IN.gov - Skip Navigation

Note: This message is displayed if (1) your browser is not standards-compliant or (2) you have you disabled CSS. Read our Policies for more information.


Subscribe for e-mail updates
Print This Page Rate This Page Suggest a Link E-mail This Page HELP Find a Person Find an Agency

Philadelphia Waterworks Sewer CTA

UPDATE: An IURC order was issued in this case on Feb. 7, 2007.

The OUCC distributed the following fact sheet at the agency's public information meeting and IURC public field hearing on December 5, 2006 in New Palestine, Ind.

OUCC Fact Sheet

Philadelphia Waterworks Case
IURC Cause No. 43063

On June 2, 2006, Philadelphia Waterworks, LLC filed a petition with the Indiana Utility Regulatory Commission (IURC) seeking a Certificate of Territorial Authority (CTA) to provide sewer utility service in a portion of Hancock County. The company, which also plans to provide water utility service, filed testimony and exhibits in this case on August 18.

  • Philadelphia Waterworks is an investor-owned entity based in Greenfield.

  • The company proposes to serve an area bordered primarily by Sugar Creek and CR 250W on the west, CR 100N on the north, CR 200S on the south, and the City of Greenfield’s 15-year growth boundary on the east. The proposed service area includes the communities of Philadelphia and Spring Lake.

  • According to its testimony, Philadelphia Waterworks is seeking to provide utility service to 301 future homes in three proposed residential developments, while also making service available to existing homes and business in the proposed territory.

    • Indiana law does not authorize investor-owned utilities to force consumers to connect to their systems (unlike municipal wastewater utilities, which are authorized to do so under state law). However, county health departments may have the ability to require sanitary sewer connections under certain circumstances.

  • Philadelphia Waterworks is seeking IURC permission to issue up to $575,000 in long-term debt to help pay for water and sewer infrastructure, along with authority to establish initial rates and charges for utility service.

    • The company is proposing a flat monthly residential sewer rate of $55.00.

    • The utility is proposing to charge volumetric rates for water service. Under the proposal, an average residential customer using 5,000 gallons per month would pay $34.00 for water.

The Indiana Office of Utility Consumer Counselor (OUCC) is the statutory representative for the interests of all utility consumers in this case and in all proceedings before the IURC. In CTA cases, the OUCC reviews utility filings to ensure that they comply with the Indiana Code (IC 8-1-2-89) and Indiana Administrative Code (170 IAC 8.5-3-1). The OUCC filed testimony in this case on November 2, recommending that the CTA be granted on the condition that the company provides additional information.

  • The OUCC’s testimony states that Philadelphia Waterworks has provided the following required exhibits:

    • Articles of Incorporation

    • A legal description and maps of its proposed service area and wastewater treatment plant site.

    • Projections for the utility’s construction, operating and maintenance costs.

    • Pro forma financial statements for a 5-year period.

    • Acknowledgment letters from operators of any sewer utility within 5 miles of the proposed service area.

    • A guarantee of investor financial responsibility.

  • Philadelphia Waterworks still needs to obtain and submit the following, with the OUCC recommending that the company be allowed the opportunity to do so while this case is pending:

    • A National Pollutant Discharge Elimination System (NPDES) permit from the Indiana Department of Environmental Management (IDEM).

    • Plans and specifications for the treatment plant, along with a construction permit from IDEM.

    • A certificate of approval from the Indiana Department of Natural Resources (DNR).

  • The OUCC’s testimony also notes that Philadelphia Waterworks – as of November 2 – had not submitted a Water System Management plan to IDEM. Such a plan – which assures that the requestor has the financial, technical and managerial ability to operate a utility – must receive IDEM approval before a utility can provide water service. The Indiana Administrative Code (327 IAC 8-3.6-5(a)) establishes the parameters for such a plan, which would include a 5-year budget and a detailed, 20-year operating plan.

  • Additional recommendations in the OUCC’s testimony include:

    • Approving the proposed $55 monthly sewer rate for single family residences only, with further study regarding rates for other customers.

    • Granting the utility’s debt request, but only if it invests sufficient equity in both water and sewer infrastructure within the next five years.

    • Requiring that the utility serve at least 80 non-affiliated customers before considering withdrawal from IURC jurisdiction (as allowed under IC 8-1-2.7).

On December 5, an IURC public field hearing will be held in New Palestine, at Doe Creek Middle School. Consumers will be able to submit testimony in the form of written or oral comments. The comments will become part of the official evidentiary record to be considered by the IURC in reaching its final decision on the city’s request. Consumer comments, whether written or oral, are given equal consideration.

On December 21, the IURC is scheduled to hold a technical evidentiary hearing in this case. The hearing, scheduled for 9:30 a.m. in Room E-306 of the Indiana Government Center – South, is open to the public. However, participation in evidentiary hearings is typically limited to the cross-examination of technical witnesses who have filed testimony on behalf of the proceeding’s formal parties.

All filing deadlines and hearing dates in any legal proceeding are subject to change.

A settlement agreement is possible in any legal proceeding; such an agreement would be subject to IURC approval.

Consumers with questions or concerns about this case or other utility issues are encouraged to contact the OUCC’s consumer services staff toll-free at 1-888-441-2494 or through the agency’s Website at www.IN.gov/OUCC.

General Information

Indiana Office of Utility Consumer Counselor (OUCC)

  • State agency
  • Represents the interests of all utility consumers and the general public on issues concerning electric, natural gas, water, sewer and telecommunications utilities
  • Staff of accountants, engineers, economists, attorneys, consumer services and support personnel
  • Participates in regulatory and legal proceedings
  • Provides consumers with a voice in utility policy
  • Responds to consumer questions and information needs

Indiana Utility Regulatory Commission (IURC)

  • State agency
  • Regulates many, but not all, Indiana utilities
  • Regulates utility rates, financing, service territory, quality, etc.
  • Required by law to make decisions that balance the interests of utilities and consumers
  • Neutral, fact-finding body
  • Authority to investigate utility rates and practices

Information Meeting and Public Field Hearing:
What is the difference?

Public Information Meeting

  • Facilitated by the OUCC
  • Opportunity for attorney (OUCC) and client (consumers) discussion
  • Opportunity for consumers to advise OUCC staff of concerns
  • Provides an opportunity for consumers to ask questions and receive information
  • Opportunity for consumers to make written comments that can be entered into the official record considered by the IURC in its decision

Public Field Hearing

  • Conducted by the IURC
  • Formal, legal proceeding presided over by an Administrative Law Judge and recorded by a court reporter
  • Often required by law
  • Conducted in utility’s service territory
  • Allows consumers to make sworn written or oral comments on the utility’s proposal, its service and any other relevant issue
  • Not a question and answer/discussion format; designed to allow consumer comment
  • Consumers providing oral comments may, at the conclusion of their testimony, be asked questions by judge, commissioners or an attorney for any formal party to the proceeding
  • Comments are part of the official public record considered by the IURC in making its decision


Prepared by the OUCC
100 North Senate Avenue, Room N501
Indianapolis, IN 46204-2215

Toll-free 1-888-441-2494
Voice/TDD (317) 232-2494
Fax (317) 232-5923

www.IN.gov/OUCC
uccinfo@oucc.IN.gov