Item 8.01.  Other Events.
New Jersey Board of Public Utilities (the "NJBPU") Approval of Stipulation and
Settlements for New Jersey-American Water Company, Inc. General Rate Case and
Tax Cuts and Jobs Act Petition
On October 28, 2020, the NJBPU issued an order approving a stipulation and
settlement (the "General Rate Case Settlement") of a general rate case filed on
December 16, 2019 by New Jersey-American Water Company, Inc. ("NJAWC"), a wholly
owned subsidiary of American Water Works Company, Inc. The General Rate Case
Settlement was entered among NJAWC, the staff of the NJBPU and the New Jersey
Division of Rate Counsel ("Rate Counsel"). The order with respect to the General
Rate Case Settlement approves a $39 million annual increase in water and
wastewater revenues, effective as of November 1, 2020, based on an authorized
return on equity ("ROE") of 9.6%, authorized rate base of $3.57 billion, a
common equity ratio of 54.6% and a long-term debt ratio of 45.4%, compared to an
authorized ROE of 9.6%, authorized rate base of $2.95 billion, common equity
ratio of 54% and long-term debt ratio of 46%, as approved in NJAWC's last
general rate case in 2018.
Separately, on October 28, 2020, the NJBPU approved a stipulation and settlement
(the "TCJA Settlement") that is intended to resolve the treatment of the
remaining impacts of the Tax Cuts and Jobs Act (the "TCJA") on the rates and
books of NJAWC. The TCJA Settlement was entered into among NJAWC, the staff of
the NJBPU and Rate Counsel. The TCJA Settlement identifies NJAWC's excess
accumulated deferred income taxes ("EADIT") resulting from the TCJA's reduction
in the federal corporate income tax rate from 35% to 21%, and provides for the
amortization and return to NJAWC customers of its unprotected EADIT balance of
$132.6 million over a period of 15 years. NJAWC's protected EADIT balance of
$187.9 million will be amortized and returned to NJAWC customers pursuant to the
average rate assumption method over the remaining life of the underlying assets.
The TCJA Settlement also requires NJAWC to return to customers an aggregate of
$52.9 million of EADIT through (i) base rates approved in the General Rate Case
Settlement and (ii) $32.5 million in customer bill credits over a ten-month
period beginning November 1, 2020.
Item 9.01.  Financial Statements and Exhibits.
(d)  Exhibits.

The following exhibit has been filed herewith:
Exhibit No.       Description of Exhibit
99.1                Press Release, dated October 28, 2020, issued by NJAWC.


                                       2

--------------------------------------------------------------------------------

© Edgar Online, source Glimpses