Illinois American Water announces reduction in rates for Lincoln customers
Effective January 2017, residential customers using 4,500 gallons per month will see a decrease of about $2.72 per month

[December 19, 2016] 

LINCOLN - Following an 11-month review, the Illinois Commerce Commission (ICC) 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 filed on Jan. 21, 2016. Included in the rate change request was approximately $342 million in infrastructure investments across Illinois that was not previously reflected in rates.

“Periodic rate adjustments allow us to continue making critical investments in water plants, pumps and pipelines that help to enhance quality, service reliability, and fire protection for customers,” said Gabe Bowden, operations superintendent for the Lincoln District. “At times, adjustments can be made to decrease rates. Reliable water service is essential to everyday life and a community’s strong economy.”

Illinois American Water President Bruce Hauk added the company 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 utility also achieved the highest score in the region for price and communications. Hauk said, “Customer satisfaction is a top priority for our team. J.D. Power’s recognition of our team reinforces our efforts for continuous improvement so we can provide quality service at a fair price.”

The new rates resulting from the order are expected to take effect Jan. 1, 2017. The last change in base rates occurred over four years ago in 2012. Illinois American Water cannot change base rates without ICC approval.

The company estimates, pending final approval from the ICC staff, a residential customer with a
5/8-inch meter in the company’s Lincoln District using 4,500 gallons of water per month will pay about 9 cents less per day, or $2.72 less per month. The monthly bill will be approximately $34.38 (excludes fire protection charges, municipal taxes and franchise fees, which vary by community). Customers will continue to receive quality, reliable water service at a good value.

According to Bowden, local investments included replacing and installing fire hydrants, valves, meters and approximately 1.5 miles of water main. Also included was the construction of a new operations and distribution building at 311 Limit Street in Lincoln. The building provides an enhanced environment to support operations. The 9,800 sq. ft. facility includes an improved customer service area; expanded equipment storage and maintenance garage with three garage bays; and dedicated operations and maintenance areas. Upgrades were also completed to the South Water Treatment Plant to replace 8, 12 and 16-inch plant piping that was originally installed over 35 years ago.

The need to upgrade water and sewer systems is a national challenge. In 2013, the American Society of Civil Engineers said 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. 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 bill.

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: AW), 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.

[Karen L. Cotton
Manager, External Affairs
Illinois American Water]