American Water Works Company Inc.
) unit Pennsylvania American Water announced the completion of
its Pittsburg System Upgrade project. The company invested $101
million for this venture. This upgrade project is partly financed
by the Pennsylvania Economic Development Financing Authority's
(PEDFA) tax-exempt debt.
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Per the program, American Water upgraded its Hays Mine Treatment
Plant and Becks Run Pumping Station. These initiatives include
replacement of gas chlorine with liquid chlorine, upgrading the
Monongahela River intake structure and raw water pump station,
setting up of 3,000 feet of new 42-inch water main, and
completion of water storage and pump station structure and
chemical feed facilities. In addition, the company refurbished
the E.H. Aldrich Treatment Plant in Elrama, Washington County,
and the Arlington Booster Station in the City of Pittsburgh.
The infrastructure upgrade program will enable American Water to
provide uninterrupted water supply to its customers and
strengthen system competence. These factors will subsequently
improve reliability, consumer confidence, public safety while
maintaining government water quality regulations.
American Water invested $213.1 million during first-quarter 2013
under its capital spending program. In full-year 2013, the
company intends to invest $950 million in various projects to
ensure the safety and reliability of its water operations.
It is evident from American Water's capital spending program that
the company currently plans to improve its water distribution
assets and installation of modern systems. In recent times, the
company invested $3.7 million to upgrade the Scranton Water
System for providing uninterrupted service to its customers and
increase water flow during firefighting.
American Water's first-quarter net cash from operating activities
was $149.6 million and cash balance as of Mar 31, 2013 was $21.2
million. We believe that the company's stable financial position
along with strategic assets acquisitions encourage it to follow
steady infrastructure development activities.
Voorhees, N.J.-based American Water was founded in 1886. The
company serves around 14 million people with water and water
related services. With 6,700 employees, the company's market
capitalization is $7.58 billion.
American Water currently has a Zacks Rank # 3 (Hold). Other water
utilities, which are doing well include
American States Water Company
Consolidated Water Co. Ltd.
Middlesex Water Co.
). All of them presently carry a Zacks Rank #2 (Buy).