ICC Reduces Aqua’s Rate Hike Request, Rates Still Will Rise
Today, the Illinois Commerce Commission (ICC) cut portions of Aqua Illinois’ rate increase request for water and sewer services in Illinois.
The ICC’s decision reduces Aqua’s rate request by approximately 43 percent for an overall increase of $11.6 million. The decision also approves a 9.60 percent return on equity (ROE) for the company, a reduction from the utility’s requested 10.80 percent ROE.
Starting July 1, 2025, eligible Aqua customers whose incomes are at or below 150 percent of the Federal Poverty Level will be able to receive a 70 percent discount on all base volumetric charges as a part of the newly approved low-income discount rate.
“Illinoisans shouldn’t have to choose between groceries or running water when funds are tight. Aqua’s new low-income discount rate will help keep water flowing for customers who are struggling to pay their utility bills,” said ICC Chairman Doug Scott, in a press release.
Residents in Peotone recently received their water bills which reflected the work Aqua has done since the company purchased the village’s water system in 2018. They reported bills have doubled or even tripled.
But despite the reaction on a village Facebook group, no residents brought up the issue at the Village Board’s November 18 meeting. Several did talk to an Aqua official while the board was in closed session. An Aqua spokeswoman said the discussion was cordial.
They issued this statement following the ICC’s decision:
“Aqua Illinois’ top priority is delivering reliable water and wastewater services to our customers across the state.
“On November 21, 2024, the Illinois Commerce Commission (ICC) issued their final order on Aqua Illinois’ rate application. In the six years since our last rate increase, we made significant upgrades to water and wastewater facilities and infrastructure across Illinois. This rate decision highlights Aqua’s commitment to aggressively invest in infrastructure to improve service and reliability for our customers.
“As providers of Earth’s most essential resource, we are also committed to ensuring service to customers facing financial challenges. We know that rate increases can be difficult for some of our customers and Aqua is committed to helping ease that burden. We work to help customers with their bills through payment arrangements and Customer Assistance Programs.
“Customers seeking financial assistance can call 877.987.2782 or visit https://www.aquawater.com/
The ICC said it issued its decision after closely scrutinizing Aqua’s rate case filing, as well as testimony, exhibits, and additional materials submitted by the utility, ICC staff, and various intervenors over an 11-month legal proceeding.
This process aims to ensure that utilities receive the necessary funds to provide safe and reliable service to customers, including maintenance and replacement of aging infrastructure at a reasonable cost. At the same time, the Commission works to assure that utility customers only pay rates that are just and reasonable. In accordance with the Illinois Public Utilities Act, utility costs are only recoverable if the utility demonstrates they are just, reasonable, and prudently incurred.
“As the Commission, we must consider the impacts of our decisions on the residents and businesses of Illinois,” said ICC Commissioner Stacey Paradis.
“I want to acknowledge that while the outcome of this case may lead to increased charges on customer’s water bills, the ICC did not come to this decision lightly. The information in this case, as with any other that might impact Illinoisans’ utility bills, was evaluated with great care and consideration, reviewing each of Aqua’s relevant projects.”
Customers struggling to pay their water bills are encouraged to see if they are eligible for Aqua’s consumer assistance programs and Aqua Aid.
The impact of the rate case decision on individual customers will vary based on customers’ service class and water usage.
Aqua Illinois provides water and sewer service to approximately 93,000 customers in 14 counties across Illinois. More information regarding the rate case can be found in Docket No. 24-0044.