American Water Works Approves NJ Rate Case Settlement — $68M Increase

What Happened
American Water Works Company, Inc. (through its subsidiary New Jersey American Water) announced that the New Jersey Board of Public Utilities (NJBPU) issued an order on September 9, 2026 approving a stipulation of settlement in the company’s general rate case. The Order authorizes a $68 million annualized increase in water and wastewater revenues, effective September 15, 2026.

Key Details

• Original general rate case was filed January 16, 2026 seeking roughly $146 million in increased annual revenues (updated to ~$145 million on July 27, 2026); the Stipulation was entered August 27, 2026 with NJBPU staff and the Division of Rate Counsel.
• The approved increase is based on: an authorized return on equity (ROE) of 9.5%, an authorized rate base of $6.06 billion, a common equity ratio of 54.0%, and a long-term debt ratio of 46.0%.
• The revenue increase is driven primarily by about $1.4 billion of incremental capital investments since the last general rate case.
• New Jersey American Water filed a press release on September 9, 2026 announcing the Order (filed as Exhibit 99.1 in the 8-K).

Why It Matters
For investors, the approval means American Water’s New Jersey operations will begin collecting an additional $68M per year in regulated revenue starting mid-September, improving near-term cash flow from that jurisdiction. The authorized ROE, rate base and capital investment figures also set regulatory parameters that affect future earnings and allowed returns in New Jersey. This is a regulatory outcome (not an acquisition or earnings release) that directly impacts the company’s regulated revenue profile and recovery of past capital expenditures.