Rate Adjustment for Illinois American Water Approved by Illinois Commerce Commission
December 13 2016 - 4:29PM
Business Wire
Rate change request driven by approximately
$342 million of infrastructure investments statewide
Following an 11-month review, the Illinois Commerce Commission
(ICC) today issued an order adjusting rates for Illinois American
Water. Ongoing enhancement and maintenance of the company’s water
and wastewater infrastructure to ensure reliable treatment and
delivery systems were the main drivers behind the rate change
request. Included in the rate change request was approximately $342
million in infrastructure investments across Illinois that was not
previously reflected in rates.
According to the ICC, the rate order will result in
approximately $35.2 million in additional annual base rate revenue.
According to company officials, additional revenues will help
Illinois American Water continue to invest proactively in its water
and wastewater infrastructure throughout the state.
New rates are expected to take effect Jan. 1, 2017. The last
change in base rates for water service and wastewater treatment
occurred over four years ago in 2012. Wastewater collection base
rates have not increased since 2003.
“Periodic rate adjustments allow us to continue making critical
investments in water and wastewater plants, pumps and pipelines
that help to enhance quality, service reliability, and fire
protection for customers,” said Bruce Hauk, president of Illinois
American Water. “Reliable water and wastewater service is essential
to everyday life and a community’s strong economy.”
The need to upgrade water and sewer systems is a national
challenge. In 2013, the American Society of Civil Engineers said
that an estimated $1 trillion in capital spending would be needed
across the nation over 25 years to replace thousands of miles of
pipe, upgrade treatment plants and comply with stricter water
quality standards. Illinois American Water is addressing this
challenge.
Illinois American Water’s rates are based on the costs of
providing water and sewer service as reviewed and approved by the
ICC. Hauk said Illinois American Water has worked to control costs,
reducing operating expenses by about 3 percent since the last rate
order, while providing customers with nationally-recognized
service. Illinois American Water received the J.D. Power award
for ranking “Highest in Customer Satisfaction among Water Utilities
in the Midwest” according to J.D. Power’s 2016 Water Utility
Residential Customer Satisfaction StudySM.
The amount of the rate change customers will experience will
vary among the company’s operating districts in Alton, Cairo,
Champaign, Chicago Metro, Hardin, Lincoln, Interurban (Belleville,
East St. Louis and Granite City), Pekin, Peoria, Pontiac, Sterling,
Streator and South Beloit. Customers will receive communication
further explaining the rate change.
Customers needing assistance paying their water bills can access
the company’s H2O Help to Others program. The Salvation Army
administers this program. Customers are urged to contact their
local Salvation Army if they need assistance. Information can also
be found at www.illinoisamwater.com. For information about the J.D.
Power 2016 Water Utility Residential Customer Satisfaction StudySM
visit http://tinyurl.com/hbvx5t6.
About Illinois American Water
Illinois American Water, a subsidiary of American Water (NYSE:
AWK), is the largest investor-owned water utility in the state,
providing high-quality and reliable water and/or wastewater
services to approximately 1.2 million people. American Water also
operates a customer service center in Alton and a quality control
and research laboratory in Belleville.
Illinois American Water ranked “Highest in Customer Satisfaction
with Water Utilities in the Midwest" according to J.D. Power’s 2016
Water Utility Residential Customer Satisfaction StudySM.
American Water is the largest and most geographically diverse
publicly traded U.S. water and wastewater utility company. Marking
its 130th anniversary this year, the company employs 6,700
dedicated professionals who provide regulated and market-based
drinking water, wastewater and other related services to an
estimated 15 million people in 47 states and Ontario, Canada. More
information can be found by visiting www.amwater.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20161213006330/en/
Illinois American WaterKaren Cotton,
309-566-4126karen.cotton@amwater.com
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