Illinois American Water, A Subsidiary Of American Water, Files Rate Request Driven By $557M In Future Investments
Portfolio Pulse from Benzinga Newsdesk
Illinois American Water, a subsidiary of American Water (AWK), has filed a rate request with the Illinois Commerce Commission (ICC) for $557 million in water and wastewater system investments through 2025. The investments aim to replace aging infrastructure and comply with environmental regulations, ensuring reliable and safe water services. The request includes $421 million for water and $136 million for wastewater improvements. If approved, residential water bills could increase by $24/month, and wastewater by $5/month. The company also proposes expanding its Income-Based Discount program to assist more customers.
January 25, 2024 | 9:44 pm
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American Water's subsidiary, Illinois American Water, has filed for a rate increase to fund infrastructure investments. If approved, this could lead to higher revenues from increased water and wastewater bills.
The rate request by Illinois American Water indicates a proactive approach to infrastructure investment, which is likely to be viewed positively by investors as it can lead to improved service reliability and compliance with regulations. The potential increase in revenue from higher service bills could positively impact American Water's financial performance in the short term. However, the impact is moderated by the fact that the rate increase is not yet approved and would only take effect in early 2025.
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