Illinois American Water Proposes $577M Rate Hike, $14 Monthly Water Increase

AWKAWK

Illinois American Water asked the Illinois Commerce Commission for rate increases to fund $577 million in water and wastewater infrastructure investments through 2027 serving 1.3 million customers. If approved, users of 3,500 gallons would pay $14 more for water and $28 for wastewater, with new rates effective January 2027 after 11-month ICC review.

1. Iowa American Water Names New Director of Business Development and Government Affairs

Iowa American Water announced on January 28, 2026 that Ben Keith will join the company as Director of Business Development and Government Affairs, effective January 20. Keith brings 17 years of regulated utility experience from MidAmerican Energy Company, where he most recently served as Vice President of Electric Transmission. In his new role based in Davenport, he will lead the company’s legislative strategy, public policy initiatives and external stakeholder engagement while also driving origination and growth strategy. Iowa American Water President Brad Nielsen highlighted Keith’s operational leadership background and professional engineering credentials as key to advancing state‐level regulatory objectives and identifying new development opportunities within Iowa’s largest regulated water utility, which serves approximately 227,000 customers.

2. New Jersey American Water Executes Routine Disinfectant Switch to Maintain System Integrity

New Jersey American Water will temporarily switch from chloramine to free chlorine disinfection at its Raritan‐Millstone and Canal Road treatment plants beginning the week of February 9 and running through April 2026. This annual maintenance practice covers surface water systems supplying customers in seven counties, including Mercer and Middlesex, and affects communities such as Trenton, Edison Township and Somerville Borough. The company will monitor residual chlorine levels continuously to ensure compliance with federal and state drinking water standards. While some users may detect a slight chlorine taste, New Jersey American Water emphasizes the change is standard and necessary to preserve long‐term water quality across its service area of 2.9 million people in New Jersey.

3. Illinois American Water Files for Rate Increase to Fund $577 Million Infrastructure Investments

On January 27, 2026, Illinois American Water filed a rate request with the Illinois Commerce Commission seeking approval for adjustments that would underpin approximately $577 million in capital investments from January 2026 through December 2027. The proposal includes replacing 42 miles of aging pipelines, upgrading storage tanks, wells, pumping stations and treatment facilities, and accelerating lead service line removal and PFAS mitigation projects. Under the filing, a typical residential water customer using 3,500 gallons per month would see rates rise by about $14, while combined water and wastewater customers would face increases near $28. The company also proposed a discounted rate on the first 2,000 gallons to enhance affordability and highlighted its H2O Help to Others assistance program. The ICC’s review, spanning 11 months, offers multiple public input hearings before any new rates take effect in January 2027.

Sources

PPP