Business & Tech

Bolingbrook Files Suit Against Illinois American Water, Says Company Overcharged Village

The village is filing a three count lawsuit against Illinois American Water that alleges the water company overcharged the village and is violating contractual obligations to consult with the village before it determines how to charge for its service.

The village filed a three-count lawsuit against Illinois American Water Tuesday alleging the company overcharged Bolingbrook from 2003 to 2008 and violated its contract with the village by offering Plainfield a cheaper rate.

According to the two parties' contract, village attorney James Boan said, Bolingbrook is entitled to the lowest possible water rate and is not required to pay more for water than any other user.

However, documents show that Illinois American Water gave Plainfield a rebate on the Lake Michigan water it purchased that could have saved Bolingbrook hundreds of thousands of dollars, Mayor Roger Claar said.

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The village also takes issue with the way the water company is attempting to change the formula by which it charges the Lake Michigan water it supplies. According to contract, the formula cannot be altered without mutual agreement of both parties. Claar said Illinois American Water is attempting to bypass the village by going directly to the Illinois Commerce Commission.

"The Village discovered the overcharging following the establishment of the Joint Action Water Agency to explore the purchase of the Lake Michigan Water Pipeline," Claar said in a press release. "During the research, documents were discovered revealing the overcharging.   What forced the village to take action now was (Illinois American Water's) recent rate filing with the Illinois Commerce Commission.  Again without consulting the Village beforehand."

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IAW Senior Manager Michael Smyth said the company is disappointed the village decided to take such action. Smyth said no one from Bolingbrook has contacted the company to indicate there was a concern.

"We are not aware of any service, contractual or other issue that is unresolved to warrant litigation," he said. "We feel it is entirely premature to file a lawsuit, and spend money on legal fees without first attempting to resolve the concern through discussion."

The village is seeking monetary damages based on the amount of water purchased over the six year period that Claar says should have been discounted. The village is also seeking an injunction that will prevent the water company from going straight to the ICC until the lawsuit is settled.

Illinois American Water is the largest water company in the state and provides service to more than 1.2 million people.


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