Local Indiana American Water customers will soon see another change in their bills.
This time, bills are expected to go down a little more than $1 a month, according to an Indiana American Water news release.
The change is the result of the resolution of certain accounting issues related to the Tax Cuts and Jobs Act of 2017, according to the news release. The Indiana Utility Regulatory Commission issued an order last week approving a settlement agreement between the Greenwood-based water company, the Indiana Office of Utility Consumer Counselor and other interested parties on several accounting issues related to the TCJA, the news release said.
“Although it has taken some time to sort out the impacts of federal tax reform enacted in 2017, we are pleased to share some good news with customers during a time when many are facing financial challenges related to the COVID-19 public health emergency,” said Matt Prine, the company’s president.
The decrease is in addition to a one-time adjustment to customers that is already being implemented and spread out over a 12-month period as a credit on customer bills and a previous TCJA-related decrease of 4.4% implemented in August 2018, according to the news release.
This comes two months after water bills for most residential customers using 4,000 gallons of water a month went up about $2.22 per month. Last summer, bills went up another 34 cents per month. The company received approval from the Indiana Utility Regulatory Commission in 2018 to increase water rates for its customers in two phases, starting in June 2019.
After the increase last year, a typical Johnson County resident paid about $35 per month in water bills. That average jumped to more than $37 in May, and will now retreat to about $36 a month.
Indiana American Water has said it would use the additional income to invest $542 million into water infrastructure improvements to increase water quality and system reliability, capacity and safety.
About $79 million of that was invested at three treatment facilities to, among other things, add ultraviolet disinfection, which adds an extra layer of protection against chlorine-resistant microbes, viruses and pathogens that may be present in surface water sources, an earlier news release said.
Other projects included replacing or updating various aging water facilities and replacing 120 miles of aging water main, according to that news release.
More than $33 million is being invested in Johnson County, company spokesperson Joseph Loughmiller said last month.
Of that investment, $14 million went to replace or relocate hydrants and nearly 14 miles of water mains; more than $4.2 million to install new meters and service lines; and more than $15 million for improvements to pumping, treatment, storage and operations facilities.
Major projects in the county included converting the existing chlorine gas disinfection system at water treatment facilities to improve safety, replacing two 20-year-old emergency backup generators at treatment and pumping facilities, replacing the West Tank pump station and installing two new wells to replace existing wells that are nearly 50 years old.
