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

Pennsylvania American Water (NYSE:AWK) is asking residential and business customers in parts of its service area to voluntarily cut nonessential water use by 10–15%, or about 11–16 gallons per day, following an expanded drought watch by the Pennsylvania DEP.

Rhea-AI Summary

Pennsylvania American Water (NYSE:AWK) is asking residential and business customers in parts of its service area to voluntarily cut nonessential water use by 10–15%, or about 11–16 gallons per day, following an expanded drought watch by the Pennsylvania DEP.

The request applies to nine served counties under DEP’s drought watch or warning: Adams, Berks, Chester, Cumberland, Dauphin, Lancaster, Lebanon, Northampton and York. According to the company, current supplies can meet demand, but conservation now may help avoid stricter future measures. Pennsylvania American Water highlights online conservation resources, a water use calculator developed by the Alliance for Water Efficiency, and shares practical indoor and outdoor water-saving tips for customers.

Argus Jul 10 session

+0.11% close to close Open Argus

Details

News Market Reaction – AWK

On Jul 10, the day this news came out, AWK closed 0.11% above the previous close.

Data tracked by StockTitan Argus for the Jul 10 session.

Market Context

Pennsylvania American Water’s request for a 10–15% cut in nonessential use across 9 of the 18 drough...

Analysis

Pennsylvania American Water’s request for a 10–15% cut in nonessential use across 9 of the 18 drought‑watch counties underscores growing hydrological stress; investors may track how prolonged conservation guidance interacts with prior drought communications and evolving regulatory responses.

Key Figures

Requested use reduction: 10-15% Daily use reduction: 11-16 gallons Counties in drought watch: 18 counties +5 more

Requested use reduction

10-15%

Voluntary cut in nonessential water use per DEP guidance

Daily use reduction

11-16 gallons

Approximate per-customer daily cut implied by 10-15% request

Counties in drought watch

18 counties

DEP drought watch declaration statewide

AWK-served watch counties

9 counties

Counties under watch where Pennsylvania American Water operates

Counties raised to warning

4 counties

Berks, Lancaster, Lebanon and Lehigh upgraded from watch to warning

Drought indicators used

4 indicators

Precipitation, surface water flow, groundwater level, soil moisture

Drought classification levels

3 levels

DEP drought watch, warning and emergency framework

Pre-headline move

-1.01%

AWK price change in prior 24h before this release

Historical Context

5 past events · Latest: Jul 08

5 events

1. Jul 08

   environmental white paper

   24h Move

   -2.2%

   Highlighted wastewater upgrades and a $48 billion 10‑year capital plan.

2. Jul 01

   rate case filing

   24h Move

   +3.9%

   Missouri unit sought $179 million in revenues tied to $1.6 billion spend.

3. Jul 01

   conservation tips release

   24h Move

   +0.2%

   Kentucky unit promoted wise water use and MyWater tracking tools.

4. Jun 30

   system acquisition

   24h Move

   +0.2%

   New Jersey unit closed $6.4 million Hopewell system purchase and capex plan.

5. Jun 30

   drought concerns notice

   24h Move

   -0.7%

   Pennsylvania unit warned on drought conditions and promoted conservation tools.

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

Key Terms

drought watch, drought warning, surface water flow, groundwater level

4 terms

drought watch technical

"to voluntarily reduce their water consumption in response to the drought watch declaration expansion"

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.

drought warning technical

"DEP worsened its declaration from Watch to Warning for four counties"

A drought warning is an official alert from government or water authorities indicating that a region is experiencing or is likely to experience prolonged water shortages, prompting conservation measures or restrictions. For investors it is like a dashboard warning light: it signals higher risks for agriculture, utilities, food and beverage producers, real estate in affected areas, insurers and any business that depends on steady water supply, potentially altering revenues, costs and commodity prices.

surface water flow technical

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

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.

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

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MECHANICSBURG, Pa., July 10, 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 18 counties currently included in DEP's drought watch declaration, nine are within areas where Pennsylvania American Water provides water service. Those counties include Adams, Berks, Chester, Cumberland, Dauphin, Lancaster, Lebanon, Northampton and York.

Following a meeting of the Commonwealth Drought Task Force on June 29, 2026, DEP worsened its declaration from Watch to Warning for four counties – Berks, Lancaster, Lebanon and Lehigh – 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 warning declaration is the second 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 and celebrating 140 years in 2026, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 18 military installations. American Water's approximately 7,000 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 approximately 1,200 dedicated employees working to provide safe, clean, reliable and affordable water and wastewater services to approximately 2.5 million people.    

View original content to download multimedia:https://www.prnewswire.com/news-releases/pennsylvania-american-water-asks-customers-in-nine-counties-to-reduce-nonessential-water-use-during-drought-watch-declaration-302822881.html

SOURCE American Water

FAQ

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

Why is Pennsylvania American Water (AWK) asking customers to reduce water use in July 2026?

Pennsylvania American Water is requesting voluntary water reductions due to an expanded drought watch by the Pennsylvania DEP. According to the company, early conservation supports supplies and may help prevent stricter mandatory measures if conditions worsen.

How much should AWK customers cut nonessential water use during the Pennsylvania drought watch?

Pennsylvania American Water is asking customers to reduce nonessential water use by 10–15%, about 11–16 gallons per day. According to the company, this aligns with DEP guidance and targets discretionary uses like lawn watering and outdoor cleaning.

Which counties served by Pennsylvania American Water are affected by the July 2026 drought watch?

Nine counties in Pennsylvania American Water’s service area are affected: Adams, Berks, Chester, Cumberland, Dauphin, Lancaster, Lebanon, Northampton and York. According to the company, these lie within the 18 counties currently under the DEP’s drought watch declaration.

What is the difference between drought watch and drought warning mentioned by Pennsylvania American Water?

According to Pennsylvania DEP, a drought warning is the second of three state drought classifications, more serious than a watch. Pennsylvania American Water notes Berks, Lancaster, Lebanon and Lehigh counties recently shifted from watch to warning, based on water-supply and environmental indicators.

Are Pennsylvania American Water supplies currently adequate despite the drought watch in 2026?

According to Pennsylvania American Water, current water sources are adequate to meet customer needs. The company is encouraging voluntary conservation now to prepare for the possibility of more severe conditions and stricter conservation measures if the drought intensifies.

What water conservation tools does Pennsylvania American Water (AWK) offer customers?

Pennsylvania American Water provides conservation resources in its Wise Water Use web section and promotes an online Water Use Calculator from the Alliance for Water Efficiency. According to the company, it also shares tips via emails, bill inserts and social media.

What practical water-saving tips does Pennsylvania American Water recommend during the drought watch?

Pennsylvania American Water recommends full loads for dishwashers and washers, fixing leaks, installing water-saving fixtures, and watering lawns only when needed. It also suggests sweeping instead of hosing surfaces and using rain barrels to capture and reuse rainfall.