CHICAGO – Today, the Illinois Commerce Commission (ICC) cut portions of Illinois American Water’s rate increase request for water and sewer services. The ICC's decision reduces Illinois American Water’s rate request by approximately 30 percent for an overall increase of $110 million. The decision also approves a 9.84 percent return on equity (ROE) for the company, a reduction from the utility’s requested 10.75 percent ROE.
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Starting July 1, 2025, Illinois American Water will expand its existing low-income discount program to provide a 10 to 80 percent monthly total bill credit for customers whose incomes are up to 300 percent of the federal poverty level. Eligible customers should sign up directly through Illinois American Water.
Customers struggling to pay their water bills are encouraged to see if they are eligible for Illinois American’s existing low-income discount program and customer assistance programs.
“Illinoisans should have access to clean, safe, and affordable water and wastewater service, regardless of their income,” said ICC Chairman Doug Scott. “Expanding the eligibility requirements for Illinois American Water’s low-income discount program will help ease the burden for those struggling to pay their utility bills.”
The ICC issued its decision after closely scrutinizing Illinois American’s rate case filing, as well as testimony, exhibits, and additional materials submitted by the utility, ICC staff, and various intervenors over an 11-month legal proceeding. This process aims to ensure that utilities receive the necessary funds to provide safe and reliable service to customers, including the maintenance and replacement of aging infrastructure at a reasonable cost. At the same time, the Commission works to ensure that utility customers only pay rates that are just and reasonable. In accordance with the Illinois Public Utilities Act, utility costs are only recoverable if the utility demonstrates they are just, reasonable, and prudently incurred.
“Based on the Commission’s recent cases and evidence across the country, it seems clear that significant investment is needed to bring our water systems up to current health and safety standards. Improved infrastructure will have long-term positive impacts on Illinois’ water and wastewater services. While this comes with an immediate short-term cost, the Commission came to this decision with great consideration, not only for what is reasonable and prudent, but for how best to move Illinois forward,” said ICC Commissioner Stacey Paradis.
The impact of the rate case decision on individual customers will vary based on customers’ service class and water usage.
Illinois American Water provides water and sewer service to approximately 383,000 customers in 148 communities across Illinois. More information regarding the rate case can be found in Docket No. 24-0097.
About the Illinois Commerce Commission
The Illinois Commerce Commission (ICC) is a quasi-judicial body made up of five Commissioners. Through its Public Utility Program, the Commission oversees the provision of adequate, reliable, efficient, and safe utility services at the least possible cost to Illinois citizens served by electric, natural gas, telecommunications, water, and sewer public utility companies. Through its Transportation Regulatory Program, the Commission oversees public safety and consumer protection programs with regard to intrastate commercial motor carriers of general freight, household goods movers, relocation towers, safety towers, personal property warehouses, and repossession agencies. The Commission’s Rail Safety Program also inspects and regulates the general safety of railroad tracks, facilities, and equipment in the state.
To learn more about the Commission, its offices, and bureaus, click here. If you are a consumer who needs help resolving a utility dispute call 800-524-0795 or file an online complaint here. For a complaint related to transportation, call 217-782-6448.
Follow the Illinois Commerce Commission on social media @ILCommerceComm.
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