California American Water President Addresses ASCE 2025 Report Card for California, Urges More Investment in Critical Water Infrastructure

California American Water (NYSE: AWK) President Sarah Leeper responded to the American Society of Civil Engineers' ASCE 2025 Report Card that downgraded California's drinking water grade from C (2019) to D+ (2025).

Rhea-AI Summary

California American Water (NYSE: AWK) President Sarah Leeper responded to the American Society of Civil Engineers' ASCE 2025 Report Card that downgraded California's drinking water grade from C (2019) to D+ (2025). Leeper emphasized the urgency of investment in drinking water infrastructure—citing drought, climate resilience, and aging pipes and equipment—and said ongoing investments are essential to keep water safe, reliable, and affordable.

Company scale: American Water serves more than 14 million people across 14 states; California American Water serves about 750,000 people.

Argus Dec 4 session

-1.56% close to close Open Argus

Details

News Market Reaction – AWK

On Dec 4, the first trading day after this news, AWK closed 1.56% below the previous close.

Data tracked by StockTitan Argus for the Dec 4 session.

Market Context

This announcement highlights ASCE’s downgrade of California’s drinking water grade to D+, emphasizin...

Analysis

This announcement highlights ASCE’s downgrade of California’s drinking water grade to D+, emphasizing pressures from drought, climate resilience and aging infrastructure. American Water, through its California subsidiary, frames ongoing investment as key to maintaining safe, reliable and affordable service for about 750,000 people in the state. In a broader context, the company already serves over 14 million people nationwide, so investors may watch future capital plans and related regulatory outcomes.

Key Figures

2019 water grade: C 2025 water grade: D+ People served: 14 million +4 more

2019 water grade

C

ASCE 2019 California drinking water grade

2025 water grade

D+

ASCE 2025 California drinking water grade

People served

14 million

American Water regulated operations

States served

14 states

American Water regulated operations

Military installations

18 installations

American Water service footprint

Employees

6,700 professionals

American Water workforce

California customers

750,000 people

California American Water service area

Historical Context

5 past events · Latest: Dec 05

5 events

1. Dec 05

   Conservation notice

   24h Move

   -0.8%

   Statewide mandatory conservation after New Jersey drought warning upgrade.

2. Dec 05

   Dividend announcement

   24h Move

   +0.4%

   Quarterly dividend of $0.8275 per share with set record and pay dates.

3. Dec 04

   Weather advisory

   24h Move

   +0.4%

   New Jersey advisory on early cold snap and pipe protection steps.

4. Dec 04

   Weather advisory

   24h Move

   -1.6%

   Corporate guidance to avoid frozen pipes and check service line material.

5. Dec 04

   Weather advisory

   24h Move

   -1.6%

   Missouri advisory to prepare for freezing temperatures and protect plumbing.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

american society of civil engineers, asce, infrastructure

3 terms

american society of civil engineers technical

"the American Society of Civil Engineers' (ASCE) 2025 Report Card"

The American Society of Civil Engineers (ASCE) is a professional organization that develops standards, publishes technical guidance, and produces national assessments on the condition of infrastructure such as bridges, roads, water systems and dams. Investors watch ASCE work because its assessments and standards can signal where public spending, regulations, or repair needs are likely to rise — similar to a mechanic’s inspection report that helps predict future repair bills and the value of a car.

asce technical

"the recent American Society of Civil Engineers (ASCE) report, which downgraded"

ASCE is the American Society of Civil Engineers, a major professional organization that develops engineering standards, publishes technical guidance and assesses the condition of infrastructure. Investors watch ASCE because its reports and guidelines influence construction practices, regulatory expectations and public spending priorities—similar to a trusted referee or roadmap that helps gauge the safety, cost and long‑term value of projects tied to companies in construction, engineering and materials.

infrastructure technical

"ASCE's 2025 Report Card for California's Infrastructure"

Infrastructure is the network of long-lasting physical and digital systems—like roads, bridges, power lines, water pipes, data centers and broadband networks—that keep an economy running, similar to a city’s backbone. For investors it matters because these assets are costly to build but often provide steady, predictable cash flow or value over many years, are influenced by government policy and regulation, and can offer diversification or inflation protection in a portfolio.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SACRAMENTO, Calif., Dec. 3, 2025 /PRNewswire/ -- Sarah Leeper, President of California American Water, issued the following statement in response to the grade of D+ for drinking water in the American Society of Civil Engineers' (ASCE) 2025 Report Card for California's Infrastructure:

"At California American Water, our commitment goes beyond maintaining pipes and pumps—it's about safeguarding the health, safety, and prosperity of every community we serve. The urgency of this mission is highlighted by the recent American Society of Civil Engineers (ASCE) report, which downgraded California's drinking water grade from a C in 2019 to a D+ in 2025. This underscores the significant infrastructure pressures facing our state, including droughts and climate resilience and aging pipes and critical equipment. As we face these challenges, our ongoing investments are essential to help ensure that Californians continue to have safe, clean, reliable, and affordable water for generations to come."

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. 

View original content to download multimedia:https://www.prnewswire.com/news-releases/california-american-water-president-addresses-asce-2025-report-card-for-california-urges-more-investment-in-critical-water-infrastructure-302632396.html

SOURCE American Water

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did California American Water say about the ASCE 2025 report for drinking water (AWK)?

President Sarah Leeper said the ASCE downgrade to D+ in 2025 highlights urgent infrastructure pressures and the need for continued investment.

How did California's drinking water grade change in the ASCE report from 2019 to 2025?

The drinking water grade declined from C in 2019 to D+ in 2025.

How many customers does California American Water serve (AWK)?

California American Water provides services to approximately 750,000 people.

How many people does American Water serve nationwide (AWK)?

American Water serves more than 14 million people across 14 states and 18 military installations.

What infrastructure risks did California American Water cite in response to the ASCE grade (AWK)?

The company cited drought, climate resilience, and aging pipes and critical equipment as key infrastructure pressures.