Aqua Illinois Rate Increase Approved Amid Public Scrutiny
SPRINGFIELD — After nearly a year of legal disputes and strong opposition from customers, water utility Aqua Illinois has secured approval from state regulators to raise rates starting in 2025. The Illinois Commerce Commission (ICC) authorized the increase, which reflects a significant adjustment from Aqua’s initial request, reducing the proposed increase by 43% that would have hiked bills by $30 per month for customers across 14 northern Illinois counties.
Originally, Aqua sought to collect an additional $19.2 million from customers to cover infrastructure upgrades and operational costs. The ICC ultimately approved a revised plan that allows Aqua to raise $11.6 million while reducing investor returns from 10.8% to 9.6%.
In defending the rate increase, Aqua emphasized its commitment to enhancing water system infrastructure to ensure safe delivery. "In the past six years, we have made significant upgrades across Illinois," the company said.
Alongside the rate increase, a new low-income discount program was introduced, set to begin in July. Eligible households earning below 150% of the federal poverty level will receive a 70% discount on their usage-based water bill. ICC Chair Doug Scott acknowledged the need for future proposals to expand the discount scheme to cover more of the bill, aimed particularly at supporting low-income customers.
Consumer advocates responded cautiously, recognizing the reduction in Aqua’s profit rate but still deeming it too high. They also welcomed the introduction of the low-income discount. The reactions from groups like the Citizens Utility Board and AARP Illinois indicated a sigh of relief, as many customers had expressed concerns over unfinished business from previous contamination issues, like the lead levels reported in University Park.
Public hearings leading up to the ICC’s decision were marked by vocal opposition from residents, who called for deeper cuts to the proposed increase, pointing to high water bills and water quality concerns. As Aqua prepares to implement these changes, they highlight the ongoing tension between utility providers and consumers in Illinois.
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