American Water and City of Phoenix Public Private Partnership Project Earns Design-Build Award

American Water Works Company, Inc. (NYSE: AWK), the largest investor-owned U.S. water and wastewater utility company, announced today that the Lake Pleasant Water Treatment Plant, operated by American Water and owned by the city of Phoenix, earned the 2008 National Design-Build Award from the Design-Build Institute.

Recognized in the “water/wastewater over $15 million” category for combining architecture, engineering and construction under one contract, Phoenix’s Lake Pleasant Water Treatment Plant was built to address one of the nation’s fastest growing metropolitan area’s water needs. The city of Phoenix selected the design-build-operate (DBO) team of American Water Enterprises, Inc., a subsidiary of American Water, and the Black & Veatch-McCarthy joint-venture design-build team.

“The city of Phoenix decided in the early 90’s that it wanted to proactively address the future water supply needs for its citizens," said Adam McDonough, vice president of Contract Operations for American Water. “Working with our partners, in 2007, we opened a state-of-the-art plant that serves 400,000 customers and has a capacity to treat 80 million gallons of water per day.”

Phoenix mayor Phil Gordon added, “Thanks to the efforts of the partners and our city of Phoenix staff, the plant also was designed to easily expand to treat 320 million gallons per day, continuing to ensure a viable water plant for Phoenix for years to come.”

Incorporating the latest in modern water treatment technology and automation, the facility is the largest design-build-operate project in North America. The facility, designed to blend seamlessly into the desert landscape without disturbing the natural beauty of the area, includes an intake structure, pumping station and 90-inch diameter pipeline to deliver raw water 2.3 miles from the source to the treatment site. American Water will operate and maintain the facility for 15 years, with an option for an additional five years.

Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in 32 states and Ontario, Canada. More information can be found by visiting www.amwater.com.

About Black & Veatch

Black & Veatch is a leading global engineering, consulting and construction company specializing in infrastructure development in energy, water, telecommunications, management consulting, federal and environmental markets. Founded in 1915, Black & Veatch develops tailored infrastructure solutions that meet clients’ needs and provide sustainable benefits. Solutions are provided from the broad line of service expertise available within Black & Veatch, including conceptual and preliminary engineering services, engineering design, procurement, construction, financial management, asset management, program management, construction management, environmental, security design and consulting, management consulting and infrastructure planning. With $3.2 billion in revenue, the employee-owned company has more than 100 offices worldwide and has completed projects in more than 100 countries on six continents. The company’s Web site address is www.bv.com.

Black & Veatch’s global water business provides innovative, technology-based solutions to utilities, governments and industries worldwide. Local project teams work with multinational water and wastewater treatment process experts to address site-specific challenges through a broad range of consulting, study, planning, design, design-build and construction management services.

About McCarthy

With nearly 145 years experience, McCarthy is one of the oldest and largest privately owned construction firms in the United States. The firm provides construction management, design/build and general contracting services. More than 80 percent of McCarthy’s work is from repeat clients, contributing to the firm’s ranking as the 10th largest domestic general contractor (Engineering News-Record, May 2008).

McCarthy’s Southwest Region Division has been developing projects throughout Arizona, Nevada and New Mexico for thirty years. The division specializes in development for industries, including health care, education, water/waste water, mining, hospitality, higher-education, solar, private development and building in Indian Country. For more information about McCarthy visit www.McCarthy.com.

About the city of Phoenix

Phoenix is the fifth largest city in the nation covering approximately 540 square miles. Its Water Services Department treats and distributes tap water to 1.6 million customers, and handles wastewater operations for 2 million area residents. Its tap water supply is in very good shape due to decades of planning and multiple water sources. Phoenix is delivering the same amount of water in total today as it did 10 years ago despite 28 percent population growth. The city performs over five million tests and measurements each year to meet or surpass water quality regulations.