SAN DIMAS, Calif.--(BUSINESS WIRE)--Oct. 20, 2009--
American States Water Company (NYSE:AWR) announced that on October 15,
2009, the California Public Utilities Commission (“CPUC”) issued a final
decision adopting the settlement agreement between the Division of
Ratepayer Advocates (“DRA”) and Golden State Water Company (“GSWC”), a
subsidiary of AWR. The decision approves a settlement agreement in the
application of GSWC for a general rate increase in its Bear Valley
Electric Service (“BVES”) division. The settlement agreement provides
for a $6.4 million increase in base rates over a four-year period and a
return on equity of 10.5% with a corresponding return on rate base of
9.15%. GSWC and DRA agreed to incremental annual revenue increases in
the amount of $4.8 million for 2009, additional $1.2 million for 2010,
$209,000 for 2011, and $168,000 for 2012. The rate increase for 2009
will be effective on November 1, 2009 and will be applied prospectively.
Among other things, the decision allows for an update to BVES’ rates in
2010 for the corporate headquarters’ costs based on the CPUC’s adoption
by the end of 2009 of new rates for GSWC’s current general rate case
including the recovery of expenses associated with its corporate
headquarters. Based on the decision, BVES is also allowed to establish a
Base Revenue Requirement Adjustment Mechanism to decouple usage from
revenue.
BVES provides electric services to approximately 23,000 customers in the
City of Big Bear Lake and surrounding areas in San Bernardino County.
This general rate case approved by the CPUC’s electric division was the
first full general rate case for BVES since 1996.
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