Profile: American Water Works Company Inc (AWK)
17 May 2019
American Water Works Company, Inc., incorporated on August 28, 1936, is a holding company for regulated and market-based subsidiaries throughout the United States and Ontario, Canada. The Company's Regulated Businesses segment provided water and wastewater services as public utilities in 16 states in the United States as of December 31, 2016. The Market-Based Businesses consists of four segments, including Military Services Group, which conducts operation and maintenance (O&M) of water and wastewater systems for military bases; Contract Operations Group, which conducts O&M of water and wastewater facilities for municipalities and the food and beverage industry; Homeowner Services Group, which primarily provides water and sewer line protection plans for homeowners, and Keystone, which provides water services for natural gas exploration and production companies.
The Company, through its subsidiary, American Water Works Service Company, Inc. provides support and operational services for its operating subsidiaries. These services are provided to its Regulated Businesses and Market-Based Businesses organized under American Water Enterprises. These services include accounting and finance, administration, business development, communications, compliance, education and training, engineering, health and safety, human resources, information systems, internal audit, investor relations, legal and governance, operations, procurement, rates support, security, risk management, treasury, water quality, and research and development. The Company's subsidiary, California-American Water Company is engaged in the construction of wells that supplies water to the desalination plant.
The Regulated Businesses segment involves the ownership of utilities that provide water and wastewater services to residential, commercial, industrial and other customers, including sale for resale and public authority customers. As of December 31, 2016, Regulated Businesses that provide these services operate in approximately 1,600 communities in 16 states in the United States. It owns the physical assets used to store, pump, treat and deliver water to its customers and collect, treat, transport and recycle wastewater. As of December 31, 2016, the properties of its Regulated Businesses segment included 80 dams and 81 surface water treatment plants along with approximately 522 groundwater treatment plants, 1,022 groundwater wells, 121 wastewater treatment facilities, 1,284 treated water storage facilities, 1,433 pumping stations, and 49,635 miles of mains and collection pipes.
The Regulated Businesses segment is dependent on sources of water supply and obtains its water supply from surface water sources, such as reservoirs, lakes, rivers and streams; from ground water sources, such as wells and aquifers, and water purchased from third party water suppliers. Its Wastewater services involve the collection of wastewater from customers' premises through sewer lines. The wastewater is then transported through a sewer network to a treatment facility, where it is treated to meet required regulatory standards for wastewater before being returned to the environment. The solid waste by-product of the treatment process is disposed of or recycled in accordance with applicable standards and regulations.
The Market-Based Businesses provide services to military bases; municipalities; oil and gas exploration and production companies, and to various commercial, industrial and residential customers. Its Market-Based Businesses consists of four segments: Military Services Group, Homeowner Services Group, Contract Operations Group and Keystone. As of December 31, 2016, the Military Services Group operated 12 military bases under contracts with the United States Department of Defense (DoD).
The contracts include O&M of the water and wastewater systems on the bases and a capital program. The Homeowner Services Group, through its various protection programs, provides services to domestic homeowners and smaller commercial customers. Its LineSaver program involves partnering with utilities, municipalities and other organizations to offer its protection programs to customers serviced by or affiliated with those municipalities and organizations. As of December 31, 2016, its Homeowner Services Group had approximately 1.7 million customer contracts in 43 states and the District of Columbia and 10 LineSaver partnership agreements with municipalities and other organizations.
The Contract Operations Group enters into public/private partnerships, including O&M; design; build and operate; and design, build, finance, operate and maintain contracts for the provision of services to water and wastewater facilities for municipalities, the food and beverage industry, and other customers. It also provides its customers with financing for capital projects. Its Keystone is a water management solution company focused on exploration and production customers in the Appalachian Basin, as well as customers in the municipal water services market. Keystone provides customized water sourcing, transfer, storage and transport services, along with pipeline construction services for natural gas exploration and production companies.
The Company competes with Veolia Environnement S.A., American States Water Company, Operations Management International, Inc., Southwest Water Company, HomeServe USA, Dominion Energy Solutions, Rockwater Energy Solutions, Rain for Rent, Southern Company Gas, Fluid Delivery Solutions, LLC, Aqua America, Inc., Suez Environnement Company S.A., American States Water Company, Algonquin Power and Utilities Corp., Corix and California Water Service Group.
American Water Works Company Inc
1 Water St
CAMDEN NJ 08102-1658