The utility companies did not use all of the money they collected from rate-payers last year to fund energy efficiency programs.
Citizens Water is seeking a 14.7 percent hike in water rates, but the Office of Utility Consumer Counselor says it should only be about a 2.6 percent.
Indiana ranked 7th in the nation for coal production in 2010, according to the U.S. Energy Information Administration.
Alternate streams of revenue are being approached for Nashville's water improvement project.
Once completed, Indiana will sell energy from the coal gasification plant in Rockport even if there are cheaper options.
The utility is asking residents to voluntarily agree to turn off their sprinklers and hoses through Sunday.