[January 16, 2013]

American Water Now Accepting Applications for 2013 Environmental Grant Program

American Water (NYSE: AWK), the nation's largest publicly traded water and wastewater utility company, announced today that applications are now being accepted by its participating state subsidiaries for the company's 2013 Environmental Grant Program awards. The grant awards will be available in American Water service areas in 13 states as follows: California, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, New York, Pennsylvania, Tennessee, Virginia and West Virginia.

Established in 2005, American Water's Environmental Grant Program offers funds for innovative, community-based environmental projects that improve, restore or protect the watersheds, surface water and/or groundwater supplies through partnerships.

"American Water is committed to ensuring water quality through testing and treatment, as well as through consumer education and community source protection programs," said Debra Vernon, Maager of Corporate Responsibility. "We are all environmental stewards in protecting our water supplies, and this program is one way we help communities play an active role in this important effort."

To qualify, proposed projects must:

• Address a source water or watershed protection need in the community
• Be completed between May 1, 2013 and November 29, 2013
• Be a new or innovative program for the community, or serve as a significant expansion to an existing program
• Be carried out by a formal or informal partnership between two or more organizations
• Provide evidence of sustainability (continued existence after the American Water grant monies are utilized)
• Be located within one of American Water's service areas in the following states: California, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, New York, Pennsylvania, Tennessee, Virginia and West Virginia.

Information and application requirements can be obtained directly from participating American Water state subsidiaries, or on the company website at www.amwater.com/EnvironmentalGrantProgram. Applications must be postmarked by March 11, 2013 and recipients will be notified by April 12, 2013.

In 2012, a total of 48 projects throughout American Water's service areas in ten states were awarded grants totaling more than $180,000.

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 at www.amwater.com.

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