Illinois American Water filed a rate increase request in January, which would raise average residential water bills by $14 a month if approved by the Illinois Commerce Commission. Illinois American is the exclusive supplier of water to the cities of Champaign and Urbana, and it serves over 1 million customers in the state.
The rate increase would go toward funding Illinois American’s plans “to invest approximately $577 million through 2027 to modernize and strengthen its water and wastewater systems in communities across Illinois,” according to its press release.
The request is the first step in an 11-month ICC approval process, and the new rates would take effect in January 2027 if passed. The rate increase would be Illinois American’s fourth in the last decade, according to a press release from the Citizens Utility Board, a consumer watchdog organization created by the Illinois General Assembly.
“It is outrageous that Illinois American Water wants yet another rate hike,” wrote Sarah Moskowitz, executive director of CUB, in the release. “CUB will challenge this money-grab, and we will continue to work in Springfield for legislative reforms (Senate Bill 75) to stop Illinois American from plundering customers.”
Senate Bill 75, the Water Affordability & Accountability Act, would eliminate a “Qualifying Infrastructure Plant” fee from water bills — an additional surcharge to fund aging infrastructure — among other initiatives. CUB added that Illinois American made more than $1 billion in profit in 2024, and its customers have complained about “excessive water bills” for years.
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Isabel Szpunar, senior in LAS, paid $82.23 for 3,665 gallons of water in November 2025 to Illinois American for her campus apartment. With the potential rate increase, her bill would be almost 18% higher at $96.89, based on typical customer data from Illinois American’s press release.
“I’m not happy, of course,” Szpunar said of the possible increase. “Luckily, since I’m splitting everything with my two roommates, I’m personally not going to see a huge difference.”
Szpunar added she was unsurprised by Illinois American wanting to increase prices, yet is largely indifferent to the subject matter.
“I’ve only been living on my own for a couple of years (so) I don’t think I have super strong feelings,” Szpunar said. “In the future, when I’m living on my own … I would definitely have more stake.”
The University, like the cities of Champaign and Urbana, relies entirely on Illinois American for its potable water supply. However, the school owns and maintains its own distribution system on campus, according to Robert Roman, director of utilities & energy services for the University.
“The system is supplied by Illinois American Water through five separate delivery points,” Roman wrote in an email statement to The Daily Illini. “Any cost increase would be reviewed by university leadership and considered in relation to anticipated operational impacts.”
Alma Sealine, executive director of University housing, explained the role utility costs play in increasing prices for students, such as the 5% increase in University housing rates approved in January.
“Utility costs, including water, are always a factor,” Sealine wrote in an email statement to The DI. “For FY27, utility increases accounted for .91% of the 5% rate increase requested and approved by the (University of Illinois Board of Trustees).”
As part of the ICC review process, consumer advocacy organizations can provide input at public hearings. One such group is Illinois Industrial Energy Consumers, a customer advocacy organization of more than 20 of the largest energy users in the state.
According to its chairman, Phillip Golden, the IIEC will evaluate Illinois American’s rate increase request and decide whether to get involved.
“When we have intervened in water rate cases in the past, it is to protect an affordable, reliable, clean and sustainable water supply for all Illinois citizens and businesses,” Golden wrote in an email statement to The DI.
Customers can get involved in the process by attending public hearings and through written statements.
Part of Illinois American’s proposal includes discount rates for the first 2,000 gallons billed, “to help alleviate financial pressures on low consumption customers and increase affordability.” Illinois American also offers payment plans for eligible low-income customers, such as its H2O Help to Others program.
“Illinois American Water remains committed to affordability and offers programs to assist income-eligible customers,” Illinois American wrote in its press release.
