Despite negative opinions, Anderson going forward with water rate plans
ANDERSON — Although the Indiana Utility Consumer Counselor has issued multiple opinions concerning Anderson's water rate case, city officials intend to move forward with their plans.
In three different opinions, the Indiana Office of Utility Consumer Counselor questioned the validity of the city's plans for the water department.
One opinion recommended the requested rate increase be reduced from 121% over five years to 75%.
The last water rate increase was approved by the state in 2015.
If approved, the rate for an average residential customer is expected to increase from $23.51 to $55.25 starting in 2029.
Large customers of the water utility will see an increase from $117,772 monthly to $434,171 starting in 2029.
A second opinion stated that Anderson didn't need to build a new treatment plant and well field in south Anderson, noting that the current system loses 20% of the water.
The third opinion stated that instead of a $130 million project, the city's funding request for the projects should be $102 million.
Last year, the Anderson City Council approved $130 million in bonds over the next three years.
The council has already approved $9 million in American Rescue Plan funds, and the Anderson Redevelopment Commission is providing $19 million toward the project.
All the work is scheduled to be completed by September 2029, with work on the initial phase starting in later this year.
Anderson officials have responded to the opinions and the Indiana Utility Regulatory Commission has a hearing set for May 8.
'There is a legal process for acquiring approval from the IURC,' Anderson Mayor Thomas Broderick Jr. said. 'This includes a built-in mechanism for another bureaucratic agency, the Indiana Office of Utility Consumer Counselor, that acts, for the lack of a better description, as the 'loyal opposition' to petitions.'
Broderick said the IURC is not bound to accept the opinions or positions of the consumer counselor.
'This is a process,' he said. 'These are opinions from people who don't know much about Anderson.
'They are dead wrong about the plant on the south side,' Broderick said. 'We're committed to move forward.'
Broderick said the existing Wheeler Avenue plant is 75 years old and that the wells supplying water to the plant are in a federal 'super fund' site and production has dropped by 50%.
'We have already made a lot of internal hard choices,' he said. 'We want to be fair to the rate payers.'
Broderick said shutting down the Wheeler Avenue plant will take care of many problems.
'You can't replace 400 miles of pipes overnight,' he said. 'Many of them have been in place for over 100 years.'
Broderick said the city is in the process of expanding the Lafayette water treatment plant to handle 14 million gallons of water per day, and additional property has been purchased for new wells to supply the plant.
'We all know the growth is coming up Interstate 69 and more people and businesses will be coming to Anderson,' he said. 'We want to meet those requirements. It's important to me that we don't do anything that keeps people from coming to Anderson.'
Broderick said the city has contracted to purchase property for new well fields and a treatment plant in south Anderson.
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