American Water Works Subsidiary Reaches Rate Case Settlement
Ticker: AWK · Form: 8-K · Filed: Sep 20, 2024 · CIK: 1410636
| Field | Detail |
|---|---|
| Company | American Water Works Company, INC. (AWK) |
| Form Type | 8-K |
| Filed Date | Sep 20, 2024 |
| Risk Level | medium |
| Pages | 4 |
| Reading Time | 4 min |
| Key Dollar Amounts | $0.01, $19.7 million, $14.6 million, $110.0 million |
| Sentiment | neutral |
Sentiment: neutral
Topics: regulatory, rate-case, subsidiary
Related Tickers: AWK
TL;DR
AWK's VA subsidiary settled a rate case, expecting a $14.5M revenue boost pending approval.
AI Summary
American Water Works Company, Inc. announced on September 19, 2024, that its subsidiary, Virginia American Water, has reached a settlement in its rate case. This settlement is expected to result in an increase in annual operating revenues for Virginia American Water by approximately $14.5 million, effective upon approval by the State Corporation Commission of Virginia.
Why It Matters
This rate case settlement will allow Virginia American Water to recover costs and invest in infrastructure, potentially leading to improved service and reliability for its customers.
Risk Assessment
Risk Level: medium — The outcome of regulatory rate cases can significantly impact a utility's financial performance and future investment plans.
Key Numbers
- $14.5 million — Annual Revenue Increase (Expected increase for Virginia American Water upon approval of rate case settlement.)
Key Players & Entities
- American Water Works Company, Inc. (company) — Registrant
- Virginia American Water (company) — Subsidiary
- $14.5 million (dollar_amount) — Expected annual increase in operating revenues
- September 19, 2024 (date) — Date of report and earliest event
- State Corporation Commission of Virginia (company) — Regulatory body
FAQ
What is the primary purpose of this 8-K filing?
The filing announces a settlement reached by Virginia American Water, a subsidiary of American Water Works Company, Inc., in its rate case.
What is the expected financial impact of the settlement?
The settlement is expected to result in an increase in annual operating revenues for Virginia American Water by approximately $14.5 million.
When will the revenue increase take effect?
The revenue increase is expected to take effect upon approval by the State Corporation Commission of Virginia.
Which subsidiary of American Water Works Company, Inc. is involved in this rate case?
Virginia American Water is the subsidiary involved in this rate case settlement.
What is the date of the earliest event reported in this filing?
The date of the earliest event reported is September 19, 2024.
Filing Stats: 1,108 words · 4 min read · ~4 pages · Grade level 14.4 · Accepted 2024-09-20 16:30:34
Key Financial Figures
- $0.01 — ich Registered Common stock, par value $0.01 per share AWK New York Stock Exchange
- $19.7 million — ican Water on November 1, 2023, seeking $19.7 million of increased annualized water and waste
- $14.6 million — ies to the Stipulation have agreed to a $14.6 million annualized increase in Virginia America
- $110.0 million — being driven primarily by approximately $110.0 million in capital investments to be made betwe
Filing Documents
- awk-20240919.htm (8-K) — 31KB
- 0001410636-24-000167.txt ( ) — 180KB
- awk-20240919.xsd (EX-101.SCH) — 2KB
- awk-20240919_def.xml (EX-101.DEF) — 14KB
- awk-20240919_lab.xml (EX-101.LAB) — 25KB
- awk-20240919_pre.xml (EX-101.PRE) — 15KB
- awk-20240919_htm.xml (XML) — 3KB
01. Other Events
Item 8.01. Other Events. Stipulation of Settlement of Virginia-American Water Company ("Virginia American Water") General Rate Case On September 20, 2024, Virginia American Water, a wholly owned subsidiary of American Water Works Company, Inc. (the "Company"), filed with the Virginia State Corporation Commission (the "SCC") a "black box" stipulation of settlement (the "Stipulation") entered into on September 19, 2024, with the staff of the SCC, the Office of the Attorney General's Division of Consumer Counsel, and several intervenors, with respect to a general rate case filed by Virginia American Water on November 1, 2023, seeking $19.7 million of increased annualized water and wastewater revenues. The parties to the Stipulation have agreed to a $14.6 million annualized increase in Virginia American Water's revenues. The parties to the Stipulation have also agreed, solely for purposes of Virginia American Water's future filings requiring a stated cost of capital and/or capital structure (including its annual information and water and wastewater infrastructure surcharge filings), that its return on equity ("ROE") will be 9.7% and its capital structure will consist of an equity component of 45.67% and a debt and other component of 54.33%. The ROE approved in Virginia American Water's 2023 rate case order was 9.7%, the approved equity component was 40.73% and the approved debt and other component was 59.27 %. The annualized revenue increase is being driven primarily by approximately $110.0 million in capital investments to be made between May 2023 and April 2025. Interim rates became effective May 1, 2024, with the difference between interim and final approved rates subject to refund. The Stipulation remains subject to SCC review and approval. Cautionary Statement Concerning Forward-Looking Statements Certain statements included in this Current Report on Form 8-K are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section
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: September 20, 2024 By: /s/ DAVID M. BOWLER David M. Bowler Executive Vice President and Chief Financial Officer 3