URBANA – Mayor Laurel Prussing says Illinois American Water's request for yet another major rate increase should be a "wake-up call" to local city officials to begin thinking about buying the water system.

Champaign Mayor Jerry Schwei- ghart said pursuing public ownership through eminent domain would cost millions of dollars and isn't practical, particularly given the current economic climate.

Illinois American Water on Friday filed an application with the Illinois Commerce Commission for a 34.7 percent rate increase. The move comes less than a year after the commission awarded the company a 47 percent rate increase.

For a customer using 5,250 gallons of water per month, the latest proposal, if granted, would mean a $10.74 per month increase in rates, to $41.67 per month.

"I think this only adds to the argument of why the cities should own the water system, like most cities do," said Prussing, a longtime advocate of municipal ownership of the city's water system. "I think this should be another wake-up call."

Prussing said cities can provide water to residents cheaper than a publicly owned company can because a city doesn't have to worry about making money for shareholders and can pass along lower costs to customers.

"I don't think it's healthy to have long-distance ownership of something as vital as water," she said.

Prussing added she would welcome a discussion of pursuing public ownership with Champaign officials, and any other local communities that might be interested.

But Schweighart said he's worried about the potential costs of such a move.

Illinois American Water would undoubtedly fight any eminent-domain move by the cities, he said, and that would mean a multimillion-dollar legal battle. Buying the system itself would cost tens of millions of dollars more, he said.

"I don't see a possibility of it happening," Schweighart said. "I don't know where we'd get the money to fight. You know they'd fight it.

"I'm willing to listen to all the arguments, but I'm not in favor of buying it," he continued. "And I don't want to hire anybody to look into this."

The experiences of Pekin and Peoria in unsuccessfully pursuing public ownership have made him wary, Schweighart said. Pekin attempted to use eminent domain to buy its water system from Illinois American and saw that effort rejected by the ICC in January 2004. Peoria pursued public ownership, but then backed away when the price tag for the water system was set at $220 million.

Illinois American Water spokesman Barry Suits said via e-mail Monday that the company is not for sale.

"We hope they choose a different path," he said. "This case is about maintaining the high quality of water and reliable service that our customers currently receive and expect in the future – for less than 1 penny per gallon."