American Water Works Subsidiary Reaches Rate Case Settlement

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

From the Filing

0001410636-24-000167.txt : 20240920 0001410636-24-000167.hdr.sgml : 20240920 20240920163034 ACCESSION NUMBER: 0001410636-24-000167 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20240919 ITEM INFORMATION: Other Events FILED AS OF DATE: 20240920 DATE AS OF CHANGE: 20240920 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: 241313768 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-20240919.htm FORM 8-K - 2024 VIRGINIA AMERICAN WATER RATE CASE SETTLEMENT awk-20240919 September 19, 2024 0001410636 false 0001410636 2024-09-19 2024-09-19 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 19, 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 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