Rate filing backs $577 million Illinois plan for pipe replacement, PFAS compliance
(UI) - Illinois American Water has filed a rate request with the Illinois Commerce Commission (ICC) seeking approval to recover approximately $577 million in water and wastewater infrastructure investments planned between January 2026 and December 2027.
According to the filing, the proposed investments would fund replacement and rehabilitation work across the utility’s systems serving more than 1.3 million customers in 148 Illinois communities. Planned projects include the replacement of 42 miles of aging water and wastewater pipelines, upgrades to treatment plants, storage tanks, wells, pumping stations and hydrants, and continued removal of lead service lines.
The capital plan also includes treatment improvements to address regulatory requirements, including compliance with emerging contaminant standards such as PFAS in drinking water. Illinois American Water said the investments are intended to improve system reliability, maintain regulatory compliance and reduce long-term operational risks tied to aging assets.
If approved, the rate request would result in an average increase of about $14 per month for residential water customers using 3,500 gallons and approximately $28 per month for wastewater customers, depending on service area. The filing also proposes a discounted rate for the first 2,000 gallons of water used by residential customers as a way to moderate impacts on low-usage households.
The request initiates an 11-month regulatory review by the ICC that will include public hearings, written comments and analysis by state consumer advocates. Any rate changes would require commission approval and, if authorized, would take effect in January 2027.
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