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By KEVIN NEVERS The Indiana Office of Utility Consumer Counselor (OUCC) is inviting the public to comment on Indiana-American Water Company’s request for a 30-percent rate hike. If approved by the Indiana Utility Regulatory Commission’s, it would be IAWc’s fifth rate hike in seven years. The OUCC--the state agency representing consumer interests in cases before the IURC--has not yet taken a position on the proposed increase but is scheduled to complete its review of IAWC request and file its testimony with the IURC on Oct. 23. At 6 p.m. Tuesday, Sept. 15, the IURC will hold a formal public field hearing at the auditorium of the Savanna Center at Indiana University-Northwest, 3400 Broadway in Gary, to accept oral and written comments from the public on IAWC’s request. The comments will become part of the evidentiary record considered by the IURC in reaching its final decision. Commissioners are not permitted to answer questions from consumers during the field hearing. Prior to the field hearing, at 5:30 p.m., the OUCC will conduct an informational meeting to discuss the regulatory process and describe the procedures of the upcoming field hearing. In its testimony before the IURC, IAWC has indicated that it’s seeking an additional $46.8 million in new annual operating revenues “due to growth in operating and maintenance expenses, and due to numerous capital improvements to transmission and distribution systems throughout its Indiana service territories.” IAWC customers who wish to submit written comments regarding this case may send them to the OUCC by mail, fax, or e-mail: *Mail to Consumer Services Staff, Indiana Office of Utility Consumer Counselor, 115 W. Washington St., Suite 1500 South, Indianapolis, IN 46204. *Fax to (317) 232-5923. *E-mail to uccinfo@oucc.IN.gov Visit the OUCC website at www.in.gov/OUCC The OUCC needs to receive all consumer comments in this case no later than Oct. 16. Written comments should include the consumer’s name, mailing address, and a reference to IURC Cause No. 43680. For more information on the case, visit www.in.gov/oucc/2556.htm Proposed Rate Hike According to the OUCC, the rate hike proposed by IAWC would increase the average residential customer’s monthly bill by fully 31.51 percent, from $26.37 to $34.68. The average bimonthly bill for 1,400 cubic feet, accordingly, would increase from $52.74 to $69.36. Previous Rate Hikes *In November 2002 IAWC enacted an increase of 18.25 percent, to recover costs of a number of improvements, including new pumps and automation enhancements at the Ogden Dunes facility and the construction of a second main to serve the Chesterton area. *In June 2003 IAWC enacted a second increase of 26.2 percent, to recover the costs of the $52.4 million supply tunnel which brings Lake Michigan water to the Gary water filtration plant. *In November 2004 the IURC granted IAWC a third increase of 1.67 percent, after the company had trimmed its original request for a 14.7 percent hike to 10 percent. IAWC had sought this hike to recover the cost, among other things, of acquiring Northwest Indiana Water Company in the first place as well as of moving a customer service center from Indiana to Illinois. IAWC had also wanted to use the requested 10 percent hike to generate higher return on shareholders ’ investment and to provide additional incentive pay for management.*In October 2007 IAWC enacted a fourth increase of 9.9 percent, after originally seeking a hike of 18.1 percent, citing higher operating costs and investment in infrastructure. That hike increased the average residential customer ’s bill by $5.42.Effect of Five Hikes In short, if the IURC were to grant IAWC the entirety of the proposed rate increase, it would mean that the average residential customer’s monthly bill would, in only seven years, have increased by fully 115 percent or more than doubled.
Posted 9/10/2009 |
