Chesterton Tribune

 

 

Water company to spend $177M to replace customers lead lines

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Indiana American Water Company (IAWC) is planning to spend--in 2017 dollars--more than $177 million over the next 10 to 25 years to replace customer-owned lead service lines.

IAWC announced today that the Indiana Utility Regulatory Commission has approved its lead service line plan filed earlier this year.

“IAWC estimates that it will replace all lead service lines by no later than 2042 and possibly as soon as 2028, depending on a number of factors, including customer impacts and available contractors to perform the work,” the company said in a statement released this morning. “During this time, the company will also continue to use corrosion inhibitors as needed in the water treatment process and conduct testing to ensure compliance with EPA’s lead and copper rule. The estimated cost to replace all lead service lines in 2017 dollars for Indiana American Water customers is more than $177 million dollars.”

IAWC will recover the costs of the line replacements through future rates. “IAWC’s lead service line plan estimates that as many as 50,000 lead service lines may have been present at one time at locations served by the company around the state,” the company said. “Similar to other distribution system improvements, the costs associated with lead service line replacements will be included in future rates as approved by the IURC and spread out amongst all customers over the life of the asset.”

IAWC is the first water utility in the state to file a plan for lead service line replacement following passage of House Enrolled Act 1519 in 2017, which among other things outlines a process for water utilities to obtain authority to replace customer-owned lead service lines, even though the lines are not owned by the utility.

“The State of Indiana has taken a leadership position in several water issues over the last several years, including passing legislation that ultimately will positively impact water quality and our customers,” IAWC President Deborah Dewey said. “With the approval of our lead service line replacement plan, we are positioned to proactively address the long-standing issue of lead service lines throughout the state in a way that expedites replacement and ensures that customers who are most impacted and can often least afford it will also benefit from our plan.”

As detailed in the order from the IURC, Indiana American Water will be reporting annually on its progress in replacing lead service lines.

Additional information on lead and drinking water is available online at amwater.com/inaw/water-quality/lead-and-drinking-water

 

 

Posted 7/31/2018

 

 
 
 
 

 

 

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