Indiana Administrative Code (Last Updated: December 20, 2016) |
Title 170. INDIANA UTILITY REGULATORY COMMISSION |
Article 170IAC15. LANDLORD DISTRIBUTING WATER OR SEWAGE DISPOSAL SERVICE |
Rule 170IAC15-2. Sub-Billing |
Section 170IAC15-2-2. Charges
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(a) A tenant's sub-bill shall be calculated in the following manner:
(1) For water service, as follows:
(A) If the utility charges the landlord for usage measured by a master meter, upon receipt of a utility's water bill, the landlord shall divide the total net charges for water service, plus applicable tax, by the total amount of water master metered to obtain an average cost per unit volume. The average water cost per unit volume shall then be multiplied by the estimated or actual unit volume consumed by each dwelling unit. In no event shall a landlord charge its tenants more than the total net charge for water service.
(B) If the utility charges the landlord for usage that is not measured by a master meter, the landlord shall employ an appropriate method to determine what portion of the total net charge for water service should be attributed to each tenant. "An appropriate method" means a method that reasonably allocates to each tenant a portion of the total net charge for water service less the landlord's own use. Reasonable allocations may be based on a charge per dwelling unit, actual volume of water distributed to each tenant, or estimated volume of water distributed to each tenant. In no event shall the landlord charge its tenants in total more than the total net charge for water service.
(2) For sewage disposal service, the landlord shall employ an appropriate method to determine what portion of the total net charge for sewage disposal service should be attributed to each tenant.
(A) If the utility charges a flat sewage disposal service rate, "an appropriate method" means a method that reasonably allocates to each tenant a portion of the total net charge for sewage disposal service less the landlord's own use. Reasonable allocations may be based on a charge per dwelling unit or a charge based on estimated sewer flow.
(B) If the utility charges a sewage disposal service rate based on water usage, "an appropriate method" means a method that reasonably allocates to each tenant a portion of the total net charge for sewage disposal service less the landlord's own use. Reasonable allocations may use the same percentage for sewage disposal service as calculated for water billing, using the actual volume of water distributed to each tenant or estimated volume of water distributed to each tenant. In no event shall the landlord charge its tenants in total more than the total net charge either for water or sewage disposal service.
(b) A landlord may not charge a tenant for any water or sewage disposal service reasonably attributed to the landlord's usage.
(c) In addition to the charges in subsection (a), a landlord may charge a tenant only the fees permitted by IC 8-1-2-1.2.
(d) A landlord satisfies the provisions in subsections (a) through (c) and the provisions of IC 8-1-2-1.2 if the landlord charges a flat rental fee, assessed at regular intervals, such as monthly or annually, that includes water and sewage disposal service, provided the following:
(1) The lease clearly indicates that water or sewage disposal, or both, service are included in the lease.
(2) The rent amount does not vary throughout the lease period based on water or sewage disposal usage.
(e) Nothing herein should be construed to eliminate or diminish any contractual right a tenant may have with respect to the provision of water or sewage disposal service. (Indiana Utility Regulatory Commission; 170 IAC 15-2-2; filed Mar 31, 2010, 3:18 p.m.: 20100428-IR-170090790FRA; readopted filed Jul 12, 2016, 10:01 a.m.: 20160810-IR-170160168RFA)