Indiana American Water rate case: Consumer comments invited

UPDATE: In supplemental testimony filed on Aug. 10, 2011, Indiana American Water Company reduced its requested overall revenue increase from $20.3 million (10.48%) to $18.95 million (9.7%).


August 8, 2011

Indiana American Water rate case: Consumer comments invited
Public field hearings scheduled for this month in West Lafayette, Gary & Jeffersonville
Written comments invited from customers throughout IAWC’s service territories

Consumers are invited to comment on Indiana American Water Company’s (IAWC’s) request for an increase in its rates and charges.

The Indiana Office of Utility Consumer Counselor (OUCC) – the state agency representing consumer interests in all cases before the Indiana Utility Regulatory Commission (IURC) – is accepting written consumer comments for the case record through September 28, 2011.

The OUCC also encourages IAWC customers to attend any of the IURC’s upcoming public field hearings in this case:

  • Wednesday, August 17 in West Lafayette: Ross-Ade Pavilion, Shively Club North, 850 Beering Drive (Free parking available in the R Lot, north of Ross-Ade Stadium)

  • Thursday, August 18 in Gary: Common Council Chambers, Gary City Hall, 401 Broadway, Suite 209

  • Monday, August 29 in Jeffersonville: Jeffersonville High School Auditorium, 2315 Allison Lane

Each field hearing’s public comment portion will begin at 6:00 p.m. local time.

  • Sworn oral and written comments regarding the rate case will be accepted during the field hearings.

  • Oral and written consumer comments carry equal weight, and will become part of the official evidentiary record considered by the IURC in reaching its final decision. 

  • Commissioners are not permitted to answer consumer questions during the formal field hearings. (However, OUCC and IURC staff will be available before, during and after each hearing.)

An OUCC informational session on the regulatory process and public field hearing procedures will precede each hearing, starting at 5:30 p.m. local time.

IAWC states in testimony that it is seeking $20.3 million in new annual operating revenues due to a large number of distribution and transmission system improvements throughout its service territories. While the request would increase the utility’s total operating revenues by 10.48 percent, specific increases would vary by service territory.

IAWC is a wholly owned subsidiary of New Jersey-based American Water, Inc., providing service to more than 284,000 residential, commercial and industrial customers throughout Indiana. The utility’s current base rates and charges were approved in April 2010.

The OUCC is reviewing IAWC’s request and has not yet taken a position in this case. The OUCC is scheduled to file testimony on October 5, 2011.

A group of IAWC’s industrial customers (including Praxair, Inc. and United States Steel Corporation) and several municipal governments (Crown Point, Schererville, and West Lafayette) – have formally intervened in this case through legal counsel. Testimony from intervening parties is expected to be filed on October 5, 2011, the same date as the OUCC’s testimony.

Consumers throughout IAWC’s service territories who are unable to attend a field hearing are encouraged to submit written comments to the OUCC. The OUCC accepts written comments by mail, fax and the Internet:

  • Mail: Consumer Services Staff
    Indiana Office of Utility Consumer Counselor
    115 W. Washington St., Suite 1500 South
    Indianapolis, IN 46204
  • Fax: (317) 232-5923
  • E-mail:
  • OUCC Website:

All written comments should include the consumer’s name, mailing address, and a reference to IURC Cause No. 44022. Comments the OUCC receives by September 28, 2011 will be filed with the IURC to be included in the case’s formal evidentiary record.

For more information, including links to IAWC’s testimony in this case, please visit the OUCC Website at Tips for managing water bills and more information on the regulatory process can also be found on the OUCC site.

Only the rates and charges of Indiana American Water Company are at issue in this case. Indiana law does not give the IURC jurisdiction over municipal sewer and stormwater utility services.

(IURC Cause No. 44022)

The Indiana Office of Utility Consumer Counselor (OUCC) represents Indiana consumer interests before state and federal bodies that regulate utilities. As a state agency, the OUCC’s mission is to represent all Indiana consumers to ensure quality, reliable utility services at the most reasonable prices possible through dedicated advocacy, consumer education, and creative problem solving. To learn more, visit


Indiana American Water Company rate case (IURC Cause No. 44022)

Comparison of current and proposed rates under utility’s request


Current Water Rates

(700 cubic ft/month)

Proposed Water Rates
(700 cubic ft/month)



New Albany
Terre Haute

$ 42.53

$ 45.01



$ 38.73

$ 45.01



$ 31.70

$ 39.05


Northwest Indiana*

$ 38.94

$ 41.52



$ 31.70

$ 45.01


West Lafayette

$ 27.90

$ 45.01



Source for all data: Petitioner’s Exhibit GMV-7, filed 5-20-11

700 cubic feet equates to approximately 5,200 gallons.

Regular service charges, volumetric charges, and DSIC and fire protection surcharges are included in these calculations.

Utility’s total requested annual revenue increase (all service territories combined) = $20.36 million (10.48%)

* Most Northwest Indiana customers are billed every two months. Customers in other IAWC service territories are billed each month. The bi-monthly bill for a Northwest Indiana residential customer for 14 cubic feet would increase from $77.88 to $83.03.

IAWC provides sewer service in the Muncie and Somerset areas. Under the utility’s request, flat monthly residential sewer bills (not including water) would remain unchanged at $61.29.

Table prepared by the OUCC