Illinois water utility granted rate hike by state panel

(The Center Square) – Water rates may be on the rise for thousands of Illinois households.

The Illinois Commerce Commission approved a rate hike for Illinois American Water, but slashed the original request by 30% for an overall increase of $110 million.  

The utility, which services around 150 communities around the state, said the funds are needed for maintenance and system improvements. That played into the commission’s decision.

“Based on the Commission’s recent cases and evidence across the country, it seems clear that significant investment is needed to bring our water systems up to current health and safety standards. Improved infrastructure will have long-term positive impacts on Illinois’ water and wastewater services,” wrote ICC Commissioner Stacey Paradis in a statement.  

The public watchdog group Citizens Utility Board, which was asking for a larger cut to the rate hike, was not pleased with the decision.

“The ICC’s ruling today gives new urgency to CUB’s push to reform a water privatization law that Illinois American Water successfully lobbied for, and now uses to plunder its customers. Illinois American Water has now received $195 million in rate hikes in just two years, and they’ve indicated on earnings calls that they expect the rate hikes to continue,” said executive director Sarah Moskowitz in a statement. 

In January, Illinois American Water estimated its proposed rate hike would increase average residential monthly water bills by about $24 per month, and the average wastewater bill by about $3 to $5 per month. It is not immediately known how the smaller rate hike the ICC granted Illinois American in the final order would impact bills.