in-20260617-IR-170260169RAA: IURC RM 26-04

TITLE 170 INDIANA UTILITY REGULATORY COMMISSION Regulatory Analysis LSA Document #26-169 IURC RM 26-04

I. Description of Rule

This rulemaking makes various updates to the Indiana Utility Regulatory Commission's (IURC's) rules regarding the submission of utilities' tariff schedules to the IURC in 170 IAC 1-2, and it consolidates the rules regarding the accounting standards that were in various articles under Title 170 of the Indiana Administrative Code into one rule for the industries regulated by the IURC: electricity, natural gas, water, and wastewater.

III. Impacted Parties

The proposed amendments to 170 IAC 1-2 will impact all utilities that file tariff schedules, which encompasses all utilities under the rate jurisdiction of the IURC. The IURC currently regulates the rates and charges of approximately 115 utilities, consisting of 17 gas (15 investor-owned and 2 not-for-profit), 9 electric (5 investor-owned and 4 municipally owned), 24 wastewater, and 65 water utilities. These entities are affected by both the modernized procedures for filing tariff schedules and the consolidated accounting standards.

IV. Changes in Proposed Rule

A complete, itemized list of the changes in this rulemaking is in the table below. Most of the changes are intended to update older language or to better conform to actual practices. Throughout the rule, the term “tariff” is added to “schedule” to aid in clarity that the schedules are tariffs. Citation Change 170 IAC 1-2-.05 Adds a new section exempting small utilities under IC 8-1-2-61.5(a)(1) from the tariff schedule requirements. 170 IAC 1-2-1 Updating the language to conform to common usage, allowing an exemption for utilities to file separate schedules for each location if the IURC approves single tariff pricing. 170 IAC 1-2-2 Simplifying the language and removing archaic terms. 170 IAC 1-2-3 Modifying submission requirements from paper copies to instead require electronic submission. 170 IAC 1-2-4 Requiring an informational heading on each page of a tariff schedule instead of only the title page, and simplifying the page numbering requirement. Removing the date of issue and date effective requirement. Removing unused requirement for schedules issuance with less than 30-day notice. Removing incorrect internal reference. 170 IAC 1-2-5 Removing vague language about whether the number of participating utilities is not “too great.” Updating outdated language. 170 IAC 1-2-6 Requiring the utilities only file modified pages instead of the entire tariff packet 170 IAC 1-2-7 Removing outdated references to “common supplements” and removing surrounding language. Clarifying the language by adding when relevant. Replacing unite with combine. 170 IAC 1-2-8 Revising archaic receivership language to directly state that a receiver shall submit tariff schedules. 170 IAC 1-2-9 Removing archaic letter of transmittal language and replacing with modern statement that utilities may request an acknowledgement of receipt. 170 IAC 1-2-10 Simplifying joint rates language. 170 IAC 1-2-12 Replacing physical address with the current website address and adding electronic submissions instead of mailed submissions. 170 IAC 1-2-13 Adds new section to incorporate and require electric utilities under the jurisdiction of the IURC to follow the most recent FERC uniform system of accounts. The new section replaces the repealed 170 IAC 4-2 referencing the 1985, 1976, and 1973 versions of the uniform system of accounts. 170 IAC 1-2-14 Adds new section to incorporate and require natural gas utilities under the jurisdiction of the IURC to follow the most recent FERC uniform system of accounts. The new section replaces the repealed 170 IAC 5-2 referencing the 1985, 1976, and 1973 versions of the uniform system of accounts. 170 IAC 1-2-15 Adds new section to incorporate and require water utilities under the jurisdiction of the IURC to follow the most recent NARUC uniform system of accounts. The new section replaces the repealed 170 IAC 6-2 referencing the 1996 version of the uniform system of accounts. 170 IAC 1-2-16 Adds new section to incorporate and require wastewater utilities under the jurisdiction of the IURC to follow the most recent NARUC uniform system of accounts. The new section replaces the repealed 170 IAC 8-2 referencing the 1986 version of the uniform system of accounts. 170 IAC 1-1.1-16 Clarifies that the type of relief granted by the IURC need not be “protective” in nature. 170 IAC 1-2-11 Repeal section concerning initial rates not in excess of 1913 rates, as it is inapplicable in practice now. 170 IAC 4-2 concerning electric classification of accounts. Repeal (replaced with new section, above). 170 IAC 5-2 concerning gas utilities classification of accounts. Repeal (replaced with new section, above). 170 IAC 6-2 concerning water utility classification of accounts; Repeal (replaced with new section, above). 170 IAC 7-2.1 concerning telecommunications classification of accounts. Repeal as unneeded. 170 IAC 8-2 regarding wastewater classification of accounts. Repeal (replaced with new section, above). 170 IAC 11 regarding combination utilities classification of accounts. Repeal as unneeded.

V. Benefit Analysis

The amendments in this rulemaking are largely to update the language and to conform to current practice. Updates include taking into account modern practices compared to the very old existing rule. The updates, therefore, provide benefits to the regulated utilities and the IURC in having a rule that makes logical sense in the modern context. An itemized description of the benefits is displayed in the table under section VI.

VI. Cost Analysis

A comprehensive enumeration of the costs imposed by the changes, if any, including tangible and intangible costs is listed in the table below. Each of the estimated costs and benefits are attributable to the entities described in section III, Impacted Parties, above. Overall, this rulemaking does not impose any quantifiable costs on regulated entities, and the minimal qualitative costs are so small as to be insignificant. Citation Change Costs Benefits 170 IAC 1-2-.05 Adds a new section exempting small utilities under IC 8-1-2-61.5(a)(1) from the tariff schedule requirements. No additional costs imposed. This relieves small utilities with little staff and resources from complying with the requirements for filing tariffs, a cost savings to these small utilities by reducing the administrative burden. 170 IAC 1-2-1 Updating the language to conform to common usage, allowing an exemption for utilities to file separate schedules for each location if the IURC approves single tariff pricing. No additional costs imposed. Updated language improves understanding of the rule. 170 IAC 1-2-2 Simplifying the language and removing archaic terms. No additional costs imposed. Benefits to readability of the rule. 170 IAC 1-2-3 Modifying submission requirements from paper copies to instead require electronic submission. Utilities almost universally file tariff schedule electronically already, so no additional costs imposed. Benefits include savings to any utility still submitting paper copies and increased efficiency for the IURC in reduced paper handling. 170 IAC 1-2-4 Requiring an informational heading on each page of a tariff schedule instead of only the title page and simplifying the page numbering requirement. Removing the date of issue and date effective requirement. Removing unused requirement for schedules issuance with less than 30-day notice. Removing incorrect internal reference. Costs of including heading is insignificant. Removing the unused requirement for less than 30 days' notice reduces administrative burden by reducing the overall number of requirements. Removing the incorrect reference promotes better understanding by all parties. 170 IAC 1-2-5 Removing vague language about whether the number of participating utilities is not “too great.” Updating outdated language. No additional costs imposed. Benefits to readability. 170 IAC 1-2-6 Requiring the utilities only file modified pages instead of the entire tariff packet. No additional costs imposed. Benefits to utilities as they can submit fewer pages. Benefits to the IURC as receiving only modified pages aids efficient administration of tariff review and public posting. 170 IAC 1-2-7 Removing outdated references to “common supplements” and removing surrounding language. Clarifying the language by adding when relevant. Replacing unite with combine. No additional costs imposed. Benefits the public and stakeholders by increasing clarity of the rule. 170 IAC 1-2-8 Revising archaic receivership language to directly state that a receiver shall submit tariff schedules. No additional costs imposed. Benefits the public and stakeholders by increasing clarity of the rule. 170 IAC 1-2-9 Removing archaic letter of transmittal language and replacing with modern statement that utilities may request an acknowledgement of receipt. No additional costs imposed. Benefits the public and stakeholders by increasing clarity of the rule. 170 IAC 1-2-10 Simplifying joint rates language. No additional costs imposed. Benefits to readability. 170 IAC 1-2-12 Replacing physical address with the current website address and adding electronic submissions instead of mailed submissions. No additional costs imposed. Benefits the public and regulated entities by having accurate physical address. 170 IAC 1-2-13 Adds new section to incorporate and require electric utilities under the jurisdiction of the IURC to follow the most recent FERC uniform system of accounts. The new section replaces the repealed 170 IAC 4-2 referencing the 1985, 1976, and 1973 versions of the uniform system of accounts. IURC staff believe electric utilities are universally or almost universally already complying with up-to-date accounting standards. Benefits of applying the up-to-date accounting standards include aligning state requirements with current federal standards so utilities that have federal regulatory oversight can comply with the same standard for both jurisdictions. 170 IAC 1-2-14 Adds new section to incorporate and require natural gas utilities under the jurisdiction of the IURC to follow the most recent FERC uniform system of accounts. The new section replaces the repealed 170 IAC 5-2 referencing the 1985, 1976, and 1973 versions of the uniform system of accounts. IURC staff believe natural gas utilities are universally or almost universally already complying with up-to-date accounting standards. Benefits of applying the up-to-date accounting standards include aligning state requirements with current federal standards so utilities that have federal regulatory oversight can comply with the same standard for both jurisdictions. 170 IAC 1-2-15 Adds new section to incorporate and require water utilities under the jurisdiction of the IURC to follow the most recent NARUC uniform system of accounts. The new section replaces the repealed 170 IAC 6-2 referencing the 1996 version of the uniform system of accounts. IURC staff believe water utilities are universally or almost universally already complying with up-to-date accounting standards. Benefits of applying the up-to-date accounting standards include aligning state requirements with current practice and likely better matching standards in other states for utilities that operate in multiple states. 170 IAC 1-2-16 Adds new section to incorporate and require wastewater utilities under the jurisdiction of the IURC to follow the most recent NARUC uniform system of accounts. The new section replaces the repealed 170 IAC 8-2 referencing the 1986 version of the uniform system of accounts. IURC staff believe wastewater utilities are universally or almost universally already complying with up-to-date accounting standards. Benefits of applying the up-to-date accounting standards include aligning state requirements with current practice and likely better matching standards in other states for utilities that operate in multiple states. 170 IAC 1-2-11 concerning initial rates not in excess of 1913 rates. Repeal. No costs imposed by repeal. Reduced regulatory burden. 170 IAC 4-2 concerning electric classification of accounts. Repeal. No costs imposed by repeal. Benefits itemized in section replacing this repeal, above. 170 IAC 5-2 concerning gas utilities classification of accounts. Repeal. No costs imposed by repeal. Benefits itemized in section replacing this repeal, above. 170 IAC 6-2 concerning water utility classification of accounts; Repeal. No costs imposed by repeal. Benefits itemized in section replacing this repeal, above. 170 IAC 7-2.1 concerning telecommunications classification of accounts. Repeal. No costs imposed by repeal. Reduced regulatory burden. 170 IAC 8-2 regarding wastewater classification of accounts. Repeal. No costs imposed by repeal. Benefits itemized in section replacing this repeal, above. 170 IAC 11 regarding combination utilities classification of accounts. Repeal. No costs imposed by repeal. Reduced regulatory burden.

VII. Sources of Information

The IURC estimated costs and benefits based on the IURC staff's expertise.

VIII. Regulatory Analysis

Based on the aggregated tally of the costs and benefits identified in Section VI, the IURC concludes that the qualitative benefits of increased clarity, streamlined procedures, and reduced administrative burdens outweigh the negligible costs of implementation. The benefits identified above are largely qualitative, and though real, are difficult to quantify. Therefore, these qualitative savings are likely to outweigh the minor costs, if any, imposed by the rulemaking.

IX. Contact Information of Staff to Answer Substantive Questions

Notice of First Public Comment Period: 20260617-IR-170260169FNA Notice of Determination Received: May 19, 2026