American Water Works : Clay County Commission Approves West Virginia American Water's Acquisition of Queen Shoals PSD Water System

Laura Martin, External Affairs Manager Laura.Martin@amwater.com

Office: (304) 340-2089

Mobile: (304) 932-7158

www.westvirginiaamwater.com

Queen Shoals PSD purchases water from West Virginia American Water to re-sell to its 215 customers in and around the communities of Bomont, Glen, Odessa, Queen Shoals and Valley View Drive in western Clay County. West Virginia American Water provides water through an interconnection with the company's Kanawha Valley system, but QSPSD owns its water distribution system and is responsible for operations, maintenance, billing and rates.

Queen Shoals PSD experienced extreme duress this summer when the June flooding destroyed a portion of its service area and decimated miles of roads and water lines. Knowing QSPSD had no ability to recover in a timely manner, West Virginia American Water provided emergency assistance to help restore water service to QSPSD customers. This assistance included restoring

2.5 miles of roads and creek banks to cover multiple areas of exposed water lines and provide access for construction, and installing 1500 feet of temporary water main to bypass areas where the existing main was damaged or missing.

"Small water systems across the state often struggle to keep up with the operational, maintenance and business demands of running a water system, and we know the hardship this can cause for utility managers and customers," said Jeffrey McIntyre, president of West Virginia American Water. "We were pleased to assist Queen Shoals PSD when they faced dire straits following this summer's devastating floods, and we are equally pleased to become the long-term, sustainable

water utility solution for this community and its citizens who already rely on us for clean, safe water."

West Virginia American Water and QSPSD will jointly petition the Public Service Commission (PSC) of West Virginia for approval of the acquisition in the coming months. Upon final PSC approval, Queen Shoals PSD's customers will become customers of West Virginia American Water, paying the company's standard rates as set by the PSC. Certain low income customers may qualify for an automatic 20 percent discount through the company's Special Reduced Rate program.

West Virginia American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water services to approximately 540,000 people. With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly-traded water and wastewater utility company. The company employs more than 6,700 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada. More information can be found by visiting www.amwater.com.