American Water Works files joint settlement in Pennsylvania for Essential Utilities merger

American Water Works Company, Inc. (AWK) filed a joint petition for a non-unanimous settlement on Monday with the Pennsylvania Public Utility Commission regarding its proposed merger with Essential Utilities, Inc., according to a regulatory filing.

Key takeaways

• The joint petition was filed on Sept. 15, 2026, with the Pennsylvania Public Utility Commission.
• Participants include the Bureau of Investigation and Enforcement and the Office of the Consumer Advocate.
• One or more parties to the proceeding did not join the settlement agreement.
• The merger agreement was originally entered into on Oct. 26, 2025.

Settlement participants and review process

The settlement agreement was entered into with the Bureau of Investigation and Enforcement, the Office of the Consumer Advocate, the Office of the Small Business Advocate, and certain other parties to the proceeding. One or more parties did not join the agreement. The filing disclosed that the settlement will first be reviewed by assigned Administrative Law Judges who will issue a Recommended Decision to the commission. Following that step, the agreement will be subject to review and approval by the Pennsylvania Public Utility Commission.

Merger background and structure

Under the terms of the merger agreement announced on Oct. 26, 2025, Alpha Merger Sub, Inc., a direct wholly owned subsidiary of American Water, will merge with and into Essential Utilities. Essential Utilities will survive the transaction as a wholly owned subsidiary of American Water.

Why it matters

The regulatory proceeding in Pennsylvania represents a required step toward obtaining approval for the combination of the two utility companies. While the settlement brings several key state advocates on board, the lack of unanimous support and the subsequent review stages mean final approval remains pending.

By the numbers

| Metric | Value | Source | |---|---|---|> | Filing Date | September 15, 2026 | Regulatory filing | | Original Merger Date | October 26, 2025 | Regulatory filing | | Commission | PaPUC | Regulatory filing |

Remaining conditions

The settlement agreement now awaits review by the Administrative Law Judges assigned to the proceeding. After they issue a Recommended Decision, the matter moves to the commissioners of the Pennsylvania Public Utility Commission for final review and approval.