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Pennsylvania American Water Asks Customers in 12 Counties to Reduce Nonessential Water Use During Drought Watch Declaration

1. Pennsylvania American Water urges reduced consumption due to drought watch. 2. Residents should cut nonessential water use by 10-15% as requested by DEP. 3. DEP's drought watch affects 12 of 25 counties served by Pennsylvania American Water. 4. Current water supplies are adequate but future conditions may require stricter measures. 5. Conservation resources and tips are provided to assist customers in saving water.

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FAQ

Why Neutral?

While the drought watch may prompt temporary conservation efforts, historical patterns show no drastic long-term impacts on AWK’s stock from similar announcements. Past droughts only modestly influenced utility stock performance, suggesting stability in share value amidst conservation measures.

How important is it?

The importance stems from regulatory response and community engagement during a drought, potentially influencing operations. However, it lacks immediate financial impact due to current supply sufficiency.

Why Short Term?

The immediate response to conservation efforts may affect revenue in the short term but is unlikely to have lasting consequences. Historical droughts in regulated markets have led to temporary fluctuations, but generally restore quickly once conditions normalize.

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Pennsylvania American Water is encouraging customers throughout portions of its statewide service territory to voluntarily reduce their water consumption in response to the drought watch declaration announced this week by the Pennsylvania Department of Environmental Protection (DEP). While the company always encourages wise water use, Pennsylvania American Water is asking residents and businesses to voluntarily reduce their nonessential water use by 10-15% (a reduction of approximately 11-16 gallons per day) in accordance with DEP's guidance.

"We're asking our customers in affected areas to observe the DEP's request and be mindful of their nonessential water use during this drought watch," said Brandy Braun, director of water quality and environmental compliance for Pennsylvania American Water. "Our sources of supply are currently adequate to meet the needs of our customers, but we want to prepare for the potential for more severe conditions that could lead to stricter conservation measures in the future."

Of the 25 counties included in DEP's drought watch declaration, 12 are within areas where Pennsylvania American Water provides water service. Those counties include Beaver, Butler, Clarion, Clearfield, Clinton, Indiana, Jefferson, Lawrence, McKean, Schuylkill, Warren and Washington.

DEP issued the drought declaration on Oct. 6, following a meeting of the Commonwealth Drought Task Force, based on public water supply levels and data related to four indicators: precipitation, surface water flow, groundwater level and soil moisture. According to DEP, a drought watch declaration is the first and least severe level of the state's three drought classifications. Learn more on DEP's drought information webpage.

Pennsylvania American Water offers multiple water conservation resources in the Wise Water Use section of its website. It also is a member of the Alliance for Water Efficiency, which developed an online Water Use Calculator that allows visitors to input water use information specific to their household and offers tips on where they can save water and energy based on that data. The company also periodically shares water conservation tips and reminders with customers through email campaigns, bill enclosures and social media posts.

Below are tips for conserving water inside and outside the home:

  • Run dishwashers and clothes washers only when they are full. If you have a water-saver cycle, use it.
  • Regularly check your toilet, faucets, and pipes for leaks with our free leak detection kits. If you find a leak, have it fixed as soon as possible.
  • Install water-saving showerheads, toilets and faucet aerators.
  • Consider water and energy-efficient appliances. Products and services that have earned the WaterSense label have been certified to be at least 20% more efficient while maintaining performance.
  • Turn off the tap while brushing your teeth or washing dishes in the sink.
  • Water your lawn only when it needs it. When you do, water in the early morning or evening to reduce evaporation.
  • Use a broom instead of a hose to clean your sidewalk, driveway or patio.
  • Set up a rain barrel to be ready to repurpose rain when it does fall. For information, see this Penn State Extension guide.

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 with regulated operations in 14 states and on 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 Pennsylvania American Water

Pennsylvania American Water, a subsidiary of American Water, is the largest regulated water utility in the state, providing safe, clean, reliable and affordable water and wastewater services to approximately 2.4 million people.

Media:

David Misner

Senior Manager, External Communications

717-262-7525

david.misner@amwater.com

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