City water rates may increase
By Seiji Ohashi
Staff
Writer
Purdue students could expect an increase in their
water bills, based on the pending decision being made by the commission
that regulates Indiana utilities.
The Indiana-American Water Company, Inc. has recently
submitted a proposal to the Indiana Utility Regulatory Commission to
increase water rates and charges in many Indiana cities, including West
Lafayette. The Indiana Office of Utility Consumer Counselor, an organization
that makes sure utility companies don’t get more income than what
they are entitled to by Indiana state law, is scheduled to file any
written testimony with the Indiana Utility Regulatory Commission on
or before Jan. 9. Written testimonies support or oppose the increases
proposed by the company.
"The IURC (Indiana Utility Regulatory Commission)
is basically the judge and jury of this decision," said Anthony
Swinger, a representative of the office of utility consumer counselor.
In 1999, the Indiana-American Water Company acquired
other utility companies, including United Water West Lafayette, Inc.,
the company that used to provide water services in the West Lafayette
area. In that year, the company set rates that are still in use today
for the 262,000 customers in 35 Indiana communities that they provide
service to.
Utility companies are limited to increasing prices
every 15 months and a decision on the proposal to increase water rates
in West Lafayette is not expected until sometime in 2002, said Swinger.
According to Swinger, one reason the company is
seeking rate increases is to pay for improvements for its service. Improvements
include new well fields, meter replacements and projects involving water
mains.
Another reason for proposed rate increases was
to pay for costs related to Y2K compliance and environmental regulation.
The pending proposition includes price increases
that vary from 2.4 percent to 50.43 percent, with West Lafayette being
the lowest. The current average monthly rate for the 8,106 customers
that the company has in West Lafayette is $18.02 and would rise to $18.45
if the proposal were accepted. Although this price increase would not
affect local residents greatly, areas such as northwest Indiana could
see monthly average rates go up from $18.30 to $27.53.
"I think that raising the price of water is
a smart idea because our county's wastewater management system is in
serious need of help," said Jessica Milchak, a junior in the School
of Science.
As of now, the office of the utility consumer counselor
has not decided on supporting or opposing the proposition.
"At this point we are reviewing the proposal,"
said Swinger.
Consumers that wish to give feedback on the proposal
may contact the office of utility consumer counselor at (888) 441-2494.
The office of utility consumer counselor also offers "A Guide to
State Utility Regulatory Proceedings," among other publications
for utility consumers.
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