New Jersey American Water Invested More Than $464 Million Statewide in 2020

Rhea-AI Summary

New Jersey American Water announced a significant investment of over $464 million in system upgrades for 2020, an increase of $80 million over its initial plan due to COVID-19 impacts. The investment included $174 million for main replacements, improvements to treatment facilities totaling $93.5 million, and significant upgrades to fire hydrants and service lines. The initiative aims to enhance water service reliability and boost local employment. This proactive approach is aligned with the company's commitment to maintaining safe and efficient water delivery.

Positive

• Investment increased by $80 million to over $464 million for system upgrades.
• Significant allocation of $174 million for replacing and rehabilitating mains.
• Over $93.5 million invested in water treatment facility improvements.

Negative

• None.

New Jersey American Water recently announced its end-of-year investment total and system improvements for 2020. More than $464 million total was invested on system upgrades and various improvement projects statewide throughout the year, an increase of approximately $80 million over the company’s original capital investment plan in response to the COVID-19 public health emergency.

“At New Jersey American Water, our goal is to provide safe, reliable water service to all of our customers,” said Cheryl Norton, president of New Jersey American Water. “From source to tap, our team of professionals works hard to maintain our facilities to keep them operating efficiently, meeting regulatory standards and delivering high quality water. Investment now helps sustain our current operations while supporting resiliency for the future – all to benefit our customers.”

Each year, New Jersey American Water invests millions of dollars in its infrastructure, which includes both maintenance and upgrades to its treatment and distribution (pipeline). This includes regular maintenance and upgrades to treatment plants, tanks, pump stations, miles of pipe, water mains, fire hydrants and metering equipment.

“Our annual capital investment is typically in the $350 million to $375 million range, but in 2020, we were able to increase our planned investment by about $80 million in response to the COVID-19 public health emergency,” said Norton. “We were able to work with state and local officials to perform additional pipe replacement jobs which were aligned with municipal paving projects. This resulted in better value and service for our customers, as well as increased jobs which helps families and the local economy.”

For 2020, system improvement highlights include:

• Mains: New Jersey American Water invested $174 million in more than 66 miles of main to replace and rehabilitate aging pipe and install new main to serve additional areas. Additionally, New Jersey American Water invested more than $2.5 million in leak detection equipment in 2020 to further enhance its teams’ ability to respond to leaks and breaks.
• Source Water, Treatment and Other Production System Improvements: New Jersey American Water invested more than $93.5 million for improvements to its water treatment facilities across the state in 2020. Those facilities and projects include:
  • Raritan Millstone Water Treatment Plant – filter rehabilitation, emergency power and recycle pump improvements
  • Springfield Station – PFOS treatment enhancements
  • Swimming River Water Treatment Plant – second clearwell, electrical upgrades and emergency power.
  • 52^nd Street Station in Ocean City, Otterbrook Well 29, and Spruce Road in Howell – well station improvements
  • Navesink Tank Station, Asbury Avenue Tank Station and Shorelands – treatment and chemical safety upgrades
  • Various facilities around the state – automation and control system upgrades.
• Fire Hydrants: New Jersey American Water replaced 457 fire hydrants and 495 valves across the state, an approximately $19.4 million investment.
• Service Lines: New Jersey American Water replaced 3,828 service lines; an investment totaling approximately $36.9 million.
• Tanks/Storage: New Jersey American Water rehabilitated four water tanks and conducted detailed inspections on 45 tanks, an investment totaling approximately $7.9 million.

In 2020, the company also introduced its START – Solutions Today and Reinvesting Tomorrow – initiative, which aims to accelerate investment projects to continue to provide safe, reliable water and wastewater service while increasing supplier diversity initiatives and creating a workforce development program to help create jobs.

Visit www.newjerseyamwater.com to learn more about New Jersey American Water’s multimillion dollar program to accelerate the renewal of water infrastructure that is reaching the end of its useful life in more than 100 communities across the state and to use the infrastructure upgrade map located under Water Quality, System Updates.

About New Jersey American Water

New Jersey American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.8 million people. For more information, visit www.newjerseyamwater.com and follow New Jersey American Water on Twitter and Facebook.

About American Water

With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,800 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to 15 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210121005772/en/

FAQ

What was the total investment by New Jersey American Water in 2020?

New Jersey American Water invested over $464 million in 2020.

How much did New Jersey American Water increase its investment due to COVID-19?

The company increased its investment by approximately $80 million in response to COVID-19.

What were the key areas of investment for New Jersey American Water in 2020?

Key areas included $174 million for mains, $93.5 million for treatment facilities, and $19.4 million for fire hydrants.

How many fire hydrants were replaced by New Jersey American Water in 2020?

New Jersey American Water replaced 457 fire hydrants in 2020.

What initiative did New Jersey American Water introduce to enhance its services?

The company introduced the START initiative to accelerate investment projects and create jobs.