American Water Terminates Towamencin Deal, Sells System for $11.5M

TL;DR

AWK terminated the Towamencin deal, selling the wastewater system to the township for $11.5M.

AI Summary

American Water Works Company, Inc. announced on August 28, 2024, the termination of the Towamencin Asset Purchase Agreement. This termination is part of a process that will result in the sale of the Towamencin Wastewater System to the Towamencin Township Municipal Authority for a purchase price of $11.5 million.

Why It Matters

This filing indicates a change in strategy or a resolution of a prior agreement, impacting the company's asset portfolio and future revenue streams from the Towamencin Wastewater System.

Risk Assessment

Risk Level: low — The filing reports on the termination of an agreement and a subsequent sale, which is a routine business event rather than a significant unforeseen risk.

Key Numbers

• $11.5 million — Purchase Price (Sale of Towamencin Wastewater System)

Key Players & Entities

• American Water Works Company, Inc. (company) — Registrant
• Towamencin Asset Purchase Agreement (contract) — Agreement being terminated
• Towamencin Wastewater System (asset) — System being sold
• Towamencin Township Municipal Authority (company) — Purchaser of the asset
• $11.5 million (dollar_amount) — Purchase price for the Towamencin Wastewater System
• August 28, 2024 (date) — Date of the earliest event reported

FAQ

Key Financial Figures

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

Filing Documents

• awk-20240828.htm (8-K) — 35KB
• exhibit991-pennsylvaniaame.htm (EX-99.1) — 10KB
• image.jpg (GRAPHIC) — 87KB
• 0001410636-24-000156.txt ( ) — 319KB
• awk-20240828.xsd (EX-101.SCH) — 2KB
• awk-20240828_def.xml (EX-101.DEF) — 14KB
• awk-20240828_lab.xml (EX-101.LAB) — 25KB
• awk-20240828_pre.xml (EX-101.PRE) — 15KB
• awk-20240828_htm.xml (XML) — 3KB

01. Other Events

Item 8.01. Other Events. Commencement of Process to Terminate Acquisition of Towamencin Township's Wastewater System On August 28, 2024, Pennsylvania-American Water Company ("Pennsylvania American Water"), a subsidiary of American Water Works Company, Inc. (the "Company"), issued a press release announcing that Pennsylvania American Water and Towamencin Township (the "Township") will begin the process to terminate that certain Asset Purchase Agreement, dated June 14, 2022, as amended on March 23, 2023 (the "Asset Purchase Agreement"), by and among Pennsylvania American Water, the Towamencin Municipal Authority (the "Authority") and the Township. As previously reported, effective March 24, 2023, Pennsylvania American Water acquired by assignment all of the rights, and assumed all of the obligations, of NextEra Water Pennsylvania, LLC ("NEWPA"), an indirect, wholly owned subsidiary of NextEra Energy, Inc., under the Asset Purchase Agreement, including NEWPA's agreement to acquire substantially all of the assets related to the Township's wastewater system. Pennsylvania American Water does not anticipate that it will incur any penalty in connection with the termination of the Asset Purchase Agreement. Once the termination is approved by the Township's Board of Supervisors at its next meeting, which is expected to occur on September 11, 2024, and the Pennsylvania Public Utility Commission (the "PaPUC"), which is expected to occur approximately 30 days after the termination agreement is filed with the PaPUC, all rights and obligations of Pennsylvania American Water under the Asset Purchase Agreement will terminate. A copy of the press release issued by Pennsylvania American Water on August 28, 2024 related to the foregoing 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

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 August 28, 2024, issued by Pennsylvania 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: August 29, 2024 By: /s/ DAVID M. BOWLER David M. Bowler Executive Vice President and Chief Financial Officer 4

View Full Filing

View this 8-K filing on SEC EDGAR