Consumer advocates want Illinois American Water to cut its proposed $142.4 million rate hike by 38%, saying the company is seeking exorbitant profits.

Those advocates are seeking a $54 million cut to the proposal, according to filings to the Illinois Commerce Commission from the Illinois Attorney General’s office and groups including the Citizens Utility Board. The Illinois Commerce Commission is set to rule on the company’s request later this year.

Illinois American’s proposal, filed earlier this year, was submitted after the Illinois Commerce Commission approved a separate $110 million rate increase for the company for 2025. Illinois American’s proposal could bump water bills by an average of $168 per year for residential water customers and $336 per year for wastewater customers, according to CUB estimates.

The groups argue that Illinois American’s request for an increased payout for its investors — 10.75%, the same figure the ICC reduced by nearly a full percentage point in its last rate case — is driving the rising costs, saying it’s overinflated by $30.8 million when IAW’s parent company has seen more than $1 billion dollars in profit each of the last two years.

Meanwhile, as of April, nearly 47,000 households are already behind on their bills to Illinois American Water, totaling more than $8 million, according to ICC data.

“The fact that [the current return on investment] is not enough for them already is troubling,” said Eric DuBellis, general counsel for CUB.

In a statement to the Sun-Times, the company attributed the request for a rate increase to the cost of “replacing aging pipes, upgrading treatment facilities, improving storage and pumping systems, and meeting evolving regulatory requirements.”

But in addition to $4.7 million in executive bonuses factored into the request, CUB said the company also is basing its revenue estimates on a sharp drop in water use, akin to the start of the COVID-19 pandemic, when people stopped leaving their homes.

“It’s an absurd thing to forecast — that was an unforeseeable circumstance in an otherwise normal year,” DuBellis said.

Illinois American serves 148 communities across the state, including some in suburban Chicago. It operates the water delivery systems in those communities, along with 18 water treatment plants and 17 wastewater treatment facilities around the state.

Even beyond the rate hike, Illinois American and Aqua Illinois, two of the largest water utility providers in the state, proposed an acquisition that would put the two under the same roof last October; the Illinois Commerce Commission still has yet to rule on it.

Over the last several years, the two companies have aggressively bought up depreciated municipal water and wastewater systems, which CUB says has added $411 million to Illinois water bills since 2013.

Illinois American has also purchased Prairie Path Water Company, which has about 35,000 customers in northern and central Illinois. If the proposed acquisition is approved, it would leave just about 800 private residential water customers outside Illinois American’s jurisdiction statewide — an effective monopoly for water utility and a complete monopoly for wastewater, according to CUB.

The “level of market consolidation raises obvious concerns,” representatives for CUB wrote in ICC filings.

“It would make one large private utility in the state,” Bryan McDaniel, CUB’s director of governmental affairs. “They’re buying all these systems, there’ll be no competition, just one big monopoly.”

The consumer advocate also argues the consolidation of utilities has led to worse outcomes for customers.

Data from Aqua Illinois in ICC filings show a 77% increase in “unplanned disruptions” — such as main breaks — from 2022 to 2025, as well as a 39% increase in “unplanned advisories,” which include boil orders, between 2024 and 2025. CUB said data for advisories in 2022 and 2023 weren’t provided when requested by the Attorney General’s office as part of the case for the rate hike.

“Customers pay the full price of the system, plus they replace it all,” McDaniel said. “We think shareholders ought to pay for that.”

State Sen. Laura Murphy had legislation up for consideration to force utility companies’ shareholders to shoulder 80% of merger and acquisition costs.

Between July 2024 and 2025, IAW customers in Des Plaines saw bills an average of 142% higher than those getting water from the municipal system, according to a study conducted by the city of Des Plaines.

The legislation was amended after push back, opting instead to give towns and cities a chance to buy back their systems every few years, but still didn’t pass by the end of the session. The problem persists, Murphy said, as she still constantly hears of complaints out of Des Plaines, the town which originally inspired the bill.

“I remember when it was rare when a utility went to the ICC [for a rate hike], people’s salaries can’t keep up, ” Murphy said. “You have to learn how to manage the same way the government does. You don’t have to have profits to increase upper management salaries.”

Looking ahead to the fall session, Murphy said her colleagues have been looking into reforming the current rate hike system and bolstering the ICC’s ability to regulate utilities.

Illinois American’s request comes at the same time Peoples Gas’ put in for a $202 million rate hike and Nicor for a $220 million rate hike; both also will be up for a vote before the ICC later this year.

“Our system structure puts the ICC as that watchdog and they’re going to have to step up like they never have before,” Murphy said.

The 104th Illinois General Assembly adjourned Monday, having passed significant bills relating to children and technology, immigration and rent.

Its most recent legislative session began on Jan. 14. The General Assembly introduced more than 3,000 bills and passed 395, according to the Illinois Municipal League. 

HB5511 — The Children’s Social Media Safety Act

The Children’s Social Media Safety Act was passed by both the state Senate and state House Monday. By Jan. 1, 2028, operating system providers must present an interface when users create an account that requires them to indicate their birth date, age or both. The act then requires that operators use default privacy settings for minors if the operator knows the user is a minor, unless a parent of the minor chooses to override them. Violation of the act would be considered illegal under the Consumer Fraud and Deceptive Business Practices Act.

State Rep. Jennifer Gong-Gershowitz (D-Glenview), who represents a part of Evanston, was the lead sponsor of the bill.

Gov. JB Pritzker expressed explicit support for the Children’s Social Media Safety Act, posting a video in March on Facebook in which he spoke about his concerns about children in Illinois who struggle with mental health issues because of social media.

“Social media companies have shown us time and again they won’t step up. So, Illinois is stepping in,” Pritzker said in the video. “I want to empower parents with more tools to help protect their kids, and our kids need to know they’re safe when they’re online.”

HB5024 —  a bill preventing detention center facilities from being located close to communities 

The bill prohibits detention center facilities from being “located, constructed, or operated within 1,500 feet” of schools, day care centers, public housing and other community locations. It was also passed Monday and is awaiting Pritzker’s approval. 

House Speaker Emanuel “Chris” Welch (D-Westchester), the lead sponsor of the bill, said during a March legislative meeting that his district is deeply impacted by the presence of detention center facilities. Welch said the Immigration and Customs Enforcement facility in Broadview, Illinois, is located in the “heart” of the district he represents.

“This is not an abstract policy debate for me — this is personal, and it is deeply local,” Welch said in March. “This bill says something very simple and very reasonable: detention facilities do not belong in the middle of our neighborhoods. They should not be next to schools.”

The mayor of Broadview, Katrina Thompson, said in a video released by the Illinois House Democrats that some Broadview residents are 600 feet away from ICE facilities. 

“House Bill 5024 creates clear, common-sense boundaries that prioritize people over placement,” Thompson said in the video.

HB3564 — The Rental Fee Transparency and Limitations Act

Passed by both houses in April, the bill would amend the Landlord and Tenant Act to prevent landlords from imposing a move-in fee for renters and from “renaming” fees.

The bill would also amend the Illinois Human Rights Act, establishing in-state policy that “access to housing is a fundamental human right in preventing discrimination based on familial status or source of income in real estate transactions.”

More than 40% of Evanston households are renters as of 2024, according to U.S. Census survey data. Around half of these households are cost-burdened, meaning they spend more than 30% of their income on housing costs, according to a September 2025 Evanston Housing Gap Analysis.

The lead sponsor of the bill, State Rep. Nabeela Syed (D-Palatine), said the legislation would benefit both renters and landlords.

“When fees are transparent upfront, renters can budget accurately, and landlords avoid disputes down the line,” Syed said during a press conference in April. “That’s a win for the rental market as a whole.”

The Illinois General Assembly is expected to return for its next legislative session Nov. 17 to 19 and from Dec. 1 to 3 for a Fall Veto Session.

Email: [email protected] 

Related Stories: 

— Illinois state legislature narrows in on affordability concerns 

— Hundreds rally for environmental legislation at State Capitol 

— Illinois lawmakers hit back at ICE with constitutional rights and protections bill

Average per acre returns to soybean production have exceeded those for corn production in 10 out of the 13 crop years from 2013 to 2025. The opposite was true over the prior 13 crops years from 2000 to 2012. Acreage trends in Illinois indicate farmers are responding to the shift in relative profitability by planting a smaller percentage of their acres to corn.

Corn versus Soybean Returns in Illinois

Figure 1 shows average corn minus soybean returns for central Illinois grain farms with high-productivity farmland enrolled in Illinois FBFM from 2000 to 2025, with projections for 2026 based on the latest Illinois crop budgets (see farmdoc daily from May 19, 2026).

From 2000 to 2012, average per acre returns to corn production exceeded returns to soybeans in 10 years with an average advantage for corn of $59 per acre.  The latter half of this period includes the years of high returns and farm incomes during the biofuel boom resulting from the Renewable Fuel Standard.

The large increases in use of corn for ethanol production largely came to an end by 2013. Since 2013, average returns to soybeans have exceeded those for corn.  Soybean returns exceeded corn returns in 10 out of the 13 years from 2013 to 2025, with an average advantage for soybeans of $53 per acre. The 2013 to 2025 period has been characterized by lower returns due to low commodity price levels relative to production costs, which have increased consistently through time. Exceptions include the 2020 to 2022 crop years when a significant amount of ad hoc assistance was provided in response to the pandemic (2020), and corn and soybean prices saw significant increases (2021 and 2022) due in part to supply chain issues associated with the pandemic and the start of the Russia-Ukraine War. The largest return advantage for soybeans in the last 25 years occurred in 2023 when average soybean returns exceeded corn returns by $237 per acre.  Notably, average farmer returns to both corn and soybeans were negative in 2023 but the average loss for soybeans was less than that for corn acres.

Acreage Allocation Trends

Figure 2 shows the percentage of total tillable acres planted to corn by grain farms enrolled in FBFM in the northern (upper panel), central (middle panel), and southern (lower panel) regions of Illinois from 2003 to 2024. The percentage of acres planted to corn has trended down slightly in all three regions over the past 12-15 years, a period which corresponds with the greater relative returns to soybean acres. This indicates a response from farmers in adjusting their crop rotation decisions to the shift in relative profitability.

Historically, a higher percentage of acres have been planted to corn in northern Illinois.  This is due to continuous corn rotations being more common in the northern region of the state, which can be linked to greater feed demand from beef and dairy operations in that region of Illinois among other factors. Corn and soybeans are by far the primary crops planted over the past 25 years in both northern and central Illinois, with both typically accounting for 95% or more of total planted acreage. Thus, reductions (increases) in corn acreage are typically offset by corresponding increases (reductions) in soybean acres. The proportion of corn acres in northern Illinois has dropped back under 60% in recent crop years after exceeding that level from 2007 to 2018 with a peak of just over 69% in 2011.  The share of corn acres in central Illinois has dropped down to around 50%, trending down from a peak of nearly 60% in the 2007 crop year.

Southern Illinois has historically had the smallest percentage of acres planted to corn. While planted on a small percentage of total acres, wheat more commonly enters farmers’ crop rotations in southern Illinois, often with wheat followed by double-crop soybeans. The percentage of corn acres has trended down from around 47% in 2012 to around 40% in 2024.

Discussion

The shift towards higher returns to soybeans over the last 13 crop years can be linked to a number of factors.

• Since the 2012 drought, both corn and soybean yield performance has, on average, been relatively good across Illinois.  Average soybean yields in particular have been strong, exceeding trend levels in all years but 2019.  Anecdotal evidence suggests that farmers are improving management decisions and practices on soybean acres, moving to earlier planting dates and adopting new technologies such as seed treatments which can improve yields particularly in stressful conditions (see the Illinois Soybean Management Guide for more information).
• Except for the three-year period from 2020 to 2022, market returns have been relatively poor for corn and soybean producers since 2013.  The non-land costs to produce soybeans are smaller than those for corn.  Fertilizer costs have been volatile and machinery costs have been on the rise, particularly since the pandemic and 2020 crop year – both of which are lower for soybeans than for corn.
• While trade policies over the past decade have negatively impacted export markets for U.S. agricultural commodities, and in particular for U.S. soybeans, trade aid payments have helped to partially offset those losses.
• The RFS was a rising tide that tended to lift all boats in the form of higher commodity prices in the latter half of the 2000s.  The initial impact of U.S. biofuel policy was arguably more beneficial to corn, but over time the role of biodiesel has increased resulting in greater demand for feedstocks, primarily soybean oil (see farmdoc daily from April 12, 2024). The share of acreage planted to corn in Illinois rose to meet the increase in demand for ethanol and has declined back to levels similar to the early 2000s. In contrast, the share of acres planted to soybeans declined and then increased as relative returns have shifted.
• The planting flexibility provision of the 1996 farm bill has provided farmers a better ability to respond to return conditions through acreage adjustments (see farmdoc daily article from March 3, 2025).

A key question is whether returns will continue to favor soybeans over corn for grain farms in Illinois and across the Midwest.  If so, will producers continue to shift towards more soybean acres in their crop rotations? This would imply some farmers moving to planting soybeans to the same land in consecutive years (i.e. soybeans on soybeans).  Agronomists tend to advise against planting multiple years of soybeans in a row due to concerns over disease, weed, and other pest pressures and the potential for the development of pest resistance to existing tools (Illinois Soybean Management Guide). However, research is being done on continuous soybean rotations in the Midwest (see here for an example of a recent study in Iowa).

Over the next few months we plan to provide a short series of articles which take a closer look at the shift in relative profitability of corn versus soybeans over the past 25 years. These will include more analysis of the factors that have contributed to the shift and whether we should expect the trend to continue.

Acknowledgments

The authors would like to acknowledge that data used in this study comes from Illinois Farm Business Farm Management (FBFM) Association.  Without their cooperation, information as comprehensive and accurate as this would not be available for educational purposes.  FBFM, which consists of 4,900 plus farmers and 80 plus professional field staff, is a not-for-profit organization available to all farm operators in Illinois.  FBFM field staff provide on-farm counsel with recordkeeping, farm financial management, business entity planning and income tax management.  For more information, please contact the State FBFM Office located at the University of Illinois Department of Agricultural and Consumer Economics at 217-333-8346 or visit the FBFM website at www.fbfm.org.

References