Water bills to go up after rate hike OK’d

<p>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.</p><p>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.</p><p>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.</p><p>Water rates will increase less than 1 percent this summer, and an additional 6.3 percent next summer.</p><p>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.</p><p>Water bills just went down last summer due to the Federal Tax Cuts and Jobs Act of 2017.</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p>