Published: October 29, 2009 11:50 am      

Water rates, quality questioned during hearing

Water company wants to raise average bills by 38 percent

Indiana American Water Co.’s request to raise rates by up to 38 percent was met with financial worries and pejorative comments about water quality Monday night.

However, company President David K. Baker said the increase is needed to cover the cost of infrastructure improvements.

The comments were made at an Indiana Utility Regulatory Commission field hearing, which took place as the regulatory commission decides whether or not to approve the rate increase, which the company requested earlier this year. Monthly residential rates in Clarksville, Jeffersonville and New Albany would rise from about $29.50 per month for 5,200 gallons of usage to about $41.

“The rates are plenty high for seniors,” said Ida Callahan, who was in attendance.

She also commented on the quality, saying “the water is clear to the eye but it leaves a bad, hard substance on [a drinking] glass.”

“You need to drink bottled water,” she said, noting that she doesn’t even give tap water to her dog.

She noted that her bathtub, teapot and her Teflon pots have been damaged by white film that the water leaves behind. Baker attributed that to hard water and calcium deposits, noting that the water meets safety standards.

Nieta Marsh said she sometimes turns on her faucet and immediately notices a chlorine odor.

“We never drink it,” she told the commission.

The timing of the rate increase also sparked concern.

“How on earth — at a time when people are getting thrown out of their homes, barely making it — can they possibly ask for a rate increase?” Marsh asked.

Residential bills weren’t the only worries.

Gus Luckert, energy manager for Greater Clark County Schools, said the hike could impact education.

Between December and August, the school system paid about $56,000 in water bills, he said. It could pay about $21,000 more for a similar period if the increase is approved.

“That 21,000 would definitely have an adverse affect on the school system,” he said.

Baker said that water infrastructure improvements —including filtering upgrades — already have taken place.

“We recover our costs in arrears,” he said, noting that about $9 million in infrastructure work has taken place in the area.

He admitted, “The economy is bad. “We feel our consumers’ pain,” he said, noting that when a factory or business closes in the area, the water company suffers too.

Addressing the issues of water quality, he said that the number of complaints about discoloration has dramatically decreased since the company replaced its filter media — silicate sand, anthracite coal and gravel.

Any other complaints — such as one woman’s comment about her eroding spigot— could be addressed on a case-by-case basis, he said.

The commission did not make a decision, as Monday’s hearing was just the latest step in the rate increase process. The goal Monday night was to collect testimony, which the commission will use to weigh Indiana American’s request against the wishes of the public and the Indiana Office of Utility Consumer Counselor, which works for consumers in such rate requests. The commission does not have to grant Indiana American’s full request, or any hike at all.

Those who couldn’t make it to the meeting have 10 more days to submit testimony on the matter. Written comments — which will be weighed equally with those delivered orally — can be sent by mail, fax or the Internet. Those comments should include the consumer’s name, mailing address and a reference to IURC Cause No. 43680.

They can be sent to Consumer Services Staff, Indiana Office of Utility Consumer Council, 115 W. Washington St., Suite 1500 South, Indianapolis, IN, 46204; Fax: 317-232-5923; E-mail: uccinfo@oucc.IN.gov





ONLINE INFO

• Check out more information about Indiana American Water Co.’s proposed rate increase at in.gov/oucc