Challenges In The Water Industry: FOR IMMEDIATE RELEASE CONTACT: Josephine Posti Pennsylvania American Water T: 724-743-3103

M: 412-667-1479

Josephine.posti@amwater.com

PENNSYLVANIA AMERICAN WATER LAUNCHES $225,000 UPGRADE TO PROTECT PUNXSUTAWNEY PLANT FROM FLOODING MCMURRAY, Pa. (December 9, 2014) - Pennsylvania American Water announced today the start of construction to install a concrete wall to protect the company's Punxsutawney Water Treatment Plant from flooding during extreme wet weather events. The cost of this plant improvement is approximately

$225,000.
The new four-foot high flood protection wall consists of cast-in-place concrete along with two sections of removable flood panels. It will enclose the raw water mix area, the plant's rapid mix chamber, a flocculation basin and a sedimentation basin. The enclosed equipment and basins are used in the removal of suspended particles prior to filtration. Additional protection will be provided to the plant's chemical feed facilities. The flood wall will protect these facilities from flooding during large storm events that could potentially result in temporary closure of the treatment plant.
"Pennsylvania American Water prudently invests in improvements at our water treatment plants based on best practices in the industry," said Jed Fiscus, Pennsylvania American Water's project manager. "Protecting our plant from being impacted by storm events helps to ensure that our Punxsutawney customers continue to receive reliable water service."
Construction of the plant improvements are underway and are expected to be complete by the end of this year. For more information, contact Pennsylvania American Water's customer service center at 1-800-
565-7292.
Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), is the largest water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately
2.1 million people. Founded in 1886, American Water (NYSE: AWK) is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,600 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 14 million people in more than 40 states and parts of Canada. More information can be found at www.amwater.com.

This release contains forward looking statements, including, among others, our plan to continue our long-term strategy of capital investment in our systems. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic

business conditions, unfavorable weather conditions, changes in regulations or regulatory treatment and

availability and the cost of capital. We undertake no obligation to publicly update or revise any forward-looking statement.

# # #

PRESS RELEASE www.amwater.com

distributed by