Investor Presentaiton
General Rate Case and Regulatory Updates
AMERICAN WATER
CALIFORNIA
AMERICAN WATER
INDIANA
AMERICAN WATER
WEST VIRGINIA
AMERICAN WATER
VIRGINIA
AMERICAN WATER
Rate Cases in Progress
• Rate case filed 7/1/22
• Will establish rates for the period 2024-2026
Three-year capital investment of $462 million
• Rates expected to be effective 1/1/24
• Rate case filed 3/31/23
.
Capital Investment of $875 million
Rates expected to go into effect over three steps in Jan. 2024,
May 2024, and May 2025
Rate case filed 5/1/23
O Capital Investment of $340 million
• Rates expected to go into effect 2/25/24
Completed Rate Cases in 2023
• General Rate Case
• Additional authorized revenues of $11 million
Effective 4/24/23
• General Rate Case
Federal PFAS Update
On March 14, 2023, the United States Environmental Protection Agency (EPA) announced the
proposed National Primary Drinking Water Regulation for six per- and polyfluoroalkyl
substances (PFAS).
American Water submitted oral comments on May 4 and submitted written comments on
May 24 to the EPA on its proposed PFAS regulation, as the EPA develops its final rule,
expected by the end of 2023.
American Water is currently part of Multi-District Litigation against multiple PFAS
manufacturers because we firmly believe that the ultimate responsibility for the cleanup of
these contaminants should fall to the polluters.
American Water will advocate to ensure all water and wastewater utility providers, regardless
of ownership, have equal access to any and all Federal and/or state funding related to treating
PFAS.
American Water believes an investment in excess of $1 billion of capital to install additional
treatment facilities over a 3 to 5-year period could be possible in order to comply with the rule
as proposed. Additionally, American Water also believes annual operating expenses related to
testing and treatment could be near $50 million in today's dollars. These are preliminary
estimates dependent upon multiple factors including the final rule and effective date, as well
as the Company's system-by-system engineering analyses.
MISSOURI
AMERICAN WATER
• Additional authorized revenues of $95 million, including $51M
for infrastructure surcharges previously approved
•Effective 5/28/23
Other Regulatory Updates
In California, related to the Monterey Water Supply Project, the amended Pure Water Monterey Expansion water purchase agreement was signed by the parties following
an Order issued by the CPUC. Cal Am will be allowed standard ratemaking treatment for the construction funding of the pumps and pipes that were built to support the
expansion.
In Indiana, Senate Bill 180 passed allowing for consolidated rates in wastewater systems via Indiana's Service Enhancement Improvement recovery mechanism.
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Case No. 2022-00432
Bluegrass Water's Response to PSC 3-25
Exhibit PSC 3-25(b) - Part 1 of 2
Page 26 of 39View entire presentation