Authorized rate increases support revenue growth
Since the outset of the current five-year period, American Water Works has benefited from authorized rate increases, including infrastructure surcharges. Rate adjustments are allowed periodically to reflect recovery of capital investments made into replacing the infrastructure which is necessary to sustain safe and reliable services for customers. Moving forward, it will be essential for American Water Works to earn rate increases so the organization can cover the capital expenses used to upgrade aging infrastructure. American Water Works estimates it to have earned $208.0 million from authorized rate increases in 2021 alone.
Balance SheetIn response to volatile demand in the wake of the first COVID-19 surge, the company undertook a comprehensive cost reduction program, aimed at shoring up labor and supply costs.
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