Regulated Acquisitions and Growth Outlook
Reconciliation 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%
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