Indiana American Water Co. Rates
A settlement agreement in Indiana American Water Company's (IAWC's) most recent base rate case received IURC approval on June 26, 2019. The following links offer additional information:
- OUCC News Release (6-28-19)
- OUCC News Release (3-19-19)
- Settlement Agreement
- OUCC Settlement Testimony: Stull
- OUCC Settlement Testimony: Mierzwa
- IURC Case File
IAWC's previous base rates were approved in January 2015.
Distribution System Improvement Charge
In addition to general rate cases, Indiana law (IC 8-1-31) allows water and sewer utilities to seek expedited rate recovery as often as once per year to replace infrastructure (such as aging distribution lines) that has exceeded its useful life.
This surcharge is referred to as the Distribution System Improvement Charge (DSIC).
- The law allows a water or sewer utility to impose a surcharge to earn a return on investment used to replace aging distribution or collection system infrastructure since its last rate case. Without this law, a utility would be required to wait until its next rate case to begin earning this return.
- A surcharge may not be imposed for plant additions used to connect new customers.
- Under the law, total surcharges cannot exceed 10 percent of the base revenue amount approved in the utility’s most recent general base rate case.
- The surcharge, which investor-owned water and sewer utilities may make between general base rate cases, requires IURC approval to take effect. A Commission order is required within 60 days of the utility’s filing.
- By law, the OUCC must file its report within 30 days of the utility’s request. The OUCC’s review is generally limited to whether the infrastructure additions qualify under the statute and whether the surcharge has been calculated correctly.
Three DSICs received IURC approval between IAWC's 2015 and 2019 rate orders:
- Cause No. 42351-DSIC 9 (May 2016)
- Cause No. 42351-DSIC 10 (March 2017)
- Cause No. 42351-DSIC 11 (March 2018)
Lead Service Line Plan
IAWC received approval of a lead service line replacement plan on July 25, 2018.
In testimony filed on April 13, 2018, the OUCC recommended approval of the plan with specific modifications.