Summary
American Water Works Company, Inc. (AWK) has announced a significant development regarding its Pennsylvania subsidiary, Pennsylvania-American Water Company (PAWC). The Pennsylvania Public Utility Commission (PaPUC) has approved a settlement agreement stemming from a general rate case filed by PAWC. This approval allows PAWC to implement new water and wastewater rates, leading to an authorized increase in annualized revenues.
Key Highlights
- 1Pennsylvania Public Utility Commission (PaPUC) unanimously approved a settlement agreement for Pennsylvania-American Water Company (PAWC).
- 2PAWC, a subsidiary of AWK, will receive an authorized increase in annualized water and wastewater revenues of $70.5 million.
- 3The revenue increase will be implemented over a two-year period.
- 4The new rates authorized by the PaPUC are effective as of January 28, 2021.
- 5This regulatory approval is a positive development for AWK's earnings potential in its Pennsylvania operations.
Frequently Asked Questions
The main event is the approval by the Pennsylvania Public Utility Commission (PaPUC) of a settlement agreement for a general rate case filed by American Water Works Company's subsidiary, Pennsylvania-American Water Company (PAWC). This approval allows PAWC to increase its authorized annualized water and wastewater revenues.
PAWC is authorized to implement additional annualized water and wastewater revenues totaling $70.5 million over a two-year period.
The new water and wastewater rates, as authorized by the PaPUC order, are effective as of January 28, 2021.
Yes, as PAWC is a subsidiary of AWK, this regulatory approval of increased revenues will positively impact AWK's overall financial results, particularly its earnings from its Pennsylvania operations.