It’s time to hold water utilities accountable

Times are tough for water customers, thanks to policies pushed by the state’s two biggest private water utilities, Illinois American Water and Aqua Illinois. Here’s why those two companies are causing hardship:

· Illinois American and Aqua both add a legislatively-approved “Qualifying Infrastructure Plant,” or “QIP,” surcharge to their bills. The charge allows them to spend customer money faster and enrich themselves through speedier rate hikes.

· In recent years, both companies have bought up dozens of water and wastewater systems across the state. And under Illinois law, the utilities can force customers to pay all of the acquisition costs. CUB’s team has been monitoring this buying spree (see our special website), and so far customers have covered $402 million in purchases.

A perfect example of the anti-consumer consequences of Big Water’s bad policies are the punishing rate hikes both companies are pushing this year before state regulators. Aqua wants a $19.2 million rate hike, and Illinois American $152.4 million. Both would increase bills by up to $29 a month.

While customers face rising costs, Aqua and Illinois American laugh all the way to the bank. Their parent companies have made a combined total of $2.7 billion in profits over the last two years.

But common-sense reforms in House Bill 5157 (the “Water Affordability and Accountability Act”) would better protect Illinois consumers. HB 5157 would:

· Remove the QIP surcharge.

· Require water utility shareholders to cover most of the price tag when they buy a local water/wastewater system.

This is reasonable legislation to help lower water bills and rein in Big Water. Of course, Illinois American and Aqua will fight us. They see water as a profit-making tool, not a vital resource. That’s why we need your help. Please urge your legislators to support HB 5157.

Bryan McDaniel, Director of

Governmental Affairs

Citizens Utility Board