{"id":25205,"date":"2020-04-28T10:12:39","date_gmt":"2020-04-28T15:12:39","guid":{"rendered":"https:\/\/www.citizensutilityboard.org\/?page_id=25205"},"modified":"2025-07-16T06:29:37","modified_gmt":"2025-07-16T11:29:37","slug":"water-privatization-in-illinois","status":"publish","type":"page","link":"https:\/\/www.citizensutilityboard.org\/water-privatization-in-illinois\/","title":{"rendered":"Tracking Illinois&#8217; Water Privatization"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row full_width=&#8221;stretch_row&#8221; parallax=&#8221;content-moving&#8221; css=&#8221;.vc_custom_1633452855370{padding-top: 75px !important;padding-bottom: 75px !important;background: #5e5e5e url(https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2020\/04\/faucet-running-water-shutterstock_153406115-e1588099004967.jpg?id=25240);background-position:center;background-repeat:-repeat !important;background-size: cover !important;}&#8221;][vc_column][vc_column_text]<\/p>\n<h1 style=\"text-align: center;\"><span style=\"font-size: 36pt; font-family: 'arial black', sans-serif; color: #ffffff; background-color: #5aa1e3;\">\u00a0Big Profits, Big Bills:\u00a0<\/span><\/h1>\n<h1 style=\"text-align: center;\"><span style=\"font-size: 36pt; font-family: 'arial black', sans-serif; color: #ffffff; background-color: #5aa1e3;\">\u00a0Tracking Illinois&#8217; Water Privatization\u00a0<\/span><\/h1>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Over the past several years, private water utilities Illinois American Water and Aqua Illinois have been busy buying up depreciated water and wastewater systems across the state. These for-profit companies have purchased 61 systems since 2013, when state legislators passed a law that allows these water utilities to pass acquisition costs\u2014<strong>$411.5 million and counting<\/strong>\u2014onto their customers.<\/p>\n<p>\u201cThe amount we pay for water and sewer services is unreasonable,\u201d one person complained to the Illinois Commerce Commission. \u201cI feel we are being held hostage by Illinois American Water Company.\u201d<\/p>\n<p>Ratepayers may be unsatisfied with the new private owners of their systems, but as of now, the law leaves them without a voice in determining if or when their water system is privatized. With this site, we hope to give you information about water privatization in Illinois and what you can do about it.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;2\/3&#8243;][vc_tta_tabs color=&#8221;sky&#8221; active_section=&#8221;1&#8243;][vc_tta_section title=&#8221;Which Systems Are They Acquiring?&#8221; tab_id=&#8221;1588694048509-3830d739-5c22&#8243;][vc_column_text]Explore this graphic to\u00a0navigate through the approved and pending Illinois American and Aqua Illinois system acquisitions across Illinois since 2013\u2014when Illinois lawmakers passed the\u00a0Illinois Water Systems Viability Act. Hover over the pins to learn more.<\/p>\n<div><strong>Sales approved:<\/strong> 61<\/div>\n<div><strong>Purchase Costs Paid by Consumers:<\/strong> $411.5 million<\/div>\n<p>[\/vc_column_text][vc_raw_html]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[\/vc_raw_html][\/vc_tta_section][vc_tta_section title=&#8221;Why Are Communities Selling Their Systems?&#8221; tab_id=&#8221;1588710780743-db3f6898-d044&#8243;][vc_column_text]When faced with the decision to privatize, small municipalities are often stuck navigating the city&#8217;s short-term financial solvency, their constituents&#8217; utility bills and the community&#8217;s health and safety.<\/p>\n<p>Sell, and the community gets an influx of extra revenue from the sale, but ratepayers often end up with higher bills.\u00a0According to data released in a <strong><a href=\"https:\/\/graphics.chicagotribune.com\/news\/lake-michigan-drinking-water-rates\/index.html\" target=\"_blank\" rel=\"noopener noreferrer\">2017 Chicago Tribune expose<\/a><\/strong>,\u00a0Illinois American and Aqua Illinois were slapping Chicagoland customers with rates <em>20 to 70 percent higher<\/em> than the rates of publicly-managed water systems using the same Lake Michigan water. Although keeping a system municipally-owned does not mean there will never be a rate increase, public water is cheaper in the long run, especially when private profit is involved.<\/p>\n<p>But if local governments want to keep the system public, the municipality (read, ratepayers) has to fork out money to pay for expensive system upgrades and maintenance on a depreciating water system. According to a 2017 report from the American Society of Civil Engineers, most of the water pipes across the US were installed in the early- to mid-20th century, and their time is almost up; the pipes were projected to last about 75 to 100 years.<\/p>\n<p>Cue Illinois American and Aqua Illinois: Private takeover of water systems has become a popular option for municipalities staring down a list of necessary and expensive system upgrades. These companies take on all responsibility for keeping the systems in line with federal and state mandates after the sale.\u00a0For example,\u00a0Alton, a Metro East city of about 30,000, sold its wastewater system to Illinois American after the Environmental Protection Agency mandated an expensive undertaking\u2014sewer and storm drain separation\u2014to be completed in the next 6 years.<\/p>\n<p>But don&#8217;t be fooled. These companies may take responsibility for your system&#8217;s upkeep (they love touting their strict &#8220;regulatory compliance&#8221;), but they don&#8217;t always act responsibly.<\/p>\n<p>In 2019, University Park \u2014\u200awhose water system is run by Aqua\u200a\u2014\u200adetected unacceptable levels of brain-damaging lead in their drinking supply. Three years later, some traumatized residents still didn&#8217;t trust Aqua and were continuing to choose bottled water, <strong><a href=\"https:\/\/wgntv.com\/news\/wgn-investigates\/three-years-later-drinking-water-frustrations-still-flowing-in-university-park\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/wgntv.com\/news\/wgn-investigates\/three-years-later-drinking-water-frustrations-still-flowing-in-university-park\/&amp;source=gmail&amp;ust=1688853119795000&amp;usg=AOvVaw2QAUGg081oBMLw_la6bsSl\">according to a TV report. <\/a><\/strong>[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;How Much Are Aqua and Illinois American Spending?&#8221; tab_id=&#8221;1588694048784-1f2ab208-af47&#8243;][vc_column_text]Illinois American has spent $290.8 million on new system acquisitions since 2013, and Aqua Illinois has spent $120.7 million, according to data compiled from the Illinois Commerce Commission (ICC). So where did these for-profit water utilities spend a combined $411.5 million? Below is a breakdown of all Illinois American and Aqua acquisitions since 2013, the largest being Granite City&#8217;s wastewater system for over $86 million. NOTE: These numbers include the legal costs the company spent on the acquisitions.<\/p>\n<p>Hover over a slice of either pie chart to see how much either utility paid for the municipal system.<\/p>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/10808554\/embed#?secret=7gNq5knRol\" data-secret=\"7gNq5knRol\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"680\"><\/iframe><\/p>\n<p>https:\/\/public.flourish.studio\/visualisation\/14476159\/[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;What Are These Private Companies Worth?&#8221; tab_id=&#8221;1588694048930-53592618-6800&#8243;][vc_column_text]Essential Utilities (parent company of Aqua Illinois) <strong><a href=\"https:\/\/www.essential.co\/news-releases\/news-release-details\/essential-utilities-reports-financial-results-full-year-2024\" target=\"_blank\" rel=\"noopener\">reported 2024 net income<\/a> of\u00a0<em>$595.3 million<\/em><\/strong>.<\/p>\n<p>Illinois American\u2019s parent company, American Water <strong><a href=\"https:\/\/ir.amwater.com\/news-and-events\/financial-releases\/financial-release-details\/2025\/American-Water-Reports-2024-Results-on-Track-Affirms-Long-Term-Growth-Targets-CEO-Hardwick-to-Retire-in-May-Griffith-to-Assume-CEO-Role\/\" target=\"_blank\" rel=\"noopener\">reported a 2024 net income<\/a> of <em>$1.1 billion<\/em><\/strong>.[\/vc_column_text][vc_raw_html][\/vc_raw_html][vc_raw_html][\/vc_raw_html][\/vc_tta_section][vc_tta_section title=&#8221;Are Private Utilities Allowed To Do This?&#8221; tab_id=&#8221;1588694049208-955c0e9a-f664&#8243;][vc_column_text]Passed in 2013, the\u00a0Illinois Water Systems Viability Act allowed Aqua Illinois and Illinois American Water to impose automatic rate hikes to finance municipal water system acquisitions,\u00a0by up to 2.5 percent for one acquisition, or a total of 5 percent for multiple acquisitions,\u00a0between rate cases.\u00a0Just five years later,\u00a0then <a href=\"https:\/\/citizensutilityboard.org\/cub-reaction-to-gov-rauners-signing-of-hb-4508-bad-water-bill\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Gov. Bruce Rauner signed the Water Privatization Act into law<\/strong><\/a>, extending the 2013 law for 10 additional years. The amendment also removed a 7,500-connection cap on the size of systems that the water companies can buy.<\/p>\n<p>With the connection cap gone and costs covered by the private companies&#8217; customers, publicly-owned water systems in Illinois are now targets for these profit-driven water utilities. These companies are offering up top dollar for aging water systems and, of course, wrapping the costs into their customers&#8217; bills.<\/p>\n<p>CUB fought both of these bills, arguing that customers of Illinois American Water and Aqua Illinois should not be forced to finance the companies\u2019 acquisitions. We believe communities should be required to hold a referendum before they can sell their water system to a private operator.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;My Community is Considering Privatization\u2014What Can I Do?&#8221; tab_id=&#8221;1598364755749-d66384dd-c2f7&#8243;][vc_column_text]<span style=\"font-weight: 400;\">Choosing to privatize is a difficult, complicated decision for officials to make, but don&#8217;t let them forget\u2014it&#8217;s your water and your bills. If your city is considering privatization<\/span><span style=\"font-weight: 400;\">, get the facts first. <\/span><\/p>\n<ul>\n<li><strong>The power to privatize your water system lies with your local elected officials<\/strong>. That means you will need to go to city council meetings and make your voice heard. One strategy could be to ask your local elected officials to put a non-binding <strong><a href=\"https:\/\/en.wikipedia.org\/wiki\/Referendum\" target=\"_blank\" rel=\"noopener\">referendum<\/a><\/strong> on the ballot. Your elected officials wouldn\u2019t be required to abide by the results of a non-binding referendum, but such a vote could allow the entire community to weigh-in. Another strategy could be to work with a local elected official to pass an ordinance preventing the sale of your public water utility.<\/li>\n<li><strong>Share CUB&#8217;s research with your community leaders.\u00a0<\/strong>And while you&#8217;re at it, make sure to send them <strong><a href=\"https:\/\/www.foodandwaterwatch.org\/insight\/state-public-water-united-states\" target=\"_blank\" rel=\"noopener noreferrer\">Food and Water Watch&#8217;s study on private water<\/a><\/strong>.<\/li>\n<li><strong>Consider alternatives to privatization<\/strong>. For example, has your community explored a low interest loan from the state to help investment in your public system? The Illinois Environmental Protection Agency (IEPA) offers\u00a0<strong><a href=\"https:\/\/www2.illinois.gov\/epa\/topics\/grants-loans\/state-revolving-fund\/Pages\/default.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">low interest loans to municipal water and waste water systems<\/a><\/strong>.<\/li>\n<li><strong>Push your representatives in Congress for water infrastructure funding<\/strong>. Private water companies are already talking to your representatives, lobbying against such funding \u2014 it\u2019s much easier to make the case for privatization when municipal systems are underfunded. Make sure your <a href=\"https:\/\/www.citizensutilityboard.org\/legislator-lookup\/\" rel=\"noopener noreferrer\"><strong>Member of Congress<\/strong><\/a>\u00a0knows that water infrastructure investment is important to you.<\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_tta_section][\/vc_tta_tabs][\/vc_column][vc_column width=&#8221;1\/3&#8243;][vc_cta h2=&#8221;Take Action!&#8221; h2_font_container=&#8221;tag:h2|text_align:left&#8221; h2_google_fonts=&#8221;font_family:Open%20Sans%3A300%2C300italic%2Cregular%2Citalic%2C600%2C600italic%2C700%2C700italic%2C800%2C800italic|font_style:700%20bold%20regular%3A700%3Anormal&#8221; color=&#8221;sky&#8221; add_button=&#8221;bottom&#8221; btn_title=&#8221;Act Now!&#8221; btn_style=&#8221;3d&#8221; btn_color=&#8221;primary&#8221; btn_size=&#8221;lg&#8221; btn_align=&#8221;center&#8221; use_custom_fonts_h2=&#8221;true&#8221; btn_button_block=&#8221;true&#8221; btn_link=&#8221;url:https%3A%2F%2Fsecure.everyaction.com%2FwZUEn6p870-Xfbb6lfgMOw2|target:_blank&#8221;]<\/p>\n<p class=\"column\">Water bills are escalating rapidly, thanks to policies pushed by the state&#8217;s two biggest private water utilities, Illinois American Water and Aqua Illinois. Ur<span style=\"font-family: georgia, palatino;\"><span style=\"font-size: 12pt;\">ge your legislators to stand up for Illinois water customers and support <a href=\"https:\/\/secure.everyaction.com\/wZUEn6p870-Xfbb6lfgMOw2\" target=\"_blank\" rel=\"noopener\"><strong>t<\/strong><strong>he Water Affordability Act (SB 75).<\/strong><\/a><\/span><\/span><\/p>\n<p>[\/vc_cta][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row full_width=&#8221;stretch_row&#8221; parallax=&#8221;content-moving&#8221; css=&#8221;.vc_custom_1633452855370{padding-top: 75px !important;padding-bottom: 75px !important;background: #5e5e5e url(https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2020\/04\/faucet-running-water-shutterstock_153406115-e1588099004967.jpg?id=25240);background-position:center;background-repeat:-repeat !important;background-size: cover !important;}&#8221;][vc_column][vc_column_text] \u00a0Big Profits, Big Bills:\u00a0 \u00a0Tracking Illinois&#8217; Water Privatization\u00a0 [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Over the past several years, private water utilities Illinois American Water and Aqua Illinois have been busy buying up depreciated water and wastewater systems across the state. These for-profit companies have purchased 61 systems since 2013, when state legislators passed a law that allows these water utilities to pass acquisition costs\u2014$411.5 million and counting\u2014onto their customers. \u201cThe amount we pay for water and sewer services is unreasonable,\u201d one person complained to the Illinois Commerce Commission. \u201cI feel we are being held hostage by Illinois American Water Company.\u201d Ratepayers may be unsatisfied with the new private owners of their systems, but as of now, the law leaves them without a voice in determining if or when their water system is privatized. With this site, we hope to give you information about water privatization in Illinois and what you can do about it.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;2\/3&#8243;][vc_tta_tabs color=&#8221;sky&#8221; active_section=&#8221;1&#8243;][vc_tta_section title=&#8221;Which Systems Are They Acquiring?&#8221; tab_id=&#8221;1588694048509-3830d739-5c22&#8243;][vc_column_text]Explore this graphic to\u00a0navigate through the approved and pending Illinois American and Aqua Illinois system acquisitions across Illinois since 2013\u2014when Illinois lawmakers passed the\u00a0Illinois Water Systems Viability Act. Hover over the pins to learn more. Sales approved: 61 Purchase Costs Paid by Consumers: $411.5 million [\/vc_column_text][vc_raw_html]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[\/vc_raw_html][\/vc_tta_section][vc_tta_section title=&#8221;Why Are Communities Selling Their Systems?&#8221; tab_id=&#8221;1588710780743-db3f6898-d044&#8243;][vc_column_text]When faced with the decision to privatize, small municipalities are often stuck navigating the city&#8217;s short-term financial solvency, their constituents&#8217; utility bills and the community&#8217;s health and safety. Sell, and the community gets an influx of extra revenue from the sale, but ratepayers often end up with higher bills.\u00a0According to data released in a 2017 Chicago Tribune expose,\u00a0Illinois American and Aqua Illinois were slapping Chicagoland customers with rates 20 to 70 percent higher than the rates of publicly-managed water systems using the same Lake Michigan water. Although keeping a system municipally-owned does not mean there will never be a rate increase, public water is cheaper in the long run, especially when private profit is involved. But if local governments want to keep the system public, the municipality (read, ratepayers) has to fork out money to pay for expensive system upgrades and maintenance on a depreciating water system. According to a 2017 report from the American Society of Civil Engineers, most of the water pipes across the US were installed in the early- to mid-20th century, and their time is almost up; the pipes were projected to last about 75 to 100 years. Cue Illinois American and Aqua Illinois: Private takeover of water systems has become a popular option for municipalities staring down a list of necessary and expensive system upgrades. These companies take on all responsibility for keeping the systems in line with federal and state mandates after the sale.\u00a0For example,\u00a0Alton, a Metro East city of about 30,000, sold its wastewater system to Illinois American after the Environmental Protection Agency mandated an expensive undertaking\u2014sewer and storm drain separation\u2014to be completed in the next 6 years. But don&#8217;t be fooled. These companies may take responsibility for your system&#8217;s upkeep (they love touting their strict &#8220;regulatory compliance&#8221;), but they don&#8217;t [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"class_list":["post-25205","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/25205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/comments?post=25205"}],"version-history":[{"count":5,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/25205\/revisions"}],"predecessor-version":[{"id":43318,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/25205\/revisions\/43318"}],"wp:attachment":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/media?parent=25205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}