Bolingbrook sounds alarm over proposed Illinois American Water rate hike

The mayor of Bolingbrook is sounding the alarm over Illinois American Water asking the Illinois Commerce Commission to approve a $134 million rate increase, which would be its fourth rate hike in the past 10 years.

Mayor Mary Alexander-Basta said the increase would add financial pressure on residents already dealing with high costs for food, gas, housing and more.

"That is not and should not be on the backs and the burden of the residents who have no other option other than to utilize their services," she said.

Illinois American Water, the state's largest private water utility, is seeking a rate increase which would raise typical water costs for its 357,000 residential customers by around $14 per month. Typical wastewater customers would see an additional increase of around $28 per month.

Aqua Illinois, the second-largest private water utility serving over 90,000 customers in the state, has asked regulators to approve a $26.5 million rate increase, which would raise average combined water treatment and supply bills by about $23 per month.

Bolingbrook resident Blanche Messina said the rate hike will impact her directly.

"I'm here to pay the garbage bill which just went up and also the water bill is crazy, out of sight. I mean, for senior citizens, let alone for people with a lot of kids, I mean something's got to give," she said.

"My average water bill is right about where the average is, right around $225 a month," said Bolingbrook resident Steve Quigly. "I get that they need to improve the system again, like I said, but I think that this is a little bit over the top what they're asking for."

Quigly said he's already conscious of his household's water use, and while he understands the utility needs funding to improve infrastructure, he said a rate increase puts more financial pressure on his family.

Illinois American Water told CBS News Chicago in a statement that the rate hike request "reflects the prudent, long-term investments needed to maintain safe, reliable water and wastewater service to customers."

But as the Illinois Commerce Commission weighs those rate cases, it is also evaluating a proposed merger between the two water utilities' parent companies. The Citizens Utility Board, a watchdog group, is calling on the ICC to reject the merger.

The consumer advocate group warns that approval of the merger between Illinois American's parent company, American Water, and Aqua's parent company, Essential Utilities, would allow unprecedented market consolidation.

"Illinois American and Aqua have a long history of consumer complaints about escalating bills and poor service, and our expert testimony shows that there is no reason to believe that the merger will fix these problems," CUB Executive Director Sarah Moskowitz said in a statement. "That's why we urge the ICC to reject this deal or set strong guardrails to hold these companies accountable to their long-suffering customers."

After Illinois American purchased Prairie Path Water Company last month, which formerly provided water to customers in 15 counties in north and central Illinois, CUB estimates that approving the merger of Illinois American and Aqua Illinois' parent companies would mean that over 99.99% of regulated water and wastewater utility customers in the state would be served by American Water and its affiliates.

Maggie Dougherty from Capitol News Illinois contributed to this report.