Village Close to Creating its Own Water Agency, Using Eminent Domain

Lemont and the four other communities that have banded together to take on one of the largest water providers in the country are one step closer to using eminent domain thanks to a measure pushed through the Illinois statehouse during the final week of the state’s legislative session.

Senate Bill 83 enables five communities—Lemont, Homer Glen, Bolingbrook, Romeoville and Woodridge—to create the Northern Will County Joint Action Water Agency, which will likely look to take action against Illinois American Water to overtake the pipeline that carries Lake Michigan water from Bedford Park to the west suburbs.

State lawmakers passed the measure this week  and the bill now awaits Gov. Pat Quinn’s signature to become law.

Bolingbrook Mayor Roger Claar said the group would likely meet as soon as Quinn signs the bill to discuss what action may be taken.

Last year, Illinois American Water got approval for a $41 million rate increase from the Illinois Commerce Commission and permission to raise rates by up to 5 percent annually without ICC approval, a Chicago Tribune report said.

Buying the pipeline would afford Bolingbrook residents a cheaper water bill, Claar said.

According to the Tribune, "Only portions of Woodridge, Romeoville and Lemont receive Illinois American water and sewer services — about 300 customers total — but officials there want a seat on the water agency to control future growth."

And if the new agency can’t purchase the pipeline, they’ll likely look to acquire it through eminent domain.

“This (bill) allows us to create a water agency, and if the agency chooses to do so, we will seek to purchase the Illinois American Water pipeline,” Claar said. “The alternative to that, if we choose to do so, if to seek it through eminent domain. But that decision must be made after the agency is formed.”

Illinois American Water Director of Government Affairs Tim Leahy said the bill won’t lower residents’ bill because less than 10 percent of the average customer’s bill would be affected by a takeover.

“Many local governments subsidize the cost of providing water so their rates do not reflect the true cost of providing those services,” Leahy said. “At a time when many municipalities are broke and struggling to meet infrastructure improvements, pension obligations and payroll, I don’t see how they can provide these services at a lesser cost. It’s just not realistic.”

In November 2010, against Illinois American Water alleging the company overcharged the village from 2003 to 2008 and violated its contract with the village by offering Plainfield a cheaper rate.

That action has nothing to do with the creation of the new agency.