IURC Withdrawal

Important Notice

We are currently considering withdrawal from regulation by the Indiana Utility Regulatory Commission (IURC) and are asking for your input. As a small, nonprofit water utility, we believe local oversight will allow us to operate more efficiently, respond more quickly to system needs, and better serve our community. Indiana law allows utilities like ours to make this transition, and many similar utilities already operate under local control. Your voice is important in this decision, and we encourage all customers to participate in the upcoming vote. There will be a meeting to discuss this decision on May 14th, 2026 at Unionville Elementary, where customers can vote in person. Registration time starts at 6:00PM and the meeting will begin at 6:45PM. There will also be the option to vote via absentee ballot between May 4th and May 9th, request for a ballot at our water office.

Details regarding this is in the announcement below:

IURC Withdrawal Letter

Frequently asked Questions & Answers

B&B Water Project is a nonprofit, member-owned utility. This means the system is owned by its customer, not private investors, and it doesn’t generate a profit. All revenue collected from customers is used directly for operating costs, system maintenance, repairs, and necessary improvements to the water system.

What is the IURC and what does it do?

The Indiana Utility Regulatory Commission (IURC) is a state agency that regulates utility rates, financing, and certain operational decisions. Utilities must receive approval from the IURC for rate changes, loans, and major projects.

Why are we considering withdrawing from the IURC?

The main reason is the time and cost associated with regulatory approval. Processes such as financing and rate cases can take many months or even years, which can delay needed repairs and improvements to the system. For example, financing approval has taken over two years, and additional steps are required even after approval.

The most recent rate case highlights the challenges associated with IURC oversight. The most recent rate case was filed in April 2025 and went into effect in February 2026, creating about $9,000 per month in additional revenue for operations and repairs. Since approval took approximately 9 months, the system missed out on roughly $81,000 that could have been used for improvements during that time. This is not including the approximate $16,000 spent working to complete the rate case filing process.

They also have authority over service territory, meaning IURC can require a utility to extend water service even in situations where the utility’s engineers determine it may not be in the best interest of the system. Being in IURC moves decisions to Indianapolis, where they don’t know our system, or our customers. Leaving would mean our systems priorities come first and our community controls its own water.

How much does IURC oversight cost?

From 2020 to present, total costs (including regulatory fees, consulting, and accounting) have been approximately $24,000 total, or about $13 per member.

These costs can vary year to year, especially during rate cases.

How will this impact repairs and maintenance?

Leaving the IURC may allow the utility to:

• Access financing more quickly
• Complete projects faster
• Respond more efficiently to system issues

Current priorities include:

• Reducing leaks
• Replacing aging infrastructure
• Improving system reliability

Will water quality be affected?

No. Water quality is regulated by:

• The Indiana Department of Environmental Management (IDEM)
• The Environmental Protection Agency (EPA)

These regulations will not change, regardless of IURC status.

Will leaving the IURC lower my water bill?

Not directly. Leaving the IURC doesn’t reduce the cost of water or operations.

However, it may allow the utility to:

• Complete projects faster
• Avoid regulatory delays
• Reduce certain administrative costs

All rates will still be based on actual system costs.

What controls future rate increases without the IURC?

Rates will still be required by Indiana law to be fair, reasonable, and justifiable.

In addition:

• Rates will be reviewed annually at the annual public board meeting (typically in June)
• Customers will receive advance notice of any proposed changes
• Customers can raise concerns, vote in board elections, or pursue legal review if needed

Will there be a cap on rate increases?

There is no fixed cap or formula (such as tying rates to inflation), because costs like purchased water, repairs, and emergencies are not predictable.

Instead, rates will be based on actual system needs.

Who holds the utility accountable if not the IURC?

Accountability remains local:

• The utility is a nonprofit owned by its customers
• Board members are customers elected from the membership
• Monthly board meetings are open to all members
• Financial information is available for review upon request

Will transparency change?

No. Customers will still have access to:

• Financial reports
• Budgets
• Project plans

All major decisions will continue to be discussed in open meetings.

What happens if I have a billing or service issue?

Customers will continue to:

• Contact the utility office directly
• Work with the board to resolve issues

Policies for billing, shutoffs, and disputes will remain in place.

What is causing recent leaks and boil orders?

These issues are primarily due to aging infrastructure.

While the IURC doesn’t cause these problems, approval delays can slow down large-scale repairs and upgrades needed to address them.

Why is customer vote required?

State law requires that customers (members) vote on whether the utility can withdraw from IURC oversight.

What happens next?

• Customers will vote on the proposal
• If approved, the utility will begin the withdrawal process
• Future rate increases will continue to be guided by actual system costs, state law requirements, and local oversight.
• The annual review process, open meetings, and customer-elected board provide ongoing accountability.