American Water Works Company, Inc. · NYSE:AWK
American Water Works — Investor Presentation (2009)
7 slides from American Water Works's investor presentation, 2009
Slide 1: History of Rates for Wishing Well WWTP
History of Rates for Wishing Well WWTP • Rates remained the same for 15 years from 1992 to 2007. • In 1997, Citizens Utilities purchased the troubled Sorenson Utilities. In 2002, Arizona American Water “AAW” acquired Citizens Water and Wastewater Utilities. • In 2007, rates increased to $49.69 to co
Slide 2: 20 Years of Rates vs. Consumer Price Index
20 Years of Rates vs. Consumer Price Index $90 $80 $70 $60 $50 $40 $30 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 Rates CPI Indexed 2
Slide 3: Change in Proposed Rate Increase
Change in Proposed Rate Increase • AAW originally asked the ACC for an increase of 81% to pay for the improvements and expansion. • In February 2009, AAW revised the proposal, and reduced the requested increase from 81% to 66% because of improved efficiencies. • Upgrades now dewater solids greatly d
Slide 4: Reasons for Improvements & Expansion
Reasons for Improvements & Expansion Plant Expansion • ACC Staff estimated that the existing plant was able to serve no more than 950 customers. Arizona American Water currently has 1,241 connections in Fort Mohave. • Once a plant exceeds 80% of it’s capacity acceptable industry standards suggest th
Slide 5: Capital Improvements
Capital Improvements $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Acq '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 Capital Improvements 5
Slide 6: Municipal Wastewater Projects Financed in 2007
Municipal Wastewater Projects Financed in 2007 City Name Project Name Number of Cost per Household Project Amount Households Lake Havasu City Wastewater System 17,911 $3,397 $60,835,000 Expansion Town of Cave Creek Sewer Project 1,571 $4,137 $6,500,000 Town of Prescott WWTP Expansion Project 8,964 $
Slide 7: What Can You Do?
What Can You Do? • Rate Consolidation- Ask the Arizona Corporation Commission to consider rate consolidation for AAW utilities. • Hook Up Fees- Request an increase in hook up fees from the ACC. • Rate Review- Request an annual rate review to determine if rate adjustments can be made. 7
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