Iowa American Water Asks for Rate Hike

Aug 28, 2020

The cost of water for residents of the Quad Cities and Clinton may go up next year. Friday afternoon, Iowa American Water announced a request to the Iowa Utilities Board for an overall rate increase of about 9 per cent, and for residential customers, 14 per cent.

Company spokeswoman Lisa Reisen says in the past state law required Iowa American to spend money first and then request reimbursement from customers. But then the legislature changed the rules allowing some future spending to be included.

the East River Drive water plant in Davenport
Credit Iowa American Water

"This year for the first time we're actually filing a forward-looking test year with our rate filing which means we can go back to October of 2016 and go all the way through June of 2022 with any investments and capital improvements we make in our system during that period of time."

Reisen says the rate hike request includes 87 million dollars worth of water system improvements - since the last request in 2016, and spending the company will make through 2022 - replacing and upgrading water lines, and replacing meters, valves, and hydrants. 

It also plans to build an "ultraviolet light disinfection facility" at the East River Drive plant in Davenport. The Iowa Utilities Board has up to ten months to make a decision.

Iowa American serves 53,000 customers in the Iowa Quad Cities and 10,000 in Clinton.