Introduced Version
SENATE BILL No. 288
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DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-1-2-46.2.
Synopsis: Extension of water service to schools. Allows a water or
wastewater utility to extend service, without a deposit or other adequate
assurance of performance from the customer, a distance of not more
than three miles to a: (1) public school, including a charter school; or
(2) nonpublic school that employs one or more employees; that is
connected to a well or septic system on July 1, 2024, for the purpose of
enabling the public school or nonpublic school to disconnect from the
well or septic system.
Effective: July 1, 2024.
Niemeyer
January 16, 2024, read first time and referred to Committee on Utilities.
2024 IN 288—LS 6342/DI 119 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
SENATE BILL No. 288
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 8-1-2-46.2, AS AMENDED BY P.L.189-2021,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 46.2. (a) The following definitions apply
4 throughout this section:
5 (1) "Developed but underserved area" means an area in which the
6 prospective service would be provided predominantly to existing
7 and occupied structures:
8 (A) that receive water from private wells; or
9 (B) from which wastewater is disposed of through onsite
10 private systems such as septic tanks.
11 (2) "Water or wastewater utility" means a public utility, other than
12 a not-for-profit utility, as defined in section 125(a) of this chapter,
13 that provides water or wastewater service to the public.
14 (b) Notwithstanding any law or rule governing extension of service,
15 a water or wastewater utility may, on a nondiscriminatory basis, extend
16 service:
17 (1) for economic development purposes;
2024 IN 288—LS 6342/DI 119 2
1 (2) to rural areas; or
2 (3) to developed but underserved areas;
3 without a deposit or other adequate assurance of performance from the
4 customer, to the extent that the extension of service results in a positive
5 contribution to the utility's overall cost of service over a twenty (20)
6 year period. For the purposes of this subsection, a water or wastewater
7 utility's extension of service to a developed but underserved area will
8 be considered as resulting in a positive contribution to the utility's
9 overall cost of service over a twenty (20) year period to the extent that
10 rates to be paid by fifty percent (50%) or more of the customers who
11 could be served by the extension of service would enable the utility to
12 fully recover the weighted cost of debt and depreciation expense
13 attributable to the cost of the main extension for the extension of
14 service.
15 (c) If a water or wastewater utility determines that an extension of
16 service described in subsection (b) will not result in a positive
17 contribution to the utility's overall cost of service over a twenty (20)
18 year period, the water or wastewater utility, in extending service, may
19 require a deposit or other adequate assurance of performance from:
20 (1) the developer of the project;
21 (2) a local, regional, or state economic development organization;
22 or
23 (3) the customers to be served by the extension of service.
24 (d) Subsection (e) applies if:
25 (1) a county executive, a municipal legislative body, or, in Marion
26 County, the county fiscal body, establishes an infrastructure
27 development zone under IC 6-1.1-12.5-4; and
28 (2) the county executive, municipal legislative body, or county
29 fiscal body requests a public utility to extend water or wastewater
30 utility service to the geographic territory established as the
31 infrastructure development zone.
32 (e) A water or wastewater utility that receives a request described
33 in subsection (d)(2) may file a petition with the commission seeking
34 approval of the requested extension of service. If the commission
35 approves the petition, in future general rate cases, the commission shall
36 approve rate schedules that include a surcharge payable only by
37 customers located in the geographic area within the jurisdiction of the
38 governmental entity described in subsection (d), or, if requested by the
39 governmental entity, only within the geographic area established as an
40 infrastructure development zone. The surcharge shall recover
41 depreciation expense, weighted cost of capital, and federal and state
42 income tax applicable to the extension of water or wastewater utility
2024 IN 288—LS 6342/DI 119 3
1 service.
2 (f) Notwithstanding any law or rule governing extension of
3 service, a water or wastewater utility may, on a nondiscriminatory
4 basis, and without a deposit or other adequate assurance of
5 performance from the customer, extend service a distance of not
6 more than three (3) miles to a:
7 (1) public school (as defined in IC 20-18-2-15), including a
8 charter school (as defined in IC 20-24-1-4); or
9 (2) nonpublic school (as defined in IC 20-18-2-12) that
10 employs one (1) or more employees;
11 that is connected to a well or septic system on July 1, 2024, for the
12 purpose of enabling the public school or nonpublic school to
13 disconnect from the well or septic system.
2024 IN 288—LS 6342/DI 119