Christopher Johnson, superintendent of Michigan City Waterworks, told the Common Council on Dec. 2 that the utility plans to file a rate case with the Indiana Utility Regulatory Commission and is preparing to sell bonds to finance urgent capital work. "Our current residential average monthly bill... is $23.09," Johnson said, adding that the board approved a rate ordinance for the purpose of filing a case.
Johnson provided a 20‑year capital improvement plan and singled out near‑term priorities: pressure and storage improvements, water main replacements and several efficiency and safety projects. He said construction costs are roughly $43.6 million and non‑construction project costs (engineering, permits) about $7 million — a combined total he described as “about $50,000,500.” The Waterworks Board plans to phase work and to sell about $35 million in bonds in the first phase and roughly $15.6 million in 2029.
On customer impact, Johnson proposed a three‑year, phased rate schedule. He described a residential water‑only bill averaged to common units rising from $23.09 to $32.30 in 2027, $35.58 in 2028 and $39.20 in 2029 — an overall increase of about $16.11 after three years. He noted the planned future bill would still sit below the state average cited on his comparison chart. The board plans a public hearing Dec. 9 and to file its case with the IURC before year end to use 2024 as the test year.
Johnson said the IURC and the Office of Utility Consumer Counselor will review projects and rates, and any final change to customer bills would come only after their reviews. The council did not take a vote on the request at the meeting; Johnson asked for a council member to sponsor a confirming resolution at a future meeting and provided contact details for follow‑up questions.
Next steps: the Waterworks Board will hold a public hearing on Dec. 9, file the case with the IURC by year end and await regulatory review that could extend into 2026.