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CUB Q&A: The Low-Income Discount Rate (LIDR) program for private water customers

In late 2024, the Illinois Commerce Commission (ICC) approved a low-income discount rate (LIDR) for eligible customers of Illinois’ private water companies, Aqua Illinois and Illinois American Water. The program was launched in July of 2025.

Who qualifies for the LIDR?
To be considered for the low-income discount rate program…

  • Aqua Illinois customers must have a pre-tax, household income at or below 150 percent of the Federal Poverty Level (FPL, also called the Federal Poverty Income Guidelines, or FPIG).
  • Illinois American Water customers must have a pre-tax, household income at or below 300 percent of the FPL.

To see if your household’s pre-tax income meets your utility’s required FPL for the LIDR program, use the Dollar Energy Fund’s Income Calculator. Dollar Energy is the administrator of both the Aqua Illinois and Illinois American Water LIDR programs.

PLEASE NOTE: Customers who receive Low Income Home Energy Assistance Program (LIHEAP) benefits (for households that are at or below 60 percent of the state median income) may also qualify for this discount program. Confirm if you qualify for both programs. 

How much of a discount is provided through the LIDR program?
The discounts offered differ by utility because the cost of service differs for each company.

  • For qualifying Aqua Illinois customers, the LIDR program provides a discount of 70 percent off the customers’ monthly volumetric charges (all usage).
  • For qualifying Illinois American Water customers, the LIDR provides discounts that range from 10 percent to 80 percent off the customer’s total monthly water and wastewater bill. The amount of the discount is dependent upon the tier in which the customer’s household’s pre-tax income falls in the FPL, as outlined below:
Illinois American LIDR Program Percent of Federal Poverty Income Guideline (FPIG) Percent Discount
Tier 1 0 – 50% 80%
Tier 2 51% – 100% 65%
Tier 3 101% – 150% 40%
Tier 4 151% – 300% 10%

How can customers apply?
You may apply online or via phone with the programs’ administrator, Dollar Energy. Please be sure to have your income information available at the time of application. Proof of income will be required of all applicants.

Online: Use Dollar Energy’s online application.
Phone: Call Dollar Energy’s Contact Center at 1-888-282-6816 | 7 a.m. – 4 p.m. CST, Monday – Friday.

Please note: Once enrolled, customers will be required to recertify their number of household members and income information annually to remain enrolled in the program.

How is the LIDR funded?
The LIDR is funded by a charge on the bills of all residential, commercial and industrial customers, including those who receive the discount.

Are there discounted rates for other utility services?
Yes. There are LIDR programs available for qualified customers of Illinois’ investor-owned gas utilities: Ameren Illinois (gas), Nicor Gas, North Shore Gas and Peoples Gas. LIDR programs for Commonwealth Edison and Ameren Illinois electric customers are not currently available, but they will be launched in the future.  ComEd’s program is scheduled to be launched in January of 2026. CUB will update you when we have full information.

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