Illinois American Water seeks 4th rate hike in 10 years

Water bills could be going up in several Chicago suburbs and other parts of Illinois, as Illinois American Water seeks a rate increase to fund infrastructure improvements.

They're the company behind sky-high bills in west suburban Lisle, where hundreds of homes get their water from the private company.

Depending on where they live, some homeowners' water bills in Lisle are higher than their neighbor's before a drop even hits the sink. Some homes get their water from Illinois American Water, rather than from the village.

"We are billed, at the least, $180 a month. There are some people that are paying $300 a month," said Lisle resident Susan Srail.

Illinois American Water has submitted a request for a $134 million rate increase with the Illinois Commerce Commission to help fund $577 million in water and wastewater system infrastructure improvements.

The proposed rate would mean an average increase of $14 a month for residential water customers and $28 a month for customers with sanitary wastewater systems.

Spokespeople for the utility said it's needed for system upgrades.

"Illinois American Water's request for new rates reinforces the company's commitment to implementing critical system upgrades and continuing to improve water quality and reliability for its more than 1.3 million people served statewide," an Illinois American Water spokesperson said.

But consumer groups have said otherwise, calling the request a "money grab"

"This company has been a rate hike machine over the last decade. This is literally the fourth rate hike request this company has had," said Jim Chilsen, spokesman for the Citizens Utility Board, a nonpartisan consumer watchdog. "Illinois American Water customers are among the most frustrated utility customers who call us across Illinois."

Chilsen recommended Illinois American Water customers contact the Illinois Commerce Commission to oppose the proposed rate hike.

The Citizens Utility Board isn't the only group taking action to fight the proposed rate increase. Proposed legislation in Springfield would reform the way private water utilities are regulated, in part by capping water surcharge costs.

Illinois American Water said its rate hike request is just the first step in an 11-month review process, so nothing will change for customers right away.

"The ICC review process offers multiple opportunities for customer involvement. Customers can participate through written comments, attendance at public input hearings scheduled by the ICC, and through consumer advocacy organizations that participate in the proceedings. All rate changes require ICC approval. If approved by the ICC, the company's new rates would take effect in January 2027," a spokesman said.

CUB noted that, in addition to seeking a rate hike, Illinois American Water is seeking to purchase Aqua, the state's second largest private water utility, raising questions about what that deal would mean for Aqua customers.