Water Company (IAWC) is announcing that the Indiana Utility Regulatory
Commission (IURC) has approved a stipulation and settlement agreement with
the Indiana Office of Utility Consumer Counselor and several other
interested parties regarding the company’s rate request filed in September
Details of the
agreement are included in an order issued on Wednesday, June 26, by the IURC.
During the period
covered by the rate request, IAWC invested more than $542 million in its
water systems across the state. The order includes a 7.9-percent overall
increase in operating water revenues, primarily based on that investment.
The increases approved by the IURC will be implemented in two phases, with
the first increase of 1.99 percent effective July 1, 2019, and a second
increase in May 2020 of 5.79 percent.
The impact for most
of the company’s residential customers using 4,000 gallons of water each
month would be about 34 cents per month (0.96 percent) after Phase I goes
into effect and an additional $2.22 per month (6.3 percent) when Phase II is
Details on specific
rate impacts by district, rate group, and customer class will be posted on
the company’s website--https://amwater.com/inaw/customer-service-billing/your-water-rates--after
the company’s rates and tariffs are filed and approved by the IURC.
In addition, the
IURC issued a final order dealing with the impacts of the Tax Cuts and Jobs
Act (TCJA) of 2017. The order provides a one-time refund reflecting the
amount collected in revenues after the TCJA was implemented, but before
rates were changed, to be distributed to customers over a 12-month period
starting in May 2020. The refund for the typical residential customer will
total approximately $19.26, or approximately $1.60 per month for one year.
IAWC already reduced its rates by 4.4 percent on August 1, 2018, as a result
of the impact of the TCJA.
“We appreciate the
cooperation of the Office of Utility Consumer Counselor and other interested
parties in this proceeding to work toward and reach a negotiated settlement
in this case,” IAWC President Matt Prine said. “We believe the terms
embodied in this agreement and the IURC’s order are both reasonable and fair
and in the best interests of our customers across the state.”