GREENWOOD, Ind.--(BUSINESS WIRE)--Indiana American Water today announced that the Indiana Utility Regulatory Commission 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 2018. Details of the agreement are contained in an order issued on Wednesday, June 26, 2019 by the IURC.
“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,” said Indiana American Water President Matt Prine. “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.”
During the period covered by the rate request, Indiana American Water invested more than $542 million in its water systems across the state to ensure reliable service to customers. 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 steps, 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 step 1 goes into effect and an additional $2.22 per month (6.3 percent) when the second step is implemented. Details on specific rate impacts by district, rate group and customer class will be posted on the company’s website at https://amwater.com/inaw/customer-service-billing/your-water-rates after the company’s rates and tariffs are filed and approved by the IURC.
The IURC also 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 twelve-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. Indiana American Water already reduced its rates by 4.4 percent on August 1, 2018 as a result of the impact of the TCJA.
About Indiana American Water
Indiana American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to more than 1.3 million people. With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 7,100 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to more than 14 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.