Water-service rates are based on the real costs of treating and delivering water to customers, and are regulated by state public utilities commissions (PUCs). 

To determine rates, we work with PUC staffs to study costs of construction, maintenance, operation, administration and financing. Once the studies are complete, the company and PUC present any differing conclusions before an administrative law judge. Based on the judge’s opinion, the PUC sets the water rates.

Rates charged for service may vary based on a customer’s meter size. All customers pay the same rate for water usage. Customers are billed based on a regular meter reading, either monthly or quarterly for residential customers as well as for commercial and other public authority customers.

Rates can vary based on the cost of providing service in each of the communities we serve. Before it reaches your home or business, water is treated through an intricate treating and testing process to help ensure it meets or surpasses rigorous drinking water quality standards.

You can learn more about the rate setting process in our white paper: Challenges In The Water Industry: The Rate Approval Process.

Indiana American Water Rates

Tax Cuts and Jobs Act notice – The Indiana Utility Regulatory Commission issued a final order on June 26, 2019 dealing with the impacts of the Tax Cuts and Jobs Act (TCJA) of 2017. The order provides a one-time refund reflecting the amount collected in revenues after the TCJA was implemented, but before rates were changed, to be distributed to customers over a twelve-month period starting in May 2020. 

The refund for the typical residential customer will total approximately $19.26, or approximately $1.60 per month for one year. 

The refunds shall be flowed to customers as a bill credit commencing with implementation of Step 2 rates (May 2020) ratably over a twelve-month period allocated among customer classes in accordance with the allocation methodology associated with the underlying rates that generated the regulatory liability. 

Indiana American Water already reduced its rates by 4.4 percent on August 1, 2018 as a result of the impact of the TCJA.

Information on Indiana American Water's Rate Request, Settlement Agreement & Order - Cause No. 45142

Indiana American Water filed a petition with the Indiana Utility Regulatory Commission (IURC) on September 14, 2018 to adjust its rates for water service in the communities it serves across the state. A settlement agreement was reached between the company and the Indiana Office of Utility Consumer Counselor (OUCC) and several other interested parties on March 18, 2019. The IURC approved that settlement agreement and issued an order on June 26, 2019 adjusting the company's rates and tariffs for water service across the state.

Indiana American Water’s ongoing infrastructure investments are the primary driver behind the increase. The company included $542 million of water infrastructure investments in its request to increase rates. These types of investments are necessary to maintain and enhance service, water quality, system reliability, and fire protection capabilities for customers while keeping the cost of water service for most households their most affordable utility bill at about a penny per gallon.

Prior to its most recent filing in 2018, the company last filed for new rates through a general rate filing in January 2014 and received an order from the IURC in January 2015.

To learn more about the filing and the settlement agreement, you can view a news release with more details. You can learn about the IURC's approval/order on the rate request by viewing a news release that is posted on the company's website. You can also view information about the rate request at the Indiana Utility Regulatory Commission's Online Services Portal for Indiana American Water's docketed case.

Information on Indiana American Water's filing to update its connection fee tariffs

The Company is seeking approval to update its Connection Fees to include the additional cost from the tax on such fees established in the 2017 Tax Cuts and Jobs Act (“TCJA”).  In accordance with the TCJA, effective January 1, 2018, utilities including Indiana American Water will have to begin paying incomes taxes on monetary contributions including connection fees. A copy of the Tax Gross Up on Connection Fees legal notice is available on our website. You can also view information about the rate request at the Indiana Utility Regulatory Commission's Online Services Portal by searching for "Indiana American Water" in the "Utilities" box at this location: