Indiana American Water Returns Nearly $75 in PFAS Settlement Credits to Customers

Cumulative settlement credits will exceed a typical residential monthly water bill, while PFAS treatment projects continue.

Rhea-AI Summary

Indiana American Water (AWK) is providing a fourth PFAS settlement bill credit of $11.65 per eligible customer account in October 2026.

The latest round will bring total distributions to over $25.5 million statewide and cumulative credits to $74.92 per account since November 2025. That exceeds the approximately $55 average residential monthly bill based on usage of 4,000 gallons. The Indiana Utility Regulatory Commission approved the automatic credit mechanism. The company plans further credits as settlement payments arrive and receive distribution approval.

In January 2026, the company announced operation of a treatment system designed to remove PFAS, manufactured chemicals, at its Charlestown plant. Treatment projects are underway in Terre Haute, with additional investments under evaluation elsewhere.

Positive

• Minor pointThe Charlestown PFAS treatment system was announced as operating in January 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Terre Haute PFAS treatment projects are underway; additional treatment investments are being evaluated in other communities.
• Minor point. Forward-looking: it has not happened yet and may not happen.The company plans additional customer bill credits from future settlement payments.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Future bill credits depend on receipt of settlement payments and approval for distribution.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Company has provided four rounds of bill credits while continuing investments in PFAS treatment and water quality improvements across Indiana

GREENWOOD, Ind., Oct. 5, 2026 /PRNewswire/ -- Indiana American Water announced that it is providing a fourth bill credit to customers this month following the company's receipt of proceeds from settlements reached with manufacturers of per- and polyfluoroalkyl substances (PFAS). With this latest credit, Indiana American Water will have returned a total of over $25.5 million to customers statewide of PFAS settlement distributions.

Since November 2025, eligible water customers will have received nearly $75 per account in PFAS settlement credits. For the average residential customer, that amount exceeds the cost of a typical monthly water bill, based on average usage of 4,000 gallons per month and an average monthly bill of approximately $55.

Credit	Timing	Amount Per Customer
First Credit	November 2025	$13.20
Second Credit	January 2026	$39.43
Third Credit	July-August 2026	$10.64
Fourth Credit	October 2026	$11.65
Total		$74.92

The credits distribute settlement proceeds Indiana American Water received from PFAS manufacturers through a customer bill credit mechanism approved by the Indiana Utility Regulatory Commission (IURC). This streamlined approach allows settlement funds to be returned quickly, equitably and transparently through automatic bill credits that are applied equally among eligible tariffed water customer accounts. The company plans to continue providing additional bill credits as future settlement payments are received and approved for distribution.

"Indiana American Water remains committed to returning these settlement proceeds directly to our customers while continuing to invest in the long-term protection of safe, clean, reliable and affordable drinking water across Indiana," said Barry Suits, president of Indiana American Water. "These credits provide a direct customer benefit from the settlements, while our company continues making significant investments in monitoring, treatment technologies and infrastructure improvements designed to address contaminants of emerging concern such as PFAS. We believe customers should receive the benefit of these settlement funds as quickly and efficiently as possible."

The credits are not based on whether PFAS has ever been detected in a customer's water supply, and Indiana American Water remains committed to meeting all state and federal drinking water standards while proactively addressing evolving PFAS regulations.

Indiana American Water has been a leader in PFAS treatment and water quality investments in Indiana. In January 2026, the company announced operation of Indiana's first drinking water treatment system specifically designed to remove PFAS at its Charlestown Water Treatment Plant. The company also has advanced PFAS treatment projects underway in Terre Haute and is evaluating additional treatment investments in other communities as part of its broader strategy to address emerging contaminants and comply with future regulatory requirements.

PFAS are a group of manufactured chemicals that have been used in consumer products and industrial applications for decades. Indiana American Water, along with numerous other water utilities nationwide, participated in multi-district litigation (MDL) proceedings seeking damages from manufacturers of PFAS chemicals. Settlement agreements provide payments over multiple years, allowing utilities to return proceeds to customers as funds are received.

Customers interested in learning more about PFAS, including what these compounds are, how they are regulated and the steps Indiana American Water is taking to address them, can visit the company's PFAS information webpage at Indiana American Water PFAS Information. Customers can also view annual Water Quality Reports for their local community, which provide detailed information about drinking water quality, testing and compliance with state and federal standards.

About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886 and celebrating 140 years in 2026, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 19 military installations. American Water's approximately 7,000 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About Indiana American Water
Indiana American Water, a subsidiary of American Water, is the largest regulated water utility in the state, providing high-quality and reliable water and wastewater services to approximately 1.5 million people.

 

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SOURCE American Water

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much is Indiana American Water's October 2026 PFAS settlement credit?

The fourth credit is $11.65 per eligible customer account in October 2026. It brings cumulative credits since November 2025 to $74.92 per account and statewide distributions to over $25.5 million.

How are Indiana American Water PFAS settlement credits applied to customer accounts?

Credits are applied automatically and equally among eligible tariffed water customer accounts through a mechanism approved by the Indiana Utility Regulatory Commission. Eligibility is not based on whether PFAS has ever been detected in a customer's water supply.

What were Indiana American Water's earlier PFAS settlement bill credits?

The earlier credits were $13.20 in November 2025, $39.43 in January 2026 and $10.64 in July–August 2026 per customer.