American States Water Company Announces Agreement for the Cadiz

  American States Water Company Announces Agreement for the Cadiz Water
  Conservation Project

Business Wire

SAN DIMAS, Calif. -- June 28, 2010

American States Water Company (NYSE:AWR) announced today that it had signed,
through its subsidiary, Golden State Water Company (“GSWC”), an agreement to
proceed with the Cadiz Water Conservation & Storage Project (“Cadiz Project”)
and participate in the Cadiz Project’s environmental review. The agreement
grants GSWC the right to acquire a firm annual supply of water once the
environmental review is complete. GSWC will also commit funds to the
environmental review and has committed to the goal of a general “environmental
benefit” for the operation of the project.

Under the terms of the agreement, GSWC has the right to acquire an annual
supply of 5,000 acre-feet of water at a pre-determined formula once the
environmental review is complete. In addition, GSWC has the option to acquire
storage rights in the Cadiz Project to allow GSWC to manage the supply as part
of its overall water supply portfolio. “We are pleased to be part of this
project that brings new supplies to the area, potentially relieving pressure
on the Sacramento-San Joaquin Delta and other stressed resources in the
region,” said Robert Sprowls, CEO of AWR and GSWC.

Cadiz, founded in 1983, is a publicly-held renewable resources company that
owns 70 square miles of property with significant water resources and clean
energy potential in eastern San Bernardino County, California. The Company is
engaged in a combination of water conservation and supply, solar energy, and
organic farming projects.

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 approximately 1 out of
36 Californians located within 75 communities through 10 counties in Northern,
Coastal and Southern California (approximately 255,000 customers) and to over
13,000 customers in the Town 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
contracted services 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.


American States Water Company
Gladys M. Farrow
Assistant Secretary
Telephone: (909) 394-3600, ext. 624
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