Indiana American Water requests 31 percent rate hike over three years

Indiana American Water is asking the state to approve a 31 percent rate hike for customers over three years.  As IPR’s Stephanie Wiechmann reports, the company says it will make infrastructure improvements.

As filed with the state Office of Utility Consumer Counselor, Indiana American Water wants to increase rates in three phases – 15.49 percent beginning in late July, 5.63 percent in April 2024, and 7.45 percent in April 2025.

Indiana American Water said for typical residential customers, that would add about $14 to each bill in total.

If the company is your wastewater utility, those bills will increase, too.  In a statement, Indiana American Water said, “The increases for residential wastewater customers will vary depending on the community served.”

The requested rate increase would add $86.7 million in revenue for Indiana American Water.

The company told state regulators it will replace aging infrastructure throughout the state.  It also wants to build new water treatment plants in Sheridan and Winchester, a new storage tank in West Lafayette, and chlorine conversions in Shelbyville and northwest Indiana.

But the company has also purchased smaller water and wastewater utilities across the state and said it wants the rate increase to fund those purchases.

The plan still needs to be approved by state regulators and several communities have already filed paperwork to discuss the proposal.

Despite the request for new rates to begin in July, state regulatory agencies say they won’t have a final decision until “this winter.”

The company is also requesting an extra surcharge for Montgomery County customers to pay for a new main line and water tower.  That would add $3.54 to each monthly bill.

Customers last saw new rates from Indiana American Water in 2019.