Form 8-K American Water Works For: Jul 01
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CALIFORNIA AMERICAN WATER APPLIES FOR NEW REVENUE TO FUND INFRASTRUCTURE AND SERVICE IMPROVEMENTS
SAN DIEGO (July 5, 2022) – California American Water has filed an application to set new rates in each of its service areas for 2024 through 2026. The new rates would take effect January 1, 2024, pending approval by the California Public Utilities Commission. The application includes infrastructure renewals, wildfire mitigation, climate resiliency efforts and strengthening affordability programs.
The application seeks a request from California American Water for $462 million for infrastructure improvements and investment between 2023-25. The request provides funding to renew and replace water treatment facilities, pumps, and pipelines in our systems around the state. This application is seeking to raise revenue by approximately $95 million over three years, beginning with a $56 million increase proposed for January 1, 2024. This increase is based on 2024 authorized revenues calculated at current rates. The average impact to customer bills on January 1, 2024 will be between approximately $2.45 and $7.87 per month, depending on region. Specific increases for each service area vary and are detailed in the filing.
“This filing marks the beginning of an 18-month regulatory approval process during which our customers will be notified and have the opportunity for input several times before a decision is made” said California American Water President Kevin Tilden. “Our application balances the infrastructure investment and operations needed to support sustainable water and wastewater systems while addressing affordability and climate resiliency. This proposal seeks to continue to provide customers with excellent value for their service and maintain our systems to supply high-quality water and wastewater service.”
One particular focus of the request is to improve the climate change resiliency of our systems. These measures include fire assessment analysis at company facilities around the state as well as active mitigation measures undertaken in some high-risk zones. The activities also include the bolstering of back-up generator power for use during emergencies like wildfires or Public Safety Power Shutoffs.
California American Water also continues its commitment to affordability with proposals for rate consolidation, increased funding for customer assistance programs and additional hardship funds.
The increased rates proposed in the rate petition are a request only. The CPUC will make the final decision regarding the actual increase. The CPUC will hold Public Participation Hearings on this request to get input from customers and the public. California American Water will notify customers of the time, date and location once the hearings are set. Rates will not be adjusted until this request undergoes extensive public scrutiny by the CPUC. This process will include extensive independent review and public evidentiary hearings. The process is expected to conclude in late 2023, with new rates taking effect by January 1, 2024.
About California American Water: California American Water, a subsidiary of American Water (NYSE: AWK), provides high-quality and reliable water and wastewater services to more than 725,000 people. Information regarding California American Water’s service areas can be found on the company’s website www.californiaamwater.com.
About American Water: With a history dating back to 1886, American Water (NYSE: AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to more than 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.
Director of External Affairs
Missouri American Water Submits Rate Review Request to Missouri Public Service Commission
Request driven by nearly $770 million investment in water and wastewater systems from 2021 through mid-2023
ST. LOUIS, Mo. (July 5, 2022) – On Friday, July 1, 2022, Missouri American Water filed a request with the Missouri Public Service Commission (MoPSC) to review its water and wastewater rates. The request is driven by nearly $770 million in completed or planned investments from January 2021 to May 2023.
The MoPSC’s review of the company’s request is expected to take 11 months. Any new rates approved by the MoPSC are not expected to become effective until mid-2023.
“Our proactive investments are a critical component to providing safe, clean and reliable service to families and businesses across the state,” said Rich Svindland, president of Missouri American Water. “Many of our pipes and treatment plants were built 50-100 years ago, and our continued investments are key to protecting customers, the communities we serve and the environment.”
Investments in the rate review include the replacement or installation of 280 miles of aging water and wastewater pipelines – about the distance from St. Louis to Joplin – to help reduce main breaks and sewer overflows. Improvement projects also include the upgrading of treatment plants, storage tanks, wells, pumping and lift stations, fire hydrants, meters and more.
Key water projects include:
•St. Louis County – Replacement of the 1970s electrical switchgear at the Central Treatment Plant to prevent electrical failure to the pumping station and replacement of the electrical, mechanical and controls equipment at the North Treatment Plant primary flocculation basin that was installed in 1964
•St. Charles County – Construction of a new two-million-gallon elevated storage tank to stabilize water pressure and enhance fire protection
•Joplin – Replacement of the pre-1900 high service pump station building and its pumps
•St. Joseph – Replacement of key components of the water softening basin at the treatment plant
•Jefferson City – Replacement of 6,500 feet of cast-iron pipe, installed in 1954, with PVC along Industrial Drive
•Mexico and Warrensburg – Replacement of the chlorine gas systems with sodium hypochlorite systems
Key wastewater projects include:
•Incline Village – Replacement and expansion of the wastewater treatment plant
•Arnold – Replacement of more than 4,300 feet of wastewater pipe to reduce inflow and infiltration
•Rogue Creek and Maplewood – Replacement of aging lift stations
•El Chaparrel – Connection to the Cedar Hill lagoon system to maintain regulatory compliance
Missouri American Water is also targeting the replacement of lead service lines.
“We are meeting and surpassing new federal regulations to remove all lead service lines by 2030 in communities we serve, including the customer-owned portion of the service line,” said Rebecca Losli, Vice President of Engineering and Business Development. “Many lead service lines are located in older, underserved areas of our community, and we are replacing the entire lead service line at no direct cost to our customers.”
If the request is approved by regulators as proposed, the bill for a typical volumetric water customer using an average of 4,200 gallons monthly would increase about $12 or $13 per month. The bill for a typical volumetric wastewater customer would stay about the same, and the bill for flat rate wastewater customers would increase by $3 to $10 per month, depending on the service area. Current bills include an adjustment for the Water and Sewer Infrastructure Act to help pay for certain completed improvement projects. Under the rate review process, these projects are reviewed and may be included in any new rates set by the MoPSC.
For more information on the company’s rate review, visit www.missouriamwater.com and select “Your Water and Wastewater Rates” under the Customer Service menu.
Missouri American Water
Missouri American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and wastewater services to approximately 1.5 million people. For more, visit missouriamwater.com and follow Missouri American Water on Twitter, Facebook, LinkedIn and Instagram.
With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs approximately 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to an estimated 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.
Samantha E. Williams
External Affairs Manager
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