Indiana American Water customers will see an increase in rates next year under an agreement the company reached with consumer advocates. But the hike won’t be as high as the company requested.
The Indiana Office of Utility Consumer Counselor announced a settlement with the company that would allow the utility company to increase its rates by approximately 2.5 percent. It must still go to state regulators for approval.
The utility, a subsidiary of Voorhees, N.J.-based American Water Inc., has about 290,000 customers thoughout Indiana, including Noblesville, Greenwood, Shelbyville, Franklin and Mooresville.
Indiana American originally requested a 9.8-percent rate increase the company filed in May.
“Through intense negotiations in recent weeks, we have been able to reach an agreement that will save consumers more than $12 million each year,” Indiana Utility Consumer Counselor David Stippler said in a written statement. “The agreement dramatically lowers the increase ratepayers could have faced and offers a reasonable outcome to a contentious case.”
The agreement also puts a moratorium on any new Indiana American general rate case filings until 2018.
The settlement does not specify how the rate increases will be allocated among service territories or residential, commercial, or industrial customers.
The agreement was filed earlier this week with the Indiana Utility Regulatory Commission, which could approve, reject or modify the settlement.