Pennsylvania American Water Plans $3.2 Million Rehab of Water Storage Tanks

Pennsylvania American Water announced today the start of rehabilitation projects at 11 water storage tanks throughout Pennsylvania. The tanks will be inspected, sandblasted and repainted to provide a protective barrier that prevents the steel from rusting and compromising water quality. The combined cost of these improvements is approximately $3.5 million.

“Storage tanks are a critical part of our water infrastructure to ensure that we have adequate supply to meet customer demands and to provide fire protection for our communities,” said President Kathy L. Pape of Pennsylvania American Water. “It’s not only beneficial to properly maintain them, but the cost of rehabilitating tanks represents a significant savings in contrast to replacing the structures.”

Pape said the tank rehab projects follow the company’s approximately $282 million investment in capital improvements across the state in 2011. Over the next several months, the company plans to rehabilitate tanks in the following communities:

• Bethel Park, Allegheny County - Rocky Ridge Tank #3, 5.9-million gallon capacity
• Union Township, Washington County - Finleyville Tank #1, 100,000-gallon capacity
• West Pike Township, Washington County - Crescent Heights Tank, 180,000-gallon capacity
• Neshannock Township, Lawrence County - New Castle Elevated Tank, 75,000-gallon capacity
• Center Township, Butler County - Center Township Tank, 500,000-gallon capacity
• Salem Township, Luzerne County - Shickshinny Tank, 300,000-gallon capacity
• Plains Township, Luzerne County - Mill Creek Tank #2, 1.6-million gallon capacity
• Pittston Township, Luzerne County - Vogelbacher Tank #1, 350,000-gallon capacity
• Spring Township, Berks County - Mountain Tank #2, 500,000-gallon capacity
• Lower Makefield Township, Bucks County - Highland Drive, 330,000-gallon capacity
• Valley Township, Chester County - Millview Tank, 200,000-gallon capacity

Crews will strip the original paint and apply a new coating, which will add to the lifespan of the structure. During rehabilitation, 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 wholly owned subsidiary of American Water (NYSE: AWK), is the largest investor-owned 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 7,000 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 15 million people in more than 30 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.