Pennsylvania American Water, A Subsidiary Of American Water Files Rate Request Driven By $1B In Investment
Portfolio Pulse from Benzinga Newsdesk
Pennsylvania American Water, a subsidiary of American Water (AWK), has filed a rate adjustment request with the Pennsylvania Public Utility Commission. The request is driven by the company's commitment to invest $1 billion in water and wastewater system improvements through mid-2025. If approved, the average residential water bill would increase by approximately $17 per month, while the average residential wastewater bill for sanitary sewer service would decrease by approximately $5 per month. The company is also proposing to expand its income-based monthly bill discount program, potentially benefiting an additional 55,000 customers.
November 08, 2023 | 10:35 pm
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American Water's subsidiary's rate adjustment request, if approved, could lead to increased revenues due to higher water bills. However, the expansion of the discount program could offset some of this increase. The $1 billion investment could also impact future earnings.
The rate adjustment request, if approved, could lead to increased revenues for AWK due to higher water bills. However, the proposed expansion of the discount program could offset some of this increase. The planned $1 billion investment in system improvements could impact future earnings, depending on the return on this investment and how it is financed. The impact on the stock price is uncertain, hence the neutral score.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100