#1AMERICAN WATER AMERICAN WATER 2023 Second Quarter Earnings Conference Call July 27, 2023#2AMERICAN WATER Aaron Musgrave Vice President, Investor Relations 2#3Forward-Looking Statements AMERICAN WATER Safe Harbor This presentation includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to place undue reliance upon them. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors. Actual results may differ materially from those discussed in the forward-looking statements included in this presentation. The factors that could cause actual results to differ are discussed in the Appendix to this presentation, and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, as filed with the SEC on July 26, 2023. 3#4AMERICAN WATER M. Susan Hardwick President and Chief Executive Officer 4#5Strong Q2 and 1H 2023 Results EPS Growth Driven by Regulatory Execution, Favorable Weather Earnings Per Share $2.37* $2.07 $1.44 $1.20 $0.87 $0.91 2022 2023 Q1 Q2 AMERICAN WATER Q2/YTD 2023 Highlights ✓ 2023 Q2 EPS of $1.44 driven by higher revenue on increased rate base; favorable impact due to weather of ~$0.07 ✓ 1H 2023 includes new rates effective in PA, IL, VA and MO; cases filed in IN, WV and KY; CA case proceeding as expected ✓ Invested approx. $1.2 billion in infrastructure in 1H 2023 ✓ $555M of acquisitions under agreement as of June 30 ✓ Issued approx. $1.7 billion in common stock in March ✓ Issued $1.0 billion in exchangeable senior notes in June, due 2026 2021-2022 Sustainability Report published in July *YTD EPS in 2023 does not sum as a result of the common equity issuance executed in March 2023 5#62023 EPS Guidance* and Long-Term Targets Affirmed AWK EPS Growth Triangle 7-9% EPS CAGR Target Business Mix 100% Regulated and Regulated-Like Earnings Regulated Acquisitions Military Services 0.2% Group 1.5-2.5% AMERICAN WATER 2023 EPS Guidance Affirming 2023 EPS Guidance Range of $4.72 to $4.82, on a weather-normalized basis Higher revenues from investments in rate base while managing operating costs drives EPS growth Successful regulatory, financing, and operational execution drives confidence in our outlook Regulated Investment CAPEX *On a weather-normalized basis . 5-7% Long-Term Financial Targets Attractive, Long-Term Sustainable Shareholder Returns ●• EPS Growth 7-9% Dividend Growth 7-9% . ESG Leadership Premium + • Customer Affordability + ➤ Rate Base Growth 8-9% Dividend Payout Ratio 55-60% ➤Debt to Capital <60% 6#7AMERICAN WATER John Griffith Executive VP & Chief Financial Officer 7#8Successfully Completed 2023 Financing Plan > AMERICAN WATER Closing Date ~$1.7 Billion Common Stock Issuance Public Offering Price Use of Proceeds March 3, 2023 12,650,000 Shares $135.50/Share Repaid outstanding commercial paper obligations and for general corporate purposes ~$1.0 Billion Exchangeable Senior Notes due 2026 Executed on our plan to issue a significant portion of expected $2B of equity need in. Five-Year Plan (2023-2027) Successfully completed our long-term debt financing for the year with issuance of Exchangeable Senior Notes Both issuances demonstrate proactive execution in a challenging market environment to fund growth and manage financing costs for the benefit of customer affordability and shareholder value Size Interest Rate Conversion Premium Settlement Use of Proceeds 3.625% per year ~22.5% Cash, up to the aggregate principal amount (remaining value, if any, settled in cash, shares, or combination of cash/shares, at AWCC's election) Repaid outstanding commercial paper obligations and for general corporate purposes 8#9Strong Balance Sheet and Credit Ratings AWK Long-Term Senior Unsecured Ratings S&P Global A (Stable Outlook) Moody's Baa1 (Stable Outlook) Low risk business profile ✓ Strong regulatory jurisdictions ✓ Supportive financial plans Ratings and Stable Outlook affirmed at S&P / Moody's (Feb. '23/Dec. '22) Consolidated Debt Maturity Profile as of June 30, 2023 (Rounded) ($ in millions) $1,500 Total Debt to Total Capital** As of June 30, 2023 54% Liquidity Profile ($ in millions, rounded) Available Liquidity as of 6/30/23 $780 $700 $600 $475 $3,469 $794 $720 Cash $100 $2,675 Credit 2023 2024 2025 2026* 2027 *Proceeds of $720 million from the note related to the sale of HOS are due to the Company in December 2026 ** Percentage shown is net of cash and cash equivalents of $794 million AMERICAN WATER Long-Term Target ≤ 60% Credit Facility Amended on 10/26/22 Increased Credit Facility capacity by $500 million to $2.75 billion from $2.25 billion Extended maturity to October 2027 Increased capacity to support growing business and capital investment plan 9#10Details of Second Quarter 2023 EPS $1.20 0.07 Q2 2022 Weather in Q2 2023 0.47 AMERICAN WATER (0.13) (0.06) $1.44 (0.11) * Revenue O&M Depreciation LT Financing Q2 2023 ~75% of inflationary costs incl. in revenue from recent rate cases Investment Growth *Reflects $(0.10) per share of share count dilution, which also offsets the amount of avoided interest expense. 10#11Details of Year-To-Date 2023 EPS 0.07 $2.07 0.79 June YTD 2022 Weather in Q2 2023 Revenue AMERICAN WATER (0.25) (0.12) $2.37 (0.13) (0.04) (0.02) O&M Depreciation * LT Financing ST Debt Financing Other, net June YTD 2023 Investment Growth ~75% of inflationary costs incl. in revenue from recent rate cases *Reflects $(0.11) per share of share count dilution, which also offsets the amount of avoided interest expense. 11#122023 EPS Guidance Affirmed $4.45* 1.35-1.45 2022 Actual Revenue (0.38-0.42) (0.24-0.26) O&M Depreciation (0.36-0.38) 0.02-0.04 AMERICAN WATER $4.72-$4.82* (0.08-0.10) ** LT Financing ST Debt Financing, net of Interest Income Other, net 2023 Guidance ~75% of inflationary costs incl. in revenue from recent rate cases Excludes weather of $0.06 per share favorable in Q3 2022 and $0.07 per share favorable in Q2 2023 Investment Growth ** Reflects $(0.28-0.30) per share of share count dilution, which also offsets the amount of avoided interest expense. 12#13Strong Outlook for Acquisitions in 2023 and Beyond AMERICAN WATER Butler Area Sewer Authority, PA Wastewater Closed As of June 30, 2023 7,100 Customer Connections 10 Acquisitions in 5 States, $33M ΜΟ 2 2 = 1 2 1 1 4 2 Under Agreement As of June 30, 2023 74,800 Customer Connections 32 Acquisitions in 10 States, $555M PA MO IL WV VA CA IN ΙΑ NJ MD 1 1 2 2 3 33 M 3 4 $232 million purchase price 14,700 equivalent customer connections Signed October 11, 2022 Expected to close by the end of 2023, pending regulatory approval. Granite City, IL Wastewater $83 million purchase price 26,000 equivalent customer connections Signed April 6, 2023 Now expected to close by the end of 2023, pending regulatory approval. =1.3 Million Customer Connections in Pipeline Sign Purchase Agreement Receive Appraisals and Pursue Regulatory Approvals Close Transaction, with Customers Billed at their Historical or Modified Rates Regulated Acquisitions: Typical Fair Market Value Process Upon Next Rate Case, Move Customers onto Applicable AW Utility Rates 13#14AMERICAN WATER Cheryl Norton Executive VP & Chief Operating Officer 14#15AMERICAN WATER Capital Investment Strong Cap Ex Growth in 1H 2023, as Planned Drives Improved Water Quality, Reliability, and Earnings Growth AWK EPS Growth Triangle 7-9% EPS CAGR Target Business Mix 100% Regulated and Regulated-Like Earnings Regulated Acquisitions Military Services 0.2% Group $2.9B $0.4B Regulated Acquisitions 1.5-2.5% $1.25B $240M $1.20B $33M $2.5B Regulated Investment CAPEX 5-7% $1.0B $1.15B 1H 2022 1H 2023 2023E Regulated System Investments 15#16General Rate Case and Regulatory Updates AMERICAN WATER CALIFORNIA AMERICAN WATER INDIANA AMERICAN WATER WEST VIRGINIA AMERICAN WATER KENTUCKY AMERICAN WATER VIRGINIA • Rate Cases in Progress Rate case filed 7/1/22 • Will establish rates for the period 2024-2026 Three-year capital investment of $462 million • Rates expected to be effective beginning Jan. 2024 • Rate case filed 3/31/23 • • Capital Investment of $875 million • Rates expected to be effective over three steps beginning Jan. 2024, May 2024, and May 2025 • Rate case filed 5/1/23 • Capital Investment of $340 million • Rates expected to be effective beginning Feb. 2024 • Rate case filed 6/30/23 • Capital Investment of $330 million • Rates expected to be effective beginning Feb. 2024 • Completed Rate Cases in 2023 • General Rate Case • Additional authorized revenues of $11 million Federal PFAS Recap On March 14, 2023, the United States Environmental Protection Agency (EPA) announced the proposed National Primary Drinking Water Regulations for six per- and polyfluoroalkyl substances (PFAS). Based upon preliminary estimates, American Water believes an investment in excess of $1 billion of capital to install additional treatment facilities over a 3 to 5-year period could be possible in order to comply with the rule as proposed. We also believe operating expenses related to testing and treatment could be near $50 million annually. American Water is currently part of Multi-District Litigation against multiple PFAS manufacturers because we firmly believe that the ultimate responsibility for the cleanup of these contaminants should fall to the polluters. MISSOURI AMERICAN WATER • • General Rate Case • Additional authorized revenues of $95 million, including $51M for infrastructure surcharges previously approved Other Regulatory Updates On June 29, the California CPUC issued a decision on the cost of capital application authorizing an 8.98% ROE with an equity component of 57.04%. On June 30, Cal Am filed an advice letter to seek a 52 basis point increase to Cal Am's ROE for 2023, which was approved on July 25, increasing the return on equity to 9.50%, effective July 31. AMERICAN WATER • Effective 4/24/23 • Effective 5/28/23 16#17New Sustainability Report and Disclosures Highlights AWK's ESG Leadership and Commitment to Transparency American Water Sustainability Report 2021-2022 AMERICAN WATER WE KEEP LIFE FLOWING AMERICAN WATER American Water 2021-2022 Sustainability Report • Highlights our commitment to excellent water quality, customer affordability, and investing in infrastructure, among other key topics identified in the Company's most recent materiality assessment Prepared in accordance with Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), Task Force on Climate-Related Financial Disclosures (TCFD), and other leading standards Additional Recent Disclosures and Recognition ● Inclusion, Diversity & Equity website, DiversityatAW.com, refreshed with employee and Board diversity results through June 30, 2023 First time disclosure of the estimated racial diversity of the communities we serve¹ compared to the racial diversity of our employees as self-identified Received an upgraded MSCI ESG Rating, improving from "A" to "AA" Annual Sustainability Report Publication Will Begin in 2024 (Containing FY 2023 Actuals) 1 Estimated based on residential customer zip code matching of United States 2022 American Community Survey data 17#18Q&A Session AMERICAN WATER 18#19Investor Relations Contacts Aaron Musgrave, CPA Vice President, Investor Relations [email protected] AMERICAN WATER Jack Quinn, CPA Senior Manager, Investor Relations [email protected] Janelle McNally Senior Manager, Investor Relations & ESG [email protected] Kelley Uyeda Analyst, Investor Relations & ESG [email protected] Upcoming Events Q3 2023 Earnings Call EEI Financial Conference November 2, 2023 (projected) November 12-14, 2023 19#20Appendix AMERICAN WATER 20#21Forward-Looking Statements AMERICAN WATER Certain statements made, referred to or relied upon in this presentation including, without limitation, with respect to 2023 earnings guidance, the Company's long-term financial, growth and dividend targets, the ability to achieve the Company's strategies and goals, including with respect to its ESG focus, the outcome of the Company's pending acquisition activity, the amount and allocation of projected capital expenditures; and the amount and timing of estimated revenues from rate cases and other government agency authorizations, are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. In some cases, these forward-looking statements can be identified by words with prospective meanings such as "intend," "plan," "estimate," "believe," "anticipate," "expect," "predict," "project," "propose," "assume," "forecast," "outlook," "likely," "uncertain," "future," "pending," "goal," "objective," "potential," "continue," "seek to," "may," "can," "will," "should" and "could" and or the negative of such terms or other variations or similar expressions. These forward-looking statements are predictions based on American Water's current expectations and assumptions regarding future events. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to place undue reliance upon them. The forward-looking statements are subject to a number of estimates, assumptions, known and unknown risks, uncertainties and other factors. The Company's actual results may vary materially from those discussed in the forward-looking statements included in this presentation as a result of the factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and subsequent filings with the SEC, and because of factors such as: the decisions of governmental and regulatory bodies, including decisions to raise or lower customer rates; the timeliness and outcome of regulatory commissions' and other authorities' actions concerning rates, capital structure, authorized return on equity, capital investment, system acquisitions and dispositions, taxes, permitting, water supply and management, and other decisions; changes in customer demand for, and patterns of use of, water and energy, such as may result from conservation efforts, or otherwise; limitations on the availability of the Company's water supplies or sources of water, or restrictions on its use thereof, resulting from allocation rights, governmental or regulatory requirements and restrictions, drought, overuse or other factors; a loss of one or more large industrial or commercial customers due to adverse economic conditions, or other factors; changes in laws, governmental regulations and policies, including with respect to the environment, health and safety, data and consumer privacy, security and protection, water quality and water quality accountability, contaminants of emerging concern, public utility and tax regulations and policies, and impacts resulting from U.S., state and local elections and changes in federal, state and local executive administrations; the Company's ability to collect, distribute, use, secure and store consumer data in compliance with current or future governmental laws, regulations and policies with respect to data and consumer privacy, security and protection; weather conditions and events, climate variability patterns, and natural disasters, including drought or abnormally high rainfall, prolonged and abnormal ice or freezing conditions, strong winds, coastal and intercoastal flooding, pandemics (including COVID-19) and epidemics, earthquakes, landslides, hurricanes, tornadoes, wildfires, electrical storms, sinkholes and solar flares; the outcome of litigation and similar governmental and regulatory proceedings, investigations or actions; the risks associated with the Company's aging infrastructure, and its ability to appropriately improve the resiliency of or maintain and replace, current or future infrastructure and systems, including its technology and other assets, and manage the expansion of its businesses; exposure or infiltration of the Company's technology and critical infrastructure systems, including the disclosure of sensitive, personal or confidential information contained therein, through physical or cyber attacks or other means; the Company's ability to obtain permits and other approvals for projects and construction of various water and wastewater facilities; changes in the Company's capital requirements; the Company's ability to control operating expenses and to achieve operating efficiencies; the intentional or unintentional actions of a third party, including contamination of the Company's water supplies or the water provided to its customers; the Company's ability to obtain and have delivered adequate and cost-effective supplies of pipe, equipment (including personal protective equipment), chemicals, power and other fuel, water and other raw materials, and to address or mitigate supply chain constraints that may result in delays or shortages in, as well as increased costs of, supplies, products and materials that are critical to or used in the Company's business operations; the Company's ability to successfully meet its operational growth projections, either individually or in the aggregate, and capitalize on growth opportunities, including, among other things, with respect to acquiring, closing and successfully integrating regulated operations, the Company's Military Services Group entering into new military installation contracts, price redeterminations and other agreements and contracts with the U.S. government, and realizing anticipated benefits and synergies from new acquisitions; risks and uncertainties following the completion of the sale of the Company's Homeowner Services Group ("HOS"), including the Company's ability to receive any contingent consideration provided for in the HOS sale, as well as amounts due, payable and owing to the Company under the seller note when due and the ability of the Company to redeploy successfully and timely the net proceeds of this transaction into the Company's Regulated Businesses; risks and uncertainties associated with contracting with the U.S. government, including ongoing compliance with applicable government procurement and security regulations; cost overruns relating to improvements in or the expansion of the Company's operations; the Company's ability to successfully develop and implement new technologies and to protect related intellectual property; the Company's ability to maintain safe work sites; the Company's exposure to liabilities related to environmental laws and similar matters resulting from, among other things, water and wastewater service provided to customers; the ability of energy providers, state governments and other third parties to achieve or fulfill their greenhouse gas emission reduction goals, including without limitation through stated renewable portfolio standards and carbon transition plans; changes in general economic, political, business and financial market conditions; access to sufficient debt and/or equity capital on satisfactory terms and as needed to support operations and capital expenditures; fluctuations in inflation or interest rates and the Company's ability to address or mitigate the impacts thereof; the ability to comply with affirmative or negative covenants in the current or future indebtedness of the Company or any of its subsidiaries, or the issuance of new or modified credit ratings or outlooks by credit rating agencies with respect to the Company or any of its subsidiaries (or any current or future indebtedness thereof), which could increase financing costs or funding requirements and affect the Company's or its subsidiaries' ability to issue, repay or redeem debt, pay dividends or make distributions; fluctuations in the value of, or assumptions and estimates related to, its benefit plan assets and liabilities, including with respect to its pension and other post-retirement benefit plans, that could increase expenses and plan funding requirements; changes in federal or state general, income and other tax laws, including (i) future significant tax legislation or regulations; and (ii) the availability of, or the Company's compliance with, the terms of applicable tax credits and tax abatement programs; migration of customers into or out of the Company's service territories and changes in water and energy consumption resulting therefrom; the use by municipalities of the power of eminent domain or other authority to condemn the systems of one or more of the Company's utility subsidiaries, or the assertion by private landowners of similar rights against such utility subsidiaries; any difficulty or inability to obtain insurance for the Company, its inability to obtain insurance at acceptable rates and on acceptable terms and conditions, or its inability to obtain reimbursement under existing or future insurance programs and coverages for any losses sustained; the incurrence of impairment charges, changes in fair value and other adjustments related to the Company's goodwill or the value of its other assets; labor actions, including work stoppages and strikes; the Company's ability to retain and attract highly qualified and skilled employees and/or diverse talent; civil disturbances or unrest, or terrorist threats or acts, or public apprehension about future disturbances, unrest, or terrorist threats or acts; and the impact of new, and changes to existing, accounting standards. These forward-looking statements are qualified by, and should be read together with, the risks and uncertainties set forth above and the risk factors included in American Water's annual, quarterly and other SEC filings, and readers should refer to such risks, uncertainties and risk factors in evaluating such forward-looking statements. Any forward-looking statements American Water makes speak only as of the date of this presentation. American Water does not have or undertake any obligation or intention to update or revise any forward- looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as otherwise required by the federal securities laws. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. Furthermore, it may not be possible to assess the impact of any such factor on the Company's businesses, either viewed independently or together, or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. The foregoing factors should not be construed as exhaustive. 21#22SUCCESSFUL TRANSITION OF OWNERSHIP OF WASTEWATER UTILITY SYSTEM ASSETS AT NAVAL STATION MAYPORT NAMED 2023 BEST OF THE DECADE HONOREE PROVIDED BY MINORITY BUSINESS NEWS USA & WOMEN'S ENTERPRISE USA AMERICAN WATER 2023 MID-YEAR HIGHLIGHTS LAUNCHED AUTOPAY VIA MYWATER, AMERICAN WATER'S CUSTOMER SELF SERVICE PORTAL AND ACCEPTANCE OF CREDIT CARD PAYMENTS EARNED THE 2023 VETS INDEXES 3-STAR EMPLOYER DESIGNATION AND 2023 TOP RESERVIST FRIENDLY EMPLOYERS RECOGNIZED BY 50/50 WOMEN ON BOARDS™ FOR ITS GENDER-BALANCED BOARD OF DIRECTORS & FORTUNE'S MODERN BOARD 25 RANKING PUBLISHED 2022 ESG DATA AND INCLUSION, DIVERSITY & EQUITY SUMMARIES NAMED IN 2023 TO IMPACT SHARES NAACP MINORITY EMPOWERMENT ETF $950K FUNDING PROVIDED BY THE AMERICAN WATER CHARITABLE FOUNDATION TO SUPPORT PROGRAMS & ORGANIZATIONS IMPORTANT TO OUR EMPLOYEES AND OUR COMMUNITIES 22 22#23State Legislation & Regulation Enable Growth Fair Value 11 Consolidated Tariffs 11 Forward Looking Test Year 9 AMERICAN WATER Infrastructure Mechanisms 10 10 CA G ≤ = ≥ ≥ MO CA MO J CA KY NJ ΙΑ NJ HI PA IL PA ΙΑ TN VA IN VA IL WANN PA IN VA ≤ = ≥ ≥ IA NJ PA TN KY VA KY WV KY WV IN MO WV MD MD Water Quality Accountability Legislation 3 IN, MO, NJ 23#24Closed Acquisitions June 30, 2023 NUMBER STATE WATER CUSTOMER CONNECTIONS OF SYSTEMS Missouri 4 600 New Jersey 2 1,600 Illinois 2 1,300 Indiana 1 200 AMERICAN WATER WASTEWATER CUSTOMER CONNECTIONS TOTAL CUSTOMER CONNECTIONS 600 1,200 1,400 3,000 1,300 2,600 200 Pennsylvania 1 100 100 Total 10 3,800 3,300 7,100 24#25Acquisitions Under Agreement June 30, 2023 NUMBER STATE WATER CUSTOMER CONNECTIONS OF SYSTEMS Pennsylvania Missouri 9 4 1,800 1,000 AMERICAN WATER WASTEWATER CUSTOMER CONNECTIONS TOTAL CUSTOMER CONNECTIONS 29,600 900 31,400 1,900 Illinois 600 4 26,400 27,000 West Virginia 3 3,700 500 4,200 Virginia 3 1,600 1,400 3,000 California 3 1,300 1,300 Indiana 2 200 200 Iowa 2 200 100 300 New Jersey 1 Maryland Total 32 22 3,800 3,800 1 1,700 1,700 12,100 62,700 74,800 25#26Timely Recovery of Capital and Operating Costs AMERICAN WATER 1 2 American Water's Jurisdictions 10 10 As of 2010 As of 2022 11 11 5 5 10 7 1 6 6 Revenue Stabilization Infrastructure Mechanisms Expense Mechanisms Consolidated Tariffs Fair Value Forward Looking Test Year Capital Recovery (2023-2027 Plan) Infrastructure Surcharge Mechanisms =45% Forward Test Years ≈30% Traditional Recovery =25% 26#27Rate Filings Summary ($ in millions) Rate Filings Completed* Effective since January 1, 2023 $67 $340 $273 Requested Revenue in Pending Base Rate Proceedings AMERICAN WATER $151 $4 $155 Rate Cases (Includes Step Increases) Infrastructure Charges Total Rate Cases* ** Infrastructure Charges Total * Annualized revenue increase for rates effective since January 1, 2023 ** Excludes revenue already approved through infrastructure mechanisms 27#28Rates Effective Since... ($ in millions) January 1, 2023 Rate Cases & Step Increases Date Effective Annualized Revenue Increases AMERICAN WATER Infrastructure Charges Date Effective Annualized Revenue Increases Illinois 1/1/2023 $67(a) West Virginia (DSIC) 1/1/2023 $7 Pennsylvania (DSIC) 1/1/2023 3 California, Step Increase 1/1/2023 13 Missouri (WSIRA) 1/16/2023 14 Pennsylvania 1/28/2023 138(b) Indiana (SEI) 3/8/2023 6(e) Indiana (DSIC) 3/23/2023 20 Virginia 4/24/2023 11(c) New Jersey (DSIC) 4/29/2023 16 New Jersey (WSIC) 6/29/2023 1 Missouri 5/28/2023 44(d) Sub-Total $67 Sub-Total $273 2023 Total $340 a) The Company's Illinois subsidiary was authorized additional annualized revenues of $67.1 million, excluding reductions in revenues for infrastructure surcharges in the amount of $18.3 million. b) The Company's Pennsylvania subsidiary was authorized additional annualized revenues of $138 million, excluding reductions in revenues for infrastructure surcharges in the amount of $24.3 million. c) On April 24, 2023, the Company's Virginia subsidiary was authorized additional annualized revenues of $10.75 million. Interim rates were effective May 1, 2022, and the difference between interim and final Commission approved rates are subject to refund with interest within 90-days of the date of the Order. with carrying 28 d) The Company's Missouri subsidiary was authorized additional annualized revenues of $44.3 million, excluding reductions in revenues for infrastructure surcharges in the amount of $50.7 million. e) The Company's Indiana subsidiary was authorized additional annualized revenues of $5.5 million, 80% of which will be collected now, the remaining 20% will be collected in the next rate case, costs.#29Pending Rate Case Filings ($ in millions) Rate Cases Filed California (a) Indiana (b) West Virginia (c) Kentucky (d) AMERICAN WATER Docket/Case Number Date Filed Case No. A.22-07-001 7/1/2022 Requested Revenue Increase $37 ROE Requested Rate Base NA $921 Cause No. 45870 3/31/2023 43 10.60% 1,614 Docket No. 23-0383-W-42T 5/1/2023 45 10.50% 955 Case No. 2023-00191 6/30/2023 26 10.75% 588 Infrastructure Charges Filed Kentucky (QIP) Case No. 2023-00030 3/1/2023 Sub-Total $151 $4 Sub-Total $4 Total $155 $4,078 $30 $30 $4,108 a) b) c) d) The Company's California subsidiary has requested additional annualized revenues of $55.8 million for test year 2024. This excludes the proposed step rate and attrition rate increase for 2025 and 2026 of $19.5 million and $19.8 million. The total revenue requirement request, based on present rates effective at the time of filing, for the three year rate case cycle is $95.1 million. The Company updated its filing in January 2023 to incorporate a decoupling proposal, the revised requested additional annualized revenues for the test year 2024 is $36.5 million. This excludes the proposed step rate and attrition rate increase for 2025 and 2026 of $20.1 million and $19.8 million. The total revenue requirement request for the three year rate case cycle, incorporating updates to present rate revenues and forecasted demand, is $76.4 million. The Company's Indiana subsidiary has requested additional annualized revenues of $43.2 million for Step 1 proposed to effective Jan 2024, this excludes the $40.5 million for infrastructure surcharges. This excludes the proposed step 2 and 3 rate increase proposed to be effective in May 2024 and May 2025 in the amount of $18.1 million and $25.4 million, respectively. The total revenue requirement request, based on present rates effective at the time of filing, for the three step rate case cycle is $86.7 million. The Company's West Virginia subsidiary has requested additional annualized revenues of $44.9 million, this excludes the $6.9 million for infrastructure surcharges. The Company's Kentucky subsidiary has requested additional annualized revenues of $26.1 million, this excludes the $9.8 million for infrastructure surcharges. 29#30Regulatory Information - Top 10 States AMERICAN WATER CALIFORNIA ILLINOIS INDIANA KENTUCKY Authorized Rate Base* $667,632(g) $1,642,200 $1,182,170 ROE 9.50% (a) 9.78% 9.80% 9.70% Equity 57.04% (a) 49.00% 53.41% (b) 48.90% $443,654 MISSOURI $2,318,849c) 9.75%(d) 50.00% (e) Effective Date of Rate Case 1/1/2021(g) 1/1/2023 5/1/2020 6/28/2019 5/28/2023 NEW JERSEY PENNSYLVANIA TENNESSEE VIRGINIA WEST VIRGINIA Authorized Rate Base* $4,146,492 $5,141,180(c) $132,015 $275,038(c) $734,028 ROE 9.60% 10.00% (d) 10.00% 9.70% 9.80% Equity 54.56% 55.20%(e) 34.38% 40.73% 47.97% Effective Date of Rate Case 9/1/2022 1/28/2023 11/1/2012 4/24/2023(f) 2/25/2022 *Rate Base stated in $000s a) On June 29, 2023, Decision 23-06-025 set the authorized cost of capital through 2024. CA has a separate Cost of Capital case which sets the rate of return outside of a general rate proceeding. The decision established an ROE of 8.98% effective 30-days after the decision date. On June 30, 2023, the Company filed to implement an automatic ROE adjustment to 9.50% for 2023 based on the Commission approved Water Cost of Capital Adjustment Mechanism (WCCM), which was approved on July 25, 2023, increasing the return on equity to 9.50%, effective July 31, 2023. b) The Authorized Equity excludes cost-free items or tax credit balances at the overall rate of return which lowers the equity percentage as an alternative to the common practice of deducting such items from rate base. c) The Authorized Rate Base listed is the Company's view of the Rate Base allowed in the case; the Rate Base was not disclosed in the Order or the applicable settlement agreement. d) The ROE is the Company's view of the ROE allowed in the case; however, the ROE was not disclosed in the Order or the applicable settlement agreement. e) f) The equity ratio listed is the Company's view of the equity ratio allowed in the case; the actual equity ratio was not disclosed in the Order or the applicable settlement agreement. Interim rates were effective May 1, 2022 and received final Order April 24, 2023. g) The Rate Base and Effective date are based off of Year 1 of the rate case. Annual adjustments are made for Year 2 and 3 which reflect authorized capital improvements for Rate Base and inflationary adjustments for O&M. 30