Indiana Utility Regulatory Commission will hold a hearing Monday in Indianapolis to discuss a proposed water rate increase for Indiana American Water customers.
Indiana American Water’s evidentiary hearing begins Monday and may go through Dec. 9, if necessary, according to Danielle McGrath, manager of external communication for Indiana Utility Regulatory Commission.
On May 2, Indiana American Water filed a request with the Indiana Utility Regulatory Commission that, if approved, would change rates for the water service in all of the company’s operating districts.
If approved as submitted, the typical Warsaw residential customer using 4,800 gallons of water per month would see their monthly billing increase approximately $12.39 per month, or 41 cents per day, according to McGrath.
The proposal also seeks to move Warsaw into the Area One tariff, which contains most of the company’s customers around the state.
The proposed monthly bill for a typical customer using 4,800 gallons per month in this rate group and including the public fire protection surcharge is $42.87.
No rates will change until the IURC completes a comprehensive review of the request and determines it is reasonable and justified.
If approved as requested, the typical Warsaw residential monthly water bill would increase by 40.65 percent.
Other areas in the state that will be reviewed Monday are a possible 23 percent water rate increase for Mooresville, Wabash and Winchester; a proposed 6.19 percent increase for Northwest Indiana; and a proposed 61 percent water rate increase for West Lafayette.
During evidentiary hearings, the parties present evidence and witnesses are cross-examined. All testimony is filed with the IURC and is available online through its Electronic Document System at https://myweb.in.gov/IURC/eds/ The docket number for this case is 44022.
The public is represented by the Office of Utility Consumer Counselor, a separate state agency from the IURC. For more information on the charge of the OUCC, visit www.in.gov/oucc
Parties to the Indiana American Water rate case are Indiana American Water Office of Utility Consumer Counselor, City of West Lafayette, Crown Point Municipal Water, Indiana-American-Industrial Group and Schererville Municipal Water Works.
Non-residential customers can learn more about the impact to their bills by calling Indiana American Water’s customer service center at 800-492-8373.
As a regulated utility, it is the obligation of Indiana American Water to provide quality service at a reasonable cost, McGrath said.
Rate requests are thoroughly reviewed by the state’s consumer advocate, the Indiana Office of the Utility Consumer Counselor, and the IURC, which will ultimately determine if the proposed rates are reasonable and justified and the amount of any rate adjustment.
The IURC’s review process takes approximately one year and includes numerous opportunities for input from customers. Copies of the data used to support the rate request (cause number 44022) are available on the IURC’s website at www.in.gov/iurc
The rates that Indiana American Water has requested are based on the actual cost of providing water service.
More than 60 percent of the revenue requested is related to capital expenditures made throughout the state from June 30, 2009, to June 30, 2011 – an investment of more than $115 million.
Water and wastewater projects include the replacement and installation of new water lines, meters and hydrants, as well as improvements at water treatment, pumping, storage and office facilities.
Indiana American Water has invested more than $25 million in water infrastructure in Warsaw since its last rate case when a major project was completed that included building a new water treatment facility and making numerous system improvements to the district’s distribution system.
Prudent investment in the system helps to ensure quality water service by reducing the frequency of service interruptions, preventing property damage from water main breaks and enhancing fire protection.
Indiana American Water President Alan DeBoy said in a press release, “Indiana American Water’s strategy is to make prudent, proactive infrastructure investments, which is more cost-effective in the long run and reduces the risk of major service and water quality issues.”
“Much of this rate request is driven by Indiana American Water’s investments to maintain and upgrade infrastructure throughout the state.”
