Abstract newspaper in a fluid shape, 3d rendering
A rural water utility serving more than 8,600 local homes and businesses in Bartholomew County has asked to increase its rates.
The Southwestern Bartholomew Water Corp. gave notice Wednesday that the utility anticipates charging an additional 18-cents per 1,000 gallons of water.
This type of increase, as well as Southwestern rate hikes enacted in 2021 and 2023, is known as a wholesale rate tracker increase. The term refers to a rate adjustment mechanism for the quick recovery of special utility costs without any regulatory review.
The rate tracker hikes since 2021 are based solely upon increased costs Southwestern must pay to acquire water wholesale, according to the filing, Southwestern Bartholomew General Manager Kimberly D. Keller said. She added her utility purchases 100% of their water from Columbus City Utilities.
This will be the third year of a gradual rate increase approved by the Columbus City Council in 2021. In November, Columbus City Utilities stated they expected their water rates to go up 7.3% in 2024, while sewage rates are expected to rise by 6%.
In order to cover these increased costs, the Southwestern water rate tracker went up by an additional 89 cents per 1,000 gallons on March 29, 2021. Southwestern Bartholomew raised rates a second time on Jan. 18, 2023 by 28 cents, bringing the rate tracker total to its current $1.17 per 1,000 gallons, Keller said.
The latest rate increase request falls into the category of a 30-day filing, which is the minimum amount of time for the Indiana Utility Regulatory Commission (IURC) to make a decision. But since Southwestern is only seeking to recoup losses, Keller said she’s unaware of any circumstance where the utility’s request will be turned down.
“It’s basically been approved,” Southwestern Bartholomew General Manager Kimberly D. Keller said.
Nevertheless, the IURC is taking public comment and objections on the matter at this time.
The SBWC rates listed below includes the rate tracker increases:
- First 3,000 gallons – after 2021 hike: $10.66 – after 2023 hike: $11.83 – after 2024 hike: $12.01
- Next 7,000 gallons – after 2021 hike: $9.78 – after 2023 hike: $10.95 – after 2024 hike: $11.13
- Next 10,000 gallons – after 2021 hike: $8.22 – after 2023 hike: $9.39 – after 2024 hike: $9.57
- Next 40,000 gallons – after 2021 hike: $6.76 – after 2023 hike: $7.93 – after 2024 hike: $8.11
The 2024 rate tracker increase may be adjusted by state regulators, Keller said.
In addition to the rate trackers, customers are required to pay a minimum monthly charge. The lowest is $31.98 for homes and businesses using a maximum 3,000 gallons with a 5/8-inch meter.
It’s likely the increase will be included in the charges that reflect this month’s usage that will be billed in February, Keller said.
In November, officials at Columbus City Utilities said they would conduct a rate study in 2024 to determine if or when the utility will need additional increases.
Where to comment
Objections to a proposed increase of 18-cents per 1,000 gallons of water filed by the Southwestern Bartholomew Water Corp. can be made to:
- Secretary of the Indiana Utility Regulatory Commission (IURC), 101 W Washington St, Ste 1500 E, Indianapolis, IN 46204.
- Office of Utility Consumer Counselor, 115 W.Washington St, Ste 1500 S; Indianapolis, IN 46204.
- Phone: 1-888-441-2494.
Objections to a proposed increase of 18-cents per 1,000 gallons of water filed by the Southwestern Bartholomew Water Corporation can be made to:
Secretary of the Indiana Utility Regulatory Commission (IURC), 101 W Washington St, Ste 1500 E, Indianapolis, IN 46204.
Office of Utility Consumer Counselor, 115 W.Washington St, Ste 1500 S; Indianapolis, IN 46204.
Phone: 1-888-441-2494.
