American Water Works Company AWK announced that its subsidiary, New Jersey American Water will invest $2 million in 2018 to replace the aging water mains in its Millburn service area.
The company aims to replace 6,300 feet of old mains to increase service reliability and improve water flow for residential consumption. This project will also replace 12 fire hydrants and 53 utility-owned service lines along the pipeline route.
Upgrading and replacing the aging infrastructure is an ongoing work for this water utility. This investment is part of a multi-million program to upgrade and replace water lines in more than 100 communities in New Jersey. Last year, the company invested $1.5 million to replace 2,200 feet of old mains in its Millburn service area.
Investment To Upgrade The Aging Infrastructure
The U.S. water infrastructure in quite old, and massive investment is required to upgrade the existing water and wastewater systems. Some of the water mains are nearly a century old and require immediate replacement. Investment of billions of dollars is required to improve the water infrastructure.
The company aims to invest $8.0-$8.6 billion from 2018 through 2022, which will help it to improve earnings by 7-10% per year in the aforesaid period from a 2016 base. In 2018, the company plans to invest in the range of $1.9-$2.1 billion for capital expenditures and acquisitions.
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