Area water bills expected to increase by $16 per month starting in January

CHAMPAIGN — Illinois American Water has announced that its new water and wastewater rates will go into effect January 1.

“The amount of rate change customers will experience will vary between the company’s operating districts,” the company said. “The monthly water bill for the typical residential customer using 3,500 gallons per month with a 5/8-inch meter will increase approximately $16 per month and the typical residential wastewater bill will increase approximately $8.50 per month.”

Under the company’s original proposal, residential water bills were expected to increase about $24 per month, while residential sewer bills were expected to increase only $3.

Locally, residents of Champaign, Urbana and Savoy use Illinois American Water for water services, but are served wastewater by the Urbana-Champaign Sanitary District.

The three municipalities, along with others, previously signed an intergovernmental agreement to intervene in the tariff case. Among other things, local leaders opposed Illinois American Water’s proposal to shift the cost of wastewater improvements to water users.

The Illinois Commerce Commission ultimately rejected the cost-shifting proposal in its final order, agreeing that it “would violate the principle of cost causation.”

Champaign City Attorney Thomas Yu said this isn’t the first time the utility has proposed this type of strategy only to have it rejected by the commission.

“They keep bringing it back and we keep having to intervene to protect our customers,” he said.

The commission also ruled that Illinois American Water could only enact a one-step increase, unlike the utility’s proposed two phases, which would have taken effect on Jan. 1, 2025 and 2026.

– JANA WIERSEMA