Illinois American Water, a regulated water and wastewater utility company, has been granted new rates by the Illinois Commerce Commission (ICC). This increase is primarily driven by approximately $557 million in capital investments in 2024 and 2025. The approved increase will result in a total annualized revenue increase of approximately $110.6 million.
The rate order covers $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. The monthly water service bill for the typical residential customer using 3,500 gallons per month with a 5/8-inch meter will increase by approximately $16 per month, and the typical residential wastewater bill will increase by approximately $8.50 per month.
Illinois American Water has also received approval to expand the income-based discount tariff. Qualifying income-eligible customers will need to apply for the discount and provide the required income information when the expanded program is implemented.
The company is committed to ongoing necessary investments to maintain and upgrade its water and wastewater systems to ensure the safety and reliability of the systems in the communities it serves. These investments include the replacement, lining, and installation of approximately 44 miles of aging water and wastewater pipelines, as well as upgrading water and wastewater treatment plants to maintain and meet regulatory compliance, storage tanks, wells, pumping stations, fire hydrants, meters, and manholes across the state and ongoing replacement of customer lead service lines.
Illinois American Water also offers customer assistance through the company’s non-income-based H2O Help to Others program, payment plans, and budget billing.
Customers will receive information about the new rates on their Illinois American Water bill and on the company’s website. This increase in rates is expected to support continued investment in critical water and wastewater infrastructure throughout the state, ensuring safe, clean, reliable, and affordable drinking water and wastewater services for the benefit of customers and other stakeholders. Today the company's shares have moved 0.2% to a price of $132.37. For more information, read the company's full 8-K submission here.
