The Indiana Court of Appeals upheld most of the ruling made by Daviess Circuit Judge Greg Smith stopping a 57% rate increase for Daviess County Rural Water.
Today’s Washington Times Herald explains that city of Washington and Daviess County Rural Water have been under contract for 25 years to buy water from Washington.
The city wanted to implement the rate increase from Rural Water and a 15% increase from nonresident customers after determining some accounting procedure changes warranted the increase.
The case went to local courts where the increases were struck down because the city failed to demonstrate an increase in cost of performance.
Wednesday, the state appeals court again upheld the local court ruling with one exception.
The newspaper reports nonresident customers using Washington City Water will see that 15% increase. The trial court ruled that since the water rates were all part of a single ordinance, the increase for non-city customers was also overturned. But the court of appeals disagreed allowing the increase for the city water customer outside the city.
