Rate Increase Request to Fund System Upgrades

INDIANAPOLIS – The Indianapolis Department of Waterworks proposes to invest $111 million over two years in its drinking water system to comply with unfunded federal mandates and make needed improvements to Indianapolis Water, the utility that serves nearly 1 million people in Central Indiana.

To fund these investments, Waterworks today petitioned the Indiana Utility Regulatory Commission to increase rates by 34.97 percent. The average residential customer using 5240 gallons of water per month would see their monthly bill rise by about $8, from $23.22 to $31.33.

“In our capital plan, we have presented projects absolutely necessary to producing clean, safe drinking water for our customers,” said Matthew T. Klein, executive director of the Department of Waterworks. “Some projects are unfunded mandates from the federal government. Others are necessary to ensure an adequate water supply or to repair an aging system.”

Below is a list of major projects included in the proposed capital plan.

Unfunded Mandates: $23.2 M
The U.S. Environmental Protection Agency requires all surface water treatment plants to comply by 2012 with the Long Term 2 Enhanced Surface Water Treatment Rule. The rule requires a new disinfection system using ultraviolet reactors to add another layer of protection against viruses and potential pathogens, such as cryptosporidium and giardia, which can cause gastro-intestinal illness.

Projects to install ultraviolet disinfection at the Fall Creek Treatment Plant and White River North Treatment Plant are included in the proposed capital plan. Fall Creek will cost about $6 million and White River North about $8.8 million.

Currently, the T.W. Moses Treatment Plant is under construction to install UV disinfection. Construction at the White River plant is completed, and the system is undergoing testing.

Alternate Intake at White River: $27.5 M
The 7-mile Central Canal provides raw water to the White River Treatment Plant, which produces 60 percent of the system’s drinking water. If the Broad Ripple Dam or the canal fails, there would be no water flowing to the plant. An alternate intake, proposed to be built on the White River at Riverside Park, will provide a necessary backup water supply for the White River Treatment Plant and allow for future canal repairs.

Distribution System: $31.9 M
Waterworks needs funding to replace aging water mains, install reinforcement mains, relocate water mains, and related hydrants, valves, and meters, due to city or state road construction projects and to extend water mains to unserved areas. Indianapolis Water maintains 4,264 miles of water mains.

Riverside Pumping Station Upgrades: $4.3 M
Waterworks needs to upgrade and modernize Riverside Pumping Station’s electrical system switchgear and construct an emergency pumping source. This will enhance the pumping station’s efficiency and provide a safer work environment for employees. Riverside was built in 1906 and originally housed a giant steam engine pump.

White River Treatment Plant Pump Switchgear: $4.8 M
This project will upgrade and modernize the pump’s electrical system switchgear, enhancing the pumping station’s efficiency and providing a safer work environment for employees.

Broad Ripple Dam Repair: $1.1 M
The Broad Ripple Dam needs to be repaired after high water lifted two concrete slabs from its apron last February.

Additional capital projects include drinking water well rehabilitation, treatment process upgrades and an automatic meter reading pilot program.

The IURC process is expected to take 9 to 12 months before new rates are approved by the Commission.

The Department of Waterworks is governed by a 7-member bipartisan board of directors. The department owns and manages Indianapolis Water, which serves about 1 million people in Central Indiana, and contracts the system’s operation to Veolia Water Indianapolis.

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