SAN DIMAS, Calif.--(BUSINESS WIRE)--Jan. 13, 2005--American States Water Company (NYSE:AWR) announced that the California Public Utilities Commission ("CPUC") approved rate increases for Region II and Region III customer service areas of its Southern California Water Company ("SCW") unit effective January 2005. The rate increases in SCW's Region II will provide for additional annual revenues of approximately $2.8 million and SCW's Region III rate increases will provide for increased annual revenues of $2.5 million.

Commenting on the decisions, Floyd E. Wicks, President and Chief Executive Officer, stated, "The CPUC's timely approval of these increases is a great way to begin 2005 and hopefully end the 'regulatory lag' in the rate-making process. As we have stated before, a fair, equitable and timely regulatory process is good for customers and shareholders alike. The CPUC's attentiveness to the entire rate approval process sends positive signals to our customers and to the market."

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 the 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 Southern California Water Company, American States Utility Services, Inc. and Chaparral City Water Company. Through its subsidiaries, AWR provides water service to 1 out of 30 Californians located within 75 communities throughout 10 counties in Northern, Coastal and Southern California and to approximately 12,000 customers in the city of Fountain Hills, Arizona and portions of Scottsdale, Arizona. The Company also distributes electricity to approximately 22,000 customers in the Big Bear recreational area of California. Through its non-regulated subsidiary, American States Utility Services, the company contracts with various municipalities, the U.S. Government and private entities to provide various services, including billing and meter reading, water marketing and operation and maintenance of water and wastewater systems.

CONTACT: American States Water Company
Robert J. Sprowls, 909-394-3600, ext. 647

SOURCE: American States Water Company