Water, water everywhere — at least for now.
That was the message from Citizens Energy Group President Jeff Harrison as Central Indiana faces increasing demand from economic development, population growth, and interest from large industrial users, including data centers.
Citizens Energy Group operates under a unique structure as a public charitable trust, with its assets held for the benefit of customers in the Indianapolis area. The utility provides water, wastewater, natural gas, and steam services and is governed by a nine-member board of directors and a five-member board of trustees, all of whom must reside in Indianapolis. Harrison said the model is designed to preserve local control while supporting long-term infrastructure planning.
At the center of that planning is Citizens’ 50-year water supply plan, which is updated annually to reflect changes in demand across residential, commercial, industrial, and wholesale users. According to Citizens, approximately 75% of its water supply comes from surface water sources such as rivers, streams, and reservoirs, while the remaining 25% comes from groundwater wells. Officials say that mix provides both reliability and flexibility as demand evolves.
One of the most significant new demands incorporated into the plan is the LEAP District in Lebanon. Under current agreements, Citizens will supply up to 25 million gallons per day of water to Lebanon Utilities on a wholesale basis, with deliveries phased in through 2031. Lebanon Utilities will then provide retail service to end users in the district, including major employers such as Eli Lilly and Company and Meta. Citizens officials say the additional demand has already been factored into long-term projections and is not expected to impact service reliability for existing customers.
To support future demand, Citizens has expanded its storage and supply capacity. The Citizens Reservoir, located near 116th Street and Olio Road and completed around 2020–2021, holds more than 3 billion gallons of water. The reservoir is designed to strengthen the system’s ability to meet peak demand and respond to dry weather conditions.
Citizens is also continuing to address concerns related to Eagle Creek Reservoir, which it operates for water supply and flood control, though it is owned by the City of Indianapolis. Residents in the area have raised questions about water levels, quality, and environmental impact. Citizens officials say reservoir operations are managed with both system needs and environmental considerations in mind. Wastewater discharges are regulated before entering waterways, and any water reused for drinking undergoes additional treatment.
The growth of data centers in Central Indiana has added another layer to long-term planning. These facilities can require large volumes of water for cooling. Harrison said Citizens’ policy is to work with local communities and require major new users to cover the full cost of any additional infrastructure needed to support their operations, rather than passing those costs on to existing ratepayers.
At the same time, Citizens continues to manage rising costs tied to inflation and aging infrastructure. The utility operates on a cost-of-service basis but faces increasing expenses for materials, chemicals, and capital improvements. One of its largest recent projects, the Dig Indy deep rock tunnel system, was completed on time and approximately $400 million under its original $2.4 billion estimate. The system is intended to reduce sewer overflows and improve water quality in local waterways.
Citizens officials say they will continue engaging with residents and stakeholders through public meetings and outreach efforts as the region grows.
For now, utility leaders say Central Indiana has the water resources needed to support that growth — with long-term planning aimed at keeping it that way.
You can hear Harrison in the audio above. The interview runs for about 27 minutes.
