Tampa, FL - November 16, 2004

American Water to fix and operate Tampa Bay desal plant

The Board of Directors of Tampa Bay Water voted unanimously yesterday to appoint American Water-Pridesa to remedy, operate and manage the Tampa Bay Seawater Desalination Plant, the largest sea water desalination plant in the United States.  American Water-Pridesa was selected to enter exclusive contract negotiations in September 2004, and has worked with Tampa Bay Water to reach contract agreement within the 60-day negotiation timeline.

American Water-Pridesa will begin immediately to complete the design of the improvements to the 25 million gallons per day plant and will take over operation of the plant on Jan. 8, 2005 with completion expected by October 2006.  Once fully operational, the unit cost of water from the plant will average $2.54 per thousand gallons.

“Being chosen to remedy and manage the largest desalination plant in the United States is a major achievement for the American Water-Pridesa team and good news for the future of water service in Tampa Bay,” said Jeremy Pelczer, president and chief executive officer of American Water.

Kent Turner, Desalination Manager, American Water, said, “Desalination technology today is both efficient and affordable, and can play a significant role in delivering a trusted and sustainable water resource in the United States. We are excited that today’s announcement confirms the desalination capabilities of the American Water-Pridesa team.”

Jeremy Hughes, development director for Pridesa’s activities in the United States added, “The American Water-Pridesa solution for Tampa Bay Water is tried and tested, and we are confident in our ability both to remedy the existing plant and to deliver a long-term quality water resource for the citizens of Tampa Bay.”

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American Water
With a history of over 100 years, American Water provides high quality water, wastewater, and other related services, serving 18 million customers in 29 US states, and three Canadian provinces.  American Water is part of RWE Thames Water, and through their combined expertise, it continues the tradition of providing customers with superior quality service while gaining access to new technologies, research and development, and global experience in service, customer satisfaction and security.

www.amwater.com