American Water Works Co. Inc.
09/27/2024 | Press release | Distributed by Public on 09/27/2024 14:16
Material Event Form 8 K
Item 8.01. Other Events.
Pennsylvania Commonwealth Court Dismisses Appeals of the Pennsylvania Public Utility Commission's (the "PaPUC's") Order Approving the Acquisition of Butler Area Sewer Authority's Wastewater Assets
On September 26, 2024, the Pennsylvania Commonwealth Court issued an order (the "Order") dismissing the appeals of Center Township and Summit Township, which sought to reverse the PaPUC's order, dated November 9, 2023, approving the acquisition (the "Acquisition") of the public wastewater collection and treatment system assets (the "System Assets") of the Butler Area Sewer Authority by Pennsylvania-American Water Company ("Pennsylvania American Water"), a subsidiary of American Water Works Company, Inc. (the "Company"). While the Order remains subject to possible additional challenges, Pennsylvania American Water is moving forward to close the Acquisition expeditiously.
As previously disclosed, on November 9, 2023, the PaPUC approved a settlement agreement without modification with respect to Pennsylvania American Water's application to acquire the System Assets for a purchase price of $230 million. On December 14, 2023, Center Township and Summit Township filed appeals with the Pennsylvania Commonwealth Court challenging the Acquisition. The System Assets provide wastewater service to approximately 15,000 customer connections including in the City of Butler, parts of the Borough of East Butler, and parts of the Townships of Butler, Center, Connoquenessing, Summit and Oakland.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements included in this Current Report on Form 8-K are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words with prospective meanings such as "intend," "plan," "estimate," "believe," "anticipate," "expect," "predict," "project," "propose," "assume," "forecast," "outlook," "future," "pending," "goal," "objective," "potential," "continue," "seek to," "may," "can," "will," "should" and "could," or the negative of such terms or other variations or similar expressions. These forward-looking statements are predictions based on the Company's current expectations and assumptions regarding future events. They are not guarantees or assurances of any outcomes, performance or achievements, and readers are cautioned not to place undue reliance upon them. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors. Actual results may differ materially from those discussed in the forward-looking statements included in this Current Report on Form 8-K as a result of the factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the "SEC") on February 14, 2024, and other filings with the SEC, and additional risks and uncertainties, including with respect to (1) the ability of Pennsylvania American Water to complete the steps necessary to close the Acquisition; (2) any further appeal of or challenge to the Commonwealth Court's order or the Acquisition; (3) the timing of the closing of the Acquisition; (4) the occurrence of the benefits and synergies expected or predicted to occur as a result of the completion of the Acquisition; (5) unexpected costs, liabilities or delays associated with the Acquisition or integration of the System Assets; (6) regulatory, legislative, local or municipal actions affecting the water and wastewater industries, which could adversely affect Pennsylvania American Water or the Company; and (7) other economic, political, business and other factors.
These forward-looking statements are qualified by, and should be read together with, the risks and uncertainties set forth above and the risk factors included in the Company's annual and quarterly reports as filed with the SEC, and readers should refer to such risks, uncertainties and risk factors in evaluating such forward-looking statements. Any forward-looking statements speak only as of the date of this Current Report on Form 8-K. The Company does not have any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as otherwise required by the federal securities laws. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. Furthermore, it may not be possible to assess the impact of any such factor on the Company's or Pennsylvania American Water's business, either viewed independently or together, or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. The foregoing factors should not be construed as exhaustive.
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