How American Water Grows Earnings

AMERICAN WATER Alton (IL) Wastewater System acquired June 27, 2019 Acquisition overview Largest acquisition utilizing Systems Viability Act ("SVA") in Illinois to date; consistent with corporate strategy to promote use of fair market value for water and wastewater system acquisitions Acquisition consistent with American Water's strategy to grow its regulated business by acquiring wastewater systems in its water footprint - Illinois American Water has provided water in Alton for the company's entire 133-year history Purchase price of $55 million Illinois American Water is committed to partnering with Alton in constructing a resource recovery facility to convert wastewater sludge into a re-usable energy source - leveraging American Water's market based expertise Study prepared by the University of Illinois found the sale to have a regional economic benefit of over $65 million during the first five years of ownership American Water financed this acquisition with debt allocated to Illinois American Water Will operate as a part of Illinois American Water; all employees were offered employment Key facts Customers Miles of collection & interceptor sewers Treatment plant capacity (MGD) Service Area Godfrey Alton Granite City East St Louis Belleville ILLINOIS AMERICAN WATER Alton Wastewater - Proposed Existing ILAW Service Areas 23,000 205 26.25 (peak) 20

View entire presentation