HEA 1319 Summary

• Creates Chapter 30.3 under Indiana Code 8-1 to establish a framework for acquisition of distressed water and wastewater utilities, effective July 1, 2015.

• Allows utility companies to petition the Indiana Utility Regulatory Commission to include "cost differential" (acquisition costs above original property value minus depreciation) in their rate base if nine specific conditions are met.

• Requires distressed utilities to have served no more than 3,000 customers or been nonviable, failed to maintain adequate service, and the acquisition must be at arm's length between non-affiliated companies.

• Mandates the acquiring utility company provide notice to affected customers, the office of the utility consumer counselor, and submit a plan for service improvements; rate increases cannot exceed 1% of the acquiring company's base annual revenue.

• Requires the commission to submit annual reports by October 1 to the interim study committee on energy, utilities, and telecommunications concerning acquisitions under this chapter.

• Authorizes the Department of Natural Resources to cooperate with the U.S. Geological Survey to establish a volunteer water resource monitoring program, with data available to the commission for water availability assessments.