California American Water Begins Ambitious Meter Replacement Project

5,700 Residential Water Meters, 20 Years or Older, To Be Replaced By 2011

PACIFIC GROVE, Calif., Oct. 23 /PRNewswire/ -- California American Water
has started work on a new meter replacement program, aimed at reducing water
loss in its Monterey distribution system, which has faced strict,
government-mandated water restrictions for more than a decade.
The meter replacement program, at an approximate cost of $5.5 million,
will install 7,500 new meters by 2011. The project will keep the Monterey
water system in compliance with California Public Utilities Commission rules
that require replacement of meters according to their size and age. Most
residential meters, connected to home service lines less than one-inch in
diameter, have to be replaced after 20 years of service.
"As meters age, they slow down," explained General Manager Craig Anthony.
"These replacements will improve the accuracy of our readings and reduce
unaccounted for water losses."
The Monterey District of California American Water, which serves the
various communities of the Monterey Peninsula, has been under mandates to
reduce its pumping from the primary local water source, the Carmel River,
since the State Water Resources Control Board issued an order limiting the
company's water rights in 1995. There are two threatened species on the Carmel
River: the Central Coast Steelhead Trout and California Red Legged Frog,
protected by NOAA Fisheries and California Department of Fish and Game,
respectively. In 2006, a judge also ordered reductions in pumping of the
area's secondary water source, the Seaside Basin.
As part of its response to these restrictions, the Monterey Peninsula
Water Management District has imposed a goal of seven percent for unaccounted
water delivered by California American Water's system, which has a current
water-loss rate of 12 percent. Unaccounted water is generally attributed to
water lost through leaks, overflows, incorrect meter readings, and un-metered
uses such as water for fire fighting.
"Getting our water losses down is a top priority," said Anthony. "We'll be
accomplishing this not only through our meter replacement program, but also
through pipe replacements and new technology to help us detect leaks."
The replacement program offers several new technological advancements. The
meters themselves are "automatic read," meaning that meter numbers can be
ascertained through "drive-by" technology, with consumption figures
automatically registered on meter readers' handheld devices when they drive by
a meter site. This innovation will save time and labor and reduce the
potential for errors.
In addition, while meters are being replaced, listening stations will be
installed at every tenth meter throughout the system. Using advanced acoustic
monitoring devices, the stations will record frequencies associated with water
leaks during four-hour overnight periods. The technology allows utilities to
identify problematic underground infrastructure before it fails. The data
collected by the listening stations will be sent daily via a radio transmitter
signal to the California American Water local operations center for analysis.
Meters in need of replacement are spread throughout the water system and
will take place during normal business hours. California American Water
employees and contractors will notify any resident at home that their water
will be turned off for ten minutes during the replacement process. Customers
with questions about the meter replacement program may contact California
American Water at 1-888-237-1333.
California American Water, a wholly owned subsidiary of American Water
(NYSE: AWK), provides high-quality and reliable water and/or wastewater
services to more than 600,000 people.
Founded in 1886, American Water is the largest investor-owned 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 32 states and Ontario, Canada. More information can be found by
visiting http://www.amwater.com.
This release contains forward-looking statements, including, among others,
our plan to continue our long-term strategy of capital investment in our
systems. There are important factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements
including: general economic business conditions, unfavorable weather
conditions, changes in regulations or regulatory treatment and availability
and the cost of capital. We undertake no obligation to publicly update or
revise any forward-looking statement.
SOURCE California American Water

Catherine Bowie, +1-831-646-3208, catherine.bowie@amwater.com, for California
American Water