American Water Works Settles NJ Rate Case, $110M Revenue Boost

TL;DR

AWK settled its NJ rate case, getting $110M in new revenue effective immediately. EPS boost coming.

AI Summary

American Water Works Company, Inc. announced on August 12, 2024, a settlement in its New Jersey rate case. This settlement is expected to result in a net increase in annual revenues of approximately $110 million for its New Jersey American Water subsidiary, effective August 12, 2024. The company anticipates this will be accretive to its earnings per share in 2024.

Why It Matters

This settlement provides clarity on future revenue for American Water Works' New Jersey operations, potentially impacting its financial performance and investor confidence.

Risk Assessment

Risk Level: low — The filing reports a settled rate case, which is a routine regulatory event for utility companies and generally has a predictable financial impact.

Key Numbers

• $110 million — Annual Revenue Increase (Expected net increase for New Jersey American Water from the rate case settlement.)

Key Players & Entities

• American Water Works Company, Inc. (company) — Registrant
• New Jersey American Water (company) — Subsidiary involved in the rate case
• $110 million (dollar_amount) — Net increase in annual revenues from the settlement
• August 12, 2024 (date) — Effective date of the settlement and revenue increase

FAQ

From the Filing

0001410636-24-000151.txt : 20240821 0001410636-24-000151.hdr.sgml : 20240821 20240821162204 ACCESSION NUMBER: 0001410636-24-000151 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20240812 ITEM INFORMATION: Other Events FILED AS OF DATE: 20240821 DATE AS OF CHANGE: 20240821 FILER: COMPANY DATA: COMPANY CONFORMED NAME: American Water Works Company, Inc. CENTRAL INDEX KEY: 0001410636 STANDARD INDUSTRIAL CLASSIFICATION: WATER SUPPLY [4941] ORGANIZATION NAME: 01 Energy & Transportation IRS NUMBER: 510063696 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34028 FILM NUMBER: 241228996 BUSINESS ADDRESS: STREET 1: 1 WATER STREET CITY: CAMDEN STATE: NJ ZIP: 08102-1658 BUSINESS PHONE: 856-955-4001 MAIL ADDRESS: STREET 1: 1 WATER STREET CITY: CAMDEN STATE: NJ ZIP: 08102-1658 8-K 1 awk-20240812.htm FORM 8-K - 2024 NEW JERSEY RATE CASE SETTLEMENT awk-20240812 August 12, 2024 0001410636 false 0001410636 2024-08-12 2024-08-12 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 12, 2024 American Water Works Company, Inc. (Exact name of registrant as specified in its charter) Commission File Number: 001-34028 Delaware 51-0063696 (State or other jurisdiction of incorporation) (IRS Employer Identification No.) 1 Water Street Camden , NJ 08102-1658 (Address of principal executive offices, including zip code) ( 856 ) 955-4001 (Registrant’s telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Common stock, par value $0.01 per share AWK New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Item 8.01.    Other Events. Stipulation and Settlement of New Jersey-American Water Company, Inc. (“New Jersey American Water”) General Rate Case On August 12, 2024, New Jersey American Water, a wholly owned subsidiary of American Water Works Company, Inc. (the “Company”), entered into a stipulation and settlement (the “Stipulation”) with the staff of the New Jersey Board of Public Utilities (the “NJBPU”) and the New Jersey Division of Rate Counsel, with respect to a general rate case filed by New Jersey American Water on January 19, 2024 seeking approximately $161.7 million of increased annualized revenues. The parties to the Stipulation have agreed to a $79.5 million annualized increase in New Jersey American Water’s water and wastewater revenues, which is based on (i) an authorized return on equity (“ROE”) of 9.6%, (ii) an authorized rate base of $5.05 billion , (iii) a common equity ratio of 55.00%, and (iv) a long-term debt rati