Indiana American Water today filed an application with the Indiana Utility Regulatory Commission (IURC) to adjust rates for water service in all of the company’s operating districts.
Indiana American Water’s ongoing infrastructure investments are the driver behind today’s rate request. The company will have invested nearly $221 million statewide to enhance its water infrastructure between July 1, 2011 and November 30, 2015. All these investments in local water infrastructure systems enhance service quality, reliability and fire protection for customers while keeping the cost of water service for most local households their most affordable utility bill at about a penny per gallon.
The company last filed for new rates in May 2011 and received an order from the IURC in June 2012.
According to Indiana American Water President Alan DeBoy, “Indiana American Water’s strategy is to make prudent, proactive investments in our infrastructure, which is more cost-effective in the long run and reduces the risk of major service and water quality issues.
“Since our last rate request, we have continued to implement efficiencies and best practices throughout our business to reduce our operating and maintenance expenses over the last four years,” DeBoy said. “Our employees are doing more with less through productivity gains like process improvements, attrition in the labor force and using and deploying new technology. They have also kept their focus on quality service by enhancing overall customer satisfaction during the same time period.”
The net effect is a projected reduction in operating and maintenance (O & M) cost of more than $7 million from 2010 to 2015, according to DeBoy. “In contrast, if we had simply allowed these types of expenses to rise at the inflation rate during this time, the result would have been an increase in O & M expense of more than 23 percent, or $16.1 million,” he said.