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Illinois American Water files rate request driven by $557 million in future investments

  • Illinois American Water files rate request driven by $557 million in future investments
  • The rate request includes $421 million in water system infrastructure improvements and $136 million in wastewater system infrastructure improvements to be made over two years, from January 2024 to December 2025.
  • If the new rates are approved, residential customers would see their monthly water service bills increase about $24 per month, while the average residential wastewater bill would increase by about $5 per month.

 

About the entity

American Water
American Water provides high-quality water and wastewater services to approximately 15 million people in more than 1,600 communities in the United States as well as parts of Canada.

Illinois American Water filed a rate request today with the Illinois Commerce Commission (ICC) reflecting $557 million in water and wastewater system investments to be made through 2025 to continue providing clean, safe, reliable and affordable service. The request reinforces the company’s commitment to investing in its water and wastewater systems to replace aging infrastructure, provide reliable service, enhance water quality and comply with environmental regulations.

“We carefully plan and invest in the infrastructure of our water and wastewater systems to provide safe, clean, and reliable service to nearly 1.3 million Illinoisians in more than 140 communities across the state,” said Rebecca Losli, president of Illinois American Water. “By making prudent, ongoing investments, Illinois American Water is committed to protecting public health and safety in the communities we serve. At the same time, we remain committed to addressing the needs of our most vulnerable customers.”

The rate request includes $421 million in water system infrastructure improvements and $136 million in wastewater system infrastructure improvements to be made over two years, from January 2024 to December 2025.

Investments in the rate request include the replacement of approximately 44 miles of aging water and wastewater pipelines and the upgrading of storage tanks, wells, pumping stations, hydrants, meters, wastewater plants, and more across the state. Also included in the rate request is the ongoing replacement of lead water service lines across the state as well as improvements to water treatment facilities in Cairo, Sterling, Peoria, Leonore, Hardin, Nettle Creek and Saunemin to support continued safe drinking water treatment to residents and businesses.

The company’s last general rate case was filed with the ICC in January 2022 and a rate Order was approved in December 2022. New rates became effective in January 2023.

If the new rates are approved, as filed with the ICC today, residential customers would see their monthly water service bills increase about $24 per month, while the average residential wastewater bill would increase by about $5 per month. Both rates would depend on the customer’s service area.

Part of today’s filing with the ICC includes a proposal to expand the Income-Based Discount program to help protect and make additional customers who need bill assistance eligible for the program. Illinois American Water offers customer assistance through its H2O Help to Others program, payment plans and budget billing. For questions about the program or to apply, customers can call Dollar Energy at 888-282-6816 or they can apply directly at the company’s website at dollarenergy.org/need-help/illinois/ilaw-customer-assistance-discount-program.

Today’s filing is a necessary first step in the 11-month ICC rate review process; customer rates are not changing at this time. Any general rate changes proposed through this filing would not become effective until early 2025 when a final rate order is approved by the ICC.

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