New Illinois American Water Treatment Plant in Cairo District Provides Groundwater to Customers

Rhea-AI Summary

Illinois American Water has completed a $10.9 million groundwater treatment plant in the Cairo District, replacing the original surface water plant that used the Ohio River. The project, which began in April 2023 and finished in August 2024, was necessary to meet U.S. EPA regulations and provide a more reliable and efficient water supply. The new plant, operational since August 26, includes pressure filters, chemical rooms, a laboratory, and associated equipment. The switch to groundwater was approved by regulatory bodies and deemed beneficial due to Cairo's plentiful aquifer system. The project, executed by union contractors, is expected to ensure continued high-quality water service for the Cairo District.

Positive

• Completion of a $10.9 million groundwater treatment plant investment
• Improved reliability and efficiency of water supply
• Compliance with U.S. EPA regulations on surface water plants
• Utilization of a plentiful, healthy aquifer system

Negative

• None.

Insights

Financial Analyst

The $10.9 million investment in a new groundwater treatment plant for the Cairo District represents a significant capital expenditure for Illinois American Water. This project demonstrates the company's commitment to infrastructure improvement and regulatory compliance. The switch from surface water to groundwater is likely to result in long-term cost savings and operational efficiencies, potentially improving the company's bottom line. However, the immediate financial impact may be neutral due to the capital outlay. The project's completion on schedule (16 months) suggests effective project management, which is positive for investor confidence. While this single project may not significantly move the needle for a large utility company, it reflects a broader strategy of modernizing infrastructure and ensuring regulatory compliance, which is important for long-term stability and growth in the utility sector.

Environmental Engineer

The transition from surface water to groundwater in Cairo is a strategic environmental decision. Groundwater typically requires less treatment than surface water, potentially reducing the use of chemicals and energy in the purification process. This shift aligns with U.S. EPA regulations, indicating proactive compliance and risk mitigation. The mention of a "plentiful, healthy aquifer system" suggests sustainable water management, but long-term monitoring will be important to ensure aquifer health. The new plant's design, including pressure filters and a laboratory, indicates a focus on water quality control. This upgrade not only addresses current regulatory requirements but also positions the utility to handle future environmental challenges, demonstrating foresight in environmental stewardship and operational resilience.

Infrastructure Development Specialist

The completion of this treatment plant is a positive indicator for infrastructure development in the Cairo District. The project's timely execution (100% completion in 16 months) and the use of union contractors suggest efficient project management and local economic benefits. The new facility's features, including a modern laboratory and operator room, represent a significant upgrade in technological capabilities. This investment addresses the challenges of an aging water system and aligns with broader trends in U.S. water infrastructure modernization. For investors, such projects demonstrate the company's ability to execute complex infrastructure upgrades, which is important in the utility sector. The shift to groundwater also enhances system resilience against issues like flooding, which have previously disrupted operations, potentially leading to improved service reliability and customer satisfaction.

$10.9 million project began in April 2023 and was completed in August 2024.

CAIRO, Ill.--(BUSINESS WIRE)-- Construction of a new $10.9 million groundwater treatment plant was completed this month in the Cairo District. The now operational groundwater plant has been built on the site of the original water treatment plant which utilized the Ohio River as its source of water supply.

According to Illinois American Water officials, the permanent switch to a groundwater supply was necessary to meet U.S. EPA regulations on surface water plants and it provides local customers with a more reliable, efficient source of water supply. The switch to a groundwater source was approved by the U.S. EPA, Illinois EPA and Illinois Commerce Commission.

“Cairo has a plentiful, healthy aquifer system,” said Brent O’Neill, Director of Engineering, Illinois American Water. “After considerable study, and with consideration of the aging of the original water plant, we determined a switch to a groundwater source was in the best interests of our customers in the Cairo District.” The new groundwater plant went online on August 26. Construction started in April 2023.

The groundwater water treatment plant project included the installation of a new building that contains pressure filters, chemical rooms, a new laboratory, plant operator room, and all associated water treatment equipment for a groundwater water source.

Plocher Construction Company (Highland) was the project’s contractor. All work on the project was completed by union contractors and employees.

Mike Brown, Senior Superintendent of Operations, Cairo District, said he expects a continued smooth transition to the new plant, “Groundwater is not new to our community. We have switched to a groundwater source in recent years because of flooding and temporary operational issues. This is an important investment in the infrastructure of our Cairo District.”

Illinois American Water monitors and tests the drinking water in the Cairo District continuously. Ongoing tests confirm the water continues to meet all regulatory water quality standards.

Cairo is the southernmost city in Illinois and the county seat of Alexander County.

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/20240829054544/en/

NEWS MEDIA CONTACT

Anna Kubas, Senior Manager, External Communications

Illinois American Water

Anna.Kubas@amwater.com

Source: American Water

FAQ

What is the cost of Illinois American Water's new groundwater treatment plant in Cairo?

The new groundwater treatment plant in Cairo cost $10.9 million.

When was the new AWK groundwater treatment plant in Cairo completed?

The new groundwater treatment plant was completed in August 2024.

Why did Illinois American Water switch to groundwater in Cairo?

Illinois American Water switched to groundwater in Cairo to meet U.S. EPA regulations on surface water plants and provide a more reliable, efficient water supply.

What are the main components of the new AWK water treatment plant in Cairo?

The new plant includes pressure filters, chemical rooms, a new laboratory, plant operator room, and associated water treatment equipment for groundwater.