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Indiana American Water Company (IAWC) bills will increase slightly following a recent case before the IURC.
IAWC requested an increase of more than 3 percent to its rates and charges on October 1, 2012. The utility did not seek the increase through a general rate case, but requested it through a rate mechanism known as the Distribution System Improvement Charge (DSIC). Indiana law (IC 8-1-31) allows investor-owned water utilities 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 recovery requires IURC approval and OUCC review under an expedited schedule.
The OUCC successfully recommended that a significant portion of IAWC’s request, to pay for new automated meters, be disallowed in this case (IURC Cause No. 42351-DSIC7). 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.
All publicly filed documents in this case are available by clicking here and entering docket number 42351.
IAWC’s current base rates were approved on June 6, 2012.