GARY, Ind. (AP) – A Gary-based water utility has been given the green light to raise its rates for residential customers in northwest Indiana by 11.5 percent.

The Indiana Utility Regulatory Commission approved a settlement agreement allowing the rate hike for Indiana American Water. The company originally requested a 17.2 percent rate increase last January, but lowered it by nearly 6 percent in the agreement with the Indiana Office of the Utility Consumer Counselor and several other parties.

According to Indiana American Water, the typical residential customer in the northwest part of the state using 4,600 gallons per month will see an increase of about 12 cents per day.

The (Munster) Times (http://bit.ly/1v8JJMa ) reports rate increases for other customers will depend on meter size and water use.