Monthly utility rates may be raised to improve water infrastructure

Next year, IU students residing off campus and Bloomington residents may be paying heftier water bills in order to help fund the improvement of the city’s aging water infrastructure.

The Indiana Utility Regulatory Commission and the Indiana Office of Utility Consumer Counselor had a public field hearing Wednesday concerning the issue.

The City of Bloomington, which submitted its petition for a hearing in August, is requesting the IURC approval for a $42 million bond.

The money would pay for an expansion of the Monroe Water Treatment Plant, the development of a water conservation program, the installation of a second transmission line between Lake Monroe and the city and the improvement of the city’s water distribution system.

In order to pay for those infrastructure improvements, water rates would increase from the current rate of $15.20 to $23.43 for Bloomington residents using 5,000 gallons
a month.

People living outside the city limits would see their rates increase from $15.96 to $24.61.

Two Bloomington residents gave a testimony supporting the rate increases and planned infrastructure projects.

Matt Laherty, a former member for the City of Bloomington Commission on Sustainability, said Bloomington Utilities is doing an excellent job providing water despite the aging infrastructure.

He asked the City of Bloomington to consider implementing a conservation program. Laherty said Bloomington regularly operates at maximum capacity.

“The time to implement a conservation program has passed,” Laherty said.
Larry Jacobs, a representative for the Greater Bloomington Chamber of Commerce, focused his testimony on the potential benefits for the community and local businesses.

“Both maximum-day and average-day water use rates are increasing,” Jacobs said. “As our community expands and grows, so does our need for a clean water supply.”

The City of Bloomington and the Indiana Office of Utility Consumer Counselor are both in the evidence gathering stages of the cases. Both parties will present their cases at a hearing Jan. 19, 2011.

It will not be known whether water rates will be raised until after the hearing.