Dear Aqua Customer,

Earlier this week, we announced that Essential Utilities, the parent company of Aqua, has agreed to merge with American Water. As a leading regulated U.S. water and wastewater utility, together with American Water, we will serve 4. 7 million connections across 17 states.

Together, we will continue to provide safe, clean, reliable and affordable water and wastewater services. We are committed to using our expanded set of resources to strengthen our ability to solve the challenges facing our industry and maintain the level of service you have come to expect from us. There will be no change in customer rates as a result of the merger, and American Water and Essential will be better able to maintain an average customer water bill that is affordable, supporting the economic prosperity of the more than 2,000 communities in which the combined company will operate.

While we are excited to join forces with American Water, this announcement is just the first step toward bringing our companies together. The combination is expected to be completed by the end of the first quarter of 2027, subject to customary closing conditions and approvals. Until the closing, Essential and American Water will remain separate, independent companies. We will continue serving you as usual.

We expect this combination to be seamless for our customers. We greatly value our relationship and it is a pleasure to serve you.

Sincerely,

Colleen Arnold
President, Aqua