Indiana American Water Co Rates
New Rate Case
Indiana American Water Company is requesting a rate increase in a newly filed case. The utility's request would raise annual revenues by approximately 31.1% ($86.7 million). The increase would implemented in three phases.
All publicly filed documents in this case (Cause No. 45870) are available on the IURC's website.
- The OUCC is the state agency - separate from the IURC - that represents all consumers in cases before the Commission.
- This case's procedural schedule includes a July 12, 2023 deadline for the OUCC to complete its technical and legal review, and file testimony.
- Written consumer comments are invited.
Most rate cases take approximately 300 days to complete, and a final order from the IURC is not expected until this winter. The OUCC's timeline outlines the steps in the process.
- Utility Testimony (Initial Request)
- Public Comments
The OUCC issued a May 19, 2023 news release to invite written comments through July 5. 2023.
- Previous Base Rate Case (2018-2019)
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
IURC public field hearings in this case were held in Seymour and Gary, respectively, on November 7 and 26, 2018. The OUCC issued previous news releases in this case in October 2018 and December 2018.
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.
- Certain costs can be recovered through the DSIC and not count toward the 10-percent cap. They include replacements of customer-owned lead service lines and galvanized steel service lines, costs for improvements placed in service due to a road or highway construction or improvement, and property taxes associated with eligible infrastructure improvements.
- 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.
IAWC's current DSIC of $3.18 for most residential customers received Commission approval in March 2022. In a pending case, IAWC is seeking to increase the monthly DSIC for residential customers to $8.06. The OUCC filed testimony on Feb. 17 recommending the increase be limited, and setting a new charge of $6.28. The IURC’s Mar. 22, 2023 order approved a new charge of $7.96.
A previous DSIC received Commission approval in March 2021.
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)
- Service Enhancement Improvement Rider
A 2020 Indiana law (IC 8-1-31.7) allows water and sewer utilities to seek expedited rate recovery under a Service Enhancement Improvement Rider. On Mar. 16, 2022, IAWC received approval of a plan for implementing this charge in Cause No. 45609.
In February and March 2023 the Commission issued orders on two SEI requests, resulting in a combined increase of $1.07 for residential customers.
- Lead Service Line Plan
IAWC received approval of a lead service line replacement plan on July 25, 2018.
The utility filed its petition and testimony in IURC Cause No. 45043 on January 29, 2018.
In testimony filed on April 13, 2018, the OUCC recommended approval of the plan with specific modifications.
In separate dockets, IAWC has received IURC approval to purchase municipal utilities from Lowell, Riley, Georgetown, Sheridan, Lake Station, and Charlestown, along with the River's Edge Utility in Clark County.
- Charges for New Connections
IAWC requested approval of new connection fees and system development charges for new connections in IURC Cause No. 45537. The Commission has granted the utility's unopposed motion to dismiss.