AMERICAN WATER WORKS COMPANY, INC. M: 724-944-5148
Gary.lobaugh@amwater.com
PENNSYLVANIA AMERICAN WATER SECURES PENNVEST LOANS FOR PROJECTS TO RESOLVE WATER QUALITY CONCERNS IN WASHINGTON AND YORK COUNTY COMMUNITIES HERSHEY, Pa. (July 22, 2012) - Pennsylvania American Water announced today the commitment of low- interest financing from the Pennsylvania Infrastructure Investment Authority (PENNVEST) for water main extension projects in Washington and York Counties. The approximately $13.7 million in low-interest financing will enable the company to bring public water service to hundreds of households that currently depend on unreliable private wells, springs and cisterns for drinking water.
"We are extremely pleased with PENNVEST's decision, as this financing will enable us to extend water mains to residents now living without adequate access to public water service," said Kathy L. Pape, president of Pennsylvania American Water. "When completed, the projects will provide these families with more reliable service, better quality water and improved fire protection."
The company secured an $8.37 million loan that will support 15 separate waterline extension projects in Washington County. The construction projects, totaling approximately $9.8 million, include the extension of nearly 19 miles of main to around 230 potential households in the following townships: Amwell, Buffalo, Cecil, Chartiers, Jefferson, Mount Pleasant, North Strabane and Smith. The company expects to complete construction of the new mains by summer 2015.
PENNVEST also awarded Pennsylvania American Water a $5.35 million loan that will fund the construction of waterline extensions spanning 6.4 miles to bring public water service to 350 households in Fairview Township, York County, where a number of wells contaminated by malfunctioning on-lot septic systems. Construction will begin this fall, and the company expects to complete the project by the end of 2015.
The terms of the PENNVEST loan for the Washington County project are 1.439 percent interest for the first five years and 2.027 percent for the balance of the 20-year loan, while the terms for the York County project are 1.356 percent interest for the first five years and 1.985 percent for the balance of the 20-year loan.
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.
ESS RELEASE www.amwater.com
PENNSYLVANIA AMERICAN WATER SECURES PENNVEST LOAN TO BRING PUBLIC WATER SERVICE TO WASHINGTON AND YORK COUNTY RESIDENTS -more-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.
# # #
ESS RELEASE www.amwater.com
|
distributed by
|
