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NewsWednesday, September 5, 2007 9:00 AM CDT
Pontiac water company seeks rate increase
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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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Reader comments on this story - 10 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

Give 'em a break already wrote on Sep 5, 2007 11:03 AM:

" In reference to To: ironic's post - Talk about sour grapes. Would you prefer to have your water main pipes freeze because the water company personnel was sitting at home waiting their turn on some snow plow driver's waiting list to get them out of their driveway? It's a private company so if the operations supt. wants to use equipment to plow his drive and/or his employees' drives, that is his perogative. Consider it a job perk. It's not a municipally owned utility, it's a PRIVATE company just like...... Construction Companies who usually let their workers take advantage of the equipment as well. If you don't like it you always have the option of taking your bucket to the river and hauling your own water. :) "

Add it on... wrote on Sep 5, 2007 6:12 AM:

" Pontiac's sewer rates are added on to our water bill... and we are billed for every drop of water we use... even if it doesn't eventually go into the sewer... like watering the garden or lawn. Plus, our bills include a fire protection charge... "

To ironic wrote on Sep 5, 2007 5:21 AM:

" The money goes to the expenses that Tuley en cures when he uses the American waters Equipment for his own personal use,like plowing his drive in winter and pulling bushes with his employees doing the work. He should pay it back its a little help. "

Mr Ed wrote on Sep 4, 2007 10:52 PM:

" You can lead a horse to water but cant make pay for it. "

Huh? wrote on Sep 4, 2007 10:19 PM:

" If the article is true and the average bill will be $5.19 a month for 6000 gallons, how does one get a bill for $60 dollars. Where does the water go? How do you use so much water? "

just curious wrote on Sep 4, 2007 9:44 PM:

" my doctor told me not to drink Pontiac water. Does a rate hike and new technology mean it's now safe? "

How Ironic...... wrote on Sep 4, 2007 2:36 PM:

" I just got my bill today, opened it and saw it was around $60. Was talking to my son and was saying to him i can remember when my will was like $20(not all that long ago either). Now I see they want to raise it even more. Where is this money going? How do they justify this? "

the way i see it wrote on Sep 4, 2007 2:12 PM:

" thats just what i was going to say we get a pay raise and than all the companies grocers and everyone starts hikin here n hikin there than the dollar extra we were givin is gone to the next big guy needin his hike its rediculous to sit back and watch the money hungry vulchers sweepin in for the kill what a joke it all is hahaha "

My wish... wrote on Sep 4, 2007 12:51 PM:

" I sure wish I could hike my paycheck by 20% every time the water, natural gas, electric, gasoline and sewer bill went up 20%! "

My wish... wrote on Sep 4, 2007 12:48 PM:

" Sure wish I could increase my paycheck by 20% everytime my water, natural gas, electric and gasoline, sewer and cable prices get hiked by 20%. "

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