8-KOther Events

American Water Works Company, Inc. 8-K Report, Corporate Update (Nov 2, 2020)

Filed November 2, 2020For Securities:AWK

Summary

This 8-K filing by American Water Works Company, Inc. (AWK) announces a proposed settlement agreement for its subsidiary, Pennsylvania-American Water Company (PAWC), in a general rate case before the Pennsylvania Public Utility Commission (PaPUC). PAWC initially sought a significant increase in annualized revenues of $138.6 million over two years. The settlement, reached with the Bureau of Investigation and Enforcement, proposes a more modest annualized revenue increase of $70.5 million over the same period.

Key Highlights

  • 1PAWC and Bureau of Investigation and Enforcement have reached a settlement agreement on a general rate case.
  • 2The settlement proposes an annualized revenue increase of $70.5 million over two years, a reduction from the initial request of $138.6 million.
  • 3The settlement is subject to review and a recommended decision from an Administrative Law Judge by December 24, 2020.
  • 4A final order from the PaPUC is expected in the first quarter of 2021.
  • 5The actual revenue increase granted by the PaPUC could differ from the settlement terms.
  • 6The filing includes standard cautionary statements regarding forward-looking statements and associated risks.

Frequently Asked Questions

The main purpose of this filing is to inform investors about a proposed settlement agreement reached by American Water Works Company's subsidiary, Pennsylvania-American Water Company, in its general rate case with the Pennsylvania Public Utility Commission.

The settlement agreement proposes an annualized revenue increase of $70.5 million over a two-year period. This is a significant reduction from PAWC's initial request for $138.6 million in annualized revenue increases.

A recommended decision from the Administrative Law Judge is expected by December 24, 2020. American Water Works Company expects the Pennsylvania Public Utility Commission to issue a final order during the first quarter of 2021.

Yes, the settlement is not final. The Administrative Law Judge must issue a recommended decision, and the PaPUC will issue a final order, which could differ from the settlement terms. There are also risks related to potential regulatory, legislative, or economic factors that could impact the outcome or future operations.