Pennsylvania American Water Unveils $6.7 Million Rehab Program for Storage Tanks

Pennsylvania American Water today announced its 2015 plans to rehabilitate 15 existing water storage tanks across the commonwealth. The company’s rehab program of inspecting, sandblasting and repainting tanks will extend their service life, protect water quality and continue to provide fire protection for the community.

The combined cost of the tank projects is approximately $6.7 million. These upgrades follow the company’s investment of approximately $10 million in 2014 to rehab 13 existing tanks and erect four new storage structures. Pennsylvania American Water owns and maintains more than 290 storage tanks across the state.

“Storage tanks are essential to our community water systems by helping ensure reliable water service to meet customer demand and provide fire protection,” said President Kathy L. Pape of Pennsylvania American Water. “The rehab projects are a prudent, proactive investment to extend the tanks’ lifespan, which is more cost-efficient than replacing the structures.”

This year, Pennsylvania American Water will rehabilitate existing tanks in the following communities:

• West Mifflin Borough, Allegheny County – 7.2 million-gallon ground storage tank (construction started in 2014)
• Bethel Park Borough, Allegheny County – 5 million-gallon ground storage tank
• Carroll Township, Washington County - 500,000-gallon elevated tank (construction started in 2014)
• North Franklin Township, Washington County - 100,000-gallon elevated tank
• South Strabane Township, Washington County - 420,000-gallon elevated tank
• Ellwood City, Lawrence County – 150,000-gallon ground storage tank
• Punxsutawney Borough, Jefferson County – 200,000-gallon ground storage tank
• Kane Borough, McKean County – 400,000-gallon elevated tank
• Springbrook Township, Lackawanna County – 2 million-gallon ground storage tank
• Chinchilla Borough, Lackawanna County – 750,000-gallon ground storage tank
• West Wyoming Borough, Luzerne County - 250,000-gallon ground storage tank
• West Hanover Township, Dauphin County - 150,000-gallon elevated tank
• Lower Providence Township, Montgomery County – 1.2 million-gallon ground storage tank
• Yardley Borough, Bucks County – 1.1 million-gallon ground storage tank
• Coatesville, Chester County – 250,000-gallon elevated storage tank

To rehabilitate the tanks, crews will strip the original paint and apply a new coating, which serves as a protective barrier that prevents the steel from rusting and compromising water quality. During construction, the company does not expect customers to experience service interruptions. The projects include mitigation procedures to ensure that paint fumes and dust levels are in compliance with air pollution control requirements mandated by local health departments and the Pennsylvania Department of Environmental Protection.

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), is the largest water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.2 million people. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,400 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 15 million people in more than 45 states and parts of Canada. More information can be found by visiting www.amwater.com.

This release contains forward looking statements, including, among others, our plan to continue our long-term strategy of capital investment in our systems. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions, unfavorable weather conditions, changes in regulations or regulatory treatment and availability and the cost of capital. We undertake no obligation to publicly update or revise any forward-looking statement.