American States Water Co (NYSE: AWR)

American States Water Company is a holding company that provides regulated water and electric utility services and government contracted water and wastewater services through its subsidiaries Golden State Water Company Bear Valley Electric Service Inc and American States Utility Services Inc and its affiliates.

The company generates revenue from the sale of water and wastewater services to residential and commercial customers in California from the sale of electricity to residential and commercial customers in San Bernardino County mountain communities and from fees earned under long term contracts with the United States government for operating maintaining and constructing water and wastewater systems at military installations.

The company operates through the following segments: water electric and contracted services.

• Water: This segment provides water purchase production distribution and sale and wastewater collection and treatment services in eleven California counties through Golden State Water Company which is regulated by the California Public Utilities Commission.

• Electric: This segment distributes electricity in several San Bernardino County mountain communities through Bear Valley Electric Service Inc which is also regulated by the California Public Utilities Commission.

• Contracted Services: This segment operates maintains and performs construction activities including renewal and replacement capital work on water and wastewater systems at various United States military bases through American States Utility Services Inc and its subsidiaries under firm fixed price contracts task order agreements and agreements with third party prime contractors.

American States Water Company holds a strong position in the regulated utility sector due to its exclusive service territories which limit direct competition from other public utilities and municipalities while it faces competition for new real estate development from governmental agencies and investor owned utilities and for contracted services from other investor owned utilities third party providers and governmental entities based on price and quality of service.

The company serves a diverse customer base that includes residential and commercial water and electric customers in California and the United States government as the primary customer for its contracted services business with specific military installations such as Fort Bliss Fort Lee Joint Base Langley Eustis Joint Expeditionary Base Little Creek Fort Story Joint Base Andrews Fort Jackson Fort Bragg Pope Army Airfield Camp Mackall Eglin Air Force Base Fort Riley Naval Air Station Patuxent River Joint Base Cape Cod and others.