BELLEVILLE — Illinois American Water Co. says it will return millions of dollars in federal tax savings to its users in the next 11 months.
The Federal Tax Cuts and Jobs Act decreased the corporate tax rate from 35 percent to 21 percent. On April 19, 2018, the Illinois Commerce Commission approved an order for Illinois utilities to pass savings from the national tax reform on to customers.
Illinois American Water is returning about $10.8 million to customers over the next 11 months. Customers will see a credit on their May 2018 bill continuing through March 2019. After this initial 11-month timeframe, the credit amount will be reconciled and adjusted appropriately. The new credit amount will be communicated at that time.
According to Illinois American Water President Bruce Hauk, the credit to bills is a benefit provided through the financial model of a regulated investor-owned utility.
“We are pleased to be able to share this savings with our customers. In addition to this savings, our team works hard every day to control operational and maintenance costs so we can invest in our critical infrastructure and minimize impact to customer bills,” said Hauk (shown).
Depending on service area, water service customers will see a credit on their bill for between about $1.39 a month to $2.35 a month. Wastewater service customers will see a credit on their bill between about $1.20 a month to $3.90 a month. These calculations are based on the typical customer who has a 5/8 inch water meter and uses about 4,500 gallons of water a month.
A bill message on customer bills will highlight the credit. Recently acquired systems which have not yet joined an Illinois American Water tariff zone are not eligible for the credit. This includes Grafton wastewater, Farmington water and Fisher wastewater customers. Fisher water service will have a related credit.
Illinois American Water, a subsidiary of American Water, is the largest investor-owned water utility in the state, providing water and/or wastewater services to approximately 1.3 million people. American Water also operates a customer service center in Alton and a quality control and research laboratory in Belleville.