DES MOINES --- State regulators on the Iowa Utilities Board approved a temporary rate increase Tuesday for Quad-City area customers of Iowa American Water while a permanent rate increase is being considered.

The rate increase amounts to about 26 percent overall and 27 percent for residential customers.

A typical residential customer who lives in the company's Quad-City district will see a monthly bill rise by about $6.50 per month. That district includes Davenport, Bettendorf, LeClaire, Panorama Park and Riverdale.

A typical residential customer in the Clinton district would see a monthly bill jump by $6.70 per month.

The rate increase is expected to generate about $7.14 million in additional revenues for Iowa American Water, which is about $750,000 less than they had requested.

The company asked for a rate increase to pay for rising costs of water treatment and delivery and increased operating and maintenance costs.

In the last two years, the company has spent $10.5 million on a new water treatment and delivery system in Clinton and $9.5 million on infrastructure upgrades in the Quad-City district.

Company spokeswoman Lisa Reisen said it's important to make proactive water system upgrades because it saves money in the long run. She points out that water costs will still be about a penny per gallon, and that programs are available to help customers who have trouble paying their bills.

"We do recognize that, you know, times are tough right now" and the company wouldn't raise rates unless it was absolutely necessary, Reisen said.

When considering proposed rate increases, the board looks at such factors as the revenue required to cover the operating costs of a utility, a utility's capital expenses and a reasonable return on investment.

The company is asking the board to approve permanent rate increases of 68.62 percent for residential customers, or $17 per month in the Clinton district. It wants a 30.96 percent increase in the permanent rate for residential customers, or $7.44 per month, in the Quad-City district.

A hearing to discuss the request for a permanent rate increase is set for Nov. 4. Board members will get an opportunity to question witnesses who have provided testimony in the case.

"We just dive into the numbers, and if we find that some of the numbers are incorrect or not as stated in the case, then it's important to remember that (with) the temporary rates, there's a process for which refunds can be made," utilities board Chairman Rob Berntsen said.

In June, the Davenport City Council voted 7-2 in favor of a resolution officially opposing Iowa American's rate increase.

Davenport Mayor Bill Gluba said city officials knew at the time the vote was little more than symbolic, but wanted to make sure they were on the record against what they believed was an unfair hike.

"Basically, the utility companies over the years, through lobbying and contributions to politicians, have written the law that sets the utility rates," Gluba said. "Iowa utilities law is in favor of the utilities, not the customers."

Clinton Mayor Rodger Holm called the board's decision "disappointing," but said he was hopeful that the board would reach a different conclusion when it rules on a permanent rate increase.

"I hope that the utility board will decide that even that 27 percent is too high," Holm said.

Holm said he had been contacted by Gluba about possibly hiring Mayor John Marks of Tallahassee, Fla., to lobby the utilities board on behalf of the two cities. Marks is a lawyer who is experienced in utility rate issues.

Holm said no decision about hiring Marks has been made, but three city council members he has spoken to have supported the idea.