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.

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.”