(The Center Square) – The debate is far from over on Illinois Senate legislation to regulate private water companies.
The third reading deadline for Senate Bill 75 has been extended to May 9, but state Sen. Laura Murphy, D-Des Plaines, asked that the proposed legislation be placed on hold.
Murphy said communities lack regulation on private water. She said her bill sought “rate relief” after private water companies in Illinois sought hundreds of millions of dollars in rate increases last year.
Murphy promised that talks would still be going on after the General Assembly’s spring session.
“My commitment is to continue to work with this, because labor also has some concerns, and work through the summer,” Murphy said.
SB 75 would require water utility shareholders to pay more than consumers for new acquisitions.
Illinois American Water president Rebecca Losli told the Illinois Senate Energy and Public Utilities Committee she opposes the bill, which also includes a provision to prevent utilities from imposing Qualifying Infrastructure Plant (QIP) surcharges.
“Without QIP, there could be delays in replacing broken systems, further harming customers and keeping them from receiving safe and reliable water service,” Losli said.
McHenry County resident Stephanie Tesmer said she wants the QIP surcharges removed.
“I’m now paying three times what I used to pay for city water, and the quality, it leaves a lot to be desired. There have been times when the water is discolored or smells strange. We do not use it to drink or cook with. Not even our animals get it,” Tesmer said.
The Citizens Utility Board (CUB) has advocated for SB 75. CUB Director of Governmental Affairs Bryan McDaniel said consumers should not have to pay utility acquisition costs.
“When they buy a system, it’s an investment for the utility. That system’s gonna throw money off for them to their shareholders for the next decades and eons, because once a utility buys a system, they don’t like to give it back,” McDaniel told The Center Square.
State Sen. Terri Bryant, R-Murphysboro, asked Murphy to reconsider an amendment that removed a referendum requirement for private utilities to acquire municipal water and sewer systems.
“The referendum component is the part that I liked the most, because I do really want to keep this at a local level where they are making the decisions because they, like we at the local level, have to answer to their constituents as well. If they’re going to change over to a private company, then the ratepayers need to have the ability to say, ‘Yes, this is what we want,’” Bryant said.
SB 75 has six co-sponsors. As of Wednesday morning, witness slips were filed by 84 proponents and 38 opponents.
