Real Estate & Property Law

Fight Against Private Water Company

By Alan Ackerman

Homer Horizon

Homer Glen has made plans to form a joint water agency with neighboring communities to look into the potential purchase of an 18-mile pipeline in Bedford Park owned by American Lakewater Company. The pipelinebrings water from Bedford Park via Lake Michigan to the south suburbs, including Homer Glen. Taking control of the pipeline, which IAW officials have insisted is not for sale and could only be acquired by eminent domain, would essentially give each community control of its water services.

Daley offered words of encouragement to IAW customers fed up with increasing rates.

"Together I believe we can put them out of business," he said March 23. "The process is complex like layers of an onion, but we are on the right path."

The meeting also included criticism of the Illinois Commerce Commission, the commission that will rule on IAW's latest proposed increases sometime this month. Trustee Laurel Ward said she recently attended one of the ICC hearings in Chicago, and that she left the meeting "deeply discouraged."

"[Homer Glen residents] made comments regarding the proposed increases and commissioners didn't even look at the residents," Ward said. "I am deeply discouraged and embarrassed this is our government in Illinois."
    
A balancing has to be recognized in these water cases.  Individual owners are deeply discouraged when rates are increased by a private water company.  Yet, public water also will increase rates depending on the cost to maintain and construct the system.  At some point, the economics may run out of kilter, but if so, jumping in an eminent domain proceeding may or may not be the right solution for owners.  The cost can often increase more when the public entity takes the property.  The advantage to the public entities is that federal water funds may be more readily available and people like to control their own destiny.
 

Full post as published by National Eminent Domain Blog on April 02, 2010 (boomark / email).