170 IAC 6-1.5-40 Special contract

Sec. 40. (a) A utility may require a special contract when: (1) the requested main extension is of such length and the prospective business to be developed by it is so meager as to make it doubtful whether the business from the extension would ever pay a fair return on the utility investment involved in such extension; (2) the prospects are that the patronage and demand will not be of such permanency as to warrant the capital expenditure involved; (3) there are industrial installations requiring extensive water utility investment and where the demand for water service is expected to be slight, irregular, or of unknown quantity; or (4) there are other abnormal or extraordinary circumstances. (b) The utility and the applicant requesting the extension may enter into a special contract establishing the terms and conditions on which the extension will be made. In the event they are unable to agree on the terms and conditions, the matter, including the contract embodying the terms and conditions, shall be submitted to the commission for determination.