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Company will apply New Jersey’s science-based standard for PFAS mitigation across its footprint, well below EPA’s current advisory limit

Press Release: Feb. 27, 2020

Essential Utilities Inc. announces industry-leading commitments for its water business

Company will apply New Jersey’s science-based standard for PFAS mitigation across its footprint, well below EPA’s current advisory limit, and invest in renewable energy to significantly reduce its carbon footprint

BRYN MAWR, PA – Today, Essential Utilities Inc. (NYSE: WTRG) announced new commitments to environmental and community health by launching two industry-leading standards for its Aqua family of water utilities. As unveiled to shareholders during Essential’s 2020 Investor Day on Feb. 27, the company will take bold steps related to PFAS mitigation and its investment in renewable energy.

Essential announced an innovative and proactive step in standardizing its activities to address the presence of the contaminants Perfluorooctanoic acid (PFOA), Perfluorooctanesulfonic acid (PFOS) and Perfluorononanoic acid (PFNA), which are a part of the PFAS family of chemicals, in drinking water across the eight-state Aqua footprint. Beginning in 2020, Essential will make the necessary capital investment in the range of tens of millions of dollars over several years to install mitigation technology at water treatment facilities where source water exceeds 13 parts per trillion (ppt) for any of the three PFAS. PFAS are a concern in communities across the country where groundwater is believed to have been contaminated by nearby military bases or other causes.

Setting a company-wide standard of 13 ppt will enable Essential to address the contaminant uniformly across its footprint, which includes nearly 1,500 water systems in eight states. Currently, the EPA’s PFAS non-enforceable health advisory level is 70 ppt. Although the EPA announced last week it will move to set an enforceable standard around PFOA and PFOS in the future, that federal standard is a few years away. Meanwhile, several states have established or proposed mandatory standards that are much lower, based on the states’ view of the most current science on PFAS exposure risks. Essential chose its standard of 13 ppt for PFOA, PFOS and PFNA to reflect the standards adopted or proposed by New Jersey, which are the most stringent standards adopted in any state in which Aqua does business. Essential believes its decision to apply the New Jersey science-based standard in the interim, while a federal standard is being developed, is in the best interest of its customers and the communities it serves.

“Since the EPA’s health advisory was released in 2016, we have taken proactive measures to ensure that the water we provide outperforms guidance for the contaminant,” said Chief Environmental Officer Christopher Crockett. “While we applaud the EPA’s efforts to address PFOA and PFOS at the national level, enforceable federal standards for these contaminants appear to be more than a year away from being introduced, and any guidance around PFNA could have an even longer timetable. As we await these guidelines from the EPA, Essential is proud to lead the industry in setting a company-wide standard that meets the science-based levels being established in New Jersey.”

Also on Thursday, Essential announced it will greatly reduce its carbon footprint by utilizing 100% renewable energy to power water and wastewater operations at Aqua’s Illinois, New Jersey, Ohio and Pennsylvania businesses by 2022. Essential has committed to following the Paris Agreement, the United Nations’ plan to combat climate change, by committing to achieve a 60% reduction in greenhouse gas emissions by 2030. This target is based on the company’s 2018 emissions baseline and is in alignment with the Paris Agreement’s broader efforts to limit global warming to less than 1.5 degrees Celsius. The commitment will also significantly lower the company’s overall energy spend.

This progressive move builds upon the substantial investment in renewable energy already underway in Essential’s Aqua Texas operations. The Aqua utilities will continue to seek opportunities to expand their renewable energy programs to additional service areas wherever possible.

“Our Aqua water utilities have been in the business of practicing sustainability and corporate social responsibility for more than 130 years. In today’s social and environmental climate, these commitments are more critical than ever,” said Essential Chairman and CEO Christopher Franklin. “Now, as a part of Essential, Aqua’s water utilities continue to lead the industry as responsible water providers to more than 3 million people across eight states.”

Essential has published tear sheets regarding updated Environmental, Social and Governance (ESG) disclosures and policies on its website. The company plans to issue an updated ESG report later this year. More information can be found by visiting www.essential.co.

 

A Letter from Marc Lucca, President, Aqua Pennsylvania

Sept. 23, 2019

Dear Aqua Pennsylvania Customer,

We are pleased to provide this update on the progress we have made to address PFAS in drinking water sources in Montgomery and Bucks counties.

Our Aidenn Lair well in Upper Dublin, Montgomery County was returned to service with granular activated carbon—GAC—treatment in May 2019.  It now operates similarly to treatment systems at our Chalfont 8 and Hatboro 9 wells, which had GAC treatment installed in August and October 2017 respectively. The success of treatment at these three wells  and other progress fuels our continued diligence in monitoring water quality, the results for which are shared on our WaterFacts.com website as well as in our Consumer Confidence Reports, which can be found at https://www.aquaamerica.com/our-states/pennsylvania.aspx

We began piloting treatment at our North Hills well in Abington Township, Montgomery County in February 2018, following approval from the Pennsylvania Department of Environmental Protection. The North Hills well remains out of service and the treated water is not entering our public drinking water supply. It will remain out of service until we complete the pilot. Construction of a permanent treatment system could possibly begin shortly after receiving the requisite PA DEP permits, with treatment units in service in late 2020.

Consistent with our plan to address PFAS in your area, we have begun design and permitting for several other wells including wells 6 and 8 in Hatboro Borough. We continue to feed powdered activated carbon at our Neshaminy water treatment plant, which is yielding PFAS-treated water quality results similar to those of our neighboring utilities.

As we consider financing future PFAS treatment projects, we have met with the Pennsylvania Investment Infrastructure Authority, also known as PENNVEST, which administers loan and grant funds for projects that meet specific criteria on behalf of the Commonwealth. We have not, at this time, pursued PENNVEST funds as we believe the guidelines for award makes our PFAS projects ineligible. However, given recent funds awarded by the state, we plan to inquire why Aqua customers would be treated differently than their neighbors in surrounding communities, and are hopeful that we will receive such grants on your behalf. Our grant discussions will include an opportunity to secure both construction and operating expenses and, if awarded, would reduce the impact to customers’ rates associated with these projects.

We continue to be active participants in the Governor’s Task Force and Aqua’s certified lab in Bryn Mawr analyzes water quality results that have raised questions about, and challenges to, water quality data from the military. Without Aqua’s data, our customers, as well as the broader community, would have been left with few resources to oppose claims from the military and its consultants. Our WaterFacts.com website continues to be the go-to source for many, as there is no other local utility that collects samples and reports results with the frequency that we do.

We appreciate your patience as we execute our plan. The deliberate progression of our PFAS strategy prudently balances new and changing information, regulation, and new technology, so that associated costs, which are ultimately paid by our customers, are appropriately managed as we address the situation.

We take seriously our mission to protect and provide Earth’s most essential resource. Thank you for being a customer and entrusting your water service to Aqua.

Respectfully,

Marc Luca

Marc A. Lucca