Information
PACIFIC GROVE, Calif., Jan. 20, 2026 /PRNewswire/ -- Building upon over two decades of success, California American Water continues its Aquifer Storage and Recovery (ASR) program during the rainy season to capture and
Original sourceAI Summary
California American Water is enhancing its water infrastructure through its Aquifer Storage and Recovery program, capturing over 240-acre feet of water since late December 2025. This initiative is crucial for improving water resilience in drought-prone California, indicating continued investment in sustainable practices that may enhance AWK's market position and profitability.
Sentiment Rationale
The ASR program enhances AWK's service reliability and community goodwill, potentially leading to customer base expansion and regulatory support, translating to improved investor confidence. Historical initiatives aiding in community water security have typically led to favorable stock performance.
Trading Thesis
Invest in AWK for potential price appreciation driven by stable water supply initiatives in California.
Market-Moving
- California American's ASR program enhances water security amid drought conditions.
- Increased water storage capacity may positively influence AWK's service reliability.
- Partnerships for water resilience could attract future investment in AWK.
- Regulatory support for water conservation initiatives boosts AWK's long-term growth.
Key Facts
- California American Water's ASR program captures excess water for drought use.
- Over 240-acre feet of water saved since December 2025.
- ASR program combines with water recycling and desalination for resilience.
- California remains drought-prone; water conservation is crucial.
- Successful ASR execution relies on partnerships with local agencies.
Companies Mentioned
- California American Water (N/A): Subsidiary of AWK focusing on water supply in California.
- American Water Works Company, Inc. (AWK): Largest regulated water and wastewater utility, crucial for community water resilience.
Industry News
This article falls under 'Industry News' as it discusses the operational efforts of California American Water. It highlights the water utility sector's response to environmental challenges, positioning AWK favorably within a critical infrastructure category as it strives for sustainable water management.
PACIFIC GROVE, Calif., Jan. 20, 2026 /PRNewswire/ -- Building upon over two decades of success, California American Water continues its Aquifer Storage and Recovery (ASR) program during the rainy season to capture and store excess water for use during periods of drought.
The aquifer storage and recovery process captures excess winter flows from the Carmel River and strategically replenishes underground aquifers. ASR operates through a network of well, pump and booster stations along the Carmel River, as well as a conveyance infrastructure installed along General Jim Moore Boulevard, which transports ASR water for storage in the Seaside Groundwater Basin.
"The unique hydrogeology of this area allows us to make good use of the sedimentary rock beneath our feet, as these aquifers act as natural subsurface storage reservoirs," said Spencer Vartanian, Director of Operations for California American Water in Pacific Grove. "Above ground, we prepare our critical infrastructure to help ensure it's in good working order and that we capture and store as much water as possible for later use."
As mandated by the state, California American Water's ASR program only captures excess Carmel River flows during heavy rainfall. With increasing periods of drought, the opportunity for ASR recharge opportunities may be irregular. By combining the ASR program with water recycling and the approved desalination project, the company is investing in reliable and resilient water infrastructure and storage to better serve the community. Despite recent rainfall, water conservation remains crucial in California, as the state prepares for potential future droughts.
Since the ASR season commenced on December 26, 2025, California American Water has captured over 240-acre feet of water (approximately 78 million gallons) and injected it into the Seaside Groundwater Basin for future use. For water year 2024-2025, over 715-acre feet of water (approximately 233 million gallons) was stored for future use through the ASR program.
"By working collaboratively with our partner agencies, we're executing on the necessary functions for a successful ASR season," continued Vartanian. "These important partnerships help ensure that our water resilience strategy continues to meet our community's water needs."
About American Water
American Water (NYSE:AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable, and affordable drinking water and wastewater services to more than 14 million people across 14 regulated jurisdictions and 18 military installations. American Water's 6,700 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors, and other stakeholders.
For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.
About California American Water
California American Water, a subsidiary of American Water, provides high-quality and reliable water and wastewater services to approximately 700,000 people.
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SOURCE American Water