State’s largest privately owned water utilities seek rate increase amid lawmaker scrutiny

An Illinois American Water water tower is pictured in Bolingbrook. The company is seeking to increase water rates beginning next year. (Capitol News Illinois photo by Andrew Adams)

By Andrew Adams and Capitol News Illinois

SPRINGFIELD – The two largest privately owned water utilities in Illinois are seeking to raise rates for a combined 1.5 million customers around the state. 

Illinois American Water, which serves 1.3 million people, is seeking a $152.4 million rate increase. That corresponds to a $24 per month increase in water service bills and $5 per month increase in wastewater service for the average residential customer. 

Aqua Illinois, which serves 273,000 people, is seeking a $19.2 million increase. That would bring with it $29.91 in bill increases, according to the Citizens Utility Board, a consumer advocacy group. 

The requests must be reviewed by the Illinois Commerce Commission before the utilities are allowed to modify their rates. The ICC will then likely modify the requests to comply with state law, and it will respond to arguments presented by entities such as the Illinois attorney general, local municipalities and advocacy organization. 

Decisions in the cases are expected by the end of the year, with water rates going into effect around the start of 2025. 

To collect public input in the two cases, the ICC set up a series of five hearings around the state. While the first in Jerseyville was held on June 26, the rest are scheduled over the next two weeks. 

Two hearings in the Illinois American Water case are scheduled for July 22 at the Levy Center in Bolingbrook and for July 23 at the Champaign Public Library in Champaign

Two hearings on the Aqua Illinois case are scheduled for July 29 at McHenry County College in Crystal Lake and for Aug. 1 at Olivet Nazarene University in Bourbonnais

All four hearings begin at 7 p.m. and run for either 2 or 2 ½ hours. 

AARP Illinois, which advocates for Illinoisans age 55 and older, requested the hearings to give customers a chance to have “face-to-face” time with the administrative judge who is overseeing the case, according to Jeff Scott, an associate state director at AARP. 

While his organization is not planning on formally testifying in the cases, it has been circulating petitions and conducting an education campaign with the goal of lowering the requested increases to fixed charges. 

AARP said Illinois American’s request would increase the fixed monthly meter charges, which customers must pay no matter how much water they use, from $17.98 to $26.12. Aqua’s request would increase fixed charges for most customers from $19.47 to $21.95.

Scott said recent decisions to dramatically reduce requested rate increases from natural gas and electric utilities suggests the agency could do the same for water companies.  

“We’re absolutely optimistic that we have an ICC whose members are thinking about the customers who have to pay these bills,” Scott told Capitol News Illinois. 

Capitol News Illinois can be reached at [email protected].

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