Indiana American Water filed a rate adjustment request with the Indiana Utility Regulatory Commission (IURC) today, reflecting $875 million in water and wastewater system investments planned through 2025 to ensure safe and reliable service, as well as a significant increase in the cost of procuring chemicals, goods, and services.
In today’s filing, Indiana American Water seeks to increase revenues through a three-step process that would result in $86.7 million more annual revenue when fully implemented. If the company’s proposed rates are approved, the bill for a typical residential customer using 4,000 gallons per month will rise by about $14 per month when rates are fully implemented in 2025.
In September 2018, the company filed for new rates through a general rate filing, and new rates were implemented in 2019.
The results of a customer affordability study conducted as part of the filing show that the affordability of the company’s water and wastewater services has steadily improved over the last decade and will remain affordable under the company’s proposed rates.
Recognizing that affordability may still be a concern for some customers, the company is proposing a new rate structure that includes 1,500 gallons of water usage at no additional cost above the fixed monthly customer charge for all water customers. The proposed change would provide relatively low-cost basic water service to fixed-income customers who use less water than the average residential customer.
The filing also includes a proposed Universal Affordability Tariff, which would provide multiple tiers of discounts to meet the affordability needs of different income levels. Eligible households would receive monthly bill discounts ranging from 30 to 80 percent under the new rate structure for water service.
The IURC’s rate review process provides numerous opportunities for customer participation. Customers can participate by submitting written comments, attending public input hearings, and joining consumer advocacy organizations that are involved in the proceedings.
American Water, which was founded in 1886, is the largest and most geographically diverse publicly traded water and wastewater utility company in the United States. The company employs approximately 6,500 dedicated professionals who serve an estimated 14 million people in 24 states with regulated and regulated-like drinking water and wastewater services.
American Water provides our customers with safe, clean, affordable, and dependable water services to help them keep their lives moving.