Sec. 23.5. (a) A public utility that provides water utility service may file a petition with the commission to seek approval of a plan to develop a future source of water supply. Any plan submitted must include a completion date by which the public utility will place the future source of water supply into service. The completion date may not be later than fifteen (15) years after the date on which the plan is submitted. The public utility's plan must include:

(1) the public utility's timetable for placement in service of the future source of supply;

(2) the cost of the source of supply;

(3) the need for a new source of supply within the public utility's timetable;

(4) the availability of alternatives to the proposed source of supply; and

(5) the need to secure property rights to preserve and protect the planned future source of supply.

The commission shall approve the public utility's plan if the commission finds that the plan is reasonable and prudent for the provision of safe and reliable service.

(b) In general rate cases, following approval of a public utility's plan under this section, the commission shall for ratemaking purposes add to the value of the public utility's property under section 6 of this chapter the public utility's actual cost not to exceed the cost presented to the commission under subsection (a) as expenditures incurred for land, studies, development costs, and construction in developing a future source of water supply even though the source of supply is not yet used and useful in the provision of service. If the public utility's actual cost exceeds the cost presented to the commission under subsection (a), the additional costs shall be included once the source of water supply is in service if the commission finds that the additional costs were prudently incurred.

(c) If a public utility has an approved plan under this section and the public utility has not placed the source of water supply into service before the date set forth to the commission in the public utility's timetable under subsection (a), the following apply:

(1) Subsection (b) does not apply, unless the public utility obtains the commission's approval for amendment of the public utility's plan to extend the timetable. The commission shall consider the elements listed in subsection (a) in determining whether to approve the amendment of the plan.

(2) The commission shall establish a refund procedure to restore to ratepayers all payments that the public utility collected under subsection (b), with interest, and shall remove the value added to the public utility's property under subsection (b), unless an extension is approved under subdivision (1).

As added by P.L.91-2017, SEC.3.