The Indiana Office of Utility Consumer Counselor reached a settlement agreement with Indiana-American Water Company in the utility's pending rate case.
That means a much smaller impact on local customers' bills.
If utility regulators approve the settlement, it will allow a 2.5 percent hike in its annual operating revenues. Indiana-American Water originally sought a nearly 10 percent rate hike earlier this year.
Although the agreement doesn't specifically address how costs will be spread out among service territories or among residential, commercial or industrial customers, that will be decided before the Indiana Utility Regulatory Commission is expected to rule on the agreement.