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 go to 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.
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 it’s 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.
Who will be impacted
Illinois American Water provides water service to residents in over 140 communities throughout Illinois including: