American Water Seeks Illinois Rate Hike to Fund Upgrades

American Water ( (AWK) ) has issued an announcement.

On January 27, 2026, Illinois American Water filed a request with the Illinois Commerce Commission to raise water and wastewater rates in two steps beginning in January 2027, aiming to generate roughly $134 million in additional annual revenue to support about $577 million in infrastructure investments planned from January 2026 through December 2027. The proposed increases, which must clear an 11‑month regulatory review, would fund replacement of 42 miles of aging mains and sewers, upgrades to storage tanks, wells, pumping stations, hydrants, meters and wastewater plants, and treatment improvements to meet regulatory requirements including emerging contaminants such as PFAS, with a typical residential customer using 3,500 gallons facing an estimated monthly bill increase of about $14 for water and $28 for wastewater; the filing also includes a discounted rate for the first 2,000 gallons to ease costs for low‑consumption customers and is accompanied by continued customer assistance programs, underscoring both the capital‑intensive nature of modernizing water infrastructure and the affordability pressures on ratepayers.

The most recent analyst rating on (AWK) stock is a Sell with a $122.00 price target. To see the full list of analyst forecasts on American Water stock, see the AWK Stock Forecast page.

Spark’s Take on AWK Stock

According to Spark, TipRanks’ AI Analyst, AWK is a Neutral.

The score is anchored by steady profitability and moderate balance-sheet risk, but held back by negative free cash flow and only moderate cash conversion. Technicals are mixed (short-term strength but weaker longer-term trend), and valuation looks fair-to-slightly expensive for a regulated utility despite a solid dividend. Corporate events are a net positive due to supportive rate actions and infrastructure investment recovery mechanisms.

To see Spark’s full report on AWK stock, click here.

More about American Water

American Water (NYSE: AWK) is the largest regulated water and wastewater utility in the United States, supplying safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people across 14 states and 18 military installations, while its subsidiary Illinois American Water is the largest regulated water utility in Illinois, serving about 1.3 million people in 148 communities with more than 600 employees and operating a quality control and research laboratory in Belleville.

Average Trading Volume: 1,880,197

Technical Sentiment Signal: Sell

Current Market Cap: $25.52B

For an in-depth examination of AWK stock, go to TipRanks’ Overview page.