CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2011	Dec. 31, 2010
Property, Plant and Equipment
Regulated utility plant, at cost	$ 1,274,724	$ 1,227,107
Non utility property, at cost	6,484	5,904
Utility plant, at cost	1,281,208	1,233,011
Less - Accumulated depreciation	(398,215)	(378,055)
Net property, plant and equipment	882,993	854,956
Other Property and Investments
Goodwill	1,116	1,116
Other property and investments	10,868	10,981
Total other property and investments	11,984	12,097
Current Assets
Cash and cash equivalents	11,262	4,197
Accounts receivable - customers	23,347	17,507
Unbilled revenue	23,832	20,348
Receivable from the U.S. government (less allowance for doubtful accounts of $0 in 2011 and $43 in 2010)	14,407	3,689
Other accounts receivable	9,565	7,808
Income taxes receivable	8,756	12,342
Materials and supplies, at average cost	2,487	2,161
Regulatory assets - current	33,944	34,152
Prepayments and other current assets	5,127	6,157
Costs and estimated earnings in excess of billings on uncompleted contracts	30,134	36,924
Deferred income taxes - current	9,312	8,816
Assets of discontinued operations (Note 10)		50,883
Total current assets	172,173	204,984
Regulatory and Other Assets
Regulatory assets	106,687	101,801
Other accounts receivable	4,029	3,777
Costs and estimated earnings in excess of billings on uncompleted contracts	10,942	5,824
Deferred income taxes	486	495
Other	8,585	8,101
Total regulatory and other assets	130,729	119,998
Total Assets	1,197,879	1,192,035
Capitalization
Common shares, no par value	229,228	227,385
Earnings reinvested in the business	163,581	150,156
Total common shareholders' equity	392,809	377,541
Long-term debt	340,395	299,839
Total capitalization	733,204	677,380
Current Liabilities
Notes payable to banks	12,000	60,900
Long-term debt - current	392	376
Accounts payable	57,972	36,155
Income taxes payable	521	2,277
Accrued employee expenses	8,878	8,084
Accrued interest	3,902	3,256
Deferred income taxes - current	29	88
Unrealized loss on purchased power contracts	7,475	6,850
Billings in excess of costs and estimated earnings on uncompleted contracts	19,033	16,808
Other	14,428	17,017
Liabilities of discontinued operations (Note 10)		27,031
Total current liabilities	124,630	178,842
Other Credits
Advances for construction	75,900	78,325
Contributions in aid of construction - net	97,976	95,460
Deferred income taxes	101,649	101,917
Unamortized investment tax credits	2,018	2,063
Accrued pension and other postretirement benefits	44,809	42,152
Billings in excess of costs and estimated earnings on uncompleted contracts	10,534	8,618
Other	7,159	7,278
Total other credits	340,045	335,813
Commitments and Contingencies (Note 9)
Total Capitalization and Liabilities	1,197,879	1,192,035
GOLDEN STATE WATER COMPANY
Property, Plant and Equipment
Utility plant, at cost	1,274,724	1,227,107
Less - Accumulated depreciation	(395,467)	(375,740)
Net property, plant and equipment	879,257	851,367
Other Property and Investments
Total other property and investments	8,385	8,899
Current Assets
Cash and cash equivalents	2,576	1,541
Accounts receivable - customers	23,347	17,507
Unbilled revenue	23,832	20,348
Inter-company receivable	28	2,057
Other accounts receivable	5,229	6,174
Income taxes receivable from Parent	11,536	7,421
Materials and supplies, at average cost	1,881	1,779
Regulatory assets - current	33,944	34,152
Prepayments and other current assets	4,835	5,695
Deferred income taxes - current	8,217	7,814
Total current assets	115,425	104,488
Regulatory and Other Assets
Regulatory assets	106,687	101,801
Other accounts receivable	4,029	3,777
Other	8,600	8,146
Total regulatory and other assets	119,316	113,724
Total Assets	1,122,383	1,078,478
Capitalization
Common shares, no par value	217,975	217,149
Earnings reinvested in the business	147,505	141,146
Total common shareholders' equity	365,480	358,295
Long-term debt	340,395	299,839
Total capitalization	705,875	658,134
Current Liabilities
Long-term debt - current	392	376
Accounts payable	48,013	25,463
Inter-company payable	5,706	34,575
Accrued employee expenses	7,827	7,212
Accrued interest	3,900	3,251
Unrealized loss on purchased power contracts	7,475	6,850
Other	14,215	16,032
Total current liabilities	87,528	93,759
Other Credits
Advances for construction	75,900	78,325
Contributions in aid of construction - net	97,976	95,460
Deferred income taxes	101,214	101,474
Unamortized investment tax credits	2,018	2,063
Accrued pension and other postretirement benefits	44,809	42,152
Other	7,063	7,111
Total other credits	328,980	326,585
Commitments and Contingencies (Note 9)
Total Capitalization and Liabilities	$ 1,122,383	$ 1,078,478

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2011	Dec. 31, 2010
Accounts receivable - customers, allowance for doubtful accounts	$ 669	$ 657
Receivable from the U.S. government, allowance for doubtful accounts	0	43
Other accounts receivable, allowance for doubtful accounts	393	338
GOLDEN STATE WATER COMPANY
Accounts receivable - customers, allowance for doubtful accounts	669	670
Other accounts receivable, allowance for doubtful accounts	$ 345	$ 355

CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Operating Revenues
Water	$ 80,151	$ 72,816	$ 144,477	$ 128,873
Electric	7,710	7,845	18,434	18,824
Contracted services	21,968	14,815	41,225	36,245
Total operating revenues	109,829	95,476	204,136	183,942
Operating Expenses
Water purchased	12,924	13,564	21,585	21,566
Power purchased for pumping	2,165	2,047	3,701	3,603
Groundwater production assessment	3,886	2,664	6,512	5,286
Power purchased for resale	2,854	2,876	6,729	6,545
Supply cost balancing accounts	4,245	4,686	9,324	8,501
Other operation expenses	6,946	7,262	13,863	13,946
Administrative and general expenses	18,305	16,568	37,289	35,196
Depreciation and amortization	9,538	8,365	19,275	16,724
Maintenance	4,623	4,375	8,349	8,568
Property and other taxes	3,406	3,281	6,958	6,903
ASUS construction expenses	11,926	8,633	23,545	16,801
(Gain) loss on sale of property	(128)	5	(128)	2
Total operating expenses	80,690	74,326	157,002	143,641
Operating Income	29,139	21,150	47,134	40,301
Other Income and Expenses
Interest expense	(6,869)	(5,870)	(12,613)	(11,528)
Interest income	161	158	298	819
Other	(289)	(69)	(209)	(5)
Total other income and expenses	(6,997)	(5,781)	(12,524)	(10,714)
Income from continuing operations before income tax expense	22,142	15,369	34,610	29,587
Income tax expense	9,414	6,499	14,927	12,427
Income from continuing operations	12,728	8,870	19,683	17,160
Income from discontinued operations, net of tax	3,234	105	3,868	305
Net Income	15,962	8,975	23,551	17,465
Basic Earnings Per Common Share
Income from continuing operations (in dollars per share)	$ 0.68	$ 0.47	$ 1.05	$ 0.92
Income from discontinued operations (in dollars per share)	$ 0.17	$ 0.01	$ 0.20	$ 0.02
Net Income - Basic (in dollars per share)	$ 0.85	$ 0.48	$ 1.25	$ 0.94
Fully Diluted Earnings Per Share
Income from continuing operations (in dollars per share)	$ 0.68	$ 0.47	$ 1.05	$ 0.91
Income from discontinued operations (in dollars per share)	$ 0.17	$ 0.01	$ 0.20	$ 0.02
Net Income - Diluted (in dollars per share)	$ 0.85	$ 0.48	$ 1.25	$ 0.93
Weighted Average Number of Shares Outstanding (in shares)	18,668	18,576	18,658	18,561
Weighted Average Number of Diluted Shares (in shares)	18,738	18,720	18,797	18,695
Dividends Declared Per Common Share (in dollars per share)	$ 0.28	$ 0.26	$ 0.54	$ 0.52
GOLDEN STATE WATER COMPANY
Operating Revenues
Water	80,151	72,816	144,477	128,873
Electric	7,710	7,845	18,434	18,824
Total operating revenues	87,861	80,661	162,911	147,697
Operating Expenses
Water purchased	12,924	13,564	21,585	21,566
Power purchased for pumping	2,165	2,047	3,701	3,603
Groundwater production assessment	3,886	2,664	6,512	5,286
Power purchased for resale	2,854	2,876	6,729	6,545
Supply cost balancing accounts	4,245	4,686	9,324	8,501
Other operation expenses	5,842	6,369	11,556	12,258
Administrative and general expenses	14,922	13,476	29,784	28,373
Depreciation and amortization	9,321	8,181	18,837	16,363
Maintenance	4,006	4,001	6,990	7,599
Property and other taxes	3,113	3,013	6,272	6,160
(Gain) loss on sale of property	(128)	5	(128)	5
Total operating expenses	63,150	60,882	121,162	116,259
Operating Income	24,711	19,779	41,749	31,438
Other Income and Expenses
Interest expense	(6,685)	(5,752)	(12,298)	(11,332)
Interest income	155	156	290	306
Other	(477)	(65)	(399)	(8)
Total other income and expenses	(7,007)	(5,661)	(12,407)	(11,034)
Income from continuing operations before income tax expense	17,704	14,118	29,342	20,404
Income tax expense	7,699	6,024	12,935	8,746
Net Income	$ 10,005	$ 8,094	$ 16,407	$ 11,658

CONSOLIDATED STATEMENTS OF CASH FLOW (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Cash Flows From Operating Activities:
Net income	$ 23,551	$ 17,465
Adjustments to reconcile net income to net cash provided by operating activities
Gain on sale of CCWC, net of taxes	(2,454)
Depreciation and amortization	19,275	17,690
Provision for doubtful accounts	577	553
(Gain) loss on sale of property	(128)	2
Deferred income taxes and investment tax credits	(216)	(931)
Stock-based compensation expense	969	952
Other - net	679	671
Changes in assets and liabilities:
Accounts receivable - customers	(6,318)	(113)
Unbilled revenue	(3,484)	(8,415)
Other accounts receivable	(1,159)	(93)
Receivable from the U.S. government	(10,718)	(65)
Materials and supplies	(326)	(345)
Prepayments and other current assets	1,030	1,376
Regulatory assets - supply cost balancing accounts	9,324	8,501
Costs and estimated earnings in excess of billings on uncompleted contracts	1,672	(8,487)
Other assets including other regulatory assets	(12,224)	(10,559)
Accounts payable	9,583	4,967
Income taxes receivable/payable from/to Parent	(2,202)	1,751
Billings in excess of costs and estimated earnings on uncompleted contracts	4,141	8,861
Accrued pension and other postretirement benefits	1,745	2,743
Other liabilities	(378)	(6,983)
Net cash provided	32,939	29,541
Cash Flows From Investing Activities:
Construction expenditures	(37,295)	(38,345)
Proceeds from the sale of CCWC	29,025
Other	(72)	86
Net cash used	(8,342)	(38,259)
Cash Flows From Financing Activities:
Proceeds from issuance of Common Shares and stock option exercises	953	1,316
Receipt of advances for and contributions in aid of construction	3,497	2,674
Refunds on advances for construction	(2,351)	(2,653)
Repayments of long-term debt	(22,279)	(283)
Proceeds from issuance of long-term debt, net of issuance costs	61,914
Net change in notes payable to banks	(48,900)	22,800
Dividends paid	(10,074)	(9,651)
Other - net	(292)	(142)
Net cash (used) provided	(17,532)	14,061
Net increase (decrease) in cash and cash equivalents	7,065	5,343
Cash and cash equivalents, beginning of period	4,197	1,685
Cash and cash equivalents, end of period	11,262	7,028
Less cash and cash equivalents of discontinued operations		425
Cash and cash equivalents of continuing operations	11,262	6,603
GOLDEN STATE WATER COMPANY
Cash Flows From Operating Activities:
Net income	16,407	11,658
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	18,837	16,363
Provision for doubtful accounts	498	526
(Gain) loss on sale of property	(128)	5
Deferred income taxes and investment tax credits	(65)	(948)
Stock-based compensation expense	853	690
Other - net	704	900
Changes in assets and liabilities:
Accounts receivable - customers	(6,318)	(84)
Unbilled revenue	(3,484)	(8,287)
Other accounts receivable	673	1,907
Materials and supplies	(102)	(226)
Prepayments and other current assets	860	1,393
Regulatory assets - supply cost balancing accounts	9,324	8,501
Other assets including other regulatory assets	(12,127)	(10,564)
Accounts payable	10,316	2,924
Inter-company receivable/payable	(840)	51
Income taxes receivable/payable from/to Parent	(4,115)	838
Accrued pension and other postretirement benefits	1,745	2,743
Other liabilities	24	(7,349)
Net cash provided	33,062	21,041
Cash Flows From Investing Activities:
Construction expenditures	(36,715)	(37,451)
Proceeds from the sale of property	144	83
Net cash used	(36,571)	(37,368)
Cash Flows From Financing Activities:
Proceeds from issuance of Common Shares to Parent		20,000
Receipt of advances for and contributions in aid of construction	3,497	2,601
Refunds on advances for construction	(2,351)	(2,653)
Repayments of long-term debt	(22,279)	(283)
Proceeds from issuance of long-term debt, net of issuance costs	61,914
Net change in inter-company borrowings	(26,000)	5,400
Dividends paid	(10,000)	(9,600)
Other - net	(237)	(87)
Net cash (used) provided	4,544	15,378
Net increase (decrease) in cash and cash equivalents	1,035	(949)
Cash and cash equivalents, beginning of period	1,541	1,096
Cash and cash equivalents, end of period	2,576	147
Cash and cash equivalents of continuing operations	$ 2,576

Summary of Significant Accounting Policies:

6 Months Ended

Jun. 30, 2011

Summary of Significant Accounting Policies:

Summary of Significant Accounting Policies:

Note 1 — Summary of Significant Accounting Policies:

Nature of Operations: American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”) and American States Utility Services, Inc. (“ASUS”) (and its subsidiaries, Fort Bliss Water Services Company (“FBWS”), Terrapin Utility Services, Inc. (“TUS”), Old Dominion Utility Services, Inc. (“ODUS”), Palmetto State Utility Services, Inc. (“PSUS”) and Old North Utility Services, Inc. (“ONUS”)). The subsidiaries of ASUS may be collectively referred to herein as the “Military Utility Privatization Subsidiaries.” Through May 31, 2011, AWR was also the parent company of Chaparral City Water Company (“CCWC”).

GSWC is a public utility engaged principally in the purchase, production, distribution and sale of water in California serving approximately 256,000 customers. GSWC also distributes electricity in several San Bernardino Mountain communities serving approximately 23,000 customers. The California Public Utilities Commission (“CPUC”) regulates GSWC’s water and electric businesses, including properties, rates, services, facilities and other matters. AWR’s assets and operating income are primarily those of GSWC.

ASUS performs water and wastewater services and operations on a contract basis. Through its wholly owned subsidiaries, ASUS operates and maintains the water and/or wastewater systems at various military bases pursuant to 50-year fixed price contracts, which are subject to periodic price redeterminations and modifications for changes in circumstances, changes in laws and regulations and changes in wages and fringe benefits to the extent provided in each of the contracts. There is no direct regulatory oversight by the CPUC over AWR or the operation, rates or services provided by ASUS or any of its wholly owned subsidiaries.

As more fully described in Note 10, on June 7, 2010, AWR entered into a stock purchase agreement with EPCOR Water (USA) Inc. to sell all of the common shares of CCWC for an initial purchase price of $34.7 million, including the assumption of approximately $5.6 million of long-term debt. The sale was approved by the Arizona Corporation Commission in April 2011 and the transaction closed on May 31, 2011. At closing, $29.0 million in cash was paid to AWR, which was used primarily to pay down short-term borrowings.

Basis of Presentation: The consolidated financial statements and notes thereto are being presented in a combined report being filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified.

The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries, all of which are wholly owned. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Inter-company transactions and balances have been eliminated in the AWR consolidated financial statements. The assets and liabilities of CCWC have been classified as current assets and liabilities held for sale as of December 31, 2010. The operational results for the periods presented and the gain on disposal of CCWC are reported in discontinued operations, net of transaction costs. The consolidated financial statements included herein have been prepared by Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America for annual financial statements have been condensed or omitted pursuant to such rules and regulations. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting of normal, recurring items and estimates necessary for a fair statement of the results for the interim periods, have been made. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2010 filed with the SEC.

GSWC’s Related Party Transactions: GSWC and other subsidiaries provide and receive various services to and from their parent, AWR, and among themselves. In addition, AWR has a $100 million syndicated credit facility. AWR borrows under this facility and provides funds to its subsidiaries, including GSWC, in support of their operations. Amounts owed to AWR for borrowings under this facility are included in inter-company payables on GSWC’s balance sheets as of June 30, 2011 and December 31, 2010. The interest rate charged to GSWC and other affiliates is sufficient to cover AWR’s interest cost under the credit facility. GSWC also allocates certain corporate office administrative and general costs to its affiliates using allocation factors mandated by the CPUC.

Long-Term Debt: On April 14, 2011 GSWC sold $62.0 million in aggregate principal amount of its 6% Notes (“the Notes”). The Notes will mature on April 15, 2041. Interest on the Notes is payable semi-annually in arrears on April 15 and October 15, at the rate of 6% per annum. The Notes are unsecured and unsubordinated and rank equally with all of GSWC’s unsecured and unsubordinated debt. A portion of the proceeds were used in May 2011 to redeem $22.0 million of GSWC’s 7.65% Medium-Term Notes, Series B and to pay a redemption premium of $421,000. The remainder of the proceeds was used to pay down short-term borrowings from AWR and to fund capital expenditures.

Sales and Use Taxes: GSWC bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which GSWC pays to various municipalities (based on ordinances adopted by these municipalities) in order to use public right of way for utility purposes. GSWC bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of GSWC’s ability to collect from the customer, are accounted for on a gross basis. GSWC’s franchise fees billed to customers and recorded as operating revenue were approximately $764,000 and $715,000 for the three months ended June 30, 2011 and 2010, respectively, and $1,464,000 and $1,400,000 for the six months ended June 30, 2011 and 2010, respectively. When GSWC acts as an agent, and the tax is not required to be remitted if it is not collected from the customer, the taxes are accounted for on a net basis.

Depending on the state in which the operations are conducted, ASUS and its subsidiaries are also subject to certain state non-income tax assessments generally computed on a “gross receipts” or “gross revenues” basis. These non-income tax assessments are required to be paid regardless of whether the subsidiary is reimbursed by the U.S. government for these assessments under its 50-year contracts with the U.S. government. The non-income tax assessments are accounted for on a gross basis and totaled $171,000 and $144,000 during the three months ended June 30, 2011 and 2010, respectively, and $365,000 and $439,000 for the six months ended June 30, 2011 and 2010, respectively.

Recently Adopted Accounting Pronouncements: In October 2009, the Financial Accounting Standards Board (“FASB”) issued an update to the accounting standards and provided amendments to the criteria of Accounting Standards Codification Topic 605, “Revenue Recognition,” for separately recognizing consideration in multiple-deliverable arrangements. The amendments establish a selling price hierarchy for determining the selling price of a deliverable. This guidance was effective for the Registrant beginning January 1, 2011 and did not have any impact on its consolidated financial statements.

In January 2010, the FASB issued an update to the accounting standards and amended the disclosure guidance with respect to fair value measurements. Specifically, the new guidance requires disclosure of amounts transferred in and out of Levels 1 and 2 fair value measurements, a reconciliation presented on a gross basis rather than a net basis of activity in Level 3 fair value measurements, greater disaggregation of the assets and liabilities for which fair value measurements are presented and more robust disclosure of the valuation techniques and inputs used to measure Level 2 and 3 fair value measurements. The adoption of this guidance had no impact on Registrant’s consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on Registrant’s consolidated financial statements upon adoption.

Regulatory Matters:

6 Months Ended

Jun. 30, 2011

Regulatory Matters:

Regulatory Matters:

Note 2 — Regulatory Matters:

In accordance with accounting principles for rate-regulated enterprises, Registrant records regulatory assets, which represent probable future revenue associated with certain costs that will be recovered from customers through the ratemaking process, and regulatory liabilities, which represent probable future reductions in revenue associated with amounts that are to be credited to customers through the ratemaking process. At June 30, 2011, Registrant had approximately $34.7 million of regulatory assets not accruing carrying costs. Of this amount, $29.4 million relates to the underfunded positions of the pension and other post-retirement obligations, $3.6 million relates to deferred income taxes representing accelerated tax benefits flowed through to ratepayers, which will be included in rates concurrently with recognition of the associated future tax expense, and $7.5 million relates to a memorandum account authorized by the CPUC to track unrealized gains and losses on GSWC’s purchase power contracts over the life of the contract. The remainder relates to other items that do not provide for or incur carrying costs that Registrant expects to be reflected in rates over a short period. Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets for continuing operations are as follows:

(dollars in thousands)	June 30, 2011			December 31, 2010
GSWC
Electric supply cost balancing account	$	8,906		$	10,305
Water supply cost balancing accounts	1,810			3,374
Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account	37,188			30,890
Base Revenue Requirement Adjustment Mechanism	3,170			1,889
Water Conservation Memorandum Account	1,129			1,435
Costs deferred for future recovery on Aerojet case	17,868			18,309
Pensions and other post-retirement obligations	31,509			32,191
Derivative unrealized loss (Note 4)	7,475			6,850
Flow-through taxes, net	3,627			4,270
Electric transmission line abandonment costs	2,535			2,638
Asset retirement obligations	2,818			2,711
Low income rate assistance balancing accounts	4,580			4,657
General rate case memorandum accounts	17,430			20,404
Santa Maria adjudication memorandum accounts	3,744			3,737
Bay Point balancing account	4,889			—
Other regulatory assets, net	6,198			6,754
Various refunds to customers	(14,245		)	(14,461		)
Total	$	140,631		$	135,953

Regulatory matters are discussed in detail in the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2010 filed with the SEC. The discussion below focuses on significant matters and changes since December 31, 2010.

Electric Supply Cost Balancing Accounts:

Electric power costs incurred by GSWC’s Bear Valley Electric Service (“BVES”) division continue to be charged to its electric supply cost balancing account. The under-collection in the electric supply cost balancing account is $8.9 million at June 30, 2011. During the six months ended June 30, 2011, the under-collection decreased by approximately $1.4 million primarily as a result of a payment of a surcharge by its customers of 2.2¢ per kilowatt hour. In addition, BVES is only allowed to include its actual recorded purchased energy costs up to a weighted annual average cost of $77 per megawatt-hour (“MWh”) through August 2011 in its electric supply cost balancing account.

GSWC’s current power contract provides for 13 megawatts (“MW”) of electric energy at a fixed price of $67.75 per MWh during 2011 as compared to the $77 per MWh included in rates. The reduction in the actual price of purchased power helps decrease the under-collection balance in the electric supply cost balancing account. To the extent that the actual weighted average annual cost for power purchased exceeds the $77 per MWh amount prior to September 1, 2011, GSWC will not be able to include these amounts in its balancing account and such amounts will be expensed. There were no amounts expensed over the $77 per MWh cap during the three and six months ended June 30, 2011 and 2010.

As of June 30, 2011, the electric supply cost balancing account consists of $4.5 million for costs of abandonment of a transmission line upgrade and $4.4 million for changes in purchased energy and power system delivery costs.

Water Supply Cost Balancing Accounts:

Prior to the implementation of the Modified Cost Balancing Account (“MCBA”) further discussed below, Registrant maintained water supply cost balancing accounts for GSWC to account for under-collections and over-collections of revenues designed to recover such costs. These supply cost balancing accounts tracked differences between the current cost for supply items (water, power and pump taxes) charged by GSWC’s suppliers and the cost for those items incorporated into GSWC’s rates. Under-collections (recorded as regulatory assets) occurred when the current cost exceeded the amount in rates for these items and, conversely, over-collections (recorded as regulatory liabilities) occurred when the current cost of these items were less than the amount in rates. Typically, under-collections or over-collections, when they occurred, were tracked in the supply cost balancing accounts for future recovery or refund through a surcharge (in the event of an under-collection) or through a surcredit (in the event of an over-collection) on customers’ bills. Registrant accrues interest on its supply cost balancing accounts at the rate prevailing for 90-day commercial paper.

As of June 30, 2011, there is a $1.8 million net under-collection remaining in the water supply cost balancing accounts relating to GSWC’s Region I. Currently, there are surcharges in place to recover these under-collections. When these surcharges expire, any unrecovered balances will be included for recovery in a future filing.

The MCBA account replaces the water supply cost balancing account. Under the MCBA, GSWC is permitted to recover supply costs related to changes in water supply mix in addition to rate changes by GSWC’s suppliers.

Water Revenue Adjustment Mechanism (“WRAM”) and Modified Cost Balancing Account (“MCBA”):

GSWC records the difference between what it bills its water customers and that which is authorized by the CPUC using the WRAM and MCBA accounts approved by the CPUC.

Under the WRAM, GSWC records the adopted level of volumetric revenues as authorized by the CPUC for metered accounts (adopted volumetric revenues). The adopted volumetric revenues consider the seasonality of consumption of water based upon historical averages. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as a component of revenue with an offsetting entry to an asset or liability balancing account (tracked individually for each rate making area). The variance amount may be positive or negative and represents amounts that will be billed or refunded to customers in the future. The WRAM only applies to customer classes with conservation rates in place. Currently, the majority of GSWC’s water customers have conservation tiered rate billing structures.

Under the MCBA, GSWC began tracking adopted and actual expense levels for purchased water, purchased power and pump taxes, as established by the CPUC. GSWC records the variances (which include the effects of changes in both rate and volume) between adopted and actual purchased water, purchased power and pump tax expenses. GSWC recovers from or refunds to customers the amount of such variances at a later date. GSWC tracks these variances individually for each rate-making area. Unlike the WRAM, the MCBA applies to all customer classes.

The balances in the WRAM and MCBA assets and liabilities accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results. The recovery or refund of the WRAM is netted against the MCBA over- or under-collection for each rate-making area. Balances in these accounts bear interest at the current 90-day commercial paper rate.

GSWC intends to seek approval from the CPUC to refund or collect the balance in these accounts when the net amount at the end of the calendar year for Regions II and III and any ratemaking area in Region I achieves a pre-determined level (i.e., at least 2.5 percent over- or under-recovery of the approved revenue requirement).

In March 2010, surcharges were put in place to recover $18.3 million of amounts accumulated, as of December 31, 2009, in Regions II and III’s WRAM, net of MCBA and supply cost balancing accounts. During 2010, surcharges were implemented for recovery of $2.1 million of the Region I WRAM accounts, net of the MCBA.

In March 2011, GSWC filed for recovery of its 2010 WRAM and MCBA balances for a total of $19.6 million. Surcharges have been put in place to recover this amount. Included in this amount is approximately $1.2 million representing balances from the water supply cost balancing accounts. Based on CPUC guidelines, recovery periods relating to the 2010 balances will range between 12 and 36 months. In September 2010, GSWC, along with other California water utilities, filed an application with the CPUC to modify the recovery period of the WRAM and MCBA accounts to 24 months or less. A decision on this application is expected in 2011.

For the three and six months ended June 30, 2011, surcharges of approximately $4.0 million and $5.6 million, respectively, were billed to customers to collect previously incurred under-collections in the WRAM, net of MCBA balancing accounts. As of June 30, 2011, GSWC had a net aggregated regulatory asset of $37.2 million which is comprised of a $58.4 million under-collection in the WRAM accounts and a $21.2 million over-collection in the MCBA accounts.

Aerojet Litigation Memorandum Account:

On July 21, 2005, the CPUC authorized GSWC to collect approximately $21.3 million of the Aerojet litigation memorandum account, through a rate surcharge, which will continue for no longer than 20 years. Beginning in October 2005, new rates went into effect to begin amortizing the memorandum account over a 20-year period. A rate surcharge generating approximately $264,000 and $211,000 was billed to customers during the three months ended June 30, 2011 and 2010, respectively, and approximately $459,000 and $392,000 for the six months ended June 30, 2011 and 2010, respectively. GSWC will keep the Aerojet memorandum account open until the earlier of full amortization of the balance or 20 years. However, no costs will be added to the memorandum account, other than on-going interest charges approved by the CPUC decision.

Aerojet has also agreed to reimburse GSWC $17.5 million, plus interest accruing from January 1, 2004, for GSWC’s past legal and expert costs, which is included in the Aerojet litigation memorandum account. The reimbursement of the $17.5 million is contingent upon the issuance of land use approvals for development in a defined area within Aerojet property in Eastern Sacramento County and the receipt of certain fees in connection with such development.

At this time, management believes the full balance of the Aerojet litigation memorandum account will be collected either from customers or Aerojet.

General Rate Case Memorandum Accounts:

The balance in the general rate case memorandum accounts represents the revenue differences between interim rates and final rates authorized by the CPUC due to delays in receiving decisions on various general rate case applications. As of June 30, 2011, there is an aggregate $17.4 million in the general rate case memorandum accounts. The majority of this amount relates to the final decision issued by the CPUC in November 2010 on the Region II, Region III and general office rate case for rates in years 2010, 2011 and 2012. Due to delays in issuing a decision on this rate case, interim rates for Region II and Region III were established effective January 1, 2010. The final decision approved rate increases retroactive to January 1, 2010. Accordingly, in November 2010 GSWC recorded a $19.5 million regulatory asset representing the difference between interim rates and the final rates authorized by the CPUC. Effective January 1, 2011, a twenty-four month surcharge went into effect to collect the $19.5 million retroactive portion of the revenue increase. During the three and six months ended June 30, 2011, approximately $2.0 million and $3.0 million, respectively, have been collected from customers. If GSWC has not fully recovered the amount of this under-collection at the end of the twenty-four month period, GSWC will seek recovery of any amounts not recovered through this surcharge.

Excess Usage Charges - Refund to Customers:

In July 2009, GSWC began receiving reduced water allocations from member agencies of the Metropolitan Water District of Southern California (“MWD”). As a result, in July 2009, GSWC began implementing water rationing, restrictions, and excess usage charges to its customers in several of its service areas. The excess usage charges were being collected in the event that penalties were required to be paid to MWD for exceeding GSWC’s water allocations. Because GSWC was able to comply with the reduced water allocations from MWD, it will not have to remit to MWD these excess usage charges collected from its customers. In May 2011, GSWC ended water rationing to its customers. As of June 30, 2011, GSWC has excess usage charges totaling $2.8 million recorded as a regulatory liability. In July 2011, GSWC filed advice letters with the CPUC seeking authorization to refund these amounts to customers in the service areas which had water rationing. If approved, GSWC will refund the excess usage charges through a two month surcredit.

Bay Point Balancing Account:

In August 2009, GSWC filed an application with the CPUC requesting authorization to implement corrective measures to address water quality problems in its Bay Point water system. These corrective measures include: (i) retiring an existing water treatment plant and purchasing water from Contra Costa Water District (“CCWD”); (ii) entering into an agreement with CCWD for a capacity right to 4.4 million gallons per day of treated water for a one-time price of $4.7 million; (iii) recovering costs associated with the purchase of additional treated water to replace purchased raw water; and (iv) amending tariffs to appropriately charge GSWC’s Bay Point customers for the cost of the asset lease agreement with CCWD. In June 2011, the CPUC issued a resolution in this matter which approved the contract with CCWD and authorized GSWC to establish a balancing account to record and recover from customers the $4.7 million payment for use of CCWD’s treatment plant. As of June 30, 2011, GSWC has established a regulatory asset for the one-time payment to CCWD totaling $4.9 million (as adjusted for cost index escalation), which will be recovered in future rates from customers. In July 2011, the CPUC issued a proposed decision on the ratemaking treatment for the abandoned water treatment plant and the agreement with CCWD. The CPUC has authorized GSWC to amortize both the un-depreciated value of the retired treatment plant and the agreement with CCWD over a six year period and to earn the projected cost of incremental debt used in GSWC’s 2008 cost of capital filing of 8.3%.

Other Regulatory Matters:

Bear Valley Electric Service:

GSWC’s BVES division has been regularly filing compliance reports with the CPUC regarding its purchases of energy from renewable energy resources. The filings have indicated that BVES has not achieved interim target purchase levels of renewable energy resources and thus, on its face, might be subject to a potential penalty. However, BVES expects that the CPUC will waive any potential fines in accordance with the CPUC’s flexible compliance rules. Accordingly, no provision for loss has been recorded in the financial statements as of June 30, 2011. BVES is continuing its efforts to procure renewable resources.

In September 2009, GSWC entered into a ten-year contract with the Los Angeles County Sanitation District (“LACSD”) to purchase renewable energy created from landfill gas. In June 2010, GSWC filed an application with the CPUC for approval. In February 2011, GSWC was notified that the landfill gas-generated energy contract with the LACSD could potentially be terminated should LACSD determine to shut down the landfill gas generator. GSWC informed the CPUC of the potential termination of this contract. The contract was approved by the CPUC in June 2011.

In July 2011, GSWC and LACSD entered into a settlement agreement to modify the contract. Pursuant to the settlement agreement, LACSD will provide GSWC with renewable energy from the landfill gas generator through September 30, 2011, the date at which LACSD intends to cease operation of the generator. In addition, LACSD will also sell to GSWC renewable energy credits (“REC”) at $30 per REC. GSWC intends to file for approval with CPUC for the purchase of these RECs.

In November 2010, the contracted bioenergy vendor for the purchase of biogas advised GSWC that the biogas production will be suspended due to financial constraints. As a result of the suspension, BVES has negotiated a Biogas Option Agreement with this vendor for the purchase of future production of biogas. In March, 2011, GSWC and the Division of Ratepayer Advocates reached a settlement agreement on this Biogas Option Agreement. In June 2011, the settlement agreement was approved by the CPUC.

BVES believes that it will not be subject to fines under the CPUC’s flexible compliance rules for not meeting interim targets due to its efforts to procure renewable energy resources.

New Tax Law:

In June 2011, the CPUC adopted a resolution that requires water utilities to file advice letters implementing a one-way memorandum account to track the revenue effects associated with the Tax Relief Act, which may reduce revenue requirements in future rate case proceedings. The effective date of the memorandum account established by the resolution is April 14, 2011. More specifically, the memorandum account established by the resolution will track on a CPUC-jurisdictional, revenue requirement basis: (a) decreases in each impacted utility’s revenue requirement resulting from increases in its deferred tax reserve; and (b) other direct changes in the revenue requirement resulting from taking advantage of the Tax Relief Act. This resolution also authorizes impacted utilities to use savings from this new tax law to invest in certain additional, needed utility infrastructure, not otherwise funded in rates, within a time frame shorter than would be practicable through the formal application or advice letter processes. The establishment of a memorandum account does not change rates, nor guarantee that rates will be changed in the future. This mechanism simply allows the CPUC to determine at a future date whether rates should be changed. GSWC has evaluated the potential impact of this resolution and does not expect it to have a material impact on its consolidated financial statement in 2011.

Pending Regulatory Matters:

Registrant records loss contingencies when an unfavorable outcome of a matter is deemed to be probable and the loss is reasonably estimable. Registrant will accrue the most likely amount when such an amount can be reasonably estimated or, at least the minimum of the range of probable loss when a range of probable loss can be estimated. Management determines the likelihood of an unfavorable outcome based on many factors such as the nature of the matter, available defenses, progress of the matter, views and opinions of legal counsel and other advisors, among others.

On February 15, 2007, the CPUC issued a subpoena to GSWC in connection with an investigation of certain work orders and charges paid to a specific contractor used previously by GSWC for numerous construction projects estimated to total $24.0 million over a period of 14 years. The CPUC’s investigation focused on whether GSWC was overcharged for these construction projects and whether these overcharges, if any, were included in customer rates. The construction projects completed by this specific contractor related primarily to work on water treatment and pumping plants which have been placed in service and are used and useful. In June 2007, GSWC received notification from the CPUC that it was instituting an audit to examine for the period 1994 to the present, GSWC’s policies, procedures, and practices regarding the granting or awarding of construction contracts or jobs.

On June 27, 2011, GSWC executed a settlement agreement with the Division of Water and Audits (“DWA”) of the CPUC that, if approved by the CPUC, would resolve the investigation. Also on June 27, 2011, GSWC and DWA jointly filed this settlement agreement for CPUC approval. A decision by the CPUC is expected later this year. Among other things, the settlement agreement resolves all disputes and disagreements between GSWC and DWA and, upon CPUC approval, the CPUC will generally release GSWC from any claim, known or unknown, foreseen or unforeseen, that arose or may have arisen as a result of the CPUC staff’s investigation into GSWC’s procurement practices as they related to contracts with this specific contractor.

Upon approval by the CPUC, the settlement provides for refunds to customers totaling $9.5 million to be made over a period of 12-36 months, as well as a reduction in rate-base and other rate adjustments totaling $3.0 million. In addition, a penalty of $1.0 million will be paid by GSWC based on a concern that GSWC should have, but failed to, disclose the issues to the CPUC. GSWC recorded a loss contingency reserve in 2010 for this matter in anticipation of this settlement agreement. Therefore, no further change to the reserve was required during the three and six months ended June 30, 2011. Management does not expect future increases in the reserve related to this specific contractor.

Finally, as part of the settlement agreement, GSWC agreed to be subject to three separate independent audits of its procurement practices over a period of ten years from the date the settlement is approved by the CPUC. The audits will cover GSWC’s procurement practices from 1994 forward and could result in further disallowances of costs. The cost of the audits will be borne by shareholders and may not be recovered by GSWC in rates to customers. At this time, management cannot predict the outcome or costs of these audits.

Earnings per Share/Capital Stock:

6 Months Ended

Jun. 30, 2011

Earnings per Share/Capital Stock:

Earnings per Share/Capital Stock:

Note 3 — Earnings per Share/Capital Stock:

In accordance with the accounting guidance for participating securities and earnings per share (“EPS”), Registrant uses the “two-class” method of computing EPS. The “two-class” method is an earnings allocation formula that determines EPS for each class of common stock and participating security. AWR has participating securities related to stock options and restricted stock units that earn dividend equivalents on an equal basis with AWR’s Common Shares (the “Common Shares”) that have been issued under AWR’s 2000 and 2008 Employee Plans and the 2003 Directors Plan. In applying the “two-class” method, undistributed earnings are allocated to both common shares and participating securities. The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating basic net income per share:

Basic			For The Three Months Ended June 30,				For The Six Months Ended June 30,
(in thousands, except per share amounts)			2011		2010		2011		2010
Net income from continuing operations			$	12,728	$	8,870	$	19,683	$	17,160
Net income from discontinued operations			3,234		105		3,868		305
Total net income			15,962		8,975		23,551		17,465
Less: (a)		Distributed earnings to common shareholders	5,227		4,830		10,075		9,652
		Distributed earnings to participating securities	36		26		64		48
Undistributed earnings			10,699		4,119		13,412		7,765

(b)	Undistributed earnings allocated to common shareholders		10,625		4,098		13,327		7,727
	Undistributed earnings allocated to participating securities		74		21		85		38

Total income available to common shareholders, basic (a)+(b)			$	15,852	$	8,928	$	23,402	$	17,379

Weighted average Common Shares outstanding, basic			18,668		18,576		18,658		18,561

Basic earnings per Common Share:
Income from continuing operations			$	0.68	$	0.47	$	1.05	$	0.92
Income from discontinued operations			0.17		0.01		0.20		0.02
Net Income			$	0.85	$	0.48	$	1.25	$	0.94

Diluted EPS is based upon the weighted average number of Common Shares, including both outstanding shares and shares potentially issuable in connection with stock options granted under Registrant’s 2000 and 2008 Employee Plans, and the 2003 Directors Plan, and net income. At June 30, 2011 and 2010, there were 708,345 and 742,387 options outstanding, respectively, under these Plans. At June 30, 2011 and 2010, there were also 135,611 and 104,498 restricted stock units outstanding, respectively.

The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share:

Diluted	For The Three Months Ended June 30,				For The Six Months Ended June 30,
(in thousands, except per share amounts)	2011		2010		2011		2010
Common shareholders earnings, basic	$	15,852	$	8,928	$	23,402	$	17,379
Undistributed earnings for dilutive stock options	74		21		85		38
Total common shareholders earnings, diluted	$	15,926	$	8,949	$	23,487	$	17,417

Weighted average common shares outstanding, basic	18,668		18,576		18,658		18,561
Stock-based compensation (1)	70		144		139		134
Weighted average common shares outstanding, diluted	18,738		18,720		18,797		18,695

Diluted earnings per Common Share:
Income from continuing operations	$	0.68	$	0.47	$	1.05	$	0.91
Income from discontinued operations	0.17		0.01		0.20		0.02
Net Income	$	0.85	$	0.48	$	1.25	$	0.93

(1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 465,824 and 395,833 stock options at June 30, 2011 and 2010, respectively, were deemed to be outstanding in accordance with accounting guidance on earnings per share. All of the 135,611 and 104,498 restricted stock units at June 30, 2011 and 2010, respectively, were included in the calculation of diluted EPS for the six months ended June 30, 2011 and 2010.

Stock options of 241,921 and 112,026 were outstanding at June 30, 2011 and 2010, respectively, but not included in the computation of diluted EPS because the related option exercise price was greater than the average market price of AWR’s Common Shares for the six months ended June 30, 2011 and 2010. Stock options of 600 and 234,528 were outstanding at June 30, 2011 and 2010, respectively, but not included in the computation of diluted EPS because they were anti-dilutive.

During the six months ended June 30, 2011 and 2010, Registrant issued 49,456 and 57,299 Common Shares, for approximately $953,000 and $1,316,000, respectively, under Registrant’s Common Share Purchase and Dividend Reinvestment Plan, the 401(k) Plan, and the stock incentive plans. In addition, Registrant purchased 159,383 and 67,241 Common Shares on the open market during the six months ended June 30, 2011 and 2010, respectively, under Registrant’s 401(k) Plan and the Common Share Purchase and Dividend Reinvestment Plan. The Common Shares purchased by Registrant were used to satisfy the requirements of these plans.

During the three months ended June 30, 2011 and 2010, AWR paid quarterly dividends of approximately $5.2 million, or $0.28 per share, and $4.8 million, or $0.26 per share, respectively. During the six months ended June 30, 2011 and 2010, AWR paid quarterly dividends to shareholders of approximately $10.1 million, or $0.54 per share, and $9.7 million, or $0.52 per share.

- Definition

The entire disclosure for earnings per share.

+ References+ Details

Derivative Instruments:

6 Months Ended

Jun. 30, 2011

Derivative Instruments:

Derivative Instruments:

Note 4 — Derivative Instruments:

In October 2008, GSWC executed a purchased power contract that permits GSWC to purchase power at a fixed cost over three and five year terms depending on the amount of power and the period during which the power is purchased under the contract. The contract is subject to the accounting guidance for derivatives and requires mark-to-market derivative accounting. GSWC began receiving power under this contract on January 1, 2009. In May 2009, the CPUC issued a final decision approving the contract and authorized GSWC to establish a regulatory asset and liability memorandum account to offset the entries required by the accounting guidance. Accordingly, all unrealized gains and losses generated from the new purchased power contract will be deferred on a monthly basis into a non-interest bearing regulatory memorandum account that will track the changes in fair value of the derivative throughout the term of the contract. As of June 30, 2011 there was a $7.5 million cumulative unrealized loss which has been included in the memorandum account. This memorandum account does not impact GSWC’s earnings.

Registrant adopted accounting guidance for fair value measurements effective January 1, 2008 for financial assets and liabilities measured on a recurring basis. This guidance applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. There was no impact in the adoption of this accounting guidance to the consolidated financial statements. However, the accounting guidance requires disclosure that establishes a framework for measuring fair value and expands disclosure about fair value measurements. The guidance requires fair value measurements to be classified and disclosed in one of the following three categories:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability, or

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

Registrant’s valuation model utilizes various inputs that include quoted market prices for energy over the duration of the contract. The market prices used to determine the fair value for this derivative instrument were estimated based on independent sources such as broker quotes and publications that are not observable in or corroborated by the market. Registrant receives one broker quote to determine the fair value of its derivative instrument. When such inputs have a significant impact on the measurement of fair value, the instrument is categorized in Level 3. Accordingly, the valuation of the derivative on Registrant’s new purchased power contract has been classified as Level 3 for all periods presented.

The following table presents changes in the fair value of the derivative for the three and six months ended June 30, 2011 and 2010.

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(dollars in thousands)	2011			2010			2011			2010
Balance, at beginning of the period	$	(6,874	)	$	(10,038	)	$	(6,850	)	$	(7,338	)
Unrealized gain (loss) on purchased power contracts	(601		)	486			(625		)	(2,214		)
Balance, at end of the period	$	(7,475	)	$	(9,552	)	$	(7,475	)	$	(9,552	)

For the three and six months ended June 30, 2011 and 2010, the unrealized gains and losses were included in regulatory assets due to regulatory mechanisms in place effective January 1, 2009.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

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+ Details

Fair Value of Financial Instruments:

6 Months Ended

Jun. 30, 2011

Fair Value of Financial Instruments:

Fair Value of Financial Instruments:

Note 5 — Fair Value of Financial Instruments:

For cash and cash equivalents, accounts receivable, accounts payable and short-term debt, the carrying amount is assumed to approximate fair value due to the short-term nature of the amounts. The table below estimates the fair value of long-term debt held by GSWC. Rates available to GSWC at June 30, 2011 and December 31, 2010 for debt with similar terms and remaining maturities were used to estimate fair value for long-term debt. Changes in the assumptions will produce differing results.

	June 30, 2011				December 31, 2010
(dollars in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial liabilities:
Long-term debt—GSWC	$	340,787	$	388,560	$	300,215	$	356,005

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details

Military Privatization:

6 Months Ended

Jun. 30, 2011

Military Privatization:

Military Privatization:

Note 6 — Military Privatization:

ASUS, through its wholly-owned subsidiaries, has entered into agreements with the U.S. government to operate and maintain the water and/or wastewater systems at various military bases pursuant to 50-year, firm fixed price contracts, subject to periodic prospective price redeterminations and modifications for changes in circumstances, changes in laws and regulations, and changes in wages and fringe benefits to the extent provided in each of the contracts.

The amounts charged by the Military Utility Privatization Subsidiaries for water and/or wastewater services at the respective military bases are based upon the terms of the 50-year contracts between ASUS or its subsidiaries and the U.S. government and include a monthly net fixed price for operation and maintenance, and for an amount to cover renewals and replacements for the first two years of the contract. Under the terms of each of these contracts, prices are to be redetermined at the end of the initial two year period and every three years thereafter, unless otherwise agreed to by the parties to a contract. In addition, prices may be equitably adjusted for changes in law and other circumstances. These adjustments can be retrospective and/or prospective. ASUS has experienced delays in obtaining readjustment of prices and equitable adjustments as required by the terms of these contracts. However, in the first quarter of 2010, ASUS recorded $5.6 million in additional revenues (approximately $5.3 million of which was retroactive through December 31, 2009) for two contract modifications approved by the U.S. government for requests for equitable adjustment regarding inventory levels at Fort Bragg and Fort Bliss.

Revenues from firm, fixed-price construction contracts are recognized based on the percentage-of-completion method of accounting. In accordance with generally accepted accounting principles, revenue recognition under the percentage-of-completion method requires ASUS to estimate the progress toward completion on a contract in terms of efforts (costs incurred) or in terms of results achieved (such as units constructed). Construction costs include all direct material and labor costs charged by subcontractors and those indirect costs related to contract performance, such as indirect labor, supplies, and tools.

Revisions in estimated contract profits are made in the period in which circumstances requiring the revision become known. During the second quarter of 2011, a change in estimated costs to complete a water and wastewater pipe replacement project at Fort Bragg was made as a result of successful negotiations with contractors providing construction services to reduce the estimated cost to complete the pipeline replacement work. The effect of the change in cost estimates resulted in an increase in pretax operating income of $2.9 million for work previously performed by ONUS on this project. The project is scheduled to be completed by early 2014.

Income Taxes:

6 Months Ended

Jun. 30, 2011

Income Taxes:

Income Taxes:

Note 7 — Income Taxes:

As a regulated utility, GSWC treats certain temporary differences as flow-through adjustments in computing its income tax provision consistent with the income tax approach approved by the CPUC for ratemaking purposes. Flow-through adjustments increase or decrease tax expense in one period, with an offsetting increase or decrease occurring in another period. Giving effect to these temporary differences as flow-through adjustments typically results in a greater variance between the effective tax rate (“ETR”) and the statutory federal income tax rate in any given period than would otherwise exist if GSWC were not required to account for its income taxes as a regulated enterprise. The GSWC ETRs for the three months ended June 30, 2011 and 2010 were 43.5% and 42.7%, respectively. The GSWC ETRs for the six months ended June 30, 2011 and 2010 were 44.1% and 42.9%, respectively. The GSWC ETRs deviated from the statutory rate primarily due to state taxes and differences between book and taxable income that are treated as flow-through adjustments in accordance with regulatory requirements (principally plant-, rate-case- and compensation-related items).

GSWC continues to compute its state tax provision as if GSWC were autonomous and not a member of AWR’s unitary group. This approach is consistent with the methodology used for ratemaking purposes. Since all of GSWC’s activities are conducted within California, GSWC’s state tax provision does not reflect apportionment of its income.

Changes in Tax Law:

The Small Business Jobs Act of 2010 and the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (“Tax Relief Act”) extended 50% bonus depreciation for qualifying property through 2012 and created a new 100% bonus depreciation for qualifying property placed in service between September 9, 2010 and December 31, 2011. As a result of these law changes, Registrant’s current tax expense for 2010 and 2011 reflect benefits from the Tax Relief Act. Although these law changes reduce AWR’s current taxes payable, they do not reduce its total income tax expense or effective tax rate.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph h

-Article 4

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+ Details

Employee Benefit Plans:

6 Months Ended

Jun. 30, 2011

Employee Benefit Plans:

Employee Benefit Plans:

Note 8 — Employee Benefit Plans:

The components of net periodic benefit costs, before allocation to the overhead pool, for Registrant’s pension plan, postretirement plan, and Supplemental Executive Retirement Plan (“SERP”) for the three and six months ended June 30, 2011 and 2010 are as follows:

	For The Three Months Ended June 30,
	Pension Benefits						Other Postretirement Benefits						SERP
(dollars in thousands)	2011			2010			2011			2010			2011		2010
Components of Net Periodic Benefits Cost:
Service cost	$	1,429		$	1,199		$	107		$	102		$	150	$	108
Interest cost	1,639			1,526			153			159			116		89
Expected return on plan assets	(1,588		)	(1,313		)	(74		)	(63		)	—		—
Amortization of transition	—			—			105			105			—		—
Amortization of prior service cost (benefit)	30			30			(50		)	(50		)	40		40
Amortization of actuarial loss	322			293			—			—			34
Net periodic pension cost under accounting standards	1,832			1,735			241			253			340		237
Regulatory adjustment — deferred	(161		)	—			—			—			—		—
Total expense recognized, before allocation to overhead pool	$	1,671		$	1,735		$	241		$	253		$	340	$	237

	For The Six Months Ended June 30,
	Pension Benefits						Other Postretirement Benefits						SERP
(dollars in thousands)	2011			2010			2011			2010			2011		2010
Components of Net Periodic Benefits Cost:
Service cost	$	2,812		$	2,398		$	214		$	204		$	300	$	216
Interest cost	3,262			3,052			306			318			232		178
Expected return on plan assets	(3,174		)	(2,626		)	(147		)	(126		)	—		—
Amortization of transition	—			—			210			210			—		—
Amortization of prior service cost (benefit)	59			60			(100		)	(100		)	81		80
Amortization of actuarial loss	621			586			—			—			67		—
Net periodic pension cost under accounting standards	3,580			3,470			483			$	506		680		474
Regulatory adjustment — deferred	(253		)	—			—			—			—		—
Total expense recognized, before allocation to overhead pool	$	3,327		$	3,470		$	483		$	506		$	680	$	474

Registrant expects to contribute approximately $6.6 million and $500,000 to the pension and postretirement medical plans in 2011, respectively. A contribution of $1.0 million was made to the pension plan during the six months ended June 30, 2011.

In May 2009, the Board of Directors approved the establishment of a Rabbi Trust created for the SERP plan. Assets in a Rabbi Trust can be subject to the claims of creditors; therefore, they are not considered as an asset for purposes of computing the SERP’s funded status. As of June 30, 2011, the balance in the Rabbi Trust totals $1.7 million and is included in Registrant’s other property and investments.

Regulatory Adjustment:

In November 2010, the CPUC authorized GSWC to establish a two-way balancing account, effective January 1, 2010, for its three water regions and the general office to track differences between the forecasted annual pension expenses adopted in rates for 2010, 2011 and 2012 and the actual annual expense to be recorded by GSWC in accordance with the accounting guidance for pension costs. For the three and six months ended June 30, 2011, GSWC’s actual expense under the accounting guidance for pension was greater than amounts included in customer rates by $161,000 and $253,000, respectively. This under-collection has been recorded in the two-way pension balancing account included in regulatory assets (Note 2). As of June 30, 2011, GSWC has included a $2.1 million under-collection in the two-way pension balancing account.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

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-Publisher FASB

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+ Details

Contingencies:

6 Months Ended

Jun. 30, 2011

Contingencies:

Contingencies:

Note 9 — Contingencies:

Water Quality-Related Litigation:

Perchlorate and/or Volatile Organic Compounds (“VOC”) have been detected in five wells servicing GSWC’s South San Gabriel System. GSWC filed suit in federal court, along with two other affected water purveyors and the San Gabriel Basin Water Quality Authority (“WQA”), against some of those allegedly responsible for the contamination of two of these wells. Some of the other potential defendants settled with GSWC, other water purveyors and the WQA (the “Water Entities”), on VOC related issues prior to the filing of the lawsuit. In response to the filing of the lawsuit, the Potentially Responsible Party (“PRP”) defendants filed motions to dismiss the suit or strike certain portions of the suit. The judge issued a ruling on April 1, 2003 granting in part and denying in part the PRP’s motions. A key ruling of the court was that the water purveyors, including GSWC, by virtue of their ownership of wells contaminated with hazardous chemicals are themselves PRPs under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”).

GSWC has, pursuant to permission of the court, amended its suit to claim certain affirmative defenses as an “innocent” party under CERCLA. Registrant is presently unable to predict the outcome of this ruling on its ability to fully recover from the PRPs, past and future costs associated with the treatment of these wells. In this same suit, the PRPs have filed cross-complaints against the Water Entities, the MWD, the Main San Gabriel Basin Watermaster and others on the theory that they arranged for and did transport contaminated water into the Main San Gabriel Basin for use by GSWC and the other two affected water purveyors and for other related claims.

On August 29, 2003, the US Environmental Protection Agency (“EPA”) issued Unilateral Administrative Orders (“UAO”) against 41 parties deemed responsible for polluting the groundwater in that portion of the San Gabriel Valley from which the two impacted GSWC wells draw water. GSWC was not named as a party to the UAO. The UAO requires these parties to remediate the contamination.

The judge in the lawsuit stayed the matter on October 12, 2004 in order to allow the parties to explore settlement and appointed a special master to oversee mandatory settlement discussions between the PRPs and the Water Entities. EPA has also conducted settlement discussions with several PRPs regarding the UAO. The Water Entities and EPA have worked closely to coordinate their settlement discussions under the auspices of the special master in order to arrive at a complete resolution of all issues affecting the lawsuit and the UAO. Settlements have been reached with some PRPs.

On March 28, 2011, the Court lifted the stay and the matter has proceeded in litigation. The EPA filed a separate complaint against the remaining PRPs and their matter was consolidated with those filed by the Water Entities. In the EPA case, the remaining PRPs filed a cross-complaint against the Water Entities making the same basic allegations as in their already existing cross-complaint. The cross complaint was filed on August 1, 2011. Registrant believes the filing does not materially alter the structure and claims in the case. GSWC will continue to work with EPA and the special master to reach settlement with all PRPs or proceed to trial. Registrant is presently unable to predict the ultimate outcome of these settlement discussions.

Condemnation of Properties:

The laws of the State of California provide for the acquisition of public utility property by governmental agencies through their power of eminent domain, also known as condemnation, where doing so is necessary and in the public interest. In addition, these laws provide: (i) that the owner of utility property may contest whether the condemnation is actually necessary and in the public interest, and (ii) that the owner is entitled to receive the fair market value of its property if the property is ultimately taken.

The Town of Apple Valley (the “Town”) abandoned its activities related to a potential condemnation of GSWC’s water system serving the Town in 2007. However, in January 2011, the Town Council directed staff to update the previously prepared financial feasibility study for the acquisition of GSWC’s water systems. GSWC’s Apply Valley water systems serve approximately 2,800 customers.

In April 2011, an organization called Ojai FLOW (Friends of Locally Owned Water) started a local campaign for the Casitas Municipal Water District to purchase GSWC’s Ojai water system. The Ojai City Council passed a resolution supporting the efforts of Ojai FLOW at their regular meeting on April 26, 2011. In May 2011, Ojai FLOW submitted a petition with over 1,800 signatures to the Casitas Municipal Water District supporting the recommended acquisition of GSWC’s Ojai water system. The Casitas Municipal Water District’s Water Resources Committee is presently considering the proposal by Ojai FLOW. GSWC serves approximately 3,000 customers in Ojai.

Except for the Town of Apple Valley and the City of Ojai, Registrant is currently not involved in activities related to the potential condemnation of any of its water customer service areas or in its BVES customer service area. No formal condemnation proceedings have been filed against any of the Registrant’s service areas during the past three years.

Santa Maria Groundwater Basin Adjudication:

In 1997, the Santa Maria Valley Water Conservation District (“plaintiff”) filed a lawsuit against multiple defendants, including GSWC, the City of Santa Maria, and several other public water purveyors. The plaintiff’s lawsuit sought an adjudication of the Santa Maria Groundwater Basin (the “Basin”). A stipulated settlement of the lawsuit has been reached, subject to CPUC approval. The settlement, among other things, if approved by the CPUC, would preserve GSWC’s historical pumping rights and secure supplemental water rights for use in case of drought or other reductions in the natural yield of the Basin. GSWC, under the stipulation, has a right to 10,000 acre-feet of groundwater replenishment provided by the Twitchell Project, a storage and flood control reservoir project operated by the Santa Maria Valley Conservation District. A monitoring and annual reporting program has been established to allow the parties to responsibly manage the Basin and to respond to shortage conditions. If severe water shortage conditions are found over a period of five years, the management area engineer will make findings and recommendations to alleviate such shortages. In the unlikely case that the Basin experiences severe shortage conditions, the court has the authority to limit GSWC’s groundwater production to 10,248 acre-feet per year, based on developed water in the Basin. Over the last five years, GSWC’s average groundwater production has been 10,140 acre-feet per year.

On February 11, 2008, the court issued its final judgment, which approves and incorporates the stipulation. The judgment awards GSWC prescriptive rights to groundwater against the non-stipulating parties. In addition, the judgment grants GSWC the right to use the Basin for temporary storage and to recapture 45 percent of the return flows that are generated from its importation of State Water Project water. Pursuant to this judgment, the court retains jurisdiction over all of the parties to make supplemental orders or to amend the judgment as necessary. On March 20, 2008, the non-stipulating parties filed notices of appeal. In August 2010, the appellants filed their opening briefs. Registrant is unable to predict the outcome of the appeal.

Aerojet Note Receivable:

Pursuant to the settlement agreement with Aerojet discussed in Note 2, GSWC has a note receivable which is scheduled to be paid by Aerojet in installments over five years beginning in December 2009. GenCorp Inc. is the parent of Aerojet. In January 2010, Standard & Poor’s (“S&P”) upgraded GenCorp Inc’s credit rating to B- from CCC+ with a stable outlook. This is a non-investment grade rating assigned by S&P to companies whose financial situation varies. On March 26, 2010, Moody’s Investor Services (“Moody’s”) upgraded GenCorp Inc.’s rating from B3 to B2. This is a non-investment grade rating assigned by Moody’s to obligations that are speculative and subject to high credit risk and of generally poor credit quality.

As of June 30, 2011, GSWC has received from Aerojet a total of $5.0 million including interest as payment of the first and second annual installments under the terms of the 2004 settlement agreement. As of June 30, 2011, the unpaid portion of the note receivable is $6.3 million, comprised of $4.8 million in principal and $1.5 million in accrued interest. At this time, management believes the note receivable from Aerojet is fully collectible and has not provided a reserve for uncollectible amounts as of June 30, 2011. GSWC will continue to assess recoverability of this note receivable.

Environmental Clean-Up and Remediation:

Chadron Plant: GSWC has been involved in environmental remediation and clean-up at a plant site (“Chadron Plant”) that contained an underground storage tank which was used to store gasoline for its vehicles. This tank was removed in July 1990 along with the dispenser and ancillary piping. Since then, GSWC has been involved in various remediation activities at this site. Recent site assessments have been conducted which showed that there was more gasoline at higher concentrations spread over a larger area than previously measured. Remediation is estimated to take two more years, followed by at least one year of monitoring and reporting. As of June 30, 2011, the total spent to clean-up and remediate GSWC’s plant facility is approximately $3.5 million, of which $1.5 million has been paid by the State of California Underground Storage Tank Fund. Amounts paid by GSWC have been included in rate base and approved by the CPUC for recovery.

As of June 30, 2011, GSWC has an accrued liability for the estimated additional cost of $1.2 million to complete the clean-up at the site. The ultimate cost may vary as there are many unknowns in remediation of underground gasoline spills and this is an estimate based on currently available information. Management also believes it is probable that the estimated additional costs will be approved in rate base by the CPUC.

Other Litigation:

Registrant is also subject to other ordinary routine litigation incidental to its business. Management believes that rate recovery, proper insurance coverage and reserves are in place to insure against property, general liability and workers’ compensation claims incurred in the ordinary course of business. Registrant is unable to predict an estimate of the loss, if any, resulting from any pending suits or administrative proceedings.

- Definition

The entire disclosure for commitments and contingencies.

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-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 14

-Paragraph 3

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+ Details

Discontinued Operations:

6 Months Ended

Jun. 30, 2011

Discontinued Operations:

Discontinued Operations:

Note 10 — Discontinued Operations:

On June 7, 2010, Registrant entered into a stock purchase agreement with EPCOR Water (USA) Inc. to sell all of the common shares of CCWC for a total purchase price of $34.7 million, including the assumption of approximately $5.6 million of long-term debt. Regulatory approval of the transaction was received from the Arizona Corporation Commission (“ACC”) on April 7, 2011. On May 26, 2011, CCWC’s Board of Directors declared a $1.5 million cash dividend to AWR, which was also paid on May 26, 2011. The sale closed on May 31, 2011 and AWR received approximately $29.0 million in cash which was used primarily to pay down short-term borrowings. In addition, the purchase price was subject to certain adjustments for changes in retained earnings based on a final audit, which resulted in an increase of $578,000 to the purchase price. This purchase price adjustment has been recorded as a receivable as of June 30, 2011 and is expected to be collected in the third quarter of 2011. The completion of the sale generated a gain (net of taxes and transaction costs) of approximately $2.3 million during the second quarter of 2011.

The assets and liabilities of CCWC have been classified as current assets and liabilities held for sale as of December 31, 2010. The operational results for the periods presented and the gain on disposal of CCWC are reported in discontinued operations.

The carrying amounts of the major classes of assets and liabilities of CCWC included in discontinued operations are as follows:

	June 30,		December 31,
(dollars in thousands)	2011		2010
Assets:
Utility Plant, net	$	—	$	44,085
Goodwill, net	—		3,321
Other assets	—		3,477
Total assets of discontinued operations	$	—	$	50,883

Liabilities:
Advances and contributions in aid of construction, net	$	—	$	17,867
Long term debt	—		5,645
Other liabilities	—		3,519
Total liabilities of discontinued operations	$	—	$	27,031

Regulatory Matters - Gain on Settlement for Removal of a Well:

In 2005, in an agreement with the Fountain Hills Sanitary District (“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 of the ACC on similar gains, CCWC recognized a net gain of $760,000 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. On October 8, 2009, the ACC ordered CCWC to treat the entire settlement proceeds of $1,520,000 as a reduction to rate base. As a result, CCWC recognized a loss of $760,000 during the third quarter of 2009 and established a regulatory liability for this amount. This effectively reversed the original gain recorded in 2005.

In November 2009, CCWC filed an application for rehearing on several issues including the sharing of this gain from the settlement proceeds. On April 7, 2011, the ACC issued a decision that reversed its October 2009 decision and allowed CCWC to retain 50% of the $1,520,000 settlement proceeds. Accordingly, in the second quarter of 2011, CCWC recorded a gain on settlement on removal of a well of $760,000. As part of the April 7, 2011 ACC decision, CCWC was authorized to recover the difference in revenues between what would have been collected to-date had the April 7, 2011 decision been in place effective October 2009, and revenues actually collected to-date under rates approved from the original 2009 decision. Accordingly, in May 2011 CCWC recorded a regulatory asset for retroactive revenues of $149,000 to be collected by CCWC, with interest at 6% per annum, through a six month surcharge.

A summary of discontinued operations presented in the consolidated statements of income for the three and six months ended June 30, 2011 and 2010 are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2011			2010			2011			2010
Operating revenues	$	1,571		$	2,272		$	3,492		$	4,089

Supply costs	250			411			584			764
Other operating expenses (1)	379			941			836			1,979
Gain on settlement for removal of a well	(760		)	—			(760		)	—
Total operating expenses	(131		)	1,352			660			2,743

Operating income	1,702			920			2,832			1,346

Interest expense, net	(59		)	(89		)	(142		)	(180		)

Income before income taxes	1,643			831			2,690			1,166

Income tax expense (2)	670			331			1,078			466
Income from the operations of discontinued operations, net of tax	973			500			1,612			700

Gain on sale of business, net of tax	2,454			—			2,454			—
Transaction costs, net of tax (3)	(193		)	(395		)	(198		)	(395		)
Net gain on sale	2,261			(395		)	2,256			(395		)

Income from discontinued operations, net of tax (4)	$	3,234		$	105		$	3,868		$	305

(1)	In accordance with the accounting guidance relating to assets held for sale, Registrant ceased recording depreciation expense for CCWC as of June 2010.

(2)	Income tax expense does not include the effects of CCWC’s inclusion in the AWR combined California unitary return, which are included in, and do not materially affect, the income tax expense of continuing operations.

(3)	Included in discontinued operations for the three and six months ended June 30, 2011 are direct transaction costs of $405,000 and $413,000, respectively, for legal and consulting services in connection with the sale of CCWC. Transaction costs for the three and six months ended June 30, 2010 amounted to $659,000.

(4)	Corporate overhead costs allocated to CCWC have been excluded from discontinued operations. The majority of these costs are expected to continue primarily at GSWC. Accordingly, these corporate overhead costs have been included in other operating expenses and administrative and general expenses as part of continuing operations in the consolidated statements of income. Such costs allocated to CCWC that have been reflected as part of continuing operations amounted to $106,000 and $233,000 for the three months ended June 30, 2011 and 2010, respectively, and $356,000 and $514,000 for the six months ended June 30, 2011 and 2010, respectively.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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+ Details

Business Segments

6 Months Ended

Jun. 30, 2011

Business Segments

Business Segments

Note 11 — Business Segments

AWR has three reportable segments, water, electric and contracted services, whereas GSWC has two segments, water and electric. Within the segments, AWR has two continuing principal business units: water and electric service utility operations conducted through GSWC, CCWC (through May 31, 2011) and a contracted services unit conducted through ASUS and its subsidiaries. All activities of GSWC are geographically located within California. The operating activities of CCWC have been included in discontinued operations as described in Note 10. All activities of CCWC were located in the state of Arizona. Both GSWC and CCWC are rate-regulated utilities.

Activities of ASUS and its subsidiaries have been conducted in California, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. ASUS’s wholly owned subsidiaries are regulated by the state in which the subsidiary primarily conducts water and/or wastewater operations. Fees charged for operation and maintenance and renewal and replacement services are based upon the terms of the contracts with the U.S. government which have been filed with the commissions in the states in which ASUS’s subsidiaries are incorporated. On a stand-alone basis, AWR has no material assets other than its investments in its subsidiaries.

The tables below set forth information relating to GSWC’s operating segments, ASUS and its subsidiaries, and other matters. Certain assets, revenues and expenses have been allocated in the amounts set forth. The identifiable assets are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude property installed by developers and conveyed to GSWC and through May 31, 2011 for CCWC.

	As Of And For The Three Months Ended June 30, 2011
	GSWC				CCWC			ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Water			Contracts		Parent			AWR
Operating revenues	$	80,151	$	7,710	$	—		$	21,968	$	—		$	109,829
Operating income (loss) (1)	23,470		1,241		(106		)	4,537		(3		)	29,139
Interest expense, net	6,091		439		—			141		37			6,708
Identifiable assets	841,318		37,939		—			3,736		—			882,993
Depreciation and amortization expense	8,874		447		—			217		—			9,538
Income from discontinued operations, net of tax (2)	—		—		973			—		2,261			3,234
Capital additions	18,873		1,020		—			102		—			19,995

	As Of And For The Three Months Ended June 30, 2010
	GSWC				CCWC			ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Water			Contracts		Parent			AWR
Operating revenues	$	72,816	$	7,845	$	—		$	14,815	$	—		$	95,476
Operating income (loss) (1)	19,086		693		(233		)	1,623		(19		)	21,150
Interest expense, net	5,215		381		—			71		45			5,712
Identifiable assets	806,216		36,685		—			3,307		—			846,208
Depreciation and amortization expense	7,621		560		—			184		—			8,365
Income (loss) from discontinued operations, net of tax (2)	—		—		500			—		(395		)	105
Capital additions	21,419		294		148			508		—			22,369

	As Of And For The Six Months Ended June 30, 2011
	GSWC				CCWC			ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Water			Contracts		Parent			AWR
Operating revenues	$	144,477	$	18,434	$	—		$	41,225	$	—		$	204,136
Operating income (loss) (1)	38,568		3,181		(356		)	5,795		(54		)	47,134
Interest expense, net	11,192		816		—			225		82			12,315
Identifiable assets	841,318		37,939		—			3,736		—			882,993
Depreciation and amortization expense	17,830		1,007		—			438		—			19,275
Income from discontinued operations, net of tax (2)	—		—		1,612			—		2,256			3,868
Capital additions	35,086		1,629		—			580		—			37,295

	As Of And For The Six Months Ended June 30, 2010
	GSWC				CCWC			ASUS			AWR			Consolidated
(dollars in thousands)	Water		Electric		Water			Contracts			Parent			AWR
Operating revenues	$	128,873	$	18,824	$	—		$	36,245		$	—		$	183,942
Operating income (loss) (1)	28,262		3,176		(514		)	9,447			(70		)	40,301
Interest expense, net	10,269		757		—			(369		)	52			10,709
Identifiable assets	806,216		36,685		—			3,307			—			846,208
Depreciation and amortization expense	15,243		1,120		—			361			—			16,724
Income (loss) from discontinued operations, net of tax (2)	—		—		700			—			(395		)	305
Capital additions	36,710		741		214			680			—			38,345

(1)	Operating income (loss) include CCWC’s allocated corporate overhead costs that are expected to continue primarily at GSWC.

(2)	In accordance with the accounting guidance relating to assets held for sale, Registrant ceased recording depreciation expense for CCWC as of June 2010.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 280

-SubTopic 10

-Section 50

-Paragraph 29

-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

+ Details

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2011	Aug. 05, 2011
Document and Entity Information
Entity Registrant Name	AMERICAN STATES WATER CO
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Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
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Document Fiscal Period Focus	Q2