate of territorial authority" means a certificate of convenience and necessity issued by the commission pursuant to
this section, which said certificate shall be deemed an
indeterminate permit, unless expressly conditioned otherwise by
the commission when issued.
(5) "Notice of hearing" means notice of the time, place, and
purpose of a hearing, given by publication in at least one (1)
newspaper of general circulation in each of the counties in which
the particular sewage disposal company operates or proposes to
operate and given also in writing by United States registered mail:
(A) to each other sewage disposal company operating in
territory contiguous to the territory in which the particular
sewage disposal company operates or proposes to operate;
(B) to each municipality in territory contiguous and nearest to
the territory in which the particular sewage disposal company
operates or proposes to operate; and
(C) to such other persons or entities which the commission
may from time to time require by its rules and forms;
with all such notices shall be so mailed so as to be received by the
recipients at least ten (10) days prior to any hearing, or as
otherwise required by the commission.
(b) It is hereby declared to be in the public interest to provide for the
orderly development and rendering of sewage disposal service in rural
areas within the state of Indiana, and such public interest makes it
necessary and desirable that to the extent provided herein the holding
of a certificate of territorial authority should be required as a condition
precedent to the rendering of such service, and that such operation be
under the control, regulation, and supervision of the commission, and
such sewage disposal companies shall not be subject to regulation by
any municipality or county government or metropolitan regulatory
body, or any branch or subdivisions thereof or substitute therefor in the
form of special service districts, with the exception that said sewage
disposal company shall be subject to the comprehensive plan, zoning,
and subdivision requirements and regulations of the governmental units
having jurisdiction in the area. However, all functions, powers, and
duties of the state department of health and the water pollution control
board shall remain unaffected by this section.
(c) No sewage disposal company shall commence the rendering of
sewage disposal service in any rural area in the state of Indiana in
which it is not actually rendering sewage disposal service, without first
obtaining from the commission a certificate of territorial authority
authorizing such sewage disposal service, finding that public
convenience and necessity require such sewage disposal service within
such rural area by such sewage disposal company, and defining and
limiting specifically the rural area covered thereby. No sewage disposal
company hereby required to hold such a certificate shall render any
additional sewage disposal service within such rural area to any extent
greater than that authorized by such certificate or shall continue to
render sewage disposal service within such rural area if and after such
certificate of territorial authority has been revoked or transferred as in
this section provided, unless in such order of revocation or transfer the
commission shall require continued service until a new sewage
disposal company or municipality actually takes over such service. The
commission shall not have the power to require extension of such
service by any sewage disposal company into any additional territory
than that defined and limited in such a certificate without the consent
of such sewage disposal company.
(d) Whenever any sewage disposal company proposes to commence
the rendering of sewage disposal service in any rural area, it shall file
with the commission a verified application for a certificate of territorial
authority to cover the proposed service. The commission shall by rule
prescribe the form of the application and the information to be
contained therein, and such application by any such company shall
conform to such prescribed form. The commission shall set the matter
for hearing and notice of such hearing shall be given to the parties and
in the manner defined in this section. Any city may, and upon petition
to the commission shall, be made a party to any service proposal if its
territorial limits lie within five (5) miles of the area to be serviced
under this section.
(e) If, after notice of hearing and hearing on any application for a
certificate of territorial authority, the commission shall find from the
evidence introduced at such hearing, including any evidence which the
commission shall have caused to be introduced as a result of any
investigation which it may have made into the matter, that the applicant
has proved:
(1) lawful power and authority to apply for said certificate and to
operate said proposed service;
(2) financial ability to install, commence, and maintain said
proposed service; and
(3) public convenience and necessity require the rendering of the
proposed service in the proposed rural area by this particular
sewage disposal company; however, in the event the service is
proposed for a proposed rural real estate addition, division, or
development, or any part thereof, the reasonably expected sewage
disposal service requirements of the anticipated residents may be
found to constitute such public convenience and necessity;
then the certificate of territorial authority, defining and limiting the rural area to be covered thereby, shall be granted to the applicant, subject to such terms, restrictions, limitations, and conditions, including but not limited to a reasonable time in which to commence operations, as the commission shall determine to be necessary and desirable in the public interest.
(f) In cases of applications filed by two (2) or more sewage disposal companies seeking the issuance of a certificate of territorial authority for the same area or areas or any conflicting portions thereof, the commission may either consider such applications separately or by consolidation of two (2) or more or all within a single hearing at its discretion and shall have the power to issue its certificate after notice of hearing and hearing to any single qualified sewage disposal company for a particular rural area, or, in the event that the commission determines and finds that two (2) or more or all applicants seeking the same area or areas or any conflicting portions thereof are both or all qualified, then the commission shall have the power to determine which is the better or best qualified, or whether the same area or areas or any conflicting portions thereof shall be divided between or among such qualified applicants. However, in no event shall such area or areas or portions thereof be greater than that for which the particular applicant applied, unless such sewage disposal company shall consent and agree in writing to such modification of its application and the issuance of such modified certificate.
(g) After the issuance of such certificate, no other sewage disposal company shall render sewage disposal service in the area or areas so determined and so defined in any certificate of territorial authority issued by the commission, except after notice of hearing and hearing, and the determination and finding by the commission that public convenience and necessity require that sewage disposal service in said same area or areas be also rendered or offered by an additional or another company, and the issuance of a certificate duly granted by the commission as provided in this section.
(h) A sewage disposal company shall be required to furnish
commission's approval of an increase in the sewage disposal
company's retail rates and charges, the commission shall provide
any notices required by IC 8-1-1.6.
(i) To encourage the installation of sewage treatment plants, and
sewers, mains, stations, and all other equipment and appurtenances for
rendering sewage disposal service in rural areas in close proximity to
municipalities, and to ensure that a sewage disposal company which
had made such installation in such area can recover the cost of its
investment, in the event that the area or areas or any part thereof
included within the territory granted under a certificate of territorial
authority shall be annexed by any municipality at any time within
twelve (12) years from the date that such certificate was granted, a
sewage disposal company operating under such certificate shall
continue to operate under such certificate of territorial authority,
subject to the exclusive jurisdiction and regulation of the commission,
for the unexpired portion of such period of twelve (12) years from the
date of granting such certificate, or, in the case of a determinate permit
specifying a term shorter than twelve (12) years, then for the unexpired
portion of such lesser period as specified by such permit from the date
of granting such permit. However, the foregoing provisions in regard
to continued operation within the corporate limits of a municipality
after annexation shall not affect the right of the sewage disposal
company to cease its operation of providing sewage disposal service
within such annexed territory prior to the termination of said twelve
(12) year or lesser determinate permit period, upon thirty (30) days
written notice to the commission, the municipality, and all patrons.
(j) Upon approval by the commission given after notice of hearing
and hearing, but not otherwise, any certificate of territorial authority
may:
(1) be sold, assigned, leased, or transferred by the holder thereof
to any sewage disposal company to which a territorial certificate
might be lawfully issued; or
(2) be included in the property and rights encumbered under any
indenture of mortgage or deed of trust of such holder;
or any sewage treatment plant or plants, sewers, mains, stations, and
equipment and appurtenances for the rendering of sewage disposal
service, or any part thereof, may be sold, assigned, leased, or
transferred by the holder thereof to any municipality if these assets lie
within an area which shall have been annexed by such municipality or
lie within the given radius of miles from the corporate limits of such
municipality into which it is authorized to render such services, if such
municipality is prepared to render a comparable sewage disposal
service without loss of continuity of service, and if the terms of such
sale, assignment, lease, or transfer are reasonable. However, once the
commission has given its approval to such transaction and the
transaction itself is actually consummated, the commission shall have
no control over the sewage disposal service henceforth rendered by
such municipality as a municipally owned utility (as defined in this
chapter).
(k) Any certificate of territorial authority may, after notice of
hearing and hearing, be revoked by the commission, in whole or in
part, for the failure of the holder thereof to furnish reasonably adequate
sewage disposal service within the area or areas determined and
defined in such certificate of territorial authority, or for the failure of
the holder thereof to comply with any applicable order or rule
prescribed by the commission in the exercise of its powers under this
chapter, or for failure to comply with any term, condition, or limitation
of such certificate of territorial authority.
(l) After the commission revokes any certificate of territorial
authority under subsection (k) or after the county board of health
determines the existence of a serious health problem related to the
sewage disposal facility, the county commissioners of the county in
which the sewage disposal facility is located may acquire the facility,
subject to the approval of the acquisition by the county council, except
that the county commissioners may not acquire any facility already
acquired by any city or town. The county commissioners shall acquire
the sewage disposal facility by:
(1) gift, grant, purchase, or condemnation that is funded in the
same manner that cities and towns fund sewage treatment
acquisitions under IC 36-9; or
(2) a lease arrangement that is funded in the same manner that
cities and towns fund leases of sewage disposal facilities under
IC 36-9.
After acquisition, the county commissioners shall repair, operate, and
maintain the sewage disposal facility and charge user fees for these
services.
