The Indiana Utility Regulatory Commission Wednesday denied Indiana American Water Company's request for an increase of more than 8 percent in its annual operating revenues, granting a 1 percent increase instead. The Indiana Office of Utility Consumer Counselor (OUCC) which represents Indiana consumer interests before state and federal bodies that regulate utilities, had recommended a 4 percent decrease. The 1 percent increase approved yesterday applies to total annual revenues for the company's statewide operations, the OUCC says. Effects on specific service territories throughout the state will vary. Indiana American Water Company has about a quarter-million customers in Northwest Indiana