Indiana American Water requesting rate increase
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Greenwood-based Indiana American Water on Friday filed a rate increase request with the Indiana Utility Regulatory Commission. The utility said the increase would support $875 million in water and wastewater system improvements to be made through 2025.
Additionally, the increase will help offset the “significant increase” in the cost of procuring chemicals, goods and services, IAW said.
In its filing with the IURC, the utility said it seeks to increase rates over a three-phase process through May 2025. If approved, the average residential customer using 4,000 gallons of water per month would see a $14 increase in their monthly bill once the rate adjustment is fully implemented in 2025.
The increases for residential wastewater customers would vary among each community in the utility’s service area.
IAW said the increase as proposed would result in $86.7 million in additional annual revenue.
“Indiana American Water has made significant investments in aging infrastructure and its treatment and distribution facilities to ensure service reliability, water quality, and fire protection capabilities that help protect customers and the communities we serve,” Indiana American Water President Matt Prine said in a news release. “We also remain steadfastly committed to addressing the needs of our most vulnerable customers and have included components in our request to keep their rates affordable.”
IAW said as part of its proposal, it plans to implement a new rate design it says provides 1,500 gallons of water usage at no additional cost above the fixed monthly charge for all water customers.
The utility’s filing also includes a proposed University Affordability Tariff that could provide monthly bill discounts between 30%-80% depending on the different levels of household income.
Indiana American Water did not provide an estimated timeline for a decision from the IURC.