Missouri American Water (NYSE: AWK) files $179M rate request tied to $1.6B capex
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
American Water Works’ Missouri subsidiary has filed for a major rate increase tied to large infrastructure spending. Missouri American Water is asking the Missouri Public Service Commission to approve new water and wastewater rates that would provide approximately $179 million in annualized incremental revenue, excluding about $32 million of infrastructure surcharges, of which $18 million still requires approval.
The request is based on a 10.50% allowed return on equity with a capital structure of 50.3% equity and 49.7% long-term debt. It is driven mainly by approximately $1.6 billion of capital investments completed and planned from June 2025 through May 2028, including replacing about 140 miles of aging pipeline and multiple treatment, storage and pumping upgrades.
If approved as filed, the monthly water bill for an average St. Louis County residential customer using 5,900 gallons would rise about $23, while a similar customer outside the county using 4,500 gallons would see about a $15 increase. The filing notes the MoPSC review process can take up to 11 months and that new rates could take effect in June 2027, with subsequent reconciliations required after the future test year, subject to regulatory approval.
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Insights
Large Missouri rate case seeks $179M tied to $1.6B capex.
American Water is pursuing higher water and wastewater rates in Missouri to recover approximately $1.6 billion of planned and completed investments over a June 2025–2028 future test period. The filing targets annualized incremental revenue of about $179 million, plus separate infrastructure surcharges.
The requested framework uses a 10.50% return on equity and roughly 50/50 equity–debt capital structure, which will shape earnings from this jurisdiction if approved. Customer bill examples show substantial increases, especially in St. Louis County, which underscores sensitivity to regulatory outcomes and affordability considerations.
Regulatory risk centers on how the Missouri Public Service Commission ultimately rules on revenue, timing, and capital recognition. The review may take up to 11 months, with potential new rates in June 2027, and further reconciliations after the future test year. Outcomes will depend on settlement terms or final orders described in future company filings.
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, and exhibit attachments filed with this report.
Key Figures
Requested incremental revenue: $179 million per year
Infrastructure surcharges: $32 million
Planned and completed investments: $1.6 billion
+5 more
8 metrics
Requested incremental revenue
$179 million per year
Annualized incremental revenue sought from new Missouri water and wastewater rates
Infrastructure surcharges
$32 million
Infrastructure surcharges referenced in the Missouri rate request; $18 million subject to approval
Planned and completed investments
$1.6 billion
Capital investments by Missouri American Water from June 2025 through May 2028
Allowed return on equity assumption
10.50%
Proposed ROE underlying the Missouri rate request
Capital structure
50.3% equity / 49.7% debt
Requested regulatory capital structure for Missouri operations
St. Louis County bill impact
$23 per month
Increase for average residential water customer using 5,900 gallons per month in St. Louis County
Outside St. Louis County bill impact
$15 per month
Increase for average residential water customer using 4,500 gallons per month outside St. Louis County
Pipeline replacement
140 miles
Approximate miles of aging water and wastewater pipeline slated for replacement
Key Terms
Missouri Public Service Commission, future test period, infrastructure surcharges, return on equity, +2 more
6 terms
Missouri Public Service Commission regulatory
"Missouri American Water today filed a request with the Missouri Public Service Commission (MoPSC) for new rates"
future test period financial
"from June 2025 through May 2028, the forecasted future test period"
infrastructure surcharges financial
"annualized incremental revenue of approximately $179 million, excluding infrastructure surcharges of approximately $32 million"
Infrastructure surcharges are extra fees added to customer bills to recover the cost of building, maintaining or upgrading physical networks and facilities—think of an added line on a utility or shipping bill intended to pay for roads, pipes, power lines or data networks. For investors they matter because these charges can boost short-term revenue and margins but also signal cost pressures, customer resistance or regulatory risk that can affect long-term growth and pricing power.
return on equity financial
"The request is based on a return on equity of 10.50%"
Return on equity shows how effectively a company uses its shareholders' money to generate profit. It is calculated by dividing the company's net profit by its shareholders' equity, indicating how much profit is earned for each dollar invested by owners. Higher return on equity suggests the company is good at turning investments into earnings, which can be an important factor for investors assessing its profitability and efficiency.
PFAS technical
"improvements to treatment facilities to address regulatory requirements, including PFAS and other contaminants of emerging concern"
PFAS are a group of human-made chemicals used in many everyday products, such as non-stick cookware, water-repellent clothing, and food packaging, because they resist heat, water, and grease. They are often called "forever chemicals" because they do not break down easily in the environment or the human body, potentially leading to health concerns. For investors, the presence of PFAS-related risks can impact companies’ reputations, legal liabilities, and future costs.
forward-looking statements regulatory
"Certain statements included in this on (or the exhibits thereto) are forward-looking statements"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
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): July 1, 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.
Filing of Rate Request with the Missouri Public Service Commission (the “MoPSC”) by Missouri-American Water Company (“Missouri American Water”)
On July 1, 2026 , Missouri American Water, a wholly owned subsidiary of American Water Works Company, Inc. (the “Company”), announced that it filed with the MoPSC a request for new water and wastewater rates. The request seeks annualized incremental revenue of approximately $179 million, excluding infrastructure surcharges of approximately $32 million, of which $18 million remains subject to approval. The request is based on a return on equity of 10.50% and a capital structure with an equity component of 50.3% and a long-term debt component of 49.7%. The requested annualized incremental revenue is driven primarily by approximately $1.6 billion of incremental capital investments completed and planned by Missouri American Water from June 2025 through May 2028, the forecasted future test period. Missouri American Water anticipates that new rates will take effect in June 2027. Pursuant to statutory requirements, Missouri American Water will implement subsequent rate adjustments following the conclusion of the future test year based on required reconciliations, subject to regulatory approval.
A copy of the press release issued by Missouri American Water on July 1, 2026 , 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.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements included in this Current Report on Form 8-K (or the exhibits thereto) are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words with prospective meanings such as “intend,” “plan,” “estimate,” “believe,” “anticipate,” “expect,” “predict,” “project,” “propose,” “assume,” “forecast,” “outlook,” “future,” “pending,” “goal,” “objective,” “potential,” “continue,” “seek to,” “may,” “can,” “will,” “should” and “could,” or the negative of such terms or other variations or similar expressions. These forward-looking statements are predictions based on the Company’s current expectations and assumptions regarding future events. They are not guarantees or assurances of any outcomes, performance or achievements, and readers are cautioned not to place undue reliance upon them. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors. Actual results may differ materially from those discussed in the forward-looking statements included in this Current Report on Form 8-K as a result of the factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission (the “SEC”) on February 18, 2026, and other filings with the SEC, and additional risks and uncertainties, including with respect to (1) the terms of any settlement agreement or stipulation, and/or final order of the MoPSC, with respect to the above-referenced general rate case; (2) the timing of the implementation of new rates under the general rate case; (3) the amount and timing of incremental capital investments to be completed by Missouri American Water; (4) regulatory, legislative, local or municipal actions affecting the water and wastewater industries, which could adversely affect the Company and/or Missouri American Water; and (5) other economic, financial, political, business and other factors that may impact or affect the water and wastewater industries generally or the Company or Missouri American Water specifically.
These forward-looking statements are qualified by, and should be read together with, the risks and uncertainties set forth above and the risk factors included in the Company’s annual and quarterly reports as filed with the SEC, and readers should refer to such risks, uncertainties and risk factors in evaluating such forward-looking statements. Any forward-looking statements speak only as of the date of this Current Report on Form 8-K. The Company does not have any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as otherwise required by the federal securities laws. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. Furthermore, it may not be possible to assess the impact of any such factor on the Company’s or Missouri American Water’s business, either viewed independently or together, or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.
2
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits to this Current Report have been provided herewith as noted below:
| Exhibit No. | Description | |||||||
| 99.1* | Press Release, dated July 1, 2026, issued by Missouri American Water. | |||||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are included and formatted as Inline XBRL). | |||||||
| * Filed herewith. | ||||||||
3
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: | July 1, 2026 | By: | /s/ DAVID M. BOWLER | |||||||||||
| David M. Bowler | ||||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||
4
Exhibit 99.1
Missouri American Water Files Rate Request Driven by Approximately $1.6 Billion in Investments to Provide Safe, Clean, Reliable and Affordable Service
Request supports continued infrastructure investments in water and wastewater
systems serving more than 1.7 million people in 30 counties
ST. LOUIS, MO., July 1, 2026 – Missouri American Water today filed a request with the Missouri Public Service Commission (MoPSC) for new rates to support approximately $1.6 billion in water and wastewater system investments from June 2025 through May 2028. The request reinforces the company's commitment to implementing critical system upgrades and continuing to improve water quality and reliability for its more than 1.7 million people served statewide.
“We strategically plan and invest in our water and wastewater systems to help ensure they continue meeting the needs of our customers and communities,” said Rich Svindland, President of Missouri American Water. “These investments strengthen service reliability and enhance water quality—from treatment to tap—while reflecting our employees’ ongoing commitment to the health and safety of the communities we proudly serve.”
The proposed rate change will support the company's continuing infrastructure investments from June 2025 to May 2028 to modernize and strengthen its water and wastewater systems in communities across Missouri. These investments will include the replacement of approximately 140 miles of aging water and wastewater pipeline, upgrading of storage tanks, wells, pumping stations, hydrants, meters and wastewater plants, as well as ongoing replacement of lead service lines and improvements to treatment facilities to address regulatory requirements, including PFAS and other contaminants of emerging concern.
Investments include:
•St. Louis County: The relocation and replacement of the South Plant intake at a higher elevation mitigates flood risk, while raw water pump replacements, emergency power generation and replacement of aging pump components improve operating efficiency and reduce service disruptions during extreme weather.
•Jefferson City: Construction of a new filter and chemical feed building renews critical infrastructure past its useful life and enhances water quality and treatment efficiency.
•St. Joseph: Water treatment plant expansion including a new clarifier and filters, rehabilitation of treatment units and upgrades to chemical feed system improves service reliability, safety, and efficiency.
•Joplin: Construction of a new carbon feed system, well site treatment upgrades and filter backwash improvements will increase safety and help maintain consistent water quality and service reliability.
•Wastewater Treatment Investments: Treatment equipment upgrade, lift station construction and treatment enhancements will improve treatment reliability and efficiency, while helping to meet environmental compliance.
If the company’s proposed rates are approved as filed with the MoPSC today, the water bill for the average residential customer in St. Louis County using 5,900 gallons per month would increase by approximately $23 per month. The water bill for the average residential customer outside of St. Louis County using 4,500 gallons per month would increase by about $15 per month. The request updates residential wastewater rates to support continued investment with modest increases for lower usage customers and larger adjustments that help align higher-usage and unmetered customers with the cost of service.
Missouri American Water remains committed to affordability and offers programs to assist income-eligible customers, including its H2O Help to Others assistance program, budget billing options and flexible payment plans. More details can be found on the company’s customer service webpage.
To learn more about Missouri American Water's rate filing, click here. To learn more about pipe replacement projects in your community, visit missouriamwater.com > News & Community > Public Maps > Pipe Replacement Map.
The rate request is the first step in an extensive MoPSC review process that can take up to 11 months. Customers will have multiple opportunities to provide input, including submitting written comments and attending public input hearings scheduled by the MoPSC. All rate changes require MoPSC approval. If approved, the company’s new rates could take effect in June 2027.
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, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s approximately 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 Missouri American Water
Missouri American Water, a subsidiary of American Water, is the largest regulated water utility in the state with over 700 dedicated employees working to provide safe, clean, reliable and affordable water and wastewater services to approximately 1.7 million people. For more, visit missouriamwater.com and follow Missouri American Water on X, Facebook, Instagram, YouTube and LinkedIn.
AWK-IR
Media Contact:
Christie Barnhart
Senior Manager, External Communications
Missouri American Water
Christie.barnhart@amwater.com
FAQ
What rate increase is Missouri American Water, a unit of AWK, requesting?
Missouri American Water seeks approximately $179 million in annualized incremental revenue from new water and wastewater rates, excluding about $32 million of infrastructure surcharges, to support extensive capital investments across its Missouri systems.
How much is American Water investing in Missouri infrastructure under this rate case?
The rate request is driven primarily by about $1.6 billion of capital investments from June 2025 through May 2028. These projects include replacing roughly 140 miles of pipelines and upgrading treatment plants, storage tanks, pumping stations, meters and wastewater facilities.
How would the proposed Missouri American Water rates affect customer bills?
If approved as filed, an average St. Louis County residential customer using 5,900 gallons monthly would see bills rise about $23, while a comparable customer outside the county using 4,500 gallons would see about a $15 monthly increase.
When could Missouri American Water’s new rates take effect?
The filing notes that all rate changes require Missouri Public Service Commission approval. The review process can take up to 11 months, and, if approved, the company anticipates new rates could take effect in June 2027, with later reconciliations after the future test year.
What financial assumptions underlie American Water’s Missouri rate request?
The requested revenue increase is based on a 10.50% return on equity and a capital structure of about 50.3% equity and 49.7% long-term debt, reflecting the company’s proposed financial framework for recovering Missouri investments.
How many people does Missouri American Water serve under this rate filing?
Missouri American Water states it serves more than 1.7 million people in 30 counties across Missouri. The proposed rate changes are intended to support continued investments that maintain safe, clean, reliable and affordable water and wastewater services for these customers.