American Water Works (AWK) 10-Q31 Oct 222022 Q3 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2022	Oct. 25, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-34028
Entity Registrant Name	AMERICAN WATER WORKS COMPANY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0063696
Entity Address, Address Line One	1 Water Street
Entity Address, City or Town	Camden
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08102-1658
City Area Code	856
Local Phone Number	955-4001
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	AWK
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		181,827,874
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001410636
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Property, plant and equipment	$ 29,062	$ 27,413
Accumulated depreciation	(6,426)	(6,329)
Property, plant and equipment, net	22,636	21,084
Current assets:
Cash and cash equivalents	77	116
Restricted funds	27	20
Accounts receivable, net of allowance for uncollectible accounts of $64 and $75, respectively	358	271
Unbilled revenues	273	248
Materials and supplies	93	57
Assets held for sale	0	683
Other	189	159
Total current assets	1,017	1,554
Regulatory and other long-term assets:
Regulatory assets	1,075	1,051
Seller promissory note from the sale of the Homeowner Services Group	720	720
Operating lease right-of-use assets	90	92
Goodwill	1,143	1,139
Postretirement benefit assets	208	193
Other	237	242
Total regulatory and other long-term assets	3,473	3,437
Total assets	27,126	26,075
Capitalization:
Common stock ($0.01 par value; 500,000,000 shares authorized; 187,169,722 and 186,880,413 shares issued, respectively)	2	2
Paid-in-capital	6,813	6,781
Retained earnings	1,359	925
Accumulated other comprehensive loss	(39)	(45)
Treasury stock, at cost (5,342,477 and 5,269,324 shares, respectively)	(377)	(365)
Total common shareholders' equity	7,758	7,298
Long-term debt	10,940	10,341
Redeemable preferred stock at redemption value	3	3
Total long-term debt	10,943	10,344
Total capitalization	18,701	17,642
Current liabilities:
Short-term debt	634	584
Current portion of long-term debt	265	57
Accounts payable	220	235
Accrued liabilities	610	701
Accrued taxes	69	176
Accrued interest	116	88
Liabilities related to assets held for sale	0	83
Other	216	217
Total current liabilities	2,130	2,141
Regulatory and other long-term liabilities:
Advances for construction	306	284
Deferred income taxes and investment tax credits	2,372	2,421
Regulatory liabilities	1,614	1,600
Operating lease liabilities	78	80
Accrued pension expense	250	285
Other	186	180
Total regulatory and other long-term liabilities	4,806	4,850
Contributions in aid of construction	1,489	1,442
Commitments and contingencies (See Note 11)
Total capitalization and liabilities	$ 27,126	$ 26,075

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for uncollectible accounts	$ 64	$ 75
Common stock, par value (dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	187,169,722	186,880,413
Treasury stock, shares (in shares)	5,342,477	5,269,324

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Operating revenues	$ 1,082	$ 1,092	$ 2,861	$ 2,979
Operating expenses:
Operation and maintenance	416	436	1,156	1,286
Depreciation and amortization	164	161	485	476
General taxes	63	78	208	241
Total operating expenses, net	643	675	1,849	2,003
Operating income	439	417	1,012	976
Other income (expense):
Interest expense	(111)	(101)	(317)	(300)
Interest income	14	0	39	0
Non-operating benefit costs, net	19	20	58	59
Other, net	6	4	38	11
Total other (expense) income	(72)	(77)	(182)	(230)
Income before income taxes	367	340	830	746
Provision for income taxes	70	62	157	128
Net income attributable to common shareholders	$ 297	$ 278	$ 673	$ 618
Basic earnings per share:
Net income attributable to common shareholders (dollars per share)	$ 1.63	$ 1.53	$ 3.70	$ 3.40
Diluted earnings per share:
Net income attributable to common shareholders (dollars per share)	$ 1.63	$ 1.53	$ 3.70	$ 3.40
Weighted-average common shares outstanding:
Basic (in shares)	182	182	182	182
Diluted (in shares)	182	182	182	182

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss) attributable to common shareholders	$ 297	$ 278	$ 673	$ 618
Other comprehensive income, net of tax:
Defined benefit pension plan actuarial loss, net of tax of $1 and $0 for the three months ended September 30, 2022 and 2021, respectively, and $1 and $1 for the nine months ended September 30, 2022 and 2021, respectively	0	1	2	3
Unrealized gain on cash flow hedges, net of tax of $0 and $0 for the three months ended September 30, 2022 and 2021, respectively, and $1 and $0 for the nine months ended September 30, 2022 and 2021, respectively	1	0	4	1
Net other comprehensive income	1	1	6	4
Comprehensive income attributable to common shareholders	$ 298	$ 279	$ 679	$ 622

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Defined benefit pension plan actuarial loss, tax	$ 1	$ 0	$ 1	$ 1
Unrealized gain on cash flow hedges, tax	$ 0	$ 0	$ 1	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 673	$ 618
Adjustments to reconcile to net cash flows provided by operating activities:
Depreciation and amortization	485	476
Deferred income taxes and amortization of investment tax credits	13	121
Provision for losses on accounts receivable	17	28
Pension and non-pension postretirement benefits	(37)	(31)
Other non-cash, net	(31)	(34)
Changes in assets and liabilities:
Receivables and unbilled revenues	(129)	(103)
Pension and non-pension postretirement benefit contributions	(40)	(31)
Accounts payable and accrued liabilities	(9)	28
Accrued taxes	(148)	25
Other assets and liabilities, net	(30)	(68)
Net cash provided by operating activities	764	1,029
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,597)	(1,205)
Acquisitions, net of cash acquired	(288)	(78)
Net proceeds from sale of assets	608	0
Removal costs from property, plant and equipment retirements, net	(85)	(70)
Net cash used in investing activities	(1,362)	(1,353)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt	822	1,113
Repayments of long-term debt	(14)	(370)
Repayments of term loan	0	(500)
Net short-term borrowings (repayments) with maturities less than three months	50	(97)
Advances and contributions in aid of construction, net of refunds of $13 and $17 for the nine months ended September 30, 2022 and 2021, respectively	64	50
Debt issuance costs and make-whole premium on early debt redemption	(7)	(26)
Dividends paid	(348)	(318)
Other, net	(1)	(4)
Net cash provided by (used in) financing activities	566	(152)
Net decrease in cash, cash equivalents and restricted funds	(32)	(476)
Cash, cash equivalents and restricted funds at beginning of period	136	576
Cash, cash equivalents and restricted funds at end of period	104	100
Non-cash investing activity:
Capital expenditures acquired on account but unpaid as of the end of period	$ 347	$ 238

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statement of Cash Flows [Abstract]
Advances and contributions in aid of construction, refunds	$ 13	$ 17

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Millions		Total	Common Stock	Paid-in-Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2020			186,500,000
Beginning balance at Dec. 31, 2020		$ 6,454	$ 2	$ 6,747	$ 102	$ (49)	$ (348)
Beginning balance (in shares) at Dec. 31, 2020							(5,200,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders		133			133
Common stock issuances (in shares)	[1]		200,000				(100,000)
Common stock issuances	[1]	(5)		10			$ (15)
Net other comprehensive income		1				1
Ending balance (in shares) at Mar. 31, 2021			186,700,000
Ending balance at Mar. 31, 2021		6,583	$ 2	6,757	235	(48)	$ (363)
Ending balance (in shares) at Mar. 31, 2021							(5,300,000)
Beginning balance (in shares) at Dec. 31, 2020			186,500,000
Beginning balance at Dec. 31, 2020		6,454	$ 2	6,747	102	(49)	$ (348)
Beginning balance (in shares) at Dec. 31, 2020							(5,200,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders		618
Net other comprehensive income		4
Ending balance (in shares) at Sep. 30, 2021			186,800,000
Ending balance at Sep. 30, 2021		6,866	$ 2	6,772	500	(45)	$ (363)
Ending balance (in shares) at Sep. 30, 2021							(5,300,000)
Beginning balance (in shares) at Mar. 31, 2021			186,700,000
Beginning balance at Mar. 31, 2021		6,583	$ 2	6,757	235	(48)	$ (363)
Beginning balance (in shares) at Mar. 31, 2021							(5,300,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders		207			207
Common stock issuances (in shares)	[1]		100,000
Common stock issuances	[1]	8		8
Net other comprehensive income		2				2
Dividends (declared per common share)		(110)			(110)
Ending balance (in shares) at Jun. 30, 2021			186,800,000
Ending balance at Jun. 30, 2021		6,690	$ 2	6,765	332	(46)	$ (363)
Ending balance (in shares) at Jun. 30, 2021							(5,300,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders		278			278
Common stock issuances	[1]	7		7
Net other comprehensive income		1				1
Dividends (declared per common share)		(110)			(110)
Ending balance (in shares) at Sep. 30, 2021			186,800,000
Ending balance at Sep. 30, 2021		6,866	$ 2	6,772	500	(45)	$ (363)
Ending balance (in shares) at Sep. 30, 2021							(5,300,000)
Beginning balance (in shares) at Dec. 31, 2021			186,900,000
Beginning balance at Dec. 31, 2021		$ 7,298	$ 2	6,781	925	(45)	$ (365)
Beginning balance (in shares) at Dec. 31, 2021		(5,269,324)					(5,300,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders		$ 158			158
Common stock issuances (in shares)	[2]		200,000
Common stock issuances	[2]	3		15			$ (12)
Net other comprehensive income		1				1
Ending balance (in shares) at Mar. 31, 2022			187,100,000
Ending balance at Mar. 31, 2022		7,460	$ 2	6,796	1,083	(44)	$ (377)
Ending balance (in shares) at Mar. 31, 2022							(5,300,000)
Beginning balance (in shares) at Dec. 31, 2021			186,900,000
Beginning balance at Dec. 31, 2021		$ 7,298	$ 2	6,781	925	(45)	$ (365)
Beginning balance (in shares) at Dec. 31, 2021		(5,269,324)					(5,300,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders		$ 673
Net other comprehensive income		6
Ending balance (in shares) at Sep. 30, 2022			187,200,000
Ending balance at Sep. 30, 2022		$ 7,758	$ 2	6,813	1,359	(39)	$ (377)
Ending balance (in shares) at Sep. 30, 2022		(5,342,477)					(5,300,000)
Beginning balance (in shares) at Mar. 31, 2022			187,100,000
Beginning balance at Mar. 31, 2022		$ 7,460	$ 2	6,796	1,083	(44)	$ (377)
Beginning balance (in shares) at Mar. 31, 2022							(5,300,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders		218			218
Common stock issuances	[2]	8		8
Net other comprehensive income		4				4
Dividends (declared per common share)		(120)			(120)
Ending balance (in shares) at Jun. 30, 2022			187,100,000
Ending balance at Jun. 30, 2022		7,570	$ 2	6,804	1,181	(40)	$ (377)
Ending balance (in shares) at Jun. 30, 2022							(5,300,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to common shareholders		297			297
Common stock issuances (in shares)	[2]		100,000
Common stock issuances	[2]	9		9
Net other comprehensive income		1				1
Dividends (declared per common share)		(119)			(119)
Ending balance (in shares) at Sep. 30, 2022			187,200,000
Ending balance at Sep. 30, 2022		$ 7,758	$ 2	$ 6,813	$ 1,359	$ (39)	$ (377)
Ending balance (in shares) at Sep. 30, 2022		(5,342,477)					(5,300,000)

[1]Includes stock-based compensation, employee stock purchase plan and dividend reinvestment and direct stock purchase plan activity.[2]Includes stock-based compensation, employee stock purchase plan and dividend reinvestment and direct stock purchase plan activity.

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares		3 Months Ended
	Sep. 01, 2022	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (dollars per share)	$ 0.6550	$ 0.6550	$ 0.6550	$ 0.6025	$ 0.6025

Basis of Presentation

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1: Basis of Presentation The unaudited Consolidated Financial Statements included in this report include the accounts of American Water Works Company, Inc. and all of its subsidiaries (the “Company” or “American Water”), in which a controlling interest is maintained after the elimination of intercompany balances and transactions. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting, and the rules and regulations for reporting on Quarterly Reports on Form 10-Q (“Form 10-Q”). Accordingly, they do not contain certain information and disclosures required by GAAP for comprehensive financial statements. In the opinion of management, all adjustments necessary for a fair statement of the financial position as of September 30, 2022, and the results of operations and cash flows for all periods presented, have been made. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The unaudited Consolidated Financial Statements and Notes included in this report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“Form 10-K”), which provides a more complete discussion of the Company’s accounting policies, financial position, operating results and other matters. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the year, primarily due to the seasonality of the Company’s operations.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
Significant Accounting Policies	Sep. 30, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Significant Accounting Policies	Note 2: Significant Accounting Policies New Accounting Standards Presented in the table below are new accounting standards that were adopted by the Company in 2022: Standard Description Date of Adoption Application Effect on the Consolidated Financial Statements Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Simplification of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. This will result in fewer embedded conversion features being separately recognized from the host contract. Earnings per share (“EPS”) calculations have been simplified for certain instruments. January 1, 2022 Either modified retrospective or fully retrospective The standard did not have a material impact on its Consolidated Financial Statements. Disclosures by Business Entities about Government Assistance The amendments in this update require additional disclosures regarding government grants and contributions. These disclosures require information on the following three items about government transactions to be provided: information on the nature of transactions and related accounting policy used to account for transactions, the line items on the balance sheet and income statement affected by these transactions including amounts applicable to each line, and significant terms and conditions of the transactions, including commitments and contingencies. January 1, 2022 Either prospective or retrospective The standard did not have a material impact on its Consolidated Financial Statements. Presented in the table below are recently issued accounting standards that have not yet been adopted by the Company as of September 30, 2022: Standard Description Date of Adoption Application Estimated Effect on the Consolidated Financial Statements Accounting for Contract Assets and Contract Liabilities from Contracts with Customers The guidance requires an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification Topic 606, as if it had originated the contracts. The amendments in this update also provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. January 1, 2023; early adoption permitted Prospective The Company is evaluating any impact on its Consolidated Financial Statements, as well as the timing of adoption. Troubled Debt Restructurings and Vintage Disclosures The main provisions of this standard eliminate the receivables accounting guidance for troubled debt restructurings (“TDRs”) by creditors while enhancing disclosure requirements when a borrower is experiencing financial difficulty. Entities must apply the loan refinancing and restructuring guidance for receivables to determine whether a modification results in a new loan or a continuation of an existing loan. Additionally, the amendments in this update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases. January 1, 2023; early adoption permitted Prospective, with a modified retrospective option for amendments related to the recognition and measurement of TDRs. The Company is evaluating any impact on its Consolidated Financial Statements, as well as the timing of adoption. Allowance for Uncollectible Accounts Allowances for uncollectible accounts are maintained for estimated probable losses resulting from the Company’s inability to collect receivables from customers. Accounts that are outstanding longer than the payment terms are considered past due. A number of factors are considered in determining the allowance for uncollectible accounts, including the length of time receivables are past due, previous loss history, current economic and societal conditions and reasonable and supportable forecasts that affect the collectability of receivables from customers. The Company generally writes off accounts when they become uncollectible or are over a certain number of days outstanding. Presented in the table below are the changes in the allowance for uncollectible accounts for the nine months ended September 30: 2022 2021 Balance as of January 1 $ (75) $ (60) Amounts charged to expense (17) (28) Amounts written off 19 22 Other, net (a) 9 (10) Balance as of September 30 $ (64) $ (76) (a) This portion of the allowance for uncollectible accounts is primarily related to COVID-19 related regulatory asset activity. The 2021 activity also includes the portion of the allowance related to the Company’s New York subsidiary, which was sold on January 1, 2022, and is included in assets held for sale on the Consolidated Balance Sheets as of December 31, 2021. See Note 5—Acquisitions and Divestitures for additional information. Reclassifications Certain reclassifications have been made to prior periods in the Consolidated Financial Statements and Notes to conform to the current presentation.

Regulatory Matters

Regulatory Matters	9 Months Ended
Regulatory Matters	Sep. 30, 2022
Regulated Operations [Abstract]
Regulatory Matters	Note 3: Regulatory Matters General Rate Cases and Infrastructure Surcharges Presented in the table below are annualized incremental revenues, excluding reductions for the amortization of excess accumulated deferred income tax (“EADIT”) that are generally offset in income tax expense, assuming a constant water sales volume, resulting from general rate case authorizations and infrastructure surcharge authorizations that became effective in the respective period: During the Three Months Ended September 30, During the Nine Months Ended September 30, (In millions) 2022 2021 2022 2021 General rate cases by state (a): New Jersey (effective September 1, 2022) $ 61 $ — $ 61 $ — Hawaii (effective July 1, 2022) 2 — 2 — West Virginia (effective February 25, 2022) — — 15 — California (effective January 1, 2022 and January 1, 2021) — — 13 22 Pennsylvania (effective January 1, 2022 and January 28, 2021) — — 20 70 Missouri (effective May 28, 2021) — — — 22 Total general rate cases $ 63 $ — $ 111 $ 114 Infrastructure surcharges by state: Missouri (effective August 11, 2022 and February 1, 2022) $ 18 $ — $ 30 $ — Tennessee (effective August 8, 2022 and January 1, 2021) 3 — 3 3 Pennsylvania (effective July 1, 2022, April 1, 2022 and January 1, 2021) 9 — 11 8 Kentucky (effective July 1, 2022 and July 1, 2021) 3 1 3 1 New Jersey (effective June 27, 2022 and June 28, 2021) — — 10 14 Indiana (effective March 21, 2022 and March 17, 2021) — — 8 8 West Virginia (effective March 1, 2022 and January 1, 2021) — — 3 5 Illinois (effective January 1, 2022 and January 1, 2021) — — 6 7 Total infrastructure surcharges $ 33 $ 1 $ 74 $ 46 (a) Excludes authorized increase of $7 million for the nine months ended September 30, 2021, for the Company’s New York subsidiary, which was sold on January 1, 2022. See Note 5—Acquisitions and Divestitures for additional information. Effective October 1, 2022, the Company’s Pennsylvania subsidiary implemented an infrastructure surcharge for annualized incremental revenues of $8 million. On August 17, 2022, the Company’s New Jersey subsidiary was authorized additional annual revenues of $61 million in its general rate case, effective September 1, 2022, excluding agreed to reductions for EADIT as a result of the Tax Cuts and Jobs Act of 2017 (the “TCJA”) ($46 million including EADIT reductions). The order incorporated updated estimates of production costs, including chemicals, fuel and power costs. Beginning January 1, 2023, the Company’s New Jersey subsidiary will defer as a regulatory asset or liability, as appropriate, the difference between its pension expense and other post-employment benefits expense and those amounts included in base rates. The deferral period for this regulatory asset or liability will be two years or, if earlier, will end at the conclusion of the Company’s New Jersey subsidiary’s next general rate case. The Company’s New Jersey subsidiary also withdrew its request, without prejudice, to recover its existing authorized COVID-19-related regulatory asset in the general rate case and will seek recovery in a separate proceeding within the process established in the New Jersey Board of Public Utilities’ (the “NJBPU”) generic COVID-19-related proceeding. On February 24, 2022, the Company’s West Virginia subsidiary (“WVAWC”) was authorized additional annual revenues of $15 million in its general rate case, effective February 25, 2022, excluding agreed to reductions for EADIT as a result of the TCJA. The EADIT reduction in revenues is $2 million and the exclusion for infrastructure surcharges is $10 million. Staff of the Public Service Commission of West Virginia moved for reconsideration of the final order on several grounds. WVAWC filed its response to the Staff's Petition for Reconsideration on March 28, 2022, in support of the authorized revenue requirement. On October 21, 2022, the Public Service Commission of West Virginia denied the motion for reconsideration. On November 18, 2021, the California Public Utilities Commission (the “CPUC”) unanimously approved a final decision in the test year 2021 general rate case filed by the Company’s California subsidiary, which was retroactive to January 1, 2021. The Company’s California subsidiary received authorization for additional annualized water and wastewater revenues of $22 million, excluding agreed to reductions for EADIT as a result of the TCJA. The EADIT reduction in revenues is $4 million and is offset by a like reduction in income tax expense. On February 16, 2022, the Company’s California subsidiary received approval to increase rates by $13 million in 2022 escalation increases, excluding $4 million of reductions related to the TCJA, which was retroactive to January 1, 2022. On March 2, 2021, an administrative law judge (“ALJ”) in the Office of Administrative Law of New Jersey filed an initial decision with the NJBPU that recommended denial of a petition filed by the Company’s New Jersey subsidiary, which sought approval of acquisition adjustments in rate base of $29 million associated with the acquisitions of Shorelands Water Company, Inc. in 2017 and the Borough of Haddonfield’s water and wastewater systems in 2015. On July 29, 2021, the NJBPU issued an order adopting the ALJ’s initial decision without modification. The Company’s New Jersey subsidiary filed a Notice of Appeal with the New Jersey Appellate Division on September 10, 2021. The Company’s New Jersey subsidiary filed its brief in support of the appeal on March 4, 2022. Response and Reply briefs were filed on June 22, 2022, and August 4, 2022, respectively. There is no financial impact to the Company as a result of the NJBPU’s order, since the acquisition adjustments are currently recorded as goodwill on the Consolidated Balance Sheets. On February 25, 2021, the Company’s Pennsylvania subsidiary was authorized additional annualized revenues of $90 million, effective January 28, 2021, excluding agreed to reductions in revenues of $19 million for EADIT as a result of the TCJA. The overall increase, net of TCJA reductions, is $71 million in revenues combined over two steps. The first step was effective January 28, 2021 in the amount of $70 million ($51 million including TCJA reductions) and the second step was effective January 1, 2022 in the amount of $20 million. The protected EADIT balance of $200 million is being returned to customers using the average rate assumptions method, and the unprotected EADIT balance of $116 million is being returned to customers over 20 years. The $19 million annual reduction to revenue is comprised of both the protected and unprotected EADIT amortizations and a portion of catch-up period EADIT. A bill credit of $11 million annually for two years returns to customers the remainder of the EADIT catch-up period amortization. The catch-up period of January 1, 2018, through December 31, 2020, covers the period from when the lower federal corporate income tax rate went into effect until new base rates went into effect and will be amortized over two years. Pending General Rate Case Filings On July 1, 2022, the Company’s California subsidiary filed a general rate case requesting an increase in 2024 revenue of $57 million and a total increase in revenue over the 2024 to 2026 period of $99 million. The requested increase excludes proposed reductions for EADIT of $1 million as a result of TCJA. On July 1, 2022, the Company’s Missouri subsidiary filed a general rate case requesting $116 million in additional annualized revenues excluding proposed reductions for EADIT as a result of TCJA ($105 million including EADIT reductions) and infrastructure surcharges. On April 29, 2022, the Company’s Pennsylvania subsidiary filed a general rate case requesting $185 million in additional annualized water and wastewater revenues excluding proposed reductions for EADIT as a result of TCJA and infrastructure surcharges. On October 11, 2022, the Company’s Pennsylvania subsidiary, the Pennsylvania Public Utility Commission’s (the “PaPUC”) Bureau of Investigation and Enforcement, the Pennsylvania Office of Consumer Advocate, and certain other parties to the general rate case jointly filed a petition for settlement with the PaPUC providing for a total annualized revenue increase of $138 million. The petition for settlement provides for an annualized revenue increase of $150 million excluding agreed to reductions for EADIT as a result of the TCJA ($138 million including EADIT reductions). In addition, the petition for settlement incorporates updated estimates of pension and other post-employment benefits expense, as well as increases in chemicals, fuel and power costs. Furthermore, the petition for settlement includes recovery of the COVID-19 deferral balance. An ALJ will review the petition for settlement and render a recommended decision to the PaPUC on whether it should approve the settlement. After its review of the matter, the PaPUC will issue a final order, which the Company expects to occur by January 2023, with new rates to be effective as of January 28, 2023. On February 10, 2022, the Company’s Illinois subsidiary filed a general rate case requesting $71 million in additional annualized revenues excluding proposed reductions for EADIT as a result of TCJA and infrastructure surcharges. The requested increase was subsequently updated in the Illinois subsidiary’s June 29, 2022, rebuttal filing, with the request adjusted to $85 million in additional annualized revenues excluding proposed reductions for EADIT as a result of TCJA ($83 million including EADIT reductions) and infrastructure surcharges. The request was increased in the rebuttal filing to capture higher production costs and expected higher pension and other post-employment benefit costs. Evidentiary hearings were held on August 10, 2022, and on October 28, 2022, the ALJs issued a proposed order recommending $69 million in additional annualized revenues, excluding proposed reductions for EADIT as a result of TCJA and infrastructure surcharges ($67 million including EADIT reductions), on a proposed return on equity of 9.78%. The final order is expected in late 2022 or early January 2023, with rates effective in January 2023. On November 15, 2021, the Company’s Virginia subsidiary filed a general rate case requesting $15 million in additional annualized revenues excluding proposed reductions for EADIT as a result of TCJA. Interim rates were effective on May 1, 2022, and the difference between interim and final approved rates is subject to refund. On September 26, 2022, a settlement agreement, supported by all parties except one, was filed with the Virginia State Corporation Commission for a $12 million annual revenue increase excluding agreed to reductions for EADIT as a result of TCJA ($11 million including EADIT reductions). Public hearings were held on September 27 and 28, 2022. A final decision on this matter is expected in the first quarter of 2023. The Company’s California subsidiary submitted its application on May 3, 2021, to set its cost of capital for 2022 through 2024. According to the CPUC’s procedural schedule, a decision setting the authorized cost of capital is expected to be issued in the fourth quarter of 2022. Pending Infrastructure Surcharge Filings On September 9, 2022, the Company’s Missouri subsidiary filed an infrastructure surcharge proceeding requesting $13 million in additional annualized revenues. On June 30, 2022, WVAWC filed an infrastructure surcharge proceeding requesting $8 million in additional annualized revenues. Other Regulatory Matters In September 2020, the CPUC released a decision under its Low-Income Rate Payer Assistance program rulemaking that required the Company’s California subsidiary to file a proposal to alter its water revenue adjustment mechanism in its next general rate case filing in 2022, which would become effective in January 2024. On October 5, 2020, the Company’s California subsidiary filed an application for rehearing of the decision and following the CPUC’s denial of its rehearing application in September 2021, the Company’s California subsidiary filed a petition for writ of review with the California Supreme Court on October 27, 2021. On May 18, 2022, the California Supreme Court issued a writ of review for the Company’s California subsidiary’s petition and the petitions filed by other entities challenging the decision. Independent of the judicial challenge, California passed Senate Bill 1469, which allows the CPUC to consider and authorize the implementation of a mechanism that separates the water corporation’s revenue and its water sales. Legislation was signed by the Governor on September 30, 2022, and will become effective on January 1, 2023. In response to the legislation, on October 10, 2022, the Company’s California subsidiary filed a request for the CPUC to consider the continuation of its decoupling mechanism in its pending 2022 general rate case, which would be effective 2024 through 2026.

Revenue Recognition

Revenue Recognition	9 Months Ended
Revenue Recognition	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 4: Revenue Recognition Disaggregated Revenues The Company’s primary business involves the ownership of utilities that provide water and wastewater services to residential, commercial, industrial, public authority, fire service and sale for resale customers, collectively presented as the “Regulated Businesses.” The Company also operates other market-based businesses that provide water and wastewater services to the U.S. government on military installations, as well as municipalities, and utility customers, collectively included within “Market-Based Businesses and Other.” Presented in the table below are operating revenues disaggregated for the three months ended September 30, 2022: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 556 $ 1 $ 557 Commercial 207 1 208 Fire service 36 — 36 Industrial 41 1 42 Public and other 82 — 82 Total water services 922 3 925 Wastewater services: Residential 45 1 46 Commercial 12 — 12 Industrial 1 — 1 Public and other 7 — 7 Total wastewater services 65 1 66 Miscellaneous utility charges 9 — 9 Alternative revenue programs — 1 1 Lease contract revenue — 2 2 Total Regulated Businesses 996 7 1,003 Market-Based Businesses and Other 80 (1) 79 Total operating revenues $ 1,076 $ 6 $ 1,082 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of Accounting Standards Codification Topic 606, Revenue From Contracts With Customers (“ASC 606”), and accounted for under other existing GAAP. Presented in the table below are operating revenues disaggregated for the three months ended September 30, 2021: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 545 $ — $ 545 Commercial 197 — 197 Fire service 38 — 38 Industrial 39 — 39 Public and other 72 — 72 Total water services 891 — 891 Wastewater services: Residential 38 — 38 Commercial 10 — 10 Industrial 1 — 1 Public and other 4 — 4 Total wastewater services 53 — 53 Miscellaneous utility charges 2 — 2 Alternative revenue programs — (4) (4) Lease contract revenue — 2 2 Total Regulated Businesses 946 (2) 944 Market-Based Businesses and Other 148 — 148 Total operating revenues $ 1,094 $ (2) $ 1,092 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP. Presented in the table below are operating revenues disaggregated for the nine months ended September 30, 2022: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 1,467 $ 2 $ 1,469 Commercial 534 1 535 Fire service 109 — 109 Industrial 115 1 116 Public and other 195 — 195 Total water services 2,420 4 2,424 Wastewater services: Residential 128 1 129 Commercial 33 — 33 Industrial 3 — 3 Public and other 14 — 14 Total wastewater services 178 1 179 Miscellaneous utility charges 27 — 27 Alternative revenue programs — 10 10 Lease contract revenue — 6 6 Total Regulated Businesses 2,625 21 2,646 Market-Based Businesses and Other 216 (1) 215 Total operating revenues $ 2,841 $ 20 $ 2,861 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP. Presented in the table below are operating revenues disaggregated for the nine months ended September 30, 2021: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 1,466 $ — $ 1,466 Commercial 511 — 511 Fire service 112 — 112 Industrial 105 — 105 Public and other 172 — 172 Total water services 2,366 — 2,366 Wastewater services: Residential 112 — 112 Commercial 28 — 28 Industrial 3 — 3 Public and other 12 — 12 Total wastewater services 155 — 155 Miscellaneous utility charges 18 — 18 Alternative revenue programs — 12 12 Lease contract revenue — 5 5 Total Regulated Businesses 2,539 17 2,556 Market-Based Businesses and Other 424 (1) 423 Total operating revenues $ 2,963 $ 16 $ 2,979 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP. Contract Balances Contract assets and contract liabilities are the result of timing differences between revenue recognition, billings and cash collections. In Market-Based Businesses and Other, certain contracts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Contract assets are recorded when billing occurs subsequent to revenue recognition and are reclassified to accounts receivable when billed and the right to consideration becomes unconditional. Contract liabilities are recorded when the Company receives advances from customers prior to satisfying contractual performance obligations, particularly for construction contracts, and are recognized as revenue when the associated performance obligations are satisfied. Contract assets of $76 million and $71 million are included in unbilled revenues on the Consolidated Balance Sheets as of September 30, 2022, and December 31, 2021, respectively. There were $124 million of contract assets added during the nine months ended September 30, 2022, and $119 million of contract assets were transferred to accounts receivable during the same period. There were $60 million of contract assets added during the nine months ended September 30, 2021, and $31 million of contract assets were transferred to accounts receivable during the same period. Contract liabilities of $75 million and $19 million are included in other current liabilities on the Consolidated Balance Sheets as of September 30, 2022, and December 31, 2021, respectively. There were $150 million of contract liabilities added during the nine months ended September 30, 2022, and $94 million of contract liabilities were recognized as revenue during the same period. There were $141 million of contract liabilities added during the nine months ended September 30, 2021, and $137 million of contract liabilities were recognized as revenue during the same period. Remaining Performance Obligations Remaining performance obligations (“RPOs”) represent revenues the Company expects to recognize in the future from contracts that are in progress. The Company enters into agreements for the provision of services to water and wastewater facilities for the U.S. military, municipalities and other customers. As of September 30, 2022, the Company’s operation and maintenance (“O&M”) and capital improvement contracts in Market-Based Businesses and Other have RPOs. Contracts with the U.S. government for work on various military installations expire between 2051 and 2073 and have RPOs of $7.0 billion as of September 30, 2022, as measured by estimated remaining contract revenue. Such contracts are subject to customary termination provisions held by the U.S. government, prior to the agreed-upon contract expiration. Contracts with municipalities and commercial customers expire between 2026 and 2038 and have RPOs of $542 million as of September 30, 2022, as measured by estimated remaining contract revenue. Some of the Company’s long-term contracts to operate and maintain the federal government’s, a municipality’s or other party’s water or wastewater treatment and delivery facilities include responsibility for certain maintenance for some of those facilities, in exchange for an annual fee. Unless specifically required to perform certain maintenance activities, the maintenance costs are recognized when the maintenance is performed.

Acquisitions and Divestitures

Acquisitions and Divestitures	9 Months Ended
Acquisitions and Divestitures	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisitions and Divestitures	Note 5: Acquisitions and Divestitures Regulated Businesses Acquisitions On May 27, 2022, the Company’s Pennsylvania subsidiary acquired the public wastewater collection and treatment system assets from the York City Sewer Authority and the City of York for a purchase price of $235 million, in cash, $20 million of which was funded as a deposit to the seller in April 2021 in connection with the execution of the acquisition agreement. The system assets serve, directly and indirectly through bulk contracts, more than 45,000 customers. The acquisition was accounted for as a business combination and the preliminary purchase price allocation will be finalized once the valuation of assets acquired has been completed, no later than one year after the acquisition date. The preliminary purchase price allocation consisted primarily of $231 million of utility plant and $4 million of goodwill, which is reported in the Company’s Regulated Businesses segment. In addition to the acquisition of the York wastewater system assets noted above, during the nine months ended September 30, 2022, the Company closed on the acquisition of 14 regulated water and wastewater systems for an aggregate purchase price of $73 million. Two of these acquisitions were accounted for as a business combination. Assets acquired from these acquisitions consisted principally of utility plant. The pro forma impact of the Company’s acquisitions was not material to the Consolidated Statements of Operations for the periods ended September 30, 2022 and 2021. Pending Acquisitions On October 11, 2022, the Company’s Pennsylvania subsidiary entered into an agreement to acquire the wastewater assets of the Butler Area Sewer Authority for a total purchase price of $232 million in cash, subject to adjustment as provided for in the Asset Purchase Agreement. This system provides wastewater service for approximately 14,700 customer connections. The Company expects to close this acquisition by the end of 2023, pending regulatory approval. On March 29, 2021, the Company’s New Jersey subsidiary entered into an agreement to acquire the water and wastewater assets of Egg Harbor City for $22 million. The water and wastewater systems currently serve approximately 1,500 customers each, or 3,000 combined, and are being sold through the New Jersey Water Infrastructure Protection Act process. The Company expects to close this acquisition in late 2022 or early 2023. Sale of New York American Water Company, Inc. On January 1, 2022, the Company completed the previously disclosed sale of its regulated utility operations in New York to Liberty Utilities (Eastern Water Holdings) Corp. (“Liberty”), an indirect, wholly owned subsidiary of Algonquin Power & Utilities Corp. Liberty purchased from the Company all of the capital stock of the Company’s New York subsidiary for a purchase price of $608 million in cash. During the first quarter of 2022, the Company recognized a loss on sale of $2 million. Sale of Michigan American Water Company On February 4, 2022, the Company completed the sale of its operations in Michigan for $6 million. Sale of Homeowner Services Group On December 9, 2021, the Company sold all of the equity interests in subsidiaries that comprised the Company’s Homeowner Services Group (“HOS”) to a wholly owned subsidiary of funds advised by Apax Partners LLP, a global private equity advisory firm (the “Buyer”), for total consideration of approximately $1.275 billion, resulting in pre-tax gain on sale of $748 million during the fourth quarter of 2021. The consideration was comprised of $480 million in cash, a seller promissory note issued by the Buyer in the principal amount of $720 million, and a contingent cash payment of $75 million payable upon satisfaction of certain conditions on or before December 31, 2023. See Note 13—Fair Value of Financial Information for additional information relating to the seller promissory note and contingent cash payment. For the nine months ended September 30, 2022, the Company recorded post-closing adjustments, primarily related to working capital, of pre-tax income of $20 million, which is included in Other, net on the Consolidated Statements of Operations. The seller note has a five-year term, is payable in cash, and bears interest at a rate of 7.00% per year during the term. The Company recognized $13 million and $38 million of interest income during the three and nine months ended September 30, 2022, respectively, from the seller note. The Company and the Buyer also entered into revenue share agreements, pursuant to which the Company is to receive 10% of the revenue generated from customers who are billed for home warranty services through an applicable Company subsidiary (an “on-bill” arrangement), and 15% of the revenue generated from any future on-bill arrangements entered into after the closing. Unless earlier terminated, this agreement has a term of up to 15 years, which may be renewed for up to two five-year periods. The Company recognized $2 million and $6 million of income during the three and nine months ended September 30, 2022, respectively, from the revenue share agreements, which is included in Other, net on the Consolidated Statements of Operations.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
Shareholders' Equity	Sep. 30, 2022
Equity [Abstract]
Shareholders' Equity	Note 6: Shareholders’ Equity Accumulated Other Comprehensive Loss Presented in the table below are the changes in accumulated other comprehensive loss by component, net of tax, for the nine months ended September 30, 2022 and 2021, respectively: Defined Benefit Pension Plans Loss on Cash Flow Hedges Accumulated Other Comprehensive Loss Employee Benefit Plan Funded Status Amortization of Prior Service Cost Amortization of Actuarial Loss Balance as of December 31, 2021 $ (107) $ 1 $ 67 $ (6) $ (45) Other comprehensive income before reclassifications — — — 4 4 Amounts reclassified from accumulated other comprehensive loss — — 2 — 2 Net other comprehensive income — — 2 4 6 Balance as of September 30, 2022 $ (107) $ 1 $ 69 $ (2) $ (39) Balance as of December 31, 2020 $ (106) $ 1 $ 63 $ (7) $ (49) Other comprehensive loss before reclassifications — — — 1 1 Amounts reclassified from accumulated other comprehensive loss — — 3 — 3 Net other comprehensive income — — 3 1 4 Balance as of September 30, 2021 $ (106) $ 1 $ 66 $ (6) $ (45) The Company does not reclassify the amortization of defined benefit pension cost components from accumulated other comprehensive loss directly to net income in its entirety, as a portion of these costs have been deferred as a regulatory asset. These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. The amortization of the gain (loss) on cash flow hedges is reclassified to net income during the period incurred and is included in interest, net in the accompanying Consolidated Statements of Operations. Dividends On September 1, 2022, the Company paid a quarterly cash dividend of $0.6550 per share to shareholders of record as of August 9, 2022. On October 27, 2022, the Company’s Board of Directors declared a quarterly cash dividend payment of $0.6550 per share, payable on December 1, 2022, to shareholders of record as of November 8, 2022. Future dividends, when and as declared at the discretion of the Board of Directors, will be dependent upon future earnings and cash flows, compliance with various regulatory, financial and legal requirements, and other factors. See Note 10—Shareholders' Equity in the Notes to Consolidated Financial Statements in the Company’s Form 10-K for additional information regarding the payment of dividends on the Company’s common stock.

Long-Term Debt

Long-Term Debt	9 Months Ended
Long-Term Debt	Sep. 30, 2022
Debt Disclosure [Abstract]
Long-Term Debt	Note 7: Long-Term Debt On May 5, 2022, American Water Capital Corp. (“AWCC”), issued $800 million aggregate principal amount of 4.45% senior notes due 2032. At closing, AWCC received, after deduction of underwriting discounts and before deduction of offering expenses, net proceeds of approximately $792 million. AWCC used the net proceeds of the offering: (i) to lend funds to the Company and its subsidiaries in its Regulated Businesses segment; (ii) to repay AWCC’s commercial paper obligations; and (iii) for general corporate purposes. In April 2022, the Company entered into several 10-year treasury lock agreements, with notional amounts totaling $400 million, and an average fixed interest rate of 2.89%. The Company designated these treasury lock agreements as cash flow hedges, with their fair value recorded in accumulated other comprehensive gain or loss. In May 2022, the Company terminated the treasury lock agreements, realizing a net gain of approximately $4 million, to be amortized through interest, net over a 10-year period, in accordance with the tenor of the debt issuance on May 5, 2022. No ineffectiveness was recognized on hedging instruments for the three and nine months ended September 30, 2022. In addition to the senior notes issued by AWCC as described above, during the nine months ended September 30, 2022, the Company’s regulated subsidiaries issued in the aggregate $22 million of private activity bonds and government funded debt in multiple transactions with annual interest rates ranging from 0.00% to 1.75%, with a weighted average interest rate of 1.05%, maturing in 2027 through 2042. During the nine months ended September 30, 2022, AWCC and the Company’s regulated subsidiaries made sinking fund payments for, or repaid at maturity, $14 million in aggregate principal amount of outstanding long-term debt, with annual interest rates ranging from 0.00% to 12.25%, a weighted average interest rate of 2.18%, and maturity dates ranging from 2022 to 2051.

Short-Term Debt

Short-Term Debt	9 Months Ended
Short-Term Debt	Sep. 30, 2022
Debt Disclosure [Abstract]
Short-Term Debt	Note 8: Short-Term Debt Liquidity needs for capital investment, working capital and other financial commitments are generally funded through cash flows from operations, public and private debt offerings, commercial paper markets and, if and to the extent necessary, borrowings under the AWCC revolving credit facility, and, in the future, issuances of equity. Additionally, proceeds from the aforementioned sales of HOS and the Company’s New York subsidiary will be used primarily for capital investment in the Regulated Businesses. The Company maintains an unsecured revolving credit facility with a diversified group of financial institutions. AWCC’s revolving credit facility is used principally to support its commercial paper program, to provide additional liquidity support, and to provide a sublimit for the issuance of up to $150 million in letters of credit. On October 26, 2022, AWCC and certain lenders amended and restated the credit agreement with respect to the revolving credit facility to, among other things, increase the maximum commitments under the facility to $2.75 billion from $2.25 billion and to extend the expiration date of the facility to October 2027 from March 2025. Subject to satisfying certain conditions, the credit agreement also permits AWCC to increase the maximum commitment under the facility by up to an aggregate of $500 million and to request extensions of its expiration date for up to two one-year periods. Also, effective October 26, 2022, the maximum aggregate principal amount of short-term borrowings authorized for issuance under AWCC’s commercial paper program was increased to $2.60 billion from $2.10 billion. Short-term debt consists of commercial paper borrowings totaling $634 million and $584 million as of September 30, 2022, and December 31, 2021, respectively. The weighted-average interest rate on AWCC’s outstanding short-term borrowings was approximately 3.22% and 0.20% at September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022, and December 31, 2021, there were no borrowings outstanding under the revolving credit facility, and there were no commercial paper borrowings outstanding with maturities greater than three months. Presented in the tables below is the aggregate credit facility commitments, commercial paper limit and letter of credit availability under the revolving credit facility, as well as the available capacity for each: As of September 30, 2022 Commercial Paper Limit Letters of Credit Total (a) (In millions) Total availability $ 2,100 $ 150 $ 2,250 Outstanding debt (634) (75) (709) Remaining availability as of September 30, 2022 $ 1,466 $ 75 $ 1,541 (a) Total remaining availability of $1.54 billion as of September 30, 2022, may be accessed through revolver draws. As of December 31, 2021 Commercial Paper Limit Letters of Credit Total (a) (In millions) Total availability $ 2,100 $ 150 $ 2,250 Outstanding debt (584) (76) (660) Remaining availability as of December 31, 2021 $ 1,516 $ 74 $ 1,590 (a) Total remaining availability of $1.59 billion as of December 31, 2021, may be accessed through revolver draws. Presented in the table below is the Company’s total available liquidity as of September 30, 2022 and December 31, 2021, respectively: Cash and Cash Equivalents Availability on Revolving Credit Facility Total Available Liquidity (In millions) Available liquidity as of September 30, 2022 $ 77 $ 1,541 $ 1,618 Available liquidity as of December 31, 2021 $ 116 $ 1,590 $ 1,706

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 9: Income Taxes The Company’s effective income tax rate was 19.1% and 18.2% for the three months ended September 30, 2022 and 2021, respectively, and 18.9% and 17.2% for the nine months ended September 30, 2022 and 2021, respectively. The increase in the Company’s effective income tax rate for the three and nine months ended September 30, 2022, was primarily due to a decrease in the amortization of EADIT pursuant to regulatory orders. Other Tax Matters On July 8, 2022, Pennsylvania Governor Tom Wolf signed into law Act 53 of 2022, which reduces the Pennsylvania state corporate income tax rate in yearly increments starting January 1, 2023, with a new rate of 8.99% and ending effective January 1, 2031, with a rate of 4.99%. Under Accounting Standards Codification Topic 740, Income Taxes (“ASC 740”), the tax effects of changes in tax laws must be recognized in the period in which the law is enacted. ASC 740 also requires deferred tax assets and liabilities to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. As such, the Company’s accumulated deferred income tax (“ADIT”) balances for their Pennsylvania subsidiary were remeasured during the quarter ended September 30, 2022, to estimate the impacts of the recently enacted tax rate. The remeasurement reduces the ADIT liability by $132 million and creates a corresponding regulatory liability since the EADIT is expected to be returned to customers in a future rate case. However, since the rate is declining in yearly increments, the total EADIT will be subject to change. The rate change impacts to the non-regulated companies have been deemed immaterial.

Pension and Other Postretiremen

Pension and Other Postretirement Benefits	9 Months Ended
Pension and Other Postretirement Benefits	Sep. 30, 2022
Retirement Benefits [Abstract]
Pension and Other Postretirement Benefits	Note 10: Pension and Other Postretirement Benefits Presented in the table below are the components of net periodic benefit credit: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Components of net periodic pension benefit credit: Service cost $ 8 $ 9 $ 23 $ 27 Interest cost 16 16 48 49 Expected return on plan assets (31) (31) (92) (95) Amortization of prior service credit (1) (1) (3) (2) Amortization of actuarial loss 5 7 15 20 Net periodic pension benefit credit $ (3) $ — $ (9) $ (1) Components of net periodic other postretirement benefit credit: Service cost $ 1 $ 1 $ 3 $ 3 Interest cost 3 2 8 6 Expected return on plan assets (5) (5) (15) (15) Amortization of prior service credit (8) (8) (24) (24) Net periodic other postretirement benefit credit $ (9) $ (10) $ (28) $ (30) The Company contributed $9 million and $27 million for the funding of its defined benefit pension plans for the three and nine months ended September 30, 2022, respectively, and contributed $10 million and $28 million for the funding of its defined benefit pension plans for the three and nine months ended September 30, 2021, respectively. There were no material contributions and $13 million of contributions for the funding of the Company’s other postretirement benefit plans for the three and nine months ended September 30, 2022, respectively, and $3 million of contributions for each of the three and nine months ended September 30, 2021. The Company expects to make pension contributions to the plan trusts of $9 million during the remainder of 2022.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11: Commitments and Contingencies Contingencies The Company is routinely involved in legal actions incident to the normal conduct of its business. As of September 30, 2022, the Company has accrued approximatel y $4 million of probable loss contingencies and has estimated that the maximum amount of losses associated with reasonably possible loss contingencies that can be reasonably estimated is $3 million. For certain matters, claims and actions, the Company is unable to estimate possible losses. The Company believes that damages or settlements, if any, recovered by plaintiffs in such matters, claims or actions, other than as described in this Note 11—Commitments and Contingencies, will not have a material adverse effect on the Company. West Virginia Elk River Freedom Industries Chemical Spill On June 8, 2018, the U.S. District Court for the Southern District of West Virginia granted final approval of a settlement class and global class action settlement (the “Settlement”) for all claims and potential claims by all class members (collectively, the “West Virginia Plaintiffs”) arising out of the January 2014 Freedom Industries, Inc. chemical spill in West Virginia. The effective date of the Settlement was July 16, 2018. Under the terms and conditions of the Settlement, WVAWC and certain other Company-affiliated entities did not admit, and will not admit, any fault or liability for any of the allegations made by the West Virginia Plaintiffs in any of the actions that were resolved. The aggregate pre-tax amount contributed by WVAWC of the $126 million portion of the Settlement with respect to the Company, net of insurance recoveries, is $19 million. As of September 30, 2022, $0.5 million of the aggregate Settlement amount of $126 million has been reflected in accrued liabilities, and $0.5 million in offsetting insurance receivables have been reflected in other current assets on the Consolidated Balance Sheets. The amount reflected in accrued liabilities as of September 30, 2022 reflects reductions in the liability and appropriate reductions to the offsetting insurance receivable reflected in other current assets, associated with payments made to the Settlement fund, the receipt of a determination by the Settlement fund’s appeal adjudicator on all remaining medical claims and the calculation of remaining attorneys’ fees and claims administration costs. The Company funded WVAWC’s contributions to the Settlement through existing sources of liquidity. Dunbar, West Virginia Water Main Break Class Action Litigation On the evening of June 23, 2015, a 36-inch pre-stressed concrete transmission water main, installed in the early 1970s, failed. The water main is part of the West Relay pumping station located in the City of Dunbar, West Virginia and owned by WVAWC. The failure of the main caused water outages and low pressure for up to approximately 25,000 WVAWC customers. In the early morning hours of June 25, 2015, crews completed a repair, but that same day, the repair developed a leak. On June 26, 2015, a second repair was completed and service was restored that day to approximately 80% of the impacted customers, and to the remaining approximately 20% by the next morning. The second repair showed signs of leaking, but the water main was usable until June 29, 2015, to allow tanks to refill. The system was reconfigured to maintain service to all but approximately 3,000 customers while a final repair was being completed safely on June 30, 2015. Water service was fully restored by July 1, 2015 to all customers affected by this event. On June 2, 2017, a complaint captioned Jeffries, et al. v. West Virginia-American Water Company was filed in West Virginia Circuit Court in Kanawha County on behalf of an alleged class of residents and business owners who lost water service or pressure as a result of the Dunbar main break. The complaint alleges breach of contract by WVAWC for failure to supply water, violation of West Virginia law regarding the sufficiency of WVAWC’s facilities and negligence by WVAWC in the design, maintenance and operation of the water system. The Jeffries plaintiffs seek unspecified alleged damages on behalf of the class for lost profits, annoyance and inconvenience, and loss of use, as well as punitive damages for willful, reckless and wanton behavior in not addressing the risk of pipe failure and a large outage. In February 2020, the Jeffries plaintiffs filed a motion seeking class certification on the issues of breach of contract and negligence, and to determine the applicability of punitive damages and a multiplier for those damages if imposed. In July 2020, the Circuit Court entered an order granting the Jeffries plaintiffs’ motion for certification of a class regarding certain liability issues but denying certification of a class to determine a punitive damages multiplier. In August 2020, WVAWC filed a Petition for Writ of Prohibition in the Supreme Court of Appeals of West Virginia seeking to vacate or remand the Circuit Court’s order certifying the issues class. On January 28, 2021, the Supreme Court of Appeals remanded the case back to the Circuit Court for further consideration in light of a decision issued in another case relating to the class certification issues raised on appeal. On July 5, 2022, the Circuit Court entered an order again certifying a class to address at trial certain liability issues but not to consider damages. On August 26, 2022, WVAWC filed another Petition for Writ of Prohibition in the Supreme Court of Appeals challenging this latest class certification order. The Writ Petition has been supported by an amicus brief filed by certain water and utility industry trade groups. The Supreme Court of Appeals will decide whether to accept the Writ Petition by issuing a Rule to Show Cause. The Company and WVAWC believe that WVAWC has valid, meritorious defenses to the claims raised in this class action complaint. WVAWC is vigorously defending itself against these allegations. The Company cannot currently determine the likelihood of a loss, if any, or estimate the amount of any loss or a range of such losses related to this proceeding. Chattanooga, Tennessee Water Main Break Class Action Litigation On September 12, 2019, the Company’s Tennessee subsidiary (“TAWC”), experienced a leak in a 36-inch water transmission main, which caused service fluctuations or interruptions to TAWC customers and the issuance of a boil water notice. TAWC repaired the main by early morning on September 14, 2019, and restored full water service by the afternoon of September 15, 2019, with the boil water notice lifted for all customers on September 16, 2019. On September 17, 2019, a complaint captioned Bruce, et al. v. American Water Works Company, Inc., et al. was filed in the Circuit Court of Hamilton County, Tennessee against TAWC, the Company and American Water Works Service Company, Inc. (“Service Company” and, together with TAWC and the Company, collectively, the “Tennessee-American Water Defendants”), on behalf of a proposed class of individuals or entities who lost water service or suffered monetary losses as a result of the Chattanooga incident (the “Tennessee Plaintiffs”). The complaint alleged breach of contract and negligence against the Tennessee-American Water Defendants, as well as an equitable remedy of piercing the corporate veil. In the complaint as originally filed, the Tennessee Plaintiffs were seeking an award of unspecified alleged damages for wage losses, business and economic losses, out-of-pocket expenses, loss of use and enjoyment of property and annoyance and inconvenience, as well as punitive damages, attorneys’ fees and pre- and post-judgment interest. In September 2020, the court dismissed all of the Tennessee Plaintiffs’ claims in their complaint, except for the breach of contract claims against TAWC, which remain pending. In October 2020, TAWC answered the complaint, and the parties have been engaging in discovery. A hearing that had been originally scheduled for October 2022 to address the question of class certification has been postponed to January 2023. TAWC and the Company believe that TAWC has meritorious defenses to the claims raised in this class action complaint, and TAWC is vigorously defending itself against these allegations. The Company cannot currently determine the likelihood of a loss, if any, or estimate the amount of any loss or a range of such losses related to this proceeding. Alternative Water Supply in Lieu of Carmel River Diversions Compliance with Orders to Reduce Carmel River Diversions—Monterey Peninsula Water Supply Project Under a 2009 order (the “2009 Order”) of the State Water Resources Control Board (the “SWRCB”), the Company’s California subsidiary (“Cal Am”) is required to decrease significantly its yearly diversions of water from the Carmel River according to a set reduction schedule. In 2016, the SWRCB issued an order (the “2016 Order”) approving a deadline of December 31, 2021 for Cal Am’s compliance with these prior orders. Cal Am is currently involved in developing the Monterey Peninsula Water Supply Project (the “Water Supply Project”), which includes the construction of a desalination plant, to be owned by Cal Am, and the construction of wells that would supply water to the desalination plant. In addition, the Water Supply Project also includes Cal Am’s purchase of water from a groundwater replenishment project (the “GWR Project”) between Monterey One Water and the Monterey Peninsula Water Management District (the “MPWMD”). The Water Supply Project is intended, among other things, to fulfill Cal Am’s obligations under the 2009 Order and the 2016 Order. Cal Am’s ability to move forward on the Water Supply Project is subject to administrative review by the CPUC and other government agencies, obtaining necessary permits, and intervention from other parties. In September 2016, the CPUC unanimously approved a final decision to authorize Cal Am to enter into a water purchase agreement for the GWR Project and to construct a pipeline and pump station facilities and recover up to $50 million in associated incurred costs plus an allowance for funds used during construction (“AFUDC”), subject to meeting certain criteria. In September 2018, the CPUC unanimously approved another final decision finding that the Water Supply Project meets the CPUC’s requirements for a certificate of public convenience and necessity and an additional procedural phase was not necessary to consider alternative projects. The CPUC’s 2018 decision concludes that the Water Supply Project is the best project to address estimated future water demands in Monterey, and, in addition to the cost recovery approved in its 2016 decision, adopts Cal Am’s cost estimates for the Water Supply Project, which amounted to an aggregate of $279 million plus AFUDC at a rate representative of Cal Am’s actual weighted average cost of capital. The 2018 final decision specifies the procedures for recovery of all of Cal Am’s prudently incurred costs associated with the Water Supply Project upon its completion, subject to the frameworks included in the final decision related to cost caps, operation and maintenance costs, financing, ratemaking and contingency matters. The reasonableness of the Water Supply Project costs will be reviewed by the CPUC when Cal Am seeks cost recovery for the Water Supply Project. Cal Am has incurred $206 million in aggregate costs as of September 30, 2022 related to the Water Supply Project, which includes $55 million in AFUDC. In September 2021, Cal Am, Monterey One Water and the MPWMD reached an agreement on Cal Am’s purchase of additional water from an expansion to the GWR Project, which is not expected to produce additional water until 2024 at the earliest. The amended and restated water purchase agreement for the GWR Project expansion is subject to review and approval of the CPUC, and on November 29, 2021, Cal Am filed an application with the CPUC seeking review and approval of the amended and restated water purchase agreement. Cal Am is also requesting rate base treatment of the additional capital investment for certain Cal Am facilities required to maximize the water supply from the expansion to the GWR Project and a related Aquifer Storage and Recovery Project, totaling approximately $81 million. This amount is in addition to, and consistent in regulatory treatment with, the prior $50 million of cost recovery for facilities associated with the original water purchase agreement, which was approved by the CPUC in its 2016 final decision . In September 2022, the parties completed testimony related to this CPUC proceeding, and the parties are now meeting and conferring to set hearing dates during the fourth quarter of 2022. On September 30, 2022, a CPUC-assigned ALJ issued a proposed decision that would, if adopted by the CPUC, authorize Cal Am to enter into the amended water purchase agreement, and specifically to increase pumping capacity and reliability of groundwater extraction from the Seaside Groundwater Basin. The proposed decision sets the cost cap for the proposed facilities at approximately $45 million, and the remaining $36 million of costs initially requested have been deferred to a subsequent filing. Under the proposed decision, Cal Am may seek recovery of amounts above the cost cap in a subsequent rate filing or general rate case. Additionally, the proposed decision recommended AFUDC be authorized at Cal Am’s actual weighted average cost of debt. On October 20, 2022, the parties filed their comments to the proposed decision. Cal Am currently expects a CPUC ruling to be issued by the end of 2022. After that, this matter will remain open as part of a Phase 2 proceeding to update supply and demand amounts for the Water Supply Project and to address certain of the deferred capital requests. While Cal Am believes that its expenditures to date have been prudent and necessary to comply with the 2009 Order and the 2016 Order, as well as the CPUC’s 2016 and 2018 final decisions, Cal Am cannot currently predict its ability to recover all of its costs and expenses associated with the Water Supply Project and there can be no assurance that Cal Am will be able to recover all of such costs and expenses in excess of the $50 million in construction costs previously approved by the CPUC in its 2016 final decision. Coastal Development Permit Application In June 2018, Cal Am submitted a coastal development permit application to the City of Marina (the “City”) for those project components of the Water Supply Project located within the City’s coastal zone. Members of the City’s Planning Commission, as well as City councilpersons, have publicly expressed opposition to the Water Supply Project. In May 2019, the City issued a notice of final local action based upon the denial by the Planning Commission of Cal Am’s coastal development permit application. Thereafter, Cal Am appealed this decision to the California Coastal Commission (the “Coastal Commission”), as permitted under the City’s code and the California Coastal Act. At the same time, Cal Am submitted an application to the Coastal Commission for a coastal development permit for those project components located within the Coastal Commission’s original jurisdiction. In October 2019, staff of the Coastal Commission issued a report recommending a denial of Cal Am’s application for a coastal development permit with respect to the Water Supply Project, largely based on a memorandum prepared by the general manager of the MPWMD that contradicted findings made by the CPUC in its final decision approving the Water Supply Project. In November 2019, discussions between staffs of the Coastal Commission and the CPUC took place regarding the Coastal Commission staff recommendation, at which time the CPUC raised questions about the Coastal Commission staff’s findings on water supply and demand, groundwater impacts and the viability of a project that the Coastal Commission staff believes may be a possible alternative to the Water Supply Project. In August 2020, the staff of the Coastal Commission released a report again recommending denial of Cal Am’s application for a coastal development permit. Although the report concluded that the Water Supply Project would have a negligible impact on groundwater resources, the report also concluded it would impact other coastal resources, such as environmentally sensitive habitat areas and wetlands, and that the Coastal Commission staff believes that a feasible alternative project exists that would avoid those impacts. The staff’s report also noted disproportionate impacts to communities of concern. In September 2020, Cal Am withdrew its original jurisdiction application to allow additional time to address the Coastal Commission staff’s environmental justice concerns. The withdrawal of the original jurisdiction application did not impact Cal Am’s appeal of the City’s denial, which remains pending before the Coastal Commission. Cal Am refiled the original jurisdiction application in November 2020. In December 2020, the Coastal Commission sent to Cal Am a notice of incomplete application, identifying certain additional information needed to consider the application complete. In March 2021, Cal Am provided responses to the Coastal Commission’s notice of incomplete application. In June 2021, the Coastal Commission responded, acknowledging the responses and requesting certain additional information before the application could be considered complete. Cal Am responded with the requested additional information on January 11, 2022, and on February 8, 2022, the Coastal Commission requested additional information, and Cal Am responded with additional information. On September 1, 2022, the Coastal Commission deemed Cal Am’s application complete. A hearing on the application is expected in November 2022. Cal Am continues to work constructively with all appropriate agencies to provide necessary information in connection with obtaining required approvals for the Water Supply Project. However, there can be no assurance that the Water Supply Project in its current configuration will be completed on a timely basis, if ever. Beginning in January 2022, Cal Am expects to be able to comply with the diversion reduction requirements contained in the 2016 Order, but continued compliance with the diversion reduction requirements for 2023 and future years will depend on successful development of alternate water supply sources, sufficient to meet customer demand. The 2009 Order and the 2016 Order remain in effect until Cal Am certifies to the SWRCB, and the SWRCB concurs, that Cal Am has obtained a permanent supply of water to substitute for past unauthorized Carmel River diversions. While the Company cannot currently predict the likelihood or result of any adverse outcome associated with these matters, further attempts to comply with the 2009 Order and the 2016 Order may result in material additional costs and obligations to Cal Am, including fines and penalties against Cal Am in the event of noncompliance with the 2009 Order and the 2016 Order.

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
Earnings Per Common Share	Sep. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Common Share	Note 12: Earnings per Common Share Presented in the table below is a reconciliation of the numerator and denominator for the basic and diluted EPS calculations: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income attributable to common shareholders $ 297 $ 278 $ 673 $ 618 Denominator: Weighted-average common shares outstanding—Basic 182 182 182 182 Effect of dilutive common stock equivalents — — — — Weighted-average common shares outstanding—Diluted 182 182 182 182

Fair Value of Financial Informa

Fair Value of Financial Information	9 Months Ended
Fair Value of Financial Information	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value of Financial Information	Note 13: Fair Value of Financial Information Fair Value of Financial Instruments The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Current assets and current liabilities—The carrying amounts reported on the Consolidated Balance Sheets for current assets and current liabilities, including revolving credit debt, due to the short-term maturities and variable interest rates, approximate their fair values. Seller promissory note from the sale of HOS — The carrying amount reported on the Consolidated Balance Sheets for the seller promissory note from the sale of HOS is $720 million as of September 30, 2022 and December 31, 2021. This amount represents the principal amount owed under the seller note, for which the Company expects to receive full payment. The accounting fair value measurement of the seller note approximated $681 million and $720 million as of September 30, 2022 and December 31, 2021, respectively. The accounting fair value measurement is an estimate that is reflective of changes in benchmark interest rates. The seller note is classified as Level 3 within the fair value hierarchy. Preferred stock with mandatory redemption requirements and long-term debt—The fair values of preferred stock with mandatory redemption requirements and long-term debt are categorized within the fair value hierarchy based on the inputs that are used to value each instrument. The fair value of long-term debt classified as Level 1 is calculated using quoted prices in active markets. Level 2 instruments are valued using observable inputs and Level 3 instruments are valued using observable and unobservable inputs. Presented in the tables below are the carrying amounts, including fair value adjustments previously recognized in acquisition purchase accounting, and the fair values of the Company’s financial instruments: As of September 30, 2022 Carrying Amount At Fair Value Level 1 Level 2 Level 3 Total Preferred stock with mandatory redemption requirements $ 3 $ — $ — $ 3 $ 3 Long-term debt (excluding finance lease obligations) 11,205 8,378 47 1,397 9,822 As of December 31, 2021 Carrying Amount At Fair Value Level 1 Level 2 Level 3 Total Preferred stock with mandatory redemption requirements $ 4 $ — $ — $ 6 $ 6 Long-term debt (excluding finance lease obligations) 10,396 10,121 60 1,637 11,818 Recurring Fair Value Measurements Presented in the tables below are assets and liabilities measured and recorded at fair value on a recurring basis and their level within the fair value hierarchy: As of September 30, 2022 Level 1 Level 2 Level 3 Total Assets: Restricted funds $ 28 $ — $ — $ 28 Rabbi trust investments 20 — — 20 Deposits 7 — — 7 Other investments 23 — — 23 Contingent cash payment from the sale of HOS — — 72 72 Total assets 78 — 72 150 Liabilities: Deferred compensation obligations 23 — — 23 Total liabilities 23 — — 23 Total assets $ 55 $ — $ 72 $ 127 As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Restricted funds $ 21 $ — $ — $ 21 Rabbi trust investments 23 — — 23 Deposits 27 — — 27 Other investments 17 — — 17 Contingent cash payment from the sale of HOS — — 72 72 Total assets 88 — 72 160 Liabilities: Deferred compensation obligations 27 — — 27 Total liabilities 27 — — 27 Total assets $ 61 $ — $ 72 $ 133 Restricted funds—The Company’s restricted funds primarily represent proceeds received from financings for the construction and capital improvement of facilities and from customers for future services under operation, maintenance and repair projects. Rabbi trust investments—The Company’s rabbi trust investments consist of equity and index funds from which supplemental executive retirement plan benefits and deferred compensation obligations can be paid. The Company includes these assets in other long-term assets on the Consolidated Balance Sheets. Deposits—Deposits include escrow funds and certain other deposits held in trust. The Company includes cash deposits in other current assets on the Consolidated Balance Sheets. Deferred compensation obligations—The Company’s deferred compensation plans allow participants to defer certain cash compensation into notional investment accounts. The Company includes such plans in other long-term liabilities on the Consolidated Balance Sheets. The value of the Company’s deferred compensation obligations is based on the market value of the participants’ notional investment accounts. The notional investments are comprised primarily of mutual funds, which are based on observable market prices. Mark-to-market derivative assets and liabilities—The Company employs derivative financial instruments in the form of variable-to-fixed interest rate swaps and treasury lock agreements, classified as economic hedges and cash flow hedges, respectively, in order to fix the interest cost on existing or forecasted debt. The Company may use fixed-to-floating interest rate swaps, typically designated as fair-value hedges, to achieve a targeted level of variable-rate debt as a percentage of total debt. The Company uses a calculation of future cash inflows and estimated future outflows, which are discounted, to determine the current fair value. Additional inputs to the present value calculation include the contract terms, counterparty credit risk, interest rates and market volatility. The Company had no mark-to-market derivatives outstanding as of September 30, 2022. Other investments—Other investments primarily represent money market funds used for active employee benefits. The Company includes other investments in other current assets on the Consolidated Balance Sheets. Contingent cash payment from the sale of HOS—The Company’s contingent cash payment derivative included as part of the consideration from the sale of HOS is included in other long-term assets on the Consolidated Balance Sheets. The fair value of the contingent cash payment is $72 million, which is reflective of changes in the benchmark interest rate and estimated using the probability of the outcome of receipt of the $75 million, a Level 3 input.

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2022
Leases [Abstract]
Leases	Note 14: Leases The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. Certain operating leases have renewal options r anging f rom one The Company participates in a number of arrangements with various public entities (“Partners”) in West Virginia. Under these arrangements, the Company transferred a portion of its utility plant to the Partners in exchange for an equal principal amount of Industrial Development Bonds (“IDBs”) issued by the Partners under the Industrial Development and Commercial Development Bond Act. The Company leased back the utility plant under agreements for a period of 30 to 40 years. The Company has recorded these agreements as finance leases in property, plant and equipment, as ownership of the assets will revert back to the Company at the end of the lease term. The carrying value of the finance lease assets was $146 million as of September 30, 2022 and December 31, 2021. The Company determined that the finance lease obligations and the investments in IDBs meet the conditions for offsetting, and as such, are reported net on the Consolidated Balance Sheets and excluded from the finance lease disclosure presented below. The Company also enters into O&M agreements with the Partners. The Company pays an annual fee for use of the Partners’ assets in performing under the O&M agreements. The O&M agreements are recorded as operating leases, and future annual use fees of $1 million in 2022, $4 million in 2023 through 2026, and $48 million thereafter, are included in operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets. Rental expenses under operating and finance leases were $3 million for each of the three months ended September 30, 2022 and September 30, 2021, and $9 million and $10 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. For the three and nine months ended September 30, 2022, cash paid for amounts in lease liabilities, which includes operating and financing cash flows from operating and finance leases, were $3 million and $9 million, respectively. For the nine months ended September 30, 2022, there were ROU assets obtained in exchange for new operating lease liabilities of $4 million. As of September 30, 2022, the weighted-average remaining lease term of the finance lease and operating leases were four years and 17 years, respectively, and the weighted-average discount rate of the finance lease and operating leases were 12% and 4%, respectively. The future maturities of lease liabilities as of September 30, 2022 were $3 million in 2022, $10 million in 2023, $9 million in 2024, $9 million in 2025, $8 million in 2026, and $88 million thereafter. As of September 30, 2022, imputed interest was $42 million.
Leases	Note 14: Leases The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. Certain operating leases have renewal options r anging f rom one The Company participates in a number of arrangements with various public entities (“Partners”) in West Virginia. Under these arrangements, the Company transferred a portion of its utility plant to the Partners in exchange for an equal principal amount of Industrial Development Bonds (“IDBs”) issued by the Partners under the Industrial Development and Commercial Development Bond Act. The Company leased back the utility plant under agreements for a period of 30 to 40 years. The Company has recorded these agreements as finance leases in property, plant and equipment, as ownership of the assets will revert back to the Company at the end of the lease term. The carrying value of the finance lease assets was $146 million as of September 30, 2022 and December 31, 2021. The Company determined that the finance lease obligations and the investments in IDBs meet the conditions for offsetting, and as such, are reported net on the Consolidated Balance Sheets and excluded from the finance lease disclosure presented below. The Company also enters into O&M agreements with the Partners. The Company pays an annual fee for use of the Partners’ assets in performing under the O&M agreements. The O&M agreements are recorded as operating leases, and future annual use fees of $1 million in 2022, $4 million in 2023 through 2026, and $48 million thereafter, are included in operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets. Rental expenses under operating and finance leases were $3 million for each of the three months ended September 30, 2022 and September 30, 2021, and $9 million and $10 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. For the three and nine months ended September 30, 2022, cash paid for amounts in lease liabilities, which includes operating and financing cash flows from operating and finance leases, were $3 million and $9 million, respectively. For the nine months ended September 30, 2022, there were ROU assets obtained in exchange for new operating lease liabilities of $4 million. As of September 30, 2022, the weighted-average remaining lease term of the finance lease and operating leases were four years and 17 years, respectively, and the weighted-average discount rate of the finance lease and operating leases were 12% and 4%, respectively. The future maturities of lease liabilities as of September 30, 2022 were $3 million in 2022, $10 million in 2023, $9 million in 2024, $9 million in 2025, $8 million in 2026, and $88 million thereafter. As of September 30, 2022, imputed interest was $42 million.

Segment Information

Segment Information	9 Months Ended
Segment Information	Sep. 30, 2022
Segment Reporting [Abstract]
Segment Information	Note 15: Segment Information The Company’s operating segments are comprised of the revenue-generating components of its businesses for which separate financial information is internally produced and regularly used by management to make operating decisions, assess performance and allocate resources. The Company operates its businesses primarily through one reportable segment, the Regulated Businesses segment. “Market-Based Businesses and Other” includes market-based businesses that, individually, do not meet the criteria of a reportable segment in accordance with GAAP, corporate costs that are not allocated to the Company’s operating segments, eliminations of inter-segment transactions and fair value adjustments and associated income and deductions related to acquisitions that have not been allocated to the operating segments for evaluation of performance and allocation of resource purposes. The adjustments related to the acquisitions are reported in Market-Based Businesses and Other as they are excluded from segment performance measures evaluated by management. As a result of the sale of HOS, the categories which were previously shown as “Market-Based Businesses” and “Other” have been combined and shown as “Market-Based Businesses and Other.” Segment results for the three and nine months ended September 30, 2021, have been adjusted retrospectively to reflect this change. Presented in the tables below is summarized segment information: As of or for the Three Months Ended September 30, 2022 Regulated Businesses Market-Based Businesses and Other Consolidated Operating revenues $ 1,003 $ 79 $ 1,082 Depreciation and amortization 161 3 164 Total operating expenses, net 574 69 643 Interest expense (81) (30) (111) Interest income 1 13 14 Income before income taxes 373 (6) 367 Provision for income taxes 71 (1) 70 Net income (loss) attributable to common shareholders 302 (5) 297 Total assets 24,366 2,760 27,126 Cash paid for capital expenditures 598 4 602 As of or for the Three Months Ended September 30, 2021 Regulated Businesses Market-Based Businesses and Other Consolidated Operating revenues $ 944 $ 148 $ 1,092 Depreciation and amortization 151 10 161 Total operating expenses, net 563 112 675 Interest expense (73) (28) (101) Interest income — — — Income (loss) before income taxes 332 8 340 Provision for income taxes 60 2 62 Net income (loss) attributable to common shareholders 273 5 278 Total assets 22,818 2,515 25,333 Cash paid for capital expenditures 447 6 453 As of or for the Nine Months Ended September 30, 2022 Regulated Businesses Market-Based Businesses and Other Consolidated Operating revenues $ 2,646 $ 215 $ 2,861 Depreciation and amortization 473 12 485 Total operating expenses, net 1,658 191 1,849 Interest expense (227) (90) (317) Interest income 1 38 39 Income before income taxes 835 (5) 830 Provision for income taxes 154 3 157 Net income (loss) attributable to common shareholders 681 (8) 673 Total assets 24,366 2,760 27,126 Cash paid for capital expenditures 1,588 9 1,597 As of or for the Nine Months Ended September 30, 2021 Regulated Businesses Market-Based Businesses and Other Consolidated Operating revenues $ 2,556 $ 423 $ 2,979 Depreciation and amortization 449 27 476 Total operating expenses, net 1,658 345 2,003 Interest expense (216) (84) (300) Interest income — — — Income (loss) before income taxes 752 (6) 746 Provision (benefit) for income taxes 130 (2) 128 Net income (loss) attributable to common shareholders 623 (5) 618 Total assets 22,818 2,515 25,333 Cash paid for capital expenditures 1,191 14 1,205

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Standards	New Accounting Standards Presented in the table below are new accounting standards that were adopted by the Company in 2022: Standard Description Date of Adoption Application Effect on the Consolidated Financial Statements Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Simplification of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. This will result in fewer embedded conversion features being separately recognized from the host contract. Earnings per share (“EPS”) calculations have been simplified for certain instruments. January 1, 2022 Either modified retrospective or fully retrospective The standard did not have a material impact on its Consolidated Financial Statements. Disclosures by Business Entities about Government Assistance The amendments in this update require additional disclosures regarding government grants and contributions. These disclosures require information on the following three items about government transactions to be provided: information on the nature of transactions and related accounting policy used to account for transactions, the line items on the balance sheet and income statement affected by these transactions including amounts applicable to each line, and significant terms and conditions of the transactions, including commitments and contingencies. January 1, 2022 Either prospective or retrospective The standard did not have a material impact on its Consolidated Financial Statements. Presented in the table below are recently issued accounting standards that have not yet been adopted by the Company as of September 30, 2022: Standard Description Date of Adoption Application Estimated Effect on the Consolidated Financial Statements Accounting for Contract Assets and Contract Liabilities from Contracts with Customers The guidance requires an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification Topic 606, as if it had originated the contracts. The amendments in this update also provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. January 1, 2023; early adoption permitted Prospective The Company is evaluating any impact on its Consolidated Financial Statements, as well as the timing of adoption. Troubled Debt Restructurings and Vintage Disclosures The main provisions of this standard eliminate the receivables accounting guidance for troubled debt restructurings (“TDRs”) by creditors while enhancing disclosure requirements when a borrower is experiencing financial difficulty. Entities must apply the loan refinancing and restructuring guidance for receivables to determine whether a modification results in a new loan or a continuation of an existing loan. Additionally, the amendments in this update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases. January 1, 2023; early adoption permitted Prospective, with a modified retrospective option for amendments related to the recognition and measurement of TDRs. The Company is evaluating any impact on its Consolidated Financial Statements, as well as the timing of adoption.
Allowance for Uncollectible Accounts	Allowance for Uncollectible Accounts Allowances for uncollectible accounts are maintained for estimated probable losses resulting from the Company’s inability to collect receivables from customers. Accounts that are outstanding longer than the payment terms are considered past due. A number of factors are considered in determining the allowance for uncollectible accounts, including the length of time receivables are past due, previous loss history, current economic and societal conditions and reasonable and supportable forecasts that affect the collectability of receivables from customers. The Company generally writes off accounts when they become uncollectible or are over a certain number of days outstanding.
Reclassifications	Reclassifications Certain reclassifications have been made to prior periods in the Consolidated Financial Statements and Notes to conform to the current presentation.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
Significant Accounting Policies (Tables)	Sep. 30, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Schedule of new accounting pronouncements and changes in accounting principles	Presented in the table below are new accounting standards that were adopted by the Company in 2022: Standard Description Date of Adoption Application Effect on the Consolidated Financial Statements Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Simplification of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. This will result in fewer embedded conversion features being separately recognized from the host contract. Earnings per share (“EPS”) calculations have been simplified for certain instruments. January 1, 2022 Either modified retrospective or fully retrospective The standard did not have a material impact on its Consolidated Financial Statements. Disclosures by Business Entities about Government Assistance The amendments in this update require additional disclosures regarding government grants and contributions. These disclosures require information on the following three items about government transactions to be provided: information on the nature of transactions and related accounting policy used to account for transactions, the line items on the balance sheet and income statement affected by these transactions including amounts applicable to each line, and significant terms and conditions of the transactions, including commitments and contingencies. January 1, 2022 Either prospective or retrospective The standard did not have a material impact on its Consolidated Financial Statements. Presented in the table below are recently issued accounting standards that have not yet been adopted by the Company as of September 30, 2022: Standard Description Date of Adoption Application Estimated Effect on the Consolidated Financial Statements Accounting for Contract Assets and Contract Liabilities from Contracts with Customers The guidance requires an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification Topic 606, as if it had originated the contracts. The amendments in this update also provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. January 1, 2023; early adoption permitted Prospective The Company is evaluating any impact on its Consolidated Financial Statements, as well as the timing of adoption. Troubled Debt Restructurings and Vintage Disclosures The main provisions of this standard eliminate the receivables accounting guidance for troubled debt restructurings (“TDRs”) by creditors while enhancing disclosure requirements when a borrower is experiencing financial difficulty. Entities must apply the loan refinancing and restructuring guidance for receivables to determine whether a modification results in a new loan or a continuation of an existing loan. Additionally, the amendments in this update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases. January 1, 2023; early adoption permitted Prospective, with a modified retrospective option for amendments related to the recognition and measurement of TDRs. The Company is evaluating any impact on its Consolidated Financial Statements, as well as the timing of adoption.
Summary of accounts receivable, allowance for credit loss	Presented in the table below are the changes in the allowance for uncollectible accounts for the nine months ended September 30: 2022 2021 Balance as of January 1 $ (75) $ (60) Amounts charged to expense (17) (28) Amounts written off 19 22 Other, net (a) 9 (10) Balance as of September 30 $ (64) $ (76) (a) This portion of the allowance for uncollectible accounts is primarily related to COVID-19 related regulatory asset activity. The 2021 activity also includes the portion of the allowance related to the Company’s New York subsidiary, which was sold on January 1, 2022, and is included in assets held for sale on the Consolidated Balance Sheets as of December 31, 2021. See Note 5—Acquisitions and Divestitures for additional information.

Regulatory Matters (Tables)

Regulatory Matters (Tables)	9 Months Ended
Regulatory Matters (Tables)	Sep. 30, 2022
Regulated Operations [Abstract]
Schedule of generate rate cases and infrastructure surcharges	Presented in the table below are annualized incremental revenues, excluding reductions for the amortization of excess accumulated deferred income tax (“EADIT”) that are generally offset in income tax expense, assuming a constant water sales volume, resulting from general rate case authorizations and infrastructure surcharge authorizations that became effective in the respective period: During the Three Months Ended September 30, During the Nine Months Ended September 30, (In millions) 2022 2021 2022 2021 General rate cases by state (a): New Jersey (effective September 1, 2022) $ 61 $ — $ 61 $ — Hawaii (effective July 1, 2022) 2 — 2 — West Virginia (effective February 25, 2022) — — 15 — California (effective January 1, 2022 and January 1, 2021) — — 13 22 Pennsylvania (effective January 1, 2022 and January 28, 2021) — — 20 70 Missouri (effective May 28, 2021) — — — 22 Total general rate cases $ 63 $ — $ 111 $ 114 Infrastructure surcharges by state: Missouri (effective August 11, 2022 and February 1, 2022) $ 18 $ — $ 30 $ — Tennessee (effective August 8, 2022 and January 1, 2021) 3 — 3 3 Pennsylvania (effective July 1, 2022, April 1, 2022 and January 1, 2021) 9 — 11 8 Kentucky (effective July 1, 2022 and July 1, 2021) 3 1 3 1 New Jersey (effective June 27, 2022 and June 28, 2021) — — 10 14 Indiana (effective March 21, 2022 and March 17, 2021) — — 8 8 West Virginia (effective March 1, 2022 and January 1, 2021) — — 3 5 Illinois (effective January 1, 2022 and January 1, 2021) — — 6 7 Total infrastructure surcharges $ 33 $ 1 $ 74 $ 46 (a) Excludes authorized increase of $7 million for the nine months ended September 30, 2021, for the Company’s New York subsidiary, which was sold on January 1, 2022. See Note 5—Acquisitions and Divestitures for additional information.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
Revenue Recognition (Tables)	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	Presented in the table below are operating revenues disaggregated for the three months ended September 30, 2022: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 556 $ 1 $ 557 Commercial 207 1 208 Fire service 36 — 36 Industrial 41 1 42 Public and other 82 — 82 Total water services 922 3 925 Wastewater services: Residential 45 1 46 Commercial 12 — 12 Industrial 1 — 1 Public and other 7 — 7 Total wastewater services 65 1 66 Miscellaneous utility charges 9 — 9 Alternative revenue programs — 1 1 Lease contract revenue — 2 2 Total Regulated Businesses 996 7 1,003 Market-Based Businesses and Other 80 (1) 79 Total operating revenues $ 1,076 $ 6 $ 1,082 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of Accounting Standards Codification Topic 606, Revenue From Contracts With Customers (“ASC 606”), and accounted for under other existing GAAP. Presented in the table below are operating revenues disaggregated for the three months ended September 30, 2021: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 545 $ — $ 545 Commercial 197 — 197 Fire service 38 — 38 Industrial 39 — 39 Public and other 72 — 72 Total water services 891 — 891 Wastewater services: Residential 38 — 38 Commercial 10 — 10 Industrial 1 — 1 Public and other 4 — 4 Total wastewater services 53 — 53 Miscellaneous utility charges 2 — 2 Alternative revenue programs — (4) (4) Lease contract revenue — 2 2 Total Regulated Businesses 946 (2) 944 Market-Based Businesses and Other 148 — 148 Total operating revenues $ 1,094 $ (2) $ 1,092 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP. Presented in the table below are operating revenues disaggregated for the nine months ended September 30, 2022: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 1,467 $ 2 $ 1,469 Commercial 534 1 535 Fire service 109 — 109 Industrial 115 1 116 Public and other 195 — 195 Total water services 2,420 4 2,424 Wastewater services: Residential 128 1 129 Commercial 33 — 33 Industrial 3 — 3 Public and other 14 — 14 Total wastewater services 178 1 179 Miscellaneous utility charges 27 — 27 Alternative revenue programs — 10 10 Lease contract revenue — 6 6 Total Regulated Businesses 2,625 21 2,646 Market-Based Businesses and Other 216 (1) 215 Total operating revenues $ 2,841 $ 20 $ 2,861 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP. Presented in the table below are operating revenues disaggregated for the nine months ended September 30, 2021: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 1,466 $ — $ 1,466 Commercial 511 — 511 Fire service 112 — 112 Industrial 105 — 105 Public and other 172 — 172 Total water services 2,366 — 2,366 Wastewater services: Residential 112 — 112 Commercial 28 — 28 Industrial 3 — 3 Public and other 12 — 12 Total wastewater services 155 — 155 Miscellaneous utility charges 18 — 18 Alternative revenue programs — 12 12 Lease contract revenue — 5 5 Total Regulated Businesses 2,539 17 2,556 Market-Based Businesses and Other 424 (1) 423 Total operating revenues $ 2,963 $ 16 $ 2,979 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP.

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
Shareholders' Equity (Tables)	Sep. 30, 2022
Equity [Abstract]
Schedule of accumulated other comprehensive income (loss)	Presented in the table below are the changes in accumulated other comprehensive loss by component, net of tax, for the nine months ended September 30, 2022 and 2021, respectively: Defined Benefit Pension Plans Loss on Cash Flow Hedges Accumulated Other Comprehensive Loss Employee Benefit Plan Funded Status Amortization of Prior Service Cost Amortization of Actuarial Loss Balance as of December 31, 2021 $ (107) $ 1 $ 67 $ (6) $ (45) Other comprehensive income before reclassifications — — — 4 4 Amounts reclassified from accumulated other comprehensive loss — — 2 — 2 Net other comprehensive income — — 2 4 6 Balance as of September 30, 2022 $ (107) $ 1 $ 69 $ (2) $ (39) Balance as of December 31, 2020 $ (106) $ 1 $ 63 $ (7) $ (49) Other comprehensive loss before reclassifications — — — 1 1 Amounts reclassified from accumulated other comprehensive loss — — 3 — 3 Net other comprehensive income — — 3 1 4 Balance as of September 30, 2021 $ (106) $ 1 $ 66 $ (6) $ (45)

Short-Term Debt (Tables)

Short-Term Debt (Tables)	9 Months Ended
Short-Term Debt (Tables)	Sep. 30, 2022
Debt Disclosure [Abstract]
Schedule of line of credit facilities	Presented in the tables below is the aggregate credit facility commitments, commercial paper limit and letter of credit availability under the revolving credit facility, as well as the available capacity for each: As of September 30, 2022 Commercial Paper Limit Letters of Credit Total (a) (In millions) Total availability $ 2,100 $ 150 $ 2,250 Outstanding debt (634) (75) (709) Remaining availability as of September 30, 2022 $ 1,466 $ 75 $ 1,541 (a) Total remaining availability of $1.54 billion as of September 30, 2022, may be accessed through revolver draws. As of December 31, 2021 Commercial Paper Limit Letters of Credit Total (a) (In millions) Total availability $ 2,100 $ 150 $ 2,250 Outstanding debt (584) (76) (660) Remaining availability as of December 31, 2021 $ 1,516 $ 74 $ 1,590 (a) Total remaining availability of $1.59 billion as of December 31, 2021, may be accessed through revolver draws. Presented in the table below is the Company’s total available liquidity as of September 30, 2022 and December 31, 2021, respectively: Cash and Cash Equivalents Availability on Revolving Credit Facility Total Available Liquidity (In millions) Available liquidity as of September 30, 2022 $ 77 $ 1,541 $ 1,618 Available liquidity as of December 31, 2021 $ 116 $ 1,590 $ 1,706

Pension and Other Postretirem_2

Pension and Other Postretirement Benefits (Tables)	9 Months Ended
Pension and Other Postretirement Benefits (Tables)	Sep. 30, 2022
Retirement Benefits [Abstract]
Components of net periodic benefit costs	Presented in the table below are the components of net periodic benefit credit: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Components of net periodic pension benefit credit: Service cost $ 8 $ 9 $ 23 $ 27 Interest cost 16 16 48 49 Expected return on plan assets (31) (31) (92) (95) Amortization of prior service credit (1) (1) (3) (2) Amortization of actuarial loss 5 7 15 20 Net periodic pension benefit credit $ (3) $ — $ (9) $ (1) Components of net periodic other postretirement benefit credit: Service cost $ 1 $ 1 $ 3 $ 3 Interest cost 3 2 8 6 Expected return on plan assets (5) (5) (15) (15) Amortization of prior service credit (8) (8) (24) (24) Net periodic other postretirement benefit credit $ (9) $ (10) $ (28) $ (30)

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
Earnings Per Common Share (Tables)	Sep. 30, 2022
Earnings Per Share [Abstract]
Reconciliation of numerator and denominator for basic and diluted earnings per share	Presented in the table below is a reconciliation of the numerator and denominator for the basic and diluted EPS calculations: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income attributable to common shareholders $ 297 $ 278 $ 673 $ 618 Denominator: Weighted-average common shares outstanding—Basic 182 182 182 182 Effect of dilutive common stock equivalents — — — — Weighted-average common shares outstanding—Diluted 182 182 182 182

Fair Value of Financial Infor_2

Fair Value of Financial Information (Tables)	9 Months Ended
Fair Value of Financial Information (Tables)	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Carrying amounts and fair values of financial instruments	Presented in the tables below are the carrying amounts, including fair value adjustments previously recognized in acquisition purchase accounting, and the fair values of the Company’s financial instruments: As of September 30, 2022 Carrying Amount At Fair Value Level 1 Level 2 Level 3 Total Preferred stock with mandatory redemption requirements $ 3 $ — $ — $ 3 $ 3 Long-term debt (excluding finance lease obligations) 11,205 8,378 47 1,397 9,822 As of December 31, 2021 Carrying Amount At Fair Value Level 1 Level 2 Level 3 Total Preferred stock with mandatory redemption requirements $ 4 $ — $ — $ 6 $ 6 Long-term debt (excluding finance lease obligations) 10,396 10,121 60 1,637 11,818
Fair value measurements of assets and liabilities on recurring basis	Presented in the tables below are assets and liabilities measured and recorded at fair value on a recurring basis and their level within the fair value hierarchy: As of September 30, 2022 Level 1 Level 2 Level 3 Total Assets: Restricted funds $ 28 $ — $ — $ 28 Rabbi trust investments 20 — — 20 Deposits 7 — — 7 Other investments 23 — — 23 Contingent cash payment from the sale of HOS — — 72 72 Total assets 78 — 72 150 Liabilities: Deferred compensation obligations 23 — — 23 Total liabilities 23 — — 23 Total assets $ 55 $ — $ 72 $ 127 As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Restricted funds $ 21 $ — $ — $ 21 Rabbi trust investments 23 — — 23 Deposits 27 — — 27 Other investments 17 — — 17 Contingent cash payment from the sale of HOS — — 72 72 Total assets 88 — 72 160 Liabilities: Deferred compensation obligations 27 — — 27 Total liabilities 27 — — 27 Total assets $ 61 $ — $ 72 $ 133

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
Segment Information (Tables)	Sep. 30, 2022
Segment Reporting [Abstract]
Summarized segment information	Presented in the tables below is summarized segment information: As of or for the Three Months Ended September 30, 2022 Regulated Businesses Market-Based Businesses and Other Consolidated Operating revenues $ 1,003 $ 79 $ 1,082 Depreciation and amortization 161 3 164 Total operating expenses, net 574 69 643 Interest expense (81) (30) (111) Interest income 1 13 14 Income before income taxes 373 (6) 367 Provision for income taxes 71 (1) 70 Net income (loss) attributable to common shareholders 302 (5) 297 Total assets 24,366 2,760 27,126 Cash paid for capital expenditures 598 4 602 As of or for the Three Months Ended September 30, 2021 Regulated Businesses Market-Based Businesses and Other Consolidated Operating revenues $ 944 $ 148 $ 1,092 Depreciation and amortization 151 10 161 Total operating expenses, net 563 112 675 Interest expense (73) (28) (101) Interest income — — — Income (loss) before income taxes 332 8 340 Provision for income taxes 60 2 62 Net income (loss) attributable to common shareholders 273 5 278 Total assets 22,818 2,515 25,333 Cash paid for capital expenditures 447 6 453 As of or for the Nine Months Ended September 30, 2022 Regulated Businesses Market-Based Businesses and Other Consolidated Operating revenues $ 2,646 $ 215 $ 2,861 Depreciation and amortization 473 12 485 Total operating expenses, net 1,658 191 1,849 Interest expense (227) (90) (317) Interest income 1 38 39 Income before income taxes 835 (5) 830 Provision for income taxes 154 3 157 Net income (loss) attributable to common shareholders 681 (8) 673 Total assets 24,366 2,760 27,126 Cash paid for capital expenditures 1,588 9 1,597 As of or for the Nine Months Ended September 30, 2021 Regulated Businesses Market-Based Businesses and Other Consolidated Operating revenues $ 2,556 $ 423 $ 2,979 Depreciation and amortization 449 27 476 Total operating expenses, net 1,658 345 2,003 Interest expense (216) (84) (300) Interest income — — — Income (loss) before income taxes 752 (6) 746 Provision (benefit) for income taxes 130 (2) 128 Net income (loss) attributable to common shareholders 623 (5) 618 Total assets 22,818 2,515 25,333 Cash paid for capital expenditures 1,191 14 1,205

Significant Accounting Polici_4

Significant Accounting Policies - Allowance for Uncollectible Accounts (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance as of January 1	$ (75)	$ (60)
Amounts charged to expense	(17)	(28)
Amounts written off	19	22
Other, net	9	(10)
Balance as of September 30	$ (64)	$ (76)

Regulatory Matters - Generate R

Regulatory Matters - Generate Rate Cases and Infrastructure Surcharges (Details) - USD ($) $ in Millions			3 Months Ended		9 Months Ended
	Aug. 17, 2022	Feb. 25, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Public Utilities, General Disclosures
General rate case authorizations			$ 63	$ 0	$ 111	$ 114
Infrastructure surcharge authorizations			33	1	74	46
Disposal Group, Disposed of by Sale \| New York American Water Company, Inc.
Public Utilities, General Disclosures
General rate case authorizations						7
New Jersey
Public Utilities, General Disclosures
General rate case authorizations	$ 61		61	0	61	0
Infrastructure surcharge authorizations			0	0	10	14
Hawaii
Public Utilities, General Disclosures
General rate case authorizations			2	0	2	0
West Virginia
Public Utilities, General Disclosures
General rate case authorizations			0	0	15	0
Infrastructure surcharge authorizations			0	0	3	5
California
Public Utilities, General Disclosures
General rate case authorizations			0	0	13	22
Pennsylvania
Public Utilities, General Disclosures
General rate case authorizations		$ 70	0	0	20	70
Infrastructure surcharge authorizations			9	0	11	8
Missouri
Public Utilities, General Disclosures
General rate case authorizations			0	0	0	22
Infrastructure surcharge authorizations			18	0	30	0
Tennessee
Public Utilities, General Disclosures
Infrastructure surcharge authorizations			3	0	3	3
Kentucky
Public Utilities, General Disclosures
Infrastructure surcharge authorizations			3	1	3	1
Indiana
Public Utilities, General Disclosures
Infrastructure surcharge authorizations			0	0	8	8
Illinois
Public Utilities, General Disclosures
Infrastructure surcharge authorizations			$ 0	$ 0	$ 6	$ 7

Regulatory Matters - Additional

Regulatory Matters - Additional Information (Details) - USD ($) $ in Millions

3 Months Ended

9 Months Ended

Oct. 11, 2022

Sep. 26, 2022

Sep. 09, 2022

Aug. 17, 2022

Jul. 01, 2022

Jun. 30, 2022

Jun. 29, 2022

Apr. 29, 2022

Feb. 24, 2022

Feb. 16, 2022

Feb. 10, 2022

Nov. 18, 2021

Nov. 15, 2021

Mar. 02, 2021

Feb. 25, 2021

Oct. 28, 2022

Sep. 30, 2022

Sep. 30, 2021

Sep. 30, 2022

Sep. 30, 2021

Oct. 01, 2022

Public Utilities, General Disclosures

General rate case authorizations

$ 63

$ 0

$ 111

$ 114

Pennsylvania

Public Utilities, General Disclosures

General rate case authorizations

$ 70

General rate case authorizations, additional annualized revenue

Net of excess accumulated deferred income taxes, reduction in revenue

General rate case authorizations, increase net

General rate case authorizations, Tax Cuts And Jobs Act Of 2017

General rate case authorizations, second threshold

Net of excess accumulated deferred income taxes, protected, payable to customers

200

Net of excess accumulated deferred income taxes, unprotected, payable to customers

$ 116

Net of excess accumulated deferred income taxes, unprotected, payable to customers, period

20 years

Net of excess accumulated deferred income taxes, protected and unprotected, payable to customers

$ 19

Net of excess accumulated deferred income taxes, payable to customers, bill credit

$ 11

Net of excess accumulated deferred income taxes, payable to customers, bill credit period

2 years

Net of excess accumulated deferred income taxes, payable to customers, new base rate amortization period

2 years

Requested rate increase (decrease), amount

$ 185

Pennsylvania | Subsequent Event

Public Utilities, General Disclosures

Implemented infrastructure surcharge for annualized incremental revenues

$ 8

Requested rate increase (decrease), amount

$ 150

Requested rate increase (decrease), including excess of accumulated deferred income taxes, amount

$ 138

New Jersey

Public Utilities, General Disclosures

General rate case authorizations

$ 61

General rate case authorizations, including excess of accumulated deferred income taxes, reduction in revenue

$ 46

Requested rate adjustment, amount

$ 29

West Virginia

Public Utilities, General Disclosures

General rate case authorizations

General rate case authorizations, additional annualized revenue

$ 15

Net of excess accumulated deferred income taxes, reduction in revenue

General rate case authorizations, infrastructure surcharges

$ 10

Requested, infrastructure surcharge for annualized revenues, additional

$ 8

California

Public Utilities, General Disclosures

General rate case authorizations

California | Year 2024

Public Utilities, General Disclosures

Requested rate increase (decrease), amount

$ 57

California | Year 2024 to 2026

Public Utilities, General Disclosures

Net of excess accumulated deferred income taxes, reduction in revenue

Requested rate increase (decrease), amount

California | Water and Wastewater Services

Public Utilities, General Disclosures

General rate case authorizations, additional annualized revenue

$ 22

Net of excess accumulated deferred income taxes, reduction in revenue

$ 4

Approved rate increase (decrease), amount

$ 13

General rate case authorizations, Tax Cuts and Jobs Act of 2017, reduction

$ 4

Missouri

Public Utilities, General Disclosures

General rate case authorizations

$ 0

$ 22

Requested rate increase (decrease), amount

116

Requested rate increase (decrease), including excess of accumulated deferred income taxes, amount

$ 105

Requested, infrastructure surcharge for annualized revenues, additional

$ 13

Illinois

Public Utilities, General Disclosures

Requested rate increase (decrease), amount

$ 85

$ 71

Requested rate increase (decrease), including excess of accumulated deferred income taxes, amount

$ 83

Illinois | Subsequent Event

Public Utilities, General Disclosures

Requested rate increase (decrease), amount

$ 69

Requested rate increase (decrease), including excess of accumulated deferred income taxes, amount

$ 67

Proposed return on equity, percentage

9.78%

Virginia

Public Utilities, General Disclosures

Requested rate increase (decrease), amount

$ 12

$ 15

Requested rate increase (decrease), including excess of accumulated deferred income taxes, amount

$ 11

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregated Revenues (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue from contract	$ 1,076	$ 1,094	$ 2,841	$ 2,963
Other operating income	6	(2)	20	16
Operating revenues	1,082	1,092	2,861	2,979
Regulated Businesses
Disaggregation of Revenue [Line Items]
Revenue from contract	996	946	2,625	2,539
Other operating income	7	(2)	21	17
Alternative revenue programs	1	(4)	10	12
Lease contract revenue	2	2	6	5
Operating revenues	1,003	944	2,646	2,556
Regulated Businesses \| Water Services
Disaggregation of Revenue [Line Items]
Revenue from contract	922	891	2,420	2,366
Other operating income	3		4
Operating revenues	925	891	2,424	2,366
Regulated Businesses \| Wastewater Services
Disaggregation of Revenue [Line Items]
Revenue from contract	65	53	178	155
Other operating income	1		1
Operating revenues	66	53	179	155
Regulated Businesses \| Miscellaneous Utility Charge
Disaggregation of Revenue [Line Items]
Revenue from contract	9	2	27	18
Operating revenues	9	2	27	18
Regulated Businesses \| Residential \| Water Services
Disaggregation of Revenue [Line Items]
Revenue from contract	556	545	1,467	1,466
Other operating income	1		2
Operating revenues	557	545	1,469	1,466
Regulated Businesses \| Residential \| Wastewater Services
Disaggregation of Revenue [Line Items]
Revenue from contract	45	38	128	112
Other operating income	1		1
Operating revenues	46	38	129	112
Regulated Businesses \| Commercial \| Water Services
Disaggregation of Revenue [Line Items]
Revenue from contract	207	197	534	511
Other operating income	1		1
Operating revenues	208	197	535	511
Regulated Businesses \| Commercial \| Wastewater Services
Disaggregation of Revenue [Line Items]
Revenue from contract	12	10	33	28
Operating revenues	12	10	33	28
Regulated Businesses \| Fire service \| Water Services
Disaggregation of Revenue [Line Items]
Revenue from contract	36	38	109	112
Operating revenues	36	38	109	112
Regulated Businesses \| Industrial \| Water Services
Disaggregation of Revenue [Line Items]
Revenue from contract	41	39	115	105
Other operating income	1		1
Operating revenues	42	39	116	105
Regulated Businesses \| Industrial \| Wastewater Services
Disaggregation of Revenue [Line Items]
Revenue from contract	1	1	3	3
Operating revenues	1	1	3	3
Regulated Businesses \| Public and other \| Water Services
Disaggregation of Revenue [Line Items]
Revenue from contract	82	72	195	172
Operating revenues	82	72	195	172
Regulated Businesses \| Public and other \| Wastewater Services
Disaggregation of Revenue [Line Items]
Revenue from contract	7	4	14	12
Operating revenues	7	4	14	12
Market-Based Businesses and Other
Disaggregation of Revenue [Line Items]
Revenue from contract	80	148	216	424
Other operating income	(1)		(1)	(1)
Operating revenues	$ 79	$ 148	$ 215	$ 423

Revenue Recognition - Contract

Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Contract assets:
Contract asset	$ 76		$ 71
Additions	124	$ 60
Transfers to accounts receivable, net	119	31
Contract liabilities:
Contract liability	75		$ 19
Additions	150	141
Transfers to operating revenues	$ 94	$ 137

Revenue Recognition - Remaining

Revenue Recognition - Remaining Performance Obligations (Details) - Market-Based Businesses and Other $ in Millions	Sep. 30, 2022 USD ($)
U.S. Government
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation	$ 7,000
Municipalities and Commercial
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation	$ 542

Acquisitions and Divestitures -

Acquisitions and Divestitures - Additional Information (Details) $ in Millions

3 Months Ended

9 Months Ended

12 Months Ended

14 Months Ended

May 27, 2022 USD ($) customer

Dec. 09, 2021 USD ($) renewal

Sep. 30, 2022 USD ($)

Mar. 31, 2022 USD ($)

Dec. 31, 2021 USD ($)

Sep. 30, 2021 USD ($)

Sep. 30, 2022 USD ($) acquisition

Sep. 30, 2021 USD ($)

Dec. 31, 2023 USD ($) connection

Nov. 01, 2022 customer

Feb. 04, 2022 USD ($)

Jan. 01, 2022 USD ($)

Business Acquisition [Line Items]

Consideration transferred

$ 73

Number of assets acquisitions | acquisition

Number of acquisitions | acquisition

Interest income

$ 14

$ 0

$ 39

$ 0

Operating income

439

417

1,012

976

Disposal Group, Disposed of by Sale | New York American Water Company, Inc.

Business Acquisition [Line Items]

Consideration

$ 608

Gain (loss) on sale of business

$ (2)

Disposal Group, Disposed of by Sale | Michigan American Water Company

Business Acquisition [Line Items]

Consideration

$ 6

Disposal Group, Disposed of by Sale | Homeowner Services Group

Business Acquisition [Line Items]

Consideration

$ 1,275

Gain (loss) on sale of business

$ 748

Proceeds from sale of businesses

480

Contingent consideration receivable

$ 75

Revenue sharing agreement, term

15 years

Revenue sharing agreement, number of renewals | renewal

Revenue sharing agreement, renewals term

5 years

Operating income

Disposal Group, Disposed of by Sale | Homeowner Services Group | Secured Seller Promissory Note

Business Acquisition [Line Items]

Debt instrument, face amount

$ 720

Debt instrument, term

5 years

Interest rate

Interest income

Home Warranty Services | Disposal Group, Disposed of by Sale | Homeowner Services Group | On-bill Arrangement

Business Acquisition [Line Items]

Revenue sharing agreement, percentage of revenue to be received

10%

Home Warranty Services | Disposal Group, Disposed of by Sale | Homeowner Services Group | Future On-bill Arrangement

Business Acquisition [Line Items]

Revenue sharing agreement, percentage of revenue to be received

15%

Regulated Businesses

Business Acquisition [Line Items]

Interest income

$ 1

$ 0

$ 1

$ 0

Pennsylvania American Water Company

Business Acquisition [Line Items]

Consideration transferred

$ 235

Cash deposit

$ 20

Number of customers in service | customer

45,000

Pennsylvania American Water Company | Forecast

Business Acquisition [Line Items]

Consideration transferred

$ 232

Number of customers connections | connection

14,700

Pennsylvania American Water Company | Regulated Businesses

Business Acquisition [Line Items]

Assets

$ 231

Goodwill

$ 4

New Jersey American Water Company | Forecast

Business Acquisition [Line Items]

Consideration transferred

$ 22

Number of customers in service | customer

3,000

New Jersey American Water Company | Wastewater Services | Forecast

Business Acquisition [Line Items]

Number of customers in service | customer

1,500

New Jersey American Water Company | Water Services | Forecast

Business Acquisition [Line Items]

Number of customers in service | customer

1,500

Shareholders' Equity - Changes

Shareholders' Equity - Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 7,570	$ 7,460	$ 7,298	$ 6,690	$ 6,583	$ 6,454	$ 7,298	$ 6,454
Other comprehensive income before reclassifications							4	1
Amounts reclassified from accumulated other comprehensive loss							2	3
Net other comprehensive income	1	4	1	1	2	1	6	4
Ending balance	7,758	7,570	7,460	6,866	6,690	6,583	7,758	6,866
Employee Benefit Plan Funded Status
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(107)			(106)	(107)	(106)
Other comprehensive income before reclassifications							0	0
Amounts reclassified from accumulated other comprehensive loss							0	0
Net other comprehensive income							0	0
Ending balance	(107)			(106)			(107)	(106)
Amortization of Prior Service Cost
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			1			1	1	1
Other comprehensive income before reclassifications							0	0
Amounts reclassified from accumulated other comprehensive loss							0	0
Net other comprehensive income							0	0
Ending balance	1			1			1	1
Amortization of Actuarial Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			67			63	67	63
Other comprehensive income before reclassifications							0	0
Amounts reclassified from accumulated other comprehensive loss							2	3
Net other comprehensive income							2	3
Ending balance	69			66			69	66
Loss on Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(6)			(7)	(6)	(7)
Other comprehensive income before reclassifications							4	1
Amounts reclassified from accumulated other comprehensive loss							0	0
Net other comprehensive income							4	1
Ending balance	(2)			(6)			(2)	(6)
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(40)	(44)	(45)	(46)	(48)	(49)	(45)	(49)
Net other comprehensive income	1	4	1	1	2	1
Ending balance	$ (39)	$ (40)	$ (44)	$ (45)	$ (46)	$ (48)	$ (39)	$ (45)

Shareholders' Equity - Dividend

Shareholders' Equity - Dividends (Details) - $ / shares			3 Months Ended
Shareholders' Equity - Dividends (Details) - $ / shares	Oct. 27, 2022	Sep. 01, 2022	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021
Dividends Payable [Line Items]
Dividends declared per common share (dollars per share)		$ 0.6550	$ 0.6550	$ 0.6550	$ 0.6025	$ 0.6025
Subsequent Event
Dividends Payable [Line Items]
Dividends declared per common share (dollars per share)	$ 0.6550

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($)		1 Months Ended		9 Months Ended
Long-Term Debt - Additional Information (Details) - USD ($)	May 05, 2022	May 31, 2022	Apr. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Proceeds from long-term debt				$ 822,000,000	$ 1,113,000,000
Debt instrument, redemption, period one
Debt Instrument [Line Items]
Repayments of debt				14,000,000
Several treasury lock agreements \| Designated as Hedging Instrument
Debt Instrument [Line Items]
Debt instrument, face amount			$ 400,000,000
Debt instrument, term			10 years
Derivative, average fixed rate			2.89%
Gain from termination of derivative instruments		$ 4,000,000
Derivative net gain amortized through interest period		10 years
Various debt
Debt Instrument [Line Items]
Proceeds from long-term debt				$ 22,000,000
Various debt maturing in 2027 through 2042
Debt Instrument [Line Items]
Weighted average interest rate				1.05%
Various debt maturing in 2027 through 2042 \| Minimum
Debt Instrument [Line Items]
Interest rate				0%
Maturity date				2027
Various debt maturing in 2027 through 2042 \| Maximum
Debt Instrument [Line Items]
Interest rate				1.75%
Maturity date				2042
Various debt maturing in 2022 through 2051
Debt Instrument [Line Items]
Weighted average interest rate				2.18%
Various debt maturing in 2022 through 2051 \| Minimum
Debt Instrument [Line Items]
Interest rate				0%
Maturity date				2022
Various debt maturing in 2022 through 2051 \| Maximum
Debt Instrument [Line Items]
Interest rate				12.25%
Maturity date				2051
American Water Capital Corp.
Debt Instrument [Line Items]
Weighted average interest rate				3.22%		0.20%
American Water Capital Corp. \| Senior Notes \| 4.45% senior notes due 2032
Debt Instrument [Line Items]
Debt instrument, face amount	$ 800,000,000
Interest rate	4.45%
Proceeds from long-term debt	$ 792,000,000

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Details)		9 Months Ended	12 Months Ended
Short-Term Debt - Additional Information (Details)	Oct. 26, 2022 USD ($) option	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Oct. 25, 2022 USD ($)
Short-term Debt [Line Items]
Total availability		$ 2,250,000,000	$ 2,250,000,000
Outstanding debt		634,000,000	584,000,000
Short-term debt		634,000,000	584,000,000
Commercial paper borrowings with maturities greater than three months		$ 0	$ 0
American Water Capital Corp.
Short-term Debt [Line Items]
Weighted average interest rate on short-term debt		3.22%	0.20%
Revolving Credit Facility
Short-term Debt [Line Items]
Short-term debt		$ 0	$ 0
Revolving Credit Facility \| Letter of Credit
Short-term Debt [Line Items]
Letters of credit, maximum borrowing capacity		150,000,000	$ 150,000,000
Revolving Credit Facility \| American Water Capital Corp. \| Subsequent Event
Short-term Debt [Line Items]
Letters of credit, maximum borrowing capacity	$ 2,750,000,000			$ 2,250,000,000
Line of credit facility, accordion feature, increase limit	$ 500,000,000
Line of credit facility, accordion feature, number of options \| option	2
Line of credit facility, accordion feature, term	1 year
Total availability	$ 2,600,000,000			$ 2,100,000,000
Revolving Credit Facility \| American Water Capital Corp. \| Letter of Credit
Short-term Debt [Line Items]
Letters of credit, maximum borrowing capacity		$ 150,000,000

Short-Term Debt - Schedule of C

Short-Term Debt - Schedule of Company's Aggregate Credit Facility Commitments, Commercial Paper Limit, Letter of Credit Availability and Availability Capacity (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Total availability	$ 2,100	$ 2,100
Total availability	2,250	2,250
Outstanding debt	(634)	(584)
Outstanding debt	(709)	(660)
Remaining availability	1,466	1,516
Remaining availability	1,541	1,590
Revolving Credit Facility
Short-term Debt [Line Items]
Remaining availability	1,541	1,590
Revolving Credit Facility \| Letter of Credit
Short-term Debt [Line Items]
Total availability	150	150
Outstanding debt	(75)	(76)
Remaining availability	$ 75	$ 74

Short-Term Debt - Schedule of A

Short-Term Debt - Schedule of Availability Liquidity (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Cash and Cash Equivalents	$ 77	$ 116
Remaining availability	1,541	1,590
Total Available Liquidity	1,618	1,706
Revolving Credit Facility
Short-term Debt [Line Items]
Remaining availability	$ 1,541	$ 1,590

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Sep. 27, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate		19.10%	18.20%	18.90%	17.20%
Pennsylvania Department of Revenue
Income Tax Contingency [Line Items]
Deferred tax liability, accumulated liability reduction		$ 132		$ 132
Iowa Department of Revenue
Income Tax Contingency [Line Items]
Change in enacted tax rate, remeasurement amount	$ 1

Pension and Other Postretirem_3

Pension and Other Postretirement Benefits - Schedule of Net Periodic Benefit Cost Components (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Pension Plan Asset
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 8	$ 9	$ 23	$ 27
Interest cost	16	16	48	49
Expected return on plan assets	(31)	(31)	(92)	(95)
Amortization of prior service credit	(1)	(1)	(3)	(2)
Amortization of actuarial loss	5	7	15	20
Net periodic benefit credit	(3)	0	(9)	(1)
Other Postretirement Benefit Cost
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	1	3	3
Interest cost	3	2	8	6
Expected return on plan assets	(5)	(5)	(15)	(15)
Amortization of prior service credit	(8)	(8)	(24)	(24)
Net periodic benefit credit	$ (9)	$ (10)	$ (28)	$ (30)

Pension and Other Postretirem_4

Pension and Other Postretirement Benefits - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Pension Plan Asset
Defined Benefit Plan Disclosure [Line Items]
Company contributions	$ 9,000,000	$ 10,000,000	$ 27,000,000	$ 28,000,000
Expected contributions	9,000,000		9,000,000
Other Postretirement Benefit Cost
Defined Benefit Plan Disclosure [Line Items]
Company contributions	$ 0	$ 3,000,000	$ 13,000,000	$ 3,000,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) customer in Thousands, $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)	Nov. 29, 2021 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2015 customer	Jun. 27, 2015	Jun. 26, 2015	Jun. 23, 2015 customer
Commitments And Contingencies [Line Items]
Loss contingency, probable loss	$ 4
WVAWC \| Dunbar
Commitments And Contingencies [Line Items]
Number of customers impacted due to failure of main that caused water outages and low pressure \| customer								25
Percentage of impacted customers to which service was restored						20%	80%
Number of customers for whom system was reconfigured to maintain service while a final repair was completed \| customer					3
Cal Am \| Monterey \| SWRCB
Commitments And Contingencies [Line Items]
Approved cost estimates			$ 279
Aggregate costs	206
Allowance for funds used during construction	55
Requested base rate treatment and related aquifer storage and recovery project		$ 81
Cost cap	45
Remaining cost cap	36
Binding Agreement \| WVAWC
Commitments And Contingencies [Line Items]
Loss contingency, probable loss	0.5
Amount of settlement	126
Insurance recoveries	19
Offsetting insurance receivable	0.5
Maximum
Commitments And Contingencies [Line Items]
Loss contingency, possible loss	$ 3
Maximum \| Cal Am \| Monterey \| SWRCB
Commitments And Contingencies [Line Items]
Approved recovery amount				$ 50

Earnings Per Common Share - Rec

Earnings Per Common Share - Reconciliation of Numerator and Denominator for Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Net income (loss) attributable to common shareholders	$ 297	$ 278	$ 673	$ 618
Net income (loss) attributable to common shareholders	$ 297	$ 278	$ 673	$ 618
Weighted-average common shares outstanding - Basic (in shares)	182	182	182	182
Effect of dilutive common stock equivalents (in shares)	0	0	0	0
Weighted-average common shares outstanding - Diluted (in shares)	182	182	182	182

Earnings Per Common Share - Add

Earnings Per Common Share - Additional Information (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, less than (in shares)	1	1	1	1

Fair Value of Financial Infor_3

Fair Value of Financial Information - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021	Dec. 09, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Seller promissory note from the sale of the Homeowner Services Group	$ 720	$ 720
Contingent cash payment from the sale of HOS	72	72
Carrying Amount
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Seller promissory note from the sale of the Homeowner Services Group	720	720
Level 3
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contingent cash payment from the sale of HOS	72	72
Disposal Group, Disposed of by Sale \| Homeowner Services Group
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contingent consideration receivable			$ 75
Disposal Group, Disposed of by Sale \| Homeowner Services Group \| Level 3
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contingent consideration receivable	75
Disposal Group, Disposed of by Sale \| Homeowner Services Group \| Level 3 \| Fair Value
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Seller promissory note from the sale of the Homeowner Services Group	$ 681	$ 720

Fair Value of Financial Infor_4

Fair Value of Financial Information - Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred stock with mandatory redemption requirements, carrying amount	$ 3	$ 4
Long-term debt (excluding finance lease obligations), carrying amount	11,205	10,396
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred stock with mandatory redemption requirements, fair value	3	6
Long-term debt (excluding finance lease obligations), fair value	9,822	11,818
Fair Value \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred stock with mandatory redemption requirements, fair value	0	0
Long-term debt (excluding finance lease obligations), fair value	8,378	10,121
Fair Value \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred stock with mandatory redemption requirements, fair value	0	0
Long-term debt (excluding finance lease obligations), fair value	47	60
Fair Value \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred stock with mandatory redemption requirements, fair value	3	6
Long-term debt (excluding finance lease obligations), fair value	$ 1,397	$ 1,637

Fair Value of Financial Infor_5

Fair Value of Financial Information - Measurements of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets:
Restricted funds	$ 28	$ 21
Rabbi trust investments	20	23
Deposits	7	27
Other investments	23	17
Contingent cash payment from the sale of HOS	72	72
Total assets	150	160
Liabilities:
Deferred compensation obligations	23	27
Total liabilities	23	27
Total assets	127	133
Level 1
Assets:
Restricted funds	28	21
Rabbi trust investments	20	23
Deposits	7	27
Other investments	23	17
Contingent cash payment from the sale of HOS	0	0
Total assets	78	88
Liabilities:
Deferred compensation obligations	23	27
Total liabilities	23	27
Total assets	55	61
Level 2
Assets:
Restricted funds	0	0
Rabbi trust investments	0	0
Deposits	0	0
Other investments	0	0
Contingent cash payment from the sale of HOS	0	0
Total assets	0	0
Liabilities:
Deferred compensation obligations	0	0
Total liabilities	0	0
Total assets	0	0
Level 3
Assets:
Restricted funds	0	0
Rabbi trust investments	0	0
Deposits	0	0
Other investments	0	0
Contingent cash payment from the sale of HOS	72	72
Total assets	72	72
Liabilities:
Deferred compensation obligations	0	0
Total liabilities	0	0
Total assets	$ 72	$ 72

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Finance lease, right-of-use asset	$ 146		$ 146		$ 146
Operating and financing leases, rent expense, net	$ 3	$ 3	$ 9	$ 10
Real Property
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, term of contract	37 years		37 years
Vehicles
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, term of contract	6 years		6 years
Equipment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, term of contract	4 years		4 years
Operating and Maintenance Agreement
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Future minimum sublease rentals, year one	$ 1		$ 1
Future minimum sublease rentals, year two	4		4
Future minimum sublease rentals, year three	4		4
Future minimum sublease rentals, year four	4		4
Future minimum sublease rentals, year five	4		4
Future minimum sublease rentals, thereafter	$ 48		$ 48
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, renewal term	1 year		1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, renewal term	60 years		60 years
Utility Plant \| Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lessee, finance lease, term of contract	30 years		30 years
Utility Plant \| Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lessee, finance lease, term of contract	40 years		40 years

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Leases [Abstract]
Cash paid for amounts in lease liabilities	$ 3	$ 9
Right-of-use asset obtained in exchange for operating lease liability		$ 4

Leases - Remaining Lease Term a

Leases - Remaining Lease Term and Discount Rate (Details)	Sep. 30, 2022
Weighted-average Remaining Lease Term [Abstract]
Finance lease	4 years
Operating lease	17 years
Weighted-average Discount Rate [Abstract]
Finance lease	12%
Operating lease	4%

Leases - Future Maturities of L

Leases - Future Maturities of Lease Liabilities (Details) $ in Millions	Sep. 30, 2022 USD ($)
Leases [Abstract]
Payments, remainder of fiscal year	$ 3
Payments, year one	10
Payments, year two	9
Payments, year three	9
Payments, year four	8
Thereafter	88
Imputed interest	$ 42

Segment Information - Narrative

Segment Information - Narrative (Details)	9 Months Ended
Segment Information - Narrative (Details)	Sep. 30, 2022 segment
Segment Reporting [Abstract]
Number of reportable segments	1

Segment Information - Summarize

Segment Information - Summarized Segment Information (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Operating revenues	$ 1,082			$ 1,092			$ 2,861	$ 2,979
Depreciation and amortization	164			161			485	476
Total operating expenses, net	643			675			1,849	2,003
Interest expense	(111)			(101)			(317)	(300)
Interest income	14			0			39	0
Income before income taxes	367			340			830	746
Provision (benefit) for income taxes	70			62			157	128
Net income attributable to common shareholders	297	$ 218	$ 158	278	$ 207	$ 133	673	618
Total assets	27,126			25,333			27,126	25,333	$ 26,075
Cash paid for capital expenditures	602			453			1,597	1,205
Regulated Businesses
Segment Reporting Information [Line Items]
Operating revenues	1,003			944			2,646	2,556
Depreciation and amortization	161			151			473	449
Total operating expenses, net	574			563			1,658	1,658
Interest expense	(81)			(73)			(227)	(216)
Interest income	1			0			1	0
Income before income taxes	373			332			835	752
Provision (benefit) for income taxes	71			60			154	130
Net income attributable to common shareholders	302			273			681	623
Total assets	24,366			22,818			24,366	22,818
Cash paid for capital expenditures	598			447			1,588	1,191
Market-Based Businesses and Other
Segment Reporting Information [Line Items]
Operating revenues	79			148			215	423
Depreciation and amortization	3			10			12	27
Total operating expenses, net	69			112			191	345
Interest expense	(30)			(28)			(90)	(84)
Interest income	13			0			38	0
Income before income taxes	(6)			8			(5)	(6)
Provision (benefit) for income taxes	(1)			2			3	(2)
Net income attributable to common shareholders	(5)			5			(8)	(5)
Total assets	2,760			2,515			2,760	2,515
Cash paid for capital expenditures	$ 4			$ 6			$ 9	$ 14