American Water Works Company, Inc.
) continues to invest substantially to upgrade its aging
infrastructure. On this occasion, American Water announced that
its unit Pennsylvania American Water will invest roughly $0.52
million to replace the water main in Lower Providence Township,
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Per the plan, the company will replace the aging and undersized
pipe of nearly 2,700-feet with a new 12-inch ductile-iron water
main along Middle School Drive located between Pond View Drive
and Appledale Road, and along Appledale Road between Middle
School Drive and Sunnyside Avenue.
Pennsylvania American Water plans to start the aforesaid
activities by this week and finish it by December, subject to
weather conditions. The company intends to start final paving
restoration either in Dec 2013 or in spring 2014.
The infrastructure upgrade will enable Pennsylvania American
Water to improve reliability of water supply and strengthen the
capability of its utility assets. Further, this project will
enhance water flow capacity for firefighting activities in the
The U.S. government continues to impose several mandates to
maintain reliability in water supply. As per the U.S.
Environmental Protection Agency's report, the U.S. utility
providers need to invest $384 billion through 2030 for restoring
and upgrading drinking water system.
We appreciate American Water's steady efforts to abide by these
regulations. On Nov 19, 2013, the company's subsidiary, Iowa
American Water, announced that it has completed numerous water
main projects in the Iowa Quad Cities, with a total investment of
approximately $1.25 million.
We remind investors that American Water invested $665.3 million
under its capital expenditure program during the first nine
months of 2013. The company intends to invest approximately $285
million in the last three months of 2013.
Subsequently, the aforesaid initiatives will enable the company
to provide uninterrupted water supply to its customers, improve
consumer safety and maintain government 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).