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Iowa American Water customers to see rate increase beginning May 9

The Iowa American Water has filed an application with the Iowa Utilities Board to increase residential rates by approximately $5.10 per month.

QUAD CITIES — The Iowa American Water has filed an application with the Iowa Utilities Board to increase residential rates by approximately $5.10 per month. The company says the average residential water bill for Clinton and Quad City customers would rise from $33.26 to $38.36, about a 15 percent increase. Their last rate increase was in 2013.

Business customers will see a $30 increase per month, a 22 percent rate increase.

Since the Board can take as long as 10 months to reach a decision, the final rates may not take effect until February 2017.

Because of the long wait, Iowa American Water will be applying an interim rate increase beginning May 9, for about an average of $2.33 increase per month, a 7 percent increase. If the Iowa Utilities Board does not approve the rate increase, this interim rate increase will be refunded to the customer.

The rate increase is mostly driven by the Iowa American Water's $38 million investment in water system improvements. The company says the investments "enhance water quality, service reliability and fire protection for customers..."

“Since our last rate case, Iowa American Water has continued to implement efficiencies and best practices throughout the business to reduce our operations and maintenance expenses. This has enabled us to reduce our operating expenses through December 2015 by almost 10 percent or $1.7 million," said Iowa American Water President Randy Moore.

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