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Experts Disagree On How To Fund Indiana's $15 Billion Water Bill

Laowai Kevin
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https://www.flickr.com/photos/laowaikevin/

Water utility officials and consumer advocates agree that Indiana faces a critical need to upgrade and replace its water infrastructure, but differ on the best way to fund those improvements.

Best estimates from the state indicate that Indiana’s water utilities need around $15 billion to improve their infrastructure.  And National Association of Water Companies representative Eric Thornburg says utilities recognize the critical need – but require revenue stability to help address it.

“90 percent of the cost [is] fixed," Thornburg says. "About 65 percent of our revenues are based on how much water people consume.”

Citizens Action Coalition executive director Kerwin Olsen says while the state contemplates how to stabilize revenues for utilities, it must also consider affordability for the customer.  And he says that conversation has to begin with defining affordability.

“Households in the upper income thresholds, in excess of $100 thousand, spend on average 2-4 percent on their utility bills," he explains. "When you get to households making $50 thousand a year or less, they have energy and utility burdens far in excess of 25 to 30 percent a month in terms of their disposable income.”

Olsen notes that helping ensure customers can pay their bills keeps them in the utility system, which helps the utilities maintain revenue stability.  

Brandon Smith is excited to be working for public radio in Indiana. He has previously worked in public radio as a reporter and anchor in mid-Missouri for KBIA Radio out of Columbia. Prior to that, he worked for WSPY Radio in Plano, Illinois as a show host, reporter, producer and anchor. His first job in radio was in another state capitol, in Jefferson City, Missouri, as a reporter for three radio stations around Missouri. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.
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