Perfect example

You may remember I mentioned I expect the icc to modify the rate request by AQUA but to allow an increase. Today in research I came across this document that substantiates to a degree what I expect to happen in the ruling. Ken Dillenburg

Dec. 15, 2010

ICC Approves New Water/Sewer Rates for Galena Territory Utilities

The Illinois Commerce Commission (ICC) Wednesday approved new water and sewer rates for Galena Territory Utilities, Inc. in Jo Daviess County. The Commission’s decision reduced the company’s request for additional revenue by 38 percent.

The company filed a request with the ICC in March seeking authorization to increase rates in order to generate $444,057 in additional annual revenue from water customers and $69,970 in additional revenue from sewer customers. The ICC approved new rates designed to produce $289,057 in new revenue from water customers and $27,637 from wastewater customers
Reductions or adjustments to the company’s proposal were made in accumulated depreciation, accumulated deferred income taxes, working capital and rate case expenses. The Commission approved increases in the reconnection fee from $7 to $37.50, new service charge from $12 to $25 and non-sufficient funds charge from $5 to $25. New rates are expected to take effect by the end of December.

The increase in rates is the first since the company’s last rate case in 1987.

The Commission approved a new overall rate of return of 7.79 for both the water and wastewater parts of the business which reflect a return on common equity of 9.82 percent.The parties to this case entered into a stipulated agreement whereby all were in full agreement with the final order.
Galena Territory is a subsidiary of Utilities Inc. and provides water service to 2,200 customers and wastewater service to 800 customers near Galena.