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Indiana Office of Utility Consumer Counselor

OUCC > Water/Sewer > Cases of Note > Indiana American Water Co. Rates Indiana American Water Co. Rates

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Indiana American Water Company (IAWC) is seeking a $19.6 million base rate increase in Indiana Utility Regulatory Commission (IURC) Cause No. 44450.

The Indiana Office of Utility Consumer Counselor (OUCC) filed testimony on May 2, 2014, recommending an $11.4 million decrease in the utility's rates. For a summary, please see the OUCC's May 5, 2014 news release.

All hearings in this case have concluded, with the formal parties scheduled to file written closing arguments in the coming weeks:

  • IAWC's proposed order is due on July 25, 2014.
  • Proposed orders from the OUCC and intervening parties are due by August 15, 2014.
  • IAWC will have until August 25, 2014 to file its reply brief.

The OUCC's case-in-chief is as follows:

IAWC filed its case-in-chief on January 24, 2014:

The IURC public file for the rate case is available by clicking here and entering docket number 44450. IURC public field hearings were held on April 8 in Franklin and April 10 in Gary. For more information, please see the OUCC's March 17, 2014 news release.

This page will be updated on future case developments.

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Previous Base Rate Case

The IURC's June 6, 2012 order in IAWC’s last general base rate case (Cause No. 44022) granted the utility a 1 percent increase in its annual operating revenues. IAWC sought an increase of more than 8 percent, with the Indiana Office of Utility Consumer Counselor (OUCC) recommending a rate decrease.

OUCC News Releases:

The IURC public file is available by clicking here and entering docket number 44022.

Distribution System Improvement Charge

In addition to general rate cases, Indiana law (IC 8-1-31) allows investor-owned water utilities to seek rate increases through a mechanism known as the Distribution System Improvement Charge (DSIC). IAWC and other investor-owned water utilities are allowed to seek DSIC cost recovery as often as once per year to replace infrastructure that has exceeded its useful life (aging distribution lines, particularly).

DSIC cases require IURC approval and OUCC review under an expedited schedule.

IAWC’s received a DSIC increase on December 27, 2012 (Cause No. 42351-DSIC 7).

  • The utility requested an increase of more than three percent.
  • The OUCC successfully recommended that a significant portion of IAWC’s request, to pay for new automated meters, be disallowed. According to the OUCC's testimony, the utility’s evidence did not demonstrate the cost of replaced meters that had been in place for at least 10 years. Also, while automated meter reading equipment helps the utility’s billing efforts, it does not enhance water distribution.
  • The IURC's December 27, 2012 order (15 pages) adopted the OUCC’s recommendations and limited the increase to about 2.1 percent.
  • The Indiana Court of Appeals upheld the Commission’s order on August 6, 2013.

IAWC requested an overall rate increase of 2.55 percent in Cause No. 42351-DSIC 8.

The IURC public files for the DSIC cases are available by clicking here and entering docket number 42351.