Karen Cotton
309.566.4126
karen.cotton@amwater.com

Illinois American Water Files Rate Request
Over $342 million of capital investments across the state, including $42 million locally, drives request

Peoria, Ill. (Jan. 21, 2016) — Today, Illinois American Water filed an application with the Illinois Commerce Commission (ICC) to adjust rates effective January 2017 for water and sewer service in all of the company’s operating districts.  Illinois American Water’s last base rate change was approved by the ICC in September 2012.
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The company’s investments in water and sewer system improvements are the primary driver behind this rate request. From October 1, 2013 to December 31, 2017, Illinois American Water will have invested approximately $342 million in water and sewer infrastructure statewide. This includes over $42 million in the Peoria District not reflected in current water rates.

“We will continue to make the necessary investments in our local water system to help ensure water quality, service reliability and fire protection for our customers,” said Roger Goodson, Senior Operations Manager of Field Services and Production for the Peoria District.

Goodson said the over $42 million in investments includes replacing and installing fire hydrants, valves, meters and more than 25 miles of water main.  This also includes significant electrical upgrades at the Main Station Water Treatment Plant and Pump Station to ensure reliability even during times of severe weather.  The upgrades also include energy-saving technology and upgraded control center.  Also included is the construction of a 400,000 gallon elevated water storage tank to provide increased storage capacity to meet customer demand and enhance fire protection for Chillicothe and Rome customers.  These improvements to the water treatment and delivery systems enhance service quality, reliability, environmental performance, public health and fire protection for customers.

If the rate request is granted in full, the typical residential Peoria District water customer (using about 4,500 gallons of water per month with a 5/8 inch meter) would see their water bill increase by about $7.57 per month from approximately $41.57 to $49.14 (excludes fire protection charges, taxes and franchise fees, which may vary by community).  The rate change request represents an additional quarter a day to support needed investments.

There is no immediate impact to customers.  Rates will not change until January 2017, after the ICC completes a comprehensive review of the request.  The 11-month process includes opportunities for public comment. Over four years will have passed since Illinois American Water’s last rate increase in 2012.

“The communities we serve rely on us to provide reliable, quality water service to support the local economy and to provide a high quality of life for residents,” said Illinois American Water President Bruce Hauk. “These investments will help ensure we are able to keep that commitment to the health and prosperity of our customers and communities in Illinois.”

Hauk added that the company has reduced its operating expenses by about 3 percent since its last rate order.

The need to upgrade water and sewer systems is a national challenge. The American Society of Civil Engineers says that an estimated $1 trillion in capital spending will be needed across the nation over the next 25 years to replace thousands of miles of pipe, upgrade treatment plants and comply with stricter water quality standards.

Illinois American Water’s rates are based on the costs of providing water and sewer service as reviewed and approved by the ICC.  The company works to control operating expenses while balancing the need for regular investment in the water system.  While many municipally-owned water systems are able to cover costs with taxes, fees and other revenue sources as a way to keep water bills lower, investor-owned, regulated water utilities are required to recover all costs through water rates charged on the customer’s water bill.