Under Indiana law, the rates and charges of most sewer utilities are not regulated at the state level with limited exceptions*. Utilities whose rates and charges are regulated at the local level include:
- Municipal wastewater utilities,
- Regional sewer districts,
- Sanitary districts, and
- Wastewater utilities operated by conservancy districts.
In addition, not-for-profit sewer utilities may withdraw from Indiana Utility Regulatory Commission (IURC) jurisdiction under state law. The law also allows investor-owned sewer utilities to withdraw if they serve fewer than 300 customers.
Out of approximately 550 sewer utilities in Indiana, only 24 are under IURC jurisdiction. 17 of those 24 are investor owned. When those utilities seek IURC permission to increase their rates and charges (or to expand their service territories), the Indiana Office of Utility Consumer Counselor (OUCC) participates in the IURC cases on behalf of consumer interests.
According to the most recent available data, the average rate for customers of municipal sewer utilities using 5,000 gallons of water per month reached $48.79 in 2018 (not including water or stormwater charges). By comparison, the average municipal rate in 2012 was $37.28.**
The average rate for an IURC-regulated sewer utility customer at the same usage was $57.81 in 2021.***
Whether rate jurisdiction is at the state or local level, wastewater utilities are legally entitled to fair rates of return on their investments. They must also ensure that their facilities and treatment processes comply with federal and state environmental standards. In an IURC rate proceeding, the utility has the legal burden to prove that its proposed rates and charges are justified and necessary.
* Sanitary districts in Lake County may seek rate changes either at the local level or from the IURC. Limited IURC jurisdiction can also affect main extensions and out-of-city rates for municipal sewer utilities, out-of-district sewer rates for conservancy districts, and campground rates for regional sewer districts,
** Municipal data are from the May 2019 BakerTilly Comparative Rate Study.
*** IURC data are based on the agency's annual sewer bill analyses.