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AWK's Unit Installs Treatment Plant to Provide Groundwater
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American Water Works (AWK - Free Report) has announced that its unit, Illinois American Water, completed the construction of a groundwater treatment plant last month. The company invested $10.9 million to construct the groundwater treatment plant on the site of the original water treatment plant, which utilized the Ohio River as the source of water supply.
Switching to groundwater is in the customers’ best interest, as approved by the U.S. Environmental Protection Agency (“EPA”), Illinois EPA and Illinois Commerce Commission. The new groundwater treatment plant project included the installation of a new building that contains pressure filters, chemical rooms, a new laboratory, a plant operator room and all associated water treatment equipment for a groundwater water source.
Shifting to groundwater has its advantage. Ongoing tests confirm the groundwater continues to meet all regulatory water quality standards. The groundwater usage assists the operator in avoiding the impact of flooding in surface water and provides high-quality water to customers.
Investment Necessary in Aging Water Infrastructure
The aging water and wastewater industry needs investments to maintain the high quality of services. Per the U.S. EPA, an estimated investment of $896 billion is necessary to maintain and expand the drinking water and wastewater service to meet the demand in the next 20 years. The massive investment requirement also creates an opportunity for growth among operators in this space.
American Water Works and other water utilities like Essential Utilities (WTRG - Free Report) , California Water Service Group (CWT - Free Report) and Middlesex Water (MSEX - Free Report) have well-chalked-out capital investment plans to strengthen infrastructure.
American Water aims to invest $3.1 billion in 2024, with a major portion utilized for infrastructure improvements in regulated businesses. AWK aims to invest in the range of $16-$17 billion from 2024-2028 and $34-$38 billion in the 2024-2033 period.
Essential Utilities plans to invest $1.3-$1.4 billion in 2024 for more than 5,000 planned projects and $7.2 billion in 2024-2028 to improve water and natural gas systems to better serve its customers with the help of improved information technology.
California Water Service plans to invest more than $380 million in capital expenditures in 2024.
Middlesex Water plans to invest $237 million in 2024-2026 to strengthen its water and wastewater infrastructure to service the company’s customers in a safe, reliable and efficient manner.
The current dividend yield of AWK, WTRG, CWT and MSEX is pegged at 2.14%, 3.34%, 2.02% and 2.06%, respectively, which is better than the Zacks S&P 500 composite’s yield of 1.54%.
American Water’s Share Price Performance
In the past six months, American Water has gained 18.9% compared with the industry’s 15.6% growth.
Image: Bigstock
AWK's Unit Installs Treatment Plant to Provide Groundwater
American Water Works (AWK - Free Report) has announced that its unit, Illinois American Water, completed the construction of a groundwater treatment plant last month. The company invested $10.9 million to construct the groundwater treatment plant on the site of the original water treatment plant, which utilized the Ohio River as the source of water supply.
Switching to groundwater is in the customers’ best interest, as approved by the U.S. Environmental Protection Agency (“EPA”), Illinois EPA and Illinois Commerce Commission. The new groundwater treatment plant project included the installation of a new building that contains pressure filters, chemical rooms, a new laboratory, a plant operator room and all associated water treatment equipment for a groundwater water source.
Shifting to groundwater has its advantage. Ongoing tests confirm the groundwater continues to meet all regulatory water quality standards. The groundwater usage assists the operator in avoiding the impact of flooding in surface water and provides high-quality water to customers.
Investment Necessary in Aging Water Infrastructure
The aging water and wastewater industry needs investments to maintain the high quality of services. Per the U.S. EPA, an estimated investment of $896 billion is necessary to maintain and expand the drinking water and wastewater service to meet the demand in the next 20 years. The massive investment requirement also creates an opportunity for growth among operators in this space.
American Water Works and other water utilities like Essential Utilities (WTRG - Free Report) , California Water Service Group (CWT - Free Report) and Middlesex Water (MSEX - Free Report) have well-chalked-out capital investment plans to strengthen infrastructure.
American Water aims to invest $3.1 billion in 2024, with a major portion utilized for infrastructure improvements in regulated businesses. AWK aims to invest in the range of $16-$17 billion from 2024-2028 and $34-$38 billion in the 2024-2033 period.
Essential Utilities plans to invest $1.3-$1.4 billion in 2024 for more than 5,000 planned projects and $7.2 billion in 2024-2028 to improve water and natural gas systems to better serve its customers with the help of improved information technology.
California Water Service plans to invest more than $380 million in capital expenditures in 2024.
Middlesex Water plans to invest $237 million in 2024-2026 to strengthen its water and wastewater infrastructure to service the company’s customers in a safe, reliable and efficient manner.
The current dividend yield of AWK, WTRG, CWT and MSEX is pegged at 2.14%, 3.34%, 2.02% and 2.06%, respectively, which is better than the Zacks S&P 500 composite’s yield of 1.54%.
American Water’s Share Price Performance
In the past six months, American Water has gained 18.9% compared with the industry’s 15.6% growth.
Image Source: Zacks Investment Research
Zacks Rank
American Water currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here