Indiana Code
Chapter 2. Utility Regulation
8-1-2-46.2. Water or Wastewater Utility Extension of Service for Economic Development, to Rural Area, or to Developed but Underserved Area Without Deposit From Customers

Sec. 46.2. (a) The following definitions apply throughout this section:
(1) "Developed but underserved area" means an area in which the prospective service would be provided predominantly to existing and occupied structures:
(A) that receive water from private wells; or
(B) from which wastewater is disposed of through onsite private systems such as septic tanks.
(2) "Water or wastewater utility" means a public utility, other than a not-for-profit utility, as defined in section 125(a) of this chapter, that provides water or wastewater service to the public.
(b) Notwithstanding any law or rule governing extension of service, a water or wastewater utility may, on a nondiscriminatory basis, extend service:
(1) for economic development purposes;
(2) to rural areas; or
(3) to developed but underserved areas;
without a deposit or other adequate assurance of performance from the customer, to the extent that the extension of service results in a positive contribution to the utility's overall cost of service over a twenty (20) year period. For the purposes of this subsection, a water or wastewater utility's extension of service to a developed but underserved area will be considered as resulting in a positive contribution to the utility's overall cost of service over a twenty (20) year period to the extent that rates to be paid by fifty percent (50%) or more of the customers who could be served by the extension of service would enable the utility to fully recover the weighted cost of debt and depreciation expense attributable to the cost of the main extension for the extension of service.
(c) If a water or wastewater utility determines that an extension of service described in subsection (b) will not result in a positive contribution to the utility's overall cost of service over a twenty (20) year period, the water or wastewater utility, in extending service, may require a deposit or other adequate assurance of performance from:
(1) the developer of the project;
(2) a local, regional, or state economic development organization; or
(3) the customers to be served by the extension of service.
(d) Subsection (e) applies if:
(1) a county executive, a municipal legislative body, or, in Marion County, the county fiscal body, establishes an infrastructure development zone under IC 6-1.1-12.5-4; and
(2) the county executive, municipal legislative body, or county fiscal body requests a public utility to extend water or wastewater utility service to the geographic territory established as the infrastructure development zone.
(e) A water or wastewater utility that receives a request described in subsection (d)(2) may file a petition with the commission seeking approval of the requested extension of service. If the commission approves the petition, in future general rate cases, the commission shall approve rate schedules that include a surcharge payable only by customers located in the geographic area within the jurisdiction of the governmental entity described in subsection (d), or, if requested by the governmental entity, only within the geographic area established as an infrastructure development zone. The surcharge shall recover depreciation expense, weighted cost of capital, and federal and state income tax applicable to the extension of water or wastewater utility service.
As added by P.L.91-2017, SEC.5. Amended by P.L.160-2020, SEC.3; P.L.189-2021, SEC.1.

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