American Water Works Company, Inc.
) continues with its steady investment strategy of upgrading the
existing infrastructure while adding new assets to its portfolio.
The company announced that its subsidiary Virginia American Water
will invest approximately $0.1 million to upgrade the water main
in Berkeley Beach, VA.
The current investment is a part of Virginia American Water's
full-year 2013 infrastructure spending plan of $4 million. The
company is expected to complete the project in roughly two
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Per the plan, Virginia American Water will replace 1,200-feet of
a 2-inch main as well as an 8-inch main along Breezewood Drive,
Cliff Road and Lakeshore Drive in the Berkeley Beach subdivision.
The current project will help Virginia American Water to improve
water supply reliability and quality of water besides increasing
the capacity of its utility assets. In addition, this project
will enhance water flow capability in the locality.
The U.S. government continues to enforce several regulations to
maintain reliability in water supply. As per the U.S.
Environmental Protection Agency's report, the U.S. utility
providers need to spend $384 billion through 2030 to refurbish
and upgrade the drinking water system.
It is evident from past records that American Water continues to
improve its water systems to abide by the government's water
utility rules. The company's unit, Iowa American Water, recently
completed numerous water main projects in the Iowa Quad Cities,
with a total investment of about $1.25 million.
During the first nine months of 2013, American Water invested
$665.3 million under its capital expenditure program. The company
plans to invest approximately $285 million in the last three
months of 2013.
These initiatives will enable American Water to provide
uninterrupted water supply to its customers, improve consumer
safety and maintain the government's utility standards.
American Water currently has a Zacks Rank #3 (Hold). However,
other water utilities that are currently performing well include
Middlesex Water Co.
), with a Zacks Rank #1 (Strong Buy), and
Connecticut Water Service Inc.
California Water Service Group
), each with a Zacks Rank #2 (Buy).