Costs of Distribution System Extensions Beyond Corporate Limits in Northern Indiana

Abstract

factors involved in the extension of utility facilities into areas beyond the corporate limits of municipalities have caused a serious problem to utility companies, especially in recent months. Requests for utility service into such outlying areas have been caused largely by the growth of such areas due to accompanying industrial growth in the community, to the desire of people to obtain lower cost of real estate, and to the lower taxes prevailing in these areas; and, although many people are moving out of urban areas for these reasons, they still demand metropolitan service there despite the fact that, in many cases, permanent street grades, sewers and street improvements are not yet available. These factors have, of course, placed the utilities in an embarrassing position. In this same connection, similar problems have been created in a number of cases where municipalities have annexed sparsely occupied territory in a race with other municipalities to maintain their municipal growth and stability. This has been especially true in certain areas in northern Indiana, close to the industrial centers south of Lake Michigan. The experience described here will refer principally to a case of this latter type in which the Northern Indiana Public Service Co. was involved.