Columbus City Council approved the first reading of a rate increase for the water utility on Tuesday and will vote on it again on Aug. 4.
The rate petition, if approved by the council, could be filed with the Indiana Utility Regulatory Commission around mid-August. If the commission approves the rate increase, it could take effect around August 2021.
Columbus City Utilities executive director Scott Dompke said at a recent board meeting that the rate increase is a necessity for Columbus.
“The water utility must be a sustainable, viable financial entity to be able to do the things that it does to support this community,” he said.
In most cases where the state commission approves an increase, the rate hike is less than what is originally requested. If the proposed increase is approved in its entirety, Dompke said Columbus would still be paying less than the average Indiana water bill of $28.89 per month for 4,000 gallons.
Right now, Columbus residents who use 4,000 gallons pay $9.82 per month. Under phase one, they would pay $14.06 per month. Under phase two, they would pay $16.44 per month. And in phase three, they would pay $17.49 per month.
At this time, it’s anticipated the first phase of the rate case will go into effect on Aug. 1, 2021. The next phase would begin Jan. 1, 2023 and the third phase would kick in on Jan. 1, 2024, Dompke said.
Columbus City Utilities currently has a five-tiered rate structure for the first 10,000 gallons, the next 40,000 gallons, the next 250,000 gallons, the next 700,000 gallons and over 1,000,000 gallons. Part of the rate case is a new rate structure that only has three tiers: the first 15,000 gallons, the next $285,000 gallons and over 300,000 gallons.
For more on this story, see Thursday’s Republic.
