water privatization Archives | Citizens Utility Board

CUB to utility exec: Stop downplaying rate hike!

Elizabeth — Sun, 13 Oct 2024 13:58:49 +0000

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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ICC Judges Recommend 43% Cut to Aqua IL’s Proposed Rate Hike, CUB Says Aqua Increase Would Still Be Too High

Elizabeth — Wed, 09 Oct 2024 18:38:58 +0000

State regulatory judges have recommended that the Illinois Commerce Commission (ICC) approve a lower rate hike for Aqua Illinois: $10.9 million. However, the Citizens Utility Board (CUB) said Wednesday that the increase would still be too high for the company, which was sharply criticized by customers for high rates and poor water quality at ICC public forums over the summer. The Proposed Order, submitted Tuesday by two ICC Administrative Law Judges, reduced Aqua’s proposed $19.2 million rate hike by about 43 percent, to $10.9 million. The five-member ICC is set to make a final ruling on the rate-hike request no later than Nov. 21. In its Final Order, the ICC could follow the judges’ recommendation or make key changes. “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,” CUB Executive Director Sarah Moskowitz said. “We urge state regulators to go further in slashing this unjust and unreasonable rate hike.” Take action: CUB petition: Tell the ICC to say no to Aqua Illinois. File a comment with the ICC In January, Aqua, which serves about 273,000 customers in central and northern Illinois, filed its rate-hike request with the ICC (Docket 24-0044), estimating that it would increase the average residential wastewater and water bill (4,000 gallons) by $29.91 per month. Moskowitz called a rate hike that high unprecedented in her 24 years at CUB. In May, CUB joined with the Village of University Park to submit testimony that called out the company for seeking an excessive increase in its return on equity (ROE), or profit rate for shareholders–from an already high 9.6 percent to 10.8 percent. CUB also argued that Aqua improperly tried to force customers to pay hundreds of thousands of dollars in legal expenses connected to the rate case as well as executive bonuses for reaching financial goals that only benefit shareholders. Aqua customers who attended ICC public forums over the summer angrily complained of high bills and poor water quality—with one woman toting a jar of cloudy brown-orange water she said came from her home. In recent years, there have been several examples of service problems-–including a water outage in Lake County in 2023 and unacceptable levels of lead in drinking water in University Park in 2019. “This is about poor versus rich,” University Park Village Manager Elizabeth Scott said at a public forum in Bourbonnais. In Crystal Lake, a customer urged the ICC to require Aqua to first address ongoing problems, including water quality and poor customer service, before allowing the company to raise rates. “Aqua’s proposed rate increase could significantly worsen the financial strain on our working class community,” she said. “We can’t afford the bills we have now.” A major reason for the rising bills are state laws that allow Aqua to hit customers with a “Qualifying Infrastructure Plant” surcharge as well as employ an aggressive strategy to buy up municipal systems. The Illinois General Assembly in 2013 passed a law that allowed Aqua to buy up depreciated water and wastewater systems across the state and charge their customers […]

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‘Stop corporate greed’: Private water customers pack public forums to protest high water bills, poor service and Aqua, Illinois American rate hikes

Jim Chilsen — Mon, 12 Aug 2024 13:32:19 +0000

The Illinois Commerce Commission (ICC) held five public forums on proposals by the state’s two biggest private water companies to raise bills by up to nearly $30 a month, and the events reinforced something that CUB has known for years: Private water customers are fed up with rapidly escalating water bills. In January, Aqua Illinois, which serves about 273,000 customers in Illinois, announced it was filing a $19.2 million rate-hike request that could increase water/wastewater bills by as much as $29.91 per month. 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 $27 to $29 a month. The ICC will rule on the cases around November/December, and new rates would take effect in 2025. CUB calls the rate hikes unjust and unreasonable and has intervened in both cases to challenge them. AARP Illinois requested the public forums, which were held in Jerseyville, Bolingbrook, Champaign, Crystal Lake and Bourbonnais from late June to early August. “Thousands of older customers, including those on fixed incomes, have written to tell us that these increases will mean they have to make tough choices between paying for water or paying for basic necessities like food and prescription drugs,” AARP Illinois State Director Philippe Largent said. At the Bolingbrook forum, CUB Executive Director Sarah Moskowitz said in her 24 years as a consumer advocate she had never seen such a punishing increase, and she admonished Illinois American officials for downplaying the rate hike as “less than a dollar a day.” “I’m sorry, ‘a dollar a day’ doesn’t make it sound any better,” said Moskowitz, sparking applause and hoots from the overflow crowd. At one point during the raucous Bolingbrook forum, customers yelled out the size of their average water bills, prompted by Homer Glen Mayor Christina Neitzke-Troike: “$256!” “$300, if I don’t water my grass.” “Mine’s $350 a month. It is ridiculous,” Neitzke-Troike said. Another customer took the microphone and said to the ICC: “Three words: Stop corporate greed.” About 10 days later and 60 miles away, Aqua customers were expressing the same sentiment at a forum in Bourbonnais. “Currently my monthly bill ranges ranges from $250 to $300 per month,” said one Aqua customer who is from a family of six. “An additional $30 per month is ridiculous.” In Crystal Lake, one customer urged the ICC to require Aqua to first address ongoing problems, including water quality and poor customer service, before allowing the company to raise rates. “Aqua’s proposed rate increase could significantly worsen the financial strain on our working class community,” she said. “We cannot afford this. We just cannot. We can’t afford the bills we have now.” Another customer came to the microphone toting a sign protesting Aqua’s water quality (it said: “Would you give this water to your children?”) and a jar of orange/brown water she said she had taken from her home. “The water is awful,” she said. “This is what I get to bathe in, to brush my teeth, to cook in.” Aqua has had high-profile water service problems, including a water outage in […]

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Op-Ed: Private water customers in Illinois are crying for help. Will the General Assembly listen?

Elizabeth — Fri, 09 Aug 2024 16:23:07 +0000

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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CUB’s Daily Herald Op-Ed: Private Water, Big Headaches

Elizabeth — Tue, 18 Jul 2023 21:21:56 +0000

CUB Director of Governmental Affairs Bryan McDaniel recently penned an op-ed in the Daily Herald responding to Lake County’s water outage with private water utility Aqua Illinois: The recent Aqua Illinois water outage/boil order in Lake County is further evidence that private corporate monopolies are not the answer to our water infrastructure needs. This isn’t the first time Aqua made negative headlines in Illinois. In 2019, University Park detected unacceptable levels of brain-damaging lead in their drinking supply. One TV report found that some traumatized residents still don’t trust Aqua and continue to choose bottled water. While Aqua wasn’t able to live up to its promise of “safe and reliable” service in those instances, it’s been consistently delivering for its shareholders. Aqua’s parent company raked in $191 million in first-quarter profits. Plus, it bragged about 9 pending acquisitions of municipal systems across the country, including Illinois’ village of Frankfort. The parent company of the state’s other big water company, Illinois American, is also riding a wave — 15 consecutive years of increased dividends. And it just announced its largest wastewater acquisition in Illinois ever. But their privatization profits are creating affordability problems as the companies hopscotch around Illinois buying systems, which current state law forces their customers to pay for (so far, $303 million and counting). If these companies were in a competitive market, we would applaud their success. But water is essential — and they are monopolies. One problem is Illinois doesn’t require a local privatization referendum, which would give people a vote before their municipal system is privatized. Additionally, state law allows the utilities to charge a Qualified Infrastructure Plant (QIP) surcharge, which helps rapidly increase bills. Tell your legislators to fight for water reforms. A good first step would be requiring a public referendum before a municipality can sell their water system to a private utility. Learn more about our fight at CUBWaterTracker.com. It’s time to remember the people who pay the bills. –Bryan McDaniel, Director of Governmental Affairs, Citizens Utility Board (CUB) of Illinois

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Boil order for Aqua customers another example of private water problems

Jim Chilsen — Fri, 07 Jul 2023 22:11:20 +0000

About 1,200 Aqua Illinois customers in Lake County spent about a week under shoddy water service and a boil order. It’s the latest concern connected to private water companies, as they blow through hundreds of millions of dollars of their customers’ money to buy up water systems in cities and towns across Illinois. “This is further evidence that private corporate monopolies are not the answer to this country’s water infrastructure needs,” said Bryan McDaniel, CUB’s director of governmental affairs. “Incidents like this, along with the high cost of private water service, are why we’ve been fighting to give Illinois consumers a voice before their water systems are taken over by private companies.” The latest incident involved about 1,200 Aqua Illinois customers in Hawthorn Woods, Kildeer and nearby unincorporated areas, according to the Daily Herald of Arlington Heights. The incident began on Sunday, July 2. The regional system already had low water supply, because of draught, but a leaking fire hydrant in Hawthorn Woods caused a water outage, according to an Aqua spokeswoman. Other temporary outages occurred, as Aqua crews were forced to repair other breaks. The boil order was lifted the following Sunday. “Yesterday I actually received an Aqua bill,” Susan Bauer, a Hawthorn Woods resident, said. “I was very tempted to throw it out.” Bauer told the Daily Herald that residents were angry about how Aqua handled the crisis: “We will demand answers.” This isn’t the first time Aqua has made negative headlines in Illinois. In 2019, University Park — whose water system is run by Aqua — detected unacceptable levels of brain-damaging lead in their drinking supply. Three years later, some traumatized residents still didn’t trust Aqua and were continuing to choose bottled water, according to a TV report. Water privatization has grown in recent years to become one of CUB’s major consumer issues. Here’s what’s happening: Illinois American Water and Aqua Illinois — the state’s two biggest private water utilities— have been expanding their empires throughout Illinois, acquiring at least 56 publicly operated water/wastewater systems in the last decade alone. That eventually means higher rates for the residents of these communities, as they pay the companies’ acquisition costs and profits. Under an Illinois law that these wealthy water companies pushed, they can recoup every penny of the buying costs from their customers who just want clean, safe, affordable service. Over the last 10 years, Illinois American and Aqua have collectively charged consumers more than $300 million and counting to buy up local systems. While the buying binge has been rough on customers, it’s been fine for the utilities. In 2022, the parent companies of both utilities collectively raked in $1.2 billion in profits — the same year Illinois American received regulatory OK for an $85 million rate hike (CUB helped cut it by about $14 million). In addition to challenging rate hikes, CUB has been leading the charge for water reforms in Springfield. Here are some of our goals: Eliminate a damaging automatic surcharge: Known as the Qualified Infrastructure Plant (QIP) charge, it allows private water companies to rapidly raise bills. Stop the gravy train: Mandate that company shareholders — not customers — cover most of the cost […]

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Private water utilities raise consumer bills by $220 million to pay for acquisitions

Hannah — Tue, 23 Mar 2021 15:25:34 +0000

Over the past eight years, private water utilities Illinois American Water and Aqua Illinois have been buying up aging water and wastewater systems across the state. As of February 2021, these for-profit companies have purchased more than thirty local water and wastewater systems since 2013 and have recovered the acquisition costs—more than $220 million—by raising customer bills. Ratepayers may be unsatisfied with skyrocketing water bills under new private ownership, but as of now, state law leaves them without a voice in determining if or when their system is privatized. To right this wrong, CUB is pushing to pass House Bill 737/ Senate Bill 164, which would require communities to hold a referendum before they can sell their water system to a private operator. (Sign the petition here!) The bill’s senate sponsor, Sen, John Connor, joined CUB and AFSCME for a news conference on Monday to raise awareness of the issue and promote the bill. Watch a recording of the event here and read CUB’s news release. When faced with the decision to privatize, small municipalities are often stuck navigating the city’s short-term financial solvency, the community’s health and safety and their constituents’ utility bills. Sell, and the community gets an influx of extra revenue from the sale and a private company takes financial responsibility for a water system that is often in need of expensive upgrades and maintenance. But more often than not, ratepayers end up with higher bills as a result of privatization. Food & Water Watch did a survey of 500 municipal water systems across the country and found that private water utilities charge an average of 59 percent more for service than their public counterparts. In Illinois, the number is worse. The report found that customers of private systems in Illinois pay almost $300 more per year. CUB’s consumer advocacy team spoke to a consumer in Glenview, Illinois, which sold its water and wastewater systems to Aqua in 2015. In that acquisition, Aqua agreed to freeze its rates for 5 years. Once the freeze expired in 2020, her bills doubled overnight. One reason for high private water rates is the IIlinois Water Systems Viability Act. The 2013 law allows private water utilities to raise their existing customers’ rates to cover the costs of buying other water systems. These companies are now free to offer top dollar for aging water systems and stick their existing customers with the cost. If your city is considering privatizing your water or wastewater system, get the facts first. Tell your state representatives to support Illinois Senate Bill 164 and House bill 737, which would require a referendum of local voters before your municipality can sell its systems. If ratepayers foot the bill for privatization, they should have a voice in the decision. Tell your legislators your water shouldn’t be handed to private companies without a vote. (Sign the petition here!)

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CUB’s Capitol Report: Fighting rubber-stamped rate hikes, water privatization, and unfair gas charges in Springfield

Celeste — Wed, 20 Jan 2021 18:38:06 +0000

With Illinois’ new General Assembly taking up business in Springfield amid a pandemic, CUB’s Bryan McDaniel will be busy fighting for consumers on a number of important bills. Help CUB fight for lower utility bills “Fighting for consumer legislation in Springfield is always a challenge because energy, water, and internet company lobbyists are out in full force and they’ll do whatever they can to protect and increase their profits,” said Bryan, CUB’s director of governmental affairs. “Sometimes it takes several legislative sessions to pass good bills. But we don’t give up, because it’s about protecting consumers.” The following issues will be part of CUB’s pro-consumer agenda at the State Capitol. (We don’t have bill numbers for these legislative campaigns but we’ll update you as soon as we do.) Working for the Clean Energy Jobs Act (CEJA) After delays caused by the pandemic and a scandal in which federal prosecutors accused ComEd of corruption, there is urgency to support CEJA. CUB calls CEJA the most consumer-friendly energy legislation in Springfield for a number of reasons, but most importantly the legislation would protect customers from a series of Federal Energy Regulatory Commission (FERC) rulings since 2019. Those rulings have Illinois on the verge of major changes to the electricity market. The market changes would shovel consumer money to fossil fuel power plants to the tune of up to $1.7 billion in higher electric bills for most Illinois consumers over the next decade. As a response, CEJA would put the Illinois Power Agency in charge of managing a key part of the electricity market in ComEd territory, called the capacity market, putting Illinois in control of its own clean energy policy and creating the opportunity to save consumers money while greatly expanding clean energy investment. CEJA also would: Implement a more fair and transparent electricity rate-setting system that would require ComEd and Ameren to prove how investments would make utility bills more affordable. (The current system, formula rates, is at the center of a ComEd corruption scandal. Formula rates make it too easy for the companies to get rubber-stamped rate hikes, and ComEd is accused of using illegal means to pass the legislation that created this rate-setting system.) Require ComEd to pay restitution for its corruption. Create an ethics monitor to hold all utilities more accountable. Expand energy efficiency programs that have already saved Illinois consumers billions of dollars on their utility bills. Ending an unnecessary natural gas bill surcharge While the legal team this year has been involved in about $400 million in rate cases before the Illinois Commerce Commission (ICC), at the State Capitol CUB is taking on a special natural gas surcharge (the “Qualified, Infrastructure Plant” charge) that, as Bryan puts it, allows Ameren, Nicor Gas and Peoples Gas “to use consumers like an ATM machine.” The parent companies of those utilities have made billions of dollars in profits over the last five years, so they’ve been very successful at taking more consumer money. The utilities say the surcharge is necessary to pay for pipe replacement, but the companies are legally obligated to replace old pipes and respond to emergencies, […]

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