Water Rate Forum

From the News-Gazette:

During the presentation, water company officials reiterated their need for the water rate increase, which is expected to be decided by the commerce commission by July.

Illinois American Water needs more income for the $51 million water treatment plant the company is building 2 miles west of Champaign, said Barry Suits, network operations manager for the water company.

"We can't make a $51 million investment without an impact on local rates," said Suits, who said work on the plant began last August and the facility should be operational by the end of this year. The plant will be able to treat up to 15 million gallons of water per day and can expand to 20 million gallons.

The treatment plant will be the company's third in Champaign-Urbana and the first new one since 1960.

The new plant accounts for 48 percent of the proposed rate increase, while 52 percent is due to increased operations and maintenance costs, plus $12.8 million in capital investments the company has made since the last rate increase in 2003, Suits said.

He said $6.5 million of the treatment plant costs is not reflected in the rate increase request and that reimbursement eventually will have to be sought in a future rate increase request.

For the average residential customer using 6,000 gallons of water per month, the 60 percent water rate increase would mean paying $13.81 more per month, Suits said. As Champaign County customers are billed bimonthly, that would mean a $27.62 increase in their water bills received six times a year.