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Ellettsville approves petition to IURC to pass Bloomington water increase through a tracker
Summary
The council approved filing a petition with the IURC to implement a water-cost tracker after Bloomington Utilities's rate increase; staff said the town's purchased water costs rose from about $1,000,000 to roughly $1,353,000 under the new Bloomington rates and proposed a $0.99-per-1,000-gallon tracker to cover the change.
Ellettsville's council on July 14 authorized town staff to petition the Indiana Utility Regulatory Commission (IURC) for a wholesale water-cost tracker intended to pass through higher purchase costs from the City of Bloomington Utilities.
Trevor Sager told the council that Bloomington's utilities successfully petitioned the IURC for a rate increase and, because the town purchases water from Bloomington, the town now faces a higher wholesale cost. "The city of Bloomington utilities has successfully petitioned the IURC for a rate increase," Sager said. "Because the town buys its water from the city of Bloomington, that unfortunately means that the town needs to raise its rates." He said the tracker under consideration is $0.99 per 1,000 gallons.
Staff provided figures showing the town purchased water cost was just over $1,000,000 last year and would grow to about $1,353,000 under the new Bloomington rates. Town staff said the tracker is intended to maintain the baseline rate and cover the increased wholesale cost rather than create additional margin for the town.
Council members discussed the proposal in the context of prior rate increases and the town's phased adjustments in 2024. After discussion, a motion to approve filing the petition with the IURC was made, seconded and approved by roll call.
What happens next: If the council approves the formal ordinance and the IURC grants the petition, the tracker would be used to adjust retail bills to reflect wholesale cost changes. The council stated the ordinance is on first reading and will return for public hearing and final passage at a later meeting.
