Multiple developments in 2026—concerning proposals for rate hikes and water industry consolidation—could make conditions for long-suffering Illinois American Water and Aqua Illinois customers even worse, the Citizens Utility Board (CUB) said Tuesday, urging consumers to join the fight to slash private water rate hikes. (Read a pdf of CUB’s news release.)
Watch this video on Illinois American customers against the rate hike.
“Illinois’ private water customers are under siege,” CUB Communications Director Jim Chilsen said. “Illinois American and Aqua are yet again pushing for higher rates, as their parent companies try to finalize a merger – so Big Water could get even bigger and more expensive. We’re challenging these companies before the ICC, and we invite customers to join the fight.”
Illinois American and Aqua customers have long complained about escalating water bills over the years. 2026 is a pivotal year for them: CUB gave an update on three cases before the Illinois Commerce Commission (ICC) that will further impact Aqua and Illinois American customers–including one that was decided this month.
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American Water’s purchase of Aqua’s parent takes a step forward (Docket No. 25-1057)
Illinois American (owned by American Water) and Aqua Illinois (owned by Essential Utilities) are the two biggest private water companies in the state. Last year, American Water announced its plan to complete a purchase of Essential by the first quarter of 2027. The acquisition requires approval in multiple states, and CUB filed testimony urging the ICC to reject the deal because it failed to serve the public interest. However, the ICC approved the deal on Nov. 5. This transaction would mean more than 99.96 percent of regulated water and wastewater utility customers in Illinois will be served by affiliates of American Water. “This level of market consolidation raises obvious concerns,” CUB argued in the case.
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Illinois American pushes a $129 million rate hike. (Docket 26-0127)
Illinois American is seeking a $129 million rate hike (including an excessive 10.75 percent profit rate for shareholders). That would increase water bills by an average of $10 a month, and wastewater bills by an average of $23 a month. CUB filed testimony that identified at least $54.4 million in overcharges in the rate-hike request. An ICC judge issued a proposed order in October recommending a rate hike of about $76 million, including a profit rate for shareholders of 9.67 percent. Illinois American has won $230 million in rate hikes over the last decade, and now it wants more. A final order in the case is expected no later than Dec. 18.
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Aqua Illinois pushes a $26.5 million rate hike. (Docket 26-0495)
Aqua Illinois is seeking a $26.5 million rate hike (including an excessive 10.8 percent profit rate for shareholders). That would increase combined water and wastewater bills by roughly $23 a month. CUB and the Illinois Attorney General’s Office filed testimony in the case that found a total of at least $13 million in overcharges, pushing to cut the rate hike roughly in half. (The profit rate for shareholders should be no higher than 9.4 percent, CUB’s expert witness found.) Aqua received an $11.6 million rate hike just two years ago. A final ICC order in the case is expected no later than April 19, 2027.
CUB has also fought an ongoing battle to reform private water laws before the General Assembly. State law allows Illinois and Aqua to charge a “Qualifying Infrastructure Plant,” or QIP fee, that allows the companies to raise bills more rapidly. State law also allows the utilities to charge their customers for 100 percent of the acquisition costs when they march across the state and buy up municipal systems. CUB estimates that these for-profit companies have purchased 61 systems since 2013 and passed more than $411 million in acquisition costs onto their customers.
The escalating bills have taken a toll on customers. In September alone, more than 53,000 Aqua and Illinois American water customers were more than 30 days behind on their bills by a total of about $8.5 million. Earlier this year, hundreds of frustrated Illinois American customers packed public forums to speak out against the rate hike.
But Big Water has prospered. Illinois American’s parent has raked in a total of more than $2 billion in profits over the last two years, and Aqua’s parent has pulled in more than $1 billion total over that time. Both utilities are asking for some of the highest utility profit rates for shareholders CUB has ever seen: 10.75 percent (Illinois American) to 10.8 percent (Aqua).
“While the water companies laugh all the way to the bank, their customers are suffering,” Chilsen said. He urged Illinois consumers to visit CUBActionCenter.com speak out against the rate hikes:
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Sign petitions against the Illinois American and Aqua Illinois rate hikes.
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File a public comment with the ICC against the Illinois American and Aqua Illinois increases.
