Illinois American Water Seeks New Rates for Infrastructure Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: PRnewswire
- Infrastructure Investment Plan: Illinois American Water has filed a request with the Illinois Commerce Commission to invest approximately $577 million in water and wastewater systems from 2026 to 2027, aiming to enhance service quality and water reliability for 1.3 million residents across 148 communities.
- Rate Adjustment Impact: If approved, typical residential customers using 3,500 gallons of water would see an increase of about $14 per month, while those using the same amount for wastewater services would face a $28 increase, reflecting the company's commitment to infrastructure improvement.
- Customer Support Measures: The proposal includes a modified allowance rate for low consumption residential users, offering discounted rates for the first 2,000 gallons of water to alleviate financial pressures, demonstrating a focus on affordability for customers.
- Regulatory Review Process: The rate request will undergo an 11-month review process by the ICC, allowing customer participation through written comments and public hearings, with all rate changes requiring ICC approval to ensure transparency and customer involvement.
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Analyst Views on AWK
Wall Street analysts forecast AWK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AWK is 137.83 USD with a low forecast of 122.00 USD and a high forecast of 155.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
0 Buy
5 Hold
1 Sell
Hold
Current: 127.050
Low
122.00
Averages
137.83
High
155.00
Current: 127.050
Low
122.00
Averages
137.83
High
155.00
About AWK
American Water Works Company, Inc. is a water and wastewater utility company. The Company's primary business involves the ownership of utilities that provide water and wastewater services to residential, commercial, industrial, public authority, fire service and sale for resale customers. It also operates other businesses that provide water and wastewater services to the United States government on military installations, as well as municipalities. The Company operates its business through the Regulated Businesses segment. The Regulated Businesses segment includes subsidiaries that provide water and wastewater services to customers in approximately 14 states. The Company's utilities operate in states such as Pennsylvania, Georgia, Hawaii, Indiana, Iowa, Kentucky, Maryland, Tennessee, Virginia and West Virginia. The Company also serves commercial customers, fire service customers, industrial customers, public authorities, other utilities and community water and wastewater systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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