U.S. Markets closed
  • S&P 500

    4,538.43
    -38.67 (-0.84%)
     
  • Dow 30

    34,580.08
    -59.71 (-0.17%)
     
  • Nasdaq

    15,085.47
    -295.85 (-1.92%)
     
  • Russell 2000

    2,159.31
    -47.02 (-2.13%)
     
  • Crude Oil

    66.22
    -0.28 (-0.42%)
     
  • Gold

    1,782.10
    +21.40 (+1.22%)
     
  • Silver

    22.57
    +0.25 (+1.12%)
     
  • EUR/USD

    1.1317
    +0.0012 (+0.1019%)
     
  • 10-Yr Bond

    1.3430
    -0.1050 (-7.25%)
     
  • Vix

    30.67
    +2.72 (+9.73%)
     
  • GBP/USD

    1.3235
    -0.0067 (-0.5029%)
     
  • USD/JPY

    112.8000
    -0.4090 (-0.3613%)
     
  • BTC-USD

    49,429.45
    +2,041.18 (+4.31%)
     
  • CMC Crypto 200

    1,367.14
    -74.62 (-5.18%)
     
  • FTSE 100

    7,122.32
    -6.89 (-0.10%)
     
  • Nikkei 225

    28,029.57
    +276.20 (+1.00%)
     

American Water (AWK) Arm to Spend $8.7M on Wastewater Plant

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

American Water Works AWK announced that its unit, Pennsylvania American Water, is going to invest $8.7 million for the construction of a new wastewater treatment plant to replace the old Turbotville Wastewater Treatment Plant. The old wastewater plant has reached the end of its useful service life and needs replacement.

The new wastewater treatment plant construction is expected to be completed in late 2022. The new treatment plant will utilize latest technology to treat wastewater. Once the new plant is ready for service, the company will demolish the old plant. Markedly, services to customers will not be impacted during the construction phase.

Pennsylvania American Water regularly invests to upgrade, maintain, and expand the existing water and wastewater infrastructure. These upgrades ensure high-quality water and wastewater services for customers in the state. Pennsylvania American Water provides high quality and reliable water and wastewater services to nearly 2.4 million people.

Water Industry 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 investments to upgrade their infrastructure for providing uninterrupted services to customers.

Essential Utilities WTRG is 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 plans to invest in the range of $270-$300 million in 2021 to strengthen its water and wastewater infrastructure. Middlesex Water MSEX — 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.

Zacks Investment Research
Zacks Investment Research


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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

American Water Works Company, Inc. (AWK) : Free Stock Analysis Report

California Water Service Group (CWT) : Free Stock Analysis Report

Middlesex Water Company (MSEX) : Free Stock Analysis Report

Essential Utilities Inc. (WTRG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research