California American Water Prepares for Aquifer Storage and Recovery Program

Rhea-AI Summary

California American Water (AWK) prepared critical infrastructure to support the Aquifer Storage and Recovery (ASR) program in the Monterey Peninsula system ahead of the winter season.

Work includes sterilization and inspection of seasonal wells, installation or rehabilitation of column pipe, pumps, pump shafts and motors, disinfection, and installation of submersible components to maximize ASR production and water quality.

The ASR season begins on or after December 1 when Carmel River flows consistently exceed 40 cubic feet per second; once triggered, excess water is captured, treated and stored in the Seaside Basin for dry months. The system serves roughly 100,000 people with over 680 miles of pipeline and more than 100 storage tanks.

News Market Reaction – AWK

-0.19%

1 alert

-0.19% News Effect

On the day this news was published, AWK declined 0.19%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

ASR trigger flow: 40 cubic feet per second Service population: roughly 100,000 people Pipeline length: over 680 miles +2 more

5 metrics

ASR trigger flow 40 cubic feet per second State-mandated Carmel River flow threshold for ASR season start

Service population roughly 100,000 people Monterey Peninsula water system coverage

Pipeline length over 680 miles Monterey Peninsula water distribution network

Storage tanks over 100 storage tanks Monterey Peninsula water system infrastructure

Operating history more than 60 years Operation of Monterey Peninsula’s water system

Market Reality Check

Price: $134.08 Vol: Volume 2,030,471 is at 0....

normal vol

$134.08 Last Close

Volume Volume 2,030,471 is at 0.88x the 20-day average, indicating typical trading activity pre-announcement. normal

Technical Price at 130.09 is trading below the 200-day MA of 140.16, reflecting a weaker longer-term trend before this news.

Peers on Argus

AWK was up 0.44% while key peers were mixed: WTRG up 0.61%, but AEE, ATO, DTE, a...

AWK was up 0.44% while key peers were mixed: WTRG up 0.61%, but AEE, ATO, DTE, and FE showed declines, suggesting stock-specific rather than broad sector momentum.

Historical Context

5 past events · Latest: Dec 10 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 10	Drought conservation update	Neutral	+0.4%	Voluntary conservation request after expanded drought watch in Pennsylvania.
Dec 09	Small system acquisition	Positive	+0.4%	Completion of Yerba Buena Water Company acquisition adding new customers.
Dec 09	Plant upgrade completion	Positive	+0.4%	Completion of multi-year Metro East water treatment plant enhancements.
Dec 05	Mandatory conservation	Negative	-0.8%	Statewide mandatory conservation notice after New Jersey drought warning.
Dec 05	Dividend announcement	Positive	+0.4%	Quarterly dividend declaration continuing prior annualized increase.

Pattern Detected

Recent news items, including acquisitions, infrastructure upgrades, drought responses, and dividend announcements, generally coincided with modestly positive or stable price moves, indicating measured market reactions to operational and regulatory updates.

Recent Company History

This announcement fits a pattern of operational and infrastructure-focused updates for American Water. Recent news covered drought-related conservation in Pennsylvania, a completed acquisition of Yerba Buena Water Company adding about 250 customers, and a major Illinois plant upgrade with $157 million invested and service to roughly 350,000 people. A New Jersey mandatory conservation notice and a quarterly dividend of $0.8275 per share rounded out recent disclosures. Taken together, these releases highlight ongoing capital investment, system reliability efforts, and steady shareholder returns alongside region-specific water supply management.

Market Pulse Summary

This announcement underscores California American Water’s preparation for the Aquifer Storage and Re...

Analysis

This announcement underscores California American Water’s preparation for the Aquifer Storage and Recovery season, with sterilization, inspection, and rehabilitation of wells to optimize performance once Carmel River flows exceed 40 cubic feet per second. It complements recent updates on acquisitions, large-scale plant upgrades, and drought-related conservation measures. Investors may track how these infrastructure efforts support reliability for roughly 100,000 Monterey Peninsula customers and interact with ongoing capital plans and regulatory decisions across the broader American Water platform.

Key Terms

aquifer storage and recovery, cubic feet per second

2 terms

aquifer storage and recovery technical

"California American Water has prepared critical infrastructure to help ensure optimal success of the Aquifer Storage and Recovery (ASR) program"

A system that injects excess surface water into an underground layer of rock or sand (an aquifer) for storage and later pumping back out when needed, like a savings account for water. It matters to investors because it can reduce a company's exposure to drought, lower long‑term water costs, extend the life of water‑dependent operations, and affect capital and regulatory risk for utilities, agriculture, and industrial businesses.

cubic feet per second technical

"flow levels of the Carmel River meet state-mandated levels of consistently exceeding 40 cubic feet per second"

Cubic feet per second is a unit that measures how much water flows past a point each second; one cubic foot is about 7.48 gallons, so one cubic foot per second equals roughly 7.5 gallons every second. Investors watch this number because it indicates water availability and flow strength for things like hydroelectric power, irrigation, reservoir management and flood risk—factors that can directly affect energy output, operating costs, regulatory compliance and asset values.

AI-generated analysis. Not financial advice.

PACIFIC GROVE, Calif., Dec. 1, 2025 /PRNewswire/ -- California American Water has prepared critical infrastructure to help ensure optimal success of the Aquifer Storage and Recovery (ASR) program in its Monterey Peninsula water system. During winter storms, California American Water, along with Monterey Peninsula Water Management District, captures and treats excess rainfall from the Carmel River and stores the water for future use during dry months.

"Proactively enhancing ASR well infrastructure prepares us for the winter season," said Oliver Bell, Project Engineer, California American Water. "Without proper planning, we could potentially lose essential winter rainfall."

An important early step in ASR preparation is the sterilization and inspection of seasonal wells to maximize ASR production. This effort often includes the installation of new or rehabilitated equipment including column pipe, pump, pump shaft and motors. Equipment rehabilitation is followed by disinfection of the well along with the installation of any submersible components within the well, all of which helps to ensure optimal operation and water quality assurance.

"This process is designed to enhance the performance, efficiency and production yield of our wells," Bell continued. "The process will be completed as scheduled for the season. Supported by additional system preparations, we will be fully prepared to begin water capture once flow levels in the Carmel River meet the required thresholds."

ASR season begins on or after December 1 each year when flow levels of the Carmel River meet state-mandated levels of consistently exceeding 40 cubic feet per second. Once that flow rate is triggered, excess water can be captured and deposited into the Seaside Basin for future use. Capturing winter water when it's available is a core component of the California American Water supply strategy.

California American Water and its predecessor companies have operated the Monterey Peninsula's water system for more than 60 years. The system currently serves roughly 100,000 people with a network of over 680 miles of pipeline and over 100 storage tanks, making it one of the most complex water systems in California.

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 California American Water
California American Water, a subsidiary of American Water, provides safe, clean, reliable and affordable water and wastewater services to approximately 750,000 people. For more information, visit www.californiaamwater.com and follow California American Water on LinkedIn, Facebook, X, and Instagram. 

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SOURCE American Water

FAQ

What ASR preparations did California American Water announce for AWK on December 1, 2025?

The company announced well sterilization and inspection, equipment installation or rehabilitation and disinfection to maximize ASR production.

When does the ASR season start for AWK's Monterey Peninsula system in 2025?

ASR season begins on or after December 1, 2025 once Carmel River flows consistently exceed 40 cubic feet per second.

How does California American Water capture winter water for AWK shareholders and customers?

During winter storms the company captures and treats excess Carmel River water and deposits it into the Seaside Basin for future use in dry months.

What infrastructure serves AWK's Monterey Peninsula water system and how many people does it serve?

The system serves about 100,000 people with over 680 miles of pipeline and more than 100 storage tanks.

Who is California American Water working with on the ASR program for AWK?

The company is working with the Monterey Peninsula Water Management District to capture, treat and store excess winter rainfall.