American Water, the largest regulated water and wastewater utility company in the U.S., released a white paper on July 8, 2026, detailing its industry leadership in delivering positive environmental results for communities. The document examines several wastewater systems acquired by its local state operations, outlining a multi-year approach to infrastructure upgrades, operational improvements, and compliance oversight. These efforts aim to bring newly acquired systems back into compliance while addressing long-standing environmental risks and balancing customer affordability.

The white paper features the Village of Godfrey in Illinois, where Illinois American Water acquired the system in 2019. Village of Godfrey Mayor Mike McCormick stated that the sale to Illinois American Water will "serve residents well today and in the future," emphasizing the company's expertise in ensuring reliable service.

American Water plans to invest approximately $48 billion in capital improvements over the next 10 years. The investment will focus on infrastructure renewal, water quality, resiliency, technology, and water and wastewater system acquisitions. This commitment is critical for maintaining and upgrading aging systems to provide safe, reliable service.

"With much of the nation's wastewater infrastructure decades old, reliable systems are essential to protecting public health and the environment," said John Griffith, President and Chief Executive Officer of American Water. He emphasized the company's dedication to providing safe, clean, reliable, and affordable water and wastewater services through sustained infrastructure investment.

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American Water serves approximately 14 million people with regulated operations in 14 states and on 18 military installations. The company, with a history dating back to 1886, employs approximately 7,000 professionals leveraging national scale to achieve excellent outcomes for customers, employees, investors, and stakeholders.

California American Water has reached a partial settlement agreement with the California Public Utilities Commission's (CPUC) Public Advocates Office to set revenue for 2027 to 2029. The filing, submitted yesterday, permits the utility to recover additional annualized water and wastewater revenues of $24 million in test year 2027, $21 million estimated for escalation year 2028, and $22 million estimated for attrition year 2029 if Construction Work in Progress (CWIP) remains in rate base. The 2027 increase represents a reduction compared to the company's revised proposed increase of $43 million above 2026 expected revenues. The remaining issue regarding the treatment of CWIP is pending.

The settlement agreement strengthens California American Water's Customer Assistance Program, increasing discounts from 35 percent to 50 percent off the typical bill for qualified residential customers in Central California. It continues discounts of 25 percent for qualified customers in Northern and Southern California. Additionally, the settlement authorizes the expansion of the Multi-family Assistance Payment Program pilot to qualified residents of multi-family housing in Monterey County.

California American Water will implement the new rates effective January 1, 2027, pending the CPUC's decision on the settlement agreement and the outstanding issue of CWIP treatment. While other parties are involved in this General Rate Case, the settlement announced today is specifically with the CPUC's Public Advocates Office. Customers in each of California American Water's service areas will receive information regarding the new rates, customer assistance, and conservation programs ahead of implementation.

Regulated water utilities like California American Water are required by law to file a General Rate Case every three years with the CPUC to set revenues and rates. The current General Rate Case was filed on July 1, 2025, reflecting approximately $750 million of ongoing water and wastewater system investments completed and planned from 2025 through 2028. The request supports the company's commitment to implementing critical system upgrades and improving water quality and reliability for its approximately 720,000 people served.

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