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Press release from Business Wire

California American Water Acquires Garrapata Water System

<p class='bwalignc'> <i>Small system in Monterey County added to company's Central Coast Operations</i> </p>

Thursday, January 24, 2013

California American Water Acquires Garrapata Water System15:13 EST Thursday, January 24, 2013 PACIFIC GROVE, Calif. (Business Wire) -- The California Public Utilities Commission has approved California American Water's application to acquire the Garrapata Water System located in Monterey County on California's Central Coast. The purchase of the system adds approximately 50 new service connections to the company's customer base. California American Water already serves more than 100,000 customers through nearly 43,000 service connections on the Monterey Peninsula. Garrapata customers will now be served by staff that includes water treatment operators, distribution operators, and supervisors that are certified through the California Department of Public Health. California American Water had previously assumed control over operations and maintenance of the Garrapata system in June 2011 in an agreement with the system's owner. In doing so, the company helped the Garrapata system to meet the ever increasing regulatory demands of the county, state and federal government. Many small water systems have limited resources and can experience difficulty complying with all regulations. “This acquisition is a natural fit to our operations in Monterey and one that will benefit the customers of this system,” said California American Water President Rob MacLean. “Through this purchase, Garrapata customers will soon have access to the many convenient services we offer, including a 24-hour customer service center and our water conservation program.” California American Water will keep in place Garrapata's current rate structure and revenue authorizations until the company's next general rate case in 2015. Garrapata's service territory is in Monterey County. The community lies off of Highway 1, south of the Carmel Highlands, beginning at the Garrapata Bridge and continuing south to the Rocky Point Restaurant. California American Water, a wholly owned subsidiary of American Water (NYSE: AWK), provides high-quality and reliable water and/or wastewater services to approximately 600,000 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 approximately 7,000 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 15 million people in more than 30 states, and parts of Canada. More information can be found by visiting www.amwater.com. California American WaterCatherine Bowie, 831-646-3208Mobile: 831-241-2990catherine.bowie@amwater.com