Earlier in 2020, the Indiana General Assembly adopted IC 8-1-2-101.5, which requires all municipalities to comply with the water and sewer main extension rules promulgated by the Indiana Utility Regulatory Commission (IURC).
The new statute applies to all main extension agreements entered into after June 30, 2020. All municipally owned sewer utilities are now covered by the IURC rules, even though municipal sewer utilities are not otherwise regulated by the IURC. The rules also apply to all municipal water utilities even if they have withdrawn from IURC jurisdiction.
What does this mean for municipalities? The core impact is that the extension rules govern how much the customer can be required to pay if they request a main extension and what opportunity must be given to the customer to recoup its investment as later customers tap onto the main.
The IURC put together a handout about the new legislation and about its main extension rules.
Another resource is the Indiana Administrative Code for the now applicable water main extension rules and sewer main extension rules.
Barnes & Thornburg LLP – Nicholas K. Kile, Lauren M. Box and Hillary J. Close
August 5, 2020