American States Water Company Announces Privatization Contract Award for Fort Riley, Kansas
October 02 2017 - 7:00AM
Business Wire
Estimated Contract Value of $601 Million Over a
50-Year Period
American States Water Company (AWR: NYSE) announced today that
its contracted services subsidiary, American States Utility
Services, Inc. (“ASUS”), has been awarded a 50-year contract by the
U.S. government to operate, maintain, and provide construction
management services for the water distribution, wastewater
collection, and treatment facilities at Fort Riley, a United States
Army installation located in Kansas. The value of the contract is
estimated at approximately $601 million over a 50-year period and
is subject to annual economic price adjustment. Under the contract,
there is a 9-month transition period to ensure seamless operations
are established and inventory assets are fully accounted for in the
contract.
“We are very pleased to have been awarded another significant
50-year contract, which confirms our strong relationship with the
U.S. government and their continued confidence in our expertise and
experience in managing water and wastewater systems on military
bases,” stated Robert J. Sprowls, President and CEO of American
States Water Company. “This win marks another important milestone
in the growth strategy of our contracted services business and we
are well positioned to continue competing for new contracts in the
future.”
Fort Riley is a United States Army installation located in North
Central Kansas and is currently home to the 1st Infantry Division.
Fort Riley is also the site of the United States Cavalry School. At
over 100,000 acres, Fort Riley has a daytime population of nearly
25,000. With the addition of Fort Riley, ASUS will be providing
water and wastewater utility services at eleven military bases
located within eight states.
Forward Looking Statements
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 most recent Form 10-Q and Form 10-K
filed with the Securities and Exchange Commission.
About American States Water Company
American States Water Company is the parent of Golden State
Water Company and American States Utility Services, Inc. Through
its utility subsidiary, Golden State Water Company, AWR provides
water service to approximately 259,000 customers located throughout
10 counties in Northern, Coastal and Southern California. The
Company also distributes electricity to approximately 24,000
customers in the City of Big Bear and surrounding areas in San
Bernardino County, California. Through its contracted services
subsidiary, American States Utility Services, Inc., the Company
provides operations, maintenance and construction management
services for water and wastewater systems located on military bases
throughout the country under 50-year privatization contracts with
the U.S. government.
American States Water Company has paid dividends to shareholders
every year since 1931, increasing the dividends received by
shareholders each calendar year for 63 consecutive years, which
places it in an exclusive group of companies on the New York Stock
Exchange that have achieved that result.
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American States Water CompanyEva G. Tang, 909-394-3600, ext.
707Senior Vice President-Finance, Chief Financial Officer,Corporate
Secretary and Treasurer
American States Water (NYSE:AWR)
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