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American Water Works Company (AWK) Stock News, Mar-Apr 2021

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American Water Works Company, Inc. reports developments tied to its regulated water and wastewater utility operations across the United States. The company provides drinking water and wastewater services to about 14 million people through regulated operations in 14 states and on 18 military installations, with operating subsidiaries including California American Water, Pennsylvania American Water, Maryland American Water, Virginia American Water, Illinois American Water, Iowa American Water and Tennessee American Water.

News for AWK commonly covers annual water quality and Consumer Confidence Reports, state-level service updates, infrastructure investment, public utility rate proceedings, drinking water standards, community programs and subsidiary activity in local service territories. Updates also reference the company’s long operating history and its role in regulated water and wastewater service delivery.

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Missouri American Water has been officially voted as the water and wastewater service provider for the communities of Orrick and Smithton, with over 85% and 76% support, respectively. This transition will add 1,118 customers, enhancing Missouri American Water's reach to approximately 1.5 million residents. The company has committed to investing in system improvements to ensure quality and regulatory compliance. These developments reflect increasing demand for their services, as more communities face water challenges.

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American Water (NYSE: AWK) has appointed Mark McDonough as Senior Vice President and President of New Jersey American Water, effective April 19, 2021. McDonough succeeds Cheryl Norton, who was named Executive Vice President and COO on March 1, 2021. Previously leading the Military Services Group, McDonough's experience includes managing water services for 17 military installations. He brings a strong utility background and commitment to customer service. New Jersey American Water serves approximately 2.8 million people, reinforcing American Water’s status as a leading utility provider.

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The Missouri Public Service Commission (MoPSC) approved a rate review agreement for Missouri American Water's water and wastewater operations on April 7. The order includes $620 million in system improvements since 2017. Most residential water customers will see no change or a slight decrease in their bills, while wastewater customers will experience a small increase of $3 to $5. New rates are set to take effect by the end of May. Missouri American Water emphasizes its commitment to providing reliable services while meeting state and federal regulations.

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On April 19, New Jersey American Water will resume using chloramines for water treatment at its Raritan-Millstone and Canal Road plants, which serve customers in several New Jersey counties. The change follows a temporary switch to free chlorine in January for routine maintenance. Chloramines, effective since the 1980s, meet all EPA and NJDEP standards. Customers may have noticed a slight chlorine taste during the transition, but this will subside with the resumption of chloramines. New Jersey American Water serves approximately 2.8 million people.

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Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), has signed an agreement to purchase the City of York's wastewater system assets for $235 million. This system serves over 45,000 connections. The agreement, approved by the York City Council and Sewer Authority, aims to enhance service reliability and environmental protection while alleviating York's debt burden. Pennsylvania American Water plans to maintain current wastewater rates for three years and invest in system upgrades. The transaction is expected to close by late 2021 or early 2022.

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California American Water will conduct a free online firescape class on April 7, 2021, at 6:00 p.m. to help homeowners safeguard their properties against wildfires. Rich Svindland, President of California American Water, emphasized the ongoing threat of wildfires, highlighting that over two million acres burned in California in 2020. The workshop will educate attendees on landscaping practices that can protect homes and include consultation from the County of Los Angeles Fire Department. Up to 600 participants can register on a first-come, first-served basis.

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Missouri American Water is undertaking an extensive project to replace aging water mains along McKelvey Road as part of a multimillion-dollar initiative aimed at upgrading water infrastructure across the state. This initiative is designed to enhance water flow and supply for residents in Maryland Heights, with construction expected to run from March to September. The work will occur in four phases, impacting traffic and potentially causing temporary water service interruptions.

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New Jersey American Water has agreed to acquire the water and wastewater assets of Egg Harbor City, NJ, for $21.8 million. The systems serve about 3,000 connections and the transaction is expected to finalize in the second half of 2021, pending regulatory approval. New Jersey American Water plans to invest $14 million over ten years for infrastructure upgrades, including an emergency interconnection and main replacements. This sale aims to alleviate the city's existing debt and stabilize customer rates while enhancing service quality.

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Illinois American Water is investing $37 million in the Lincoln water system, which includes a new South Water Treatment Plant, an elevated water tower, and water main replacements. The treatment plant will enhance water delivery capacity by 1.4 million gallons per day and implement advanced treatment processes. A new 1 million gallon water tower is also under construction, expected to support water reliability and fire protection. The project aims to reduce emergency-related boil water orders and improve service for about 1.3 million customers.

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On March 22, 2021, the American Society of Civil Engineers (ASCE) released its Report Card for America’s Infrastructure, grading drinking water systems a C- and wastewater systems a D+. Pennsylvania American Water plans to invest approximately $1.1 billion in infrastructure improvements over the next three years, following $400 million spent in 2020 despite COVID-19. The American Water Works Association estimates that at least $1 trillion is needed to upgrade the nation’s water systems over the next 25 years, underscoring the urgency for infrastructure renewal.

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FAQ

What is the current stock price of American Water Works (AWK)?

American Water Works (AWK) last closed at $150.29.

What is the market cap of American Water Works (AWK)?

The market cap of American Water Works (AWK) is approximately $29.9B.