Illinois American Water Completes Major Improvements, Enhancements to Regional Water Treatment Plant Near East St. Louis

Rhea-AI Summary

Illinois American Water (NYSE:AWK) completed final stages of a multi‑year upgrade to its Metro East regional water treatment plant near East St. Louis in 2025.

Key facts: $157 million invested since 2019; serves ~75,000 metered customers (~350,000 people); average daily demand ~39.3 million gallons and maximum daily ~47.70 million gallons. Upgrades include new elevated storage, new raw water pumps and VFDs, a new diesel high‑service backup pump, two clear wells (tripling storage), a new ultraviolet treatment system, upgraded chemical feed (gas to liquid), enhanced security and alarm systems, and increased backup generator capacity. The projects created > 1,500 construction jobs and the plant is a member of the Partnership for Safe Water.

Positive

• $157 million invested since 2019
• Serves ~75,000 metered customers (~350,000 population)
• Added ultraviolet treatment for chemical‑free pathogen control
• Two clear wells tripled storage capacity
• More than 1,500 construction jobs created

Negative

• None.

Key Figures

Plant investment $157 million Major upgrades at Metro East regional water treatment plant since 2019

Direct customers 75,000 customers Estimated metered customers served by Metro East plant

Served population 350,000+ people Population served in Metro East region

Daily demand 39.3 million gallons Approximate average daily water demand at plant

Max daily demand 47.70 million gallons Approximate maximum daily demand at plant

Distribution system length 26 miles Metro East distribution system length enhanced by chemical upgrades

Job creation rule 10 jobs per $1 million U.S. Water Alliance estimate for water infrastructure investment

Jobs created 1,500+ jobs Jobs brought to Metro East by plant investments since 2019

Market Reality Check

$128.15 Last Close

Volume Volume 1,776,615 is at 0.79x the 20-day average, indicating subdued trading interest before this news. normal

Technical Shares at 128.46 are trading below the 200-day MA of 140.23, reflecting a weaker medium-term trend ahead of the plant upgrade update.

Peers on Argus

AWK slipped 0.8% with several regulated utility peers also lower: WTRG -1.21%, AEE -0.78%, ATO -2.2%, DTE -1.25%, FE -0.33%, suggesting a broader defensive-sector drift rather than a company-specific reaction to the Illinois plant improvements.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 05	Dividend declaration	Positive	+0.4%	Quarterly cash dividend of <b>$0.8275</b> per share maintained increased payout.
Dec 04	Customer advisory	Neutral	+0.4%	New Jersey unit urged pipe winterization and conservation amid early cold snap.
Dec 04	Customer advisory	Neutral	-1.6%	Corporate guidance on preparing for freezing temperatures and avoiding pipe damage.
Dec 04	Customer advisory	Neutral	-1.6%	Missouri unit issued cold-weather preparation tips for water customers.
Dec 03	Infrastructure commentary	Negative	-1.6%	California president highlighted ASCE downgrade to <b>D+</b> and need for investment.

Pattern Detected

Recent AWK headlines, including dividends, customer advisories, and infrastructure commentary, have generally produced modest, directionally consistent price moves, with no clear pattern of sharp divergences from news tone.

Recent Company History

Over the last week, AWK has issued several operational and customer-focused updates. A Dec 5 dividend announcement maintained its capital return profile. Multiple Dec 4 releases in New Jersey, Missouri, and at the corporate level emphasized winter preparation and system reliability, while another highlighted California’s downgraded water infrastructure grade and the need for investment. Taken together, these items underscore AWK’s regulated utility profile and ongoing infrastructure focus, which aligns with today’s Illinois plant upgrade news.

Market Pulse Summary

This announcement highlights substantial infrastructure investment at AWK’s Illinois Metro East plant, with $157 million deployed since 2019 to support reliability, capacity, and environmental performance for over 350,000 people. It complements recent filings describing larger capital programs and rate cases in multiple states. Investors may watch how these projects translate into allowed returns, future rate decisions, and operating efficiency, as well as how financing—such as recent $900 million in senior notes—balances with earnings and cash flow.

Key Terms

variable frequency drives technical

"New raw water pumps and variable frequency drives at the water intake"

Variable frequency drives are electronic devices that control the speed and power of electric motors by adjusting the electrical supply, similar to how a car’s throttle controls engine speed. For investors, they matter because they can cut energy use, reduce wear on equipment, and improve process control; widespread adoption or increased sales often signal cost savings, higher efficiency and demand in industrial, HVAC, and infrastructure sectors.

AI-generated analysis. Not financial advice.

Since 2019, $157 million has been invested in major upgrades and enhancements to the Metro East regional water treatment plant that focus on service reliability, water quality and operational efficiencies, while incorporating state-of-the-art environmental technology.

BELLEVILLE, Ill., Dec. 9, 2025 /PRNewswire/ -- In 2025, Illinois American Water's Interurban (Metro East) District completed the final stages of significant upgrades and enhancements to its historic water treatment plant on the Mississippi River near East St. Louis.

The original water plant was built in the late 1800s to serve the City of East St. Louis and small surrounding communities only. The plant has been updated and expanded many times over the past 130 years to serve a regional customer base in the Metro East. The water treatment plant provides service to an estimated 75,000 direct customers (metered), or a population of more than 350,000 in the Metro East.

"The major investments to our East St. Louis plant over the past six years are strategic, significant and sustainable," said Rebecca Losli, President, Illinois American Water. "The projects position us to continue providing quality water service in the Metro East that meets or surpasses regulatory quality standards."

The water treatment plant provides water directly to customers in the following communities: Belleville, Brooklyn, Cahokia Heights, East St. Louis, Fairmont City, Sauget, Shiloh and Swansea. The water treatment plant provides water to the following communities on a sale-for-resale (wholesale) basis: O'Fallon, Cahokia Heights, Caseyville, Columbia, Fairview Heights, Millstadt and Scott Air Force Base.

Situated along the east bank of the Mississippi River near the Stan Musial Veterans Memorial Bridge, the water treatment plant's original water basins were installed in 1887. Today, the water plant meets a daily demand of approximately 39.3 million gallons with maximum daily demand of approximately 47.70 million gallons.

"There have been many expansions, renovations and updates in the last century to our East St. Louis water treatment plant to help ensure safe, clean, reliable, safe water service to our Metro East customers," continued Losli. "These upgrades were completed strategically over six years and improve our operational efficiencies, safety and our environmental footprint."

Highlights of the renovation and improvements at the water treatment plant:

• Construction of an elevated water storage tank.
• New raw water pumps and variable frequency drives at the water intake structure on the Mississippi River.
• New diesel, high service backup pump which runs in event of a power outage.
• Two clear wells which triples storage capacity at the plant.
• New ultraviolet water treatment system and storage building. This is an additional layer in the water treatment process at the surface-water plant. Ultraviolet water treatment effectively deactivates bacteria, viruses, and other pathogens in raw, untreated water from the river. This additional water treatment step is chemical-free and environmentally friendly.
• Upgraded chemical feed systems from gas to liquid enhances employee safety and public safety for surrounding communities. The switch from gas to liquid chemicals also enhances water quality throughout the 26-mile distribution system in the Metro East.
• Upgraded security and fire alarm systems.
• Increased capacity of the backup diesel power generation.
• New residual pump station and concrete residuals pond.

Some older buildings at the water treatment plant are no longer being used and are planned to be razed over the next few years.

Said Losli, "Our focus at the East St. Louis water treatment plant is an example of continuous investments and improvements to meet the demands of today's customers and planning for the future. Continued investments are needed across the nation to maintain critical water and wastewater infrastructure."

There is an economic ripple effect on investment in water and wastewater infrastructure. According to the U.S. Water Alliance, every $1 million invested in water and wastewater infrastructure, 10 jobs are created. Since 2019, the major investments and updates at the water treatment plant brought more than 1,500 jobs to the Metro East region. All construction work was completed by union contractors and employees. 

The East St. Louis water treatment plant is an award-winning member of the Partnership for Safe Water. This national recognition is given to fewer than 150 water treatment plants in the United States. The Partnership is a national voluntary initiative developed by U.S. Environmental Protection Agency (EPA) and other water organizations to recognize water suppliers that consistently achieve water treatment standards that go above and beyond EPA regulatory requirements. As a member of the program, water utilities pledge to continually improve their treatment operations and undergo a rigorous review that includes a four-phase self-assessment and peer-review process.

About American Water 
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water's 6,700 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About Illinois American Water
Illinois American Water, a subsidiary of American Water (NYSE:AWK), is the largest regulated water utility in the state, providing safe, clean, and reliable water and wastewater services to approximately 1.3 million people. American Water also operates a quality control and research laboratory in Belleville.

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SOURCE American Water

FAQ

What upgrades did Illinois American Water (AWK) finish at the East St. Louis plant in December 2025?

Completed upgrades include new elevated storage, raw water pumps with VFDs, a diesel high‑service backup pump, two clear wells, a new UV treatment system, chemical feed conversion to liquid, and enhanced security.

How much has Illinois American Water (AWK) invested in the Metro East plant since 2019?

The company invested $157 million in major upgrades and enhancements from 2019 through 2025.

How many customers and what water demand does the AWK Metro East plant serve?

The plant serves about 75,000 metered customers (over 350,000 people) with average daily demand ~39.3 million gallons and maximum daily demand ~47.70 million gallons.

What does the new ultraviolet system at the AWK East St. Louis plant do for water quality?

The UV system provides an additional, chemical‑free treatment step that deactivates bacteria, viruses, and other pathogens in surface water.

Did the Metro East plant upgrades create local jobs and when were they completed?

Yes; the construction projects generated more than 1,500 jobs in the Metro East region and were completed in 2025.