Missouri American Water Investments Focused on Improving System Reliability and Resiliency

Rhea-AI Summary

Missouri American Water plans to invest over $500 million in its water and wastewater systems statewide in 2024. The investments aim to enhance system reliability and resiliency by upgrading aging infrastructure like pipes, pumps, and treatment plants. This proactive approach ensures safe and reliable service for customers while meeting state and federal regulations.

Insights

Infrastructure Investment Analyst

The announcement of Missouri American Water's plan to invest over $500 million into its water and wastewater systems represents a significant capital expenditure with the potential to enhance the company's long-term operational efficiency and service reliability. This level of investment in infrastructure is a proactive measure to address the aging systems, which can lead to reduced maintenance costs and improved regulatory compliance over time.

From an infrastructure investment perspective, the replacement of over 90 miles of pipe and upgrades to treatment plants and pump systems can lead to a reduction in water loss due to leaks and breaks and improve the overall water quality. These improvements can potentially increase customer satisfaction and reduce the risk of costly emergency repairs or regulatory penalties associated with system failures. Furthermore, upsizing water pipes not only supports community fire protection but may also allow for future community growth without the immediate need for additional infrastructure expansion.

Investors and stakeholders should be aware of the financing methods for these projects, as they can impact the company's debt profile and future cash flows. Moreover, the efficiency of the capital deployment and the timely completion of projects are critical factors that can influence the expected benefits from such a sizable investment.

Environmental Economist

Investing in water and wastewater infrastructure is not only a business decision but also an environmental one. Replacing and upgrading aging infrastructure contributes to the sustainability of water resources by preventing water loss and ensuring the treatment of wastewater to meet or exceed environmental standards. These actions can mitigate the environmental impact of water services and help in adapting to the challenges posed by climate change, such as increased frequency of extreme weather events that can strain water systems.

Moreover, the construction of new wastewater lift stations and the replacement of chemical feed systems with more advanced technology can lead to improved energy efficiency and reduced greenhouse gas emissions. These projects align with broader environmental goals and can enhance the company's reputation as a responsible steward of natural resources.

An environmental economist would also consider the long-term cost savings associated with these investments, as they can lead to lower operational costs through increased energy efficiency and reduced water treatment costs. Additionally, there may be opportunities for the company to leverage federal or state grants and incentives aimed at promoting infrastructure sustainability and resilience.

Regulatory Compliance Analyst

The scale of Missouri American Water's investment suggests a strategic approach to maintaining compliance with state and federal regulations. Aging water and wastewater infrastructure can lead to non-compliance with environmental standards, which can result in significant fines and reputational damage. By proactively upgrading and replacing essential components, the company is likely to stay ahead of regulatory requirements and potentially avoid the costs associated with violations.

It is important for the company to navigate the complex regulatory landscape effectively, ensuring that all projects not only meet current standards but are also designed with the foresight to accommodate future regulatory changes. This can involve engaging with regulatory bodies early in the planning stages and throughout the project lifecycle to ensure alignment with environmental and public health guidelines.

A regulatory compliance analyst would also assess the impact of these investments on customer rates, as infrastructure improvements are often funded through rate increases. The communication strategy around these rate adjustments is crucial, as it can influence public perception and acceptance of the necessary investments in infrastructure.

Company will invest more than $500 million statewide in 2024

ST. LOUIS--(BUSINESS WIRE)-- Missouri American Water is investing more than $500 million in its water and wastewater systems statewide in 2024. The investments are focused on improving system reliability and resiliency by replacing aging infrastructure like pipes, pumps, and storage tanks and upgrading treatment plants.

“Missouri American Water is investing to maintain and enhance safe and reliable service as many essential components of our water and wastewater systems are reaching the end of their useful life,” said Rich Svindland, president of Missouri American Water. “Proactive investments are more efficient and cost effective for our customers, and we carefully plan these projects to meet the needs of the communities we serve as well as state and federal regulations.”

Statewide, Missouri American Water is replacing over 90 miles of pipe this year. Replacing aging pipes improves system reliability, and in cases where water pipe is upsized, also enhances community fire protection.

Customers can view pipe replacement projects that are planned, in construction and recently completed on Missouri American Water’s website missouriamwater.com by clicking on “Pipe Replacement Map.”

Additional projects throughout the state include:

• St. Louis County - Replacement of the intake pumps and chemical feed systems at the south water treatment plant
• Jefferson City - Construction of a new filter building at the water treatment plant
• St. Joseph - Upgrades to the Faraon and Randolph booster stations
• Joplin – Construction of a new carbon feed system and replacement of the chlorine feed system at the treatment plant
• Warrensburg - Replacement of the ozone system at the water treatment plant
• Eureka, Maplewood (near Sedalia) and Smithton – Construction of new wastewater lift stations

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 Missouri American Water
Missouri American Water, a subsidiary of American Water, is the largest investor-owned water utility in the state, providing high-quality and reliable water and wastewater services to approximately 1.6 million people. For more, visit missouriamwater.com and follow Missouri American Water on X, Facebook, Instagram, YouTube and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240311656301/en/

Media:

Christie Barnhart

Senior Manager, External Communications

Cell: 417-529-9781

Christie.barnhart@amwater.com

Source: Missouri American Water

FAQ

What is Missouri American Water planning to invest in 2024?

Missouri American Water plans to invest over $500 million in its water and wastewater systems statewide in 2024.

What is the focus of the investments by Missouri American Water?

The investments are focused on improving system reliability and resiliency by replacing aging infrastructure like pipes, pumps, and storage tanks and upgrading treatment plants.

How does Missouri American Water ensure safe and reliable service for customers?

Missouri American Water ensures safe and reliable service for customers by proactively investing in system upgrades and replacements to meet state and federal regulations.

Where can customers view Missouri American Water's pipe replacement projects?

Customers can view pipe replacement projects that are planned, in construction and recently completed on Missouri American Water’s website missouriamwater.com by clicking on “Pipe Replacement Map”.

What are some of the additional projects Missouri American Water is undertaking?

Additional projects include the replacement of intake pumps and chemical feed systems, construction of new filter buildings, upgrades to booster stations, and construction of new wastewater lift stations in various locations statewide.