📰 What This Document Is 📜

This filing is an exhibit (Exhibit 99.1) attached to a 425 report, which is a significant public filing used to announce major corporate events. Essentially, this document serves as a formal press release confirming a crucial milestone: the merger of American Water and Essential Utilities. The filing details the successful approval of the merger by the Kentucky Public Service Commission (PSC), marking the first major regulatory hurdle overcome on the path to completing the combined company.

👉 The headline finding: The merger has received necessary regulatory go-ahead, significantly advancing the timeline for creating a massive, combined utility powerhouse.

🗺️ The Merger Announcement and Scope ✨

The central focus of this filing is the achievement of regulatory approval for the proposed combination of American Water Works Company, Inc. (AWK) and Essential Utilities, Inc. (WTRG). Receiving this approval from the Kentucky PSC is a massive win because regulatory sign-offs are often the most challenging and time-consuming steps in a large utility merger.

• Regulatory Breakthrough: The Kentucky PSC has approved the proposed merger. This approval is vital as it represents the first regulatory clearance the companies have achieved in their path toward closing the combination.
• Shareholder Support: This regulatory approval comes after the transaction was overwhelmingly approved by the shareholders of both American Water and Essential Utilities at special meetings held in February 2026.
• The Deal: This will be an all-stock transaction, meaning that instead of exchanging cash, the companies will use stock to combine their interests.

💼 What American Water Does 💧

American Water is described as the largest regulated water and wastewater utility company in the United States. It has a long history, dating back to 1886, and has a significant footprint across the country. The company's core business involves providing essential life services to millions of people.

• Core Services: American Water provides safe, clean, reliable, and affordable drinking water and wastewater services.
• Scale and Reach: The company has regulated operations in 14 states and on 18 military installations, serving approximately 14 million people.
• History: Celebrating 140 years in 2026, its deep history underscores its established role as a critical piece of infrastructure.

🪴 What Essential Utilities Does 🏞️

Essential Utilities is another major player in the utility sector, focusing its services on water, wastewater, and natural gas. The company emphasizes its role as a steward of the environment, which is a key operational focus.

• Core Services: Essential focuses on delivering reliable services that improve quality of life across three key areas: water, wastewater, and natural gas.
• Scale and Reach: The company serves approximately 5.5 million people across nine states, operating under both the Aqua and Peoples brands.
• Commitment: Beyond services, Essential is highlighted for its commitment to sustainability, protecting thousands of acres of forests and other natural habitats.

🌊 The Combined Company Profile 🌐

The merger will create a single, much larger entity that will streamline operations and dramatically increase the company's service footprint. The new combined company will operate under the established brand name of American Water.

• Scale of Service: The combined entity will serve a total of more than 4.7 million water and wastewater customer connections.
• Natural Gas Footprint: Furthermore, it will connect with more than 740,000 gas customer connections, expanding its energy service capabilities.
• Operational Center: The merged company will be headquartered in Camden, New Jersey, and will operate under the name American Water.

⏰ Timeline and Required Conditions ⏳

While the merger has cleared several key hurdles, the process is not complete. This section outlines the expected timeline and the serious conditions that must be met before the transaction can officially close.

• Expected Closure: The merger is anticipated to close by the end of the first quarter of 2027.
• Subject to Conditions: This expected date is not a guarantee. The closing remains subject to several customary conditions, including:
  • Clearance under the Hart-Scott-Rodino Act (an anti-trust review by federal authorities).
  • Required approvals from other applicable public utility commissions (regulators outside of Kentucky).
  • The successful completion of all necessary internal and external due diligence steps.

🏛️ Operational Strengths and Opportunities 🚀

The parties highlighted their combined ability to execute their business plans, suggesting that the merger will significantly boost their operational power and growth potential.

• Combined Strength: The combined company is expected to leverage the national size and scale of American Water with the focused sustainable operations and multi-service offerings of Essential Utilities.
• Focus: The combined entity is positioned to become an even more comprehensive provider of critical infrastructure services across multiple states.
• 👉 Why it matters: The combination of scale (American Water) and regional operational expertise (Essential Utilities) suggests a deeper, more resilient service network.

📞 Investor and Media Contacts 💌

For anyone needing more detailed information, whether it’s for investment research or general media inquiry, the filing provides dedicated contacts for both original companies.

American Water Contacts:

• Investor Relations: Aaron Musgrave, Vice President, (856) 955-4029 | [email protected]
• Media Inquiries: Maureen Duffy, Executive Vice President, (856) 955-4163 | [email protected]

Essential Utilities Contacts:

• Investor Contact: Brian Dingerdissen, Vice President, Treasurer, FP&A and IR, (610) 645-1191 | [email protected]
• Media Contact: David Kralle, Vice President of Public Affairs, Hotline: (877) 325-3477 | [email protected]

🧠 The Analogy 🏘️

Think of a utility merger like two massive, essential plumbing networks that happen to operate in different parts of a city. American Water is like the large, historical city-wide main lines spanning dozens of blocks. Essential Utilities is like a highly efficient, state-of-the-art local system in a key neighborhood, specializing in multiple services like water, gas, and waste removal. By merging, they aren't just connecting two pipes; they are upgrading the entire system into one unified, more robust infrastructure backbone, making the whole city flow better and more reliably.

🧩 Final Takeaway ✨

The merger cleared a massive regulatory hurdle (Kentucky PSC approval), confirming the path forward for American Water and Essential Utilities. The combined company will be a colossal utility serving millions of connections and setting its sights on closing by the end of Q1 2027, provided all other legal and regulatory requirements are met.