2023 Earnings and Growth Projections
Regulatory 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.
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