Essential Utilities: Non‑Unanimous Settlement in PaPUC Merger Proceeding

What Happened On August 28, 2026, Administrative Law Judges (ALJs) in the Pennsylvania Public Utility Commission (PaPUC) proceeding issued an interim order stating that American Water Works Company, Inc. (“American Water”) and Essential Utilities, Inc. (“Essential Utilities”) and certain affiliates reached a non‑unanimous settlement related to the proposed merger of Essential into a wholly owned subsidiary of American Water. The companies furnished this information under Regulation FD in an 8‑K filed August 31, 2026. The settlement is explicitly subject to final approval by the PaPUC.

Key Details

• ALJ interim order issued: August 28, 2026.
• Parties: American Water Works Company, Inc. and Essential Utilities, Inc., plus certain affiliates.
• Outcome reported: a non‑unanimous settlement was reached in the PaPUC proceeding.
• Next step: the non‑unanimous settlement must be approved by the PaPUC before it becomes final.

Why It Matters Regulatory approval in Pennsylvania is a required step for the proposed merger to proceed. The ALJs’ interim order and the reported settlement are procedural milestones that advance the state review process, but they do not constitute final regulatory approval. Investors should monitor future PaPUC actions and company disclosures for updates on whether the commission approves the settlement and any timing implications for the transaction.