Indiana Administrative Code
Title 170 - INDIANA UTILITY REGULATORY COMMISSION
Article 6 - WATER UTILITIES
Rule 1.5 - Extension of Water Mains
Section 1.5-31 - Main extension cost

(a) The cost of the main extension may, as determined by the utility, be either:

(b) In the absence of representative cost data for the previous year for any size or type of main or for any special construction, or for any other facility involved in a main extension, the cost shall be the utility's best estimate of the cost of the main, special construction, or related facilities based upon current available information.

(c) If the cost of the main extension is computed or estimated under subsection (a)(1) or (a)(2), it shall be based on an eight (8) inch main unless the utility determines that a larger or smaller main is reasonably necessary to serve the applicant, including fire protection service, in which event the cost, computed or estimated, shall be based on the size of main determined reasonably necessary.

(d) If the utility's future extension plans require a larger main than is reasonably necessary to serve the applicants and prospective customers, the difference in the cost for the larger main size and increased material and installation cost, if any, shall be borne by the utility.

(e) The computed or estimated cost may be adjusted to the actual cost by the utility, in which event the actual cost as finally determined shall constitute the cost of the main extension. If the main extension agreement provides for the adjustment of the computed or estimated cost of the main extension to the actual cost, the adjustment shall be made upon completion of the main extension. If the actual cost of the extension is less than the computed or estimated cost, the utility shall refund the difference to the original depositor as soon as the actual cost has been determined. If the actual cost of the extension exceeds the computed or estimated cost, then the utility shall bill the original depositor for, and that depositor shall pay, the difference between the computed or estimated cost and the actual cost.

(f) If the utility determines that a main larger than eight (8) inches is reasonably necessary to serve the domestic and fire protection requirements of the applicant, and those requirements are significantly in excess of the requirements of the other applicants or the prospective customers along the intervening route of the main, the cost of the main extension or deposit for other applicants or subsequent connector's fee for the prospective customers shall be based on the smaller size main that the utility has determined is adequate to meet the requirements of the other applicants or the prospective customers along the intervening route.