AMERICAN WATER WORKS COMPANY, INC., 10-K filed on 2/18/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Feb. 09, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 23,779,400
Entity Common Stock, Shares Outstanding   195,208,666  
Documents Incorporated by Reference
Portions of the American Water Works Company, Inc. definitive proxy statement for the 2026 Annual Meeting of Shareholders to be filed with the Securities and Exchange Commission within 120 days after December 31, 2025 are incorporated by reference into Part III of this report.
    
Entity Central Index Key 0001410636    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Philadelphia, Pennsylvania
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
ASSETS    
Property, plant and equipment $ 37,955 $ 35,059
Accumulated depreciation (7,379) (7,021)
Property, plant and equipment, net 30,576 28,038
Current assets:    
Cash and cash equivalents 98 96
Restricted funds 21 29
Accounts receivable, net of allowance for uncollectible accounts of $58 and $53, respectively 395 416
Income tax receivable 9 25
Unbilled revenues 433 315
Materials and supplies 112 103
Secured seller promissory note from the sale of the Homeowner Services Group 795 0
Other 328 231
Total current assets 2,191 1,215
Regulatory and other long-term assets:    
Regulatory assets 1,132 1,150
Secured seller promissory note from the sale of the Homeowner Services Group 0 795
Operating lease right-of-use assets 85 89
Goodwill 1,156 1,144
Other 302 399
Total regulatory and other long-term assets 2,675 3,577
Total assets 35,442 32,830
Capitalization:    
Common stock ($0.01 par value; 500,000,000 shares authorized; 200,605,170 and 200,371,701 shares issued, respectively) 2 2
Paid-in-capital 8,642 8,598
Retained earnings 2,575 2,112
Accumulated other comprehensive income 6 12
Treasury stock, at cost (5,428,008 and 5,451,216 shares, respectively) (388) (392)
Total common shareholders' equity 10,837 10,332
Long-term debt 12,777 12,518
Redeemable preferred stock at redemption value 3 3
Total long-term debt 12,780 12,521
Total capitalization 23,617 22,853
Current liabilities:    
Short-term debt 1,588 879
Current portion of long-term debt 1,479 637
Accounts payable 378 346
Accrued liabilities 830 791
Accrued taxes 134 156
Accrued interest 140 111
Other 198 230
Total current liabilities 4,747 3,150
Regulatory and other long-term liabilities:    
Advances for construction 435 383
Deferred income taxes and investment tax credits 3,190 2,881
Regulatory liabilities 1,416 1,416
Operating lease liabilities 74 76
Accrued pension expense 167 217
Other 166 277
Total regulatory and other long-term liabilities 5,448 5,250
Contributions in aid of construction 1,630 1,577
Commitments and contingencies (See Note 16)
Total capitalization and liabilities $ 35,442 $ 32,830
v3.25.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for uncollectible accounts $ 58 $ 53
Common stock, par value (in 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) 200,605,170 200,371,701
Treasury stock, shares (in shares) 5,428,008 5,451,216
v3.25.4
Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Operating revenues $ 5,140 $ 4,684 $ 4,234
Operating expenses:      
Operation and maintenance 2,019 1,858 1,720
Depreciation and amortization 894 788 704
General taxes 348 320 307
Other 0 0 (1)
Total operating expenses, net 3,261 2,966 2,730
Operating income 1,879 1,718 1,504
Other income (expense):      
Interest expense (615) (523) (460)
Interest income 90 94 73
Non-operating benefit costs, net 16 28 32
Other, net 52 42 47
Total other income (expense) (457) (359) (308)
Income before income taxes 1,422 1,359 1,196
Provision for income taxes 311 308 252
Net income attributable to common shareholders $ 1,111 $ 1,051 $ 944
Basic earnings per share:      
Net income attributable to common shareholders (in dollars per share) [1] $ 5.69 $ 5.39 $ 4.90
Diluted earnings per share:      
Net income attributable to common shareholders (in dollars per share) [1] $ 5.69 $ 5.39 $ 4.90
Weighted average common shares outstanding:      
Basic (in shares) 195 195 193
Diluted (in shares) 195 195 193
[1] Amounts may not calculate due to rounding.
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income attributable to common shareholders $ 1,111 $ 1,051 $ 944
Other comprehensive (loss) income, net of tax:      
Change in employee benefit plan funded status, net of tax of $0, $0 and $(2) in 2025, 2024 and 2023, respectively 0 1 (3)
Defined benefit pension plan amortization of actuarial loss, net of tax of $0 in 2025, 2024 and 2023 1 0 4
Unrealized (loss) gain on cash flow hedges, net of tax of $(2), $9 and $0 in 2025, 2024 and 2023, respectively (4) 39 (8)
Unrealized (loss) gain on available-for-sale fixed-income securities, net of tax of $(1), $0, $0 in 2025, 2024 and 2023, respectively (3) (2) 4
Net other comprehensive income (loss) (6) 38 (3)
Comprehensive income attributable to common shareholders $ 1,105 $ 1,089 $ 941
v3.25.4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Change in employee benefit plan funded status, tax $ 0 $ 0 $ (2)
Defined benefit pension plan actuarial loss, tax 0 0 0
Unrealized gain (loss) on cash flow hedges, tax (2) 9 0
Unrealized (loss) gain on available-for-sale fixed-income securities, tax $ (1) $ 0 $ 0
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income $ 1,111 $ 1,051 $ 944
Adjustments to reconcile to net cash flows provided by operating activities:      
Depreciation and amortization 894 788 704
Deferred income taxes and amortization of investment tax credits 135 156 208
Provision for losses on accounts receivable 48 31 24
Pension and non-pension postretirement benefits 1 (3) (6)
Other non-cash, net (30) 34 (27)
Changes in assets and liabilities:      
Receivables and unbilled revenues (145) (107) (56)
Income tax receivable 16 61 28
Pension and non-pension postretirement benefit contributions (49) (52) (49)
Accounts payable and accrued liabilities 97 111 70
Accrued taxes (30) 92 21
Other assets and liabilities, net 11 (117) 13
Net cash provided by operating activities 2,059 2,045 1,874
CASH FLOWS FROM INVESTING ACTIVITIES      
Capital expenditures (3,126) (2,856) (2,575)
Acquisitions, net of cash acquired (71) (417) (81)
Removal costs from property, plant and equipment retirements, net (175) (152) (159)
Purchases of available-for-sale fixed-income securities (46) (135) 0
Proceeds from sales and maturities of available-for-sale fixed-income securities 109 181 0
Net cash used in investing activities (3,309) (3,379) (2,815)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from long-term debt, net of discount 1,781 1,437 1,264
Repayments of long-term debt (664) (475) (282)
Net proceeds from common stock financing 0 0 1,688
Net short-term borrowings (repayments) with maturities less than three months 709 700 (996)
Advances and contributions in aid of construction, net of refunds of $31, $33 and $25 in 2025, 2024 and 2023, respectively 67 39 60
Debt issuance costs (17) (14) (16)
Dividends paid (633) (585) (532)
Other, net 6 8 2
Net cash provided by financing activities 1,249 1,110 1,188
Net (decrease) increase in cash, cash equivalents and restricted funds (1) (224) 247
Cash, cash equivalents and restricted funds at beginning of period 140 364 117
Cash, cash equivalents and restricted funds at end of period 139 140 364
Cash paid during the year for:      
Interest, net of capitalized amount 568 483 445
Non-cash investing and financing activity      
Capital expenditures acquired on account but unpaid as of year end 350 347 399
Acquisition financed by treasury stock 11 0 0
Settlements of long-term debt $ 27 $ 0 $ 0
v3.25.4
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Cash Flows [Abstract]      
Advances and contributions in aid of construction, refunds $ 31 $ 33 $ 25
v3.25.4
Consolidated Statements of Changes in Shareholders’ Equity - USD ($)
$ in Millions
Total
Common Stock
Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Beginning balance (in shares) at Dec. 31, 2022   187,400,000        
Beginning balance at Dec. 31, 2022 $ 7,693 $ 2 $ 6,824 $ 1,267 $ (23) $ (377)
Beginning balance (in shares) at Dec. 31, 2022           (5,400,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income attributable to common shareholders 944     944    
Common stock issuances (in shares) [1]   12,700,000       (100,000)
Common stock issuances [1] 1,715   1,726     $ (11)
Net other comprehensive income (loss) (3)       (3)  
Dividends (declared per common share) (552)     (552)    
Ending balance (in shares) at Dec. 31, 2023   200,100,000        
Ending balance at Dec. 31, 2023 9,797 $ 2 8,550 1,659 (26) $ (388)
Ending balance (in shares) at Dec. 31, 2023           (5,500,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income attributable to common shareholders 1,051     1,051    
Common stock issuances (in shares) [1]   300,000       0
Common stock issuances [1] 44   48     $ (4)
Net other comprehensive income (loss) 38       38  
Dividends (declared per common share) $ (598)     (598)    
Ending balance (in shares) at Dec. 31, 2024 200,371,701 200,400,000        
Ending balance at Dec. 31, 2024 $ 10,332 $ 2 8,598 2,112 12 $ (392)
Ending balance (in shares) at Dec. 31, 2024 (5,451,216)         (5,500,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income attributable to common shareholders $ 1,111     1,111    
Common stock issuances (in shares) [1]   200,000        
Common stock issuances [1] 38   44     $ (6)
Acquisitions via treasury stock (in shares)           100,000
Acquisitions via treasury stock 10         $ 10
Net other comprehensive income (loss) (6)       (6)  
Dividends (declared per common share) $ (648)     (648)    
Ending balance (in shares) at Dec. 31, 2025 200,605,170 200,600,000        
Ending balance at Dec. 31, 2025 $ 10,837 $ 2 $ 8,642 $ 2,575 $ 6 $ (388)
Ending balance (in shares) at Dec. 31, 2025 (5,428,008)         (5,400,000)
[1] Includes stock-based compensation, employee stock purchase plan and dividend reinvestment and direct stock purchase plan activity.
v3.25.4
Consolidated Statements of Changes in Shareholders’ Equity (Parenthetical) - $ / shares
 3 Months Ended 12 Months Ended
Dec. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Stockholders' Equity [Abstract]        
Dividends declared per common share (in dollars per share) $ 0.8275 $ 3.31 $ 3.06 $ 2.83
v3.25.4
Organization and Operation
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Operation
Note 1: Organization and Operation
American Water Works Company, Inc. (the “Company” or “American Water”) is a holding company for subsidiaries that provide water and wastewater services throughout the United States. References to “parent company” mean American Water Works Company, Inc., without its subsidiaries. The Company’s primary business involves the ownership of regulated utilities that provide water and wastewater services in 14 states in the United States, collectively referred to as the “Regulated Businesses.” The Company also operates other businesses that provide water and wastewater services to the U.S. government on military installations, as well as municipalities. These other businesses do not meet the criteria of a reportable segment in accordance with generally accepted accounting principles in the United States (“GAAP”), and are collectively presented throughout this Annual Report on Form 10-K within “Other.” See Note 20—Segment Information for additional information.
v3.25.4
Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Significant Accounting Policies
Note 2: Significant Accounting Policies
Regulation
The Company’s regulated utilities are subject to regulation by multiple state utility commissions or other entities engaged in utility regulation, collectively referred to as Public Utility Commissions (“PUCs”). As such, the Company follows authoritative accounting principles required for rate regulated utilities, which requires the effects of rate regulation to be reflected in the Company’s Consolidated Financial Statements. PUCs generally authorize revenue at levels intended to recover the estimated costs of providing service, plus a return on net investments, or rate base. Regulators may also approve accounting treatments, long-term financing programs and cost of capital, operation and maintenance (“O&M”) expenses, capital expenditures, taxes, affiliated transactions and relationships, reorganizations, mergers, acquisitions and dispositions, along with imposing certain penalties or granting certain incentives. Due to timing and other differences in the collection of a regulated utility’s revenues, these authoritative accounting principles allow a cost that would otherwise be charged as an expense by a non-regulated entity, to be deferred as a regulatory asset if it is probable that such cost is recoverable through future rates. Conversely, these principles also require the creation of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future, or amounts collected in excess of costs incurred and are refundable to customers. See Note 3—Regulatory Matters for additional information.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires that management make estimates, assumptions and judgments that could affect the Company’s financial condition, results of operations and cash flows. Actual results could differ from these estimates, assumptions and judgments. The Company considers its critical accounting estimates to include (i) the application of regulatory accounting principles and the related determination and estimation of regulatory assets and liabilities, (ii) revenue recognition and the estimates used in the calculation of unbilled revenue, (iii) accounting for income taxes, (iv) benefit plan assumptions and (v) the estimates and judgments used in determining loss contingencies. The Company’s critical accounting estimates that are particularly sensitive to change in the near term are amounts reported for regulatory assets and liabilities, income taxes, benefit plan assumptions and contingency-related obligations.
Principles of Consolidation
The accompanying Consolidated Financial Statements include the accounts of American Water and all of its subsidiaries in which a controlling interest is maintained after the elimination of intercompany balances and transactions.
Property, Plant and Equipment
Property, plant and equipment consists primarily of utility plant utilized by the Company’s regulated utilities. Additions to utility plant and replacement of retirement units of utility plant are capitalized and include costs such as materials, direct labor, payroll taxes and benefits, indirect items such as engineering and supervision, transportation and an allowance for funds used during construction (“AFUDC”). Costs for repair, maintenance and minor replacements are charged to O&M expense as incurred.
The cost of utility plant is depreciated using the straight-line average remaining life, group method. The Company’s regulated utilities record depreciation in conformity with amounts approved by PUCs, after regulatory review of the information the Company submits to support its estimates of the assets’ remaining useful lives.
Nonutility property consists primarily of buildings and equipment utilized by the Military Services Group (“MSG”) and for internal operations. This property is stated at cost, net of accumulated depreciation, which is calculated using the straight-line method over the useful lives of the assets.
When units of property, plant and equipment are replaced, retired or abandoned, the carrying value is credited against the asset and charged to accumulated depreciation. To the extent the Company recovers cost of removal or other retirement costs through rates after the retirement costs are incurred, a regulatory asset is recorded. In some cases, the Company recovers retirement costs through rates during the life of the associated asset and before the costs are incurred. These amounts result in a regulatory liability being reported based on the amounts previously recovered through customer rates, until the costs to retire those assets are incurred.
The costs incurred to acquire and internally develop computer software for internal use are capitalized as a unit of property. The carrying value of these costs, net of amortization, amounted to $435 million and $398 million as of December 31, 2025 and 2024, respectively.
Cash and Cash Equivalents, and Restricted Funds
Substantially all cash is invested in interest-bearing accounts. All highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents.
Restricted funds consist primarily of proceeds from financings for the construction and capital improvement of facilities, and deposits for future services under O&M projects, primarily performed by MSG. Proceeds are held in escrow or interest-bearing accounts until the designated expenditures are incurred. Restricted funds are classified on the Consolidated Balance Sheets as either current or long-term based upon the intended use of the funds.
Presented in the table below is a reconciliation of the cash and cash equivalents and restricted funds amounts as presented on the Consolidated Balance Sheets to the sum of such amounts presented on the Consolidated Statements of Cash Flows for the years ended December 31:
 20252024
Cash and cash equivalents$98 $96 
Restricted funds21 29 
Restricted funds included in other long-term assets20 15 
Cash and cash equivalents and restricted funds as presented on the Consolidated Statements of Cash Flows$139 $140 
Accounts Receivable and Unbilled Revenues
Accounts receivable include regulated utility customer accounts receivable, which represent amounts billed to water and wastewater customers generally on a monthly basis. Credit is extended based on the guidelines of the applicable PUCs and collateral is generally not required. Also included are the trade accounts receivable of other businesses, primarily MSG, and nonutility customer receivables of the Regulated Businesses. Unbilled revenues are accrued when service has been provided but has not been billed to customers and when costs exceed billings on certain construction contracts.
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. See Note 7—Allowance for Uncollectible Accounts for additional information.
Materials and Supplies
Materials and supplies are stated at the lower of cost or net realizable value. Cost is determined using the average cost method.
Seller Promissory Note
The Company’s secured seller promissory note was accounted for under Accounting Standards Codification (“ASC”) Topic 310, Receivables, and classified as held for investment and accounted for at amortized cost at the present value of consideration received for the sale of its Homeowner Services Group (“HOS”) business. Interest income from the secured seller promissory note was accrued based on the principal amount outstanding and earned over the contractual life of the loan.
Leases
The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, accrued liabilities and operating lease liabilities on the Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, accrued liabilities and other long-term liabilities on the Consolidated Balance Sheets. The Company has made an accounting policy election not to include operating leases with a lease term of twelve months or less.
ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are generally recognized at the commencement date based on the present value of discounted lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of discounted lease payments. The implicit rate is used when readily determinable. ROU assets also include any upfront lease payments and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.
The Company has lease agreements with lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs), which are generally accounted for separately; however, the Company accounts for the lease and non-lease components as a single lease component for certain leases. Certain lease agreements include variable rental payments adjusted periodically for inflation. Additionally, the Company applies a portfolio approach to effectively account for the ROU assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Goodwill
Goodwill represents the excess of the purchase price paid over the estimated fair value of the assets acquired and liabilities assumed in the acquisition of a business. Goodwill is not amortized and must be allocated at the reporting unit level, which is defined as an operating segment or one level below, and tested for impairment at least annually, or more frequently if an event occurs or circumstances change that would more likely than not, reduce the fair value of a reporting unit below its carrying value.
The Company’s goodwill is primarily associated with the acquisition of American Water by an affiliate of the Company’s previous owner in 2003 and has been allocated to reporting units based on the fair values at the date of the acquisitions. For purposes of testing goodwill for impairment, the reporting units in the Regulated Businesses segment are aggregated into a single reporting unit. The goodwill of Other is attributable to the MSG reporting unit.
The Company’s annual impairment testing is performed as of November 30 of each year. The Company assesses qualitative factors to determine whether quantitative testing is necessary. If it is determined, based upon qualitative factors, that the estimated fair value of a reporting unit is, more likely than not, greater than its carrying value, no further testing is required. If the Company bypasses the qualitative assessment or performs the qualitative assessment and determines that the estimated fair value of a reporting unit, is more likely than not, less than its carrying value, a quantitative, fair value-based assessment is performed. This quantitative testing compares the estimated fair value of the reporting unit to its respective net carrying value, including goodwill, on the measurement date. An impairment loss will be recognized in the amount equal to the excess of the reporting unit’s carrying value compared to its estimated fair value, limited to the total amount of goodwill allocated to that reporting unit.
Application of goodwill impairment testing requires management judgment, including the identification of reporting units and determining the fair value of reporting units. Management estimates fair value using a discounted cash flow analysis. Significant assumptions used in these fair value estimations include, but are not limited to, forecasts of future operating results, discount rate and growth rate.
The Company believes the assumptions and other considerations used to value goodwill to be appropriate, however, if actual experience differs from the assumptions and considerations used in its analysis, the resulting change could have a material adverse impact on the Consolidated Financial Statements. See Note 8—Goodwill for additional information.
Impairment of Long-Lived Assets
Long-lived assets, other than goodwill, primarily include property, plant and equipment. The Company evaluates long-lived assets for impairment when circumstances indicate the carrying value of those assets may not be recoverable. The Company determines if long-lived assets are potentially impaired by comparing the undiscounted expected future cash flows to the carrying value when indicators of impairment exist. When the undiscounted cash flow analysis indicates a long-lived asset may not be recoverable, the amount of the impairment loss is determined by measuring the excess of the carrying amount of the long-lived asset or asset group over its fair value.
The long-lived assets of the Company’s regulated utilities are grouped on a separate entity basis for impairment testing, as they are integrated state-wide operations that do not have the option to curtail service and generally have uniform utility tariffs. A regulatory asset is charged to earnings if and when future recovery in rates of that asset is no longer probable.
The Company believes the assumptions and other considerations used to value long-lived assets to be appropriate, however, if actual experience differs from the assumptions and considerations used in its estimates, the resulting change could have a material adverse impact on the Consolidated Financial Statements.
Advances for Construction and Contributions in Aid of Construction
Regulated utility subsidiaries may receive advances for construction and contributions in aid of construction from customers, home builders and real estate developers to fund construction necessary to extend service to new areas.
Advances are refundable for limited periods of time as new customers begin to receive service or other contractual obligations are fulfilled. Included in other current liabilities as of December 31, 2025 and 2024, on the Consolidated Balance Sheets are estimated refunds of $25 million and $21 million, respectively. These amounts represent expected refunds during the next 12-month period.
Advances that are no longer refundable are reclassified to contributions in aid of construction. Contributions in aid of construction are permanent collections of plant assets or cash for a particular construction project. For ratemaking purposes, the amount of such contributions generally serves as a rate base reduction since the contributions represent non-investor supplied funds.
Generally, the Company depreciates utility plant funded by contributions and amortizes its contributions in aid of construction balance as a reduction to depreciation expense, producing a result which is functionally equivalent to reducing the original cost of the utility plant for the contributions. In accordance with applicable regulatory guidelines, some of the Company’s utility subsidiaries do not amortize contributions in aid of construction, and any contribution received remains on the balance sheet indefinitely. Amortization of contributions in aid of construction was $50 million, $46 million and $40 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Revenue Recognition
Under ASC Topic 606, Revenue From Contracts With Customers, and all related amendments (collectively, “ASC 606”), a performance obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer. Revenue is recognized when performance obligations are satisfied and the customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for goods or services. Under ASC 606, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identifies the contracts with a customer; (ii) identifies the performance obligations within the contract, including whether any performance obligations are distinct and capable of being distinct in the context of the contract; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenue when, or as, the Company satisfies each performance obligation.
The Company’s revenues from contracts with customers are discussed below. Customer payments for contracts are generally due within 30 days of billing and none of the contracts with customers have payment terms that exceed one year; therefore, the Company elected to apply the significant financing component practical expedient and no amount of consideration has been allocated as a financing component.
Regulated Businesses Revenue
Revenue from the Company’s Regulated Businesses is generated primarily from water and wastewater services delivered to customers. These contracts contain a single performance obligation, the delivery of water and/or wastewater services, as the promise to transfer the individual good or service is not separately identifiable from other promises within the contracts and, therefore, is not distinct. Revenues are recognized over time, as services are provided. There are generally no significant financing components or variable consideration. Revenues include amounts billed to customers on a cycle basis and unbilled amounts calculated based on estimated usage from the date of the meter reading associated with the latest customer bill, to the end of the accounting period. The amounts that the Company has a right to invoice are determined by each customer’s actual usage, an indicator that the invoice amount corresponds directly to the value transferred to the customer.
The Company recognizes revenues for certain ratemaking mechanisms that meet the criteria for alternative revenue program accounting. These mechanisms, which include the Company’s revenue stability mechanisms, qualify as alternative revenue programs if they have been authorized for rate recovery, are objectively determinable and probable of recovery and are expected to be collected within 24 months following the end of the period in which they were recognized. For mechanisms that meet these criteria, the Company adjusts revenue and records an offsetting regulatory asset or liability once the condition or event allowing additional billing or refund has occurred. See Note 4—Revenue Recognition for disaggregated revenue information.
Other Revenue
The Company has long-term, fixed fee contracts to operate and maintain water and wastewater systems for the U.S. government on military installations and facilities owned by municipal customers. Billing and revenue recognition for the fixed fee revenues occurs ratably over the term of the contract, as customers simultaneously receive and consume the benefits provided by the Company. Additionally, these contracts allow the Company to make capital improvements to underlying infrastructure, which are initiated through separate modifications or amendments to the original contract, whereby stand-alone, fixed pricing is separately stated for each improvement. The Company has determined that these capital improvements are separate performance obligations, with revenue recognized over time based on performance completed at the end of each reporting period. Losses on contracts are recognized during the period in which the losses first become probable and estimable. Revenues recognized during the period in excess of billings on construction contracts are recorded as unbilled revenues or other long-term assets, with billings in excess of revenues recorded as other current or long-term liabilities until the revenue recognition criteria are met. Changes in contract performance and related estimated contract profitability may result in revisions to costs and revenues and are recognized in the period in which revisions are determined. See Note 4—Revenue Recognition for additional information.
Income Taxes
The Company and its subsidiaries participate in a consolidated federal income tax return for U.S. tax purposes. Members of the consolidated group are charged with the amount of federal income tax expense determined as if they filed separate returns.
Certain income and expense items are accounted for in different time periods for financial reporting than for income tax reporting purposes. The Company provides deferred income taxes on the difference between the tax basis of assets and liabilities and the amounts at which they are carried in the financial statements. These deferred income taxes are based on the enacted tax rates expected to be in effect when these temporary differences are projected to reverse. In addition, the regulated utility subsidiaries recognize regulatory assets and liabilities for the effect on revenues expected to be realized as the tax effects of temporary differences, previously flowed through to customers, reverse.
Investment tax credits have been deferred by the regulated utility subsidiaries and are being amortized to income over the average estimated service lives of the related assets.
The Company recognizes accrued interest and penalties related to tax positions as a component of income tax expense and accounts for sales tax collected from customers and remitted to taxing authorities on a net basis. See Note 14—Income Taxes for additional information.
Allowance for Funds Used During Construction
AFUDC is a non-cash credit to income with a corresponding charge to utility plant that represents the cost of borrowed funds or a return on equity funds devoted to plant under construction. The regulated utility subsidiaries record AFUDC to the extent permitted by the PUCs. The portion of AFUDC attributable to borrowed funds is shown as a reduction of interest expense in the Consolidated Statements of Operations. Any portion of AFUDC attributable to equity funds would be included in Other, net in the Consolidated Statements of Operations. Presented in the table below is AFUDC for the years ended December 31:
202520242023
Allowance for other funds used during construction$42 $38 $41 
Allowance for borrowed funds used during construction26 21 24 
Derivative Financial Instruments
The Company uses derivative financial instruments primarily for purposes of hedging exposures to fluctuations in interest rates. These derivative contracts are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. The Company does not enter into derivative contracts for speculative purposes and does not use leveraged instruments.
All derivatives are recognized on the balance sheet at fair value. On the date the derivative contract is entered into, the Company designates the derivative as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash-flow hedge).
The gains and losses on the effective portion of cash-flow hedges are recorded in other comprehensive income, until earnings are affected by the variability of cash flows. Any ineffective portion of designated cash-flow hedges is recognized in current-period earnings.
Cash flows from derivative contracts are included in net cash provided by operating activities on the Consolidated Statements of Cash Flows. See Note 11—Long-Term Debt for additional information.
Pension and Other Postretirement Benefits
The Company maintains defined benefit pension plans and other postretirement benefit plans for eligible employees and retirees. The plan obligation and costs of providing benefits under these plans are annually measured as of December 31. The measurement involves various factors, assumptions and accounting elections. The impact of assumption changes or experience different from that assumed on pension and other postretirement benefit obligations is recognized over time rather than immediately recognized in the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income. Cumulative gains and losses that are in excess of 10% of the greater of either the projected benefit obligation or the fair value of plan assets are amortized over the expected average remaining future service period of the current active membership for the plans, with the exception of the American Water Pension Plan for Certain Inactive Participants, which is amortized over the average remaining life expectancy of the inactive participants. See Note 15—Employee Benefits for additional information.
The Company’s policy is to recognize curtailments when the total expected future service of plan participants is reduced by greater than 10% due to an event that results in terminations and/or retirements.
New Accounting Standards
Presented in the table below are new accounting standards that were adopted by the Company in 2025:
StandardDescriptionDate of AdoptionApplicationEffect on the Consolidated Financial Statements
Income TaxesThe guidance in this standard requires disclosure of a tax rate reconciliation table, in both percentages and reporting currency amounts, which includes additional categories of information about federal, state, and foreign income taxes and provides further details about reconciling items in certain categories that meet a quantitative threshold. The guidance also requires an annual disclosure of income taxes paid, net of refunds, disaggregated by federal, state, and foreign taxes paid, and further disaggregated by jurisdiction based on a quantitative threshold. The standard includes other disclosure requirements and eliminates certain existing disclosure requirements.January 1, 2025Retrospective
The Company adopted the standard as of December 31, 2025, including a recast of 2024 and 2023 information, by including additional required disclosures within the Notes to the Consolidated Financial Statements. See Note 14—Income Taxes for further details.
Presented in the table below are recently issued accounting standards that have not yet been adopted by the Company as of December 31, 2025, recently issued accounting standards not presented below were determined to be not applicable, or not material, to the Company:
StandardDescriptionDate of AdoptionApplicationEffect on the Consolidated Financial Statements
Income Statement DisaggregationThe guidance in this standard enhances disclosures related to income statement expenses to further disaggregate expenses in the footnotes to the financial statements. The standard requires disaggregation of any relevant expense caption presented on the face of the income statement that contains the following expense categories: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion. Further, the standard requires disclosure of the total amount and the entity’s definition of selling expenses.Annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027Prospective, with retrospective application also permitted.The Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
Induced Conversions of Convertible Debt InstrumentsThe guidance in this standard clarifies the requirements for determining whether to account for certain settlements of convertible debt instruments as induced conversions or extinguishments. The guidance requires an entity to account for a settlement as an induced conversion if the inducement offer includes the issuance of all of the consideration issuable under the conversion privileges provided in the terms of the existing convertible debt instrument. Annual periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periodsProspective, with retrospective application also permitted.The Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
Accounting for Internal-Use SoftwareThe guidance in this standard removes all reference to prescriptive and sequential software development stages, requiring an entity to start capitalizing software costs when the following criteria are both met: (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. Further, the standard requires disclosure for all capitalized internal-use software costs and removes the requirement for intangibles disclosures for capitalized internal-use software.Annual periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periodsProspective, with a modified transition or retrospective application also permittedThe Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
Accounting for Government Grants Received by Business EntitiesIntroduces authoritative GAAP guidance for accounting and disclosure of government grants received by business entities, addressing the previous lack of specific guidance and reducing diversity in practice. The standard requires grants to be recognized when compliance with conditions is probable and receipt is likely, and allows presentation either as deferred income or as a reduction of related costs. Annual periods beginning after December 15, 2028 and interim reporting periods within those annual reporting periodsModified prospective, modified retrospective, or retrospective applications are permitted
The Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
Reclassifications
Certain reclassifications have been made to prior periods in the Consolidated Financial Statements and Notes to conform to the current presentation.
v3.25.4
Regulatory Matters
 12 Months Ended
Dec. 31, 2025
Regulated Operations [Abstract]  
Regulatory Matters
Note 3: Regulatory Matters
General Rate Cases
The table below summarizes the annualized incremental revenues, assuming a constant sales volume and customer count, resulting from general rate case authorizations that became effective during 2025. The amounts include reductions for the amortization of the excess accumulated deferred income taxes (“EADIT”) that are generally offset in income tax expense.
Effective DateAmount
General rate cases by state:
KentuckyDecember 16, 2025$18 
HawaiiAugust 1, 20251 
IowaAugust 1, 2025 (a)13 
MissouriMay 28, 202563 
Indiana, Step IncreaseMay 14, 202517 
VirginiaFebruary 24, 2025 (b)15 
TennesseeJanuary 21, 20251 
IllinoisJanuary 1, 2025105 
California, Step IncreaseJanuary 1, 202517 
Total general rate case authorizations$250 
(a)Interim rates of $5 million were effective May 11, 2024. The Iowa Utilities Commission issued its final order on May 21, 2025.
(b)Interim rates were effective May 1, 2024, and the difference between interim and final approved rates were subject to refund. The Virginia State Corporation Commission issued its final order on February 24, 2025.
The table below summarizes the annualized incremental revenues, assuming a constant sales volume and customer count, resulting from general rate case authorizations that became effective on or after January 1, 2026. The amounts include reductions for the amortization of EADIT that are generally offset in income tax expense.
Effective DateAmount
General rate cases by state:
California, Attrition IncreaseJanuary 1, 2026$14 
Total general rate case authorizations$14 
On December 16, 2025, the Kentucky Public Service Commission issued a final order approving the adjustment of base rates requested in a general rate case originally filed on May 16, 2025, by the Company’s Kentucky subsidiary. The final order approved an $18 million annualized increase in water system revenues, excluding infrastructure surcharges of $10 million, based on an authorized return on equity of 9.70%, authorized rate base of $667 million and a capital structure with a common equity component of 52.26% and a non-equity component of 47.74%. The final order also terminated the Kentucky subsidiary’s Qualified Infrastructure Program (“QIP”) rider and included the costs and investments of the QIP in approved base rates. The requested annualized revenue increase was driven primarily by approximately $212 million of capital investments completed and planned by the Kentucky subsidiary from February 2025 through December 2026. The new rates were effective as of December 16, 2025.
On July 24, 2025, the Hawaii Public Utilities Commission issued a final order adopting the settlement agreement filed by the Company’s Hawaii subsidiary on April 25, 2025, with respect to its general rate case filed on August 2, 2024. The final order approves an annualized increase of approximately $1 million in wastewater revenue, which is based on a return on equity of 9.75% and a capital structure with an equity component of 52.11% and a debt component of 47.89%. New rates were effective August 1, 2025.
On May 21, 2025, the Iowa Utilities Commission issued a final order approving the adjustment of base rates requested in a general rate case originally filed on May 1, 2024, by the Company’s Iowa subsidiary. The general rate case order approved a $13 million annualized increase in water and wastewater system revenues, excluding infrastructure surcharges of $1 million, based on an authorized return on equity of 9.60%, authorized rate base of $262 million, and a capital structure with a common equity component of 52.57% and a long-term debt component of 47.43%. The requested annualized revenue increase was driven primarily by over $157 million of capital investments made and expected to be made by the Iowa subsidiary through March 2026. Interim rates of $5 million were effective May 11, 2024, with the remaining increase in annualized water and wastewater system revenues of $8 million effective on August 1, 2025.
On May 14, 2025, the Company’s Indiana subsidiary’s third step increase of $17 million in annualized water and wastewater system revenues became effective. The Indiana subsidiary filed the general rate case on March 31, 2023, and on February 14, 2024, the Indiana Utility Regulatory Commission issued an order that approved a $65 million annualized increase in water and wastewater system revenues, excluding previously recovered infrastructure surcharges. The annualized revenue increase included three step increases, with $25 million of the increase included in rates in February 2024, $23 million in May 2024, and $17 million in May 2025.
On May 7, 2025, the Missouri Public Service Commission (the “MoPSC”) issued an order approving without modification the stipulation and agreement (the “Stipulation”) with respect to a general rate case filed on July 1, 2024, by the Company’s Missouri subsidiary. The Stipulation was entered into on March 17, 2025, with parties including the staff of the MoPSC and the Office of the Public Counsel. The general rate case order approves a $63 million annualized increase in water and wastewater revenues, excluding $63 million in infrastructure surcharges. The requested annualized revenue increase was driven primarily by $1.1 billion of capital investments completed by the Missouri subsidiary from January 2023 through May 2025. For purposes of the general rate case, the Missouri subsidiary’s view of its rate base is $3.2 billion, and its view as to its return on equity and common equity ratio (each of which has been determined based on the order but was not disclosed therein) is 9.75% and 50.00%, respectively. The new rates were effective May 28, 2025.
On February 24, 2025, the Virginia State Corporation Commission (the “SCC”) issued an order approving the September 19, 2024 joint “black box” settlement of the general rate case filed by the Company’s Virginia subsidiary. The general rate case order approves the stipulated $15 million annualized increase in water and wastewater revenues. Interim water and wastewater rates became effective May 1, 2024, with the difference between interim and final approved rates subject to refund. The requested annualized revenue increase was driven primarily by more than $110 million of incremental capital investments made between May 2023 and April 2025. For purposes of the general rate case, the Virginia subsidiary’s view of its rate base is $369 million. The general rate case order also approved, solely for purposes of the Virginia subsidiary’s future filings requiring a stated cost of capital and/or capital structure (including its annual information and water and wastewater infrastructure surcharge filings), a return on equity of 9.70% and a capital structure consisting of an equity component of 45.67% and a debt and other component of 54.33%, which also represents the Virginia subsidiary’s view of its return on equity and capital structure in this general rate case.
On January 21, 2025, the Tennessee Public Utility Commission (the “TPUC”) approved a motion authorizing an adjustment of water base rates requested in a rate case filed on May 1, 2024, by the Company’s Tennessee subsidiary. The TPUC approved an increase of $1 million in annualized revenues, excluding previously recovered infrastructure surcharges of $18 million, based on an authorized return on equity of 9.70%, authorized rate base of approximately $300 million, a common equity ratio of 44.19% and a debt ratio of 55.81%. This adjustment took effect on January 21, 2025, and is driven primarily by approximately $173 million in capital investments completed and planned by the Tennessee subsidiary through December 2025.
On January 14, 2025, the California Public Utilities Commission (the “CPUC”) granted the Company’s California subsidiary’s request for a one-year extension of its cost of capital filing to May 1, 2026, to set its authorized cost of capital beginning January 1, 2027, and maintain its current authorized cost of capital through 2026. On November 10, 2025, the California subsidiary submitted a request to further delay by one-year its cost of capital filing and maintain the authorized cost of capital through 2027. On November 18, 2025, the CPUC granted the request for a one-year extension of the cost of capital filing to May 1, 2027, to set its authorized cost of capital beginning January 1, 2028.
On December 5, 2024, the Illinois Commerce Commission (the “ICC”) issued a final order approving the adjustment of base rates requested in a rate case originally filed on January 25, 2024, by the Company’s Illinois subsidiary. The general rate case order approved an increase of $105 million in annualized water and wastewater system revenues, excluding previously recovered infrastructure surcharges of $5 million, based on an authorized return on equity of 9.84%, authorized rate base of $2.2 billion, and a capital structure with an equity component of 49.00% and a debt component of 51.00%. The increase was effective January 1, 2025, and is driven primarily by approximately $557 million in capital investments completed and planned by the Illinois subsidiary from January 2024 through December 2025.
On December 5, 2024, the CPUC approved a final decision adopting the terms of a partial settlement agreement filed on November 17, 2023, in the Company’s California subsidiary’s general rate case originally filed on July 1, 2022. Incorporating the then currently effective return on equity of 10.20%, the decision provides incremental annualized water and wastewater revenues of $21 million in the 2024 test year, and an estimated $16 million in the 2025 escalation year and $16 million in the 2026 attrition year. The 2024 rates were implemented retroactively to January 1, 2024. In addition, the CPUC denied the California subsidiary’s proposed Water Resources Sustainability Plan decoupling mechanism but approved continuation of its currently effective Annual Consumption Adjustment Mechanism. On December 12, 2024, the California subsidiary filed an application for rehearing of the CPUC’s denial of the proposed Water Resources Sustainability Plan decoupling mechanism, and on May 23, 2025, the CPUC issued its decision denying the application for rehearing. On September 19, 2025, the California subsidiary filed a petition to modify the CPUC order received on December 5, 2024, for its general rate case originally filed on July 1, 2022. The request seeks clarification from the CPUC on the method used to calculate the Conservation Adjustment for Rate Tier Designs (“CART”), specifically for the California subsidiary’s Monterey service area. The CART is a ratemaking mechanism that allows the Company to recover, in subsequent periods, a portion of the impact on operating revenues as a result of implementing customer rates structured to promote conservation usage. On October 20, 2025, the California Public Advocate submitted a response opposing the California subsidiary’s request and stating the request should instead be addressed in the California subsidiary’s pending base rate case. On October 30, 2025, the California subsidiary filed a reply to the California Public Advocate’s response which underscored the need for clarity on the CART calculation. The California subsidiary expects resolution of the petition to modify later in 2026.
Pending General Rate Case Filings
On January 27, 2026, the Company’s Illinois subsidiary filed a request with the ICC to adjust its water and wastewater rates. The filing seeks a two-step rate increase in aggregate annualized incremental revenue, based on a proposed return on equity of 10.75%, of (i) approximately $119 million effective January 1, 2027, based on a future test year through December 31, 2027 and a capital structure with an equity component of 52.42% and a debt component of 47.58%, and (ii) approximately $15 million effective January 1, 2028, based on a future test year to include end-of-period rate base and a capital structure with an equity component of 52.74% and a debt component of 47.26%, in each case, exclusive of infrastructure surcharges. The request is driven primarily by approximately $577 million in capital investments made and to be made by the Illinois subsidiary from January 2026 through December 2027. The request must be approved by the ICC.
On January 16, 2026, the Company’s New Jersey subsidiary filed a request with the New Jersey Board of Public Utilities (the “NJBPU”) to adjust its water and wastewater rates. The request seeks aggregate annualized incremental revenues of approximately $146 million and is based on a proposed return on equity of 10.75% and a capital structure with an equity component of 55.18% and a debt component of 44.82%. The requested annualized incremental revenue is driven primarily by more than $1.4 billion of capital investments completed and planned by the New Jersey subsidiary through December 2026. The filing is subject to the approval of the NJBPU.
On November 14, 2025, the Company’s Pennsylvania subsidiary filed a request with the Pennsylvania Public Utility Commission (the “PaPUC”) to adjust its water and wastewater rates. The request seeks aggregate annualized incremental revenue of approximately $169 million, excluding projected infrastructure surcharges of approximately $19 million. The request is based on a proposed return on equity of 10.95% and a capital structure with an equity component of 55.33%. The requested annualized incremental revenue is driven primarily by an estimated $1.2 billion of capital investments completed or planned to be completed from June 2025 through mid-2027. The rate request is subject to approval by the PaPUC, and new rates would be expected to take effect in August 2026.
On November 3, 2025, the Company’s Virginia subsidiary filed a request with the SCC to adjust its water and wastewater rates. The request seeks aggregate annualized incremental revenues of approximately $22 million and is based on a proposed return on equity of 10.75% and a capital structure with an equity component of 51.79%. The requested annualized incremental revenue is driven primarily by more than $115 million of capital investments completed and planned by the Virginia subsidiary from May 2025 through April 2027. The filing is subject to the approval of the SCC. Interim rates will be effective May 2, 2026, with the difference between interim and final approved rates subject to refund to customers.
On August 1, 2025, the Company’s Maryland subsidiary filed a general rate case requesting approximately $3 million in annualized incremental revenues, which is based on a proposed return on equity of 10.64% and a capital structure with an equity component of 52.32%. The requested annualized incremental revenue is driven primarily by approximately $22 million of capital investments completed by the Maryland subsidiary from February 2019 through April 2025. The filing must be approved by the Public Service Commission of Maryland, and if approved, it is anticipated that new rates would take effect in March 2026.
On July 1, 2025, the Company’s California subsidiary filed an application with the CPUC to set new water and wastewater rates in each of its service areas for 2027 through 2029. On October 13, 2025, the California subsidiary filed its 100 day update for the same proceeding and updated the request to $62 million compared to authorized 2025 revenue, and a total increase in revenue over the 2027 to 2029 period of $110 million. Subsequent to the filing of the update, the California subsidiary adjusted its authorized rates effective January 1, 2026, which revised its net increase proposed for the test year 2027 to $51 million above 2026 expected revenues. The requested annualized incremental revenue is driven primarily by approximately $750 million of capital investments completed and planned by the California subsidiary through 2025 to 2028. If approved by the CPUC, the new rates would take effect on January 1, 2027. The application also requests approval of a Fixed Cost Recovery Account, which is intended to be a full decoupling mechanism that would allow the California subsidiary to recover authorized fixed costs, regardless of sales volume, while also providing incentives, via progressive conservation-oriented rate design, for customers to use water more efficiently.
On May 5, 2025, the Company’s West Virginia subsidiary filed a general rate case requesting approximately $48 million in aggregate annualized incremental revenues, excluding infrastructure surcharges of $13 million, which would include two step increases, with $33 million to be included in rates in March 2026, and $15 million to be included in rates in March 2027. The request is based on a proposed return on equity of 10.75% and a capital structure with an equity component of 50.80% and 50.97%, respectively, for each of the two steps. The requested annualized incremental revenue is driven primarily by more than $300 million of capital investments completed and planned by the West Virginia subsidiary from March 2024 through February 2027. The request is subject to approval by the Public Service Commission of West Virginia, and the general rate case is expected to be completed by the end of February 2026.
Infrastructure Surcharges
A number of states have authorized the use of regulatory mechanisms that permit rates to be adjusted outside of a general rate case for certain costs and investments, such as infrastructure surcharge mechanisms that permit recovery of capital investments to replace aging infrastructure. Presented in the table below are annualized incremental revenues, assuming a constant sales volume and customer count, resulting from infrastructure surcharge authorizations that became effective during 2025:
Effective DateAmount
Infrastructure surcharges by state:
New JerseyNovember 29, 2025$26 
PennsylvaniaOctober 1, 20255 
New JerseyMay 30, 202515 
MissouriFebruary 7, 202517 
KentuckyJanuary 1, 20252 
West VirginiaJanuary 1, 20254 
Total infrastructure surcharge authorizations$69 
Presented in the table below are annualized incremental revenues, assuming a constant sales volume and customer count, resulting from infrastructure surcharge authorizations that became effective on or after January 1, 2026:
Effective DateAmount
Infrastructure surcharge filings by state:
PennsylvaniaJanuary 1, 2026$11 
IllinoisJanuary 1, 20265 
Total infrastructure surcharge filings$16 
Pending Infrastructure Surcharge Filings
On January 20, 2026, the Company’s Indiana subsidiary filed an infrastructure surcharge proceeding requesting $15 million in additional annualized revenues.
On September 3, 2025, the Company’s Missouri subsidiary filed an infrastructure surcharge proceeding requesting $13 million in additional annualized revenues.
On June 30, 2025, the Company’s West Virginia subsidiary filed an infrastructure surcharge proceeding requesting $3 million in additional annualized revenues.
Other Regulatory Matters
The PaPUC, as part of its July 22, 2024 approval of the general rate case filed by the Company’s Pennsylvania subsidiary on November 8, 2023, initiated an investigation into certain reported water service and water quality issues in the Pennsylvania subsidiary’s Northeastern service territory, which reports had been provided during public input hearings convened in the general rate case. The PaPUC concluded the investigation and issued a Root Cause Analysis Report on August 5, 2025, which found no systemic issues affecting the Pennsylvania subsidiary’s water service in the Northeastern service territory and expressed satisfaction with the Pennsylvania subsidiary’s efforts to manage water service matters. The PaPUC committed to continued monitoring of the Pennsylvania subsidiary’s service over the next three years.
Regulatory Assets
Regulatory assets represent costs that are probable of recovery from customers in future rates. Approximately 50% of the Company’s total regulatory asset balance at December 31, 2025, earns a return. Presented in the table below is the composition of regulatory assets as of December 31:
20252024
Removal costs recoverable through rates$323 $356 
Deferred pension expense276 318 
Customer lead line replacements80 86 
Unamortized debt expense84 84 
Regulatory balancing accounts65 71 
Programmed maintenance expense60 57 
Purchase premium recoverable through rates49 50 
Other195 128 
Total (non-current) regulatory assets1,132 1,150 
Current regulatory assets (a)22 19 
Total regulatory assets$1,154 $1,169 
(a)Current regulatory assets are included in other current assets on the Consolidated Balance Sheets.
Removal costs recoverable through rates represent costs incurred for removal of property, plant and equipment or other retirement costs.
The Company’s deferred pension expense includes a portion of the underfunded status that is probable of recovery through rates in future periods of $261 million and $304 million as of December 31, 2025 and 2024, respectively. The remaining portion is the pension expense in excess of authorized amounts which is deferred by certain subsidiaries and probable of recovery in future service rates.
Customer lead line replacements are the costs incurred to replace customer owned lead service lines. Costs are recovered through a customer’s surcharge or through base rates, depending on the jurisdiction.
Unamortized debt expense is amortized over the lives of the respective issues. Call premiums on the redemption of long-term debt, as well as unamortized debt issuance costs, are deferred and amortized to the extent they will be recovered through future service rates.
Regulatory balancing accounts accumulate differences between revenues recognized and authorized revenue requirements until they are collected from customers or are refunded. Regulatory balancing accounts include low income programs, purchased power and water accounts, dam removal costs and other cost balancing mechanisms.
Programmed maintenance expense are costs incurred to inspect or paint water tanks and are amortized on a straight line basis over a period determined by each state regulator.
Purchase premiums recoverable through rates are being recovered over periods up to 40 years.
Other regulatory assets include depreciation related costs, property tax stabilization, employee-related costs, business services project expenses, coastal water project costs, service enhancement costs, rate case expenditures and environmental remediation costs among others. These costs are deferred because the amounts are being recovered in rates or are probable of recovery through rates in future periods.
Regulatory Liabilities
Regulatory liabilities generally represent amounts that are probable of being credited or refunded to customers through the rate making process. Also, if costs expected to be incurred in the future are currently being recovered through rates, the Company records those expected future costs as regulatory liabilities. Presented in the table below is the composition of regulatory liabilities as of December 31:
20252024
Income taxes recovered through rates$959 $1,016 
Removal costs recovered through rates248 245 
PFAS Multi-district litigation settlements91 — 
Postretirement benefit liability43 71 
Other75 84 
Total (non-current) regulatory liabilities1,416 1,416 
Current regulatory liabilities (a)24 — 
Total regulatory liabilities$1,440 $1,416 
(a)Current regulatory liabilities, which as of December 31, 2025, primarily consisted of PFAS Multi-district litigation settlements, are included in other current liabilities on the Consolidated Balance Sheets.
Income taxes recovered through rates relate to deferred taxes that will be refunded to the Company’s customers. The enactment of the Tax Cuts and Jobs Act of 2017 required a re-measurement of the Company’s deferred income taxes. The portion of this re-measurement related to the Regulated Businesses was substantially offset by a regulatory liability as EADIT which will be used to benefit its regulated customers in future rates. All of the Company’s regulated subsidiaries are amortizing EADIT and crediting customers.
Removal costs recovered through rates are estimated costs to retire assets at the end of their expected useful lives that are recovered through customer rates over the lives of the associated assets.
PFAS Multi-district litigation settlements represent payments from litigation related to certain per- and polyfluoroalkyl substances (collectively, “PFAS”) the Company has received that the Company intends to pass back to customers, subject to regulatory approval from the PUCs. See Note 16—Commitments and Contingencies for additional information.
Postretirement benefit liability includes a portion of the over-funded status that is probable of refund through rates in future periods. The remaining portion represents prior service credits resulting from announced plan amendments which changed benefits for certain union and non-union plan participants.
Other regulatory liabilities include the pension and other postretirement benefit balancing accounts, legal settlement proceeds, deferred gains, refunds to customers related to tax overpayments, and various regulatory balancing accounts.
v3.25.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 4: Revenue Recognition
Disaggregated Revenues
Presented in the table below are operating revenues disaggregated for the year ended December 31, 2025:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services: 
Residential$2,557 $— $2,557 
Commercial981 — 981 
Fire service189 — 189 
Industrial195 — 195 
Public and other311 — 311 
Total water services4,233 — 4,233 
Wastewater services: 
Residential287 — 287 
Commercial86 — 86 
Industrial10 — 10 
Public and other39 — 39 
Total wastewater services422 — 422 
Miscellaneous utility charges49 — 49 
Alternative revenue programs— 12 12 
Lease contract revenue— 7 7 
Total Regulated Businesses4,704 19 4,723 
Other417 — 417 
Total operating revenues$5,121 $19 $5,140 
(a)Includes revenues associated with 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 year ended December 31, 2024:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services: 
Residential$2,344 $5 $2,349 
Commercial881 4 885 
Fire service164 — 164 
Industrial182 2 184 
Public and other291 — 291 
Total water services3,862 11 3,873 
Wastewater services:
Residential243 2 245 
Commercial70 — 70 
Industrial12 — 12 
Public and other36 — 36 
Total wastewater services361 2 363 
Miscellaneous utility charges42 — 42 
Alternative revenue programs— 10 10 
Lease contract revenue— 8 8 
Total Regulated Businesses4,265 31 4,296 
Other388 — 388 
Total operating revenues$4,653 $31 $4,684 
(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 year ended December 31, 2023:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services: 
Residential$2,143 $— $2,143 
Commercial798 — 798 
Fire service158 — 158 
Industrial167 — 167 
Public and other274 — 274 
Total water services3,540 — 3,540 
Wastewater services:
Residential228 — 228 
Commercial62 — 62 
Industrial8 — 8 
Public and other29 — 29 
Total wastewater services327 — 327 
Miscellaneous utility charges35 — 35 
Alternative revenue programs— 10 10 
Lease contract revenue— 8 8 
Total Regulated Businesses3,902 18 3,920 
Other315 (1)314 
Total operating revenues$4,217 $17 $4,234 
(a)Includes revenues associated with 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 MSG, 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 $171 million, $84 million and $95 million are included in unbilled revenues on the Consolidated Balance Sheets as of December 31, 2025, 2024 and 2023, respectively. Also, contract assets of $5 million and $39 million are included in other long-term assets on the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively, and there were no contract assets in other long-term assets on the Consolidated Balance Sheets as of December 31, 2023. There were $175 million of contract assets added during 2025, and $122 million of contract assets were transferred to accounts receivable during 2025. There were $114 million of contract assets added during 2024, and $86 million of contract assets were transferred to accounts receivable during 2024.
Contract liabilities of $19 million, $40 million and $63 million are included in other current liabilities on the Consolidated Balance Sheets as of December 31, 2025, 2024 and 2023, respectively. Also, contract liabilities of $19 million and $14 million are included in other long-term liabilities on the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively, and there were no contract liabilities in other long-term liabilities on the Consolidated Balance Sheets as of December 31, 2023. There were $88 million of contract liabilities added during 2025, and $104 million of contract liabilities were recognized as revenue during 2025. There were $83 million of contract liabilities added during 2024, and $92 million of contract liabilities were recognized as revenue during 2024.
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 December 31, 2025, the Company’s O&M and capital improvement contracts have RPOs. Contracts with the U.S. government for work on military installations expire between 2051 and 2073 and have RPOs of $7.4 billion as of December 31, 2025, 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 2031 and 2038 and have RPOs of $508 million as of December 31, 2025, as measured by estimated remaining contract revenue.
v3.25.4
Mergers, Acquisitions and Divestitures
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Mergers, Acquisitions and Divestitures
Note 5: Mergers, Acquisitions and Divestitures
Agreement and Plan of Merger with Essential Utilities, Inc.
On October 26, 2025, parent company entered into an Agreement and Plan of Merger (the “Essential Merger Agreement”) with Essential Utilities, Inc. (“Essential”) to combine the two companies in a stock-for-stock transaction. The Essential Merger Agreement provides that, upon the completion of the proposed merger, Essential’s shareholders will receive 0.305 shares of parent company common stock in exchange for each share of Essential common stock eligible for exchange in the merger. Upon completion of the proposed merger, Essential will be a wholly owned subsidiary of parent company, and parent company will retain its existing name and remain headquartered in Camden, New Jersey. The Company will continue to maintain substantial operations in Pennsylvania, including Essential’s offices in Bryn Mawr, Pennsylvania, and Pittsburgh, Pennsylvania.
Completion of the proposed merger is subject to certain customary conditions, including, among others, the receipt of required approvals from all applicable public utility commissions on such terms and conditions that would not, individually or in the aggregate, result in a Burdensome Effect (as defined in the Essential Merger Agreement), and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. There can be no guarantee that all of the closing conditions and approvals will be satisfied, and the failure to complete the proposed merger on a timely basis or at all may adversely affect the Company’s financial condition and results of operations. The Company currently estimates that the closing of the proposed merger will occur by the end of the first quarter of 2027. For the year ended December 31, 2025, $13 million of merger related costs were included in Operation and maintenance expense in the Consolidated Statements of Operations.
Acquisitions - Regulated Businesses
During 2025, the Company closed on 18 acquisitions of various regulated water and wastewater systems for a total aggregate purchase price of $83 million, of which $81 million was funded in 2025, and which acquisitions added approximately 20,900 water and wastewater customers. This includes the Company’s acquisition of the Audubon Water Company effective May 28, 2025, for a total consideration of $7 million, in the form of 48,381 shares of parent company common stock, net of an indemnity escrow claim, and the Company’s acquisition of Appalachian Utilities Inc. effective October 27, 2025, for a total consideration of $4 million, in the form of 25,159 shares of parent company common stock. Assets acquired from all 2025 acquisitions, principally utility plant, totaled $107 million and liabilities assumed totaled $36 million, including assumed debt of $12 million. The Company recorded goodwill of $12 million associated with six of its acquisitions, which is reported in the Company’s Regulated Businesses segment. Eight of these acquisitions were accounted for as business combinations. The preliminary purchase price allocations related to acquisitions accounted for as business combinations will be finalized once the valuation of assets acquired has been completed, no later than one year after their respective acquisition date.
During 2024, the Company closed on 13 acquisitions of various regulated water and wastewater systems for a total aggregate purchase price of $417 million, of which $415 million was funded in 2024, adding approximately 69,500 water and wastewater customers. Assets acquired from all 2024 acquisitions, principally utility plant, totaled $426 million and liabilities assumed totaled $10 million. The Company also recorded goodwill of $1 million. Seven of these acquisitions were accounted for as business combinations.
The pro forma impact of the Company’s business combinations was not material to the Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023.
Secured Seller Promissory Note from the Sale of Homeowner Services Group
On December 9, 2021, the Company sold all of the equity interests in subsidiaries that comprised HOS to a wholly owned subsidiary (the “Buyer”) of funds advised by Apax Partners LLP, a global private equity advisory firm, for total consideration of approximately $1.275 billion. The consideration at closing was comprised of $480 million in cash, a secured seller note payable in cash and issued by the Buyer in the principal amount of $720 million, with an interest rate of 7.00% per year, and a contingent cash payment of $75 million payable upon satisfaction of certain conditions on or before December 31, 2023.
On February 2, 2024, this note was amended to increase the principal amount from $720 million to $795 million, in full satisfaction of the $75 million contingent cash payment payable under the HOS sale agreement. In addition, the interest rate payable on the secured seller note increased from 7.00% per year to 10.00% per year until maturity. As of December 31, 2025, this note was included as a current asset on the Consolidated Balance Sheets. The Company recognized $80 million, $77 million, and $50 million of interest income during the years ended December 31, 2025, 2024 and 2023, respectively, from this note. On February 13, 2026, the Company received payment of all amounts payable under the secured seller promissory note in full satisfaction of the Buyer’s obligations thereunder.
v3.25.4
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Note 6: Property, Plant and Equipment
Presented in the table below are the major classes of property, plant and equipment by category as of December 31:
20252024Range of Remaining Useful LivesWeighted Average Useful Life
Utility plant:    
Land and other non-depreciable assets$317 $302   
Sources of supply1,252 1,124 
20 to 114 years
45 years
Treatment and pumping5,093 4,786 
2 to 119 years
40 years
Transmission and distribution15,807 14,745 
15 to 128 years
65 years
Services, meters and fire hydrants7,046 6,356 
2 to 109 years
28 years
General structures and equipment3,116 2,813 
2 to 109 years
16 years
Waste collection2,124 1,986 
5 to 145 years
52 years
Waste treatment, pumping and disposal1,530 1,425 
4 to 165 years
32 years
Construction work in progress1,548 1,359   
Other plant19 22 
1 to 54 years
18 years
Total utility plant37,852 34,918   
Nonutility property103 141 
3 to 50 years
16 years
Total property, plant and equipment$37,955 $35,059   
Property, plant and equipment depreciation expense amounted to $776 million, $690 million and $617 million for the years ended December 31, 2025, 2024 and 2023, respectively, and was included in Depreciation and amortization expense in the Consolidated Statements of Operations. The provision for depreciation expressed as a percentage of the aggregate average depreciable asset balances was 2.82%, 2.73% and 2.68% for the years ended December 31, 2025, 2024 and 2023, respectively. Additionally, the Company had capital expenditures acquired on account but unpaid of $350 million and $347 million included in accrued liabilities on the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively.
In connection with the Company’s capital investment in its corporate headquarters in Camden, New Jersey, the New Jersey Economic Development Authority (“NJEDA”) determined that the Company was qualified to receive $161 million in tax credits over a 10-year period commencing in 2019.
The Company is required to meet various annual requirements, including the maintenance of qualified full-time positions at the qualified business facility, in order to monetize one-tenth of the tax credits annually and is subject to a claw-back period if the Company does not meet certain NJEDA requirements of the tax credit program in years 11 through 15.
In October 2025, the NJEDA issued to the Company the utilization certificate for the 2023 tax credits in the amount of $15 million. In December and January 2024, the NJEDA issued to the Company the utilization certificates for the 2022 and 2021 tax credits in the amount of $15 million and $16 million, respectively. For the years ended December 31, 2025, 2024 and 2023, the Company recorded losses of $1 million, $2 million and $1 million, respectively, to Other income (expense) in the Consolidated Statements of Operations from the sale of tax credits to an external party. As of December 31, 2025, the Company had current assets of $15 million included in Other and $64 million of long-term assets included in Other on the Consolidated Balance Sheets for the 2024 through 2028 tax credits. As of December 31, 2024, the Company had no current assets and $90 million of long-term assets included in Other on the Consolidated Balance Sheets for the 2023 through 2028 tax credits. The Company has made the necessary annual filing for the year ended December 31, 2024, and expects to make the 2025 filing in April 2026, prior to the required filing deadline. The submitted filing is under review by the NJEDA and it is expected that the Company will receive final NJEDA approval and monetize the 2024 tax credits in 2026.
v3.25.4
Allowance for Uncollectible Accounts
 12 Months Ended
Dec. 31, 2025
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]  
Allowance for Uncollectible Accounts
Note 7: Allowance for Uncollectible Accounts
Presented in the table below are the changes in the allowances for uncollectible accounts for the years ended December 31:
202520242023
Balance as of January 1$(53)$(51)$(60)
Amounts charged to expense(48)(31)(24)
Amounts written off43 29 33 
Balance as of December 31$(58)$(53)$(51)
v3.25.4
Goodwill
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
Note 8: Goodwill
Goodwill
Presented in the table below are the changes in the carrying value of goodwill for the years ended December 31, 2025 and 2024:
 Regulated BusinessesOtherConsolidated
CostAccumulated ImpairmentCostAccumulated ImpairmentCostAccumulated ImpairmentTotal Net
Balance as of January 1, 2024$3,470 $(2,332)$113 $(108)$3,583 $(2,440)$1,143 
Goodwill from acquisitions1 — — — 1 — 1 
Balance as of December 31, 2024$3,471 $(2,332)$113 $(108)$3,584 $(2,440)$1,144 
Goodwill from acquisitions12 — — — 12 — 12 
Balance as of December 31, 2025$3,483 $(2,332)$113 $(108)$3,596 $(2,440)$1,156 
The Company completed its annual impairment testing of goodwill as of November 30, 2025, which included qualitative assessments of its Regulated Businesses and MSG reporting units. Based on these assessments, the Company determined that there were no factors present that would indicate that the fair value of these reporting units was less than their respective carrying values as of November 30, 2025.
In 2025, the Company acquired goodwill of $12 million associated with six of its acquisitions in the Regulated Businesses segment. In 2024, the Company acquired goodwill of $1 million associated with one of its acquisitions in the Regulated Businesses segment.
v3.25.4
Shareholders' Equity
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Shareholders' Equity
Note 9: Shareholders’ Equity
Equity Forward Sale Agreements
In August 2025, the Company entered into separate forward sale agreements (the “Forward Sale Agreements”) with several forward purchasers relating to an aggregate of 8,098,592 shares of the Company’s common stock at an initial forward price of $139.657 per share, which is equal to the price to public per share less an underwriting discount. Each Forward Sale Agreement will be physically settled unless the Company elects to settle such Forward Sale Agreement in cash or to net share settle such Forward Sale Agreement (which the Company has the right to do, subject to certain conditions, other than in the limited circumstances set forth in the Forward Sale Agreements). The Forward Sale Agreements provide for settlement on a settlement date or dates to be specified at the Company’s discretion on or prior to December 31, 2026. To the extent the Forward Sale Agreements are physically settled, the Company will issue common stock to the forward purchasers and receive cash proceeds based on the applicable forward sale price on the settlement date as defined in the Forward Sale Agreements.
As of December 31, 2025, the Company did not receive any proceeds from the sale of its common stock connected to the Forward Sale Agreements. The Company estimates that it will receive total net proceeds of approximately $1,131 million, before deducting estimated offering expenses, subject to the price adjustment and other provisions of the Forward Sale Agreements, in the event of full physical settlement of all of the Forward Sale Agreements. The Company intends to use any net cash proceeds that it may receive upon a settlement of the Forward Sale Agreements for general corporate purposes. The Forward Sale Agreements will be classified as equity transactions because they are indexed to the Company’s common stock and physical settlement is within the Company’s control.
Dividend Reinvestment and Direct Stock Purchase Plan
Under the Company’s dividend reinvestment and direct stock purchase plan (the “DRIP”), shareholders may reinvest cash common stock dividends and purchase additional shares of Company common stock, up to certain limits, through the plan administrator without paying brokerage commissions. Shares purchased by participants through the DRIP may be newly issued shares, treasury shares, or at the Company’s election, shares purchased by the plan administrator in the open market or in privately negotiated transactions. Purchases generally will be made and credited to DRIP accounts once each week. As of December 31, 2025, there were approximately 4.1 million shares available for future issuance under the DRIP.
Anti-dilutive Stock Repurchase Program
In February 2015, the Company’s Board of Directors authorized an anti-dilutive stock repurchase program, which allows the Company to purchase up to 10 million shares of its outstanding common stock from time to time over an unrestricted period of time. The Company did not repurchase shares of common stock during the years ended December 31, 2025, 2024 or 2023. As of December 31, 2025, there were 5.1 million shares of common stock available for purchase under the program.
Accumulated Other Comprehensive Loss
Presented in the table below are the changes in accumulated other comprehensive loss by component, net of tax, for the years ended December 31, 2025, 2024 and 2023:
 Defined Benefit PlansGain (Loss) on Cash Flow HedgeGain (Loss) on Fixed-Income SecuritiesAccumulated Other Comprehensive Income (Loss)
Employee Benefit Plan Funded StatusAmortization of Prior Service CostAmortization of Actuarial Loss
Beginning balance as of January 1, 2023$(93)$1 $70 $(1)$— $(23)
Other comprehensive (loss) income before reclassification(3)— — (8)4 (7)
Amounts reclassified from accumulated other comprehensive income— — 4 — — 4 
Net other comprehensive (loss) income(3)— 4 (8)4 (3)
Ending balance as of December 31, 2023$(96)$1 $74 $(9)$4 $(26)
Other comprehensive income (loss) before reclassification1 — — 39 (2)38 
Net other comprehensive income (loss)1 — — 39 (2)38 
Ending balance as of December 31, 2024$(95)$1 $74 $30 $2 $12 
Other comprehensive (loss) income before reclassification— — — (4)1 (3)
Amounts reclassified from accumulated other comprehensive income (loss)— — 1 — (4)(3)
Net other comprehensive income (loss)— — 1 (4)(3)(6)
Ending balance as of December 31, 2025$(95)$1 $75 $26 $(1)$6 
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. See Note 15—Employee Benefits for additional information.
The amortization of the gain (loss) on cash flow hedges is reclassified to net income during the period incurred and is included in Interest expense in the accompanying Consolidated Statements of Operations.
An unrealized gain (loss) on available-for-sale fixed-income securities is reclassified to net income upon sale of the securities as a realized gain or loss and is included in Other, net in the accompanying Consolidated Statements of Operations.
Dividends and Distributions
The Company’s Board of Directors authorizes the payment of dividends. The Company’s ability to pay dividends on its common stock is subject to having access to sufficient sources of liquidity, net income and cash flows of the Company’s subsidiaries, the receipt of dividends and direct and indirect distributions from, and repayments of indebtedness of, the Company’s subsidiaries, compliance with Delaware corporate and other laws, compliance with the contractual provisions of debt and other agreements and other factors.
The Company’s dividend rate on its common stock is determined by the Board of Directors on a quarterly basis and takes into consideration, among other factors, current and possible future developments that may affect the Company’s income and cash flows. When dividends on common stock are declared, they are typically paid in March, June, September and December. Historically, dividends have been paid quarterly to holders of record as of a date less than 30 days prior to the distribution date. Since the dividends on the Company’s common stock are not cumulative, only declared dividends are paid.
During 2025, 2024 and 2023, the Company paid $633 million, $585 million and $532 million in cash dividends, respectively. Presented in the table below is the per share cash dividends paid for the years ended December 31:
202520242023
December$0.8275 $0.7650 $0.7075 
September$0.8275 $0.7650 $0.7075 
June$0.8275 $0.7650 $0.7075 
March$0.7650 $0.7075 $0.6550 
On December 5, 2025, the Company’s Board of Directors declared a quarterly cash dividend payment of $0.8275 per share payable on March 3, 2026, to shareholders of record as of February 10, 2026.
Under applicable law, the Company’s subsidiaries may pay dividends on their capital stock or other equity only from retained, undistributed or current earnings. A significant loss recorded at a subsidiary may limit the amount of the dividend that the subsidiary can pay. The ability of the Company’s subsidiaries to pay upstream dividends, make other upstream distributions or repay indebtedness to parent company or AWCC, as applicable, is subject to compliance with applicable corporate, tax and other laws, regulatory restrictions and financial and other contractual obligations, including, for example, (i) regulatory capital, surplus or net worth requirements, (ii) outstanding debt service obligations, (iii) requirements to make preferred and preference stock dividend payments, and (iv) other contractual agreements, covenants or obligations made or entered into by the Company and its subsidiaries.
Regulatory Restrictions on Indebtedness
The issuance of long-term debt or equity securities by the Company or long-term debt by AWCC does not require authorization of any state PUC if no guarantee or pledge of the regulated subsidiaries is utilized. Based on the needs of the Regulated Businesses and parent company, AWCC may borrow funds or issue its debt in the capital markets and then, through intercompany loans, provide these borrowings to the Regulated Businesses or parent company. PUC authorization is generally required for the regulated subsidiaries to incur long-term debt. The Company’s regulated subsidiaries normally obtain these required PUC authorizations on a periodic basis to cover their anticipated financing needs for a period of time, or, as necessary, in connection with a specific financing or refinancing of debt.
v3.25.4
Stock Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock Based Compensation
Note 10: Stock Based Compensation
The Company has granted stock units, stock awards and dividend equivalents to non-employee directors, officers and employees pursuant to the terms of the 2017 Omnibus Equity Compensation Plan (the “2017 Omnibus Plan”), approved by the Company’s shareholders in May 2017. Stock units under the 2017 Omnibus Plan generally vest based on (i) continued employment with the Company (“RSUs”), or (ii) continued employment with the Company where distribution of the shares is subject to the satisfaction in whole or in part of stated performance-based goals (“PSUs”). A total of 7.2 million shares of common stock may be issued under the 2017 Omnibus Plan. As of December 31, 2025, 5.7 million shares were available for grant under the 2017 Omnibus Plan. The 2017 Omnibus Plan provides that grants of awards may be in any of the following forms: incentive stock options, nonqualified stock options, stock appreciation rights, stock units, stock awards, other stock-based awards and dividend equivalents. Dividend equivalents may be granted only on stock units or other stock-based awards. The 2017 Omnibus Plan expires in 2027.
The Company had granted stock options, stock units, including RSUs and PSUs, and dividend equivalents to non-employee directors, officers and other key employees of the Company under its 2007 Omnibus Equity Compensation Plan (the “2007 Plan”). The 2007 Plan has been replaced by the 2017 Omnibus Plan, as defined above, and no additional awards may be granted under the 2007 Plan. However, shares may still be issued under the 2007 Plan pursuant to the terms of awards previously issued under that plan prior to May 12, 2017.
The cost of services received from employees in exchange for the issuance of restricted stock awards is measured based on the grant date fair value of the awards issued. The value of stock unit awards at the date of the grant is amortized through expense over the requisite service period. All awards granted in 2025, 2024 and 2023 are classified as equity. The Company recognizes compensation expense for stock awards over the vesting period of the award. The Company stratified its grant populations and used historic employee turnover rates to estimate employee forfeitures. The estimated rate is compared to the actual forfeitures at the end of the reporting period and adjusted as necessary. There have been no significant adjustments to the forfeiture rates during 2025, 2024 and 2023. There were no grants of stock options to employees after 2016, and there were no stock options outstanding as of December 31, 2022. Presented in the table below is the stock-based compensation expense recorded in O&M expense in the accompanying Consolidated Statements of Operations for the years ended December 31:
202520242023
RSUs and PSUs$30 $34 $23 
Nonqualified employee stock purchase plan2 2 2 
Stock-based compensation32 36 25 
Income tax benefit(7)(8)(6)
Stock-based compensation expense, net of tax$25 $28 $19 
There were no significant stock-based compensation costs capitalized during the years ended December 31, 2025, 2024 and 2023.
Subject to limitations on deductibility imposed by the Internal Revenue Code of 1986, as amended, the Company receives a tax deduction based on the intrinsic value of the award at the exercise date for stock options and the distribution date for stock units. For each award, throughout the requisite service period, the Company records the tax impacts related to compensation costs as deferred income tax assets. The tax deductions in excess of the deferred benefits recorded throughout the requisite service period are recorded to the Consolidated Statements of Operations and are presented in the financing section of the Consolidated Statements of Cash Flows.
Stock Units
During 2025, 2024 and 2023, the Company granted RSUs to certain employees under the 2017 Omnibus Plan. RSUs generally vest based on continued employment with the Company over periods ranging from one to three years. The RSUs are valued at the closing price of the Company’s common stock on the date of the grant and the majority vest ratably over a three-year service period. These RSUs are amortized through expense over the requisite service period using the straight-line method.
During 2025, 2024 and 2023, the Company granted stock units to non-employee directors under the 2017 Omnibus Plan. The stock units were vested in full on the date of grant. Prior to 2024, distribution of the shares was made within 30 days of the earlier of (i) 15 months after the date of the last annual meeting of shareholders, subject to any deferral election by the director, or (ii) the participant’s separation from service. Shares of common stock are currently distributed within 30 days after the date of grant. Because these stock units vested on the grant date, the total grant date fair value was recorded in operation and maintenance expense on the grant date.
The grant date fair value of RSUs granted to certain employees and stock units granted to non-employee directors totaled $12 million, $10 million and $9 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Presented in the table below is RSU and director stock unit activity for the year ended December 31, 2025:
Shares (in thousands)Weighted Average Grant Date Fair Value (per share)
Non-vested total as of December 31, 202475 $131.20 
Granted95 129.42 
Vested(60)133.39 
Forfeited(11)127.01 
Non-vested total as of December 31, 202599 $128.63 
As of December 31, 2025, $6 million of total unrecognized compensation cost related to the non-vested RSUs is expected to be recognized over the weighted average remaining life of 1.62 years. The total fair value of stock units and RSUs vested was $8 million, $9 million and $6 million for the years ended December 31, 2025, 2024 and 2023, respectively.
During 2025, 2024 and 2023, the Company granted PSUs to certain employees under the 2017 Omnibus Plan with grant date fair values totaling $27 million, $23 million and $28 million, respectively. The majority of PSUs vest ratably based on continued employment with the Company over the three-year performance period (the “Performance Period”). Distribution of the performance shares is contingent upon the achievement of one or more internal performance measures and, separately, a relative total shareholder return performance measure, over the Performance Period.
Presented in the table below is PSU activity for the year ended December 31, 2025:
Shares (in thousands)Weighted Average Grant Date Fair Value (per share)
Non-vested total as of December 31, 2024322 $130.04 
Granted211 128.59 
Vested(74)147.45 
Forfeited(81)106.41 
Non-vested total as of December 31, 2025378 $130.93 
As of December 31, 2025, $8 million of total unrecognized compensation cost related to the non-vested PSUs is expected to be recognized over the weighted average remaining life of 0.85 years. The total fair value of PSUs vested was $26 million, $23 million and $31 million for the years ended December 31, 2025, 2024 and 2023, respectively.
PSUs granted with one or more internal performance measures are valued at the market value of the closing price of the Company’s common stock on the date of grant. PSUs granted with a relative total shareholder return condition are valued, for accounting purposes, using a Monte Carlo simulation model. Expected volatility is based on historical volatilities of traded common stock of the Company and comparative companies using daily stock prices over the past three years. The expected term is three years and the risk-free interest rate is based on the three-year U.S. Treasury rate in effect as of the measurement date. Presented in the table below are the weighted average assumptions used in the Monte Carlo simulation and the weighted average grant date fair values of PSUs granted for the years ended December 31:
 202520242023
Expected volatility23.25%22.98%25.45%
Risk-free interest rate4.27%4.39%4.31%
Expected life (years)3.03.03.0
Grant date fair value per share$118.29$118.95$168.00
The grant date fair value of PSUs that vest ratably and have market and/or performance conditions are amortized through expense over the requisite service period using the graded-vesting method.
Employee Stock Purchase Plan
The Company maintains a nonqualified employee stock purchase plan (the “ESPP”) that expires in 2027 through which employee participants (which excludes certain of the Company’s executives) may use payroll deductions to acquire Company common stock at a purchase price of 85% of the fair market value of the common stock at the end of a three-month purchase period. A total of 2.0 million shares may be issued under the ESPP, and as of December 31, 2025, there were 1.3 million shares of common stock reserved for issuance under the ESPP. The ESPP is considered compensatory. During the years ended December 31, 2025, 2024 and 2023, the Company issued approximately 84,000, 90,000 and 87,000 shares, respectively, under the ESPP.
v3.25.4
Long-Term Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Long-Term Debt
Note 11: Long-Term Debt
The Company obtains long-term debt through AWCC primarily to fund capital expenditures of the Regulated Businesses, to repay or refinance existing long-term and short-term debt, and to lend funds to parent company to refinance debt and for other purposes. Presented in the table below are the components of long-term debt as of December 31:
RateWeighted Average RateMaturity20252024
Long-term debt of AWCC: (a)     
Senior notes—fixed rate
2.30%-8.27%
4.24%
2026-2055
$12,961 $11,786 
Private activity bonds and government funded debt—fixed rate
0.00%-3.88%
3.07%
2028-2045
187 187 
Long-term debt of other American Water subsidiaries:   
Private activity bonds and government funded debt—fixed rate
0.00%-5.00%
2.41%
2026-2061
717 761 
Mortgage bonds—fixed rate
6.35%-9.19%
7.37%
2026-2039
435 456 
Mandatorily redeemable preferred stock
8.47%-9.75%
8.64%
2036
3 3 
Long-term debt 4.23% 14,303 13,193 
Unamortized debt discount, net (b)(27)(20)
Unamortized debt issuance costs   (17)(15)
Less current portion of long-term debt   (1,479)(637)
Total long-term debt   $12,780 $12,521 
(a)This indebtedness is considered “debt” for purposes of a support agreement between parent company and AWCC, which serves as a functional equivalent of a full and unconditional guarantee by parent company of AWCC’s payment obligations under such indebtedness.
(b)Includes debt discount, net of fair value adjustments previously recognized in acquisition purchase accounting.
All mortgage bonds and $709 million of the private activity bonds and government funded debt held by the Company’s subsidiaries were collateralized as of December 31, 2025.
Long-term debt agreements contain a number of covenants that, among other things, limit, subject to certain exceptions, AWCC from issuing debt secured by the Company’s consolidated assets. Certain long-term note covenants require the Company to maintain a ratio of consolidated total indebtedness to consolidated total capitalization (each as defined in the relevant documents) of not more than 0.70 to 1.00. The ratio as of December 31, 2025, was 0.59 to 1.00. In addition, the Company has $773 million of notes which include the right to redeem the notes at par value, in whole or in part, from time to time, subject to certain restrictions, with a weighted average interest rate of 2.61%.
Presented in the table below are future sinking fund payments and debt maturities:
Amount
2026$1,479 
2027646 
2028869 
2029938 
2030517 
Thereafter9,854 
Presented in the table below are the issuances of long-term debt in 2025:
CompanyType
Rate
Weighted Average RateMaturityAmount
AWCCSenior notes—fixed rate
5.25%
5.25%
2035
$800 
AWCCSenior notes—fixed rate
5.70%
5.70%2055900 
Other American Water subsidiariesPrivate activity bonds and government funded debt—fixed rate
0.00%-3.71%
2.30%
2028-2057
89 
Total issuances   $1,789 
The Company incurred debt issuance costs of $17 million related to the above issuances.
Presented in the table below are the retirements and redemptions of long-term debt in 2025 through sinking fund provisions, optional redemption, payment at maturity or settlement:
CompanyType
Rate
Weighted Average RateMaturityAmount
AWCCSenior notes—fixed rate
3.40%
3.40%
2025
$525 
Other American Water subsidiariesPrivate activity bonds and government funded debt—fixed rate
0.00%-5.00%
0.37%
2025-2061
145 
Other American Water subsidiariesMortgage bonds—fixed rate
8.15%-8.58%
8.23%
2025
21 
Total retirements and redemptions   $691 
On August 8, 2025, AWCC completed the sale of $900 million aggregate principal amount of its 5.700% Senior Notes due 2055. At the closing of this offering, AWCC received, after deduction of underwriting discounts and before deduction of offering expenses, net proceeds of approximately $887 million. AWCC used the net proceeds of the offering (i) to lend funds to American Water and the Regulated Businesses; (ii) to repay commercial paper obligations of AWCC; and (iii) for general corporate purposes.
On February 27, 2025, AWCC completed the sale of $800 million aggregate principal amount of its 5.250% Senior Notes due 2035. At the closing of this offering, 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 American Water and the Regulated Businesses; (ii) to repay at maturity AWCC’s 3.400% Senior Notes due 2025; (iii) to repay commercial paper obligations of AWCC; and (iv) for general corporate purposes.
On June 29, 2023, AWCC issued $1,035 million aggregate principal amount of 3.625% Exchangeable Senior Notes due 2026 (the “Notes”). AWCC received net proceeds of approximately $1,022 million, after deduction of underwriting discounts and commissions but before deduction of offering expenses payable by AWCC. The Notes will mature on June 15, 2026 (the “Maturity Date”), unless earlier exchanged or repurchased and are included in Current portion of long-term debt on the Consolidated Balance Sheets.
The Notes are exchangeable at an initial exchange rate of 5.8213 shares of parent company’s common stock per $1,000 principal amount of Notes (equivalent to an initial exchange price of approximately $171.78 per share of common stock). The initial exchange rate of the Notes is subject to adjustment as provided in the indenture pursuant to which the Notes were issued (the “Note Indenture”). Prior to the close of business on the business day immediately preceding March 15, 2026, the Notes are exchangeable at the option of the noteholders only upon the satisfaction of specified conditions and during certain periods described in the Note Indenture. On or after March 15, 2026, until the close of business on the business day immediately preceding the Maturity Date, the Notes will be exchangeable at the option of the noteholders at any time regardless of these conditions or periods. Upon any exchange of the Notes, AWCC will (i) pay cash up to the aggregate principal amount of the Notes and (ii) pay or deliver (or cause to be delivered), as the case may be, cash, shares of parent company’s common stock, or a combination of cash and shares of such common stock, at AWCC's election, in respect of the remainder, if any, of AWCC’s exchange obligation in excess of the aggregate principal amount of the Notes being exchanged.
AWCC may not redeem the Notes prior to the Maturity Date, and no sinking fund is provided for the Notes. Subject to certain conditions, holders of the Notes will have the right to require AWCC to repurchase all or a portion of their Notes upon the occurrence of a fundamental change, as defined in the Note Indenture, at a repurchase price of 100% of their principal amount plus any accrued and unpaid interest.
One of the principal market risks to which the Company is exposed is changes in interest rates. In order to manage the exposure, the Company follows risk management policies and procedures, including the use of derivative contracts such as treasury lock agreements. The Company also reduces exposure to interest rates by managing commercial paper and debt maturities. The Company (through AWCC) does not enter into derivative contracts for speculative purposes and does not use leveraged instruments. The derivative contracts entered into are for periods consistent with the related underlying exposures. The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. The Company minimizes the counterparty credit risk on these transactions by dealing only with leading, creditworthy financial institutions, having long-term credit ratings of “A-” or better.
As of December 31, 2025, the Company had entered into six treasury lock agreements, with a term of 10 years or 30 years and an aggregate notional amount totaling $200 million, to reduce interest rate exposure on expected future debt issuances. These treasury lock agreements terminate in June 2026 and September 2026 and have an average fixed interest rate of 4.47%. In February 2026, the Company entered into four treasury lock agreements, with a term of 10 years or 30 years and an aggregate notional amount totaling $150 million, to reduce interest rate exposure on expected future debt issuances. These treasury lock agreements terminate in June 2026 and September 2026 and have an average fixed interest rate of 4.62%. 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 2025 and August 2025, the Company terminated a total of 11 treasury lock agreements, designated as cash flow hedges, with a term of 30 years and an aggregate notional amount totaling $450 million, realizing a pre-tax net gain of $13 million, recorded in accumulated other comprehensive income. The gain will be amortized through Interest expense over a 30-year period, in accordance with the tenor of the notes issued on August 8, 2025.
In February 2025, the Company terminated 10 treasury lock agreements designated as cash flow hedges, with a term of 10 years and an aggregate notional amount totaling $500 million, realizing a pre-tax net gain of $3 million recorded in accumulated other comprehensive income. The gain will be amortized through Interest expense over a 10-year period, in accordance with the tenor of the notes issued on February 27, 2025.
No ineffectiveness was recognized on hedging instruments for the years ended December 31, 2025, 2024 or 2023.
v3.25.4
Short-Term Debt
 12 Months Ended
Dec. 31, 2025
Short-Term Debt [Abstract]  
Short-Term Debt
Note 12: 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, issuances of commercial paper and equity, and, if and to the extent necessary, borrowings under the AWCC revolving credit facility. AWCC maintains an unsecured revolving credit facility which provides $2.75 billion in aggregate total commitments from a diversified group of financial institutions. The termination date of the credit agreement with respect to AWCC’s revolving credit facility is October 26, 2029. The revolving credit facility is used principally to support AWCC’s commercial paper program, to provide additional liquidity support and to provide a sub-limit for the issuance of up to $150 million in letters of credit. Letters of credit are non-debt instruments maintained to provide credit support for certain transactions as requested by third parties. Subject to satisfying certain conditions, the credit agreement permits AWCC to increase the maximum commitment under the facility by up to an aggregate of $500 million. The Company regularly evaluates the capital markets and closely monitors the financial condition of the financial institutions with contractual commitments in its revolving credit facility. Interest rates on advances under the facility are based on a credit spread to the Secured Overnight Financing Rate (or applicable market replacement rate) or base rate, each determined in accordance with Moody’s Ratings and S&P Global Ratings’ then applicable credit rating on AWCC’s senior unsecured, non-credit enhanced debt.
Short-term debt consists of commercial paper borrowings totaling $1,590 million and $880 million as of December 31, 2025 and 2024, respectively, or net of discount $1,588 million and $879 million as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, AWCC had no outstanding borrowings under the revolving credit facility and there were no commercial paper borrowings outstanding with maturities greater than three months.
Presented in the tables below are the aggregate credit facility commitment, commercial paper limit and letter of credit availability under the revolving credit facility, as well as the available capacity for each, as of December 31:
2025
Commercial Paper LimitLetters of CreditTotal (a)
Total availability$2,600 $150 $2,750 
Outstanding debt(1,590)(84)(1,674)
Remaining availability as of December 31, 2025$1,010 $66 $1,076 
(a)Total remaining availability of $1.1 billion as of December 31, 2025, was accessible through revolver draws.
2024
Commercial Paper LimitLetters of CreditTotal (a)
Total availability$2,600 $150 $2,750 
Outstanding debt(880)(82)(962)
Remaining availability as of December 31, 2024$1,720 $68 $1,788 
(a)Total remaining availability of $1.8 billion as of December 31, 2024, was accessible through revolver draws.
Presented in the table below is the Company’s total available liquidity as of December 31, 2025 and 2024, respectively:
Cash and Cash EquivalentsAvailability on Revolving Credit FacilityTotal Available Liquidity
Available liquidity as of December 31, 2025$98 $1,076 $1,174 
Available liquidity as of December 31, 2024$96 $1,788 $1,884 
Presented in the table below is the short-term borrowing activity for AWCC for the years ended December 31:
20252024
Average borrowings$1,170 $161 
Maximum borrowings outstanding$1,595 $880 
Weighted average interest rates, as of December 313.89 %4.65 %
The credit facility requires the Company to maintain a ratio of consolidated debt to consolidated capitalization of not more than 0.70 to 1.00. The ratio as of December 31, 2025, was 0.59 to 1.00.
The Company does not have any material borrowings that are subject to default or prepayment as a result of a downgrading of securities, although such a downgrading could increase fees and interest charges under AWCC’s revolving credit facility.
v3.25.4
General Taxes
 12 Months Ended
Dec. 31, 2025
General Taxes [Abstract]  
General Taxes
Note 13: General Taxes
Presented in the table below are the components of general tax expense for the years ended December 31:
202520242023
Gross receipts and franchise$151 $140 $134 
Property and capital stock134 125 119 
Payroll43 41 38 
Other general20 14 16 
Total general taxes$348 $320 $307 
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
Note 14: Income Taxes
Presented in the table below are the components of income tax expense for the years ended December 31:
202520242023
Current income taxes:   
State$25 $16 $16 
Federal151 136 28 
Total current income taxes$176 $152 $44 
Deferred income taxes:   
State$36 $53 $44 
Federal100 104 165 
Amortization of deferred investment tax credits(1)(1)(1)
Total deferred income taxes135 156 208 
Provision for income taxes$311 $308 $252 
Presented in the table below is a reconciliation between the statutory federal tax rate and the Company’s effective tax rate for the years ended December 31:
 202520242023
AmountPercentAmountPercentAmountPercent
U.S. federal statutory tax rate$299 21.0 %$285 21.0 %$251 21.0 %
State and local income taxes, net of federal income tax effect (a)48 3.4 %54 4.0 %48 4.0 %
Nontaxable or nondeductible items5 0.4 %5 0.3 %4 0.3 %
Change in unrecognized tax benefits(8)(0.6)%2 0.2 %3 0.2 %
Other adjustments:
Excess accumulated deferred income taxes(39)(2.8)%(37)(2.7)%(51)(4.2)%
Other6 0.5 %(1)(0.1)%(3)(0.2)%
Effective tax rate$311 21.9 %$308 22.7 %$252 21.1 %
(a)The states that made up the majority (greater than 50 percent) of the tax effect in this category were: (i) for 2025, Pennsylvania and Illinois, (ii) for 2024, Pennsylvania and California, and (iii) for 2023, Pennsylvania and Illinois.
Presented in the table below is the disaggregation of income taxes paid (refunds received), net of refunds received of $29 million, $5 million and $30 million in 2025, 2024 and 2023, respectively, for the years ended December 31:
202520242023
Federal$185 $— $12 
State5 (5)(12)
Total$190 $(5)$— 
Income taxes paid (net of refunds received) exceeded 5% of total income taxes paid (net of refunds received) in the following states for the years ended December 31:
202520242023
State:
Iowa*$(1)*
Kentucky*$(2)*
Massachusetts**$(2)
New Jersey**$(23)
Pennsylvania*$(1)$13 
Tennessee**$1 
(*)Jurisdiction below the threshold for the period presented.
Presented in the table below are the components of the net deferred tax liability as of December 31:
20252024
Deferred tax assets:  
Advances and contributions$519 $493 
Tax losses and credits215 128 
Regulatory income tax assets161 181 
Pension and other postretirement benefits31 64 
Other166 163 
Total deferred tax assets1,092 1,029 
Valuation allowance(9)(8)
Total deferred tax assets, net of allowance$1,083 $1,021 
Deferred tax liabilities:  
Property, plant and equipment$4,021 $3,553 
Deferred pension and other postretirement benefits75 86 
Other157 244 
Total deferred tax liabilities4,253 3,883 
Total deferred tax liabilities, net of deferred tax assets$(3,170)$(2,862)
As of December 31, 2025 and 2024, the Company had state net operating loss (“NOL”) carryforwards of $246 million and $251 million, respectively, a portion of which are offset by a valuation allowance as the Company does not believe these NOLs are more likely than not to be realized. The state NOL carryforwards generally expire in 2026 through 2045, however, certain states have adopted the federal provisions allowing for an unlimited carryforward period.
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBB”) was signed into law. The OBBB includes several corporate tax-related provisions. Key changes include the permanent extension of certain provisions from the Tax Cuts and Jobs Act of 2017, such as 100% bonus depreciation and Section 163(j) interest limitation exception for regulated utilities, as well as the immediate expensing of domestic research and development costs, and the introduction of a new charitable contribution floor for corporations. The OBBB has not had a material impact on the Company’s Consolidated Financial Statements. The Company will continue to monitor the implementation and any related guidance.
The Inflation Reduction Act of 2022 (the “IRA”) contains a 15% Corporate Alternative Minimum Tax (“CAMT”) provision on applicable corporations. To determine if a company is considered an applicable corporation subject to CAMT, the company’s average adjusted financial statement income (“AFSI”) for the three consecutive years preceding the tax year must exceed $1.0 billion. An applicable corporation must make several adjustments to net income when determining AFSI. A corporation paying CAMT is eligible for a future tax credit, which can be carried forward indefinitely and utilized when regular tax exceeds CAMT. Based on current guidance, the Company is an applicable corporation subject to CAMT beginning in 2024. The Company included the CAMT liability in its 2024 extension payment on April 15, 2025. As of December 31, 2025 and 2024, the Company had CAMT credit carryforwards of $200 million and $111 million, respectively. The deferred tax asset related to the CAMT credit carryforward will be realized to the extent the Company's deferred tax liabilities exceed the CAMT credit carryforward. The Company's deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future, and therefore, no valuation allowance is required.
On June 2, 2025, the Internal Revenue Service (“IRS”) and the U.S. Treasury issued Notice 2025-27, allowing corporate taxpayers to exclude amounts attributable to the CAMT liability, without penalty, from estimated tax payments with respect to a taxable year that begins after December 31, 2024, and before January 1, 2026. The Company plans to include the CAMT liability in its 2025 extension payment on April 15, 2026. The Company will continue to assess the impacts of the IRA as the U.S. Treasury and the IRS provide further guidance.
The Company files income tax returns in the United States federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state or local or non-U.S. income tax examinations by tax authorities for taxable years ended December 31, 2020 and prior.
Presented in the table below are the changes in gross liability, excluding interest and penalties, for unrecognized tax benefits:
Amount
Balance as of January 1, 2023$158 
Increases in current period tax positions27 
Decreases in prior period measurement of tax positions(37)
Balance as of December 31, 2023$148 
Increases in current period tax positions34 
Increases in prior period measurement of tax positions21 
Balance as of December 31, 2024$203 
Increases in current period tax positions31 
Decreases in prior period measurement of tax positions(118)
Balance as of December 31, 2025$116 
If the Company sustains all of its positions as of December 31, 2025, excluding interest and penalties, there would be no impact on the Company’s effective tax rate. The Company had an immaterial amount of interest and penalties related to its tax positions as of December 31, 2025 and 2024.
Presented in the table below are the changes in the valuation allowance:
Amount
Balance as of January 1, 2023$11 
Increases in valuation allowance— 
Balance as of December 31, 2023$11 
Decreases in valuation allowance(3)
Balance as of December 31, 2024$8 
Increases in valuation allowance1 
Balance as of December 31, 2025$9 
v3.25.4
Employee Benefits
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefits
Note 15: Employee Benefits
Overview of Pension and Other Postretirement Benefits Plans
The Company maintains noncontributory defined benefit pension plans covering eligible employees of its regulated utility and shared services operations. Benefits under the plans are based on the employee’s years of service and compensation. The pension plans have been closed for all new employees. The pension plans were closed for most employees hired on or after January 1, 2006. Union employees hired on or after January 1, 2001, except for specific eligible groups specified in the plan, had their accrued benefit frozen and will be able to receive this benefit as a lump sum upon termination or retirement. Union employees hired on or after January 1, 2001, and non-union employees hired on or after January 1, 2006, are provided with a defined contribution plan that includes a 5.25% of base pay Company-funded defined contribution account. The Company does not participate in a multi-employer plan. The Company also has unfunded noncontributory supplemental nonqualified pension plans that provide additional retirement benefits to certain employees.
The Company’s pension funding practice is to contribute at least the greater of the minimum amount required by the Employee Retirement Income Security Act of 1974 or the normal cost. Further, the Company will consider additional cash contributions and/or available prefunding balances if needed to avoid “at risk” status and benefit restrictions under the Pension Protection Act of 2006 (“PPA”). The Company may also consider increased contributions, based on other financial requirements and the plans’ funded position. Pension expense in excess of the amount contributed to the pension plans is deferred by certain regulated subsidiaries pending future recovery in rates charged for utility services as contributions are made to the plans. See Note 3—Regulatory Matters for additional information. Pension plan assets are invested in a number of actively managed, commingled funds, and limited partnerships including equities, fixed income securities, guaranteed annuity contracts with insurance companies, real estate funds and real estate investment trusts (“REITs”).
The Company maintains other postretirement benefit plans providing varying levels of medical and life insurance to eligible retirees. The retiree welfare plans are closed for union employees hired on or after January 1, 2006. The plans had previously closed for non-union employees hired on or after January 1, 2002. The Company’s policy is to fund other postretirement benefit costs up to the amount recoverable through rates. Assets of the plans are invested in a number of actively managed funds in the form of separate accounts, commingled funds and limited partnerships, including equities and fixed income securities.
The Company engages third-party investment managers for all invested assets. Managers are not permitted to invest outside of the asset class (e.g., fixed income, equity, alternatives) or strategy for which they have been appointed. Investment management agreements and recurring performance and attribution analysis are used as tools to ensure investment managers invest solely within the investment strategy they have been provided. Futures and options may be used to adjust portfolio duration to align with a plan’s targeted investment policy.
In order to minimize asset volatility relative to the liabilities, a portion of plan assets is allocated to long duration fixed income investments that are exposed to interest rate risk. Increases in interest rates generally will result in a decline in the value of fixed income assets while reducing the present value of the liabilities. Conversely, rate decreases will increase fixed income assets, partially offsetting the related increase in the liabilities. Within equities, risk is mitigated by constructing a portfolio that is broadly diversified by geography, market capitalization, manager mandate size, investment style and process. For the Bargained Retiree Voluntary Employees’ Beneficiary Association (“Bargained VEBA”) trust, its asset structure is designed to meet the cash flows of the liabilities. This design reduces the plan’s exposure to changes in interest rates.
Actual allocations to each asset class vary from target allocations due to periodic investment strategy updates, market value fluctuations, the length of time it takes to fully implement investment allocations, and the timing of benefit payments and contributions. The asset allocation is rebalanced on a quarterly basis, if necessary.
Pension Plan Assets
The investment policy guideline of the pension plan is focused on diversification, improving returns and reducing the volatility of the funded status over a long-term horizon. None of the Company’s securities are included in pension plan assets.
The Company uses fair value for all classes of assets in the calculation of market-related value of plan assets. As of December 31, 2025, the fair values and asset allocations of the pension plan assets include the American Water Pension Plan and the American Water Pension Plan for Certain Inactive Participants.
Presented in the tables below are the fair values and asset allocations of the pension plan assets as of December 31, 2025 and 2024, respectively, by asset category:
Asset CategoryTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3) (a)Net Asset Value as a Practical Expedient Percentage of Plan Assets as of December 31, 2025
Cash$23 $23 $— $— $— 2 %
Equity securities:     
U.S. large cap158 40 — — 118 11 %
U.S. small cap32 32 — — — 2 %
International299 — — — 299 21 %
Real estate fund122 — — — 122 9 %
REITs7 — — — 7 — %
Fixed income securities:    
U.S. Treasury securities and government bonds257 194 13 — 50 19 %
Corporate bonds459 — 459 — — 33 %
Mortgage-backed securities5 — 5 — — — %
Municipal bonds18 — 18 — — 1 %
Guarantee annuity contracts31 — — 31 — 2 %
Total$1,411 $289 $495 $31 $596 100 %
Asset CategoryTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3) (a)Net Asset Value as a Practical ExpedientPercentage of Plan Assets as of December 31, 2024
Cash$40 $40 $— $— $— 3 %
Equity securities:     
U.S. large cap155 29 — — 126 11 %
U.S. small cap34 34 — — — 2 %
International258 — — — 258 19 %
Real estate fund120 — — — 120 9 %
REITs6 — — — 6 — %
Fixed income securities:    
U.S. Treasury securities and government bonds232 169 1 — 62 17 %
Corporate bonds489 — 489 — — 35 %
Mortgage-backed securities6 — 6 — — — %
Municipal bonds20 — 20 — — 2 %
Guarantee annuity contracts32 — — 32 — 2 %
Total$1,392 $272 $516 $32 $572 100 %
(a)There were no material changes during the period for the fair value measurements using significant unobservable inputs (Level 3) for the years ended December 31, 2025 and 2024, respectively.
The Company’s 2026 target pension plan asset allocation is 38% equity securities and 62% fixed income securities. The Company’s 2025 target pension plan asset allocation was 37% equity securities and 63% fixed income securities.
Other Postretirement Benefit Plan Assets
The investment policy guidelines of the postretirement plans focus on the appropriate strategy given the funded status of the plans. None of the Company’s securities are included in other postretirement benefit plan assets. The Company’s postretirement benefit plans have different levels of funded status and the assets are held under various trusts. The investments and risk mitigation strategies for the plans are tailored specifically for each trust. In setting new strategic asset mixes, consideration is given to the likelihood that the selected asset allocation will effectively fund the projected plan liabilities and meet the risk tolerance criteria of the Company. The Company periodically updates the long-term, strategic asset allocations for these plans through asset liability studies and uses various analytics to determine the optimal asset allocation. Considerations include plan liability characteristics, liquidity needs, funding requirements, expected rates of return and the distribution of returns. The American Water Retiree Welfare Plan (“Retiree Welfare Plan”) is funded by the Bargained VEBA trust, the Non-Bargained Retiree Voluntary Employees’ Beneficiary Association (“Non-Bargained VEBA”) trust, the Voluntary Employees’ Beneficiary Association (“Active VEBA”) trust, and the American Water Life Insurance Voluntary Employees’ Beneficiary Association Trust.
Presented in the tables below are the fair values and asset allocations of the postretirement benefit plan assets as of December 31, 2025 and 2024, respectively, by asset category:
Asset CategoryTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Net Asset Value as a Practical Expedient Percentage of Plan Assets as of December 31, 2025
Bargained VEBA:     
Cash$5 $5 $— $— $— 5 %
Fixed income securities:    
U.S. Treasury securities and government bonds7 7 — — — 7 %
Corporate bonds85 — 85 — — 85 %
Municipal bonds3 — 3 — — 3 %
Total bargained VEBA$100 $12 $88 $— $— 100 %
Active VEBA:
Cash$3 $3 $— $— $— 12 %
Fixed income securities:
U.S. Treasury securities and government bonds2 2 — — — 8 %
Corporate bonds19 — 19 — — 76 %
Municipal bonds1 — 1 — — 4 %
Total Active VEBA$25 $5 $20 $— $— 100 %
Non-bargained VEBA:     
Cash$3 $3 $— $— $— 2 %
Equity securities:     
U.S. large cap46 46 — — — 35 %
International31 31 — — — 24 %
Fixed income securities:    
U.S. Treasury securities and government bonds1 1 — — — 1 %
Municipal bonds50 — 50 — — 38 %
Total non-bargained VEBA$131 $81 $50 $— $— 100 %
Total$256 $98 $158 $— $— 100 %
Asset CategoryTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Net Asset Value as a Practical ExpedientPercentage of Plan Assets as of December 31, 2024
Bargained VEBA:     
Cash$4 $4 $— $— $— 4 %
Fixed income securities:    
U.S. Treasury securities and government bonds7 7 — — — 7 %
Corporate bonds83 — 83 — — 86 %
Municipal bonds3 — 3 — — 3 %
Total bargained VEBA$97 $11 $86 $— $— 100 %
Active VEBA:
Cash$2 $2 $— $— $— 7 %
Fixed income securities:
U.S. Treasury securities and government bonds2 2 — — — 7 %
Corporate bonds23 — 23 — — 82 %
Municipal bonds1 — 1 — — 4 %
Total Active VEBA$28 $4 $24 $— $— 100 %
Non-bargained VEBA:     
Cash$3 $3 $— $— $— 2 %
Equity securities:     
U.S. large cap46 46 — — — 36 %
International30 30 — — — 23 %
Fixed income securities:    
U.S. Treasury securities and government bonds1 1 — — — 1 %
Municipal bonds48 — 48 — — 38 %
Total non-bargained VEBA$128 $80 $48 $— $— 100 %
Total$253 $95 $158 $— $— 100 %
The Company’s 2026 target postretirement benefit plan asset allocation for the Bargained VEBA and Active VEBA is 100% fixed income securities and for the Non-bargained VEBA is 60% equity securities and 40% fixed income securities. The Company’s 2025 target postretirement benefit plan asset allocation for the Bargained VEBA and Active VEBA was 100% fixed income securities and for the Non-bargained VEBA was 60% equity securities and 40% fixed income securities.
Valuation Techniques Used to Determine Fair Value
Cash—Cash and investments with maturities of three months or less when purchased, including certain short-term fixed-income securities, are considered cash and are included in the recurring fair value measurements hierarchy as Level 1.
Equity securities —For equity securities, the trustees obtain prices from pricing services, whose prices are obtained from direct feeds from market exchanges, that the Company is able to independently corroborate. Certain equity securities are valued based on quoted prices in active markets and categorized as Level 1. Other equities, such as certain U.S. large cap and international securities held in the pension plan, are invested in commingled funds and/or limited partnerships. These funds are valued to reflect the plan fund’s interest in the fund based on the reported year-end NAV. Since NAV is not directly observable or not available on a nationally recognized securities exchange for the commingled funds and/or limited partnerships, they are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These investments can typically be redeemed monthly or more frequently, with 30 or less days of notice and without further restrictions.
Fixed-income securities—Certain U.S. Treasury securities and government bonds have been categorized as Level 1 because they trade in highly-liquid and transparent markets and their prices can be corroborated. The fair values of corporate bonds, mortgage backed securities, and certain government bonds are based on prices that reflect observable market information, such as actual trade information of similar securities. These securities are categorized as Level 2 because the valuations are calculated using models which utilize actively traded market data that the Company can corroborate. Exchange-traded future and option positions are reported in accordance with changes in variation margins that are settled daily. Exchange-traded futures and options, for which market quotations are readily available, are valued at the last reported sale price or official closing price on the primary market or exchange on which they are traded and are classified as Level 1. Other U.S. Treasury securities are invested in commingled funds that may implement their investment strategies in a variety of ways which may include direct and/or indirect investment in securities and other instruments or assets (e.g., futures and swaps) or investment in units of other commingled funds. These funds are valued to reflect the plan fund’s interest in the fund based on the reported year-end NAV. Since NAV is not directly observable or not available on a nationally recognized securities exchange for the commingled funds, they are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These investments can typically be redeemed daily, with no prior notice and without further restrictions.
Real estate fund—Real estate funds are an investment vehicle in the form of a limited partnership primarily focused in real estate investments and are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These investments can typically be redeemed quarterly, with 90 or less days of notice, subject to available cash.
REITs—REITs are invested in commingled funds primarily focused in publicly traded shares of real estate investment trusts. Commingled funds are valued to reflect the plan fund’s interest in the fund based on the reported year-end NAV. REITs are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These investments can typically be redeemed daily, with no prior notice and without further restrictions.
Guaranteed annuity contracts—Guaranteed annuity contracts are categorized as Level 3 because the investments are not publicly quoted. Since these market values are determined by the provider, they are not highly observable and have been categorized as Level 3.
Benefit Obligations, Plan Assets and Funded Status
Presented in the table below is a rollforward of the changes in the benefit obligation and plan assets for the two most recent years, for all plans combined:
 Pension BenefitsOther Benefits
2025202420252024
Change in benefit obligation:    
Benefit obligation as of January 1,$1,560 $1,622 $225 $247 
Service cost15 17 2 2 
Interest cost87 83 12 12 
Plan participants' contributions— — 3 3 
Actuarial loss (gain)35 (55)3 (18)
Settlements — (2)— — 
Gross benefits paid(179)(105)(22)(22)
Federal subsidy— — 1 1 
Benefit obligation as of December 31,$1,518 $1,560 $224 $225 
Change in plan assets:    
Fair value of plan assets as of January 1,$1,392 $1,431 $253 $258 
Actual return on plan assets152 19 19 11 
Employer contributions46 49 3 3 
Plan participants' contributions— — 3 3 
Settlements— (2)— — 
Benefits paid(179)(105)(22)(22)
Fair value of plan assets as of December 31,$1,411 $1,392 $256 $253 
Funded value as of December 31,$(107)$(168)$32 $28 
Amounts recognized on the balance sheet:    
Noncurrent asset$62 $51 $33 $29 
Current liability(2)(2)— — 
Noncurrent liability(167)(217)(1)(1)
Net amount recognized$(107)$(168)$32 $28 
Presented in the table below are the components of accumulated other comprehensive income and regulatory assets that have not been recognized as components of periodic benefit costs as of December 31:
 Pension BenefitsOther Benefits
2025202420252024
Net actuarial loss$289 $337 $9 $13 
Prior service credit(2)(5)(52)(84)
Net amount recognized$287 $332 $(43)$(71)
Regulatory assets (liabilities)$261 $304 $(43)$(71)
Accumulated other comprehensive income26 28 — — 
Total$287 $332 $(43)$(71)
Presented in the tables below are the aggregate projected benefit obligation, accumulated benefit obligation and aggregate fair value of plan assets for pension plans with a projected obligation in excess of plan assets as of December 31:
Projected Benefit Obligation Exceeds the Fair Value of Plans' Assets
20252024
Projected benefit obligation$912 $916 
Fair value of plan assets743 697 
 Accumulated Benefit Obligation Exceeds the Fair Value of Plans' Assets
20252024
Accumulated benefit obligation$849 $852 
Fair value of plan assets743 697 
The accumulated postretirement plan assets exceed benefit obligations for the Company’s other postretirement benefit plans, except for the Northern Illinois Retiree Welfare Plan, of which the accumulated postretirement benefit obligation is inconsequential for all periods presented.
Contributions
The PPA requires that defined benefit plans contribute to 100% of the current liability funding target over seven years. Defined benefit plans with a funding status of less than 80% of the current liability are defined as being “at risk” and additional funding requirements and benefit restrictions may apply. The Company’s qualified defined benefit plan is currently funded above the at-risk threshold, and therefore the Company expects that the plans will not be subject to the “at risk” funding requirements of the PPA. The Company is proactively monitoring the plan’s funded status and projected contributions under the law to appropriately manage the potential impact on cash requirements.
Minimum funding requirements for the qualified defined benefit pension plan are determined by government regulations and not by accounting pronouncements. The Company plans to contribute amounts at least equal to or greater than the minimum required contributions or the normal cost in 2026 to the qualified pension plans. Contributions may be in the form of cash contributions as well as available prefunding balances.
Presented in the table below is information about the expected cash flows for the pension and postretirement benefit plans:
Pension BenefitsOther Benefits
2026 expected employer contributions:
  
To plan trusts$44 $— 
To plan participants2 — 
Estimated Future Benefit Payments
Presented in the table below are the net benefits expected to be paid from the plan assets or the Company’s assets:
 Pension BenefitsOther Benefits
Expected Benefit PaymentsExpected Benefit PaymentsExpected Federal Subsidy Payments
2026$119 $22 $1 
2027121 22 1 
2028121 21 1 
2029122 21 1 
2030122 20 — 
2031-2035590 88 2 
Because the above amounts are net benefits, plan participants’ contributions have been excluded from the expected benefits.
Assumptions
Accounting for pensions and other postretirement benefits requires an extensive use of assumptions about the discount rate, expected return on plan assets, the rate of future compensation increases received by the Company’s employees, mortality, turnover and medical costs. Each assumption is reviewed annually. The assumptions are selected to represent the average expected experience over time and may differ in any one year from actual experience due to changes in capital markets and the overall economy. These differences will impact the amount of pension and other postretirement benefit expense that the Company recognizes.
Presented in the table below are the significant assumptions related to the pension and other postretirement benefit plans:
 Pension BenefitsOther Benefits
 202520242023202520242023
Weighted average assumptions used to determine December 31 benefit obligations:      
Discount rate5.54%5.70%5.18%5.46%5.69%5.22%
Rate of compensation increase3.45%3.51%3.51%N/AN/AN/A
Medical trendN/AN/AN/Agraded fromgraded fromgraded from
    
7.00% in 2026
6.50% in 2025
6.75% in 2024
    
to 5.00% in 2032+
to 5.00% in 2031+
to 5.00% in 2031+
Weighted average assumptions used to determine net periodic cost:      
Discount rate5.70%5.18%5.58%5.69%5.22%5.60%
Expected return on plan assets6.63%6.73%6.79%5.00%5.00%5.00%
Rate of compensation increase3.45%3.51%3.51%N/AN/AN/A
Medical trendN/AN/AN/Agraded fromgraded fromgraded from
    
6.50% in 2025
6.75% in 2024
7.00% in 2023
    
to 5.00% in 2031+
to 5.00% in 2031+
to 5.00% in 2031+
NOTE:     “N/A” in the table above means assumption is not applicable.
The discount rate assumption was determined for the pension and postretirement benefit plans independently. The Company uses an approach that approximates the process of settlement of obligations tailored to the plans’ expected cash flows by matching the plans’ cash flows to the coupons and expected maturity values of individually selected bonds. Historically, for each plan, the discount rate was developed at the level equivalent rate that would produce the same present value as that using spot rates aligned with the projected benefit payments.
The expected long-term rate of return on plan assets is based on historical and projected rates of return, prior to administrative and investment management fees, for current and planned asset classes in the plans’ investment portfolios. Assumed projected rates of return for each of the plans’ projected asset classes were selected after analyzing historical experience and future expectations of the returns and volatility of the various asset classes. Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolio was developed, adjusted for historical and expected experience of active portfolio management results compared to the benchmark returns. The Company’s pension expense increases as the expected return on assets decreases. The Company used a weighted average expected return on plan assets of 6.63% to estimate its 2025 pension benefit costs, and an expected blended return based on weighted assets of 5.00% to estimate its 2025 other postretirement benefit costs.
For the years ended December 31, 2025, 2024 and 2023, the Company’s mortality assumption utilized the Pri-2012 base mortality table with the MP-2021 mortality improvement scale.
Components of Net Periodic Benefit Cost
Presented in the table below are the components of net periodic benefit costs for the years ended December 31:
202520242023
Components of net periodic pension benefit cost (credit):   
Service cost$15 $17 $17 
Interest cost87 83 85 
Expected return on plan assets(90)(94)(94)
Amortization of prior service (credit) cost(3)(3)(3)
Amortization of actuarial loss21 22 13 
Settlements— 1 1 
Net periodic pension benefit cost (credit)$30 $26 $19 
Other changes in plan assets and benefit obligations recognized in other comprehensive income:   
Current year actuarial (gain) loss$— $(1)$3 
Amortization of actuarial loss(1)— (4)
Total recognized in other comprehensive income(1)(1)(1)
Total recognized in net periodic benefit cost (credit) and other comprehensive income$29 $25 $18 
Components of net periodic other postretirement benefit (credit) cost:   
Service cost$2 $2 $2 
Interest cost12 12 14 
Expected return on plan assets(12)(12)(12)
Amortization of prior service credit(31)(31)(31)
Amortization of actuarial loss— — 2 
Net periodic other postretirement benefit (credit) cost$(29)$(29)$(25)
Savings Plans for Employees
The Company maintains 401(k) savings plans that allow employees to save for retirement on a tax-deferred basis. Employees can make contributions that are invested at their direction in one or more funds. The Company makes matching contributions based on a percentage of an employee’s contribution, subject to certain limitations. Due to the Company’s discontinuing new entrants into the defined benefit pension plan, on January 1, 2006, the Company began providing an additional 5.25% of base pay defined contribution benefit for union employees hired on or after January 1, 2001 and non-union employees hired on or after January 1, 2006. The Company’s 401(k) savings plan expenses totaled $15 million, $15 million and $14 million for 2025, 2024 and 2023, respectively. Additionally, the Company’s 5.25% of base pay defined contribution benefit expenses totaled $19 million, $18 million and $17 million for 2025, 2024 and 2023, respectively. All of the Company’s contributions are invested in one or more funds at the direction of the employees.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Note 16: Commitments and Contingencies
Commitments have been made in connection with certain construction programs. The estimated capital expenditures required under legal and binding contractual obligations amounted to $1.5 billion as of December 31, 2025.
The Company’s regulated subsidiaries maintain agreements with other water purveyors for the purchase of water to supplement their water supply. The Company purchased $138 million, $129 million and $125 million of water under these agreements during 2025, 2024 and 2023, respectively. Presented in the table below are the future annual commitments related to minimum quantities of purchased water having non-cancelable contracts:
Amount
2026$83 
202777 
202878 
202979 
203055 
Thereafter968 
The Company enters into agreements for the provision of services to water and wastewater facilities for the U.S. military, municipalities and other customers. See Note 4—Revenue Recognition for additional information regarding the Company’s performance obligations.
Contingencies
The Company is routinely involved in legal actions incident to the normal conduct of its business. As of December 31, 2025, the Company has accrued approximately $8 million of probable loss contingencies and has estimated that the maximum amount of loss associated with reasonably possible loss contingencies arising out of such legal actions, which can be reasonably estimated, is $4 million. For certain legal actions, the Company is unable to estimate possible losses. The Company believes that damages or settlements, if any, recovered by plaintiffs in such legal actions, other than as described in this Note 16—Commitments and Contingencies, will not have a material adverse effect on the Company.
Dunbar, West Virginia Class Action Litigation Settlement
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 the Company’s West Virginia subsidiary (“WVAWC”). 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 alleged 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. 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.
Trial in this matter had been scheduled, but before trial commenced, the parties notified the Circuit Court that an agreement in principle to settle this litigation was reached among the parties. On May 2, 2025, the parties jointly filed with the Circuit Court a proposed class action settlement agreement (the “Dunbar Settlement”) with respect to the certified liability claims. On September 12, 2025, the Circuit Court issued an order granting final approval of the Dunbar Settlement. Under the terms of the approved Dunbar Settlement, WVAWC has not admitted, and will not admit, any fault or liability for any of the allegations made by the Jeffries plaintiffs. The maximum pre-tax amount of the Dunbar Settlement is approximately $18 million, of which the final amount of the Company’s and WVAWC’s contributions to the Dunbar Settlement is approximately $5 million (which have been funded through existing sources of liquidity), and the remainder has been contributed by certain of the Company’s general liability insurance carriers. The Company previously recorded in the fourth quarter of 2024 a charge to earnings, net of expected insurance receivables, of $5 million ($4 million after-tax), with respect to the Dunbar Settlement. The actual total amount to be paid to claimants through the Dunbar Settlement will depend upon the claims approved through the claims process, but the Company does not currently anticipate that its maximum liability will materially exceed $5 million. The deadline for claims submissions was August 25, 2025, and the settlement administrator is evaluating claim submissions to identify compensable claims.
Chattanooga, Tennessee 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.
In January 2023, after hearing oral argument, the court issued an oral ruling denying the Tennessee Plaintiffs’ motion for class certification. In February 2023, the Tennessee Plaintiffs sought reconsideration of the ruling by the court, and any final ruling is appealable to the Tennessee Court of Appeals, as allowed under Tennessee law. In September 2023, the court upheld its prior ruling but gave the Tennessee Plaintiffs the option to file an amended class definition. In October 2023, the Tennessee Plaintiffs filed an amended class definition seeking certification of a business customer-only class. On June 14, 2024, the court issued its written order denying the Tennessee Plaintiffs’ amended class and incorporating its denial of certification of the original residential class. On June 21, 2024, the Tennessee Plaintiffs appealed both of the court’s orders denying class certification. On December 4, 2025, the Court of Appeals of Tennessee denied the Tennessee Plaintiffs’ appeal, and on January 30, 2026, the Tennessee Plaintiffs filed an appeal with the Supreme Court of Tennessee. This matter remains pending.
The Company and TAWC believe that TAWC has valid, meritorious defenses to the claims raised in this class action complaint. TAWC will continue to vigorously defend itself against these allegations. Given the current stage of this proceeding, the Company cannot currently determine the likelihood of a loss, if any, or estimate the amount of any loss or a range of loss related to this proceeding.
Mountaineer Gas Company Main Break
During the afternoon of November 10, 2023, WVAWC was informed that an 8-inch ductile iron water main owned by WVAWC, located on the West Side of Charleston, West Virginia and originally installed in approximately 1989, experienced a leak. In the early morning hours of November 11, 2023, WVAWC crews successfully completed a repair to the water main. A precautionary boil water advisory was issued the same day to approximately 300 WVAWC customers and ultimately lifted on November 12, 2023.
On November 10, 2023, a break was reported in a low-pressure natural gas main located near the affected WVAWC water main, and an inflow of water into the natural gas main and associated delivery pipelines occurred. The natural gas main and pipelines are owned by Mountaineer Gas Company, a regulated natural gas distribution company serving over 220,000 customers in West Virginia (“Mountaineer Gas”). The resulting inflow of water into the natural gas main and related pipelines resulted in a loss of natural gas service to approximately 1,500 Mountaineer Gas customers, as well as water entering customer service lines and certain natural gas appliances owned or used by some of the affected Mountaineer Gas customers. Mountaineer Gas reported that restoration of natural gas service to all affected gas mains occurred on November 24, 2023. The timing, order and causation of both the WVAWC water main break and Mountaineer Gas’s main break are currently unknown and under investigation.
To date, a total of four pending lawsuits have been filed against Mountaineer Gas and WVAWC purportedly on behalf of customers in Charleston, West Virginia related to these incidents. On November 14, 2023, a complaint captioned Ruffin et al. v. Mountaineer Gas Company and West Virginia-American Water Company was filed in West Virginia Circuit Court in Kanawha County on behalf of an alleged class of Mountaineer Gas residential and business customers and other households and businesses supplied with natural gas in Kanawha County, which lost natural gas service on November 10, 2023, as a result of these events. The complaint alleges, among other things, breach of contract by Mountaineer Gas, trespass by WVAWC, nuisance by WVAWC, violation of statutory obligations by Mountaineer Gas and WVAWC, and negligence by Mountaineer Gas and WVAWC. The complaint seeks class-wide damages against Mountaineer Gas and WVAWC for loss of use of natural gas, annoyance, inconvenience and lost profits, as well as punitive damages.
On November 15, 2023, a complaint captioned Toliver et al. v. West Virginia-American Water Company and Mountaineer Gas Company was filed in West Virginia Circuit Court in Kanawha County on behalf of an alleged class of all natural persons or entities who are citizens of the State of West Virginia and who are customers of WVAWC and/or Mountaineer Gas in the affected areas. The complaint alleges against Mountaineer Gas and WVAWC, among other things, negligence, nuisance, trespass and strict liability, as well as breach of contract against Mountaineer Gas. The complaint seeks class-wide damages against Mountaineer Gas and WVAWC for property damage, loss of use and enjoyment of property, annoyance and inconvenience and business losses, as well as punitive damages.
On November 16, 2023, a complaint captioned Dodson et al. v. West Virginia American Water and Mountaineer Gas Company was filed in West Virginia Circuit Court in Kanawha County on behalf of an alleged class of all West Virginia citizens living between Pennsylvania Avenue south of Washington Street, and Iowa Street, who are customers of Mountaineer Gas. The complaint alleges against Mountaineer Gas and WVAWC, among other things, negligence, nuisance, trespass, statutory code violations and unfair or deceptive business practices. The complaint seeks class-wide damages against Mountaineer Gas and WVAWC for property loss and damage, loss of use and enjoyment of property, mental and emotional distress, and aggravation and inconvenience, as well as punitive damages.
On January 4, 2024, a fourth complaint, captioned Thomas v. West Virginia-American Water Company and Mountaineer Gas Company, was filed in West Virginia Circuit Court in Kanawha County asserting similar allegations as those included in the Ruffin, Toliver and Dodson lawsuits, with the addition of counts alleging unjust enrichment and violations of the West Virginia Human Rights Act and the West Virginia Consumer Credit and Protection Act.
On November 17, 2023, the Ruffin plaintiff filed a motion to consolidate the class action lawsuits before a single judge in Kanawha County Circuit Court. On June 14, 2024, the judge in the Ruffin case partially granted the motion by transferring all of the four class action lawsuits to her court but deferring as premature consolidation of the cases.
On December 5, 2023, a complaint captioned Mountaineer Gas Company v. West Virginia-American Water Company was filed in West Virginia Circuit Court in Kanawha County seeking damages under theories of trespass, negligence and implied indemnity. The damages being sought related to the incident include, among other things, repair and response costs incurred by Mountaineer Gas and attorneys’ fees and expenses incurred by Mountaineer Gas. On March 6, 2024, the motion to transfer this complaint to the West Virginia Business Court was granted and trial and resolution judges were assigned. The Business Court has set a trial date of August 10, 2026, for this matter.
On December 20, 2023, Mountaineer Gas filed answers to each of the first three class action lawsuits, which included cross-claims against WVAWC alleging that Mountaineer Gas is without fault for the claims and damages alleged in the lawsuits and WVAWC should be required to indemnify Mountaineer Gas for any damages and for attorneys’ fees and expenses incurred by Mountaineer Gas in the lawsuits. WVAWC has filed a partial motion to dismiss certain claims in the Ruffin, Toliver, Dodson and Thomas lawsuits and a motion to dismiss the cross-claims asserted against WVAWC therein by Mountaineer Gas. Mountaineer Gas subsequently voluntarily dismissed its cross-claims. On December 22, 2025, the Kanawha County Circuit Court entered a joint order setting a schedule for class certification with a hearing on the motion to be held on March 17, 2026. The Court also ordered mediation and continued the previously set February 2, 2026 trial date.
On December 6, 2023, WVAWC initiated a process whereby Mountaineer Gas customers could file claims with WVAWC and seek payment from WVAWC of up to $2,000 in damages per affected household for the inconvenience arising from a loss of use of their appliances and documented out-of-pocket expenses as a result of the natural gas outage. In light of the diminishing number of new claims that had been filed, the claims process was concluded on March 8, 2024. As of December 31, 2024, a total of 594 Mountaineer Gas customers completed this claims process, and each of those customers has been paid by WVAWC an average of approximately $1,500. In return, these customers were required to execute a partial release of liability in favor of WVAWC.
On November 16, 2023, the Public Service Commission of West Virginia (the “WVPSC”) issued an order initiating a general investigation into both the water main break and natural gas outages occurring in this incident to determine the cause or causes thereof, as well as breaks and outages generally throughout the systems of WVAWC and Mountaineer Gas and the utility practices of both utilities. Following a series of disagreements among the parties regarding the scope of discovery, the WVPSC closed the general investigation into both utilities and ordered a separate general investigation for each utility. The WVPSC focused the two general investigations away from the cause of the events and instead on the maintenance practices of each utility during and after the main breaks. On January 29, 2024, the Consumer Advocate Division of the WVPSC filed a motion to intervene in the WVAWC general investigation.
On April 24, 2024, the staff issued a final joint memorandum in the Mountaineer Gas general investigation stating its view that Mountaineer Gas responded appropriately, reasonably and according to Mountaineer Gas’s written procedures. The staff is making no recommendations for improvements to Mountaineer Gas and is recommending that the Mountaineer Gas general investigation be closed. On July 24, 2024, the staff issued a final joint memorandum in the WVAWC general investigation finding no indication of systematic failure by WVAWC and concluding WVAWC’s maintenance and operating procedures were adequate to ensure safe and reliable service, subject to the implementation by WVAWC of three recommended operational improvements. Both general investigations remain pending.
The Company and WVAWC believe that the causes of action and other claims asserted against WVAWC in the class action complaints and the lawsuit filed by Mountaineer Gas are without merit and that WVAWC has valid, meritorious defenses to such claims. WVAWC continues to defend itself vigorously in these litigation proceedings.
Given the current stage of these proceedings and the general investigation, the Company and WVAWC are currently unable to predict the outcome of any of the proceedings described above, and the Company cannot currently determine the likelihood of a loss, if any, or estimate the amount of any loss or a range of loss 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,” and, together with the 2009 Order, the “Orders”) 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”), as well as an expanded aquifer storage and recovery program. The Water Supply Project is intended, among other things, to fulfill Cal Am’s obligations under the Orders.
Cal Am’s ability to move forward on the Water Supply Project is and has been subject to administrative review by the CPUC and other government agencies, obtaining necessary permits, and intervention from other parties. In 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 AFUDC, subject to meeting certain criteria.
In 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 financing costs. 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 is also required to implement mitigation measures to avoid, minimize or offset significant environmental impacts from the construction and operation of the Water Supply Project and comply with a mitigation monitoring and reporting program, a reimbursement agreement for CPUC costs associated with that program, and reporting requirements on plant operations following placement of the Water Supply Project in service. Cal Am has incurred $324 million in aggregate costs as of December 31, 2025, related to the Water Supply Project, which includes $107 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. On December 5, 2022, the CPUC issued a final decision that authorized 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 final decision sets the cost cap for the proposed facilities at approximately $62 million. Cal Am may seek recovery of amounts above the cost cap in a subsequent rate filing or general rate case. Additionally, the final decision authorizes AFUDC at Cal Am’s actual weighted average cost of debt for most of the facilities. On December 30, 2022, Cal Am filed with the CPUC an application for rehearing of the CPUC’s December 5, 2022, final decision, and on March 30, 2023, the CPUC issued a decision denying Cal Am’s application for rehearing, but adopting its proposed AFUDC for already incurred and future costs. The decision also provided Cal Am the opportunity to serve supplemental testimony to increase its cost cap for certain of the Water Supply Project’s extraction wells. On May 21, 2025, the CPUC issued a decision authorizing an increase to the cost cap of $11 million for the specified extraction wells.
The amended water purchase agreement and a memorandum of understanding to negotiate certain milestones related to the expansion of the GWR Project have been signed by the relevant parties. Further hearings were scheduled in a Phase 2 to this CPUC proceeding to focus on updated supply and demand estimates for the Water Supply Project, and Phase 2 testimony was completed in September 2022. On October 23, 2023, a status conference was held to determine procedural steps to conclude the proceeding. Further evidentiary hearings were held in March 2024. On May 9, 2025, the CPUC issued a proposed decision in Phase 2, finding that without the Water Supply Project, projected demand will outstrip supply by approximately 2,500 acre-feet per year for 2050. On August 14, 2025, the CPUC approved a final decision updating the supply and demand estimates for the Water Supply Project, finding that the projected demand will outstrip supply by approximately 2,600 acre-feet per year for 2050. On September 17, 2025, the City of Marina (the “City”), the Marina Coast Water District (“MCWD”) and the MPWMD filed applications for rehearing of the final decision. On September 22, 2025, these parties also filed a motion to stay the final decision. On October 9, 2025, the CPUC issued a factual correction to the final decision to find that the projected demand will outstrip supply by approximately 2,500 acre-feet per year for 2050 and did not rule on the other motions.
While Cal Am believes that its expenditures to date have been prudent and necessary to comply with the Orders, as well as relevant final decisions of the CPUC related thereto, 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 $123 million in previously approved aggregate construction costs, plus applicable AFUDC, previously approved by the CPUC in its September 2016 decision, its December 2022 decision (as amended by its March 2023 rehearing decision), and its May 2025 decision.
Coastal Development Permit Application
In 2018, Cal Am submitted a coastal development permit application (the “Marina Application”) to 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, 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 the Marina Application. Thereafter, Cal Am appealed this decision to the Coastal Commission, as permitted under the City’s code and the California Coastal Act. At the same time, Cal Am submitted an application (the “Original Jurisdiction Application”) to the Coastal Commission for a coastal development permit for those project components located within the Coastal Commission’s original jurisdiction. After Coastal Commission staff issued reports recommending denial of the Original Jurisdiction Application, noting potential impacts on environmentally sensitive habitat areas and wetlands and possible disproportionate impacts to communities of concern, in September 2020, Cal Am withdrew the Original Jurisdiction Application in order to address the staff’s environmental justice concerns. In November 2020, Cal Am refiled the Original Jurisdiction Application.
In October 2022, Cal Am announced a phasing plan for the proposed desalination plant component of the Water Supply Project. The desalination plant and slant wells originally approved by the CPUC would produce up to 6.4 million gallons of desalinated water per day. Under the phased approach, the facilities would initially be constructed to produce up to 4.8 million gallons per day of desalinated water, enough to meet anticipated demand through about 2030, and would limit the number of slant wells initially constructed. As demand increases in the future, desalination facilities would be expanded to meet the additional demand. The phased approach seeks to meet near-term demand by allowing for additional supply as it becomes needed, while also providing an opportunity for regional future public participation and was developed by Cal Am based on feedback received from the community.
In November 2022, the Coastal Commission approved the Marina Application and the Original Jurisdiction Application with respect to the phased development of the proposed desalination plant, subject to compliance with a number of conditions, all of which Cal Am expects to satisfy. In December 2022, the City, MCWD, MCWD’s groundwater sustainability agency, and the MPWMD jointly filed a petition for writ of mandate in Monterey County Superior Court against the Coastal Commission, alleging that the Coastal Commission violated the California Coastal Act and the California Environmental Quality Act in issuing a coastal development permit to Cal Am for construction of slant wells for the Water Supply Project. Cal Am is named as a real party in interest. On April 24, 2024, the court granted defendants’ motion for judgment on the pleadings and dismissed one of MCWD’s causes of action in the petition. A trial commenced on December 9, 2024, and further proceedings continued in January 2025. On May 12, 2025, the court entered its final decision denying the petition in full. On July 24, 2025, a notice of appeal was filed in this matter.
Following the issuance of the coastal development permit, Cal Am continues to work constructively with all appropriate agencies to provide necessary information in connection with obtaining the remaining required permits 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. For the year ended December 31, 2025, Cal Am has complied with the diversion limitations contained in the 2016 Order. Continued compliance with the diversion limitations in 2026 and future years may be impacted by a number of factors, including without limitation potential recurrence of drought conditions in California and the exhaustion of water supply reserves, and will require successful development of alternate water supply sources sufficient to meet customer demand. The Orders 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 Orders 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 Orders.
Cal Am’s Action for Damages Following Termination of Regional Desalination Project (“RDP”)
In 2010, the CPUC had approved the RDP, which was a precursor to the current Water Supply Project and called for the construction of a desalination facility in the City. The RDP was to be implemented through a Water Purchase Agreement and ancillary agreements (collectively, the “Agreements”) among MCWD, Cal Am and the Monterey County Water Resources Agency (“MCWRA”). In 2011, due to a conflict of interest concerning a former member of MCWRA’s Board of Directors, MCWRA stated that the Agreements were void, and, as a result, Cal Am terminated the Agreements. In ensuing litigation filed by Cal Am in 2012 to resolve the termination of the RDP, the court in 2015 entered a final judgment agreeing with Cal Am’s position that four of the five Agreements are void, and one, the credit line agreement, is not void. As a result of this litigation, Cal Am was permitted to institute further proceedings, discussed below, to determine the amount of damages that may be awarded to Cal Am as a result of the failure of the RDP.
In 2015, Cal Am and MCWRA filed a complaint in San Francisco County Superior Court against MCWD and RMC Water and Environment, a private engineering consulting firm (“RMC”), seeking to recover compensatory, consequential and incidental damages associated with the failure of the RDP, as well as punitive and treble damages, statutory penalties and attorneys’ fees. In 2019, MCWD was granted a motion for summary judgment related to the tort claims in the complaint. A settlement as to the non-tort claims was finalized and entered into in March 2020. As part of this settlement, Cal Am’s and MCWRA’s right to appeal the dismissal of their tort claims against MCWD were expressly reserved, and, in July 2020, Cal Am filed its appeal. In December 2022, the trial court’s decision was reversed on appeal with instructions to vacate its prior orders granting MCWD’s motions for summary judgment and to enter new orders denying the motions. In February 2023, MCWD filed a petition for review of the appellate decision with the California Supreme Court, which was denied in March 2023. On June 27, 2024, MCWD filed a motion for judgment on the pleadings. Following a hearing, on December 5, 2024, the court granted MCWD’s motion without leave to amend, dismissing all of Cal Am’s remaining tort claims. Final judgment was entered on January 7, 2025. On February 27, 2025, Cal Am and MCWRA each filed a Notice of Appeal of the trial court’s decision. This matter remains pending.
Proposed Acquisition of Monterey System Assets — Potential Condemnation
Local Agency Formation Commission Litigation
The water system assets of Cal Am located in Monterey, California (the “Monterey system assets”) are the subject of a condemnation action by the MPWMD stemming from a November 2018 public ballot initiative. In 2019, the MPWMD issued a preliminary valuation and cost of service analysis report, finding in part that (i) an estimate of the Monterey system assets’ total value plus adjustments would be approximately $513 million, (ii) the cost of service modeling results indicate significant annual reductions in revenue requirements and projected monthly water bills, and (iii) the acquisition of the Monterey system assets by the MPWMD would be economically feasible. In 2020, the MPWMD certified a final environmental impact report, analyzing the environmental impacts of the MPWMD’s project to (i) acquire the Monterey system assets through the power of eminent domain, if necessary, and (ii) expand its geographic boundaries to include all parts of this system.
In February 2021, the MPWMD filed an application with the Local Agency Formation Commission of Monterey County (“LAFCO”) seeking approval to become a retail water provider and annex approximately 58 parcels of land into the MPWMD’s boundaries. In June 2021, LAFCO’s commissioners voted to require a third-party independent financial study as to the feasibility of an acquisition by the MPWMD of the Monterey system assets. In December 2021, LAFCO’s commissioners denied the MPWMD’s application to become a retail water provider, determining that the MPWMD does not have the authority to proceed with a condemnation of the Monterey system assets. In April 2022, the MPWMD filed a lawsuit against LAFCO challenging its decision to deny the MPWMD’s application seeking approval to become a retail water provider. In June 2022, the court granted, with conditions, a motion by Cal Am to intervene in the MPWMD’s lawsuit against LAFCO. In December 2022, the court sustained in part, and denied in part, demurrers that had been filed by LAFCO seeking to dismiss the MPWMD’s lawsuit.
In December 2023, the Monterey County Superior Court issued a writ of mandate directing LAFCO to vacate and set aside its original denial of the MPWMD’s application to serve as a retail water provider (in conjunction with its effort to acquire the Monterey system assets) and, if requested, to re-hear the application in compliance with all applicable law. The court held that LAFCO incorrectly applied two statutory standards and noted a lack of sufficient evidence to support certain of LAFCO’s factual findings. As a result, the LAFCO denial has been nullified and LAFCO will be required to hold another hearing on the MPWMD’s application upon request. On February 8, 2024, and February 9, 2024, respectively, Cal Am and LAFCO each filed a notice of appeal with the California Court of Appeal regarding the Monterey County Superior Court’s decision to issue the writ of mandate. The MPWMD filed a notice of cross-appeal on February 15, 2024. This matter remains pending.
MPWMD Condemnation Action
Separate from the proceedings related to the MPWMD’s application with LAFCO, by letter dated October 3, 2022, the MPWMD notified Cal Am of a decision to appraise the Monterey system assets and requested access to a number of Cal Am’s properties and documents to assist the MPWMD with such an appraisal. Cal Am responded by letter on October 24, 2022, denying the request for access, stating that the MPWMD does not have the right to appraise Cal Am’s system without LAFCO approval to become a retail water provider. In April 2023, Cal Am rejected an offer by the MPWMD to purchase the Monterey system assets for $448.8 million. Over the written and oral objections of Cal Am, at a hearing held in October 2023, the MPWMD adopted a resolution of necessity to authorize it to file an eminent domain lawsuit with respect to the Monterey system assets.
In December 2023, the MPWMD filed a lawsuit against Cal Am in Monterey County Superior Court seeking to condemn the Monterey system assets. On February 26, 2024, Cal Am filed a motion requesting the Monterey County Superior Court dismiss the MPWMD’s lawsuit. Cal Am’s motion asserted that the MPWMD lacks legal authorization from both the California legislature and LAFCO to become a retail water provider and the lawsuit improperly seeks to effect a taking of property outside the boundaries of the MPWMD’s territory. Hearings on the motion were held on May 3, 2024, and August 23, 2024. On November 14, 2024, the court issued a final ruling denying Cal Am’s motion to dismiss. Cal Am filed its answer to the complaint on December 13, 2024. On August 20, 2025, Cal Am filed a motion for summary judgment, alleging that without LAFCO approval, the MPWMD does not have legal authority to pursue eminent domain. On the same date, the MPWMD filed a motion for summary adjudication of the same issue, arguing that LAFCO approval is not required to proceed with this action. By orders dated December 29, 2025, the court denied both motions. This lawsuit remains pending.
While the Company cannot currently predict the outcome of the MPWMD’s eminent domain lawsuit, the Company believes that, given existing legal authorities and its other defenses, Cal Am should be able to defend itself successfully against this lawsuit.
PFAS Multi-District Litigation
Several of the Company’s utility subsidiaries are parties to a multi-district litigation (the “MDL”) lawsuit, which commenced on December 7, 2018, in U.S. District Court for the District of South Carolina, against manufacturers of certain PFAS for damages, contribution and reimbursement of costs incurred and continuing to be incurred to address the presence of such PFAS in public water supply systems owned and operated by these utility subsidiaries and throughout their service areas. Settlements with several defendants in the MDL proceeding have received final approval by the MDL court.
As of December 31, 2025, the Company has received settlement payments from defendants 3M Company and DuPont de Nemours, Inc. totaling $159 million, net of legal fees and administrative costs and exclusive of interest. The Company intends to seek regulatory approval from its respective PUCs to apply the net proceeds for the benefit of customers, where permissible. Regulatory approvals have been obtained with respect to seven of the Company’s utility subsidiaries that are parties to the MDL, and two regulatory applications have been denied. Most of the funds received by the Company are being held in a law firm escrow account and are awaiting distribution to the Company’s utility subsidiaries that are parties to the MDL after approval or denial is received from the applicable PUCs. As of December 31, 2025, the funds held in a law firm escrow account totaled $114 million and have been recorded on the Company’s Consolidated Balance Sheet within other current assets. A corresponding amount has been recorded as a regulatory liability. As of December 31, 2025, approximately $47 million of the escrowed funds, including escrow interest, has been transferred from the law firm escrow account for distribution to utility subsidiaries that have received approval. The Company anticipates that, during 2026, it may receive one or more additional settlement payments from the defendants in the MDL.
The Company has also become aware of a number of substantially similar personal injury short-form complaints that had been filed in the MDL naming, in addition to various other water providers and manufacturers, certain Company utility subsidiaries as defendants. The Company believes that the claims asserted are without merit and the relevant utility subsidiaries have valid, meritorious defenses to the claims. In October 2025, all MDL personal injury complaints that the Company had been made aware of were dismissed by the plaintiffs without prejudice.
v3.25.4
Earnings Per Common Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings Per Common Share
Note 17: Earnings per Common Share
Presented in the table below is a reconciliation of the numerator and denominator for the basic and diluted earnings per share (“EPS”) calculations for the years ended December 31:
202520242023
Numerator:   
Net income attributable to common shareholders$1,111 $1,051 $944 
Denominator:   
Weighted average common shares outstanding—Basic195 195 193 
Effect of dilutive common stock equivalents— — — 
Effect of dilutive forward sale agreements— — — 
Weighted average common shares outstanding—Diluted195 195 193 
The effect of dilutive common stock equivalents is related to outstanding RSUs and PSUs granted under the Company’s 2007 Plan and outstanding RSUs and PSUs granted under the Company’s 2017 Omnibus Plan, as well as estimated shares to be purchased under the ESPP. Less than one million share-based awards were excluded from the computation of diluted EPS for the years ended December 31, 2025, 2024 and 2023, because their effect would have been anti-dilutive under the treasury stock method.
Dilutive earnings per common share reflects the dilutive impact of potential issuances of shares of common stock associated with the outstanding equity Forward Sale Agreements entered in August 2025. The dilutive effect of equity forwards is determined under the treasury stock method. Share dilution occurs when the average market price of the Company’s common stock for the reporting period is higher than the adjusted forward sales price at the end of the reporting period. There were less than one million shares related to the Forward Sale Agreements included in the computation of diluted EPS for the year ended December 31, 2025.
The if-converted method is applied to the Notes issued in June 2023 for computing diluted EPS. For all periods presented, there was no dilution resulting from the Notes. See Note 11—Long-Term Debt for additional information relating to the Notes.
v3.25.4
Fair Value of Financial Information
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Information
Note 18: 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.
Secured seller promissory note from the sale of the Homeowner Services Group—The carrying amount reported on the Consolidated Balance Sheets for the secured seller promissory note, included as part of the consideration from the sale of HOS was $795 million as of December 31, 2025 and 2024. On February 13, 2026, the Company received payment of all amounts payable under the secured seller promissory note, see Note 5—Mergers, Acquisitions and Divestitures for additional information. The accounting fair value measurement of the secured seller promissory note approximated $798 million and $793 million as of December 31, 2025 and 2024, respectively. The accounting fair value measurement is an estimate that is reflective of changes in benchmark interest rates. The secured seller promissory note was 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 December 31, 2025
 Carrying AmountAt Fair Value
Level 1
Level 2Level 3Total
Preferred stock with mandatory redemption requirements$3 $— $— $3 $3 
Long-term debt14,256 11,653 1,065 616 13,334 
As of December 31, 2024
 Carrying AmountAt Fair Value
Level 1
Level 2Level 3Total
Preferred stock with mandatory redemption requirements$3 $— $— $3 $3 
Long-term debt13,155 10,165 1,050 658 11,873 
Fair Value Measurements
To increase consistency and comparability in fair value measurements, GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:
Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date. Financial assets and liabilities utilizing Level 1 inputs include active exchange-traded equity securities, exchange-based derivatives, mutual funds and money market funds.
Level 2—Inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange-based derivatives, commingled investment funds not subject to purchase and sale restrictions and fair-value hedges.
Level 3—Unobservable inputs, such as internally-developed pricing models for the asset or liability due to little or no market activity for the asset or liability. Financial assets and liabilities utilizing Level 3 inputs include infrequently-traded non-exchange-based derivatives and commingled investment funds subject to purchase and sale restrictions.
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 December 31, 2025
Level 1Level 2Level 3Total
Assets:    
Restricted funds$41 $— $— $41 
Rabbi trust investments32 — — 32 
Deposits124 — — 124 
Other investments:
Money market and other20 — — 20 
Fixed-income securities28 7 — 35 
Mark-to-market derivative asset— 2 — 2 
Total assets245 9 — 254 
Liabilities:    
Deferred compensation obligations38 — — 38 
Total liabilities38 — — 38 
Total assets$207 $9 $— $216 
As of December 31, 2024
Level 1Level 2Level 3Total
Assets:    
Restricted funds$44 $— $— $44 
Rabbi trust investments29 — — 29 
Deposits6 — — 6 
Other investments:
Money market and other21 — — 21 
Fixed-income securities88 6 — 94 
Mark-to-market derivative asset— 24 — 24 
Total assets188 30 — 218 
Liabilities:    
Deferred compensation obligations34 — — 34 
Total liabilities34 — — 34 
Total assets$154 $30 $— $184 
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. Long-term restricted funds of $20 million and $15 million were included in other long-term assets on the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively.
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 quoted prices for identical assets in active markets.
Mark-to-market derivative assets and liabilities—The Company employs derivative financial instruments in the form of treasury lock agreements, classified as cash flow hedges, in order to fix the interest cost on existing or forecasted 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 includes mark-to-market derivative assets in other current assets and mark-to-market derivative liabilities in other current liabilities on the Consolidated Balance Sheets.
Other investments—The Company maintains the Active VEBA trust for purposes of paying active union employee medical benefits. The investments in the Active VEBA trust primarily consist of money market funds and available-for-sale fixed-income securities.
The money market and other investments have original maturities of three months or less when purchased. The fair value measurement of the money market and other investments is based on quoted prices for identical assets in active markets and therefore included in the recurring fair value measurements hierarchy as Level 1.
The available-for-sale fixed income securities are primarily investments in U.S. Treasury securities and government bonds. The majority of U.S. Treasury securities and government bonds have been categorized as Level 1 because they trade in highly-liquid and transparent markets. Certain U.S. Treasury securities are based on prices that reflect observable market information, such as actual trade information of similar securities, and are therefore categorized as Level 2, because the valuations are calculated using models which utilize actively traded market data that the Company can corroborate.
As of December 31, 2025, the Company had current assets of $55 million included in Other and had no long-term assets on the Consolidated Balance Sheets for other investments measured and recorded at fair value. As of December 31, 2024, the Company had current assets of $71 million included in Other and $44 million of other long-term assets included in Other on the Consolidated Balance Sheets for other investments measured and recorded at fair value. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income until realized.
The following tables summarize the unrealized positions for available-for-sale fixed income securities:
As of December 31, 2025
Amortized Cost BasisGross unrealized gainsGross unrealized lossesFair Value
Available-for-sale fixed-income securities$36 $— $1 $35 
As of December 31, 2024
Amortized Cost BasisGross unrealized gainsGross unrealized lossesFair Value
Available-for-sale fixed-income securities$94 $2 $2 $94 
The fair value of the Company’s available-for-sale fixed income securities, summarized by contractual maturities, as of December 31, 2025, is as follows:
Amount
Other investments - Available-for-sale fixed-income securities
Less than one year$6 
1 year - 5 years18 
5 years - 10 years4 
Greater than 10 years7 
Total$35 
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
Note 19: Leases
The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. Certain operating leases have renewal options ranging from one year to 60 years. The exercise of lease renewal options is at the Company’s sole discretion. Renewal options that the Company was reasonably certain to exercise are included in the Company’s ROU assets. Certain operating leases contain the option to purchase the leased property. The operating leases for real property, vehicles and equipment will expire over the next 39 years, four years, and five years, respectively.
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 $142 million and $143 million as of December 31, 2025 and 2024, respectively. 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 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 $4 million in 2026 through 2030, and $33 million thereafter, are included in operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets.
Rental expenses under operating leases were $13 million, $12 million and $11 million for the years ended December 31, 2025, 2024 and 2023, respectively.
For the years ended December 31, 2025, 2024 and 2023, cash paid for amounts in lease liabilities, which includes operating cash flows from operating leases, were $12 million, $11 million, $11 million. For the years ended December 31, 2025, 2024 and 2023, ROU assets obtained in exchange for new operating lease liabilities were $8 million, $11 million, $11 million.
As of December 31, 2025, 2024 and 2023, the weighted-average remaining lease term of the operating leases were 18 years, 18 years, 17 years and the weighted-average discount rate of the operating leases was 5%, 5%, 4%.
The future maturities of lease liabilities at December 31, 2025, were $11 million in 2026, $11 million in 2027, $9 million in 2028, $8 million in 2029, $6 million in 2030 and $83 million thereafter. At December 31, 2025, imputed interest was $46 million.
Leases
Note 19: Leases
The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. Certain operating leases have renewal options ranging from one year to 60 years. The exercise of lease renewal options is at the Company’s sole discretion. Renewal options that the Company was reasonably certain to exercise are included in the Company’s ROU assets. Certain operating leases contain the option to purchase the leased property. The operating leases for real property, vehicles and equipment will expire over the next 39 years, four years, and five years, respectively.
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 $142 million and $143 million as of December 31, 2025 and 2024, respectively. 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 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 $4 million in 2026 through 2030, and $33 million thereafter, are included in operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets.
Rental expenses under operating leases were $13 million, $12 million and $11 million for the years ended December 31, 2025, 2024 and 2023, respectively.
For the years ended December 31, 2025, 2024 and 2023, cash paid for amounts in lease liabilities, which includes operating cash flows from operating leases, were $12 million, $11 million, $11 million. For the years ended December 31, 2025, 2024 and 2023, ROU assets obtained in exchange for new operating lease liabilities were $8 million, $11 million, $11 million.
As of December 31, 2025, 2024 and 2023, the weighted-average remaining lease term of the operating leases were 18 years, 18 years, 17 years and the weighted-average discount rate of the operating leases was 5%, 5%, 4%.
The future maturities of lease liabilities at December 31, 2025, were $11 million in 2026, $11 million in 2027, $9 million in 2028, $8 million in 2029, $6 million in 2030 and $83 million thereafter. At December 31, 2025, imputed interest was $46 million.
v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information
Note 20: Segment Information
The Company’s operating segments are comprised of its businesses which generate revenue, incur expense and have separate financial information which is regularly used by the chief operating decision maker to make operating decisions, assess performance and allocate resources. The Company operates its businesses primarily through one reportable segment, the Regulated Businesses segment. The Regulated Businesses segment is the largest component of the Company’s business and includes subsidiaries that provide water and wastewater services to customers in 14 states.
The Company also operates other businesses, primarily MSG, which provide water and wastewater services to the U.S. government on military installations, as well as municipalities. These other businesses do not meet the criteria of a reportable segment in accordance with GAAP, and are collectively presented throughout this Annual Report on Form 10-K within “Other,” which is consistent with how management assesses the results of these businesses.
The accounting policies of the segments are the same as those described in Note 2—Significant Accounting Policies. The Regulated Businesses segment includes intercompany costs that are allocated by Service Company and intercompany interest that is charged by AWCC, both of which are eliminated to reconcile to the Consolidated Statements of Operations. Inter-segment revenues include the sale of water from a regulated subsidiary to subsidiaries within Other, leased office space, and furniture and equipment provided by subsidiaries within Other to regulated subsidiaries. Other also includes corporate costs that are not allocated to the Company’s Regulated Businesses, interest income related to the secured seller promissory note from the sale of HOS, income from assets not associated with the Regulated Businesses, eliminations of inter-segment transactions and fair value adjustments related to acquisitions that have not been allocated to the Regulated Businesses segment. The adjustments related to the acquisitions are reported in Other as they are excluded from segment performance measures evaluated by management.
The Company’s chief operating decision maker is the Chief Executive Officer. The chief operating decision maker uses segment net income or loss to evaluate profit generated from segment assets when making decisions about allocating resources. The chief operating decision maker also uses segment net income to monitor budget versus actual results to assess the performance of the segment.
Presented in the tables below is summarized segment information as of and for the years ended December 31:
 2025
Regulated
Businesses		OtherConsolidated
Operating revenues$4,723 $417 $5,140 
Less:
Operation and maintenance (a)1,642 377 2,019 
Other segment items (b)271 9 280 
Depreciation and amortization883 11 894 
Interest expense474 141 615 
Interest income(5)(85)(90)
Provision for (benefit from) income taxes321 (10)311 
Net income (loss) attributable to common shareholders$1,137 $(26)$1,111 
Total assets$32,649 $2,793 $35,442 
Capital expenditures$3,112 $14 $3,126 
(a)Significant segment expense.
(b)Other segment items included in segment net income includes General taxes, Non-operating benefit costs, net, and Other income (expense), net, primarily Allowance for other funds used during construction.
 2024
Regulated
Businesses		OtherConsolidated
Operating revenues$4,296 $388 $4,684 
Less:
Operation and maintenance (a)1,517 341 1,858 
Other segment items (b)241 9 250 
Depreciation and amortization772 16 788 
Interest expense416 107 523 
Interest income(17)(77)(94)
Provision for income taxes302 6 308 
Net income (loss) attributable to common shareholders$1,065 $(14)$1,051 
Total assets$29,941 $2,889 $32,830 
Capital expenditures$2,838 $18 $2,856 
(a)Significant segment expense.
(b)Other segment items included in segment net income includes General taxes, Non-operating benefit costs, net, and Other income (expense), net, primarily Allowance for other funds used during construction.
 2023
Regulated
Businesses		OtherConsolidated
Operating revenues$3,920 $314 $4,234 
Less:
Operation and maintenance (a)1,441 279 1,720 
Other segment items (b)220 7 227 
Depreciation and amortization693 11 704 
Interest expense364 96 460 
Interest income(28)(45)(73)
Provision for (benefit from) income taxes259 (7)252 
Net income (loss) attributable to common shareholders$971 $(27)$944 
Total assets$27,480 $2,818 $30,298 
Capital expenditures$2,551 $24 $2,575 
(a)Significant segment expense.
(b)Other segment items included in segment net income includes General taxes, Other operating expenses, Non-operating benefit costs, net, and Other income (expense), net, primarily Allowance for other funds used during construction.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
The Company’s Cybersecurity Program
The Company’s cybersecurity program is an integral part of the long-term sustainability and effectiveness of the Company’s operational and technology environment. To protect the integrity of its data and operational and technology systems, the Company employs a “Zero Trust” strategy that uses multiple security measures. This strategy aligns with the National Institute of Standards and Technology Cyber Security Framework and provides preventative, detective, and responsive measures to identify and manage risks. The Company periodically reviews and modifies the implementation of its cybersecurity strategy based on threat trends, program maturity, the results of assessments, and the advice of third-party security consultants.
The Company’s cybersecurity program includes the following areas of focus:
•Technology that includes, among other things, encryption, threat management, monitoring, investigation support and backups for physical devices, such as mobile phones and computers, connected to the Company network;
•Identity and access management controls that include, among other things, multi-factor authentication and safeguards associated with granting elevated privileges;
•Proactive cybersecurity processes, including vulnerability scanning, penetration testing and periodic program assessments by outside security consultants and assessors;
•Reactive cybersecurity processes that are regularly evaluated using various incident response and disaster recovery exercises;
•Employee cyber risk awareness and training, including regular simulation exercises with employees, that covers cybersecurity threats and actions to prevent and report attacks; and
•Third-party risk management and security standards, including due diligence, continuous monitoring, cyber risk scoring and contractual obligations, and periodic review of third-party control environments to align the Company’s risk exposure with its business requirements and risk tolerances.
Third-Party Relationships
The Company utilizes partners and third-party service providers to help deliver safe and reliable water and wastewater services across its regulated operations and has implemented a third-party risk management program to understand the cybersecurity risks to the Company that may arise out of these third-party relationships. The Company categorizes third-party relationships by risk level, which is determined primarily by the service provided by the third-party and its level of access to the Company’s data. Each category has specific cybersecurity controls, data privacy and documentation requirements, which are outlined in the agreement between the Company and the third-party service provider. In addition, the Company evaluates the online security footprint for its service providers at the time of agreement, and on a regular basis, thereafter, depending on the provider’s risk level. The Company reviews its agreements with third-party service providers periodically related to terms and conditions governing cybersecurity controls and data privacy. The Company also monitors, as appropriate, risks relating to potential compromises of sensitive Company information through third parties and reevaluates these risks periodically. In addition, the Company obtains annual attestation reports related to data security and privacy from certain third-party providers to further support compliance with industry-standard cybersecurity protocols.
Cybersecurity Risks
Cybersecurity threats are constantly evolving and have and will continue to become more frequent and sophisticated. Although the Company has implemented measures that it believes are reasonable to safeguard its operational and information technology systems and has sought to establish a culture of continuous monitoring and improvement, the evolving and increasingly complex nature of cybersecurity attacks and vulnerabilities means that these protections may not always be effective. To date, the Company has determined that it has not experienced a cybersecurity incident that has resulted in a material impact to the Company’s financial condition, results of operations, cash flows, or business strategy. For additional information concerning cybersecurity-related risks, see Item 1A—Risk Factors—Risks Related to Our Industry and Business Operations—We have been, and may in the future be, subject to physical and cyber attacks, and —We may sustain losses that exceed or are excluded from our insurance coverage or for which we are self-insured.
Cybersecurity Risk Management and Strategy
The Company has established an enterprise-wide cybersecurity program designed to prevent disruption to critical information systems, minimize the loss or manipulation of sensitive information, and to timely identify, escalate and promptly remediate and recover from cybersecurity incidents and facilitate compliance with regulatory and disclosure requirements. To oversee cybersecurity risk management, the Company employs a dedicated unit, led by the Company’s Chief Information Security Officer (“CISO”), to implement cybersecurity controls, assess and report on cybersecurity risks and consult with the Company’s internal Enterprise Risk Management Committee, a decision-making body which supports and oversees the identification, assessment, prioritization, and mitigation strategies for enterprise-level risks, including cybersecurity risks. The CISO has over 25 years of work experience in the information technology, physical security and cybersecurity fields, including previously serving as the Company’s Chief Security Officer, and holds the Certified Information Systems Security Professionals from the International Information Systems Security Certification Consortium. The CISO serves on several working groups within the Water Information Sharing & Analysis Center and across the water industry. The CISO reports directly to the Company’s Chief Technology and Information Officer, who is responsible for the Company’s information technology program.
The Company’s cybersecurity unit conducts annual and ongoing cybersecurity awareness training and education for the Company’s employees. In 2025, 100% of the Company’s active workforce completed mandatory cybersecurity training. By equipping employees with knowledge and skills, the Company strives to cultivate and maintain a cybersecurity-conscious culture within its workforce.
The Company’s cybersecurity risk assessment process involves considering risks associated with the nature of its business, receiving and processing inputs from internal and external stakeholders, monitoring industry trends and risks and engaging external advisors, to assist in aligning the Company’s cybersecurity processes with industry best practices. Risk assessments are conducted quarterly and annually to evaluate the effectiveness of the Company’s existing security controls and serve as the basis for additional safeguards, security controls and measures. Operational and technical security controls are deployed and integrated as safeguards against unauthorized access to the Company’s information systems. These controls are aimed at (i) assuring the continuity of business processes that are dependent upon automation, (ii) maintaining the integrity of the Company’s data, (iii) supporting regulatory and legislative compliance requirements, and (iv) maintaining safe and reliable service to the Company’s customers.
The Company has also implemented a vulnerability assessment program that is reviewed at least annually and more frequently, depending on changes to the risk environment. This process serves as a guiding enterprise-wide framework to outline the scope and procedures of the Company’s cybersecurity risk management processes. By prioritizing vulnerability management and continuously evaluating the Company’s internal and external environments for vulnerabilities, the Company aims to implement preventative measures to protect its information assets and technology-based infrastructure from cybersecurity threats. This approach helps to reduce the Company’s exposure to material cybersecurity threat risks.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] The Company has established an enterprise-wide cybersecurity program designed to prevent disruption to critical information systems, minimize the loss or manipulation of sensitive information, and to timely identify, escalate and promptly remediate and recover from cybersecurity incidents and facilitate compliance with regulatory and disclosure requirements.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Cybersecurity Governance
The Board of Directors is responsible for oversight of the Company’s cybersecurity program and the Company’s responses to cybersecurity risk. The Board of Directors has delegated to its SETO Committee responsibility for the oversight and review of technology policy, strategy and governance, and cybersecurity issues that could impact the Company’s operational performance or risk profile. The SETO Committee meets at least quarterly and receives reports related to cybersecurity threats, trends and risks, and related mitigation activities. In addition, the SETO Committee and the Board of Directors receive reports of periodic external assessments and internal testing of the effectiveness of the Company’s cybersecurity program. The SETO Committee coordinates with the Audit, Finance and Risk Committee, as appropriate, on matters related to cybersecurity risk. The Audit, Finance and Risk Committee is responsible for, among other things, overseeing the adequacy and effectiveness of the Company’s system of internal controls and the Company’s risk assessment and management strategy, including with respect to cybersecurity risks.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board of Directors is responsible for oversight of the Company’s cybersecurity program and the Company’s responses to cybersecurity risk.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The SETO Committee meets at least quarterly and receives reports related to cybersecurity threats, trends and risks, and related mitigation activities.
Cybersecurity Risk Role of Management [Text Block] The Board of Directors is responsible for oversight of the Company’s cybersecurity program and the Company’s responses to cybersecurity risk. The Board of Directors has delegated to its SETO Committee responsibility for the oversight and review of technology policy, strategy and governance, and cybersecurity issues that could impact the Company’s operational performance or risk profile. The SETO Committee meets at least quarterly and receives reports related to cybersecurity threats, trends and risks, and related mitigation activities. In addition, the SETO Committee and the Board of Directors receive reports of periodic external assessments and internal testing of the effectiveness of the Company’s cybersecurity program. The SETO Committee coordinates with the Audit, Finance and Risk Committee, as appropriate, on matters related to cybersecurity risk. The Audit, Finance and Risk Committee is responsible for, among other things, overseeing the adequacy and effectiveness of the Company’s system of internal controls and the Company’s risk assessment and management strategy, including with respect to cybersecurity risks.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The Board of Directors has delegated to its SETO Committee responsibility for the oversight and review of technology policy, strategy and governance, and cybersecurity issues that could impact the Company’s operational performance or risk profile.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The CISO has over 25 years of work experience in the information technology, physical security and cybersecurity fields, including previously serving as the Company’s Chief Security Officer, and holds the Certified Information Systems Security Professionals from the International Information Systems Security Certification Consortium. The CISO serves on several working groups within the Water Information Sharing & Analysis Center and across the water industry.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] In addition, the SETO Committee and the Board of Directors receive reports of periodic external assessments and internal testing of the effectiveness of the Company’s cybersecurity program.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Regulation The Company’s regulated utilities are subject to regulation by multiple state utility commissions or other entities engaged in utility regulation, collectively referred to as Public Utility Commissions (“PUCs”). As such, the Company follows authoritative accounting principles required for rate regulated utilities, which requires the effects of rate regulation to be reflected in the Company’s Consolidated Financial Statements. PUCs generally authorize revenue at levels intended to recover the estimated costs of providing service, plus a return on net investments, or rate base. Regulators may also approve accounting treatments, long-term financing programs and cost of capital, operation and maintenance (“O&M”) expenses, capital expenditures, taxes, affiliated transactions and relationships, reorganizations, mergers, acquisitions and dispositions, along with imposing certain penalties or granting certain incentives. Due to timing and other differences in the collection of a regulated utility’s revenues, these authoritative accounting principles allow a cost that would otherwise be charged as an expense by a non-regulated entity, to be deferred as a regulatory asset if it is probable that such cost is recoverable through future rates. Conversely, these principles also require the creation of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future, or amounts collected in excess of costs incurred and are refundable to customers.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires that management make estimates, assumptions and judgments that could affect the Company’s financial condition, results of operations and cash flows. Actual results could differ from these estimates, assumptions and judgments. The Company considers its critical accounting estimates to include (i) the application of regulatory accounting principles and the related determination and estimation of regulatory assets and liabilities, (ii) revenue recognition and the estimates used in the calculation of unbilled revenue, (iii) accounting for income taxes, (iv) benefit plan assumptions and (v) the estimates and judgments used in determining loss contingencies. The Company’s critical accounting estimates that are particularly sensitive to change in the near term are amounts reported for regulatory assets and liabilities, income taxes, benefit plan assumptions and contingency-related obligations.
Principles of Consolidation
The accompanying Consolidated Financial Statements include the accounts of American Water and all of its subsidiaries in which a controlling interest is maintained after the elimination of intercompany balances and transactions.
Property, Plant and Equipment
Property, plant and equipment consists primarily of utility plant utilized by the Company’s regulated utilities. Additions to utility plant and replacement of retirement units of utility plant are capitalized and include costs such as materials, direct labor, payroll taxes and benefits, indirect items such as engineering and supervision, transportation and an allowance for funds used during construction (“AFUDC”). Costs for repair, maintenance and minor replacements are charged to O&M expense as incurred.
The cost of utility plant is depreciated using the straight-line average remaining life, group method. The Company’s regulated utilities record depreciation in conformity with amounts approved by PUCs, after regulatory review of the information the Company submits to support its estimates of the assets’ remaining useful lives.
Nonutility property consists primarily of buildings and equipment utilized by the Military Services Group (“MSG”) and for internal operations. This property is stated at cost, net of accumulated depreciation, which is calculated using the straight-line method over the useful lives of the assets.
When units of property, plant and equipment are replaced, retired or abandoned, the carrying value is credited against the asset and charged to accumulated depreciation. To the extent the Company recovers cost of removal or other retirement costs through rates after the retirement costs are incurred, a regulatory asset is recorded. In some cases, the Company recovers retirement costs through rates during the life of the associated asset and before the costs are incurred. These amounts result in a regulatory liability being reported based on the amounts previously recovered through customer rates, until the costs to retire those assets are incurred.
The costs incurred to acquire and internally develop computer software for internal use are capitalized as a unit of property.
Cash and Cash Equivalents, and Restricted Funds
Substantially all cash is invested in interest-bearing accounts. All highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents.
Restricted funds consist primarily of proceeds from financings for the construction and capital improvement of facilities, and deposits for future services under O&M projects, primarily performed by MSG. Proceeds are held in escrow or interest-bearing accounts until the designated expenditures are incurred. Restricted funds are classified on the Consolidated Balance Sheets as either current or long-term based upon the intended use of the funds.
Accounts Receivable and Unbilled Revenues
Accounts receivable include regulated utility customer accounts receivable, which represent amounts billed to water and wastewater customers generally on a monthly basis. Credit is extended based on the guidelines of the applicable PUCs and collateral is generally not required. Also included are the trade accounts receivable of other businesses, primarily MSG, and nonutility customer receivables of the Regulated Businesses. Unbilled revenues are accrued when service has been provided but has not been billed to customers and when costs exceed billings on certain construction contracts.
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.
Materials and Supplies
Materials and supplies are stated at the lower of cost or net realizable value. Cost is determined using the average cost method.
Seller Promissory Note The Company’s secured seller promissory note was accounted for under Accounting Standards Codification (“ASC”) Topic 310, Receivables, and classified as held for investment and accounted for at amortized cost at the present value of consideration received for the sale of its Homeowner Services Group (“HOS”) business. Interest income from the secured seller promissory note was accrued based on the principal amount outstanding and earned over the contractual life of the loan.
Leases
The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, accrued liabilities and operating lease liabilities on the Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, accrued liabilities and other long-term liabilities on the Consolidated Balance Sheets. The Company has made an accounting policy election not to include operating leases with a lease term of twelve months or less.
ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are generally recognized at the commencement date based on the present value of discounted lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of discounted lease payments. The implicit rate is used when readily determinable. ROU assets also include any upfront lease payments and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.
The Company has lease agreements with lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs), which are generally accounted for separately; however, the Company accounts for the lease and non-lease components as a single lease component for certain leases. Certain lease agreements include variable rental payments adjusted periodically for inflation. Additionally, the Company applies a portfolio approach to effectively account for the ROU assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Leases
The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, accrued liabilities and operating lease liabilities on the Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, accrued liabilities and other long-term liabilities on the Consolidated Balance Sheets. The Company has made an accounting policy election not to include operating leases with a lease term of twelve months or less.
ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are generally recognized at the commencement date based on the present value of discounted lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of discounted lease payments. The implicit rate is used when readily determinable. ROU assets also include any upfront lease payments and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.
The Company has lease agreements with lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs), which are generally accounted for separately; however, the Company accounts for the lease and non-lease components as a single lease component for certain leases. Certain lease agreements include variable rental payments adjusted periodically for inflation. Additionally, the Company applies a portfolio approach to effectively account for the ROU assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Goodwill
Goodwill represents the excess of the purchase price paid over the estimated fair value of the assets acquired and liabilities assumed in the acquisition of a business. Goodwill is not amortized and must be allocated at the reporting unit level, which is defined as an operating segment or one level below, and tested for impairment at least annually, or more frequently if an event occurs or circumstances change that would more likely than not, reduce the fair value of a reporting unit below its carrying value.
The Company’s goodwill is primarily associated with the acquisition of American Water by an affiliate of the Company’s previous owner in 2003 and has been allocated to reporting units based on the fair values at the date of the acquisitions. For purposes of testing goodwill for impairment, the reporting units in the Regulated Businesses segment are aggregated into a single reporting unit. The goodwill of Other is attributable to the MSG reporting unit.
The Company’s annual impairment testing is performed as of November 30 of each year. The Company assesses qualitative factors to determine whether quantitative testing is necessary. If it is determined, based upon qualitative factors, that the estimated fair value of a reporting unit is, more likely than not, greater than its carrying value, no further testing is required. If the Company bypasses the qualitative assessment or performs the qualitative assessment and determines that the estimated fair value of a reporting unit, is more likely than not, less than its carrying value, a quantitative, fair value-based assessment is performed. This quantitative testing compares the estimated fair value of the reporting unit to its respective net carrying value, including goodwill, on the measurement date. An impairment loss will be recognized in the amount equal to the excess of the reporting unit’s carrying value compared to its estimated fair value, limited to the total amount of goodwill allocated to that reporting unit.
Application of goodwill impairment testing requires management judgment, including the identification of reporting units and determining the fair value of reporting units. Management estimates fair value using a discounted cash flow analysis. Significant assumptions used in these fair value estimations include, but are not limited to, forecasts of future operating results, discount rate and growth rate.
The Company believes the assumptions and other considerations used to value goodwill to be appropriate, however, if actual experience differs from the assumptions and considerations used in its analysis, the resulting change could have a material adverse impact on the Consolidated Financial Statements.
Impairments of Long-Lived Assets
Long-lived assets, other than goodwill, primarily include property, plant and equipment. The Company evaluates long-lived assets for impairment when circumstances indicate the carrying value of those assets may not be recoverable. The Company determines if long-lived assets are potentially impaired by comparing the undiscounted expected future cash flows to the carrying value when indicators of impairment exist. When the undiscounted cash flow analysis indicates a long-lived asset may not be recoverable, the amount of the impairment loss is determined by measuring the excess of the carrying amount of the long-lived asset or asset group over its fair value.
The long-lived assets of the Company’s regulated utilities are grouped on a separate entity basis for impairment testing, as they are integrated state-wide operations that do not have the option to curtail service and generally have uniform utility tariffs. A regulatory asset is charged to earnings if and when future recovery in rates of that asset is no longer probable.
The Company believes the assumptions and other considerations used to value long-lived assets to be appropriate, however, if actual experience differs from the assumptions and considerations used in its estimates, the resulting change could have a material adverse impact on the Consolidated Financial Statements.
Advances for Construction and Contributions in Aid of Construction
Regulated utility subsidiaries may receive advances for construction and contributions in aid of construction from customers, home builders and real estate developers to fund construction necessary to extend service to new areas.
Advances are refundable for limited periods of time as new customers begin to receive service or other contractual obligations are fulfilled.These amounts represent expected refunds during the next 12-month period.
Advances that are no longer refundable are reclassified to contributions in aid of construction. Contributions in aid of construction are permanent collections of plant assets or cash for a particular construction project. For ratemaking purposes, the amount of such contributions generally serves as a rate base reduction since the contributions represent non-investor supplied funds.
Generally, the Company depreciates utility plant funded by contributions and amortizes its contributions in aid of construction balance as a reduction to depreciation expense, producing a result which is functionally equivalent to reducing the original cost of the utility plant for the contributions. In accordance with applicable regulatory guidelines, some of the Company’s utility subsidiaries do not amortize contributions in aid of construction, and any contribution received remains on the balance sheet indefinitely.
Revenues Recognition
Under ASC Topic 606, Revenue From Contracts With Customers, and all related amendments (collectively, “ASC 606”), a performance obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer. Revenue is recognized when performance obligations are satisfied and the customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for goods or services. Under ASC 606, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identifies the contracts with a customer; (ii) identifies the performance obligations within the contract, including whether any performance obligations are distinct and capable of being distinct in the context of the contract; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenue when, or as, the Company satisfies each performance obligation.
The Company’s revenues from contracts with customers are discussed below. Customer payments for contracts are generally due within 30 days of billing and none of the contracts with customers have payment terms that exceed one year; therefore, the Company elected to apply the significant financing component practical expedient and no amount of consideration has been allocated as a financing component.
Regulated Businesses Revenue
Revenue from the Company’s Regulated Businesses is generated primarily from water and wastewater services delivered to customers. These contracts contain a single performance obligation, the delivery of water and/or wastewater services, as the promise to transfer the individual good or service is not separately identifiable from other promises within the contracts and, therefore, is not distinct. Revenues are recognized over time, as services are provided. There are generally no significant financing components or variable consideration. Revenues include amounts billed to customers on a cycle basis and unbilled amounts calculated based on estimated usage from the date of the meter reading associated with the latest customer bill, to the end of the accounting period. The amounts that the Company has a right to invoice are determined by each customer’s actual usage, an indicator that the invoice amount corresponds directly to the value transferred to the customer.
The Company recognizes revenues for certain ratemaking mechanisms that meet the criteria for alternative revenue program accounting. These mechanisms, which include the Company’s revenue stability mechanisms, qualify as alternative revenue programs if they have been authorized for rate recovery, are objectively determinable and probable of recovery and are expected to be collected within 24 months following the end of the period in which they were recognized. For mechanisms that meet these criteria, the Company adjusts revenue and records an offsetting regulatory asset or liability once the condition or event allowing additional billing or refund has occurred. See Note 4—Revenue Recognition for disaggregated revenue information.
Other Revenue
The Company has long-term, fixed fee contracts to operate and maintain water and wastewater systems for the U.S. government on military installations and facilities owned by municipal customers. Billing and revenue recognition for the fixed fee revenues occurs ratably over the term of the contract, as customers simultaneously receive and consume the benefits provided by the Company. Additionally, these contracts allow the Company to make capital improvements to underlying infrastructure, which are initiated through separate modifications or amendments to the original contract, whereby stand-alone, fixed pricing is separately stated for each improvement. The Company has determined that these capital improvements are separate performance obligations, with revenue recognized over time based on performance completed at the end of each reporting period. Losses on contracts are recognized during the period in which the losses first become probable and estimable. Revenues recognized during the period in excess of billings on construction contracts are recorded as unbilled revenues or other long-term assets, with billings in excess of revenues recorded as other current or long-term liabilities until the revenue recognition criteria are met. Changes in contract performance and related estimated contract profitability may result in revisions to costs and revenues and are recognized in the period in which revisions are determined.
Income Taxes
The Company and its subsidiaries participate in a consolidated federal income tax return for U.S. tax purposes. Members of the consolidated group are charged with the amount of federal income tax expense determined as if they filed separate returns.
Certain income and expense items are accounted for in different time periods for financial reporting than for income tax reporting purposes. The Company provides deferred income taxes on the difference between the tax basis of assets and liabilities and the amounts at which they are carried in the financial statements. These deferred income taxes are based on the enacted tax rates expected to be in effect when these temporary differences are projected to reverse. In addition, the regulated utility subsidiaries recognize regulatory assets and liabilities for the effect on revenues expected to be realized as the tax effects of temporary differences, previously flowed through to customers, reverse.
Investment tax credits have been deferred by the regulated utility subsidiaries and are being amortized to income over the average estimated service lives of the related assets.
The Company recognizes accrued interest and penalties related to tax positions as a component of income tax expense and accounts for sales tax collected from customers and remitted to taxing authorities on a net basis.
Allowance for Funds Used During Construction AFUDC is a non-cash credit to income with a corresponding charge to utility plant that represents the cost of borrowed funds or a return on equity funds devoted to plant under construction. The regulated utility subsidiaries record AFUDC to the extent permitted by the PUCs. The portion of AFUDC attributable to borrowed funds is shown as a reduction of interest expense in the Consolidated Statements of Operations. Any portion of AFUDC attributable to equity funds would be included in Other, net in the Consolidated Statements of Operations.
Derivative Financial Instruments
The Company uses derivative financial instruments primarily for purposes of hedging exposures to fluctuations in interest rates. These derivative contracts are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. The Company does not enter into derivative contracts for speculative purposes and does not use leveraged instruments.
All derivatives are recognized on the balance sheet at fair value. On the date the derivative contract is entered into, the Company designates the derivative as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash-flow hedge).
The gains and losses on the effective portion of cash-flow hedges are recorded in other comprehensive income, until earnings are affected by the variability of cash flows. Any ineffective portion of designated cash-flow hedges is recognized in current-period earnings.
Cash flows from derivative contracts are included in net cash provided by operating activities on the Consolidated Statements of Cash Flows.
Pension and Other Postretirement Benefits
The Company maintains defined benefit pension plans and other postretirement benefit plans for eligible employees and retirees. The plan obligation and costs of providing benefits under these plans are annually measured as of December 31. The measurement involves various factors, assumptions and accounting elections. The impact of assumption changes or experience different from that assumed on pension and other postretirement benefit obligations is recognized over time rather than immediately recognized in the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income. Cumulative gains and losses that are in excess of 10% of the greater of either the projected benefit obligation or the fair value of plan assets are amortized over the expected average remaining future service period of the current active membership for the plans, with the exception of the American Water Pension Plan for Certain Inactive Participants, which is amortized over the average remaining life expectancy of the inactive participants. See Note 15—Employee Benefits for additional information.
The Company’s policy is to recognize curtailments when the total expected future service of plan participants is reduced by greater than 10% due to an event that results in terminations and/or retirements.
New Accounting Standards
Presented in the table below are new accounting standards that were adopted by the Company in 2025:
StandardDescriptionDate of AdoptionApplicationEffect on the Consolidated Financial Statements
Income TaxesThe guidance in this standard requires disclosure of a tax rate reconciliation table, in both percentages and reporting currency amounts, which includes additional categories of information about federal, state, and foreign income taxes and provides further details about reconciling items in certain categories that meet a quantitative threshold. The guidance also requires an annual disclosure of income taxes paid, net of refunds, disaggregated by federal, state, and foreign taxes paid, and further disaggregated by jurisdiction based on a quantitative threshold. The standard includes other disclosure requirements and eliminates certain existing disclosure requirements.January 1, 2025Retrospective
The Company adopted the standard as of December 31, 2025, including a recast of 2024 and 2023 information, by including additional required disclosures within the Notes to the Consolidated Financial Statements. See Note 14—Income Taxes for further details.
Presented in the table below are recently issued accounting standards that have not yet been adopted by the Company as of December 31, 2025, recently issued accounting standards not presented below were determined to be not applicable, or not material, to the Company:
StandardDescriptionDate of AdoptionApplicationEffect on the Consolidated Financial Statements
Income Statement DisaggregationThe guidance in this standard enhances disclosures related to income statement expenses to further disaggregate expenses in the footnotes to the financial statements. The standard requires disaggregation of any relevant expense caption presented on the face of the income statement that contains the following expense categories: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion. Further, the standard requires disclosure of the total amount and the entity’s definition of selling expenses.Annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027Prospective, with retrospective application also permitted.The Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
Induced Conversions of Convertible Debt InstrumentsThe guidance in this standard clarifies the requirements for determining whether to account for certain settlements of convertible debt instruments as induced conversions or extinguishments. The guidance requires an entity to account for a settlement as an induced conversion if the inducement offer includes the issuance of all of the consideration issuable under the conversion privileges provided in the terms of the existing convertible debt instrument. Annual periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periodsProspective, with retrospective application also permitted.The Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
Accounting for Internal-Use SoftwareThe guidance in this standard removes all reference to prescriptive and sequential software development stages, requiring an entity to start capitalizing software costs when the following criteria are both met: (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. Further, the standard requires disclosure for all capitalized internal-use software costs and removes the requirement for intangibles disclosures for capitalized internal-use software.Annual periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periodsProspective, with a modified transition or retrospective application also permittedThe Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
Accounting for Government Grants Received by Business EntitiesIntroduces authoritative GAAP guidance for accounting and disclosure of government grants received by business entities, addressing the previous lack of specific guidance and reducing diversity in practice. The standard requires grants to be recognized when compliance with conditions is probable and receipt is likely, and allows presentation either as deferred income or as a reduction of related costs. Annual periods beginning after December 15, 2028 and interim reporting periods within those annual reporting periodsModified prospective, modified retrospective, or retrospective applications are permitted
The Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
Reclassifications
Certain reclassifications have been made to prior periods in the Consolidated Financial Statements and Notes to conform to the current presentation.
v3.25.4
Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of cash and cash equivalents
Presented in the table below is a reconciliation of the cash and cash equivalents and restricted funds amounts as presented on the Consolidated Balance Sheets to the sum of such amounts presented on the Consolidated Statements of Cash Flows for the years ended December 31:
 20252024
Cash and cash equivalents$98 $96 
Restricted funds21 29 
Restricted funds included in other long-term assets20 15 
Cash and cash equivalents and restricted funds as presented on the Consolidated Statements of Cash Flows$139 $140 
Schedule of restrictions on cash and cash equivalents
Presented in the table below is a reconciliation of the cash and cash equivalents and restricted funds amounts as presented on the Consolidated Balance Sheets to the sum of such amounts presented on the Consolidated Statements of Cash Flows for the years ended December 31:
 20252024
Cash and cash equivalents$98 $96 
Restricted funds21 29 
Restricted funds included in other long-term assets20 15 
Cash and cash equivalents and restricted funds as presented on the Consolidated Statements of Cash Flows$139 $140 
Schedule of allowance for funds used during construction Presented in the table below is AFUDC for the years ended December 31:
202520242023
Allowance for other funds used during construction$42 $38 $41 
Allowance for borrowed funds used during construction26 21 24 
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 2025:
StandardDescriptionDate of AdoptionApplicationEffect on the Consolidated Financial Statements
Income TaxesThe guidance in this standard requires disclosure of a tax rate reconciliation table, in both percentages and reporting currency amounts, which includes additional categories of information about federal, state, and foreign income taxes and provides further details about reconciling items in certain categories that meet a quantitative threshold. The guidance also requires an annual disclosure of income taxes paid, net of refunds, disaggregated by federal, state, and foreign taxes paid, and further disaggregated by jurisdiction based on a quantitative threshold. The standard includes other disclosure requirements and eliminates certain existing disclosure requirements.January 1, 2025Retrospective
The Company adopted the standard as of December 31, 2025, including a recast of 2024 and 2023 information, by including additional required disclosures within the Notes to the Consolidated Financial Statements. See Note 14—Income Taxes for further details.
Presented in the table below are recently issued accounting standards that have not yet been adopted by the Company as of December 31, 2025, recently issued accounting standards not presented below were determined to be not applicable, or not material, to the Company:
StandardDescriptionDate of AdoptionApplicationEffect on the Consolidated Financial Statements
Income Statement DisaggregationThe guidance in this standard enhances disclosures related to income statement expenses to further disaggregate expenses in the footnotes to the financial statements. The standard requires disaggregation of any relevant expense caption presented on the face of the income statement that contains the following expense categories: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion. Further, the standard requires disclosure of the total amount and the entity’s definition of selling expenses.Annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027Prospective, with retrospective application also permitted.The Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
Induced Conversions of Convertible Debt InstrumentsThe guidance in this standard clarifies the requirements for determining whether to account for certain settlements of convertible debt instruments as induced conversions or extinguishments. The guidance requires an entity to account for a settlement as an induced conversion if the inducement offer includes the issuance of all of the consideration issuable under the conversion privileges provided in the terms of the existing convertible debt instrument. Annual periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periodsProspective, with retrospective application also permitted.The Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
Accounting for Internal-Use SoftwareThe guidance in this standard removes all reference to prescriptive and sequential software development stages, requiring an entity to start capitalizing software costs when the following criteria are both met: (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. Further, the standard requires disclosure for all capitalized internal-use software costs and removes the requirement for intangibles disclosures for capitalized internal-use software.Annual periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periodsProspective, with a modified transition or retrospective application also permittedThe Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
Accounting for Government Grants Received by Business EntitiesIntroduces authoritative GAAP guidance for accounting and disclosure of government grants received by business entities, addressing the previous lack of specific guidance and reducing diversity in practice. The standard requires grants to be recognized when compliance with conditions is probable and receipt is likely, and allows presentation either as deferred income or as a reduction of related costs. Annual periods beginning after December 15, 2028 and interim reporting periods within those annual reporting periodsModified prospective, modified retrospective, or retrospective applications are permitted
The Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.
v3.25.4
Regulatory Matters (Tables)
 12 Months Ended
Dec. 31, 2025
Regulated Operations [Abstract]  
Schedule of generate rate cases and infrastructure surcharges
The table below summarizes the annualized incremental revenues, assuming a constant sales volume and customer count, resulting from general rate case authorizations that became effective during 2025. The amounts include reductions for the amortization of the excess accumulated deferred income taxes (“EADIT”) that are generally offset in income tax expense.
Effective DateAmount
General rate cases by state:
KentuckyDecember 16, 2025$18 
HawaiiAugust 1, 20251 
IowaAugust 1, 2025 (a)13 
MissouriMay 28, 202563 
Indiana, Step IncreaseMay 14, 202517 
VirginiaFebruary 24, 2025 (b)15 
TennesseeJanuary 21, 20251 
IllinoisJanuary 1, 2025105 
California, Step IncreaseJanuary 1, 202517 
Total general rate case authorizations$250 
(a)Interim rates of $5 million were effective May 11, 2024. The Iowa Utilities Commission issued its final order on May 21, 2025.
(b)Interim rates were effective May 1, 2024, and the difference between interim and final approved rates were subject to refund. The Virginia State Corporation Commission issued its final order on February 24, 2025.
The table below summarizes the annualized incremental revenues, assuming a constant sales volume and customer count, resulting from general rate case authorizations that became effective on or after January 1, 2026. The amounts include reductions for the amortization of EADIT that are generally offset in income tax expense.
Effective DateAmount
General rate cases by state:
California, Attrition IncreaseJanuary 1, 2026$14 
Total general rate case authorizations$14 
Schedule of annualized incremental revenues Presented in the table below are annualized incremental revenues, assuming a constant sales volume and customer count, resulting from infrastructure surcharge authorizations that became effective during 2025:
Effective DateAmount
Infrastructure surcharges by state:
New JerseyNovember 29, 2025$26 
PennsylvaniaOctober 1, 20255 
New JerseyMay 30, 202515 
MissouriFebruary 7, 202517 
KentuckyJanuary 1, 20252 
West VirginiaJanuary 1, 20254 
Total infrastructure surcharge authorizations$69 
Presented in the table below are annualized incremental revenues, assuming a constant sales volume and customer count, resulting from infrastructure surcharge authorizations that became effective on or after January 1, 2026:
Effective DateAmount
Infrastructure surcharge filings by state:
PennsylvaniaJanuary 1, 2026$11 
IllinoisJanuary 1, 20265 
Total infrastructure surcharge filings$16 
Schedule of composition of regulatory assets Presented in the table below is the composition of regulatory assets as of December 31:
20252024
Removal costs recoverable through rates$323 $356 
Deferred pension expense276 318 
Customer lead line replacements80 86 
Unamortized debt expense84 84 
Regulatory balancing accounts65 71 
Programmed maintenance expense60 57 
Purchase premium recoverable through rates49 50 
Other195 128 
Total (non-current) regulatory assets1,132 1,150 
Current regulatory assets (a)22 19 
Total regulatory assets$1,154 $1,169 
(a)Current regulatory assets are included in other current assets on the Consolidated Balance Sheets.
Schedule of composition of regulatory liabilities Presented in the table below is the composition of regulatory liabilities as of December 31:
20252024
Income taxes recovered through rates$959 $1,016 
Removal costs recovered through rates248 245 
PFAS Multi-district litigation settlements91 — 
Postretirement benefit liability43 71 
Other75 84 
Total (non-current) regulatory liabilities1,416 1,416 
Current regulatory liabilities (a)24 — 
Total regulatory liabilities$1,440 $1,416 
(a)Current regulatory liabilities, which as of December 31, 2025, primarily consisted of PFAS Multi-district litigation settlements, are included in other current liabilities on the Consolidated Balance Sheets.
v3.25.4
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of disaggregation of revenue
Presented in the table below are operating revenues disaggregated for the year ended December 31, 2025:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services: 
Residential$2,557 $— $2,557 
Commercial981 — 981 
Fire service189 — 189 
Industrial195 — 195 
Public and other311 — 311 
Total water services4,233 — 4,233 
Wastewater services: 
Residential287 — 287 
Commercial86 — 86 
Industrial10 — 10 
Public and other39 — 39 
Total wastewater services422 — 422 
Miscellaneous utility charges49 — 49 
Alternative revenue programs— 12 12 
Lease contract revenue— 7 7 
Total Regulated Businesses4,704 19 4,723 
Other417 — 417 
Total operating revenues$5,121 $19 $5,140 
(a)Includes revenues associated with 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 year ended December 31, 2024:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services: 
Residential$2,344 $5 $2,349 
Commercial881 4 885 
Fire service164 — 164 
Industrial182 2 184 
Public and other291 — 291 
Total water services3,862 11 3,873 
Wastewater services:
Residential243 2 245 
Commercial70 — 70 
Industrial12 — 12 
Public and other36 — 36 
Total wastewater services361 2 363 
Miscellaneous utility charges42 — 42 
Alternative revenue programs— 10 10 
Lease contract revenue— 8 8 
Total Regulated Businesses4,265 31 4,296 
Other388 — 388 
Total operating revenues$4,653 $31 $4,684 
(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 year ended December 31, 2023:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services: 
Residential$2,143 $— $2,143 
Commercial798 — 798 
Fire service158 — 158 
Industrial167 — 167 
Public and other274 — 274 
Total water services3,540 — 3,540 
Wastewater services:
Residential228 — 228 
Commercial62 — 62 
Industrial8 — 8 
Public and other29 — 29 
Total wastewater services327 — 327 
Miscellaneous utility charges35 — 35 
Alternative revenue programs— 10 10 
Lease contract revenue— 8 8 
Total Regulated Businesses3,902 18 3,920 
Other315 (1)314 
Total operating revenues$4,217 $17 $4,234 
(a)Includes revenues associated with alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP.
v3.25.4
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of major classes of property, plant and equipment by category
Presented in the table below are the major classes of property, plant and equipment by category as of December 31:
20252024Range of Remaining Useful LivesWeighted Average Useful Life
Utility plant:    
Land and other non-depreciable assets$317 $302   
Sources of supply1,252 1,124 
20 to 114 years
45 years
Treatment and pumping5,093 4,786 
2 to 119 years
40 years
Transmission and distribution15,807 14,745 
15 to 128 years
65 years
Services, meters and fire hydrants7,046 6,356 
2 to 109 years
28 years
General structures and equipment3,116 2,813 
2 to 109 years
16 years
Waste collection2,124 1,986 
5 to 145 years
52 years
Waste treatment, pumping and disposal1,530 1,425 
4 to 165 years
32 years
Construction work in progress1,548 1,359   
Other plant19 22 
1 to 54 years
18 years
Total utility plant37,852 34,918   
Nonutility property103 141 
3 to 50 years
16 years
Total property, plant and equipment$37,955 $35,059   
v3.25.4
Allowance for Uncollectible Accounts (Tables)
 12 Months Ended
Dec. 31, 2025
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]  
Schedule of allowances for uncollectible accounts
Presented in the table below are the changes in the allowances for uncollectible accounts for the years ended December 31:
202520242023
Balance as of January 1$(53)$(51)$(60)
Amounts charged to expense(48)(31)(24)
Amounts written off43 29 33 
Balance as of December 31$(58)$(53)$(51)
v3.25.4
Goodwill (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in Goodwill Assets
Presented in the table below are the changes in the carrying value of goodwill for the years ended December 31, 2025 and 2024:
 Regulated BusinessesOtherConsolidated
CostAccumulated ImpairmentCostAccumulated ImpairmentCostAccumulated ImpairmentTotal Net
Balance as of January 1, 2024$3,470 $(2,332)$113 $(108)$3,583 $(2,440)$1,143 
Goodwill from acquisitions1 — — — 1 — 1 
Balance as of December 31, 2024$3,471 $(2,332)$113 $(108)$3,584 $(2,440)$1,144 
Goodwill from acquisitions12 — — — 12 — 12 
Balance as of December 31, 2025$3,483 $(2,332)$113 $(108)$3,596 $(2,440)$1,156 
v3.25.4
Shareholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Schedule of accumulated other comprehensive loss
Presented in the table below are the changes in accumulated other comprehensive loss by component, net of tax, for the years ended December 31, 2025, 2024 and 2023:
 Defined Benefit PlansGain (Loss) on Cash Flow HedgeGain (Loss) on Fixed-Income SecuritiesAccumulated Other Comprehensive Income (Loss)
Employee Benefit Plan Funded StatusAmortization of Prior Service CostAmortization of Actuarial Loss
Beginning balance as of January 1, 2023$(93)$1 $70 $(1)$— $(23)
Other comprehensive (loss) income before reclassification(3)— — (8)4 (7)
Amounts reclassified from accumulated other comprehensive income— — 4 — — 4 
Net other comprehensive (loss) income(3)— 4 (8)4 (3)
Ending balance as of December 31, 2023$(96)$1 $74 $(9)$4 $(26)
Other comprehensive income (loss) before reclassification1 — — 39 (2)38 
Net other comprehensive income (loss)1 — — 39 (2)38 
Ending balance as of December 31, 2024$(95)$1 $74 $30 $2 $12 
Other comprehensive (loss) income before reclassification— — — (4)1 (3)
Amounts reclassified from accumulated other comprehensive income (loss)— — 1 — (4)(3)
Net other comprehensive income (loss)— — 1 (4)(3)(6)
Ending balance as of December 31, 2025$(95)$1 $75 $26 $(1)$6 
Schedule of dividends declared
During 2025, 2024 and 2023, the Company paid $633 million, $585 million and $532 million in cash dividends, respectively. Presented in the table below is the per share cash dividends paid for the years ended December 31:
202520242023
December$0.8275 $0.7650 $0.7075 
September$0.8275 $0.7650 $0.7075 
June$0.8275 $0.7650 $0.7075 
March$0.7650 $0.7075 $0.6550 
v3.25.4
Stock Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of stock-based compensation expense Presented in the table below is the stock-based compensation expense recorded in O&M expense in the accompanying Consolidated Statements of Operations for the years ended December 31:
202520242023
RSUs and PSUs$30 $34 $23 
Nonqualified employee stock purchase plan2 2 2 
Stock-based compensation32 36 25 
Income tax benefit(7)(8)(6)
Stock-based compensation expense, net of tax$25 $28 $19 
Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of restricted stock unit activity
Presented in the table below is RSU and director stock unit activity for the year ended December 31, 2025:
Shares (in thousands)Weighted Average Grant Date Fair Value (per share)
Non-vested total as of December 31, 202475 $131.20 
Granted95 129.42 
Vested(60)133.39 
Forfeited(11)127.01 
Non-vested total as of December 31, 202599 $128.63 
Performance Condition  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of restricted stock unit activity
Presented in the table below is PSU activity for the year ended December 31, 2025:
Shares (in thousands)Weighted Average Grant Date Fair Value (per share)
Non-vested total as of December 31, 2024322 $130.04 
Granted211 128.59 
Vested(74)147.45 
Forfeited(81)106.41 
Non-vested total as of December 31, 2025378 $130.93 
Schedule of weighted average assumptions Presented in the table below are the weighted average assumptions used in the Monte Carlo simulation and the weighted average grant date fair values of PSUs granted for the years ended December 31:
 202520242023
Expected volatility23.25%22.98%25.45%
Risk-free interest rate4.27%4.39%4.31%
Expected life (years)3.03.03.0
Grant date fair value per share$118.29$118.95$168.00
v3.25.4
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of long-term debt Presented in the table below are the components of long-term debt as of December 31:
RateWeighted Average RateMaturity20252024
Long-term debt of AWCC: (a)     
Senior notes—fixed rate
2.30%-8.27%
4.24%
2026-2055
$12,961 $11,786 
Private activity bonds and government funded debt—fixed rate
0.00%-3.88%
3.07%
2028-2045
187 187 
Long-term debt of other American Water subsidiaries:   
Private activity bonds and government funded debt—fixed rate
0.00%-5.00%
2.41%
2026-2061
717 761 
Mortgage bonds—fixed rate
6.35%-9.19%
7.37%
2026-2039
435 456 
Mandatorily redeemable preferred stock
8.47%-9.75%
8.64%
2036
3 3 
Long-term debt 4.23% 14,303 13,193 
Unamortized debt discount, net (b)(27)(20)
Unamortized debt issuance costs   (17)(15)
Less current portion of long-term debt   (1,479)(637)
Total long-term debt   $12,780 $12,521 
(a)This indebtedness is considered “debt” for purposes of a support agreement between parent company and AWCC, which serves as a functional equivalent of a full and unconditional guarantee by parent company of AWCC’s payment obligations under such indebtedness.
(b)Includes debt discount, net of fair value adjustments previously recognized in acquisition purchase accounting.
Schedule of future sinking fund payments and debt maturities
Presented in the table below are future sinking fund payments and debt maturities:
Amount
2026$1,479 
2027646 
2028869 
2029938 
2030517 
Thereafter9,854 
Schedule of long-term debt issued
Presented in the table below are the issuances of long-term debt in 2025:
CompanyType
Rate
Weighted Average RateMaturityAmount
AWCCSenior notes—fixed rate
5.25%
5.25%
2035
$800 
AWCCSenior notes—fixed rate
5.70%
5.70%2055900 
Other American Water subsidiariesPrivate activity bonds and government funded debt—fixed rate
0.00%-3.71%
2.30%
2028-2057
89 
Total issuances   $1,789 
Schedule of long-term debt retired through optional redemptions or payments at maturities
Presented in the table below are the retirements and redemptions of long-term debt in 2025 through sinking fund provisions, optional redemption, payment at maturity or settlement:
CompanyType
Rate
Weighted Average RateMaturityAmount
AWCCSenior notes—fixed rate
3.40%
3.40%
2025
$525 
Other American Water subsidiariesPrivate activity bonds and government funded debt—fixed rate
0.00%-5.00%
0.37%
2025-2061
145 
Other American Water subsidiariesMortgage bonds—fixed rate
8.15%-8.58%
8.23%
2025
21 
Total retirements and redemptions   $691 
v3.25.4
Short-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Short-Term Debt [Abstract]  
Schedule of line of credit facilities
Presented in the tables below are the aggregate credit facility commitment, commercial paper limit and letter of credit availability under the revolving credit facility, as well as the available capacity for each, as of December 31:
2025
Commercial Paper LimitLetters of CreditTotal (a)
Total availability$2,600 $150 $2,750 
Outstanding debt(1,590)(84)(1,674)
Remaining availability as of December 31, 2025$1,010 $66 $1,076 
(a)Total remaining availability of $1.1 billion as of December 31, 2025, was accessible through revolver draws.
2024
Commercial Paper LimitLetters of CreditTotal (a)
Total availability$2,600 $150 $2,750 
Outstanding debt(880)(82)(962)
Remaining availability as of December 31, 2024$1,720 $68 $1,788 
(a)Total remaining availability of $1.8 billion as of December 31, 2024, was accessible through revolver draws.
Presented in the table below is the Company’s total available liquidity as of December 31, 2025 and 2024, respectively:
Cash and Cash EquivalentsAvailability on Revolving Credit FacilityTotal Available Liquidity
Available liquidity as of December 31, 2025$98 $1,076 $1,174 
Available liquidity as of December 31, 2024$96 $1,788 $1,884 
Schedule of short-term borrowings activity
Presented in the table below is the short-term borrowing activity for AWCC for the years ended December 31:
20252024
Average borrowings$1,170 $161 
Maximum borrowings outstanding$1,595 $880 
Weighted average interest rates, as of December 313.89 %4.65 %
v3.25.4
General Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
General Taxes [Abstract]  
Schedule of general tax expense
Presented in the table below are the components of general tax expense for the years ended December 31:
202520242023
Gross receipts and franchise$151 $140 $134 
Property and capital stock134 125 119 
Payroll43 41 38 
Other general20 14 16 
Total general taxes$348 $320 $307 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of income tax expense
Presented in the table below are the components of income tax expense for the years ended December 31:
202520242023
Current income taxes:   
State$25 $16 $16 
Federal151 136 28 
Total current income taxes$176 $152 $44 
Deferred income taxes:   
State$36 $53 $44 
Federal100 104 165 
Amortization of deferred investment tax credits(1)(1)(1)
Total deferred income taxes135 156 208 
Provision for income taxes$311 $308 $252 
Schedule of reconciliation of income tax expense
Presented in the table below is a reconciliation between the statutory federal tax rate and the Company’s effective tax rate for the years ended December 31:
 202520242023
AmountPercentAmountPercentAmountPercent
U.S. federal statutory tax rate$299 21.0 %$285 21.0 %$251 21.0 %
State and local income taxes, net of federal income tax effect (a)48 3.4 %54 4.0 %48 4.0 %
Nontaxable or nondeductible items5 0.4 %5 0.3 %4 0.3 %
Change in unrecognized tax benefits(8)(0.6)%2 0.2 %3 0.2 %
Other adjustments:
Excess accumulated deferred income taxes(39)(2.8)%(37)(2.7)%(51)(4.2)%
Other6 0.5 %(1)(0.1)%(3)(0.2)%
Effective tax rate$311 21.9 %$308 22.7 %$252 21.1 %
(a)The states that made up the majority (greater than 50 percent) of the tax effect in this category were: (i) for 2025, Pennsylvania and Illinois, (ii) for 2024, Pennsylvania and California, and (iii) for 2023, Pennsylvania and Illinois.
Schedule of Disaggregation of Income Taxes Paid, Net of Refunds Received
Presented in the table below is the disaggregation of income taxes paid (refunds received), net of refunds received of $29 million, $5 million and $30 million in 2025, 2024 and 2023, respectively, for the years ended December 31:
202520242023
Federal$185 $— $12 
State5 (5)(12)
Total$190 $(5)$— 
Income taxes paid (net of refunds received) exceeded 5% of total income taxes paid (net of refunds received) in the following states for the years ended December 31:
202520242023
State:
Iowa*$(1)*
Kentucky*$(2)*
Massachusetts**$(2)
New Jersey**$(23)
Pennsylvania*$(1)$13 
Tennessee**$1 
(*)Jurisdiction below the threshold for the period presented.
Schedule of net deferred tax liability
Presented in the table below are the components of the net deferred tax liability as of December 31:
20252024
Deferred tax assets:  
Advances and contributions$519 $493 
Tax losses and credits215 128 
Regulatory income tax assets161 181 
Pension and other postretirement benefits31 64 
Other166 163 
Total deferred tax assets1,092 1,029 
Valuation allowance(9)(8)
Total deferred tax assets, net of allowance$1,083 $1,021 
Deferred tax liabilities:  
Property, plant and equipment$4,021 $3,553 
Deferred pension and other postretirement benefits75 86 
Other157 244 
Total deferred tax liabilities4,253 3,883 
Total deferred tax liabilities, net of deferred tax assets$(3,170)$(2,862)
Schedule of gross liability excluding interest and penalties for unrecognized tax benefits
Presented in the table below are the changes in gross liability, excluding interest and penalties, for unrecognized tax benefits:
Amount
Balance as of January 1, 2023$158 
Increases in current period tax positions27 
Decreases in prior period measurement of tax positions(37)
Balance as of December 31, 2023$148 
Increases in current period tax positions34 
Increases in prior period measurement of tax positions21 
Balance as of December 31, 2024$203 
Increases in current period tax positions31 
Decreases in prior period measurement of tax positions(118)
Balance as of December 31, 2025$116 
Schedule of changes in valuation allowance
Presented in the table below are the changes in the valuation allowance:
Amount
Balance as of January 1, 2023$11 
Increases in valuation allowance— 
Balance as of December 31, 2023$11 
Decreases in valuation allowance(3)
Balance as of December 31, 2024$8 
Increases in valuation allowance1 
Balance as of December 31, 2025$9 
v3.25.4
Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Defined Benefit Plan Disclosure [Line Items]  
Schedule of rollforward changes in benefit obligation and plan assets
Presented in the table below is a rollforward of the changes in the benefit obligation and plan assets for the two most recent years, for all plans combined:
 Pension BenefitsOther Benefits
2025202420252024
Change in benefit obligation:    
Benefit obligation as of January 1,$1,560 $1,622 $225 $247 
Service cost15 17 2 2 
Interest cost87 83 12 12 
Plan participants' contributions— — 3 3 
Actuarial loss (gain)35 (55)3 (18)
Settlements — (2)— — 
Gross benefits paid(179)(105)(22)(22)
Federal subsidy— — 1 1 
Benefit obligation as of December 31,$1,518 $1,560 $224 $225 
Change in plan assets:    
Fair value of plan assets as of January 1,$1,392 $1,431 $253 $258 
Actual return on plan assets152 19 19 11 
Employer contributions46 49 3 3 
Plan participants' contributions— — 3 3 
Settlements— (2)— — 
Benefits paid(179)(105)(22)(22)
Fair value of plan assets as of December 31,$1,411 $1,392 $256 $253 
Funded value as of December 31,$(107)$(168)$32 $28 
Amounts recognized on the balance sheet:    
Noncurrent asset$62 $51 $33 $29 
Current liability(2)(2)— — 
Noncurrent liability(167)(217)(1)(1)
Net amount recognized$(107)$(168)$32 $28 
Schedule of accumulated other comprehensive income and regulatory assets
Presented in the table below are the components of accumulated other comprehensive income and regulatory assets that have not been recognized as components of periodic benefit costs as of December 31:
 Pension BenefitsOther Benefits
2025202420252024
Net actuarial loss$289 $337 $9 $13 
Prior service credit(2)(5)(52)(84)
Net amount recognized$287 $332 $(43)$(71)
Regulatory assets (liabilities)$261 $304 $(43)$(71)
Accumulated other comprehensive income26 28 — — 
Total$287 $332 $(43)$(71)
Schedule of projected benefit obligation, accumulated benefit obligation and fair value of plan assets
Presented in the tables below are the aggregate projected benefit obligation, accumulated benefit obligation and aggregate fair value of plan assets for pension plans with a projected obligation in excess of plan assets as of December 31:
Projected Benefit Obligation Exceeds the Fair Value of Plans' Assets
20252024
Projected benefit obligation$912 $916 
Fair value of plan assets743 697 
 Accumulated Benefit Obligation Exceeds the Fair Value of Plans' Assets
20252024
Accumulated benefit obligation$849 $852 
Fair value of plan assets743 697 
Schedule of expected cash flows for pension and postretirement benefit plans
Presented in the table below is information about the expected cash flows for the pension and postretirement benefit plans:
Pension BenefitsOther Benefits
2026 expected employer contributions:
  
To plan trusts$44 $— 
To plan participants2 — 
Schedule of expected benefit payments
Presented in the table below are the net benefits expected to be paid from the plan assets or the Company’s assets:
 Pension BenefitsOther Benefits
Expected Benefit PaymentsExpected Benefit PaymentsExpected Federal Subsidy Payments
2026$119 $22 $1 
2027121 22 1 
2028121 21 1 
2029122 21 1 
2030122 20 — 
2031-2035590 88 2 
Schedule of significant assumptions of pension and other postretirement benefit plans
Presented in the table below are the significant assumptions related to the pension and other postretirement benefit plans:
 Pension BenefitsOther Benefits
 202520242023202520242023
Weighted average assumptions used to determine December 31 benefit obligations:      
Discount rate5.54%5.70%5.18%5.46%5.69%5.22%
Rate of compensation increase3.45%3.51%3.51%N/AN/AN/A
Medical trendN/AN/AN/Agraded fromgraded fromgraded from
    
7.00% in 2026
6.50% in 2025
6.75% in 2024
    
to 5.00% in 2032+
to 5.00% in 2031+
to 5.00% in 2031+
Weighted average assumptions used to determine net periodic cost:      
Discount rate5.70%5.18%5.58%5.69%5.22%5.60%
Expected return on plan assets6.63%6.73%6.79%5.00%5.00%5.00%
Rate of compensation increase3.45%3.51%3.51%N/AN/AN/A
Medical trendN/AN/AN/Agraded fromgraded fromgraded from
    
6.50% in 2025
6.75% in 2024
7.00% in 2023
    
to 5.00% in 2031+
to 5.00% in 2031+
to 5.00% in 2031+
NOTE:     “N/A” in the table above means assumption is not applicable.
Schedule of components of net periodic benefit costs
Presented in the table below are the components of net periodic benefit costs for the years ended December 31:
202520242023
Components of net periodic pension benefit cost (credit):   
Service cost$15 $17 $17 
Interest cost87 83 85 
Expected return on plan assets(90)(94)(94)
Amortization of prior service (credit) cost(3)(3)(3)
Amortization of actuarial loss21 22 13 
Settlements— 1 1 
Net periodic pension benefit cost (credit)$30 $26 $19 
Other changes in plan assets and benefit obligations recognized in other comprehensive income:   
Current year actuarial (gain) loss$— $(1)$3 
Amortization of actuarial loss(1)— (4)
Total recognized in other comprehensive income(1)(1)(1)
Total recognized in net periodic benefit cost (credit) and other comprehensive income$29 $25 $18 
Components of net periodic other postretirement benefit (credit) cost:   
Service cost$2 $2 $2 
Interest cost12 12 14 
Expected return on plan assets(12)(12)(12)
Amortization of prior service credit(31)(31)(31)
Amortization of actuarial loss— — 2 
Net periodic other postretirement benefit (credit) cost$(29)$(29)$(25)
Pension Plan Asset  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of changes in fair value of plan assets
Presented in the tables below are the fair values and asset allocations of the pension plan assets as of December 31, 2025 and 2024, respectively, by asset category:
Asset CategoryTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3) (a)Net Asset Value as a Practical Expedient Percentage of Plan Assets as of December 31, 2025
Cash$23 $23 $— $— $— 2 %
Equity securities:     
U.S. large cap158 40 — — 118 11 %
U.S. small cap32 32 — — — 2 %
International299 — — — 299 21 %
Real estate fund122 — — — 122 9 %
REITs7 — — — 7 — %
Fixed income securities:    
U.S. Treasury securities and government bonds257 194 13 — 50 19 %
Corporate bonds459 — 459 — — 33 %
Mortgage-backed securities5 — 5 — — — %
Municipal bonds18 — 18 — — 1 %
Guarantee annuity contracts31 — — 31 — 2 %
Total$1,411 $289 $495 $31 $596 100 %
Asset CategoryTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3) (a)Net Asset Value as a Practical ExpedientPercentage of Plan Assets as of December 31, 2024
Cash$40 $40 $— $— $— 3 %
Equity securities:     
U.S. large cap155 29 — — 126 11 %
U.S. small cap34 34 — — — 2 %
International258 — — — 258 19 %
Real estate fund120 — — — 120 9 %
REITs6 — — — 6 — %
Fixed income securities:    
U.S. Treasury securities and government bonds232 169 1 — 62 17 %
Corporate bonds489 — 489 — — 35 %
Mortgage-backed securities6 — 6 — — — %
Municipal bonds20 — 20 — — 2 %
Guarantee annuity contracts32 — — 32 — 2 %
Total$1,392 $272 $516 $32 $572 100 %
(a)There were no material changes during the period for the fair value measurements using significant unobservable inputs (Level 3) for the years ended December 31, 2025 and 2024, respectively.
Postretirement Benefit Plan Assets  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of changes in fair value of plan assets
Presented in the tables below are the fair values and asset allocations of the postretirement benefit plan assets as of December 31, 2025 and 2024, respectively, by asset category:
Asset CategoryTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Net Asset Value as a Practical Expedient Percentage of Plan Assets as of December 31, 2025
Bargained VEBA:     
Cash$5 $5 $— $— $— 5 %
Fixed income securities:    
U.S. Treasury securities and government bonds7 7 — — — 7 %
Corporate bonds85 — 85 — — 85 %
Municipal bonds3 — 3 — — 3 %
Total bargained VEBA$100 $12 $88 $— $— 100 %
Active VEBA:
Cash$3 $3 $— $— $— 12 %
Fixed income securities:
U.S. Treasury securities and government bonds2 2 — — — 8 %
Corporate bonds19 — 19 — — 76 %
Municipal bonds1 — 1 — — 4 %
Total Active VEBA$25 $5 $20 $— $— 100 %
Non-bargained VEBA:     
Cash$3 $3 $— $— $— 2 %
Equity securities:     
U.S. large cap46 46 — — — 35 %
International31 31 — — — 24 %
Fixed income securities:    
U.S. Treasury securities and government bonds1 1 — — — 1 %
Municipal bonds50 — 50 — — 38 %
Total non-bargained VEBA$131 $81 $50 $— $— 100 %
Total$256 $98 $158 $— $— 100 %
Asset CategoryTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Net Asset Value as a Practical ExpedientPercentage of Plan Assets as of December 31, 2024
Bargained VEBA:     
Cash$4 $4 $— $— $— 4 %
Fixed income securities:    
U.S. Treasury securities and government bonds7 7 — — — 7 %
Corporate bonds83 — 83 — — 86 %
Municipal bonds3 — 3 — — 3 %
Total bargained VEBA$97 $11 $86 $— $— 100 %
Active VEBA:
Cash$2 $2 $— $— $— 7 %
Fixed income securities:
U.S. Treasury securities and government bonds2 2 — — — 7 %
Corporate bonds23 — 23 — — 82 %
Municipal bonds1 — 1 — — 4 %
Total Active VEBA$28 $4 $24 $— $— 100 %
Non-bargained VEBA:     
Cash$3 $3 $— $— $— 2 %
Equity securities:     
U.S. large cap46 46 — — — 36 %
International30 30 — — — 23 %
Fixed income securities:    
U.S. Treasury securities and government bonds1 1 — — — 1 %
Municipal bonds48 — 48 — — 38 %
Total non-bargained VEBA$128 $80 $48 $— $— 100 %
Total$253 $95 $158 $— $— 100 %
v3.25.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of future annual commitments related to minimum quantities of purchased water having non-cancelable terms Presented in the table below are the future annual commitments related to minimum quantities of purchased water having non-cancelable contracts:
Amount
2026$83 
202777 
202878 
202979 
203055 
Thereafter968 
v3.25.4
Earnings Per Common Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of 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 earnings per share (“EPS”) calculations for the years ended December 31:
202520242023
Numerator:   
Net income attributable to common shareholders$1,111 $1,051 $944 
Denominator:   
Weighted average common shares outstanding—Basic195 195 193 
Effect of dilutive common stock equivalents— — — 
Effect of dilutive forward sale agreements— — — 
Weighted average common shares outstanding—Diluted195 195 193 
v3.25.4
Fair Value of Financial Information (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of 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 December 31, 2025
 Carrying AmountAt Fair Value
Level 1
Level 2Level 3Total
Preferred stock with mandatory redemption requirements$3 $— $— $3 $3 
Long-term debt14,256 11,653 1,065 616 13,334 
As of December 31, 2024
 Carrying AmountAt Fair Value
Level 1
Level 2Level 3Total
Preferred stock with mandatory redemption requirements$3 $— $— $3 $3 
Long-term debt13,155 10,165 1,050 658 11,873 
Schedule of 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 December 31, 2025
Level 1Level 2Level 3Total
Assets:    
Restricted funds$41 $— $— $41 
Rabbi trust investments32 — — 32 
Deposits124 — — 124 
Other investments:
Money market and other20 — — 20 
Fixed-income securities28 7 — 35 
Mark-to-market derivative asset— 2 — 2 
Total assets245 9 — 254 
Liabilities:    
Deferred compensation obligations38 — — 38 
Total liabilities38 — — 38 
Total assets$207 $9 $— $216 
As of December 31, 2024
Level 1Level 2Level 3Total
Assets:    
Restricted funds$44 $— $— $44 
Rabbi trust investments29 — — 29 
Deposits6 — — 6 
Other investments:
Money market and other21 — — 21 
Fixed-income securities88 6 — 94 
Mark-to-market derivative asset— 24 — 24 
Total assets188 30 — 218 
Liabilities:    
Deferred compensation obligations34 — — 34 
Total liabilities34 — — 34 
Total assets$154 $30 $— $184 
Schedule of Unrealized positions for available-for-sale fixed-income securities
The following tables summarize the unrealized positions for available-for-sale fixed income securities:
As of December 31, 2025
Amortized Cost BasisGross unrealized gainsGross unrealized lossesFair Value
Available-for-sale fixed-income securities$36 $— $1 $35 
As of December 31, 2024
Amortized Cost BasisGross unrealized gainsGross unrealized lossesFair Value
Available-for-sale fixed-income securities$94 $2 $2 $94 
Schedule of Investments classified by contractual maturity date
The fair value of the Company’s available-for-sale fixed income securities, summarized by contractual maturities, as of December 31, 2025, is as follows:
Amount
Other investments - Available-for-sale fixed-income securities
Less than one year$6 
1 year - 5 years18 
5 years - 10 years4 
Greater than 10 years7 
Total$35 
v3.25.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of summarized segment information
Presented in the tables below is summarized segment information as of and for the years ended December 31:
 2025
Regulated
Businesses		OtherConsolidated
Operating revenues$4,723 $417 $5,140 
Less:
Operation and maintenance (a)1,642 377 2,019 
Other segment items (b)271 9 280 
Depreciation and amortization883 11 894 
Interest expense474 141 615 
Interest income(5)(85)(90)
Provision for (benefit from) income taxes321 (10)311 
Net income (loss) attributable to common shareholders$1,137 $(26)$1,111 
Total assets$32,649 $2,793 $35,442 
Capital expenditures$3,112 $14 $3,126 
(a)Significant segment expense.
(b)Other segment items included in segment net income includes General taxes, Non-operating benefit costs, net, and Other income (expense), net, primarily Allowance for other funds used during construction.
 2024
Regulated
Businesses		OtherConsolidated
Operating revenues$4,296 $388 $4,684 
Less:
Operation and maintenance (a)1,517 341 1,858 
Other segment items (b)241 9 250 
Depreciation and amortization772 16 788 
Interest expense416 107 523 
Interest income(17)(77)(94)
Provision for income taxes302 6 308 
Net income (loss) attributable to common shareholders$1,065 $(14)$1,051 
Total assets$29,941 $2,889 $32,830 
Capital expenditures$2,838 $18 $2,856 
(a)Significant segment expense.
(b)Other segment items included in segment net income includes General taxes, Non-operating benefit costs, net, and Other income (expense), net, primarily Allowance for other funds used during construction.
 2023
Regulated
Businesses		OtherConsolidated
Operating revenues$3,920 $314 $4,234 
Less:
Operation and maintenance (a)1,441 279 1,720 
Other segment items (b)220 7 227 
Depreciation and amortization693 11 704 
Interest expense364 96 460 
Interest income(28)(45)(73)
Provision for (benefit from) income taxes259 (7)252 
Net income (loss) attributable to common shareholders$971 $(27)$944 
Total assets$27,480 $2,818 $30,298 
Capital expenditures$2,551 $24 $2,575 
(a)Significant segment expense.
(b)Other segment items included in segment net income includes General taxes, Other operating expenses, Non-operating benefit costs, net, and Other income (expense), net, primarily Allowance for other funds used during construction.
v3.25.4
Organization and Operation (Details)
Dec. 31, 2025
state
Regulated Businesses  
Segment Reporting Information [Line Items]  
Number of states in which entity provides water and wastewater services 14
v3.25.4
Significant Accounting Policies - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Significant Accounting Policies [Line Items]      
Estimated refunds $ 25 $ 21  
Amortization of contributions in aid of construction $ 50 46 $ 40
Payment terms from billing, period 30 days    
Alternative revenue programs, revenue, collection period 24 months    
Cumulative gains losses as percentage of benefit obligations or plan assets 10.00%    
Minimum reduction of expected future service of plan participants 10.00%    
Maximum      
Significant Accounting Policies [Line Items]      
Payment terms from billing, period 1 year    
Software      
Significant Accounting Policies [Line Items]      
Carrying value $ 435 $ 398  
v3.25.4
Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Funds (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]        
Cash and cash equivalents $ 98 $ 96    
Restricted funds 21 29    
Restricted funds included in other long-term assets 20 15    
Cash and cash equivalents and restricted funds as presented on the Consolidated Statements of Cash Flows $ 139 $ 140 $ 364 $ 117
v3.25.4
Significant Accounting Policies - Schedule of Allowance for Funds Used During Construction (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Funds      
Significant Accounting Policies [Line Items]      
Allowance for funds used during construction $ 42 $ 38 $ 41
Borrowed Funds      
Significant Accounting Policies [Line Items]      
Allowance for funds used during construction $ 26 $ 21 $ 24
v3.25.4
Regulatory Matters - Schedule of General Rate Cases (Details) - USD ($)
$ in Millions
 2 Months Ended 12 Months Ended
Feb. 19, 2026
Dec. 31, 2025
Dec. 16, 2025
Aug. 01, 2025
Jul. 24, 2025
May 21, 2025
May 14, 2025
May 07, 2025
Jan. 21, 2025
Dec. 05, 2024
May 31, 2024
May 11, 2024
Feb. 29, 2024
Feb. 14, 2024
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes   $ 250                        
Subsequent Event                            
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes $ 14                          
Kentucky                            
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes   18                        
General rate case authorizations, annualized incremental revenues, approved amount     $ 18                      
Hawaii                            
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes   1                        
General rate case authorizations, annualized incremental revenues, approved amount         $ 1                  
Iowa                            
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes   13                        
General rate case authorizations, annualized incremental revenues, approved amount       $ 8   $ 13           $ 5    
Missouri                            
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes   63                        
General rate case authorizations, annualized incremental revenues, approved amount               $ 63            
Indiana, Step Increase                            
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes   17                        
General rate case authorizations, annualized incremental revenues, approved amount             $ 17       $ 23   $ 25 $ 65
Virginia                            
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes   15                        
Tennessee                            
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes   1                        
General rate case authorizations, annualized incremental revenues, approved amount                 $ 1          
Illinois                            
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes   105                        
General rate case authorizations, annualized incremental revenues, approved amount                   $ 105        
California, Step Increase                            
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes   $ 17                        
California, Step Increase | Subsequent Event                            
Public Utilities, General Disclosures [Line Items]                            
General rate case authorizations, annualized incremental revenues, including reduction for the amortization of the excess accumulated deferred income taxes $ 14                          
v3.25.4
Regulatory Matters - General Rate Cases Additional Information (Details) - USD ($)
$ in Millions
Dec. 16, 2025
Nov. 18, 2025
Nov. 10, 2025
Nov. 03, 2025
Jul. 24, 2025
May 21, 2025
May 07, 2025
Feb. 24, 2025
Jan. 21, 2025
Jan. 14, 2025
Dec. 05, 2024
Oct. 13, 2025
Aug. 01, 2025
May 14, 2025
May 31, 2024
May 11, 2024
Feb. 29, 2024
Feb. 14, 2024
Kentucky                                    
Public Utilities, General Disclosures [Line Items]                                    
General rate case authorizations, annualized incremental revenues, approved amount $ 18                                  
General rate case authorizations, annualized incremental revenues, previously approved infrastructure filings amount $ 10                                  
Authorized return on equity, percentage 9.70%                                  
Authorized rate base amount $ 667                                  
Common equity, percentage 52.26%                                  
Public utilities, common non-equity ratio percentage 47.74%                                  
General rate case authorizations, annualized incremental revenues, approved amount, increase in capital investments $ 212                                  
Hawaii                                    
Public Utilities, General Disclosures [Line Items]                                    
General rate case authorizations, annualized incremental revenues, approved amount         $ 1                          
Authorized return on equity, percentage         9.75%                          
Common equity, percentage         52.11%                          
Debt ratio, percentage         47.89%                          
Iowa                                    
Public Utilities, General Disclosures [Line Items]                                    
General rate case authorizations, annualized incremental revenues, approved amount           $ 13             $ 8     $ 5    
General rate case authorizations, annualized incremental revenues, previously approved infrastructure filings amount           $ 1                        
Authorized return on equity, percentage           9.60%                        
Authorized rate base amount           $ 262                        
Common equity, percentage           52.57%                        
General rate case authorizations, annualized incremental revenues, approved amount, increase in capital investments           $ 157                        
Debt ratio, percentage           47.43%                        
Indiana, Step Increase                                    
Public Utilities, General Disclosures [Line Items]                                    
General rate case authorizations, annualized incremental revenues, approved amount                           $ 17 $ 23   $ 25 $ 65
Missouri                                    
Public Utilities, General Disclosures [Line Items]                                    
General rate case authorizations, annualized incremental revenues, approved amount             $ 63                      
General rate case authorizations, annualized incremental revenues, previously approved infrastructure filings amount             $ 63                      
Authorized return on equity, percentage             9.75%                      
Authorized rate base amount             $ 3,200                      
Common equity, percentage             50.00%                      
General rate case authorizations, annualized incremental revenues, approved amount, increase in capital investments             $ 1,100                      
Virginia                                    
Public Utilities, General Disclosures [Line Items]                                    
Authorized rate base amount               $ 369                    
Common equity, percentage       51.79%       45.67%                    
General rate case authorizations, annualized incremental revenues, approved amount, increase in capital investments               $ 110                    
General rate case authorizations, annualized incremental revenues, proposed rate increase, amount               $ 15                    
Proposed return on equity, percentage       10.75%       9.70%                    
Debt and other component, percentage               54.33%                    
Tennessee                                    
Public Utilities, General Disclosures [Line Items]                                    
General rate case authorizations, annualized incremental revenues, approved amount                 $ 1                  
General rate case authorizations, annualized incremental revenues, previously approved infrastructure filings amount                 $ 18                  
Authorized return on equity, percentage                 9.70%                  
Authorized rate base amount                 $ 300                  
General rate case authorizations, annualized incremental revenues, approved amount, increase in capital investments                 $ 173                  
Debt ratio, percentage                 55.81%                  
Common equity, adjustment, percentage                 44.19%                  
California, Step Increase                                    
Public Utilities, General Disclosures [Line Items]                                    
Authorized return on equity, percentage                     10.20%              
Cost of capital, delay period, approved   1 year 1 year             1 year                
General rate case authorizations, annualized incremental revenues, estimated and not approved amount                       $ 110            
California, Step Increase | Year 2024                                    
Public Utilities, General Disclosures [Line Items]                                    
General rate case authorizations, annualized incremental revenues, approved amount                     $ 21              
California, Step Increase | Year 2025                                    
Public Utilities, General Disclosures [Line Items]                                    
General rate case authorizations, annualized incremental revenues, estimated and not approved amount                     16              
California, Step Increase | Year 2026                                    
Public Utilities, General Disclosures [Line Items]                                    
General rate case authorizations, annualized incremental revenues, estimated and not approved amount                     16              
Illinois                                    
Public Utilities, General Disclosures [Line Items]                                    
General rate case authorizations, annualized incremental revenues, approved amount                     105              
General rate case authorizations, annualized incremental revenues, previously approved infrastructure filings amount                     $ 5              
Authorized return on equity, percentage                     9.84%              
Authorized rate base amount                     $ 2,200              
General rate case authorizations, annualized incremental revenues, approved amount, increase in capital investments                     $ 557              
Debt ratio, percentage                     51.00%              
Common equity, adjustment, percentage                     49.00%              
v3.25.4
Regulatory Matters - Pending General Rate Case Filings Additional Information (Details) - USD ($)
$ in Millions
Jan. 27, 2026
Jan. 16, 2026
Jan. 01, 2026
Nov. 14, 2025
Nov. 03, 2025
Oct. 13, 2025
Aug. 01, 2025
Jul. 01, 2025
May 05, 2025
Feb. 24, 2025
Dec. 05, 2024
Illinois                      
Public Utilities, General Disclosures [Line Items]                      
Authorized return on equity, percentage                     9.84%
Debt ratio, percentage                     51.00%
General rate case authorizations, annualized incremental revenues, previously approved infrastructure filings amount                     $ 5
General rate case authorizations, annualized incremental revenues, approved amount                     $ 105
Illinois | Subsequent Event                      
Public Utilities, General Disclosures [Line Items]                      
Authorized return on equity, percentage 10.75%                    
General rate case authorizations, annualized incremental revenues, requested rate, increase in capital investments $ 577                    
Illinois | Subsequent Event | Public Utility Authorization Effective Date January 1, 2027                      
Public Utilities, General Disclosures [Line Items]                      
General rate case authorizations, annualized incremental revenues, estimated and not approved amount $ 119                    
Common equity, percentage 52.42%                    
Debt ratio, percentage 47.58%                    
Illinois | Subsequent Event | Public Utility Authorization Effective Date January 1, 2028                      
Public Utilities, General Disclosures [Line Items]                      
General rate case authorizations, annualized incremental revenues, estimated and not approved amount $ 15                    
Common equity, percentage 52.74%                    
Debt ratio, percentage 47.26%                    
New Jersey | Subsequent Event                      
Public Utilities, General Disclosures [Line Items]                      
Authorized return on equity, percentage   10.75%                  
Common equity, percentage   55.18%                  
Debt ratio, percentage   44.82%                  
General rate case authorizations, annualized incremental revenues, requested rate, increase in capital investments   $ 1,400                  
General rate case authorizations, annualized incremental revenues, requested rate increase, amount   $ 146                  
Pennsylvania                      
Public Utilities, General Disclosures [Line Items]                      
Authorized return on equity, percentage       10.95%              
Common equity, percentage       55.33%              
General rate case authorizations, annualized incremental revenues, requested rate, increase in capital investments       $ 1,200              
General rate case authorizations, annualized incremental revenues, requested rate increase, amount       169              
General rate case authorizations, annualized incremental revenues, previously approved infrastructure filings amount       $ 19              
Virginia                      
Public Utilities, General Disclosures [Line Items]                      
Common equity, percentage         51.79%         45.67%  
General rate case authorizations, annualized incremental revenues, requested rate, increase in capital investments         $ 115            
General rate case authorizations, annualized incremental revenues, requested rate increase, amount         $ 22            
Proposed return on equity, percentage         10.75%         9.70%  
MARYLAND                      
Public Utilities, General Disclosures [Line Items]                      
Common equity, percentage             52.32%        
General rate case authorizations, annualized incremental revenues, requested rate, increase in capital investments             $ 22        
General rate case authorizations, annualized incremental revenues, requested rate increase, amount             $ 3        
Proposed return on equity, percentage             10.64%        
California, Step Increase                      
Public Utilities, General Disclosures [Line Items]                      
Authorized return on equity, percentage                     10.20%
General rate case authorizations, annualized incremental revenues, estimated and not approved amount           $ 110          
General rate case authorizations, annualized incremental revenues, requested rate, increase in capital investments               $ 750      
General rate case authorizations, annualized incremental revenues, requested rate increase, amount           $ 62          
California, Step Increase | Subsequent Event                      
Public Utilities, General Disclosures [Line Items]                      
General rate case authorizations, annualized incremental revenues, requested rate increase, amount     $ 51                
West Virginia                      
Public Utilities, General Disclosures [Line Items]                      
General rate case authorizations, annualized incremental revenues, requested rate, increase in capital investments                 $ 300    
General rate case authorizations, annualized incremental revenues, requested rate increase, amount                 48    
General rate case authorizations, annualized incremental revenues, previously approved infrastructure filings amount                 $ 13    
Proposed return on equity, percentage                 10.75%    
West Virginia | Public Utility, Authorization, Effective Date, March 2026                      
Public Utilities, General Disclosures [Line Items]                      
General rate case authorizations, annualized incremental revenues, estimated and not approved amount                 $ 33    
Common equity, percentage                 50.80%    
West Virginia | Public Utility, Authorization, Effective Date, March 2027                      
Public Utilities, General Disclosures [Line Items]                      
Common equity, percentage                 50.97%    
General rate case authorizations, annualized incremental revenues, approved amount                 $ 15    
v3.25.4
Regulatory Matters - Schedule of Infrastructure Surcharge (Details) - USD ($)
$ in Millions
 2 Months Ended 12 Months Ended
Feb. 18, 2026
Dec. 31, 2025
Public Utilities, General Disclosures [Line Items]    
Total infrastructure surcharge authorizations   $ 69
Subsequent Event    
Public Utilities, General Disclosures [Line Items]    
Total infrastructure surcharge authorizations $ 16  
New Jersey | November 29, 2025    
Public Utilities, General Disclosures [Line Items]    
Total infrastructure surcharge authorizations   26
New Jersey | May 30, 2025    
Public Utilities, General Disclosures [Line Items]    
Total infrastructure surcharge authorizations   15
Pennsylvania    
Public Utilities, General Disclosures [Line Items]    
Total infrastructure surcharge authorizations   5
Pennsylvania | Subsequent Event    
Public Utilities, General Disclosures [Line Items]    
Total infrastructure surcharge authorizations 11  
Missouri    
Public Utilities, General Disclosures [Line Items]    
Total infrastructure surcharge authorizations   17
Kentucky    
Public Utilities, General Disclosures [Line Items]    
Total infrastructure surcharge authorizations   2
West Virginia    
Public Utilities, General Disclosures [Line Items]    
Total infrastructure surcharge authorizations   $ 4
Illinois | Subsequent Event    
Public Utilities, General Disclosures [Line Items]    
Total infrastructure surcharge authorizations $ 5  
v3.25.4
Regulatory Matters - Pending Infrastructure Surcharge Filings Additional Information (Details) - USD ($)
$ in Millions
Jan. 20, 2026
Sep. 03, 2025
Jun. 30, 2025
Indiana | Subsequent Event      
Public Utilities, General Disclosures [Line Items]      
Infrastructure surcharge, annualized incremental revenues, requested amount $ 15    
Missouri      
Public Utilities, General Disclosures [Line Items]      
Infrastructure surcharge, annualized incremental revenues, requested amount   $ 13  
West Virginia      
Public Utilities, General Disclosures [Line Items]      
Infrastructure surcharge, annualized incremental revenues, requested amount     $ 3
v3.25.4
Regulatory Matters - Regulatory Assets and Liabilities Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Regulatory Asset And Liabilities [Line Items]    
Regulatory asset, earned revenue, percentage 50.00%  
Deferred pension expense    
Regulatory Asset And Liabilities [Line Items]    
Regulatory asset, underfunded status $ 261 $ 304
Purchase premium recoverable through rates    
Regulatory Asset And Liabilities [Line Items]    
Regulatory asset, amortization period 40 years  
v3.25.4
Regulatory Matters - Schedule of Composition of Regulatory Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Regulatory Assets [Line Items]    
Total (non-current) regulatory assets $ 1,132 $ 1,150
Current regulatory assets 22 19
Total regulatory assets 1,154 1,169
Removal costs recoverable through rates    
Regulatory Assets [Line Items]    
Total (non-current) regulatory assets 323 356
Deferred pension expense    
Regulatory Assets [Line Items]    
Total (non-current) regulatory assets 276 318
Customer lead line replacements    
Regulatory Assets [Line Items]    
Total (non-current) regulatory assets 80 86
Unamortized debt expense    
Regulatory Assets [Line Items]    
Total (non-current) regulatory assets 84 84
Regulatory balancing accounts    
Regulatory Assets [Line Items]    
Total (non-current) regulatory assets 65 71
Programmed maintenance expense    
Regulatory Assets [Line Items]    
Total (non-current) regulatory assets 60 57
Purchase premium recoverable through rates    
Regulatory Assets [Line Items]    
Total (non-current) regulatory assets 49 50
Other    
Regulatory Assets [Line Items]    
Total (non-current) regulatory assets $ 195 $ 128
v3.25.4
Regulatory Matters - Schedule of Composition of Regulatory Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Regulatory Liabilities [Line Items]    
Total (non-current) regulatory liabilities $ 1,416 $ 1,416
Current regulatory liabilities 24 0
Total regulatory liabilities 1,440 1,416
Income taxes recovered through rates    
Regulatory Liabilities [Line Items]    
Total (non-current) regulatory liabilities 959 1,016
Removal costs recovered through rates    
Regulatory Liabilities [Line Items]    
Total (non-current) regulatory liabilities 248 245
PFAS Multi-district litigation settlements    
Regulatory Liabilities [Line Items]    
Total (non-current) regulatory liabilities 91 0
Postretirement benefit liability    
Regulatory Liabilities [Line Items]    
Total (non-current) regulatory liabilities 43 71
Other    
Regulatory Liabilities [Line Items]    
Total (non-current) regulatory liabilities $ 75 $ 84
v3.25.4
Revenue Recognition - Disaggregated Revenues (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers $ 5,121 $ 4,653 $ 4,217
Other revenues not from contracts with customers 19 31 17
Operating revenues 5,140 4,684 4,234
Other      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 417 388 315
Other revenues not from contracts with customers 0 0 (1)
Operating revenues 417 388 314
Regulated Businesses | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 4,704 4,265 3,902
Other revenues not from contracts with customers 19 31 18
Alternative revenue programs 12 10 10
Lease contract revenue 7 8 8
Operating revenues 4,723 4,296 3,920
Regulated Businesses | Water services: | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 4,233 3,862 3,540
Other revenues not from contracts with customers 0 11 0
Operating revenues 4,233 3,873 3,540
Regulated Businesses | Wastewater services: | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 422 361 327
Other revenues not from contracts with customers 0 2 0
Operating revenues 422 363 327
Regulated Businesses | Miscellaneous utility charges | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 49 42 35
Other revenues not from contracts with customers 0 0 0
Operating revenues 49 42 35
Regulated Businesses | Residential | Water services: | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 2,557 2,344 2,143
Other revenues not from contracts with customers 0 5 0
Operating revenues 2,557 2,349 2,143
Regulated Businesses | Residential | Wastewater services: | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 287 243 228
Other revenues not from contracts with customers 0 2 0
Operating revenues 287 245 228
Regulated Businesses | Commercial | Water services: | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 981 881 798
Other revenues not from contracts with customers 0 4 0
Operating revenues 981 885 798
Regulated Businesses | Commercial | Wastewater services: | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 86 70 62
Other revenues not from contracts with customers 0 0 0
Operating revenues 86 70 62
Regulated Businesses | Fire service | Water services: | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 189 164 158
Other revenues not from contracts with customers 0 0 0
Operating revenues 189 164 158
Regulated Businesses | Industrial | Water services: | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 195 182 167
Other revenues not from contracts with customers 0 2 0
Operating revenues 195 184 167
Regulated Businesses | Industrial | Wastewater services: | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 10 12 8
Other revenues not from contracts with customers 0 0 0
Operating revenues 10 12 8
Regulated Businesses | Public and other | Water services: | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 311 291 274
Other revenues not from contracts with customers 0 0 0
Operating revenues 311 291 274
Regulated Businesses | Public and other | Wastewater services: | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenues from Contracts with Customers 39 36 29
Other revenues not from contracts with customers 0 0 0
Operating revenues $ 39 $ 36 $ 29
v3.25.4
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Contract assets:      
Contract asset, current $ 171,000,000 $ 84,000,000 $ 95,000,000
Contract asset, noncurrent 5,000,000 39,000,000 0
Additions 175,000,000 114,000,000  
Transfers to accounts receivable 122,000,000 86,000,000  
Contract liabilities:      
Contract liability, current 19,000,000 40,000,000 63,000,000
Customer liability, noncurrent 19,000,000 14,000,000 $ 0
Additions 88,000,000 83,000,000  
Transfers to operating revenues $ 104,000,000 $ 92,000,000  
v3.25.4
Revenue Recognition - Remaining Performance Obligations (Details)
$ in Millions
Dec. 31, 2025
USD ($)
U.S. Government  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 7,400
Municipalities and Commercial  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 508
v3.25.4
Mergers, Acquisitions and Divestitures (Details)
$ in Millions
 12 Months Ended
Oct. 27, 2025
USD ($)
shares
Oct. 26, 2025
Rate
May 28, 2025
USD ($)
shares
Dec. 09, 2021
USD ($)
Dec. 31, 2025
USD ($)
acquisition
customer
Dec. 31, 2024
USD ($)
acquisition
customer
Dec. 31, 2023
USD ($)
Feb. 02, 2024
USD ($)
Schedule of Business Combinations, Asset Acquisition And Divestitures By Acquisition [Line Items]                
Number of acquisitions | acquisition         18 13    
Consideration transferred         $ 83 $ 417    
Consideration funded         81 415    
Assets         107      
Liabilities         36      
Consideration funded         12      
Goodwill from acquisitions         $ 12 $ 1    
Number of assets acquired from business combination | acquisition         8 7    
Interest income         $ 90 $ 94 $ 73  
Disposal Group, Disposed of by Sale | Homeowner Services Group                
Schedule of Business Combinations, Asset Acquisition And Divestitures By Acquisition [Line Items]                
Consideration       $ 1,275        
Proceeds from divestiture of businesses       480        
Contingent consideration receivable       75       $ 75
Interest income         $ 80 77 50  
Disposal Group, Disposed of by Sale | Homeowner Services Group | Secured Seller Promissory Note                
Schedule of Business Combinations, Asset Acquisition And Divestitures By Acquisition [Line Items]                
Debt instrument, face amount       $ 720       $ 795
Interest rate       7.00%       10.00%
New Jersey American Water                
Schedule of Business Combinations, Asset Acquisition And Divestitures By Acquisition [Line Items]                
Assets           426    
Liabilities           $ 10    
Operating Segments | Regulated Business                
Schedule of Business Combinations, Asset Acquisition And Divestitures By Acquisition [Line Items]                
Number of acquisitions | acquisition         6 1    
Goodwill from acquisitions         $ 12 $ 1    
Interest income         $ 5 $ 17 $ 28  
Water and Wastewater Services                
Schedule of Business Combinations, Asset Acquisition And Divestitures By Acquisition [Line Items]                
Number of customers in service | customer         20,900      
Number of customers | customer           69,500    
Essential Utilities, Inc.                
Schedule of Business Combinations, Asset Acquisition And Divestitures By Acquisition [Line Items]                
Merger transaction, share exchange ratio | Rate   30.50%            
Merger related costs         $ 13      
Audubon Water Company                
Schedule of Business Combinations, Asset Acquisition And Divestitures By Acquisition [Line Items]                
Total consideration for business combination     $ 7          
Number of shares issued in business combination (in shares) | shares     48,381          
Appalachian Utilities, Inc.                
Schedule of Business Combinations, Asset Acquisition And Divestitures By Acquisition [Line Items]                
Total consideration for business combination $ 4              
Number of shares issued in business combination (in shares) | shares 25,159              
v3.25.4
Property, Plant and Equipment - Schedule of Major Classes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Public Utility, Property, Plant and Equipment [Line Items]    
Construction work in progress $ 1,548 $ 1,359
Total utility plant 37,852 34,918
Nonutility property 103 141
Total property, plant and equipment 37,955 35,059
Utility Plant | Land and other non-depreciable assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Utility plant excluding construction work in progress 317 302
Utility Plant | Sources of supply    
Public Utility, Property, Plant and Equipment [Line Items]    
Utility plant excluding construction work in progress $ 1,252 1,124
Utility Plant | Sources of supply | Minimum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 20 years  
Utility Plant | Sources of supply | Maximum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 114 years  
Utility Plant | Sources of supply | Weighted Average    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 45 years  
Utility Plant | Treatment and pumping    
Public Utility, Property, Plant and Equipment [Line Items]    
Utility plant excluding construction work in progress $ 5,093 4,786
Utility Plant | Treatment and pumping | Minimum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 2 years  
Utility Plant | Treatment and pumping | Maximum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 119 years  
Utility Plant | Treatment and pumping | Weighted Average    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 40 years  
Utility Plant | Transmission and distribution    
Public Utility, Property, Plant and Equipment [Line Items]    
Utility plant excluding construction work in progress $ 15,807 14,745
Utility Plant | Transmission and distribution | Minimum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 15 years  
Utility Plant | Transmission and distribution | Maximum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 128 years  
Utility Plant | Transmission and distribution | Weighted Average    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 65 years  
Utility Plant | Services, meters and fire hydrants    
Public Utility, Property, Plant and Equipment [Line Items]    
Utility plant excluding construction work in progress $ 7,046 6,356
Utility Plant | Services, meters and fire hydrants | Minimum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 2 years  
Utility Plant | Services, meters and fire hydrants | Maximum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 109 years  
Utility Plant | Services, meters and fire hydrants | Weighted Average    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 28 years  
Utility Plant | General structures and equipment    
Public Utility, Property, Plant and Equipment [Line Items]    
Utility plant excluding construction work in progress $ 3,116 2,813
Utility Plant | General structures and equipment | Minimum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 2 years  
Utility Plant | General structures and equipment | Maximum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 109 years  
Utility Plant | General structures and equipment | Weighted Average    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 16 years  
Utility Plant | Waste collection    
Public Utility, Property, Plant and Equipment [Line Items]    
Utility plant excluding construction work in progress $ 2,124 1,986
Utility Plant | Waste collection | Minimum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 5 years  
Utility Plant | Waste collection | Maximum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 145 years  
Utility Plant | Waste collection | Weighted Average    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 52 years  
Utility Plant | Waste treatment, pumping and disposal    
Public Utility, Property, Plant and Equipment [Line Items]    
Utility plant excluding construction work in progress $ 1,530 1,425
Utility Plant | Waste treatment, pumping and disposal | Minimum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 4 years  
Utility Plant | Waste treatment, pumping and disposal | Maximum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 165 years  
Utility Plant | Waste treatment, pumping and disposal | Weighted Average    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 32 years  
Utility Plant | Other plant    
Public Utility, Property, Plant and Equipment [Line Items]    
Utility plant excluding construction work in progress $ 19 $ 22
Utility Plant | Other plant | Minimum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 1 year  
Utility Plant | Other plant | Maximum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 54 years  
Utility Plant | Other plant | Weighted Average    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 18 years  
Nonutility Plant | Minimum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 3 years  
Nonutility Plant | Maximum    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 50 years  
Nonutility Plant | Weighted Average    
Public Utility, Property, Plant and Equipment [Line Items]    
Useful Life 16 years  
v3.25.4
Property, Plant and Equipment - Additional Information (Details) - USD ($)
 1 Months Ended 12 Months Ended
Oct. 31, 2025
Dec. 31, 2024
Jan. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2019
Public Utility, Property, Plant and Equipment [Line Items]              
Depreciation expense       $ 776,000,000 $ 690,000,000 $ 617,000,000  
Provision for depreciation, percentage of aggregate average depreciable asset       2.82% 2.73% 2.68%  
Capital expenditures acquired on account but unpaid as of year end       $ 350,000,000 $ 347,000,000 $ 399,000,000  
Investment tax credit $ 15,000,000 $ 15,000,000 $ 16,000,000       $ 161,000,000
Investment tax credit, period             10 years
Investment tax credit, loss       1,000,000 2,000,000 $ 1,000,000  
Other current assets              
Public Utility, Property, Plant and Equipment [Line Items]              
Investment tax credit       15,000,000 0    
Other long-term assets              
Public Utility, Property, Plant and Equipment [Line Items]              
Investment tax credit       $ 64,000,000 $ 90,000,000    
v3.25.4
Allowance for Uncollectible Accounts (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ (53) $ (51) $ (60)
Amounts charged to expense (48) (31) (24)
Amounts written off 43 29 33
Ending balance $ (58) $ (53) $ (51)
v3.25.4
Goodwill - Schedule of Changes in Goodwill Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Roll Forward]      
Cost, beginning balance $ 3,584 $ 3,583  
Accumulated Impairment (2,440) (2,440) $ (2,440)
Total Net, beginning balance 1,144 1,143  
Goodwill from acquisitions 12 1  
Cost, ending balance 3,596 3,584  
Total Net, ending balance 1,156 1,144  
Operating Segments | Regulated Businesses      
Goodwill [Roll Forward]      
Cost, beginning balance 3,471 3,470  
Accumulated Impairment (2,332) (2,332) (2,332)
Goodwill from acquisitions 12 1  
Cost, ending balance 3,483 3,471  
Other      
Goodwill [Roll Forward]      
Cost, beginning balance 113 113  
Accumulated Impairment (108) (108) $ (108)
Goodwill from acquisitions 0 0  
Cost, ending balance $ 113 $ 113  
v3.25.4
Goodwill - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
acquisition
Dec. 31, 2024
USD ($)
acquisition
Goodwill [Line Items]    
Goodwill from acquisitions | $ $ 12 $ 1
Number of acquisitions | acquisition 18 13
Operating Segments | Regulated Business    
Goodwill [Line Items]    
Goodwill from acquisitions | $ $ 12 $ 1
Number of acquisitions | acquisition 6 1
v3.25.4
Shareholders' Equity - Additional Information (Details) - USD ($)
 1 Months Ended 3 Months Ended 5 Months Ended 12 Months Ended 17 Months Ended
Aug. 31, 2025
Dec. 31, 2025
Dec. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2026
Feb. 28, 2015
Stockholders Equity [Line Items]                
Net proceeds       $ 0 $ 0 $ 1,688,000,000    
Shares of common stock repurchased (in shares)       0 0 0    
Share of common stock available for repurchase (in shares)   5,100,000 5,100,000 5,100,000        
Dividends declared per common share (in dollars per share)   $ 0.8275   $ 3.31 $ 3.06 $ 2.83    
Maximum                
Stockholders Equity [Line Items]                
Shares available under the program to purchase outstanding common stock (in shares)               10,000,000
Dividend Reinvestment And Direct Stock Purchase Plan                
Stockholders Equity [Line Items]                
Shares available for grant (in shares)   4,100,000 4,100,000 4,100,000        
Forward Sale Agreements                
Stockholders Equity [Line Items]                
Sale of stock, number of shares in transaction (in shares) 8,098,592              
Sale of stock, price per share (in dollars per share) $ 139.657              
Net proceeds     $ 0          
Forward Sale Agreements | Forecast                
Stockholders Equity [Line Items]                
Net proceeds             $ 1,131,000,000  
v3.25.4
Shareholders' Equity - Schedule of Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
AOCI Attributable to Parent [Roll Forward]      
Beginning balance $ 10,332 $ 9,797 $ 7,693
Other comprehensive (loss) income before reclassification (3) 38 (7)
Amounts reclassified from accumulated other comprehensive income (loss) (3)   4
Net other comprehensive income (loss) (6) 38 (3)
Ending balance 10,837 10,332 9,797
Employee Benefit Plan Funded Status      
AOCI Attributable to Parent [Roll Forward]      
Beginning balance (95) (96) (93)
Other comprehensive (loss) income before reclassification 0 1 (3)
Amounts reclassified from accumulated other comprehensive income (loss) 0   0
Net other comprehensive income (loss) 0 1 (3)
Ending balance (95) (95) (96)
Amortization of Prior Service Cost      
AOCI Attributable to Parent [Roll Forward]      
Beginning balance 1 1 1
Other comprehensive (loss) income before reclassification 0 0 0
Amounts reclassified from accumulated other comprehensive income (loss) 0   0
Net other comprehensive income (loss) 0 0 0
Ending balance 1 1 1
Amortization of Actuarial Loss      
AOCI Attributable to Parent [Roll Forward]      
Beginning balance 74 74 70
Other comprehensive (loss) income before reclassification 0 0 0
Amounts reclassified from accumulated other comprehensive income (loss) 1   4
Net other comprehensive income (loss) 1 0 4
Ending balance 75 74 74
Gain (Loss) on Cash Flow Hedge      
AOCI Attributable to Parent [Roll Forward]      
Beginning balance 30 (9) (1)
Other comprehensive (loss) income before reclassification (4) 39 (8)
Amounts reclassified from accumulated other comprehensive income (loss) 0   0
Net other comprehensive income (loss) (4) 39 (8)
Ending balance 26 30 (9)
Gain (Loss) on Fixed-Income Securities      
AOCI Attributable to Parent [Roll Forward]      
Beginning balance 2 4 0
Other comprehensive (loss) income before reclassification 1 (2) 4
Amounts reclassified from accumulated other comprehensive income (loss) (4)   0
Net other comprehensive income (loss) (3) (2) 4
Ending balance (1) 2 4
Accumulated Other Comprehensive Income (Loss)      
AOCI Attributable to Parent [Roll Forward]      
Beginning balance 12 (26) (23)
Net other comprehensive income (loss) (6) 38 (3)
Ending balance $ 6 $ 12 $ (26)
v3.25.4
Shareholders' Equity - Schedule of Dividends (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2025
Sep. 30, 2025
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Equity [Abstract]                              
Payments of ordinary dividends, common stock                         $ 633 $ 585 $ 532
Dividends paid per common share (dollars per share) $ 0.8275 $ 0.8275 $ 0.8275 $ 0.7650 $ 0.7650 $ 0.7650 $ 0.7650 $ 0.7075 $ 0.7075 $ 0.7075 $ 0.7075 $ 0.6550      
v3.25.4
Stock Based Compensation - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation, capitalized amount $ 0 $ 0 $ 0
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years 3 years 3 years
Grant date, fair value $ 12,000,000 $ 10,000,000 $ 9,000,000
Unrecognized compensation cost $ 6,000,000    
Weighted-average period 1 year 7 months 13 days    
Total fair value of shares vested $ 8,000,000 $ 9,000,000 $ 6,000,000
Performance Condition      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years 3 years 3 years
Grant date, fair value $ 27,000,000 $ 23,000,000 $ 28,000,000
Unrecognized compensation cost $ 8,000,000    
Weighted-average period 10 months 6 days    
Total fair value of shares vested $ 26,000,000 $ 23,000,000 $ 31,000,000
Historical volatility, stock price, period 3 years    
Expected term 3 years    
2017 Omnibus Equity Compensation Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total shares authorized for grant (in shares) 7,200,000    
Shares available for grant (in shares) 5,700,000    
2017 Omnibus Equity Compensation Plan | Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock distribution period 30 days    
2017 Omnibus Equity Compensation Plan | Restricted Stock Units | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 1 year 1 year 1 year
Stock distribution period     30 days
2017 Omnibus Equity Compensation Plan | Restricted Stock Units | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years 3 years 3 years
Stock distribution period     15 months
Nonqualified employee stock purchase plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares available for grant (in shares) 1,300,000    
Lesser of fair market value 85.00%    
Purchase period 3 months    
Stock issuable (in shares) 2,000,000    
Shares issued (in shares) 84,000 90,000 87,000
v3.25.4
Stock-Based Compensation - Schedule of Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation $ 32 $ 36 $ 25
Income tax benefit (7) (8) (6)
Stock-based compensation expense, net of tax 25 28 19
Nonqualified employee stock purchase plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation 2 2 2
RSUs and PSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation $ 30 $ 34 $ 23
v3.25.4
Stock Based Compensation - Schedule of Stock Unit Activity (Details)
shares in Thousands
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
RSUs and Director Stock Unit  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Non-vested, beginning balance (in shares) | shares 75
Granted (in shares) | shares 95
Vested (in shares) | shares (60)
Forfeited (in shares) | shares (11)
Non-vested, ending balance (in shares) | shares 99
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Weighted-average grant date fair value, non-vested total beginning balance (dollars per share) | $ / shares $ 131.20
Weighted-average grant date fair value, granted (dollars per share) | $ / shares 129.42
Weighted-average grant date fair value, vested (dollars per share) | $ / shares 133.39
Weighted-average grant date fair value, forfeited (dollars per share) | $ / shares 127.01
Weighted-average grant date fair value, non-vested total ending balance (dollars per share) | $ / shares $ 128.63
Performance Condition  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Non-vested, beginning balance (in shares) | shares 322
Granted (in shares) | shares 211
Vested (in shares) | shares (74)
Forfeited (in shares) | shares (81)
Non-vested, ending balance (in shares) | shares 378
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Weighted-average grant date fair value, non-vested total beginning balance (dollars per share) | $ / shares $ 130.04
Weighted-average grant date fair value, granted (dollars per share) | $ / shares 128.59
Weighted-average grant date fair value, vested (dollars per share) | $ / shares 147.45
Weighted-average grant date fair value, forfeited (dollars per share) | $ / shares 106.41
Weighted-average grant date fair value, non-vested total ending balance (dollars per share) | $ / shares $ 130.93
v3.25.4
Stock Based Compensation -Schedule of Weighted-Average Assumptions (Details) - Performance Condition - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 23.25% 22.98% 25.45%
Risk-free interest rate 4.27% 4.39% 4.31%
Expected life (years) 3 years 3 years 3 years
Grant date fair value per share (dollars per share) $ 118.29 $ 118.95 $ 168.00
v3.25.4
Long-Term Debt - Schedule of Components of Long-Term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Long-term debt $ 14,303 $ 13,193
Unamortized debt discount, net (27) (20)
Unamortized debt issuance costs (17) (15)
Less current portion of long-term debt (1,479) (637)
Total long-term debt $ 12,780 12,521
Long-term debt    
Debt Instrument [Line Items]    
Weighted Average Rate 4.23%  
Long-term debt | Other American Water subsidiaries | Mandatorily redeemable preferred stock    
Debt Instrument [Line Items]    
Weighted Average Rate 8.64%  
Long-term debt $ 3 3
Fixed rate | Long-term debt | Senior notes—fixed rate | American Water Capital Corp. (AWCC)    
Debt Instrument [Line Items]    
Weighted Average Rate 4.24%  
Long-term debt $ 12,961 11,786
Fixed rate | Long-term debt | Private activity bonds and government funded debt—fixed rate | Other American Water subsidiaries    
Debt Instrument [Line Items]    
Weighted Average Rate 2.41%  
Long-term debt $ 717 761
Fixed rate | Long-term debt | Private activity bonds and government funded debt—fixed rate | American Water Capital Corp. (AWCC)    
Debt Instrument [Line Items]    
Weighted Average Rate 3.07%  
Long-term debt $ 187 187
Fixed rate | Long-term debt | Mortgage bonds—fixed rate | Other American Water subsidiaries    
Debt Instrument [Line Items]    
Weighted Average Rate 7.37%  
Long-term debt $ 435 $ 456
Minimum | Long-term debt | Other American Water subsidiaries | Mandatorily redeemable preferred stock    
Debt Instrument [Line Items]    
Rate 8.47%  
Minimum | Fixed rate | Long-term debt | Senior notes—fixed rate | American Water Capital Corp. (AWCC)    
Debt Instrument [Line Items]    
Rate 2.30%  
Minimum | Fixed rate | Long-term debt | Private activity bonds and government funded debt—fixed rate | Other American Water subsidiaries    
Debt Instrument [Line Items]    
Rate 0.00%  
Minimum | Fixed rate | Long-term debt | Private activity bonds and government funded debt—fixed rate | American Water Capital Corp. (AWCC)    
Debt Instrument [Line Items]    
Rate 0.00%  
Minimum | Fixed rate | Long-term debt | Mortgage bonds—fixed rate | Other American Water subsidiaries    
Debt Instrument [Line Items]    
Rate 6.35%  
Maximum | Long-term debt | Other American Water subsidiaries | Mandatorily redeemable preferred stock    
Debt Instrument [Line Items]    
Rate 9.75%  
Maximum | Fixed rate | Long-term debt | Senior notes—fixed rate | American Water Capital Corp. (AWCC)    
Debt Instrument [Line Items]    
Rate 8.27%  
Maximum | Fixed rate | Long-term debt | Private activity bonds and government funded debt—fixed rate | Other American Water subsidiaries    
Debt Instrument [Line Items]    
Rate 5.00%  
Maximum | Fixed rate | Long-term debt | Private activity bonds and government funded debt—fixed rate | American Water Capital Corp. (AWCC)    
Debt Instrument [Line Items]    
Rate 3.88%  
Maximum | Fixed rate | Long-term debt | Mortgage bonds—fixed rate | Other American Water subsidiaries    
Debt Instrument [Line Items]    
Rate 9.19%  
v3.25.4
Long-Term Debt - Additional Information (Details)
 1 Months Ended 3 Months Ended 12 Months Ended
Aug. 08, 2025
USD ($)
Feb. 27, 2025
USD ($)
Jun. 29, 2023
USD ($)
$ / shares
Feb. 18, 2026
USD ($)
treasury_lock_agreement
Feb. 28, 2025
USD ($)
treasury_lock_agreement
Aug. 31, 2025
USD ($)
treasury_lock_agreement
Dec. 31, 2025
USD ($)
treasury_lock_agreement
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Debt Instrument [Line Items]                  
Long-term debt             $ 14,303,000,000 $ 13,193,000,000  
Line of credit facility consolidated debt to consolidated capitalization ratio             0.59    
Redeemable debt, amount outstanding             $ 773,000,000    
Weighted average interest rates, as of December 31             2.61%    
Debt issuance cost             $ 17,000,000    
Proceeds from long-term debt, net of discount             $ 1,781,000,000 1,437,000,000 $ 1,264,000,000
Treasury lock agreements | Designated as Hedging Instrument                  
Debt Instrument [Line Items]                  
Weighted average interest rates, as of December 31             4.47%    
Debt instrument, face amount         $ 500,000,000 $ 450,000,000 $ 200,000,000    
Derivative, number of instruments held | treasury_lock_agreement         10 11 6    
Debt instrument, term         10 years 30 years      
Gain (loss) from termination of derivative instruments         $ 3,000,000 $ 13,000,000      
Ineffectiveness recognized on hedge instruments             $ 0 $ 0 $ 0
Treasury lock agreements | Designated as Hedging Instrument | Subsequent Event                  
Debt Instrument [Line Items]                  
Weighted average interest rates, as of December 31       4.62%          
Debt instrument, face amount       $ 150,000,000          
Derivative, number of instruments held | treasury_lock_agreement       4          
Treasury lock agreements | Designated as Hedging Instrument | Minimum                  
Debt Instrument [Line Items]                  
Debt instrument, term             10 years    
Treasury lock agreements | Designated as Hedging Instrument | Minimum | Subsequent Event                  
Debt Instrument [Line Items]                  
Debt instrument, term       10 years          
Treasury lock agreements | Designated as Hedging Instrument | Maximum                  
Debt Instrument [Line Items]                  
Debt instrument, term             30 years    
Treasury lock agreements | Designated as Hedging Instrument | Maximum | Subsequent Event                  
Debt Instrument [Line Items]                  
Debt instrument, term       30 years          
American Water Capital Corp. (AWCC)                  
Debt Instrument [Line Items]                  
Weighted average interest rates, as of December 31             3.89% 4.65%  
Various Debt | American Water Capital Corp. (AWCC)                  
Debt Instrument [Line Items]                  
Debt instrument, redemption price, percentage     100.00%            
Line of credit                  
Debt Instrument [Line Items]                  
Line of credit facility consolidated debt to consolidated capitalization ratio             0.70    
Senior notes—fixed rate | Senior Note 5.700% Due 2055 | American Water Capital Corp. (AWCC)                  
Debt Instrument [Line Items]                  
Debt instrument, face amount $ 900,000,000                
Interest rate 5.70%                
Proceeds from long-term debt, net of discount $ 887,000,000                
Senior notes—fixed rate | Senior Note 5.250% Due 2035 | American Water Capital Corp. (AWCC)                  
Debt Instrument [Line Items]                  
Debt instrument, face amount   $ 800,000,000              
Interest rate   5.25%              
Proceeds from long-term debt, net of discount   $ 792,000,000              
Senior notes—fixed rate | Senior Note 3.400% Due 2025 | American Water Capital Corp. (AWCC)                  
Debt Instrument [Line Items]                  
Interest rate   3.40%              
Convertible Debt | Exchangeable Senior Note 3.625% Due 2026 | American Water Capital Corp. (AWCC)                  
Debt Instrument [Line Items]                  
Debt instrument, face amount     $ 1,035,000,000            
Interest rate     3.625%            
Proceeds from long-term debt, net of discount     $ 1,022,000,000            
Debt instrument, exchangeable, conversion ratio     0.0058213            
Debt instrument, exchangeable, conversion price (dollars per share) | $ / shares     $ 171.78            
Other American Water subsidiaries | Collateralized Debt Obligations | Private activity bonds and government funded debt—fixed rate                  
Debt Instrument [Line Items]                  
Long-term debt             $ 709,000,000    
v3.25.4
Long-Term Debt - Schedule of Future Sinking Fund Payments and Debt Maturities (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Debt Disclosure [Abstract]  
2026 $ 1,479
2027 646
2028 869
2029 938
2030 517
Thereafter $ 9,854
v3.25.4
Long-Term Debt - Schedule of Issued (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Debt Instrument [Line Items]  
Amount $ 1,789
AWCC, Senior Notes, Fixed Rate 5.70% | Senior notes—fixed rate | American Water Capital Corp. (AWCC)  
Debt Instrument [Line Items]  
Rate 5.70%
Amount $ 900
Other American Water Subsidiaries, Fixed Rate Ranging From 0.00% to 3.71% | Private activity bonds and government funded debt—fixed rate | Other American Water Subsidiaries  
Debt Instrument [Line Items]  
Rate 2.30%
Amount $ 89
Other American Water Subsidiaries, Fixed Rate Ranging From 0.00% to 3.71% | Private activity bonds and government funded debt—fixed rate | Other American Water Subsidiaries | Minimum  
Debt Instrument [Line Items]  
Rate 0.00%
Other American Water Subsidiaries, Fixed Rate Ranging From 0.00% to 3.71% | Private activity bonds and government funded debt—fixed rate | Other American Water Subsidiaries | Maximum  
Debt Instrument [Line Items]  
Rate 3.71%
AWCC, Senior Notes, Fixed Rate 5.25% | Senior notes—fixed rate | American Water Capital Corp. (AWCC)  
Debt Instrument [Line Items]  
Rate 5.25%
Amount $ 800
v3.25.4
Long-Term Debt - Schedule of Retired Through Optional Redemptions or Payments at Maturities (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Debt Instrument [Line Items]  
Amount $ 691
AWCC, Senior Notes, Fixed Rate 5.25% | American Water Capital Corp. (AWCC) | Senior notes—fixed rate  
Debt Instrument [Line Items]  
Rate 5.25%
AWCC, Senior Notes, Fixed Rate 5.70% | American Water Capital Corp. (AWCC) | Senior notes—fixed rate  
Debt Instrument [Line Items]  
Rate 5.70%
Other American Water Subsidiaries, Fixed Rate Ranging From 0.00% to 3.71% | Other American Water Subsidiaries | Private activity bonds and government funded debt—fixed rate  
Debt Instrument [Line Items]  
Rate 2.30%
Other American Water Subsidiaries, Fixed Rate Ranging From 0.00% to 3.71% | Other American Water Subsidiaries | Minimum | Private activity bonds and government funded debt—fixed rate  
Debt Instrument [Line Items]  
Rate 0.00%
Other American Water Subsidiaries, Fixed Rate Ranging From 0.00% to 3.71% | Other American Water Subsidiaries | Maximum | Private activity bonds and government funded debt—fixed rate  
Debt Instrument [Line Items]  
Rate 3.71%
AWCC, Senior Notes, Fixed Rate 3.40% | American Water Capital Corp. (AWCC) | Senior notes—fixed rate  
Debt Instrument [Line Items]  
Rate 3.40%
Amount $ 525
Other American Water Subsidiaries, Fixed Rate Ranging From 0.00% to 5.00% | Other American Water Subsidiaries | Private activity bonds and government funded debt—fixed rate  
Debt Instrument [Line Items]  
Rate 0.37%
Amount $ 145
Other American Water Subsidiaries, Fixed Rate Ranging From 0.00% to 5.00% | Other American Water Subsidiaries | Minimum | Private activity bonds and government funded debt—fixed rate  
Debt Instrument [Line Items]  
Rate 0.00%
Other American Water Subsidiaries, Fixed Rate Ranging From 0.00% to 5.00% | Other American Water Subsidiaries | Maximum | Private activity bonds and government funded debt—fixed rate  
Debt Instrument [Line Items]  
Rate 5.00%
Other American Water Subsidiaries, Fixed Rate Ranging From 8.15% to 8.58% | Other American Water Subsidiaries | Mortgage bonds—fixed rate  
Debt Instrument [Line Items]  
Rate 8.23%
Amount $ 21
Other American Water Subsidiaries, Fixed Rate Ranging From 8.15% to 8.58% | Other American Water Subsidiaries | Minimum | Mortgage bonds—fixed rate  
Debt Instrument [Line Items]  
Rate 8.15%
Other American Water Subsidiaries, Fixed Rate Ranging From 8.15% to 8.58% | Other American Water Subsidiaries | Maximum | Mortgage bonds—fixed rate  
Debt Instrument [Line Items]  
Rate 8.58%
v3.25.4
Short-Term Debt - Additional Information (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Short-term Debt [Line Items]    
Outstanding debt $ 1,590,000,000 $ 880,000,000
Short-term debt $ 1,588,000,000 879,000,000
Line of credit facility consolidated debt to consolidated capitalization ratio, required 0.70  
Line of credit facility consolidated debt to consolidated capitalization ratio 0.59  
Commercial Paper Program    
Short-term Debt [Line Items]    
Proceeds from short-term borrowings with maturities greater than three months $ 0 0
Revolving Credit Facility | Letters of Credit    
Short-term Debt [Line Items]    
Total availability 150,000,000 150,000,000
Proceeds from short-term borrowings with maturities greater than three months 0 $ 0
Revolving Credit Facility | American Water Capital Corp. (AWCC)    
Short-term Debt [Line Items]    
Total availability 2,750,000,000  
Maximum commitment under the facility $ 500,000,000  
v3.25.4
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
Dec. 31, 2025
Dec. 31, 2024
Short-term Debt [Line Items]    
Total availability $ 2,600 $ 2,600
Total availability 2,750 2,750
Outstanding debt (1,590) (880)
Outstanding debt (1,674) (962)
Remaining availability 1,010 1,720
Remaining availability 1,076 1,788
Revolving Credit Facility    
Short-term Debt [Line Items]    
Remaining availability 1,076 1,788
Revolving Credit Facility | Letters of Credit    
Short-term Debt [Line Items]    
Total availability 150 150
Outstanding debt (84) (82)
Remaining availability $ 66 $ 68
v3.25.4
Short-Term Debt - Schedule of Availability Liquidity (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Short-term Debt [Line Items]    
Cash and cash equivalents $ 98 $ 96
Remaining availability 1,076 1,788
Total Available Liquidity 1,174 1,884
Revolving Credit Facility    
Short-term Debt [Line Items]    
Remaining availability $ 1,076 $ 1,788
v3.25.4
Short-Term Debt - Schedule of Short-Term Borrowings Activity (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Short-term Debt [Line Items]    
Weighted average interest rates, as of December 31 2.61%  
American Water Capital Corp. (AWCC)    
Short-term Debt [Line Items]    
Average borrowings $ 1,170 $ 161
Maximum borrowings outstanding $ 1,595 $ 880
Weighted average interest rates, as of December 31 3.89% 4.65%
v3.25.4
General Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
General Taxes [Abstract]      
Gross receipts and franchise $ 151 $ 140 $ 134
Property and capital stock 134 125 119
Payroll 43 41 38
Other general 20 14 16
Total general taxes $ 348 $ 320 $ 307
v3.25.4
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current income taxes:      
State $ 25 $ 16 $ 16
Federal 151 136 28
Total current income taxes 176 152 44
Deferred income taxes:      
State 36 53 44
Federal 100 104 165
Amortization of deferred investment tax credits (1) (1) (1)
Total deferred income taxes 135 156 208
Provision for income taxes $ 311 $ 308 $ 252
v3.25.4
Income Taxes - Schedule of Reconciliation to Effective Tax Amount (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S. federal statutory tax rate $ 299 $ 285 $ 251
State and local income taxes, net of federal income tax effect 48 54 48
Nontaxable or nondeductible items 5 5 4
Change in unrecognized tax benefits (8) 2 3
Excess accumulated deferred income taxes (39) (37) (51)
Other 6 (1) (3)
Provision for income taxes $ 311 $ 308 $ 252
Percent      
U.S. federal statutory tax rate 21.00% 21.00% 21.00%
State and local income taxes, net of federal income tax effect 3.40% 4.00% 4.00%
Nontaxable or nondeductible items 0.40% 0.30% 0.30%
Change in unrecognized tax benefits (0.60%) 0.20% 0.20%
Excess accumulated deferred income taxes (2.80%) (2.70%) (4.20%)
Other 0.50% (0.10%) (0.20%)
Effective tax rate 21.90% 22.70% 21.10%
v3.25.4
Income Taxes - Schedule of Income Taxes Paid, Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Examination [Line Items]      
Income taxes, refunds $ 29 $ 5 $ 30
Federal 185 0 12
State 5 (5) (12)
Total $ 190 (5) 0
Iowa      
Income Tax Examination [Line Items]      
State   (1)  
Kentucky      
Income Tax Examination [Line Items]      
State   (2)  
Massachusetts      
Income Tax Examination [Line Items]      
State     (2)
New Jersey      
Income Tax Examination [Line Items]      
State     (23)
Pennsylvania      
Income Tax Examination [Line Items]      
State   $ (1) 13
Tennessee      
Income Tax Examination [Line Items]      
State     $ 1
v3.25.4
Income Taxes - Schedule of Components of Net Deferred Tax Liability (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:        
Advances and contributions $ 519 $ 493    
Tax losses and credits 215 128    
Regulatory income tax assets 161 181    
Pension and other postretirement benefits 31 64    
Other 166 163    
Total deferred tax assets 1,092 1,029    
Valuation allowance (9) (8) $ (11) $ (11)
Total deferred tax assets, net of allowance 1,083 1,021    
Deferred tax liabilities:        
Property, plant and equipment 4,021 3,553    
Deferred pension and other postretirement benefits 75 86    
Other 157 244    
Total deferred tax liabilities 4,253 3,883    
Total deferred tax liabilities, net of deferred tax assets $ (3,170) $ (2,862)    
v3.25.4
Income Taxes - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Income Tax Examination [Line Items]    
CAMT credit carryforward $ 200 $ 111
State    
Income Tax Examination [Line Items]    
Net operating loss carryforwards $ 246 $ 251
v3.25.4
Income Taxes - Schedule of Changes in Gross Liability Excluding Interest and Penalties for Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Beginning balance $ 203 $ 148 $ 158
Increases in current period tax positions 31 34 27
Decreases in prior period measurement of tax positions (118)   (37)
Increases in prior period measurement of tax positions   21  
Ending balance $ 116 $ 203 $ 148
v3.25.4
Income Taxes - Schedule of Changes in Valuation Allowance (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Movement in Valuation Allowances [Roll Forward]      
Beginning balance $ 8 $ 11 $ 11
Increases (decreases) in current period tax positions 1 (3) 0
Ending balance $ 9 $ 8 $ 11
v3.25.4
Employee Benefits - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2026
Defined Benefit Plan Disclosure [Line Items]        
Employer matching contribution, percent 5.25%      
Cost of contribution plan $ 15 $ 15 $ 14  
Additional cost of contribution plan $ 19 $ 18 $ 17  
Pension Plan Asset        
Defined Benefit Plan Disclosure [Line Items]        
Expected return on plan assets percentage 6.63%      
Postretirement Benefit Plan Assets        
Defined Benefit Plan Disclosure [Line Items]        
Expected return on plan assets percentage 5.00%      
Equity securities        
Defined Benefit Plan Disclosure [Line Items]        
Redemption period, days of notice (less than) 30 days      
Equity securities | Pension Plan Asset        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage 37.00%      
Equity securities | Pension Plan Asset | Forecast        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage       38.00%
Equity securities | Postretirement Benefit Plan Assets | Non Bargained VEBA        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage 60.00%      
Equity securities | Postretirement Benefit Plan Assets | Non Bargained VEBA | Forecast        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage       60.00%
Fixed income securities | Pension Plan Asset        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage 63.00%      
Fixed income securities | Pension Plan Asset | Forecast        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage       62.00%
Fixed income securities | Postretirement Benefit Plan Assets | Bargained VEBA        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage 100.00%      
Fixed income securities | Postretirement Benefit Plan Assets | Bargained VEBA | Forecast        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage       100.00%
Fixed income securities | Postretirement Benefit Plan Assets | Active VEBA        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage 100.00%      
Fixed income securities | Postretirement Benefit Plan Assets | Active VEBA | Forecast        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage       100.00%
Fixed income securities | Postretirement Benefit Plan Assets | Non Bargained VEBA        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage 40.00%      
Fixed income securities | Postretirement Benefit Plan Assets | Non Bargained VEBA | Forecast        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan, plan assets, target allocation, percentage       40.00%
Real estate fund        
Defined Benefit Plan Disclosure [Line Items]        
Redemption period, days of notice (less than) 90 days      
v3.25.4
Employee Benefits - Schedule of Changes in Fair Value of Plan Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pension Plan Asset      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 1,411 $ 1,392 $ 1,431
Percentage of Plan Assets 100.00% 100.00%  
Pension Plan Asset | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 289 $ 272  
Pension Plan Asset | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 495 516  
Pension Plan Asset | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 31 32  
Pension Plan Asset | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 596 572  
Pension Plan Asset | Cash      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 23 $ 40  
Percentage of Plan Assets 2.00% 3.00%  
Pension Plan Asset | Cash | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 23 $ 40  
Pension Plan Asset | Cash | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | Cash | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | Cash | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | U.S. large cap      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 158 $ 155  
Percentage of Plan Assets 11.00% 11.00%  
Pension Plan Asset | U.S. large cap | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 40 $ 29  
Pension Plan Asset | U.S. large cap | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | U.S. large cap | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | U.S. large cap | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 118 126  
Pension Plan Asset | U.S. small cap      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 32 $ 34  
Percentage of Plan Assets 2.00% 2.00%  
Pension Plan Asset | U.S. small cap | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 32 $ 34  
Pension Plan Asset | U.S. small cap | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | U.S. small cap | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | U.S. small cap | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | International      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 299 $ 258  
Percentage of Plan Assets 21.00% 19.00%  
Pension Plan Asset | International | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 0 $ 0  
Pension Plan Asset | International | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | International | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | International | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 299 258  
Pension Plan Asset | Real estate fund      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 122 $ 120  
Percentage of Plan Assets 9.00% 9.00%  
Pension Plan Asset | Real estate fund | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 0 $ 0  
Pension Plan Asset | Real estate fund | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | Real estate fund | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | Real estate fund | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 122 120  
Pension Plan Asset | REITs      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 7 $ 6  
Percentage of Plan Assets 0.00% 0.00%  
Pension Plan Asset | REITs | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 0 $ 0  
Pension Plan Asset | REITs | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | REITs | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | REITs | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 7 6  
Pension Plan Asset | U.S. Treasury securities and government bonds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 257 $ 232  
Percentage of Plan Assets 19.00% 17.00%  
Pension Plan Asset | U.S. Treasury securities and government bonds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 194 $ 169  
Pension Plan Asset | U.S. Treasury securities and government bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 13 1  
Pension Plan Asset | U.S. Treasury securities and government bonds | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | U.S. Treasury securities and government bonds | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 50 62  
Pension Plan Asset | Corporate bonds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 459 $ 489  
Percentage of Plan Assets 33.00% 35.00%  
Pension Plan Asset | Corporate bonds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 0 $ 0  
Pension Plan Asset | Corporate bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 459 489  
Pension Plan Asset | Corporate bonds | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | Corporate bonds | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | Mortgage-backed securities      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 5 $ 6  
Percentage of Plan Assets 0.00% 0.00%  
Pension Plan Asset | Mortgage-backed securities | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 0 $ 0  
Pension Plan Asset | Mortgage-backed securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 5 6  
Pension Plan Asset | Mortgage-backed securities | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | Mortgage-backed securities | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | Municipal bonds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 18 $ 20  
Percentage of Plan Assets 1.00% 2.00%  
Pension Plan Asset | Municipal bonds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 0 $ 0  
Pension Plan Asset | Municipal bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 18 20  
Pension Plan Asset | Municipal bonds | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | Municipal bonds | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | Guarantee annuity contracts      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 31 $ 32  
Percentage of Plan Assets 2.00% 2.00%  
Pension Plan Asset | Guarantee annuity contracts | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 0 $ 0  
Pension Plan Asset | Guarantee annuity contracts | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan Asset | Guarantee annuity contracts | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 31 32  
Pension Plan Asset | Guarantee annuity contracts | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 256 $ 253 $ 258
Percentage of Plan Assets 100.00% 100.00%  
Postretirement Benefit Plan Assets | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 100 $ 97  
Percentage of Plan Assets 100.00% 100.00%  
Postretirement Benefit Plan Assets | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 25 $ 28  
Percentage of Plan Assets 100.00% 100.00%  
Postretirement Benefit Plan Assets | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 131 $ 128  
Percentage of Plan Assets 100.00% 100.00%  
Postretirement Benefit Plan Assets | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 98 $ 95  
Postretirement Benefit Plan Assets | Level 1 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 12 11  
Postretirement Benefit Plan Assets | Level 1 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 5 4  
Postretirement Benefit Plan Assets | Level 1 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 81 80  
Postretirement Benefit Plan Assets | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 158 158  
Postretirement Benefit Plan Assets | Level 2 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 88 86  
Postretirement Benefit Plan Assets | Level 2 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 20 24  
Postretirement Benefit Plan Assets | Level 2 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 50 48  
Postretirement Benefit Plan Assets | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Level 3 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Level 3 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Level 3 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Net Asset Value as a Practical Expedient      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Net Asset Value as a Practical Expedient | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Net Asset Value as a Practical Expedient | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Net Asset Value as a Practical Expedient | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Cash | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 5 $ 4  
Percentage of Plan Assets 5.00% 4.00%  
Postretirement Benefit Plan Assets | Cash | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 3 $ 2  
Percentage of Plan Assets 12.00% 7.00%  
Postretirement Benefit Plan Assets | Cash | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 3 $ 3  
Percentage of Plan Assets 2.00% 2.00%  
Postretirement Benefit Plan Assets | Cash | Level 1 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 5 $ 4  
Postretirement Benefit Plan Assets | Cash | Level 1 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 3 2  
Postretirement Benefit Plan Assets | Cash | Level 1 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 3 3  
Postretirement Benefit Plan Assets | Cash | Level 2 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Cash | Level 2 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Cash | Level 2 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Cash | Level 3 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Cash | Level 3 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Cash | Level 3 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Cash | Net Asset Value as a Practical Expedient | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Cash | Net Asset Value as a Practical Expedient | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Cash | Net Asset Value as a Practical Expedient | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. large cap | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 46 $ 46  
Percentage of Plan Assets 35.00% 36.00%  
Postretirement Benefit Plan Assets | U.S. large cap | Level 1 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 46 $ 46  
Postretirement Benefit Plan Assets | U.S. large cap | Level 2 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. large cap | Level 3 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. large cap | Net Asset Value as a Practical Expedient | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | International | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 31 $ 30  
Percentage of Plan Assets 24.00% 23.00%  
Postretirement Benefit Plan Assets | International | Level 1 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 31 $ 30  
Postretirement Benefit Plan Assets | International | Level 2 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | International | Level 3 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | International | Net Asset Value as a Practical Expedient | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 7 $ 7  
Percentage of Plan Assets 7.00% 7.00%  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 2 $ 2  
Percentage of Plan Assets 8.00% 7.00%  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 1 $ 1  
Percentage of Plan Assets 1.00% 1.00%  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Level 1 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 7 $ 7  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Level 1 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2 2  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Level 1 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1 1  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Level 2 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Level 2 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Level 2 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Level 3 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Level 3 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Level 3 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Net Asset Value as a Practical Expedient | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Net Asset Value as a Practical Expedient | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Net Asset Value as a Practical Expedient | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Corporate bonds | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 85 $ 83  
Percentage of Plan Assets 85.00% 86.00%  
Postretirement Benefit Plan Assets | Corporate bonds | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 19 $ 23  
Percentage of Plan Assets 76.00% 82.00%  
Postretirement Benefit Plan Assets | Corporate bonds | Level 1 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 0 $ 0  
Postretirement Benefit Plan Assets | Corporate bonds | Level 1 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Corporate bonds | Level 2 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 85 83  
Postretirement Benefit Plan Assets | Corporate bonds | Level 2 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 19 23  
Postretirement Benefit Plan Assets | Corporate bonds | Level 3 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Corporate bonds | Level 3 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Corporate bonds | Net Asset Value as a Practical Expedient | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Corporate bonds | Net Asset Value as a Practical Expedient | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Municipal bonds | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 3 $ 3  
Percentage of Plan Assets 3.00% 3.00%  
Postretirement Benefit Plan Assets | Municipal bonds | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 1 $ 1  
Percentage of Plan Assets 4.00% 4.00%  
Postretirement Benefit Plan Assets | Municipal bonds | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 50 $ 48  
Percentage of Plan Assets 38.00% 38.00%  
Postretirement Benefit Plan Assets | Municipal bonds | Level 1 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 0 $ 0  
Postretirement Benefit Plan Assets | Municipal bonds | Level 1 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Municipal bonds | Level 1 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Municipal bonds | Level 2 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 3 3  
Postretirement Benefit Plan Assets | Municipal bonds | Level 2 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1 1  
Postretirement Benefit Plan Assets | Municipal bonds | Level 2 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 50 48  
Postretirement Benefit Plan Assets | Municipal bonds | Level 3 | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Municipal bonds | Level 3 | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Municipal bonds | Level 3 | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Municipal bonds | Net Asset Value as a Practical Expedient | Bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Municipal bonds | Net Asset Value as a Practical Expedient | Active VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Postretirement Benefit Plan Assets | Municipal bonds | Net Asset Value as a Practical Expedient | Non-bargained VEBA:      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 0 $ 0  
v3.25.4
Employee Benefits - Schedule of Rollforward Changes in Benefit Obligation and Plan Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amounts recognized on the balance sheet:      
Noncurrent liability $ (167) $ (217)  
Pension Benefits      
Change in benefit obligation:      
Benefit obligation, beginning balance 1,560 1,622  
Service cost 15 17 $ 17
Interest cost 87 83 85
Plan participants' contributions 0 0  
Actuarial loss (gain) 35 (55)  
Settlements 0 (2)  
Gross benefits paid (179) (105)  
Federal subsidy 0 0  
Benefit obligation, ending balance 1,518 1,560 1,622
Change in plan assets:      
Fair value of plan assets, beginning balance 1,392 1,431  
Actual return on plan assets 152 19  
Employer contributions 46 49  
Plan participants' contributions 0 0  
Settlements 0 (2)  
Benefits paid (179) (105)  
Fair value of plan assets, ending balance 1,411 1,392 1,431
Funded status, ending balance (107) (168)  
Amounts recognized on the balance sheet:      
Noncurrent asset 62 51  
Current liability (2) (2)  
Noncurrent liability (167) (217)  
Net amount recognized (107) (168)  
Other Benefits      
Change in benefit obligation:      
Benefit obligation, beginning balance 225 247  
Service cost 2 2 2
Interest cost 12 12 14
Plan participants' contributions 3 3  
Actuarial loss (gain) 3 (18)  
Settlements 0 0  
Gross benefits paid (22) (22)  
Federal subsidy 1 1  
Benefit obligation, ending balance 224 225 247
Change in plan assets:      
Fair value of plan assets, beginning balance 253 258  
Actual return on plan assets 19 11  
Employer contributions 3 3  
Plan participants' contributions 3 3  
Settlements 0 0  
Benefits paid (22) (22)  
Fair value of plan assets, ending balance 256 253 $ 258
Funded status, ending balance 32 28  
Amounts recognized on the balance sheet:      
Noncurrent asset 33 29  
Current liability 0 0  
Noncurrent liability (1) (1)  
Net amount recognized $ 32 $ 28  
v3.25.4
Employee Benefits - Schedule of Accumulated Other Comprehensive Income and Regulatory Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Pension Benefits    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial loss $ 289 $ 337
Prior service credit (2) (5)
Net amount recognized 287 332
Regulatory assets (liabilities) 261 304
Accumulated other comprehensive income 26 28
Other Benefits    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial loss 9 13
Prior service credit (52) (84)
Net amount recognized (43) (71)
Regulatory assets (liabilities) (43) (71)
Accumulated other comprehensive income $ 0 $ 0
v3.25.4
Employee Benefits - Schedule of Projected Benefit Obligation, Accumulated Benefit Obligation and Fair Value of Plan Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Retirement Benefits [Abstract]    
Projected benefit obligation $ 912 $ 916
Fair value of plan assets 743 697
Accumulated benefit obligation 849 852
Fair value of plan assets $ 743 $ 697
v3.25.4
Employee Benefits - Schedule of Expected Cash Flow for Pension and Post Retirement Benefit Plans (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Pension Benefits | To plan trusts  
Defined Benefit Plan Disclosure [Line Items]  
Expected employer contributions $ 44
Pension Benefits | To plan participants  
Defined Benefit Plan Disclosure [Line Items]  
Expected employer contributions 2
Other Benefits | To plan trusts  
Defined Benefit Plan Disclosure [Line Items]  
Expected employer contributions 0
Other Benefits | To plan participants  
Defined Benefit Plan Disclosure [Line Items]  
Expected employer contributions $ 0
v3.25.4
Employee Benefits - Schedule of Expected Benefit Payments (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Pension Benefits  
Expected Benefit Payments  
2026 $ 119
2027 121
2028 121
2029 122
2030 122
2031-2035 590
Other Benefits  
Expected Benefit Payments  
2026 22
2027 22
2028 21
2029 21
2030 20
2031-2035 88
Expected Federal Subsidy Payments  
2026 1
2027 1
2028 1
2029 1
2030 0
2031-2035 $ 2
v3.25.4
Employee Benefits - Schedule of Significant Assumptions of Pension and Other Postretirement Benefit Plans (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pension Benefits      
Defined Benefit Plan Disclosure [Line Items]      
Benefit obligations, discount rate 5.54% 5.70% 5.18%
Benefit obligations, rate of compensation increase 3.45% 3.51% 3.51%
Net periodic cost, discount rate 5.70% 5.18% 5.58%
Net periodic cost, expected return on plan assets 6.63% 6.73% 6.79%
Net periodic cost, rate of compensation increase 3.45% 3.51% 3.51%
Other Benefits      
Defined Benefit Plan Disclosure [Line Items]      
Benefit obligations, discount rate 5.46% 5.69% 5.22%
Net periodic cost, discount rate 5.69% 5.22% 5.60%
Net periodic cost, expected return on plan assets 5.00% 5.00% 5.00%
Other Benefits | Maximum      
Defined Benefit Plan Disclosure [Line Items]      
Benefit obligations, medical trend 7.00% 6.50% 6.75%
Net periodic cost, medical trend 6.50% 6.75% 7.00%
Other Benefits | Minimum      
Defined Benefit Plan Disclosure [Line Items]      
Benefit obligations, medical trend 5.00% 5.00% 5.00%
Net periodic cost, medical trend 5.00% 5.00% 5.00%
v3.25.4
Employee Benefits - Schedule of Net Periodic Benefit Cost Components (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other changes in plan assets and benefit obligations recognized in other comprehensive income:      
Current year actuarial (gain) loss $ 0 $ (1) $ 3
Amortization of actuarial loss (1) 0 (4)
Pension Benefits      
Components of net periodic pension benefit cost (credit):      
Service cost 15 17 17
Interest cost 87 83 85
Expected return on plan assets (90) (94) (94)
Amortization of prior service (credit) cost (3) (3) (3)
Amortization of actuarial loss 21 22 13
Settlements 0 1 1
Net periodic pension benefit cost (credit) 30 26 19
Other changes in plan assets and benefit obligations recognized in other comprehensive income:      
Current year actuarial (gain) loss 0 (1) 3
Amortization of actuarial loss (1) 0 (4)
Total recognized in other comprehensive income (1) (1) (1)
Total recognized in net periodic benefit cost (credit) and other comprehensive income 29 25 18
Other Benefits      
Components of net periodic pension benefit cost (credit):      
Service cost 2 2 2
Interest cost 12 12 14
Expected return on plan assets (12) (12) (12)
Amortization of prior service (credit) cost (31) (31) (31)
Amortization of actuarial loss 0 0 2
Net periodic pension benefit cost (credit) $ (29) $ (29) $ (25)
v3.25.4
Commitments and Contingencies - Additional Information (Details)
gal in Millions
 12 Months Ended
Sep. 12, 2025
USD ($)
Apr. 24, 2024
claim
Dec. 31, 2025
USD ($)
subsidiary
state
Dec. 31, 2024
USD ($)
customer
Dec. 31, 2023
USD ($)
Feb. 18, 2026
lawsuit
Oct. 09, 2025
a
Aug. 14, 2025
a
May 21, 2025
USD ($)
May 09, 2025
a
Jul. 24, 2024
improvement
Jun. 14, 2024
lawsuit
Dec. 20, 2023
lawsuit
Dec. 11, 2023
standard
Dec. 06, 2023
USD ($)
Nov. 16, 2023
investigation
Nov. 11, 2023
customer
Nov. 10, 2023
customer
Apr. 28, 2023
USD ($)
Dec. 05, 2022
USD ($)
Oct. 31, 2022
gal
Feb. 28, 2021
parcel
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
agreement
Commitments And Contingencies [Line Items]                                                    
Estimated capital expenditures under legal and binding contractual obligations     $ 1,500,000,000                                              
Purchase obligation     138,000,000 $ 129,000,000 $ 125,000,000                                          
Loss contingency, probable loss     8,000,000                                              
Daily production, number of gallons related to desalinated water | gal                                         6.4          
Initial daily production, number of gallons related to desalinated water | gal                                         4.8          
Number of dismissed claims | claim   1                                                
Settlement payments received     $ 159,000,000                                              
Number of utility subsidiaries | subsidiary     7                                              
Number of denied regulatory application | state     2                                              
Total escrow account funds held in law firm     $ 114,000,000                                              
Escrowed funds     47,000,000                                              
Cal Am                                                    
Commitments And Contingencies [Line Items]                                                    
Number of agreements, void | agreement                                                   4
Number of agreements | agreement                                                   5
Number of agreements, valid | agreement                                                   1
Dunbar | WVAWC                                                    
Commitments And Contingencies [Line Items]                                                    
Loss contingency, probable loss       5,000,000                                            
Litigation settlement, proposed maximum pre-tax amount $ 18,000,000                                                  
Litigation settlement, amount awarded to other party $ 5,000,000                                                  
Loss contingency, probable loss, net of tax       $ 4,000,000                                            
West Virginia | WVPSC                                                    
Commitments And Contingencies [Line Items]                                                    
Number of focused general investigations | investigation                               2                    
West Virginia | WVAWC                                                    
Commitments And Contingencies [Line Items]                                                    
Number of customers for whom a precautionary boil water advisory was issued to | customer                                 300                  
Number of customers who completed claim process | customer       594                                            
Natural gas outage inconvenience per household, average amount paid       $ 1,500                                            
West Virginia | Mountaineer Gas Company                                                    
Commitments And Contingencies [Line Items]                                                    
Number of customer serving (over) | customer                                   220,000                
Number of customer affected by loss of natural gas service | customer                                   1,500                
West Virginia | Mountaineer Gas Company and WVAWC                                                    
Commitments And Contingencies [Line Items]                                                    
Number of pending lawsuits | lawsuit                       4                            
Number of pending lawsuits with answers provided for | lawsuit                         3                          
Number of recommended operational improvements | improvement                     3                              
West Virginia | Mountaineer Gas Company and WVAWC | Subsequent Event                                                    
Commitments And Contingencies [Line Items]                                                    
Number of pending lawsuits | lawsuit           4                                        
Monterey | Cal Am                                                    
Commitments And Contingencies [Line Items]                                                    
Water supply projected area | a             2,500 2,600   2,500                                
Potential condemnation, asset value                                             $ 513,000,000      
Potential condemnation, parcels of land | parcel                                           58        
Potential condemnation, number of statutory standards incorrectly applied by agency | standard                           2                        
Potential condemnation, offer rejection amount                                     $ 448,800,000              
Monterey | Cal Am | SWRCB                                                    
Commitments And Contingencies [Line Items]                                                    
Approved cost estimates                                               $ 279,000,000    
Aggregate costs     324,000,000                                              
Allowance for funds used during construction     107,000,000                                              
Cost cap for proposed facilities, final                                       $ 62,000,000            
Cost cap for extraction wells                 $ 11,000,000                                  
Maximum                                                    
Commitments And Contingencies [Line Items]                                                    
Loss contingency, possible loss     $ 4,000,000                                              
Maximum | West Virginia | WVAWC                                                    
Commitments And Contingencies [Line Items]                                                    
Natural gas outage inconvenience per household, amount                             $ 2,000                      
Maximum | Monterey | Cal Am | SWRCB                                                    
Commitments And Contingencies [Line Items]                                                    
Approved recovery amount                                       $ 123,000,000         $ 50,000,000  
v3.25.4
Commitments and Contingencies - Schedule of Future Annual Commitments Related to Minimum Quantities of Purchased Water Having Non-Cancelable Terms (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2026 $ 83
2027 77
2028 78
2029 79
2030 55
Thereafter $ 968
v3.25.4
Earnings Per Common Share - Schedule of Reconciliation of Numerator and Denominator for Basic and Diluted Earnings Per Share (Details) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net income attributable to common shareholders - Basic $ 1,111 $ 1,051 $ 944
Net income attributable to common shareholders - Diluted $ 1,111 $ 1,051 $ 944
Weighted average common shares outstanding—Basic (in shares) 195 195 193
Effect of dilutive common stock equivalents (in shares) 0 0 0
Effect of dilutive forward sale agreements (in shares) 0 0 0
Weighted average common shares outstanding—Diluted (in shares) 195 195 193
v3.25.4
Earnings Per Common Share - Additional Information (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based awards      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from the computation of earnings per share, less than (in shares) 1 1 1
Forward Sale Agreements      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from the computation of earnings per share, less than (in shares) 1    
v3.25.4
Fair Value of Financial Information - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Secured seller promissory note from the sale of the Homeowner Services Group $ 0 $ 795
Long-term restricted funds 20 15
Other current assets    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Other investments 55 71
Other long-term assets    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Other investments 0 44
Carrying Amount    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Secured seller promissory note from the sale of the Homeowner Services Group 795 795
Fair Value | Homeowner Services Group | Disposal Group, Disposed of by Sale | Level 3    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Secured seller promissory note from the sale of the Homeowner Services Group $ 798 $ 793
v3.25.4
Fair Value of Financial Information - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Carrying Amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Preferred stock with mandatory redemption requirements $ 3 $ 3
Long-term debt 14,256 13,155
Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Preferred stock with mandatory redemption requirements 3 3
Long-term debt 13,334 11,873
Fair Value | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Preferred stock with mandatory redemption requirements 0 0
Long-term debt 11,653 10,165
Fair Value | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Preferred stock with mandatory redemption requirements 0 0
Long-term debt 1,065 1,050
Fair Value | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Preferred stock with mandatory redemption requirements 3 3
Long-term debt $ 616 $ 658
v3.25.4
Fair Value of Financial Information - Schedule of Measurements of Assets and Liabilities on Recurring Basis (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Assets:    
Restricted funds $ 41 $ 44
Rabbi trust investments 32 29
Deposits 124 6
Mark-to-market derivative asset $ 2 $ 24
Mark-to-market derivative asset [Extensible Enumeration Not Disclosed Flag] Mark-to-market derivative asset Mark-to-market derivative asset
Total assets $ 254 $ 218
Liabilities:    
Deferred compensation obligations 38 34
Total liabilities 38 34
Total assets 216 184
Fixed-income securities    
Assets:    
Other investments 35 94
Money market and other    
Assets:    
Other investments 20 21
Level 1    
Assets:    
Restricted funds 41 44
Rabbi trust investments 32 29
Deposits 124 6
Mark-to-market derivative asset 0 0
Total assets 245 188
Liabilities:    
Deferred compensation obligations 38 34
Total liabilities 38 34
Total assets 207 154
Level 1 | Fixed-income securities    
Assets:    
Other investments 28 88
Level 1 | Money market and other    
Assets:    
Other investments 20 21
Level 2    
Assets:    
Restricted funds 0 0
Rabbi trust investments 0 0
Deposits 0 0
Mark-to-market derivative asset 2 24
Total assets 9 30
Liabilities:    
Deferred compensation obligations 0 0
Total liabilities 0 0
Total assets 9 30
Level 2 | Fixed-income securities    
Assets:    
Other investments 7 6
Level 2 | Money market and other    
Assets:    
Other investments 0 0
Level 3    
Assets:    
Restricted funds 0 0
Rabbi trust investments 0 0
Deposits 0 0
Mark-to-market derivative asset 0 0
Total assets 0 0
Liabilities:    
Deferred compensation obligations 0 0
Total liabilities 0 0
Total assets 0 0
Level 3 | Fixed-income securities    
Assets:    
Other investments 0 0
Level 3 | Money market and other    
Assets:    
Other investments $ 0 $ 0
v3.25.4
Fair Value of Financial Information - Schedule of Unrealized Positions for Available-for-sale Fixed-Income Securities (Details) - Available-for-sale fixed-income securities - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Amortized Cost Basis $ 36 $ 94
Gross unrealized gains 0 2
Gross unrealized losses 1 2
Fair Value $ 35 $ 94
v3.25.4
Fair Value of Financial Information - Schedule of Available-for-sale Fixed-Income Securities (Details) - Fixed-income securities - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Less than one year $ 6  
1 year - 5 years 18  
5 years - 10 years 4  
Greater than 10 years 7  
Total $ 35 $ 94
v3.25.4
Leases (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Finance lease [extensible enumeration] Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization  
Carrying value of finance lease assets $ 142 $ 143  
Payments, year one 11    
Payments, year two 11    
Payments, year three 9    
Payments, year four 8    
Payments, year five 6    
Payments, thereafter 83    
Operating leases, rent expense 13 12 $ 11
Operating lease payments 12 11 11
Right-of-use asset obtained in exchange for operating lease liability $ 8 $ 11 $ 11
Operating lease, weighted-average remaining lease term 18 years 18 years 17 years
Operating lease, weighted-average discount rate 5.00% 5.00% 4.00%
Imputed interest $ 46    
Operating and Maintenance Agreement      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Payments, year one 4    
Payments, year two 4    
Payments, year three 4    
Payments, year four 4    
Payments, year five 4    
Payments, thereafter $ 33    
Real Property      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Operating lease, term of contract 39 years    
Vehicles      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Operating lease, term of contract 4 years    
Equipment      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Operating lease, term of contract 5 years    
Minimum      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Operating lease, renewal term 1 year    
Minimum | Utility Plant      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Lessee, finance lease, term of contract 30 years    
Maximum      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Operating lease, renewal term 60 years    
Maximum | Utility Plant      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Lessee, finance lease, term of contract 40 years    
v3.25.4
Segment Information - Additional Information (Details)
 12 Months Ended
Dec. 31, 2025
segment
state
Segment Reporting Information [Line Items]  
Number of reportable segment | segment 1
Regulated Businesses  
Segment Reporting Information [Line Items]  
Number of states in which entity provides water and wastewater services | state 14
v3.25.4
Segment Information - Schedule of Summarized Segment Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Operating revenues $ 5,140 $ 4,684 $ 4,234
Operation and maintenance 2,019 1,858 1,720
Other segment items 280 250 227
Depreciation and amortization 894 788 704
Interest expense 615 523 460
Interest income (90) (94) (73)
Provision for (benefit from) income taxes 311 308 252
Net income attributable to common shareholders 1,111 1,051 944
Total assets 35,442 32,830 30,298
Capital expenditures 3,126 2,856 2,575
Operating Segments | Regulated Businesses      
Segment Reporting Information [Line Items]      
Operating revenues 4,723 4,296 3,920
Operation and maintenance 1,642 1,517 1,441
Other segment items 271 241 220
Depreciation and amortization 883 772 693
Interest expense 474 416 364
Interest income (5) (17) (28)
Provision for (benefit from) income taxes 321 302 259
Net income attributable to common shareholders 1,137 1,065 971
Total assets 32,649 29,941 27,480
Capital expenditures 3,112 2,838 2,551
Other      
Segment Reporting Information [Line Items]      
Operating revenues 417 388 314
Operation and maintenance 377 341 279
Other segment items 9 9 7
Depreciation and amortization 11 16 11
Interest expense 141 107 96
Interest income (85) (77) (45)
Provision for (benefit from) income taxes (10) 6 (7)
Net income attributable to common shareholders (26) (14) (27)
Total assets 2,793 2,889 2,818
Capital expenditures $ 14 $ 18 $ 24