Indiana American Water requests 16 percent rate hike for infrastructure improvements
GREENWOOD, Ind. – Indiana American Water, which serves more than 1.3 million Hoosiers, is seeking a rate hike to pay for improvements to infrastructure.
The utility proposed a phased approach that would include an 8.22 percent increase in July 2019 and a second increase of 8.57 percent in July 2020.
If approved, the average residential bill would increase $5.60 per month compared to the August 2018 rate. By the time the rate hike is fully implemented in July 2020, the average bill would increase by 16 percent.
The utility filed a petition with the Indiana Utility Regulatory Commission to adjust the rates. The company wants to make $542 million in infrastructure improvements it says are needed to maintain water quality, reliability and fire protection.
The work would include significant upgrades to water treatment facilities in Kokomo, Richmond and Muncie; a new water treatment facility in Noblesville; replacement or upgrading of more than a dozen wells, pumping stations, water mains and other critical facilities; and a new solar energy project in Newburgh. Indiana American Water also wants to replace nearly 36 miles of aging water mains.
No rates would change until the IURC conducts a comprehensive review of the request.