Iowa American Water Submits Rate Review Request to Iowa Utilities Board
Request driven by almost $87 million investment statewide in water systems
DAVENPORT, IA. (August 28, 2020) – Iowa American Water filed a request with the Iowa Utilities Board (IUB) today to adjust its rates in the communities it serves across the state following an extensive examination of investments to provide safe, clean and reliable water service.
The rate review includes almost $87 million in water system improvements in Clinton, Blue Grass and the Iowa Quad Cities from October 2016 to June 2022. It is important to note that the IUB’s review of the company’s request is expected to take 10 months. Any new rates set by the IUB at the end of the process would not become effective until mid-2021, four years since the last increase.
“By continually improving our water systems, we help reduce the frequency of service interruptions, prevent property damage from water main breaks and enhance fire protection. We carefully plan and invest in our water systems to provide safe, clean, and reliable service to about 216,000 residents in eight eastern Iowa communities,” said Randy Moore, president of Iowa American Water. “These investments are key to our commitment to provide outstanding service and reliability, both now and for future generations.”
The need to upgrade water systems is a national issue. The EPA’s 2015 Drinking Water Needs Assessment reported to Congress that Iowa drinking water systems have an estimated capital need of more than $7.8 billion over the next 20 years with the majority needed for the small and medium sized systems that dominate the state.
Investments in the rate review include the replacement of aging water pipelines and the upgrading of treatment plants, storage tanks, wells and pumping stations across the state. Major projects in the rate request include:
- Over $28 million investment in water main relocations, replacements and upgrades to improve reliability for customers, reduce service disruptions and increase water flows for fire protection. Over 28 miles of water main was or will be replaced from 2016-2022.
- About $11.6 million investment to construct an Ultraviolet Light Disinfection Facility at the East River Station Treatment Facility in Davenport to meet the Iowa Department of Natural Resources compliance schedule for the inactivation of cryptosporidium. This state-of-the-art water disinfection project will go into service in March 2022.
- Over $10 million investment for normal, recurring installation and replacement of water services, meters, valves and hydrants in Clinton, Blue Grass and the Quad Cities districts from 2016-2022.
- About $2.2 million investment in a disinfection improvement project at the East River Station Treatment Facility to replace two gas chemical feed systems with liquid chemical feed systems. The project, which went into service in March 2018, replaced aged equipment and improved, already safe, plant operations and efficiency.
- An $843,000 investment to convert the Clinton District’s Main Station Water Treatment Facility from a gas chemical feed system to a liquid chemical feed system to improve, already safe, plant operations and efficiency.
“The residents and businesses in our service communities rely on us to provide safe, reliable water service for quality of life, economic development and fire protection,” Moore added. “With more than 900 miles of water pipe serving our customers, we must continue to make these proactive investments to maintain and improve service.”
In addition, Iowa American Water is continuing to respond to financial hardships the COVID-19 pandemic has caused for many of its customers. The company has issued a temporary moratorium on shut-offs for non-payment and suspended all late fees since March, and continues to offer payment arrangements to customers who need assistance. Additionally, the company provides financial assistance to low-income, eligible customers through its H2O Help to Others Program™.
“Along with our efforts to provide financial assistance and flexibility to our customers, we work hard to control costs and operate efficiently,” continued Moore. “These efforts enable us to invest in our systems while keeping customer rates as low as possible, with high-quality drinking water at about a penny per gallon.”
If the company’s proposed rates are approved as requested by the IUB, the monthly water bill for a typical residential customer in its Clinton and Quad Cities districts using 4,000 gallons per month would be $42.70, an increase of $5.44 per month or about 18 cents a day.
For more information on the company’s rate review customers can contact our customer service center at 1-866-641-2108 or visit http://www.iowaamwater.com and select “Your Water Rates” under the Customer Service menu.
About Iowa American Water
Iowa American Water, a subsidiary of American Water (NYSE: AWK), is the largest investorowned water utility in the state, providing high-quality and reliable water services to approximately 216,000 people. With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,800 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to 15 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook, Instagram.
Lisa Reisen, External Affairs Manager