Second Quarter/YTD 2023 Results
Reconciliation Table:
Regulated Segment O&M Efficiency Ratio
Regulated Segment O&M Efficiency Ratio
(A Non-GAAP Unaudited Number)
($ in millions)
FY
2010
FY
2012
FY
2014
FY
2016
FY
FY
2018
2020
FY
2021
FY
2022
AMERICAN WATER
Total operations and maintenance expense
$1.291
$1,330
$1,350
$1,504
$1,479
$1,622
$1,777
$1,589
Less:
Operations and maintenance expense - Other
196
Total operations and maintenance expense - Regulated Businesses
Less:
$1,095
200
$1,130
238
$1,112
328
$1,176
320
$1,159
364
$1,258
452
$1,325
244
$1,345
Regulated purchased water expense
100
110
122
122
133
149
153
154
Allocation of non-operation and maintenance expenses
29
35
39
30
31
41
34
31
Impact of Freedom Industries activities
10
65
(20)
0
0
0
Estimated impact of weather
5
(2)
0
0
0
Adjusted operations and maintenance expense - Regulated Businesses (a)
$966
$980
$943
$959
$1,015
$1,068
$1,138
$1,160
Total operating revenues
$2,555
$2,854
$3,011
$3,302
$3,440
$3,777
$3,930
$3,792
Less:
Operating Revenues - Other
270
290
337
431
456
522
546
287
Operating Revenues - Other
Total pro forma operating revenues-Regulated Businesses
$2,285
$2,564
$2,674
$2,871
$2,984
$3,255
$3,384
$3,505
Less:
Regulated Purchased Water expense*
100
110
122
122
133
Other revenue reductions for the amortization of excess accumulated deferred income taxes
Plus:
149
(7)
153
(104)
154
(89)
Freedom Industries chemical spill in West Virginia
Estimated impact of weather
Adjusted pro forma operating revenues-Regulated Businesses (b)
Adjusted O&M efficiency ratio-Regulated Businesses (a)/(b)
1
$2,185
(47)
$2,407
17
$2,570
$2,749
$2,851
$3,113
$3,335
$3,440
44.2%
40.7%
36.7%
34.9%
35.6%
34.3%
34.1%
33.7%
Adjusted operations and maintenance expense - Regulated Businesses
Less:
$966
$980
$943
$959
Impact of adoption of ASU 2017-07**
39
(8)
Adjusted operations and maintenance expense - Regulated Businesses (c)
$966
$941
$951
12
$947
Adjusted operating revenues-Regulated Businesses
$2,186
$2,407
$2,570
$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
112
$2,294
137
$2,433
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%
41.0%
39.1%
36.6%
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