ICC approves rate increase for Illinois American Water

CHICAGO (WAND) — The Illinois Commerce Commission (ICC) has approved a rate increase for Illinois American Water, though the commission noted that it only approved around 70% of the requested increase.

The overall increase will come out to around $110 million. The decision also approved a 9.84 percent return on equity (ROE) for the company, a reduction from the utility’s requested 10.75 percent ROE.

Starting July 1, 2025, Illinois American Water will expand its existing low-income discount program to provide a 10 to 80 percent monthly total bill credit for customers whose incomes are up to 300 percent of the federal poverty level. Eligible customers should sign up directly through Illinois American Water.

Customers struggling to pay their water bills are encouraged to see if they are eligible for Illinois American’s existing low-income discount program and customer assistance programs.

“Illinoisans should have access to clean, safe, and affordable water and wastewater service, regardless of their income,” said ICC Chairman Doug Scott. “Expanding the eligibility requirements for Illinois American Water’s low-income discount program will help ease the burden for those struggling to pay their utility bills.”

The impact of the rate case decision on individual customers will vary based on customers’ service class and water usage.

Illinois American Water provides water and sewer service to approximately 383,000 customers in 148 communities across Illinois.