Pennsylvania American Water Unveils $6.8 Million Rehab Program for Water Storage Tanks

Pennsylvania American Water today announced plans to rehabilitate 13 existing water storage tanks this year across the commonwealth. The company’s rehab program, including inspecting, sandblasting and repainting tanks, will extend their service life, protect water quality and provide continued fire protection for the community.

The combined cost of the tank projects is approximately $6.8 million. In 2015, the company rehabilitated 15 storage tanks at an approximate cost of $6.7 million and, in 2014, invested approximately $10 million to rehab 13 existing tanks and erect four new storage structures. Pennsylvania American Water owns and maintains more than 330 water storage facilities across the state.

“Storage tanks are essential to our community water systems by helping ensure reliable water service is always available to meet customer demand and provide fire protection,” said Jimmy Sheridan, vice president of operations for 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 and repaint existing tanks in the following communities:

• Coatesville, Chester County – 250,000-gallon elevated tank
• Upper Providence Township, Montgomery County – 1.5 million-gallon ground storage tank
• McCalmont Township, Jefferson County - 250,000-gallon elevated tank
• Carbondale Township, Lackawanna County -780,000-gallon ground storage tank
• Dunmore, Lackawanna County – 1.9 million-gallon ground storage tank
• Scranton, Lackawanna County – 500,000-gallon ground storage tank
• Scott Township, Lackawanna County – 550,000-gallon tank
• Jackson Township, Luzerne County – 2.8 million-gallon ground storage tank
• Newport Township, Luzerne County – 1.2 million-gallon ground storage tank
• Plymouth Township, Luzerne County – 5 million-gallon ground storage tank
• Kane, McKean County – 110,000-gallon ground storage tank
• Forest City, Susquehanna County – 750,000-gallon ground storage tank
• Silver Spring Township, Cumberland County - 463,000-gallon 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 2.3 million people. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. Marking its 130th anniversary this year, the company employs more than 6,700 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada. More information can be found at 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.

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