Final Order Issued by the Iowa Utilities Board in Iowa American Water’s Rate Review | Business

By On Jul 6, 2021

DAVENPORT, Iowa – (BUSINESS WIRE) – Dec. July 2021–

After a 10-month review, the Iowa Utilities Board (IUB) issued an order on June 28 to approve a tariff adjustment for Iowa American Water. The company’s nearly $ 87 million investment in improving the water system is the main reason behind calling for tariff adjustment.

Company officials say the additional revenue will help Iowa American Water continue to proactively invest in its water infrastructure across the state. Iowa American Water last received a rate change order from the IUB four years ago in 2017.

“By continuously improving our water systems, we are helping to reduce the frequency of business interruptions, avoid property damage from broken water pipes and improve fire protection. We carefully plan and invest in our water systems to provide safe, clean, and reliable service to approximately 213,000 residents in eight eastern Iowa communities, ”said Randy Moore, president of Iowa American Water. “These investments are key to our commitment to providing exceptional service and reliability, both now and for future generations.”

The need to modernize water systems is a national matter. The EPA’s 2015 Drinking Water Needs Analysis reported to Congress that Iowa’s drinking water systems have an estimated capital need of more than $ 7.8 billion over the next 20 years, with the majority needed for the small and medium-sized systems that dominate the state.

The investments included in the tariff review included replacing aging water pipes and upgrading sewage treatment plants, storage tanks, wells and pumping stations across the state.

Iowa American Water rates are based on the cost of providing water services that have been reviewed and approved by the IUB. The next step in this process is for Iowa American Water to create and submit a final draft tariff and tariff for approval by the IUB that matches the terms in the order and the allowable increase between the company’s various customer classifications. The new tariffs will come into effect as soon as the IUB has approved the company’s tariff structure.

“The residents and businesses in our service communities rely on us to provide a safe and reliable water supply for quality of life, economic development and fire safety,” added Moore. “With over 900 miles of waterline available to our customers, we need to continue these proactive investments to maintain and improve service.”

In addition, Iowa American Water continues to respond to financial hardships the COVID-19 pandemic caused some of its customers. The company continues to offer payment arrangements and budget statements to customers who need help. The company also provides financial assistance to eligible low-income customers through its H2O Help to Others Program ™.

“As a utility company whose services are vital to public health, we take our responsibility to provide high quality drinking water seriously and are committed to maintaining our systems and facilities well,” added Moore. “Even with this price increase, the water service remains a good value for our customers at around one cent per gallon.”

In its final installment order, the IUB approved an overall increase in additional annual base revenue of $ 2.3 million. The company filed its original tariff review application with the IUB in August 2020 for a total annual revenue increase of approximately $ 3.9 million.

Customers can contact the company’s Customer Service Center at 1-866-641-2108 with additional questions. For more information, see the Iowa Utilities Board website at www.state.ia.us/iub/.

About Iowa American Water

Iowa American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water company in the state, providing quality, reliable water services to approximately 213,000 people. With a history dating back to 1886, American Water is the largest and most geographically diverse publicly traded US water and wastewater company. The company employs more than 7,000 dedicated professionals who provide regulated and market-based drinking water, wastewater, and other related services to more than 15 million people in 46 states. American Water provides safe, clean, affordable, and reliable water services to our customers to ensure we keep their lives going. For more information, please visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.

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KEYWORD: UNITED STATES NORTH AMERICA IOWA

INDUSTRY KEYWORD: UTILITIES ENERGY

SOURCE: Iowa Utilities Board

PUB: 07.06.2021 07:00 / DISC: 07.06.2021 07: 0202

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