Dear Hanna City Water Customer,
On 1/15/2025, the Village of Hanna City received a communication from Illinois American Water (IAW), the company from whom the Village purchases its water.
The communication notified us that effective January 1, 2025, the Village of Hanna City, along with all other Illinois American Customers, will see an approximate 15% price increase for the water purchased from Illinois American. The primary reason given for the increase is an approximate $557 million dollars in new investments for related infrastructure. Details from the IAW communication are below.
The Village’s goal is to charge residents/businesses a breakeven rate that covers the cost of the water purchased from Illinois American and the related costs to continue to maintain/improve the Village’s support/infrastructure, no more. As a result, increases from IAW are transferred directly to residents/businesses.
At the January 21, 2025 meeting, the Board voted and approved a new water rate ordinance which will take effect February 1, 2025, impacting the water bills customers will begin receiving in March. Here is a summary of the impact of the ordinance on the Village and its water users.
- The Village of Hanna City will absorb the increase in rates for the month of January 2025.
- Effective February 1, 2025, the water rates for the Village of Hanna City water customers will be as follows.
o For users within the corporate limits of the village,
§ The minimum fee for water service shall be $45.50 per month for the first 2,000 gallons of water consumed per month.
§ For water consumption greater than 2,000 gallons and up to 70,000 gallons per month, the water service charge shall be $14.00 per 1,000 gallons of water consumed per month; and
§ For water consumption exceeding 70,000 gallons per month, the water service charge shall be $8.50 per 1,000 gallons of water consumed per month.
o For users located outside the corporate limits of the village,
§ The minimum fee for water service shall be $77.50 per month for the first 2,000 gallons of water consumed per month; and
§ For water consumption greater than 2,000 gallons per month, the water service charge shall be $24.75 per 1,000 gallons of water consumed per month.
- The minimum monthly utility payment covering water, sewer and garbage increases by $5.96 per month going from $74.04 per month to $80.00 per month.
- The average monthly utility payment, based on approximately 3400 gallons of water used per month and covering water, sewer, and garbage, increases by $9.10 per month going from $95.40 per month to $104.50.
Even with the increase, utility rates for the Village of Hanna City remain very competitive as compared to other municipalities, however we understand an increase is still an increase.
The Village board recognizes the transfer of these new costs to residents/businesses in the form of higher rates is challenging. As a result, the board has launched a study to determine if there are other more cost-effective water sources available to better meet current and future needs.
As always, the Village Board and Staff will continue to look for ways to lower costs while enhancing the services offered to residents.
Best Regards,
Anthony “Tony” Fryxell
Village of Hanna City – Mayor
The Illinois Commerce Commission (ICC) issued an order Thursday approving new water and wastewater base rates for Illinois American Water, driven primarily by $557 million in capital investments in 2024 and 2025. The rate change request was filed on January 25, 2024.
“By making prudent, ongoing necessary investments to maintain and upgrade our water and wastewater systems, Illinois American Water is committed to the safety and reliability of our water and wastewater systems in the communities we serve,” said Rebecca Losli, Illinois American Water president.
The new rates will be effective January 1, 2025. The approved increase will result in a total annualized revenue increase of approximately $110.6 million and will support continued investment in critical water and wastewater infrastructure throughout the state, including the replacement, lining and installation of approximately 44 miles of aging water and wastewater pipelines. Investments also include upgrading water and wastewater treatment plants to maintain and meet regulatory compliance, storage tanks, wells, pumping stations, fire hydrants, meters and manholes across the state and ongoing replacement of customer lead service lines.
The rate order covers $421 million in water system infrastructure improvements and $136 million in wastewater system infrastructure improvements to be made over two years, from January 2024 to December 2025.
The amount of the rate change customers will experience will vary among the company’s operating districts.