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CPUC Approves Desalination Project

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California American Water Moves Forward on Water Supply Project

The California Public Utilities Commission (CPUC) yesterday voted to
approve the Monterey Peninsula Water Supply Project, a desalination
project on the coast near Monterey. California American Water, a
publicly traded utility company, is expected to complete the project by
2021.

"Yesterdays's approval brings us closer to solving the Monterey
Peninsula's water supply issues," said Rich Svindland, president of the
company. "It is a huge step forward towards establishing a sustainable
water supply that will meet the community's water needs and protect the
Carmel River."

The state requires a significant reduction in pumping of the Carmel
River by 2021. Currently the river supplies the region with the majority
of its water.

An environmental review conducted this year by the CPUC and the Monterey
Bay National Marine Sanctuary found the project to be the least
impactful and most environmentally beneficial way to address the area's
water shortage. It consists of a desalination plant, expansion of the
existing aquifer storage and recovery program, and purchase of recycled
water.

The project features "slant wells," groundwater wells drilled at a
15-20% angle. In contrast to "open ocean" intake systems, slant wells
virtually eliminate any harm to sea life.

The project will protect the community from the effects of future
droughts by creating a sustainable water supply without relying on
rainfall or groundwater. It will cost an estimated $329 million. For
more information on the project, visit www.watersupplyproject.org.

California American Water, a subsidiary of American Water (NYSE:AWK),
provides high-quality and reliable water and/or wastewater services to
more than 690,000 California residents. Information regarding California
American Water's service areas can be found on the company's website www.californiaamwater.com.

With a history dating back to 1886, American Water is the largest and
most geographically diverse U.S. publicly traded water and wastewater
utility company. The company employs more than 7,100 dedicated
professionals who provide regulated and market-based drinking water,
wastewater and other related services to an estimated 15 million people
in 45 states and Ontario, Canada. American Water provides safe, clean,
affordable and reliable water services to our customers to make sure we
keep their lives flowing. For more information, visit amwater.com
and follow American Water on Twitter,
Facebook
and LinkedIn.

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