Consumer group says Illinois American Water rate hike would overcharge users by $50 million

The Citizens Utility Board claims to have uncovered about $50 million in overcharges in a proposed rate hike from Illinois American Water.

The consumer group accused Illinois American Water of seeking an excessive profit rate and charging customers millions for executive bonuses. CUB also said the company’s rate-hike request highlights the need for the Illinois state legislature in Springfield to pass consumer protections for private water customers across the state.

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“Our testimony reveals what Illinois American Water customers have known for years–that the company’s rates are unjust and unreasonable,” CUB executive director Sarah Moskowitz said in a release. “Consumers just want clean and affordable water. They shouldn’t have to cover bonuses for Illinois American executives and exorbitant profit rates for corporate shareholders.”

In testimony filed Wednesday with the Illinois Commerce Commission, CUB argued Illinois American’s $152.4 million rate-hike request should be cut by at least 32%, or $48.78 million. CUB hopes to add at least $7 million to those reductions by adopting other testimony filed by the staff of the ICC and the Illinois Attorney General’s Office.

Illinois American Water, which runs systems through Peoria and several other central Illinois communities, filed a $557 million rate request in January with the ICC. According to a statement from the company, the purpose of the request is to support proposed water and wastewater system investments to be made through 2025.

“The request reinforces the company’s commitment to investing in its water and wastewater systems to replace aging infrastructure, provide reliable service, enhance water quality and comply with environmental regulations,” Illinois American Water spokesperson Anna Kubas said.

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Kubas added that intervention from customers, communities and third parties like CUB is a standard and expected part of the rate request process. The facts of the rate request are currently under ICC review. ICC is expected to rule on the rate hike request in December.

This article originally appeared on Journal Star: Consumer group says Illinois American Water rate hike request has $50 million in overcharges