IURC News Release

Indiana Utility Regulatory Commission ††††††††††††††††††††††††††††††† ††

302 West Washington Street, Room 306†††††††††††††††††††††††††††††††††††††††† ††

Indianapolis Indiana46204††††††††††††††††††††††††††††††††††††††††††††††††† ††

317.232.2297 office

317.233.1982 fax

www.state.in.us/iurc

 

Contact:Mary Beth Fisher

 

For Immediate Release

November 6, 2002

 

IURC ADJUSTS RATE REQUEST OF INDIANA AMERICAN

 

Today, the Indiana Utility Regulatory Commission approved a rate adjustment for customers of Indiana American Water.

 

In Cause No. 42029, the Commissioners authorize a two-step process; determining that the third step proposed by the company is not necessary.Overall, the company is allowed to increase rates 3.97% in Step 1 and 6.10% in Step 2.The increase approved by the Commissioners is significantly less than the company wanted, and in some areas of the state there is actually a rate decrease.The adjustment of the increase is due to the IURCís denial of acquisition premiums the company requested for its purchase of Northwest, United, Cementville, the Peoples Water Company, and Shorewood Forest Utilities.

The following chart shows the impact on customers.

 

PERCENTAGE CHANGE FOR EACH STEP BY SERVICE AREA

 

 

Step 1

Step 2

Group 1: Kokomo, Muncie, Richmond, Seymour, Summitville, and Wabash Valley.

-0.73%

1.35%

Group 2: Crawfordsville, Johnson County, Noblesville, and Southern Indiana.

Group 3: Newburgh and Shelbyville.

Wabash

14.94%

0.00%

Total Sewer

50.83%

0.00%

Northwest

18.11%

20.20%

Mooresville

7.57%

0.00%

Warsaw

-2.24%

0.00%

West Lafayette

-3.08%

0.00%

Winchester

24.02%

0.00%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Testimony before the Commission confirmed that the existing tunnel in Northwest Indiana is near the end of its remaining service life and should be replaced.The project entails the replacement of the water intake tunnel that supplies the Borman Park Treatment Plant, which was built in 1908. The new rate calculation for customers in Step 1 and Step 2 for Northwest Indiana reflects the cost of the proposed tunnel project.The Step 2 increase is subject to refund, if the actual project costs are less than expected.

 

Sewer customers will see the largest increase. To ease the burden, the Commission has ordered the rate adjustment to be phased in.

 

The widespread complaints regarding water quality the IURC heard in field hearings across the state cannot be ignored.As a part of this order Indiana American is directed to identify the water quality problems in each area, the corrective measures that need to be taken, and submit an implementation plan to the Commission within 90-days of this order.

Indiana American provides water utility service to approximately 264,000 customers in 21 Indiana counties.Its corporate office is located in Greenwood, Indiana.Indiana American also provides public and private fire service, and sewer utility service in Wabash, and Delaware Counties in Indiana.

 

 

###