American Water Works aims to acquire additional water and sewer utilities under new CEO’s leadership.

In a strategic move reflecting a growing emphasis on water management, investment banker John Griffith transitioned from Wall Street to become the chief executive officer of American Water Works, the largest for-profit water and wastewater operator in the United States. This decision marked a significant shift in focus for Griffith, who has spent the last three years working with the company, based in Camden, New Jersey. On May 14, he officially assumed the role of CEO and immediately began steering the company toward expansion by announcing plans to acquire utilities serving an additional 47,000 customers across eight states.

American Water Works boasts a rich history, having provided services to approximately 14 million customers in over 1,700 municipalities and military installations. This growth trajectory is bolstered by favorable policies in Pennsylvania, notably Act 12, which has prompted community activists to express concerns regarding potential rate increases to cover private financing and shareholder dividends. The company has faced scrutiny, particularly when small-town water systems have been proposed for takeover; instances where municipalities, such as Gloucester Township, decisively voted against joining the corporation have raised eyebrows as well.

In his initial days as CEO, Griffith highlighted the critical infrastructure issues plaguing water management systems across the nation, noting that the industry is highly fragmented. With around 53,000 municipally owned water utilities, many of which operate with outdated systems, American Water Works plans to invest between billion and billion over the next decade in upgrades and acquisitions. Most of this capital is expected to support extensive improvements within their existing systems, rather than diversifying into other utility markets, reaffirming the company’s dedication to the water sector that founded it in 1886.

As federal funding for water infrastructure has diminished, particularly since the 1970s following the Clean Water Act and the Safe Drinking Act, many local governments have struggled to prioritize necessary investments in water systems. Griffith emphasized the need for responsible investment and affordable services, proposing universal tariffs to aid low-income customers. In this rapidly evolving industry, he aims to maintain a balance between sustainable growth and affordability for consumers while navigating regulatory challenges.

American Water’s initiatives may provide solutions to critically needed infrastructure improvements; however, as the complexities surrounding privatized water systems grow, questions about the long-term viability of such utilities remain. Media News Source explores these issues as Griffith leads the company into a future where responsible management of water resources becomes ever more essential.