Consumer Information Energy Telecommunications
Elizabeth S. Jacobs
Chair
Nick Wagner
Board Member
Sheila K. Tipton
Board Member

RPU-2009-0004: Iowa-American Water Company's Request for a Water Rate Increase

On October 8, 2009, the IUB issued an order accepting a settlement agreement (Settlement) proposed by Iowa-American Water Company (Iowa-American) and the Office of Consumer Advocate (Consumer Advocate). The Settlement resolves all revenue issues in the case. The Settlement allows Iowa-American to increase its General Service rates by approximately 26.6 percent in the Quad Cities District and by approximately 21.9 percent in the Clinton District. In its order approving the Settlement the IUB required Iowa-American to equalize the two District’s rates. The effect of equalizing rates will be that the two Districts General Service Customers will no longer be charged different rates for the same service. Rates other than General Service rates will remain as filed for temporary rates.

News release
Order Approving Settlement and Requiring Filings

Background information

On April 30, 2009, Iowa-American Water Company filed a proposal to increase its water rates.  Iowa-American is requesting a permanent rate change to increase its annual revenues by approximately $9.4 million (34.8 percent).  Iowa-American seeks to implement a portion of this proposed rate change with a temporary rate increase of approximately $7.9 million (29.19 percent) while the final decision in this case is pending.  A decision on temporary rates is expected by July 29, 2009. A final decision in this rate case is anticipated by March 1, 2010. If the final rate approval is less than the temporary rates established, the over-collection is subject to refund plus interest.

Iowa-American provides service to customers in two districts, its Quad Cities and Clinton Districts. Two customer comment meetings were held in early June:

  • Clinton:  Thursday, June 4, 2009, 5:30 p.m. - Clinton Community College Technology Center, Room 10, 1951 Manufacturing Drive
  • Bettendorf:  Thursday, June 11, 2009, 5:30 p.m. - Scott Community College Student Life Center, Room 2300, 500 Belmont Road

All verbal comments provided at customer comment meetings become part of the permanent file for the rate case. 

On July 27, 2009, the Board issued an order allowing Iowa-American Water Company (Iowa-American) an estimated 26 percent temporary rate increase while the Iowa Utilities Board (IUB) continues to consider permanent rates in this case. Iowa-American could generate about $7.14 million in additional annual revenue from the temporary rates approved by the IUB, which is about three-quarters of $1 million less than it had requested. In addition, the IUB adjusted the allocation of certain costs for temporary rates between the utility’s Clinton and Quad Cities service districts to temporarily raise overall rates by approximately 26 percent in both service districts.