Connect with us

Business

Illinois’ largest privately owned water utilities seek rate hike amid lawmaker scrutiny

Published

on

[ad_1]


The two largest privately owned water utilities in Illinois are seeking to raise rates for a combined 1.5 million customers around the state.Illinois American Water, which serves 1.3 million people, is seeking a $152.4 million rate increase. That corresponds to a $24 per month increase in water service bills and $5 per month increase in wastewater service for the average residential customer.Aqua Illinois, which serves 273,000 people, is seeking a $19.2 million increase. That would bring with it $29.91 in bill increases, according to the Citizens Utility Board, a consumer advocacy group.The requests must be reviewed by the Illinois Commerce Commission before the utilities are allowed to modify their rates. The ICC will then likely modify the requests to comply with state law, and it will respond to arguments presented by entities such as the Illinois attorney general, local municipalities and advocacy organization.Decisions in the cases are expected by the end of the year, with water rates going into effect around the start of 2025.To collect public input in the two cases, the ICC set up a series of five hearings around the state. While the first in Jerseyville was held on June 26, the rest are scheduled over the next two weeks.Two hearings in the Illinois American Water case are scheduled for July 22 at the Levy Center in Bolingbrook and for July 23 at the Champaign Public Library in Champaign.Two hearings on the Aqua Illinois case are scheduled for July 29 at McHenry County College in Crystal Lake and for Aug. 1 at Olivet Nazarene University in Bourbonnais.All four hearings begin at 7 p.m. and run for either 2 or 2 ½ hours.AARP Illinois, which advocates for Illinoisans age 55 and older, requested the hearings to give customers a chance to have “face-to-face” time with the administrative judge who is overseeing the case, according to Jeff Scott, an associate state director at AARP.While his organization is not planning on formally testifying in the cases, it has been circulating petitions and conducting an education campaign with the goal of lowering the requested increases to fixed charges.AARP said Illinois American’s request would increase the fixed monthly meter charges, which customers must pay no matter how much water they use, from $17.98 to $26.12. Aqua’s request would increase fixed charges for most customers from $19.47 to $21.95.Scott said recent decisions to dramatically reduce requested rate increases from natural gas and electric utilities suggests they could do the same for water companies.“We’re absolutely optimistic that we have an ICC whose members are thinking about the customers who have to pay these bills,” Scott told Capitol News Illinois.

Andrew Adams

/

Capitol News Illinois Rep. Dagmara Avelar, D-Romeoville, speaks at a news conference in Bolingbrook earlier this month to call on fellow lawmakers to pass legislation to make water rate hikes more difficult.

Profit rates, executive bonusesMuch like they were during the ICC proceedings for natural gas and electricity utilities last year, consumer advocates have been critical of the water utilities’ requested profit rates.CUB, a nonprofit set up by the General Assembly to advocate for utility customers, is intervening alongside the village of Bolingbrook in the Illinois American case and with the village of University Park in the Aqua case.Both towns have a history of issues with their respective water utilities. Bolingbrook was among a group of nearby municipalities that sued Illinois American as part of a yearslong battle over control of the pipeline that brings water from Lake Michigan to that area of the suburbs.University Park faced years of dangerously high lead in its water, leading the Illinois attorney general to sue the company. That case was settled in October 2023.CUB objects to both companies’ proposed “return on equity,” or profit rate. Currently Illinois American operates with a 9.78 percent profit rate and Aqua operates with a 9.6 percent profit rate. They’ve requested to raise that to 10.75 and 10.8 percent, respectively.CUB also argues that customers should not have to pay for certain bonuses to employees based on meeting financial goals that primarily benefit shareholders.“Consumers just want clean and affordable water – they shouldn’t have to cover bonuses for Illinois American executives and exorbitant profit rates for corporate shareholders,” CUB Executive Director Sarah Moskowitz said in a statement when the group filed its testimony in the Illinois American case.When asked about CUB’s criticism of its requested profit rates and executive bonus structure, a representative of Illinois American did not offer any argument to its defense.“Intervention by customers, communities and third parties like CUB, and the expression of their opinion, is a standard and expected part of the rate-making process,” the company said in a statement to Capitol News Illinois.The statement also noted the request “reinforces the company’s ongoing commitment” to upgrading infrastructure as it ages and providing reliable water service.In testimony filed June 20, Illinois American’s vice president of operations, Brian Eisenloeffel, defended its pay structure as “a reasonable and prudently incurred expense” and argued that the company can more easily retain employees and incentivize high-performance work under its current structure.Aqua faces similar criticisms for its profit rate and executive pay structure. In a statement, the company defended its request by saying the money is necessary to provide safe service.“Aqua purchased systems across Illinois, some of which required significant investment due to failing or obsolete infrastructure during the past six and a half years and has spent millions of dollars to improve the communities we serve through infrastructure enhancements,” the statement read. “Our customers have not seen an increase in rates during that time, but Aqua cannot sustain these continued investments in Illinois water infrastructure alone.”

Andrew Adams

/

Capitol News Illinois Sen. Sue Rezin, R-Morris, speaks at a news conference in Bolingbrook earlier this month to call on fellow lawmakers to pass legislation to make water rate hikes more difficult. 

Lawmakers critique companies, face long oddsIn coordination with CUB, several lawmakers spoke out against the companies earlier this month and called on their colleagues in the General Assembly to pass laws restricting how the companies can increase rates and making it harder for them to purchase publicly owned systems.Rep. Dagmara Avelar, D-Romeoville, sponsored legislation that would prohibit water companies from increasing rates without prior approval to pay for certain infrastructure projects. Lawmakers let a nearly identical program for natural gas companies lapse at the end of last year.“The rising cost of living due to inflation has made everyday costs burdensome for families, especially low- and fixed-income households,” Avelar said at a news conference earlier this month. “This utility increase makes it difficult for families to survive.”Sen. Sue Rezin, R-Morris, also sponsored legislation that was backed by CUB. Her bill would have required municipalities to hold a referendum before selling their water systems to a private utility. She said it would curb “predatory practices” that result in higher prices.Private water utilities can charge customers to make up the costs related to acquiring water systems from municipalities, contributing to increased costs for private water customers when compared to public water customers.Neither of these bills was close to passage in the General Assembly’s spring session, having failed to garner a committee hearing, something CUB’s in-house lobbyist, Bryan McDaniel, was quick to downplay.“There’s 1.5 million customers covered by (Illinois) American Water and Aqua. Because there’s over 13 million in Illinois, they don’t touch every district,” McDaniel said. “It’s a tall task to educate legislators and that’s what we’re doing.”Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to hundreds of print and broadcast outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation, along with major contributions from the Illinois Broadcasters Foundation and Southern Illinois Editorial Association.

[ad_2]

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Laclede’s Landing is moving from nightlife hub to neighborhood

Published

on

[ad_1]


Laclede’s Landing has cycled through many identities throughout the history of St. Louis. Now, some people involved with its redevelopment in recent years hope the landing’s next one will be as a residential neighborhood.The small district tucked directly north of the Gateway Arch National Park has quietly undergone a massive redevelopment with more than $75 million pouring into the rehabilitation of many of the historic buildings at the landing.“We are starting to feel that momentum, especially in the last really 60 days. Things have drastically changed around here,” said Ryan Koppy, broker and owner of Trading Post Properties and the director of commercial property for Advantes Group.Advantes alone shouldered the rehabilitation of six of the historic buildings, which now sport a mix of apartments and retail or office space, he said. Four of those buildings are completed, and of the 119 apartments available, about 90% are filled, Koppy said.“It just shows you what kind of demand we do have for the area,” he said. “We’re separated from downtown a little bit, and for the tenants, their local park where they’re walking their dogs, it’s a national park.”

Sophie Proe

/

St. Louis Public RadioInterior of the Peper Lofts at Laclede’s Landing on Aug. 16

Another 40 apartments are set to come online next year along with some retail space, Koppy said. He added he’s noticed a wide range of people who are considering and moving into the newly refinished apartments.“It’s very mixed, surprisingly,” Koppy said. “We have a lot of young professionals, maybe on their second job out of [university], we have some empty nesters too.”Part of the newfound momentum comes from a new market, the Cobblestone, and coffee shop, Brew Tulum, opening recently and bringing more foot traffic to the area, said Brandyn Jones, executive director of the Laclede Landing Neighborhood Association. She added that more apartments are set to come online within the next few months.“We have a great riverfront area here and so there are plans in the works to activate those spaces, bring people in,” she said.That could be more daytime events, like a farmers market, music festivals (one of which is happening this weekend) or just bringing in food trucks to Katherine Ward Burg Garden, Jones said. It’s a departure from the identity the district held a few decades ago as a hub for nightlife and entertainment.“That’s part of what connects so many people to Laclede’s Landing,” Jones said. “It’s important to tell the story of where we’re evolving. It won’t be what it was in the same exact way, but it will still be fun, and it can be fun early morning, midday or late night.”It’s a view shared by Koppy.“It’s grown up, it’s a bit mature,” he said. “We’re not going to have 3 a.m. bars here anymore because we have residents here.”Koppy added that Advantes is joined by other developers working to rehabilitate buildings in the district.“We all work in unison,” he said. “If I get a call and [a client is] asking for something and maybe the square foot doesn’t really match up with what I have available, but I know it matches up over there, they’re getting a very warm welcome and introduction.”

Sophie Proe

/

St. Louis Public RadioRyan Koppy looks out the window of Brew Tulum Specialty Coffee Experience on Aug. 16 at the Cobblestone on Laclede’s Landing in downtown St. Louis.

This push toward making Laclede’s Landing a residential neighborhood also comes alongside broader conversations about the future of downtown St. Louis more generally as it looks to move away from a dependence on office space. While the city as a whole continues to lose population, downtown added about 1,700 people between 2010 and 2020, according to U.S. Census data.“It’s been wonderful timing to have all that going on, that stress that you’re not just in downtown to work has been critical to part of this rejuvenation and energy down here,” Jones said. “Sometimes people forget Laclede’s Landing is part of downtown, really the original downtown.”And success in the small district could spread beyond its small confines and potentially serve as a model for success, Koppy added.“My idea is, if we could get all the great things of St. Louis coming in through here, we can eventually spread that,” he said. “We understand we can’t change the whole world, but we’ll just make the effort to try and change the world around us.”

[ad_2]

Source link

Continue Reading

Business

St. Louis barbecue festival Q in the Lou canceled

Published

on

[ad_1]


The largest barbecue competition and tasting festival in St. Louis, Q in the Lou, has been canceled. The event was planned for Sept. 6-8, but organizers decided to cancel it due to poor ticket sales and insufficient corporate sponsorship.The traveling festival had low attendance in Denver last week, said Sean Hadley, a festival organizer.“We made the tough decision to cancel Q in the Lou,” said Hadley. “We’re seeing a lack of support … it’s just not there.”The traveling event first came to St. Louis in 2015 and drew hundreds of people to downtown St. Louis for barbecue, live music and a “major party.”“It shut down out of the blue … I’ve gone every year,” said Scott Thomas, local chef and food blogger. “It’s brilliant. You could take a tour of some really amazing barbecue restaurants and competition barbecue guys all in one place.”In a late July news conference, city officials touted Q in the Lou as a significant tourism draw and a boost for downtown revitalization.“Bringing a signature national festival back to downtown St. Louis … is making us stronger,” Greater St. Louis Inc. CEO Jason Hall said then.Less than a month later, ticket holders from every festival stop learned they’d be refunded. On Monday, organizers privatized the Q in the Lou website and deleted its social media accounts.Conner Kerrigan, a spokesperson for Mayor Tishaura Jones’ office, said city officials are disappointed the festival won’t be back this year.“St. Louis knows how to throw a festival … bringing people together to celebrate our culture is one of the things we do best as a city,” Kerrigan said in a statement. “Should Q in the Lou try to come back next year or any year after that, they’ll have the support of the Mayor Jones administration.”

[ad_2]

Source link

Continue Reading

Business

Alton’s Jacoby Arts Center likely to relocate permanently

Published

on

[ad_1]


The Jacoby Arts Center, a staple of Alton for many in the Metro East community, will likely permanently move out of its downtown building at the end of September.Its departure and relocation from the historic building that the arts center has called home for the past 20 years has created a tense situation for not only the arts center’s supporters but also the local development company working to revitalize Alton’s downtown that owns the building.“It’s an unfortunate situation,” said Chad Brigham, the chief legal and administrative officer with AltonWorks, the real estate company owned by another prominent local attorney working to develop the town. “I wish there wasn’t misunderstanding and disappointment in the community. It’s difficult sometimes to clarify that.”When news of the likely departure spread in June via a letter from the Jacoby Arts Center to its supporters, an outcry on social media quickly followed. Some assumed it would be the end of the arts center.“There’s a lot of feelings right now that I think are more about the building itself than there are about the Jacoby Arts Center,” said Valerie Hoven, vice president and treasurer of the nonprofit arts center’s board.For supporters of the Jacoby, moving from the building and likely never returning will be a sad affair. Exactly what’s next for the arts center remains unclear. However, Jacoby board members believe this will not be the end of the organization. It will likely look different though.

Sophie Proe

/

St. Louis Public RadioThe Jacoby Arts Center earlier this month in downtown Alton

Sophie Proe

/

St. Louis Public RadioThe Alton-based Jacoby Arts Center features more than 75 St. Louis-area artists and their work.

The history of the buildingFirst dubbed the Madison County Arts Council, the nonprofit arts center renamed itself after the Jacoby family gave it the current building in 2004. AltonWorks founder John Simmons purchased the Jacoby Building in September 2018, according to property records from the county.Managing the large building, at 627 E. Broadway, became too expensive for the Jacoby Arts Center. In 2018, the organization approached Simmons to purchase it, said Dennis Scarborough, a past president of the board and a downtown business owner.“Of course, it sounded really, really good,” Scarborough said of Simmons’ purchase. “He took over the insurance, property taxes, all those kinds of things that were really, really getting into our budget, and he rented it to us at a fair price.”The two parties entered into a lease agreement initially for five years. Since then, Simmons has spent more than $1 million in upkeep, taxes, insurance and more on the building. The lease has been extended twice until the end of September this year.Over the six years, Jacoby paid $1,500 per month, which covered a portion of the utilities.“It’s been wonderfully generous of AltonWorks,” Hoven said.Because the building is aging and needs repairs, Brigham with AltonWorks and those connected to the arts center have long known the Jacoby Arts Center would need to relocate — at least temporarily.

Renovations on the Jacoby building will begin this fall. They’ll include modernizing the aging building, repairing the old elevator and putting in apartments on the second and third floors.

News of the likely departure and controversyRenovations will begin this fall. They’ll include modernizing the aging building, repairing the old elevator and putting in apartments on the second and third floors.In May, it became clear that a preliminary proposal for the arts center to return to the building after renovations finished in 2026 would not work for them, Hoven said.She estimates the first floor and basement of the Jacoby Arts Building span roughly 20,000 square feet.

Chad Brigham is a business and legal adviser for AltonWorks.

AltonWorks’ initial idea floated to the arts center would only provide 2,553 square feet, according to both Hoven and Brigham. While the board calculated the price for the new space to be at least triple the current payment, Brigham said there was never a specific price discussed.“No discussion in terms of actual rent price,” he said.AltonWorks didn’t make a specific rent offer because the organization doesn’t even know itself, Brigham said.In addition to cash from John Simmons, there will be loans, tax increment financing and state tax credits to cover the $20 million in building renovations. The entities financing the cost of renovations will also help determine the rent when the construction is complete, Brigham said.Regardless, the price required to return will be too much for the arts center to pay, Hoven said. Also, the organization would like to maintain the many programs it offers to the community — a rentable event space, a dark room and a clay studio, for example — in the future.“For us to really meet the needs of the community and be sustainable, we need a space where we can offer some of those programs — the artists’ shop, and other spaces that offer some kind of income as well — so that we can continue to give money back to the community,” she said.AltonWorks offered at least two other locations as possible alternatives from their vast stock of buildings along Broadway to house the arts center during the roughly 18 months of construction. Those alternatives came with similar deals requiring the Jacoby to cover only utilities, Brigham said.“We did put in a great deal of work behind the scenes in trying to find an interim solution,” Brigham said. “We wanted to find a place for them to go, where it was easy for them to continue programming, whether it’s 100% of it or some portion of it, that would work for them.”Initially, the arts center hoped to keep the basement during the renovations, Hoven said. When it became clear the preliminary offer to return was for much less space than the arts center anticipated, the letter to the community was sent.“The letter that came out was merely showing our surprise,” Hoven said. “Don’t misinterpret it as panic. Don’t misinterpret it as desperation.”

Sophie Proe

/

St. Louis Public RadioA smorgasbord of radios are displayed at the Jacoby Arts Center in Alton.

The commentary on social media was passionate. Some critics of AltonWorks said the organization has good intentions but hasn’t executed those plans. Others said Jacoby hasn’t planned well enough for the future.For Brigham and the AltonWorks team, some of the criticism has been disappointing.“I thought that there were some decent solutions. Were they perfect? No, but they were very, I thought, very good solutions,” he said. “And the fact that it has come to the point that it is right now is a bit hurtful.”AltonWorks remains committed to the arts, Brigham said. John Simmons remains one the largest donors of the Jacoby Arts Center, Hoven and Brigham said.“I don’t think there’s ever been a question of our support of that organization — of our affinity for that organization,” Brigham said. “While some of the events were unfortunate, some of them were encouraging. The entire community rallied around the Jacoby Arts Center. That’s a good thing. It’s a good thing to have a love for the arts like that in a downtown community.”Sara McGibany, the executive director of Alton Main Street, an organization aimed at preserving the town, said AltonWorks should be commended for its vision. In many ways, her organization and AltonWorks share a vision for a thriving downtown.Even though AltonWorks hosts public meetings, McGibany believes the current situation lacks true community engagement.“We really think that if AltonWorks can get past some of the communication hurdles — and harness the community’s passion and shift to more of a bottom-up decision-making process that centers on community input — then we can turn around the growing sentiment of distrust that’s happening now,” McGibany said.Scarborough, the past board president and downtown business owner, echoed the praise for Simmons and his support of the Jacoby Arts Center. With the Jacoby likely moving, the future looks bleak, though.“It’s a community arts center that does a lot of good work,” Scarborough said. “The community is going to suffer, and they’re going to be missed by the community if they’re not there.”

Eric Lee

/

St. Louis Public RadioShalanda Young, director of the federal Office of Management and Budget, talks to Illinois U.S. Rep. Nikki Budzinski, D-Springfield, during a tour of a construction project by AltonWorks last April in Alton. AltonWorks, who is building the LoveJoy Apartment Complex is receiving over $1 million in federal funding.

What does the future hold?AltonWorks will continue forging ahead with its ambitious plans to revitalize Alton. The organization hopes to conclude construction on the Wedge Innovation Center, which will have a restaurant, retail and co-working space, this fall. Lucas Row, a mix of apartments and retail space, is scheduled to be completed next spring.The remainder of the arts and innovation district, currently named after the Jacoby, will also move forward.“I believe in two years it’s going to be a much different place,” Brigham said of Alton. “It’s going to be thriving. It’s going to be new businesses, new tenants — and it’s going to be a nice proof of concept for what you can do in a small community like that.”The Jacoby board recently formed a strategic planning committee. Its task: figuring out what’s next for the arts center. The committee will reevaluate what space the Jacoby needs, what programs it wants to offer to the community and how they want to make that a reality.Keeping the arts center is essential for board members like Hoven. In her experience, it’s been a place where local aspiring artists get their start.“Art is one of the only ways to show your true authentic self,” Hoven said. “And there’s more people than I realized who do not get that opportunity every day.”The Jacoby will shut its doors to pack over the next month. Hoven said she’s optimistic the board will have concrete plans by the end of September when their lease officially ends.“Alton is such a fabulous and supportive community,” she said. “We still have lots of great options, so that the Jacoby Arts Center will continue to thrive in Alton and beyond.”

[ad_2]

Source link

Continue Reading

Trending