American Water Works Reports Indiana Rate Case Order

TL;DR

**AWK just filed an 8-K about their Indiana rate case order, but no financial details were given.**

AI Summary

American Water Works Company, Inc. filed an 8-K on February 15, 2024, to report the 2024 Indiana-American Water rate case order. The earliest event reported occurred on February 14, 2024. This filing serves as a regulatory update regarding the outcome of a rate review for its Indiana subsidiary, though specific financial details of the order are not disclosed in this document.

Why It Matters

Rate cases are crucial for regulated utilities like American Water Works as they determine the rates companies can charge customers, directly impacting their revenue and profitability. The outcome of such orders dictates the financial health and investment capacity of the utility.

Risk Assessment

Risk Level: low — This filing is a routine regulatory update for a utility company, reporting the existence of a rate case order without indicating any adverse or unexpectedly positive financial impact.

Key Numbers

• N/A — Rate Case Order Details (Specific financial impacts or approved rates are not disclosed in this filing.)

Key Players & Entities

• American Water Works Company, Inc. (company) — registrant
• Indiana-American Water (company) — subsidiary involved in rate case
• February 14, 2024 (date) — date of earliest event reported
• February 15, 2024 (date) — date of 8-K filing

FAQ

Key Financial Figures

• $0.01 — ich Registered Common stock, par value $0.01 per share AWK New York Stock Exchange
• $66.3 million — . (the "Company"). The Order approved a $66.3 million annualized increase in water and wastew
• $1,835 m — ROE") of 9.65%, authorized rate base of $1,835 million, a common equity ratio of 56.15%
• $24.9 million — will include three step increases, with $24.9 million of the increase to be included in rates
• $17.1 million — be included in rates in February 2024, $17.1 million in May 2024, and $24.3 million in May 2
• $24.3 million — ry 2024, $17.1 million in May 2024, and $24.3 million in May 2025. The increases are being dr
• $875 million — are being driven primarily by (i) over $875 million of water and wastewater system capital

Filing Documents

• awk-20240214.htm (8-K) — 36KB
• exhibit991-pressreleaseofi.htm (EX-99.1) — 10KB
• indianaamericanwaterlogoa.jpg (GRAPHIC) — 3KB
• imagea.jpg (GRAPHIC) — 0KB
• 0001410636-24-000059.txt ( ) — 207KB
• awk-20240214.xsd (EX-101.SCH) — 2KB
• awk-20240214_def.xml (EX-101.DEF) — 14KB
• awk-20240214_lab.xml (EX-101.LAB) — 27KB
• awk-20240214_pre.xml (EX-101.PRE) — 15KB
• awk-20240214_htm.xml (XML) — 3KB

01. Other Events

Item 8.01. Other Events. Indiana Utility Regulatory Commission (the "IURC") Approval of Order in Indiana-American Water Company, Inc. ("Indiana American Water") General Rate Case On February 14, 2024, the IURC issued an order (the "Order") approving the adjustment of base rates requested in a rate case filed on March 31, 2023 by Indiana American Water, a wholly owned subsidiary of American Water Works Company, Inc. (the "Company"). The Order approved a $66.3 million annualized increase in water and wastewater system revenues, excluding previously recovered infrastructure surcharges, b ased on an authorized return on equity ("ROE") of 9.65%, authorized rate base of $1,835 million, a common equity ratio of 56.15% and a debt ratio of 43.85%. For purposes of determining rates, the adjustment is based on an equity component of 48.19% due to the regulatory practice in Indiana of including certain zero-cost items or tax credit balances in the capital structure calculation. The annualized revenue increase will include three step increases, with $24.9 million of the increase to be included in rates in February 2024, $17.1 million in May 2024, and $24.3 million in May 2025. The increases are being driven primarily by (i) over $875 million of water and wastewater system capital investments since the completion of Indiana American Water's last rate case and through April 30, 2025, (ii) higher pension and other OPEB costs, and (iii) increases in production costs, including chemicals, fuel and power costs. A copy of the press release issued by Indiana American Water on February 15, 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 For

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 February 1 5 , 2024, issued by Indiana 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: February 15, 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