ICC to Host Hearing on Potential Water Bill Hikes Following Illinois American Water Proposal
Illinois American Water is facing public scrutiny after proposing a substantial increase in water utility bills, prompting a scheduled public hearing by the Illinois Commerce Commission (ICC) on July 23. The hearing, set to take place at the Champaign Public Library at 7 p.m., will address the company’s request for a rate hike that could see residential water bills increase by an average of $24 per month.
The proposal, filed with the ICC on February 8, outlines a $152.4 million rate increase, representing a 39.5 percent hike from current levels. This move is part of a broader plan to recover costs from $557 million worth of investments in water and wastewater infrastructure intended to enhance service quality and replace aging systems across more than 140 communities in Illinois.
Rebecca Losli, President of Illinois American Water, emphasized the necessity of the investments. “We carefully plan and invest in the infrastructure of our water and wastewater systems to provide safe, clean, and reliable service,” she stated. The planned improvements include the replacement of approximately 44 miles of aging pipelines, upgrades to storage tanks, and the ongoing replacement of lead water service lines.
However, the rate increase has sparked controversy, particularly among consumer advocates like Sarah Moskowitz, Executive Director of the Citizens’ Utility Board (CUB). Moskowitz criticized the proposal as excessive and highlighted the financial burden it would impose on consumers. “This punishing rate hike will be a hardship to consumers who depend on the utility for a vital service,” she said in a press release.
The company’s parent, American Water, has reported substantial profits, totaling approximately $1.6 billion over the past two years. Moskowitz has pointed to these profits as evidence of the company’s financial capacity to bear the costs of infrastructure improvements without imposing severe financial burdens on its customers.
The ICC will not issue its ruling on the rate request until later this year, with any approved changes not affecting customers until early 2025. In the meantime, residents who wish to express their concerns but cannot attend the hearing have the option to leave comments on the ICC’s website or call their hotline.
The upcoming hearing promises to be a critical moment for Illinois American Water and its customers as both sides prepare to present their cases. The outcome will likely have lasting impacts on the financial well-being of approximately 1.3 million people who rely on the utility for essential water services.
