Estimated Contract Value of $510 Million Over a 50-Year Period
SAN DIMAS, Calif.--(BUSINESS WIRE)--Jul. 13, 2016--
American States Water Company (AWR: NYSE) announced today that its
contracted services subsidiary, American States Utility Services, Inc.
(“ASUS”), has been awarded a 50-year contract by the U.S. government to
operate, maintain, and provide construction management services for the
water and wastewater systems at Eglin Air Force Base (“AFB”) located in
Florida. The value of the contract is estimated at approximately $510
million over a 50-year period and is subject to annual economic price
adjustment. Under the contract, there is a 10-month transition period to
ensure seamless operations are established and inventory assets are
fully accounted for in the contract.
“We are very excited to be awarded this contract, which marks an
important milestone in the growth strategy of our contracted services
business,” stated Robert J. Sprowls, President and CEO of American
States Water Company. “As with the other nine military installations
served by ASUS across the country, we are committed to delivering
premier water and wastewater services to the men, women and families
stationed at Eglin AFB.”
With the addition of Eglin AFB, ASUS now provides water and wastewater
utility services to three of the largest military installations in the
United States, including Fort Bragg in North Carolina and Fort Bliss in
Texas. Eglin AFB is located in northwest Florida, 60 miles east of
Pensacola and, at over 724 square miles (463,000 acres), is the largest
Air Force installation in the continental United States in terms of land
area. The base has more than 9,800 military, civilian, and contractor
personnel, providing essential base operating support and services.
Forward Looking Statements
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 most recent Form 10-Q and Form 10-K filed with the Securities
and Exchange Commission.
About American States Water Company
American States Water Company is the parent of Golden State Water
Company and American States Utility Services, Inc. Through its utility
subsidiary, Golden State Water Company, AWR provides water service to
approximately 260,000 customers located throughout 10 counties in
Northern, Coastal and Southern California. The Company also distributes
electricity to approximately 24,000 electric customers in the City of
Big Bear and surrounding areas in San Bernardino County, California.
Through its contracted services subsidiary, American States Utility
Services, Inc., the Company provides operations, maintenance and
construction management services for water and wastewater systems
located on military bases throughout the country through 50-year
privatization contracts with the U.S. government.
American States Water Company has paid dividends to shareholders every
year since 1931, increasing the dividends received by shareholders each
calendar year for 61 consecutive years, which places it in an exclusive
group of companies on the New York Stock Exchange that have achieved
that result.
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Source: American States Water Company
American States Water Company
Eva G. Tang
Senior Vice
President-Finance, Chief Financial Officer,
Corporate Secretary and
Treasurer
(909) 394-3600, ext. 707