While many Champaign residents are already tightening their belts, they may soon have to make another notch.
Last May, Illinois American Water filed an application with the Illinois Commerce Commission (ICC) for a rate increase, which would affect customers across the state. If passed, the rate increase would be in effect in spring of 2010, affecting University students currently living in apartments.
State Rep. Naomi Jakobsson (D-103) said she collected hundreds of signatures on a petition she began to protest the rate increase.
“We have a number of citizens who struggle to decide whether to pay for bills like this or pay for family and medical needs,” Jakobsson said. “This will make it really difficult for them.”
Company officials say Illinois American Water’s planned infrastructure improvements, economic factors and rising costs of service are among the main monetary demands that have caused the company to request an increase in rates.
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“The increase would fund replacements to pipes, also the improvements to Mattis (Avenue) water treatment center,” said Kathryn Foster, spokeswoman for Illinois American Water. “Even with the proposed increase, water will still be about a penny per gallon.”
Home and apartment owners of Champaign can expect an average rate increase of 35 cents a day, and customers who use at least 5,250 gallons per month can expect a 10 percent increase to their monthly payment. Additionally, Illinois American Water is changing its current bimonthly billing process to a monthly bill.
Foster continued and said that although the rate increase applies to the entire state of Illinois, some counties pay more based on repair needs.
“Across the state there is a unique request from each district, partially because of the various water sources,” Foster said. “The rates change in every district based on repairs and regulations needed in each area.”
If the new rates are approved as requested, it will generate $58.6 million in additional revenue for the company. The proposal reflects repair plans of approximately $184 million statewide.
According to the United States Environmental Protection Agency, U.S. water utilities will need to make more than $335 billion over the next two decades in order to pay for all of the repairs necessary for the thousands of miles of piping throughout the nation.
“Illinois water has to do what they need to do because of the current economic situation,” said Jeff Nogle, sophomore in business.
“But it definitely affects college kids who don’t have a lot of money, and will make people think a little bit more about the cost of apartment living,” he added.
