Illinois American Water Files Rate Request
January 21 2016 - 11:58AM
Business Wire
Nearly $342 Million of Capital Investments in
Local Infrastructure Drives Request; Operating Expenses Reduced by
about 3 Percent since Last Rate Order
Today, Illinois American Water filed an application with the
Illinois Commerce Commission (ICC) to adjust rates effective
January 2017 for water and sewer service in all of the company’s
operating districts.
Illinois American Water’s last general rate case was approved by
the ICC in September 2012.
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. These improvements to local water and
sewer plants, pumps and pipes help to enhance service quality,
reliability, environmental performance, public health and fire
protection for 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 and wastewater 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.”
Hauk added that the company had reduced its operating expenses
by about 3 percent since its last rate order.
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 is requesting a revenue increase of about $40
million in the case filed today.
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.
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.
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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version on businesswire.com: http://www.businesswire.com/news/home/20160121006115/en/
Illinois American WaterKaren Cotton,
309-566-4126karen.cotton@amwater.com
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