Get complete text of speech as an Acrobat PDF
President and CEO urges industry executives to address nationwide system upgrade through public policy not politics.
At a recent gathering of utility executives and regulatory officials, American Water Works Company (NYSE: AWK) President and CEO J. James Barr characterized the need to upgrade the nation’s infrastructure as an issue that is routinely dealt with each day by professional water and wastewater utility managers.
"There is absolutely nothing new or particularly complicated about the issue of infrastructure replacement," Barr told those attending the Mid-Atlantic Conference of Regulatory Utilities Commissioners in White Sulphur Springs, West Virginia. "No matter what we do to extend the useful lives of …pumps, pipes, treatment facilities, hydrants…ultimately they wear out and have to be replaced. I believe it stretches credibility to suggest that this basic, fundamental physical characteristic of any water or wastewater system is anything other than a daily routine – albeit a routine that requires huge investments."
Much of the underground infrastructure of the country’s 54,000 water systems was put into place decades ago and is nearing the end of its useful lifespan.
Over the next 20 years, significant capital investment will be required to replace the aging service lines and associated equipment within all water and wastewater delivery areas. Some industry analysts have suggested that this infrastructure investment could easily top a trillion dollars and require intervention by the federal government.
A recent study by the American Water Works Association (AWWA) -- an international nonprofit scientific and educational society dedicated to the improvement of drinking water quality and supply – concluded the investment is likely to be closer to $250 billion over 20 years.
"Whatever the final cost," Barr told the conference participants, "it’s certainly manageable at the local level without federal intervention." He noted that since the early 70s, American Water invested more than $6 billion or roughly $2,000 per customer in the infrastructure. "That investment was funded by private investors," Barr explained. "As a result of that investment, and the decline over time in water use per customer, the price of water service has risen. Even so, water remains a bargain for the consumer.
"I believe these statistics offer compelling evidence," Barr continued, "that through the combined efforts and intestinal fortitude of utility officials and economic regulators, we’ve taken the steps to secure reliable service for our customers. At the same time, the figures disprove the contention that the cost of service cannot be supported through rates for service."
Barr concluded his remarks by challenging the conference participants to "become actively involved in the infrastructure debate …and demand that public policy, not politics, become the focus of the solution."
American Water Works Company is the nation’s largest and most geographically diverse publicly traded utility devoted exclusively to the water and wastewater business. Its subsidiaries serve more than 10 million people in 1,300 communities in 23 states from New York to Hawaii.
Forward looking statements in this report, including, without limitation, statements relating to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. These factors include, among others, the following: the success of pending applications for rate increases, inability to obtain, or to meet conditions imposed for, regulatory approval of pending acquisitions, weather conditions that tend to extremes of temperature or duration; availability, terms and development of capital; business abilities and judgment of personnel; changes in, or the failure to comply with governmental regulations, particularly those affecting the environment and water quality; competition; success of operating initiatives, advertising and promotional efforts; existence of adverse publicity or litigation; changes in business strategy or plans; quality of management; general economic and business conditions; and other factors described in filings of the Company with the SEC. The Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise.>
|
American Water Works
Company, Inc.
1025 Laurel Oak Road
P.O. Box 1770
Voorhees, NJ 08043
(856) 346-8200 |
|
AWK is the trading symbol of
American Water Works Company, Inc., on the New York Stock Exchange, on which the common stock, 5% preferred and 5% preference stock of the Company are traded. |
