Illinois American Water Proposes Rate Increase for System Upgrades

Illinois American Water has submitted a request to the Illinois Commerce Commission for a rate increase aimed at funding extensive improvements to its water and wastewater systems. The company announced on Tuesday that the proposed rates would support approximately $577 million in upgrades over the next two years, set to take effect in January 2027 if approved.

The average water customer using around 3,500 gallons per month would see an increase of approximately $14 on their monthly bill. Illinois American Water stated in a news release that this request reflects its commitment to enhancing water quality and reliability for its more than 1.3 million customers statewide.

Planned Improvements and Health Considerations

The investment will facilitate the replacement of 42 miles of aging pipelines and upgrades to various facilities, including storage tanks, pumping stations, hydrants, meters, and wastewater treatment plants. Notably, the company plans to continue replacing lead service lines and upgrading treatment facilities to better address regulatory requirements, particularly in minimizing PFAS contamination. PFAS, often referred to as “forever chemicals,” are associated with numerous health risks, including cancer.

Rebecca Losli, President of Illinois American Water, emphasized the importance of strategic planning in the company’s investment approach. “We carefully and strategically plan and invest in our water and wastewater systems,” she stated.

In addition to the water rate increase, customers utilizing the company’s wastewater services can expect an average increase of around $28 per month.

Support for Low Consumption Customers

As part of its proposal, Illinois American Water is introducing a modified allowance rate for residential water users. This initiative aims to alleviate financial pressures on customers with lower consumption levels. The proposed structure would bill residential customers at a discounted rate for the first 2,000 gallons of water used, before increasing the rate thereafter.

Furthermore, the company remains dedicated to affordability, offering programs to assist income-eligible customers. These include the H2O Help to Others assistance program, budget billing options, and flexible payment plans.

The rate request marks the beginning of an 11-month review process by the Illinois Commerce Commission, during which customers will have multiple opportunities to provide feedback, both in person and in writing. For further details regarding the proposed rate increases and planned improvements, customers can visit Illinois American Water’s website.

Illinois American Water serves residents in over 140 communities across Illinois, including towns such as Bolingbrook, Crystal Lake, Downers Grove, Frankfort, and Naperville, among others. This proposed rate increase aims to ensure continued service quality and compliance with environmental regulations, ultimately benefiting the communities it serves.