Item 7.01 - Regulation FD Disclosure: Filing discloses that on August 28, 2026, Administrative Law Judges issued an interim order in Pennsylvania Public Utility Commission (PaPUC) proceedings regarding the proposed merger of Essential Utilities, Inc. with a wholly owned subsidiary of American Water Works Company, Inc. Non-Unanimous Settlement Reached: The interim order states that American Water,…

Our analysis rates this filing CAUTIOUS. The elevated concern level (6.2/10) reflects a material regulatory risk that could materially impact a major strategic transaction. The non-unanimous settlement in Pennsylvania is a concrete negative signal indicating regulatory resistance to merger terms.…

Concern level: HIGH (6.2/10). Key factors: One high-severity risk identified: Pennsylvania PaPUC Merger Approval Uncertainty (severity 7/10) - non-unanimous settlement indicates regulatory resistance and material deal completion risk; Two moderate-to-high severity risks: Merger Completion Risk (severity 6/10) and Merger-Related Business Disruption (severity 5/10) - multiple regulatory approvals…

Notable risk changes: Pennsylvania PaPUC Administrative Law Judges issued interim order confirming non-unanimous settlement in Essential Utilities merger proceeding - indicates regulatory body has concerns not fully aligned with merger parties, requiring full PaPUC approval; Merger completion now explicitly subject to multiple regulatory approval conditions that could impose 'burdensome or commercially undesirable…