Thank you for everything you do for Iowa American Water, and I look forward to continuing our work together
in the months ahead.
The following communication regarding the merger between American Water and Essential was sent by Justin Ladner, President of
Pennsylvania American Water, to employees of Pennsylvania American Water via e-mail on October 8, 2026.
Future leadership changes in
Pennsylvania
From Justin Ladner, President, Pennsylvania American Water
Following the announcement from Cheryl and Mike regarding future leadership plans for Pennsylvania American Water, I wanted to reach out directly to our
Pennsylvania employees.
As they shared in their note, Brad Nielsen will assume the role as President of Pennsylvania American Water following our
merger with Essential Utilities. At that time, I will transition to Senior Vice President of State Operations, with oversight of operations in Pennsylvania, Illinois, and Missouri. I know Brad will bring valuable experience and leadership to
Pennsylvania, when the time comes, but I want to make sure our employees know that nothing changes today.
Until the close of this merger, our current
reporting relationships, team structures, responsibilities, and day-to-day operations remain unchanged. Just as important, I know the future success of our organization will be built on the expertise, dedication, and commitment of the existing
Pennsylvania leadership team and their respective organizations.
The weCARE survey results shared today show that Pennsylvania American Water has a
strong team, a strong culture, and a strong track record of serving our customers and communities.
Those strengths come from you. As we continue planning
for the future, our focus remains on supporting employees, serving customers safely and reliably, and maintaining the operational excellence that has defined our success.
Planning for integration has brought many questions, and this news will likely spur many more. We are committed to sharing information as decisions are made
and providing opportunities for employees to hear directly from current and future leadership. Later this fall, you can expect to hear more details on what the full, future organization structure will look like in Pennsylvania across our combined
operations.
In the meantime, please remain focused on what we do best: taking care of one another, serving our customers, and delivering safe, clean,
reliable, and affordable water and wastewater service every day.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements included in this communication are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,
Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words with prospective meanings such as
“intend,” “plan,” “estimate,” “believe,” “anticipate,” “expect,” “predict,” “project,” “propose,” “assume,”
“forecast,” “outlook,” “future,” “likely,” “pending,” “goal,” “objective,” “potential,” “continue,” “seek to,” “may,”
“can,” “will,” “should” and “could,” or the negative of such terms or other variations or similar expressions. Forward-looking statements may relate to, among other things: statements about the
benefits of the proposed merger, including future financial and operating results; the parties’ respective plans, objectives, expectations and intentions; the expected timing and likelihood of completion of the merger and related transactions;
the results of any strategic review; expected synergies of the proposed merger; the timing and result of various regulatory proceedings related to the proposed merger, and other general rate cases, filings for infrastructure surcharges and other
governmental agency authorizations and proceedings, and filings to address regulatory lag; the combined company’s ability to execute its current and long-term business, operational, capital expenditures and growth plans and strategies; the
amount, allocation and timing of projected capital expenditures and related funding requirements; the future impacts of increased or increasing transaction and financing costs associated with the proposed merger or otherwise, as well as inflation
and interest rates; each party’s ability to finance current and projected operations, capital expenditure needs and growth initiatives by accessing the debt and equity capital markets and sources of short-term liquidity; impacts of the
proposed merger on the future settlement or settlements of a party’s forward sale agreements, including potential adjustments to the forward sale price or other economic terms thereunder, and the amount of and the intended use of net proceeds
from any such future settlement or settlements; the outcome and impact on other governmental and regulatory investigations; the filing of class action lawsuits and other litigation and legal proceedings related to the proposed merger; the ability to
complete, and the timing and efficacy of, the design, development, implementation and improvement of technology and other strategic initiatives; each party’s ability to comply with new and changing environmental regulations; regulatory,
legislative, tax policy or legal developments; and impacts that future significant tax legislation may have on each such party and on its business, results of operations, cash flows and liquidity.
These forward-looking statements are predictions based on currently available information, the parties’ current respective expectations and
assumptions regarding future events that American Water Works Company, Inc. (“American Water”) and Essential Utilities, Inc. (“Essential Utilities”) believe to be reasonable. They are not, however, guarantees or
assurances of any outcomes, performance or achievements, and readers are cautioned not to place undue reliance
