Consumer advocacy group calling for larger rate cut for Illinois utility

(The Center Square) – The Illinois Commerce Commission has received a recommendation for a lower rate hike for an Illinois water utility, but a consumer advocacy group is saying it doesn’t go far enough.

The proposed order, submitted by two Illinois Commerce Commission administrative law judges, reduced Aqua’s proposed $19.2 million proposed rate hike by about 43%, to just under $11 million.

Aqua Illinois, which serves nearly 275,000 customers around Illinois, asked for the rate hike in January, which would have increased the average household water bill by about $30 a month.

Jim Chilsen, communications director with the Citizens Utility Board, said the rate hike needs to be reduced further.

“This is a step in the right direction for Aqua customers who have suffered a lot under high bills and poor service, but we believe that the evidence submitted by consumer advocates calls for an even greater reduction in the rate hike,” said Chilsen.

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CUB officials said a major reason for the rising bills are state laws that allow Aqua to hit customers with a “Qualifying Infrastructure Plant” surcharge as well as employ an aggressive strategy to buy up municipal systems. The Illinois General Assembly in 2013 passed a law that allowed Aqua to buy up water and wastewater systems across the state and charge their customers to cover 100% of the acquisition costs.

Aqua customers who attended ICC public forums during the summer complained of high water bills and poor water quality, with one woman displaying a jar of cloudy brown water she said came from her home.

Last May, the ICC voted unanimously to cut back Peoples Gas’ latest rate hike request, from nearly $8 million to $1.5 million.

The ICC is set to make a final ruling on the judge’s recommendation regarding Aqua Illinois no later than Nov. 21.

“The ICC has a choice,” said Chilsen. “They can follow the proposed order or they can adjust the rate hike up or down as they see fit.”

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