AWK Provides Oral Comments on Lead & Copper Rule Improvements

TL;DR

**AWK is talking to regulators about new lead and copper rules, which could mean big future spending.**

AI Summary

American Water Works Company, Inc. (AWK) filed an 8-K on January 16, 2024, to disclose that it provided oral comments regarding the Lead and Copper Rule Improvements (LCRI) rulemaking. This filing indicates AWK's active participation in regulatory discussions that could impact its operational costs and future infrastructure investments. For investors, this matters because changes to the LCRI could significantly affect AWK's capital expenditures and profitability, as the company would need to comply with new standards for water quality and infrastructure.

Why It Matters

This filing shows American Water Works is actively engaging with regulators on rules that could directly impact its operational costs and future investment needs, which affects its financial performance.

Risk Assessment

Risk Level: medium — The potential changes from the LCRI rulemaking could lead to significant, but currently unknown, capital expenditures for American Water Works, creating financial uncertainty.

Analyst Insight

A smart investor would monitor future SEC filings and news releases from American Water Works Company, Inc. for updates on the Lead and Copper Rule Improvements (LCRI) rulemaking and any estimated financial impacts, as these could affect future capital expenditure forecasts and dividend policy.

Key Players & Entities

• American Water Works Company, Inc. (company) — the registrant filing the 8-K
• Lead and Copper Rule Improvements (other) — the subject of the oral comments
• January 16, 2024 (date) — date of earliest event reported and filing date
• 001-34028 (other) — Commission File Number for American Water Works Company, Inc.
• Delaware (other) — state of incorporation for American Water Works Company, Inc.
• 51-0063696 (other) — IRS Employer Identification No. for American Water Works Company, Inc.
• 1 Water Street, Camden, NJ 08102-1658 (other) — principal executive offices address for American Water Works Company, Inc.
• 856-955-4001 (other) — registrant's telephone number
• $0.01 (dollar_amount) — par value per share of common stock
• AWK (other) — trading symbol for American Water Works Company, Inc.

Forward-Looking Statements

• American Water Works Company, Inc. will likely incur increased capital expenditures due to future LCRI compliance. (American Water Works Company, Inc.) — high confidence, target: 2025-2030
• The final LCRI rules will be more stringent than current regulations. (Lead and Copper Rule Improvements) — medium confidence, target: 2024-2025

FAQ

Key Financial Figures

• $0.01 — ich Registered Common stock, par value $0.01 per share AWK New York Stock Exchange

Filing Documents

• awk-20240116.htm (8-K) — 35KB
• exhibit991-preparedremarks.htm (EX-99.1) — 6KB
• 0001410636-24-000005.txt ( ) — 197KB
• awk-20240116.xsd (EX-101.SCH) — 2KB
• awk-20240116_def.xml (EX-101.DEF) — 14KB
• awk-20240116_lab.xml (EX-101.LAB) — 27KB
• awk-20240116_pre.xml (EX-101.PRE) — 15KB
• awk-20240116_htm.xml (XML) — 3KB

01. Other Events

Item 8.01. Other Events. Oral Comments to U.S. Environmental Protection Agency ("EPA") on Proposed Lead and Copper Rule Improvements ("LCRI") On January 16, 2024 , Lynda B. DiMenna, Chief Environmental and Safety Officer of American Water Works Company, Inc. (the "Company"), is scheduled to provide at a public hearing oral comments to the EPA on its proposed Lead and Copper Rule Improvements (LCRI). A copy of the prepared remarks from which Ms. DiMenna is to provide her oral comments has been filed as Exhibit 99.1 hereto and is incorporated by reference herein. Regardless of whether the LCRI rulemaking is ultimately implemented, the Company continues to comply with the EPA's existing Lead and Copper Rule ("LCR") requirements by replacing lead service lines in accordance with current scientific guidance and utilizing appropriate corrosion control techniques as necessary to comply with current water quality regulatory requirements. The Company believes that, if the LCRI rulemaking were to be implemented, the total investment cost to identify and replace lead and galvanized steel service lines in the United States by 2037 would be significant and has been underestimated in the LCRI rulemaking. Finally, the Company supports a delay of the compliance date for those portions of the Lead and Copper Rule Revisions ("LCRR") proposed to be extended by the LCRI, some of which are currently scheduled to take effect on October 16, 2024, to allow all water service providers to prepare adequately for any changes that may be implemented through the proposed LCRI rulemaking while continuing to comply with the existing requirements. Cautionary Statement Concerning Forward-Looking Statements Certain statements included in this Current Report on Form 8-K (or the exhibits thereto) are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. The following exhibits to this Current Report have been provided herewith as noted below: 2 Exhibit No. Description 99.1* Prepared Remarks to EPA on Proposed LCRI Rulemaking, by Lynda B. DiMenna, Chief Environmental and Safety Officer of American Water Works Company, Inc. 104 Cover Page Interactive Data File (the cover page XBRL tags are included and formatted as Inline XBRL). * Filed herewith. 3

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMERICAN WATER WORKS COMPANY, INC. Dated: January 16, 2024 By: /s/ JOHN C. GRIFFITH John C. Griffith Executive Vice President and Chief Financial Officer 4

View Full Filing

View this 8-K filing on SEC EDGAR