American Water Offers Unique O&M Services to Municipal Leaders; Company Highlights Public-Private Partnerships at NLC Congress of Cities.

CHARLOTTE, N.C. -- Leaders of municipally-owned water systems face a variety of challenges - from increasingly strict environmental regulations, needed facility upgrades and increasing operational costs - to increasing insurance risks, and employee training needs. Partnerships are increasing becoming a solution to overcoming these challenges. American Water (booth #1309) will highlight the value of private water and wastewater solutions at the 2005 National League of Cities (NLC) Congress of Cities Conference taking place in Charlotte, NC from December 6-10.

"American Water owns and operates over 350 water and wastewater systems," said Jim McGivern, American Water's Chief Growth Officer. "We have been engaged as a direct participant in every kind of water and wastewater challenge imaginable."

Additionally, American Water manages hundreds of successful Operations & Maintenance contracts. An example is the Camp Creek Water Reclamation Facility (CCRF) in Fulton County, GA, where American Water assumed operations in 2002 for a fifteen-year period. The Company designed, built and operates a 24 MGD wastewater treatment plant, which features biological nitrogen and phosphorous removal, filtration and ultraviolet disinfection.

In Sioux City, Iowa, American Water was chosen to manage the operation and expansion of the city's wastewater facilities, including a state-of-the-art odor control system. The forward-thinking partnership has delivered additional capacity to enable residential and business growth for the city.

In Clarksville, IN, American Water provides all management and O&M services for a 5 MGD wastewater treatment facility. The company's operating approach has resulted in savings of approximately $60,000/year in chemicals and power. American Water's wastewater contract operation in Clarksville has been recognized with seven years of Indiana Water Environment Association (IWEA) Laboratory Excellence Awards and nine years of IWEA Safety Awards.

American Water is partnering with the City of Buffalo, New York to provide O&M services for the city's water system. The company provides repair and maintenance capability; capital planning advice; customer service and billing; and meter repair and replacement. During the term of the O&M contract, American Water has helped to reduce the Buffalo Water Board's annual operating cost by $4 million and improved the cash collections rate from less than 70% to over 94%. The project was recognized by the National Council for Public-Private Partnership with an Outstanding Achievement Award for Public/Private Partnership.

At a Congress of Cities workshop on December 8, American Water's Clifford Groh, Director of Operations, and Amy Marks, Business & Marketing Development Manager, will highlight its newest offering, LineSaver(TM). LineSaver is a solution for service line repairs that are not the responsibility of the municipality's water department, nor covered by homeowners' insurance. The extra level of protection gives homeowners peace of mind whenever a water emergency might occur on their property - in the wee hours of the morning, on a weekend or holiday. American Water has skilled professionals that will actively design, manage and implement a customized LineSaver program allowing the municipality to earn a share of the revenue generated from homeowner enrollments.

American Water offers a comprehensive menu of O&M services, including:

--Plant O&M

--Water distribution system O&M

--Wastewater collection system O&M

--Well supply O&M

--Automated maintenance management systems

--Environmental compliance monitoring and reporting

--Process review

--Advanced treatment processes

For more information, please contact American Water's Business Development Group at 856-346-8200 or visit www.amwater.com.

With a history of over 100 years, American Water provides high quality water, wastewater, and other related services to over 18 million people in 29 states and 3 Canadian provinces.