AMERICAN WATER WORKS COMPANY, INC.

AMERICAN WATER WORKS COMPANY, INC.

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Company Overview
American Water Works Company Inc, with registered office address in Voorhees, is a US-based private company engaged in the provision of water supply. The company was founded in 1886 when American Water formed as the American Water Works & Guarantee Company and reorganized in 1947 as American Water Works Company, Inc.
The company is specialized in the ownership and operation of water and wastewater utilities that provide water and wastewater services to residential, commercial and industrial customers. The company works through its subsidiaries that manage municipal water and wastewater systems under contract and others that supply homeowners, businesses, and communities with water resource management products and services. Aside from its regulated business, it also offers non-regulated businesses such as the operations of its Contract Operations Group, Applied Water Management Group and Homeowner Services Group.
American Water has established itself as the largest investor-owned United States water and wastewater utility company, as measured both by operating revenue and population served. It serves approximately 16.2 million people with drinking water, wastewater and other water-related services in more than 30 states and Ontario, Canada.
The company’s mission is to be the customer’s trusted water resource company, dedicated to delivering innovative solutions. This is achieved through setting of values considered to be the cornerstones of its business culture. These values include customer focused, forward thinking, performance and reliability.
American Water is a subsidiary company of the RWE AG (Essen, Germany), a leading energy company and a global technical leader in its core businesses of electricity and gas.
Business Summary
American Water Works Company, Inc. is a water and wastewater utility company. The Company provides approximately 16 million people with drinking water, wastewater and other water-related services in 35 states and two Canadian provinces. It operates in two segments: Regulated Businesses and Non-Regulated Businesses segments. During the year ended December 31, 2009, the Company’s Regulated Businesses accounted for 90.4% of its total operating revenue. During 2009, its Non-Regulated Businesses accounted for 10.6% of the Company’s total operating revenue. In December 2009, the Company acquired Environmental Management Corporation (EMC). During 2009, the Company closed on seven acquisitions (six regulated water and wastewater systems, and one in its non-regulated segment).
Description and history
American Water Works Company, Inc. is a water and wastewater utility company. The Company provides approximately 16 million people with drinking water, wastewater and other water-related services in 35 states and two Canadian provinces. It operates in two segments: Regulated Businesses and Non-Regulated Businesses segments. During the year ended December 31, 2009, the Company’s Regulated Businesses accounted for 90.4% of its total operating revenue. During 2009, its Non-Regulated Businesses accounted for 10.6% of the Company’s total operating revenue. In December 2009, the Company acquired Environmental Management Corporation (EMC). During 2009, the Company closed on seven acquisitions (six regulated water and wastewater systems, and one in its non-regulated segment).

Regulated Businesses

The Company’s Regulated Businesses operates in approximately 1,600 communities in 20 states in the United States. Its primary operating assets include approximately 80 surface water treatment plants, 600 groundwater treatment plants, 1,100 groundwater wells, 50 wastewater treatment facilities, 1,200 treated water storage facilities, 1,200 pumping stations and 100 dams and 49,000 miles of mains and collection pipes. Its Regulated Businesses obtains their water supply from surface water sources, such as reservoirs, lakes and rivers and streams. In addition, the Company also obtains water from wells and purchases water from other water suppliers.

In 2009, residential customers accounted for 91.2% of the customers and 58.8% of the operating revenue of the Company’s Regulated Businesses. The Company also serves commercial customers, such as shops and businesses, industrial customers, such as manufacturing and production operations, and public authorities, such as government buildings and other public sector facilities, including schools. It supplies water to private fire customers for use in fire suppression systems in office buildings and other facilities and also provides bulk water supplies to other water utilities that distribute them to their own customers. The provision of wastewater services involves the collection of wastewater from customer’s premises, through sewer lines. The wastewater is then transported through a sewer network to a treatment facility, where it treated.

The Company competes with Aqua America Inc., United Water, American States Water Co. and California Water Services Group.

Non-Regulated Businesses

The Company’s Contract Operations Group enters into public/private partnerships, including operations and maintenance (O&M), and design, build and operate (DBO) contracts for the provision of services to water and wastewater facilities for municipalities, the United States military and other customers. The Company combined all Contract Operations activities, including Applied Water Management Group’s 196 contracts and its subsidiary, EMC, into one operating unit. EMC provides O&M services to 26 municipalities and 28 industrial customers.

Its Applied Water Management Group works with customers to design, build and operate smaller-scale water and wastewater treatment plants. The Company’s customers include real estate developers, industrial companies and communities. The Applied Water Management Group serves its customers primarily in the Northeastern United States. The Homeowner Services Group provides services to domestic homeowners for repairing broken or leaking pipes inside and outside their homes. The Company’s Service Line Protection Programs offer customers various service contracts for a monthly fee that cover repair of water line leaks and breaks, sewer line clogs and blockages and emergency in-home plumbing problems. Its LineSaver program involves partnering with municipalities to offer the Company’s protection programs to homeowners serviced by the municipal system. The Company’s Non-Regulated Businesses also includes its Carbon Services Group, which provides granular activated carbon for water purification to its Regulated Businesses, as well as certain outside customers and its Residuals Group, Terratec Environmental Ltd., which is located in Canada and provides management and disposal of biosolids and wastewater by-products.

The Company competes with Veolia Environnement, American States, OMI and Southwest Water.

Founded when American Water formed as the American Water Works & Guarantee Company and reorganized in 1947 as American Water Works Company, Inc

Business Line
Ownership and operation of water and wastewater utilities that provide water and wastewater services to residential, commercial and industrial customers
Subsidiary
AMERICAN COMMONWEALTH CO (INC)
Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
4/24/2008
US SIC Code
4941
Company Address
1025, Laurel Oak Road

City province or state postal code
08043, VOORHEES, NJ
Phone: +1 856 346 8200
Fax: +1 856 346 8360
Country address: UNITED STATES OF AMERICA
Website url: www.amwater.com