Pennsylvania American Water Asks Customers in 17 Counties to Reduce Nonessential Water Use During Drought Watch Declaration

Rhea-AI Summary

Pennsylvania American Water (NYSE:AWK) on Dec. 10, 2025 asked customers in portions of its service area to voluntarily reduce nonessential water use by 10–15% (about 11–16 gallons per day) after the Pennsylvania Department of Environmental Protection expanded a drought watch to 37 counties, 17 of which overlap the company’s service territory.

The company said current supply is adequate but urged conservation to prepare for possible worsening conditions and pointed customers to its Wise Water Use resources, leak detection kits, and water‑saving tips and tools, including the Alliance for Water Efficiency calculator.

News Market Reaction

+0.44%

1 alert

+0.44% News Effect

On the day this news was published, AWK gained 0.44%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Requested use reduction: 10–15% Daily reduction: 11–16 gallons Counties in drought watch: 37 counties +5 more

8 metrics

Requested use reduction 10–15% Voluntary cut in nonessential water use per DEP guidance

Daily reduction 11–16 gallons Estimated per‑customer reduction from 10–15% conservation

Counties in drought watch 37 counties Total counties in DEP drought watch declaration

Counties served by AWK 17 counties Drought‑watch counties within Pennsylvania American Water service area

Prior drought watch coverage 25 counties Existing drought watch before DEP expansion

Drought indicators 4 indicators Precipitation, surface water flow, groundwater level, soil moisture

Drought classifications 3 levels State’s three drought severity classifications; watch is least severe

WaterSense efficiency 20% more efficient WaterSense‑label products vs. standard models

Market Reality Check

Price: $124.42 Vol: Volume 2,173,832 is close...

normal vol

$124.42 Last Close

Volume Volume 2,173,832 is close to the 20‑day average of 2,259,529 (relative volume 0.96), suggesting no unusual trading ahead of this advisory. normal

Technical Shares at $128.15 trade below the 200‑day MA of 140.2 and sit 17.59% under the 52‑week high of 155.5, about 7.92% above the 52‑week low of 118.74.

Peers on Argus

AWK slipped 0.24% with key regulated utilities peers also down: WTRG -0.77%, AEE...

AWK slipped 0.24% with key regulated utilities peers also down: WTRG -0.77%, AEE -0.65%, ATO -1.17%, DTE -0.45%, FE -0.01%. Moves suggest broad utilities softness rather than a drought‑specific dislocation.

Historical Context

5 past events · Latest: Dec 05 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 05	Conservation notice	Neutral	-0.8%	New Jersey subsidiary issued statewide mandatory conservation notice on drought warning.
Dec 05	Dividend declaration	Positive	+0.4%	Quarterly cash dividend of <b>$0.8275</b> per share with March 2026 payment date.
Dec 04	Weather advisory	Neutral	+0.4%	NJ American Water advised on pipe protection and conservation amid early cold snap.
Dec 04	Weather advisory	Neutral	-1.6%	American Water provided system‑wide guidance to prevent frozen or burst pipes.
Dec 04	Weather advisory	Neutral	-1.6%	Missouri subsidiary issued cold‑weather preparation tips to avoid frozen pipes.

Pattern Detected

Recent operational and conservation notices have been followed by modest single‑day moves within roughly +/-2%, indicating limited trading impact from similar service advisories.

Recent Company History

Over the last week, AWK news flow has focused on operational advisories and customer guidance, including cold‑weather and conservation messages across several state subsidiaries, plus a dividend declaration on Dec 5, 2025. Price reactions to these items have been modest, ranging from about -1.56% to +0.44%, suggesting that routine service and weather‑related updates have not materially shifted investor sentiment, while dividend news drew a small positive response.

Market Pulse Summary

This announcement details a DEP‑driven drought watch expansion and AWK’s request that customers in 1...

Analysis

This announcement details a DEP‑driven drought watch expansion and AWK’s request that customers in 17 affected Pennsylvania counties cut nonessential water use by 10–15%. Operationally, the company reports supplies as currently adequate, framing this as a precautionary conservation step. In context of recent cold‑weather and conservation advisories, investors may focus on how prolonged drought conditions, regulatory actions, and any follow‑on restrictions could influence demand patterns and future infrastructure spending.

Key Terms

drought watch

1 terms

drought watch regulatory

"a drought watch declaration is the first and least severe level"

A drought watch is an official alert that conditions could develop into a drought if dry weather continues; it signals rising risk rather than an established water shortage. For investors, it matters because it flags potential disruptions to water‑dependent businesses — think of it as a weather warning for supply chains, farms, utilities and insurers that can foreshadow higher costs, lower output or increased risk exposure.

AI-generated analysis. Not financial advice.

MECHANICSBURG, Pa., Dec. 10, 2025 /PRNewswire/ -- Pennsylvania American Water is encouraging customers throughout portions of its statewide service territory to voluntarily reduce their water consumption in response to the drought watch declaration expansion announced this week by the Pennsylvania Department of Environmental Protection (DEP). While the company always encourages wise water use, Pennsylvania American Water is asking residents and businesses to voluntarily reduce their nonessential water use by 10-15% (a reduction of approximately 11-16 gallons per day) in accordance with DEP's guidance.

"We're asking our customers in affected areas to observe the DEP's request and be mindful of their nonessential water use during this drought watch," said Brandy Braun, director of water quality and environmental compliance for Pennsylvania American Water. "Our sources of supply are currently adequate to meet the needs of our customers, but we want to prepare for the potential for more severe conditions that could lead to stricter conservation measures in the future." 

Of the 37 counties included in DEP's drought watch declaration, 17 are within areas where Pennsylvania American Water provides water service. Those counties include Adams, Beaver, Butler, Clarion, Clearfield, Clinton, Indiana, Jefferson, Lawrence, McKean, Monroe, Northampton, Pike, Schuylkill, Union Warren and Washington.

Following a meeting of the Commonwealth Drought Task Force on Dec. 4, DEP expanded its existing 25-county drought watch declaration based on public water supply levels and data related to four indicators: precipitation, surface water flow, groundwater level and soil moisture. According to DEP, a drought watch declaration is the first and least severe level of the state's three drought classifications. Learn more on DEP's drought information webpage.

Pennsylvania American Water offers multiple water conservation resources in the Wise Water Use section of its website. It also is a member of the Alliance for Water Efficiency, which developed an online Water Use Calculator that allows visitors to input water use information specific to their household and offers tips on where they can save water and energy based on that data. The company also periodically shares water conservation tips and reminders with customers through email campaigns, bill enclosures and social media posts.

Below are tips for conserving water inside and outside the home: 

• Run dishwashers and clothes washers only when they are full. If you have a water-saver cycle, use it.
• Regularly check your toilet, faucets, and pipes for leaks with our free leak detection kits. If you find a leak, have it fixed as soon as possible.
• Install water-saving showerheads, toilets and faucet aerators.
• Consider water and energy-efficient appliances. Products and services that have earned the WaterSense label have been certified to be at least 20% more efficient while maintaining performance.
• Turn off the tap while brushing your teeth or washing dishes in the sink.
• Water your lawn only when it needs it. When you do, water in the early morning or evening to reduce evaporation.
• Use a broom instead of a hose to clean your sidewalk, driveway or patio.
• Set up a rain barrel to be ready to repurpose rain when it does fall. For information, see this Penn State Extension guide.

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 Pennsylvania American Water
Pennsylvania American Water, a subsidiary of American Water, is the largest regulated water utility in the state with 1,200 dedicated employees working to provide safe, clean, reliable and affordable water and wastewater services to approximately 2.4 million people.  

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SOURCE American Water

FAQ

Which 17 counties served by Pennsylvania American Water are in the Dec. 10, 2025 DEP drought watch?

The 17 counties named are Adams, Beaver, Butler, Clarion, Clearfield, Clinton, Indiana, Jefferson, Lawrence, McKean, Monroe, Northampton, Pike, Schuylkill, Union, Warren and Washington.

What conservation reduction did Pennsylvania American Water (AWK) request on Dec. 10, 2025?

The company asked customers to voluntarily reduce nonessential water use by 10–15%, about 11–16 gallons per day.

Why did Pennsylvania American Water ask customers to cut water use on Dec. 10, 2025?

The request follows the DEP’s expansion of a drought watch based on precipitation, surface water flow, groundwater level and soil moisture indicators.

Where can AWK customers find water conservation resources and tools?

Customers can use the company’s Wise Water Use web resources, free leak detection kits, and the Alliance for Water Efficiency Water Use Calculator.

Will Pennsylvania American Water (AWK) interrupt service due to the Dec. 2025 drought watch?

The company said its sources of supply are currently adequate and did not announce any service interruptions, while urging voluntary conservation.