*HB1459.1*
February 11, 2025
HOUSE BILL No. 1459
_____
DIGEST OF HB 1459 (Updated February 11, 2025 2:30 pm - DI 101)
Citations Affected: IC 8-1.
Synopsis: Water and wastewater utility asset management. Provides
that a water or wastewater utility (utility) that is not under the
jurisdiction of the Indiana utility regulatory commission (IURC) for the
approval of rates and charges shall submit a report on the utility's asset
management program (program) to the IURC according to a schedule
prescribed by the IURC. Requires the IURC to adopt before September
1, 2025, a general administrative order (GAO) setting forth the: (1)
information required to be included in a utility's report; (2) procedures
for submission of the report; and (3) reporting schedule for submitting
a report. Provides that the IURC shall verify on a quadrennial basis: (1)
the sufficiency of each utility's program; and (2) the program's
compliance with the IURC's GAO. Provides that if the IURC
determines that specified deficiencies exist with respect to a utility's
program, the IURC: (1) shall notify the utility of the deficiency and
provide the utility a time frame in which the utility must correct the
deficiency; and (2) may require the utility to undergo an informal rate
review. Provides that if a utility receives two consecutive notices of a
deficiency from the IURC: (1) the IURC shall assert jurisdiction over
the rates and charges of the utility; and (2) the utility must undergo a
base rate case. Provides that the utility shall remain subject to the
jurisdiction of the IURC for a minimum of five years after the IURC's
order in the required rate case. Provides that if a utility receives three
consecutive notices of a deficiency over the course of three consecutive
verifications, the IURC may initiate a receivership proceeding with
respect to the utility. Authorizes the IURC to enter into an agreement
with: (1) the department of environmental management; and (2) the
Indiana finance authority; to carry out these requirements.
Effective: July 1, 2025.
Pressel
January 21, 2025, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
February 11, 2025, amended, reported — Do Pass.
HB 1459—LS 7314/DI 119 February 11, 2025
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1459
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 8-1-2-128 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2025]: Sec. 128. (a) This section applies to a water or wastewater
4 utility regardless of whether the water or wastewater utility has
5 applied for or received a loan or other financial assistance from the
6 Indiana finance authority under IC 5-1.2-10.
7 (b) The following definitions apply throughout this section:
8 (1) "Authority" refers to the Indiana finance authority
9 established by IC 5-1.2-3-1.
10 (2) "Commission" refers to the Indiana utility regulatory
11 commission created by IC 8-1-1-2.
12 (3) "Water or wastewater utility" means:
13 (A) a public utility (as defined in section 1(a) of this
14 chapter);
15 (B) a municipally owned utility (as defined in section 1(h)
16 of this chapter);
17 (C) a not-for-profit utility (as defined in section 125(a) of
HB 1459—LS 7314/DI 119 2
1 this chapter);
2 (D) a cooperatively owned corporation;
3 (E) a conservancy district established under IC 14-33; or
4 (F) a regional water district established under IC 13-26;
5 that provides water or wastewater service to the public in
6 Indiana for a fee and that is not under the jurisdiction of the
7 commission for approval of rates and charges.
8 (c) A water or wastewater utility shall submit a report to the
9 commission detailing the water or wastewater utility's asset
10 management program, as defined in the guidelines of the authority
11 under IC 5-1.2-10. The report required under this subsection shall
12 be made in compliance with, and according to a schedule set forth
13 in:
14 (1) the commission's general administrative order under
15 subsection (h); and
16 (2) any other general administrative orders of the commission
17 that the commission determines to be relevant.
18 (d) The commission shall verify, on a quadrennial basis, that the
19 asset management program of each water or wastewater utility is
20 sufficient and complies with the commission's general
21 administrative order under subsection (h). If the commission
22 determines that a water or wastewater utility's asset management
23 program:
24 (1) does not comply with the commission's general
25 administrative order under subsection (h); or
26 (2) is otherwise insufficient to demonstrate that the water or
27 wastewater utility has the technical, managerial, legal, and
28 financial capability to operate and maintain the water or
29 wastewater utility's water or wastewater system;
30 the commission shall notify the water or wastewater utility of the
31 deficiency and provide a time frame in which the water or
32 wastewater utility must correct the deficiency. The commission
33 may require the water or wastewater utility to undergo an
34 informal rate review in the manner set forth in IC 8-1-1.9-5(e)(1).
35 (e) If a water or wastewater utility receives two (2) consecutive
36 notices of a deficiency under subsection (d) over the course of two
37 (2) consecutive verifications under subsection (d):
38 (1) the commission shall assert jurisdiction over the rates and
39 charges of the water or wastewater utility; and
40 (2) the water or wastewater utility must undergo a base rate
41 case in the manner set forth in IC 8-1-1.9-5(e)(2).
42 The water or wastewater utility shall remain subject to the
HB 1459—LS 7314/DI 119 3
1 jurisdiction of the commission for a minimum of five (5) years after
2 the commission's order in the rate case required by this subsection.
3 If, after the five (5) year period prescribed by this subsection, the
4 water or wastewater utility submits a report to the commission
5 under subsection (c), and the commission determines that the
6 report indicates that the water or wastewater utility's asset
7 management program is sufficient, the water or wastewater utility
8 may provide to the commission a notice withdrawing the utility
9 from the commission's jurisdiction.
10 (f) If a water or wastewater utility receives three (3) consecutive
11 notices of a deficiency under subsection (d) over the course of three
12 (3) consecutive verifications under subsection (d), the commission
13 may initiate a receivership proceeding with respect to the water or
14 wastewater utility.
15 (g) The commission may enter into an agreement with:
16 (1) the department of environmental management; and
17 (2) the authority;
18 to carry out the requirements set forth in this section.
19 (h) Before September 1, 2025, the commission shall issue a
20 general administrative order setting forth:
21 (1) the information required to be included in a report under
22 subsection (c);
23 (2) the procedures for submitting a report under subsection
24 (c);
25 (3) the reporting schedule for submitting a report under
26 subsection (c); and
27 (4) any other information the commission considers relevant
28 under this section.
HB 1459—LS 7314/DI 119 4
COMMITTEE REPORT
Mr. Speaker: Your Committee on Utilities, Energy and
Telecommunications, to which was referred House Bill 1459, has had
the same under consideration and begs leave to report the same back
to the House with the recommendation that said bill be amended as
follows:
Page 1, between lines 9 and 10, begin a new line block indented and
insert:
"(2) "Commission" refers to the Indiana utility regulatory
commission created by IC 8-1-1-2.".
Page 1, line 10, delete "(2)" and insert "(3)".
Page 2, line 6, delete "On or before December 31 of each year, a"
and insert "A".
Page 2, line 7, delete "authority" and insert "commission".
Page 2, line 9, after "IC 5-1.2-10." insert "The report required
under this subsection shall be made in compliance with, and
according to a schedule set forth in:
(1) the commission's general administrative order under
subsection (h); and
(2) any other general administrative orders of the commission
that the commission determines to be relevant.".
Page 2, line 10, delete "authority shall review each water or
wastewater utility's" and insert "commission shall verify, on a
quadrennial basis, that the asset management program of each
water or wastewater utility is sufficient and complies with the
commission's general administrative order under subsection (h).".
Page 2, delete lines 11 through 12.
Page 2, line 13, delete "authority's guidelines. If the authority" and
insert "If the commission".
Page 2, line 15, delete "authority's guidelines; or" and insert
"commission's general administrative order under subsection (h);
or".
Page 2, line 20, delete "authority may refer the water or wastewater
utility to the" and insert "commission shall notify the water or
wastewater utility of the deficiency and provide a time frame in
which the water or wastewater utility must correct the deficiency.
The commission may require the water or wastewater utility to
undergo an informal rate review in the manner set forth in
IC 8-1-1.9-5(e)(1).
(e) If a water or wastewater utility receives two (2) consecutive
notices of a deficiency under subsection (d) over the course of two
HB 1459—LS 7314/DI 119 5
(2) consecutive verifications under subsection (d):
(1) the commission shall assert jurisdiction over the rates and
charges of the water or wastewater utility; and
(2) the water or wastewater utility must undergo a base rate
case in the manner set forth in IC 8-1-1.9-5(e)(2).
The water or wastewater utility shall remain subject to the
jurisdiction of the commission for a minimum of five (5) years after
the commission's order in the rate case required by this subsection.
If, after the five (5) year period prescribed by this subsection, the
water or wastewater utility submits a report to the commission
under subsection (c), and the commission determines that the
report indicates that the water or wastewater utility's asset
management program is sufficient, the water or wastewater utility
may provide to the commission a notice withdrawing the utility
from the commission's jurisdiction.
(f) If a water or wastewater utility receives three (3) consecutive
notices of a deficiency under subsection (d) over the course of three
(3) consecutive verifications under subsection (d), the commission
may initiate a receivership proceeding with respect to the water or
wastewater utility.
(g) The commission may enter into an agreement with:
(1) the department of environmental management; and
(2) the authority;
to carry out the requirements set forth in this section.
(h) Before September 1, 2025, the commission shall issue a
general administrative order setting forth:
(1) the information required to be included in a report under
subsection (c);
(2) the procedures for submitting a report under subsection
(c);
(3) the reporting schedule for submitting a report under
subsection (c); and
(4) any other information the commission considers relevant
under this section.".
Page 2, delete line 21.
and when so amended that said bill do pass.
(Reference is to HB 1459 as introduced.)
SOLIDAY
Committee Vote: yeas 13, nays 0.
HB 1459—LS 7314/DI 119