Investor Presentaiton
Revenue Growth and Customer Growth Help Drive
Operating Cost Efficiency
AMERICAN WATER
46.1%
41.0%
39.1%
Regulated O&M
Efficiency Ratio*
36.6%
35.6%
34.3%
34.1%
33.7%
III
≤30.0%**
2010
2012
2014
2016
2018
2020
2021
2022
2027
Target
•
•
Efficiency Drivers:
Growing Revenues & Controlling Costs
In early years (thru 2016), efficiency gains were
steeper as culture of cost management formed
Recently, more incremental efficiency gains driven
by revenue growth, cost management and
technology
* 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
13
Case No. 2022-00432
Bluegrass Water's Response to PSC 3-25
Exhibit PSC 3-25(b) - Part 1 of 2
Page 13 of 39View entire presentation