Connect with us

Infra

Illinois American Water Secures $557M Infrastructure Plan, $110M Revenue Boost in Rate Case Victory | AWK Stock News

Published

5 days ago

on

Illinois American Water Secures 7M Infrastructure Plan, 0M Revenue Boost in Rate Case Victory | AWK Stock News





Illinois American Water received approval from the Illinois Commerce Commission for new water and wastewater base rates, effective January 1, 2025. The change is driven by $557 million in capital investments planned for 2024-2025, including $421 million for water infrastructure and $136 million for wastewater systems.

The approved increase will result in a $110.6 million annualized revenue increase. Projects include replacing 44 miles of aging pipelines, upgrading treatment plants, and improving storage tanks, wells, pumping stations, and fire hydrants. Typical residential customers will see monthly increases of approximately $16 for water service and $8.50 for wastewater service. The company is also expanding its income-based discount tariff for eligible customers.

Illinois American Water ha ricevuto l’approvazione dalla Commissione per il Commercio dell’Illinois per nuove tariffe base per l’acqua e le acque reflue, che entreranno in vigore il 1° gennaio 2025. Questa modifica è motivata da 557 milioni di dollari in investimenti in capitale previsti per il 2024-2025, inclusi 421 milioni di dollari per le infrastrutture idriche e 136 milioni di dollari per i sistemi di acque reflue.

L’aumento approvato porterà a un incremento annuale dei ricavi di 110,6 milioni di dollari. I progetti includono la sostituzione di 44 miglia di tubazioni obsolete, l’aggiornamento degli impianti di trattamento e il miglioramento dei serbatoi, dei pozzi, delle stazioni di pompaggio e degli idranti. I clienti residenziali tipici vedranno aumenti mensili di circa 16 dollari per il servizio idrico e 8,50 dollari per il servizio delle acque reflue. L’azienda sta anche espandendo la sua tariffa di sconto basata sul reddito per i clienti idonei.

Illinois American Water recibió la aprobación de la Comisión de Comercio de Illinois para nuevas tarifas base de agua y aguas residuales, que entrarán en vigor el 1 de enero de 2025. El cambio está impulsado por 557 millones de dólares en inversiones de capital previstas para 2024-2025, que incluyen 421 millones de dólares para infraestructura de agua y 136 millones de dólares para sistemas de aguas residuales.

El aumento aprobado resultará en un incremento de ingresos anualizado de 110,6 millones de dólares. Los proyectos incluyen la sustitución de 44 millas de tuberías envejecidas, la actualización de plantas de tratamiento y la mejora de tanques de almacenamiento, pozos, estaciones de bombeo e hidrantes. Los clientes residenciales típicos verán aumentos mensuales de aproximadamente 16 dólares por el servicio de agua y 8,50 dólares por el servicio de aguas residuales. La compañía también está expandiendo su tarifa de descuento basada en ingresos para clientes elegibles.

일리노이 아메리칸 워터는 일리노이 상무위원회로부터 2025년 1월 1일부터 시행되는 새로운 수도 및 하수도 기본 요금 승인서를 받았습니다. 이 변경은 2024-2025년 동안 계획된 5억 5천7백만 달러의 자본 투자에 의해 추진됩니다. 이 투자에는 4억 2천1백만 달러가 수도 인프라와 1억 3천6백만 달러가 하수도 시스템에 포함됩니다.

승인된 인상은 연간 1억 1천6백만 달러의 수익 증가로 이어질 것입니다. 프로젝트에는 노후된 파이프라인 44마일 교체, 소화 처리장 업그레이드, 저장탱크, 우물, 펌핑역 및 소화전 개선이 포함됩니다. 일반 가정 고객은 수도 서비스에 대해 월 약 16달러의 인상과 하수도 서비스에 대해 8.50달러의 인상을 경험하게 됩니다. 이 회사는 자격이 있는 고객을 위한 소득 기반 할인 요금도 확대하고 있습니다.

Illinois American Water a reçu l’approbation de la Commission du Commerce de l’Illinois pour de nouveaux tarifs de base pour l’eau et les eaux usées, qui entreront en vigueur le 1er janvier 2025. Ce changement est motivé par 557 millions de dollars d’investissements en capital prévus pour 2024-2025, dont 421 millions de dollars pour l’infrastructure hydraulique et 136 millions de dollars pour les systèmes d’eaux usées.

L’augmentation approuvée entraînera une augmentation des revenus annualisés de 110,6 millions de dollars. Les projets comprennent le remplacement de 44 miles de tuyaux vieillissants, la modernisation des stations de traitement et l’amélioration des réservoirs, des puits, des stations de pompage et des bouches à incendie. Les clients résidentiels typiques verront des augmentations mensuelles d’environ 16 dollars pour le service d’eau et 8,50 dollars pour le service d’eaux usées. L’entreprise élargit également son tarif de remise basé sur le revenu pour les clients éligibles.

Illinois American Water erhielt die Genehmigung der Illinois Commerce Commission für neue Basispreise für Wasser und Abwasser, die am 1. Januar 2025 in Kraft treten. Die Änderung wird durch 557 Millionen Dollar an geplanten Investitionen in das Kapital für die Jahre 2024-2025 motiviert, einschließlich 421 Millionen Dollar für die Wasserinfrastruktur und 136 Millionen Dollar für Abwassersysteme.

Die genehmigte Erhöhung wird zu einem jährlichen Umsatzanstieg von 110,6 Millionen Dollar führen. Zu den Projekten gehören der Austausch von 44 Meilen alter Rohrleitungen, die Sanierung von Kläranlagen und die Verbesserung von Lagertanks, Brunnen, Pumpstationen und Hydranten. Typische Haushaltskunden werden monatliche Erhöhungen von etwa 16 Dollar für den Wasserdienst und 8,50 Dollar für den Abwasserdienst erleben. Das Unternehmen erweitert auch seine einkommensabhängige Rabatttarifstruktur für berechtigte Kunden.

Positive


  • Secured regulatory approval for $110.6 million revenue increase


  • Major infrastructure investment of $557 million approved for 2024-2025


  • Expansion of income-based discount tariff program approved


Negative


  • Significant rate increase for customers: $16/month for water, $8.50/month for wastewater


  • Substantial capital expenditure requirements of $557 million over two years


Insights



The ICC’s approval of $110.6 million in annualized revenue increase for Illinois American Water represents a significant development for AWK’s financial outlook. The $557 million capital investment program, split between $421 million for water and $136 million for wastewater infrastructure, demonstrates a substantial commitment to system upgrades. The monthly rate increases of $16 for water and $8.50 for wastewater services provide a predictable revenue stream to support these investments. This regulatory approval is particularly important as it allows for cost recovery and maintains the utility’s financial health while funding critical infrastructure improvements. The expanded income-based discount tariff, while socially responsible, has been structured to maintain revenue stability.


The approved infrastructure investment plan addresses critical needs across Illinois American Water’s system, including 44 miles of pipeline improvements. The comprehensive scope encompasses essential upgrades to treatment plants, storage tanks, wells, pumping stations and fire hydrants, positioning the utility to enhance service reliability and meet regulatory requirements. The lead service line replacement initiative aligns with growing environmental and public health priorities. The two-year implementation timeline (2024-2025) represents an aggressive but achievable capital deployment schedule. These improvements should significantly reduce system vulnerabilities, lower maintenance costs and improve operational efficiency.












Increase Driven by Approximately $557 Million in System Investments

BELLEVILLE, Ill.–(BUSINESS WIRE)–
The Illinois Commerce Commission (ICC) issued an order Thursday approving new water and wastewater base rates for Illinois American Water, driven primarily by $557 million in capital investments in 2024 and 2025. The rate change request was filed on January 25, 2024.

“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,” said Rebecca Losli, Illinois American Water president.

The new rates will be effective January 1, 2025. The approved increase will result in a total annualized revenue increase of approximately $110.6 million and will support continued investment in critical water and wastewater infrastructure throughout the state, including the replacement, lining and installation of approximately 44 miles of aging water and wastewater pipelines. Investments also include upgrading water and wastewater treatment plants to maintain and meet regulatory compliance, storage tanks, wells, pumping stations, fire hydrants, meters and manholes across the state and ongoing replacement of customer lead service lines.

The rate order covers $421 million in water system infrastructure improvements and $136 million in wastewater system infrastructure improvements to be made over two years, from January 2024 to December 2025.

The amount of the rate change customers will experience will vary among the company’s operating districts. The monthly water service bill for the typical residential customer using 3,500 gallons per month with a 5/8-inch meter will increase approximately $16 per month and the typical residential wastewater bill will increase approximately $8.50 per month.

In addition, the ICC approved Illinois American Water’s request to expand the income-based discount tariff. Qualifying income-eligible customers will need to apply for the discount and provide the required income information when the expanded program is implemented.

Information about the program will be communicated to customers. Illinois American Water also offers customer assistance through the company’s non-income-based H2O Help to Others program, payment plans and budget billing. More information can be found on the company’s website here.

Customers will receive information about the new rates on their Illinois American Water bill. Information will also be available on the company’s website at amwater.com/ilaw, under Customer Service & Billing, Your Water and Wastewater Rates.

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 6,500 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, providing high-quality and reliable water and wastewater services to approximately 1.4 million people. American Water also operates a quality control and research laboratory in Belleville.

AWK-IR

MEDIA

Anna Kubas

Senior Manager, External Communications

Illinois American Water

Anna.Kubas@amwater.com

Source: Illinois American Water








FAQ



When will Illinois American Water’s (AWK) new rates take effect?


The new rates will take effect on January 1, 2025.


How much will Illinois American Water’s (AWK) residential water bills increase?


Typical residential customers using 3,500 gallons per month will see an increase of approximately $16 per month for water service and $8.50 per month for wastewater service.


How much is Illinois American Water (AWK) investing in infrastructure for 2024-2025?


The company is investing $557 million in total, with $421 million for water infrastructure and $136 million for wastewater system improvements.


What is the approved revenue increase for Illinois American Water (AWK)?


The Illinois Commerce Commission approved an annualized revenue increase of approximately $110.6 million.





Related Topics:
Continue Reading