The state agency that represents utility consumers was victorious in its effort to keep water rates low for local homes and businesses, while also making sure a Greenwood-based water company has money to make some proposed improvements.
What you pay will go up, but nowhere near as high as what was initially proposed by the water company that serves Johnson County residents.
A final decision was reached by the Indiana Utility Regulatory Commission this week, months after it was expected, regarding a rate hike proposed by Greenwood-based Indiana American Water.
Water rates will increase less than 1 percent this summer, and an additional 6.3 percent next summer.
Water bills for most residential customers using 4,000 gallons of water each month will go up about 34 cents per month this year, and an additional $2.22 per month next year.
Water bills just went down last summer due to the Federal Tax Cuts and Jobs Act of 2017.
A typical Johnson County household now pays, on average, about $35 per month for water, down from $36.63 in July 2018. Now, the average monthly water bill will jump to $35.34 come Monday, and to $37.56 in July 2020.
Last September, Indiana American Water, which serves about 32,000 customers in Franklin, Greenwood, New Whiteland and several townships, asked the state to approve a rate hike that would have increased the typical residential water bill by $5.60 per month when fully implemented in 2020.
Initially, the Indiana Office of Utility Consumer Counselor recommended the commission deny the 17.5 percent hike that would have hit home and business owners next month, bringing in an additional $38.8 million for the company. Based on the agency’s research, rates should have actually been lowered about 7.6 percent, the OUCC said previously.
Through negotiations, the two eventually reached a deal that will have a small impact on consumers’ pocketbooks right away, and a bigger impact next year.
Indiana American Water will still bring in an additional $17.5 million in annual revenue, enough to fund some of the capital projects the water company says it desperately needs.
The company argued an increase was needed to support hundreds of millions of dollars worth of capital projects. Johnson County projects include $14 million to replace or relocate water mains and hydrants, $4.2 million to install new meters and service lines and $15 million to improve pumping, treatment, storage and operations facilities, the company said previously.
The company also wanted to spend $45 million to demolish and rebuild a water treatment plant in Richmond, but the OUCC said the plant can be renovated for about $10 million. Improvements to a Muncie treatment plant should cost about $5 million less than the company is proposing, the OUCC said.
By law, the public had a say in the rate hike, which is where the OUCC came in. The Indiana Utility Regulatory Commission reviewed the request and conducted a public hearing before making a decision.
