Illinois Water Utilities Seek Rate Hikes Amid Proposed Merger

Two of the largest private water utilities in Illinois are seeking significant rate increases to fund infrastructure upgrades, lead line replacements, and cybersecurity. Illinois American Water has requested a $142 million increase, which could raise residential monthly water costs by $14 and wastewater costs by $28. Aqua Illinois is seeking a $26.5 million increase to fund $171 million in capital projects through 2027, which would raise average monthly bills by approximately $23.

Simultaneously, the parent companies of these utilities, American Water and Essential Utilities, have proposed a merger expected to close in early 2027 if approved. The Citizens Utility Board (CUB) has urged regulators to reject the deal, warning that it would result in a single corporate umbrella serving over 99.99% of regulated water customers in Illinois. CUB argues that the companies are prioritizing shareholder profits over public service and that the merger will not resolve existing issues with escalating bills and poor service.

The Illinois Commerce Commission is scheduled to rule on the merger in November 2026, the Illinois American rate case in December 2026, and the Aqua Illinois rate case in May 2027. A public forum regarding the Illinois American rate case is scheduled for July 14 in Bolingbrook.