Local water company raises rates by nearly 6%

Local Indiana American Water customers will pay, on average, about $2 more starting this month.

Water bills will increase as part of a Greenwood-based water company’s two-step plan to invest more money in improvements, including millions of dollars in Johnson County.

Indiana American Water received approval from the Indiana Utility Regulatory Commission in 2018 to increase water rates for its customers in two-phases, starting in June 2019.

The first phase increased rates by nearly 2%. The second increase, which took effect Friday, increased rates by almost 6%, according to an Indiana American Water news release. The total increase is 7.9%, the news release said.

Water bills for most residential customers using 4,000 gallons of water a month will go up about $2.22 cents per month this year, according to the news release. Last summer, bills went up about 34 cents per month.

After the increase last year, a typical Johnson County resident paid about $35 per month in water bills. That average will jump to more than $37 this month.

Indiana American Water will use the additional income to invest $542 million into water infrastructure improvements to increase water quality and system reliability, capacity and safety, according to the news release.

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, the news release said.

Other projects included replacing or updating various aging water facilities and replacing 120 miles of aging water main, according to the news release.

More than $33 million is being invested in Johnson County projects, said Joseph Loughmiller, spokesperson for Indiana American Water. 

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.