Rate hike Archives | Citizens Utility Board https://www.citizensutilityboard.org/blog/category/rate-hike-2/ Fight utility rate hikes, promote clean energy, and advocate for consumer protections in Illinois. Sun, 26 Oct 2025 13:00:26 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 https://www.citizensutilityboard.org/wp-content/uploads/2020/09/cropped-CUB_LogoBadgeAlt-32x32.png Rate hike Archives | Citizens Utility Board https://www.citizensutilityboard.org/blog/category/rate-hike-2/ 32 32 Regulatory judges recommend reducing Nicor rate hike by $100 million, consumer advocates urge regulators to cut further https://www.citizensutilityboard.org/blog/2025/10/08/regulatory-judges-recommend-reducing-nicor-rate-hike-by-100-million-consumer-advocates-urge-regulators-to-cut-further/ Wed, 08 Oct 2025 16:08:29 +0000 https://www.citizensutilityboard.org/?p=43832 A recommendation pending before state regulators would shave a record-setting rate hike proposal now looming over 2.3 million Nicor Gas customers by more than $100 million, or about one-third, but consumer advocates say there is more fat to trim from the prosperous utility’s bid for a bloated increase in heating bills. On Monday, administrative law judges for the Illinois Commerce Commission (ICC) published an opinion prescribing a $109.8 million reduction in Nicor’s proposed $314.2 million rate hike (Docket No. 25-0055), which the ICC is expected to rule on in late November. While the judge’s opinion, known as a Proposed Order, advises the Commission to cut the whopping increase by about a third, it still would leave consumers saddled with an increase of about $204.4 million at the same time they’re struggling to keep up with spiraling energy prices and rising costs across the board. In fact, under the Proposed Order, Nicor would be entitled to collect its fifth rate hike in eight years, just as consumers are still reeling from a summer when electricity prices skyrocketed. It would also inject another financial windfall into the bulging coffers of Nicor’s corporate parent, Southern Company, which has amassed more than $25 billion in profits since 2017, when the utility’s rate-hike spree started. Consumer advocates, including the Citizens Utility Board (CUB), Illinois PIRG, and the Illinois Attorney General’s office, have urged the ICC to adopt cuts that would slash Nicor’s proposed increase about in half, at least. CUB characterized the Proposed Order as a sizable step in the right direction, but urged the ICC to go far beyond the recommendation and make tens of millions of dollars in additional cuts to Nicor’s proposed increase. “This Proposed Order is a promising step toward holding Nicor accountable, but we hope regulators will see that there’s plenty more room to do justice for consumers by eliminating wasteful spending and a bloated profit rate for shareholders,” said CUB Executive Director Sarah Moskowitz. “Now more than ever, consumers are counting on state regulators to alleviate the burden of relentlessly escalating utility costs, because no one should have to choose between keeping the heat on in the winter and putting food on the table.” Among the largesse that consumer advocates are seeking to eliminate from the rate hike, chief examples include: Excessive profit rate for shareholders. Nicor is pushing to increase its “Return on Equity” (ROE)—or profit rate for shareholders—from about 9.51 percent to 10.35 percent. That would needlessly cost customers $47.4 million a year, CUB argues. To make matters worse, Nicor’s proposal to spread that wealth across more shareholders, increasing its “equity ratio,” would cost another $28.6 million a year. That comes out to a total of $76 million. Lavish executive bonuses. Nicor wants to force customers to pay for bonuses the company gives to executives for reaching financial goals that help enrich shareholders but have absolutely no benefit to customers. This would improperly raise costs for customers by $18.1 million a year, CUB argues. High customer charge. Nicor wants to burden customers with a higher fixed customer charge, raising it from $19.48 to $23.41 a month. That […]

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Update on Ameren’s gas rate-hike request https://www.citizensutilityboard.org/blog/2025/08/26/update-on-amerens-gas-rate-hike-request/ Tue, 26 Aug 2025 18:26:25 +0000 https://www.citizensutilityboard.org/?p=43516 Since we first reported on Ameren Illinois’ gas rate-hike request in January, the utility has adjusted its rate hike. Here’s a quick review:  Ameren’s Rate-hike Request: The company has adjusted the amount from about $134.4 million to $131.1 million. It’s not unusual for a rate-hike total to be adjusted as an 11-month case proceeds before the Illinois Commerce Commission (ICC).  Impact on Customers: Ameren said originally its increase would raise average monthly residential customer bills by roughly 12 to 13 percent, or $8 to $10 per month. The numbers are estimated to be similar to that, despite the decrease in the overall total of the hike.  What Consumer Advocates says: CUB has uncovered about $61 million in overcharges in Ameren’s proposed rate hike, which is about 46 percent of the total request. When you include recommendations from consumer advocates such as the Illinois Attorney General’s Office, Illinois PIRG and Environmental Defense Fund, the reductions total about $82 million. That means the testimony of consumer advocates shows that Ameren’s rate-hike request is nearly triple what the company can possibly justify.  CUB focused on the following issues:    Return on Equity. Ameren proposed an increase in its “return on equity” (ROE)—or profit rate for shareholders—from about 9.44 percent to 10.7 percent. That would give the company the highest ROE among major gas utilities in Illinois. CUB argues for a more reasonable 9.45 percent ROE, which would reduce the rate hike by $29.9 million. Capital Structure. CUB’s expert testimony also found problems with “capital structure”—basically how it finances infrastructure projects. Ameren wants to raise its “common equity ratio”—how much of the utility’s financing comes from issuing stocks—to 52 percent. CUB’s testimony recommends keeping it at its current level, 50 percent, which would reduce the rate hike by another $5.8 million. Rate-case Expense. Under Illinois law, utilities are allowed to recover expenses for outside lawyers and expert witnesses in rate cases. It is already offensive that Ameren customers have to pay for pro-utility lawyers and consultants who argue for increasing their bills, but adding insult to injury, CUB’s testimony revealed that Ameren’s accounting treatment of these costs would likely result in customers being double- or triple-charged for these fees—or worse—between now and Ameren’s next gas rate case. Correcting this practice would reduce the rate hike by another $1.8 million. (Note: In Springfield, CUB is working for a reform that would bar utilities from charging customers for this and other expenses that should instead be covered by shareholders.) The remainder of CUB’s financial adjustments related to the utility’s questionable forecasts for gas sales, inflation and cash working capital, which is the amount of money Ameren has available to fund day-to-day operations.  Among the findings of other advocates:  EDF and PIRG argued for the ICC to reduce planned transmission spending by up to $84 million, because the utility failed to adequately justify its spending.  EDF, PIRG and the Illinois Attorney General also found that Ameren frequently replaces transmission pipes, which drives up its profits and customer bills, when other, less expensive compliance measures are viable. EDF and PIRG recommended that the ICC reject a proposal to subsidize […]

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This Week: CUB Urges Ameren Customers to Attend ICC Forums in Springfield, East St. Louis to Protest Utility’s Push for 4th Gas Rate Hike in Recent Years https://www.citizensutilityboard.org/blog/2025/08/26/this-week-cub-urges-ameren-customers-to-attend-icc-forums-in-springfield-east-st-louis-to-protest-utilitys-push-for-4th-gas-rate-hike-in-recent-years/ Tue, 26 Aug 2025 16:45:21 +0000 https://www.citizensutilityboard.org/?p=43510 The Citizens Utility Board (CUB) is urging Ameren Illinois gas customers to attend Illinois Commerce Commission (ICC) public forums in Springfield on Wednesday and East St. Louis on Thursday to protest their utility’s proposal for a fourth excessive gas rate hike in less than a decade. Consumer advocates argue that Ameren’s current $131.1 million rate-hike plan is nearly triple what the utility could possibly justify under the law. In recent years, customers across Ameren’s territory have complained to CUB about multiple rate hikes and escalating gas bills. Ameren Illinois has imposed three increases on customers since 2018, raising delivery rates by $202 million, or 50 percent. In that same time period (2018-2024), the utility’s parent company, Ameren, has increased profits by 45 percent for a total of $6.9 billion, and Ameren Illinois’ gas segment has seen its profits more than double. These forums, organized by the ICC, give customers a chance to voice their opposition to yet another Ameren rate hike: 7:00 p.m. to 9:30 p.m. Wednesday, August 27 CMS Regional Complex 4800 Wabash Avenue Springfield, IL 62711 Sign up to attend 7:00 p.m. to 9:30 p.m. Thursday, August 28 New Life Community Church 1919 State Street East St. Louis, IL 62205 Sign up to attend NOTE: Consumer advocates will be available for interviews in advance and on-site. Consumer advocates such as the Illinois Attorney General’s Office, CUB and Illinois PIRG have filed testimony uncovering more than $80 million in overcharges in Ameren’s proposal, arguing that the utility’s proposal is nearly triple what it can justify. The ICC is expected to rule on Ameren’s rate-hike proposal by December.

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As Ameren Rolls in Profits and Pushes for Higher Rates, Consumer Groups Call for Cutting Ameren’s Gas Rate-Hike Request by Two-thirds https://www.citizensutilityboard.org/blog/2025/05/14/as-ameren-rolls-in-profits-and-pushes-for-higher-rates-consumer-groups-call-for-cutting-amerens-gas-rate-hike-request-by-two-thirds/ Wed, 14 May 2025 16:22:39 +0000 https://www.citizensutilityboard.org/?p=42879 Ameren Illinois’ push to win the largest shareholder profit rate of any major gas utility in the state is unjust and unreasonable, and its $134 million rate-hike request is about triple what the utility can justify under the law, the Citizens Utility Board (CUB), Illinois PIRG and Environmental Defense Fund (EDF) said Wednesday, citing testimony filed by consumer advocates. [Note: Since this release was distributed, Ameren has adjusted its rate-hike request to about $128.8 million.] In testimony filed this month, CUB urged the Illinois Commerce Commission (ICC) to reject $55.8 million in overcharges buried in Ameren’s rate-hike proposal – including an exorbitant profit rate for shareholders and the utility’s attempt to force customers to bankroll legal fees connected to its serial rate-hike requests. When the Illinois Attorney General’s Office recommendations are taken into consideration, the requested cuts amount to $85.3 million, or about two-thirds–and the recommended reductions exceed this hefty margin when testimony from other consumer advocates is taken into account. “In recent years, Ameren has repeatedly sought rate hikes and enjoyed skyrocketing profits, yet the company is back at the table again, pushing for its gas customers to cover an outrageous profit rate for its shareholders,” said CUB Executive Director Sarah Moskowitz, who called on consumers to sign a petition to rein in Ameren’s rate hike at CUBActionCenter.com. “Expert testimony by consumer advocates shows that Ameren’s rate hike is at least triple what the company can possibly justify. We urge the ICC to stand up for gas customers and slash Ameren’s rate-hike request.” This would be Ameren’s fourth rate hike since 2018. In that time, the gas utility has raised delivery rates by $202 million, or 50 percent. In that same time period (2018-2024), the utility’s parent company, Ameren, has increased profits by 45 percent for a total of $6.9 billion, and Ameren Illinois’ gas segment has seen its profits more than double. In January, Ameren Illinois filed for a $134.4 million (now $131.1 million) gas rate hike (Docket #25-0084). The request began an 11-month rate case before the ICC. The proposal would raise average monthly residential customer bills by roughly 12 to 13 percent, or $8 to $10 per month, according to Ameren’s public notice. In the rate case, CUB, the Illinois Industrial Energy Consumers (IIEC) group and Federal Executive Agencies partnered to commission expert analysis from Brubaker & Associates, Inc., a Missouri-based consulting firm that specializes in utility regulation. Through the testimony filed May 8, CUB makes several recommendations to slash the rate hike, including: Return on Equity. Ameren has proposed an exorbitant increase in its “return on equity” (ROE)—or profit rate for shareholders—from about 9.44 percent to 10.7 percent. That would give the company the highest ROE among major gas utilities in Illinois. CUB argues for a more reasonable 9.45 percent ROE, which would reduce the rate hike by $30.6 million. In the rate-setting process, ROE is the most important component of a utility’s “rate of return,” which is the rate at which the utility recovers the cost of financing physical assets, such as gas meters and pipes. Capital Structure. CUB’s expert testimony also found problems […]

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Consumer Advocates Urge Regulators To Cut Nicor’s Record Rate Hike By More Than Half; Decry Excessive Profits, Wasteful Executive Bonuses https://www.citizensutilityboard.org/blog/2025/05/07/consumer-advocates-urge-regulators-to-cut-nicors-record-rate-hike-by-more-than-half-decry-excessive-profits-wasteful-executive-bonuses/ Wed, 07 May 2025 15:50:34 +0000 https://www.citizensutilityboard.org/?p=42798 Nicor Gas’ bid for a record-breaking $308.6 million rate hike is rife with excesses and should be slashed by more than half, according to testimony submitted to state regulators by the Citizens Utility Board (CUB), Illinois PIRG, Environmental Defense Fund (EDF), and other consumer advocates.   (Update: Since the testimony was filed, Nicor has announced that the rate-hike total is now $314.2 million.) CUB warned the Illinois Commerce Commission (ICC) that more than $111 million in the rate hike proposal –  including a lavish profit rate for Nicor shareholders and wasteful spending on executive bonuses – doesn’t pass legal muster and should be rejected. When the Illinois Attorney General’s recommendations are taken into consideration, the requested cuts surge to nearly $153 million, according to testimony filed by the state’s chief legal officer. And that total still doesn’t account for all of the reductions identified by other parties in the case.  Nicor’s proposal would represent the largest rate hike for a gas utility in Illinois history.  “This testimony exposes Nicor’s bald-faced attempt to capture exorbitant shareholder profits–an all-too-familiar theme for the utility’s customers who have already suffered from exorbitant rate hikes in recent years,” said CUB Executive Director Sarah Moskowitz, who urged Nicor customers to sign a petition against the rate hike at CUBActionCenter.com. “We urge the ICC to stand up for Nicor customers and slash the utility’s request for a record rate hike.”   This is Nicor’s fifth rate-hike request since 2017. Between 2017 and 2024, the utility has raised delivery rates by 114 percent, totaling $747 million, and its parent, Southern Co., has raked in $25.2 billion in profits.  “It’s time for Nicor to move beyond business-as-usual practices that have already more than doubled its rates in under a decade,” said Illinois PIRG Director Abe Scarr. “By considering alternatives to new fossil fuel infrastructure, Nicor can maintain system integrity while reducing rate increases and facilitating the transition to safer, cleaner energy.” “In 2023, the Commission warned Nicor it would need to plan for a gas system that meets Illinois decarbonization goals. Two years later, that change is not happening fast enough,” said EDF Senior Attorney Curt Stokes. “EDF, along with our allies, has filed testimony charting a better course. It is our hope that Nicor will take our suggestions seriously and update its plan; if not, we will ask the Commission to order them to.” Experts sponsored by Illinois PIRG and EDF analyzed Nicor’s proposals and asked the Commission to reduce planned gas-pipeline spending by more than $80 million, because Nicor failed to adequately consider alternatives such as repairs or “non-pipeline alternatives” like targeted electrification. EDF and Illinois PIRG made a similar critique of Nicor’s spending on gas transmission pipelines in its 2023 rate case. Notably, Nicor responded by more robustly considering alternatives to transmission pipe replacement. In seven of nine transmission projects, Nicor chose an alternative to pipe replacement, saving customers at least $33 million.  A similar reduction in distribution pipeline replacement spending now would better align with Illinois’ carbon-reduction goals. Details of the Case In January 2025 Nicor Gas filed for a $308.6 million increase (Docket No. 25-0055). Nicor has […]

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Casework Roundup: Enough! Gas utility pushes for record rate hike https://www.citizensutilityboard.org/blog/2025/01/21/casework-roundup-enough-gas-utility-pushes-for-record-rate-hike/ Tue, 21 Jan 2025 21:56:19 +0000 https://www.citizensutilityboard.org/?p=42203 The ink was barely dry on rate hikes granted electric and water utilities in 2024 when Nicor Gas and Ameren Illinois proposed new gas increases for 2025—including one that would be the largest gas increase in Illinois history. Also, Peoples Gas has filed papers with state regulators indicating it might push for a rate hike. We’ll update you if they officially file for an increase. Here’s a summary of news at the Illinois Commerce Commission (ICC): Nicor: In January, Nicor requested a $309 million increase–what would be the largest gas hike in Illinois history. Nicor has received four rate hikes—totaling $724 million—since 2018. This new request would jack up delivery rates by more than 20%. CUB’s reaction: “Nicor’s push for a ridiculous 10.35% Return on Equity (ROE), or profit rate for shareholders, exposes this rate-hike request for what it is: A money-grab meant to benefit shareholders to the detriment of customers who just want to keep their homes warm.” Ameren: Ameren also filed for a gas rate hike. At press time, the utility hadn’t revealed the full amount of its request, but said it would increase delivery rates by 20-28%. Ameren has won $111 million in gas hikes over the last few years: $76 million in 2021 and $35.2 million in 2023. CUB’s reaction: “This increase would be a hardship for many Ameren customers. We urge the ICC to reduce the utility’s wasteful spending and hold it accountable to its customers.” Illinois American, Aqua (water): On Nov. 21, the ICC OK’d an $11.6 million rate hike for Aqua Illinois, about 40% less than what the utility had wanted. On Dec. 5, the ICC approved a $110 million rate hike for Illinois American Water, about 28% less than what the company had originally requested. In total, the two increases were cut by about $50 million. CUB’s reaction: “We are relieved Illinois American and Aqua didn’t get the rate hikes they wanted, but we are still concerned about the increases. The ICC’s rulings give new urgency to CUB’s push to reform privatization laws that water utilities use to plunder their customers.” ComEd, Ameren (electric): On Dec. 19, the ICC OK’d multi-year rate hikes for Commonwealth Edison and Ameren. CUB and other consumer advocates secured a total of about $1.8 billion in savings for electricity customers, but the utilities still won rate hikes: $606 million for ComEd, adding to the $500 million it got in 2023; and $309 million for Ameren, adding to the $56 million it received in 2023. These hikes will be spread out over four years through 2027, to cover costs to maintain/improve the power grid, plus a profit. CUB’s reaction: “It’s a step in the right direction that the ICC has cut wasteful spending by hundreds of millions of dollars, reduced the utilities’ proposed rate hikes by a total of about $95 million and held their profit rate for shareholders to about 8.9% for ComEd and 8.7%, for Ameren, down from the ridiculous 10.5-10.65% the utilities had proposed in their first grid plans. But an increase of any kind is difficult to bear for far too many customers. We […]

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CUB to utility exec: Stop downplaying rate hike! https://www.citizensutilityboard.org/blog/2024/10/13/cub-to-utility-exec-stop-downplaying-rate-hike/ Sun, 13 Oct 2024 13:58:49 +0000 https://www.citizensutilityboard.org/?p=41306 Addressing a packed public forum about a proposed rate hike that could average up to $27-$29 per month, a utility executive downplayed the increase by saying it “will be less than a dollar-a-day….” CUB Executive Director Sarah Moskowitz sparked applause at the forum when she said: “A ‘dollar a day’ doesn’t make it sound any better. You should stop using that talking point. I’ve worked as a consumer advocate for over 24 years, and that level of increase is unprecedented.” CUB’s comments at the public forum on Illinois American Water’s proposed rate hike–and three other forums on water rate hikes–was part of CUB’s work challenging utility increases in 2024. Summaries of cases CUB is working on before the Illinois Commerce Commission (ICC). Illinois American Rate Hike (ICC Docket # 24-0097) Illinois American Water announced on Jan. 25 that it was pushing for a $152 million rate hike. Illinois American said the hike would increase water service bills by an average of about $24 per month, while the average residential wastewater bill would increase by about $5 per month, depending on the customer’s service area. CUB has challenged the rate hike, and its testimony has uncovered nearly $50 million in overcharges in the company’s request. The ICC will rule on the case in December. Take action:  Sign CUB’s petition File a comment with the ICC. Call the ICC to oppose the rate hike at 1-800-524-0795. Aqua Illinois Rate Hike (ICC Docket # 24-0044) Aqua Illinois on Jan. 17 filed for a $19.2 million rate hike before the Illinois Commerce Commission (ICC). For the average residential wastewater and water bill (4,000 gallons), Aqua said this would increase rates by $29.91 per month, or about $1 a day. CUB is challenging the rate hike, and in its testimony it has uncovered about $8 million in overcharges in the company’s request. The ICC will rule on the case in November/December. Take action:  Sign CUB’s petition File a comment with the ICC Call the ICC to oppose the rate hike at 1-800-524-0795   ComEd Rate Hike/Grid Plan (ICC Docket # 23-0055, ICC Docket # 24-0181) Last December the Illinois Commerce Commission (ICC) rejected the utility’s grid plan and slashed its $1.47 billion rate-hike request by about 65 percent (ICC Docket # 23-0055). However, the company filed a petition for rehearing challenging some issues in that December ruling that were separate from the grid plan. This spring the utility settled with the staff of the ICC and state regulators unfortunately approved an additional $186.4 million in higher rates. ComEd has refiled its multi-year grid and rate plans and is asking for an increase of about $1.1 billion (ICC Docket No. 24-0181) in future rates. So far, CUB has found nearly $90 million in overcharges in that proposal. The ICC is set to rule on the case Dec. 5, with the new rates taking effect around January 2025. Take Action: Sign CUB’s ComEd and Ameren grid plan petitions File a public comment with the ICC about the new ComEd grid plan. Call the ICC at 1-800-524-0795. Ameren Illinois Hike/Grid Plan (ICC Docket No. 23-0082, ICC Docket No. 24-0238) The ICC […]

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Op-Ed: Private water customers in Illinois are crying for help. Will the General Assembly listen? https://www.citizensutilityboard.org/blog/2024/08/09/op-ed-private-water-customers-in-illinois-are-crying-for-help-will-the-general-assembly-listen/ Fri, 09 Aug 2024 16:23:07 +0000 https://www.citizensutilityboard.org/?p=41085 By Sarah Moskowitz CUB Executive Director Hundreds of customers of Illinois’ largest private water utility packed an Illinois Commerce Commission public forum in Bolingbrook one recent summer night. They were fed up with how high their bills are now — and that Illinois American Water wanted to raise them by nearly $30 a month. That’s the largest utility increase I’ve ever heard of in my 24 years at the Citizens Utility Board. At one point during the raucous forum, customers yelled out the size of their average water bills: “$256!” “$350!” “$300, if I don’t water my grass.” Some helpful legislators were in attendance, but I wish more members of the General Assembly could have witnessed how much angst private water customers are feeling these days. Because our state legislators helped put customers in this predicament — and they can help fix it. Here’s a little history of how these companies have been able to cause so much hardship today: Back in 2000, private water utilities won the right from Illinois legislators to charge a special “qualifying infrastructure plant,” or QIP, surcharge. It allows the companies to spend customer money faster and enrich themselves through what is in effect speedier rate hikes outside the traditional rate-making process. In 2013, the utilities pushed for a state law that would allow them to buy up depreciated water and wastewater systems and charge their customers 100% of the acquisition costs. We’ve been keeping an eye on their shopping spree at our special website, CUBWaterTracker.com, and so far Illinois American and Aqua Illinois have charged their customers $402 million for the takeover of 59 municipal water/wastewater systems — and it will get only worse. And now both companies are pushing rate hikes before the ICC: Aqua wants $19.2 million more, and Illinois American $152.4 million. The impact would vary depending on where a customer lives, but both increases could jack up average water and wastewater bills by up to nearly $30 a month. Aqua and Illinois American try to soft-pedal it by describing the hit as “$1 a day” — but their 1.5 million customers can do the math and know a dollar a day is terrible. The companies argue that customers pay higher bills to secure quality service. But Aqua’s highly publicized service problems fly in the face of that claim — including unacceptable levels of lead in drinking water in University Park in 2019, a weeklong water outage in Lake County last summer and a boil order for Hawthorn Woods this summer. “I have no confidence in the quality of the water,” one Aqua customer wrote to the ICC. “I’m still drinking bottled water and my bill is over $130 a month.” While customers suffer, the utilities prosper. The parent companies of Aqua and Illinois American have raked in a combined total of $2.7 billion over the last two years. And the current rate hike requests suggest both companies have no intention of slowing down. CUB’s testimony in the rate cases exposed that they are pushing to raise their profit rate for shareholders to an obscene level — from an already excessive 9.6% for Aqua and 9.78% at Illinois American to 10.8% […]

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News release: Bipartisan group of lawmakers join with CUB to oppose water rate hikes, call for legislative reforms https://www.citizensutilityboard.org/blog/2024/07/10/bipartisan-group-of-lawmakers-join-cub-to-oppose-water-rate-hikes-call-for-legislative-reforms/ Wed, 10 Jul 2024 17:57:42 +0000 https://www.citizensutilityboard.org/?p=40873 As frustration mounts among 1.5 million private water customers in Illinois, state legislators from both sides of the political aisle joined the Citizens Utility Board (CUB) on Wednesday to urge state regulators to reject rate hikes proposed by Illinois American Water and Aqua Illinois, call on the General Assembly to reform state water policy that has hurt consumers, and alert people of the upcoming Illinois Commerce Commission (ICC) public forums on the proposed increases. State Rep. Dagmara Avelar, a Democrat from Romeoville, state Sen. Sue Rezin, a Republican from Morris, state Rep. Nabeela Syed, a Democrat from Palatine, and state Sen. Rachel Ventura, a Democrat from Joliet, held a news conference (video) with CUB Director of Governmental Affairs Bryan McDaniel in Bolingbrook–a community that has suffered under high Illinois American bills. They detailed how Aqua and Illinois American–the state’s two biggest private water utilities–have abused their customers in recent years: In January, Aqua, which serves about 273,000 customers in Illinois, filed for a $19.2 million rate-hike request that could increase water/wastewater bills by as much as $29.91 per month. Aqua’s parent company, Essential Utilities, saw a 7 percent increase in profits, to $498 million in 2023, and the utility last received a rate hike, about $7 million, in 2018. In February, Illinois American, which serves about 1.3 million Illinois customers, filed for a $152.4 million rate-hike request that could raise water/wastewater bills by up to $29 a month. The utility’s parent, American Water, made $944 million in profits in 2023, a 15 percent increase from the year before. Illinois American has won $120 million in additional rate hikes in less than a decade–an $85 million increase in 2022 and a $35 million hike in 2016. While they pay higher bills, private water customers have also been the victims of extremely poor service—including an Aqua water outage in Lake County in 2023 and unacceptable levels of lead in drinking water in University Park in 2019. While Aqua says the problem in University Park has been fixed, years later some customers were still drinking bottled water because they didn’t trust the company. Even before the utilities’ rate-hike requests, their customers contacted CUB to complain about excessive water bills, because water policy is sorely in need of reform in Illinois: Private water utilities in 2000 won state legislative approval to add a “Qualifying Infrastructure Plant” surcharge to bills, which has needlessly increased costs for customers. In 2013, the utilities successfully pushed for a state law that allows Illinois American and Aqua to buy up depreciated water and wastewater systems across the state and charge their customers to cover 100 percent of the acquisition costs. CUB Water Tracker, CUB’s special online center monitoring the problem, found that these for-profit companies have so far purchased 59 systems since 2013 and have passed $402 million in acquisition costs onto their customers. Private water companies often charge customers more, once they take over those municipal systems. CUB’s legal team is challenging the rate-hike requests, uncovering $7.6 million in overcharges buried in Aqua’s proposed increase, and $48.8 million in overcharges in Illinois American’s proposed increase. At the same time, […]

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CUB challenges water rate hikes in 2024: Help us fight them! https://www.citizensutilityboard.org/blog/2024/02/06/how-to-fight-utility-rate-hikes-in-2024/ Tue, 06 Feb 2024 16:28:52 +0000 https://www.citizensutilityboard.org/?p=39291 Illinois consumers face two new water rate hikes in 2024. Here’s how you can get involved. Aqua Illinois Rate Hike (ICC Docket # 24-0044) Aqua Illinois on Jan. 17 filed for a $19.2 million rate hike before the Illinois Commerce Commission (ICC). For the average residential wastewater and water bill (4,000 gallons), Aqua said this would increase rates by $29.91 per month, or about $1 a day. CUB is challenging the rate hike. “A rate hike of up to $30 a month is painfully excessive–and will be a hardship for Aqua customers. CUB has long had concerns about poor service quality and high rates from Aqua,” CUB said. “Aqua’s parent company has raked in $963.5 million in profits over the last two years, which raises the question of why the water utility needs to burden its customers with a punishing rate hike.” Take action:  CUB petition: Tell the ICC to say no to Aqua Illinois. File a comment with the ICC You can also call the ICC to oppose the rate hike, at 1-800-524-0795. Illinois American Rate Hike (ICC Docket # 24-0097)  Illinois American Water announced on Jan. 25 that it was pushing for a rate hike. Illinois American said the hike would increase water service bills by an average of about $24 per month, while the average residential wastewater bill would increase by about $5 per month, depending on the customer’s service area. CUB is challenging the rate hike. “Illinois American’s $152 million rate-hike request is severe and greedy—the company is pushing for an excessive profit rate for its shareholders—and CUB will do everything it can to reduce it,” CUB said. “This punishing rate hike will be a hardship to consumers who depend on the utility for a vital service–and that’s why we’re challenging the company’s money-grab.” Take action:  CUB Petition: Tell the ICC to say no to Illinois American. File a comment with the ICC.  You can also call the ICC to oppose the rate hike, at 1-800-524-0795.

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