Village of Bolingbrook v. Illinois Commerce Commission

Appellate Court of Illinois·Decided August 7, 2026·No. 3-25-0070·Unpublished

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

2026 IL App (3d) 250070-U

Order filed August 7, 2026

IN THE

APPELLATE COURT OF ILLINOIS THIRD DISTRICT

2026

VILLAGE OF BOLINGBROOK ) Petition for Review of Orders of the ) Illinois Commerce Commission.

Petitioner-Appellant, )

)

v. ) ICC Docket No. 24-0097 ) Appeal No. 3-25-0070 ILLINOIS COMMERCE COMMISSION, ) ILLINOIS-AMERICAN WATER COMPANY, ) PEOPLE OF THE STATE OF ILLINOIS, ) ILLINOIS INDUSTRIAL WATER ) CONSUMERS, CITIZENS UTILITY BOARD, ) VILLAGE OF HOMER GLEN, LEGAL ) ACTION CHICAGO, CITY OF CHAMPAIGN, ) CITY OF SOUTH BELOIT, CITY OF ) URBANA, VILLAGE OF PHILO, VILLAGE ) OF SAINT JOSEPH, VILLAGE OF SAVOY ) and VILLAGE OF SIDNEY, )

)

Respondents-Appellees. )

JUSTICE DAVENPORT delivered the judgment of the court.

Justices Holdridge and Brennan concurred in the judgment.

ORDER

¶1 Held: Municipality did not establish grounds to reverse Illinois Commerce Commission’s decision to approve a modified rate increase for water and sewer service. Affirmed.

¶2 Petitioner, Village of Bolingbrook, appeals from a decision of the Illinois Commerce Commission (Commission) approving a modified rate increase for customers of the Illinois- American Water Company (Company). The Village argues the Commission’s decision is not supported by substantial evidence, and that any rate increase violates the Public Utilities Act (Act) (220 ILCS 5/1-101 et seq. (West 2024)) and the Illinois and federal constitutions. We affirm.

¶3 I. BACKGROUND

¶4 In January 2024, the Company filed proposed tariffs with the Commission, requesting a general rate increase for water and sewer service pursuant to section 9-201 of the Act (220 ILCS 5/9-201 (West 2024)). After the Company published notice of its filing of the proposed tariffs, appearances or petitions to intervene were filed by the Commission Staff (Staff), Attorney General, Illinois Industrial Water Consumers, Citizens Utility Board, Legal Action Chicago, the Village, and other municipalities. The Commission granted the petitions to intervene.

¶5 In June and July 2024, public forums were held in Jerseyville, Bolingbrook, and Champaign. During the public forum held in Bolingbrook, the Company’s president announced the proposed rates would increase customers’ monthly billing statements by a dollar per day. Bolingbrook customers voiced their opposition to the proposed rates, explaining how the Company’s current rates negatively affected their daily lives.

¶6 In August 2024, the Commission conducted an evidentiary hearing at which the parties waived cross-examination and the administrative law judge granted all the motions to admit. Together, the Company and the intervening parties submitted nearly 5,000 pages of exhibits, including responses to data requests and testimonies of approximately 30 witnesses, with supporting affidavits. The Village submitted 136 water billing statements issued by the Company

to Bolingbrook residents between January and August 2024. The bills ranged from $91.49 to $728.60 per month, with a monthly average exceeding $150.

¶7 In November 2024, the Commission heard argument from the Staff, the Company, the Attorney General, Legal Action Chicago, and some municipalities, including the Village.

¶8 In December 2024, the Commission approved a rate increase narrower than that proposed by the Company. The Commission’s order spanned 250 pages and contained findings on various contested issues, including rate base, operating revenues and expenses, capital structure and rate of return, service cost, rate design, and low-income tariff. As part of its consideration of rate design, the Commission detailed the Village’s position on customer bill impacts. Its order stated, “The Commission notes and takes into account [the Village’s] input as well as all of the customers who commented about the proposed rate increase. While the Commission can consider these comments, it is noted that they cannot be relied on to make a determination of facts.” Over the Staff’s objection, the Commission approved an expansion to the Company’s existing low-income discount program. The Commission supported its findings with calculations appended to the order.

¶9 In January 2025, the Village applied for rehearing pursuant to section 10-113(a) of the Act. The Village stated its application “focuses solely on the Commission’s conclusion regarding the detrimental customer billing impacts” resulting from the rate increase. It argued the conclusion “sets poor public policy,” where the Commission failed to justify its apparent disregard for the public’s “dismay” in response to the proposed rate increase.

¶ 10 The Commission denied the Village’s application for rehearing, and the Village appealed.

¶ 11 II. ANALYSIS

¶ 12 A. Motions to Strike

¶ 13 The Commission and the Company have separately filed motions, which we have taken with the case, to strike portions of the Village’s brief on appeal. In their motions, the Commission and the Company argue the Village’s brief raises arguments not properly preserved for appeal. The Commission moves to strike sections I(B) and I(C) from the Village’s opening brief. The Company moves to strike, inter alia, section I(B)’s constitutional basis, section I(C), and section II.

¶ 14 The Act prohibits an appealing party from urging or relying on grounds not set forth in an application for rehearing before the Commission. 220 ILCS 5/10-113(a) (West 2024). This rule demands strict compliance; an issue is forfeited if the application for rehearing raises it only implicitly or in general terms. People ex rel. Madigan v. Illinois Commerce Comm’n, 2015 IL 116005, ¶ 45. Although a court generally has discretion to excuse forfeiture, judicial review of a Commission decision is an exercise of “special statutory jurisdiction.” Id. ¶ 46. Such jurisdiction affords no discretion to review a ground not preserved as the Act requires. Id. (vacating appellate court’s holding on an issue not raised in an application for rehearing).

¶ 15 In section I(B) of its brief, the Village argues the approved rate increase violates the Illinois and federal constitutions. Specifically, the Village argues the rate increase contradicts the State’s requirement to provide for the public welfare and assure “economic justice” (Ill. Const. 1970, Preamble) and denies Bolingbrook residents “equal protection of the laws” (U.S. Const. amend. XIV, § 1; Ill. Const. 1970, art. I, Sec. 2) where other communities do not face the same “unmanageable rates.”

¶ 16 On review of the Village’s application for rehearing, we do not find a corresponding argument that the rate increase violates the Illinois and federal constitutions. The application included a single mention of the constitution (the Illinois constitution) in a context that served only to frame the Village’s contention that the Commission had failed to address residents’ concerns.

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