#1AMERICAN WATER AMERICAN WATER Investor Presentation December 2023#2Forward-Looking Statements Safe Harbor AMERICAN WATER 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 September 30, 2023, as filed with the SEC on November 1, 2023. Non-GAAP Financial Information This presentation includes non-GAAP financial measures. Further information regarding these non-GAAP financial measures, including a reconciliation of each of these measures to the most directly comparable GAAP measure, is included in the Appendix to this presentation. 2#3Strong 2023 Results: Executing the Plan EPS Growth Driven by Regulatory Execution, Favorable Weather $3.70 Earnings Per Share $4.03 $1.66 $1.63 $2.37 $2.07 2022 2023 AMERICAN WATER 2023 YTD Highlights ✓ 2023 includes new rates effective in PA, IL, VA and MO; cases filed in IN, WV, KY and VA; CA case proceeding as expected Invested approx. $1.8 billion in infrastructure ✓ $611M of acquisitions under agreement as of September 30 Issued approx. $1.7 billion in common stock in March and $1.0 billion in exchangeable senior notes in June, due 2026 2021-2022 Sustainability Report published in July ✓ Q3 and YTD 2023 EPS of $1.66 and $4.03 driven by higher revenue on increased rate base and favorable impact due to weather of ~$0.04 and ~$0.11, respectively I First Half Q3 3#42024 EPS Guidance of $5.10 to $5.20 Long-Term Targets Affirmed EPS GROWTH OUTLOOK 7-9% Long-Term EPS CAGR Target DRIVERS 100% Regulated and Regulated-Like Earnings MSG Maximize Revenue Opportunities REGULATED ACQUISITIONS 2% Customer Additions AMERICAN WATER Long-Term Financial Targets Drivers of Sustainable Shareholder Return • EPS Growth 7-9% Dividend Per Share Growth 7-9% . Customer Affordability + • ESG Leadership + RATE BASE GROWTH 8-9% (includes acquisitions) Additional Supportive Targets Dividend Payout Ratio • Debt to Capital 55-60% <60% 4#5New Capital Plan: Investments to Support System Needs, Including ~$1 Billion for PFAS Capital Plan ($ in billions) 5 Year Capital Increase: ~$2B* $16 - $17 $14-$15 $3.1 $1.5 - $2.0 $1.5 - $2.0 2024 *Includes $1 billion of cap ex related to PFAS AMERICAN WATER 10 Year Capital Increase: ~$4B* $34 - $38 $30 - $34 $4 - $5 $3 - $4 Regulated Acquisitions $30 - $33 $27 - $30 $12.5 - $13.0 $14.5 - $15.0 2023-2027 (Prior Plan) 2024 - 2028 2023-2032 (Prior Plan) 2024-2033 Regulated System Investments 5#6Review of 2024-2028 Capital Investment Plan Includes $1B for Treatment of PFAS at EPA's Proposed New Levels AMERICAN WATER Federal PFAS Rule Recap ➤ March 2023: The United States EPA proposed drinking water standards for six PFAS American Water estimates ~$1 billion of capital over a 3 to 5-year period, mostly in 2025-2027, will be needed to comply with the rule as proposed, plus ~$50 million annually for operating expenses ➤ American Water is currently part of Multi-District Litigation against multiple PFAS manufacturers to support our view that the ultimate responsibility for the cleanup of these contaminants should fall to the polluters Capital Plan Bridge ($ in billions) $0.6 $1.0 $0.4 $14-15 2023-27 Capital Plan Higher need in out-year as 2023 rolls off Mostly in 2025-2027 Expected higher need annually $0.5 $16-17 ($0.5) Includes meter and hydrant projects as examples Includes lower risk main and service replacement projects Plan roll forward to 2028 Estimated total PFAS capital Acquired systems' follow-on capital Emerging capital projects Deferred projects via a risk-based assessment 2024-28 Capital Plan 6#7General Rate Case and Regulatory Updates AMERICAN WATER • 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 AMERICAN WATER • CALIFORNIA INDIANA AMERICAN WATER WEST VIRGINIA AMERICAN WATER KENTUCKY AMERICAN WATER VIRGINIA AMERICAN WATER • Rates expected to be retroactive back to Jan. 1, 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 • Rate case filed 11/1/23 • Capital Investment of ~$110 million • Interim rates expected to be effective beginning May 2024 • Rate case filed 11/8/23 • Capital Investment of ~$1 billion • PENNSYLVANIA AMERICAN WATER Rates expected to be effective beginning Aug. 2024 VIRGINIA Completed Rate Cases in 2023 • General Rate Case • Additional authorized revenues of $11 million AMERICAN WATER MISSOURI AMERICAN WATER • Effective 4/24/23 • General Rate Case . Additional authorized revenues of $95 million, including $51M for infrastructure surcharges previously approved •Effective 5/28/23 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, California American Water filed a request to seek a 52 basis point increase to California American Water's ROE for 2023, which was approved on July 25, increasing the ROE to 9.50%, effective July 31. On October 16, California American Water filed a request to increase the ROE to 10.2% for 2024, which was approved on November 15, effective January 1, 2024. On October 10, 2023, the Monterey Peninsula Water Management District (MPWMD) adopted a resolution of necessity to authorize it to file an eminent domain lawsuit with respect to the Company's Monterey, California water system assets. While the Company cannot currently predict the outcome of any such lawsuit, the Company believes that, given existing legal precedent related to similar attempts by public agencies in California to take over water systems, California American Water should be able to defend itself successfully against an eminent domain lawsuit by the MPWMD. 7#8Continued Focus on Customer Affordability $ 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 2012 AMERICAN WATER Monthly Water Bill as % of Median Household Income* Values around Affordability ➤ Focused on keeping customer bills affordable compared to income (wallet share) ➤ Supportive of consolidated tariffs that allow customers to benefit from efficiencies of scale Continue to promote and advocate for low-income assistance programs (incl. federal) and tariffs Regulated O&M Efficiency Ratio** 2014 2016 2018 2020 2022 2023E 2028E 46.1% 2010 39.8% 36.6% 34.5% 33.7% 32.6% *** ≤30.0% 2013 2016 2019 2022 9/30/2023 2028 Target * Figure is estimated based on data from the US Census Bureau American Community Survey based on zip codes served by American Water. American Water does not collect household income data from its customers. ** Non-GAAP Measure - O&M Efficiency Ratio = Adjusted Regulated O&M Expenses (O&M Expenses is most comparable GAAP measure)/Adjusted Regulated Operating Revenues (Operating Revenues is most comparable GAAP measure). This calculation assumes purchased water revenues approximate purchased water expenses. *** A reconciliation to a most comparable forward-looking GAAP measure is not available without unreasonable effort 8#9Summary of YTD 2023 Results Affirming 2023 EPS Guidance of $4.72 to $4.82 (weather-normalized) • 2023 Growth Drivers Revenue growth from infrastructure investments New rates mitigating the majority of inflationary cost increases and higher pension costs Regulated acquisitions also driving revenue growth AMERICAN WATER 2023 Headwinds Elevated chemical costs through Q3, seeing signs of leveling off Higher interest rate environment 0.11 $3.70 (0.06) Q3 YTD 2022 1.15 Weather in 2023 Weather in Revenue 2022 *Includes $(0.22) of share count dilution. (0.33) (0.17) 0.01 $4.03 (0.28) (0.10) O&M ~75% of inflationary costs incl. in revenue from recent rate cases Depreciation LT Financing * ST Debt Financing Other, net Q3 YTD 2023 Investment Growth 9#10Investments Drive Continued Rate Base Growth Foundational to Overall Growth Regulated Capital Investments (Includes Acquisitions) $ in billions Sept. YTD 2022 Sept. YTD 2023 2023E AMERICAN WATER Estimated Rate Base* (Includes Acquisitions) $ in billions ~8-9% CAGR for Rate Base $2.9 $17.8 $19.0 $16.3 $15.0 $13.7 $1.9 $1.8 $11.6 $12.5 2017 2018 2019 2020 2021 2022 9/30/23 2033E Note: annual rate base totals include New York American Water through 2021. New York's 2021 rate base was $0.5 billion. * An approximation of rate base, which includes Net Utility Plant not yet included in rate base, pending rate case filings/outcomes. 10#11Strong Outlook for Acquisitions Closed As of September 30, 2023 ~7,900 Customer Connections 14 Acquisitions in 6 States, $36M Under Agreement As of September 30, 2023 ~88,100 Customer Connections 32 Acquisitions in 10 States, $611M PA MO IL 6 3 WV IN IL NJ CA VA 1 Closed two VA acquisitions PA 1 MO IN 1 + in early Oct.; ΙΑ $34M, 8K connections NJ 1 (WV, NJ) MD 222 3333 12 000 AMERICAN WATER Butler Area Sewer Authority, PA Wastewater Amended $230 million purchase price ~14,700 equivalent customer connections Expected to close by the end of 2023, pending regulatory approval. Granite City, IL Wastewater Amended $86 million purchase price ~26,000 equivalent customer connections Expected to close around year-end 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 11#12Considerations for 2024 Outlook 2024 EPS Guidance of $5.10 to $5.20 • 2024 Growth Drivers Revenue growth in base rates and in infrastructure mechanisms from capital investments Regulated acquisitions also driving revenue growth Limited additional share dilution and limited additional inflationary cost pressure * $4.72 - $4.82 1.05-1.25 AMERICAN WATER (0.05) - (0.15) (0.30) - (0.35) 0.03 -0.08 $5.10 - $5.20 (0.35) - (0.45) O&M Depreciation 2023 Guidance Revenue * Excludes weather of $0.11 per share net favorable in 2023 ($0.07 in Q2, $0.04 in Q3 2023) Reflects ($0.06) per share of share count dilution ** Investment Growth ** Financing MSG & Other, net 2024 Guidance 12#13Financing the 2024-2028 Capital Investment Plan ($ in millions) Prior Plan: 2023-2027 New Plan: 2024-2028 AMERICAN WATER Operating Cash Flows $10,100 Operating Cash Flows $12,000 Incremental Debt Financing $5,300 Equity Issuance *$2,000 Incremental Debt Financing Equity Issuance $7,000 $1,000 Sale Proceeds (HOS) $720 Sale Proceeds (HOS) $720 $1.0B equity issuance in 2024-2028 plan, driven by increased five-year capital plan . Likely to issue the planned equity in the middle of the new, 2024-2028 plan, subject to market conditions * $1.7 billion of common stock issued on March 3, 2023 13#14Continued Strong Balance Sheet and Credit Ratings AWK Long-Term Senior Unsecured Ratings S&P Global A (Stable Outlook) Moody's Baa1 (Stable Outlook) Total Debt to Total Capital AMERICAN WATER As of September 30, 2023 54% Long-Term Target <60% Ratings and Stable Outlook affirmed at S&P / Moody's (Feb. '23/Dec. '22) Low risk business profile ✓ Strong regulatory jurisdictions Supportive financial plans Consolidated Debt Maturity Profile as of September 30, 2023 (Rounded) Note: Percentage shown is net of cash and cash equivalents of $628 million. Liquidity Profile ($ in millions, rounded) ($ in millions) $1,500 $780 $875 $700 $600 $475 $720 2024 2025 2026* 2027 2028 *Proceeds of $720 million from the note related to the sale of HOS are due to the Company in December 2026 Available Liquidity as of 9/30/23 $3,303 $628 Cash $2,675 Credit Credit Facility Credit Facility capacity of $2.75 billion ✓ Maturity date of October 2028 ✓ Increased capacity in October 2022 to support growing business and capital investment plan 14#15Strong and Sustainable Growth Outlook for Future AMERICAN WATER $ Earnings Growth Dividend Growth Rate Base Growth Affirmed Target Targeting 7-9% long-term EPS CAGR Affirmed Target Targeting 7-9% long-term dividend CAGR* Affirmed Target Targeting 8-9% long-term rate base growth, incl. acquisitions Strong Balance Sheet Affirmed Targets Targeting <60% Debt to Capital Ratio Targeting 55-60% Dividend Payout Ratio Future dividends are subject to approval of the American Water Board of Directors. 15#16Appendix AMERICAN WATER 16#17Investor 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 Wells Fargo Midstream and Utilities Symposium December 7, 2023 17#18Forward-Looking Statements AMERICAN WATER Certain statements made, referred to or relied upon in this presentation including, without limitation, with respect to 2023 and 2024 earnings guidance, the Company's long-term financial, growth and dividend targets, the ability to achieve the Company's strategies and goals, customer affordability and acquired customer growth, 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, update, redesign and/or 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, update, redesign and/or replacement 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, including without limitation potential proceedings with respect to the water system assets of the Company's California subsidiary located in Monterey, California, 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. 18#19Non-GAAP Financial Information AMERICAN WATER This presentation includes adjusted regulated O&M efficiency ratios, both historical and forward-looking, which exclude from their calculation (i) estimated purchased water and other revenues and purchased water expenses, (ii) the impact of the Freedom Industries chemical spill in 2014 and certain related settlement activities recognized in 2016 and 2018, (iii) the estimated impact in 2012 and 2014 of weather, (iv) as to operating revenues, the amortization of excess accumulated deferred income taxes, and (v) the allocable portion of non-O&M support services costs, mainly depreciation and general taxes. Also, an alternative presentation of these ratios has been provided for each of 2010, 2012, 2014 and 2016, which includes a pro forma adjustment for the impact of the Tax Cuts and Jobs Act of 2017, and includes for 2012, 2014 and 2016 the impact of our implementation of Accounting Standards Update 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit, on January 1, 2018. These items were excluded from the O&M efficiency ratio calculation as they are not reflective of management's ability to increase the efficiency of our regulated businesses. For that reason, these adjusted regulated O&M efficiency ratios constitute "non-GAAP financial measures" under SEC rules. We evaluate our operating performance using these ratios and believe that the presentation of them is useful to investors because the ratios directly measure improvement in the operating performance and efficiency of our regulated businesses. These ratios are derived from our consolidated financial information but are not presented in our consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures supplement and should be read in conjunction with our GAAP disclosures and should be considered as an addition to, and not a substitute for, any GAAP measure. These ratios (i) are not accounting measures based on GAAP; (ii) are not based on a standard, objective industry definition or method of calculation; (iii) may not be comparable to other companies' operating measures; and (iv) should not be used in place of the GAAP information provided elsewhere in this presentation. Management is unable to present a reconciliation of adjustments to the components of the forward-looking adjusted regulated O&M efficiency ratio without unreasonable effort because management cannot reliably predict the nature, amount or probable significance of all the adjustments for future periods; however, these adjustments may, individually or in the aggregate, cause each of the non-GAAP financial measure components of the forward-looking ratios to differ significantly from the most directly comparable GAAP financial measure. Set forth in this appendix are tables that reconcile each of the components of our historical adjusted regulated O&M efficiency ratios to its most directly comparable GAAP financial measure. All references throughout this presentation to EPS or earnings per share refer to diluted EPS attributable to common shareholders. 19#20Details of Third Quarter 2023 EPS $1.63 0.04 (0.06) 0.37 Q3 QTD 2022 Weather in Q3 2023 Weather in Q2 2022 Revenue (0.08) O&M (0.06) (0.15) 0.05 AMERICAN WATER $1.66 (0.08) * Depreciation LT Financing ST Debt Financing Other, net Q3 QTD 2023 ~75% of inflationary costs incl. in revenue from recent rate cases *Reflects $(0.12) per share of share count dilution, which also offsets the amount of avoided interest expense. Investment Growth 20#21Details of Estimated Rate Base ($ in billions) Estimated Rate Base* As of 9/30/2023 $24.6 Net Utility Plant Less Advances for Construction $0.3 CIAC Contributions in Aid of Construction $1.5 Net Deferred Income Taxes $3.8 $5.6 Total Estimated Rate Base $19.0 An approximation of rate base, which includes Net Utility Plant not yet included in rate base, pending rate case filings/outcomes. AMERICAN WATER 21 24#22Rate Filings Summary ($ in millions) Rate Filings Completed* Effective since January 1, 2023 $273 Requested Revenue in Pending Base Rate Proceedings AMERICAN WATER $86 $359 $23 $398 $375 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 22#23Increased Investments to Support System Needs Capital Plan (Includes Acquisitions) $ in billions $2.9 $3.1 $2.6 $1.9 $1.9 2021 2022 2020 2023E 2024E AMERICAN WATER 23#24Regulated Capital Expenditures by Purpose AMERICAN WATER 2024-2033 4-6% 5-7% 6-8% 3-5% Infrastructure Renewal Resiliency Water Quality Operational Efficiency, Technology & Innovation System Expansion 9-11% 68-70% Other 24#25Timely Recovery of Capital and Operating Costs AMERICAN WATER American Water's Jurisdictions As of 2010 As of 2023 10 10 9 5 5 7 11 11 1 Infrastructure Mechanisms Expense Mechanisms Forward Looking Consolidated Tariffs Test Year Fair Value Capital Recovery (2024-2028 Plan) Infrastructure Surcharge Mechanisms ~45% Forward Test Traditional Years ~30% Recovery ~25% 25#26State 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 NJ ΙΑ NJ J = CA KY HI PA PA IL PA IA TN VA IN VA IL WANN 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 26#27Successfully 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 $2B of equity need in. Five-Year Plan (2023-2027) Successfully completed our long-term debt financing for the year with issuance of Exchangeable Senior Notes Both issuances demonstrate proactive execution in a challenging market environment to fund growth and manage financing costs for the benefit of customer affordability and shareholder value Size Interest Rate Conversion Premium Settlement Use of Proceeds 3.625% per year ~22.5% Cash, up to the aggregate principal amount (remaining value, if any, settled in cash, shares, or combination of cash/shares, at AWCC's election) Repaid outstanding commercial paper obligations and for general corporate purposes 27#28Closed Acquisitions September 30, 2023 STATE NUMBER OF SYSTEMS WATER CUSTOMER CONNECTIONS Missouri 6 900 Illinois 3 1,300 New Jersey 2 1,600 Indiana 1 200 Pennsylvania 1 100 Virginia 1 300 AMERICAN WATER WASTEWATER CUSTOMER CONNECTIONS TOTAL CUSTOMER CONNECTIONS 800 1,700 1,300 2,600 1,400 3,000 200 100 300 Total 14 4,400 3,500 7,900 28#29Acquisitions Under Agreement September 30, 2023 NUMBER STATE WATER CUSTOMER CONNECTIONS OF SYSTEMS Pennsylvania 12 West Virginia 3 Indiana 3 Illinois AMERICAN WATER WASTEWATER CUSTOMER CONNECTIONS TOTAL CUSTOMER CONNECTIONS 7,700 3,700 29,600 37,300 900 4,600 8,100 8,100 3 500 26,400 26,900 California 3 1,300 1,300 Virginia 2 1,400 1,300 2,700 Missouri 2 700 700 1,400 Iowa 2 200 100 300 3,800 3,800 1 1,700 1,700 32 17,200 70,900 88,100 New Jersey 1 Maryland Total 29#30Rates Effective Since... ($ in millions) January 1, 2023 AMERICAN WATER Rate Cases & Step Increases Date Effective Annualized Revenue Increases 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) Kentucky (QIP) 10/1/2023 4 New Jersey (DSIC) 10/30/2023 15 Sub-Total $273 Sub-Total $86 2023 Total $359 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 30 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 $5.5 million, 80% of which will be collected now, the remaining 20% will be collected in the next rate case, costs.#31Pending Rate Case Filings AMERICAN WATER ($ in millions) Rate Cases Filed California (a) Indiana (b) West Virginia (c) Kentucky (d) 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 Virginia Pennsylvania (e) Case No. PUR-2023-00194 11/1/2023 20 10.95% 364 Case R-2023-3043189 & 3043190 11/8/2023 204 10.95% 6,096 Sub-Total $375 $10,538 Infrastructure Surcharges Filed Missouri (WSIRA) Case No. WO-2023-0427 9/1/2023 $23 Sub-Total $23 Total $398 $212 $212 $10,750 a) 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. b) 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. c) The Company's West Virginia subsidiary has requested additional annualized revenues of $44.9 million, this excludes the $6.9 million for infrastructure surcharges. d) The Company's Kentucky subsidiary has requested additional annualized revenues of $26.1 million, this excludes the $9.8 million for infrastructure surcharges. e) The Company's Pennsylvania subsidiary has requested additional annualized revenues of $203.9 million, this excludes the $19.65 million for infrastructure surcharges. 31#32Regulatory Information - Top 10 States AMERICAN WATER $443,654 MISSOURI $2,318,849(c) 9.75% (d) 50.00% (e) 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% 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 $000s a) On June 29, 2023, Decision 23-06-025 set the authorized cost of capital through 2024. CA has a separate Cost of Capital case which sets the rate of return outside of a general rate proceeding. The decision established an ROE of 8.98% effective 30-days after the decision date. On June 30, 2023, the Company filed to implement an automatic ROE adjustment to 9.50% for 2023 based on the Commission approved Water Cost of Capital Adjustment Mechanism (WCCM), which was approved on July 25, 2023, increasing the return on equity to 9.50%, effective July 31, 2023. On October 16, California American Water filed a request to increase the ROE to 10.2% for 2024, which was approved on November 15, effective January 1, 2024. b) The Authorized Equity excludes cost-free items or tax credit balances at the overall rate of return which lowers the equity percentage as an alternative to the common practice of deducting such items from rate base. c) The Authorized Rate Base listed is the Company's view of the Rate Base allowed in the case; the Rate Base was not disclosed in the Order or the applicable settlement agreement. d) The ROE is the Company's view of the ROE allowed in the case; however, the ROE was not disclosed in the Order or the applicable settlement agreement. e) f) The equity ratio listed is the Company's view of the equity ratio allowed in the case; the actual equity ratio was not disclosed in the Order or the applicable settlement agreement. Interim rates were effective May 1, 2022 and received final Order April 24, 2023. The Rate Base and Effective date are based off of Year 1 of the rate case. Annual adjustments are made for Year 2 and 3 which reflect authorized capital improvements for Rate Base and inflationary adjustments for O&M. 32#33Reconciliation Table: Regulated Segment O&M Efficiency Ratio Regulated Segment O&M Efficiency Ratio (A Non-GAAP Unaudited Number) ($ in millions) FY 2010 FY 2013 FY 2016 FY 2019 FY 2022 LTM 9/30/2023 AMERICAN WATER Total operations and maintenance expense Less: $1,291 $1,289 $1,504 $1,544 $1,589 $1,681 Operations and maintenance expense Other 196 184 Total operations and maintenance expense - Regulated Businesses Less: $1,095 $1,105 328 $1,176 362 $1,182 244 $1,345 284 $1,397 Regulated purchased water expense 100 111 122 135 154 156 Allocation of non-operation and maintenance expenses 29 35 30 31 31 23 Impact of Freedom Industries activities - - 65 (4) 0 0 Estimated impact of weather (2) 0 0 Adjusted operations and maintenance expense - Regulated Businesses (a) $966 $961 $959 $1,020 $1,160 $1,218 Total operating revenues $2,555 $2,879 $3,302 $3,610 $3,792 $4,133 Less: Operating Revenues - Other 270 285 431 516 287 315 Operating Revenues - Other Total pro forma operating revenues-Regulated Businesses $2,285 $2,594 $2,871 $3,094 $3,505 $3,818 Less: Regulated Purchased Water expense* 100 111 122 135 Other revenue reductions for the amortization of excess accumulated deferred income taxes Plus: 154 (89) 156 (75) Freedom Industries chemical spill in West Virginia Estimated impact of weather Adjusted pro forma operating revenues-Regulated Businesses (b) $2,185 15 $2,498 $2,749 $2,959 $3,440 $3,737 Adjusted O&M efficiency ratio-Regulated Businesses (a)/(b) 44.2% 38.5% 34.9% 34.5% 33.7% 32.6% Adjusted operations and maintenance expense - Regulated Businesses Less: $966 $961 $959 Impact of adoption of ASU 2017-07** Adjusted operations and maintenance expense - Regulated Businesses (c) $966 16 $945 12 $947 Adjusted operating revenues-Regulated Businesses $2,186 $2,498 $2,749 Less pro forma adjustment: Pro forma adjustment for impact of the TCJA*** 89 Adjusted pro forma operating revenues-Regulated Businesses (d) $2,097 124 $2,374 161 $2,588 * Calculation assumes purchased water revenues approximate purchased water expenses ** Includes the impact of the Company's adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit, on January 1, 2018 ***Calculation of Estimated tax reform = Revenue Requirement with new Effective Tax Rate (taxes grossed up) Revenue Requirement with old Effective Tax Rate Adjusted O&M efficiency ratio-Regulated Businesses (c)/(d) 46.1% 39.8% 36.6% 33