West Virginia American Water, a subsidiary of American Water (NYSE: AWK), has taken a significant step by filing a rate request with the Public Service Commission of West Virginia (PSC) on May 5, 2025. This request is driven by more than $300 million in investments made in water and wastewater systems since the company’s last rate adjustment. The move reinforces the company’s enduring commitment to delivering safe, clean, and reliable water services to approximately 583,000 residents across West Virginia.
Who: West Virginia American Water, part of American Water, the largest regulated water and wastewater utility in the U.S.
What: Filed for new rate increases to support infrastructure investments.
When: Filed on May 5, 2025, with a proposed phased implementation starting March 1, 2026, and final rates to take effect March 1, 2027.
Where: West Virginia state, serving the Mountain State communities.
The proposed rate increases aim to reflect the massive infrastructure modernization exceeding $300 million. The company plans a two-step rate increase to help ease customer affordability:
Step 1 (effective March 1, 2026): Average monthly water bill for a residential user consuming 3,000 gallons would rise by approximately $11.
Step 2 (effective March 1, 2027): Additional increase of about $5 per month.
Wastewater bills will follow a similar pattern, increasing by \(8 initially and \)5 in the second step.
Importantly, these adjustments incorporate the existing Distribution System Improvement Charge (DSIC) and Wastewater System Improvement Charge (WSIC).
West Virginia American Water is also introducing a Universal Affordability Discount Tariff. This progressive four-tier discount program will reduce bills by 15% to 60% for income-qualified residential customers, further supported by existing assistance programs like the Department of Health and Human Resources 20% discount and the H2O Help to Others Program™.
American Water reported a total revenue of approximately \(4.68 billion for the full fiscal year 2024 with a net income of \)1.05 billion. The company invested heavily, recording capital expenditures close to \(2.86 billion in 2024 alone, demonstrating its capital-intensive nature and dedication to infrastructure upgrades. The requested \)300 million investment for West Virginia is a part of these broader capital expenditure efforts.
This rate increase is thus a strategic financial decision anchoring the company’s commitment to sustainable service quality, infrastructure reliability, and regulatory compliance within a stable financial framework.
Previous earnings calls highlighted American Water’s focus on environmental compliance, infrastructure resilience, and investment in water quality improvements. Executives emphasized these priorities as critical to long-term customer service and operational efficiency. This 8-K filing reiterates these themes, manifesting in tangible rate adjustments to support aging system replacements and environmentally sound initiatives.
The Public Service Commission of West Virginia’s statutory 300-day review will include customer engagement opportunities such as public hearings and written comment submissions, ensuring community voices contribute to the final decision.
For more details and participation information, customers can visit westvirginiaamwater.com under the “Your Water and Wastewater Rates” section.
American Water is the largest regulated water and wastewater utility in the United States, serving over 14 million people across 14 states and 18 military installations. The company prides itself on leveraging expertise and scale to provide safe, reliable, and affordable water services.
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WaterInfrastructure, RateIncrease, WestVirginiaUtilities, CapitalExpenditure, CustomerAffordability