Iowa Utilities Board Approves New Rates for Iowa American Water
April 22, 2014 at 11:34 AM EDT
On February 28, 2014, the Iowa Utilities Board (IUB) issued its final order in Iowa American Water’s rate case that was filed on April 30, 2013. On April 18, 2014, the IUB approved the company’s rate design and set an effective date of April 18, 2014.
The need for the rate adjustment was driven primarily by significant investment made by the company to improve and replace water infrastructure. According to Randy Moore, president of Iowa American Water, the company has invested approximately $26 million in water system improvements statewide in the last two years to ensure continued high-quality water service.
“Proactive water system upgrades today save money in the long run,” Moore said. “All these investments in local water infrastructure systems enhance water quality, service reliability and fire protection for customers while keeping the cost of water service for most local households at about a penny per gallon.”
Some of the larger investments in local infrastructure include:
The need to upgrade water systems is not only an issue for Iowa American Water; it is a national issue. The American Society of Civil Engineers says that an estimated $1 trillion in capital spending will be needed across the nation over the next 25 years to replace aging water infrastructure and to comply with stricter water quality standards.
Effective April 18, 2014, the rates approved by the IUB increased the water service cost slightly above the interim rates put into effect on May 10, 2013. The average residential customer using 4,200 gallons per month will pay about $0.03 cents more per day or $0.95 more per month bringing their average monthly water bill to $35.19.
“As a utility whose services are critical to ensuring public health, we take our responsibility to provide quality drinking water seriously, and as such, are committed to keeping our systems and facilities well maintained and services,” added Moore. “Even with this increase in rates, water service remains a good value for our customers at about a penny a gallon.”
Customers can contact American Water's call center toll free at 1-866-641-2108 with additional questions.
Additional information can be found on the Iowa Utilities Board’s website at www.state.ia.us/iub/.
Iowa American Water, a subsidiary of American Water Works Company, Inc. (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water services to approximately 200,000 people. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,600 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 14 million people in more than 40 states and parts of Canada. More information can be found by visiting www.amwater.com.