08-03-2025
Local residents voice concerns about Anderson water rate increase
ANDERSON — Several area residents spoke against a proposed rate increase for the Anderson Water Department.
The Indiana Utility Regulatory Commission conducted a public hearing Thursday on the city's proposed rate increase to finance up to $130 million in infrastructure improvements.
The city's water rates have increased twice in the past 25 years.
As proposed, the rate for a residential customer using 4,000 gallons per month would increase in five phases.
The current rate is $24.95 per month and, if approved by the state regulatory commission, would climb to $47.58 per month in 2029.
Large customers of the water utility will see an increase from $117,772 monthly to $434,171 starting in 2029.
The IURC will receive testimony from the Indiana Office of Utility Consumer Counselor on March 20; rebuttal testimony from the city is scheduled for April 16, with another hearing set for May 8.
A final decision is expected in the fall.
Residents that testified they were concerned about the amount of the rate increase and the city's plans to build a new water treatment plant in the south of Anderson and new wells.
'My water rights are being impacted,' Amy Gustin said.
Gustin said the city's water utility currently has existing debt of $12 million through 2035 and anticipates $8 million in annual debt to fund the project.
She asked the IURC to delay making a decision because of the considerable debt.
'People have wells,' Gustin said. 'Those wells will be impacted.'
Cheryl McKinney asked commission members to consider the people of Anderson, which she said is not a wealthy community.
Gary Louderback said Anderson wants to drill new wells that will impact the aquifer providing water to residential customers.
'The community is not what it used to be,' he said. 'The industry is gone and there is an aging population.'
Sonja Dalton said she objects to the drilling of new wells in southern Madison County, adding that existing wells would be compromised.
'I don't have the money to pay for a new well, like many of my neighbors,' she said. 'I would like to see a better plan for this community.'
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 later this year.
Both Anderson and the town of Pendleton have submitted applications with the IURC to increase the service areas for their respective water utilities.
