Item 8.01. Other Events.New Jersey Board of Public Utilities (the "NJBPU") Approval of Stipulation and Settlements forNew Jersey-American Water Company, Inc. General Rate Case and Tax Cuts and Jobs Act Petition OnOctober 28, 2020 , the NJBPU issued an order approving a stipulation and settlement (the "General Rate Case Settlement") of a general rate case filed onDecember 16, 2019 byNew Jersey-American Water Company, Inc. ("NJAWC"), a wholly owned subsidiary ofAmerican Water Works Company, Inc. The General Rate Case Settlement was entered among NJAWC, the staff of the NJBPU and theNew 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 ofNovember 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, onOctober 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 beginningNovember 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, datedOctober 28, 2020 , issued by NJAWC. 2
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