Regulated Acquisitions and Growth Outlook
Continued Focus on Customer Affordability
$
0.90%
0.80%
0.70%
0.60%
0.50%
0.40%
0.30%
0.20%
0.10%
0.00%
2012
AMERICAN WATER
Monthly Water Bill as % of
Median Household Income*
Values around Affordability
➤ Focused on keeping customer bills affordable
compared to income (wallet share)
➤ Supportive of consolidated tariffs that allow
customers to benefit from efficiencies of scale
Continue to promote and advocate for low-income
assistance programs (incl. federal) and tariffs
Regulated O&M Efficiency Ratio**
2014
2016
2018
2020
2022
2023E
2028E
46.1%
2010
39.8%
36.6%
34.5%
33.7%
32.6%
***
≤30.0%
2013
2016
2019
2022 9/30/2023 2028
Target
* Figure is estimated based on data from the US Census Bureau American Community Survey based on zip codes served by American Water. American Water does not collect household income data from its customers.
** Non-GAAP Measure - 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
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