Iowa American Water Requests Rate Increase
April 29 2016 - 4:17PM
Business Wire
Over $38 million of capital investment in local
infrastructure drives request
Company’s operating expenses reduced almost 10
percent since 2013
Iowa American Water Company filed an application with the Iowa
Utilities Board (IUB) today to adjust the rates its customers pay
for water service in its Clinton and Iowa Quad Cities service
areas. The utility’s last request for a water rate increase was in
April 2013.
Iowa American Water’s investment of over $38 million in water
system improvements is one of the primary drivers behind the rate
request. All of the investments made in local water infrastructure
systems enhance water quality, service reliability and fire
protection for customers while keeping the cost of water service
for most local households at about one penny per gallon.
“Since our last rate case, Iowa American Water has continued to
implement efficiencies and best practices throughout the business
to reduce our operations and maintenance expenses,” said Iowa
American Water President Randy Moore. “This has enabled us to
reduce our operating expenses through December 2015 by almost 10
percent or $1.7 million.”
In addition, Moore notes that proactive water system upgrades
save money in the long run. “By continually improving our water
systems, we help reduce the frequency of service interruptions and
enhance fire protection,” he said.
The need to upgrade water systems is a national issue. The
American Society of Civil Engineers says that an estimated $1
trillion in capital spending will be needed across the nation over
the next few decades to replace thousands of miles of pipe, upgrade
treatment plants and comply with stricter water quality
standards.
Some of Iowa American Water’s largest projects and investments
include:
- About $13.6 million investment for
normal, recurring installation and replacement of water pipelines,
services, meters and hydrants in Clinton and the Quad Cities.
- $3.3 million investment for East River
Station Treatment Plant Residuals Project to renovate sedimentation
basins.
- $3.3 million investment in the Quad
Cities to replace, upgrade and/or relocate about four miles of aged
water main to improve system reliability and transmission line
capacity.
- $2.8 million investment in Clinton to
replace, upgrade and/or relocate about three-and-a-half miles of
aged water main to improve system reliability and enhance fire
protection.
- $2.3 million investment to relocate
water main associated with the 1-74 bridge project in Bettendorf.
The relocation and system improvements continue in 2016 to improve
reliability for customers, reduce service disruptions and increase
water flows for firefighting.
- $1.4 million investment to make
filtration improvements at the East River Station Treatment
Facility to enhance treatment efficiency and improve water
quality.
- $900,000 investment for a new storm
water lift station at the treatment facility in Davenport that will
allow us to efficiently discharge storm water during high river
conditions.
- $500,000 investment in Clinton to
replace an aged underground booster station at the Galbraith water
storage standpipe that has come to the end of its useful life.
- $400,000 investment in chemical feed
equipment at the East River Station Treatment Facility to automate
chemical feed systems to increase efficiency and enhance water
quality.
Iowa American Water’s rates are based on the cost of providing
water service as reviewed and approved by the IUB. If approved, the
rate request would increase a typical monthly residential water
bill for a customer using 3,870 gallons per month by $5.10 from
$33.26 to $38.36—that’s an increase of about 17 cents per day for
reliable, high quality water delivered to their tap 365 days a
year/24 hours a day.
“The communities we serve rely on us to provide reliable,
quality water service to support their local economies and to
provide a high quality of life for residents,” Moore added. “The
investments we make in our systems help ensure that we are able to
fulfill that commitment to the health and prosperity of our
customers and communities.”
The IUB will conduct an extensive review of Iowa American
Water’s rate application. Because the IUB can take up to ten months
for a decision to be rendered on the case, Iowa American Water
intends to put a portion of the requested increase into effect on
May 9, 2016 as an “interim” or temporary rate increase while its
full request is reviewed. Temporary rates are subject to refund
with interest if the IUB approves a final increase that is less
than the temporary rates established.
Public hearings and opportunities for public comment are also
part of the process and will be scheduled in the company’s service
areas under the direction of the IUB.
About Iowa American Water
Iowa American Water, a subsidiary of American Water Works
Company, Inc. (NYSE: AWK), is the largest investor-owned water
utility in the state, providing high-quality and reliable water
services to approximately 200,000 people. 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 at
www.amwater.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20160429006077/en/
Iowa American WaterLisa Reisen, 563-468-9221Manager, External
AffairsLisa.Reisen@amwater.com
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