American Water Argues for Privatization to Fix Aging Infrastructure

In McKeesport, Pennsylvania, the 2017 sale of the city’s wastewater system to Pennsylvania American Water served as a financial lifeline. Mayor Michael Cherepko noted that the transaction, which yielded $40 million in net proceeds, allowed the city to avoid municipal bankruptcy under the state's Act 47 program. These funds were directed toward stabilizing rates and financing essential system upgrades that the city struggled to manage independently.

Similarly, Bellflower, California, sought a partnership in 2022 to address critical infrastructure failures, including aging asbestos-cement mains and rising arsenic levels. Since the acquisition, California American Water has replaced over 8,500 feet of pipe and committed to an additional $10 million in improvements by 2027. The company, which serves approximately 14 million people across the U.S., plans to deploy $48 billion in capital investments over the next decade. These projects focus on infrastructure renewal, water quality, and technological resiliency across its national operations.