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STATEMENT FROM CUB, AARP ILLINOIS: ILLINOIS COMMERCE COMMISSION OKs $110 MILLION ILLINOIS AMERICAN WATER RATE HIKE

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STATEMENT FROM CUB, AARP ILLINOIS: ILLINOIS COMMERCE COMMISSION OKs 0 MILLION ILLINOIS AMERICAN WATER RATE HIKE


CHICAGO, Dec. 6, 2024 /PRNewswire/ — “While we are relieved Illinois American Water did not get the rate hike it wanted, we are disappointed that the company still received a significant increase: $110 million. The ICC’s ruling today gives new urgency to CUB’s push to reform a water privatization law that Illinois American Water successfully lobbied for, and now uses to plunder its customers. Illinois American Water has now received $195 million in rate hikes in just two years, and they’ve indicated on earnings calls that they expect the rate hikes to continue. CUB thanks all the Illinois American customers who have spoken out against escalating water bills, and we join them and all private water customers across the state in urging the General Assembly to take action. It’s time for legislators to listen to their pleas.” – said Sarah Moskowitz, Citizens Utility Board (CUB) Executive Director

Citizens Utility Board Logo (PRNewsfoto/Citizens Utility Board)

“The ICC’s decision to cut Illinois American Water’s request by 30 percent is a step in the right direction for utility customers, especially older adults on fixed incomes, who raised their voices all year about how these increases would directly impact their quality of life – from their ability to buy groceries, pay for prescriptions or save for retirement. We commend the ICC for listening to these concerns at AARP-requested hearings, and we’re happy to see them reflected in today’s decision.” -said Philippe Largent, State Director of AARP Illinois.

Background:

  • On Thursday, Dec. 5, the Illinois Commerce Commission (ICC) approved a $110 million rate hike for Illinois American Water, about 28 percent less than what the company had originally requested.

  • In today’s ruling, the utility was granted a 9.84 percent Return on Equity (ROE), or profit rate for shareholders. During the case, the company had asked to increase its current ROE of 9.78 percent to 10.75 percent, while CUB had recommended an ROE of 9.34 percent.

  • Also under today’s ruling, starting July 1, 2025, Illinois American will expand its existing low-income discount program to provide a 10 to 80 percent monthly total bill credit for customers whose incomes are up to 300 percent of the federal poverty level. Eligible customers should sign up directly through Illinois American Water.

  • In January, Illinois American, the largest investor-owned water and wastewater utility in Illinois, serving about 1.3 million residents in 148 communities, filed a $152 million rate-hike request (ICC Docket 24-0097). In May, CUB partnered with the Village of Bolingbrook and the Illinois Industrial Water Consumers to challenge the proposed rate hike.

  • With this increase, Illinois American has won $230 million in rate hikes in less than a decade–$110 million in 2024, $85 million in 2022 and $35 million in 2016. The utility’s parent company, American Water, has made $1.8 billion in profits over two years—$820 million in 2022, $944 million in 2023.

  • For years, Illinois American customers have contacted CUB to complain about excessive water bills, connected to favorable legislation water companies have pushed in past years. Under state law:

  • Illinois American still charges a “Qualifying Infrastructure Plant” fee on bills, for a controversial program that the legislature allowed to expire for gas utilities.

  • Illinois American and Aqua Illinois–the state’s two biggest private water utilities–can buy up water and wastewater systems across the state and charge their customers to cover 100 percent of the acquisition costs. CUB Water Tracker, CUB’s special online center monitoring the problem, found that these for-profit companies have purchased 56 systems since 2013, when state legislators passed a law that allows these water utilities to pass acquisition costs—$402 million and counting—onto their customers.

  • These policies have had a devastating impact on Illinois American customers. In ICC forums AARP Illinois requested, customers complained about high bills. During a packed forum in Bolingbrook, one senior said she’s so worried about her water bills that “we only bathe or shower twice a week now.”

  • In January, Illinois American estimated its proposed rate hike would increase average residential monthly water bills by about $24 per month, and the average wastewater bill by about $3 to $5 per month. It is not immediately known how the smaller rate hike the ICC granted Illinois American in Thursday’s Final Order would impact bills.

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Illinois

Bears stadium deal should not include lawmaker perks or raise property taxes

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Bears stadium deal should not include lawmaker perks or raise property taxes



Publicly funded stadium deals can involve questionable incentives for politicians. The megaprojects bill in Illinois would drive up neighbors’ property taxes.

Any deal between Illinois and the Chicago Bears for a new stadium must avoid giveaways to lawmakers and property tax increases for others.

The Bears own the former Arlington Park Racecourse in Arlington Heights and have said they’re also considering Northwest Indiana for a stadium development. A bill in the Illinois General Assembly would offer property tax breaks to such “megaprojects.”

Agreements for publicly funded stadiums in other cities often have included luxury suites and free tickets for lawmakers. Local officials in Kansas City have been criticized for getting access to tickets and suites during ongoing stadium negotiations. Officials in Arizona have repeatedly used free access to publicly funded stadiums to host guests.

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A bill in Ohio would prohibit state lawmakers from knowingly accepting free or discounted tickets to pro sports events. The proposal comes amid negotiations with the Cleveland Browns over public funding for a new stadium.

Offering free admission and luxury suites to lawmakers who make decisions about publicly funding stadiums creates a clear conflict of interest.

From a taxpayer perspective, such perks can divert public resources if lawmakers have an incentive to offer a team or other megaproject a tax break when that revenue could go toward broadly shared public benefits. From a free-market standpoint, these arrangements distort competition by subsidizing select teams and projects rather than encouraging municipalities to make themselves attractive for private investment.

Illinois legislators should ensure that any stadium agreement with the Bears does not include free tickets or luxury accommodations for lawmakers.

Perks for politicians are only half the story. The proposed incentive package in Springfield, HB 910 House Amendment 1, would be devastating for taxpayers.

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Much of the current discussion revolves around the massive property tax reductions the bill would provide for so-called megaprojects as an attempt to spur economic development.

While negotiating targeted tax incentives is bad policy to begin with, the legislation would make Illinois’ property tax crisis even worse for other taxpayers. Although approved megaprojects would pay steeply discounted property taxes, a clause in the bill allows a taxing body to count the cash value of the megaproject in its total assessed value.

In other words, taxing bodies can still increase taxes as if the project were paying normal tax rates, generating increased revenue, but the project would not pay those higher taxes. Neighboring businesses, homeowners and renters would pay more to make up for the team’s discount.

Here is some of what’s in the bill, which has passed out of committee and could be called for a full House vote any time:

  • To qualify, a project must have at least $500 million in eligible costs, which can include the property purchase and can be retroactive up to five years before the megaproject certificate is issued. The project must be completed within seven to 10 years, but that can be extended by five years. The site must be operated for at least 20 years; the tax incentive would last at least 23 years and up to 40 years.
  • The megaproject’s assessment would be frozen so that its property tax bill is calculated on the “base year” of the project, meaning the value of the property before any improvements, such as a stadium.
  • However, for purposes of issuing bonds and property tax extension limitation calculations, the taxing body could use the current fair cash value of the property. In other words, new development, which is generally exempt from Property Tax Extension Limitation Laws, would allow for the levy to grow beyond the limited rate, which other taxpayers will have to cover.

The bill’s “incentive agreement” allows for separate payments from the megaproject entity, such as the Bears, or an alternative source, to affected taxing bodies in addition to property taxes bill. The payment amount would be negotiated with taxing bodies.

Illinoisans already pay the highest property taxes in the nation. Homeowners in Arlington Heights pay average annual property taxes of more than $8,000. HB910 would make it even worse. One simple solution is to strike this language from the bill:

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Projects to be valued at fair cash value for purposes of bonded indebtedness and limitations on property tax extensions. Projects to which an assessment freeze applies pursuant to this Division shall be valued at their fair cash value for purposes of calculating a municipality’s general obligation bond limits and a taxing district’s limitation on tax extensions.

Removing that language would ensure that businesses, homeowners and renters in the megaproject area would not face higher property taxes because of an incentive agreement.





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Obituary for Tessie Lee Woods at Carl E. Ponds Funeral Home Inc.

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Obituary for Tessie Lee Woods at Carl E. Ponds Funeral Home Inc.


Tessie Lee Woods, age 91, departed this earths life surrounded by her loved ones. She was Born on October 25, 1934, in Arkansas to the late Connie and Deanner Holliman. Tessie attended school in Arkansas and, later in life, moved to Rockford, Illinois, where she met and married Robert B.



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CASNews faculty spotlight: Dr. Eric Godoy

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CASNews faculty spotlight: Dr. Eric Godoy


Name: Eric Godoy
Title: Associate Professor
Unit: Department of Philosophy
Years at Illinois State: 8 1/2 years

Tell us about your teaching and research in the College of Arts and Sciences.

“Renewable energy alone won’t make our energy systems more just. The production, distribution, and consumption of energy are connected to many ethical issues. For example, even renewable energy projects can pollute environments or displace people. My recent research examines these ethical challenges and asks what a just transition might look like. I’ve also published work on climate ethics, trophy hunting lions, urban park design, interdisciplinary research, and dinosaur films. My most popular course is PHI 236: Values and the Environment, but I also teach many topics in moral, social-political, and environmental philosophy. I’m also a proud affiliate of the Women’s, Gender, and Sexuality Studies Program (WGSS).”

What are your proudest accomplishments during your time at Illinois State?

“I was awarded an American Council of Learned Societies’ fellowship for my work on energy democracy this year. I was nominated by our university for a Carnegie Fellowship in 2024. I was also very honored to receive a College of Arts and Sciences (CAS) Excellence Award for Outstanding Teaching in 2021. But I’m always the proudest when I hear about the success of my former students. I love getting emails about their new careers or their graduate studies in all kinds of fields: law, environmental work, and, of course, philosophy.”

What’s your favorite thing about Illinois State or the College of Arts and Sciences?

“I do my best research in conversation with students and colleagues in different fields. Our students and faculty are so talented. They’re often working on amazing projects. I learn so much from them. They encourage me to explore new research questions I wouldn’t have thought of on my own. Environmental problems are inherently interdisciplinary. I’m very grateful that CAS supports interdisciplinary work and programs, such as WGSS, Environmental Systems Science and Sustainability, and Civic Engagement. Philosophy lends itself so well to interdisciplinary relationships since there are philosophical questions at the heart of every field.”

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Department of Philosophy Chair Christopher Horvath on Godoy:

“Dr. Eric Godoy is an innovative, student‑centered educator whose inclusive and interdisciplinary pedagogy consistently elevates the department’s instructional standards. He is deeply committed to creating learning environments that empower students from diverse backgrounds to engage meaningfully with complex philosophical issues. His leadership in curriculum development has made him one of the department’s most forward‑thinking educators. Complementing his teaching excellence, his research provides practical, ethically grounded solutions to energy‑policy conflicts and will shape national conversations about democratic participation in a just transition away from fossil fuels.”

Read more stories from the College of Arts and Sciences at News.IllinoisState.edu/Unit/College-Arts-Sciences and follow the college on Facebook and Instagram.





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