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Indiana Office of Utility Consumer Counselor

OUCC > Water/Sewer > Cases of Note > Indiana American Water Co. Rates Indiana American Water Co. Rates

Pending Base Rate Case

The Indiana Office of Utility Consumer Counselor (OUCC), Indiana American Water Company (IAWC), and intervening parties have reached a settlement agreement in the utility's pending rate case. It would allow for a 2.55 percent increase in the utility's annual operating revenues (compared to the 9.8 percent increase IAWC requested in January 2014).

The agreement is pending before the Indiana Utility Regulatory Commission (IURC) which may approve, deny, or modify it.

For a summary, please see the OUCC's news release. The initial agreement is included in IAWC's settlement testimony. The OUCC filed testimony on the agreement on November 21, 2014.

A comprehensive settlement agreement addressing all issues in the case was filed on December 8, 2014.

This page will be updated based on future developments. The IURC public file for the rate case is available by clicking here and entering docket number 44450.

In its litigation position, the OUCC recommended a rate decrease as summarized in the agency's May 5, 2014 news release. The OUCC also issued a March 17, 2014 news release inviting consumer comments and announcing the IURC's April 2014 public field hearings in Franklin and in Gary.



Previous Base Rate Case

The IURC's June 6, 2012 order in IAWC’s last general base rate case (Cause No. 44022) granted the utility a 1 percent increase in its annual operating revenues. IAWC sought an increase of more than 8 percent, with the Indiana Office of Utility Consumer Counselor (OUCC) recommending a rate decrease.

OUCC News Releases:

The IURC public file is available by clicking here and entering docket number 44022.


Distribution System Improvement Charge

In addition to general rate cases, Indiana law (IC 8-1-31) allows investor-owned water utilities to seek rate increases through a mechanism known as the Distribution System Improvement Charge (DSIC). IAWC and other investor-owned water utilities are allowed to seek DSIC cost recovery as often as once per year to replace infrastructure that has exceeded its useful life (aging distribution lines, particularly).

DSIC cases require IURC approval and OUCC review under an expedited schedule.

IAWC’s received a DSIC increase on December 27, 2012 (Cause No. 42351-DSIC 7).

  • The utility requested an increase of more than three percent.
  • The OUCC successfully recommended that a significant portion of IAWC’s request, to pay for new automated meters, be disallowed. According to the OUCC's testimony, the utility’s evidence did not demonstrate the cost of replaced meters that had been in place for at least 10 years. Also, while automated meter reading equipment helps the utility’s billing efforts, it does not enhance water distribution.
  • The IURC's December 27, 2012 order (15 pages) adopted the OUCC’s recommendations and limited the increase to about 2.1 percent.
  • The Indiana Court of Appeals upheld the Commission’s order on August 6, 2013.

IAWC requested an overall rate increase of 2.55 percent in Cause No. 42351-DSIC 8.

The IURC public files for the DSIC cases are available by clicking here and entering docket number 42351.