The Clinton Herald, Clinton, Iowa

February 4, 2014

Water rates to increase


Herald Staff Report

CLINTON — Water rates will increase again in the city of Clinton after a state board ruled Tuesday that Iowa American Water can utilize a rate increase it applied for in April.



The increase, though, isn't as large as Iowa American Water sought.



The Iowa Utilities Board ruled that Iowa American Water can increase its annual revenues approximately $1.22 million over revenue generated by temporary rates implemented in May.



The temporary rate increase in May allowed Iowa American Water to increase revenue by approximately $2.88 million. The board's decision now allows Iowa American Water to increase its revenue by approximately $3.9 million.



Iowa American Water originally asked for a revenue increase of $6.44 million.



Information regarding how the rate hike would affect individual customer's water bills will be unavailable until a final decision order is made on or before Feb. 28.



During a meeting in Clinton in June regarding the rate increase, Iowa American officials said the proposed increase of $6.44 million would have increased residential customers' bills by an average of 19.4 percent. The increase would have taken a typical bill of 4,200 gallons per month from $31.59 to $37.72.



Approximately 30 people attended the meeting in June, and those comments were reviewed prior to the board's decision on the rate hike.



Iowa American President Randy Moore in June cited the company’s need to recoup $26 million that it had spent on infrastructure improvements statewide in the past two years. This included $1.2 million for relocating more than a mile and a half of water main along Camanche Avenue, $636,000 for water mains along a number of Clinton streets and $6 million for information systems and technology.