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Public Forum Concerning General Increase in Water Rates
Case No. 09-0319

Print Illinois Commerce Commission Notice

Print Illinois American Water Notice

Pursuant to Section 8-306(n) of the Public Utilities Act, Illinois American Water is providing you with the attached notice of public forums sponsored by the Illinois Commerce Commission.

The meetings are scheduled in three locations:

• Monday, October 19, 2009 - 7:00 pm
  Homer Jr. High School
  15711 S. Bell Road
  Homer Glen, Illinois
• Thursday, October 1, 2009 - 7:00 pm
  Champaign City Council Chambers
  102 Neil Street
  Champaign, Illinois
• Thursday, October 8, 2009 - 7:00 pm
  Mt. Prospect City Council Chambers
  50 S. Emerson
  Mt. Prospect, Illinois

The purpose of these public forums is to receive public comment concerning the general increase in water rates proposed by Illinois American Water. While one or more members of the Commission might attend, a Commission staff member, serving as a public forum officer, will preside.

Any questions or concerns regarding a public forum may be directed to Robert Bensko, Homeland Security Director, Illinois Commerce Commission, at (217) 524-5049.

File a Comment Online

Instructions for filing a comment online.

Frequently Asked Questions - Updated September 9, 2009

Printable FAQs (pdf) - Updated September 9, 2009

Q. Who sets the water and sewer rates?

A.  The water and sewer rates are set by the Illinois Commerce Commission based upon rate increase requests made by Illinois American Water Company.

Q. What is unaccounted for water and what role does it play in our rates?

A.  Unaccounted for water is the difference between the amount of water that is metered coming into Homer Glen and the sum of the total amount of water measured and billed by each individual meter in the village. There will always be some unaccounted for water due to fire hydrant use, normal system leakage, and un-metered water use at new construction sites.

Q. What are all the charges on the water bill?

A.  The Water and Sewer Bill contains six distinct and identified charges. These are:

Q. Does the Village of Homer Glen play any role in the determination of water and sewer rates?

A.  No. The Village has no authority under Illinois law to establish water and sewer rates. The role of the Task Force commissioned by the Village has been to investigate the rates and help determine what steps, if any, can be taken to reduce or control these costs.

Q. Does the Village of Homer Glen receive any monies from Illinois American from the water and sewer bills?

A.  No. There is no franchise fee or local tax associated with the water and sewer service.

Q. How many customers does Illinois American serve in Homer Glen?

A.  Illinois American currently serves about 6,000 homes in Homer Glen, or about 79% of the community.

Q. What is the Village doing about the high cost of water?

A.  The Village has questioned and taken legal action to stop IAW rate increases since its incorporation in 2001. The Village as worked with Representative Renee Kosel and Senator Christine Radogno in seeing legislation adopted that holds public water utilities more accountable for their service, practices and billing methods, and successful in petitioning the ICC to cap unaccounted for water, require annual fire hydrant inspections, stop illegal back billing practices. The Village has also intervened in the 2006 and 2008 rate cases. The Village will be joining with the Attorney General and other communities to intervene in the most recent proposal of a 29.72% increase in water and 50.96% in sewer rates.

In addition to being advocates for fair and reasonable rates, the Village continues to investigate the possibility of acquiring the utility. Mayor Jim Daley recently reported to the Board of a meeting held with adjacent communities that also receive IAW services through the Bedford Transmission Line. The group met in Homer Glen late last month to review confidential documents presented by their accounting and engineering consultants that have analyzed information provided by IAW for purposes of appraising the system. In addition to the group working together on the joint purchase of the transmission system, the communities are also investigating the acquisition of their individual distribution systems.

Q. What actions can I take to register my complaint about water rates or service with the Illinois Commerce Commission?

A.  You can log into the Comment on a Case page of the ICC website:

Q. I've complained to the Village, IAW, and ICC. What good is this doing?

A.  Your actions have demonstrated that this issue is not an isolated circumstance. Consequently, being proactive has gotten the attention of the ICC commissioners, our state legislators and IAW.

Contact Information:

Village-Wide Water Conservation Measures

The Village "sprinkling" ordinance is in effect annually between May 15 thru September 15.

Water conservation measures were adopted by the Village of Homer Glen on May 30, 2006.  Please click on the link below for details.

Water Conservation Regulations

Private Utility Water & Sewer Service

Illinois-American Water

Customer Service Center:
(800) 422-2782 (24 hours)

Alice Johnson, local customer advocate:
(630) 739-8855

Email:
ILAW.CustomerComments@amwater.com

Kevin Hillen, Network Operations Manager:
(630) 739-8959

Well and Septic Service

For general information about septic and mechanical systems:

Will County Health Department

(630) 679-7030

More about Illinois American Water Rate Increases

(2008) Public Forum for Residents
Regarding Upcoming Illinois American Water Reconciliation Rate Increase

When Homer Glen was incorporated in 2001, several issues concerning the provision of sewer and water were apparent. Due to increasingly high water rates, reports of poor customer service, and communication barriers with IAW, in 2004 the Village Board convened a task force to conduct a study. The task force identified several issues of concern. Homer Glen had the 2nd highest water rate in Illinois, customers were back-billed longer than provided by law, very high unaccounted for water rates, inefficient metering system and no record of fire hydrant inspections. This last presented serious life/safety issue and concerns.

Consequently, in 2006 the Village joined the Attorney General to resolve and prohibit these practices. The Village was successful and IAW was directed to, among other rulings, adhere to ICC rules regarding back billing customers and inspect all fire hydrants. The Village worked closely with Representative Renee Kosel who sponsored two bills providing protections for consumers of private water utilities. The task force recommendations included further resource commitment into the feasibility of a municipal owned and run system.

Since 2007, Mayor Daley and the Village Board have taken a number of steps to study the feasibility of owning the water and sewer system.  The Village also joined with the Villages of Bolingbrook, Woodridge, and Plainfield to assess the feasibility of acquiring the transmission system for Lake Michigan water and recently voted to fund further study of the Bedford Transmission system. This is a complex and involved process.  It is critical the Board has the facts and a full understanding of the processes in order to make an informed and sound financial decision.

Concurrently, the Village intervened in the request for a general rate increase by IAW and also in the most recent IAW filing for an additional increase in water rates for ‘reconciliation’ to recapture lost or unaccounted for water. To give residents an opportunity to provide input, the Village filed a request with the ICC to hold a local public forum for residents in the upcoming Reconciliation Rate increase.  This forum will be held on July 17, 2008 at 7:00 p.m. in the Hadley School Auditorium, 15731 S. Bell Road, Homer Glen, and pertains to IAW’s application for a reconciliation of purchased water surcharges, (ICC Docket 08-0218).  All testimony will be submitted as part of the Village’s intervention in the case.

Residents are also encouraged to provide input regarding the rate increase requests by logging on www.icc.illinois.gov and clicking on the link “Make A Public Comment” on the left side of the page.  This will lead to a webpage for ‘File a Public Comment on-line”.  Follow the directions for docket number “07-0507, Illinois American Water Company”.

Your input can help make a difference.

Submit Comments About Rate Increases ONLINE

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As reported at a Village Board meeting and in our local newspapers, Illinois American is pursuing a General Rate Increase and a Reconciliation Rate increase before the Illinois Commerce Commission.  On behalf of the residents of Homer Glen, the Village has intervened in both cases along with the U. S. Attorney General.

The Village will also be holding a public forum with the objectives of providing information on the status of the cases, circumstances surrounding the public utility and to provide opportunities to hear from residents regarding specific issues and concerns. In the meantime, many residents have been asking what they can do now to express their personal concerns and complaints.

The Illinois Commerce Commission (ICC) does accept public comments on a pending case via its website.  Residents wishing to log comments may access the ICC web site at http://www.icc.illinois.gov and clicking on the link “File a Public Comment”.

This will take the individual to a page that lists various pending dockets.  Scroll down to 07-0507 and it is the Illinois American Water Docket.  By clicking on this link, it will take you to a page that has a filter that requires the viewer to type in a code that finally takes you to the comment page.  Once you have made a comment, a confirmation email will be sent.  If the individual does not respond to the ICC confirmation e-mail, the comment is purged.  If you do not receive a confirmation email, please call the ICC at 800-524-0795.

Posted February 2008

Print this section

Staff has received several calls from residents regarding their recent water bills. The bills indicate a new rate, noted as a second line under both the “Basic Service- Use and Supply Charge”.

Illinois American Water purchases its water supply from one of its sister companies. Each year, the rate for water is set based on two factors: (1) the estimated cost for water for the upcoming year and (2) the amount of over or under recovery of the cost for water for the previous year.

The Illinois Commerce Commission (ICC) has determined that Illinois American Water under recovered its purchased water. As a result, Illinois American Water has been authorized by the ICC to increase the rate for 2008 to recover the under recovery.

When reviewing your February water bill, you will notice the additional lines, with the new rate, pro-rated from February 1, 2008. (The billing period for this bill is January 3 – February 2) The first line is the charge based on the rate before February 1st. The second line is the increase for the month based on the customer’s usage prorated by the number of days, including and after February 1, 2008.

The Village has received information from Albert Sturtevant at the Jones, Day law firm in Chicago which represents Illinois American Water Company at the Illinois Commerce Commission stating the following:

The increase now appearing on the bills is the increase by the City of Chicago for Lake Michigan water that is being charged to Bedford Park, from whom Illinois American buys Lake Michigan water. The company made an “informational” tariff filing in January 2008 to allow the increased cost to be passed through immediately rather than waiting for the annual water reconciliation hearing order. In the past, an increase in the water charge from Bedford Park would be part of the reconciliation, but rather than wait for the reconciliation hearing, the Company made the new informational filing in January.. A final order for the purchased water reconciliation hearing is expected either in March or April (the reconciliation is for the year 2006). The reconciliation should result in a slight increase in purchased water charges since the company under recovered its revenues in 2006. A new purchased water reconciliation case will be filed probably this month for the year 2007. In addition, customers can anticipate another rate change in August when the current general revenue rate case is concluded and the rates are put into effect.

The mechanism of the increase, that is charging the rate by apportioning the days between the two months, is the same whether it is a reconciliation, or as in this case, the pass through of an increase in the underlying water charge.

If you have any further questions about your bill or water service, please feel free to contact Illinois American Water’s Customer Service Center. Representatives are available seven days a week, twenty four hours a day, at 1-800-422-2782.

Water Billing Charge Error
Disregard notice for $10 refuse fee

Published on this website June 13, 2008

To Homer Glen Residents from
Kevin Hillen
Illinois American Water
Operations Manager Field Services

The recent Illinois American Water July billing reflects a refuse fee of $10.00. This billing was placed on the bill in error. It is a portion of a message intended for another district where Illinois American collects trash fees on behalf of the municipality. The message does not impact the bill- there were no new charges added.

An Alert message has been placed on the Illinois American Water system at the customer call center informing customers of the problem. The customers in Homer Glen can disregard the message on the current bill.

Illinois Commerce Commission Upholds Homer Glen Water Complaints

April 25, 2007

The Illinois Commerce Commission [ICC] has issued its final order in the Homer Glen complaint case against Illinois American Water Company [IAW].  The most significant finding is that the rates charged to Homer Glen residents "are disproportionately high relative to the rates charged in other nearby communities", resulting in an order for Illinois American Water to file a new rate case within six months.  If Illinois American Water Company does not comply, then the ICC will reopen the Company's 2002 rate case "to determine if the current rates in the Chicago Metro Service Area are just and reasonable."

Traditionally, the ICC sets rates based on the utility's cost of service with no rate comparison in other communities, making this a significant win for Homer Glen.

Included in the complaint case were the issues of high and spiking water bills, the treatment of residents by Yaw's billing department and the inspection of the critical valves and fire hydrants throughout Homer Glen.

In the final order the commission found the following violations of ICC rules and regulations:

• IAW failed to inspect critical valves in Homer Glen
• IAW failed to inspect, or even have any records concerning the fire hydrants in Homer Glen
• IAW back billed customers for usage beyond a one-year period
• IAW failed to provide Homer Glen customers with a consumer information booklet
• IAW failed to inform Homer Glen customers who disputed bills that they had a right to a hearing
• IAW failed to have personnel on duty authorized to act on behalf of the utility to resolve complaints during business hours
• IAW threatened and harassed its customers in Homer Glen ("An IAWC customer received a threat of service cutoff after a complaint was filed with the Commission.  This is a clear violation of Commission rules...Threatening a service termination while a dispute is pending is inappropriate behavior.")

The final order from the Illinois Commerce Commission requires IAW to inspect and repair the critical valves and fire hydrants, file a written report to the ICC to post on the ICC website and the ICC will require IAW to develop and conduct a new training program for all of Yaw's representatives who interact with customers that will "clearly identify inappropriate and prohibited threatening actions."

A motion for a rehearing is required if either party wants to appeal the order to the appellate court.  These must be filed within 30 days of the final order.

Printable Press Release

Legislation

Local legislators working on behalf of Homer Glen and other Illinois residents sponsored legislation related to water and sewer service.

Senate Bill 3046 and House Bill 5555

Two bills passed both houses of the Illinois General Assembly. SB 3046 and HB 5555 were signed by the Governor.  A synopsis and the entire text of each bill is available from the links below:

Senate Bill 3046 (Signed by Governor July 3, 2006)

House Bill 5555 (Signed by Governor June 27, 2006)

House Bill HB4333

House Bill HB4333 was introduced by Representative Renee Kosel in January 2006. A public hearing on the proposed legislation regarding water and sewer was held Wednesday, January 11, 2006 at 2:30 pm in Room C-1 in the Stratton Building adjacent to the Capitol Building in Springfield, IL

A synopsis and the entire text of House Bill 4333 is available from the link below:

House Bill 4333 (Referred to Rules Committee March 3, 2006

From Illinois American Water June 2007

Illinois American Water asks Chicago Metro customers to help reduce water usage through conservation and water restrictions:

News Release June 2007 (PDF)

Customer Service Center:
(800) 422-2782 (24 hours)

Alice Johnson, local customer advocate:
(630) 739-8855

Email:
ILAW.CustomerComments@amwater.com

Kevin Hillen, Network Operations Manager:
(630) 739-8959