California American Water plans $277 million in 2026 infrastructure investments

California American Water announced plans to invest approximately $277 million in water and wastewater infrastructure projects across the state in 2026 as part of ongoing efforts to modernize aging systems and improve long-term reliability.

The announcement, made during Infrastructure Week, outlines planned investments focused on water main replacement, storage expansion, treatment upgrades and technology improvements aimed at strengthening system resilience and reducing service disruptions.

California American Water President Sarah Leeper said the investments reflect the utility’s long-term commitment to public health, reliable service and economic growth throughout California.

According to the company, priority areas for the 2026 capital program include replacing aging distribution infrastructure, expanding water storage capacity, improving water treatment operations and upgrading automation and system monitoring technologies.

Highlighted projects include a major water main replacement initiative in Sacramento tied to the recently acquired Fruitridge system, where the utility is replacing mains and relocating customer water meters to improve efficiency and system performance.

Additional projects include new groundwater storage infrastructure in Isleton, upgrades to a large iron removal treatment facility in Monterey and construction of new water storage tanks in Southern California.

The company also emphasized the broader economic impact of water infrastructure spending, citing estimates that every $1 million invested in water infrastructure supports approximately 10 jobs, many of them filled by union labor.