Pennsylvania American Water Announces $16.5 Million Investment to Construct and Rehab Water Storage Tanks

  Pennsylvania American Water Announces $16.5 Million Investment to Construct
  and Rehab Water Storage Tanks

Business Wire

HERSHEY, Pa. -- March 19, 2013

Pennsylvania American Water unveiled today its 2013 construction schedule to
build nine new water storage tanks, as well as rehabilitate 14 existing tanks
throughout the commonwealth. The new tank construction will provide increased
storage capacity to meet customer demand and improve fire protection, while
the company’s rehab program of inspecting, sandblasting and repainting the
existing tanks will extend their service life and protect water quality.

The estimated cost of the new tank construction is $11.5 million, and the
rehab projects total approximately $5 million for a combined capital
investment of nearly $16.5 million.

“Storage tanks are a critical component of our water infrastructure, because
they ensure that adequate, reliable water supplies are always available for
the communities we serve,” said President Kathy L. Pape of Pennsylvania
American Water, noting that the company currently owns and maintains more than
275 storage structures. “The new tanks we’re building are necessary to meet
customer demands for reliable water service and fire protection.”

New tank construction is planned in the following communities:

  *North Annville Township, Lebanon County - 750,000-gallon concrete tank,
    scheduled for completion by fall. Estimated cost $1.4 million
  *Susquehanna Depot Borough, Susquehanna County – 680,000-gallon concrete
    tank, scheduled for completion by year end. Estimated cost $2.5 million
  *Pittston Township, Luzerne County – 1,000,000-gallon steel tank, scheduled
    for completion by year end. Estimated cost $1.35 million
  *Newton Township, Lackawanna County – 400,000-gallon elevated steel tank,
    scheduled for completion by year end. Estimated Cost $1.6 million.
  *Kane Borough, McKeon County - 600,000-gallon elevated steel tank,
    scheduled for completion by year end. Estimated cost $1.7 million
  *Delaware Township (Hickory), Pike County - 100,000-gallon steel tank,
    scheduled for completion by year end. Estimated cost $490,000
  *Delaware Township (Silver), Pike County - 135,000-gallon steel tank,
    scheduled for completion by year end. Estimated cost $500,000
  *East Buffalo Township, Union County - 500,000-gallon elevated steel tank,
    scheduled for completion by year end. Estimated cost $ 1.75 million.
  *Ellwood City, Lawrence County - 200,000-gallon standpipe to supplement
    existing tank, scheduled for completion in third quarter 2013. Estimated
    cost $250,000.

Pape said, “Our rehabilitation projects not only extend the tanks’ lifespan,
but they also represent a significant cost savings in contrast to replacing
the structures.” Pennsylvania American Water will rehabilitate existing tanks
in the following areas over the next several months:

  *Green Tree Borough, Allegheny County – 2.5 million-gallon capacity
    elevated tank
  *Liberty Borough, Allegheny County – 560,000-gallon capacity tank
  *South Union Township, Fayette County - 500,000-gallon capacity Hopwood
    Tank
  *Connoquenessing Township, Butler County – 250,000-gallon capacity elevated
    tank
  *South Fayette Township, Allegheny County – 1.5 million-gallon capacity
    Mayview Tank North and 1.5 million-gallon capacity Mayview Tank South
  *Lower Makefield Township, Bucks County – 1 million-gallon capacity Big Oak
    Tank
  *Limerick Township, Montgomery County – 1 million-gallon capacity tank
  *Pen Argyl Borough, Northampton County – 500,000-gallon capacity tank
  *Pittston Township, Luzerne County –, 250,000-gallon capacity Vogelbacher
    Tank #2
  *Montrose Borough, Susquehanna County – 380,000-gallon capacity tank
  *Scranton, Lackawanna County – 1.9 million-gallon capacity Williams Bridge
    (Oakmont) Tank
  *Fell Township, Lackawanna County – 750,000-gallon capacity Fallbrook Tank,
  *Scranton, Lackawanna County – 2.5 million-gallon capacity Lake Scranton
    South Tank

The two South Fayette Township tanks in the Pittsburgh area were previously
owned by Mayview State Hospital and recently acquired by Pennsylvania American
Water to increase its system’s storage capacity by 3 million gallons. This
increased capacity provides redundancy in the water system to avoid service
interruptions in South Hills communities, as well as improve storage capacity
for fire protection.

Rehabilitation 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 rehab work, 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 2.2 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 6,700 dedicated professionals who provide drinking
water, wastewater and other related services to an estimated 14 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.

Contact:

Pennsylvania American Water
Terry Maenza
T: 610-670-7789 ext. 1009
M:610-849-6484
terry.maenza@amwater.com
or
Josephine Posti
T: 724-743-3103
M: 412-667-1479
josephine.posti@amwater.com
 
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