IAWC files for new charge

MOORESVILLE – Indiana American Water officials said this week they have filed with the Indiana Utility Regulatory Commission for approval of a new distribution system improvement charge.

The charge is related to investments that were made to the company’s distribution system across the state between Sept. 1, 2012, and Aug. 31, 2013, according to a statement from the company. The company’s previous DSIC order only included improvements made through the end of August last year.

In the Mooresville area, the company has invested approximately $612,509 in the local distribution system, according to the statement. The company said the work includes rehabilitation of the Morningstar elevated water storage tank and the replacement of water meters, hydrants, mains, valves and service lines throughout the Mooresville area.

By statute, DSIC may not produce revenues in excess of 5 percent of the public utility’s base revenue level approved in the utility’s most recent general rate proceeding. Indiana American Water is seeking a 2.80 percent statewide surcharge through the DSIC filing. An order is expected from the Indiana Utility Regulatory Commission within 60 days.

If approved as requested, the impact to the typical Mooresville residential customer would be 76 cents per month or approximately 2.5 cents per day.

IAWC President Alan DeBoy said the charge accelerates the replacement of certain types of aging infrastructure.

The Indiana Legislature enacted legislation several years ago allowing water utilities to make periodic adjustments to their rates and charges to recover costs associated with these types of improvements without the expense of filing a general rate case.

Projects typically covered by DSIC are replacements, relocations and reinforcement of existing water mains, valves, hydrants, customer service lines, meters and tank rehabilitation and painting projects. Reinforcement infrastructure consists of new mains required to increase flow capacity to improve service where existing mains could not meet demands for fire service flows.

Staff Report | Published October, 5th 2013 in The Reporter Times