Repository: UIHistories Project: Board of Trustees Minutes - 1948 [PAGE 1074]

EXTRACTED TEXT FROM PAGE:

1948]

UNIVERSITY OF ILLINOIS

I073

violations of such regulations, (b) For industrial use, as defined by the Illinois Commerce Commission, water may be used for cooling purposes. In the event of a disagreement on the application of the regulations, further interpretations can and will be obtained from the Illinois Commerce Commission. 3. T o pay in accordance with established rate schedules for water as metered for all isolated properties. 4. T o assume the cost of constructing a pit for metering facilities, or if the University requests that the meters be installed in the Filtration Plant, the University will provide and maintain the piping from the University property line into the building. The Illinois Water Service Company is proposing to submit the following rate schedule to the Illinois Commerce Commission increasing existing unit rates by approximately 50 per cent in the quantity brackets in which practically all of the University water will be purchased:

R A T E S PER 100 CUBIC F E E T PER QUARTER

Present1 (Iron Removed Proposed2 Consumption Only) (Softened) 1st 9000 cu.ft. 3 So.25 $0.40 next 9000 c u i t 0.18 0.30 next 12,000 cu.ft 0.10 0.20 next 270,000 cu.ft 0.06 0.10 all over 300,000 cu.ft o. 06 o. 09 In recognition of the quantity of water to be purchased by the University, the company has offered to request the Illinois Commerce Commission to approve a rate of 9 cents per 100 cubic feet on all water supplied over 300,000 cubic feet per quarter. The lowest rate previously proposed was 10 cents per 100 cubic feet for all over 30,000 cubic feet per quarter. The above rates contemplate softened water. The rate of 9 cents per 100 cubic feet, although not a major reduction, is materially below the estimated cost to the University of supplying its own water from a new source which would have to be developed in an area approximately six to nine miles from the community. In a report submitted to the Board of Trustees Buildings and Grounds Committee under date of January 5. !948 estimates on operation and maintenance were included which indicated that the lowest cost of a new University water supply would be 11.22 cents per 100 cubic feet (2.22 cents per 100 cubic feet over the rate quoted by the Illinois Water Service Company) based on double the present consumption. On the basis of present consumption, the rate for softened water would be 13.2 cents per 100 cubic feet. As also indicated in this report, an immediate minimum capital investment of $493,000 (plus an additional $226,000 to provide softened water) would be necessary. This report was prepared by the University's engineers, Alvord, Burdick and Howson, who are also serving as engineers for the water company. As a result of negotiations with the Illinois Water Service Company, it is our conclusion: 1. That the University's future water supply will be adequately protected through the above outlined measures. 2. That it will be more economical for the University to purchase its water supply from the Illinois Water Service Company than to develop a new supply if the rate of 9 cents per 100 cubic feet is approved by the Illinois Commerce Commission. 3. That the University is adequately protected as t o : ( a ) scientific needs; (b) reasonable assurance of adequate supply; (c) right to resume its own pumping in emergency or failure of the company to meet its commitments.

1 At the present time there are only four brackets. The fifth has been added here to permita comparison. Until such time as softening equipment can be installed there will be a downward adjustment of approximately 2 3 % in the proposed rates. 8 One cu. ft. = 7.48 gallons; in general discussion a conversion factor of y^4 gallons is commonly used.