| Wednesday, September 5, 2007 9:00 AM CDT |
Pontiac water company seeks rate increase
PONTIAC -- For the first time in five years, American Water is asking the Illinois Commerce Commission for permission to raise residential water rates in Pontiac.
The request calls for a water bill of $5.19 a month, or 17 cents a day for an average residential customer who uses 6,000 gallons of water a month — amounting to about a 20 percent increase.
Tim Tuley, network operations superintendent for American Water that serves the city, said the increase reflects $1.8 million the private company has invested in the community, including upgrades in technology at the treatment plant and replacing five blocks of water mains on East Madison Street with 8-inch pipes to improve fire protection and water quality.
Tuley said he did not expect a poor reaction from the community since a gallon of water will still cost less than a penny.
Actually, Tuley said water rates have gone up since 2003, due to a “qualifying infrastructure” that allows the water company to increase rates based on upgrades in the system. The ICC doesn’t have to approve those hikes. With the ICC filing, American Water is looking to begin generating new revenue tied to those investments, said Tuley.
“If the Illinois Commerce Commission grants us 100 percent of what we requested, then our current rate would actually go up by 15.77 percent,” he said, adding that 20 percent “is based off of our base rate, which was granted to us in 2003, and the difference is the amount of the qualifying infrastructure, which currently is 4.23 percent.”
Tuley said it typically takes 11 months for the Illinois Commerce Commission to review a request, so the rates —if approved — are not expected to take effect until the fall of 2008. |
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