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ACC Approves Funding Tubac Construction Project for Arizona American Water

PHOENIX, June 15 /PRNewswire/ -- The Arizona Corporation Commission approved Arizona American Water loan grant application 4-0 to receive funding from the Water Infrastructure Finance Authority (WIFA) ofArizona.

"The ACC's favorable consideration of financing this project with federal funding is the result of combined efforts to start construction on this project and ensure our customers continue to receive high-quality drinking water, meeting EPA standards, at a reasonable cost like it should," said Joe Gross, Director of Engineering. Securing these funds was part of Arizona American Water's effort along with leadership from the town ofTubac and the Arizona Corporation Commission to mitigate the cost impact to customers of unfunded and more stringent federal requirements.

June 25th WIFA will also hold a hearing which will give final approval to the financing. The hearing will cover costs and compliance with federal funding requirements. The construction contract for the arsenic removal facility will begin Monday June 15th, 2009. Heavy construction isn't expected until late summer. It is expected that the arsenic removal facility will be in service by the end of this year.

In April, WIFA announced that residents ofTubac who receive water service from Arizona American Water will benefit from a combination of federal grants and loans. Arizona American Water applied for the full 2.3 million dollars to fund the arsenic removal facility; however, final disbursements will not be determined by WIFA until after the project is completed. The federal funds will be used by Arizona American Water to construct an arsenic removal facility inTubac; construction is expected to begin in June. The removal facility is needed to bring local drinking water into compliance with new stringent US EPA standards for arsenic levels in drinking water. WIFA is responsible for administering funds provided to theState of Arizona from the Federal Stimulus Package for water and sewer projects.

In January of 2001, the Environmental Protection Agency reduced the amount of arsenic allowable in drinking water from 50 parts per billion to 10 parts per billion. Arsenic is naturally occurring in the southwest and the new mandate impacted hundreds of groundwater water systems inArizona.

Arizona American Water- Arizona 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 more than 200,000 people.

Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters inVoorhees, 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 andOntario, Canada. More information can be found by visiting www.amwater.com.

SOURCE Arizona American Water