8-KOther EventsExhibits & Filings

American Water Works Company, Inc. 8-K Report, Corporate Update (Dec 7, 2017)

Filed December 7, 2017For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) announced a significant development regarding its subsidiary, Pennsylvania-American Water Company (PAWC). On December 7, 2017, the Pennsylvania Public Utility Commission (PaPUC) officially approved a settlement agreement for PAWC's general rate case. This approval is a positive outcome for AWK, as it allows PAWC to increase its annualized water and wastewater revenues by $62 million. The approved rate increase is set to take effect on January 1, 2018. This is a crucial detail for investors as it signals an immediate positive impact on the subsidiary's revenue stream and, consequently, on American Water Works' overall financial performance. The unanimous approval by the PaPUC suggests a constructive regulatory environment and a successful negotiation process for PAWC.

Key Highlights

  • 1Pennsylvania Public Utility Commission (PaPUC) approved a settlement agreement for Pennsylvania-American Water Company (PAWC) on December 7, 2017.
  • 2PAWC, a wholly owned subsidiary of AWK, will receive additional annualized water and wastewater revenues of $62 million.
  • 3The new rates authorized by the PaPUC order are scheduled to be implemented on January 1, 2018.
  • 4The PaPUC's order for approval was unanimous.
  • 5This filing (Item 8.01) pertains to other events.
  • 6The filing includes related exhibits: a PAWC press release and a Rate Case Fact Sheet.

Frequently Asked Questions

The main financial impact is the approval of $62 million in additional annualized revenues for its subsidiary, Pennsylvania-American Water Company (PAWC), starting January 1, 2018. This is expected to positively affect AWK's overall revenue and profitability.

The new water and wastewater rates approved by the PaPUC order will be implemented on January 1, 2018.

The filing indicates that the PaPUC order approving the settlement agreement was unanimous, suggesting a broadly agreeable resolution among the parties involved.

The subsidiary involved is Pennsylvania-American Water Company (PAWC), which is a wholly owned subsidiary of American Water Works Company, Inc. (AWK).