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American Water, the nation’s largest publicly traded water and wastewater utility company, today announced its Central Laboratory, based in Belleville, Ill. has met all proficiency testing requirements by the United States Environmental Protection Agency (EPA) for the third round of the Unregulated Contaminant Monitoring Rule (UCMR3). American Water’s Central Laboratory is one of the first water and wastewater utilities to participate and pass proficiency testing for UCMR3 methods.
“At American Water, we hold ourselves to the highest standards in delivering clean, high-quality drinking water to the people we serve,” said Dr. Mark LeChevallier, director of Innovation & Environmental Stewardship for American Water. “When it comes to complying with strict federal regulations, we’ve consistently scored among the highest of all water companies. Our recent milestone of being one of the first utilities to meet all proficiency testing requirements for UCMR3, once again demonstrates our commitment to delivering water of the highest quality to our customers.”
In 2013, the EPA UCMR program will resume for all public water systems serving more than 10,000 users. In addition, 800 systems serving less than 10,000 users will also be required to participate in the program. As proposed, UCMR3 would require public water systems to monitor for 28 chemicals and two viruses. This testing will take place over a continuous, 12-month period, between January 2013 and December 2015, for approximately 6,000 public water systems. The UCMR program allows the EPA Office of Water to screen the country’s water systems for a select number of pollutants that may become regulated contaminants in the future. American Water successfully analyzed proficiency testing samples for seven of the UCMR3 methods, which is an integral part of the UCMR Laboratory Approval Program. The final UCMR3 was published on May 2, 2012.
At American Water’s laboratories, more than one million tests and measurements using the most advanced technology and equipment are conducted each year. Since it’s opening in 1981, the Central Laboratory has been dedicated to drinking water analysis and quality measurement. American Water’s research team has won over a dozen awards for research, and routinely interacts with prominent researchers, universities, and organizations, including the USEPA, while the Central Laboratory provides input to regulators as they develop federal standards and guidelines for safe drinking water.
Rick Garloff of Harbeson, Delaware, a Plant Operator for Tidewater Utilities, Inc., has been awarded the Delaware 2011 Operator of the Year Award. Garloff received this honor during a ceremony held on May 3, 2012 at Delaware Technical & Community College, Owens Campus.
The statewide Operator of the Year Awards ceremony serves to highlight the role of Delaware’s water and wastewater operators in protecting the environment. Award winners are chosen for their “outstanding technical excellence and exemplary work ethic contributing to the high level of water quality in Delaware.”
Garloff joined Tidewater in 2002. As a plant operator, he oversees the operation of a variety of water treatment methods every day. One of his major accomplishments included overseeing the implementation of the Company’s Supervisory Control Data and Acquisition Center in the Rehoboth District where he was very involved in every step of the process — from pre-construction meetings to establishing plant parameters to working with the engineering teams to establish communications between independent water plants. He also coordinated equipment placement at each pump house and worked directly with the programming team in ensuring that all control sequences and timers at all plants were functioning smoothly between periods of low to high water demand. The Rehoboth District produces between 6 million and 20 million gallons per week depending on the time of year and encompasses an area 10 miles long and up to 3 miles wide.
“We are thrilled that Rick is the ninth Tidewater employee to receive this prestigious honor. Our company has always prided itself on having a team of dedicated employees who work to ensure that the water quality in the State is kept to the highest standards,” said Jerry Esposito, President of Tidewater Utilities, Inc.
A new research paper jointly sponsored by the University of Notre Dame, the University of Wyoming and the Technical University of Delft (Netherlands) has quantified the cost to the Great Lakes States of invasive species that enter the lakes with discharged ballast water from ocean-going vessels. The authors calculated a median estimate of $138 million, but concluded that damages could actually exceed $800 million on an annual basis.
The New York Public Service Commission, by order issued on March 20, 2012, approved a settlement agreement establishing a three-year rate plan for Long Island-American Water Company. 2012 N.Y. PUC LEXIS 128.
Under the plan, LIAWC will be entitled to increase its rates by $3.0 million (6.0%) in 2012, an additional $1.4 million (2.6%) in 2013, and an additional $1.2 million (2.2%) in 2014. Notably, the foregoing figures reflect projected synergy savings to be generated by LIAWC’s acquisition of Aqua America’s former New York properties. The settlement also provides for the sharing by customers and investors of earnings in excess of a 10.2% equity return benchmark.
In an Opinion dated March 22, 2012, the Commonwealth Court of Pennsylvania denied a challenge brought by a municipal authority seeking to invalidate Pennsylvania-American Water Company’s use of a competitive rate rider to attract new business. Municipal Authority of the Borough of West View v. Pennsylvania Public Utility Commission, 2012 Pa. Commw. LEXIS 96.
By utilizing the rider, PAWC was able to offer the Evans City Water and Sewer Authority a rate substantially below those offered by the two other bidders, Adams Township and Cranberry Township. Although it was not interconnected with Evans City, West View claimed an interest in the matter by virtue of its role as the principal supplier of Adams and Cranberry Townships. In short, if one of the adjacent townships had been the successful bidder, it would have had to purchase more water from West View to meet Evans City’s requirements. The PUC concluded that West View’s interest was too remote to impart standing and dismissed its complaint. The Court agreed.
We wanted to share a public letter that a coalition of CEOs from several leading American companies sent to Treasury Secretary Geithner this week, raising objections to the proposed raise in the tax rate on dividends and capital gains. Two of the signatories were NAWC member CEOs – Jeff Sterba (President and Chief Executive Officer, American Water) and Nicholas DeBenedictis (Chairman, President and Chief Executive Officer, Aqua America). 
Private water companies provide safe, reliable and efficient water service to tens of millions of Americans every day. That service depends on a well-maintained infrastructure system that requires substantial capital investment. Mr. Sterba and Mr. DeBenedictis joined the letter to draw attention to the adverse implications such a tax raise would have for needed investments in water infrastructure. The proposed tax rate increase would put downward pressure on investing, reducing access to capital for water utilities and increasing costs to water customers.
To hear more about this issue, click here to watch today’s clip of American Water CEO Jeff Sterba being interviewed on CNBC.
The Missouri Public Service Commission has approved a rate settlement under which Missouri-American Water Company will be allowed to implement rates designed to produce additional annual operating revenues of $24.0 million. 2012 Mo. PSC LEXIS 248. In so doing, the PSC found that the settlement rates would produce a return on equity within a “zone of reasonableness” of 9.0%-11.0%.
Chicago Mayor Rahm Emanuel recently announced the city’s plans to invest upwards of $7.0 billion to fix up Chicago’s crumbling infrastructure. Of that amount, $1.4 billion has been targeted for Chicago’s water and wastewater systems, which experienced over 3,800 main breaks in 2011. The city hopes to replace 900 miles of water main and 750 miles of sewer lines, and to increase its spending on water infrastructure to about $350 million in 2012.
 John Hines The NAWC Pennsylvania Chapter (NAWC) today recognized former Pennsylvania Department of Environmental Protection (DEP) Executive Deputy Secretary John T. Hines with its James McGirr Kelly Award for Excellence. The organization honored Hines during its awards luncheon at the Chapter’s Annual Meeting in the Commonwealth Keystone Building in Harrisburg.
The James McGirr Kelly Award for Excellence is the highest honor bestowed by the Chapter, presented each year to a resident of Pennsylvania who most exemplifies dedication to promoting the availability of safe drinking water in the commonwealth.
“The water industry and all Pennsylvanians owe a debt of gratitude to John Hines for his years of dedicated public service protecting our environment and preserving water resources,” said NAWC Pennsylvania Chapter Chairman David Lewis.
Hines spent more than 18 years with the DEP, capping off his career as the Executive Deputy Secretary for Programs. In this capacity, he oversaw all statewide policy and program development related to all aspects of the agency’s activities. Hines served 12 of his 18 years in senior and executive management at DEP, including roles as Deputy Secretary for Water Management, Executive Director of the Water Planning Office, and Acting Director of Watershed Management, and DEP Policy Director. Currently, Hines serves as a Government Relations Advisor to the Shell Oil Company.
The Annual Meeting also featured presentations by Pennsylvania Public Utility Commission Executive Director Jan Freeman; Pennsylvania Department of Environmental Protection Deputy Director of External Affairs Daniel Lapato; Susquehanna River Basin Commission Director of Technical Programs Dr. Jim Richenderfer, and NAWC Executive Director Michael Deane.
NAWC’s Pennsylvania Chapter consists of 10 member companies that provide safe and adequate drinking water service to approximately 3.1 million Pennsylvanians in 485 communities in 39 counties. In addition, three member companies provide wastewater service to approximately 155,000 Pennsylvanians in 24 communities across seven counties.
The SouthWest Water Company Board of Directors announced the appointment of Daniel E. Corredor as president and chief executive officer, effective May 1, 2012.
Corredor has nearly 25 years of leadership experience in the oil and gas sector and the regulated water space. Prior to joining SWWC in November 2010 as chief financial officer, Corredor served as president and chief executive officer of Chusei USA, a Houston-based petrochemical company.
Corredor will replace Robert Carroll, who has served as interim chief executive officer since March 2011. Carroll will continue to work with SWWC as chairman of the board.
“With Dan’s caliber and experience, he is uniquely qualified to lead SWWC,” Carroll said. “I am confident he will provide the leadership to successfully implement our corporate strategy and take the company to the next level of growth.”
Corredor holds a Bachelor of Science degree in accounting and finance from the University of Houston. He is a certified public accountant.
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