American Water subsidiary gets $25.5M rate hike
Ticker: AWK · Form: 8-K · Filed: 2024-12-06T00:00:00.000Z
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.
From the Filing
0001410636-24-000204.txt : 20241206 0001410636-24-000204.hdr.sgml : 20241206 20241206162510 ACCESSION NUMBER: 0001410636-24-000204 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20241205 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20241206 DATE AS OF CHANGE: 20241206 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: 241532595 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-20241205.htm FORM 8-K - CALIFORNIA AMERICAN WATER GENERAL RATE CASE DECISION awk-20241205 December 5, 2024 0001410636 false 0001410636 2024-12-05 2024-12-05 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): December 5, 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 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 mechanis