GREENWOOD, Ind.--(BUSINESS WIRE)--
Indiana American Water today announced an all-party settlement agreement regarding its rate request with the Indiana Utility Regulatory Commission (IURC). The agreement is subject to approval by the IURC.
“We have made significant investments in aging infrastructure over the last several years to ensure service reliability, water quality and fire protection for our customers across the state, while holding our operating and maintenance expenses relatively flat,” said Indiana American Water President Deborah Dewey. “At the same time, we have maintained top-quartile customer service, enhanced our water quality and environmental compliance record, and reduced water loss in our distribution system.”
Indiana American Water has invested more than $542 million in its water systems across the state to ensure reliable service to its customers. The agreement includes a 7.9 percent overall increase in operating revenues, primarily based on that investment. If approved by the IURC, the increases to water rates will be implemented in steps, with the first increase this summer of 1.73 percent and a second increase in mid-2020 of 6.07 percent. The impact for most residential customers using 4,000 gallons of water each month would be about 15 cents per month (0.4 percent) after step 1 goes into effect and an additional $2.26 per month (6.4 percent) when the second step is implemented. Details on specific rate impacts by district, rate group and customer class will be included in the IURC’s final rate order.
“We appreciate the willingness of the interested parties in this proceeding to work toward and reach a negotiated settlement in this case,” continued Dewey. “The terms included in this agreement are both reasonable and fair and in the best interests of our customers across the state.”
The settlement agreement provides for a low-income pilot program in three communities served by Indiana American Water to evaluate the effectiveness, interest and impact of the program before considering a statewide program. If approved as submitted, qualified residential customers with a 5/8” meter in the pilot communities will receive a discount of 80 percent of the fixed 5/8” meter charge every month.
The agreement also includes a one-time refund to be distributed to customers over a twelve-month period starting in July 2020 related to the Tax Cuts and Jobs Act (TCJA) of 2017. The refund for the typical residential customer will total approximately $19.26, or approximately $1.60 per month for one year. Indiana American Water already reduced its rates by 4.4 percent on August 1, 2018 as a result of the impact of the TCJA.
A final order from the IURC is expected by mid-2019.
About Indiana American Water
Indiana American Water, a subsidiary of American Water (AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 1.3 million people. With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 7,100 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to more than 14 million people in 46 states and Ontario, Canada. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.