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American Water's Unit Receives Funding to Upgrade Water Assets
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Key Takeaways
Pennsylvania American Water received $64.3 million in PENNVEST grants and loans for upgrades.
AWK invested $675 million in 2024 to enhance water and wastewater infrastructure reliability.
AWK completed six acquisitions and plans up to $42 billion in investments through 2034.
American Water Works Company ((AWK - Free Report) ) announced that its unit, Pennsylvania American Water, received grants and low-interest loans from the Pennsylvania Infrastructure Investment Authority (“PENNVEST”) to upgrade four water infrastructure projects. The total grant is worth $64.3 million and allows the company to upgrade the infrastructure and efficiently serve customers.
Pennsylvania American Water makes investments regularly to upgrade and maintain its existing water and wastewater infrastructure to provide reliable 24x7 service to its customers. In 2024, Pennsylvania American Water invested $675 million in infrastructure upgrades. Out of which $583 million was invested in its water systems and $92million in wastewater infrastructure.
Aging Water Industry Needs Regular Investments
The U.S. water and wastewater infrastructure is deteriorating, with water main breaks occurring every few minutes, according to the American Society of Civil Engineers. The Environmental Protection Agency estimates that $1.25 trillion in investments will be needed over the next 20 years to maintain and upgrade drinking water, wastewater and stormwater systems.
The above finding from the agencies indicates that regular investment is essential to upgrade the aging United States water and wastewater infrastructure, which is quite essential. The government and the private operators should take necessary steps to maintain the 2.2 million miles of aging pipelines spread across the United States.
Investments & Consolidation in the Fragmented Industry
The U.S. water industry remains deeply fragmented, with more than 50,000 community water systems and 14,000 wastewater treatment facilities. The water utilities are making regular investments to upgrade the water and wastewater infrastructure, but the deeply fragmented water industry is a big challenge, as the small utilities with limited financial capability are unable to make necessary investments to upgrade the aging assets.
So, the relatively large water utilities are acquiring the small utilities and taking initiatives to make essential investments to upgrade the aging assets.
American Water Works completed six acquisitions in three states as of July 31, 2025. The pending 20 acquisitions (as of July 31, 2025), when completed, will add another 40,650 consumers to its customer base. Looking ahead, the company intends to invest between $17 billion and $18 billion over the 2025-2029 period and approximately $40 billion to $42 billion between 2025 and 2034.
California Water Service Group ((CWT - Free Report) ) makes strategic acquisitions and targets new markets in high-growth regions. The company’s subsidiary, California Water Service, recently signed an agreement with an affiliate of DMB Development to own and operate the wastewater and recycled water systems of Silverwood. California Water Service Group plans to invest $610 million and $760 million in 2025 and 2026, respectively, to further strengthen its operations.
Essential Utilities ((WTRG - Free Report) ) is pursuing acquisitions as part of its growth strategy. The company has signed purchase agreements for additional water and wastewater systems in Pennsylvania, Texas and Ohio that are pending closing and expected to serve more than 200,000 equivalent retail customers. Essential Utilities also plans to invest $7.8 billion through 2025-2029 to improve the water and natural gas systems and better serve customers using enhanced information technology.
Middlesex Water Company ((MSEX - Free Report) ) plans to invest approximately $387 million in its water and wastewater infrastructure over the next three years. In April 2025, MSEX’s unit Tidewater Utilities, Inc. acquired the water assets of the Town of Ocean View (“TOV”) in Sussex County, DE, for $4.6 million. The acquisition of TOV’s assets will expand Middlesex Water’s operation in Delaware and add 900 customers to its existing base.
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American Water's Unit Receives Funding to Upgrade Water Assets
Key Takeaways
American Water Works Company ((AWK - Free Report) ) announced that its unit, Pennsylvania American Water, received grants and low-interest loans from the Pennsylvania Infrastructure Investment Authority (“PENNVEST”) to upgrade four water infrastructure projects. The total grant is worth $64.3 million and allows the company to upgrade the infrastructure and efficiently serve customers.
Pennsylvania American Water makes investments regularly to upgrade and maintain its existing water and wastewater infrastructure to provide reliable 24x7 service to its customers. In 2024, Pennsylvania American Water invested $675 million in infrastructure upgrades. Out of which $583 million was invested in its water systems and $92million in wastewater infrastructure.
Aging Water Industry Needs Regular Investments
The U.S. water and wastewater infrastructure is deteriorating, with water main breaks occurring every few minutes, according to the American Society of Civil Engineers. The Environmental Protection Agency estimates that $1.25 trillion in investments will be needed over the next 20 years to maintain and upgrade drinking water, wastewater and stormwater systems.
The above finding from the agencies indicates that regular investment is essential to upgrade the aging United States water and wastewater infrastructure, which is quite essential. The government and the private operators should take necessary steps to maintain the 2.2 million miles of aging pipelines spread across the United States.
Investments & Consolidation in the Fragmented Industry
The U.S. water industry remains deeply fragmented, with more than 50,000 community water systems and 14,000 wastewater treatment facilities. The water utilities are making regular investments to upgrade the water and wastewater infrastructure, but the deeply fragmented water industry is a big challenge, as the small utilities with limited financial capability are unable to make necessary investments to upgrade the aging assets.
So, the relatively large water utilities are acquiring the small utilities and taking initiatives to make essential investments to upgrade the aging assets.
American Water Works completed six acquisitions in three states as of July 31, 2025. The pending 20 acquisitions (as of July 31, 2025), when completed, will add another 40,650 consumers to its customer base. Looking ahead, the company intends to invest between $17 billion and $18 billion over the 2025-2029 period and approximately $40 billion to $42 billion between 2025 and 2034.
California Water Service Group ((CWT - Free Report) ) makes strategic acquisitions and targets new markets in high-growth regions. The company’s subsidiary, California Water Service, recently signed an agreement with an affiliate of DMB Development to own and operate the wastewater and recycled water systems of Silverwood. California Water Service Group plans to invest $610 million and $760 million in 2025 and 2026, respectively, to further strengthen its operations.
Essential Utilities ((WTRG - Free Report) ) is pursuing acquisitions as part of its growth strategy. The company has signed purchase agreements for additional water and wastewater systems in Pennsylvania, Texas and Ohio that are pending closing and expected to serve more than 200,000 equivalent retail customers. Essential Utilities also plans to invest $7.8 billion through 2025-2029 to improve the water and natural gas systems and better serve customers using enhanced information technology.
Middlesex Water Company ((MSEX - Free Report) ) plans to invest approximately $387 million in its water and wastewater infrastructure over the next three years. In April 2025, MSEX’s unit Tidewater Utilities, Inc. acquired the water assets of the Town of Ocean View (“TOV”) in Sussex County, DE, for $4.6 million. The acquisition of TOV’s assets will expand Middlesex Water’s operation in Delaware and add 900 customers to its existing base.