Illinois American Water Files Rate Request Driven by Approximately $577 Million in Investments to Provide Safe, Clean, Reliable and Affordable Service

Illinois American Water (NYSE:AWK) filed a rate request with the Illinois Commerce Commission on Jan 27, 2026 to support approximately $577 million of water and wastewater investments from January 2026 through December 2027.

Rhea-AI Summary

Illinois American Water (NYSE:AWK) filed a rate request with the Illinois Commerce Commission on Jan 27, 2026 to support approximately $577 million of water and wastewater investments from January 2026 through December 2027. The proposal funds replacement of 42 miles of pipeline, upgrades to tanks, wells, pumps, hydrants, meters, wastewater plants, lead service line replacement and PFAS-related treatment improvements. If approved, typical residential water customers using 3,500 gallons would pay about $14/month more and typical sanitary wastewater customers would pay about $28/month more, with new rates proposed to take effect in January 2027.

The filing includes a discounted allowance for the first 2,000 gallons to improve affordability and notes customer-assistance programs for income-eligible households.

Positive

• Planned $577M investments in 2026–2027 for system modernization
• Replacement of 42 miles of aging water and wastewater pipeline
• Inclusion of lead service line replacements and PFAS treatment upgrades
• Proposed 2,000-gallon discounted allowance to ease low-consumption bills

Negative

• Proposed typical residential water bill increase of about $14/month for 3,500 gallons
• Proposed typical sanitary wastewater bill increase of about $28/month for 3,500 gallons
• Rate changes subject to ICC approval after up to an 11-month review process

Argus Jan 28 session

-2.67% close to close Open Argus

Details

News Market Reaction – AWK

On Jan 28, the first trading day after this news, AWK closed 2.67% below the previous close.

Data tracked by StockTitan Argus for the Jan 28 session.

Key Figures

Planned IL investments: $577 million Customers served: 1.3 million people Communities served: 148 communities +5 more

Planned IL investments

$577 million

Water and wastewater systems, Jan 2026–Dec 2027

Customers served

1.3 million people

Illinois American Water service footprint

Communities served

148 communities

Illinois American Water service areas

Pipeline replacement

42 miles

Aging water and wastewater pipeline

Typical water bill increase

$14 per month

3,500 gallons residential use, if ICC approves

Typical wastewater bill increase

$28 per month

3,500 gallons sanitary wastewater, if ICC approves

Discounted usage tier

2,000 gallons

Residential water billed at discount rate under proposal

ICC review period

11 months

Illinois Commerce Commission rate case review

Historical Context

5 past events · Latest: Jan 23

5 events

1. Jan 23

   Storm preparedness

   24h Move

   -1.4%

   New Jersey American Water prepared systems and customers for a major winter storm.

2. Jan 22

   Customer guidance

   24h Move

   -1.4%

   Iowa American Water advised customers on protecting plumbing during extreme cold.

3. Jan 22

   Funding award

   24h Move

   +0.4%

   Pennsylvania American Water received over $6.18M PENNVEST funding for two projects.

4. Jan 21

   Plant investment

   24h Move

   -0.3%

   California American Water invested $6M in a treatment plant to meet CrVI standards.

5. Jan 20

   Water storage

   24h Move

   -0.3%

   California American Water expanded Aquifer Storage and Recovery to boost future supplies.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

pfas

1 terms

pfas medical

"including emerging contaminants such as PFAS in drinking water."

PFAS are a group of human-made chemicals used in many everyday products, such as non-stick cookware, water-repellent clothing, and food packaging, because they resist heat, water, and grease. They are often called "forever chemicals" because they do not break down easily in the environment or the human body, potentially leading to health concerns. For investors, the presence of PFAS-related risks can impact companies’ reputations, legal liabilities, and future costs.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Request supports continued infrastructure investments in water and wastewater systems that serve more than 1.3 million people in 148 Illinois communities

BELLEVILLE, Ill., Jan. 27, 2026 /PRNewswire/ -- Illinois American Water today filed a request with the Illinois Commerce Commission (ICC) for new rates to support approximately $577 million in water and wastewater system investments from January 2026 through December 2027. The request 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.

"We carefully and strategically plan and invest in our water and wastewater systems," said Rebecca Losli, President of Illinois American Water. "These investments directly benefit the communities we proudly serve and provide our customers with even more reliable service and improved water quality—from treatment to the tap. It underscores our employees' commitment to the health and safety of our customers and the communities we serve."

The proposed rate change will support the company's plans to invest approximately $577 million through 2027 to modernize and strengthen its water and wastewater systems in communities across Illinois. These investments will include the replacement of 42 miles of aging water and wastewater pipeline, upgrading of storage tanks, wells, pumping stations, hydrants, meters and wastewater plants, as well as ongoing replacement of lead service lines and improvements to treatment facilities to address regulatory requirements, including emerging contaminants such as PFAS in drinking water.

Under the company's proposal, if approved, the typical residential water customer using 3,500 gallons of water would see an increase of approximately $14 per month, depending on the service area. Typical customers served by sanitary wastewater systems using 3,500 gallons of water would see an increase of approximately $28 per month.

Part of the company's proposal to the ICC includes a modified allowance rate for residential water users to help alleviate financial pressures on low consumption customers and increase affordability. Under the proposal, residential water rates would be billed at a discount rate for the first 2,000 gallons of water.

Illinois American Water remains committed to affordability and offers programs to assist income-eligible customers, including its H2O Help to Others assistance program, budget billing options and flexible payment plans. More details can be found on our Customer Assistance Programs webpage.

To learn more about Illinois American Water's rate filing and the regulatory process behind it, visit amwater.com/ilaw/Customer-Service-Billing/Your-Water-and-Wastewater-Rates. For details on infrastructure investments in your community—including upgrades to treatment plants, water mains and service lines—explore its Infrastructure Investment page.

The rate request is the first step in a thorough 11-month ICC review process. 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.

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, is the largest regulated water utility in the state, with over 600 dedicated employees working to provide safe, clean and reliable and affordable water and wastewater services to approximately 1.3 million people. American Water also operates a quality control and research laboratory in Belleville.  

AWK-IR 

View original content to download multimedia:https://www.prnewswire.com/news-releases/illinois-american-water-files-rate-request-driven-by-approximately-577-million-in-investments-to-provide-safe-clean-reliable-and-affordable-service-302671734.html

SOURCE American Water

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What rate change did Illinois American Water (AWK) request on Jan 27, 2026?

AWK filed for new rates to fund about $577 million in water and wastewater investments through December 2027.

How much would a typical AWK residential water customer pay more per month if approved?

A typical residential water customer using 3,500 gallons would see an increase of about $14 per month, depending on service area.

When would AWK’s new rates take effect if the ICC approves the filing?

If approved by the Illinois Commerce Commission, the new rates are proposed to take effect in January 2027.

What major infrastructure work does AWK’s $577M proposal cover?

The proposal covers replacement of 42 miles of pipeline, upgrades to tanks, wells, pumps, hydrants, meters, wastewater plants, and lead line replacements.

Does the AWK rate filing include affordability measures for low-consumption customers?

Yes; the filing proposes a discounted billing allowance for the first 2,000 gallons of residential water to help affordability.

How can Illinois customers participate in the ICC review of AWK’s rate request?

Customers can submit written comments, attend ICC public input hearings, and engage through consumer advocacy organizations during the review.