California American Water's Aquifer Storage and Recovery Adds to Community's Water Supply

California American Water (NYSE: AWK) is operating its Aquifer Storage and Recovery (ASR) program during the rainy season to capture excess Carmel River flows and store them in the Seaside Groundwater Basin.

Rhea-AI Summary

California American Water (NYSE: AWK) is operating its Aquifer Storage and Recovery (ASR) program during the rainy season to capture excess Carmel River flows and store them in the Seaside Groundwater Basin.

Since the ASR season began on Dec 26, 2025, the company has injected over 240 acre-feet (≈78 million gallons) for future use, and for water year 2024–2025 the program stored over 715 acre-feet (≈233 million gallons). The program runs only when state-mandated excess flows are available and is being used alongside water recycling and an approved desalination project to increase local water resilience.

Positive

• Injected 240 acre-feet (~78M gallons) since Dec 26, 2025
• Stored 715 acre-feet (~233M gallons) in water year 2024–2025
• Combines ASR with recycling and approved desalination to boost resilience

Negative

• ASR only captures state-mandated excess flows, limiting recharge timing
• Recharge opportunities may be irregular due to increasing drought frequency

Argus Jan 21 session

-0.33% close to close Open Argus

Details

News Market Reaction – AWK

On Jan 21, the first trading day after this news, AWK closed 0.33% below the previous close.

Data tracked by StockTitan Argus for the Jan 21 session.

Key Figures

ASR capture since Dec 26, 2025: over 240 acre-feet ASR capture gallons: approximately 78 million gallons Water year 2024–2025 storage: over 715 acre-feet +1 more

ASR capture since Dec 26, 2025

over 240 acre-feet

Water injected into Seaside Groundwater Basin for future use

ASR capture gallons

approximately 78 million gallons

Volume corresponding to current ASR season capture

Water year 2024–2025 storage

over 715 acre-feet

Stored for future use through ASR program

Water year 2024–2025 gallons

approximately 233 million gallons

Total water stored via ASR in that water year

Historical Context

5 past events · Latest: Jan 15

5 events

1. Jan 15

   Customer education

   24h Move

   -0.0%

   Guidance to reduce winter road salt to protect water quality.

2. Jan 12

   Infrastructure investment

   24h Move

   +1.8%

   Shared new customer savings tools and about $70M in 2025 upgrades.

3. Jan 07

   Infrastructure investment

   24h Move

   -1.3%

   Outlined more than $450M in 2025 system upgrades and savings tools.

4. Dec 19

   ESG recognition

   24h Move

   -2.1%

   Named to Newsweek’s America’s Most Responsible Companies 2026 list.

5. Dec 18

   M&A acquisition

   24h Move

   -0.7%

   Agreement to acquire Hopewell Borough water system for $6.4M.

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

Key Terms

aquifer storage and recovery, aquifers, hydrogeology, desalination

4 terms

aquifer storage and recovery technical

"continues its Aquifer Storage and Recovery (ASR) program during the rainy season"

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.

aquifers technical

"these aquifers act as natural subsurface storage reservoirs"

Aquifers are underground layers of rock, sand, or gravel that hold and let groundwater flow, acting like natural sponges or reservoirs beneath the surface. They matter to investors because access to reliable groundwater affects costs, operations and regulatory risk for industries such as agriculture, utilities, mining and real estate; depletion or contamination can lead to higher expenses, permit delays or reduced asset value.

hydrogeology technical

"The unique hydrogeology of this area allows us to make good use"

Hydrogeology is the study of groundwater — where subsurface water is stored, how it moves, and how clean or polluted it is — essentially the Earth’s underground plumbing. Investors care because groundwater influences project costs, legal and cleanup liabilities, permitting and operating risks, and the long-term value of land and resources; problems with underground water can be like a hidden leak that suddenly raises expenses or blocks a project from proceeding.

desalination technical

"By combining the ASR program with water recycling and the approved desalination project"

Desalination is the process of removing salt and other minerals from seawater or brackish water to produce fresh water people and businesses can use, similar to running salty water through a large, industrial filter or distillation system. It matters to investors because desalination plants are capital-intensive, often produce steady long-term revenue from water sales or contracts, and are sensitive to energy costs, regulation and environmental concerns—factors that affect profitability and risk.

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

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PACIFIC GROVE, Calif., Jan. 20, 2026 /PRNewswire/ -- Building upon over two decades of success, California American Water continues its Aquifer Storage and Recovery (ASR) program during the rainy season to capture and store excess water for use during periods of drought.

The aquifer storage and recovery process captures excess winter flows from the Carmel River and strategically replenishes underground aquifers. ASR operates through a network of well, pump and booster stations along the Carmel River, as well as a conveyance infrastructure installed along General Jim Moore Boulevard, which transports ASR water for storage in the Seaside Groundwater Basin.

"The unique hydrogeology of this area allows us to make good use of the sedimentary rock beneath our feet, as these aquifers act as natural subsurface storage reservoirs," said Spencer Vartanian, Director of Operations for California American Water in Pacific Grove. "Above ground, we prepare our critical infrastructure to help ensure it's in good working order and that we capture and store as much water as possible for later use."

As mandated by the state, California American Water's ASR program only captures excess Carmel River flows during heavy rainfall. With increasing periods of drought, the opportunity for ASR recharge opportunities may be irregular. By combining the ASR program with water recycling and the approved desalination project, the company is investing in reliable and resilient water infrastructure and storage to better serve the community. Despite recent rainfall, water conservation remains crucial in California, as the state prepares for potential future droughts.

Since the ASR season commenced on December 26, 2025, California American Water has captured over 240-acre feet of water (approximately 78 million gallons) and injected it into the Seaside Groundwater Basin for future use. For water year 2024-2025, over 715-acre feet of water (approximately 233 million gallons) was stored for future use through the ASR program.

"By working collaboratively with our partner agencies, we're executing on the necessary functions for a successful ASR season," continued Vartanian. "These important partnerships help ensure that our water resilience strategy continues to meet our community's water needs."

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 across 14 regulated jurisdictions and 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 high-quality and reliable water and wastewater services to approximately 700,000 people.

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SOURCE American Water

FAQ

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

What is California American Water (AWK) doing with its ASR program in January 2026?

The company is capturing excess Carmel River flows during the rainy season and injecting them into the Seaside Groundwater Basin for future use.

How much water has AWK injected into the Seaside Groundwater Basin since Dec 26, 2025?

AWK has captured and injected over 240 acre-feet (approximately 78 million gallons) since Dec 26, 2025.

How much water did AWK store through ASR in water year 2024–2025?

The ASR program stored over 715 acre-feet (approximately 233 million gallons) in water year 2024–2025.

Does AWK always capture Carmel River flows for ASR recharge?

No; ASR only captures excess flows when available and as mandated by the state during heavy rainfall.

How does AWK combine ASR with other projects to improve water reliability?

AWK pairs ASR with water recycling and an approved desalination project to increase local storage and supply resilience.