Illinois American Water Requests Rate Increase for System Upgrades

Illinois American Water has submitted a request to the Illinois Commerce Commission for a rate increase aimed at funding significant investments over the next two years. The company announced on Tuesday that the proposed rates would support approximately $577 million in improvements to its water and wastewater systems, with a completion target set for December 2027.

If the request is approved, new rates are expected to take effect in January 2027. For the average customer using about 3,500 gallons of water each month, this would result in an increase of roughly $14 per month. Illinois American Water emphasized that this request underscores its commitment to enhancing water quality and reliability for its more than 1.3 million customers across the state.

Details of Planned Improvements

The funds generated from the proposed rate increase will be directed towards substantial upgrades, including the replacement of 42 miles of aging pipelines, as well as improvements to storage tanks, pumping stations, hydrants, meters, and wastewater treatment plants. These initiatives also encompass the ongoing replacement of lead service lines and upgrading treatment facilities to better adhere to regulatory standards, particularly in minimizing PFAS contamination. PFAS, known as “forever chemicals,” are associated with various health risks, including cancer.

Rebecca Losli, President of Illinois American Water, stated, “We carefully and strategically plan and invest in our water and wastewater systems.” The company had previously raised rates in 2025 to support similar system enhancements.

Alongside the increase in water bills, customers utilizing Illinois American Water’s wastewater services are likely to see an average rise of $28 per month.

Financial Support for Customers

To address affordability concerns, part of the company’s proposal includes a modified allowance rate for residential water users. This adjustment aims to alleviate financial pressures on low-consumption customers by offering a discounted rate for the first 2,000 gallons of water used before billing at higher rates.

Illinois American Water remains committed to affordability, providing various programs to assist income-eligible customers. The company’s initiatives include the H2O Help to Others assistance program, budget billing options, and flexible payment plans, as noted in their recent statement.

The rate request initiates an 11-month review process by the Illinois Commerce Commission, which will offer multiple opportunities for customers to provide feedback, both in person and through written submissions.

Further details regarding the proposed rate increase and the planned system improvements can be found on Illinois American Water’s official website. The company serves residents in over 140 communities throughout Illinois, including Bolingbrook, Crystal Lake, Downers Grove, and Naperville, among others.