Illinois American Water Files with State Regulators for Rate Increase in Champaign District

Champaign-Urbana area customers of Illinois American Water would pay nearly 35 percent more for their water service, under a rate request that the company filed Friday with the Illinois Commerce Commission.

This is the second rate increase that Illinois American says is needed to help pay for the new water treatment plant the company built west of Champaign. But spokesperson Kathryn Foster says the increase would pay other improvements as well. She says the increase also includes revenue to pay for "enhancements to the Mattis Avenue water treatment plant, to enhance water quality and operations reliability. And we're also investing in replacing and relocating mains, hydrants and meters."

In all, Foster says the rate hike request reflects more than 37-million dollars spent on the water system in Illinois American's Champaign District. An average residential customer's water bill would go up about 10 dollars, to 41-dollars-67 cents a month. The new rate schedule would also mark a switch from bi-monthly to monthly billing.

Whatever rate increase the ICC approves for Illinois American Water would take effect in the spring of next year. Foster says the next step is the state's comprehensive review process, which will include public hearings and opportunities for public comment.