Indiana Administrative Code › Title 170 - INDIANA UTILITY REGULATORY COMMISSION › Article 5 - GAS UTILITIES › Rule 1 - Standards of Service › Section 1-27 - Extension of distribution mains; variances

Current through July 10, 2024
Authority: IC
				  8-1-1-3;
				  IC
				  8-1-2-4
Affected: IC
				  8-1-2-33;
				  IC
				  8-1-2-87
Sec. 27.
Extension of Distribution Mains.
(A) Jurisdiction of Commission. The
				provisions of this rule
[this section]
shall govern the
				Commission in determining all matters relative thereto coming before
				it.
(B) Responsibility of Gas
				Utilities. In addition to its statutory responsibilities, each gas public
				utility shall, upon proper application for service, have the authority and
				obligation subject to the provisions below and in keeping with the filings
				approved by the Commission as to the availability of gas service, to make free
				of charge an extension necessary to give service when the estimated total
				revenue, for a period of three (3) years, from the prospective customer or
				customers, is at least equal to the estimated cost of such extension.
(C) Extension Exceeding the Costs Limits Set
				Forth in (B) Above. If the estimated cost of the extension required to furnish
				service is greater than the total estimated revenue from such extension
				specified herein, such an extension shall be made under the following
				conditions:
(1) Upon proper application for
				such extension and (i) receipt by the gas public utility of a cash deposit in
				an amount equal to the cost of such extension in excess of the amount which
				would have qualified as provided in (B) above or (ii) receipt by the gas public
				utility of adequate provision, mutually acceptable to the parties, for payment
				of such cash deposit upon completion of the construction of the extension, the
				gas utility shall proceed with such extension, without specific approval of the
				agreement by the Commission, or
(2)
				If (a) in the opinion of the gas utility the estimated cost of such extension
				and the prospective revenue to be received from it is so meager as to make it
				doubtful whether the revenue from the extension would ever pay a fair return on
				the investment involved in such extension, or (b) in a case of real estate
				development, with slight or no immediate demand for service, or (c) in the case
				of an installation requiring extensive equipment with slight or irregular
				service; then in any of these cases the gas utility shall submit the agreement
				for such an extension to the Commission for investigation and determination as
				to the public convenience and necessity of such extension, and if so required,
				the conditions under which it shall be made, and
(3) For each customer, exclusive of the
				initial applicants considered in the making of an extension, connected to such
				an extension within the period of six years from the completion of such
				extension, the gas utility shall refund to such initial applicants, in
				proportion to their respective contributions toward the cost of such extension,
				an amount equal to three (3) times the estimated annual revenue from such new
				customer, less the cost of service such new customer, but the total of all
				refunds to any such applicant shall in no event exceed the aforesaid
				contribution of such applicant.