Illinois American Water's rate case approved by commission

Following an eleven-month review, the Illinois Commerce Commission has approved new rates for Illinois American Water that will result in approximately $24.9 million in additional annual revenue for the company. The rate case was filed with the ICC on August 31, 2007. The company's last general rate increase was effective in August 2003. The new rates reflect approximately $257 million of infrastructure investments since December 2003 to enhance the company's water and wastewater systems...

• Significant infrastructure investment drives increase

BELLEVILLE, IL, July 31, 2008 -- Following an eleven-month review, the Illinois Commerce Commission (ICC) today approved new rates for Illinois American Water that will result in approximately $24.9 million in additional annual revenue for the company. The rate case was filed with the ICC on August 31, 2007. The company's last general rate increase was effective in August 2003.

The new rates reflect approximately $257 million of infrastructure investments since December 2003 to enhance the company's water and wastewater systems. The company also has experienced substantial increases in operating costs.

"Delivering high quality, reliable customer service requires continued investment in our water and wastewater systems," said Karla Olson Teasley, President of Illinois American Water. "This rate increase reflects our continued commitment to enhancing the infrastructure in all communities we serve in Illinois."

The percentage amount of the rate increase and customer impact varies by the company's operating districts in Peoria, Pekin, Lincoln, Champaign, Streator, Pontiac, Sterling, Alton, Cairo and Interurban (Belleville, East St. Louis, Granite City). Customers will receive additional information in their September water bill explaining the rate increase.

Illinois American Water, a wholly-owned subsidiary of American Water, is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to more than 1.2 million people.

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