‘Step in the right direction’: Judges recommend Aqua Illinois rate hike be reduced 43% to $10.9 million

State regulatory judges have recommended the Illinois Commerce Commission approve a $10.9 million rate hike for Aqua Illinois, about 43% below what is being sought, according to a utility watchdog group.

But the reduction from $19.2 million as outlined in a proposed order by two ICC administrative law judges isn't enough, according to the Citizens Utility Board.

“This is a step in the right direction for long-suffering Aqua customers, but we believe the evidence submitted by consumer advocates calls for an even greater reduction for customers who have for years faced high bills and poor water quality,” Sara Moskowitz, CUB executive director, said in a statement this week.

The five-member ICC is expected to make a final ruling on the request, Docket 24-0044, no later than Nov. 21.

Aqua Illinois serves about 273,000 customers in central and northern Illinois, including about 1,200 in the Hawthorn Woods area. The rate-hike request filed in January estimated the average wastewater and water bill would increase $29.91 per month, according to CUB.

The company in a response Friday said the recommendation by the administrative law judges is “a normal and expected” part of a process involving rate adjustment requests.

“Over the past six and a half years, Aqua has invested $280 million to improve the communities we serve through infrastructure enhancements without increasing the cost of service to our customers,” according to Dave Carter, Aqua Illinois president.

That includes a $5 million investment in Hawthorn Woods in a second water treatment plant to nearly double the system capacity to 2 million gallons per day, according to the company.

The work is intended to handle normal usage and potential water losses in the event of a main break, according to the company.

Customers in Hawthorn Woods have experienced several service interruptions and boil orders in recent years, including a system failure over nine days in July 2023.

CUB representatives and Aqua customers who attended ICC public forums this summer complained of high bills and poor water quality.

According to CUB, state law allows Aqua to buy depreciated water and wastewater systems statewide and charge customers to cover the acquisition costs — amounting so far to about $121 million. The agency also is fighting for legislative reforms to bring relief to private water customers.

“Aqua Illinois makes every effort to invest in essential infrastructure improvements while minimizing the financial impact for customers,” Carter said in the statement. “But we must also meet our commitment to continuing, and improving, service and reliability to our neighbors across the state.”

Aqua’s parent company, Essential Utilities, has made about $963 million in profits the last two years, according to CUB.