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American Water (AWK) Pennsylvania Arm to Spend $0.4M on Upgrades
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American Water Works (AWK - Free Report) recently announced that its unit, Pennsylvania American Water, is going to invest $0.4 million to upgrade 1,350 feet of water main in Amity Township. The aging small diameter water lines will be replaced with new 8-inch ductile iron main. These essential upgrades will increase water flow for customers and ensure adequate supply of water for fire fighters.
Pennsylvania American Water regularly invests to upgrade, maintain, and expand the existing water and wastewater infrastructure. These upgrades lower the possibility of breakage of water mains that have reached the end of effective service life. Pennsylvania American Water provides high-quality and reliable water and wastewater services to nearly 2.4 million people.
Water Infrastructure Needs Investment
The U.S. water infrastructure, which includes more than 2.2 million miles of pipelines, is aging and needs major repair and maintenance to provide proper services to millions of Americans. Per the Water and Wastewater Equipment Manufacturers Association, an estimated $750 billion investment is necessary to maintain and expand drinking water as well as wastewater services to meet demand over the next 20 years.
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. Pipeline breaks result in the wastage of 6 billion gallons of potable water each day and add to the loss of water utility operators. The pipeline breaks not only increase the cost of water services but also expose it to the possibility of contamination.
American Water Works has plans to invest $10.4 billion between 2021 and 2025 and $22-$25 billion in the next decade to upgrade and strengthen its existing water and wastewater infrastructure. Other utilities are also making investment to upgrade their infrastructure to provide uninterrupted services to their customers.
Essential Utilities (WTRG - Free Report) is 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. California Water Service (CWT - Free Report) plans to invest in the range of $270-$300 million in 2021 to strengthen its water and wastewater infrastructure. Middlesex Water (MSEX - Free Report) — under the Water for Tomorrow program — is making regular capital investments to enhance system reliability, resiliency and overall service quality. The company intends to invest $314 million between 2021 and 2023 to strengthen its water and wastewater infrastructure.
Price Performance
Shares of American Water have outperformed the industry in the past year.
Image: Shutterstock
American Water (AWK) Pennsylvania Arm to Spend $0.4M on Upgrades
American Water Works (AWK - Free Report) recently announced that its unit, Pennsylvania American Water, is going to invest $0.4 million to upgrade 1,350 feet of water main in Amity Township. The aging small diameter water lines will be replaced with new 8-inch ductile iron main. These essential upgrades will increase water flow for customers and ensure adequate supply of water for fire fighters.
Pennsylvania American Water regularly invests to upgrade, maintain, and expand the existing water and wastewater infrastructure. These upgrades lower the possibility of breakage of water mains that have reached the end of effective service life. Pennsylvania American Water provides high-quality and reliable water and wastewater services to nearly 2.4 million people.
Water Infrastructure Needs Investment
The U.S. water infrastructure, which includes more than 2.2 million miles of pipelines, is aging and needs major repair and maintenance to provide proper services to millions of Americans. Per the Water and Wastewater Equipment Manufacturers Association, an estimated $750 billion investment is necessary to maintain and expand drinking water as well as wastewater services to meet demand over the next 20 years.
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. Pipeline breaks result in the wastage of 6 billion gallons of potable water each day and add to the loss of water utility operators. The pipeline breaks not only increase the cost of water services but also expose it to the possibility of contamination.
American Water Works has plans to invest $10.4 billion between 2021 and 2025 and $22-$25 billion in the next decade to upgrade and strengthen its existing water and wastewater infrastructure. Other utilities are also making investment to upgrade their infrastructure to provide uninterrupted services to their customers.
Essential Utilities (WTRG - Free Report) is 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. California Water Service (CWT - Free Report) plans to invest in the range of $270-$300 million in 2021 to strengthen its water and wastewater infrastructure. Middlesex Water (MSEX - Free Report) — under the Water for Tomorrow program — is making regular capital investments to enhance system reliability, resiliency and overall service quality. The company intends to invest $314 million between 2021 and 2023 to strengthen its water and wastewater infrastructure.
Price Performance
Shares of American Water have outperformed the industry in the past year.
Image Source: Zacks Investment Research
Zacks Rank
American Water currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.