Peotone Aqua in Hot Water over Rate Increases

Peotone residents knew their water rates would increase at some point after Aqua Illinois rebuilt much of the village’s water infrastructure.
But they weren’t ready for the sticker shock once bills started arriving recently. Bills doubled, and in some cases, tripled from previous bills, residents on the village’s Facebook page reported.
Part of the issue is that rates remained the same while Aqua has worked to improve the system for the past six years.
“Since 2018, we have invested $13.9 million in upgrading Peotone’s water and wastewater infrastructure,” said Aqua spokeswoman Areca Van Mill in an email response to Farmers Weekly Review’s questions.
“These investments were made without increasing service costs to customers until the source water transition took effect. In addition to the water switch, we also modernized the community’s water and wastewater systems.
“When the transition occurred, the Peotone rates increased to align with those across the state.”
By comparison, the City of Joliet has been raising water rates incrementally for its work to bring Lake Michigan water to the city and some partner villages, even though the system isn’t expected to be on line until around 2030.
Van Mill provided a comparison of the old and new rates:
Old Rates:
• Water: $3.22 base charge & $2.23 per thousand-gallon
• Sewer: $8.48 base charge- $2.18 for first 1.000 gallons and $2.25 per thousand-gallon
The new rates reflect the current statewide rates, which have been in effect since 2018.
New Rates:
• Water- Base charge is dependent on meter size. The majority in Peotone are 5/8, which is $16.50 or ¾ which is $24.75, plus usage of $7.57 per thousand-gallon. A fire protection fee is based on meter size. The flat fee for a 5/8 meter is $6.53 or a ¾ meter is $9.80.
• Sewer: $40.02 base rate which includes first 1,000 gallons and then $7.09 per thousand-
gallon.
Aqua does provide an assistance program, Aqua Aid, that is designed to help customers in need to continue receiving uninterrupted water service, Van Mill added. The program is focused on Aqua customers who qualify both by income and by Aqua guidelines. This is a one-time award in a 12-month period.
Under the gun by federal and state environmental officials to upgrade its aging water system, Peotone village representatives at the time opted to sell the system to Aqua for $12 million, rather than take on the burden for the village.
Aqua then would build the infrastructure both within the village and outside to bring Kankakee River water for its 4,283 customers in Peotone.
At the time of the purchase, Aqua officials estimated that bills would triple once the privately owned utility company began pumping Kankakee River water to Peotone.
But residents said recently the increase has been far greater, pointing to quarterly bills that went from $50 to over $200 between September and November.
Customers could be in for even greater shock when the Illinois Commerce Commission rules on the rate hike Aqua is seeking for all of its Illinois customers later this month.
Aqua proposed a $19.2 million increase in January.
But state regulatory judges recommended in October that the ICC approve a lower rate hike of $10.9 million.
The Citizens Utility Board (CUB) has argued, however, that the increase would still be too high, citing ongoing customer criticisms of ballooning price increases, poor quality water, inadequate customer service and loss of control over those issues, because Aqua is a private entity and not accountable to the residents of the community, as a local elected body would be.
The Illinois Commerce Commission is expected to make a final ruling on the proposed rate hike by Nov. 21. The ICC could follow the judges’ recommendation or make additional changes.
Meanwhile, in a press release on October 8, Aqua listed “key improvements” to the water-sewer system that were associated with the river water transition.
“Aqua Illinois successfully transitioned Peotone’s water supply from groundwater (well water) to surface water from its Kankakee Water Treatment Plant, delivering improved water quality and increased reliability. These investments were made without increasing service costs to customers until the source water transition was complete,” the press release noted.
“Aqua replaced 5,580 feet of aging water mains, replaced service lines, extended water and sewer service to the west side of I-57, restored the Lincoln Avenue and Rathje Road elevated tanks, and replaced a number of fire hydrants to enhance community safety.
“Aqua replaced the Hauert Street Lift Station and the clarifier equipment at the Peotone Wastewater Treatment Plant, ensuring cleaner wastewater is returned to the environment and better overall system performance.”
Aqua Illinois President Dave Carter said, “We’re thrilled to announce the completion of these major infrastructure improvements in Peotone.
“These upgrades reflect our deep commitment to customers, ensuring we provide the highest quality water and wastewater services and supporting the exciting economic development of our region.”
Peotone Mayor Peter March declined to comment on that press release.
A second press release issued on October 29 was very similar to the one Aqua provided on October 8, but telling of the completion of major water and wastewater infrastructure improvements in Peotone.
Village Administrator Nick Palmer said that “Having a reliable water and sanitary sewer systems for both our residents and local businesses is critical for any community.
“The Village of Peotone strives to have good working relationships with all of the utility providers and the Village will continue to work with Aqua to ensure that these services are available to our residents and businesses,” he continued.
“These systems must be able to plan for and support future growth of our community. We are thankful for the many capital investments that have been made to sustain the water and sanitary sewers and we look forward to a positive and long relationship with Aqua.”
Freelance reporter Karen Haave and Farmers Weekly Review Editor Nick Reiher contributed to this story.