American Water Works Company, Inc. 8-K

What Happened

• On January 27, 2026, Illinois-American Water (a wholly owned subsidiary of American Water Works Company, Inc.) filed a request with the Illinois Commerce Commission (ICC) to adjust its water and wastewater rates.
• The filing seeks a two-step aggregate annualized incremental revenue increase: approximately $119 million effective January 1, 2027 and approximately $15 million effective January 1, 2028. The request is based on a proposed return on equity (ROE) of 10.75% and is exclusive of infrastructure surcharges.
• The 2027 request is based on a future test year through December 31, 2027 with a proposed capital structure of 52.42% equity / 47.58% debt; the 2028 step is based on a future test year including end-of-period rate base with a proposed capital structure of 52.74% equity / 47.26%.
• Illinois-American Water says the request is driven primarily by approximately $577 million in capital investments made and planned from January 2026 through December 2027. The ICC must approve any rate changes.

Key Details

• Filing date: January 27, 2026 (submitted to the Illinois Commerce Commission).
• Requested revenue increases: ~ $119M (effective 1/1/2027) and ~ $15M (effective 1/1/2028).
• Proposed ROE: 10.75%; proposed capital structures: 52.42% equity/47.58% debt (2027) and 52.74% equity/47.26% debt (2028).
• Driver: ~ $577M in capital investments (Jan 2026–Dec 2027); request excludes infrastructure surcharges and is subject to ICC approval and potential settlement terms.

Why It Matters

• If approved, the rate increases would raise Illinois-American Water’s regulated revenues beginning in 2027 and 2028, which could affect American Water Works’ consolidated utility revenue and cash flow.
• Timing, final amounts and overall impact depend on the ICC’s review, any settlements or modifications, and the timing of rate implementation. The company’s filing includes standard forward-looking disclaimers; approval is not guaranteed.