Chesterton Tribune



Water company rate increase now in effect

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Indiana American Water Company (IAWC) is announcing that the second step of a two-step rate increase approved by the Indiana Utility Regulatory Commission in June 2019 took effect on May 2.

The first step, an increase of 0.96 percent, went into effect on July 1, 2018. The second, an increase of 6.3 percent, is now in effect. The impact on most residential customers using 4,000 gallons of water per month was approximately 34 cents per month after the first step; and an additional $2.22 per month after the second. Details on specific rate impacts by district, rate, and customer group are available at

IAWC said that the “main driver” of the rate hike is ongoing infrastructure investment, including more than $542 million in the request to raise rates filed in September 2018. Of that amount, approximately $79 million was invested at three IAWC plants to add ultraviolet disinfection to the existing treatment process, “adding an extra layer of protection against chlorine-resistant microbes, viruses, and pathogens that may be present in surface water sources.”

IAWC “has made significant investments in aging infrastructure and its treatment and distribution facilities to ensure service reliability, water quality, and fire protection for the more than 1.3 million people who depend on us every day,” IAWC President Matt Prine said. “We are proud of our record of success in providing affordable water while making investments that are critical to the public’s health and safety and the economic vitality of the communities we serve.”

“We have also worked hard to hold our operating and maintenance expenses relatively flat by implementing efficiencies and leveraging technology and innovation throughout the workplace,” Prine added. “During the period covered in our rate request, our O&M expenses increased at a rate below the inflation rate over the last decade. Our successes represent more than $10 million of savings for our customers over what our expenses would have been if allowed to grow with inflation.”

Among the projects included in the current rates: system upgrades at the Kokomo, Richmond, and Muncie treatment facilities; a new treatment facility in Noblesville; the conversion of nine facilities from chlorine gas to liquid sodium hypochlorite disinfection systems; replacing or upgrading more than a dozen wells; replacing and/or retiring from service 13,000 lead service lines; and a solar energy project in Newburgh that generates enough electricity to power the company’s water treatment facilities there.



Posted 5/5/2020





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