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

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

News Market Reaction

-0.33%

1 alert

-0.33% News Effect

On the day this news was published, AWK declined 0.33%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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

4 metrics

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

Market Reality Check

Price: $123.81 Vol: Volume 1427834 is close t...

normal vol

$123.81 Last Close

Volume Volume 1427834 is close to the 20-day average, with relative volume at 1.02x. normal

Technical Shares at 131.42 are trading below the 200-day MA of 138.81 and 15.49% under the 52-week high.

Peers on Argus

AWK was roughly flat (-0.01%) while key peers showed mixed moves: WTRG -0.63%, A...

AWK was roughly flat (-0.01%) while key peers showed mixed moves: WTRG -0.63%, AEE -0.21%, ATO -1.6%, DTE +0.47%, FE +0.57%, pointing to stock-specific rather than broad sector momentum.

Historical Context

5 past events · Latest: Jan 15 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 15	Customer education	Neutral	-0.0%	Guidance to reduce winter road salt to protect water quality.
Jan 12	Infrastructure investment	Positive	+1.8%	Shared new customer savings tools and about $70M in 2025 upgrades.
Jan 07	Infrastructure investment	Positive	-1.3%	Outlined more than $450M in 2025 system upgrades and savings tools.
Dec 19	ESG recognition	Positive	-2.1%	Named to Newsweek’s America’s Most Responsible Companies 2026 list.
Dec 18	M&A acquisition	Positive	-0.7%	Agreement to acquire Hopewell Borough water system for $6.4M.

Pattern Detected

Recent operational and ESG-focused news has typically produced modest, mixed price reactions, with several positive announcements followed by short-term weakness.

Recent Company History

Over the past few months, American Water (AWK) has highlighted customer conservation programs, infrastructure investment, and corporate responsibility. Recent releases in January 2026 showcased state-level initiatives in Kentucky and Missouri and a public education campaign in New Jersey. In December 2025, AWK reported acquisition activity in Hopewell Borough and recognition on Newsweek’s 2026 responsibility list. The current California ASR update continues this pattern of emphasizing long-term water resilience and infrastructure rather than near-term financial metrics.

Market Pulse Summary

This announcement highlights California American Water’s Aquifer Storage and Recovery program as par...

Analysis

This announcement highlights California American Water’s Aquifer Storage and Recovery program as part of a broader drought-resilience strategy. Since December 26, 2025, it has captured over 240 acre-feet (about 78 million gallons), with more than 715 acre-feet (roughly 233 million gallons) stored in water year 2024–2025. In the context of ongoing state-level rate cases and large capital plans, this update reinforces AWK’s emphasis on infrastructure, conservation, and long-term water supply reliability.

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. Not financial advice.

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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/california-american-waters-aquifer-storage-and-recovery-adds-to-communitys-water-supply-302665947.html

SOURCE American Water

FAQ

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.