Summary
American Water Works Company, Inc. (AWK) has announced a significant development regarding its wholly-owned subsidiary, Maryland American Water. The Public Service Commission of Maryland (MDPSC) has approved a joint settlement in the general rate case for Maryland American Water. This approval is expected to result in a consolidated annualized increase in water revenues of approximately $2 million. The revenue increase will be phased in, with approximately $1 million effective immediately and the remaining $1 million beginning January 1, 2027. This rate adjustment is primarily driven by substantial capital investments of approximately $22 million made by Maryland American Water since its last rate case in 2019. The settlement also provides clarity on key financial metrics, with Maryland American Water's projected return on equity at 9.75%, common equity ratio at 52.32%, and debt ratio at 47.68%.
Key Highlights
- 1MDPSC has approved a joint settlement for Maryland American Water's general rate case.
- 2An annualized increase in water revenues of approximately $2 million is approved.
- 3The revenue increase will be implemented in two phases: $1 million effective immediately and $1 million effective January 1, 2027.
- 4The rate adjustment reflects approximately $22 million in capital investments since 2019.
- 5Maryland American Water's projected return on equity is set at 9.75%.
- 6The approved common equity ratio is 52.32% and the debt ratio is 47.68%.