Anyone filing an objection to the proposed increase needs to realize simply saying it is not affordable will not be a factor in the final decision. Remember those at the ICC are political appointees and our state did not hesitate to increase your income tax by 66% this year. Objections must have what are considered reasonable grounds.
I have read the request and a couple thoughts jumped out at me that could possibly be used as points of contention. AQUA is basing their request to a great extent on the expenditures of about $2,856 per customer since the last rate increase. Although that may be correct the actual cost to the company is substantially less due to the recoup of 35% or so through the amortization of the expense when filing their taxes.
The other point is the way they are structuring the increase will benefit AQUA more going forward as Candlewick builds out as the economy improves. Changing the structure will put more cost on the backs of the home owners and less on the vacant lots. As each new home is built it will fall into the new usage cost plan and the monthly bill will go substantially higher. The existing homes will not see a decrease but AQUA will have additional revenues. It may be an overall 6% increase at this point but it is being distributed differently to the future benefit of AQUA, making it an automatic revenue enhancer for them as time passes. The redistribution should be disallowed.
Do I expect them to get a rate increase? Yes I do. I would expect, as is normally the case, the increase will be less than the request making it appear the ICC has listened to those being effected but in fact the request was for more than AQUA expects to win. That is the game. What we need to do is hammer the idea of changing the redistribution plan as a hidden future benefit as well as pointing out the decreased actual expenditure cost.
These are strictly my opinions. Please see the contacts below for your objections if you choose to do so. The proposed rate increase is also planned as an item on the next board meeting agenda for discussion.
Ken DillenburgComing here tomorrow……..AQUA’s earnings
Contacts…….
AQUA..Paul Wright…847-487-7341
ICC email …. consumers@icc.illinois.gov
ICC phone 800-524-0795