AWK: Other company developments

Item 8.01. Other Events. Partial Settlement Agreement Filed in California-American Water Company (“Cal Am”) General Rate Case On June 8, 2026, Cal Am, a wholly owned subsidiary of American Water Works Company, Inc. (the “Company”), filed with the California Public Utilities Commission (the “CPUC”) a partial settlement agreement reached with the CPUC’s Public Advocates Office to determine the amount of incremental annualized water and wastewater revenue to be received by Cal Am in its general rate case filed on July 1, 2025. The requested annualized incremental revenue was driven primarily by approximately $750 million of capital investments completed and planned by Cal Am from 2025 to 2028. Under the partial settlement agreement, the total incremental annualized water and wastewater revenue to be received by Cal Am would be $24 million in the 2027 test year, $21 million in the 2028 escalation year, and $22 million in the 2029 attrition year. The Company’s revised proposed position in this general rate case was $43 million in the 2027 test year (updated to reflect a current level of revenue and sales), an estimated $22 million in the 2028 escalation year, and an estimated $26 million in the 2029 attrition year. The treatment in the general rate case of construction work in progress (“CWIP”) is the only primary issue that remains pending in the general rate case. If CWIP is ultimately excluded from rate base, it is estimated that the incremental annualized water and wastewater revenues to be received by Cal Am for the 2027 test year and the 2028 escalation year would decrease to $20 million and $19 million, respectively, and would remain at $22 million in the 2029 attrition year. New rates would be implemented by Cal Am as of January 1, 2027 upon a final decision issued b