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
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 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
A final order from the IURC is expected by mid-2019.
About Indiana American Water
Indiana American Water, a subsidiary of American Water (NYSE: 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,