Summary
American Water Works Company, Inc. (AWK) announced a significant development regarding its wholly owned subsidiary, Missouri American Water Company. On May 7, 2025, the Missouri Public Service Commission (MoPSC) approved a settlement in a general rate case, granting Missouri American Water an annualized increase of $63.1 million in water and wastewater revenues. This figure excludes $63.3 million in currently collected infrastructure surcharge revenues. This rate increase is primarily driven by substantial capital investments of $1.1 billion completed and planned by Missouri American Water between January 2023 and May 2025. The approved settlement establishes a rate base of $3.2 billion and sets the return on equity (ROE) at 9.75% and the common equity ratio at 50.0%. These financial metrics are consistent with those determined in the company's 2023 general rate case, providing a degree of regulatory stability for its Missouri operations.
Key Highlights
- 1Missouri Public Service Commission (MoPSC) approved a settlement in Missouri American Water's general rate case on May 7, 2025.
- 2Missouri American Water will receive an annualized revenue increase of $63.1 million, excluding existing infrastructure surcharges.
- 3The approved revenue increase is a result of $1.1 billion in capital investments made or planned by Missouri American Water from January 2023 to May 2025.
- 4The settlement establishes a rate base of $3.2 billion for Missouri American Water.
- 5The authorized return on equity (ROE) is set at 9.75% and the common equity ratio at 50.0%.
- 6These ROE and common equity ratio are consistent with those approved in the company's previous 2023 general rate case.
- 7The MoPSC approved the settlement without modifications.