American Water Works Company (AWK - Free Report) continues to upgrade the existing utility infrastructure and add new assets to its portfolio. The company recently announced that its unit Virginia American Water will invest roughly $0.3 million to improve a water main at Foxchase Shopping Plaza in Alexandria, Va.
Per the plan, Virginia American Water will replace its aging 1,200 feet long pipeline of 6 inch with a new 8 inch water main at Foxchase. The company is expected to start the project on Oct 9, 2013. The project is scheduled to be completed within two months.
The infrastructure upgrade will enable Virginia American Water to enhance reliability of water supply and toughen the capability of the systems. Further, this project will help to increase water flow for firefighting activities in the locality.
As per the U.S. Environmental Protection Agency’s report, the U.S. utility providers need to invest $384 billion through 2030 for restoring as well as improving drinking water system. It is evident from American Water Works’ activities that it is strongly following this guideline. On Sep 26, 2013, Pennsylvania American Water, a subsidiary of the company, announced that it will spend $1.2 million to replace the water main in East Pennsboro Township.
American Water Works invested $0.43 billion under its capital spending program during the first six months of 2013, primarily for several growth projects. In 2013, the company plans to deploy around $1 billion in different ventures to ensure the safety and standard of operations.
American Water Works currently has a Zacks Rank #3 (Hold). However, other water utilities that are currently performing well include Connecticut Water Service Inc. (CTWS - Free Report) and Consolidated Water Co. Ltd. (CWCO - Free Report) , each with a Zacks Rank #1 (Strong Buy), and SJW Corp. (SJW - Free Report) with a Zacks Rank #2 (Buy).