Illinois American Water Faces Opposition Over Proposed Rate Increase

Illinois American Water has proposed a rate increase to address outdated infrastructure, replace lead services, and build systems resilient to climate change and community growth. Company officials argue for the necessity of this increase to fund essential improvements. However, residents and local officials believe the company should use its profits instead of imposing higher rates on customers.

Approximately 160 people, including representatives from Bolingbrook, Homer Glen, and Woodridge, gathered at an Illinois Commerce Commission (ICC) hearing in Bolingbrook. Attendees, including state legislators, voiced concerns that customers should not have to choose between paying water bills and essential expenses like groceries or medicine. Water is viewed as a necessity with no alternative providers available.

Homer Glen Mayor Christina Neitzke-Troike questioned why Illinois American Water executives had not previously communicated their reasons for the rate increase at town hall or Village Board meetings. She expressed that residents feel forced to either cut back on water usage or move away due to high costs.

“Our residents tell us they are left with little to no choice to either reduce water consumption to a barebones minimum or move away from the village because of the water and sewer rates,” she said. “How could this possibly be America?”

The company proposes an increase of $129 million over two years, a reduction from the initial $143 million request. An average residential customer using 3,500 gallons monthly would experience a $10 monthly increase, while wastewater customers would face a $23 increase. The new rates aim to finance $577 million in system improvements by 2027, focusing on replacing old mains and removing lead and chemical contaminants.

The ICC, tasked with evaluating the proposal, will decide by December 18. This proposed hike would be the fourth in a decade, which concerns organizations like the Citizens Utility Board (CUB). Jim Chilsen, CUB spokesman, highlighted how these frequent increases present a financial burden on residents despite the company’s significant profits.

Residents worry about frequent rate hikes when profits continue to rise. Concerns include potentially unaffordable water bills and service issues. Residents recounted past protests against similar rate increases, mentioning they feel their concerns are ignored.

Several community figures, including Republican gubernatorial candidate Darren Bailey, oppose the rate hike, pointing out the absence of competition among water utility providers. Bailey emphasized the ICC’s obligation to guard against unreasonable rates.

“Illinois families are being asked to pay more so a private monopoly can make more,” Bailey said. “That is wrong. … Families cannot choose another water company. They cannot shop around for a better price. That means the Illinois Commerce Commission has an even greater responsibility to protect customers from excessive rates.”

Illinois American Water President Rebecca Losli defended the company, stating that water systems require substantial investments, more so than other utilities like electricity or gas. Since 2015, the company has invested over $2 billion in improvements, which include measures to minimize service disruptions and enhance reliability. Losli asserted that delaying these improvements would lead to more significant issues for customers and communities.

To support low-income residents, the company provides assistance programs and collaborates with Salvation Army units for one-time assistance. The Illinois Commerce Commission invites feedback through its website or consumer services.