Growing Opportunities and Financial Overview
Reconciliation Table:
Regulated Segment O&M Efficiency Ratio
Regulated Segment O&M Efficiency Ratio
FY
2010
FY
2012
FY
2014
FY
2016
FY
FY
2018
2019
FY
2020
(A Non-GAAP Unaudited Number)
($ in millions)
Total operations and maintenance expense
$1,291
$1,330
$1,350
$1,504
$1,479
$1,544 $1,622
Less:
Operations and maintenance expense - Market-Based Operations
Operations and maintenance expense - Other
257
256
289
372
362
393
389
(61)
(56)
(51)
(44)
(42)
(31)
(25)
Total operations and maintenance expense - Regulated Businesses
Less:
$1,095
$1,130
$1,112
$1,176
$1,159
$1,182
$1,258
Regulated purchased water expense
100
110
122
122
133
135
149
Allocation of non-operation and maintenance expenses
29
35
39
30
31
31
41
Impact of Freedom Industries activities
-
-
10
65
(20)
(4)
0
Estimated impact of weather
5
(2)
0
0
Adjusted operations and maintenance expense - Regulated Businesses (a)
$966
$980
$943
$959
$1,015
$1,020
$1,068
Total operating revenues
$2,555
$2,854
$3,011
$3,302
$3,440
$3,610 $3,777
Less:
Operating Revenues - Market-Based Operations
295
307
355
451
476
539
540
Operating Revenues - Other
(26)
(17)
(18)
(20)
(20)
(23)
(18)
Total pro forma operating revenues - Regulated Businesses
$2,286
$2,564
$2,674
$2,871
$2,984
$3,094 $3,255
Less:
Regulated Purchased Water expense*
Other revenue
100
110
122
122
133
135
149
(7)
Plus:
Freedom Industries chemical spill in West Virginia
1
Estimated impact of weather
Adjusted pro forma operating revenues-Regulated Businesses (b)
$2,186
(47)
$2,407
17
$2,570
$2,749
$2,851
$2,959
$3,113
Adjusted O&M efficiency ratio-Regulated Businesses (a)/(b)
44.2%
40.7%
36.7%
34.9%
35.6%
34.5%
34.3%
Adjusted operations and maintenance expense - Regulated Businesses
Less:
$966
$980
$943
$959
Impact of adoption of ASU 2017-07**
39
(8)
Adjusted operations and maintenance expense - Regulated Businesses (c)
$966
$941
$951
12
$947
Adjusted operating revenues-Regulated Businesses
$2,186
$2,407
$2,570
$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
112
$2,294
137
$2,433
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%
41.0%
39.1%
36.6%
AMERICAN WATER
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