- Water Privatization
One Company Could Soon Own Almost Every Regulated Water System in Illinois. Bost's Own District Was Warned This Was Coming.
Illinois American Water wants to buy its biggest rival. If regulators say yes, one company would serve over 99.99 percent of the state's private water customers. In June, a Buncombe Water District rep said Rep. Paul Jacobs told her the 153-district plan Bost co-signed would end the same way: sold to Illinois American.
·Special Edition
Last month, this newsletter reported that four elected officials, including Rep. Mike Bost, signed a letter proposing to combine 153 rural water districts across 14 southern Illinois counties. A Buncombe Water District representative said Rep. Paul Jacobs told her the combined district would be sold to Illinois American Water. Jacobs denied the meeting was designed to advance privatization. He did not deny the sale statement itself.
Now there is new reason to take that warning seriously. Illinois American Water's parent company wants to buy Aqua Illinois' parent company. If regulators approve it, one company would control water service for nearly every regulated customer in the state.
The Record
- The deal: American Water (parent of Illinois American Water) is buying Essential Utilities (parent of Aqua Illinois). ICC Docket No. P2025-1057.
- The scale: After Illinois American's recent purchase of Prairie Path Water Company, the Citizens Utility Board (CUB) says approval of this merger would put more than 99.99 percent of Illinois' regulated water and wastewater customers under one company.
- The rate hikes, filed at the same time: Illinois American wants a $142 million increase — about $14 more a month for water, $28 more for wastewater. Aqua Illinois wants $26.5 million — about $23 more a month.
- The profit ask: Illinois American wants shareholder return on equity raised from 9.84% to 10.75%. Aqua wants 9.6% raised to 10.8% — CUB says that would be the highest of any utility in Illinois.
- CUB's position: Reject the merger, or attach strict guardrails. "There is no reason to believe that the merger will fix these problems," said CUB Executive Director Sarah Moskowitz.
- Timeline: ICC expected to rule on the merger in November 2026, on Illinois American's rate case in December 2026, and on Aqua's rate case in May 2027.
- Bost or Jacobs statements on this merger: None found.
Why This Matters for the 153 Water Districts
The 153-district letter Bost signed does not mention a sale. It talks about combining districts "for grant purposes." But the Buncombe Water District representative said Jacobs told her directly that the plan was to sell the combined system to Illinois American Water.
This merger shows exactly how that pattern plays out statewide. Illinois American does not need to stop at buying rural systems one at a time. It is now trying to buy its last major private competitor outright. CUB has tracked 61 systems bought up by Illinois American and Aqua since 2013, under a state law that lets these companies bill customers for 100 percent of the acquisition cost. If the 153 districts get combined into "one large district," as the letter states, that single large district becomes a much more attractive purchase than 153 small ones ever were.
Small systems get combined first. Then they get bought. Then the bill for the purchase lands on the customers who never got a vote. That is not speculation. It is the same law, the same buyer, and the same financing mechanism CUB has been documenting since 2013 — now playing out at a scale big enough to swallow the whole state.
Illinois American and Aqua have a long history of consumer complaints about escalating bills and poor service, and our expert testimony shows that there is no reason to believe that the merger will fix these problems.
What This Means for IL-12
Rep. Jacobs said the June 16 meeting on the 153-district plan "was never designed to bring forth announcements, directives, or efforts for forced consolidation or privatization." He still has not confirmed or denied the sale statement the Buncombe representative attributed to him directly. That meeting remains postponed with no new date.
Meanwhile, the company reportedly named as the buyer is trying to lock down control of nearly the entire state's private water supply, while asking regulators for the highest profit margins in Illinois utility history. Bost's name is on the letter that started the 153-district process. He has said nothing publicly about this merger or what it would mean for southern Illinois ratepayers if it goes through before, or after, his district's water systems get combined.
How Residents Can Act
Four Things You Can Do Now
- Submit a comment to the ICC.: Comment on the merger docket (P2025-1057) at icc.illinois.gov, or call the Consumer Services Division at 1-800-524-0795, weekdays 8:30 a.m. to 5 p.m.
- Ask Rep. Jacobs for a straight answer.: (217) 782-0387. Has he confirmed or denied the reported statement that the 153-district system would be sold to Illinois American?
- Ask Rep. Bost where he stands.: (202) 225-5661. Does he support this merger? Does he support selling the 153 combined districts to Illinois American or any private buyer?
- Check your own bill.: If you are an Illinois American or Aqua Illinois customer anywhere in the state, this merger and these rate hikes affect you directly, regardless of whether your district is one of the 153.