Home / Business and Economy / Illinois Water Rates Skyrocket: Merger Raises Consumer Fears
Illinois Water Rates Skyrocket: Merger Raises Consumer Fears
14 Jul
Summary
- Illinois utilities seek millions in rate increases, impacting residents.
- A merger of parent companies could reduce customer protections.
- Rate hikes could begin impacting bills for customers in 2027.
Illinois residents may soon face significantly higher water and sewer bills. The state's two largest private water utilities, Illinois American Water and Aqua Illinois, have requested substantial rate increases totaling over $168 million. These proposed hikes are currently under review by the Illinois Commerce Commission and could begin impacting customer bills as early as 2027.
Illinois American Water is seeking an increase of $142 million, which could raise typical residential water bills by approximately $14 per month and wastewater bills by an additional $28. Aqua Illinois is requesting $26.5 million, potentially leading to an average combined bill increase of about $23 per month for its customers.
Adding to these concerns, the parent companies of these utilities, American Water and Essential Utilities, are pursuing a merger. Consumer watchdog Citizens Utility Board (CUB) has urged regulators to block this deal, citing a history of consumer complaints and warning that industry consolidation, alongside rate increases, could leave customers with diminished protections and accountability.
CUB estimates that if the merger is approved, American Water and its affiliates would control nearly the entire regulated water and wastewater utility market in Illinois. This near-monopoly status raises alarms about potential impacts on competition and the ability of ratepayers to challenge future service or rate decisions.
