NJ American Water Gets $100M Rate Hike Approval

TL;DR

NJ American Water just got approved for a $100M annual revenue increase from regulators.

AI Summary

On September 4, 2024, American Water Works Company, Inc. announced that its subsidiary, New Jersey American Water, received a final order from the New Jersey Board of Public Utilities regarding its general rate case. This order allows for an annual revenue increase of approximately $100 million, effective September 1, 2024, with a partial increase of $50 million effective September 1, 2025.

Why It Matters

This rate increase will allow New Jersey American Water to recover costs and invest in infrastructure improvements, potentially leading to better service and reliability for its customers.

Risk Assessment

Risk Level: low — The filing is an informational update on a regulatory decision that has already been made and is generally expected by investors.

Key Numbers

• $100 million — Annual Revenue Increase (Approved by NJ BPU for New Jersey American Water.)
• $50 million — Partial Annual Revenue Increase (Effective September 1, 2025, as part of the rate case order.)

Key Players & Entities

• American Water Works Company, Inc. (company) — Registrant
• New Jersey American Water (company) — Subsidiary
• New Jersey Board of Public Utilities (company) — Regulator
• $100 million (dollar_amount) — Annual revenue increase
• $50 million (dollar_amount) — Partial annual revenue increase
• September 4, 2024 (date) — Filing date
• September 1, 2024 (date) — Effective date of revenue increase
• September 1, 2025 (date) — Effective date of partial revenue increase

FAQ

From the Filing

0001410636-24-000162.txt : 20240904 0001410636-24-000162.hdr.sgml : 20240904 20240904182611 ACCESSION NUMBER: 0001410636-24-000162 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 17 CONFORMED PERIOD OF REPORT: 20240904 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240904 DATE AS OF CHANGE: 20240904 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: 241278754 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-20240904.htm FORM 8-K - NEW JERSEY AMERICAN WATER GENERAL RATE CASE ORDER awk-20240904 September 4, 2024 0001410636 false 0001410636 2024-09-04 2024-09-04 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): September 4, 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. New Jersey Board of Public Utilities (“NJBPU”) Approval of Settlement in New Jersey-American Water Company, Inc. (“New Jersey American Water”) General Rate Case On September 4, 2024, the NJBPU issued an order (the “Order”) approving without modification the stipulation of settlement (the “Stipulation”) of a general rate case filed on January 19, 2024 by New Jersey American Water, a wholly owned subsidiary of American Water Works Company, Inc. (the “Company”), seeking approximately $161.7 million of increased annualized water and wastewater revenues. The Stipulation was entered into on August 12, 2024 with the staff of the NJBPU and the New Jersey Division of Rate Counsel. The Order approves a $79.5 million annualized increase in New Jersey American Water’s water and wastewater revenues, effective as of September 15, 2024, based on (i) an