GREENWOOD, Ind. – Indiana American Water filed a rate adjustment request with the Indiana Utility Regulatory Commission (IURC) reflecting what the company says is $875 million in water and wastewater system investments to be made through 2025.
The company is seeking to increase revenues over a phased, three-step process through May 2025 that the company says would result in $86.7 million of additional annual revenue when fully implemented. If the proposed rates are approved as requested, the bill for a typical residential customer using 4,000 gallons per month would increase by approximately $14 per month when rates are fully implemented in 2025.
Indiana American Water last filed for new rates through a general rate filing in September 2018 and last implemented new rates in 2019.
Recognizing that affordability may still be an issue for some customers, the company is proposing a new rate design that provides 1,500 gallons of water usage at no additional cost above the fixed monthly customer charge for all water customers. The proposed change would provide relatively low-cost basic water service for customers on fixed incomes that use a lower volume of water than the typical residential customer.
The filing also includes a proposed Universal Affordability Tariff to provide multiple tiers of discounts to address the affordability needs of different levels of household income. Under the new rate structure, eligible households would receive monthly bill discounts of between 30 and 80 percent for water service.