New Jersey American Water Shifts from Quarterly to Monthly Billing

Benefits are Better Household Budgeting, Monitoring Water Use

CHERRY HILL, N.J., June 26 /PRNewswire/ -- Effective July 1, 2009, New Jersey
American Water will transition customers from quarterly billing to monthly
billing, a change that will allow customers to better manage their budgets and
water usage. Approximately 250,000 of New Jersey American Water's 640,000
customer accounts had been on quarterly billing, including the majority of
customers in Hunterdon, Mercer, Middlesex, Somerset and Union Counties, as
well as parts of southern New Jersey.

The billing transition comes with benefits for customers: residents will be
able to monitor their water usage each month and identify abnormal usage
levels that may signify leaks in their household plumbing. Early leak
detection helps consumers conserve water and save money. Those on fixed
incomes will now have the opportunity to manage their water bills in their
monthly budgeting.

"Monthly billing gives our customers the option to be more efficient with
their water usage and in their household budgets," said John Bigelow,
president of New Jersey American Water. "At the same time, New Jersey American
Water will also become a more efficient company by having uniform billing
practices throughout all of our operations."

The company has also communicated to its customers about enrolling in the free
New Jersey American Water Automatic Payment Program, which deducts monthly
payments from a customer's checking account without the inconvenience of
writing checks and the cost of postage.

New Jersey American Water, a wholly owned subsidiary of American Water (NYSE:
AWK), is the largest investor-owned water utility in the state, providing
high-quality and reliable water and/or wastewater services to approximately
2.5 million 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 www.amwater.com.

SOURCE New Jersey American Water

Richard G. Barnes of New Jersey American Water, +1-856-310-2245,
richard.barnes@amwater.com