American Water Works Company, Inc 8-K, filed Nov 8, 2023
American Water Works Company, Inc. (AWK)
8-K
2023-11-08
For: 2023-11-08
View Original
Added on
April 09, 2026
About this 8-K
American Water Works Company, Inc filed this 8-K on November 8, 2023.
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): November 8, 2023
(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 Rates Adjustment Request by Pennsylvania-American Water Company
On November 8, 2023, Pennsylvania-American Water Company (“Pennsylvania American Water”), a subsidiary of American Water Works Company, Inc. (the “Company”), filed a request with the Pennsylvania Public Utility Commission (the “PaPUC”) to adjust its water and wastewater rates. The request seeks aggregate annualized incremental revenue of approximately $204 million, excluding projected infrastructure surcharges of $20 million. The request is based on a proposed return on equity of 10.95% and a capital structure with an equity component of 55.30% and a debt component of 44.70%. The requested annualized incremental revenue increase is driven primarily by an estimated $1 billion of incremental capital investments to be made through mid-2025. The request also proposes a mechanism to address compliance with evolving environmental requirements, such as emerging federal regulations for lead and PFAS. If approved by the PaPUC, the new rates would be expected to take effect on August 7, 2024, unless otherwise provided by the PaPUC.
A copy of the press release issued by Pennsylvania American Water on November 8, 2023 has been filed as Exhibit 99.1 hereto and is incorporated herein by reference. References and links to websites and other information contained in this press release 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, 2022, as filed with the Securities and Exchange Commission (the “SEC”) on February 15, 2023, 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 PaPUC with respect to the above-referenced request; (2) the timing of the implementation of new rates thereunder; (3) regulatory, legislative, local or municipal actions affecting the water and wastewater industries, which could adversely affect the Company or Pennsylvania American Water; (4) the amount and timing of proposed Pennsylvania American Water capital expenditures associated with infrastructure surcharges; and (5) other economic, financial, political, business and other factors that may impact or affect the water and wastewater industries generally or the Company or Pennsylvania 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 or Pennsylvania 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.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits to this Current Report have been provided herewith as noted below:
2
| Exhibit No. | Description | |||||||
| 99.1* | ||||||||
| 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: | November 8, 2023 | By: | /s/ JOHN C. GRIFFITH | |||||||||||
| John C. Griffith | ||||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||
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Exhibit 99.1
Pennsylvania American Water Files Rate Request
Driven by $1 Billion in Investment
Request driven by company’s commitment to providing safe,
reliable and affordable water and wastewater service
Mechanicsburg, Pa. (Nov. 8, 2023) – Pennsylvania American Water filed a rate adjustment request today with the Pennsylvania Public Utility Commission reflecting $1 billion in water and wastewater system investments to be made through mid-2025 to continue providing safe and reliable service. The request reinforces the company’s commitment to investing in its water and wastewater systems to replace aging infrastructure, provide reliable service, enhance water quality, comply with environmental regulations, and increase fire protection for customers.
“There is tremendous need for significant and costly improvements to the Commonwealth’s water and wastewater infrastructure, and Pennsylvania American Water is playing a key role by making necessary investments and replacing century-old pipes, pumps, and treatment facilities,” said Pennsylvania American Water President Justin Ladner. “We do this judiciously and with customer affordability in mind, which is why we’re also proposing to make more customers eligible for our bill assistance programs and mitigate increases for wastewater service.”
If the company’s proposed rates are approved as requested, the monthly water bill for the average residential customer would increase by approximately $17 per month, the average monthly residential wastewater bill for sanitary sewer service would decrease by approximately $5 per month, and the average monthly residential wastewater bill for combined sewer service would increase by approximately $4 per month. Any new rates would not take effect until August 2024 except for certain recently acquired systems, where the rate increases are proposed to take effect at later dates.
As part of its commitment to affordability, the company is proposing to expand its income-based monthly bill discount program to include customers between 150 percent and 200 percent of the Federal Poverty Level (FPL), resulting in an estimated 55,000 additional customers being eligible to receive discounted service. The company’s current assistance program offers three tiers of discounts of 30-80 percent off monthly water and wastewater bills for customers with incomes up to 150 percent of the FPL. A detailed affordability analysis of the company’s water and wastewater services as a comparison of monthly bills to monthly household income demonstrates that customer bills currently are and will remain affordable under the company’s proposed rates for the majority of customers.
The PUC’s rate review process offers multiple opportunities for customer involvement. Customers can participate through written comments, attendance at public input hearings, and
consumer advocacy organizations that participate in the proceedings. For more information on the company’s rate proposal and to find out what actions customers may take, call customer service at 1-800-565-7292 or visit pennsylvaniaamwater.com and select “Your Water and Wastewater Rates” under the Customer Service & Billing menu.
About American Water American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.
For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X (formally Twitter) and Instagram.
About Pennsylvania American Water
Pennsylvania American Water, a subsidiary of American Water is the largest investor-owned water utility in the state, providing high-quality and reliable water and wastewater services to approximately 2.3 million people.
Media Contact:
Laura Martin
Sr. Director, Government & External Affairs
C: 304-932-7158
E: laura.martin@amwater.com
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