Arizona-American Water Company, Inc. - 2008 Rate Case Filing

On May 1, 2008, Arizona-American Water Company, Inc. ("Arizona-American" or "Company"), a wholly owned subsidiary of American Water Works Company (NYSE: AWK), filed an application with the Arizona Corporation Commission ("ACC" or "Commission") requesting rate increases for the following systems:

Name of                                         Revenue                            Percentage

District                                           Increase                            Increase

Agua Fria Water District                  $9,192,203                              48.8%

Anthem Water District                    $6,174,183                              66.0%

Havasu Water District                        $815,803                              79.5%

Mohave Water District                    $1,655,410                              32.4%

Paradise Valley Water District          $3,101,550                              39.5%                      

Sun City West Water District            $4,276,305                              75.0%

Tubac Water District                          $278,214                              65.2%

Agua Fria Wastewater District          $4,590,485                             169.3%

Anthem Wastewater District            $1,686,320                               26.4%

Mohave Wastewater District              $642,148                                80.7%  

In addition to the increases in revenue listed above, the Company is also seeking a number of changes to existing surcharges and fees and is requesting specific accounting treatments for certain plant items.

On Monday, June 2, 2008, ACC Staff issued a letter of deficiency notifying the Company that its application does not met the sufficiency requirements of Arizona Administrative Code Rule R14-2-103.  ACC Staff listed several deficiencies that need to be corrected before a proceeding on Arizona-American's request can begin.   The 30-day sufficency determination period will begin anew when the Company files a corrected application.