American Water subsidiary gets $1.7M rate hike in Iowa

TL;DR

Iowa American Water gets $1.7M rate increase approved, effective immediately.

AI Summary

On May 21, 2025, American Water Works Company, Inc. reported on a general rate case order from the Iowa Utilities Board concerning its subsidiary, Iowa American Water. The order approves a settlement that will result in an increase in annual operating revenues for Iowa American Water by approximately $1.7 million, effective May 21, 2025.

Why It Matters

This rate increase will allow Iowa American Water to recover costs and invest in infrastructure, potentially leading to improved service and reliability for its customers in Iowa.

Risk Assessment

Risk Level: low — The filing concerns a routine regulatory rate adjustment for a subsidiary, which is a common occurrence for utility companies.

Key Numbers

• $1.7 million — Annual Revenue Increase (Approved by Iowa Utilities Board for Iowa American Water.)

Key Players & Entities

• American Water Works Company, Inc. (company) — Registrant
• Iowa American Water (company) — Subsidiary
• Iowa Utilities Board (company) — Regulatory body
• $1.7 million (dollar_amount) — Annual revenue increase
• May 21, 2025 (date) — Effective date of rate increase

FAQ

From the Filing

0001410636-25-000119.txt : 20250522 0001410636-25-000119.hdr.sgml : 20250522 20250522164118 ACCESSION NUMBER: 0001410636-25-000119 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20250521 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20250522 DATE AS OF CHANGE: 20250522 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 EIN: 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: 25977833 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-20250521.htm FORM 8-K - IOWA AMERICAN WATER GENERAL RATE CASE ORDER awk-20250521 0001410636 false 0001410636 2025-05-21 2025-05-21 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): May 21, 2025 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. Iowa Utilities Commission (“IUC”) Issuance of Final Order in Iowa-American Water Company (“Iowa American Water”) General Rate Case On May 21, 2025, the IUC issued a final order (the “Order”) approving the adjustment of base rates requested in a general rate case originally filed on May 1, 2024 by Iowa American Water, a wholly owned subsidiary of American Water Works Company, Inc. (the “Company”). The Order approved a $12.7 million annualized increase in water and wastewater system revenues, excluding infrastructure surcharges of $0.9 million, based on an authorized return on equity (“ROE”) of 9.60%, authorized rate base of $262.1 million, and a capital structure with a common equity component of 52.57% and a long-term debt component of 47.43%, as compared to an authorized ROE of 9.60%, an authorized rate base of $144.7 million, and a capital structure with a common equity component of