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Press release from Business Wire

Pennsylvania American Water Rolls out New Fleet Powered by Compressed Natural Gas

<p class='bwalignc'> <i>Environmentally friendly vehicles offer costs savings and cleaner air</i> </p>

Friday, January 25, 2013

Pennsylvania American Water Rolls out New Fleet Powered by Compressed Natural Gas11:00 EST Friday, January 25, 2013 PUNXSUTAWNEY, Pa. (Business Wire) -- Pennsylvania American Water officials joined with Pennsylvania Speaker of the House Sam Smith and Pennsylvania Department of Environmental Protection officials today to mark the company's launch of a compressed natural gas (CNG) pilot for its vehicle fleet. The company displayed four new CNG-powered Ford F-250 trucks at its kickoff event, which will be piloted in Punxsutawney and Coatesville. “CNG provides Pennsylvania American Water with an exciting alternative fuel option that will help us better control our operational expenses, reduce our carbon footprint, and capitalize on the abundant supply of natural gas right here in the Commonwealth,” said President Kathy L. Pape of Pennsylvania American Water. In contrast to gasoline prices that currently range around $3.50 per gallon, Pennsylvania American Water officials noted that fueling with CNG costs approximately $2.00 per gallon. Pennsylvania American Water Vice President of Operations Steve Tambini said the company is also sold on CNG's environmental benefits. “The new CNG vehicles operate on the same basic principle as traditionally fueled trucks, but they generate significantly less particulate matter,” said Tambini. “This means cleaner air and a reduction in greenhouse gas emissions, which will benefit the environment and the communities we serve.” “It is very encouraging to see companies like Pennsylvania American Water begin to convert their fleets to compressed natural gas (CNG),” said Pennsylvania Speaker of the House Sam Smith. “This is exactly the trend we hope to see continuing across the state. More CNG vehicles on the road leads to a greater need for fueling stations, and that ultimately results in less dependence on foreign oil and more jobs in the energy sector here in Pennsylvania. I congratulate Pennsylvania American Water for being a leader in this area.” Pennsylvania American Water also announced that it is applying for a grant from the Pennsylvania Department of Environmental Protection to add more CNG-powered vehicles to its fleet. Tambini also said Pennsylvania American Water will construct a company-owned fueling station in Scranton that will support up to 36 CNG vehicles in 2014. Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), is the largest water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.2 million 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 more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 15 million people in more than 30 states, as well as parts of Canada. More information can be found by visiting Pennsylvania American WaterWestern Pennsylvania:Gary LobaughT: 724-873-3674M: 724-944-5148gary.lobaugh@amwater.comorEastern/Central Pennsylvania:Terry MaenzaT: 610-670-7789 ext. 1009M: