Iowa American Water is asking the state for permission to raise your water rates by nearly 20 percent starting May 29, 2013.
The utility says the proposed rate hike will raise its revenue more than $6.4 million, or about 18 percent.
They say the average residential customer who pays $31.59 per month will see their bill go up more than 19% to $37.72 per month. The actual increase amount would depend on the type and extent of water usage.
If the Iowa Utilities Board chooses to investigate the rate hike request before possible approval, Iowa American Water plans to put an interim rate increase into effect May 10, 2013. That increase would raise residential customers’ bills 8.39%, increasing the average $31.59 monthly rate to $34.24. The interim increase would be subject to a refund at the discretion of the state utility board.
In a letter to customers, Iowa American Water President Randy Moore said, “We know there is never a good time to ask for an increase, but Iowa-American Water has the responsibility to properly maintain and upgrade our systems to provide quality, reliable service and fire protection to the communities we serve 24 hours a day, every day.”
Iowa American Water mailed letters to its customers explaining the proposed rate increase. To read that letter, click here.