American States Water Settles with CPUC for $1.5M

TL;DR

AWR's Golden State Water subsidiary pays $1.5M to settle CPUC probe, must improve operations.

AI Summary

American States Water Co. (AWR) announced on November 15, 2024, that its subsidiary, Golden State Water Company, entered into a settlement agreement with the California Public Utilities Commission (CPUC) regarding water supply and service issues. The agreement, which resolves a formal investigation, includes a $1.5 million penalty and requires Golden State Water to implement specific operational improvements.

Why It Matters

This settlement resolves a regulatory investigation, potentially removing uncertainty for investors and outlining required operational changes for Golden State Water.

Risk Assessment

Risk Level: medium — The settlement involves a financial penalty and mandated operational changes, indicating past issues that could recur or lead to further scrutiny.

Key Numbers

• $1.5M — Settlement Penalty (Amount paid by Golden State Water to the CPUC)

Key Players & Entities

• American States Water Co. (company) — Filer of the report
• Golden State Water Company (company) — Subsidiary involved in the settlement
• California Public Utilities Commission (company) — Regulatory body involved in the settlement
• $1.5 million (dollar_amount) — Penalty amount in the settlement
• November 15, 2024 (date) — Date of the earliest event reported

FAQ

Key Financial Figures

• $573.1 million — authorizes GSWC to invest approximately $573.1 million in capital infrastructure over the thre
• $17.7 million — ervice to its customers, which includes $17.7 million of advice letter capital investments to
• $58.2 million — tion, the settlement agreement approves $58.2 million of advice letter capital investments al

Filing Documents

• awr-20241115.htm (8-K) — 36KB
• exhibit991-gswcpdinwatergrc.htm (EX-99.1) — 13KB
• awrlogoa04a.jpg (GRAPHIC) — 26KB
• 0001628280-24-048845.txt ( ) — 250KB
• awr-20241115.xsd (EX-101.SCH) — 3KB
• awr-20241115_def.xml (EX-101.DEF) — 14KB
• awr-20241115_lab.xml (EX-101.LAB) — 26KB
• awr-20241115_pre.xml (EX-101.PRE) — 15KB
• awr-20241115_htm.xml (XML) — 4KB

01. Other Events

Item 8.01. Other Events San Dimas, California, November 21, 2024. American States Water Company (NYSE:AWR) announced that on November 15, 2024, its regulated water utility subsidiary, Golden State Water Company ("GSWC"), received a proposed decision from the assigned administrative law judge at the California Public Utilities Commission ("CPUC") in connection with the pending general rate case proceeding that will determine new water rates for the years 2025 – 2027. A final decision by the CPUC is expected as soon as the end of the fourth quarter of 2024. When a final decision is issued by the CPUC, the new rates for 2025 will be effective January 1, 2025. On July 12, 2024, GSWC and the Public Advocates Office ("Cal Advocates") at the CPUC filed a joint motion to adopt a settlement agreement between GSWC and Cal Advocates in the general rate case proceeding. The proposed decision approves and adopts the settlement agreement in its entirety. Among other things, the settlement agreement authorizes GSWC to invest approximately $573.1 million in capital infrastructure over the three-year cycle in order to continue to provide safe and reliable water utility service to its customers, which includes $17.7 million of advice letter capital investments to be filed for revenue recovery during the second and third year attrition increases when those projects are completed. In addition, the settlement agreement approves $58.2 million of advice letter capital investments already under construction beginning in 2023 also to be filed for revenue recovery during the second and third year attrition increases when those projects are completed. The settlement agreement also allows for additional increases in adopted revenues for 2026 and 2027 subject to an earnings test and changes to the forecasted inflationary index values. Actual increases for 2026 and 2027 will be determined at the time the filings to implement the new rate increases are approved by the CPUC, and will be calcul

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits Exhibit No. Description 99.1 Press Release: American States Water Company Announces Proposed Decision Adopting Settlement Agreement In Its Water Utility General Rate Case

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized . AMERICAN STATES WATER COMPANY: November 21, 2024 /s/ Eva G. Tang Eva G. Tang Senior Vice President-Finance, Chief Financial Officer, Corporate Secretary and Treasurer GOLDEN STATE WATER COMPANY: November 21, 2024 /s/ Eva G. Tang Eva G. Tang Senior Vice President-Finance, Chief Financial Officer and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR