Large turnout criticizes proposed water rate hikes

Want to draw a big crowd in Homer Glen? Suggest raising water rates.

More than 350 people showed up on Oct. 19 at a public hearing at Homer Junior High School on Illinois American Water's controversial rate plan.

The utility -- which provides Lake Michigan water to nearly 10,000 customers in Homer Glen, Orland Hills and Lockport and a few hundred in some nearby areas -- is asking for a 30 percent increase in water rates and a 50 percent boost in sewer rates across its Chicago-area customer base.

Illinois American officials say they need to raise rates to repair and expand infrastructure across the state, as well as cover rising employee-benefit costs and other operating expenses.

"Many people take for granted what goes into making sure there's quality water in the tap," Kevin Hillen, Illinois American's Chicago Metro operations manager, said at the hearing.

But local and state officials are skeptical, pointing to the significantly lower rates in surrounding towns that use a municipal water system.

Homer Glen's water rates are already double the average of those in Mokena, New Lenox, Tinley Park and Orland Park and would be nearly triple the average if the increases are approved, according to a spreadsheet passed out by Homer Glen officials.

Hillen countered that municipal systems often have subsidies that allow them to charge lower rates, so it's unrealistic to compare them to Illinois American.

But the spreadsheet also compared Illinois American and Aqua Illinois, a private water utility in the Kankakee area, and found that Illinois American's rates are 76 percent higher than Aqua's without the proposed rate increase.

"Even compared with a private water company, (the rates are) still exorbitant," said Aaron Fundich, a member of Homer Glen's sewer and water task force.

Those costs are poised to crush home sales and business expansion in the village, according to Homer Glen Trustee Mary Niemiec.

"I spoke with a commercial real estate agent -- who said (higher rates) would be a disaster," she said. "How are we supposed to grow?"

Speakers also railed against what they view as the utility's shoddy customer service, backbilling for lost water and unfair charges for fire protection.

"You get an F," Homer Glen resident Kevin Owen told Illinois American representatives at the hearing. "You didn't do what you said you would do (when Illinois American took over water service several years ago)."

The Illinois Commerce Commission, which has the final say on Illinois American's request, is expected to make its decision next spring. Several speakers questioned the allegiance of the ICC, which granted Illinois American's last rate request in 2008 over strong protest from residents and officials.