A Water Quality Message for Iowa American Water Customers

Rhea-AI Summary

Iowa American Water (NYSE:AWK) on Jan 29, 2026 explains why tap water may appear cloudy or milky: dissolved air (oxygen) trapped in cold water releases as tiny bubbles when pressure is reduced at the faucet. The company says this is not a health concern and that water meets applicable regulatory standards.

Customers are advised to hold a glass to light to watch bubbles clear and to call (866) 641-2108 if cloudiness persists.

Key Figures

River temperature: 32.5 degrees Clearing time: 1–2 minutes Customer service number: (866) 641-2108

3 metrics

River temperature 32.5 degrees Winter Mississippi River source water temperature

Clearing time 1–2 minutes Time for cloudy water in glass to clear as bubbles rise

Customer service number (866) 641-2108 Phone number for Iowa American Water customer inquiries

Market Reality Check

Price: $129.00 Vol: Volume of 1,342,485 share...

normal vol

$129.00 Last Close

Volume Volume of 1,342,485 shares is slightly below the 20-day average of 1,472,298 (relative volume 0.91). normal

Technical Shares at $129 are trading below the 200-day MA of $138.23 and about 17.04% under the 52-week high, while sitting 6.26% above the 52-week low.

Peers on Argus

AWK gained 1.53% while closest water peer WTRG rose 1.49%, but other regulated u...

AWK gained 1.53% while closest water peer WTRG rose 1.49%, but other regulated utilities like AEE, ATO, DTE and FE showed slight declines, suggesting a company-specific tilt rather than a broad utilities rally.

Historical Context

5 past events · Latest: Jan 28 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 28	Leadership appointment	Positive	-2.7%	New director named to lead business development and government affairs in Iowa.
Jan 28	Customer preparedness	Neutral	-2.7%	Guidance to Pennsylvania customers on protecting pipes in sub-freezing weather.
Jan 27	Treatment process update	Neutral	-2.7%	Temporary disinfectant change in New Jersey plants for annual maintenance.
Jan 27	Rate case filing	Neutral	-2.7%	Illinois rate request tied to about $577M of planned water investments.
Jan 27	Capital investment	Positive	-0.2%	Announcement of a $4.7M Sacramento-area well project for supply resiliency.

Pattern Detected

Recent benign operational and regulatory updates have often coincided with modest negative price reactions, indicating occasional short-term selling into neutral or routine news.

Recent Company History

Over the past few days, AWK has issued several routine updates across its state subsidiaries, including leadership changes, winter preparedness guidance, treatment adjustments, and sizable infrastructure-related rate filings in Illinois and California. Despite these operational and regulatory milestones, shares saw negative reactions around Jan 27–28, with multiple items linked to a -2.67% move. Today’s Iowa-focused water quality clarification continues the pattern of informational, customer-facing communications rather than transformational corporate events.

Market Pulse Summary

This announcement focuses on educating Iowa customers about cloudy or milky-looking tap water caused...

Analysis

This announcement focuses on educating Iowa customers about cloudy or milky-looking tap water caused by dissolved oxygen during colder months. It emphasizes that the effect is aesthetic, not a health risk, and that water meets Safe Drinking Water Act standards. In the broader context of recent operational and regulatory updates across subsidiaries, it reinforces American Water’s emphasis on compliance, customer communication, and system reliability rather than signaling a shift in financial or strategic direction.

AI-generated analysis. Not financial advice.

Water Company explains "cloudy" water

DAVENPORT, Iowa, Jan. 29, 2026 /PRNewswire/ -- It's that time of the year when Iowa American Water experiences one of its most common customer inquiries, "Why does my tap water sometimes appear cloudy or milky looking?" Iowa American's water quality professionals are quick to explain that cloudy or milky-looking water is not a health concern. Tiny air bubbles in the water can create a cloudy or milky appearance as the water is released from the tap.

"Cloudy or milky-looking" water, caused by dissolved air (oxygen), is not a health problem. The phenomenon of cloudy water from the tap is like bubbles being released from a carbonated beverage when the cap is removed and pressure released," said Tony Loete, Vice President of Operations at Iowa American Water. He adds that Iowa American Water provides its customers with water that meets or surpasses all Iowa Department of Natural Resources and U.S. Environmental Protection Agency Safe Drinking Water Act regulations. There are no water quality regulations pertaining to dissolved oxygen in water because it does not present a health risk.

Dissolved oxygen in water is most evident during winter months when the water temperature is the coldest. Cold water absorbs more air out of the atmosphere than warm water. During the winter months, the temperature of the Mississippi River, Iowa American Water's source of supply in its Quad Cities District, drops as low as 32.5 degrees. The water temperature does not increase significantly, as it passes through the water treatment process, and the network of underground water mains, known as the distribution system. Since the water temperature remains cold as it travels from the treatment plant to the customer, it remains saturated with dissolved oxygen until it enters the customer's home or business. 

When that cold water enters the internal plumbing system of a home or building, it warms up to room temperature during extended periods of non-use or overnight. This warmer water physically cannot hold as much dissolved air, but because the water is under pressure within the plumbing system's pipes, the excess dissolved air cannot escape until the water flows from the faucet. The result is cloudy water when the faucet is initially turned on. Hot water from the water heater is typically cloudier than cold water.

"Customers can observe dissolved air (oxygen) escaping from a glass of water by holding the cloudy water up to a bright light or sunlit window and watching the water clear from the bottom of the glass up as the tiny air bubbles rise to the surface. The glass of water should clear in a minute or two," Loete added. If the cloudy/milky water does not clear up within a few minutes, please call Iowa American Water at (866) 641-2108.

Customers with questions or concerns about their water quality should contact Iowa American's water quality experts or visit the company's web site at https://www.amwater.com/iaaw/Water-Quality/Water-Quality-Reports/ for a copy of the company's latest water quality report. A video explaining the cloudy water phenomenon is available at https://www.youtube.com/watch?v=yl5x7Qth9w4.

About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water's 6,700 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About Iowa American Water

Iowa American Water, a subsidiary of American Water is the largest regulated water utility in the state, providing safe, clean, reliable and affordable water and wastewater services to approximately 227,000 people.

For more information, visit iowaamwater.com and follow Iowa American Water on Facebook, X and LinkedIn.

View original content to download multimedia:https://www.prnewswire.com/news-releases/a-water-quality-message-for-iowa-american-water-customers-302674564.html

SOURCE American Water

FAQ

Why does Iowa American Water (AWK) say my tap water looked cloudy on Jan 29, 2026?

Cloudy tap water is caused by dissolved air (oxygen) in cold water releasing as tiny bubbles when pressure drops. According to the company, this is most common in winter when source water is cold and is not a health risk.

Is cloudy water from Iowa American Water (AWK) unsafe to drink on Jan 29, 2026?

No, cloudy or milky-looking water from the tap is not unsafe to drink. According to the company, dissolved oxygen causes the appearance and there are no regulations for dissolved oxygen because it poses no health risk.

How can I tell if cloudy water from AWK is just air bubbles or a problem?

Hold a glass of the cloudy water up to bright light and watch it clear from the bottom upward within a minute or two. According to the company, persistent cloudiness beyond a few minutes should be reported to their water quality team.

Why is Iowa American Water (AWK) more likely to report cloudy water in winter 2026?

Cold water absorbs more dissolved air, and when it warms in home plumbing the excess air forms bubbles at the tap. According to the company, Mississippi River source temperatures as low as 32.5°F increase the effect during winter.

What should AWK customers do if cloudy water does not clear after a few minutes?

If cloudiness persists, contact Iowa American Water at (866) 641-2108 for assistance. According to the company, customers can also access the latest water quality report and an explanatory video on the company's website and YouTube channel.