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. The process before the ICC is a transparent process that lasts about 11 months and requires thousands of pages of documents to justify the request. New rates do not go into effect until they are approved by the ICC. Customers have an opportunity to share their views with the ICC.

You can learn more about the rate setting process here.

On Feb. 10, 2022, Illinois American Water requested a change in water and wastewater rates. The request is 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.

If the company’s proposed rates are approved as requested, the monthly water service bill for the typical residential customer using 3,500 gallons per month with a 5/8-inch meter would increase between $6 and $14 per month, depending on the service area. The typical residential wastewater bill would increase between $7 and $17 per month, depending on the service area. Even with these increases, the cost of high-quality, reliable water and wastewater service would continue to be among the lowest household utility bills.

Also included in the rate change request is a low-income discount tariff which, if approved, would provide an approximately 70% decrease in the volumetric charge for both water and wastewater service for qualifying residential customers. This could result in lowering a typical residential customer’s monthly bill for 3,500 gallons with a 5/8-inch meter by about $23 for water service. A combined collection and treatment wastewater service bill for the same customer could see a decrease of about $8 to $15 a month, depending on the service area.

Following an 11-month review, the Illinois Commerce Commission (ICC) will issue an order adjusting rates for Illinois American Water. Illinois American Water cannot change base rates without ICC approval. The last change in base rates for water and wastewater service occurred over six years ago in 2017.

For more information about this rate request please view this FAQ. To view the information included in customer bills click here. The filing can also be viewed in full here.

The below documents explain current rates by service district:

Alton Area Industrial Pretreatment Program
Chicago Metro Wastewater
Chicago Metro Water
Hardin - County
Hardin - Village of
Mt. Pulaski
South Beloit
Sundale / Highland Hills / Washington Estates

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