The state’s utility regulators paid attention to concerns raised by Indiana American Water customers in Gary and Lowell during the latest rate case and urged the water company to address them.
The Indiana Utility Regulatory Commission noted in its Feb. 14 decision on the water company’s rate increase that, during a public hearing last July, many customers from Gary complained about Indiana American’s “lack of local corporate presence … and the closure of Indiana American’s in-person payment center, which has been a hardship.”
When asked at the hearing where customers could make payments, a company representative cited 12 locations around the Gary area where bills could be paid. Several were Speedy Check sites.
“We find it important,” the IURC order said, “for customers to have access to locations where they can make payments, preferably without additional fees, and get questions about their accounts answered.”
The IURC noted that it approved the water company’s request nearly 30 years ago to consolidate customer service activities to a central location for efficiency and cost savings. Indiana American has customers from towns and cities across Indiana from the Ohio River to Lake Michigan.
“However, consolidation should not result in the loss of important customer services,” the IURC said.
It encouraged the water company “to review the feasibility of offering in-person customer service option in light of financial, operational, and customer convenience cost-benefits.”
The IURC order also mentioned water customers in the Lowell area, where Indiana American purchased the water utility in 2021.
A witness for the Office of Utility Consumer Counselor told the IURC that Lowell had experienced 28 boil-water advisories, resulting from 12 water main breaks, in the first six months of 2023.
The OUCC witness asked the IURC to order Indiana American to evaluate the issue and report on proposed solutions within 90 days.
A company witness said it already was evaluating the system and “making capital investment to address the aging infrastructure,” the IURC order said.
The state regulators told Indian American to prepare a report “on the issues seen in the Lowell system and its proposed solutions” within 90 days.
The status of a dormant water treatment plant in Lake Station also came to the IURC’s attention.
Indiana American bought Lake Station’s water system, including the treatment plant, in 2019.
The Office of Utility Consumer Counselor recommended removing the Lake Station water treatment plant and its wells from the company’s rate base, contending that it wasn’t needed.
The OUCC said the Lake Station treatment plant had been out of service since Feb. 5, 2019, and said Indiana American didn’t need it as a backup during peak-demand times or emergencies.
It wasn’t used even when Indiana American’s Ogden Dunes plant was out of service temporarily, the OUCC said.
Indiana American contended that the plant is “fully operational” and would be ready to produce potable water within 24 hours.
The IURC sided with the company on that issue.
Tim Zorn is a freelance reporter for the Post-Tribune.
