The following is a statement from Citizens Utility Board (CUB) Executive Director Sarah Moskowitz on Illinois American’s latest rate-hike request.
It is outrageous that Illinois American Water wants yet another rate hike. This company—a rate-hike machine—has already burdened customers with three increases totaling $230 million over the last decade, and now Illinois American has its hands in the customers’ pockets once again, pushing for a $134 million increase. An average rate hike of $14 a month for water and $28 a month for wastewater will be a hardship for customers. Meanwhile, Illinois American’s parent company is rolling in profits, raking in more than $1 billion in 2024 and another $873 million in just the first nine months of 2025. CUB will challenge this money-grab, and we will continue to work in Springfield for legislative reforms (Senate Bill 75) to stop Illinois American from plundering customers.
CUB also is concerned about what this increase will mean for customers of Aqua Illinois, the second largest private water utility in the state. Illinois American is currently seeking regulatory approval to purchase Aqua.
Sign CUB’s petition against Illinois American Water’s rate-hike request.
Background:
- On Tuesday, Jan. 27, Illinois American Water filed for a $134 million rate hike with the Illinois Commerce Commission (ICC). The largest investor-owned water and wastewater utility in Illinois serves about 1.3 million residents in 148 communities. According to a form Illinois American’s parent filed with the Securities and Exchange Commission, the utility seeks a two-step rate increase: about $119 million effective Jan. 1, 2027, and about $15 million effective Jan. 1, 2028. The company seeks a return on equity–or profit rate for shareholders–of 10.75 percent.
- Under the proposal, the company said the typical residential water customer using 3,500 gallons of water would see an increase of approximately $14 per month, depending on the service area. Typical wastewater customers using 3,500 gallons of water would see an increase of approximately $28 per month.
- Illinois American has won $230 million in rate hikes over the last decade–$110 million in 2024, $85 million in 2022 and $35 million in 2016.
- The utility’s parent company, American Water, made more than $1 billion in profits in 2024 and another $873 million in the first nine months of 2025.
- For years, Illinois American customers have contacted CUB to complain about excessive water bills, connected to favorable legislation water companies have pushed in past years. Under state law:
- Illinois American charges a “Qualifying Infrastructure Plant” fee on bills.
- Illinois American and Aqua Illinois–the state’s two biggest private water utilities–can buy up water and wastewater systems across the state and charge their customers to cover 100 percent of the acquisition costs. CUB Water Tracker, CUB’s special online center monitoring the problem, found that these for-profit companies have purchased 61 systems since 2013, when state legislators passed a law that allows these water utilities to pass acquisition costs—$411.5 million and counting—onto their customers.
- Senate Bill 75, the Water Affordability & Accountability Act, would eliminate the QIP surcharge and require water utility shareholders to cover the majority of the price tag when the utility buys a local water or wastewater system.
- The parent companies of Illinois American and Aqua are hoping to merge. The deal is expected to close in the first quarter of 2027.
