SAN DIMAS, Calif.--(BUSINESS WIRE)--Oct. 13, 2009--
American States Water Company (NYSE:AWR) announced that the Arizona
Corporation Commission (“ACC”) approved on October 8, 2009 a rate
increase for Chaparral City Water Company (“CCWC”), a subsidiary of AWR
in Arizona. The rate increase will be effective on October 15, 2009 and
is expected to generate additional annual revenues of approximately $1.7
million, a 23% increase over current revenues.
Despite its previous rulings, the ACC also ordered CCWC to treat the
entire gain of $1,520,000 from a settlement agreement with the Fountain
Hills Sanitary District (“FHSD”) as a reduction to rate base. In 2005,
in an agreement with the FHSD, CCWC agreed to permanently cease using
one of its wells in order for the FHSD to secure an Aquifer Protection
Permit for its recharge system. Based on previous decisions ruled by the
ACC on similar gains, CCWC recognized a net gain of $760,000 (50% of the
proceeds) in 2005 related to the settlement agreement and established a
regulatory liability for the remaining $760,000 pending the ACC’s review
of this matter. However, on October 8, 2009, the ACC ordered the company
to treat the entire settlement proceeds of $1,520,000 as a reduction to
rate base. As a result, AWR will recognize a loss of $760,000, or $0.02
per share, during the third quarter of 2009, which effectively reverses
the original gain recorded in 2005.
Acquired by American States Water Company in October 2000, CCWC is a
public utility company serving approximately 13,000 customers in
Fountain Hills, Arizona and a small portion of Scottsdale, Arizona.
Certain matters discussed in this news release with regard to the
Company’s expectations may be forward-looking statements that involve
risks and uncertainties. The assumptions and risk factors that could
cause actual results to differ materially, include those described in
the Company’s Form 10-Q and Form 10-K filed with the Securities and
Exchange Commission.
American States Water Company is the parent of Golden State Water
Company, American States Utility Services, Inc. and Chaparral City Water
Company. Through its subsidiaries, AWR provides water service to 1 out
of 37 Californians located within 75 communities throughout 10 counties
in Northern, Coastal and Southern California (approximately 255,000
customers) and to approximately 13,000 customers in the city of Fountain
Hills, Arizona and a small portion of Scottsdale, Arizona. The Company
also distributes electricity to approximately 23,000 customers in the
Big Bear recreational area of California. Through its contracted
services subsidiary, American States Utility Services, the Company
contracts with the U.S. government and private entities to provide
various services, including water marketing and operation and
maintenance of water and wastewater systems.
Source: American States Water Company
American States Water Company
Eva G. Tang
Senior Vice
President, Chief Financial Officer,
Treasurer and Corporate
Secretary
(909) 394-3600, extension 707