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California American Water President Addresses New ASCE Report Card, Urges More Investment in Critical Water Infrastructure

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The American Society of Civil Engineers' 2025 Report Card has given concerning grades of C- for water and D+ for wastewater infrastructure in America, showing no improvement over the past four years. Kevin Tilden, President of California American Water, emphasized the critical need for infrastructure investment, particularly in California where climate change and aging systems pose significant challenges.

The state faces increasing risks from droughts, earthquakes, and wildfires, making capital investments essential for maintaining safe and reliable water delivery systems. To address these challenges, California American Water plans to invest over $1.5 billion in its systems across the state over the next decade to ensure safe, clean, reliable, and affordable water and wastewater service.

Il Rapporto 2025 della American Society of Civil Engineers ha assegnato voti preoccupanti di C- per le risorse idriche e D+ per le infrastrutture di acque reflue in America, senza mostrare miglioramenti negli ultimi quattro anni. Kevin Tilden, Presidente di California American Water, ha sottolineato la necessità critica di investimenti nelle infrastrutture, in particolare in California, dove il cambiamento climatico e i sistemi obsoleti pongono sfide significative.

Lo stato affronta rischi crescenti da siccità, terremoti e incendi boschivi, rendendo essenziali gli investimenti in capitale per mantenere sistemi di distribuzione dell'acqua sicuri e affidabili. Per affrontare queste sfide, California American Water prevede di investire oltre 1,5 miliardi di dollari nei propri sistemi in tutto lo stato nel prossimo decennio per garantire un servizio idrico e di acque reflue sicuro, pulito, affidabile e accessibile.

El Informe 2025 de la American Society of Civil Engineers ha otorgado calificaciones preocupantes de C- para el agua y D+ para las aguas residuales en América, sin mostrar mejoras en los últimos cuatro años. Kevin Tilden, presidente de California American Water, enfatizó la necesidad crítica de inversión en infraestructuras, especialmente en California, donde el cambio climático y los sistemas envejecidos presentan desafíos significativos.

El estado enfrenta riesgos crecientes por sequías, terremotos e incendios forestales, lo que hace que las inversiones de capital sean esenciales para mantener sistemas de entrega de agua seguros y confiables. Para abordar estos desafíos, California American Water planea invertir más de 1.5 mil millones de dólares en sus sistemas en todo el estado durante la próxima década para garantizar un servicio de agua y aguas residuales seguro, limpio, confiable y asequible.

미국 토목공학회(American Society of Civil Engineers)의 2025년 보고서는 미국의 수자원에 C-, 하수도에 D+라는 우려스러운 점수를 부여하며, 지난 4년간 개선이 없음을 보여주고 있습니다. 캘리포니아 아메리칸 워터(California American Water)의 회장인 케빈 틸든(Kevin Tilden)은 기후 변화와 노후화된 시스템이 상당한 도전을 제기하는 캘리포니아에서 인프라 투자에 대한 절실한 필요성을 강조했습니다.

주에서는 가뭄, 지진, 산불로 인한 위험이 증가하고 있으며, 안전하고 신뢰할 수 있는 물 공급 시스템을 유지하기 위해 자본 투자가 필수적입니다. 이러한 도전에 대응하기 위해 캘리포니아 아메리칸 워터는 향후 10년 동안 주 전역의 시스템에 15억 달러 이상을 투자할 계획입니다하여 안전하고 깨끗하며 신뢰할 수 있고 저렴한 물 및 하수 서비스 보장을 목표로 하고 있습니다.

Le rapport 2025 de la American Society of Civil Engineers a attribué des notes préoccupantes de C- pour l'eau et D+ pour les eaux usées aux infrastructures américaines, sans montrer d'amélioration au cours des quatre dernières années. Kevin Tilden, président de California American Water, a souligné le besoin critique d'investissements dans les infrastructures, en particulier en Californie, où le changement climatique et les systèmes vieillissants posent des défis majeurs.

L'État fait face à des risques croissants dus aux sécheresses, aux tremblements de terre et aux incendies de forêt, rendant les investissements en capital essentiels pour maintenir des systèmes de distribution d'eau sûrs et fiables. Pour relever ces défis, California American Water prévoit d'investir plus de 1,5 milliard de dollars dans ses systèmes à travers l'État au cours de la prochaine décennie afin d'assurer un service d'eau et d'eaux usées sûr, propre, fiable et abordable.

Der Bericht 2025 der American Society of Civil Engineers hat besorgniserregende Noten von C- für Wasser und D+ für Abwasser in Amerika vergeben, ohne in den letzten vier Jahren Verbesserungen zu zeigen. Kevin Tilden, Präsident von California American Water, betonte die dringende Notwendigkeit von Infrastrukturinvestitionen, insbesondere in Kalifornien, wo der Klimawandel und alternde Systeme erhebliche Herausforderungen darstellen.

Der Bundesstaat sieht sich zunehmenden Risiken durch Dürre, Erdbeben und Waldbrände gegenüber, was Kapitalinvestitionen unerlässlich macht, um sichere und zuverlässige Wasserversorgungssysteme aufrechtzuerhalten. Um diese Herausforderungen zu bewältigen, plant California American Water, in den nächsten zehn Jahren über 1,5 Milliarden Dollar in seine Systeme im gesamten Bundesstaat zu investieren, um einen sicheren, sauberen, zuverlässigen und erschwinglichen Wasser- und Abwasserdienst zu gewährleisten.

Positive
  • Commitment to invest $1.5 billion in infrastructure over next 10 years
Negative
  • No improvement in water infrastructure grades over last 4 years (C- water, D+ wastewater)
  • Aging infrastructure poses increasing risks to operations
  • Facing significant challenges from climate change and natural disasters

Insights

California American Water's $1.5 billion planned investment over the next decade represents a substantial infrastructure commitment addressing critical needs in California's water systems. The backdrop of the ASCE's unchanged grades (C- for water, D+ for wastewater) underscores the persistent nationwide infrastructure deficit that creates both challenges and opportunities for water utilities.

This capital commitment targets several California-specific vulnerabilities: aging distribution networks, climate change impacts, drought resilience, earthquake and wildfire vulnerability, and treatment capabilities for emerging contaminants. The scale and timeframe indicate a comprehensive approach to infrastructure renewal rather than reactive maintenance.

For AWK, this investment program provides multiple benefits. First, it addresses legitimate infrastructure needs identified by independent engineering experts. Second, it potentially reduces long-term operational costs through more efficient systems and reduced water loss. Third, it enhances system resilience against climate-related disruptions that are particularly acute in California.

The investment's focus on public health, economic stability, and disaster resilience positions it favorably for regulatory treatment. While the $1.5 billion spread across 10+ years represents a measured approach to mitigate rate impacts, investors should monitor the regulatory approval process that ultimately determines the return on these investments.

The ASCE's unchanged critical assessment of America's water infrastructure creates a supportive regulatory environment for California American Water's announced $1.5 billion investment plan. Regulatory authorities typically recognize the necessity of infrastructure investment when supported by objective third-party assessments like the ASCE Report Card.

By proactively addressing infrastructure needs, California American Water positions itself advantageously within California's regulatory framework. The announcement strategically frames investments in terms that resonate with regulatory priorities: public health protection, economic stability support, and enhanced resilience against California's prevalent natural disasters.

The 10-year investment horizon suggests a measured approach that balances infrastructure renewal with rate impact considerations - an important factor in California where water affordability receives significant regulatory attention. This gradual deployment should facilitate more predictable regulatory treatment compared to accelerated programs that might trigger affordability concerns.

The emphasis on addressing emerging contaminants also aligns with evolving water quality regulations, potentially reducing compliance risks. However, the regulatory process will still scrutinize these investments to ensure they deliver tangible public benefits, with the ultimate recovery through rates depending on demonstration of prudent capital deployment that serves the public interest.

SAN DIEGO--(BUSINESS WIRE)-- Kevin Tilden, President of California American Water, issued the following statement in response to the grades of C- for water and D+ for wastewater in the American Society of Civil Engineers' 2025 Report Card for America’s Infrastructure.

“The ASCE 2025 Report Card reveals no change or improvement over the last four years – America's drinking water and wastewater infrastructure is stagnant,” Tilden said. “The Report Card highlights the urgent need for significant investment in water and wastewater infrastructure, not just across the nation, but also here in California. Our state continues to face challenges when it comes to investing in critical infrastructure, particularly in these sectors.”

In California, where climate change intensifies drought conditions and aging infrastructure poses increasing risks, capital investments in water utility systems are not merely advisable, but essential. These investments ensure the delivery of safe, reliable water to communities, safeguarding public health and supporting economic stability.

Furthermore, these investments increase the resilience of water systems to withstand natural disasters like earthquakes and wildfires, which are prevalent in California.

Investments in water treatment facilities are necessary to address emerging contaminants and ensure that the water provided to consumers meets the highest quality standards.

“Consistent and well-planned capital investments are vital to ensure the long-term health, safety, and economic wellbeing of California's communities,” Tilden said.

Over the next ten years, California American Water plans to invest more than $1.5 billion in its systems across the state to help ensure safe, clean, reliable, and affordable water and wastewater service.

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 (NYSE: AWK), provides high-quality and reliable water and wastewater services to approximately 700,000 people.

Media Contact

Evan Jacobs

External Affairs

707.495.6135

evan.jacobs@amwater.com

Source: California American Water

FAQ

What grades did ASCE's 2025 Report Card give to America's water infrastructure?

The ASCE 2025 Report Card gave a C- grade for water infrastructure and D+ for wastewater infrastructure in America.

How much is California American Water (AWK) planning to invest in infrastructure?

California American Water plans to invest more than $1.5 billion in its systems across California over the next ten years.

What major challenges does California's water infrastructure face according to AWK?

California faces challenges from climate change, drought conditions, aging infrastructure, earthquakes, and wildfires that affect water systems.

Has there been any improvement in America's water infrastructure since the last ASCE report?

No, according to the ASCE 2025 Report Card, America's drinking water and wastewater infrastructure has shown no improvement over the last four years.
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