Monitor CPUC decision on Cal Am CWIP treatment — if excluded, 2027 revenue drops by ~17% from settlement level. Virginia settlement provides modestly improved ROE (9.75% vs 9.70%) and significantly higher equity component (51.79% vs 45.67%), which supports future filings. Both outcomes are within normal regulatory range for water utilities and unlikely to move AWK materially.
Price Chart
Executive Summary
American Water Works (AWK) subsidiaries reached partial settlements in two general rate cases. California American Water (Cal Am) filed a partial settlement for $24M incremental annualized revenue in 2027 (vs. $43M requested), with CWIP treatment still pending. Virginia American Water settled for a $16M annualized revenue increase (vs. $22M requested), with an agreed ROE of 9.75%. Both settlements are subject to regulatory approval and represent routine regulatory outcomes for a regulated utility — the revenue awards are below initial requests but provide rate base recovery visibility.
Key Facts
- Cal Am partial settlement: $24M incremental annualized revenue in 2027 test year, $21M in 2028, $22M in 2029 (vs. revised proposed $43M/$22M/$26M)
- Cal Am CWIP treatment remains the only unresolved issue; if excluded, 2027 revenue drops to $20M and 2028 to $19M
- Virginia American Water settlement: $16M annualized revenue increase (vs. $22M requested), driven by ~$115M in capital investments
- Virginia American Water agreed ROE of 9.75% (vs. 9.70% previously) and equity component of 51.79% (vs. 45.67% previously)
- Both settlements subject to regulatory approval; Cal Am rates effective Jan 1, 2027; Virginia interim rates effective May 2, 2026 with refund mechanism
Financial Impact
Combined incremental annualized revenue of ~$40M (Cal Am $24M + Virginia $16M) vs. ~$65M originally requested, representing a ~38% reduction from ask but providing regulatory certainty for ~$865M in planned capital investments
Risk Factors
- CPUC may exclude CWIP from rate base, reducing Cal Am revenue by ~$4M in 2027 and ~$2M in 2028
- Potential condemnation of Cal Am's Monterey peninsula assets remains a risk factor per filing
- Final CPUC/VSCC orders may deviate from settlement terms
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001410636-26-000105 |
| Exhibit: exhibit991-2026californiag.htm | 0001410636-26-000105 |
| Exhibit: exhibit992-pressreleaseofv.htm | 0001410636-26-000105 |
| Document: 0001410636-26-000105-index-headers.html | 0001410636-26-000105 |
| Document: 0001410636-26-000105-index.html | 0001410636-26-000105 |
| Document: 0001410636-26-000105.txt | 0001410636-26-000105 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 18d ago | 424B5 | $138.92 $133.97 | ▼ −3.56% | ▼ −3.67% | $130.25 (−6.24%) |
Aug 26, 2026 5w ago | Press Release | $137.49 $139.49 | ▲ +1.45% | ▲ +1.57% | $130.25 (−5.27%) |
Aug 18, 2026 6w ago | Press Release | $136.27 $137.60 | ▲ +0.98% | ▲ +1.18% | $130.25 (−4.42%) |
Aug 17, 2026 6w ago | 425 | $134.35 $139.80 | ▲ +4.06% | ▲ +5.25% | $130.25 (−3.05%) |
Aug 13, 2026 7w ago | 425 | $136.46 $137.21 | ▲ +0.55% | ▲ +2.51% | $130.25 (−4.55%) |
Aug 13, 2026 7w ago | 425 | $136.46 $137.21 | ▲ +0.55% | ▲ +2.51% | $130.25 (−4.55%) |
Jul 27, 2026 9w ago | Press Release | $138.04 $131.30 | ▼ −4.88% | ▼ −7.15% | $130.25 (−5.64%) |
Jul 16, 2026 11w ago | 8-K | $135.11 $134.41 | ▼ −0.52% | ▲ +0.17% | $130.25 (−3.60%) |
Jun 23, 2026 14w ago | Institutional Cluster | $126.60 $132.50 | ▲ +4.66% | ▲ +3.65% | $130.25 (+2.88%) |
Jun 22, 2026 14w ago | 425 | $126.60 $132.50 | ▲ +4.66% | ▲ +3.65% | $130.25 (+2.88%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access