Pennsylvania American Water Unveils $19.6 Million Plan for Water Storage Upgrades

HERSHEY, Pa.–(BUSINESS WIRE)–#infrastructure–Pennsylvania American Water today announced its 2018 plans to
rehabilitate 10 existing water storage tanks, as well as erect six new
storage structures. Pennsylvania American Water’s rehab program of
inspecting, sandblasting and repainting tanks will extend their service
life and protect water quality, and the new tank construction will
provide increased storage capacity to meet customer demand and improve
fire protection. Total cost of the company’s water storage improvements
is approximately $19.6 million.

“Storage tanks are often in remote locations and not visible to
customers, but they are critically important to our infrastructure to
ensure 24/7 reliability, meet the communities’ water needs, and provide
fire protection,” said Pennsylvania American Water President Jeffrey L.
McIntyre. “In addition to constructing more storage to meet local
demand, we are prudently investing in preventative maintenance to extend
the lifespan of existing tanks, which is more cost-efficient than
replacing the structures.”

This year, Pennsylvania American Water will invest a combined total of
nearly $6.6 million to rehabilitate and repaint existing tanks in the
following municipalities:

• Jefferson Hills Borough, Allegheny County – 300,000-gallon elevated
  storage tank
• California Borough, Washington County – 400,000-gallon ground storage
  tank
• Union Township, Washington County – 500,000-gallon treatment tank
• Saxonburg Borough, Butler County – 400,000-gallon elevated storage tank
• Conewago Township, Warren County – 1 million-gallon ground storage tank
• Sugar Notch Borough, Luzerne County – 1 million-gallon ground storage
  tank
• Plains Township, Luzerne County – 500,000-gallon ground storage tank
• Wright Township, Luzerne County – 1 million-gallon ground storage tank
• Silver Spring Township, Cumberland County – 500,000-gallon storage tank
• West Caln Township, Chester County – 200,000-gallon elevated storage
  tank

To rehabilitate the tanks, crews will strip the original paint and apply
a new coating, which serves as a protective barrier that prevents the
steel from rusting and compromising water quality. During construction,
the company does not expect customers to experience service
interruptions. The projects include mitigation procedures to ensure that
paint fumes and dust levels are in compliance with air pollution control
requirements mandated by local health departments and the Pennsylvania
Department of Environmental Protection.

In addition, the company will build new tanks in the following
communities:

• Canton Township, Washington County – 750,000-gallon elevated storage
  tank; Approximate cost $2.6 million.
• Fallowfield Township, Washington County – 500,000-gallon ground
  storage tank; Approximate cost $3.2 million.
• Lincoln Borough, Allegheny County – 1 million-gallon ground storage
  tank; Approximate cost $3 million.
• White Township, Indiana County – 750,000-gallon ground storage tank;
  Approximate cost $1.7 million.
• Shenango Township, Lawrence County – 300,000-gallon ground storage
  tank; Approximate cost $1.6 million.
• Dunmore Borough, Lackawanna County – 120,000-gallon ground storage
  tank; Approximate cost $900,000.

McIntyre said, “This year’s tank upgrades follow our company’s 2017
investment of nearly $8.5 million to rehabilitate 10 storage tanks and
build four new storage structures.” Pennsylvania American Water owns and
maintains more than 250 water storage facilities across the state.

Pennsylvania 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 2.4 million people. 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 6,900 dedicated professionals who provide regulated
and market-based drinking water, wastewater and other related services
to an estimated 15 million people in 46 states and Ontario, Canada.
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.

This release contains forward looking statements, including, among
others, our plan to continue our long-term strategy of capital
investment in our systems. There are important factors that could cause
actual results to differ materially from those expressed or implied by
such forward-looking statements including: general economic business
conditions, unfavorable weather conditions, changes in regulations or
regulatory treatment and availability and the cost of capital. We
undertake no obligation to publicly update or revise any forward-looking
statement.

Contacts

Pennsylvania American Water
Terry Maenza
T: 610-670-7789 ext.
1009
M:610-849-6484
[email protected]
or
Gary
Lobaugh
T: 724-873-3674
M: 724-944-5148
[email protected]