American Water Works Company, Inc.0001410636false00014106362022-02-242022-02-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 24, 2022
American Water Works Company, Inc.
(Exact name of registrant as specified in its charter)
Commission File Number: 001-34028
Delaware51-0063696
(State or other jurisdiction
of incorporation)		(IRS Employer
Identification No.)
1 Water Street
Camden, NJ 08102-1658
(Address of principal executive offices, including zip code)
(856) 955-4001
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common stock, par value $0.01 per shareAWKNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 8.01.    Other Events.
West Virginia Public Service Commission Issues Order in General Rate Case
On February 24, 2022, the Public Service Commission of West Virginia (the “PSC”) issued an order approving a request to establish new water and wastewater rates pursuant to a general rate case filed on April 30, 2021 by the West Virginia subsidiary of American Water Works Company, Inc. (the “Company”). Under the PSC’s order, the Company’s West Virginia subsidiary has been authorized annualized incremental revenues of $14.8 million, excluding (i) reductions of $1.6 million for excess accumulated deferred income taxes as a result of the Tax Cuts and Jobs Act and (ii) $10.2 million for infrastructure surcharges. The new rates are effective as of February 25, 2022, and were based on an authorized return on equity (“ROE”) of 9.80%, compared to an authorized ROE of 9.75% as approved in the subsidiary’s last general rate case effective February 2019. The PSC order also provides for an aggregate authorized rate base of $734.0 million, as well as an authorized capital structure with an equity component of 47.97%.

A copy of the press release issued by the Company’s West Virginia subsidiary on February 25, 2022 has been filed as Exhibit 99.1 hereto and is incorporated herein by reference.
Item 9.01.    Financial Statements and Exhibits.
(d) Exhibits.

The following exhibits to this Current Report have been provided herewith (as noted below):
Exhibit No. Description
99.1* 
104Cover Page Interactive Data File (the cover page XBRL tags are included and formatted as Inline XBRL).
* Filed herewith.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  AMERICAN WATER WORKS COMPANY, INC.
    
Dated:February 25, 2022 By:/s/ M. SUSAN HARDWICK
   M. Susan Hardwick
   President, Chief Executive Officer and Chief Financial Officer
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Exhibit 99.1
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West Virginia American Water Receives Rate Order from Public Service Commission

CHARLESTON, W.Va. (Feb. 25, 2022) – In an order entered on February 24, 2022, the Public Service Commission of West Virginia (PSC) approved a request to establish new water and wastewater rates for West Virginia American Water customers. The $23.5 million order recognizes the company’s response to the COVID-19 pandemic, troubled system acquisition investment and Distribution System Improvement Charge (DSIC) investment. The order includes a $1.6 million reduction for excess accumulated deferred income taxes (EADIT) which is an offset included in the approved base rates. Factoring in the company’s current DSIC surcharge on customer bills, the actual increase water customers would experience totals $13.0 million in annual revenue or approximately 8.33 percent over current rates.

The company’s rate request, filed on April 30, 2021, was driven by $258 million in infrastructure investments since its last rate case in 2018, including upgrades to water mains, treatment plants, tanks, valves, booster stations and other infrastructure necessary to maintain and improve water quality, service reliability and fire protection. Unfortunately, much of that investment was not recognized in the PSC’s order.

“We appreciate the careful consideration and review from the Public Service Commission in our request to establish new customer rates following significant infrastructure investment by our company over the last three years,” said Robert Burton, president of West Virginia American Water. “While the results of the order may impact our infrastructure replacement rate moving forward, we are still reviewing the intricacies of the order and how it will impact the company and our customers.”

The new rates, effective today, follow a 300-day statutory review of the company’s rate request. The PSC has ordered a novel rate structure that attempts to provide additional benefit to low-income customers. As ordered, this new rate structure limits the company’s ability to fully identify rate impacts at this time for specific customer classes. The average residential water customer can expect to see an estimated 8.33 percent base rate increase above what they are currently paying, while the company’s wastewater customers in Fayette County can expect to see an estimated 14.87 percent rate increase per month. The aforementioned novel rate structure, which freezes rate impacts for low-income customers, will likely cause these average percent increases to rise in the final rate calculation.

For those families who face economic challenges, West Virginia American Water offers several targeted customer assistance programs. Residential customers have the option of paying bills under a budget billing plan to have predictable monthly payments and avoid seasonal spikes, and customers with past-due bills are offered flexible payment arrangements through installment agreements.








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The company also offers a reduced rate program that provides a year-round 20 percent discount on residential water and wastewater rates for low-income customers determined eligible by the West Virginia Department of Health and Human Resources. Additionally, the company helps fund the West Virginia Utility Assistance Program Dollar Energy Fund, through which eligible customers can receive one-time emergency grants applied directly to their water bills. Customers can learn more about assistance options by calling 1-800-685-8660 or visiting the Customer Assistance Programs page on the company website.

West Virginia American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water services to approximately 560,000 people. With a history dating back to 1886, American Water (NYSE:AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to an estimated 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.

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Media Contact:
Megan Hannah, Senior Manager, Government and External Affairs
Megan.Hannah@amwater.com
Office: (304) 340-2088
Mobile: (304) 380-8455
www.westvirginiaamwater.com