As of Oct. 31, the company was awaiting a final order for a general rate case in Virginia, requesting an additional $6.0 million in annual revenues, including a $0.3 million nonjurisdictional component. A proposed settlement of $2.3 million is currently pending approval by the Commission, which when combined with the $0.3 million, would provide a net increase of $2.6 million in revenues for the company. The extent to which requested rate increases will be granted by the applicable regulatory agencies will vary. The primary driver of the company’s rate requests is capital investments made to ensure reliable service to customers.
“Making efficient use of capital to invest in our water systems is core to our business. The improvements we have made over the years to successfully manage through major weather events, like last week's hurricane, is just one example. That is why we are working with regulators to adopt mechanisms that accelerate needed improvements while being mindful of changes in rates,” said Sterba. “The recent approval of distribution surcharges in New Jersey will have a significant positive impact on the long-term reliability of water systems in the state with the added benefit of creating hundreds of jobs annually.”
American Water also continued to execute its growth strategy. During the quarter, the company acquired the water and wastewater systems serving customers in a home development near Branson, Mo. In October, the company completed two tuck-ins in Fayette County, Pa. In addition, Pennsylvania American Water entered into two agreements with XTO Energy to construct pipelines for supplying water to support shale gas drilling operations, as well as provide public water service to adjacent residential areas. Both projects are in partnership with XTO Energy and are located in Butler County. These projects will expand the critical infrastructure needed to support the region’s energy industry and help create jobs, while also bringing reliable public water service to residential communities where it doesn’t currently exist.