American Water

What is it? The largest investor-owned US water and wastewater utility company.

What has it done? American Water had a tremendous 2008. It began the year by cutting the ribbon on the largest seawater desalination plant in the United States - the 96,000m3/d Tampa Bay facility, which is critical to the success of desalination in America. In April, the company successfully executed one of the year's biggest initial public offerings during turbulent economic times. The shares outperformed the majority of the global water market last year, and beat the Dow Jones and the S&P 500 indices hands down. In conjunction with the IPO, the company unveiled a new logo and launched a fresh communications strategy.

What makes it special?

• Having finally broken free from RWE, the company shook off market gloom to outperform the majority of its peer group in 2008. The shares ended the year up 3%, while the S&P 500 index fell by 35% over the same period.

• The company breathed new life into its contract operations business last year, sealing two 50-year military contracts in Texas and Louisiana worth a total of $677 million. It also stepped up its acquisitions programme after years of stagnation under RWE's ownership.

• American Water was the runaway winner in the rate case catch-up game in 2008, receiving authorisations for additional annualised revenues of $188 million. The company has additional rate cases pending worth another $104 million. Earning an appropriate rate of return is an essential pre-requisite to implementing the vital infrastructure and water quality investment which lies at the core of American Water's business.