Nearly $342 Million of Capital Investments in Local Infrastructure Drives Request; Operating Expenses Reduced by about 3 Percent since Last Rate Order

Today, Illinois American Water filed an application with the Illinois Commerce Commission (ICC) to adjust rates effective January 2017 for water and sewer service in all of the company’s operating districts.

Illinois American Water’s last general rate case was approved by the ICC in September 2012.

The company’s investments in water and sewer system improvements are the primary driver behind this rate request. From October 1, 2013 to December 31, 2017, Illinois American Water will have invested approximately $342 million in water and sewer infrastructure statewide. These improvements to local water and sewer plants, pumps and pipes help to enhance service quality, reliability, environmental performance, public health and fire protection for customers.

Rates will not change until January 2017, after the ICC completes a comprehensive review of the request. The 11-month process includes opportunities for public comment. Over four years will have passed since Illinois American Water’s last rate increase in 2012.

“The communities we serve rely on us to provide reliable, quality water and wastewater service to support the local economy and to provide a high quality of life for residents,” said Illinois American Water President Bruce Hauk. “These investments will help ensure we are able to keep that commitment to the health and prosperity of our customers and communities in Illinois.”

Hauk added that the company had reduced its operating expenses by about 3 percent since its last rate order.

Illinois American Water’s rates are based on the costs of providing water and sewer service as reviewed and approved by the ICC.

The company is requesting a revenue increase of about $40 million in the case filed today.

The need to upgrade water and sewer systems is a national challenge. The American Society of Civil Engineers says that an estimated $1 trillion in capital spending will be needed across the nation over the next 25 years to replace thousands of miles of pipe, upgrade treatment plants and comply with stricter water quality standards.

About Illinois American Water

Illinois American Water, a wholly owned subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 1.2 million people. American Water also operates a customer service center in Alton and a quality control and research laboratory in Belleville.

Founded in 1886, American Water is the largest and most geographically diverse publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs 6,800 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada. More information can be found at www.amwater.com.

Illinois American WaterKaren Cotton, 309-566-4126karen.cotton@amwater.com

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