American Water Receives Award from National Council for Public-Private Partnerships

American Water (NYSE: AWK), the largest investor-owned U.S. water and wastewater utility company, announced today that it has received the 2010 Public-Private Partnership Award from the National Council for Public-Private Partnerships (NCPPP). These awards recognize exemplary projects and services that illustrate the best practices and innovative approaches in the use of public-private partnerships (PPP). The NCPPP awarded American Water the honor in the “Innovation” category for the company’s innovative approach of a PPP with the city of Fillmore to design, build and operate the Fillmore Water Recycling Plant.

“We are proud to receive the NCPPP Award, and we share this honor with our colleagues from the city of Fillmore,” said Mark Strauss, senior vice president of Corporate Strategy and Business Development for American Water. “The Fillmore plant illustrates how public-private partnerships can help communities tackle an infrastructure challenge while maximizing efficiency and value.”

In response to a consent degree order to dramatically improve the quality of treated wastewater discharges to the Santa Clara River, the city of Fillmore elected to contract with American Water to build a new, state-of-the-art water recycling plant that would end the practice of river discharges and enable development of a full-scale water reuse system to benefit many areas of the town. The result is a facility that meets the stringent requirements of federal and state regulations as a zero-discharge facility and a water recycling program that irrigates school grounds, parks and other green areas.

The plant currently produces 1 million gallons of water a day that meets the standards for unrestricted reuse irrigation purposes. The current irrigation system provides 200,000 gallons per day to two public schools, the new Two Rivers Park and a new greenbelt along a historic railroad in downtown Fillmore. About 800,000 gallons per day is discharged to percolation ponds and an underground effluent disposal system that provides groundwater recharge. The irrigation system has reduced the use of potable water sufficiently enough to allow the city to postpone drilling a new well and has helped preserve its limited supply of quality potable water.

The plant also features advanced technology that maximizes energy efficiency, helping to keep costs down. A flow-equalization system minimizes water flow during the day, when cost and energy use is highest. Wastewater is cycled back into the plant where it is treated during off peak hours, when power demand and cost are lower.

Presentation of the awards will be made on November 17 at the NCPPP Annual Awards Banquet, held in conjunction with the Council’s Annual Meeting in Arlington, Va. The NCPPP is a non-profit educational institute with membership from both public and private sectors, that promotes the use of PPPs where appropriate and the use of their best practices. Information about the Council and its activities can be found at www.ncppp.org.

Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, NJ, the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 16 million people in 35 states, and Ontario and Manitoba, Canada. More information can be found by visiting www.amwater.com