Illinois American Water pushing for another rate hike
PEORIA – Illinois American Water customers could see their water bills go up by about $24 a month and their wastewater bills rise by $5 a month in 2025 if the Illinois Commerce Commission approves a rate request filed in January.
The request comes on the heels of an increase that just took effect in January. Residential customer bills are increasing between $3 and $16 per month, depending on the service area, according to Illinois American Water.
Why is Illinois American requesting a rate hike?
Illinois American Water says it is asking for an increase in 2025 to cover the cost of planned infrastructure improvements, including $421 million for the water system and $136 million for the wastewater system. Improvements will be made over two years, from January 2024 to December 2025.
“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 company is planning to replace about 44 miles of aging water and wastewater pipelines and to upgrade storage tanks, wells, pumping stations, hydrants, meters and wastewater plants in the state. The additional money would help fund the ongoing replacement of lead water service lines and pay for improvements to water treatment facilities in Cairo, Sterling, Peoria, Leonore, Hardin, Nettle Creek and Saunemin.
Included in Illinois American Water’s filing to the ICC is a plan to expand the Income-Based Discount program for people who have trouble paying their water bills. Customers can apply through the H20 Help to Others program by calling Dollar Energy at 888-2826816 or they can apply directly at the company’s website at dollarenergy.org/need-help/illinois/ilaw-customer-assistance-discount-program.
What happens next for Illinois American rates?
On Feb. 9, the Citizen’s Utility Board issued a scathing statement against the proposed rate increase, saying that American Water — Illinois American’s parent company — has made $1.59 billion in profits over the last two years, including $820 million in 2022 and $773 million through the first nine months of 2023.
Since 2016, Illinois American has successfully pushed for two other rate hikes before the ICC – an $85 million increase in 2022 and a $35 million increase in 2016. The review process for the latest rate hike request is expected to take about 11 months.
Customers can sign the Consumer Utility Board’s petition against the rate increase, or file a public comment directly with the ICC.
Leslie Renken