Water utility - bolingbrook

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December 5, 2024: The non-elected Illinois Commerce Commission (ICC) has five voting members (appointed by State of Illinois Governor JB Pritzker). Today, they made a terrible decision (in my opinion) to approve a $110 Million Illinois American Water (IAW) Rate Hike Request that will directly impact Bolingbrook residential and commercial customers!

“Illinois Commerce Commission OKs $110 Million Illinois American Water Rate Hike” – The Citizens Utility Board (CUB) says: "The ICC’s ruling today gives new urgency to CUB’s push to reform a water privatization law that Illinois American Water successfully lobbied for, and now uses to plunder its customers."

It is important to note that The Village of Bolingbrook vehemently opposed this rate increase request and fought this not only with public pressure (including me personally demanding a public forum be hosted in Bolingbrook), but also fought it legally. Our Village Attorney presented a strong case, emphasizing that water is a basic necessity and vital resource that no one should struggle to afford. Bolingbrook was the only local municipality to present oral arguments at the hearing. The Village reiterated its stance that in accordance with the Illinois Constitution and Public Utilities Act, the Commission is charged with promoting the public health, safety and welfare of Bolingbrook customers by ensuring water rates are affordable and therefore preserve the availability of water service to all customers. Additionally, the Village argues the Proposed Order in this case disregards the public outcry voiced by Bolingbrook customers in response to the proposed rate increase and further fails to account for the public comments in the Village’s Amended Initial Brief. In light of the Commission’s statutory duties, the Village poses a simple but yet important question to its members: How does the rate increase proposed by IAW ensure affordability and preserve the availability of these services to the residents of Bolingbrook? The simple answer is that it doesn’t. 

February 18, 2025: Statement from The Village of Bolingbrook - The Village of Bolingbrook took a stand against the latest proposed Illinois American Water (IAW) rate increase before the Illinois Commerce Commission (ICC), the state body that oversees water rates for privately held public utilities. Unfortunately, the commissioners of the ICC (Chairman Doug Scott, Commissioner Michael Carrigan, Commissioner Ann McCabe, Commissioner Conrad Reddick and Commissioner Stacey Paradis) all appointed by the Governor chose to uphold the administrative law judges decision to grant 70% of the rate increase that was requested. 

Our Village Attorney, Burt Odelson, presented a strong case, emphasizing that water is a basic necessity and vital resource no one should struggle to afford. Bolingbrook was the only local municipality to present oral arguments at the hearing. The Village reiterated its stance that in accordance with the Illinois Constitution and Public Utilities Act, the Commission is charged with promoting the public health, safety and welfare of Bolingbrook customers by ensuring water rates are affordable, and therefore preserve the availability of water service to all customers.

Additionally, the Village argues the rate increase in this case disregards the public outcry voiced by Bolingbrook customers in response to the rate increase and further fails to account for the public comments in the Village’s Amended Initial Brief. In light of the Commission’s statutory duties, the Village poses a simple but yet important question to its members: How does the rate increase proposed by IAW ensure affordability and preserve the availability of these services to the residents of Bolingbrook? The simple answer is that it doesn't.

The Village would like to thank the Citizens Utility Board (CUB) and the residents that showed up for the public hearing held at the Community Center last June. While we are disappointed in the granting of any rate increase, your help was vital in reducing the rate increase by 30%.

WHAT WE HAVE DONE ALREADY:

• On February 11, 2025, the Village of Bolingbrook filed an appeal in the Third Judicial District Appellate Court challenging the rate increase granted by the ICC.
• Today, the Village needs your help in taking this issue to our state officials. The ICC is made up of commissioners appointed by the Governor and confirmed by the State Senate. It is also the responsibility of the state legislators to pass the laws that the ICC must follow. 
• We are working with IL State Senator Ventura who recently introduced a bill (SB1513) backed by Il State Representative Avelar in the House regarding private water systems. 

June 2024: You may have heard about a recent rate increase request that Illinois American Water has made to the Illinois Commerce Commission. This article is filled with information, action items, and resources. Our voices are more powerful together, so I do urge you to stay informed and be engaged. Please learn about the history and ask questions!

While I certainly understand and appreciate there are costs of infrastructure maintenance, water delivery services, etc., I also believe that imposing extreme and continuous rate increases to benefit excess profit margins off the backs of local homeowners for a natural resource DOES HAVE LIMITS. All that said, I am also very grateful and appreciative that we have lake water secured for Bolingbrook (this is something that nearby communities are having to deal with at today's infrastructure costs). But, I do firmly believe that fresh water is a natural resource that is readily available in our area and the public shouldn't have to foot the crazy profit margin asks for investors and shareholders of American Water.

Here is a recent message received from Illinois American Water regarding the hyper local impact of their rate request increase to the Illinois Commerce Commission: “Bolingbrook is captured in the Central Water tariff. For a customer with a 5/8” meter, the bill impact to a customer using 3,500 gallons/month -- if the full two-step rate increase is approved by the ICC as requested – would be approximately $20 [a month], or 43%. Bolingbrook is under our Chicago Metro wastewater tariff. If the proposal to ICC is approved as filed, customers with collection and treatment service would have a bill increase of about $1 month or 0.5%.”

This rate increase (upwards of 43%) request is, in my opinion, excessive and frankly greedy. 

February 2024: Let’s Talk Water - The Village of Bolingbrook is keenly aware of the concern regarding the cost of water for its residents and is doing everything in its power to control and lower those costs. Continue reading this post to understand a bit about the history of this issue and learn what steps the Village is taking next.

• Upon being established, the Village had well water sourced and pumped from an underground water aquifer. This well water had several issues in terms of quality and quantity – the well source was quickly disappearing.
• The Village decided over 30 years ago to source water from Lake Michigan using the company Citizens Utilities.
• 2001 – Citizens Utilities was sold to Illinois American Water (IAW) who owns the line to this day

How did that merge that was out of the Village’s control affect Bolingbrook?

• There was no longer a working relationship between IAW and the Village of Bolingbrook
• The Village partnered with nearby communities to for the Northern Will County Water Agency to initiate litigation and take control of the water lines through eminent domain. 

The Village (and Water Agency) WON the right to take over the pipeline; HOWEVER, the lawsuit spanned close to a decade and involved numerous procedural obstacles. At the start of litigation, the cost to purchase the lines was approximately $43 million, an amount the Water Agency could afford and the cost for the Water Agency to operate the pipeline would be less than IAW. Fast forward to today, and that cost is now closer to $200 million. The Village and Water Agency had already spent hundreds of thousands of dollars on the litigation and it became clear that the potential, future cost savings in buying the pipeline and system would be far outweighed by the amount required to continue pursuing its takeover.

Fortunately, a change in leadership at Illinois American Water provided an opportunity to reopen communication and partner together. After extensive negotiations, the Water Agency reached a settlement with IAW with the following concessions:

• $600,000 to put towards improvements in our wastewater system
• Increasing the contribution and amount of money in the Village’s wastewater fund to approximately $150,000 per year
• A cap on the American Lake Water transmission charge for five years
• An upcoming update to the bill to clarify where a resident’s money is going

Now onto present day concerns. Within your latest bill from IAW, you may have seen that they are seeking a rate increase for their water and sewer systems. Any increase must be approved by the Illinois Commerce Commission (ICC). Please know that the Village will be vigorously participating in the ICC proceedings and will be fighting against IAW’s proposal for a rate increase in every way that it is able.

So what’s next? The Village of Bolingbrook has plans to fight this unneeded and unwanted rate increase through the following:

• Continuing to communicate and work with IAW 
• Meeting with the Village of Bedford Park (where the water from Lake Michigan runs through to get to Bolingbrook - pass through charges)
• Working with the DuPage Water Commission
• Direct Discussions with the City of Chicago
• Joining other municipalities
• Doubling efforts to explore more cost-effective solutions to deliver quality, long-term water service to its residents.

Thank you for taking the time to read this information directly from the Village. We hope it assists in explaining the history and current water cost situation. Importantly, please rest assured that the Village is not standing down and is doing everything in its power to fight for its residents.