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American Water Arm to Invest $14.2M to Upgrade Infrastructure

Zacks Equity Research

American Water Works AWK announced that its subsidiary, Pennsylvania American Water will invest $14.2 million in three infrastructure projects across its service areas amid the novel coronavirus threat. These investments are directed to replace and upgrade the water lines, thereby enhancing resiliency of its services and lowering the possibility of pipeline breaks.

Pennsylvania American Water provides water and wastewater services to 2.4 million people in its service territories. The projects include installation of nearly 7 miles of water main in the City of Scranton, upgrade of more than 18,000 feet of water main in Wilkes-Barre and replacement of 5,000 feet of aging cast iron water main in its Royersford/Upper Providence service area.

American Water has been ensuring 24x7 potable water and wastewater services to nearly 15 million people across the United States. Its subsidiaries New Jersey American Water and Illinois American Water are continuing with repair and infrastructure upgrade work to ensure uninterrupted water and wastewater services to customers.

Water Utilities’ Fight Against COVID-19

Per the World Health Organization, washing hands with soap at regular intervals and maintaining social distancing are crucial measures to prevent coronavirus. The global pandemic has impacted lives financially, with millions across the globe being in distress. Governments across the globe are trying to break the chain by announcing lockdown. They are also providing economic stimulus package to help people.

Utilities are doing their bit to help millions of customers fight COVID-19. Utilities like California American Water CWT and American Water Works, among others, have already announced to continue providing services to customers, even if they fail to repay dues amid this unprecedented economic crisis resulting from the virus outbreak.

Pipeline breakage is one of the major reasons behind water supply interruption in the United States and such events can hamper personal hygiene of users. Water utilities are working round the clock to upgrade and maintain the water lines for ensuring ongoing supply of potable water. Water utility Middlesex Water Company MSEX has announced that it will continue with the ongoing construction projects to maintain and enhance the reliability and resiliency of its water treatment and distribution systems.

Another water utility Artesian Resources Corporation ARTNA is encouraging customers to utilize methods that accommodate social distancing. These small contributions from the water utilities will help millions of customers to maintain hygiene and fight COVID-19.

Price Performance

Shares of American Water have outperformed the industry in the past 12 months.



Zacks Rank
 

Currently, American Water has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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