California American Water & Monterey Peninsula Water Management District’s Rebate Program Funds Expended

California American Water and the Monterey Peninsula Water Management District have announced that demand for their joint rebate program, which provides water users on the Monterey Peninsula with cash incentives for purchasing and installing water-saving appliances and landscaping equipment, has exceeded the established budget, and that rebates will be temporarily suspended until 2012, when new funding is expected.

Despite the funding freeze, officials encourage residents and businesses to continue efforts to save water through retrofitting and efficient outdoor use.

“Although we do not have funds to issue rebates at this time, the installation of water-savings appliances pay for themselves through lower water, electric and gas bills,” said Stephanie Pintar, Water Demand Manager for the Monterey Peninsula Water Management District. “Because of the efforts by people on the Monterey Peninsula to save water, we’ve been able to comply, as a community, with state and court restrictions on our local water supply and to avoid water rationing and fines.”

California American Water and the Monterey Peninsula Water Management District were authorized to grant $969,925 in rebates for high efficiency toilets, washing machines, dishwashers, on-demand hot water systems, cisterns, smart irrigation controllers and other water-saving devices by the California Public Utilities Commission in 2009. With permission from the CPUC, more than $250,000 in additional residential and commercial rebates was granted this year. Since 1997, California American Water and the Monterey Peninsula Water Management District have provided more than $1.9 million in rebate incentives to California American Water customers. More than 100 million gallons of water are saved each year as a result of the program.

Applications for rebates will not be accepted until additional funding for the program is approved by the California Public Utilities Commission. California American Water and the Monterey Peninsula Water Management District have applied to the Commission for authorization to continue the rebate program in the next funding cycle. A positive decision on this request is expected at the end of 2011 and would allow the program to begin again in 2012.

Water users with questions concerning suspension of the rebate program are encouraged to contact the Monterey Peninsula Water Management District’s conservation office at (831) 658-5601.

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

Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in more than 30 states, as well as parts of Canada. More information can be found by visiting www.amwater.com.

In 2011, American Water is celebrating its 125th anniversary with a yearlong campaign to promote water efficiency and the importance of protecting water from source to tap. To learn more, visit www.amwater125.com.