Illinois American Water Files $577M Rate Request; California Unit Invests $4.7M in Well

AWKAWK

Illinois American Water filed for new rates to underwrite $577M of water and wastewater system investments through 2027, proposing $14 monthly water and $28 wastewater bill increases for 3,500-gallon users upon ICC approval. California American Water will spend $4.7M installing a new Sacramento-area groundwater well to enhance supply reliability.

1. New Jersey American Water to Switch to Free Chlorine During Annual Maintenance

Beginning the week of February 9, 2026 and running through the end of April, New Jersey American Water will temporarily replace its standard chloramine disinfectant with free chlorine at the Raritan-Millstone plant in Bridgewater and the Canal Road plant in Somerset. These two facilities serve customers across seven counties—Essex, Hunterdon, Mercer, Middlesex, Morris, Somerset and Union—and provide water to more than 2.9 million residents statewide. The company cautions some customers may notice a slight chlorine taste or odor during the 12-week maintenance period and advises refrigerating water in an uncovered container overnight to dissipate residual chlorine. Throughout the process, NJAW will conduct daily sampling and analysis to ensure all water quality metrics meet or exceed U.S. EPA and New Jersey Department of Environmental Protection standards.

2. Illinois American Water Files Rate Request to Fund $577 Million in Upgrades

On January 27, 2026, Illinois American Water filed a rate case with the Illinois Commerce Commission seeking new tariffs that would enable roughly $577 million in water and wastewater infrastructure investments between January 2026 and December 2027. The plan calls for replacing 42 miles of aging pipe, rehabilitating storage tanks and pumping stations, upgrading hydrants and meters, and enhancing treatment plants to address PFAS and other emerging contaminants. Under the proposal, a residential customer using 3,500 gallons per month would see an estimated bill increase of $14 for water service and $28 for wastewater service. The filing also includes a discounted rate tier for the first 2,000 gallons to support low-usage households, and continues funding for the H2O Help to Others assistance program. Assuming ICC approval in an anticipated 11-month review, new rates would take effect in January 2027.

3. California American Water Invests $4.7 Million in New Contempo Well Installation

California American Water has committed $4.7 million to construct a new groundwater production well and associated pumping equipment for its Suburban-Rosemont system in Sacramento County. Slated for completion in 2027, the project will replace aging wells, boost supply reliability for approximately 750,000 customers, and include upgrades to control systems and treatment facilities. Operations Director Audie Foster emphasized that the investment underscores CAW’s strategy of proactive infrastructure renewal to meet growing demand and protect water quality. Upon commissioning, the Contempo Well will deliver up to 2 million gallons per day of treated groundwater, providing a critical redundancy to surface water supplies during peak summer usage and emergency contingencies.

Sources

PPP