Iowa Utilities Board Issues Final Decision and Order in Iowa American Water Company's Rate Increase Request

Monday, February 27, 2017

Iowa Utilities Board issues decision in Iowa-American Water’s request for customer rate increase; Board order requires new compliance tariffs

Board authorizes IAW to implement plan replacing aging infrastructure

(Des Moines) – The Iowa Utilities Board (Board) issued a final decision and order allowing Iowa-American Water Company (Iowa-American) to increase its customer water rates in Docket No. RPU-2016-0002. Today’s order also requires the company to file new compliance tariffs, and approved a modified infrastructure mechanism (rider) to recover costs for replacing aging infrastructure. Iowa-American can choose whether or not to implement the rider based on the requirements put in place by the Board’s order. Final customer rates will not be established until the compliance tariffs are filed by Iowa-American, and are reviewed and approved by the Board.

On April 29, 2016, Iowa-American filed with the Board an “Application for Revision in Rates” and proposed tariff revisions, requesting an overall permanent annual revenue increase of $5.15 million, or 13.7 percent. Today’s Board decision reduced that overall annual revenue increase request to $3.9 million, or 10.37 percent. On May 9, 2016, Iowa-American implemented a temporary rate increase of $2.16 million, which is included in today’s Board decision and did not require pre-approval from the Board pursuant to Iowa Code § 476.6(9).

The Board’s order stated it was reasonable to adopt a return on common equity for Iowa-American of 9.6 percent, and the Board also denied several issues that were raised by Iowa-American in this case. Read today’s entire Board order here.

Prior to today’s decision, the Board received public written comments in this rate case, held public consumer comment meetings in Bettendorf, Clinton and Dixon, to receive comments concerning the proposed rate increase, and conducted an evidentiary hearing in Des Moines on October 20, 2016. The Board also held a hearing on the issue of rate case expenses in this docket on February 9, 2017.

Iowa-American provides water service to 63,000 customers in Clinton, Davenport, Dixon, Bettendorf, LeClaire, Riverdale, Panorama Park, and surrounding parts of Scott County, Iowa.For information, contact (515) 725-7334 or

The Iowa Utilities Board regulates utilities to ensure that reasonably priced, reliable, environmentally responsible, and safe utility services are available to all Iowans.
Follow the Board on Twitter:

Printed from the website on September 19, 2021 at 11:01am.