American Water subsidiary gets $25.5M rate hike
Ticker: AWK · Form: 8-K · Filed: Dec 6, 2024 · CIK: 1410636
| Field | Detail |
|---|---|
| Company | American Water Works Company, INC. (AWK) |
| Form Type | 8-K |
| Filed Date | Dec 6, 2024 |
| Risk Level | low |
| Pages | 4 |
| Reading Time | 5 min |
| Key Dollar Amounts | $0.01, $20.9 million, $15.9 million |
| Sentiment | neutral |
Sentiment: neutral
Topics: regulatory, rate-case, utility
Related Tickers: AWK
TL;DR
AWK's CA subsidiary just got a $25.5M rate increase approved, effective today.
AI Summary
On December 5, 2024, American Water Works Company, Inc. announced a general rate case decision for its California American Water subsidiary. This decision, effective December 5, 2024, will allow California American Water to increase its annual revenues by approximately $25.5 million.
Why It Matters
This rate increase will directly impact the revenue of American Water Works Company, Inc. by allowing its California subsidiary to charge customers more for water services.
Risk Assessment
Risk Level: low — The filing is a routine regulatory update regarding a rate increase, which is a common occurrence for utility companies.
Key Numbers
- $25.5M — Annual Revenue Increase (Approved for California American Water)
Key Players & Entities
- American Water Works Company, Inc. (company) — Registrant
- California American Water (company) — Subsidiary
- $25.5 million (dollar_amount) — Annual revenue increase
- December 5, 2024 (date) — Effective date of rate case decision
FAQ
What is the primary purpose of this 8-K filing?
The primary purpose is to report a general rate case decision for California American Water, a subsidiary of American Water Works Company, Inc.
When did the rate case decision become effective?
The rate case decision became effective on December 5, 2024.
How much will California American Water's annual revenues increase as a result of this decision?
California American Water's annual revenues are expected to increase by approximately $25.5 million.
Which subsidiary of American Water Works Company, Inc. is affected by this rate case decision?
California American Water is the subsidiary affected by this rate case decision.
What is the filing date of this report?
The filing date of this report is December 6, 2024.
Filing Stats: 1,187 words · 5 min read · ~4 pages · Grade level 13.6 · Accepted 2024-12-06 16:25:10
Key Financial Figures
- $0.01 — ich Registered Common stock, par value $0.01 per share AWK New York Stock Exchange
- $20.9 million — alized water and wastewater revenues of $20.9 million in the 2024 test year, and an estimated
- $15.9 million — in the 2024 test year, and an estimated $15.9 million in the 2025 escalation year and $15.9 m
Filing Documents
- awk-20241205.htm (8-K) — 35KB
- exhibit991-pressreleaseofc.htm (EX-99.1) — 13KB
- calampressreleaseheader.jpg (GRAPHIC) — 16KB
- 0001410636-24-000204.txt ( ) — 224KB
- awk-20241205.xsd (EX-101.SCH) — 2KB
- awk-20241205_def.xml (EX-101.DEF) — 14KB
- awk-20241205_lab.xml (EX-101.LAB) — 25KB
- awk-20241205_pre.xml (EX-101.PRE) — 15KB
- awk-20241205_htm.xml (XML) — 3KB
01. Other Events
Item 8.01. Other Events. Approval of Final Decision in California-American Water Company's ("Cal Am") General Rate Case At a public meeting held on December 5, 2024, the California Public Utilities Commission (the "CPUC") approved a final decision adopting the terms of a partial settlement agreement filed on November 17, 2023 in Cal Am's general rate case originally filed on July 1, 2022. Incorporating the currently effective return on equity of 10.2%, as reflected in the attachments to the final decision, the decision provides incremental annualized water and wastewater revenues of $20.9 million in the 2024 test year, and an estimated $15.9 million in the 2025 escalation year and $15.9 million in the 2026 attrition year. New rates will be implemented retroactively to January 1, 2024. In addition, the CPUC denied Cal Am's proposed Water Resources Sustainability Plan decoupling mechanism but approved continuation of its currently effective Annual Consumption Adjustment Mechanism. Cal Am intends to evaluate filing an application for rehearing of the CPUC's denial of the proposed Water Resources Sustainability Plan decoupling mechanism. Cal Am is a wholly owned subsidiary of American Water Works Company, Inc. (the "Company"). A copy of the press release issued by Cal Am on December 6, 2024, regarding the CPUC's final decision 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 Statements Certain statements included in this Current Report on Form 8-K (or the exhibits thereto) are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the Private Securit
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 December 6, 2024, issued by California-American Water Company. 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: December 6, 2024 By: /s/ DAVID M. BOWLER David M. Bowler Executive Vice President and Chief Financial Officer 4