SAN DIMAS, Calif.--(BUSINESS WIRE)--Apr. 13, 2017--
American States Water Company (NYSE:AWR) announced today that on April
12, 2017 the Board of Directors of Casitas Municipal Water District
(“Casitas”) approved a settlement agreement with Golden State Water
Company (“GSWC”), a wholly owned subsidiary of AWR, and a group of
citizens referred to as Ojai Friends of Locally Owned Water (“Ojai
FLOW”) to resolve an eminent domain action and other litigation brought
by Casitas and Ojai FLOW against GSWC. Under the terms of the settlement
agreement, Casitas will acquire the operating assets of GSWC’s Ojai
water system by eminent domain for approximately $34.5 million,
including payments for unpaid receivables and regulatory assets subject
to a post-closing final reconciliation. Under the agreement, Casitas and
Ojai FLOW have also agreed to dismiss all claims against GSWC, which
sought damages against GSWC stemming from Casitas’ proposal to issue
bonds to finance the acquisition of GSWC’s Ojai water system.
GSWC, which has owned and operated the 2,900-connection Ojai water
system since 1929, will continue operating the water system until all
conditions to the settlement agreement have completed. It is estimated
that the transaction will close in June 2017 following satisfaction of
all closing conditions.
“Golden State Water has proudly served Ojai for more than 85 years. We
are pleased with the terms of this settlement agreement, which we
believe will enable us to achieve a comprehensive resolution of this
eminent domain action. We look forward to working closely with Casitas
to facilitate a seamless transfer of ownership of the Ojai water
system,” said Robert J. Sprowls, President and Chief Executive Officer
of American States Water Company. “As we go through the transition, we
will ensure that Ojai customers continue to receive the same excellent
customer service from Golden State Water that they have been provided
for over eight decades,” Sprowls continued.
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 261,000 customers located within 75 communities throughout
10 counties in Northern, Coastal and Southern California. The company
also distributes electricity to approximately 24,000 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 under 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 62 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
Telephone: (909) 394-3600, ext. 707