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IRSDA Conference

IRSDA Conference. What Do the Amendments to Indiana Code Section 13-26-11 Mean to You? Kristina Kern Wheeler, General Counsel Ja-Deen L. Johnson, Consumer Affairs Director Indiana Utility Regulatory Commission November 7, 2005. What is the Indiana Utility Regulatory Commission (“IURC”)?.

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IRSDA Conference

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  1. IRSDA Conference What Do the Amendments to Indiana Code Section 13-26-11 Mean to You? Kristina Kern Wheeler, General Counsel Ja-Deen L. Johnson, Consumer Affairs Director Indiana Utility Regulatory Commission November 7, 2005

  2. What is the Indiana Utility Regulatory Commission (“IURC”)? • The IURC regulates the following: • Telecommunications Utilities • Private, Not-for-Profit and Municipal: • Gas Utilities • Electric Utilities • Water Utilities • Sewer Utilities • We regulate the rates and charges for all utility types, along with the terms of service for private and not-for-profit utilities (but not municipals).

  3. How is the IURC Structured? • Five Commissioners who are appointed by the Governor, a majority of whom must approve all final orders of the Commission. • Six Administrative Law Judges, who run our hearings. • Technical Divisions which include economists, accountants, engineers and other professionals separated into the following divisions: • Telecommunications • Gas, Water & Sewer • Electricity • Accounting & Finance • General Counsel’s Office • Consumer Affairs • External Affairs/Public Information Office • Other Administrative Support Staff

  4. What Does the New Law Require? • Historically, the IURC has not regulated the rates, charges, and terms of service of regional sewer districts. • However, this new law provides that an owner or operator of a campground served by a regional sewer district may file a complaint with the Commission’s Consumer Affairs Division regarding disputed billings.

  5. What Can Be Disputed Under the New Law? • A campground owner or operator may dispute whether: 1. The campground is being billed at the same rates charged to residential customers for equivalent usage; 2. The number of resident equivalent units determined for the campground is correct; or 3. Any additional charges imposed on the campground are reasonable or nondiscriminatory.

  6. How Must Campground Sewer Rates Be Determined? • If the campground is not metered, the rates or charges may be determined based on the following:     (1) A flat charge for each connection. (2) The amount of water used on the premises. (3) The number and size of water outlets on the premises. (4) The amount, strength, or character of sewage discharged into the sewers. (5) The size of sewer connections. (6) Whether the property served has been or will be required to pay separately for the cost of any of the facilities of the works. (7) A combination of these or other factors that the board determines is necessary to establish nondiscriminatory, just, and equitable rates or charges.

  7. How Must Campground Sewer Rates Be Determined (Continued)? • A special note about flat rate service: Each campsite at the campground may not equal more than one-third (1/3) of one (1) resident equivalent unit. The basic monthly charge for the campground's sewage service must be equal to the number of the campground's resident equivalent units multiplied by the rate charged by the board for a resident unit. For example: • The monthly flat rate for a typical residential home is $30 a month. • The campground has 60 campsites. • The monthly flat rate for the campground is $600: ($30 ÷ 3) X 60 = $600

  8. How Must Campground Sewer Rates Be Determined (Continued)? • If a campground is billed for sewage service at a flat rate, the campground may instead elect to install, at the campground's expense, a meter to measure the actual amount of sewage discharged by the campground into the sewers. If a campground elects to be billed by use of a meter: (1) the rate charged by a board for the metered sewage service may not exceed the rate charged to residential customers for equivalent usage; and     (2) the amount charged by a board for the campground's monthly sewage service for the period beginning September 1 and ending May 31 must be equal to the greater of:        (A) the actual amount that would be charged for the sewage discharged during the month by the campground as measured by the meter; or       (B) the lowest monthly charge paid by the campground for sewage service during the previous period beginning June 1 and ending August 31.

  9. How Must Campground Sewer Rates Be Determined (Continued)? • The board may impose additional charges on a campground if the board incurs additional costs that are caused by any unique factors that apply to providing sewage service for the campground, including, but not limited to: (1) the installation of oversized pipe or any other unique equipment necessary to provide sewage service for the campground; and (2) concentrations of biochemical oxygen demand (BOD) that exceed federal pollutant standards.

  10. Good Faith Attempt at Resolution? • Before Filing a Complaint with the Consumer Affairs Division, a campground owner or operator must make a good faith attempt to resolve the dispute through: 1. Any grievance or complaint procedure prescribed by the sewer district board; or 2. Other negotiations with the board.    The owner or operator must file a request for review of the complaint with the Commission and the sewer district board not later than seven (7) days after receiving notice of the board's proposed disposition of the matter.

  11. CONSUMER AFFAIRS:How to file a complaint

  12. General Overview • Statutory Authority • Who is Consumer Affairs? • What does Consumer Affairs do? • How to file a complaint • Informal Complaint • Informal Review • Formal Complaint

  13. Statutory Authority Indiana Code Section 8-1-2-34.5(b), states in part that: “The commission may investigate and enter orders on complaints filed by individual customers arising under this section.”

  14. Statutory Authority The commission may establish an appeals division to act on its own behalf regarding individual customer complaints. The decision of the division shall be binding on all parties to the complaint. The commission shall review decisions of the appeals division upon the timely request of an affected party.

  15. Who is Consumer Affairs? The Consumer Affairs Division is the “appeals division” created by the Commission under I.C. 8-1-2-34.5(b). Furthermore, Title 170 Indiana Administrative Code Section 1-1.1-5(a) provides that “Any individual or entity may informally complain to the commission’s consumer affairs division, with respect to any matter within the jurisdiction of the commission.”

  16. What does Consumer Affairs do? • Mediate between utility and consumer • Advise Commission about disturbing trends • Serve as a link between consumer and Commissioners • Enforce compliance with rules and regulations • Provide documentation of utility complaint history during formally docketed cases • Educate consumer on onerous utility issues

  17. How to file a complaint • Informal Complaint • Who may file a complaint? • What types of complaints filed with C.A.? • When may a complaint be filed? • How to file a complaint? • Resolutions and Timeframes • Not later than seven (7) days after receiving the written informal review decision of Consumer Affairs Director, the campground or the district may make a written request for the dispute to be formally docketed as a proceeding before the Commission. Subject to the right of either party to an appeal to the Indiana Court of Appeals, the decision of the Commission is final.

  18. What Happens to Outstanding Bills While a Dispute is Pending? • In any case in which the basic monthly charge for a campground's sewage service is in dispute, the owner or operator shall pay, on any disputed bill issued while a review under this section is pending, the basic monthly charge billed during the year immediately preceding the year in which the first disputed bill is issued. • If the basic monthly charge paid while the review is pending exceeds any monthly charge determined by the Commission, the board shall refund or credit the excess amount paid to the owner or operator. If the basic monthly charge paid while the review is pending is less than any monthly charge determined by the commission, the owner or operator shall pay the board the difference owed.

  19. How to file a complaint • Informal Review • What is the difference? • Formal Complaint

  20. How to contact Consumer Affairs Indiana Utility Regulatory Commission c/o Consumer Affairs 302 W. Washington Street, E306 Indianapolis, IN 46204 Local: 317-232-2712 Fax: 317-233-2410 Toll Free: 1-800-851-4268 TDD: 317-232-8556 Website: www.in.gov/iurc

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