AWR is the parent company of 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”)).
AWR was incorporated as a California corporation in 1998 as a holding company.
AWR has three reportable segments: water, electric and contracted services.
Within the segments, AWR has two principal business units, water and electric
service utility operations, conducted through GSWC, and contracted services
conducted through ASUS and its subsidiaries. FBWS, TUS, ODUS, PSUS and ONUS
may be referred to herein individually as a “Military Utility Privatization
Subsidiary” or collectively as the “Military Utility Privatization
Subsidiaries.”
GSWC is a California public utility company engaged principally in the purchase,
production and distribution of water in 75 communities in 10 counties in the
State of California. GSWC is regulated by the California Public Utilities Commission
(“CPUC”). It was incorporated as a California corporation on December
31, 1929. GSWC also provides electric service to the City of Big Bear Lake and
surrounding areas in San Bernardino County, California through its Bear Valley
Electric Service (“BVES”) division.
ASUS, through its wholly-owned subsidiaries, has contracted with the U.S. government
to provide water and/or wastewater services at various military installations.
ASUS operates, maintains and performs construction activities on water and/or
wastewater systems at various United States military bases pursuant to 50-year
firm, fixed-price with prospective price-redetermination contracts. Each of
the contracts with the U.S. government may be subject to termination, in whole
or in part, prior to the end of the 50-year term for convenience of the U.S.
government or as a result of default or nonperformance by the subsidiary performing
the contract. The contract price for each of these contracts is subject to redetermination
every three years following the initial two years of the contract. Prices are
also subject to equitable adjustment based upon changes in circumstances, changes
in laws and/or regulations and changes in wages and fringe benefits to the extent
provided in the contract. AWR guarantees performance of ASUS’s military
privatization contracts.
Pursuant to the terms of these contracts, the Military Utility Privatization
Subsidiaries operate, as of the effective date of their respective contracts,
the following water and wastewater systems:
FBWS - water and wastewater systems at Fort Bliss located near El Paso, Texas
and extending into southeastern New Mexico effective October 1, 2004;
TUS - water and wastewater systems at Andrews Air Force Base in Maryland effective
February 1, 2006;
ODUS - wastewater system at Fort Lee in Virginia effective February 23, 2006
and the water and wastewater systems at Fort Eustis and Fort Story in Virginia
(“TRADOC”) effective April 3, 2006;
PSUS - water and wastewater systems at Fort Jackson in South Carolina effective
February 16, 2008; and
ONUS - water and wastewater systems at Fort Bragg, Pope Army Airfield and Camp
Mackall, North Carolina effective March 1, 2008.
Certain financial information for each of AWR’s business segments - water
distribution, electric distribution, and contracted services - is set forth
in Note 16 to the Notes to Consolidated Financial Statements of American States
Water Company and its subsidiaries. AWR’s water and electric distribution
segments are not dependent upon a single or only a few customers. The U.S. government
is the primary customer for ASUS’s contracted services. ASUS, from time
to time, performs work at military bases for other prime contractors of the
U.S. government.
66.85 %