Indiana American Water has asked state regulators for a rate increase to help offset $875 million in investments.
The Greenwood-based utility filed a rate adjustment request with the Indiana Utility Regulatory Commission, or IURC, last Friday. Indiana American Water, or IAW, is the largest investor-owned water utility in the state, providing water and wastewater services to approximately 1.4 million people. The utility last filed for new rates through a general rate filing in September 2018 and last implemented new rates in 2019.
The rate increase request reflects the utility’s plans for $875 million in water and wastewater system investments to be made through 2025 to continue providing safe and reliable service. It also reflects a significant increase in the cost of procuring chemicals, goods and services, according to an IAW news release.
“Indiana American Water has made significant investments in aging infrastructure and its treatment and distribution facilities to ensure service reliability, water quality, and fire protection capabilities that help protect customers and the communities we serve,” said IAW President Matt Prine. “We also remain steadfastly committed to addressing the needs of our most vulnerable customers and have included components in our request to keep their rates affordable.”
IAW is seeking to increase revenues over a phased, three-step process through May 2025 that would result in $86.7 million of additional annual revenue when fully implemented. If the company’s proposed rates are approved as requested, the bill for a typical residential customer using 4,000 gallons per month would increase by approximately $14 per month when rates are fully implemented in 2025.
The increases for residential wastewater customers will vary depending on the community served. Additional information on current rates is available on the utility’s website at amwater.com/inaw/customer-service-billing/your-water-rates.
IAW acknowledges that affordability could be an issue for some customers, so 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. 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 say.
The rate adjustment filing also includes a proposed Universal Affordability Tariff to provide multiple tiers of discounts to address the affordability needs of different levels of household income. Under the new rate structure, eligible households would receive monthly bill discounts of between 30-80% for water service, according to the news release.
Results of a customer affordability study conducted as part of the filing show that the affordability of the company’s water and wastewater services as a comparison of monthly bills to monthly household income has steadily improved over the past decade and will remain affordable under the company’s proposed rates, IAW officials say.
The IURC’s rate review process offers multiple opportunities for customers to get involved. Customers can participate through written comments, attendance at public input hearings, and consumer advocacy organizations that participate in the proceedings. For more information on the company’s rate proposal and to find out what actions customers may take, customers can go to amwater.com/inaw/customer-service-billing/your-water-rates.
For customers facing financial hardship, the utility offers payment plans and budget billing. They also provide information to customers about the Low-Income Household Water Assistance Plan, or LIHWAP. More information can be found by clicking on the Low Income Program link under the Customer Service & Billing heading on the company’s website.
For tips on how to reduce water bills by conserving water, people can visit IAW’s Wise Water Use page at amwater.com/inaw/Water-Wastewater-Information/wise-water-use.
