AWK Subsidiary NJAWC Files Rate Request with NJ Regulators

TL;DR

**AWK's NJ subsidiary just filed for a rate hike, watch for regulatory approval to see revenue impact.**

AI Summary

American Water Works Company, Inc. (AWK) filed an 8-K on January 19, 2024, to announce that its subsidiary, New Jersey American Water Company (NJAWC), submitted a rate request to the New Jersey Board of Public Utilities. This filing is a routine regulatory step for utilities to adjust their rates, which could impact AWK's future revenue and profitability. For investors, this matters because successful rate increases can lead to higher earnings, while rejections or significant reductions could negatively affect the stock's performance.

Why It Matters

This filing signals a potential change in revenue for American Water Works Company, Inc. through its New Jersey subsidiary, directly impacting its financial outlook and investor returns.

Risk Assessment

Risk Level: medium — The outcome of rate requests is subject to regulatory approval and can be unpredictable, posing a moderate risk to the company's projected revenues.

Analyst Insight

A smart investor would monitor the New Jersey Board of Public Utilities' decision regarding NJAWC's rate request, as the outcome will directly influence AWK's future revenue and profitability. This is a standard regulatory process for utilities, so no immediate action is required, but it warrants ongoing attention.

Key Players & Entities

• American Water Works Company, Inc. (company) — the registrant filing the 8-K
• New Jersey American Water Company (company) — subsidiary of American Water Works Company, Inc. that filed the rate request
• New Jersey Board of Public Utilities (company) — the regulatory body receiving the rate request
• January 19, 2024 (date) — date of the earliest event reported and filing date
• 001-34028 (dollar_amount) — Commission File Number for American Water Works Company, Inc.

Forward-Looking Statements

• New Jersey American Water Company will receive approval for a rate increase from the New Jersey Board of Public Utilities. (New Jersey American Water Company) — medium confidence, target: 2025-01-19

FAQ

Key Financial Figures

• $0.01 — ich Registered Common stock, par value $0.01 per share AWK New York Stock Exchange
• $162 m — ed incremental revenue of approximately $162 million, which is based on a proposed ret
• $1.3 billion — nd is driven primarily by approximately $1.3 billion in capital investments made and to be m

Filing Documents

• awk-20240119.htm (8-K) — 36KB
• ex991-njawc2024ratecasefil.htm (EX-99.1) — 11KB
• picture1a.jpg (GRAPHIC) — 80KB
• 0001410636-24-000010.txt ( ) — 314KB
• awk-20240119.xsd (EX-101.SCH) — 2KB
• awk-20240119_def.xml (EX-101.DEF) — 14KB
• awk-20240119_lab.xml (EX-101.LAB) — 27KB
• awk-20240119_pre.xml (EX-101.PRE) — 15KB
• awk-20240119_htm.xml (XML) — 3KB

01. Other Events

Item 8.01. Other Events. Filing of Petition by New Jersey-American Water Company, Inc. for New Water and Wastewater Rates On January 19, 2024, New Jersey-American Water Company, Inc. ("New Jersey American Water"), a wholly owned subsidiary of American Water Works Company, Inc. (the "Company"), filed a petition with the New Jersey Board of Public Utilities (the "NJBPU") for new water and wastewater rates. The petition seeks aggregate annualized incremental revenue of approximately $162 million, which is based on a proposed return on equity of 10.75% and a capital structure with an equity component of 56.30 % and a debt component of 43.70%, and is driven primarily by approximately $1.3 billion in capital investments made and to be made by New Jersey American Water through December 2024. The petition also proposes a revenue decoupling mechanism and seeks a deferral of certain production cost adjustments. To take effect, the petition must be approved by the NJBPU. A copy of the press release issued by New Jersey American Water on January 19, 2024, has been filed as Exhibit 99.1 hereto and is incorporated herein by reference. References and links to websites and other information contained in this press release are not provided as active hyperlinks, and the information contained in or accessed through these hyperlinks shall not be incorporated into, or form a part of, this Current Report on Form 8-K. 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. In some cases, these forward-looking statements can be identified by words with prospective meanings such as "intend," "plan," "estimate," "believe," "anticipate," "expect," "predict," "project," "propose," "assume," "fore

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* Press Release, dated January 19, 2024 , issued by New Jersey American Water . 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 19, 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