The public will have an opportunity to submit feedback through July 5 regarding a proposed rate hike being sought by Indiana American Water.
The Indiana Office of Utility Consumer Counselor, the state agency representing consumer interests in cases before the Indiana Utility Regulatory Commission, said in a statement that it is reviewing Indiana American Water’s proposal and is scheduled to file testimony with the IURC on July 12. Earlier this year, the utility company said it was seeking to increase revenues over a three-step process through May 2025 that would result in $86.7 million of additional annual revenue when fully implemented.
The company said if the proposed rates were approved, a bill for a residential customer using 4,000 gallons would increase about $14 a month when rates are fully implemented. Indiana American Water last filed for new rates in September 2018 and last implemented new rates in 2019, officials said.
Officials said the request with the IURC reflects $875 million in water and wastewater system investments, as well as an increase in the cost of procuring chemicals, goods and services. The company said increases for residential wastewater customers will vary depending on the community served.
The OUCC said in a statement that Indiana American Water’s capital projects include the replacement of aging infrastructure throughout its service territories, main replacements and relocations, new meters and hydrants, proposed new treatment plants in Winchester and Sheridan, a new storage tank in West Lafayette, chlorine conversion for its Northwest Indiana and Shelbyville operations,customer lead service line replacements,security measures, and additional projects.The utility’s request also includes the recent costs of acquiring smaller utilities throughout Indiana, according to officials.
Under the utility’s request, increases would take effect in January 2024, April 2024, and April 2025. Specific billing impacts would vary by service area, according to the OUCC.
Officials also said earlier this year that it recognizes affordability may still be an issue for some customers. The company is proposing a new rate design that provides 1,500 gallons of water usage at no additional cost above the fixed monthly customer charge for all water customers, officials said.
The proposed change would provide relatively low-cost basic water service for customers on fixed incomes that use a lower volume of water than the typical residential customer, officials said.
Individuals who wish to submit written comments may do so by visiting the OUCC’s website at in.gov/oucc/2361.htm, via email at uccinfo@oucc.IN.gov or by mail at the following address: Public Comments, Indiana Office of Utility Consumer Counselor (OUCC), 115 W. Washington St., Suite 1500 South, Indianapolis, IN 46204.
Comments should include the consumer’s name, mailing address, and a reference to either “IURC Cause No. 45870” or Indiana American Water Rates. For questions about submitting comments, call 1-888-441-2494.
Updates about the rate case can be found by visiting in.gov/oucc/watersewer/key-cases-by-utility/indiana-american-water-co-rates/.