American Water Works Company, Inc 8-K, filed Jul 5, 2022
American Water Works Company, Inc. (AWK)
8-K
2022-07-05
For: 2022-07-01
View Original
Added on
April 09, 2026
About this 8-K
American Water Works Company, Inc filed this 8-K on July 5, 2022, reporting on events of July 1, 2022.
Items reported
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
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): July 1, 2022
(Exact name of registrant as specified in its charter)
Commission File Number: 001-34028
| (State or other jurisdiction of incorporation) | (IRS Employer Identification No.) | ||||
(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:
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
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.
Filing of General Rate Cases by California-American Water Company and Missouri-American Water Company
On July 5, 2022, California-American Water Company (“California-American Water”), a wholly owned subsidiary of American Water Works Company, Inc. (the “Company”), announced that on July 1, 2022 it filed an application with the California Public Utilities Commission (“CPUC”) to set new rates in each of its service areas for 2024 through 2026. The application is seeking an increase in 2024 revenue of $57.1 million and a total increase in revenue over the 2024 to 2026 period of $99.0 million. The requested increase excludes proposed reductions of $1.3 million in 2024 and $3.7 million over the 2024 to 2026 period for excess accumulated deferred income taxes (“EADIT”) as a result of the Tax Cuts and Jobs Act of 2017 (the “TCJA”). If approved by the CPUC, the new rates would take effect on January 1, 2024.
On July 5, 2022, Missouri-American Water Company (“Missouri-American Water”), a wholly owned subsidiary of the Company, announced that on July 1, 2022 it filed a request with the Missouri Public Service Commission (“MoPSC”) to review its water and wastewater rates. The request seeks annualized incremental revenue of $116.2 million based on a requested return on equity of 10.5% and a capital structure with an equity component of 50.4%. The requested increase excludes a proposed reduction of $11.1 million for EADIT as a result of the TCJA. If approved by the MoPSC, the new rates would be expected to take effect in mid-2023.
A copy of the press release issued by each of California-American Water and Missouri-American Water on July 5, 2022 has been filed as Exhibit 99.1 and Exhibit 99.2 hereto, respectively, and is incorporated herein by reference. References and links to websites and other information contained in these press releases are not provided as active hyperlinks, and the information contained in or accessed through these hyperlinks shall not be incorporated into, or form a part of, this Current Report on Form 8-K.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements included in this Current Report on Form 8-K (or the exhibits thereto) are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words with prospective meanings such as “intend,” “plan,” “estimate,” “believe,” “anticipate,” “expect,” “predict,” “project,” “propose,” “assume,” “forecast,” “outlook,” “future,” “pending,” “goal,” “objective,” “potential,” “continue,” “seek to,” “may,” “can,” “will,” “should” and “could,” or the negative of such terms or other variations or similar expressions. These forward-looking statements are predictions based on the Company’s current expectations and assumptions regarding future events. They are not guarantees or assurances of any outcomes, performance or achievements, and readers are cautioned not to place undue reliance upon them. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors. Actual results may differ materially from those discussed in the forward-looking statements included in this Current Report on Form 8-K as a result of the factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission (the “SEC”) on February 16, 2022, and other filings with the SEC, and additional risks and uncertainties, including with respect to (1) the terms of any settlement agreement or stipulation, and/or final order of the CPUC and/or the MoPSC, with respect to the above-referenced general rate cases; (2) the timing of the implementation of new rates under each such general rate case; (3) regulatory, legislative, local or municipal actions affecting the water and wastewater industries, which could adversely affect the Company, California-American Water and/or Missouri American Water; and (4) other economic, financial, political, business and other factors that may impact or affect the water and wastewater industries generally or the Company, California-American Water or Missouri-American Water specifically.
These forward-looking statements are qualified by, and should be read together with, the risks and uncertainties set forth above and the risk factors included in the Company’s annual and quarterly reports as filed with the SEC, and readers should refer to such risks, uncertainties and risk factors in evaluating such forward-looking statements. Any forward-looking statements speak only as of the date of this Current Report on Form 8-K. The Company does not have any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as otherwise required by the federal securities laws. New factors emerge from time to time, and it is not possible for us to predict all such factors. Furthermore, it may not be possible to assess the impact of any such factor on the Company’s, California-American Water’s or Missouri-American Water’s business, either viewed independently or together, or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.
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Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits to this Current Report have been provided herewith as noted below:
| Exhibit No. | Description | |||||||
| 99.1* | ||||||||
| 99.2* | ||||||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are included and formatted as Inline XBRL). | |||||||
| * Filed herewith. | ||||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMERICAN WATER WORKS COMPANY, INC. | ||||||||||||||
| Dated: | July 5, 2022 | By: | /s/ JOHN C. GRIFFITH | |||||||||||
| John C. Griffith | ||||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||
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Exhibit 99.1
CALIFORNIA AMERICAN WATER APPLIES FOR NEW REVENUE TO FUND INFRASTRUCTURE AND SERVICE IMPROVEMENTS
SAN DIEGO (July 5, 2022) – California American Water has filed an application to set new rates in each of its service areas for 2024 through 2026. The new rates would take effect January 1, 2024, pending approval by the California Public Utilities Commission. The application includes infrastructure renewals, wildfire mitigation, climate resiliency efforts and strengthening affordability programs.
The application seeks a request from California American Water for $462 million for infrastructure improvements and investment between 2023-25. The request provides funding to renew and replace water treatment facilities, pumps, and pipelines in our systems around the state. This application is seeking to raise revenue by approximately $95 million over three years, beginning with a $56 million increase proposed for January 1, 2024. This increase is based on 2024 authorized revenues calculated at current rates. The average impact to customer bills on January 1, 2024 will be between approximately $2.45 and $7.87 per month, depending on region. Specific increases for each service area vary and are detailed in the filing.
“This filing marks the beginning of an 18-month regulatory approval process during which our customers will be notified and have the opportunity for input several times before a decision is made” said California American Water President Kevin Tilden. “Our application balances the infrastructure investment and operations needed to support sustainable water and wastewater systems while addressing affordability and climate resiliency. This proposal seeks to continue to provide customers with excellent value for their service and maintain our systems to supply high-quality water and wastewater service.”
One particular focus of the request is to improve the climate change resiliency of our systems. These measures include fire assessment analysis at company facilities around the state as well as active mitigation measures undertaken in some high-risk zones. The activities also include the bolstering of back-up generator power for use during emergencies like wildfires or Public Safety Power Shutoffs.
California American Water also continues its commitment to affordability with proposals for rate consolidation, increased funding for customer assistance programs and additional hardship funds.
The increased rates proposed in the rate petition are a request only. The CPUC will make the final decision regarding the actual increase. The CPUC will hold Public Participation Hearings on this request to get input from customers and the public. California American Water will notify customers of the time, date and location once the hearings are set. Rates will not be adjusted until this request undergoes extensive public scrutiny by the CPUC. This process will include extensive independent review and public evidentiary hearings. The process is expected to conclude in late 2023, with new rates taking effect by January 1, 2024.
About California American Water: California American Water, a subsidiary of American Water (NYSE: AWK), provides high-quality and reliable water and wastewater services to more than 725,000 people. Information regarding California American Water’s service areas can be found on the company’s website www.californiaamwater.com.
About American Water: With a history dating back to 1886, American Water (NYSE: AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to more than 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.
Media Contacts
Evan Jacobs
Director of External Affairs
Phone: 707-495-6135
Email: evan.jacobs@amwater.com
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Exhibit 99.2
Missouri American Water Submits Rate Review Request to Missouri Public Service Commission
Request driven by nearly $770 million investment in water and wastewater systems from 2021 through mid-2023
ST. LOUIS, Mo. (July 5, 2022) – On Friday, July 1, 2022, Missouri American Water filed a request with the Missouri Public Service Commission (MoPSC) to review its water and wastewater rates. The request is driven by nearly $770 million in completed or planned investments from January 2021 to May 2023.
The MoPSC’s review of the company’s request is expected to take 11 months. Any new rates approved by the MoPSC are not expected to become effective until mid-2023.
“Our proactive investments are a critical component to providing safe, clean and reliable service to families and businesses across the state,” said Rich Svindland, president of Missouri American Water. “Many of our pipes and treatment plants were built 50-100 years ago, and our continued investments are key to protecting customers, the communities we serve and the environment.”
Investments in the rate review include the replacement or installation of 280 miles of aging water and wastewater pipelines – about the distance from St. Louis to Joplin – to help reduce main breaks and sewer overflows. Improvement projects also include the upgrading of treatment plants, storage tanks, wells, pumping and lift stations, fire hydrants, meters and more.
Key water projects include:
•St. Louis County – Replacement of the 1970s electrical switchgear at the Central Treatment Plant to prevent electrical failure to the pumping station and replacement of the electrical, mechanical and controls equipment at the North Treatment Plant primary flocculation basin that was installed in 1964
•St. Charles County – Construction of a new two-million-gallon elevated storage tank to stabilize water pressure and enhance fire protection
•Joplin – Replacement of the pre-1900 high service pump station building and its pumps
•St. Joseph – Replacement of key components of the water softening basin at the treatment plant
•Jefferson City – Replacement of 6,500 feet of cast-iron pipe, installed in 1954, with PVC along Industrial Drive
•Mexico and Warrensburg – Replacement of the chlorine gas systems with sodium hypochlorite systems
Key wastewater projects include:
•Incline Village – Replacement and expansion of the wastewater treatment plant
•Arnold – Replacement of more than 4,300 feet of wastewater pipe to reduce inflow and infiltration
•Rogue Creek and Maplewood – Replacement of aging lift stations
•El Chaparrel – Connection to the Cedar Hill lagoon system to maintain regulatory compliance
Missouri American Water is also targeting the replacement of lead service lines.
“We are meeting and surpassing new federal regulations to remove all lead service lines by 2030 in communities we serve, including the customer-owned portion of the service line,” said Rebecca Losli, Vice President of Engineering and Business Development. “Many lead service lines are located in older, underserved areas of our community, and we are replacing the entire lead service line at no direct cost to our customers.”
If the request is approved by regulators as proposed, the bill for a typical volumetric water customer using an average of 4,200 gallons monthly would increase about $12 or $13 per month. The bill for a typical volumetric wastewater customer would stay about the same, and the bill for flat rate wastewater customers would increase by $3 to $10 per month, depending on the service area. Current bills include an adjustment for the Water and Sewer Infrastructure Act to help pay for certain completed improvement projects. Under the rate review process, these projects are reviewed and may be included in any new rates set by the MoPSC.
For more information on the company’s rate review, visit www.missouriamwater.com and select “Your Water and Wastewater Rates” under the Customer Service menu.
Missouri American Water
Missouri American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and wastewater services to approximately 1.5 million people. For more, visit missouriamwater.com and follow Missouri American Water on Twitter, Facebook, LinkedIn and Instagram.
American Water
With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs approximately 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to an estimated 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.
Media Contact:
Samantha E. Williams
External Affairs Manager
314-437-8738
Samantha.williams@amwater.com
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