ANDERSON — The Indiana Utility Regulatory Commission has approved a significant increase in the Anderson Water Department service area.
The state agency recently released its determination, which will become final by Nov. 1.
The city of Anderson petitioned the Regulatory Commission to become the exclusive provider of water services to within four miles of the corporation boundaries.
Anderson is in the process of spending $130 million to improve water department infrastructure to include new wells and a new treatment plant.
The expansion of the water territory extends into Fall Creek and Adams Township to the south of the city; west to within a half-mile of the town of Lapel and north to within one-mile of the town of Frankton.
The town of Pendleton sought an expansion in the same areas as Anderson, but the IURC decided in Anderson’s favor.
“Based on the evidence presented by the parties, we find that the public interest would be served by having Anderson be the exclusive water service provider,” the IURC decision states.
“We also find that the present and future of economic development within Anderson’s Service Area will be best served by having Anderson be the exclusive water provider to the area due to the location of Anderson’s current and planned water facilities,” the decision continued.
Evidence was presented by representatives from Pendleton, Fall Creek and Adams townships and the South Madison Fire Territory in opposition to the Anderson request.
“This is a great outcome for both the city of Anderson and for future water users as it will provide opportunities for continued growth in our city and county, strengthen our continuing economic development effort, and provide future customers a plentiful, clean, safe and affordable water source,” Anderson Mayor Thomas Broderick Jr. said Thursday.
He noted the IURC is currently considering a request by the city to increase water rates through a five-phase implementation plan.
“All of these efforts have been done to hold rates to their lowest possible levels while ensuring we can have the needed water infrastructure that is safe, and plentiful enough to allow us to grow our population and bring in new homes and businesses,” Broderick said.
Scott Reske, Pendleton town manager, said Thursday the town is not likely to appeal the IURC decision.
“This is the most important ruling in Madison County in decades,” Reske said. “This will affect property values.”
He said Anderson could eventually seek to annex the areas included in the new water department service area.
“The towns could extend their boundaries,” Reske said, if there were any attempt by Anderson to annex the area.
Anderson is purchasing 31 acres at a cost of $1.3 million, according to Neal McKee, superintendent of the Anderson Water Department.
McKee said the city intends to open a well field on the property. It’s also the possible site of a new water treatment plant to replace the 75-year-old Wheeler Avenue plant, he added.
Earlier this year, the Anderson Board of Public Works approved a $6 million contract with Patterson Horth, an Indianapolis based construction contractor, to expand the city’s Lafayette water treatment plant capacity from 10 million gallons to 14 million gallons daily.
The plant expansion is expected to be completed in a year.
All the work is scheduled to be completed by September 2029, with the initial phase starting this year.
Included in the first bond is the beginning of a process to replace lead service lines in several neighborhoods and scattered sites. It also includes the development of two new wells north of the city involving a new line to the Lafayette treatment plant and a new transmission line from Cross Street to the water tank on Eighth Street.
A second bond, to be issued in 2026, will be used to open the new well field and treatment plant in south Anderson and close the Wheeler treatment plant.
The final bond issue in 2027 will be used to replace lead pipes in the remaining areas of Anderson.
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