American Water subsidiary gets $23.4M rate hike

TL;DR

AWK's WV unit gets $23.4M rate increase, effective tomorrow.

AI Summary

American Water Works Company, Inc. announced on March 4, 2024, that its West Virginia American Water subsidiary received a final order from the Public Service Commission of West Virginia regarding a rate case. This order allows for an annual revenue increase of approximately $23.4 million, effective March 5, 2024, which is slightly lower than the $25.2 million initially requested by the company.

Why It Matters

This rate increase will allow West Virginia American Water to recover costs associated with infrastructure improvements and continue providing safe and reliable water service to its customers.

Risk Assessment

Risk Level: low — The filing is a routine update on a regulatory rate case decision, which is a normal part of utility operations.

Key Numbers

• $23.4M — Annual Revenue Increase (Approved by West Virginia Public Service Commission)
• $25.2M — Requested Revenue Increase (Initial request by West Virginia American Water)

Key Players & Entities

• American Water Works Company, Inc. (company) — Registrant
• West Virginia American Water (company) — Subsidiary
• Public Service Commission of West Virginia (company) — Regulatory body
• $23.4 million (dollar_amount) — Annual revenue increase
• $25.2 million (dollar_amount) — Initially requested revenue increase
• March 4, 2024 (date) — Filing date
• March 5, 2024 (date) — Effective date of rate increase

FAQ

Key Financial Figures

• $0.01 — ich Registered Common stock, par value $0.01 per share AWK New York Stock Exchange
• $18.4 million — on May 1, 2023. This order approved an $18.4 million annualized increase in water and wastew
• $6.9 m — recovered infrastructure surcharges of $6.9 million, b ased on an authorized return o
• $886 m — "ROE") of 9.8%, authorized rate base of $886 million, which reflects capital investmen
• $5.9 million — Water also received an order approving $5.9 million in additional annualized revenue reques
• $220 million — tment are being driven primarily by (i) $220 million of related water and wastewater system
• $67 million — DSIC/WSIC revenues are being driven by $67 million of water and wastewater system capital

Filing Documents

• awk-20240304.htm (8-K) — 36KB
• exhibit991-westvirginiapre.htm (EX-99.1) — 10KB
• wvam.jpg (GRAPHIC) — 27KB
• 0001410636-24-000080.txt ( ) — 240KB
• awk-20240304.xsd (EX-101.SCH) — 2KB
• awk-20240304_def.xml (EX-101.DEF) — 14KB
• awk-20240304_lab.xml (EX-101.LAB) — 27KB
• awk-20240304_pre.xml (EX-101.PRE) — 15KB
• awk-20240304_htm.xml (XML) — 3KB

01. Other Events

Item 8.01. Other Events. West Virginia Public Service Commission (the "WVPSC") Approval of Orders Related to West Virginia-American Water Company, Inc. ("West Virginia American Water") On March 4, 2024, West Virginia American Water, a subsidiary of American Water Works Company, Inc. (the "Company"), issued a press release to announce that the WVPSC issued an order approving the adjustment of base rates requested in a rate case filed on May 1, 2023. This order approved an $18.4 million annualized increase in water and wastewater system revenues, excluding previously recovered infrastructure surcharges of $6.9 million, b ased on an authorized return on equity ("ROE") of 9.8%, authorized rate base of $886 million, which reflects capital investments through February 2024, a common equity ratio of 50.1% and a long-term debt ratio of 49.9%. West Virginia American Water also received an order approving $5.9 million in additional annualized revenue requested in its distribution system and wastewater system improvement charge ("DSIC/WSIC") filing on June 30, 2023, related to planned investment from March 2024 through December 2024. The increased water and wastewater revenues related to the base rate adjustment are being driven primarily by (i) $220 million of related water and wastewater system capital investments made since the completion of West Virginia American Water's previous rate case, (ii) higher pension and other OPEB costs, and (iii) increases in production costs, including chemicals, fuel and power costs. The increased DSIC/WSIC revenues are being driven by $67 million of water and wastewater system capital investments planned from March 2024 through December 2024. The new water and wastewater rates became effective as of February 25, 2024, and the new DSIC/WSIC rates became effective March 1, 2024. A copy of the press release issued by West Virginia American Water has been filed as Exhibit 99.1 hereto and is incorporated herein by reference. References and li

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: Exhibit No. Description 99.1* Press Release, dated March 4 , 2024, issued by West Virginia 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: March 4, 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