8-KOther Events

American Water Works Company, Inc. 8-K Report, Corporate Update (Nov 7, 2013)

Filed November 7, 2013For Securities:AWK

Summary

This 8-K filing from American Water Works Company, Inc. (AWK) on November 7, 2013, discloses a potential regulatory issue concerning its California subsidiary, California American Water (Cal-Am). The Monterey County District Attorney has informed Cal-Am that sludge disposed of from its Ambler Park and Toro Park water treatment plants prior to May 2013 may have violated California hazardous waste regulations. Specifically, the sludge may have exceeded the soluble threshold limit concentration requirements for hazardous waste and was subsequently disposed of at non-hazardous waste landfills. The District Attorney has requested a meeting with Cal-Am before considering enforcement action, which could involve significant civil penalties. While the company is unable to predict the outcome, it does not currently expect a material impact on its financial results, liquidity, or financial position.

Key Highlights

  • 1California American Water (Cal-Am) received notification of a potential violation of hazardous waste disposal regulations.
  • 2Sludge from Ambler Park and Toro Park water treatment plants, disposed of prior to May 2013, may have exceeded hazardous waste limits.
  • 3The disposed sludge was sent to non-hazardous waste landfills.
  • 4The Monterey County District Attorney has been informed and is considering enforcement action.
  • 5Potential civil penalties could be up to $25,000 per violation under the Health and Safety Code and $2,500 per violation under the Business and Professions Code.
  • 6Cal-Am has modified its waste disposal procedures to ensure proper characterization and management.
  • 7The company does not anticipate a material impact on its financial results, liquidity, or financial position from this matter.

Frequently Asked Questions

American Water Works' California subsidiary, Cal-Am, is being investigated by the Monterey County District Attorney for potentially violating hazardous waste disposal regulations. Sludge from its water treatment plants may have been improperly disposed of at non-hazardous waste landfills.

The Monterey County District Attorney has indicated potential civil penalties of up to $25,000 per violation under the Health and Safety Code and $2,500 per violation under the Business and Professions Code. However, American Water Works states it does not expect this matter to have a material impact on its results of operations, liquidity, or financial position.

Cal-Am has already submitted requested documentation to the Monterey County Health Department and has modified its waste disposal procedures to ensure that all wastes are properly characterized and managed before disposal.

The improper sludge disposal occurred prior to May 2013. The Monterey County Health Department initially notified Cal-Am on June 13, 2013, and the Monterey County District Attorney informed Cal-Am on November 6, 2013. The 8-K filing reporting this was made on November 7, 2013.