American States Water (ticker: AWR, exchange: New York Stock Exchange (.N))
News Release -
1-Oct-2007
American States Water Company Announces Award of Privatization Contract for Fort Bragg, North CarolinaSAN DIMAS, Calif., Oct 01, 2007 (BUSINESS WIRE) -- American States Water Company (NYSE:AWR) announced today that its
American States Utility Services, Inc. ("ASUS") subsidiary has reached
an agreement to operate and maintain the water and wastewater systems
at Fort Bragg, North Carolina. According to the agreement, the
aggregate award of this contract is estimated at more than $575
million over a 50-year period and is also subject to periodic price
re-determination adjustments and modifications for changes in
circumstances.
Old North Utility Services, Inc., a wholly-owned subsidiary of
ASUS, will furnish all necessary labor, management, supervision,
permits, equipment, supplies, materials, transportation and any other
incidentals for the complete operation, maintenance, repair, upgrades
and improvements to the water and wastewater utility systems. The
agreement is subject to the expiration of a 120-day due diligence
period during which time the transition will be undertaken.
Commenting on the awards, Floyd E. Wicks, President and CEO,
stated, "The signing of this agreement establishes ASUS as the premier
provider of water and wastewater services to the United States
military and marks another important continuing milestone in American
States Water Company's growth strategy. ASUS currently operates at
seven other military bases across the country, and has a number of
additional bids outstanding for similar contracts. We look forward to
providing other United States military bases with premier water and
wastewater services."
Certain matters discussed in this news release with regard to the
Company's expectations may be forward-looking statements that involve
risks and uncertainties. The assumptions and risk factors that could
cause actual results to differ materially, include those described in
the Company's Form 10-Q and Form 10-K filed with the Securities and
Exchange Commission.
American States Water Company is the parent of Golden State Water
Company, American States Utility Services, Inc. and Chaparral City
Water Company. Through its subsidiaries, AWR provides water service to
1 out of 30 Californians located within 75 communities throughout 10
counties in Northern, Coastal and Southern California (approximately
255,000 customers) and to over 13,000 customers in the city of
Fountain Hills, Arizona and a small portion of Scottsdale, Arizona.
The Company also distributes electricity to over 23,000 customers in
the Big Bear recreational area of California. Through its
non-regulated subsidiary, American States Utility Services, Inc., the
Company contracts with the U.S. Government and private entities to
provide various services, including water marketing and operation and
maintenance of water and wastewater systems.
SOURCE: American States Water Company
American States Water Company
Robert J. Sprowls
Senior Vice President, Chief Financial Officer,
Treasurer and Corporate Secretary
909-394-3600
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American States Water
