Your Water Rates

Water-service rates are based on the real costs of treating and delivering water to customers, and are regulated by state public utilities commissions (PUCs). 

To determine rates, we work with PUC staffs to study costs of construction, maintenance, operation, administration and financing. Once the studies are complete, the company and PUC present any differing conclusions before an administrative law judge. Based on the judge’s opinion, the PUC sets the water rates.

Rates charged for service may vary based on a customer’s meter size. All customers pay the same rate for water usage. Customers are billed based on a regular meter reading, either monthly or quarterly for residential customers as well as for commercial and other public authority customers.

Rates can vary based on the cost of providing service in each of the communities we serve. Before it reaches your home or business, water is treated through an intricate treating and testing process to help ensure it meets or surpasses rigorous drinking water quality standards.

You can learn more about the rate setting process in our white paper: Challenges In The Water Industry: The Rate Approval Process.

Indiana American Water Rates

Tax Cuts and Jobs Act (TCJA) of 2017 notice – The Indiana Utility Regulatory Commission issued an order on June 24, 2020 approving a settlement agreement between Indiana American Water, the Indiana Office of Utility Consumer Counselor (OUCC) and other interested parties on several accounting issues related to the TCJA.

The decrease, which amounts to approximately $1.04 per month (2.77 percent) for a residential customer using 4,000 gallons per month, is the result of the resolution of certain accounting issues related to the TCJA. 

The decrease is in addition to a one-time adjustment to customers that is already being implemented and spread out over a twelve-month period as a credit on customer bills and a previous TCJA-related decrease of 4.4 percent implemented in August 2018.

Information on Indiana American Water's Rate Request, Settlement Agreement & Order - Cause No. 45142

Indiana American Water filed a petition with the Indiana Utility Regulatory Commission (IURC) on September 14, 2018 to adjust its rates for water service in the communities it serves across the state. A settlement agreement was reached between the company and the Indiana Office of Utility Consumer Counselor (OUCC) and several other interested parties on March 18, 2019. The IURC approved that settlement agreement and issued an order on June 26, 2019 adjusting the company's rates and tariffs for water service across the state. Step 1 of the rate adjustment was implemented on July 1, 2019. Step 2 was implemented for all water service after May 1, 2020.

Indiana American Water’s ongoing infrastructure investments are the primary driver behind the increase. The company included $542 million of water infrastructure investments in its request to increase rates. These types of investments are necessary to maintain and enhance service, water quality, system reliability, and fire protection capabilities for customers while keeping the cost of water service for most households their most affordable utility bill at about a penny per gallon.

Prior to its most recent filing in 2018, the company last filed for new rates through a general rate filing in January 2014 and received an order from the IURC in January 2015.

To learn more about the filing and the settlement agreement, you can view a news release with more details. You can learn about the IURC's approval/order on the rate request by viewing a news release that is posted on the company's website. Information on the Step 2 increase is available online in the News area of our website. You can also view information about the rate request at the Indiana Utility Regulatory Commission's Online Services Portal for Indiana American Water's docketed case.

Step 2 Adjustment Bill Messages

Bill messages were placed on customer bills starting in May 2020 regarding changes to your bill that were effective on May 1, 2020. The messages include information on implementation of the second step of a two-step increase in rates approved by the Indiana Utility Regulatory Commission on June 26, 2019. The bill messages also include information on a one-time adjustment to customers reflecting the amount collected in revenues after the Tax Cuts and Jobs Act (TCJA) of 2017. The adjustment will be spread out over a twelve-month period as a detailed credit to any amounts due each month. 

Step 2 Adjust Bill Messages

Information on Indiana American Water's filing to update its connection fee tariffs

The Company is seeking approval to update its Connection Fees to include the additional cost from the tax on such fees established in the 2017 Tax Cuts and Jobs Act (“TCJA”).  In accordance with the TCJA, effective January 1, 2018, utilities including Indiana American Water will have to begin paying incomes taxes on monetary contributions including connection fees. A copy of the Tax Gross Up on Connection Fees legal notice is available on our website. You can also view information about the rate request at the Indiana Utility Regulatory Commission's Online Services Portal by searching for "Indiana American Water" in the "Utilities" box at this location:https://iurc.portal.in.gov/search-thirtyday-cases/

Information on Indiana American Water's Filing to establish a fire protection surcharge in Summitville

The Company has received approval from the Indiana Utility Regulatory Commission to establish, in lieu of directly billed hydrant charges, public fire protection surcharges in the Town of Summitville, based on the directly billed hydrant charges Summitville would pay pursuant to the currently applicable rates. This charge is effective for all service after May 1, 2020. A copy of the Summitville fire protection surcharge legal notice is available on our website. You can also view information about the Summitville fire protection surcharge filing at the Indiana Utility Regulatory Commission's Online Services Portal.