Consumer advocacy groups are asking the Illinois Commerce Commission to cut Illinois American Water’s proposed $142.4 million rate hike by 38%, arguing the company is seeking exorbitant profits while thousands of households are already behind on their bills.

The Illinois Attorney General’s office and groups including the Citizens Utility Board are seeking a $54 million reduction to the proposal, according to filings with the ICC, which is set to rule on the request later this year. CUB estimates the rate hike could bump water bills by an average of $168 per year for residential water customers and $336 per year for wastewater customers.

The groups argue that Illinois American’s request for an increased return on investment for its shareholders — 10.75%, the same figure the ICC reduced by nearly a full percentage point in its last rate case — is driving the rising costs. They say the figure is overinflated by $30.8 million, particularly given that IAW’s parent company has recorded more than $1 billion in profit each of the last two years. As of April, nearly 47,000 households were already behind on their Illinois American Water bills, totaling more than $8 million, according to ICC data.

“The fact that the current return on investment is not enough for them already is troubling,” said Eric DeBellis, general counsel for CUB. The company attributed the rate increase request to the cost of “replacing aging pipes, upgrading treatment facilities, improving storage and pumping systems, and meeting evolving regulatory requirements.”

Beyond the rate hike, Illinois American and Aqua Illinois have proposed an acquisition that would consolidate the two largest private water utility providers in the state under one roof. CUB says the consolidation of water utilities has added $411 million to Illinois water bills since 2013. If the acquisition is approved, it would leave roughly 800 private residential water customers outside Illinois American’s jurisdiction — an effective monopoly for water and a complete monopoly for wastewater, according to CUB.

“It would make one large private utility in the state,” said Bryan McDaniel, CUB’s director of governmental affairs. “They’re buying all these systems, there’ll be no competition, just one big monopoly.” Data from Aqua Illinois in ICC filings show a 77% increase in unplanned disruptions from 2022 to 2025.