The company sought a $17.5% increase in September when it filed with the IURC. The utility said its maintenance investment of more than $542 million in water systems across the state was driving the increase.
Under the agreement, the utility will realize an overall revenue increase of $17.5 million, while it originally sought a $38.8 million increase.
“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,” said Matt Prine, Indiana American president.
The company said the impact for most residential customers using 4,000 gallons of water each month would be about 34 cents per month after the first phase this month and $2.22 per month in May.
The agreement also includes a pilot program for low income customers in Gary and a one-time refund for consumers related to the Tax Cuts and Jobs Act of 2017.
The refund for the typical residential customer will be about $19.26 over a 12-month period beginning in May.
The Office of Utility Consumer Counselor, which took part in settlement talks, issued a release calling it a “fair resolution” to the case.
William Fine, state consumer counselor, said the pact represents a balance between aging infrastructure improvements and fair rates to cover those costs.
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