The Indiana American Water storage tank along Jefferson Street is seen Thursday in Franklin. The utility recently recieved approval to raise rates through 2025 to offset $875 million in water and wastewater investments.
Noah Crenshaw | Daily Journal
Water rates are increasing for Indiana American Water customers.
The Indiana Utility Regulatory Commission approved statewide base rate adjustments for Indiana American Water on Feb. 14 after an 11-month review process. The rate adjustment request was first filed on March 31, and the new approved rates went into effect on Feb. 21.
Indiana American Water’s request was driven by approximately $875 million in water and wastewater investments the utility has done since the last approved rate adjustment in September 2018, as well as increases in the cost of procuring chemicals, goods and services. The $875 million in water and wastewater investments are expected to made through April 2025, according to a news release.
“By making prudent, ongoing investments to maintain and upgrade our water and wastewater systems, Indiana American Water is committed to providing safe, clean, reliable and affordable water service and fire protection capabilities,” said Matt Prine, the utility’s president. “We are proud to continue to provide high-quality water that protects customers and the communities we serve.”
The IURC order includes a $66.3 million adjustment to existing authorized operating water and wastewater revenues to address the increased investment and expenses. The increase will be implemented through a phased, three-step process through May 2025, the news release says.
The first increase includes an approximately 4% increase to base rates — about $1.69 per month for the typical residential customer using 4,000 gallons a month. It was effective after Feb. 21, said Joe Loughmiller, an Indiana American Water spokesperson.
Prior to the effective date of this step, the old base rate for the area was $44.88 a month for the typical residential customer, Loughmiller said.
A second step increase will go into effect in May and will be about 12%, or $5.69 more a month. The third step will go into effect in May 2025, an increase of about 10%, or $5.14 per month, he said.
Along with the rate adjustment, state regulators also approved 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. This change will allow IAW to provide “low-cost basic water service” for customers on fixed incomes who use a lower volume of water than the typical residential customer, according to the news release.
With the change, the cost for the typical residential water customer using 1,500 gallons will be approximately $20 per month. Any gallons consumed over 1,500 gallons would be billed on volumetric rates, the utility said.
IAW had also proposed a tiered discount for low-income customers, which was backed by the Citizens Action Coalition. This was rejected by the IURC, however.
The proposal was rejected because IAW customers would have borne the cost rather than the utility itself, the Post-Tribune of Merrillville reported.
Increases for residential wastewater customers will vary depending on the community served. More rate information can be found at amwater.com/inaw/customer-service-billing/your-water-rates.
After IAW announced the rate increase, several municipalities asked to intervene in case expressing concern about how the rate increases could affect them. The utility serves residential customers and sells its water at a wholesale price to municipalities that operate their own utilities, including the town of Whiteland. With the initial proposed rate increase, Whiteland and other towns and cities that buy IAW could have seen a 49% increase in rates.
It is unclear how the final rate will affect Whiteland. Officials say they are still reviewing the results of the IURC’s decision and plan to discuss it with the town council later this month.
Customers who are concerned about paying their IAW bills have several options, including payment plans, budget billing and the Low-Income Household Water Assistance Plan. The Low-Income Household Water Assistance Plan is slated to end on March 31, however.
To learn more about saving on IAW bills, go to amwater.com/inaw/customer-service-billing/.
