Essential Utilities Marks Five Years of Strength, Innovation and Growth

Rhea-AI Summary

Essential Utilities (NYSE: WTRG) celebrates its 5th anniversary as an integrated utility following the merger of Aqua and Peoples in 2020. Over this period, the company has invested $5.4 billion in infrastructure improvements across water, wastewater, and natural gas systems.

Key achievements include modernizing 2,100 miles of aging water mains and gas pipelines, reducing gas customer outages by 45%, and cutting greenhouse gas emissions by 25%. The company has achieved nearly 100% renewable electricity usage in Pennsylvania, New Jersey, Ohio, and Illinois, while maintaining almost perfect drinking water compliance in 2024.

The company has also strengthened community engagement through $20 million in donations via the Essential Foundation and over 15,000 volunteer hours within its service territory.

Positive

• Significant infrastructure investment of $5.4 billion strengthening core assets
• 45% reduction in gas customer outages improving service reliability
• 25% reduction in greenhouse gas emissions enhancing ESG profile
• Nearly 100% drinking water compliance in 2024 demonstrating operational excellence
• Achievement of almost 100% renewable electricity usage in four major states

Negative

• None.

Insights

Utility Industry Analyst

Essential Utilities' five-year progress report reveals significant operational achievements that strengthen its investment profile. The $5.4 billion infrastructure investment across water and gas systems translates to approximately $1.1 billion in annual capital deployment - a substantial commitment for a utility with $10.7 billion market capitalization.

The modernization of 2,100 miles of aging infrastructure directly addresses the sector's primary regulatory mandate: reliability improvement. The 45% reduction in gas customer outages represents a quantifiable reliability metric that typically supports favorable regulatory treatment during rate case proceedings. Similarly, achieving near-100% drinking water compliance positions the company well with water quality regulators.

What's particularly noteworthy is how the dual-utility model appears to be delivering on its strategic premise. The integration of Aqua and Peoples has created diversified regulatory exposure across multiple states while maintaining operational excellence in both segments. This multi-state, multi-service structure provides natural regulatory risk hedging that single-service utilities lack.

The company's forward-looking strategy appropriately prioritizes addressing emerging compliance challenges like lead service line replacements and PFAS treatment. These regulatory-driven investment opportunities typically generate predictable returns through established capital recovery mechanisms, creating a visible pathway for continued infrastructure investment. While financial specifics are , these operational achievements suggest effective execution of the regulated utility model where infrastructure investment drives earnings growth.

ESG Investment Specialist

Essential's sustainability achievements demonstrate meaningful progress that enhances its competitive position within the increasingly ESG-conscious utility sector. The 25% reduction in greenhouse gas emissions represents substantial progress toward decarbonization goals, particularly significant for a company with natural gas operations.

The near-100% renewable electricity procurement across multiple states (Pennsylvania, New Jersey, Ohio, and Illinois) positions Essential ahead of many utility peers in reducing Scope 2 emissions. This achievement likely improves the company's rankings in major ESG rating frameworks, potentially expanding its investor base to include more sustainability-focused funds.

The company's exploration of next-generation technologies like hydrogen, fuel cells, and renewable natural gas demonstrates strategic foresight in preparing for potential decarbonization pathways for its gas business. This proactive approach helps mitigate the long-term regulatory risk associated with natural gas infrastructure in a carbon-constrained future.

From a community impact perspective, the $20 million in foundation donations and 15,000+ volunteer hours, while not financially material, strengthen Essential's social license to operate across its service territories. This community engagement often translates to regulatory goodwill - a critical intangible asset for regulated utilities.

These environmental and social achievements, coupled with the infrastructure modernization program, create a compelling ESG investment narrative for a sector that increasingly competes for sustainability-aligned capital. The company's balanced approach to both environmental progress and infrastructure reliability represents prudent management of its dual-service business model.

Company commemorates five years as one integrated utility, building on a legacy of more than 135 years in water and natural gas service

BRYN MAWR, Pa.--(BUSINESS WIRE)-- This month Essential Utilities (NYSE: WTRG) commemorates its fifth anniversary as a unified company, reinforcing its position as one of the nation’s largest regulated utilities. Since the integration of Aqua and Peoples in 2020, Essential has demonstrated the power of bringing together operational expertise, financial strength, and regulatory credibility to enhance infrastructure, improve environmental sustainability, and provide long-term value to customers and investors.

Both Aqua and Peoples bring a rich history of nearly 140 years of delivering essential water and natural gas service and look forward to delivering life-sustaining water and natural gas to millions of customers for decades to come.

Five Years of Impact and Investment

Essential’s strategic investments over the past five years have resulted in significant achievements:

• Invested more than $5.4 billion in infrastructure improvements across water, wastewater and natural gas systems, reinforcing long-term reliability
  
  
• Modernized approximately 2,100 miles of aging water mains and natural gas pipelines
  
  
• Enhanced system reliability, reducing gas customer outages by 45%
  
  
• Consistently outperformed average United States water quality standards, achieving nearly 100% of days in drinking water compliance in 2024
  
  
• Reduced greenhouse gas emissions by 25%, demonstrating a commitment to sustainability through methane emission reductions and expanded renewable electricity procurement
  
  
• Expanded renewable electricity procurement, achieving nearly 100% renewable electricity usage in Pennsylvania, New Jersey, Ohio and Illinois, while pursuing innovative emissions reductions actions involving hydrogen, fuel cells and renewable natural gas
  
  
• Strengthened communities, donating more than $20 million through the Essential Foundation and contributing 15,000+ volunteer-hours within its service territory

A Forward-Focused Vision

Essential Utilities continues to execute a disciplined approach to growth, leveraging its expertise to pursue strategic water and wastewater acquisitions while maintaining a strong commitment to safety, regulatory compliance and customer service. With its well-established presence in both water and natural gas, the company is well positioned to address critical industry challenges, including lead service line replacements and PFAS treatment, while ensuring sustainable financial performance.

“Our success over the past five years underscores the strength of our integrated utility model,” said Essential Chairman and CEO Chris Franklin. “By combining the operational excellence and deep industry knowledge of Aqua and Peoples, we have created a stronger, more resilient company. Looking ahead, we remain focused on our mission to enrich the communities we serve for future generations, while delivering long-term value for all stakeholders through sustainable investments and responsible growth.”

As Essential enters its next phase of growth, the company remains dedicated to innovation, environmental leadership and ongoing infrastructure modernization. By continuously improving service reliability and investing in sustainable solutions, Essential is well positioned for continued success for years to come.

About Essential

Essential Utilities, Inc. (NYSE: WTRG) delivers safe, clean, reliable services that improve quality of life for individuals, families, and entire communities. With a focus on water, wastewater and natural gas, Essential is committed to sustainable growth, operational excellence, a superior customer experience, and premier employer status. We are advocates for the communities we serve and are dedicated stewards of natural lands, protecting more than 7,600 acres of forests and other habitats throughout our footprint. Operating as the Aqua and Peoples brands, Essential serves approximately 5.5 million people across nine states. Essential is one of the most significant publicly traded water, wastewater service and natural gas providers in the U.S. Learn more at www.essential.co.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates,” “will” and similar expressions. The company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent its views only as of today and should not be relied upon as representing its views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, statements relating to the capital to be invested by the company over the next ten years, efficiencies created, and expansion of capacity in the system. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including the factors discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, which is filed with the Securities and Exchange Commission. For more information regarding risks and uncertainties associated with the company’s business, please refer to the company’s annual, quarterly and other SEC filings. The company is not under any obligation – and expressly disclaims any such obligation – to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

WTRGG

View source version on businesswire.com: https://www.businesswire.com/news/home/20250321533172/en/

Media Contact:

David Kralle

Vice President, Public Affairs

Media Hotline: 1.877.325.3477

Media@Essential.co

Source: Essential Utilities, Inc.

FAQ

How much has Essential Utilities (WTRG) invested in infrastructure since the 2020 merger?

Essential Utilities has invested $5.4 billion in infrastructure improvements across water, wastewater, and natural gas systems since the 2020 merger.

What environmental improvements has WTRG achieved in the past 5 years?

WTRG has reduced greenhouse gas emissions by 25% and achieved nearly 100% renewable electricity usage in PA, NJ, OH, and IL.

How many miles of pipeline has WTRG modernized since 2020?

Essential Utilities has modernized approximately 2,100 miles of aging water mains and natural gas pipelines.

What is WTRG's improvement in gas service reliability since 2020?

WTRG has reduced gas customer outages by 45%, significantly improving system reliability.

How much has Essential Utilities (WTRG) contributed to community support since 2020?

WTRG has donated over $20 million through the Essential Foundation and contributed more than 15,000 volunteer hours.