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Indiana Utility Regulatory Commission Provides More Guidance on Future Test Year

On Jan. 24, the Indiana Utility Regulatory Commission issued its final order in Community Utilities of Indiana Inc. (CUII), Cause No. 44724. Since the Indiana General Assembly enacted IC 8-1-2-42.7 authorizing either the use of a future test year or a hybrid test period in rate cases, the commission has grappled with the interplay between Section 42.7’s requirement that rates be approved based upon projected data and the requirement of IC 8-1-2-6 that rate base include a plant that is actually in service.

CUII is the first non-settled future test year case, and the commission explained one method for how rates, over the course of the future test year, can reflect plant that is actually in service. Rates approved in the Order reflect projections of all components of rate base through the end of the future test year, and not just those particular major plant additions identified by the petitioner in evidence. In CUII’s case, its projected rate base serves as a cap. CUII is required to file an updated tariff, a certification as to the plant that has actually been placed in service, and detailed plant accounting information. Other parties are provided an opportunity to conduct discovery and request a hearing. This methodology is similar to one that had previously been approved as a part of a settled future test year rate case.


© 2020 BARNES & THORNBURG LLPNational Law Review, Volume VIII, Number 32


About this Author

Jeffrey M. Peabody Corporate and Energy Law Attorney Barnes Thornburg Law Firm Indianapolis

Jeffrey M. Peabody is a partner in the Corporate and Government Services and Finance Departments in Barnes & Thornburg LLP’s Indianapolis office.

Mr. Peabody’s practice area is focused on electricity, natural gas, water and wastewater utilities. He represents a wide range of public utilities, including investor-owned utilities, not-for-profits, municipal utilities, and privately held companies. He represents utilities in rate cases, periodic rate adjustment (tracker) proceedings, environmental compliance matters and other filings before the Indiana Utility...

Nicholas Kile, Barnes Thornburg Law Firm, Indianapolis, Environmental and Litigation Law Attorney

Nicholas K. Kile is a partner in Barnes & Thornburg LLP’s Indianapolis, Indiana office. He practices primarily in the Governmental Services Department. He represents utilities and local governments in all facets of utility law, including utilities that are regulated in whole or in part by the Indiana Utility Regulatory Commission and those that are not. Mr. Kile’s practice includes rates and charges, bond issuances, acquisitions, privatizations, lobbying, environmental regulation, annexation, condemnation, territorial disputes, zoning, litigation, main extension agreements, cable television, franchising and other operating authority, and appeals. He regularly practices before the Indiana Utility Regulatory Commission and the Indiana Department of Environmental Management.

Mr. Kile received his B.A. cum laude from Butler University in 1987 with highest honors in accounting. In 1990 he was awarded his J.D. summa cum laude by Indiana University School of Law – Bloomington, where he graduated first in his class and served on the Indiana Law Journal. After graduation, he served as law clerk to the Honorable Jesse E. Eschbach, senior circuit judge of the United States Court of Appeals for the 7th Circuit, from 1990 to 1991. Mr. Kile joined the firm in 1991. He served as an adjunct professor in the College of Business of Butler University from 1993 through 1999. Mr. Kile is listed in The Best Lawyers in America® in the area of Energy and Water. 

Teresa Morton Nyhart Corporate and Energy Law Attorney Barnes Thornburg Law Firm Indianapolis

Teresa Morton Nyhart is a partner in the Indianapolis office and a member of the Corporate Department. She is also co-chair of the firm's Energy, Telecommunications and Utilities Practice Group, which was the only Indiana firm ranked Tier 1 on U.S. News-Best Lawyers Best Law Firms 2017 list in Indianapolis for energy law. Her practice concentrates on the energy, telecommunications and video/cable industries. She also works with consumers in the negotiation of customer specific contracts and related matters; with developers, property owners and universities; and with...

Hillary Close Utility Law Attorney

Hillary Close advises on utility law. Her practice combines experience working with clients across utility industries and practical subject matter knowledge with innovative ideas in applying complex and ever-changing regulations to everyday decisions. Hillary is committed to adding value in everything she does, and dedicated to finding cost-conscious solutions for those she serves.

Hillary represents energy, water and wastewater utilities, local governments and other business entities, with a primary focus on utility regulatory matters before the Indiana Utility Regulatory...

Parvin Price, Barnes Thornburg Law Firm, Indianapolis, Government Services attorney, Finance Department lawyer

L. Parvin Price is a partner in the Indianapolis office of Barnes & Thornburg LLP. He is member of the Government Services and Finance Department and the Energy, Telecommunications and Utilities Practice Group.

Mr. Price focuses his practice primarily on utility and energy-related matters including natural gas, electricity and water. He also assists clients in the funding of various infrastructure improvement projects. Mr. Price represents investor-owned, cooperatively owned, or municipally owned utilities, as well as industrial or wholesale...