Indiana American Water reaches settlement agreement on rate request
Yesterday, Indiana American Water announced an all -party settlement agreement regarding its rate request with the Indiana Utility Regulatory Commission (IURC) . The agreement is subject to approval by the IURC. Indiana American Water has invested more than $542 million in its water systems across the state to ensure reliable service to its customers. The agreement includes a 7.9 percent overall increase in operating revenues, primarily based on that investment. If approved by the IURC, the increases to water rates will be implemented in steps, with the first increase this summer of 1.73 percent and a second increase in mid-2020 of 6.07 percent. The impact for most residential customers using 4,000 gallons of water each month would be about 15 cents per month (0.4 percent) after step 1 goes into effect and an additional $2.26 per month (6.4 percent) when the second step is implemented. Details on specific rate impacts by district, rate group and customer class will be included in the IURC’s final rate order.
The settlement agreement provides for a low-income pilot program in three communities served
by Indiana American Water to evaluate the effectiveness, interest and impact of the program
before considering a statewide program. If approved as submitted, qualified residential customers with a 5/8” meter in the pilot communities will receive a discount of 80 percent of the fixed 5/8” meter charge every month. The agreement also includes a one-time refund to be distributed to customers over a twelve month period starting in July 2020 related to the Tax Cuts and Jobs Act (TCJA) of 2017. The refund for the typical residential customer will total approximately $19.26, or approximately $1.60 per month for one year. Indiana American Water already reduced its rates by 4.4 percent on August 1, 2018 as a result of the impact of the TCJA. A final order from the IURC is expected by mid-2019.
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