UPDATE: An IURC order approving the settlement agreement in this case was issued on Apr. 4, 2007. A PDF copy of the 26-page document is available by clicking here.

OUCC News Release, Issued Feb. 15, 2007:

An agreement now pending before the Indiana Utility Regulatory Commission (IURC) would grant the City of Indianapolis its first water rate increase since 1998.

All four formal parties in the case - the Indiana Office of Utility Consumer Counselor (OUCC), the City of Indianapolis, a group of industrial water customers, and the Town of Pittsboro - have signed the settlement agreement that was filed with the IURC this week.

Among the agreement's terms:

• The parties have agreed to a total annual revenue increase of 28.91 percent. The city originally proposed a 32.18 percent increase, while the OUCC had recommended a 25.22 percent increase.
  • While actual increases will vary by customer class (residential, industrial, etc.), the monthly water rate for a residential customer using 700 cubic feet will increase from $16.65 to $20.95.
• The city will be allowed to assess a one-time system development charge for new customer connections in the future.
  • Existing customers will not be required to pay this charge, which will specifically help pay for infrastructure improvements needed to serve future customers. This charge will vary by meter size, beginning at $1,200 for new residential customer connections.
• Rates in the utility's Harbour Water and Morgan County service territories will be adjusted and made the same as those in Indianapolis.
• The city's Department of Waterworks will complete OUCC-recommended improvements to its accounting system and policies no later than January 1, 2009.
• The city will continue to explore and consider water conservation measures.

The agreement will require IURC approval to take effect. This case only affects the city's water utility; municipal sewer and stormwater rates and charges are exempt from IURC jurisdiction under Indiana law.

Indianapolis Water serves approximately 1.1 million people in Marion County and portions of 7 surrounding counties.

The Indiana Office of Utility Consumer Counselor (OUCC) is the state agency that represents utility consumer interests in state and federal regulatory proceedings. To learn more, visit www.IN.gov/OUCC.

(IURC Cause No. 43056)

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