California American Water Invests $162 Million in System Upgrades Statewide in 2024

Rhea-AI Summary

California American Water has announced a significant $162 million investment in water and wastewater system upgrades across its service areas for 2024. The comprehensive infrastructure improvement plan includes:

• $47 million for water mains to enhance system reliability
• $46 million for water treatment and production system improvements
• $7.4 million for service line improvements
• $6 million for tanks and storage capacity
• $2.7 million for fire hydrant upgrades

According to President Kevin Tilden, these investments aim to ensure community health, safety, and economic vitality while maintaining service reliability, water quality, and fire protection capabilities for future generations.

Positive

• Major $162 million infrastructure investment demonstrates strong capital allocation for long-term growth
• Significant $47 million investment in water mains shows commitment to system reliability
• Substantial $46 million allocation to water treatment improvements enhances service quality
• Strategic investments in multiple infrastructure categories indicate comprehensive system upgrade approach

Negative

• Large capital expenditure may impact short-term financial metrics
• Significant infrastructure spending could lead to rate increase requests to recover investments

Proactive capital investments are crucial to maintaining service reliability, water quality and flow for fire protection

SAN DIEGO--(BUSINESS WIRE)-- California American Water announced today its 2024 full year investment total for system improvements, totaling more than $160 million in water and wastewater system upgrades throughout its service areas.

“Investing in our water infrastructure isn't just about pipes and pumps,” said Kevin Tilden, President, California American Water. “It's about investing in the health, safety, and economic vitality of our community – ensuring that generations to come have access to this essential resource.”

California American Water’s annual investments include upgrades and improvements made to the company’s water and wastewater infrastructure, including treatment plants, tanks, pump stations, pipes, fire hydrants and metering equipment.

System improvement highlights for 2024 include:

• Water Mains: $47 million to improve system reliability.
• Fire Hydrants: $2.7million investment to improve safety and firefighting needs.
• Service Lines: $7.4 million to improve water accessibility.
• Water Treatment and Production System Improvements: $46 million to enhance water safety and reliability.
• Tanks/Storage: $6 million to ensure enough supply for future needs.

California American Water is continually investing in the local communities where it operates, to help ensure that water and wastewater infrastructure that is reaching the end of its useful life is replaced to improve service for residents.

To learn more about these investments and other projects underway across California, visit https://www.amwater.com/caaw/.

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 California American Water

California American Water, a subsidiary of American Water, provides high-quality and reliable water and wastewater services to approximately 700,000 people. For more information, visit www.californiaamwater.com and follow California American Water on LinkedIn, Facebook, X, and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250321772764/en/

Media

Evan Jacobs

External Affairs

Phone: 707-495-6135

Email: evan.jacobs@amwater.com

Source: California American Water

FAQ

How much is California American Water investing in infrastructure upgrades for 2024?

California American Water is investing $162 million in water and wastewater system upgrades across its service areas for 2024.

What is the largest infrastructure investment category in California American Water's 2024 plan?

Water mains improvements represent the largest investment at $47 million, focused on enhancing system reliability.

How much is California American Water spending on water treatment improvements in 2024?

The company is investing $46 million in water treatment and production system improvements to enhance water safety and reliability.

What is California American Water's 2024 investment in fire safety infrastructure?

The company is investing $2.7 million specifically for fire hydrant upgrades to improve safety and firefighting capabilities.