8-KOther Events

American Water Works Company, Inc. 8-K Report, Corporate Update (Oct 16, 2017)

Filed October 16, 2017For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) announced a proposed settlement agreement for its subsidiary, Pennsylvania-American Water Company (PAWC), regarding a general rate case. PAWC had initially sought $108 million in additional annualized revenues. Under the proposed settlement, PAWC would receive approximately $62 million in additional annualized water and wastewater revenues. This settlement, if approved by the Pennsylvania Public Utility Commission (PaPUC), is expected to be approved by December 7, 2017, with new rates taking effect on January 1, 2018. Investors should note that this agreement is a proposal and subject to the PaPUC's final approval after public hearings and an initial decision from administrative law judges. The actual revenue increase is less than initially requested, which may impact future earnings expectations.

Key Highlights

  • 1Pennsylvania-American Water Company (PAWC) has reached a proposed settlement in its general rate case.
  • 2The settlement proposes an additional $62 million in annualized water and wastewater revenues for PAWC.
  • 3This amount is lower than the $108 million initially requested by PAWC.
  • 4The settlement is contingent on approval by the Pennsylvania Public Utility Commission (PaPUC).
  • 5Parties aim for PaPUC approval by December 7, 2017.
  • 6New rates are expected to be implemented on January 1, 2018, if approved.
  • 7The outcome remains subject to regulatory review and potential changes.

Frequently Asked Questions

This filing is significant because it details a proposed settlement in a crucial rate case for AWK's subsidiary, Pennsylvania-American Water Company. The outcome of this settlement will directly impact the revenue and profitability of PAWC, a substantial part of AWK's operations.

Under the proposed settlement agreement, PAWC is expected to receive approximately $62 million in additional annualized water and wastewater revenues. This is less than the $108 million initially requested.

No, the $62 million is part of a proposed settlement agreement. It requires approval from the Pennsylvania Public Utility Commission (PaPUC) after a public hearing and an initial decision by administrative law judges. Therefore, the final amount could differ or the settlement may not be approved.

If the proposed settlement agreement is approved by the PaPUC, the parties aim to have the new water and wastewater rates implemented on January 1, 2018.