Growing Opportunities and Financial Overview
Managing Customer Bill Impact with a Disciplined
Focus on Operating Costs
Regulated O&M
Efficiency Ratio*
46.1%
AMERICAN WATER
41.0%
39.1%
36.6%
35.6%
34.5%
34.3%
**
30.4%
2010
2012
2014
2016
2018
2019
2020
2025
Target
2025 O&M
Adjusted O&M Expenses from
Efficiency Target
30.4%**
2010 to 2020 increased only
1.0% CAGR*
Added 322,000***
customer connections
since 2010
* Non-GAAP Measure - See appendix for reconciliation. 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
*** Includes organic customer connections, acquisitions and closed dispositions
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