Pennsylvania American Water Asks Customers in 21 Counties to Reduce Nonessential Water Use During Drought Watch Declaration

Rhea-AI Summary

Pennsylvania American Water (NYSE:AWK) is asking customers in 21 counties to voluntarily reduce nonessential water use by 10–15% (about 11–16 gallons per day) following the Pennsylvania Department of Environmental Protection's expanded drought watch declaration announced Jan. 20, 2026. The company said current supplies are adequate but urged conservation to prepare for possible worsening conditions. Affected counties are listed and customers are directed to online resources, a Water Use Calculator, and practical indoor/outdoor conservation tips.

News Market Reaction

-1.44%

1 alert

-1.44% News Effect

On the day this news was published, AWK declined 1.44%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Requested cut: 10–15% Daily reduction: 11–16 gallons DEP drought counties: 40 counties +5 more

8 metrics

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

Daily reduction 11–16 gallons Approximate per-customer cut in daily use requested

DEP drought counties 40 counties Total counties in DEP drought watch declaration

AWK service counties 21 counties Counties under drought watch where PA American Water operates

Prior drought watch 37 counties Original DEP drought watch before Jan. 8 expansion

Drought classifications 3 levels DEP’s statewide drought classification tiers, watch is least severe

52-week high $155.50 Pre-news 52-week high; shares at $133.34 were 14.25% below

52-week low $120.63 Pre-news 52-week low; shares were 10.54% above

Market Reality Check

Price: $130.53 Vol: Volume 1,479,797 is 6% ab...

normal vol

$130.53 Last Close

Volume Volume 1,479,797 is 6% above the 20-day average of 1,396,871, indicating modestly elevated activity before this conservation update. normal

Technical Shares at 133.34 are trading below the 200-day moving average of 138.81, with the stock sitting 14.25% under its 52-week high.

Peers on Argus

AWK was roughly flat at -0.01% while key regulated utility peers like WTRG, AEE,...

AWK was roughly flat at -0.01% while key regulated utility peers like WTRG, AEE, ATO, DTE, and FE showed positive moves (e.g., FE up 1.63%). No peers appeared in momentum scanners and no same-day peer headlines were recorded, pointing to a company-specific, operationally focused update rather than a sector-wide move.

Historical Context

5 past events · Latest: Jan 15 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 15	Environmental advisory	Neutral	-0.0%	Guidance to limit winter road salt use to protect water quality.
Jan 12	Customer savings tips	Positive	+1.8%	Kentucky unit shared new ways to save money, water, and time.
Jan 07	Infrastructure investment	Positive	-1.3%	Missouri unit noted over <b>$450 million</b> in 2025 system upgrades.
Dec 19	ESG recognition	Positive	-2.1%	Named to Newsweek’s 2026 America’s Most Responsible Companies list.
Dec 18	Small acquisition	Positive	-0.7%	Agreed to acquire Hopewell Borough water system for <b>$6.4 million</b>.

Pattern Detected

Recent positive ESG, conservation, and acquisition headlines often coincided with flat to negative next-day moves, suggesting limited short-term price impact from similar operational or sustainability news.

Recent Company History

Over the past months, AWK has highlighted customer conservation initiatives in New Jersey, Kentucky, and Missouri, with investments of $70 million and more than $450 million in 2025 system upgrades. It also announced a $6.4 million acquisition of the Hopewell Borough system and recognition on Newsweek’s 2026 responsibility list. These ESG- and operations-focused updates saw mixed price reactions, so today’s Pennsylvania drought‑watch conservation request fits a pattern of modest market impact despite ongoing infrastructure and sustainability efforts.

Market Pulse Summary

This announcement centers on Pennsylvania’s expanded drought watch and AWK’s request that customers ...

Analysis

This announcement centers on Pennsylvania’s expanded drought watch and AWK’s request that customers in 21 counties voluntarily cut nonessential use by 10–15%, or about 11–16 gallons per day. It underscores operational readiness and demand management rather than financial changes. In context of prior conservation campaigns and infrastructure investments, investors may watch how prolonged dry conditions, regulatory responses, and future rate proceedings interact with these stewardship measures.

Key Terms

drought watch, surface water flow, groundwater level, soil moisture, +1 more

5 terms

drought watch technical

"in response to the drought watch declaration expansion announced recently"

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.

surface water flow technical

"based on public water supply levels and data related to four indicators: precipitation, surface water flow"

Surface water flow is the movement of rain, melted snow or other water across the ground and into streams, rivers, ponds or drainage systems rather than soaking into the soil. For investors, it matters because this flow determines flood risk, erosion, pollutant spread and how much water is available for industrial or agricultural use—similar to how water running off a roof into gutters directs where it collects and what it can damage or supply.

groundwater level technical

"data related to four indicators: precipitation, surface water flow, groundwater level and soil moisture"

The groundwater level is the depth below the surface where soil and rock are saturated with water — think of it as the natural underground water line, like the level of water in a basement. For investors it matters because that hidden water affects operating costs, construction and drilling feasibility, crop yields, contamination and cleanup risks, insurance and permitting; changes in the groundwater level can change a project’s economics or a property’s value.

soil moisture technical

"four indicators: precipitation, surface water flow, groundwater level and soil moisture"

Soil moisture is the amount of water held in the ground—think of soil as a sponge: how wet or dry it is determines how well plants and crops can access water. For investors, soil moisture matters because it directly affects crop yields, irrigation needs, drought risk and the value of agricultural, water‑management and sensor technologies; changes in moisture can influence revenues, costs and risk for businesses tied to land and food production.

WaterSense technical

"Products and services that have earned the WaterSense label have been certified"

WaterSense is a U.S. regulatory labeling program that certifies plumbing fixtures, irrigation systems, and related products as meeting specific water-efficiency standards, similar to how Energy Star marks energy-efficient appliances. For investors, a WaterSense label signals potential cost and resource savings for end users, can boost product demand and brand trust, and may affect a company's compliance costs, market access and competitive positioning in water-sensitive markets.

AI-generated analysis. Not financial advice.

MECHANICSBURG, Pa., Jan. 20, 2026 /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 recently 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 40 counties currently included in DEP's drought watch declaration, 21 are within areas where Pennsylvania American Water provides water service. Those counties include Adams, Beaver, Berks, Butler, Chester, Clarion, Clearfield, Clinton, Cumberland, Indiana, Jefferson, Lackawanna, Lancaster, Lawrence, Lebanon, Monroe, Northampton, Pike, Schuylkill, Union and Washington.

Following a meeting of the Commonwealth Drought Task Force on Jan. 8, DEP expanded its existing 37-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 21 counties does Pennsylvania American Water (AWK) ask to cut water use during the Jan. 20, 2026 drought watch?

The company listed Adams, Beaver, Berks, Butler, Chester, Clarion, Clearfield, Clinton, Cumberland, Indiana, Jefferson, Lackawanna, Lancaster, Lawrence, Lebanon, Monroe, Northampton, Pike, Schuylkill, Union and Washington counties.

How much water reduction is Pennsylvania American Water (AWK) asking customers to achieve during the drought watch?

Customers are asked to voluntarily reduce nonessential water use by 10–15%, roughly 11–16 gallons per day per household.

Does Pennsylvania American Water (AWK) say current supplies are sufficient during the Jan. 20, 2026 drought watch?

Yes. The company said sources of supply are currently adequate to meet customer needs but encouraged conservation to prepare for possible worsening conditions.

What resources does Pennsylvania American Water (AWK) provide to help customers save water during the drought watch?

The company points to its Wise Water Use web resources, the Alliance for Water Efficiency's online Water Use Calculator, free leak detection kits, and practical conservation tips.

What specific indoor and outdoor tips did Pennsylvania American Water (AWK) recommend during the Jan. 20, 2026 drought watch?

Recommendations include running full dishwashers/washers, fixing leaks, installing water-saving fixtures, turning off taps while brushing, watering lawns only when needed, and using a broom instead of a hose.

What prompted the expanded drought watch that affects Pennsylvania American Water (AWK) customers?

The Pennsylvania Department of Environmental Protection expanded its drought watch after the Commonwealth Drought Task Force reviewed public water supply levels and four indicators: precipitation, surface water flow, groundwater level and soil moisture.