What is the primary purpose of these filings?

The primary purpose of these filings is to announce the submission of partial settlement agreements in the general rate cases for American Water Works' subsidiaries, California-American Water (Cal Am) and Virginia American Water. These agreements are crucial for determining the rate increases these subsidiaries can implement to recover significant capital investments made in their water and wastewater infrastructure.

What are the expected revenue impacts from these settlements?

For Cal Am, the partial settlement proposes incremental annualized revenues of $24 million for 2027, $21 million for 2028, and $22 million for 2029. For Virginia American Water, the settlement proposes an annualized revenue increase of $16 million. These figures are driven by substantial capital investments made by each subsidiary.

Are there any significant unresolved issues in these rate cases?

Yes, in the Cal Am rate case, the treatment of Construction Work in Progress (CWIP) in the rate base remains a primary pending issue. If CWIP is excluded from the rate base, the potential incremental annualized revenues for the 2027 and 2028 test years could be reduced. The Virginia American Water settlement appears more comprehensive, though it is still subject to final VSCC review and approval.

When will these new rates likely take effect?

For Cal Am, new rates are expected to be implemented as of January 1, 2027, upon a final decision from the CPUC regarding the partial settlement. For Virginia American Water, interim rates are already in effect since May 2, 2026, with final rates to be determined upon the VSCC's approval of the stipulation, and any difference between interim and final rates will be subject to refund.

AWK 8-K SEC Disclosure

01—Abstract

Summary

Summary of the 8-K filed June 9, 2026. Cited figures are marked; the original filing is the authoritative source.

American Water Works Company, Inc. (AWK) announced on June 9, 2026, that its subsidiaries, California-American Water Company (Cal Am) and Virginia American Water, have filed partial settlement agreements in their respective general rate cases.

These filings are significant as they outline potential increases in annualized revenues driven by substantial capital investments made by both subsidiaries. The settlements, if approved by regulatory bodies, are expected to provide AWK with increased revenue streams that are crucial for recovering investments in infrastructure and service improvements. The Cal Am settlement with the California Public Utilities Commission's Public Advocates Office aims to determine incremental annualized revenue of $24 million^a for 2027, $21 million for 2028, and $22 million for 2029, based on approximately $750 million in capital investments.

A key unresolved issue is the treatment of construction work in progress (CWIP), which could impact the final revenue figures. The Virginia American Water settlement with the Virginia State Corporation Commission and intervenors proposes a $16 million^b annualized revenue increase, reflecting about $115 million in capital investments and an agreed-upon return on equity of 9.75%. Investors should closely monitor the final regulatory approvals and the impact of any remaining issues, particularly CWIP for Cal Am, on the expected revenue recoveries.

02—Key points

Key Highlights

California-American Water (Cal Am) filed a partial settlement agreement with the California Public Utilities Commission (CPUC) regarding its general rate case.
The Cal Am settlement proposes incremental annualized revenues of $24 million (2027), $21 million (2028), and $22 million (2029), primarily to recover ~$750 million in capital investments.
A key unresolved issue in the Cal Am rate case is the treatment of Construction Work in Progress (CWIP), which could reduce potential revenue increases if excluded from rate base.
Virginia American Water filed a stipulation of settlement with the Virginia State Corporation Commission (VSCC) for its general rate case.
The Virginia American Water settlement agrees to a $16 million annualized revenue increase, reflecting ~$115 million in capital investments and a 9.75% ROE.
Interim rates have been effective for Virginia American Water since May 2, 2026, with any difference between interim and final rates subject to refund.
Both settlements are subject to final review and approval by their respective state commissions.

03—Questions

Frequently Asked Questions

What is the primary purpose of these filings?
The primary purpose of these filings is to announce the submission of partial settlement agreements in the general rate cases for American Water Works' subsidiaries, California-American Water (Cal Am) and Virginia American Water. These agreements are crucial for determining the rate increases these subsidiaries can implement to recover significant capital investments made in their water and wastewater infrastructure.
What are the expected revenue impacts from these settlements?
For Cal Am, the partial settlement proposes incremental annualized revenues of $24 million for 2027, $21 million for 2028, and $22 million for 2029. For Virginia American Water, the settlement proposes an annualized revenue increase of $16 million. These figures are driven by substantial capital investments made by each subsidiary.
Are there any significant unresolved issues in these rate cases?
Yes, in the Cal Am rate case, the treatment of Construction Work in Progress (CWIP) in the rate base remains a primary pending issue. If CWIP is excluded from the rate base, the potential incremental annualized revenues for the 2027 and 2028 test years could be reduced. The Virginia American Water settlement appears more comprehensive, though it is still subject to final VSCC review and approval.
When will these new rates likely take effect?
For Cal Am, new rates are expected to be implemented as of January 1, 2027, upon a final decision from the CPUC regarding the partial settlement. For Virginia American Water, interim rates are already in effect since May 2, 2026, with final rates to be determined upon the VSCC's approval of the stipulation, and any difference between interim and final rates will be subject to refund.

04—Continue

← View all 8-K filings