California American Water Desalination Project Awarded $10 Million State Grant

The California Department of Water Resources (DWR) announced today they
will provide a $10 million grant to public utility, California American
Water, to help build the seawater desalination component of the Monterey
Peninsula Water Supply Project, the company’s solution to the Monterey
Peninsula’s long-standing water shortage.

“We are extremely grateful to DWR for supporting our project,” said
California American Water president Rich Svindland. “This grant will
reduce costs to our customers for this project, which is urgently needed
to protect the local river and groundwater and to meet the demands of
the community in a sustainable way.”

The Monterey Peninsula Water Supply Project is a $329 million project
featuring a portfolio of water supply components to address the area’s
water needs. In 2009, the California State Water Resources Control Board
issued a Cease and Desist Order to limit pumping from the Carmel River,
the community’s major source of water supply and home to threatened
species. The Monterey Peninsula Water Supply Project includes a seawater
desalination facility relying on slant well technology, which eliminates
harm to marine life in the process of drawing ocean water for treatment.
Other aspects of the project include recycled water, continued
conservation and aquifer storage of excess winter river flows. The
company received approval for the project from the California Public
Utilities Commission in September of 2018. Additional permits are
required, including approval from the California Coastal Commission,
anticipated later this year.

“With only 100,000 customers served in our Monterey District, finding
cost savings for this project is of critical importance,” said
Svindland. “We have also applied to the state for State Revolving Fund
low-interest loans, will continue to engage in value engineering and
always, to look for additional opportunities for savings.”

DWR provides grants to local agencies for the planning, design, and
construction of potable water desalination facilities for both brackish
and ocean water. It also provides grants for pilot, demonstration, and
research projects. Since 2005, DWR has completed three rounds of funding
using Proposition 50 funds. Grant disbursements generally occur after
costs are incurred and are provided after review of expense
documentation provided by the grantee with invoices. After project
completion, there may be annual reporting for up to five years to
describe briefly the results of the project.

California American Water, a subsidiary of American Water (NYSE: AWK),
provides high-quality and reliable water and/or wastewater services to
more than 675,000 people. More information can be found at www.californiaamwater.com.

With a history dating back to 1886, American Water is the largest and
most geographically diverse U.S. publicly traded water and wastewater
utility company. The company employs more than 7,100 dedicated
professionals who provide regulated and market-based drinking water,
wastewater and other related services to more than 14 million people in
46 states and Ontario, Canada. American Water provides safe, clean,
affordable and reliable water services to our customers to make sure we
keep their lives flowing. For more information, visit amwater.com and
follow American Water on Twitter, Facebook and LinkedIn.

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