Enhancements Being Made At Illinois American Water’s Plant In Pontiac

Rhea-AI Summary

Illinois American Water is investing $3.4 million in infrastructure improvements at its Pontiac District water treatment plant. The project includes two main components:

1. High Service Pump Replacement: Four existing pumps will be replaced with three new, more efficient pumps. This $1.7 million project, started in 2024, is expected to be completed by early 2025.

2. Backwash Lagoon Improvements: An additional backwash storage lagoon will be constructed to enhance filter operations and maintenance efficiency. This $1.7 million project is in the design phase, with construction set to begin in late 2024 and completion anticipated in Q1 2025.

These upgrades aim to improve water quality, operational efficiency, and reliability of the Pontiac water supply system. Illinois American Water emphasizes its commitment to delivering high-quality drinking water that exceeds local requirements.

Positive

• Investment of $3.4 million in water treatment infrastructure improvements
• New high-service pumps expected to increase operational efficiency and reduce maintenance needs
• Additional backwash storage lagoon to enhance filter operations and maintenance efficiency
• Company's commitment to exceeding local water quality requirements

Negative

• None.

Environmental Engineer

The $3.4 million investment in Pontiac's water treatment infrastructure is a significant upgrade that addresses both efficiency and environmental concerns. The new high-service pumps will likely reduce energy consumption and maintenance costs, potentially leading to long-term operational savings. The additional backwash storage lagoon is particularly noteworthy from an environmental perspective. It will improve filter operations and facilitate more efficient removal of backwash material, which could enhance water quality and reduce waste. These improvements align with industry best practices for sustainable water management. However, it's important to note that while these upgrades are positive, they are relatively standard for a water utility and may not significantly impact the company's overall financial performance in the short term.

Financial Analyst

Illinois American Water's $3.4 million capital investment in Pontiac demonstrates a commitment to infrastructure improvement, which is important in the regulated water utility sector. This type of investment typically allows utilities to increase their rate base, potentially leading to higher allowed returns in future rate cases. The focus on efficiency, particularly with the new pumps, could result in reduced operating expenses over time. However, the impact on the company's overall financials may be given the relatively small scale of this project within Illinois American Water's broader operations. Investors should view this as part of the company's ongoing capital expenditure program rather than a game-changing development. The long-term nature of these improvements aligns with the typically stable, dividend-oriented investment profile of water utilities.

New backwash storage lagoon and new pumps highlight $3.4 million investment in delivering clean, safe and reliable drinking water to the Pontiac District.

PONTIAC, Ill.--(BUSINESS WIRE)-- Illinois American Water continues to invest in the infrastructure of its water treatment plant in the Pontiac District. Two important projects are underway:

High Service Pump Replacement
This project replaces four existing high-service pumps that have reached the end of their useful life with three new pumps that are appropriately sized to efficiently serve the Pontiac water supply system. The new pumps will allow the water treatment plant to provide a wide variety of flow rates to match the needs of the community.

According to Corey Robinson, Illinois American Water Superintendent of Pontiac Operations, “The new pumps will operate more efficiently than the existing pumps and reduce the amount of maintenance needed to operate the pumps.”

Union employees of G.A. Rich and Sons of Deer Creek are performing the work.

Construction started in 2024 and is expected to be complete by the end of 2024 or early 2025. The approximate project cost is $1.7 million.

Backwash Lagoon Improvements
This project will construct an additional backwash storage lagoon to allow for improved operations of the water filters and allow for more efficient removal of material from the lagoons during maintenance operations. The project is currently in the design phase.

Construction is expected to begin in late 2024 with completion anticipated for the first quarter of 2025. Project cost is an estimated $1.7 million.

Brent O’Neill, Illinois American Water Director of Engineering said, “There is nothing more important than the quality of the water we deliver to our customers’ taps and the communities we serve. This is why we continuously work to upgrade technology and treatment processes to deliver clean, safe and reliable drinking water.”

“2024 marks the 25^th year that Illinois American Water has owned, operated and maintained the water system in Pontiac,” said O’Neill. “We continue to invest strategically in the Pontiac water system, with a focus on quality water and service.”

According to O’Neill, Illinois American Water not only meets EPA drinking water guidelines, but the company “provides water quality that exceeds local requirements.” He added, “Our customers trust us with a critical service. We take our responsibility seriously and are proud to deliver high-quality drinking water.”

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 6,500 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 Illinois American Water
Illinois American Water, a subsidiary of American Water, is the largest regulated water utility in the state, providing high-quality and reliable water and wastewater services to approximately 1.4 million people. American Water also operates a quality control and research laboratory in Belleville.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240919788939/en/

NEWS MEDIA CONTACT

Anna Kubas, Senior Manager, External Communications

Illinois American Water

Anna.Kubas@amwater.com

Source: Illinois American Water

FAQ

What is the total investment Illinois American Water is making in its Pontiac District plant?

Illinois American Water is investing $3.4 million in infrastructure improvements at its Pontiac District water treatment plant.

When is the High Service Pump Replacement project expected to be completed for AWK?

The High Service Pump Replacement project for AWK is expected to be completed by the end of 2024 or early 2025.

What is the estimated cost of the Backwash Lagoon Improvements project for AWK in Pontiac?

The estimated cost of the Backwash Lagoon Improvements project for AWK in Pontiac is $1.7 million.

When did Illinois American Water (AWK) begin operating the water system in Pontiac?

2024 marks the 25th year that Illinois American Water (AWK) has owned, operated, and maintained the water system in Pontiac, indicating they began operations in 1999.