Illinois American Water has petitioned the Illinois Commerce Commission to raise their rates in Peoria and Pekin by 20 and 26.7 percent, respectively.
Water company officials say the increases are necessary to cover rising operating costs and infrastructure improvements….
And now, let’s compare this with what Illinois American Water said two years ago according to an April 4, 2005, Journal Star article:
The current business plan of Illinois American Water does not call for a general rate case before 2009, and that means customers will not see the impact of a general rate increase before 2010. Barring an extraordinary event like Sept. 11, the average residential bill will still be $34.74 [average bill in 2005] in 2010.
It is also important to note that the U.S. Environmental Protection Agency estimates that municipal water systems need to spend $18 billion in order to bring their existing systems up to government standards for water quality. Peorians don’t have this problem because the necessary and timely investments have been made in their water system by Illinois American Water.
So, in 2005, everything was hunky-dory: no rate increases until 2009/2010, infrastructure all up to date. That was when the city was on the brink of buying out the water company. Now, just two years later, and without “an extraordinary event like Sept. 11,” they’re back to the ICC again asking for a 20% rate increase to cover operating expenses and infrastructure improvements. What changed? Why did they have to accelerate their business plan by two years and ask for such a massive increase all of a sudden?
For a company that doesn’t want the city to buy back its water works, they couldn’t have picked a worse time to ask for a rate increase. If it goes through, it will likely take effect next year, just in time for the city to consider buying them out again. Only public pressure has stopped the buyout before; if the public feels like Illinois American Water is screwing them, nothing will get in the way of the city buying them out.
CJ: Thank you for having a long memory and excellent research skills.
How much does the rate of electricty, fuel costs, cost of health insurance and other liability increases effect rates?
we should have bought the water company.
Ameren rate hike was a big hit to all and busnesses will not get any rate relief. Water is pumped by electric motors all over the city. Just think how the city would have run it, no improvements due to rising electric rates. Illinois American has re invested money to insure we ALL have safe water with no shortages. Keep it Private or form a Public Water District then each customer would have a say in it.
As being one who did not complain too loudly over AmerenCilco price increase (still not up with the Rural Cooperatives). I just don’t run the air conditioner. I can cut a minute or two off the shower and still get clean. I can fill the sink a little less when I do the dishes. I turn on the faucet and the water runs. I have no problem with the taste (when it is really cold, the taste is quite good – at least I think so). Projections are not cast in stone. I don’t like cost increases, but the cost of doing business is what it is. At least the use of electric, gas and water are things that I can control. I don’t favor an increase in these items any more than I favor the increase in the cost of gasoline or milk. But, if I use, I pay. It is up to me to use less.
If you want the truth about what IAWC has bought for the customers of Illinois,I personally invite the Attorney General,The ICC Administrative Law Judges as well as any Proffessional Licensed Illinois EPA Class A Water Plant Operator/Engineering Expert to Physically Measure it by Physical Audit of Operations and Maintenance Improvements and Documented Real World Conditions.The IAWC would and has Spent Millions to avoid any third Party non-biased audit.Our IAG bought and paid for an expert to investigate just a snippit and his response was that IAWC records were a “mess”,a sign of deeper issues.I and others witnessed and endured many of the failed,fraudulent and exspensive mistakes and bad plans.I have spent alot of time on research about the great American Water Sell-out to RWE,RWE realizing what they bought a bit late but very quickly,RWE firing every executive that had anything to do with buying American Water for Three times it’s face value.Thames has been sold by RWE,and now what is left of what was a very Reputable Company will be thrown to unknowing investors who will not have a clue what they are buying until it is too late,RWE will spend millions in court to fight Community Buy-Backs,Could it be that the Community will uncover the TRUTH about what is thought to be and what is told to be and what really is? IAWC Customers as well as all American Water/Thames/RWE Customers,have paid over and over for “Capital,and Infra-Structure Improvements” that have never functioned as Originally designed,installed,Engineered etc. and Costs related to the Corrections have been Charged as Ops. and Maintenance back to the Consumer again.The Rate Increase is awarded, Audits of what it is spent on are done on paper.(YOU CAN’T POUR A GLASS OF PAPER,PUT A FIRE OUT WITH PAPER,KEEP PUMPS RUNNING ON PAPER) The Company self reports and self investigates if what they bought is a success.People,there has been millions spent on plans that have only driven costs up,People were cut when they should have been expanding Operations,Maintenance and Capacity.See Food and Water Watch.ORG for accurate info about The American Water Mess,and then,if you are a customer find a way through your Community Leaders and Elected Officials,to Dig for you ,for the Truth,and who is Accountable for it.Community Safety and Health depend on we the people to demand that the protections all American Taxpayers and Ratepayers are Proactive again,normal operating proceedure seems to have become Reactive,after people die,are sickened,smashed by the bridge,crushed in the mine,burned because the hydrant didn’t work,or total and most times preventable outages.The maintenance of a Drinking Water Production and Distribution Department of a medium sized sytem is enormous and the customers have and will always have to pay for it,when it is not performed and backlogged,while profits are being taken,it becomes Fraud and gambling with the Public’s Health,Safety and Welfare.IAWC has done just that.So far they’ve been given a couple of hand-slaps.Only the surface has been scratched and by sharing a fraction of truths as a public service and attempting to inform some who care.Please share with someone you know who can try to make a difference.I fell victim to having to choose between being held accountable by the people harmed while continuing to ride into the crash(5&6 of 2005 major water outage belleville and surrounding comms.),or not.Management at that time 4-2004,was going to be regionalized/restructured and local due-dilligence was to be ignored even more.I messed up when I wanted the Company to Operate like a Water sytem that wanted reliability first.