Columbus City Utilities customers can expect to see an increase in water rates starting in August.
The Utilities Service Board has adopted the new water rates, which were approved by the Indiana Utility Regulatory Commission (IURC) in late March.
Interim Director Keith Reeves said that following the board’s approval, the rates will go to the Columbus City Council. He believes they will be considered in the form of an ordinance, which would require two readings to pass.
Reeves said that, assuming city council gives its approval, utilities expects the rates to take effect in July; however, the changes probably won’t show up on customers’ bills until August.
The IURC’s order on the rate case authorizes the city to increase rates and charges to produce “additional revenue of $3,311,396, or an overall increase of 74.80%.”
The increase is scheduled to take effect in three phases:
Phase 1: 44.30% increase (which goes into effect once the IURC issues an order in the case)
Phase 2: 12.99% increase (which goes into effect on Jan. 1, 2023)
Phase 3: 7.21% increase (which goes into effect on Jan. 1, 2024)
The above rates were the result of a settlement agreement between the utility, the Indiana Office of Utility Consumer Counselor (OUCC) and the Southwestern Bartholomew Water Corp. (which is an intervenor in the case and one of the city’s wholesale customers). The IURC chose to approve the settlement agreement in its order on the rate case.
The total rate of increase across customer classes is 74.85%, according to the settlement. Exact rate increases vary; residential customers will see an increase of 70.52%. According to the Office of Utility Consumer Counselor, monthly residential water charges for 5,000 gallons, currently $11.43, will rise to $19.80 once the rates are fully implemented in 2024.
The settlement also includes other items, such as authorizing Columbus to issue a principal amount of up to $22.2 million of long-term debt, subject to true-up.
According to the OUCC’s website, the city “cites increases in operating and maintenance costs as reasons for its (water rate) request, along with infrastructure improvements for which it seeks IURC approval to issue up to $22.2 million in bonds.” Projects planned include new wells, a new storage tank and distribution mains, lab and treatment plant improvements, new meters and more.
This is the city’s first water rate increase in more than 25 years. The utility initially requested a 79.46% increase over three phases.
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More information about Columbus City Utilities’ water rate case is available at www.in.gov/oucc/2781.htm.
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For additional coverage of the city’s proposed sewer rate increase, see Page A3.
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