Illinois American Water seeks another rate increase

Illinois American Water filed a request with the Illinois Commerce Commission on Tuesday for new rates to support investments over the next two years.

Illinois American Water told the state that the new rates would support about $577 million in water and wastewater system improvements between now and December 2027, according to a news release from the company.

If approved, the new rates would take effect in January 2027.

Rates for the average water customer using approximately 3,500 gallons per month would increase by about $14 per month, the release stated.

“This request reinforces the company’s commitment to implementing critical system upgrades and continuing to improve water quality and reliability for its more than 1.3 million customers statewide,” Illinois American Water said in the statement.

Planned improvements with the money generated by this latest increase would include replacing 42 miles of aging water and wastewater pipelines and upgrading storage tanks, pumping stations, hydrants, meters, and wastewater plants across the state, the company said.

Other projects include continuing the ongoing replacement of lead service lines and upgrading treatment facilities to better meet regulatory requirements, like minimizing PFAS contamination. Per- and polyfluoroalkyl substances (PFAS) are known as “forever chemicals” that linger in the environment and in people and are linked to various health concerns, including cancer.

“We carefully and strategically plan and invest in our water and wastewater systems,” said Illinois American Water President Rebecca Losli.

The company previously raised rates to pay for system improvements in 2025.

The Citizens Utility Board came out against the rate hike.

“It is outrageous that Illinois American Water wants yet another rate hike. This company—a rate-hike machine—has already burdened customers with three increases totaling $230 million over the last decade, and now Illinois American has its hands in the customers’ pockets once again," Sarah Moskowitz, CUB executive director, said in a written statement.

CUB said it is also concerned about what this increase will mean for customers of Aqua Illinois, the second largest private water utility in the state. Illinois American is currently seeking regulatory approval to purchase Aqua.

In addition to the increased water bill, customers utilizing Illinois American Water’s wastewater services would likely see an increase of $28 per month on average.

The company stated that part of its proposal to the state includes a modified allowance rate for residential water users to “help alleviate financial pressures on low consumption customers and increase affordability.”

The proposal would bill residential customers at a discounted rate for the first 2,000 gallons of water used before increasing.

“Illinois American Water remains committed to affordability and offers programs to assist income-eligible customers, including its H2O Help to Others assistance program, budget billing options, and flexible payment plans,” the company said in a statement.

The rate request is the first step in an 11-month ICC review process, which allows multiple opportunities for customers to comment in person or through written feedback.

More details about potentially raised rates and Illinois American Water’s planned system improvements can be found on the company’s website.

Illinois American Water provides water service to residents in over 140 communities throughout Illinois.