BMWC Rate Increase Effective August 1, 2024 Billing
The Bond Madison Water Company (BMWC) Board of Directors voted at the June 10, 2024, monthly meeting to increase water rates 55 cents per 1000 gallons of water effective on your August 1, 2024 billing. BMWC absorbed unexpected surcharges from our water supplier, Illinois American Water Company, from April to December 2023. These surcharges were applied again in April 2024. After a rate increase (27%) in February 2023, Illinois American Water Company (IAWC) was allowed by the Illinois Commerce Commission (ICC) to apply surcharges of 10 – 14 % to Bond Madison Water Company’s bill each month. BMWC cannot bear these costs any longer.
Illinois American Water Company has once again applied to the Illinois Commerce Commission for another rate Adjustment. This could increase charges to BMWC by as much as 38.9% in 2025 and an additional 3.5% in 2026. These are the percentages requested by Illinois American Water Company and are under review by The Illinois Commerce Commission. The new rates approved by the ICC will going into effect for February 2025 billing. BMWC will be following this case closely and will be forced to adjust our rates according to the ICC ruling.
Illinois American Water Company Rate Case / ICC Docket P2024-0097
On February 8, 2024, Illinois American Water Company (IAWC) applied to the Commerce Commission (ICC) for a rate increase. Illinois American projects that this increase will affect Bond Madison Water Company by as much as 39%. Deadline for Commission action is June 22, 2024
ICC Public Comment made by Bond Madison Water Company (BMWC) on May 30, 2024
I am submitting this comment on behalf of Bond Madison Water Company (BMWC), Pocahontas, Illinois. BMWC is a rural, not-for-profit water company serving more than 2600 rural residences, 8 villages, and 1 rural water district in Bond and Madison counties. BMWC is a sale-for-resale customer that purchases 100% of its water, approximately 360 million gallons annually, from Illinois American Water Company’s (IAWC) Granite City and East St. Louis treatment facilities. BMWC is contractually bound to purchase all its water from IAWC, preventing BMWC from having the opportunity to find another source of water to provide to our customers.
In February 2023, BMWC received a 27% increase in rates, forcing us to pass a 25% increase to our rural and village member users. Additionally, two months later, IAWC applied surcharges to the purchase price equaling another increase of more than 10%. Included in these surcharges is the Quality Infrastructure Program (QIP) Surcharge. This surcharge, which funds IAWC infrastructure improvements has ranged from 2.5% to 12.5% in recent years. In 2023 alone, the QIP surcharge cost BMWC more than $48,000.
Currently IAWC is requesting a rate increase to fund $557,000,000 to aid in “replacing aging infrastructure.” If this rate increase is granted, IAWC will raise the rate that BMWC pays approximately 20% in 2025 and an additional 2% in 2026, amounting to a 51% increase in purchase cost to BMWC in just four years.
Recently IAWC has acquired or purchased several municipal water and wastewater systems, some, or all of which needed repair or upgrades prior to the acquisition. I assume that the requested $557,000,000 rate increase is to help fund upgrades in these systems. If this is the case, we feel it is unfair that BMWC should have to pay to upgrade these systems only for IAWC to profit from. BMWC only utilizes a very minute portion of IAWC’s water distribution system. I would like to add that BMWC is solely a water purchaser from IAWC. We believe it is unjust that $136,000,000 of wastewater improvements is included in the same rate case.
It is also our understanding that entities (other sale-for-resale customers) under contract negotiations or potential acquisition by IAWC receive better “deals” or rates for water purchases. It is my experience that production and maintenance costs are the same whether your contract is a 40-year term or has expired. When one entity receives special consideration, another less fortunate entity is forced to make up the difference in lost revenues.
As a not-for-profit entity, BMWC strives to provide the best quality water to our customers at the lowest possible cost, which has become increasingly more difficult. In 2023 BMWC spent nearly 55% of its annual operating budget purchasing water from IAWC. We believe it is unfair, unnecessary, and unjust for Illinois American Water Company to request a $557,000,000 rate increase after they received the previously mentioned 37% increase in 2023 (27% increase in water rates plus 10% in surcharges). We would also like to point out that IAWC shareholders benefited from a profit rate of 10.75% while the company itself saw an estimated $1.8 billion in profits over the last two years.
We request that the officers of the Illinois Commerce Commission keep in mind that they are appointed to serve the residents of the State of Illinois, not just the shareholders of Illinois American Water Company.
The Citizens Utility Board (CUB) Claim Article Published on 25News Now
We are asking all customers to take a “stand” on this IAWC Increase. Please review all information and voice your opinion in public comments section on the ICC website.
How to File a Public Comment with the Illinois Commerce Commission (ICC)
Any Illinois resident may comment regarding Illinois Commerce Commission cases. You can file a comment on their website by going to https://www.icc.illinois.gov/docket/P2024-0097/public-comments
You may also provide comments by calling the Illinois Commerce Commission’s toll-free number at 800-524-0795.
Some things to note when filing a public comment:
- Bond Madison Water Company is a Not-for-Profit water system serving more than 2,600 household meters, eight communities and a water district. This rate hike will adversely affect the residents of Alhambra, Grantfork, Hamel, Livingston, Marine, Pocahontas, St. Jacob, Worden, and the members of Three County Water District.
- In February 2023, Bond Madison Water Company received a 27% increase in rates from Illinois American Water Company. In addition to the 27%, Illinois American Water Company imposed surcharges of more than 10% to the Bond Madison Water Company bill each month beginning in April 2023.
- As a customer of Bond Madison Water Company, you are directly affected by the percentage of rate increase assigned to Illinois American Water.
In addition to Filing a Public Comment, Contact Your Legislative Representative
- Governor J.B. Pritzker, 401 South Spring Street, Springfield, IL 62704
- Governor Julia Stratton, 214 State House, Springfield, IL 62076
- Senator Richard Durbin, 525 South 8th Street, Springfield, IL 62703
- Representative Mike Bost, 205 East Harnett Street, Mascoutah, IL 62258
- Senator Jason Plummer, 310 West Gallatin Street, Vandalia, IL 62471
- Representative Charles Meier, 121 Broadway, Suite 1, Highland, IL 62249
- Representative Blaine Wilhour, P.O. Box 1, Louisville, IL 62076
- Senator Tammy Duckworth, 8 South Old State Capital Plaza, Springfield, IL 62701
- Representative Mary Miller, 3236 Broadway Street, Suite 200, Quincy, IL 62301
Any help you can give on this matter will be greatly appreciated.
The Bond Madison Water Company Board of Directors, Manager and Employees
