Illinois American Water: Rate increases to help fund wastewater treatment projects in Sterling

STERLING – Illinois American Water customers, including Sterling residents, can expect to pay more for their water and sewer services in 2025.

The Illinois Commerce Commission on Dec. 6 approved a rate increase for American Water’s sewer and water services, resulting in an overall $110 million increase. Illinois American Water provides water and sewer service to about 383,000 customers in 148 communities across Illinois.

The rate increase will go into effect Jan. 1 and will vary by district, with typical residential customers using 3,500 gallons per month, with a 5/8-inch meter seeing a $16 monthly increase for water and an $8.50 increase for wastewater services.

The rate order authorizes $421 million for upgrades to water system infrastructures and $136 million for improvements to wastewater systems throughout Illinois, with work scheduled to take place before December 2025.

“By making prudent, ongoing necessary investments to maintain and upgrade our water and wastewater systems, Illinois American Water is committed to the safety and reliability of our water and wastewater systems in the communities we serve,” American Water President Rebecca Losli said.

For Sterling, those upgrades include a new booster station generator, improvements to the radium-removal treatment process and a transition from using chlorine gas to liquid chlorine at the East Water Treatment Plant.

American Water spokesperson Anna Kubas said those Sterling projects are estimated to be completed in 2025.

“Improvements to radium removal at the East Water Treatment Plant will improve the water quality of the community,” Kubas said. “Switching to liquid chlorine increases the safety in terms of delivery and storage for our workers, and the new booster station generator will improve the reliability of water service, specifically in the east end of the community.”

American Water also plans to expand its current low-income discount program for customers whose incomes reach 300% of the federal poverty level beginning July 1. The expansion provides a 10% to 80% monthly total bill credit for eligible customers who can sign up directly through American Water.

“Illinoisans should have access to clean, safe and affordable water and wastewater service, regardless of their income,” ICC Chairman Doug Scott said. “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 ICC issued its decision after reviewing American Water’s rate case filing, along with testimony, exhibits and other materials from the utility, ICC staff and intervenors over an 11-month process. This is meant to ensure utilities get the funding needed for safe and reliable service while protecting customers from unreasonable rates, according to a news release. Per the Illinois Public Utilities Act, utility costs can only be recovered if they are proven to be just, reasonable and carefully incurred.

“Based on the commission’s recent cases and evidence across the country, it seems clear that significant investment is needed to bring our water systems up to current health and safety standards,” ICC Commissioner Stacey Paradis said. “Improved infrastructure will have long-term positive impacts on Illinois’ water and wastewater services. While this comes with an immediate short-term cost, the commission came to this decision with great consideration, not only for what is reasonable and prudent but for how best to move Illinois forward.”

The effect of the rate case decision on each customer will depend on their service class and water consumption. Customers will receive information about the new rates on their American Water bill. That information also is available at amwater.com/ilaw, under Customer Service and Billing, Your Water and Wastewater Rates.

For information regarding the rate case, go to icc.illinois.gov/docket/P2024-0097.