IRSDA ConferenceIRSDA Conference

What Do the Amendments to What Do the Amendments to Indiana Code Section 13-26-11 Indiana Code Section 13-26-11

Mean to You?Mean to You?

Kristina Kern Wheeler, General CounselKristina Kern Wheeler, General CounselJa-Deen L. Johnson, Consumer Affairs DirectorJa-Deen L. Johnson, Consumer Affairs Director

Indiana Utility Regulatory CommissionIndiana Utility Regulatory CommissionNovember 7, 2005November 7, 2005

What is the Indiana Utility What is the Indiana Utility Regulatory Commission (“IURC”)?Regulatory Commission (“IURC”)?

The IURC regulates the following:The IURC regulates the following:

Telecommunications UtilitiesTelecommunications Utilities

Private, Not-for-Profit and Municipal:Private, Not-for-Profit and Municipal: Gas UtilitiesGas Utilities Electric UtilitiesElectric Utilities Water UtilitiesWater Utilities Sewer UtilitiesSewer Utilities

We regulate the rates and charges for all utility We regulate the rates and charges for all utility types, along with the terms of service for private types, along with the terms of service for private and not-for-profit utilities (but not municipals).and not-for-profit utilities (but not municipals).

How is the IURC Structured?How is the IURC Structured? Five Commissioners who are appointed by the Governor, a majority of Five Commissioners who are appointed by the Governor, a majority of

whom must approve all final orders of the Commission.whom must approve all final orders of the Commission.

Six Administrative Law Judges, who run our hearings.Six Administrative Law Judges, who run our hearings.

Technical Divisions which include economists, accountants, engineers and Technical Divisions which include economists, accountants, engineers and other professionals separated into the following divisions:other professionals separated into the following divisions:

TelecommunicationsTelecommunications Gas, Water & SewerGas, Water & Sewer ElectricityElectricity Accounting & FinanceAccounting & Finance

General Counsel’s OfficeGeneral Counsel’s Office

Consumer AffairsConsumer Affairs

External Affairs/Public Information OfficeExternal Affairs/Public Information Office

Other Administrative Support StaffOther Administrative Support Staff

What Does the New Law Require?What Does the New Law Require?

Historically, the IURC has not regulated Historically, the IURC has not regulated the rates, charges, and terms of service of the rates, charges, and terms of service of regional sewer districts.regional sewer districts.

However, this new law provides that an However, this new law provides that an owner or operator of a campground served owner or operator of a campground served by a regional sewer district may file a by a regional sewer district may file a complaint with the Commission’s complaint with the Commission’s Consumer Affairs Division regarding Consumer Affairs Division regarding disputed billings. disputed billings.

What Can Be Disputed Under the What Can Be Disputed Under the New Law?New Law?

A campground owner or operator may A campground owner or operator may dispute whether:dispute whether:

1. The campground is being billed at the same 1. The campground is being billed at the same rates charged to residential customers for rates charged to residential customers for equivalent usage;equivalent usage;

2. The number of resident equivalent units 2. The number of resident equivalent units determined for the campground is correct; ordetermined for the campground is correct; or

3. Any additional charges imposed on the 3. Any additional charges imposed on the campground are reasonable or campground are reasonable or nondiscriminatory.nondiscriminatory.

How Must Campground Sewer Rates Be How Must Campground Sewer Rates Be Determined?Determined?

If the campground is not metered, the rates or charges may be determined If the campground is not metered, the rates or charges may be determined based on the following:based on the following:

        (1) A flat charge for each connection.(1) A flat charge for each connection.

(2) The amount of water used on the premises.(2) The amount of water used on the premises.

(3) The number and size of water outlets 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.(4) The amount, strength, or character of sewage discharged into the sewers.

(5) The size of sewer connections.(5) The size of sewer connections.

(6) Whether the property served has been or will be required to pay (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.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 (7) A combination of these or other factors that the board determines is necessary to establish nondiscriminatory, just, and equitable rates or necessary to establish nondiscriminatory, just, and equitable rates or charges.charges.

How Must Campground Sewer How Must Campground Sewer Rates Be Determined (Continued)?Rates Be Determined (Continued)?

A special note about flat rate service:A special note about flat rate service:

Each campsite at the campground may not equal more than Each campsite at the campground may not equal more than one-third (1/3) of one (1) resident equivalent unit. The basic one-third (1/3) of one (1) resident equivalent unit. The basic monthly charge for the campground's sewage service must be monthly charge for the campground's sewage service must be equal to the number of the campground's resident equivalent equal to the number of the campground's resident equivalent units multiplied by the rate charged by the board for a resident units multiplied by the rate charged by the board for a resident unit. unit.

For example: For example: The monthly flat rate for a typical residential home is $30 a month.The monthly flat rate for a typical residential home is $30 a month. The campground has 60 campsites.The campground has 60 campsites. The monthly flat rate for the campground is $600:The monthly flat rate for the campground is $600:

($30 ÷ 3) X 60 = $600 ($30 ÷ 3) X 60 = $600

How Must Campground Sewer How Must Campground Sewer Rates Be Determined (Continued)?Rates Be Determined (Continued)?

If a campground is billed for sewage service at a flat rate, the campground 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 may instead elect to install, at the campground's expense, a meter to measure the actual amount of sewage discharged by the campground into 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: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 (1) the rate charged by a board for the metered sewage service may not exceed the rate charged to residential customers for equivalent usage; andexceed the rate charged to residential customers for equivalent usage; and

        (2) the amount charged by a board for the campground's monthly sewage (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 service for the period beginning September 1 and ending May 31 must be equal to the greater of:equal to the greater of:

               (A) the actual amount that would be charged for the sewage (A) the actual amount that would be charged for the sewage discharged during the month by the campground as measured by discharged during the month by the campground as measured by

the the meter; ormeter; or

            (B) the lowest monthly charge paid by the campground for sewage (B) the lowest monthly charge paid by the campground for sewage service during the previous period beginning June 1 and ending August service during the previous period beginning June 1 and ending August

31.31.

How Must Campground Sewer How Must Campground Sewer Rates Be Determined (Continued)?Rates Be Determined (Continued)?

The board may impose additional charges on a The board may impose additional charges on a campground if the board incurs additional costs campground if the board incurs additional costs that are caused by any unique factors that apply to that are caused by any unique factors that apply to providing sewage service for the campground, providing sewage service for the campground, including, but not limited to:including, but not limited to:

(1) the installation of oversized pipe or any (1) the installation of oversized pipe or any other other unique equipment necessary to provide unique equipment necessary to provide sewage sewage service for the campground; andservice for the campground; and

(2) concentrations of biochemical oxygen (2) concentrations of biochemical oxygen demand demand (BOD) that exceed federal pollutant (BOD) that exceed federal pollutant standards.standards.

Good Faith Attempt at Resolution?Good Faith Attempt at Resolution?

Before Filing a Complaint with the Consumer Affairs Before Filing a Complaint with the Consumer Affairs Division, a campground owner or operator must make Division, a campground owner or operator must make a good faith attempt to resolve the dispute through:a good faith attempt to resolve the dispute through:

1. Any grievance or complaint procedure 1. Any grievance or complaint procedure prescribed prescribed by the sewer district board; or by the sewer district board; or

2. Other negotiations with the board.2. Other negotiations with the board.

      The owner or operator must file a request for review The owner or operator must file a request for review of the complaint with the Commission and the sewer of the complaint with the Commission and the sewer district board not later than seven (7) days after district board not later than seven (7) days after receiving notice of the board's proposed disposition of receiving notice of the board's proposed disposition of the matter.the matter.

CONSUMER AFFAIRS:CONSUMER AFFAIRS:How to file a complaintHow to file a complaint

General OverviewGeneral Overview

Statutory AuthorityStatutory Authority Who is Consumer Affairs?Who is Consumer Affairs? What does Consumer Affairs do?What does Consumer Affairs do? How to file a complaintHow to file a complaint

Informal ComplaintInformal Complaint Informal ReviewInformal Review Formal ComplaintFormal Complaint

Statutory AuthorityStatutory Authority

Indiana Code Section 8-1-2-34.5(b), states Indiana Code Section 8-1-2-34.5(b), states inin

part that: “The commission may part that: “The commission may investigateinvestigate

and enter orders on complaints filed byand enter orders on complaints filed by

individual customers arising under this individual customers arising under this section.”section.”

Statutory AuthorityStatutory Authority

The commission may establish an appealsThe commission may establish an appealsdivision to act on its own behalf regardingdivision to act on its own behalf regardingindividual customer complaints. Theindividual customer complaints. Thedecision of the division shall be bindingdecision of the division shall be bindingon all parties to the complaint. Theon all parties to the complaint. Thecommission shall review decisions of thecommission shall review decisions of theappeals division upon the timely requestappeals division upon the timely requestof an affected party.of an affected party.

Who is Consumer Affairs?Who is Consumer Affairs?

The Consumer Affairs Division is the “appealsThe Consumer Affairs Division is the “appeals

division” created by the Commission under I.C.division” created by the Commission under I.C.

8-1-2-34.5(b). Furthermore, Title 170 Indiana8-1-2-34.5(b). Furthermore, Title 170 Indiana

Administrative Code Section 1-1.1-5(a) providesAdministrative Code Section 1-1.1-5(a) provides

that “Any individual or entity may informallythat “Any individual or entity may informally

complain to the commission’s consumer affairscomplain to the commission’s consumer affairs

division, with respect to any matter within thedivision, with respect to any matter within the

jurisdiction of the commission.”jurisdiction of the commission.”

What does Consumer Affairs do?What does Consumer Affairs do?

Mediate between utility and consumerMediate between utility and consumer Advise Commission about disturbing trendsAdvise Commission about disturbing trends Serve as a link between consumer and Serve as a link between consumer and

CommissionersCommissioners Enforce compliance with rules and regulationsEnforce compliance with rules and regulations Provide documentation of utility complaint Provide documentation of utility complaint

history during formally docketed caseshistory during formally docketed cases Educate consumer on onerous utility issuesEducate consumer on onerous utility issues

How to file a complaintHow to file a complaint

Informal ComplaintInformal Complaint Who may file a complaint?Who may file a complaint? What types of complaints filed with C.A.?What types of complaints filed with C.A.? When may a complaint be filed?When may a complaint be filed? How to file a complaint?How to file a complaint? Resolutions and TimeframesResolutions and Timeframes

Not later than seven (7) days after receiving the Not later than seven (7) days after receiving the written informal review decision of Consumer Affairs written informal review decision of Consumer Affairs Director, the campground or the district may make a Director, the campground or the district may make a written request for the dispute to be formally written request for the dispute to be formally docketed as a proceeding before the Commission. docketed as a proceeding before the Commission. Subject to the right of either party to an appeal to the Subject to the right of either party to an appeal to the Indiana Court of Appeals, the decision of the Indiana Court of Appeals, the decision of the Commission is final.Commission is final.

What Happens to Outstanding Bills What Happens to Outstanding Bills While a Dispute is Pending?While a Dispute is Pending?

In any case in which the basic monthly charge for a In any case in which the basic monthly charge for a campground's sewage service is in dispute, the owner or campground's sewage service is in dispute, the owner or operator shall pay, on any disputed bill issued while a operator shall pay, on any disputed bill issued while a review under this section is pending, the basic monthly review under this section is pending, the basic monthly charge billed during the year immediately preceding the charge billed during the year immediately preceding the year in which the first disputed bill is issued. year in which the first disputed bill is issued.

If the basic monthly charge paid while the review is pending If the basic monthly charge paid while the review is pending exceeds any monthly charge determined by the exceeds any monthly charge determined by the Commission, the board shall refund or credit the excess Commission, the board shall refund or credit the excess amount paid to the owner or operator. If the basic monthly amount paid to the owner or operator. If the basic monthly charge paid while the review is pending is less than any charge paid while the review is pending is less than any monthly charge determined by the commission, the owner monthly charge determined by the commission, the owner or operator shall pay the board the difference owed.or operator shall pay the board the difference owed.

How to file a complaintHow to file a complaint

Informal ReviewInformal Review What is the difference?What is the difference?

Formal ComplaintFormal Complaint

How to contact Consumer AffairsHow to contact Consumer Affairs

Indiana Utility Regulatory CommissionIndiana Utility Regulatory Commissionc/o Consumer Affairsc/o Consumer Affairs302 W. Washington Street, E306302 W. Washington Street, E306Indianapolis, IN 46204Indianapolis, IN 46204

Local:Local: 317-232-2712317-232-2712 Fax:Fax: 317-233-2410317-233-2410Toll Free:Toll Free: 1-800-851-42681-800-851-4268 TDD:TDD:317-317-

232-8556232-8556

Website:Website: www.in.gov/iurcwww.in.gov/iurc