City to mediate water rate increase

By Stuart Lieberman

The City of Champaign will be intervening in the proposed 60 percent water rate increase the Illinois American Water Company requested Aug. 31.

The plan to intervene in the Illinois Commerce Commission hearings was just one of the city’s plans for the near future that Public Works Director Dennis Schmidt presented to the Champaign City Council on Tuesday night.

Illinois American Water Company’s August request would raise an average customer’s water bill just more than $15 per month, water company spokesman Barry Suits said after the request was filed. The rate increase would be used to pay for capital improvements in the area, including a new water treatment plant.

The proposal must first be reviewed by the Illinois Commerce Commission, a process that could take as long as 11 months.

Champaign is working with Clark Dietz, Inc., a private consultant, to review data the Illinois American Water Company has submitted to the Illinois Commerce Commission. The city has also contacted other communities, and Schmidt said he is “fairly confident” Urbana, St. Joseph, Savoy and Sidney will join the effort.

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The University declined to join the city, according to a city memo, and plans to file its own intervention.

The groups are identifying individuals who will present testimony at the commission’s Jan. 14 hearing, Schmidt said. After that, the city and Clark Dietz, Inc. will compile specific testimony.

“There’s still a ways to go in this effort,” Schmidt said.

The CU Water Group also outlined other future activities at Tuesday night’s City Council meeting, including reviewing Illinois American Water Company’s plans for the new treatment plant.

The group will review the water company’s solutions for its existing plant’s electrical problems, which have caused boil orders.