American Water (NYSE:AWK) 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 (NYSE:WTRG) 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 (NYSE:CWT) 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.
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.
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.
See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>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 (NASDAQ: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