Iowa American Water wants to increase water rate fees. The proposed hike could raise fees for many residential users by more than 38%.
The water utility filed a rate request last week with the Iowa Utilities Board (IUB) reflecting more than $157 million in water and wastewater system improvements from October 2021 through March 2026 to continue providing clean, safe, reliable and affordable service.
“We carefully plan and invest in the infrastructure of our water and wastewater systems that provide service to approximately 225,000 people in nine eastern Iowa communities,” said Randy Moore, president of Iowa American Water, in a news release. “By making prudent, ongoing investments, Iowa American Water is committed to protecting public health and safety in the communities we serve. At the same time, we remain committed to addressing the needs of our most vulnerable customers.”
As part of the water rate proposal process, the IUB will hold meetings in the region to receive consumer comments. Here are the proposed water rate hike meetings to be conducted by the IUB:
- Quad Cities: In-person meeting at 6 p.m., Wednesday, Aug. 7, at the Quad Cities Waterfront Convention Center, Bettendorf.
- Clinton, Iowa: In-person meeting at the Wild Rose Casino, Clinton, at 6 p.m., Tuesday, Aug. 6.
- Virtual meeting: This meeting will be at noon Thursday, Aug. 8. Go to iub.iowa.gov.
Also, Iowa American Water recently sent its customers a notice of the proposed rate increase.
Under Iowa law, the company can implement a temporary increase in rates that will remain in effect until the IUB completes its review. Iowa American Water will begin those temporary rate hikes of about 11.5% on Saturday, May 11, according to information sent to customers by the utility.
“If final rates are lower than temporary rates or the temporary rates are not based upon previously established regulatory principles, the company shall make refunds, including interest, to customers,” the company said.
According to that notice, here is what customers can expect from their water bills in the increase is approved:
- Residential customers: Iowa American Water states the typical monthly bill in 2023 was $41.10. That will go up to $45.78 as of May 11 under a temporary rate hike. The monthly water bills will then go to $63.49 – or a 38.6% rate hike – as of April 1, 2025, if the rate hike is approved by the IUB.
- Commercial: Iowa American Water states the typical monthly rate in 2023 was $185.27. That will go up to $211.25 as of May 11 under a temporary rate hike. The monthly water bills will then go to $276.17 – or a 30.7% rate hike – as of April 1, 2025, if the rate hike is approved by the IUB.
- Industrial: The water utility states the typical monthly rate in 2023 was $4,055.71. That will go up to $4,738.14 as of May 11 under a temporary rate hike. The monthly water bills will then go to $6,440.36 – or a 35.9% rate hike – as of April 1, 2025, if the rate hike is approved by the IUB.
The company’s last general rate case was filed with the IUB in August 2020, and a final order was issued by the IUB on June 28, 2021. Those rates were effective Oct. 11, 2021. Since then, the company has made and will make over $157 million in capital investments.
In addition, the company is taking steps to address the issue of affordability and is proposing a Customer Affordability Program, which if approved by the IUB, would provide a 20-80% monthly bill reduction for income-eligible customers. Currently, Iowa American Water offers customer assistance through its Project H2O – Help to Others program, payment plans and budget billing. To request assistance through Project H2O, customers can call Community Action of Eastern Iowa at (563) 243-5220 in Clinton or (563) 324-3236 in the Iowa Quad Cities. Information about this as well as payment plans and budget billing is available at the company’s website.
