Summary
American Water Works Company, Inc. (AWK) announced through its wholly owned subsidiary, Missouri American Water, the filing of a general rate case with the Missouri Public Service Commission (MoPSC) on July 1, 2024. This filing seeks to increase annualized incremental revenue by approximately $148 million, in addition to approved infrastructure surcharges of $48 million. The request is primarily driven by $1.5 billion in capital investments, both completed and planned, from January 2023 through May 2026. Investors should note that the outcome of this rate case, including the final approved revenue increase and the timing of its implementation, is subject to the MoPSC's decision, which is anticipated by mid-2025. The company has proposed a return on equity of 10.75% and a capital structure of 50.54% equity and 49.46% debt. This filing represents a significant step in recovering capital expenditures, which is crucial for maintaining and upgrading water and wastewater infrastructure and supporting future growth.
Key Highlights
- 1Missouri American Water filed a general rate case with the MoPSC seeking $148 million in annualized incremental revenue.
- 2The rate increase request is also supported by an additional $48 million in approved infrastructure surcharges.
- 3The filing is driven by approximately $1.5 billion in capital investments completed and planned through May 2026.
- 4The proposed return on equity is 10.75% with a capital structure of 50.54% equity and 49.46% debt.
- 5The general rate case proceeding is expected to conclude by mid-2025.
- 6This filing is a key mechanism for AWK's subsidiary to recover significant infrastructure investments.