INDIANAPOLIS — The Indiana Office of Utility Consumer Counselor (OUCC), industrial customers, and Citizens Energy Group have reached a settlement agreement in Citizens’ pending sewer rate case. If the agreement receives approval from the Indiana Utility Regulatory Commission (IURC), it will save customers more than $25 million annually when compared to the increased revenues sought under the utility’s original request.
The IURC will review the agreement as part of its deliberations. Any settlement agreement filed with the IURC may be approved, modified, or rejected.
Under the agreement’s terms:
• Citizens’ sewer utility in Marion County — which does business as CWA Authority, Inc. — will receive an overall increase of approximately $61.3 million (or 27.6 percent) in its annual operating revenues. By comparison, Citizens had requested an increase of about $87 million (approximately 42 percent) when it filed the sewer rate case in September 2015. The increase will be implemented in two phases.
• The monthly fixed, base charge for residential and commercial customers will rise from $13.82 to $18.75. The utility’s original request would have raised this charge to $24.63.
• The settling parties agree not to challenge the IURC’s authority to approve an order regarding the wholesale wastewater treatment rates Citizens charges to seven neighboring utilities. Wholesale charge issues are being addressed in a separate subdocket pending before the IURC.
• A crisis fund will also be established to assist income-eligible customers with wastewater bills. Citizens will contribute $100,000 annually to the fund from non-rate revenues.
The agreement will have no effect on rates for water, natural gas, or other utility services. A settlement agreement on Citizens’ water rate request is pending in a separate case before the IURC.