Financing of water and wastewater utility assets.

Provides that the IURC may approve periodic tracking mechanisms for water or wastewater utilities to permit such utilities to recover the following: (1) Changes in property taxes. (2) With respect to customers located within the geographic boundaries of local units of government, incremental costs of operation and maintenance resulting from policies or ordinances that are adopted by those local units and that the IURC determines to be unusual but not necessarily unreasonable. Requires the IURC to adopt rules to define what is unreasonable with respect to road cut permits and other specifications or policies established by a local unit that imposes costs on water or wastewater utilities. Amends the statute concerning wholesale water sales between small water utilities by increasing from 5,000 to 8,000 the threshold number of customers served by a water utility (as either a purchaser or supplier) for purposes of the statute. Amends the statute governing infrastructure improvement charges for water or wastewater utilities as follows: (1) Specifies that an "eligible infrastructure improvement" includes: (A) a project to relocate existing utility plant, including projects to accommodate the construction, reconstruction, or improvement of a highway, street, or road; and (B) a project that does not increase revenues by connecting to new customers, even if the project provides greater available capacity with respect to an eligible utility's distribution or collection plant. (2) Sets forth distinctions for public utilities, municipally owned utilities, and not-for-profit utilities with respect to: (A) costs that are eligible for recovery under the statute; (B) the factors the IURC may consider in determining the amount of allowable cost recovery; and (C) the resetting of the adjustment amount after a base rate case. (3) Specifies that the limitation restricting total adjustment revenues to 10% of an eligible utility's most recently approved base revenue level does not apply with respect to property taxes associated with eligible infrastructure improvements. Amends provisions in the Indiana Code chapter concerning a utility company's acquisition of an offered water or wastewater utility, by providing that the rates charged by the acquiring utility company are not considered to increase unreasonably as a result of the acquisition if the net original cost of the acquired assets does not exceed 2% of the acquiring utility company's net original cost rate base as determined in the acquiring utility's most recent general rate case, plus any adjustments to the rate base resulting from: (1) an infrastructure improvement charge; or (2) an adjustment rider for service enhancement improvement costs; that have occurred after the rate case. Makes a similar change to the Indiana Code section concerning the sale of a municipally owned utility's nonsurplus utility property.