Citizens Energy Group to improve Indiana water system

Citizens Energy Group will invest nearly $114m to improve its water system following approval of a water rate hike by the Indiana Utility Regulatory Commission.

The water rate hike will raise the average residential customer bill by less than $1 per month. The investment will be used to reduce costly water main breaks, expand sources of supply and improve water treatment plants.

Among the planned projects that are expected to be completed over the next two years are a new groundwater treatment plant near Morse Reservoir, stabilisation of the banks of the historic Central Canal, a booster station to improve water pressure on the northwest side, and several large water main replacement projects.

The company said that years of under-investment from previous owners has resulted in around 700 water main breaks per year, wasting three billion gallons of water.

Since acquiring the system in 2011, Citizens Energy Group has invested $95m to improve system reliability, water quality, and water treatment technology.

Citizens Energy Group president and CEO Carey Lykins said that the company has begun to make progress modernising the water system, but much work still remains.

"The water distribution system, some of which is more than 100 years old, continues to be plagued by main breaks that not only waste water, but also destroy roads and interrupt service to tens of thousands of customers. The investments we will make over the next two years will reduce waste, improve reliability and create or support hundreds of construction jobs," Lykins added.