Iowa Utilities Commission Approves Rate Increase for American Water

American Water ( (AWK) ) has shared an announcement.

On May 21, 2025, the Iowa Utilities Commission approved a $12.7 million annualized increase in water and wastewater system revenues for Iowa American Water, following a rate case filed on May 1, 2024. This increase is driven by over $157 million in infrastructure investments aimed at upgrading treatment and distribution systems. Interim rates became effective on May 11, 2024, and the new rates will be finalized after the Iowa Utilities Commission reviews the company’s filing. This adjustment reflects Iowa American Water’s commitment to maintaining compliance with state and federal regulations while ensuring reliable services for its customers.

The most recent analyst rating on (AWK) stock is a Buy with a $164.00 price target. To see the full list of analyst forecasts on American Water stock, see the AWK Stock Forecast page.

Spark’s Take on AWK Stock

According to Spark, TipRanks’ AI Analyst, AWK is a Outperform.

American Water’s solid financial performance and strategic earnings growth underpin its strength, despite high leverage and negative free cash flow risks. While technical indicators are neutral, the company’s premium valuation and recent acquisition strategy support a positive long-term outlook. The earnings call and corporate events contribute to confidence in future growth, though careful cost management remains crucial.

To see Spark’s full report on AWK stock, click here.

More about American Water

American Water is the largest regulated water and wastewater utility company in the United States, providing services to over 14 million people across 14 states and 18 military installations. Its subsidiary, Iowa American Water, is the largest regulated water utility in Iowa, serving approximately 227,000 people with safe, clean, and reliable water services.

Average Trading Volume: 1,643,197

Technical Sentiment Signal: Strong Buy

Current Market Cap: $28.05B

Learn more about AWK stock on TipRanks’ Stock Analysis page.