West Virginia American Water Files 2018 Infrastructure Replacement Plan and Distribution System Improvement Charge

CHARLESTON, W.Va.–(BUSINESS WIRE)–West Virginia American Water filed an application today with the Public
Service Commission (PSC) of West Virginia seeking approval of its 2018
infrastructure replacement program and associated Distribution System
Improvement Charge (DSIC). The detailed plan includes $29.9 million in
system-wide upgrades that West Virginia American Water will make in
2018, including $23.5 million to replace or upgrade more than 39 miles
of water mains, $4 million to replace service lines and fire hydrants
and $2.4 million to replace and upsize two water storage tanks.

“With this annual infrastructure replacement program in place, we have
been able to expand our capital program and reduce our main replacement
cycle from 400 years to 100 years, replacing approximately 4,000 feet of
pipe per week,” said Brian Bruce, president of West Virginia American
Water. “The accelerated investment achieved through the DSIC program
strengthens our water system, creates operational efficiencies and
reduces costs long-term for our customers.”

As part of this program, a surcharge is calculated each year based on
capital investments made annually until these investments are rolled
into the company’s rates in a future rate case. If approved, the plan
would increase the current Distribution System Improvement Charge from
1.09 percent in 2017 to 3.28 percent in 2018, representing an increase
of $1.04 per month for the average residential customer using 3,256
gallons.

“Annual DSIC programs provide transparency to our customers and allow
for up-front regulatory review and approval of our proposed
infrastructure upgrades to confirm that they are in the best interest of
our customers,” Bruce continued. “In turn, our customers receive
increased service reliability from these projects and pay a small
monthly surcharge rather than experiencing higher rate increases several
years later that reflect multiple years of company investments.”

West Virginia American Water’s current DSIC includes $18 million in
water main replacement projects, $7 million for the construction of two
new 4-million-gallon water storage tanks and $4 million in service line
and fire hydrant replacements in the 2017 calendar year. In an effort to
improve communication about these investments to customers, West
Virginia American Water recently launched its 2017
Infrastructure Upgrade StoryMap – a user-friendly, easily accessible
online map that allows customers to view details about water main
replacement projects and other capital investments as they are under
construction and completed. West Virginia is the first state within
American Water to use an interactive web-based map to display these
types of projects and hopes that by doing so, customers will be able to
see the size and scope of the investments the company is making across
its service area.

West Virginia American Water, a subsidiary of American Water (NYSE:
AWK), is the largest water utility in the state, providing high quality
and reliable water services to approximately 550,000 people. Founded in
1886, American Water is the largest publicly traded U.S. water and
wastewater utility company. The company employs more than 6,700
dedicated professionals who provide regulated and market-based drinking
water, wastewater and other related services to an estimated 15 million
people in 47 states and Ontario, Canada. More information can be found
at www.westvirginiaamwater.com.

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Contacts

West Virginia American Water
Laura Martin, External Affairs Manager
Office:
(304) 340-2089
Mobile: (304) 932-7158
[email protected]
www.westvirginiaamwater.com