Yahoo Finance American Water (AWK) to Invest in Water System in Pennsylvania
American Water Works AWK announced that its unit, Pennsylvania American Water, is going to invest $2 million to install 2 miles of new water main in Washington County to ensure high-quality water services for customers and increase water flow for firefighting.
In addition to replacing miles of water mains that are aging, the investment is also essential to install new mains to efficiently meet the rising demand for potable water from its customers.
Pennsylvania American Water has been investing on a regular basis to upgrade its existing water and wastewater infrastructure as well as expand operations through strategic acquisitions. This company is efficiently providing water and wastewater services to nearly 2.4 million people.
Investment Crucial for Water Industry
Potable water supply on a 24x7 basis is essential for maintaining hygiene and performing daily chores. Millions of miles of pipelines, storage tanks, pumps, desalination plants, and water refineries work in tandem to deliver clean as well as potable water for meeting daily requirements. Per the findings of the American Society of Civil Engineers, water main breaks occur every two minutes in the United States due to aging of the existing water infrastructure. The breaks in the pipeline result in the wastage of 6 billion gallons of potable water each day and add to the loss of water utility operators.
The only solution to the above problem is to update and replace the aging water infrastructure at regular intervals but a huge amount of investment is required to do the same. Per the Water and Wastewater Equipment Manufacturers Association, an estimated $750 billion investment is necessary to maintain and expand drinking water and wastewater services to meet demand over the next 20 years. American Water continues to make investments in its infrastructure to upgrade, enhance and maintain the same. The company has plans to invest $10.4 billion in the 2021-2025 time period and $22-$25 billion in the next decade.
Apart from American Water Works, water utilities like Essential Utilities WTRG are also making regular investments to upgrade the existing water and wastewater systems. Its long-term plan is to invest nearly $3 billion through 2023 to rehabilitate, and strengthen water as well as natural gas pipeline systems. Another water utility, Global Water Resources GWRS is making acquisitions and the necessary investments to expand as well as strengthen operations, and upgrade the acquired assets for providing efficient services to customers. California Water Service CWT plans to invest in the range of $270-$300 million in 2021 to strengthen its water and wastewater infrastructure.
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American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
California Water Service Group (CWT) : Free Stock Analysis Report
Global Water Resources, Inc. (GWRS) : Free Stock Analysis Report
Essential Utilities Inc. (WTRG) : Free Stock Analysis Report
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