Nearly all Indiana American Water Co. customers are seeing a $39.43 credit on their January water bill because of a lawsuit settlement over water quality concerns. 

According to Joel Reuter, Indiana American Water’s external affairs manager, customers should see a message on their current bill that explains the credit. 

Richmond and Winchester are among the communities using Indiana American Water, which received proceeds from a multi-district litigation settlement with various chemical manufacturers.

Per- and polyfluoroalkyl substances (more commonly known as PFAS) are manufactured chemicals historically used in many household products including nonstick cookware (such as Teflon), stain repellents (including Scotchgard) and waterproofing (such as GORE-TEX). The chemicals are or were also used in industrial applications such as in firefighting foams and electronics production. 

Thousands of PFAS chemicals were created, and they persist in the environment, according to the water company’s website.  

Reuter said Indiana American Water plans to credit PFAS settlement proceeds directly to customers via periodic bill credits shortly after receipt, facilitating rapid and straightforward benefit delivery. 

January’s credit is the second that was applied to customer bills. In the November 2025 bill cycle, customers received a $13.20 credit.

These credits apply only to water service customers under tariffed rates, calculated by dividing total funds by customer count to ensure equal credits. This credit also does not indicate that their water contains PFAS.

Indiana American Water has performed voluntary sampling to better understand the occurrence of certain PFAS in drinking water sources.

According to its Richmond water quality report available at amwater.com/inaw/water-quality/water-quality-reports/, Indiana American collected samples in four months in 2023 and 2024 and didn’t detect any of the compounds in its finished drinking water. 

Sampling allows Indiana American officials to understand how its water compares against the nonenforceable health advisory level set by U.S. EPA. Sampling also allows Indiana American Water to be better prepared as U.S. EPA has proposed drinking water standards for six PFAS. 

Indiana American will take appropriate actions to meet new regulations, according to its written position on PFAS at amwater.com/inaw/Water-Quality/pfas.

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A version of this article appeared in the January 21 2026 print edition of the Western Wayne News.

Millicent Martin Emery is a reporter and editor for the Western Wayne News.