Utility watchdog warns of rising water rates as regulators consider requests

By

MAGGIE DOUGHERTY/Capitol News Illinois

Customers across Illinois could be facing higher water and sewage bills as the state’s largest private water utilities seek rate increases and permission to merge.Illinois American Water, the state’s largest private water utility, is seeking a $142 million rate increase, which would raise typical water costs for its 357,000 residential customers by around $14 per month. Typical wastewater customers would see an additional increase of around $28 per month.Aqua Illinois, the second-largest private water utility serving over 90,000 customers in the state, has asked regulators to approve a $26.5 million rate increase, which would raise average combined water treatment and supply bills by about $23 per month.But as the Illinois Commerce Commission weighs those rate cases, it is also evaluating a proposed merger between the two water utilities’ parent companies. The Citizens Utility Board, a watchdog group, is calling on the ICC to reject the merger.The consumer advocate group warns that approval of the merger between Illinois American’s parent company, American Water, and Aqua’s parent company, Essential Utilities, would allow unprecedented market consolidation.