Miles and Miles of New Water Mains in 2013

  Miles and Miles of New Water Mains in 2013

 New Jersey American Water replaced more than 300,000 feet of water main last
                                     year

Business Wire

VOORHEES, N.J. -- January 9, 2014

Miles of old water main, some of which date back to before World War I, made
way for new mains as part of the hundreds of projects completed in 2013
through New Jersey American Water’s distribution system improvement effort.
Nearly 300,000 feet of water main was installed or rehabilitated in 2013, as
the company invested more than $72.7 million to renew its infrastructure.

With nearly 9,000 miles of water and sewer mains spread throughout the 188
communities it serves, New Jersey American Water – like water utilities
nationwide – faces the ongoing challenge of replacing aging infrastructure.
Approximately 15 percent of the company’s pipes are 100 years old or older,
and those pipes are nearing the end of their problem-free life. Replacing and
upgrading older mains improves water quality for customers as well as
increases water pressures and improves reliable fire flow.

In more than 70 municipalities, New Jersey American crews installed new pumps,
hydrants, valves, and mains. More than 38,000 feet of pipes were “cleaned and
lined,” which involves scrubbing the insides of mains to remove sediment,
lining the pipes' inner walls with a layer of cement and replacing associated
valves and hydrants, thereby reinforcing the pipes and extending their useful
life.

In 2014, New Jersey American Water will continue to aggressively upgrade its
water distribution system, replacing hundreds of thousands of feet of
additional water main in more of its service areas.

“This past year we were able to step up the pace of replacing or
rehabilitating old water mains that had outlived their intended usefulness and
in many cases, were somewhat undersized to serve communities and provide the
increased fire flow that is vital to protect homes and businesses,” said
Suzanne Chiavari, practice lead for American Water engineering, who oversaw
the implementation of the distribution system improvements. “We now have an
enhanced construction program that enables us to tackle aging infrastructure
in a much more immediate way and maintain reliable water service to our
customers.”

New Jersey American Water’s distribution system improvement effort was
implemented after the state Board of Public Utilities allowed the state’s
water utilities to accelerate the rate at which they can revive water
infrastructure. This increase in renewal activity is paid for with a surcharge
on customers’ water bills called the Distribution System Improvement Charge
(DSIC). Only the replacement or rehabilitation of water infrastructure
projects that have been previously reviewed and approved by the state is
eligible for the DSIC.

Visit facebook.com/newjerseyamericanwater for future updates on New Jersey
American Water distribution improvements.

New Jersey American Water, a wholly owned subsidiary of American Water (NYSE:
AWK) is the investor-owned water utility in the state, providing high-quality
and reliable water and/or wastewater services to approximately 2.5 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, as well as parts of Canada. More
information can be found by visiting www.amwater.com.

Contact:

New Jersey American Water
Richard Barnes, 856-782-2371
richard.barnes@amwater.com