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Knightstown Municipal Water Rate Case (IURC Cause No. 43440-U)

The OUCC issued the following fact sheet at the field hearing and information meeting held in Knightstown on May 20, 2008.

OVERVIEW

The Town of Knightstown is seeking an increase in its rates and charges for municipal water utility service. The town’s request is pending before the Indiana Utility Regulatory Commission (IURC) in Cause No. 43440-U.

  • If the town’s proposal in this case were approved, the monthly water bill for a residential customer using 5,000 gallons would increase from $20.47 to $31.13. These amounts include the town’s fire protection surcharge.
  • In its case filing before the IURC, the town indicates it is seeking the rate increase to cover higher operating and maintenance costs.  
  • Knightstown’s current base water rates were approved in 1991.
  • Any changes in a regulated utility’s base rates must be approved by the IURC before taking effect. Indiana law allows regulated utilities to petition for rate cases no more frequently than once every 15 months.
  • Only the town’s water rates and charges are at issue in this case. Municipal electric rates are not at issue in this proceeding; Indiana law exempts municipal sewer rates from IURC jurisdiction.

The Indiana Office of Utility Consumer Counselor (OUCC) is a separate state agency from the IURC, and is the statutory representative for the interests of all utility consumers (residential, commercial and industrial) in cases before the IURC.

  • The OUCC has not yet taken a position in this case, with the agency’s legal and technical staff continuing to review the utility’s requests and evidence.
  • The OUCC expects to complete its review and file a written report by May 29. The agency’s report will be available online at http://www.in.gov/oucc/3375.htm after being filed with the IURC.

TIMELINE

February 19, 2008: The Town of Knightstown filed formal documentation with the IURC initiating this case and seeking to increase its water utility rates.

May 20: An IURC public field hearing is being held at Knightstown High School.

May 29: The OUCC is expected to file its written report in this case.

IURC final orders are issued at the Commission’s weekly Conferences. Conferences are typically held on Wednesday afternoons, with agendas posted 48 hours in advance at: www.in.gov/iurc/procedures/2008/08_agendas/08agenda_index.html.

A settlement agreement is possible in any legal proceeding; all hearing and filings dates in any legal proceeding are subject to change.

SMALL UTILITY FILING PROCEDURE

The Knightstown municipal water utility is utilizing the IURC’s Small Utility Filing Procedure in this case. This procedure is designed to reduce the time and expense involved with regulatory filings; it is available to utilities with fewer than 5,000 customers.

By using this process, the utility makes its rate requests using standardized forms. This may result in reduced need for attorneys and consultants (such as accountants, engineers, etc.).

Public hearings are not mandatory in cases using the Small Utility Filing Procedure; however, a hearing may be granted if requested.

The standards of OUCC and IURC review in these cases are the same as for traditional utility filings. The OUCC files written reports in Small Utility Filing Procedure cases after reviews by legal and technical staff.

WHAT WILL HAPPEN AT THE PUBLIC FIELD HEARING

An IURC public field hearing is a formal, legal proceeding. It is presided over by an Administrative Law Judge and recorded by a court reporter, with at least one Commissioner present.

Consumers may make sworn written or oral comments on the pending case. Consumer comments are given equal consideration whether they are written or oral.

The case’s formal parties – the utility and the OUCC – participate.

A public field hearing does not include a question and answer format; it is designed to allow sworn consumer testimony under oath. IURC Commissioners are not allowed to answer questions, as they will ultimately weigh the evidence and render a final decision.

No final IURC decision in the case will be made during the field hearing.

ADDITIONAL INFORMATION

All publicly filed documents in this case are available for review on the IURC Website by:

  • Clicking the “Electronic Filing” link
  • Clicking the “Search Cases” link near the upper left corner of the following page
  • Entering docket number 43440 in the first field on the search page

Case updates and key case documents are available on the OUCC Website at www.in.gov/oucc/3375.htm.

GenerAl Agency Information

Indiana Office of Utility Consumer Counselor (OUCC)

  • State agency
  • Represents the interests of all Indiana utility consumers – including residential, commercial and industrial customer interests – in cases before the IURC and federal utility regulatory commissions
  • Staff of attorneys, accountants, engineers, economists, consumer services and support personnel

Indiana Utility Regulatory Commission (IURC)

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