Current Report Filing (8-k)
September 11 2015 - 3:58PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 11, 2015
American Water Works Company, Inc.
(Exact name of registrant as specified in its charter)
Commission
File Number: 001-34028
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Delaware |
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51-0063696 |
(State or other jurisdiction
of incorporation) |
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(IRS Employer
Identification No.) |
1025 Laurel Oak Road
Voorhees, NJ 08043
(Address of principal executive offices, including zip code)
(856) 346-8200
(Registrants telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
At its public meeting on September 11, 2015, the New Jersey Board of
Public Utilities (the NJBPU) announced its approval of a stipulation of settlement signed by the parties (the Settlement) with respect to a petition filed by New Jersey-American Water Company, Inc. (NJAW), a
wholly owned subsidiary of American Water Works Company, Inc., to provide for an annual increase in NJAWs water and wastewater rates by approximately $22 million and was based on a return on equity of 9.75%. The new rates will become effective
for water and wastewater services rendered by NJAW on and after September 21, 2015.
A copy of a press release issued by NJAW, including a
fact sheet attached thereto outlining specific additional information related to the Settlement, is attached as Exhibit 99.1 hereto.
Item 9.01. |
Financial Statements and Exhibits. |
The following exhibit has been filed herewith:
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Exhibit No. |
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Description of Exhibit |
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99.1 |
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Press Release of NJAW dated September 11, 2015, including Rate Case Fact Sheet. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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AMERICAN WATER WORKS COMPANY, INC. |
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Dated: September 11, 2015 |
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By: |
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/s/ Linda G. Sullivan |
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Linda G. Sullivan |
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Senior Vice President and Chief Financial Officer |
EXHIBIT INDEX
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Exhibit No. |
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Description of Exhibit |
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99.1 |
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Press Release of NJAW dated September 11, 2015, including Rate Case Fact Sheet. |
Exhibit 99.1
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September 11, 2015 |
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Richard Barnes |
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856-782-2371 |
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richard.barnes@amwater.com |
New Jersey American Water Granted New Rates by New Jersey Board of Public Utilities
Cost of Water Service Remains Less Than a Penny a Gallon; Sewer Rates Formula Also Adjusted to Provide Relief to Some Customers
VOORHEES (September 11, 2015) The New Jersey Board of Public Utilities (BPU) today approved new water and wastewater rates for New Jersey
American Water, effective September 21, 2015.
The new rates represent a $22 million annual increase in water and wastewater revenues for New Jersey
American Water.
The cost of water service for the companys customers remains less than a penny a gallon. The average bill for a customer using
6,000 gallons of water per month will rise from $51.82 to $53.41, an approximate three percent increase.
Since New Jersey American Waters last rate
adjustment in May of 2012, the company has invested more than $775 million to replace and upgrade approximately 160 miles of water infrastructure to improve uninterrupted access to high-quality, reliable water service for its customers. During the
same period, the company has lowered its operating expenses by more than $19 million. Those cost reductions supported more than $125 million of infrastructure investment with no impact on customers bills.
New Jersey American Waters proactive infrastructure replacement demonstrates our commitment to providing our customers with outstanding water and
wastewater services, said William Varley, president of New Jersey American Water. Were meeting the challenge of replacing or upgrading thousands of miles of aging infrastructure while decreasing our operating costs. Compared to the
cost of other household utilities, water service is an excellent value.
The new rates will also result in some New Jersey American Water sewer
customers seeing no increase or, in some cases, a decrease in wastewater rates. The BPU has accepted the companys proposal that wastewater rates be recalculated to lessen the impact that outdoor water use has on wastewater bills.
In addition, the BPU approved New Jersey American Waters request to modify its Low Income Payment Program (LIPP). Customers enrolled in the program, who
also receive Social Security or are enrolled in Medicare, will be exempt from the monthly distribution system improvement charge. LIPP enrollees had previously only been exempt from paying the monthly fixed service charge.
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PRESS RELEASE |
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www.newjerseyamwater.com |
After filing for the rate increase in January 2015, New Jersey American Waters request underwent extensive public and
regulatory scrutiny. The ratemaking process required a lengthy and detailed review by the staff of the BPU, the New Jersey Division of Rate Counsel, the Office of Administrative Law, and more than a dozen interested groups, some of whom the state of
New Jersey granted full intervener status in the proceedings. The process also included several public hearings for customer input before an Administrative Law Judge.
New Jersey American Water, a wholly owned subsidiary of American Water (NYSE: AWK) is the largest investor-owned water utility in the state, providing
high-quality and reliable water and/or wastewater services to approximately 2.5 million people. Founded in 1886, American Water is the largest and most geographically diverse publicly traded U.S. water and wastewater utility company. With
headquarters in Voorhees, N.J., the company employs more than 6,800 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in 47 states, as well as parts of Canada. More
information can be found by visiting www.amwater.com.
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PRESS RELEASE |
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www.newjerseyamwater.com |
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NEW JERSEY AMERICAN WATER COMPANY
RATE CASE FACT SHEET
September 11, 2015
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Annual Rate Increase: |
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$22M |
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Overall Rate Increase %: |
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3.3% |
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Effective Date: |
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September 21, 2015 |
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Rate Base: |
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$2.4B |
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Rate of Return: |
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Ratio |
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Cost Rate |
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Weighted Cost Rate |
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Long Term Debt |
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48.00 |
% |
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5.17 |
% |
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2.48 |
% |
Common Equity |
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52.00 |
% |
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9.75 |
% |
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5.07 |
% |
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Total |
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100.00 |
% |
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7.55 |
% |
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