AWK Files for New Water Rates on Jan 25, Signaling Potential Revenue Boost

TL;DR

**AWK is asking for higher water rates, which could mean more money for the company.**

AI Summary

American Water Works Company, Inc. (AWK) filed an 8-K on January 25, 2024, to report an "Other Event" related to a filing for new rates. This filing, titled "2024 ILAWC FILING FOR NEW RATES," indicates the company is seeking to adjust its water rates. This matters to investors because rate adjustments directly impact the company's revenue and profitability, potentially leading to higher earnings if approved, which could boost the stock price.

Why It Matters

This filing signals American Water Works Company, Inc. is seeking to increase its rates, which could lead to higher revenue and improved financial performance if approved by regulators.

Risk Assessment

Risk Level: low — This filing is a routine regulatory step for a utility company and does not inherently present significant immediate risk, though rate approval is not guaranteed.

Analyst Insight

A smart investor would monitor subsequent filings or news releases from American Water Works Company, Inc. regarding the outcome of this rate filing, as approval could positively impact future earnings and stock performance.

Key Players & Entities

• American Water Works Company, Inc. (company) — the registrant filing the 8-K
• January 25, 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) — address of principal executive offices for American Water Works Company, Inc.
• 856-955-4001 (other) — telephone number for American Water Works Company, Inc.
• AWK (other) — trading symbol for American Water Works Company, Inc. common stock
• New York Stock Exchange (other) — exchange where AWK common stock is registered

Forward-Looking Statements

• American Water Works Company, Inc. will see an increase in its approved rates. (American Water Works Company, Inc.) — medium confidence, target: 2024-12-31
• The company's revenue will increase following the approval of new rates. (American Water Works Company, Inc.) — medium confidence, target: 2025-01-01

FAQ

Key Financial Figures

• $0.01 — ich Registered Common stock, par value $0.01 per share AWK New York Stock Exchange
• $136 million — equity of 10.75%, of (i) approximately $136 million effective January 1, 2025, based on a f
• $16 million — onent of 47.73%, and (ii) approximately $16 million effective January 1, 2026, based on the
• $557 million — ing is driven primarily by an estimated $557 million in capital investments made and to be m

Filing Documents

• awk-20240125.htm (8-K) — 36KB
• exhibit991-pressreleaseofi.htm (EX-99.1) — 10KB
• image.jpg (GRAPHIC) — 33KB
• 0001410636-24-000014.txt ( ) — 249KB
• awk-20240125.xsd (EX-101.SCH) — 2KB
• awk-20240125_def.xml (EX-101.DEF) — 14KB
• awk-20240125_lab.xml (EX-101.LAB) — 27KB
• awk-20240125_pre.xml (EX-101.PRE) — 15KB
• awk-20240125_htm.xml (XML) — 3KB

01. Other Events

Item 8.01. Other Events. Filing by Illinois-American Water Company for New Water and Wastewater Rates On January 25, 2024, Illinois-American Water Company ("Illinois American Water"), a wholly owned subsidiary of American Water Works Company, Inc. (the "Company"), filed tariffs with the Illinois Commerce Commission (the "ICC") for new water and wastewater rates. The filing seeks a two-step rate increase consisting of aggregate annualized incremental revenue, based on a proposed return on equity of 10.75%, of (i) approximately $136 million effective January 1, 2025, based on a future test year through December 31, 2025, with average rate base and a capital structure with an equity component of 52.27 % and a debt component of 47.73%, and (ii) approximately $16 million effective January 1, 2026, based on the future test year to include end of period rate base and a capital structure with an equity component of 54.43% and a debt component of 45.57%. The filing is driven primarily by an estimated $557 million in capital investments made and to be made by Illinois American Water commencing January 2024 through December 2025. The filing also proposes a treatment and compliance rider to address recovery of future environmental compliance investments, and a modification to the existing volume balancing account mechanism to include full production cost recovery. The filing must be approved by the ICC, and if approved, it is anticipated that new rates would take effect in early 2025. A copy of the press release issued by Illinois American Water on January 25, 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 Statement

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. 2 The following exhibits to this Current Report have been provided herewith as noted below: Exhibit No. Description 99.1* Press Release, dated January 25, 2024, issued by Illinois 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 25, 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