Indiana American Water Files Stipulation & Settlement Agreement Regarding Rate Request
March 19 2019 - 12:20PM
Business Wire
Indiana American Water today announced an all-party settlement
agreement regarding its rate request with the Indiana Utility
Regulatory Commission (IURC). The agreement is subject to approval
by the IURC.
“We have made significant investments in aging infrastructure
over the last several years to ensure service reliability, water
quality and fire protection for our customers across the state,
while holding our operating and maintenance expenses relatively
flat,” said Indiana American Water President Deborah Dewey. “At the
same time, we have maintained top-quartile customer service,
enhanced our water quality and environmental compliance record, and
reduced water loss in our distribution system.”
Indiana American Water has invested more than $542 million in
its water systems across the state to ensure reliable service to
its customers. The agreement includes a 7.9 percent overall
increase in operating revenues, primarily based on that investment.
If approved by the IURC, the increases to water rates will be
implemented in steps, with the first increase this summer of 1.73
percent and a second increase in mid-2020 of 6.07 percent. The
impact for most residential customers using 4,000 gallons of water
each month would be about 15 cents per month (0.4 percent) after
step 1 goes into effect and an additional $2.26 per month (6.4
percent) when the second step is implemented. Details on specific
rate impacts by district, rate group and customer class will be
included in the IURC’s final rate order.
“We appreciate the willingness of the interested parties in this
proceeding to work toward and reach a negotiated settlement in this
case,” continued Dewey. “The terms included in this agreement are
both reasonable and fair and in the best interests of our customers
across the state.”
The settlement agreement provides for a low-income pilot program
in three communities served by Indiana American Water to evaluate
the effectiveness, interest and impact of the program before
considering a statewide program. If approved as submitted,
qualified residential customers with a 5/8” meter in the pilot
communities will receive a discount of 80 percent of the fixed 5/8”
meter charge every month.
The agreement also includes a one-time refund to be distributed
to customers over a twelve-month period starting in July 2020
related to the Tax Cuts and Jobs Act (TCJA) of 2017. 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.
A final order from the IURC is expected by mid-2019.
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 approximately 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
and Ontario, Canada. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190319005710/en/
Joe LoughmillerOffice 317-885-2434Cell
317-903-7431joe.loughmiller@amwater.com
American Water Works (NYSE:AWK)
Historical Stock Chart
From Mar 2024 to Apr 2024
American Water Works (NYSE:AWK)
Historical Stock Chart
From Apr 2023 to Apr 2024