CALIFORNIA AMERICAN WATER VOICES SUPPORT FOR RECYCLED WATER PROJECT

PACIFIC GROVE, Calif. (January 21, 2015) – California American Water president Rob MacLean filed testimony this week with the California Public Utilities Commission in support of the Ground Water Replenishment project known as Pure Water Monterey.

The groundwater project is one of three proposed components for the Monterey Peninsula Water Supply Project, which is currently pending before the CPUC. If approved, the groundwater project would enable California American Water to reduce the size of its proposed desalination facility and the project’s overall carbon footprint. In his testimony filed this week, MacLean said the groundwater project carries with it potential positive externalities like scheduling advantages and reduced environmental impacts that make it a superior option to a larger desalination plant even if its construction costs are the same or marginally higher.

“This project helps to diversify our water supply portfolio and brings many environmental benefits,” said California American Water president Rob MacLean. “By maximizing recycled water opportunities, we will be able to decrease the size of our proposed desalination plant and reduce our energy footprint. We are hopeful the CPUC analysis of the project will demonstrate it to be financially beneficial to customers as well the numerous advantages it has over building a larger desal plant. ”

California American Water has agreed in principle to the terms of a water purchase agreement drafted earlier this month with the Monterey Peninsula Water Management District and the Monterey Regional Water Pollution Control Agency. The agreement provides for delivery of 3,500 acre-feet per year of advanced-treated, recycled water to serve as a key component of the future water supply for the Monterey Peninsula.

The Monterey Peninsula Water Management District and Monterey Regional Water Pollution Control Agency recently completed the required environmental study for the Pure Water Monterey project, which will inject highly purified water into the Seaside Groundwater Basin. The water will undergo a four-step, advanced water purification process and over the long term will help to improve the water quality of the Seaside Basin as well as reduce discharge into the Monterey Bay National Marine Sanctuary.

California American Water’s proposed Monterey Peninsula Water Supply Project consists of a 6.4 million gallon per day seawater desalination facility, water purchased from the Pure Water Monterey project, and expanded underground storage of excess winter river flows. When combined with existing supplies, including groundwater, and 300 acre-feet a year from the Sand City desalination facility, the project will meet the water demands of the Monterey Peninsula community and reduce production from the Carmel River, home to threatened species. The Monterey Peninsula Water Supply Project is expected to be complete in 2019. Deliveries of water from Pure Water Monterey are expected to begin in July of that year.

The final water purchase agreement will be submitted to the California Public Utilities Commission, which is reviewing the Monterey Peninsula Water Supply Project on January 22. The Commission is expected to issue its decision on the Monterey Peninsula Water Supply Project, including approval of the Pure Water Monterey purchase agreement, by the end of the year. For more information on the Monterey Peninsula Water Supply project, visit www.watersupplyproject.org.

California American Water, a subsidiary of American Water Works Company, Inc. (NYSE: AWK), provides high-quality and reliable water and/or wastewater services to approximately 600,000 people.

Founded in 1886, American Water Works Company is the largest and geographically diversified publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,800 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in more than 47 states, and Ontario, Canada. More information can be found by visiting www.amwater.com.