The Iowa Utilities Board held a public meeting on an Iowa American Water rate increase Tuesday, February 4th, 2014.
Iowa American Water made an interim rate increase back in May of 2013. That increased the company's revenue by about $2.68 million. Currently, the average home owner is paying about $34.24 for their monthly water bill. Iowa American Water wants to increase the average monthly bill to about $38 a month now. That would be about a 10 percent increase from where the residential rates are currently.
Tuesday, the board "determined that Iowa-American Water Company’s annual revenues could increase approximately $1.22 million" from that previous $2.68 million amount, according to a spokesman for the Iowa Utilities Board. That means, the average home owner could see increases in their water bill, but it likely won't go up to that $38 level that Iowa American Water had hoped for. Tuesday's decision will not become final until late February though.
A company spokeswoman says Iowa American Water needs the increase in order to help pay for some of its recent projects. The company recently invested $3.4 million in a flood wall near their new water station off River Drive in Davenport.