Iowa American Water Files Rate Request


Iowa American Water Files Rate Request

Approximately $26 million of capital investments drive request; Maintains reasonable cost for water service at about one cent per gallon

DAVENPORT, Iowa--(BUSINESS WIRE)-- Iowa American Water Company today filed an application with the Iowa Utilities Board (IUB) requesting an increase in drinking water rates for customers in its Clinton and Iowa Quad Cities service areas. If approved as requested, the increase will generate approximately $6.4 million in additional annual revenue for the Company.

Iowa American Water's ongoing infrastructure investments, rising expenses related to water treatment and delivery systems, and increased operating costs are the main drivers behind today's rate request. Since the last increase request in 2011, Iowa American Water will have invested approximately $26 million statewide by the end of 2013 to improve its water treatment and delivery systems in Clinton and the Iowa Quad Cities. All these investments in local water infrastructure systems enhance water quality, service reliability and fire protection for customers while keeping the cost of water service for most local households at about one cent per gallon.

The Company's request would increase a typical monthly residential water bill for a customer using 4,200 gallons per month by $6.13 from $31.59 to $37.72—that's an increase of about 20 cents per day for reliable, high quality water delivered to their tap.

According to Randy Moore, president of Iowa American Water, "Proactive water system upgrades save money in the long run. By continually improving our water systems, we help reduce the frequency of service interruptions, prevent property damage from water main breaks and enhance fire protection." The need to upgrade water systems is not just an issue for Iowa-American; it is a national issue. The American Society of Civil Engineers says that an estimated $1 trillion in capital spending will be needed across the nation over the next 25 years to replace aging water infrastructure and to comply with stricter water quality standards.

Some of Iowa American Water's largest projects and investments include:

  • Approximately $15 million investment for normal, recurring installation and replacement of water pipelines, services, meters and hydrants.

  • $1.1 million investment on a water main upgrade and valve replacement project on River Drive in Davenport. The project improves reliability for customers by replacing aging valves that have been the cause of significant breaks in the past. The Company partnered with the City of Davenport on the work which resulted in less cost and less inconvenience to customers.

  • $760,000 investment to relocate and replace 8" water main on North Pine Street in Davenport and relocate and replace 16" water main on Tanglefoot Lane in Bettendorf in conjunction with a city street widening project.

  • $636,000 investment for five water main replacement projects on North 6th Street, 7th Avenue South, Locust Place & Bluff, South 9th Street, and 33rd Avenue North to upgrade 2" water main with 6" or 8" main. The work improves reliability and enhances water flows for firefighting.

  • $6 million, multi-year investment in information systems and technology to more effectively support our customer service and business needs.

  • $3.4 million investment over several years for the U.S. Corps of Engineer's Flood Protection Project that will safeguard the East River Station Treatment Facility to the 200-year flood level. Iowa American Water is partnering with the federal government and City of Davenport on this $11.5 million project that will protect the drinking water supply for over 130,000 people when complete in 2013.

  • $1.2 million investment, of which $800,000 was spent in 2012, on Camanche Avenue to relocate and replace approximately 1.5 miles of water main in conjunction with the IDOT Highway 30 Improvement Project.

The IUB will conduct an extensive review of Iowa American Water's rate application that includes thousands of pages of documentation to demonstrate that the request is just and reasonable. Because the IUB can take up to ten months for a decision to be rendered on the case, Iowa American Water intends to put a portion of the requested increase into effect on May 10, 2013 as an "interim" or temporary rate increase while its full request is reviewed. Temporary rates are subject to refund with interest if the IUB approves a final increase that is less than the temporary rates established.

"The regulatory process considers the needs of the customers and the Company's ability to reinvest in the community and to deliver dependable, quality water service," said Moore. "Iowa American Water is widely recognized for meeting or surpassing all water quality standards established by both the U.S. Environmental Protection Agency and the Iowa Department of Natural Resources." Public hearings and opportunities for public comment are also part of the process, under the direction of the IUB.

Iowa American Water, a subsidiary of American Water Works Company, Inc. (NYS: AWK) , is the largest investor-owned water utility in the state, providing high-quality and reliable water services to approximately 200,000 people. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,700 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 14 million people in more than 30 states and parts of Canada. More information can be found by visiting

Iowa American Water
Lisa Reisen
Manager, External Affairs

KEYWORDS: United States North America Iowa New Jersey


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