American Water Works Company
) unit Iowa American Water has started to drill a well and also
intends to install a booster pump station in its newly acquired
water system of the Town of Dixon. The operations will come
online in Sep 2013.
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The water drawn from the well will significantly reduce nitrate
levels, thereby bringing the system in compliance with federal
environmental norms and state requirements. The booster pump
installed at the system would help to increase water pressure.
A few days back, American Water Works acquired the Town of Dixon
Water System. This acquisition will enable the company to serve
104 more customers in northwest Davenport.
It is evident that American Water Works is currently following a
steady organic as well as inorganic growth strategy to expand its
operations. During the first six months of 2013, the company
spent $429.8 million under its capital spending program.
In Jul 2013, the company started the development of a new
250,000-gallon water storage tank on Crestview Drive. In May
2013, American Water Works completed its $101 million Pittsburg
System Upgrade project.
On the inorganic expansion front, American Water Works' unit
Pennsylvania American Water acquired a municipal wastewater
system in Beaver County for $1.8 million. The company will add
500 customers in Koppel Borough and a portion of Big Beaver
Borough from this acquisition.
The infrastructure addition and upgrade program will enable
American Water Works to provide uninterrupted water to its
customers and strengthen system competence. These factors will
subsequently improve reliability and public safety, while
maintaining government water quality regulations.
American Water Works is presently waiting for rate case decisions
in five states in which it operates. A favorable decision will
enable American Water Works to recoup its earlier invested funds.
Also, we believe the bill-hike approval will further give
confidence to the utilities to invest more on infrastructure
Voorhees, N.J.-based American Water Works was founded in 1886.
The company serves around 14 million people with water and water
American Water Works currently has a Zacks Rank # 3 (Hold). Other
water utilities, which are doing well include
Connecticut Water Service Inc.
) with a Zacks Rank #1 (Strong Buy), and
Consolidated Water Co. Ltd.
), each with a Zacks Rank #2 (Buy).