Illinois American Water’s water and wastewater service rates are based on the cost of providing quality, reliable service to customers. Rates also pay for infrastructure upgrades Illinois American Water makes to support reliability.

Illinois American Water is regulated by the Illinois Commerce Commission (ICC). The only way that Illinois American Water can adjust base rates is with the approval of the ICC. On Feb. 10, 2022, Illinois American Water requested a change in water and wastewater rates. The ICC issued an order on Dec. 15, 2022, adjusting rates for Illinois American Water, and approving a new low-income discount tariff for qualifying customers.

New rates take effect Jan. 1, 2023. The amount of the rate change customers will experience will vary among the company’s operating districts. A communication was sent in customers’ bills describing new rates. You can view this communication here. More information for Chicago Metro area customers can be viewed here. The last change in base rates for water and wastewater service occurred approximately six years ago in 2017.

In addition to the rate adjustment, the ICC approved Illinois American Water’s request for a low-income discount tariff. Illinois American Water is working to implement the new low-income discount program. Qualifying low-income customers will need to apply for the discount and provide required income information. Information about the program will be communicated to customers when the application process is in place. Illinois American Water also offers customer assistance through the company’s non-income-based H2O Help to Others program, payment plans and budget billing. More information can be found here.

The rate change request was driven primarily by over $1.1 billion in investment across the state from 2018 to 2023. Investments include the replacement, lining and installation of approximately 141 miles of aging water and wastewater pipelines. Investments also include upgrading water and wastewater treatment plants, storage tanks, wells, pumping stations, fire hydrants, meters, manholes, and more across the state.

Some of the company’s critical infrastructure projects across its service areas included in the rate request are as follows:

  • Ongoing replacement of lead service lines across the state.
  • Two solar fields in Champaign and in Peoria. The energy-saving photovoltaic (PV) fields, which convert light to usable energy, are the largest of their kind within American Water’s footprint, nationwide.
  • Upgrades to the Chickasaw Water Reclamation Facility in Homer Glen to support continued, reliable service, and meet enhanced regulatory requirements.
  • Ultraviolet (UV) disinfection installed at several water treatment plants including Alton, East St. Louis, Granite City and Streator. The new treatment technology supports safe drinking water to residents and businesses.
  • A new South Water Treatment Plant in the Lincoln service area to support continued, reliable service.
  • New Chemical Feed Systems in Champaign, Alton, East St. Louis, Streator, Peoria and Jerseyville. The improvements support continued and reliable service and allows for the safe and secure handling of chemicals.
  • Over six miles of sanitary sewer main installation in Alton to address requirements set forth by the Illinois Environmental Protection Agency to remedy combined sewer overflows.
  • A new high service pump station at the Sterling water treatment plant and a new, larger elevated water tank on the north side of town.
  • Ten water storage tanks to serve the communities of Sterling, Streator, Pontiac, Peoria, Sidney, Lincoln, Arbury Hills, Hardin County, Granite City and East St. Louis.

These investments support not only reliable service for public health, public safety, fire protection and economic development, but also for safe drinking water and reliable wastewater service for homes and businesses.

You can learn more about the rate setting process here.
The filing can also be viewed in full here. The related press release can be viewed here.

The below document(s) explain current rates by service district:
Illinois American Water Rates

Supporting Quality Infrastructure

Illinois American Water is dedicated to investing in local water and wastewater systems to provide reliable, high-quality service. That includes making timely investments in our systems. Our Quality Infrastructure Program helps us to replace and update aging infrastructure on a timely basis.

The Quality Infrastructure Program (QIP) Surcharge funds company improvements to infrastructure replacements in some communities.
You can learn more about your bill, as well as your rights and responsibilities here (English | Spanish).

The ICC has also created a Customer Bill of Rights for Illinois Water and Sewer Customers.

For more information about Illinois American Water’s tariffs and Part 280 rules, please see the links below:

Illinois American Water Rules and Regulations, Water and Wastewater Tariffs
Administrative Code Part 280 Rules Implementation Checklist