Pennsylvania American Water Announces $28.3 Million Investment for Water Storage Upgrades in 2024

Rhea-AI Summary

Pennsylvania American Water announced a $28.3 million investment plan to rehabilitate 10 water storage tanks and construct 4 new tanks in 2024. The company's tank infrastructure program aims to extend tank service lives, protect water quality, and enhance water distribution system efficiency. The investment ensures adequate capacity, pressure, and fire protection for residential and commercial customers. Tank rehabilitation includes inspecting, sandblasting, and repainting, which is more cost-efficient than tank replacement. Crews will apply new coatings to prevent rust and maintain water quality. The construction of new tanks will further boost water storage capacity to meet customer demand and provide reliable service.

Positive

• The $28.3 million investment in water storage upgrades demonstrates Pennsylvania American Water's commitment to maintaining and enhancing its infrastructure.

• The tank rehabilitation program ensures the longevity and efficiency of the company's water storage tanks, protecting water quality and enhancing customer service.

• The construction of new ground storage tanks in various municipalities shows Pennsylvania American Water's proactive approach to meeting customer demand and providing reliable water service.

Negative

• The $28.3 million investment could potentially impact the company's financials in the short term, leading to increased expenses, although the long-term benefits of enhancing infrastructure may outweigh the initial costs.

• Any delays or unforeseen challenges in the tank rehabilitation and construction process could impact the company's ability to deliver water service efficiently, potentially affecting customer satisfaction.

Announcement made in conjunction with Infrastructure Week observation, celebrated May 13-17

MECHANICSBURG, Pa.--(BUSINESS WIRE)-- In conjunction with the start of the Infrastructure Week observation, Pennsylvania American Water today announced its 2024 tank infrastructure investment plan to rehabilitate 10 of its water storage tanks and construct four new tanks. Pennsylvania American Water’s tank rehabilitation program of inspecting, sandblasting, and repainting tanks extends the tanks service lives and helps protect water quality. The total cost of the company’s water storage upgrades this year is approximately $28.3 million.

“Storage tanks are a critical part of our distribution system infrastructure,” said Bruce Aiton, vice president of engineering at Pennsylvania American Water. “Tanks provide system capacity to residential and commercial customers, along with adequate pressure and fire protection. Maintaining and rehabilitating tanks extends their service life and is more cost-efficient than replacing them.”

This year, the company will rehabilitate and repaint storage tanks in the following municipalities:

Municipality	County	Cost	Size (gal)
Union	Washington	$1,450,000	500,000
Union	Washington	$1,550,000	5,000,000
North Franklin	Washington	$475,000	550,000
Hanover	Washington	$375,000	300,000
West Pittsburg	Lawrence	$415,000	410,000
Neshannock	Lawrence	$675,000	1,100,000
White	Indiana	$1,600,000	200,000
White	Indiana	$850,000	2,000,000
McEwensville	Northumberland	$360,000	100,000
Lower Providence	Montgomery	$1,450,000	1,000,000

To rehabilitate the tanks, crews will strip the original paint and apply a new coating, which serves as a protective barrier that prevents steel from rusting and impacting water quality. During construction, customers should not experience impacts on their water service.

The company also is constructing four new ground storage tanks in the following municipalities to provide additional water storage capacity, which will help the company continue to deliver reliable water service to meet customer demand and provide fire protection:

Municipality	County	Cost	Size (gal)
Jackson	Butler	$4,900,000	750,000
Young	Jefferson	$5,550,000	500,000
Roaring Brook	Lackawanna	$6,900,000	3,500,000
Laurel Run	Luzerne	$1,050,000	200,000

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 Pennsylvania American Water

Pennsylvania 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 2.3 million people.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240513005426/en/

Media Contacts:

Gary Lobaugh

Director, Government, and External Affairs, Western PA

724.873.3674

gary.lobaugh@amwater.com

David Misner

External Affairs Manager, Central PA

717-262-7525

david.misner@amwater.com

Susan Turcmanovich

External Affairs Manager, Northeast PA

570.351.0120

susan.turcmanovich@amwater.com

Source: Pennsylvania American Water

FAQ

What is Pennsylvania American Water's 2024 tank infrastructure investment plan?

Pennsylvania American Water announced a $28.3 million investment plan to rehabilitate 10 water storage tanks and construct 4 new tanks in 2024.

What is the total cost of Pennsylvania American Water's water storage upgrades in 2024?

The total cost of the company’s water storage upgrades this year is approximately $28.3 million.

How does Pennsylvania American Water maintain and rehabilitate its water storage tanks?

Pennsylvania American Water's tank rehabilitation program includes inspecting, sandblasting, and repainting tanks to extend their service lives and protect water quality.

What municipalities will receive tank rehabilitation from Pennsylvania American Water in 2024?

The company will rehabilitate storage tanks in municipalities like Union, North Franklin, Hanover, West Pittsburg, Neshannock, White, McEwensville, and Lower Providence.

Why is Pennsylvania American Water constructing new ground storage tanks?

Pennsylvania American Water is constructing new ground storage tanks in various municipalities to provide additional water storage capacity, meet customer demand, and enhance reliable water service.

How will Pennsylvania American Water's tank rehabilitation and construction projects impact customers?

Customers should not experience any impacts on their water service during the tank rehabilitation and construction process, ensuring continued reliable service.