The Whiteland Town Council at its April 18 meeting. The council decided to intervene on a proposed 49% rate increase from Indiana American Water.
Daily Journal File Photo
Whiteland could see a 49% increase in its rates to purchase water from Indiana American Water. The town plans to fight to negotiate that rate hike down.
The Greenwood-based utility filed a rate adjustment request with the Indiana Utility Regulatory Commission, or IURC, on March 31. 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 serves residential customers and sells its water at a wholesale price to municipalities that still operate their own utilities, including the town of Whiteland. With this proposed rate increase, Whiteland and other towns and cities who buy IAW, could see a 49% increase in rates.
Whiteland filed a petition to intervene on the rate increase with the IURC on May 4, and the motion was granted Friday. The town is represented in the case by Williams Barrett & Wilkowski, a law firm that provides legal services to the town already.
The Whiteland Town Council approved going forward with the intervention at its April 18 meeting. All members agreed they could not afford to eat the price increase or pass all of it along to residents.
“I would say that 49% is a bit of a kick in the teeth,” said Joe Sayler, council president. “… I don’t know that we can sit back and eat 49%. I’d say fight it.”
This not the first time the town has had to intervene on a rate increase from Indiana American Water. In 2018, when the utility company last raised its rates, the proposed increase for Whiteland was 25% at the time. The town and others intervened and negotiated that increase down to 8%, said Stephen Watson, town attorney.
“We can’t say our participation was the sole cause of that being negotiated down. But our involvement helps, certainly,” Watson said. “If you’re not at the table, you’re on the menu.”
In 2018, Whiteland spent about $60,000 in legal fees and sharing the cost for expert witnesses for the intervention, Watson said. But that ultimately resulted in the town saving around $200,000 in water costs over the last four years.
The cost Watson estimated this time for the witnesses is around $140,000, which will again be split with the other participating municipalities. Other municipalities intervening are Crown Point, Sullivan-Vigo Rural Water Corp. and Shererville.
The first evidentiary hearing is set for Aug. 31.
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.
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. 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.
