Illinois American Water has submitted a rate request to the Illinois Commerce Commission (ICC) aimed at supporting a substantial program of capital investment in water and wastewater infrastructure across the state. The filing seeks approval for new rates associated with approximately $577 million in planned investments scheduled between January 2026 and December 2027.
The proposal is intended to fund upgrades and modernization efforts in systems serving more than 1.3 million people in 148 communities throughout Illinois. According to the company, the investments are focused on maintaining service reliability, enhancing water quality, and ensuring long-term system resilience.
The investment plan includes replacing 42 miles of aging water and wastewater pipelines, along with upgrades to storage tanks, wells, pumping stations, hydrants, meters, and wastewater treatment plants
Rebecca Losli, President of Illinois American Water, stated: “We carefully and strategically plan and invest in our water and wastewater systems. These investments directly benefit the communities we proudly serve and provide our customers with even more reliable service and improved water quality—from treatment to the tap. It underscores our employees' commitment to the health and safety of our customers and the communities we serve.”
The investment plan includes replacing 42 miles of aging water and wastewater pipelines, along with upgrades to storage tanks, wells, pumping stations, hydrants, meters, and wastewater treatment plants. The company also plans to continue replacing lead service lines and improving treatment facilities to meet regulatory requirements, including those related to emerging contaminants such as PFAS.
If approved, the proposed rates would result in an estimated monthly increase of about $14 for a typical residential water customer using 3,500 gallons, depending on location. Customers receiving sanitary wastewater service at similar usage levels could see an increase of approximately $28 per month.
The filing also includes a proposal to modify the allowance rate structure for residential water customers. Under this approach, the first 2,000 gallons of water would be billed at a discounted rate to support affordability for lower-usage households.
The rate request initiates an 11-month regulatory review process led by the ICC, which includes opportunities for public input through hearings, written comments, and participation by consumer advocacy groups. Any approved rate changes would take effect in January 2027.
