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 The company’s investments in water and sewer system improvements
are the primary driver behind this rate request. From October 1,
2013 to December 31, 2017, Illinois American Water will have
invested approximately $342 million in water and sewer
infrastructure statewide. This investment is not reflected in
current rates.
“We will continue to make the necessary investments in our local
water system to help ensure water quality, service reliability and
fire protection for our customers,” said Roger Goodson, Senior
Operations Manager of Field Services and Production for the Lincoln
District.
Goodson said local investments include replacing and installing fire
hydrants, valves, meters and approximately 1.5 miles of water main.
This also includes 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. These improvements enhance service quality,
reliability, environmental performance, public health and fire
protection for customers.
If the rate request is granted in full, the typical residential
Lincoln District water customer (using about 4,500 gallons of water
per month with a 5/8 inch meter) would see their water bill increase
by about $0.51 per month from approximately $36.68 to $37.19
(excludes fire protection charges, taxes and franchise fees, which
may vary by community). The rate change request represents an
additional 2 cents a day to support needed investments.
There is no immediate impact to customers. Rates will not change
until January 2017, after the ICC completes a comprehensive review
of the request. The 11-month process includes opportunities for
public comment. Over four years will have passed since Illinois
American Water’s last rate increase in 2012.
“The communities we serve rely on us to provide reliable, quality
water service to support the local economy and to provide a high
quality of life for residents,” said Illinois American Water
President Bruce Hauk. “These investments will help ensure we are
able to keep that commitment to the health and prosperity of our
customers and communities in Illinois.”
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Hauk added that the company has reduced its operating expenses by about 3
percent since its last rate order.
The need to upgrade water and sewer systems is a national challenge. The
American Society of Civil Engineers says that an estimated $1 trillion in
capital spending will be needed across the nation over the next 25 years to
replace thousands of miles of pipe, upgrade treatment plants and comply with
stricter water quality standards.
Illinois American Water’s rates are based on the costs of providing water and
sewer service as reviewed and approved by the ICC. The company works to control
operating expenses while balancing the need for regular investment in the water
system. 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 water bill.
About Illinois American Water
Illinois American Water, a wholly owned 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.
[Karen Cotton, Illinois American
Water]
Founded in 1886, American
Water is the largest and most geographically diverse publicly traded
U.S. water and wastewater utility company. With headquarters in
Voorhees, N.J., the company employs 6,800 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 at
www.amwater.com.
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