in-20261028-IR-170260173FRA: SMALL UTILITIES

TITLE 170 INDIANA UTILITY REGULATORY COMMISSION Final Rule LSA Document #26-173 DIGEST SMALL UTILITIES Amends 170 IAC 14-1-1 concerning definitions. Amends 170 IAC 14-1-2 concerning applications for rate change. Amends 170 IAC 14-1-3 concerning incomplete applications. Amends 170 IAC 14-1-4 concerning the review and report on an application for rate change, and requests to file written responses. Amends 170 IAC 14-1-5 concerning hearings on applications. Amends 170 IAC 14-1-6 concerning decisions on applications. Amends 170 IAC 14-1-7 concerning the applicability of ex parte rules. Effective 30 days after filing with the publisher. HISTORY Notice of First Public Comment Period: 20260617-IR-170260173FNA Regulatory Analysis submitted with Notice of First Public Comment Period: 20260617-IR-170260173RAA Date of Public Hearing: July 20, 2026 CITATIONS AFFECTED: 170 IAC 14 SUMMARY/RESPONSE TO COMMENTS The Indiana Utility Regulatory Commission (IURC) requested public comment from June 17, 2026, through July 21, 2026, and during the public hearing on July 20, 2026. IURC received no comments in response to the Notice of First Public Comment Period. This adopted version of the rule is the same as or does not substantially differ from the last published version of the proposed rule. FINAL RULE Sec. 1. (a) The definitions in this section apply throughout this rule. (b) "Application for rate change" means an application, filed with the commission by a utility in accordance with section 2 of this rule, that: which: (c) "Commission" means the Indiana utility regulatory commission. (d) "Customer" means a person, firm, corporation, municipality, or other government agency that has agreed, orally or otherwise, to pay for service received from a small utility, provided, that, for the purposes of this rule, a customer as defined in this subsection who: that: shall be counted as one (1) customer for each connection. (e) "Days" means calendar days. (e) (f) "Formal public hearing" means a hearing contemplated by IC 8-1-2-61.5. (f) (g) "Incomplete application" means an application filed under section 2 of this rule in which at least one (1) or more of the elements specified is missing or incomplete. A blank required field not filled in completed or an interrogatory a question not answered in the form prescribed under section 2(b)(3) 2(b)(2) of this rule constitutes an incomplete element and therefore, an incomplete application. (g) (h) "OUCC" means the Indiana office of utility consumer counselor. (h) (i) "Public field hearing" means a hearing conducted in a county in which the utility provides service for the purpose of allowing the utility's customers, and others with a substantial interest in the matter who that are not parties, to offer comments. It is not a formal public hearing contemplated by IC 8-1-2-61.5. (i) (j) "Request for a formal public hearing" means: (j) (k) "Small utility" means a public or municipally owned utility subject to the rates and charges jurisdiction of the commission that meets the requirements listed in IC 8-1-2-61.5(a)(1) through IC 8-1-2-61.5(a)(3). (k) (l) "Small utility rate change application form" means that the current set of forms, schedules, blanks, and instructions generated by the commission and made available to those who that would petition for a rate change under section 2 of this rule. The commission staff shall develop the set of forms, schedules, blanks, and instructions that comprise the small utility rate change application form. The forms may be revised from time to time as circumstances dictate as needed. Furthermore, commission staff may periodically establish and publish generic rates of return for each type of utility to be used by utilities when submitting a small utility application form. Sec. 2. (a) A small utility availing itself of this procedure must: (b) The application must include the following: (c) If the small utility is a not-for-profit water or sewer utility, the application must also include the following: (d) Notice requirements of the utility for this procedure comprise the following: Sec. 3. (a) In the event the initial application for rate change is meets the definition of an incomplete application, the commission staff shall file, within twenty (20) days of the filing date of the filing of the initial application, a report with the secretary of the commission through the commission's electronic filing system. The report shall must specify which elements of the application are missing or incomplete. (b) In the event the initial application for rate change is deemed an incomplete application under subsection (a), the time frames specified under: shall are not be counted from the original filing date an of the incomplete application, was originally filed, but shall be are counted from the filing date of the commission staff files a report with the secretary of the commission stating that the small utility has corrected the deficiencies specified in the staff report filed under subsection (a) and is otherwise complete. (c) The commission may dismiss without prejudice any incomplete application which that remains on file more than ninety (90) days. Sec. 4. (a) The OUCC staff shall review the application for rate change and, subject to section 3(b) of this rule, shall, within ninety (90) calendar days after the filing of a complete application or substantive amendment to the application, file a report with the secretary of the commission on the application, making such those recommendations as the OUCC deems appropriate. The OUCC report must be filed through the commission's electronic filing system. By order of the commission, the time for filing deadline of the OUCC report may be extended if so requested by the OUCC. The OUCC report must state whether any degree of agreement exists and describe its details. The OUCC report must confirm that an agreement has not been reached. (b) If the small utility intends to submit a written response to the OUCC staff report, the small utility shall file a notice of its intention in writing with the secretary of the commission through the commission's electronic filing system not later than fifteen (15) days following the filing date that of the OUCC staff report. was filed. (c) If the small utility notice is filed under subsection (b), the small utility shall file its written response to the OUCC staff report within thirty (30) days of the date the notice is filed. Sec. 5. (a) Subject to section 3(b) of this rule, a request for formal public hearing on an application for rate change filed under this rule shall must be filed: within forty (40) calendar sixty (60) days of the initial filing of the application for rate change, unless the commission extends the period for filing. (b) The commission may, upon a request timely filed by a public or municipal corporation, ten (10) individuals, firms, corporations, or associations, or ten (10) complainants of any of these classes affected by the proposed rate change or by the OUCC, conduct a formal public hearing with respect to an application for rate change. (c) The commission may require a formal public hearing or conduct a public field hearing on its own motion. (d) In the event a formal public hearing is held under this section, the small utility may elect to designate its application for rate change to serve as its prefiled evidence, constituting its case-in-chief; however, the small utility is not precluded from filing additional evidence. Sec. 6. (a) If no formal public hearing under IC 8-1-2-61.5(a), IC 8-1-2-61.5(b), or IC 8-1-2-61.5(c) is held, the commission may issue an order on the application for rate change based on the data in the application for rate change, the report filed by the OUCC staff concerning the application for rate change, and a written response of the small utility to the OUCC staff report. (b) Subject to section 3(b) of this rule, the commission shall not enter an order under this procedure until at least forty (40) calendar sixty (60) days have elapsed from the date of the initial filing of the application for rate change. Sec. 7. Under 170 IAC 1-1.5-1(e)(3), filings on the application for rate change under this rule are exempt from the ex parte rules of the commission. However, if a formal public hearing is scheduled under IC 8-1-2-61.5(b), then the ex parte rules of the commission located in 170 IAC 1-1.5 apply from the date the hearing is noticed, except that under 170 IAC 1-1.5-2, the proceeding shall be is considered pending from the date the hearing is noticed rather than the thirty (30) days before the date of filing. LSA Document #26-173 Notice of First Public Comment Period: June 17, 2026 Approved by Attorney General: September 17, 2026 Approved by Governor: September 29, 2026 Filed with Publisher: October 1, 2026, 12:06 p.m. Documents Incorporated by Reference: None Received by Publisher Small Business Regulatory Coordinator: Caleb Peery, Assistant General Counsel, Indiana Utility Regulatory Commission, 101 West Washington Street, Suite 1500 East, Indianapolis, IN 46204, (317) 232-2701, CPeery@urc.in.gov