American Water secures $68M New Jersey rate hike
American Water Works Company, Inc. (AWK), through its subsidiary New Jersey American Water, received an order from the New Jersey Board of Public Utilities on September 9, 2026 approving a settlement in its general rate case.
Rhea-AI Filing Summary
American Water Works Company, Inc. (AWK), through its subsidiary New Jersey American Water, received an order from the New Jersey Board of Public Utilities on September 9, 2026 approving a settlement in its general rate case. The order authorizes a $68 million annualized increase in water and wastewater revenues effective September 15, 2026, based on an authorized 9.5% return on equity, a $6.06 billion rate base, and a capital structure of 54.0% common equity and 46.0% long-term debt.
The revenue increase is driven primarily by $1.4 billion of incremental capital investments since the last general rate case and is intended to support continued upgrades to treatment, transmission and distribution systems, including approximately 120 miles of main replacement, lead service line work and PFAS-related treatment. Separately, New Jersey American Water will return more than $79 million in PFAS litigation proceeds and interest to eligible water customers via a $9.88 monthly PFAS settlement credit for 12 months under the PFAS Litigation Universal Surcredit (PLUS), which for many customers will more than offset the near-term bill impact of the new rates.
Positive
- $68 million annualized rate increase approved for New Jersey American Water, with a 9.5% authorized ROE on a $6.06 billion rate base, supporting returns on $1.4 billion of capital investments and providing clearer revenue visibility for this key regulated subsidiary.
Negative
- None.
Filing Explained
The disclosed rate case now has an effective September 15 rate change: $68 million approved against an updated $145 million request.
The September 9 NJBPU order approved the settlement without modification, and the rate change is effective
The filing records that New Jersey American Water had updated its request to approximately
Future PFAS settlement proceeds are to be returned through the PLUS mechanism as one-time customer credits after the amounts are calculated and verified by the NJBPU.
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Annualized revenue increase: $68 million per year
Authorized return on equity: 9.5%
Authorized rate base: $6.06 billion
+5 more
8 metrics
Annualized revenue increase
$68 million per year
Increase in New Jersey American Water’s water and wastewater revenues effective September 15, 2026
Authorized return on equity
9.5%
Allowed ROE for New Jersey American Water under the approved order
Authorized rate base
$6.06 billion
Rate base used to set New Jersey American Water’s new rates
Capital structure
54.0% common equity / 46.0% long-term debt
Regulatory capital structure underlying the approved rates
Incremental capital investments
$1.4 billion
Investments since the last general rate case driving the revenue increase
Monthly PLUS credit
$9.88 per month
PFAS settlement credit to eligible water customers for 12 months
PFAS proceeds returned
More than $79 million
PFAS litigation proceeds and interest to be refunded via PLUS credits
Average residential usage
5,700 gallons per month
Baseline usage for estimating average water bill impacts
Key Terms
stipulation of settlement, authorized return on equity, rate base, PFAS Litigation Universal Surcredit (PLUS), +2 more
6 terms
stipulation of settlement regulatory
"approving without modification the stipulation of settlement of a general rate case"
A stipulation of settlement is a formal written agreement in a lawsuit where the parties set out the terms to resolve the dispute, often specifying payments, actions to be taken, and steps to dismiss the case with the court. For investors it matters because this signed pact removes legal uncertainty, fixes potential cash or operational obligations, and can change a company’s risk profile—like neighbors agreeing who will repair a shared fence so both can move on.
authorized return on equity financial
"based on (i) an authorized return on equity (“ROE”) of 9.5%"
rate base financial
"(ii) an authorized rate base of $6.06 billion"
Rate base is the dollar value of the physical assets and capital a regulated utility uses to deliver its service — things like power plants, pipes, or equipment. Regulators use that value as the starting point to set prices the utility can charge by allowing a specific percentage return on that base, so a larger or higher-valued rate base usually means higher permitted revenues and therefore directly affects investor earnings and the company's ability to raise capital.
PFAS Litigation Universal Surcredit (PLUS) regulatory
"approval of the company’s PFAS Litigation Universal Surcredit (PLUS)"
infrastructure mechanism foundational filings regulatory
"the BPU also approved the company’s infrastructure mechanism foundational filings"
Universal Affordability Tariff regulatory
"evaluate the enrollment process for its Universal Affordability Tariff program"
FAQ
What did AWK’s New Jersey subsidiary receive approval for on September 9, 2026?
New Jersey American Water received BPU approval for a $68 million annualized increase in water and wastewater revenues effective September 15, 2026, based on a 9.5% authorized ROE and a $6.06 billion rate base.
How will the new rates affect an average New Jersey American Water customer of AWK?
An average residential water customer using about 5,700 gallons per month will see a bill increase of about $4 per month, which for eligible customers is more than offset by the $9.88 monthly PLUS credit for 12 months.
What is the PFAS Litigation Universal Surcredit (PLUS) mentioned for AWK customers?
The PLUS is a BPU-approved mechanism through which New Jersey American Water will return more than $79 million of PFAS litigation proceeds and interest to eligible water customers via a $9.88 monthly credit for 12 months, starting in September 2026.
When do the new AWK New Jersey rates become effective?
The BPU-approved water and wastewater rates for New Jersey American Water become effective on September 15, 2026, following the September 9, 2026 order approving the settlement in the general rate case.
What capital investments support the AWK New Jersey rate increase?
The $68 million annualized revenue increase is driven primarily by $1.4 billion of incremental capital investments since the last general rate case, including work on treatment, transmission, distribution, main replacement and PFAS-related treatment projects.
How will AWK’s New Jersey wastewater customers be impacted by the new rates?
Residential wastewater customers will see an average bill increase of approximately $4 per month, while customers receiving both water and wastewater service will see an average increase of nearly $8 per month before application of the $9.88 PLUS credit for eligible water customers.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 9, 2026
(Exact name of registrant as specified in its charter)
Commission File Number: 001-34028
| (State or other jurisdiction of incorporation) | (IRS Employer Identification No.) | ||||
(Address of principal executive offices, including zip code)
(856 ) 955-4001
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01. Other Events.
New Jersey Board of Public Utilities (“NJBPU”) Approval of Settlement in New Jersey-American Water Company, Inc. (“New Jersey American Water”) General Rate Case
On September 9, 2026, the NJBPU issued an order (the “Order”) approving without modification the stipulation of settlement (the “Stipulation”) of a general rate case filed on January 16, 2026 by New Jersey American Water, a wholly owned subsidiary of American Water Works Company, Inc. (the “Company”), seeking approximately $146 million of increased annualized water and wastewater revenues, which request was subsequently updated on July 27, 2026, to approximately $145 million. The Stipulation was entered into on August 27, 2026 with the staff of the NJBPU and the New Jersey Division of Rate Counsel. The Order approves a $68 million annualized increase in New Jersey American Water’s water and wastewater revenues, effective as of September 15, 2026, based on (i) an authorized return on equity (“ROE”) of 9.5%, (ii) an authorized rate base of $6.06 billion, (iii) a common equity ratio of 54.0%, and (iv) a long-term debt ratio of 46.0%. The annualized revenue increase is driven primarily by $1.4 billion of incremental capital investments since that last general rate case.
A copy of the press release issued by New Jersey American Water on September 9, 2026 to announce the issuance of the Order has been filed as Exhibit 99.1 hereto and is incorporated herein by reference. References and links to websites and other information contained in this press release are not provided as active hyperlinks, and the information contained in or accessed through these hyperlinks shall not be incorporated into, or form a part of, this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits to this Current Report have been filed herewith (except as noted below):
| Exhibit No. | Description | |||||||
| 99.1* | Press Release, dated September 9, 2026, issued by New Jersey American Water. | |||||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are included and formatted as Inline XBRL). | |||||||
| *Filed herewith. | ||||||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMERICAN WATER WORKS COMPANY, INC. | ||||||||||||||
| Dated: | September 9, 2026 | By: | /s/ DAVID M. BOWLER | |||||||||||
| David M. Bowler | ||||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||
3
Exhibit 99.1
New Jersey American Water Announces New Rates and Customer Bill Credit
Rate request approval supports more than $1.4 billion in ongoing system upgrades to strengthen water and wastewater infrastructure; PFAS settlement credit helps offset eligible water customers’ bill impacts for 12 months
CAMDEN, N.J. — Sept. 9, 2026 — New Jersey American Water customers will begin seeing new water and wastewater rates following the New Jersey Board of Public Utilities’ (BPU) approval of the company’s rate request. As part of the BPU’s approval of the company’s PFAS Litigation Universal Surcredit (PLUS), eligible water customers will also receive a separate $9.88 monthly PFAS settlement credit for 12 months, helping offset bill impacts as the new rates take effect. The approved rates support continued investment in safe, clean and reliable water and wastewater service across New Jersey.
“This decision supports critical investments to replace aging infrastructure, advance water quality projects and improve reliability while keeping affordability at the forefront,” said Mark McDonough, president of New Jersey American Water. “It provides a clear path to strengthen the water and wastewater systems our communities rely on.”
The $68 million annual revenue increase supports more than $1.4 billion in continued upgrades across the company’s treatment, transmission and distribution systems. In addition, the BPU also approved the company’s infrastructure mechanism foundational filings, which also helps deliver water, wastewater improvements and resilience infrastructure investments.
Continued Investment in Water and Wastewater Infrastructure
The approved rates support the replacement or rehabilitation of nearly 120 miles of aging main, continued lead service line replacement and treatment upgrades related to PFAS and other emerging contaminants. These projects will strengthen service for homes, businesses, schools, hospitals, and communities across New Jersey.
Understanding the New Rates
Under the BPU-approved rates, which will become effective on September 15, 2026:
•The average residential water customer using approximately 5,700 gallons per month will see a monthly bill increase of approximately $4 per month. For eligible customers, the $9.88 monthly PLUS credit will more than offset that increase, resulting in an average net bill reduction of nearly $6 per month for 12 months.
•Residential wastewater customers will see an average increase of approximately $4 per month.
•Customers who receive both water and wastewater service will see an average increase of nearly $8 per month, offset by the $9.88 monthly PLUS credit, resulting in an average net bill reduction of nearly $2 per month for 12 months.
Actual bill impacts will vary based on customer usage, service type and service area. The approved rates maintain a focus on affordability while supporting continued water and wastewater system improvements.
Customers will receive information about the new rates in upcoming bill communications. More information about approved rates, the PLUS credit, bill impacts and customer resources will be available at www.newjerseyamwater.com/rates.
Separate PFAS Settlement Credit
In a separate filing, the BPU approved the PLUS mechanism to return PFAS settlement proceeds directly to eligible water customers. New Jersey American Water will return more than $79 million in PFAS litigation proceeds and interest through a monthly PLUS credit of $9.88 for 12 months beginning in September 2026. The credit will appear as “PLUS” on eligible water customers’ bills.
Future PFAS settlement proceeds will be returned through the PLUS mechanism as one-time credits on customers’ bills after calculations are verified by the BPU.
“The PLUS mechanism provides a transparent way to return PFAS settlement proceeds and interest directly to eligible water customers,” McDonough said. “Customers will see the credit identified separately on their bills, making it clear how those funds are being returned.”
Customer Assistance and Bill Support
New Jersey American Water continues to offer bill payment assistance programs for income-eligible customers, along with budget billing and flexible payment plans. Program information is available at www.newjerseyamwater.com/h2oprogram.
As part of the rate request approval, New Jersey American Water will continue working with the New Jersey Department of Community Affairs to evaluate the enrollment process for its Universal Affordability Tariff program, including potential automatic enrollment for eligible customers who already receive certain energy assistance benefits.
“Water service is essential, and customers experiencing financial hardship should know assistance is available,” McDonough said. “We encourage customers who need help to review the available programs and contact us before falling behind on their bills.”
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886 and celebrating 140 years in 2026, American Water keeps life flowing by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 19 military installations. American Water’s 7,000 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.
For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.
About New Jersey American Water
New Jersey American Water, a subsidiary of American Water, is the largest regulated water utility in the state, with more than 875 dedicated employees working to provide safe, clean, reliable and affordable water and wastewater services to approximately 3 million people.
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AWK-IR
Media Contact:
Chelsea Kulp
Director of Communications & External Affairs
New Jersey American Water
Chelsea.Kulp@amwater.com