Illinois American Water requests rate increase

Illinois American Water, which services the Streator area, filed a request last week with the Illinois Commerce Commission to adjust its water and wastewater base rates.

The request is driven primarily by more than $1.1 billion in completed or planned investment — $948 million in water system improvements and about $204 million in wastewater system improvements — across the state from 2018 through 2023, said Illinois American Water.

The filing is a necessary first step in the 11-month ICC rate review process; rates are not changing at this time. Any new rates would not become effective until early 2023, six years since Illinois American Water’s last general rate change in 2017.

“We carefully plan and invest in our water and wastewater systems to provide safe and reliable service to nearly 1.3 million Illinoisians in 146 communities across the state,” said Justin Ladner, Illinois American Water president. “These investments are key to providing outstanding service and reliability, both now and in the future.”

Investments include the replacement, lining and installation of about 141 miles of aging water and wastewater pipelines. Investments also include upgrading water and wastewater treatment plants, storage tanks, wells, pumping stations, fire hydrants, meters, manholes, among other projects.

If the company’s proposed rates are approved as requested, the monthly water service bill for the typical residential customer using 3,500 gallons per month with a 5/8-inch meter would increase between $6 and $14 per month, depending on the service area. The typical residential wastewater bill would increase between $7 and $17 per month, depending on the service area.

“By making prudent, ongoing investments to maintain and upgrade our water and wastewater systems, Illinois American Water is committed to the safety and reliability of our systems in the communities we serve,” Ladner stated. “At the same time, we remain steadfastly committed to addressing the needs of our most vulnerable customers and supporting affordability.”

To further assist customers, Illinois American Water’s rate change request includes a low-income discount tariff. If approved, the low-income discount tariff would provide an about 70% decrease in the volumetric charge for both water and wastewater service for qualifying residential customers. This could result in lowering a typical residential customer’s monthly bill for 3,500 gallons with a 5/8-inch meter by about $23 for water service. A combined collection and treatment wastewater service bill for the same customer could see a decrease of about $8 to $15 a month, depending on the service area.

“It is important that any rate change reflect our commitment to affordability for our customers as well as the critical investments in our systems to maintain public health,” said Ladner.

Some of the company’s critical infrastructure projects included in the rate request are as follows:

• Ongoing replacement of lead service lines across the state.
• Ultraviolet (UV) disinfection installed at several water treatment plants including Streator, Alton, East St. Louis and Granite City. The new treatment technology supports safe drinking water to residents and businesses.
• New Chemical Feed Systems in Streator, Champaign, Alton, East St. Louis, Peoria and Jerseyville. The improvements support continued and reliable service and allows for the safe and secure handling of chemicals.
• Ten water storage tanks to serve the communities of Streator, Pontiac, Sterling, Peoria, Sidney, Lincoln, Arbury Hills, Hardin County, Granite City and East St. Louis.

The company’s rate request will undergo public scrutiny by the ICC. This vetting will include numerous data requests and evidentiary hearings. Customers will also have an opportunity to provide public comment. For more information on the company’s request, visit illinoisamwater.com.

The increased rates proposed are a request only. The ICC will make the final decision regarding the actual rate change. Once a final decision has been made, customers will receive information on the new rates.