Illinois American Water is seeking a rate increase to pay for more than a half-billion dollars in planned infrastructure improvements. But a statewide consumer watchdog group calls the potential hike “outrageous” and vows to fight it.
On Tuesday, the water company filed its request for the higher rates with the Illinois Commerce Commission [ICC] as it plans to pursue $577 million in water and wastewater system investments through December 2027.
“We carefully and strategically plan and invest in our water and wastewater systems,” Illinois American Water President Rebecca Losli said in a news release. “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.”
The company said the requested increase would result in typical residential water customers paying about $14 more per month, while customers with sanitary wastewater systems would see a monthly increase of around $28.
Illinois American Water is the largest investor-owned water and wastewater utility in the state, serving about 1.3 million residents in 148 communities, including Peoria, Pekin, Dunlap, East Peoria, Washington and others in the Tri-County region.
The Citizens Utility Board responded by calling the request a “money grab,” and pledging to work for legislative reforms such as the Water Affordability and Accountability Act pending in the Illinois Senate.
“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,” CUB Executive Director Sarah Moskowitz said in the statement.
In December 2024, the ICC board approved a $110 million rate increase for Illinois American Water that represented a 30% reduction from its original request.
CUB said Illinois American Water’s parent company made more than $1 billion in profits in 2024 and $873 million over the first nine months of 2025.
The water company said its planned infrastructure upgrades over the next two years include replacing miles of aging pipeline, upgrading storage tanks and pumping stations, and ongoing replacement of lead service lines.
