ICC UPHOLDS HOMER GLEN WATER COMPLAINTS

The Illinois Commerce Commission [ICC] has issued its final order in the Homer Glen complaint case against Illinois American Water Company [IAW].  The most significant finding is that the rates charged to Homer Glen residents “are disproportionately high relative to the rates charged in other nearby communities”, resulting in an order for Illinois American Water to file a new rate case within six months.  If Illinois American Water Company does not comply, then the ICC will reopen the Company’s 2002 rate case “to determine if the current rates in the Chicago Metro Service Area are just and reasonable.”

Traditionally, the ICC sets rates based on the utility’s cost of service with no rate comparison in other communities, making this a significant win for Homer Glen.

Included in the complaint case were the issues of high and spiking water bills, the treatment of residents by IAW’s billing department and the inspection of the critical valves and fire hydrants throughout Homer Glen.

In the final order the commission found the following violations of ICC rules and regulations:

• IAW failed to inspect critical valves in Homer Glen
• IAW failed to inspect, or even have any records concerning the fire hydrants in Homer Glen
• IAW back billed customers for usage beyond a one-year period
• IAW failed to provide Homer Glen customers with a consumer information booklet
• IAW failed to inform Homer Glen customers who disputed bills that they had a right to a hearing
• IAW failed to have personnel on duty authorized to act on behalf of the utility to resolve complaints during business hours
• IAW threatened and harassed its customers in Homer Glen (“An IAWC customer received a threat of service cutoff after a complaint was filed with the Commission.  This is a clear violation of Commission rules...Threatening a service termination while a dispute is pending is inappropriate behavior.”)

The final order from the Illinois Commerce Commission requires IAW to inspect and repair the critical valves and fire hydrants, file a written report to the ICC to post on the ICC website and the ICC will require IAW to develop and conduct a new training program for all of IAW’s representatives who interact with customers that will “clearly identify inappropriate and prohibited threatening actions.”

A motion for a rehearing is required if either party wants to appeal the order to the appellate court.  These must be filed within 30 days of the final order.