Pennsylvania American Water Receives $25+ Million in PENNVEST Funding for Infrastructure Improvement Projects in Lackawanna and Lawrence Counties

Pennsylvania American Water (NYSE:AWK) was awarded $25,872,000 from PENNVEST to fund two infrastructure projects in Lackawanna and Lawrence counties announced April 16, 2026.

Rhea-AI Summary

Pennsylvania American Water (NYSE:AWK) was awarded $25,872,000 from PENNVEST to fund two infrastructure projects in Lackawanna and Lawrence counties announced April 16, 2026. Funds include a $16,922,000 loan for Griffin Dam rehabilitation and a $3,769,099 grant plus $5,180,901 loan to replace ~603 lead-impacted service lines in New Castle. Loan terms: 1% for five years then 1.743% for the 20-year dam loan; 1.00% fixed for the 29-year lead-line loan. Projects aim to improve dam safety and water quality for customers.

Positive

• $25.872M total PENNVEST funding awarded
• $16.922M dedicated to Griffin Dam safety upgrades
• ~603 lead-impacted service lines slated for replacement
• Low interest loans (1% initial / 1.00% long-term)
• Lead removal funded by grant plus loan totaling ~$8.95M

Negative

• 20-year loan for dam includes rate step-up after five years
• 29-year loan term for lead-line program extends repayment horizon

Argus Apr 16 session

+0.30% close to close 1.2x rel. volume Open Argus

Details

News Market Reaction – AWK

On Apr 16, the day this news came out, AWK closed 0.30% above the previous close.

Data tracked by StockTitan Argus for the Apr 16 session.

Key Figures

Total PENNVEST funding: $25,872,000 Griffin Dam loan: $16,922,000 Griffin Dam interest (initial): 1% +5 more

Total PENNVEST funding

$25,872,000

Grants and low-interest loans for two Pennsylvania projects

Griffin Dam loan

$16,922,000

PENNVEST loan for Griffin Dam rehabilitation in Lackawanna County

Griffin Dam interest (initial)

1%

Interest rate for first five years of 20-year Griffin Dam loan

Griffin Dam interest (remaining)

1.743%

Interest rate for remaining term of 20-year Griffin Dam loan

Lead line grant

$3,769,099

PENNVEST grant for lead service line replacement in New Castle

Lead line loan

$5,180,901

PENNVEST loan for New Castle lead line replacement

Service lines replaced

603 lines

Identified lead and galvanized lead-impacted lines in New Castle

Lead project interest term

1.00% for 29 years

Interest rate and term for New Castle PENNVEST loan

Historical Context

5 past events · Latest: Apr 15

5 events

1. Apr 15

   Water quality report

   24h Move

   -2.3%

   Release of 2025 water quality reports showing standards being met or surpassed.

2. Apr 14

   Policy engagement

   24h Move

   -0.8%

   Participation in Water Week 2026 policy fly-in to discuss infrastructure resilience.

3. Apr 13

   Investment outlook

   24h Move

   -2.0%

   Highlighting national water investment gap and up to $48B planned company investment.

4. Apr 09

   Scholarship award

   24h Move

   +2.1%

   Awarding a $5,000 AWWA 2026 scholarship supporting advanced water research.

5. Apr 09

   Infrastructure project

   24h Move

   +2.1%

   Announcing a $1.6M multi-phase main replacement project in South Charleston.

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

Key Terms

probable maximum flood

1 terms

probable maximum flood technical

"help ensure stability during the probable maximum flood and modifications to the spillway"

Probable maximum flood (PMF) is an engineering estimate of the largest flood that could conceivably occur at a location, based on the most severe combination of weather and watershed conditions. Investors care because PMF defines the upper limit of flood risk for infrastructure, property values, insurance costs and regulatory compliance—like designing a building to withstand the biggest imaginable wave so stakeholders understand worst-case exposure and capital needs.

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

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Low-interest funding helps keep customer costs down while advancing dam safety and lead line removal projects

MECHANICSBURG, Pa., April 16, 2026 /PRNewswire/ -- The Shapiro administration yesterday announced that Pennsylvania American Water was awarded grants and low-interest loans from the Pennsylvania Infrastructure Investment Authority (PENNVEST) totaling $25,872,000. The funding will support two infrastructure improvement projects in Lackawanna and Lawrence counties.

"At Pennsylvania American Water, we strive to provide our customers with high-quality, reliable water and wastewater services while also meeting environmental standards and state and federal regulations. We're thankful to PENNVEST for approving our funding requests and supporting us in that mission," said Pennsylvania American Water Vice President of Engineering Tony Nokovich. "These projects will have a positive impact on the service provided for our customers by enabling us to continue our efforts to improve water and wastewater infrastructure across the state."

In Lackawanna County, the company's Griffin Dam rehabilitation project received a PENNVEST loan of $16,922,000, which will be used to make upgrades that bring the dam into compliance with current dam safety practices. The project includes efforts to help ensure stability during the probable maximum flood and modifications to the spillway exit channel, outlet works, and seepage collection system. The interest terms for the loan are 1% for the first five years and 1.743% for the remainder of the 20-year loan period.

A PENNVEST grant of $3,769,099 and loan of $5,180,901 will fund the replacement of approximately 603 identified lead and galvanized lead-impacted water service lines in New Castle, Lawrence County. The removal of all leaded components will provide direct water quality improvements to customers and is consistent with regulatory and Pennsylvania American Water initiatives to eliminate lead-containing lines from the public water supply system. Learn more at pennsylvaniaamwater.com/leadfacts. The interest terms for the loan are 1.00% for the full 29-year loan period.

"Every Pennsylvanian has a constitutional right to pure water, and my Administration is continuing that work by investing in projects that protect public health, modernize drinking water infrastructure, and support local economies," said Governor Josh Shapiro in the Commonwealth's official announcement. "We're investing in dozens of projects all across the Commonwealth to ensure more Pennsylvanians have clean, reliable drinking water when they turn on the tap."

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.

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SOURCE American Water

FAQ

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

How much PENNVEST funding did Pennsylvania American Water (AWK) receive on April 16, 2026?

Pennsylvania American Water received $25,872,000 in combined grants and loans. According to the company, this funding covers a $16,922,000 dam loan plus a $3,769,099 grant and $5,180,901 loan for lead-line replacement.

What is the purpose of the $16,922,000 PENNVEST loan for AWK's Griffin Dam project?

The loan funds upgrades to bring Griffin Dam into current safety compliance. According to the company, work includes spillway exit channel modifications, outlet works improvements, and seepage collection system upgrades to withstand probable maximum flood.

How many lead-impacted service lines will AWK replace in New Castle, Lawrence County, and what funds cover it?

Approximately 603 identified lead and galvanized lead-impacted service lines will be replaced. According to the company, the work is funded by a $3,769,099 grant plus a $5,180,901 low-interest loan.

What are the interest and repayment terms for the PENNVEST loans awarded to AWK?

The Griffin Dam loan carries 1% interest for five years and 1.743% thereafter over 20 years; the lead-line loan is 1.00% for 29 years. According to the company, these are low-interest, long-term financing terms.

Will the PENNVEST-funded projects affect water quality and safety for AWK customers?

Yes. According to the company, replacing lead-containing service lines will directly improve water quality, and Griffin Dam rehabilitation will enhance dam safety and flood resilience for local customers.