American Water Works Company, Inc. (AWK), Monday said it received approval from The Arizona Corporation Commission for its Water loan grant application 4-0 to receive funding from the Water Infrastructure Finance Authority or WIFA of Arizona. The company plans to use the federal funds to construct an arsenic removal facility in Tubac, the construction of which would begin in June.
The Voorhees, New Jersey-based company indicated ACC's favorable consideration of financing the project with federal funding the result of combined efforts to initiate the project's construction ensuring high quality drinking water for its customers.
Arizona American Water applied for the full 2.3 million dollars to fund the arsenic removal facility; however, final disbursements will not be determined by WIFA until after the project is completed. On June 25th, WIFA would hold a hearing upon which the final approval would be given and the hearing also cover costs and compliance with federal funding requirements. The construction contract for the arsenic removal facility will begin Monday June 15th, 2009.
The company sated that the removal facility is needed to bring local drinking water into compliance with new stringent US EPA standards for arsenic levels in drinking water. WIFA is responsible for administering funds provided to the State of Arizona from the Federal Stimulus Package for water and sewer projects.
Earlier in 2001, the Environmental Protection Agency reduced the amount of arsenic allowable in drinking water from 50 parts per billion to 10 parts per billion. Arsenic is naturally occurring in the southwest and the new mandate impacted hundreds of groundwater water systems in Arizona.
ACC closed Monday's trading at $18.48, down $0.20 or 1.07%, on a volume of 818k shares on the NYSE.
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