Citizens – Lebanon Water Supply Program
Background
Citizens Energy Group is in discussions with the Indiana Finance Authority (IFA) and Lebanon Utilities regarding the possibility of providing up to 25 million gallons of water per day to support regional growth.
Rates from Citizens Water’s existing customers will not be used to bear costs associated with this program
Citizens Water is committed to protecting its current customers from bearing any costs associated with water infrastructure to provide service to Lebanon Utilities. The infrastructure would be funded through loans from the Indiana Drinking Water State Revolving Fund. Bonds would be issued in an aggregate principal amount not to exceed $700,000,000 in accordance with the Resolution (link) adopted and approved by the Board of Directors for Utilities of the Department of Public Utilities of the City of Indianapolis (“Citizens”) on August 21, 2024 (Meeting Minutes Link). Citizens Water is not responsible for the debt service of the non-recourse loans. Citizens Water’s rates for existing customers will not be used to fund infrastructure costs associated with this program.
Citizens Robust Regional Water System
Citizens’ water system is unique when compared to other water systems in Indiana in that most of our water comes from surface water sources instead of groundwater. Our system is composed of ten water treatment plants along with water resources including the White River, Fall Creek, four reservoirs (Eagle Creek, Geist, Citizens, and Morse), and groundwater wells. Citizens Water would not tap water from other utilities to sell to Lebanon Utilities; Lebanon Utilities would be a wholesale customer of Citizens Water much like other communities in Central Indiana. The additional water would come from the expansion of two of our already existing surface water treatment plants.
Additionally, because Citizens Water already serves portions of Boone County, a long-haul pipeline is not needed. Citizens Water’s current maximum treatment capacity is 256 MGD. With the addition of service to Lebanon Utilities, the regional water supply system capacity would be expanded to nearly 300 MGD. Construction would last approximately six years, with interim water-delivery milestones along the way.
See Map of Where We Provide Water Service | Citizens Energy Group
Planning for the Future
Citizens Water annually reviews and updates its strategic water resource plans for providing water to Central Indiana, considering normal and drought conditions up to 50 years into the future; this process includes collaborating with surrounding communities to examine regional water needs. (Citizens Water Resource Plan Summary) The proposed water infrastructure to Lebanon Utilities is in line with this strategic process and meets the regional growth needs of our existing customers and the City of Lebanon.
Program Status
Citizens is in the Program Planning phase, which includes (1) finalizing funding from IFA to ensure our customers are shielded from the costs associated with the program (IFA Application Link); (2) finalize the Water Supply and Interlocal Agreement with Lebanon Utilities (link); (3) finalization of the preliminary engineering report documentation and application; and (4) finalizing work necessary to move into the Program Execution phase.
Given the Program Planning phase status, certain documentation is confidential to ensure customers are protected from unfair bidding practices. More details will be provided as documentation becomes unprotected and available.
Citizens is committed to keeping customers and the public up to date on this program and looks forward to increasing communications about the program in the weeks and months ahead.
Citizens Water Treatment Process
Citizens Reservoir Virtual Tour
Frequently Asked Questions
No, Citizens Water will protect its current customers from the costs associated with this program. Revenue generated from the wholesale agreement with the City of Lebanon will be used to repay the IFA loans.
No, Citizens Water will not be expanding its groundwater production capacity as a part of this program. To supply the City of Lebanon, Citizens Water will only be expanding its surface water production capacity at the TW Moses and White River North surface water treatment plants.
Yes, Citizens Water continually plans for future water use cases when evaluating a project such as this. A copy of the latest Integrated Water Resource Plan is provided at the link above to summarize some of this work.
Citizens will routinely update this website with more information as it becomes available. We are committed to keeping our customers and the residents of central Indiana up to date on how this work progresses.