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Pennsylvania American Water Shares that Statewide Drought Watches Have Been Lifted

1. Drought watch lifted in Pennsylvania, normal water use resumes. 2. Preceding drought was the driest since 2002, affecting conservation. 3. Customers encouraged to maintain conservation efforts despite lifted restrictions. 4. American Water remains committed to providing reliable water services. 5. Conservation resources available to promote ongoing water efficiency.

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FAQ

Why Bullish?

The lifting of drought restrictions can lead to increased water consumption and associated revenues. Historical data shows revenue growth during similar drought relief periods.

How important is it?

The article directly influences AWK's operational outlook in Pennsylvania, a key market. Positive sentiment surrounding drought recovery supports potential stock price stability.

Why Short Term?

The immediate resumption of normal water usage can boost short-term revenue, but long-term effects depend on ongoing conservation initiatives and weather conditions.

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MECHANICSBURG, Pa.--(BUSINESS WIRE)-- Pennsylvania American Water announced today that the Pennsylvania Department of Environmental Protection (DEP) recently lifted the drought watch for eight remaining counties that were previously under notice, including Berks, Chester, Cumberland, Delaware, Franklin, Lehigh, Philadelphia and Washington. As a result, the entire state is now considered to be in normal condition regarding drought, and customers can resume regular nonessential water use.

“The drought conditions in late 2024 were significant and in some areas were the driest on record since 2002,” reads DEP’s drought information webpage. “Residents should always pay attention to any information they receive from their local water supplier. Varying localized conditions may lead water suppliers or municipalities to ask residents to continue conservation measures.”

Before the July 2 lift, Pennsylvania American Water customers in the affected counties were asked by the utility to voluntarily reduce their nonessential water use by 10-15% (a reduction of approximately 11-16 gallons per day) under DEP’s guidance.

“While our customers may now resume regular water usage, we continue to remind them – and the greater Pennsylvania community – of the importance of ongoing water conservation efforts,” said Brandy Braun, the company’s director of water quality and environmental compliance.

Multiple water conservation resources are available in the Wise Water Use section of Pennsylvania American Water’s website. The company is also 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.

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.

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