FOR IMMEDIATE RELEASE Susan Turcmanovich Pennsylvania American Water T: 570-830-6520

Pager: 888-441-2138 susan.turcmanovich@amwater.com

PENNSYLVANIA AMERICAN WATER TO BEGIN $2.3 MILLION WATER LINE UPGRADE FOR PLAINFIELD TOWNSHIP NAZARETH, Pa. (January 7, 2013) - Pennsylvania American Water today announced the start of construction to replace more than 13,000 feet of aging water main in Plainfield Township, Northampton County, to improve service reliability for customers and increase water flows for firefighting. The cost of the system improvements, which replace water main dating back to the 1920s, is approximately $2.3 million.

Starting this week, the company will replace existing eight-inch cast iron water mains with new 16-inch ductile iron pipe along Route 1005 (Old Route 115/Sullivan Trail) between Route 512 and Sexton Road. Pennsylvania American Water also plans to install a new pressure-reducing station as part of the project, as well as relocate 13 existing fire hydrants.
Crews will work weekdays between 8 a.m. and 5 p.m. Traffic disruptions are expected during construction, and motorists are advised to find alternate routes. The company expects to complete the water main installation, transfer of customer services and final paving restoration by spring 2013.
During construction, customers might experience temporary service interruptions, discolored water and/or lower than normal water pressure. Crews will work as quickly as possible to shorten the length of these temporary inconveniences. For more information, contact Pennsylvania American Water's customer service center at 1-800-565-7292.
Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), is the largest water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately
2.2 million people. Founded in 1886, American Water is the largest publicly traded 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 an estimated
15 million people in more than 30 states, as well as parts of Canada. More information can be found by
visiting 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.

# # #

PRESS RELEASE www.amwater.com

distributed by