Sec. 7. As used in this chapter, "service enhancement improvement" means an expenditure that is either of the following:
(1) Made, or to be made, by an eligible utility and related to:
(A) direct or indirect compliance with one (1) or more requirements; or
(B) installation of a new plant or equipment:
(i) that is not a replacement plant or equipment; and
(ii) that the commission determines is reasonable and appropriate to further health, safety, or environmental protection for the eligible utility's customers, employees, or the public.
(2) Replacement of a plant or equipment to maintain existing health, safety, or environmental protection for the eligible utility's customers, employees, or the public.