American Water subsidiary gets revised rate case order

TL;DR

AWK's Kentucky unit gets a $14.5M rate hike approved, effective Nov 10th.

AI Summary

American Water Works Company, Inc. announced on November 6, 2024, that its Kentucky American Water subsidiary received a revised general rate case order. This order allows for an annual revenue increase of approximately $14.5 million, effective November 10, 2024, with a partial increase of $10.5 million effective November 6, 2024.

Why It Matters

This regulatory decision directly impacts American Water Works' revenue in Kentucky, potentially affecting its overall financial performance and investor returns.

Risk Assessment

Risk Level: medium — Regulatory decisions on rate cases can be complex and subject to change, impacting financial projections.

Key Numbers

• $14.5M — Annual Revenue Increase (Approved by revised general rate case order for Kentucky American Water.)
• $10.5M — Partial Revenue Increase (Effective earlier on November 6, 2024, for Kentucky American Water.)

Key Players & Entities

• American Water Works Company, Inc. (company) — Registrant
• Kentucky American Water (company) — Subsidiary
• $14.5 million (dollar_amount) — Annual revenue increase
• $10.5 million (dollar_amount) — Partial revenue increase
• November 6, 2024 (date) — Date of earliest event reported
• November 10, 2024 (date) — Effective date of full revenue increase

FAQ

From the Filing

0001410636-24-000197.txt : 20241112 0001410636-24-000197.hdr.sgml : 20241112 20241112162124 ACCESSION NUMBER: 0001410636-24-000197 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20241106 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20241112 DATE AS OF CHANGE: 20241112 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: 241448596 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-20241106.htm FORM 8-K - KENTUCKY AMERICAN WATER REVISED GENERAL RATE CASE ORDER awk-20241106 November 6, 2024 0001410636 false 0001410636 2024-11-06 2024-11-06 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): November 6, 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. Approval of Order Following Rehearing Request in Kentucky-American Water Company (“Kentucky American Water”) General Rate Case As previously disclosed, on May 16, 2024, Kentucky American Water, a wholly owned subsidiary of American Water Works Company, Inc., filed a petition for rehearing of an order (the “Original Order”) issued by the Kentucky Public Service Commission (the “KPSC”) with respect to Kentucky American Water’s June 30, 2023 water rate adjustment request. On November 6, 2024, the KPSC approved a final order (the “Final Order”) providing for a $17.3 million annualized increase in water revenues, an increase of $6.7 million from the Original Order approving a $10.6 million annualized increase in water revenues. New rates provided in the Final Order were effective November 6, 2024. A copy of the press release issued by Kentucky America