American Water Works' California Unit Prepares for Dry Months

Group 1: ASR Program and Water Supply Management - California American Water, a unit of American Water Works, is implementing the Aquifer Storage and Recovery (ASR) Program to ensure a reliable water supply during dry months by capturing and treating excess rainwater [1][2] - The ASR Program is a cost-effective water resource management technique that allows for underground water storage during periods of abundance, avoiding evaporation losses and providing emergency supplies [3][11] - The program is expected to enhance customer retention and expand the customer base by meeting the rising demand for water [4] Group 2: Infrastructure Investments - The U.S. water and wastewater infrastructure is deteriorating, with frequent water main breaks leading to wastage and contamination [5] - American Water Works plans to invest $3.7 billion in infrastructure upgrades in 2026, with a long-term capital expenditure plan of $19-$20 billion from 2026 to 2030 and $46-$48 billion from 2026 to 2035 [6][11] - The Environmental Protection Agency estimates that $1.25 trillion will be needed over the next 20 years for maintaining and upgrading water systems [7] Group 3: Industry Investment Trends - Other water utilities, such as Essential Utilities and California Water Service Group, are also making significant investments to upgrade aging infrastructure [8] - Essential Utilities plans to invest $7.8 billion from 2025 to 2029 for rehabilitating its water and natural gas pipeline systems [9] - California Water Service Group intends to invest between $450 million and $550 million in 2025 to strengthen its operations and believes its underground water aquifers can meet future demand [10]