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because the Sewage Works has always been under the local jurisdiction, that you have the expertise and the commitment to make the right decisions on the Sewer side. So what you get is regulation on a utility just because it's water. Through that process, it's important to know that the rules of how you set rates in Indiana are not set by the IURC— they're enforced by the IURC. The rules are specified within State statute. So, whether you're in or out, the rules remain the same. The way the process happens is, there is a local procedure for adopting your rates that have to abide by State statute. You go through that process —and it is an involved process —and you certainly, as the elected representatives of the community, take that responsibility very seriously and you evaluate the process that's done on a local level. When you're comfortable with that, you will adopt an ordinance saying that you believe that the proper legal rates for the one utility are what is reflected in the rate ordinance. Under the majority of the utilities in Indiana, the process is then complete. When you're a regulated utility, the process starts over again at the IURC, in which we will prepare a second report substantiating the decisions that were made at the local level, submitted to the IURC. The IURC will use this staff and the Office of Utility Consumer counsellor staff and replicate the study. They will come up with their recommendation. Then there will be a proceeding in front of an administrative law judge in which both sides will present their basis for the rate increase, and it will ultimately be in order. Let's say you adopt the ordinance this evening —it's going to add nine (9), ten (10) months to the process, plus the expense of a second report, plus the expense of the IURC and OUCC report, and then the time factor that's involved. What you get, at the end of the day, is a confirmation of the decisions that you have thoroughly investigated before acting on the local level. That's a pretty expensive cost of regulation. Now, I have one more thing. When you are a utility that exists for the purpose of making a profit —and I'm not knocking investor -owned utilities —but they exist with the idea of earning a profit at the end of the day. There needs to be somebody watching over them to make sure that that profit is reasonable. That would be your INM's, your NIPSCO's, your telephone companies. And that, going back to where I started, is the majority of the country's perspective on what utilities should be regulated at the State agency level and which shouldn't. Committeemember Davis asked, Who makes up the board of the IURC and who appoints them? Mr. Julien responded, The five (5) commissioners, I believe, and it's a combination of the Governor's Office and the General Assembly, I think. Committee Chair Dr. David Varner informed those present that there were five (5) minutes left to the meeting. The Committee discussed dates for the continuation of the bill. Committeemember Dr. Varner requested that Mr. Horvath got back to the Council regarding whether or not the Administration would be okay with the pilot cap as part of the agreement, and regarding what other alternatives with which it might be good. He stated, We will have to meet early in January. Committeemember Oliver Davis made a motion to continue Bill No. 66 -16 until January 91n 2017 and Committeemember Regina Williams- Preston seconded, which carried by a voice vote of four (4) ayes. 0J