Answer

Aqua Pennsylvania rate case timing and how it may change with the Governor’s ROE/capital-structure focus

1) Timing: why Aqua Pennsylvania’s filing was delayed and when it’s expected now

Management said the company made a strategic decision to delay the filing of the Aqua Pennsylvania case because Pennsylvania regulatory activity was “a lot” at the time—specifically referencing the merger case and other major rate matters ongoing/completed in Pennsylvania. ¹
Despite the delay, management indicated the next Aqua Pennsylvania rate case is still expected to be filed around year-end (i.e., later in 2026). ²³
Management framed the “delay vs. file” decision as thoughtful and deliberate rather than reactive to any technical defect in the case. ¹
They also emphasized the administrative process itself can influence timing in Pennsylvania (e.g., the ALJ has 90 days to decide and make a recommendation, and any extension could move timelines). ⁴
Note: this ALJ comment was made in the context of Pennsylvania merger-related timing, but it still signals management’s view that Pennsylvania procedural timelines can affect “calendar outcomes.” ⁴

2) Planned approach changes: “ROE/capital structure” and respecting the Governor’s emphasis

From the transcript exchange, management’s “planned changes” appear to be more about process, framing, and deference to the Governor’s stated priorities, rather than changing the mechanics of the case.

A) Management characterized the Aqua Pennsylvania case as “largely a capital case”

Management stated that the Aqua Pennsylvania case is “largely a capital case” and that there is “no complication” to the case because it follows the established rules. ¹

B) Approach: file similarly to the past, but “respectfully” to the Governor’s position

Management said they would file the case very similar to how they would in the past, while being “very respectful to the Governor’s position.” ¹
They described the need to be sensitive to potential intervenor positions in every rate case and indicated the company intends to manage within that reality while engaging parties. ¹

C) ROE and capital structure: how management expects the Commission to adjudicate

Management explicitly tied their view to the Governor’s emphasis by saying they will be respectful to the Governor’s stance on ROE and capital structure. ⁵¹
They also cited a reference point from another Pennsylvania proceeding: they stated that the commissioners in American Water’s case anchored DSIC ROE at “somewhere around 9.7%.” ¹
This is not presented as guidance or a forecast for Aqua Pennsylvania, but as a relevant precedent for what regulators may view as an initial “starting point.” ¹
They acknowledged there is a debate around capital structure and stated they would still “file the case as we normally would” with parties and regulators adjudicating “as such.” ¹

D) “Fair return” framing

Management’s stated stance was that shareholders and customers deserve a “return of and on the capital” and a fair return, with fairness determined by the Commission. ¹

3) Connection to the Governor’s ROE/capital structure focus: what management says changed in the regulatory environment

Management referenced an April 29 Governor Shapiro letter instructing utilities to prioritize the most cost-effective forms of capital and to explicitly demonstrate the necessity of proposed investments when seeking rate adjustments. ³
They also described subsequent engagement where the Governor’s office Special Counsel participated in public input for another pending rate case and acknowledged that the rate case there was filed prior to the Governor’s letter. ³
Against that backdrop, management said they expect to file the Aqua Pennsylvania water case around year-end while maintaining transparency and operating within Pennsylvania’s statutory rate-filing framework. ³²

4) Bottom line: what to expect for Aqua Pennsylvania specifically

Timing: Aqua Pennsylvania’s rate case was delayed due to a period of significant Pennsylvania regulatory activity, and management currently expects the case around year-end. ¹²
Approach: management does not describe a fundamental redesign of the case; rather, they intend to retain the usual case structure (“largely a capital case,” following rules) while being “very respectful” to the Governor’s focus on ROE and capital structure, including careful positioning around intervenors and “fair return” standards. ¹
ROE precedent context: management pointed to American Water’s DSIC ROE outcome as an example of how regulators may anchor ROE in Pennsylvania. ¹

References

Essential Utilities, Inc. (WTRG) earnings transcript 2026 - Q2

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Aqua Pennsylvania Delays Rate Case, Targets Year-End 2026 Filing Amid Governor’s ROE Focus

Sources used

Research question

Answer

Aqua Pennsylvania rate case timing and how it may change with the Governor’s ROE/capital-structure focus

1) Timing: why Aqua Pennsylvania’s filing was delayed and when it’s expected now

2) Planned approach changes: “ROE/capital structure” and respecting the Governor’s emphasis

A) Management characterized the Aqua Pennsylvania case as “largely a capital case”

B) Approach: file similarly to the past, but “respectfully” to the Governor’s position

C) ROE and capital structure: how management expects the Commission to adjudicate

D) “Fair return” framing

3) Connection to the Governor’s ROE/capital structure focus: what management says changed in the regulatory environment

4) Bottom line: what to expect for Aqua Pennsylvania specifically

References

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