Just when the Municipal utilities survived the COVID impact to Water and Wastewater Rates and the effect of who is responsible for the renter’s bill. Now, there is 170 IAC 8.5-4-1 to IAC 8.5- 4-40 on the Sewer Mains and 170 IAC 6-1.5-1 to 6-1.5-41, based on House Enrolled Act 1131.

What is it and how does it affect your Municipal Utility? Let’s explore!

First question always asked is, wait isn’t this based on the IURC? We left the IURC 20 years ago are we stilled covered?

YES! You are still covered!

Question Two: Do we file a report with the IURC? No

Question Three: Generally, how does it change the way a Utility makes Main Extension?

An agreement must be entered into and contain such things as:

  1. Size and description and route of the main.
  2. Certain cost calculations such as:
    A. The main cost
    B. The revenue allowance
    C. The applicant’s (i.e. developer or connector) total required deposit
    D. The subsequent connector’s fee.
    E. The completion date and the 10-year refunding termination date.
    F. Disclosure of any depositor Connection
    G. A statement the agreement conforms to the rules and the dispute resolution process and informal complaints
    H. Both Parties must sign.

So, what is important is for the Municipal Utility to understand? The game has changed! Upsizing the main will require the Municipal Utility to have some “skin in the game.”

As utilities’ move forward, having updated rates and charges, and providing funds for Extensions, replacement’s and improvements is vital.

This is where Financial Solutions Group, Inc. can help by assisting with your utility review, periodically raise rates and help keep a sound financial utility in place.

(Disclaimer: The rules can always change and be interpreted by your Attorney in various ways. Always seek legal advice and put together a professional team as you move forward.)

The Terminal