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Hawaii American Water Files Rate Request

Investments and Rising Operating Costs Drive Increase

HONOLULU, H.I. (March 25, 2011) – Hawaii American Water has filed a general rate case application with the Hawaii Public Utilities Commission requesting a 20 percent increase in wastewater rates for its customers in the Hawaii Kai community in East Honolulu. The requested increase will impact all customers, except for Commercial-Restaurant. The application requests a $1,764,860 increase in revenues to offset rising costs associated with system operations and maintaining infrastructure. The Hawaii Public Utilities Commission will review the company’s application and may adopt or modify the application. New rates are expected to be effective by January 1, 2012. The primary drivers of the rate request are an increase in total operating and maintenance expenses of $0.8 million and an increase in utility infrastructure investment of $7.2 million since the previous rate case in 2008 in system improvements. Major projects during this time included $2.9 million for replacement of force mains and $1.7 million for treatment facility upgrades. "Hawaii American Water is focused on providing cost-effective, high-quality and reliable wastewater service to our customers," said Lee Mansfield, general manager of Hawaii American Water.

Hawaii American Water, a wholly owned subsidiary of American Water (NYSE: AWK), provides quality wastewater services to approximately 30,000 people. Founded in 1886, American Water is the largest investor-owned 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 approximately 15 million people in more than 30 states, as well as parts of Canada. More information can be found by visiting www.amwater.com. In 2011, American Water is celebrating its 125th anniversary with a yearlong campaign to promote water efficiency and the importance of protecting water from source to tap. To learn more, visit www.amwater125.com. 

Catherine Bowie

831.646.3208

catherine.bowie@amwater.com