OUCC needs comments on IAWC rate request

INDIANAPOLIS – The Indiana Office of Utility Consumer Counselor is inviting written comments on Indiana American Water Company’s request for a rate increase.

The OUCC, the state agency representing consumer interests in cases before the Indiana Utility Regulatory Commission, is reviewing the utility’s request and has not yet taken a position in this case. The OUCC anticipates completing its review and filing testimony with the Commission on May 2.

IAWC is a wholly owned subsidiary of Voorhees, N.J., based American Water, Inc., and provides service to approximately 290,000 customers throughout the state.

According to its testimony and exhibits, IAWC is seeking the rate increase for several reasons, including paying for numerous infrastructure improvements. The projects include replacement of aging mains, treatment plant projects, storage tank renovation and other projects. The utility’s proposal would raise its total annual operating revenues by $19.6 million, an increase of approximately 9.8 percent.

For most IAWC residential customers using 5,000 gallons per month, the monthly water bill would rise from $37.35 to $39.75. This would apply throughout all of the utility’s service territories with four exceptions:

Most of IAWC’s Northwest Indiana customers are billed every two months. The bi-monthly bill for 10,000 gallons in Northwest Indiana would rise from $67.81 to $79.48. This equates to a monthly increase from $33.90 to $39.74. In Mooresville and Winchester, the monthly water bill would increase from $33.62 to $36.39. In Wabash, the monthly bill would rise from $33.62 to $39.75 with the increase to be phased in over a three-year period.

IAWC provides sewer utility service in the Muncie and Somerset areas. For those customers, the flat, monthly sewer rate would increase from $69.46 to $76.50.

These numbers do not include fire protection surcharges.

IAWC’s current base rates were approved in June 2012. However, rates have since increased twice through the utility’s Distribution System Infrastructure Charge (DSIC), a rate adjustment mechanism (or tracker) which allows investor owned water utilities to increase rates to pay for aging infrastructure subject to OUCC review and IURC approval. IAWC’s most recent DSIC increases were approved in December 2012 and December 2013.

The City of Crown Point has intervened in this case and is also expected to file testimony on May 2. More information on this case, including the utility’s testimony, is available online at www.in.gov/oucc/2654.htm. Consumers who wish to submit written comments in this case may do so via the OUCC’s Website at www.in.gov/oucc/2361.htm, or by mail at 115 W. Washington St., Suite 1500 South, Indianapolis, IN 46204, email to uccinfo@oucc.IN.gov, or fax: 317-232-5923. Comments must be received before April 24.

Submitted Article | Published February, 15th 2014 in The Reporter Times