10-K 1 awr-20231231.htm 10-K awr-20231231
00010569032023FYfalse00000921162023FYfalseP3YP3Y0.5P3YP3YP3YP10YP11YP5Y00010569032023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMember2023-01-012023-12-3100010569032023-06-30iso4217:USD00010569032024-02-20xbrli:shares0001056903awr:GoldenStateWaterCompanyMember2024-02-200001056903awr:GoldenStateWaterCompanyMember2023-06-3000010569032023-12-3100010569032022-12-31iso4217:USDxbrli:shares0001056903awr:NotesPayable6.81PercentDue2028Member2022-12-31xbrli:pure0001056903awr:NotesPayable6.81PercentDue2028Member2023-12-310001056903awr:NotesPayable6.59PercentDue2029Member2022-12-310001056903awr:NotesPayable6.59PercentDue2029Member2023-12-310001056903awr:NotesPayable7.875PercentDue2030Member2022-12-310001056903awr:NotesPayable7.875PercentDue2030Member2023-12-310001056903awr:NotesPayable7.23PercentDue2031Member2023-12-310001056903awr:NotesPayable7.23PercentDue2031Member2022-12-310001056903awr:NotesPayable6PercentDue2041Member2022-12-310001056903awr:NotesPayable6PercentDue2041Member2023-12-310001056903awr:NotesPayable3.45PercentDue2029Member2022-12-310001056903awr:NotesPayable3.45PercentDue2029Member2023-12-310001056903awr:NotesPayable5.87PercentDue2028Member2022-12-310001056903awr:NotesPayable5.87PercentDue2028Member2023-12-310001056903awr:NotesPayable217PercentDue2030Member2023-12-310001056903awr:NotesPayable217PercentDue2030Member2022-12-310001056903awr:NotesPayable290PercentDue2040Member2023-12-310001056903awr:NotesPayable290PercentDue2040Member2022-12-310001056903awr:NotesPayable4548PercentDue2032Member2023-12-310001056903awr:NotesPayable4548PercentDue2032Member2022-12-310001056903awr:NotesPayable4949PercentDue2037Member2022-12-310001056903awr:NotesPayable4949PercentDue2037Member2023-12-310001056903awr:NotesPayable512PercentDue2033Member2023-12-310001056903awr:NotesPayable512PercentDue2033Member2022-12-310001056903awr:NotesPayable522PercentDue2038Member2023-12-310001056903awr:NotesPayable522PercentDue2038Member2022-12-310001056903awr:NotesPayable5.5PercentDue2026Member2022-12-310001056903awr:NotesPayable5.5PercentDue2026Member2023-12-310001056903awr:StateWaterProjectDue2035Member2023-12-310001056903awr:StateWaterProjectDue2035Member2022-12-310001056903awr:AmericanRecoveryAndReinvestmentActObligationDue2033Member2023-12-310001056903awr:AmericanRecoveryAndReinvestmentActObligationDue2033Member2022-12-3100010569032022-01-012022-12-3100010569032021-01-012021-12-310001056903srt:ParentCompanyMember2022-01-012022-12-310001056903srt:ParentCompanyMember2021-01-012021-12-310001056903us-gaap:CommonStockMember2020-12-310001056903us-gaap:RetainedEarningsUnappropriatedMember2020-12-3100010569032020-12-310001056903us-gaap:RetainedEarningsUnappropriatedMember2021-01-012021-12-310001056903us-gaap:CommonStockMember2021-01-012021-12-310001056903us-gaap:CommonStockMember2021-12-310001056903us-gaap:RetainedEarningsUnappropriatedMember2021-12-3100010569032021-12-310001056903us-gaap:RetainedEarningsUnappropriatedMember2022-01-012022-12-310001056903us-gaap:CommonStockMember2022-01-012022-12-310001056903us-gaap:CommonStockMember2022-12-310001056903us-gaap:RetainedEarningsUnappropriatedMember2022-12-310001056903us-gaap:RetainedEarningsUnappropriatedMember2023-01-012023-12-310001056903us-gaap:CommonStockMember2023-01-012023-12-310001056903us-gaap:CommonStockMember2023-12-310001056903us-gaap:RetainedEarningsUnappropriatedMember2023-12-310001056903awr:GoldenStateWaterCompanyMember2023-12-310001056903awr:GoldenStateWaterCompanyMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable6.81PercentDue2028Member2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable6.81PercentDue2028Member2022-12-310001056903awr:NotesPayable6.59PercentDue2029Memberawr:GoldenStateWaterCompanyMember2023-12-310001056903awr:NotesPayable6.59PercentDue2029Memberawr:GoldenStateWaterCompanyMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable7.875PercentDue2030Member2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable7.875PercentDue2030Member2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable7.23PercentDue2031Member2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable7.23PercentDue2031Member2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable6PercentDue2041Member2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable6PercentDue2041Member2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable3.45PercentDue2029Member2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable3.45PercentDue2029Member2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable5.87PercentDue2028Member2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable5.87PercentDue2028Member2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable217PercentDue2030Member2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable217PercentDue2030Member2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable290PercentDue2040Member2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable290PercentDue2040Member2023-12-310001056903awr:NotesPayable512PercentDue2033Memberawr:GoldenStateWaterCompanyMember2023-12-310001056903awr:NotesPayable512PercentDue2033Memberawr:GoldenStateWaterCompanyMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable522PercentDue2038Member2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable522PercentDue2038Member2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable5.5PercentDue2026Member2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:NotesPayable5.5PercentDue2026Member2023-12-310001056903awr:StateWaterProjectDue2035Memberawr:GoldenStateWaterCompanyMember2023-12-310001056903awr:StateWaterProjectDue2035Memberawr:GoldenStateWaterCompanyMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:AmericanRecoveryAndReinvestmentActObligationDue2033Member2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:AmericanRecoveryAndReinvestmentActObligationDue2033Member2022-12-310001056903awr:GoldenStateWaterCompanyMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:CommonStockMember2020-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:RetainedEarningsUnappropriatedMember2020-12-310001056903awr:GoldenStateWaterCompanyMember2020-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:RetainedEarningsUnappropriatedMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:CommonStockMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:CommonStockMember2021-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:RetainedEarningsUnappropriatedMember2021-12-310001056903awr:GoldenStateWaterCompanyMember2021-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:RetainedEarningsUnappropriatedMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:CommonStockMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:CommonStockMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:RetainedEarningsUnappropriatedMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:RetainedEarningsUnappropriatedMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:CommonStockMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:CommonStockMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:RetainedEarningsUnappropriatedMember2023-12-31awr:customerawr:state0001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMember2023-01-012023-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903awr:ContractedServicesMemberawr:AmericanStatesUtilityServicesMembersrt:MaximumMember2023-01-012023-12-310001056903awr:PatuxentRiverUtilityServicesLLCPRUSMemberawr:ContractedServicesMember2023-01-012023-12-310001056903awr:ContractedServicesMemberawr:BayStateUtilityServiceLLCBSUSMember2023-01-012023-12-310001056903awr:ContractedServicesMembersrt:MaximumMember2023-01-012023-12-31awr:registrant0001056903awr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903awr:BearValleyElectricServiceIncMember2022-01-012022-12-310001056903awr:BearValleyElectricServiceIncMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberawr:UnsecuredPrivatePlacementNotesMember2023-01-130001056903awr:GoldenStateWaterCompanyMember2021-07-120001056903awr:GoldenStateWaterCompanyMember2023-07-100001056903awr:BearValleyElectricServiceIncMember2022-02-012022-02-280001056903awr:BearValleyElectricServiceIncMember2022-12-012022-12-310001056903awr:GoldenStateWaterCompanyAndBearValleyElectricServiceIncMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyAndBearValleyElectricServiceIncMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyAndBearValleyElectricServiceIncMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMembersrt:MinimumMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMembersrt:MaximumMember2023-01-012023-12-310001056903us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001056903us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001056903us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001056903us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001056903us-gaap:CarryingReportedAmountFairValueDisclosureMemberawr:BearValleyElectricServiceIncMember2022-12-310001056903us-gaap:CarryingReportedAmountFairValueDisclosureMemberawr:BearValleyElectricServiceIncMember2023-12-310001056903us-gaap:FairValueInputsLevel1Member2023-12-310001056903us-gaap:FairValueInputsLevel3Member2023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:FairValueInputsLevel1Member2023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:FairValueInputsLevel3Member2023-12-310001056903awr:GoldenStateWaterCompanyAndBearValleyElectricServiceIncMemberus-gaap:FranchisorMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyAndBearValleyElectricServiceIncMemberus-gaap:FranchisorMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyAndBearValleyElectricServiceIncMemberus-gaap:FranchisorMember2021-01-012021-12-310001056903awr:ContractedServicesMemberawr:AmericanStatesUtilityServicesMember2023-01-012023-12-31awr:unit0001056903awr:ContractedServicesMembersrt:MinimumMemberawr:AmericanStatesUtilityServicesMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:CustomerConcentrationRiskMemberawr:WaterServiceUtilityOperationsMemberus-gaap:SalesMember2023-01-012023-12-310001056903awr:ElectricServiceUtilityOperationsMemberus-gaap:CustomerConcentrationRiskMemberawr:BearValleyElectricServiceIncMemberus-gaap:SalesMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:TariffbasedRevenuesMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:TariffbasedRevenuesMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:TariffbasedRevenuesMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:SurchargesCostrecoveryActivitiesMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:SurchargesCostrecoveryActivitiesMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:SurchargesCostrecoveryActivitiesMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:OtherProductsandServicesMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:OtherProductsandServicesMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:OtherProductsandServicesMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:AlternativeRevenueProgramMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:AlternativeRevenueProgramMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:AlternativeRevenueProgramMember2021-01-012021-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:TariffbasedRevenuesMemberawr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:TariffbasedRevenuesMemberawr:BearValleyElectricServiceIncMember2022-01-012022-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:TariffbasedRevenuesMemberawr:BearValleyElectricServiceIncMember2021-01-012021-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:BearValleyElectricServiceIncMemberawr:SurchargesCostrecoveryActivitiesMember2023-01-012023-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:BearValleyElectricServiceIncMemberawr:SurchargesCostrecoveryActivitiesMember2022-01-012022-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:BearValleyElectricServiceIncMemberawr:SurchargesCostrecoveryActivitiesMember2021-01-012021-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:BearValleyElectricServiceIncMember2022-01-012022-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:BearValleyElectricServiceIncMember2021-01-012021-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:AlternativeRevenueProgramMemberawr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:AlternativeRevenueProgramMemberawr:BearValleyElectricServiceIncMember2022-01-012022-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:AlternativeRevenueProgramMemberawr:BearValleyElectricServiceIncMember2021-01-012021-12-310001056903us-gaap:PublicUtilitiesInventoryWaterMemberawr:ContractedServicesMemberawr:AmericanStatesUtilityServicesMember2023-01-012023-12-310001056903us-gaap:PublicUtilitiesInventoryWaterMemberawr:ContractedServicesMemberawr:AmericanStatesUtilityServicesMember2022-01-012022-12-310001056903us-gaap:PublicUtilitiesInventoryWaterMemberawr:ContractedServicesMemberawr:AmericanStatesUtilityServicesMember2021-01-012021-12-310001056903awr:ContractedServicesMemberawr:WastewaterMemberawr:AmericanStatesUtilityServicesMember2023-01-012023-12-310001056903awr:ContractedServicesMemberawr:WastewaterMemberawr:AmericanStatesUtilityServicesMember2022-01-012022-12-310001056903awr:ContractedServicesMemberawr:WastewaterMemberawr:AmericanStatesUtilityServicesMember2021-01-012021-12-310001056903awr:ContractedServicesMemberawr:AmericanStatesUtilityServicesMember2022-01-012022-12-310001056903awr:ContractedServicesMemberawr:AmericanStatesUtilityServicesMember2021-01-012021-12-310001056903awr:AmericanStatesUtilityServicesMember2023-12-310001056903awr:AmericanStatesUtilityServicesMember2022-12-310001056903srt:MinimumMemberawr:AmericanStatesUtilityServicesMember2023-12-310001056903awr:AmericanStatesUtilityServicesMembersrt:MaximumMember2023-12-310001056903us-gaap:DeferredIncomeTaxChargesMember2023-12-310001056903awr:FlowThroughTaxesNetMember2023-12-310001056903awr:PensionCostsAndOtherPostretirementBenefitCostsMember2023-12-310001056903us-gaap:GainLossOnDerivativeInstrumentsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:A20222023GeneralRateCaseMemorandumAccountsUnbilledRevenueMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:A20222023GeneralRateCaseMemorandumAccountsUnbilledRevenueMember2022-12-310001056903awr:WaterRevenueAdjustmentMechanismNetOfModifiedCostBalancingAccountMemberawr:GoldenStateWaterCompanyMember2023-12-310001056903awr:WaterRevenueAdjustmentMechanismNetOfModifiedCostBalancingAccountMemberawr:GoldenStateWaterCompanyMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:AssetRetirementObligationsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:AssetRetirementObligationsMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:COVID19MemorandumAccountCEMAMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:COVID19MemorandumAccountCEMAMember2022-12-310001056903awr:FlowThroughTaxesNetMemberawr:GoldenStateWaterCompanyMember2023-12-310001056903awr:FlowThroughTaxesNetMemberawr:GoldenStateWaterCompanyMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:LowIncomeRateAssistanceBalancingAccountsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:LowIncomeRateAssistanceBalancingAccountsMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:PensionCostsAndOtherPostretirementBenefitCostsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:PensionCostsAndOtherPostretirementBenefitCostsMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:OtherRegulatoryAssetsNetMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:OtherRegulatoryAssetsNetMember2022-12-310001056903us-gaap:DeferredIncomeTaxChargesMemberawr:GoldenStateWaterCompanyMember2023-12-310001056903us-gaap:DeferredIncomeTaxChargesMemberawr:GoldenStateWaterCompanyMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:RevenueSubjectToRefundMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:RevenueSubjectToRefundMember2022-12-310001056903us-gaap:GainLossOnDerivativeInstrumentsMemberawr:BearValleyElectricServiceIncMember2023-12-310001056903us-gaap:GainLossOnDerivativeInstrumentsMemberawr:BearValleyElectricServiceIncMember2022-12-310001056903awr:VegetationManagementAndWildfireMitigationPlansMemosMemberawr:BearValleyElectricServiceIncMember2023-12-310001056903awr:VegetationManagementAndWildfireMitigationPlansMemosMemberawr:BearValleyElectricServiceIncMember2022-12-310001056903awr:ElectricSupplyCostAdjustmentMechanismMemberawr:BearValleyElectricServiceIncMember2023-12-310001056903awr:ElectricSupplyCostAdjustmentMechanismMemberawr:BearValleyElectricServiceIncMember2022-12-310001056903awr:BearValleyElectricServiceIncMemberawr:OtherRegulatoryAssetsNetMember2023-12-310001056903awr:BearValleyElectricServiceIncMemberawr:OtherRegulatoryAssetsNetMember2022-12-310001056903us-gaap:RevenueSubjectToRefundMemberawr:BearValleyElectricServiceIncMember2023-12-310001056903us-gaap:RevenueSubjectToRefundMemberawr:BearValleyElectricServiceIncMember2022-12-310001056903awr:A20222023GeneralRateCaseMemorandumAccountsUnbilledRevenueMember2023-12-310001056903awr:CostOfCapitalProceedingMember2023-01-012023-12-310001056903awr:CostOfCapitalProceedingMember2023-07-312023-07-310001056903awr:CostOfCapitalProceedingMember2022-10-012023-09-300001056903awr:CostOfCapitalProceedingMemberus-gaap:SubsequentEventMember2024-01-012024-12-310001056903awr:WaterRevenueAdjustmentMechanismNetOfModifiedCostBalancingAccountMemberawr:GoldenStateWaterCompanyMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterRevenueAdjustmentMechanismMember2023-12-310001056903awr:ModifiedCostBalancingAccountMemberawr:GoldenStateWaterCompanyMember2023-12-310001056903awr:WaterRevenueAdjustmentMechanismMember2023-01-012023-12-310001056903awr:WaterRevenueAdjustmentMechanismNetOfModifiedCostBalancingAccountMember2023-01-012023-03-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterRevenueAdjustmentMechanismMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:UnderCollectionInTwoWayPensionBalancingAccountMemberawr:PensionCostsAndOtherPostretirementBenefitCostsMember2023-12-310001056903awr:UnderCollectionInTwoWayPensionBalancingAccountMemberawr:PensionCostsAndOtherPostretirementBenefitCostsMemberawr:BearValleyElectricServiceIncMember2023-12-310001056903awr:BearValleyElectricServiceIncMember2023-12-310001056903awr:GoldenStateWaterCompanyAndBearValleyElectricServiceIncMemberawr:LowIncomeRateAssistanceBalancingAccountsMember2023-12-310001056903awr:ElectricSupplyCostAdjustmentMechanismMemberawr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903us-gaap:LandMemberawr:WaterServiceUtilityOperationsMember2023-12-310001056903us-gaap:LandMemberawr:WaterServiceUtilityOperationsMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:LandMemberawr:WaterServiceUtilityOperationsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:LandMemberawr:WaterServiceUtilityOperationsMember2022-12-310001056903awr:WaterServiceUtilityOperationsMemberawr:IntangibleAssetsMember2023-12-310001056903awr:WaterServiceUtilityOperationsMemberawr:IntangibleAssetsMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:IntangibleAssetsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:IntangibleAssetsMember2022-12-310001056903awr:WaterServiceUtilityOperationsMemberawr:SourceOfWaterSupplyMember2023-12-310001056903awr:WaterServiceUtilityOperationsMemberawr:SourceOfWaterSupplyMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:SourceOfWaterSupplyMemberawr:WaterServiceUtilityOperationsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:SourceOfWaterSupplyMemberawr:WaterServiceUtilityOperationsMember2022-12-310001056903awr:WaterServiceUtilityOperationsMemberawr:WaterPumpingEquipmentMember2023-12-310001056903awr:WaterServiceUtilityOperationsMemberawr:WaterPumpingEquipmentMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:WaterPumpingEquipmentMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:WaterPumpingEquipmentMember2022-12-310001056903awr:WaterServiceUtilityOperationsMemberawr:WaterTreatmentEquipmentMember2023-12-310001056903awr:WaterServiceUtilityOperationsMemberawr:WaterTreatmentEquipmentMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:WaterTreatmentEquipmentMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:WaterTreatmentEquipmentMember2022-12-310001056903awr:WaterTransmissionAndDistributionMemberawr:WaterServiceUtilityOperationsMember2023-12-310001056903awr:WaterTransmissionAndDistributionMemberawr:WaterServiceUtilityOperationsMember2022-12-310001056903awr:WaterTransmissionAndDistributionMemberawr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMember2023-12-310001056903awr:WaterTransmissionAndDistributionMemberawr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMember2022-12-310001056903awr:WaterServiceUtilityOperationsMemberawr:WaterPlantGeneralMember2023-12-310001056903awr:WaterServiceUtilityOperationsMemberawr:WaterPlantGeneralMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:WaterPlantGeneralMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMemberawr:WaterPlantGeneralMember2022-12-310001056903awr:WaterServiceUtilityOperationsMember2023-12-310001056903awr:WaterServiceUtilityOperationsMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMember2022-12-310001056903awr:ElectricServiceUtilityOperationsMemberus-gaap:ElectricTransmissionAndDistributionMember2023-12-310001056903awr:ElectricServiceUtilityOperationsMemberus-gaap:ElectricTransmissionAndDistributionMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ElectricServiceUtilityOperationsMemberus-gaap:ElectricTransmissionAndDistributionMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ElectricServiceUtilityOperationsMemberus-gaap:ElectricTransmissionAndDistributionMember2022-12-310001056903awr:ElectricServiceUtilityOperationsMemberus-gaap:ElectricGenerationEquipmentMember2023-12-310001056903awr:ElectricServiceUtilityOperationsMemberus-gaap:ElectricGenerationEquipmentMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ElectricServiceUtilityOperationsMemberus-gaap:ElectricGenerationEquipmentMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ElectricServiceUtilityOperationsMemberus-gaap:ElectricGenerationEquipmentMember2022-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:ElectricPlantGeneralMember2023-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:ElectricPlantGeneralMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ElectricServiceUtilityOperationsMemberawr:ElectricPlantGeneralMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ElectricServiceUtilityOperationsMemberawr:ElectricPlantGeneralMember2022-12-310001056903awr:ElectricServiceUtilityOperationsMember2023-12-310001056903awr:ElectricServiceUtilityOperationsMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ElectricServiceUtilityOperationsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ElectricServiceUtilityOperationsMember2022-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:IntangibleAssetsMember2022-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:IntangibleAssetsMember2023-12-310001056903awr:ConservationMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ConservationMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ConservationMember2023-01-012023-12-310001056903awr:ConservationMember2022-01-012022-12-310001056903awr:ConservationMember2023-12-310001056903awr:ConservationMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ConservationMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:ConservationMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterAndWaterServiceRightsMember2022-01-012022-12-310001056903awr:WaterAndWaterServiceRightsMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterAndWaterServiceRightsMember2023-01-012023-12-310001056903awr:WaterAndWaterServiceRightsMember2022-01-012022-12-310001056903awr:WaterAndWaterServiceRightsMember2023-12-310001056903awr:WaterAndWaterServiceRightsMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterAndWaterServiceRightsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterAndWaterServiceRightsMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterPlanningStudiesMember2023-01-012023-12-310001056903awr:WaterPlanningStudiesMember2022-01-012022-12-310001056903awr:WaterPlanningStudiesMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterPlanningStudiesMember2022-01-012022-12-310001056903awr:WaterPlanningStudiesMember2023-12-310001056903awr:WaterPlanningStudiesMember2022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterPlanningStudiesMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterPlanningStudiesMember2022-12-310001056903awr:IntangibleAssetsMemberawr:AmericanStatesUtilityServicesMember2022-12-310001056903awr:IntangibleAssetsMemberawr:AmericanStatesUtilityServicesMember2023-12-310001056903srt:MinimumMemberawr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903awr:BearValleyElectricServiceIncMembersrt:MaximumMember2023-01-012023-12-31utr:MWh0001056903us-gaap:CommodityContractMemberawr:BearValleyElectricServiceIncMember2022-12-310001056903us-gaap:CommodityContractMemberawr:BearValleyElectricServiceIncMember2021-12-310001056903us-gaap:CommodityContractMemberawr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903us-gaap:CommodityContractMemberawr:BearValleyElectricServiceIncMember2022-01-012022-12-310001056903us-gaap:CommodityContractMemberawr:BearValleyElectricServiceIncMember2023-12-310001056903awr:RestrictedShareUnitIncludingPerformanceSharesMember2023-12-310001056903awr:RestrictedShareUnitIncludingPerformanceSharesMember2022-12-310001056903awr:RestrictedShareUnitIncludingPerformanceSharesMember2021-12-310001056903awr:GoldenStateWaterCompanyMembersrt:MaximumMember2023-12-3100010569032023-06-282023-06-280001056903us-gaap:RevolvingCreditFacilityMemberus-gaap:ParentMember2023-12-310001056903us-gaap:RevolvingCreditFacilityMemberawr:GoldenStateWaterCompanyMember2023-12-310001056903srt:ParentCompanyMembersrt:MaximumMember2023-06-270001056903us-gaap:RevolvingCreditFacilityMember2023-11-0500010569032023-11-0500010569032023-11-060001056903us-gaap:LetterOfCreditMember2023-11-060001056903srt:ParentCompanyMemberus-gaap:RevolvingCreditFacilityMember2023-12-310001056903us-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2023-12-310001056903srt:ParentCompanyMemberus-gaap:RevolvingCreditFacilityMember2023-01-012023-12-310001056903us-gaap:RevolvingCreditFacilityMemberawr:GoldenStateWaterCompanyMembersrt:MaximumMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:LetterOfCreditMember2023-12-310001056903us-gaap:RevolvingCreditFacilityMemberawr:GoldenStateWaterCompanyMember2023-01-012023-12-310001056903awr:BearValleyElectricServiceIncMember2023-06-150001056903us-gaap:RevolvingCreditFacilityMemberawr:BearValleyElectricServiceIncMember2023-06-160001056903awr:BearValleyElectricServiceIncMember2023-06-160001056903us-gaap:RevolvingCreditFacilityMemberus-gaap:SubsequentEventMemberawr:BearValleyElectricServiceIncMember2024-02-150001056903us-gaap:RevolvingCreditFacilityMemberawr:BearValleyElectricServiceIncMember2023-12-310001056903us-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:SubsequentEventMemberawr:BearValleyElectricServiceIncMember2024-01-012024-12-310001056903us-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:SubsequentEventMemberawr:BearValleyElectricServiceIncMember2025-01-012025-12-310001056903us-gaap:RevolvingCreditFacilityMemberawr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903us-gaap:RevolvingCreditFacilityMember2023-12-310001056903us-gaap:RevolvingCreditFacilityMember2022-12-310001056903us-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2023-12-310001056903us-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2022-12-310001056903us-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2022-12-310001056903us-gaap:RevolvingCreditFacilityMember2023-01-012023-12-310001056903us-gaap:RevolvingCreditFacilityMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:SeriesASeniorNotes512PercentDue2033Member2023-01-130001056903awr:GoldenStateWaterCompanyMemberawr:SeriesASeniorNotes522PercentDue2038Member2023-01-130001056903awr:GoldenStateWaterCompanyMemberawr:PrivatePlacementNotesMember2023-01-012023-12-310001056903awr:NotesPayable4548PercentDue2032Memberawr:BearValleyElectricServiceIncMember2022-04-280001056903awr:NotesPayable4949PercentDue2037Memberawr:BearValleyElectricServiceIncMember2022-04-280001056903us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-31awr:item0001056903us-gaap:PensionPlansDefinedBenefitMember2023-12-31awr:participant0001056903srt:MinimumMemberus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310001056903us-gaap:PensionPlansDefinedBenefitMembersrt:MaximumMember2023-01-012023-12-310001056903us-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903us-gaap:PensionPlansDefinedBenefitMember2021-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-12-310001056903us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-310001056903srt:MinimumMemberus-gaap:PensionPlansDefinedBenefitMember2021-12-310001056903srt:MinimumMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903srt:MinimumMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310001056903us-gaap:PensionPlansDefinedBenefitMembersrt:MaximumMember2022-12-310001056903us-gaap:PensionPlansDefinedBenefitMembersrt:MaximumMember2023-12-310001056903us-gaap:PensionPlansDefinedBenefitMembersrt:MaximumMember2021-12-310001056903us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-12-310001056903awr:OtherPostretirementBenefitUnionPlanDefinedBenefitMember2022-01-012022-12-310001056903awr:OtherPostretirementBenefitUnionPlanDefinedBenefitMember2023-01-012023-12-310001056903awr:OtherPostretirementBenefitNonunionPlanDefinedBenefitMember2022-01-012022-12-310001056903awr:OtherPostretirementBenefitNonunionPlanDefinedBenefitMember2023-01-012023-12-310001056903awr:OtherPostretirementBenefitUnionPlanDefinedBenefitMember2021-01-012021-12-310001056903awr:OtherPostretirementBenefitNonunionPlanDefinedBenefitMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:PensionPlansDefinedBenefitMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:PensionPlansDefinedBenefitMember2022-01-012022-12-310001056903us-gaap:PensionPlansDefinedBenefitMemberawr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903us-gaap:PensionPlansDefinedBenefitMemberawr:BearValleyElectricServiceIncMember2022-01-012022-12-310001056903us-gaap:PensionPlansDefinedBenefitMemberawr:BearValleyElectricServiceIncMember2021-01-012021-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001056903us-gaap:DebtSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310001056903us-gaap:DebtSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:DebtSecuritiesMember2023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:DebtSecuritiesMember2022-12-310001056903us-gaap:RealEstateFundsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310001056903us-gaap:RealEstateFundsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903us-gaap:RealEstateFundsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-310001056903us-gaap:RealEstateFundsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001056903us-gaap:CashAndCashEquivalentsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310001056903us-gaap:CashAndCashEquivalentsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMember2023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMember2022-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310001056903awr:USSmallCapStocksMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310001056903awr:USLargeCapStocksMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310001056903awr:InternationalFundsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310001056903us-gaap:EquityFundsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310001056903us-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903awr:USSmallCapStocksMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903awr:USLargeCapStocksMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903awr:InternationalFundsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903us-gaap:EquityFundsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903us-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001056903us-gaap:FixedIncomeFundsMembersrt:MinimumMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMembersrt:MaximumMember2023-01-012023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CashAndCashEquivalentsMember2023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2023-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel2Member2023-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001056903awr:USLargeCapStocksMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2023-12-310001056903awr:USLargeCapStocksMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel2Member2023-12-310001056903awr:USLargeCapStocksMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-310001056903awr:USLargeCapStocksMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel2Member2023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CashAndCashEquivalentsMember2022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2022-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel2Member2022-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2022-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001056903awr:USLargeCapStocksMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel2Member2022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2022-12-310001056903awr:USLargeCapStocksMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2022-12-310001056903us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2023-12-310001056903us-gaap:FairValueInputsLevel1Memberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel2Memberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel3Memberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel2Memberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel3Memberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:FairValueInputsLevel1Memberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel2Memberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel3Memberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:TrustForBenefitOfEmployeesMember2023-12-310001056903us-gaap:FairValueInputsLevel1Memberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel2Memberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel3Memberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:FixedIncomeFundsMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel2Memberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel3Memberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:EquitySecuritiesMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:FairValueInputsLevel1Memberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel2Memberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:FairValueInputsLevel3Memberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:TrustForBenefitOfEmployeesMember2022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2021-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2023-01-012023-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2022-01-012022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMembersrt:MaximumMember2022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMembersrt:MaximumMember2023-12-310001056903srt:MinimumMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2023-12-310001056903srt:MinimumMemberus-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2022-12-310001056903us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2021-01-012021-12-31awr:stock_plan0001056903us-gaap:PerformanceSharesMemberawr:EmployeePlans2016And2003And2013DirectorsPlanMember2023-01-012023-12-310001056903awr:EmployeePlans2016And2003And2013DirectorsPlanMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-12-310001056903srt:MaximumMember2023-01-012023-12-310001056903awr:A2003and2013DirectorsplansMember2023-01-012023-12-310001056903awr:EmployeesAndDirectorMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-12-310001056903awr:EmployeesAndDirectorMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-12-310001056903awr:EmployeesAndDirectorMemberus-gaap:RestrictedStockUnitsRSUMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberawr:EmployeesAndDirectorMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:EmployeesAndDirectorMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberawr:EmployeesAndDirectorMemberus-gaap:RestrictedStockUnitsRSUMember2021-01-012021-12-310001056903us-gaap:EmployeeStockOptionMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:EmployeeStockOptionMember2023-01-012023-12-310001056903us-gaap:EmployeeStockOptionMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:EmployeeStockOptionMember2022-01-012022-12-310001056903awr:GoldenStateWaterCompanyMemberus-gaap:EmployeeStockOptionMember2021-01-012021-12-310001056903us-gaap:EmployeeStockOptionMember2021-01-012021-12-310001056903us-gaap:RestrictedStockUnitsRSUMember2022-12-310001056903us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-12-310001056903us-gaap:RestrictedStockUnitsRSUMember2023-12-310001056903us-gaap:RestrictedStockMembersrt:WeightedAverageMember2023-01-012023-12-310001056903us-gaap:PerformanceSharesMember2023-01-012023-12-310001056903srt:MinimumMember2023-01-012023-12-310001056903awr:AmericanStatesUtilityServicesMembersrt:MaximumMember2023-01-012023-12-310001056903us-gaap:PerformanceSharesMember2022-12-310001056903us-gaap:PerformanceSharesMember2023-12-310001056903awr:EmployeePlans2016And2003And2013DirectorsPlanMemberus-gaap:EmployeeStockOptionMember2023-01-012023-12-310001056903srt:WeightedAverageMember2023-01-012023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterPurchaseCommitmentsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:VariousThirdPartiesMemberawr:WaterPurchaseCommitmentsMember2023-12-310001056903awr:GoldenStateWaterCompanyMemberawr:OtherVariousThirdPartiesMemberawr:WaterPurchaseCommitmentsMember2023-12-310001056903srt:MinimumMemberus-gaap:CommodityContractMemberawr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903us-gaap:CommodityContractMemberawr:BearValleyElectricServiceIncMembersrt:MaximumMember2023-01-012023-12-310001056903awr:ElectricPowerPurchaseCommitmentsMemberawr:BearValleyElectricServiceIncMember2023-12-310001056903awr:RenewablesPortfolioStandardMemberawr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903awr:RenewablesPortfolioStandardBundledProductMemberawr:BearValleyElectricServiceIncMember2023-01-012023-12-310001056903us-gaap:SubsequentEventMemberawr:BearValleyElectricServiceIncMember2024-01-012024-01-310001056903awr:GoldenStateWaterCompanyMemberawr:EnvironmentalCleanUpAndRemediationMember2023-12-310001056903srt:ParentCompanyMember2023-01-012023-12-31awr:segment0001056903us-gaap:IntersegmentEliminationMembersrt:ParentCompanyMember2023-01-012023-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:BearValleyElectricServiceIncMember2023-12-310001056903awr:ContractedServicesMemberawr:AmericanStatesUtilityServicesMember2023-12-310001056903srt:ParentCompanyMember2023-12-310001056903us-gaap:IntersegmentEliminationMembersrt:ParentCompanyMember2022-01-012022-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:BearValleyElectricServiceIncMember2022-12-310001056903awr:ContractedServicesMemberawr:AmericanStatesUtilityServicesMember2022-12-310001056903srt:ParentCompanyMember2022-12-310001056903us-gaap:IntersegmentEliminationMembersrt:ParentCompanyMember2021-01-012021-12-310001056903awr:GoldenStateWaterCompanyMemberawr:WaterServiceUtilityOperationsMember2021-12-310001056903awr:ElectricServiceUtilityOperationsMemberawr:BearValleyElectricServiceIncMember2021-12-310001056903awr:ContractedServicesMemberawr:AmericanStatesUtilityServicesMember2021-12-310001056903srt:ParentCompanyMember2021-12-310001056903awr:GoldenStateWaterCompanyMember2022-01-012022-01-3100010569032023-10-012023-12-310001056903srt:ParentCompanyMember2020-12-310001056903us-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2022-04-220001056903us-gaap:RelatedPartyMember2023-12-310001056903us-gaap:RelatedPartyMember2022-12-310001056903srt:ParentCompanyMemberus-gaap:RevolvingCreditFacilityMember2022-12-310001056903srt:ParentCompanyMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-12-310001056903srt:SubsidiariesMember2023-01-012023-12-310001056903srt:SubsidiariesMember2022-01-012022-12-310001056903srt:SubsidiariesMember2021-01-012021-12-31

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-K
 
 
(Mark One)
       Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2023 or
       Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from          to
Commission
File Number
 Registrant, State of Incorporation
Address, Zip Code and Telephone Number
 IRS Employer
Identification No.
001-14431 American States Water Company 95-4676679
Incorporated in California
630 E. Foothill Boulevard,San DimasCA91773-1212
(909)394-3600
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Shares
AWRNew York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Commission Registrant, State of IncorporationIRS Employer
 File Number
Address, Zip Code and Telephone Number
Identification No.
001-12008 Golden State Water Company 95-1243678
Incorporated in California
630 E. Foothill Boulevard,San DimasCA91773-1212
(909)394-3600
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
None
None
None
 Securities registered pursuant to Section 12(g) of the Act:   None
 
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
American States Water CompanyYesNo
Golden State Water CompanyYesNo
 
 
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
American States Water CompanyYesNo
Golden State Water CompanyYesNo
 
Indicate by check mark whether Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
American States Water CompanyYesNo
Golden State Water CompanyYesNo





Indicate by check mark whether Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or such shorter period that the Registrant was required to submit such files).
American States Water CompanyYesNo
Golden State Water CompanyYesNo

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
American States Water Company
Large accelerated filer Accelerated filer Non-accelerated filerSmaller reporting companyEmerging growth company 
Golden States Water Company
Large accelerated filer
 Accelerated filer Non-accelerated filerSmaller reporting companyEmerging growth company 

 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
American States Water Company        ¨
Golden State Water Company        ¨

Indicate by check mark whether the Registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
American States Water Company        
Golden State Water Company        ¨

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the Registrant included in the filing reflect the correction of an error to previously issued financial statements.
American States Water Company        
Golden State Water Company        

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the Registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).
American States Water Company        ☐
Golden State Water Company        ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)
American States Water CompanyYesNo
Golden State Water CompanyYesNo
 
The aggregate market value of all voting and non-voting common shares, no par value, of American States Water ( “Common Shares”) held by non-affiliates of American States Water Company was approximately $3,189,000,557 on June 30, 2023, the last business day of the Registrant's most recently completed second fiscal quarter, based on the closing price per Common Share of American States Water Company as traded on the New York Stock Exchange.  As of February 20, 2024, the number of Common Shares of American States Water Company outstanding was 36,988,764. As of that same date, American States Water Company owned all 171 outstanding Common Shares of Golden State Water Company. The aggregate market value of all voting stock held by non-affiliates of Golden State Water Company was zero on June 30, 2023.

Golden State Water Company meets the conditions set forth in General Instruction I(1)(a) and (b) of Form 10-K and is therefore filing this Form, in part, with the reduced disclosure format for Golden State Water Company.
 Documents Incorporated by Reference:
Portions of the Proxy Statement of American States Water Company will be subsequently filed with the Securities and Exchange Commission as to Part III, Item Nos. 10, 11, 13 and 14 and portions of Item 12, in each case as specifically referenced herein.



AMERICAN STATES WATER COMPANY
and
GOLDEN STATE WATER COMPANY
 
FORM 10-K
 
INDEX
   
 
 
 
 
 
 
   
 
 
Item 7.
 
 
 
 
 
 
   
 
 
 
 
 
   
 
  
2


GLOSSARY OF TERMS
The following terms and acronyms used in this Form 10-K are defined below:
Term or AcronymDefinition
50-year contract
ASUS’s initial 50-year, firm-fixed-price contracts
AFUDCAllowance for Funds Used During Construction
Arrearage Program
California Water and Wastewater Arrearage Payment Program
ASCAccounting Standards Codification
ASUAccounting Standards Update
ASUSAmerican States Utility Services, Inc.
AWRAmerican States Water Company
BRRAMBase Revenue Requirement Adjustment Mechanism
BSUSBay State Utility Services LLC
BVESBear Valley Electric Service, Inc.
CCPACalifornia Consumer Privacy Act
CEMACatastrophic Emergency Memorandum Account
COC
Cost of Capital
CPUCCalifornia Public Utilities Commission
CWACalifornia Water Association
DCAADefense Contract Auditing Agency
DCMADefense Contract Management Agency
DDWDivision of Drinking Water
DRP
Common Share Purchase and Dividend Reinvestment Plan
EBITDAEarnings Before Income Taxes, Depreciation and Amortization
ECUSEmerald Coast Utility Services, Inc.
EPAEconomic Price Adjustment
EPSEarnings Per Share
ERISA
Employee Retirement Income Security Act of 1974, as amended
Exchange Act
Securities Exchange Act of 1934, as amended
Extended Arrearage Program
New Extended Water and Wastewater Arrearage Program
FBWSFort Bliss Water Services Company
FRUSFort Riley Utility Services, Inc.
FTB
California Franchise Tax Board
GAAPGenerally Accepted Accounting Principles in the United States of America
GHGGreenhouse Gas
gpcdGallons Per Capita Per Day
GSWCGolden State Water Company
IRS
Internal Revenue Service
IOWU
Investor-Owned Water Utility
JBCCJoint Base Cape Cod
kvKilovolt
MAFMillion Acre-Feet
MCBAModified Cost Balancing Account
MCL
Maximum Contamination Level
Moody’s
Moody’s Investors Service
MWDMetropolitan Water District of Southern California
MWhMegawatt-Hour
NYSENew York Stock Exchange
ODUSOld Dominion Utility Services, Inc.
OEIS
Office of Energy Infrastructure Safety
3


ONUSOld North Utility Services, Inc.
PCAOBPublic Company Accounting Oversight Board
PFASPerfluoroalkyl Substances
PFBSPerfluorobutane Sulfonic Acid
PFHxSPerfluorohexane Sulfonic Acid
PFOAPerfluorooctanoic Acid
PFOSperfluorooctanesulfonic acid
ppbParts Per Billion
pptParts Per Trillion
PRUSPatuxent River Utility Services LLC
PSUSPalmetto State Utility Services, Inc.
Public AdvocatesPublic Advocates Office at the CPUC
REA
Request for Equitable Adjustment
REC
Renewable Energy Credit
Registrant
American States Water Company and Golden State Water Company
ROURight-of-Use
RPSRenewables Portfolio Standard
RSURestricted Stock Unit
S&PStandard and Poor's Global Ratings
SBSenate Bill
SECSecurities and Exchange Commission
SERPSupplemental Executive Retirement Plan
SOFRSecured Overnight Financing Rate
SWPState Water Project
SWRCBState Water Resources Control Board
TSRTotal Shareholder Return
TUSTerrapin Utility Services, Inc.
U.S.United States
USEPA
United States Environmental Protection Agency
WCCMWater Cost of Capital Mechanism
WMPWildfire Mitigation Plan
WRAMWater Revenue Adjustment Mechanism

4



INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This Form 10-K and the information incorporated by reference into this Form 10-K contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect the current views of our senior management with respect to future events and our financial performance. These statements include forward-looking statements with respect to our business and industry in general. Statements that include the words “expect,” “intend,” “believe,” “estimate,” “may,” “can,” “will,” “likely,” “should,” “could,” “anticipate,” “plan” and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the federal securities laws or otherwise. Forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the following:
the impact of laws, regulations and policies of regulatory agencies or the U.S. government applicable to water, wastewater and electric utility operations;
the ability of GSWC and BVES to recover their respective costs through regulated rates, including increased costs associated with addressing climate change risks, such as drought and wildfires in California, costs incurred in connection with complying with water quality regulations, and increased costs of operation and maintenance due to inflation, supply chain disruptions and increases in interest rates, while facing an increase in customer rate increase opposition and possible reluctance from the CPUC to pass through all such costs to the customers;
customer dissatisfaction due to rising rates needed to recover the costs of replacing aging infrastructure, address climate change risks, comply with water quality, renewable energy and greenhouse gas regulation;
all of our contracts for providing services on military bases are provided to the U.S. government under long-term, fixed-price contracts subject to annual economic price adjustments
all contracts for providing services on military bases may be terminated or suspended at any time by the government;
ASUS is subject to potential government audits or investigations of its business practices and compliance with government procurement statutes and regulations that could result in fines and penalties;
GSWC and BVES are subject to potential audit and investigations by the CPUC for failure to comply with regulations applicable to public utilities, including failure to comply with state and federal water quality requirements, wildfire mitigation plans, renewable energy legislation, greenhouse gas regulations and other climate related regulations that could result in fines and penalties;
we compete with other companies in bidding on providing utility services on military bases which involves estimating costs and potential profits that may not be realized;
the impact of water quality and wastewater quality regulations on military bases;
asset or business acquisitions may not yield the anticipated benefits;
the impact of climate change and extreme weather events, including droughts, storms, high wind events, wildfires, flash flooding and other natural disasters, and the effects they could have on our operations;
our assets at our regulated utilities are subject to condemnation by municipalities and other governmental subdivisions;
increases in the costs of obtaining and complying with the terms of franchise agreements;
damage to our reputation or adverse publicity may lead to increased regulatory oversight or sanctions;
costs and effects of legal and administrative proceedings, settlements, investigations and claims;
our ability to control operation and maintenance costs within the amounts that have been approved in rates or estimated in our military base contracts;
the outbreak of pandemics, such as COVID-19, and other events that may cause region wide, statewide, nationwide or even global disruption, which could impact our businesses, operations, cash flows or financial results;
the inherent risk of damage to private property and injury to employees and the general public involved in the generation, transmission and distribution of electricity, the handling of hazardous materials and equipment, and being in close proximity to public utility construction and maintenance operations;
the impact of groundwater contamination and the increasing costs associated with treatment and mitigation;
risks of incurring losses not covered by insurance or recoverable in rates;
5


the adequacy of water supplies due to fluctuations of weather, climate change, and other uncontrollable factors;
the impact that water conservation efforts may have on GSWC's operations and costs incurred;
changes in electricity and natural gas prices in California;
failure to make accurate estimates about financing and accounting matters;
changes in accounting, public utility, environmental and tax laws and regulations affecting our businesses;
changes in fair value of investments and other assets;
the performance of subcontractors engaged to assist us in the performance of contracted services on military bases;
incomplete or delayed reimbursement from the U.S. government and delays in obtaining decisions from the CPUC on regulated public utility rates that can adversely impact our financial condition and liquidity;
physical security of our critical assets, personnel and data critical to our business, employees, customers and vendors;
cybersecurity incidents that could disrupt critical information technology systems, resulting in the loss of financial and other information critical for operations and the breach of confidential information of our customers, employees and vendors;
our ability to attract, retain, train, motivate, develop, and transition key employees;
the failure of our employees to maintain required certifications and licenses or to complete required compliance training;
changes in interest rates and our ability to borrow funds and access bank and capital markets on reasonable terms;
the impact of inflation and supply chain disruptions on our operational costs and costs of capital that may not be recovered in rates for our regulated utilities and through economic price adjustments for our military bases;
results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions, delays in receiving general rate case decisions from the CPUC, and general market and economic conditions;
actions by credit rating agencies to downgrade AWR or GSWC’s credit ratings or to place those ratings on negative outlook;
our ability to finance the significant capital expenditures required by our operations, which are increasing;
volatility in the price of our Common Shares;
declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans and other post-retirement benefit plans;
our reliance on cash flow from our subsidiaries to meet our financial obligations and to pay dividends on our Common Shares;
the geographic concentration of our operations in California; and
other risks and uncertainties described under the heading “Item 1A. Risk Factors” in this Form 10-K.
Although we believe that the expectations reflected in the forward-looking statements are reasonable based on our current knowledge of our business and operations, we cannot guarantee future results, levels of activity, performance or achievements. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Any forward-looking statements you read in this Form 10-K and the information incorporated herein by reference reflect our views as of their respective dates and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. You should not place undue reliance on these forward-looking statements and you should carefully consider all of the factors identified in this Form 10-K and the information incorporated herein by reference that could cause actual results to differ. Forward-looking statements speak only as of the date they are made and except as required by law, AWR expressly disclaims an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
6

PART I 

Item 1. Business
This annual report on Form 10-K is a combined report being filed by two separate Registrants, American States Water Company (“AWR”) and Golden State Water Company (“GSWC”). References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. GSWC makes no representations as to the information contained in this report relating to AWR and its subsidiaries, other than GSWC.
AWR makes its periodic reports, Form 10-Q and Form 10-K, and current reports, Form 8-K, and amendments to those reports, available free of charge through its website, www.aswater.com, as soon as those reports are electronically filed with or furnished to the Securities and Exchange Commission (“SEC”). Such reports are also available on the SEC’s website at www.sec.gov. AWR also makes available free of charge its code of business conduct and ethics, its corporate governance guidelines, its policy for the recoupment of performance-based compensation, its insider trading policy and the charters of its Nominating and Governance Committee, Compensation Committee and Audit and Finance Committee through its website or by calling (877) 463-6297.
Overview
AWR is the parent company of GSWC, Bear Valley Electric Service, Inc. (“BVES”) and American States Utility Services, Inc. (“ASUS”) (and its wholly-owned subsidiaries: Fort Bliss Water Services Company (“FBWS”), Old Dominion Utility Services, Inc. (“ODUS”), Terrapin Utility Services, Inc. (“TUS”), Palmetto State Utility Services, Inc. (“PSUS”), Old North Utility Services, Inc. (“ONUS”), Emerald Coast Utility Services, Inc. (“ECUS”), Fort Riley Utility Services, Inc. (FRUS), Bay State Utility Services LLC (BSUS), and Patuxent River Utility Services LLC (PRUS)).
AWR has three reportable segments: water, electric and contracted services. Within the segments, AWR has three principal business units, water and electric service utility operations conducted through its regulated utilities GSWC and BVES, respectively, and contracted services conducted through ASUS and its subsidiaries.
GSWC is a public water utility engaged in the purchase, production, distribution and sale of water in 10 counties in the state of California.  GSWC is regulated by the California Public Utilities Commission (“CPUC”).  BVES is a public electric utility that distributes electricity in several San Bernardino County mountain communities in California and is also regulated by the CPUC. Additional information regarding public utility regulation is discussed in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the section titled Regulatory Matters.
AWR’s regulated utilities served 264,093 water customers and 24,777 electric customers at December 31, 2023, or a total of 288,870 customers, compared with 263,265 water customers and 24,705 electric customers at December 31, 2022, or a total of 287,970 customers. Both GSWC’s and BVES’s operations exhibit seasonal trends. Although both have diversified customer bases, residential and commercial customers account for the majority of water and electric sales and revenues. Revenues derived from commercial and residential customers accounted for approximately 90% of total water and electric revenues for the years ended December 31, 2023, 2022 and 2021.
ASUS, through its subsidiaries, has contracted with the U.S. government to provide water and/or wastewater services at various military installations. ASUS operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various U.S. military bases pursuant to an initial 50-year, firm-fixed-price contract and additional firm-fixed-price contracts, task order agreements and contracts with third party prime contractors.  ASUS has one subsidiary that has entered into a task order agreement with the U.S. government that has a term of 15 years. Each of the contracts with the U.S. government is subject to termination, in whole or in part, prior to the end of its term for convenience of the U.S. government or as a result of default or nonperformance by the ASUS subsidiary performing the contract. The price for each of these contracts is subject to annual economic price adjustments or task order adjustments. The contracts are also subject to modifications for changes in circumstances, changes in laws and regulations, and additions to the contract value for new construction of facilities at the military bases.  AWR generally guarantees performance of all of the contracts of ASUS’s subsidiaries.
7

Pursuant to the terms of the 50-year contracts with the U.S. government, the subsidiaries of ASUS operate the following water and wastewater systems:
SubsidiaryMilitary BaseType of SystemLocation
FBWSFort BlissWater and WastewaterTexas and New Mexico
ODUS
Fort Gregg-Adams
WastewaterVirginia
ODUSJoint-Base Langley Eustis and Joint Expeditionary Base Little Creek-Fort StoryWater and WastewaterVirginia
TUSJoint Base AndrewsWater and WastewaterMaryland
PSUSFort JacksonWater and WastewaterSouth Carolina
ONUS
Fort Liberty, Pope Army Airfield and Camp Mackall
Water and WastewaterNorth Carolina
ECUSEglin Air Force BaseWater and WastewaterFlorida
FRUSFort RileyWater and Wastewater Collection and TreatmentKansas
PRUS
Naval Air Station Patuxent River
Water and WastewaterMaryland
BSUS
Joint Base Cape Cod*
Water and Wastewater Collection and TreatmentMassachusetts
*BSUS is the only subsidiary that has entered into a task order agreement serving Joint Base Cape Cod that has a term of 15 years.
Certain financial information for each of AWR’s business segments - water distribution, electric distribution, and contracted services - is set forth in Note 17 to the Notes to Consolidated Financial Statements of American States Water Company and its subsidiaries. While AWR’s water and electric utility segments are not dependent upon a single or only a few customers, the U.S. government is the primary customer for ASUS’s contracted services.  ASUS, from time to time, performs work at military bases for other prime contractors of the U.S. government. 
Seasonality
The demand for water and electricity varies by season. For instance, there can be a higher level of water consumption during the third quarter of each year when weather in California has been hot and dry. During unusually wet weather, our customers generally use less water. The CPUC has adopted regulatory mechanisms at GSWC that help mitigate fluctuations in revenues due to changes in water consumption by our customers in California, which currently remain in effect.
The demand for electricity in our electric customer service area is greatly affected by winter snow levels. An increase in winter snow levels reduces the use of snow-making machines at ski resorts in the Big Bear area and, as a result, reduces our electric revenues. Likewise, unseasonably warm weather during a skiing season may result in temperatures too high for snow making conditions, which also reduces our electric revenues. The CPUC has adopted regulatory mechanisms for our electric business, which helps mitigate fluctuations in the revenues of our electric business due to changes in the amount of electricity used by BVES’s customers.
Environmental Regulations
AWR’s subsidiaries are subject to extensive environmental regulations. GSWC is required to comply with safe drinking water requirements, including testing to determine constituents in its water supply and customer notification requirements if certain contaminants exceed maximum levels or advisory levels, and requirements to address issues relating to known contamination. The subsidiaries of ASUS are subject to similar requirements in connection with their water and wastewater operations on military bases. GSWC is also responsible for clean-up and remediation at a plant site that contained an underground storage tank. As mandated by legislation enacted in California, BVES is required to submit wildfire mitigation plans to the CPUC and the Office of Energy Infrastructure Safety (“OEIS”) for approvals. California requires electric utilities to prepare plans on constructing, maintaining, and operating their electrical lines and equipment to minimize the risk of catastrophic wildfire.
ASUS’s subsidiaries are responsible for ensuring compliance with the reduction and/or removal of all constituents required under its wastewater treatment plant operating permits. ASUS works with state regulators and industry associations for the purpose of staying current with emergent issues and proactively addressing any change in wastewater treatment regulation.
The regulated utilities spent approximately $29.0 million in 2023 and expect to spend approximately $23.5 million in 2024 for capital expenditures on environmental control facilities. During 2023, ASUS performed construction activities (for the benefit of the U.S. government) related to environmental control facilities with a contract value of $4.5 million. ASUS expects to perform construction activities related to environmental control facilities with a contract value of $9.2 million in 2024. In
8

addition, various other capital expenditures at the regulated utilities and construction projects at ASUS are incurred for purposes other than environmental control facilities but may also have some environmental benefits. An environmental control facility is any facility that is reasonably expected to abate, reduce or aid in the prevention, measurement, control of monitoring of noise, air or water pollutants, solid waste, thermal pollution, radiation or other pollutants.
Environmental matters and compliance with such laws and regulations are discussed further in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the section titled Environmental Matters.”
Climate Change Planning, Risks and Opportunities
Climate change is one area that we focus on as we develop and execute our business strategy and financial planning, both in the short- and long-term and is subject to the oversight of the Board of Directors and senior management. First and foremost, designing and implementing efficient and resilient infrastructure and operational processes not only addresses climate change, but also reduces costs. Our capital investment programs are critical to ensure we can continue delivering reliable, high-quality water, wastewater and electric services without interruption. As a utility company, our operating strategy is dependent on having a reliable infrastructure in place.
The risks posed by climate variability increase the need for us to plan for and address supply resiliency. We address these risks by planning, assessing, mitigating, and investing in our infrastructure for the long-term benefit of our communities. As a provider of an essential product and service, our primary goal is to ensure service is uninterrupted.
GSWC considers the potential impacts of climate change in its water supply portfolio planning and its overall infrastructure replacement plans. We evaluate how water supplies, water quality and water demands may change, and consider mitigation strategies to assist us in being able to deliver water to our customers.
We seek to minimize our greenhouse gas (“GHG”) emissions to assist in reducing the effects of climate change. We have studied our GHG emissions levels, set a 2020 baseline, and developed a GHG emissions reduction target of 60% by 2035 from the 2020 baseline. To accomplish this, GSWC and BVES have developed a phased approach, which includes short-, medium- and long-term actions. Our priorities include reductions in energy use and increasing purchases of green energy for our water operations, increasing purchases of green energy for distribution to our electric customers, and reviewing our vehicle fleet needs and electrification. Achievement of this reduction target is contingent on certain external factors, which include the ongoing development of technology.
Water Utility
There are risks to maintaining adequate water quality and/or supply, either from climate variability or other events. They include droughts, changes in weather patterns, natural disasters, wildfires, decisions or actions restricting the use of water from our sources, and/or pumping of groundwater, and contamination or acts of terrorism or vandalism. We consider these potential events in our strategic planning process as we aim to avoid service interruptions and compromised water quality.
Our goal is to maintain adequate and high-quality water supplies. We strive to reach this goal in a number of ways, including monitoring water levels, short- and long-term water supply planning, having a diverse water supply portfolio, developing contingency plans, water efficiency and conservation efforts, and maintaining a strong infrastructure. Additional information on GSWC’s water supplies is discussed further in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operation” under the section titled Water Supplies.”
Electric Utility
Climate change has also impacted electric utilities in California due to an increase in wildfires. BVES’s compliance with its wildfire mitigation plans have resulted in an increase in capital expenditures for wildfire mitigation projects. BVES will not be able to recover the costs incurred to make capital improvements included in BVES’s current wildfire mitigation plans from customers until the CPUC approves recovery of these costs in its next general rate case filing. BVES filed a general rate case application in August 2022, which will determine new electric rates for the years 2023-2026. Power supplies may also become more constrained and more expensive due to regulation of power plants using fossil fuels.
California has established a cap-and-trade program applicable to greenhouse gas emissions. While BVES’s power-plant emissions are below the reporting threshold, as a “Covered Entity,” BVES has an obligation to file a report with the California Air Resources Board (“CARB”) in June of each year under the Greenhouse Gas Mandatory Reporting Regulation. The report will become available publicly in the third quarter of 2024.
The State of California and the CPUC have established renewable energy procurement targets. BVES has entered into a CPUC-approved eleven-year contract for renewable energy credits. Because of this agreement, BVES believes it will comply through at least 2024 with California’s renewable energy statutes that address this issue. BVES is pursuing short- and long-term renewable energy contracts to satisfy its requirements related to its resource portfolio for the compliance period covering the years 2021-2024 and beyond.
9

In 2023, BVES’s renewable power represented 41.3% of total retail sales. Renewable energy procurement requirements continue to escalate, reaching 50% by 2026 and 100% carbon free by 2045. BVES has entered into a contract to construct a solar energy project in Big Bear Lake, subject to obtaining CPUC approval and necessary permits. If approved and constructed, the project will provide a source of clean, local energy for BVES’s customers.
BVES offers a distributed generation program, which benefits customers who install a solar or wind-generating facility that produces renewable energy. Those customers can receive a bill credit if their monthly renewable energy production exceeds their on-site use. BVES also has a number of customers on its Net Energy Metering Program (NEM), which was the previous renewable energy program. NEM customers can receive a bill credit if their annual renewable energy production exceeds their on-site use. Approximately 5% of the energy consumed by our BVES customers is now generated by customer-owned renewable sources (solar).
BVES is also required to comply with the CPUC’s greenhouse gas emission performance standards. Under these standards, BVES must file an annual attestation with the CPUC stating that BVES has no new ownership investment in generation facilities exceeding the emission performance standards and no long-term commitments for generation exceeding the standards. In January 2024, BVES filed an attestation that BVES complied with the standards for 2023. At this time, management cannot estimate the impact, if any, that these regulations may have on future costs over BVES’s power plant operations or the cost of BVES’s purchased power from third party providers.
Competition
The businesses of GSWC and BVES are substantially free from direct and indirect competition with other public utilities, municipalities and other public agencies within their existing service territories.  However, GSWC and BVES may be subject to eminent domain proceedings in which governmental agencies, under state law, may acquire GSWC’s water systems or BVES’s electric system if doing so is necessary and in the public’s interest. GSWC competes with governmental agencies and other investor-owned utilities in connection with offering service to new real estate developments on the basis of financial terms, availability of water and ability to commence providing service on a timely basis. ASUS actively competes for business with other investor-owned utilities, other third-party providers of water and/or wastewater services, and governmental entities primarily on the basis of quality of service and price.
AWR Workforce
AWR and its subsidiaries had a total of 815 employees as of December 31, 2023.  GSWC had 506 employees as of December 31, 2023. BVES had 50 employees, of which 18 employees are covered by a collective bargaining agreement with the International Brotherhood of Electrical Workers, which expires in December 2025. At times, GSWC and BVES use temporary and contract workers for a finite period of time and in a limited capacity to continue a project or workflow until they can hire a regular employee. It is also common for those temporary workers to be hired as a regular, full-time employee.
ASUS and its subsidiaries had a total of 259 employees as of December 31, 2023. FBWS, a subsidiary of ASUS, has 14 employees that are covered by a collective bargaining agreement with the International Union of Operating Engineers. This agreement expires in September 2024.
Our businesses require a combination of complex infrastructure, regulatory expertise and customer service. Ongoing development of our talent across the organization to meet critical business needs is a continual focus, and includes (i) building a culture such that high-potential talent is identified and further developed, (ii) creating career paths that not only move up a specialized ladder, but across the organization, and (iii) offering opportunities for employees to accept new challenges through stretch assignments.
Attracting Diverse Qualified Candidates
We understand that strength comes from having a diverse employee population. We strive to hire from our local communities and to have a workforce that is representative, at all job levels, of the communities we serve and from which we recruit. This begins with the recruitment process. We strive to have all aspects of employment, including the decision to hire, promote, discipline, or discharge, be based on merit, competence, performance, and business needs. It is our policy not to discriminate on the basis of race, color, religion, marital status, age, national origin, ancestry, physical or mental disability, medical condition, pregnancy, genetic information, gender, sexual orientation, gender identity or expression, veteran status, or any other status protected under federal, state, or local laws.

10

Compensation and Benefits
We believe that we pay employees a competitive and fair wage, as benchmarked with other leading companies and the market. Consistent with our principle of valuing personal mastery, we reward employees for improving their skills and capabilities. Our benefits include a defined benefit pension plan for employees hired prior to January 1, 2011, a defined contribution plan for hires or rehires after December 31, 2010, a 401(k) plan, healthcare and insurance benefits, health savings and flexible spending accounts.
Safety and Training
Strong occupational health and safety practices reduce injuries, keep our workforce healthy, and reduce operating costs. A safe workforce translates into better performance company-wide. We work to create a safety-focused culture in which each individual feels personally responsible for their own safety, the safety of their co-workers, as well as the safety of the communities they serve. Safety performance is included as a metric in the officer and manager compensation programs. Employees attend training in various mandated safety programs that are applicable to their area of operations, including training to meet regulatory safety training requirements and requirements of the Department of Transportation. We also provide training to assist in compliance with local, state, and federal environmental laws.
To reinforce our safety efforts and protocols, company-wide safety inspections at GSWC and BVES are conducted with supervisors. The inspection reports are forwarded to management for review, allocation of resources are made (if needed), and corrective actions are taken. ASUS has a dedicated Safety Coordinator located at each military base installation served. The onsite Safety Coordinator is responsible for regulatory compliance, as well as beneficial health and safety monitoring functions.
Learning and Development
Compliance training is required each year, for each employee. Other types of training are offered on an optional basis. Examples of optional programs include ongoing water operations competencies and education, supervisor development, knowledge capture and management, feedback and measurements to show the value of learning solutions, and administrative oversight for various business competencies relative to mandated training and compliance requirements. We pay for approved external business-related seminars and workshops. Certain positions require employees to maintain all of their job-specific certifications, licenses and continuing education credits.
On a regular and ongoing basis, we require all employees to certify that they have reviewed and understand our Code of Conduct as well as our Employee Handbook. We provide harassment and prevention awareness training for all employees.
Succession Planning
On an annual basis, our senior management team completes a roadmap for improving human capital management by developing succession plans with the goal of achieving the most efficient alignment of resources and talent to meet business needs. This includes identifying key succession positions and potential successors for top-level positions, such as Vice Presidents, for the next ten years.
Recruiting, developing and retaining the right talent is key to our long-term success. With approximately 30% of our employees eligible for retirement in the next five years, we are focused on transferring institutional knowledge, continuing succession planning and pursuing recruitment and development strategies to attract qualified talent.

11

Item 1A. Risk Factors
You should carefully read the risks described below and other information in this Form 10-K in order to understand certain of the risks of our business.
Overview of Risk Factors
We have three business segments, water utility, electric utility and contracted services, each of which are subject to different risks as further discussed below. We are also subject to risks frequently encountered by businesses of our size.
Regulated Water and Electric Utility Operations
GSWC’s and BVES’s revenues depend substantially on the rates and charges we are permitted to recover from our customers and the timing of that recovery as authorized by the CPUC. Decisions of the CPUC could result in impairment charges and customer refunds, and delays in recovering costs in rates. Some of the factors impacting our ability to obtain rate recovery on a timely basis include opposition to rate increases arising out of increased costs for replacing aging infrastructure and increased costs associated with addressing climate change and weather event risks, such as drought, storms and wildfires in California, costs incurred in connection with complying with water quality regulations, costs incurred in connection with obtaining and complying with franchise agreements with local governmental agencies and costs of obtaining permits from local, state and federal governmental agencies. There may also be increased customer opposition to rate increases due to customer dissatisfaction with conservation rate structures and public safety power shutdowns.
Our water and electric utility services are provided in California. As a result, our financial results are largely subject to political, water supply, labor, utility cost and regulatory risks, economic conditions, natural disasters (which may increase as a result of climate change), and other risks affecting California businesses. Our assets are also subject to condemnation in California.
Contract Services Operations
All of our utility privatization contract services are provided to the U.S. government pursuant to the terms of firm-fixed-price contracts subject to annual economic price adjustments. ASUS may also, from time to time, perform construction services on military bases as a subcontractor or pursuant to task order agreements. These contracts may be terminated or services suspended at any time for convenience of the government. We are subject to penalties for failure to conform or comply with U.S. government regulations and the terms of our contracts, and may be suspended or debarred for such failure to comply. The fees that we may charge are adjusted annually and in response to our requests for equitable adjustments. We have experienced delays in obtaining price and equitable adjustments, as well as delays in being paid by the U.S. government.
We are also responsible for complying with water quality and wastewater quality regulations on military bases.
We compete with other companies in bidding on providing utility services on military bases. We submit bids on new U.S. government contracts for military bases based on estimates of cost and potential profit. Our estimates and judgment are important, for in the event we overpay to obtain a contract, we could incur losses on it.
Other Business Risks
We may be subject to financial losses, penalties and other liabilities if we fail to operate and maintain safe work sites, equipment and facilities, including losses, damages, penalties and other liabilities arising from wildfires, other natural disasters and terrorist activities. We may not be able to recover all these losses from insurance or from ratepayers or may experience delays in obtaining recovery for these losses.
We are also subject to other business risks typical of our business, including:
Cybersecurity incidents and physical security risks of our infrastructure and data could disrupt our operations and critical systems, increase our expenses, result in liabilities to third parties and damage to our reputation;
Failure to attract, train, develop and transition key employees with the necessary skills to replace employees who are retiring or otherwise terminate employment or to fill new positions needed to respond to the increase in public utility and environmental regulations;
Failure to make accurate estimates about financing and accounting matters, and in filing requests for rate increases with the CPUC or requests for price adjustments with the U.S. government or in bids on military base contracts or obtain new task orders from the U.S. government;
Our ability to finance significant capital expenditures required by our businesses, which could be adversely impacted by general economic and market conditions, delays in receiving decisions from the CPUC on our general rate cases or delays in receiving payment from the U.S. government;
12

Volatility in economic conditions such as changes to inflation, short-term interest rate volatility, and other market conditions may adversely impact our financial performance;
Changes in accounting, public utility, environmental and tax laws and regulations impacting our business;
Our inability to comply with debt covenants in our debt agreements; and
Final determination of our income tax liability by the federal and applicable state governments.
As a holding company, AWR is dependent upon dividends from its subsidiaries to pay dividends to its shareholders. The ability of its subsidiaries to pay dividends is dependent upon compliance with state laws governing the payment of dividends and the terms of the debt agreements with the applicable subsidiary.
Climate Change
Climate change has resulted in increased frequency and duration of droughts, potential degradation of water quality, and changes in demand for services. More frequent and extended California drought conditions may cause increased stress on surface water supplies and groundwater basins, as well as allocations of water from the State Water Project and the Colorado River. Wholesale water suppliers may not have adequate supply during extended periods of drought, which may result in increases in prices for water delivered to us. In addition, GSWC could experience an increased use of reclaimed or recycled water by GSWC customers, in lieu of GSWC supplying potable water to these customers. Reclaimed water generally has lower tariff rates than potable water and may be provided by other companies or government entities in GSWC’s service territory. Prolonged droughts may also result in state-ordered mandatory or voluntary conservation efforts by customers, changes in customer conservation patterns and imposition of new regulations impacting such things as landscaping and irrigation patterns.
California has established long-term indoor and outdoor water use standards to address the impact of climate change on California water resources. These standards will require all urban water retailers to meet certain water use standards on a system-by-system basis. The extended drought in the Colorado River watershed has resulted in a short-term agreement between Arizona, California and Nevada and the Bureau of Reclamation to reduce the amount of water taken from the Colorado River by 10% over the next three years (through the end of 2026). The impact to GSWC as a result of the short-term agreement is not known at this time.
Drought conditions have contributed to increases in wildfires, which has resulted in new California legislation requiring electric utilities to adopt and implement wildfire mitigation plans. BVES is incurring increased capital expenditures related to the creation and implementation of these plans. We anticipate that the costs of capital improvements necessary to implement this program will continue to increase. BVES is also required to implement a public safety power shut-off program during high wildfire threat conditions. Shut-offs can reduce BVES’s liquidity and decrease customer satisfaction. Abnormal weather patterns created by climate change can also impact electricity demand at BVES. The demand for electricity at our electric segment is greatly affected by winter snow levels. An increase in winter snow levels reduces the use of snow-making machines at ski resorts in the Big Bear area and, as a result, also reduces BVES’s liquidity. Likewise, unseasonably warm weather during a skiing season may result in temperatures too high for snow making conditions, which also reduces our liquidity.
More extreme weather events which may result in flash flooding, mudslides and high winds which could damage our infrastructure and our customers’ and/or suppliers’ property as a result of climate change may increase our cost of maintaining our infrastructure, our ability to provide water or electric service and the demand of our services from customers whose property has been damaged. The cost of damage to our infrastructure may be somewhat mitigated if the CPUC permits us to establish a catastrophic emergency memorandum account enabling us to recover the costs incurred. Furthermore, potential future legislative efforts to ban gas powered power plants as a response to climate change may require us to replace our current 8.4 MW natural gas-powered generator before its useful life is completed.
Risks Associated with Regulated Public Utility and Contracted Services Operations
Our businesses are heavily regulated and, as a result, decisions by regulatory agencies or the U.S. government can significantly affect our businesses
GSWC’s and BVES’s revenues depend substantially on the rates and fees they charge their customers and their ability to recover costs on a timely basis as authorized by the CPUC, including the ability to recover the costs of purchased water, groundwater assessments, electricity, natural gas, chemicals, water treatment, security at water facilities and preventative maintenance and emergency repairs. Any delays by the CPUC in granting rate relief to cover increased operating and capital costs at our public utilities or delays in obtaining approval of our requests at ASUS for economic price or equitable adjustments for contracted services from the U.S. government may adversely affect our year-over-year financial performance, liquidity and cash flows. We may file for interim rates in California in situations where there may be delays in granting final rate relief during a general rate case proceeding. If the CPUC approves lower rates than the interim rates we were permitted to adopt, the
13

CPUC will require us to refund to customers the difference between the interim rates and the rates approved by the CPUC. Similarly, if the CPUC approves rates that are higher than the interim rates, the CPUC may authorize us to recover the difference between the interim rates and the final rates.
Regulatory decisions affecting GSWC and/or BVES may also impact prospective revenues and earnings, affect the timing of the recognition of revenues and expenses, may overturn past decisions used in determining our revenues and expenses, and could result in impairment charges and customer refunds. Negative decisions made by the CPUC may have an adverse effect on GSWC’s or BVES’s results of operations, financial position or cash flows and affect the ability of the regulated utilities to recover costs and an appropriate return on the capital investments being made.
On August 27, 2020, the CPUC issued a final decision in the first phase of the CPUC’s Order Instituting Rulemaking evaluating the low income ratepayer assistance and affordability objectives contained in the CPUC’s 2010 Water Action Plan, addressing the continued use of the Water Revenue Adjustment Mechanism (“WRAM”) and the Modified Cost Balancing Account (“MCBA”) by California water utilities. These mechanisms implemented in 2008 for the purpose of recovering the costs of water would be discontinued for years after 2024. However, on September 30, 2022, the governor of California signed Senate Bill (“SB”) 1469. Effective January 1, 2023, SB 1469 allows Class A water utilities, including GSWC, to continue requesting the use of the WRAM in their next general rate case. With the passage of SB 1469, GSWC has requested the continued use of a full revenue decoupling mechanism, similar to the WRAM, in its next general rate case application filed in August 2023 that will establish new rates for the years 2025 – 2027. GSWC’s request to continue using a full revenue decoupling mechanism in its next general rate case will be subject to CPUC approval.
Our regulated utilities' ongoing financial results depend on their ability to recover costs from its customers, including costs such as water or electricity purchased for its customers, through rates charged and billed to its customers as approved by the CPUC. Both GSWC's and BVES's financial results depend on its ability to earn a reasonable return on capital, from its credit facilities, long-term debt and equity as well as the recovery of costs such as operations and maintenance expense that are incurred. Our ability to recover costs and earn a reasonable rate of return can be affected by time lags or delays in receiving approvals on general rate case decisions from the CPUC to authorize recovery of customers' rates and differences between authorized rates and the actual costs incurred, due to increased levels of inflation, which each could adversely impact our financial condition and cash flows.
Management continually evaluates the anticipated recovery of regulatory assets, settlement of liabilities and revenues subject to refund and provides for allowances and reserves as deemed necessary. In the event that our assessment of the probability of recovery or settlement through the ratemaking process is incorrect, we will adjust the associated regulatory asset or liability to reflect the change in our assessment or any regulatory disallowances. A change in our evaluation of the probability over the recovery of regulatory assets including a future disallowance of previously granted regulatory mechanisms, or a regulatory disallowance of all or a portion of our costs could have a material adverse effect on our financial results.
We are also, in some cases, required to estimate future expenses and, in others, we are required to incur the expense before receiving approval to recover the costs. As a result, our revenues and earnings may fluctuate depending on the accuracy of our estimates, the timing of our investments or expenses or other factors. If expenses increase significantly over a short period, we may experience delays in recovery of these expenses and the inability to recover the carrying costs for the expenses, which increases risks of regulatory disallowances or write-offs.
Delays in obtaining approval of general rate cases could adversely impact our liquidity
We have been experiencing increasing delays in obtaining CPUC approval of our general rate cases. As a result, we have previously needed, and may need in the future, to undertake capital improvements described in our rate case filings before we receive CPUC approval to recover these costs in rates. BVES is required to file wildfire mitigation plans with OEIS for regulatory approval by the OEIS and the CPUC and, once approved, for BVES to make the capital improvements described in the wildfire mitigation plan. However, the CPUC does not approve recovery of any of the costs of implementing approved wildfire mitigation plans until it approves the next general rate case filed by BVES after the approval of the wildfire mitigation plans. As a result, there may be a delay in recovering costs associated with capital improvements required to be made by wildfire mitigation plans, and the CPUC may not approve all costs incurred in connection with the implementation of these plans that are incurred prior to obtaining CPUC approval of these costs in a general rate case.
Changes in laws, regulations and policies of regulatory agencies can significantly affect our business
Regulatory agencies may also change their rules and policies, which may adversely affect our profitability and cash flows. We are subject to regulations under U.S. federal and state regulations and policies including from the CPUC, Federal Energy Regulatory Commission and other regulatory agencies. Regulations and laws affect almost all aspects of our businesses and changes to such regulations are continuous and ongoing. There can be no assurance that laws, regulations and policies of regulatory agencies will not be changed in ways that will not materially impact our results of operations, financial position or cash flows.
14

Changes in policies of the U.S. government may adversely affect one or more of ASUS’s subsidiaries. In certain circumstances, the U.S. government may be unwilling or unable to appropriate funds to pay costs mandated by changes in rules and policies of federal or state regulatory agencies. The U.S. government may disagree with the increases that we request and may delay approval of requests for equitable adjustment or economic price adjustments, which could adversely affect our anticipated rates of return at our contracted services business.
We may also be subject to fines or penalties if a regulatory agency or the U.S. government determine that we have failed to comply with laws, regulations or orders applicable to our businesses, unless we successfully appeal such an adverse determination. Regulatory agencies may disallow recovery of certain costs if they determine they may no longer be recovered in rates, or if audit findings determine that we have failed to comply with our policies and procedures for procurement or other practices.
Our assets at our regulated utilities are subject to condemnation
Municipalities and other governmental subdivisions may, in certain circumstances, seek to acquire certain of our assets through eminent domain proceedings. It is generally our practice to contest these proceedings, which may be costly and may temporarily divert the attention of management from the operation of our business. If a municipality or other governmental subdivision succeeds in acquiring our assets, there is a risk that we will not receive adequate compensation for the assets taken or be able to recover all charges associated with the condemnation of such assets. In addition, we would no longer be entitled to any portion of the revenues generated from the use of such assets.
Our costs of obtaining and complying with the terms of franchise agreements are increasing
Cities and counties in which GSWC and BVES operate have granted them franchises to construct, maintain and use pipes, wires and appurtenances in or along public streets and rights of way. The costs of obtaining, renewing and complying with the terms of these franchise agreements have been increasing as cities and counties attempt to regulate our operations within the boundaries of the city or unincorporated areas of the counties in which we operate. Our regulated utilities may also be required from time to time to relocate existing infrastructure in order to accommodate local infrastructure improvement projects. Cities and counties have also been imposing new fees on our operations, including pipeline abandonment fees and road-cut or other types of capital improvement fees. At the same time, there is increasing opposition from consumer groups to rate increases that may be necessary to compensate GSWC and BVES for the increased costs of regulation by local governments. These trends may adversely affect our ability to recover in rates the costs of providing water and electric services and to efficiently manage capital expenditures and operating and maintenance expenses within CPUC-authorized levels.
We have also experienced instances of increased costs and delays in obtaining permits that we need in order to install, maintain, repair, and replace some of our aging water and electric utility infrastructure and upgrades needed to comply with changes in laws and regulations or otherwise necessary to harden our infrastructure as a result of drought, wildfires and increases in the frequency and duration of more extreme weather events due to climate change.
Our liquidity and earnings may be adversely affected by maintenance costs at our regulated utilities
Some of our infrastructure in California is aging. We have experienced leaks and mechanical problems in some of these older systems. In addition, infrastructure maintenance expenses are affected by labor and material costs, inflationary changes impacting such costs, supply chain disruptions and more stringent environmental regulations. Our electrical systems have also required upgrades due to aging and new wildfire safety and other compliance requirements. While we spend significant amounts on maintenance each year, these costs can increase substantially and unexpectedly. There could be an increase in infrastructure damage if California experiences more extreme weather events resulting in damage to our property.
We include estimated increases in maintenance costs for future years in each water and electric general rate case filed by GSWC and BVES, respectively, for possible recovery. To the extent that these estimates understate our actual costs, we may be unable to recover all maintenance costs in rates.
Adverse publicity and reputational risks can lead to increased regulatory oversight or sanctions
As a utility company, we have a large customer base and are therefore, subject to public criticism regarding, among other things, the quality and reliability of our water and electricity services, and the accuracy, timeliness and format of bills that are provided to our customers for such services. Adverse publicity and negative customer sentiment may cause regulatory authorities, including the CPUC, and other governing bodies to view us unfavorably and cause us to be susceptible to increased oversight and more stringent regulations and economic requirements.
Risks Associated with Health, Safety and Liability Matters
Our liquidity and earnings may be adversely affected by wildfires
It is possible that wildfires may occur more frequently, be of longer duration or impact larger areas as a result of drought-damaged plants and trees, lower humidity or higher winds that may occur as result of changing weather patterns. Our
15

liquidity, earnings and operations may be materially adversely affected by wildfires. We may be required to (i) incur greater costs to relocate lines or increase our trimming of trees and other plants near our electric facilities to avoid wildfires, (ii) make significant additional capital expenditures to fund the projects in BVES’s wildfire and safety mitigation plans, and (iii) bear the costs of damages to property or injuries to the public if it is determined that our power lines or other electrical equipment was a cause of such damages or injuries. In addition, wildfires may result in reduced demand if structures are destroyed or unusable following a wildfire and may adversely affect our ability to provide water or electric service in our service areas due to public safety power shutdowns or any of our water or electric utility infrastructure is damaged by a wildfire.
Losses by insurance companies resulting from wildfires in California have caused insurance coverage for wildfire risks to become more expensive and coverage could become unavailable on reasonable terms, and our insurance may be inadequate to recover all our losses incurred in a wildfire. We might not be allowed to recover in our rates any increased costs of wildfire insurance or the costs of any uninsured wildfire losses.
Electric utilities in California are authorized to shut off power for public safety reasons, such as during periods of extreme fire hazard, if the utility reasonably believes that there is an imminent and significant risk that strong winds may topple power lines or cause vegetation to come into contact with power lines leading to increased risk of fire. Shut-offs can reduce BVES’s liquidity and decrease customer satisfaction.
These shut-offs can also adversely affect GSWC’s water utility operations if the electric utilities that provide electric service to GSWC’s water operations shut off power lines that deliver electricity to GSWC’s water plant and equipment, thereby adversely affecting its ability to provide water service to its customers.
We may, in certain circumstances, be held strictly liable for damages to property caused by our equipment even if we are not negligent  
Utilities in California may be held strictly liable, in certain circumstances, for damages caused by their property, such as mains, fire hydrants, power lines and other equipment, even though they were not negligent in the operation and maintenance of that property, under a doctrine known as inverse condemnation. Our liquidity, earnings and operations may be adversely affected if we are unable to recover the costs of paying claims for damages caused by the non-negligent operation and maintenance of our property from customers or through insurance.
We may be subject to financial losses, penalties and other liabilities if we fail to maintain safe work sites, equipment or facilities
Our safety record is critical to our reputation. We maintain health and safety standards to protect our employees, customers, vendors and the public. Although we aim to comply with such health and safety standards, it is unlikely that we will be able to avoid all accidents or other events resulting in damage to property or the public.
Our business sites, including construction and maintenance sites, often put our employees and others in close proximity with large pieces of equipment, moving vehicles, pressurized water, chemicals and other regulated materials. On many sites, we are responsible for safety and, accordingly, must implement safety procedures. If we fail in any respect to implement such procedures or if the procedures we implement are ineffective or are not followed by our employees or others, our employees and others may be injured or die. Unsafe work sites also have the potential to increase our operating costs. Any of the foregoing could result in financial losses, which could have a material adverse impact on our business, financial condition, and results of operations.
Our operations involve the handling and storage of hazardous chemicals that, if improperly handled, stored or disposed of, could subject us to penalties or other liabilities. We are also subject to regulations dealing with occupational health and safety. Although we maintain functional employee groups whose primary purpose is to ensure that we implement effective health, safety, and environmental work procedures throughout our organization, including construction sites and maintenance sites, a failure to comply with such regulations in any respect could subject us to liability.
The generation, transmission and distribution of electricity are dangerous and involve inherent risks of damage to private property and injury to employees and the general public
Electricity is dangerous for employees and the general public should they come in contact with electrical current or equipment, including through downed power lines, sparking during high-wind events or equipment malfunctions. Injuries and property damage caused by such events may subject BVES to significant liabilities that may not be covered or fully covered by insurance. Additionally, the CPUC has delegated to its staff the authority to issue citations, which carry a fine of $50,000 per-violation per day, to electric utilities subject to its jurisdiction for violations of safety rules found in statutes, regulations, and the General Orders of the CPUC.

16

We may sustain losses that exceed or are excluded from our insurance coverage or for which we are not insured
We are, from time to time, parties to legal or regulatory proceedings.  These proceedings may pertain to regulatory investigations, employment matters or other disputes.  Management periodically reviews its assessment of the probable outcome of these proceedings, the costs and expenses reasonably expected to be incurred, and the availability and extent of insurance coverage. On the basis of this review, management establishes reserves for such matters.  We may, however, from time to time be required to pay fines, penalties or damages that exceed our insurance coverage and/or reserves if our estimate of the probable outcome of such proceedings proves to be inaccurate. 
We maintain insurance coverage as part of our overall legal and risk management strategy to minimize our potential liabilities.  Generally, our insurance policies cover property, workers’ compensation, general liability, automobile liability, and other risks. Insurance coverage may not cover certain claims involving punitive damages. Each policy includes deductibles or self-insured retentions and policy limits for covered claims.  Our insurance policies also contain exclusions and other limitations that may not cover our potential liabilities. Furthermore, due to insurance market conditions resulting in tighter underwriting and increased premiums along with reductions in capacity, we have experienced increased costs and difficulties in obtaining certain insurance coverages, particularly along the general liability, umbrella and cyber insurance lines. We may experience further increased insurance costs and/or coverage reductions in future years. As a result, we may sustain losses that exceed or that are excluded from our insurance coverage or for which we are not insured.
Uninsured losses and increases in the cost of insurance may not be recoverable or fully recoverable in customer rates. A loss which is not insured or not fully insured or cannot be recovered in customer rates could materially affect our financial condition and results of operations.
We operate in areas subject to natural disasters
We operate in areas that are prone to earthquakes, fires, mudslides, hurricanes, tornadoes, high winds, storms, flooding or other natural disasters.  While we maintain insurance policies to help reduce our financial exposure, a significant seismic event in southern California, where our regulated water and electric operations are concentrated, wildfires or other natural disasters in any of the areas that we serve could adversely impact our ability to deliver water and electricity or provide wastewater service, and adversely affect our costs of operations. Any losses not covered by insurance could have an adverse effect on the results of operations, financial position, cash flows and reputation of our regulated utilities. In addition, such events may cause increases to the cost of the applicable insurance.  With respect to GSWC and BVES, the CPUC has historically allowed utilities to establish a catastrophic emergency memorandum account (“CEMA”) to potentially recover incremental costs not covered in rates caused by catastrophic emergency events. With respect to ASUS’s subsidiaries, costs associated with responding to natural disasters have been recoverable through requests for equitable adjustment.
Our operations may be the target of terrorist activities
Terrorists could seek to disrupt service to our customers by targeting our assets through physical or cyber events.  We also may be prevented from providing water and/or wastewater services at the military bases we serve in times of military crisis affecting these bases. We have invested in additional security for facilities throughout our regulated service areas to mitigate the risks of terrorist activities. In addition, we continue to increase our investment in information technology to monitor and address cyber threats and attempted cyber-attacks, and to improve our posture in addressing security vulnerabilities.
Water Quality Regulatory Risks
Our costs involved in maintaining water quality and complying with environmental regulation have increased and are expected to continue to increase
Capital and operating costs at GSWC may increase substantially as a result of increases in environmental regulation arising from increases in the cost of upgrading and building new water treatment plants, disposing of residuals from our water treatment plants, handling and storing hazardous chemicals, compliance-monitoring activities and securing alternative supplies when necessary.  GSWC may be able to recover these costs from customers through the ratemaking process. We may also be able to recover a portion of these costs from certain third parties under settlement and contractual arrangements. Our capital and operating costs may also increase as a result of changes in laboratory detection capabilities and drinking water notification levels, response levels, and maximum contaminant levels for certain substances, such as perfluoroalkyl substances (“PFAS”) used to make certain fabrics and other materials, certain fire suppression agents and used in various industrial processes. Additional information regarding the regulation of PFAS in drinking water is provided in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the heading “Environmental Matters.”
Our operating costs may increase as a result of groundwater contamination
Our operations can be impacted by groundwater contamination in certain service territories.  Historically, we have taken a number of steps to address contamination, including the removal of wells from service, decreasing the amount of groundwater pumped from wells in order to facilitate remediation of plumes of contaminated water, constructing water
17

treatment facilities and securing alternative sources of supply from other areas not affected by the contamination.  In emergency situations, we have supplied our customers with bottled water until the emergency situation has been resolved.
Our ability to recover these types of costs depends upon a variety of factors, including approval of rate increases, the willingness of potentially responsible parties to settle litigation and otherwise address the contamination, and the extent and magnitude of the contamination. We may recover costs from certain third parties that may be responsible, or potentially responsible, for groundwater contamination. However, we often experience delays in obtaining recovery of these costs and incur additional costs associated with seeking recovery from responsible or potentially responsible parties, which may adversely impact our liquidity. In some events, we may be unable to recover all of these costs from third parties due to the inability to identify the potentially responsible parties, the lack of financial resources of responsible parties or the high litigation costs associated with obtaining recovery from responsible or potentially responsible parties.
We can give no assurance regarding the adequacy of any such recovery to offset the costs associated with contamination or the cost of recovery of any legal costs. To date, the CPUC has permitted us to establish memorandum accounts for potential recovery of these types of costs when they have arisen.  
Management believes that rate recovery, proper insurance coverage and reserves are in place to appropriately manage these types of contamination issues.  However, such issues, if ultimately resolved unfavorably to us, could, in the aggregate, have a material adverse effect on our results of operations and financial condition. 
Water Supply Risks
The adequacy of our water supplies depends upon weather and a variety of other uncontrollable factors
The adequacy of our water supplies varies from year to year depending upon a variety of factors, including:
rainfall, basin replenishment, flood control, snowpack levels in California and the West, reservoir levels and availability of reservoir storage;
availability of Colorado River water and imported water from the State Water Project;
the amount of usable water stored in reservoirs and groundwater basins;
the amount of water used by our customers and others;
water quality;
legal limitations on production, diversion, storage, conveyance and use; and
climate change.
California drought conditions in recent years and historically and changes in weather patterns have caused an increased stress on surface water supplies and groundwater basins. In addition, low or no allocations of water from the State Water Project and court-ordered pumping restrictions on water obtained from the Sacramento-San Joaquin Delta decrease or eliminate the amount of water that the Metropolitan Water District of Southern California (“MWD”) and other state water contractors are able to import from northern California.
We have implemented tiered rates and other practices, as appropriate, in order to encourage water conservation. We have also implemented programs to assist customers in complying with water usage reductions. Over the long term, we are acting to secure additional supplies, which may include supplies from desalination and increased use of reclaimed water, where appropriate and feasible. We cannot predict the extent to which these efforts to reduce stress on our water supplies will be successful or sustainable, or the extent to which these efforts will enable us to continue to satisfy all of the water needs of our customers. Water shortages at GSWC may:
adversely affect our supply mix, for instance, by causing increased reliance upon more expensive water sources;
adversely affect our operating costs, for instance, by increasing the cost of producing water from more highly contaminated aquifers or requiring us to transport water over longer distances, truck water to water systems or adopt other emergency measures to enable us to continue to provide water service to our customers;
result in an increase in our capital expenditures over the long term, for example, by requiring future construction of pipelines to connect to alternative sources of supply, new wells to replace those that are no longer in service or are otherwise inadequate to meet the needs of our customers, and other facilities to conserve or reclaim water;
adversely affect the volume of water sold as a result of such factors as mandatory or voluntary conservation efforts by customers, changes in customer conservation patterns, recycling of water by customers and imposition of new regulations impacting such things as landscaping and irrigation patterns;
18

adversely affect aesthetic water quality if we are unable to flush our water systems as frequently due to water shortages or drought restrictions; and
result in customer dissatisfaction and harm to our reputation if water service is reduced, interrupted or otherwise adversely affected as a result of drought, water contamination or other causes.
Our liquidity may be adversely affected by changes in water supply costs
We obtain our water supplies for GSWC from a variety of sources, which vary among our water systems. Certain systems obtain all of their supply from water that is pumped from aquifers within our service areas; some systems purchase all of their supply from wholesale suppliers; some systems obtain their supply from treating surface water sources; and other systems obtain their supply from a combination of wells, surface water sources and/or wholesale suppliers. The cost of obtaining these supplies varies, and overall costs can be impacted as use within a system varies from time to time. As a result, our cost of providing, distributing and treating water for our customers’ use can vary significantly.
Furthermore, imported water wholesalers, such as MWD, may not always have an adequate supply of water to sell to us. Wholesale water suppliers may increase their prices for water delivered to us based on factors that affect their operating costs. Purchased water rate increases are beyond our control.
Since 2008, GSWC has implemented a modified supply cost balancing account, the MCBA, to track and recover costs from supply mix changes and rate changes by wholesale suppliers, as authorized by the CPUC. However, cash flows from operations can be significantly affected since much of the balance we recognize in the MCBA is collected from or refunded to customers primarily through surcharges or surcredits, respectively, generally over twelve- to twenty-four-months. Beginning 2025, the MCBA will be discontinued and no longer be available to recover costs from supply mix changes and rate changes by wholesale suppliers. However, as SB 1469 was passed in 2022, GSWC and other Class A water utilities are allowed to continue to request the MCBA in future general rate case applications. GSWC has requested for the continued use of a full supply cost balancing account, similar to the MCBA, in its next general rate case application filed in August 2023. GSWC’s request to continue using a full supply cost balancing account in its next general rate case will be subject to CPUC approval.
Our liquidity and earnings may be adversely affected by our conservation efforts
Our water utility business is heavily dependent upon revenue generated from rates charged to our customers based on the volume of water used. The rates we charge for water are regulated by the CPUC and may not be adequately adjusted to reflect changes in demand. Declining usage also negatively impacts our long-term operating revenues if we are unable to secure rate increases or if growth in the customer base does not occur to the extent necessary to offset per-customer usage decline. 
Conservation by all customer classes at GSWC is a top priority.  However, customer conservation will result in lower volumes of water sold.  We may experience a decline in per-customer water usage due to factors such as:
conservation efforts to reduce costs;
drought conditions resulting in additional water conservation;
the use of more efficient household fixtures and appliances by customers to save water;
voluntary or mandatory changes in landscaping and irrigation patterns;
recycling of water by our customers; and
mandated water-use restrictions.
These types of changes may result in permanent decreases in demand even if our water supplies are sufficient to meet higher levels of demand after a drought ends.  In addition, governmental restrictions on water usage during drought conditions may result in a decreased demand for water, even if our sources of supply are sufficient to serve our customers during such drought conditions. California has established long-term indoor and outdoor water use standards to address the impact of climate change on California water resources and mandate water conservation requirements on all Californians. These standards will require all urban water retailers to meet certain water use standards on a system-by-system basis.
Since 2008, we have implemented the CPUC-approved WRAM at GSWC, which has the effect of stabilizing revenues at the adopted level thereby reducing the potential adverse earnings impact of our customers’ conservation efforts.  However, cash flows from operations can be significantly affected since much of the balance we recognize in the WRAM account is collected from or refunded to customers generally over twelve-, eighteen- or twenty-four-month periods.

19

Electric Segment Operations Risks
Our electric segment operates in a high wildfire risk area
Drought conditions in recent years and historically as well as shifting weather patterns in California as a result of climate change have created dry vegetation and higher risks of wildfire in California. Severe wildfires can pose a material risk for BVES in the event of the occurrence of a wildfire. There is no assurance that losses incurred through a wildfire event will not exceed the coverage limits of BVES’s insurance coverage. Any losses not fully insured by BVES’s insurance coverage may not be approved by the CPUC for future cost recovery.
BVES is required to adopt and implement a wildfire mitigation plan that is submitted periodically to, and subject to the approval of, the CPUC. In December 2023, the CPUC ratified BVES’s 2023-2025 wildfire mitigation plan which was also approved by the Office of Energy Infrastructure Safety in the fourth quarter of 2023. The recovery of costs incurred to implement this plan are not approved by the CPUC at the time of its approval of the wildfire mitigation plan but will only be approved by the CPUC in a subsequent general rate case. We anticipate that the costs of capital improvements necessary to implement this program will increase substantially.
BVES is also required to implement a public safety power shut-off program during high wildfire threat conditions. The CPUC may assess penalties if BVES shuts-down power to its customers and the CPUC determines that the shutdown was not reasonably necessary in the circumstances. As a result of shutting-down power to its customers, BVES's cash flows may be negatively affected due to a reduction in electricity sold.  However, BVES has implemented a CPUC-approved revenue decoupling mechanism that mitigates the impact of customer usage fluctuations to earnings.
BVES has also obtained a safety certificate, which must be renewed annually by the CPUC. Even with an approved safety certificate, BVES could be found liable for deaths, injuries and property damage if BVES’s electric equipment is found to have caused a catastrophic wildfire and it is determined by the CPUC that BVES did not act reasonably in operating and maintaining its equipment. BVES may not be able to recover the costs of all liabilities from such a wildfire from insurance or from ratepayers.
Our liquidity may be adversely affected by increases in electricity and natural gas prices in California
We purchase most of the electric energy sold to customers in our electric customer service area from others under purchased power contracts.  In addition to purchased power contracts, we purchase additional energy from the spot market to meet peak demand and following the expiration of purchased power contracts if there are delays in obtaining CPUC authorization of new purchase power contracts.  We may sell surplus power to the spot market during times of reduced energy demand.  As a result, our cash flow may be affected by increases in spot market prices of electricity purchased and decreases in spot market prices for electricity sold.  However, BVES has implemented a CPUC-approved supply-cost balancing account to mitigate the impact to earnings from fluctuations in supply costs. 
Unexpected generator downtime at our 8.4 megawatt natural-gas-fueled generator or a failure to perform by any of the counterparties to our electric and natural gas purchase contracts could further increase our exposure to fluctuating natural gas and electricity prices. 
Changes in electricity prices also affect the unrealized gains and losses on our block forward purchased power contracts that qualify as derivative instruments since we adjust the asset or liability on these contracts to reflect the fair market value of the contracts at the end of each month.  The CPUC has authorized us to establish a memorandum account to track the changes in the fair market value of our purchased power contracts.  As a result, unrealized gains and losses on these types of purchased power contracts do not impact earnings. 
We may not be able to procure sufficient renewable energy resources to comply with CPUC rules
We are required to procure a portion of our electricity for BVES from renewable energy resources to meet the CPUC’s renewable procurement requirements.  We have agreements with third parties to purchase renewable energy credits, which enables us to meet these requirements through 2024.  The next RPS compliance period is years 2025-2027. In the event that the third parties fail to perform in accordance with the terms of the agreement, we may not be able to obtain sufficient resources to meet the renewable procurement requirements. We may be subject to fines and penalties by the CPUC if it determines that we are not in compliance with the renewable resource procurement rules. 
Utility Privatization Contract Risks 
Our contracts for servicing military bases create certain risks that are different from our public utility operations
We have entered into contracts to provide water and/or wastewater services at military bases primarily pursuant to initial 50-year, firm-fixed-priced contracts, additional firm-fixed-price contracts and task order contracts, subject to termination, in whole or in part, for the convenience of the U.S. government. We also from time to time enter into contracts with third party
20

prime contractors on military bases. The U.S. government may stop work under the terms of one or more of these contracts, not provide additional task orders, delay performance of our obligations under the contracts, or modify the contracts at its convenience. 
Our contract pricing is based on a number of assumptions, including assumptions about the condition and amount of infrastructure at the military bases, prices and availability of labor, equipment and materials. We may be unable to recover all costs if any of these assumptions are inaccurate or if all costs incurred in connection with performing the work were not considered. Our contracts are also subject to annual economic price adjustments, adjustments as task orders are issued or other changes permitted by the terms of the contracts. Prices are also subject to equitable adjustment based upon changes in circumstances, laws or regulations and service-requirement changes to the extent provided in each of the contracts.
We are required to record all costs under our military base contracts as they are incurred. As a result, we may record losses associated with unanticipated conditions that result in higher than estimated costs, higher than anticipated infrastructure levels, and required emergency work at the time such expenses occur.  We recognize additional revenue for such work as, and to the extent that, our economic price adjustments and/or requests for equitable adjustments are approved.  Delays in obtaining approval of economic price adjustments and/or equitable adjustments can negatively impact our results of operations and cash flows.
Certain payments under these contracts are subject to appropriations by Congress. We may experience delays in receiving payment or delays in price adjustments due to canceled or delayed appropriations specific to our projects, reductions in government spending for the military generally or military-base operations specifically or other delays in Congress approving appropriations. Appropriations and the timing of payment may be influenced by, among other things, the state of the economy, competing political priorities, budget constraints, the timing and amount of tax receipts, government shutdowns and the overall level of government expenditures.
We may experience delays in receiving payments for services rendered in military bases due to delays in Congressional appropriation bills or other factors affecting the available funds to pay contractors.
Our contracts for the construction of infrastructure improvements on military bases create risks that are different from those of our public utility operations and maintenance activities
We have entered into contract modifications with the U.S. government and agreements with third parties for the construction of new water and/or wastewater infrastructure at the military bases on which we operate. Most of these contracts are firm-fixed-price contracts. Under firm-fixed-price contracts, we will benefit from cost savings, but are generally unable (except for changes in scope or circumstances approved by the U.S. government or third party) to recover any cost overruns to the approved contract price. Under most circumstances, the U.S. government or third party has approved increased-cost change orders due to changes in scope of work performed.
We generally recognize contract revenues from these types of contracts over time using input methods to measure progress towards satisfying a performance obligation. The measurement of performance over time is based on cost incurred relative to total estimated costs, or the physical completion of the construction projects. The earnings or losses recognized on individual contracts are based on periodic estimates of contract revenues, costs and profitability as these construction projects progress.
We establish prices for these types of firm-fixed-price contracts and the overall contract taken as a whole, based, in part, on cost estimates that are subject to a number of assumptions, including assumptions regarding future economic conditions. If these estimates prove inaccurate or circumstances change, cost overruns could have a material adverse effect on our contracted business operations and results of operations.
We may be adversely affected by disputes with the U.S. government regarding our performance of contracted services on military bases
Entering into contracts with the U.S. government subjects us to a number of operational and compliance risks over our performance of contracted services on military bases. We are periodically audited or reviewed by the Defense Contract Auditing Agency (“DCAA”), the Defense Contract Management Agency (“DCMA”), the Department of Labor, the Defense Logistics Agency Energy, and/or the Department of Justice for compliance with federal acquisition regulations, cost-accounting standards and other laws, regulations and standards that are not applicable to the operations of GSWC or BVES. During the course of these audits/reviews, the U.S. government may question our incurred project costs or the manner in which we have accounted for such costs and recommend to our U.S. government administrative contracting officer that such costs be disallowed. If there is a dispute with the U.S. government regarding performance under these contracts or the amounts owed to us, the U.S. government may delay, reject or withhold payment, delay price adjustments or assert its right to offset damages against amounts owed to us.  If we are unable to collect amounts owed to us on a timely basis or the U.S. government asserts its offset rights, profits and cash flows could be adversely affected.
21

Moreover, we are subject to potential government investigations of our business practices and compliance with government procurement statutes and security regulations. If we are charged with wrongdoing as a result of an investigation, or if we fail to comply with the terms of one or more of our U.S. government contracts, other agreements with the U.S. government or U.S. government statutes and regulations, our existing contracts could be terminated or we could be suspended or barred from future U.S. government contracts for a period of time, and be subject to possible damages, fines and penalties as well as damage to our reputation in the water and wastewater industry, which could have a material adverse effect on our results of operations and cash flows.
We depend, to some extent, upon subcontractors to assist us in the performance of contracted services on military bases
We rely, to some extent, on subcontractors to assist us in the operation and maintenance of the water and wastewater systems at military bases. The failure of any of these subcontractors to perform services for us in accordance with the terms of our contracts with the U.S. government could result in the termination of our contract to provide water and/or wastewater services at the affected base(s), and/or a loss of revenues, or increases in costs, to correct a subcontractor’s performance failures.
We are also required to make a good faith effort to achieve our small business subcontracting plan goals pursuant to U.S. government regulations. If we fail to use good faith efforts to meet these goals, the U.S. government may assess damages against us at the end of the contract. The U.S. government has the right to offset claimed damages against any amounts owed to us.
We also rely on third-party manufacturers, as well as third-party subcontractors, to complete our construction projects. To the extent that we cannot engage subcontractors or acquire equipment or materials, our ability to complete a project in a timely fashion or at a profit may be impaired. If the amount of costs we incur for these projects exceeds the amount we have estimated in our bids, we could experience reduced profits or losses in the performance of these contracts. In addition, if a subcontractor or manufacturer is unable to deliver its services, equipment or materials according to the negotiated terms for any reason, including the deterioration of its financial condition, we may be required to purchase the services, equipment or materials from another source at a higher price. This may reduce the profit to be realized or result in a loss on a project for which the services, equipment or materials were needed.
If subcontractors fail to perform services to be provided to us or fail to provide us with the proper equipment or materials, we may be penalized for their failure to perform; however, our contracts with subcontractors include certain protective provisions, which may include the assessment of liquidated damages.  We also mitigate these risks by requiring our subcontractors, as appropriate, to obtain performance bonds and to compensate us for any penalties we may be required to pay as a result of their failure to perform. 
We may not be fully reimbursed for all of our construction costs or may only receive payment on a delayed basis
Unlike GSWC and BVES, who recover their capital investments from customers over the life of the assets through annual depreciation and earn a return on such investments through the ratemaking process, ASUS is reimbursed for the cost of ongoing renewal and replacement construction projects plus a profit through the collection of a monthly cash stream under each of the 50-year contracts with the U.S. government. ASUS also receives funding from the U.S. government for initial and other new construction projects at the military bases it serves that, in many cases, are outside the scope of contracts with the U.S. government and are granted through firm-fixed contract modifications. ASUS’s subsidiaries expect to continue incurring significant construction costs. Reimbursement by the U.S government for these construction costs may not be fully reimbursable if the costs incurred are greater than the amounts estimated and approved by the U.S. government, or payments may be delayed awaiting government funding and processing, which could significantly affect our cash flows from operations.
Other Contracted Services Segment Risks
Risks associated with wastewater systems are different from those of our water distribution operations
The wastewater-collection-system operations of our ASUS subsidiaries providing wastewater services on military bases are subject to substantial regulation and involve significant environmental risks. If collection, treatment or disposal systems fail, overflow or do not operate properly, untreated wastewater or other contaminants could spill onto nearby properties or into nearby streams and rivers, causing damage to persons or property, injury to aquatic life and economic damages. The cost of addressing such damages may not be recoverable. This risk is most acute during periods of substantial rainfall or flooding, which are common causes of sewer overflows and system failures. These risks may be increased as a result of an increase in the duration and frequency of storms due to climate change. Liabilities resulting from such damage could adversely and materially affect our business, results of operations and financial condition. In the event that we are deemed liable for any damage caused by overflows, our losses may not be recoverable under our contracts with the U.S. government or covered by insurance policies. We may also find it difficult to secure insurance for this business in the future at acceptable rates.
22

We may have responsibility for water quality at the military bases we serve
While it is the responsibility of the U.S. government to provide the source of water supply to meet ASUS’s subsidiaries water distribution system requirements under their contracts with the U.S. government, the ASUS’s subsidiaries, as the water system permit holders for most of the bases they serve, are responsible for ensuring the continued compliance of the provided source of supply with all federal, state and local regulations. We believe, however, that the terms of the contracts between ASUS’s subsidiaries and the U.S. government provide the opportunity for us to recover costs incurred in the treatment or remediation of any quality issue that arises from the source of water supply.
Our earnings may be affected, to some extent, by weather during different seasons
Seasonal weather conditions, such as hurricanes, heavy rainfall or significant winter storms, occasionally cause temporary office closures and/or result in temporary halts to construction activity at military bases.  To the extent that our construction activities are impeded by these events, we will experience a delay in recognizing revenues from these construction projects.
We continue to incur costs associated with the expansion of our military base contract activities
We continue to incur additional costs in connection with the expansion of our contract operations associated with the preparation of bids for new contract operations on prospective and existing military bases. Our ability to recover these costs and to earn a profit on our contract operations will depend upon the extent to which we are successful in obtaining new contracts and recovering these costs and other costs from new contract revenues.
We face intense competition for new military base contracts
An important part of our growth strategy is the expansion of our contracted services business through new contract awards to serve additional military bases for the U.S. government. ASUS competes with other investor-owned utilities, municipalities, and other entities for these contracts.
Additionally, the U.S. government periodically reviews the cost and overall effectiveness of the military privatization program. Should these reviews prompt a decision to curtail or eliminate the issuance of solicitations for future military base contract awards, the potential for growth in this segment could be negatively impacted.
Information Technology Risk Factors
We must successfully maintain and/or upgrade our information technology systems as we are increasingly dependent on the continuous and reliable operation of these systems
We rely on various information technology systems to manage our operations. Such systems require periodic modifications, upgrades and/or replacement, which subject us to inherent costs and risks, including potential disruption of our internal control structure, substantial capital expenditures, additional administrative and operating expenses, retention of sufficiently skilled personnel to implement and operate the new systems, and other risks and costs of delays or difficulties in transitioning to new systems or of integrating new systems into our current systems. In addition, the difficulties with implementing new technology systems may cause disruptions in our business operations and have an adverse effect on our business and operations, if not anticipated and appropriately mitigated.
We rely on our computer, information and communications technology systems in connection with the operation of our business, especially with respect to customer service and billing, accounting and the monitoring and operation of our treatment, storage and pumping facilities.  Our computer and communications systems and operations could be damaged or interrupted by weather, natural disasters, telecommunications failures, cyberattacks or acts of war or terrorism or similar events or disruptions.  Any of these or other events could cause system interruption, delays and loss of critical data, delay or prevent operations or delay in notification of system failures or emergencies and adversely affect our financial results and could result in liabilities not covered by insurance or recoverable in rates for misappropriation of assets or sensitive information, corruption of data and the impact of operational disruptions on our customers.
Cybersecurity incidents could disrupt our internal operations, and any such disruption could increase our expenses, damage our reputation and adversely affect our stock price
There continues to be an increasing number of cyberattacks on companies around the world, which have caused operational failures or compromised sensitive corporate or customer data.  These attacks have occurred over the internet, through malware, viruses or attachments to e-mails, or through persons inside the organization or with access to systems inside the organization and may be heightened with the increased use and prevalence of artificial intelligence.  Although we do not believe that our systems are at a materially greater risk of cybersecurity attacks than other similar organizations, our information technology systems remain at risk to damage or interruption from the following among other types of cybersecurity risks:
Supply Chain Attacks;
23

Malicious Software;
Credential Loss or Theft;
Supervisory Control and Data Acquisition System Takeover;
Equipment Theft;
Ransomware;
Actions of Employees (Intentional or Accidental);
Phishing Attacks;
Identity-Based Attacks; and
Denial-of-Service Attacks.
We believe a breach of customer personally identifiable information is one of the most significant financial risks to us as the costs incurred could exceed the amount of our cybersecurity insurance coverage and these costs may increase if we fail to comply with federal and state privacy regulations such as the California Consumer Privacy Act (“CCPA”), a state statute that became effective January 1, 2020, which enhances the privacy rights and consumer protections for California residents. Among other things, the CCPA establishes statutory damages for victims of data security breaches, and provides additional rights for consumers to obtain their data from any business that has their personally identifying information. Any actual or perceived failure to comply with the CCPA could lead to investigations, claims, and proceedings by governmental entities and private parties, damages for breach, and other significant costs, penalties, and other liabilities, as well as harm to our reputation.
We have implemented security measures and will continue to devote significant resources to improve our security posture to address any security vulnerabilities in an effort to prevent cyberattacks.  Despite our efforts, due to the evolving nature of cyberattacks and vulnerabilities, we cannot be assured that a cyberattack will not cause water, wastewater or electric system problems, disrupt service to our customers, compromise important data or systems or result in unintended release of customer or employee information.  Moreover, if a security breach affects our systems or results in the unauthorized release of sensitive data, our reputation could be materially damaged. We may not discover any security breach and loss of information for a significant period of time after the security breach. We could also be exposed to a risk of loss or litigation and possible liability. Pursuant to U.S. government regulations regarding cybersecurity of government contractors, we might be subject to fines, penalties or other actions, including debarment, with respect to current contracts or with respect to future contract opportunities.
We maintain cybersecurity insurance to provide coverage for a portion of the losses and damages that may result from a security breach, but such insurance is subject to a number of exclusions and may not cover the total loss caused by a breach. Other costs associated with cyber incidents may not be covered by insurance or recoverable in rates. The market for cybersecurity insurance continues to evolve and may affect the future availability of cyber insurance at reasonable rates.
Human Capital Management Risks
Failure to attract, retain, train, motivate, develop and transition key employees could adversely affect our business
In order to be successful, we must attract, retain, train, motivate, and develop key employees, including those in managerial, operational, financial, regulatory, business-development and information-technology support positions. Our regulated business and contracted services operations are complex. Attracting and retaining high quality staff allows us to minimize the cost of providing quality service. In order to attract and retain key employees in a competitive marketplace, we must provide a competitive compensation package and be able to effectively recruit qualified candidates. This is especially challenging for us since approximately 30% of our employees will be eligible to retire in the next five years. The failure to successfully hire key employees or the loss of a material number of key employees could have a significant impact on the quality of our operations in the short term. Further, changes in our management team may be disruptive to our business, and any failure to successfully transition key new hires or promoted employees could adversely affect our business and results of operations.
Failure of our employees to maintain required certifications and licenses or to complete required compliance training could adversely impact our ability to operate and maintain our utility systems and provide services to our customers
Many of our employees must have specialized certifications and licenses in order to perform their duties and periodically complete required compliance training. Our business could be adversely affected if our employees do not maintain their certifications and licenses or we are unable to attract employees with the necessary certifications and licenses.

24

Other Business Risk Factors
The accuracy of our judgments and estimates about financial and accounting matters will impact our operating results and financial condition
The quality and accuracy of estimates and judgments used have an impact on our operating results and financial condition. If our estimates are not accurate, we will be required to make an adjustment in a future period. We make certain estimates and judgments in preparing our financial statements regarding, among others:
timing of recovering WRAM, MCBA and BRRAM regulatory assets;
amounts to set aside for uncollectible accounts receivable, inventory obsolescence and uninsured losses;
our legal exposure and the appropriate accrual for claims, including general liability and workers’ compensation claims;
future costs and assumptions for pensions and other post-retirement benefits;
regulatory recovery of deferred items; and
possible tax uncertainties.
Market conditions and demographic changes may adversely impact the value of our benefit plan assets and liabilities
Market factors can affect assumptions we use in determining funding requirements with respect to our pension and other post-retirement benefit plans. For example, a relatively modest change in our assumptions regarding discount rates can materially affect our calculation of funding requirements. To the extent that market data compels us to reduce the discount rate used in our assumptions, our benefit obligations could materially increase, which could adversely affect our financial position and cash flows. Further, changes in demographics, such as increases in life expectancy assumptions may also increase the funding requirements of our obligations related to our pension and other post-retirement benefit plans.
Market conditions also affect the values of the assets that are held in trusts to satisfy significant future obligations under our pension and other post-retirement benefit plans. These assets are subject to market fluctuations, which may cause investment returns to fall below our projected rates of return. A decline in the market value of our pension and other post-retirement benefit plan assets will increase the funding requirements under these plans if future returns on these assets are insufficient to offset the decline in value. Future increases in pension and other post-retirement costs as a result of the reduced value of plan assets may not be fully recoverable in rates, and our results of operations and financial position could be negatively affected. These risks are mitigated to some extent by the two-way pension balancing accounts authorized by the CPUC, which permits us to track differences between forecasted annual pension expense adopted in water and electric rates and actual pension expenses for future recovery or refund to customers.
Our business requires significant capital expenditures and our inability to access the capital or financial markets could affect our ability to meet our liquidity needs and long-term commitments, which could adversely impact our operations and financial results
The utility business is capital intensive. We spend significant sums of money for additions to, or replacement of, our property, plant and equipment at our water and electric regulated utilities. We obtain funds for these capital projects from operations, contributions by developers and others, and refundable advances from developers (which are repaid over a period of time). We periodically borrow money or issue equity or debt securities for these purposes. In addition, we have revolving credit facilities that are used for capital expenditure programs with our utilities and operations. We cannot provide assurance that these sources will continue to be adequate or that the cost of funds will remain at levels permitting us to earn a reasonable rate of return.
As our capital investment program continues to increase, coupled with the elimination of bonus depreciation for regulated utilities due to tax reform, we will need access to external financing more often, which increases our exposure to market conditions. In addition to cash flow from operations, we rely primarily on our credit facilities and long-term debt to satisfy our liquidity needs. We also may from time to time issue Common Shares to support our capital investment program. Changes in market conditions, including events beyond our control such as recent increases to interest rates, could limit our ability to access capital on terms favorable to us or at all, including obtaining credit facilities with the borrowing capacities needed as well as issuing equity or debt securities. As a result, the amount of capital available may not be sufficient to meet all our liquidity needs at a reasonable cost at all of our subsidiaries.
Payment of our debt may be accelerated if we fail to comply with restrictive covenants in our debt agreements
Our failure to comply with restrictive covenants in our debt agreements could result in an event of default.  If the default is not cured or waived, we may be required to repay or refinance the debt before it becomes due.  Even if we are able to obtain waivers from our creditors, we may only be able to do so on unfavorable terms. Our ability to comply with the financial
25

covenants in our debt agreements may be adversely affected by delays in obtaining CPUC approval of our general rate case filings.
The price of our Common Shares may be volatile and may be affected by market conditions beyond our control
The trading price of our Common Shares may fluctuate in the future because of the volatility of the stock market and a variety of other factors, many of which are beyond our control. Factors that could cause fluctuations in the trading price of our Common Shares include: changes in interest rates; regulatory developments, decisions and delays; general economic conditions and trends; price and volume fluctuations in the overall stock market; actual or anticipated changes or fluctuations in our results of operations; actual or anticipated changes in the expectations of investors or securities analysts; actual or anticipated developments in other utilities’ businesses or the competitive landscape generally; litigation involving us or our industry; major catastrophic events, or sales of large blocks of our stock.
AWR is a holding company that depends on cash flow from its subsidiaries to meet its financial obligations and to pay dividends on its Common Shares
As a holding company, our subsidiaries conduct substantially all operations and our only significant assets are investments in our subsidiaries. This means that we are dependent on distributions of funds from our subsidiaries to meet our debt service obligations and to pay dividends on our Common Shares. 
Our subsidiaries are separate and distinct legal entities and generally have no obligation to pay any amounts due on AWR’s credit facility.  Our subsidiaries only pay dividends if and when declared by the respective subsidiary board.  Moreover, GSWC and BVES are obligated to give first priority to their own capital requirements and to maintain capital structures consistent with those determined to be reasonable by the CPUC in its most recent decisions on capital structure for both GSWC and BVES in order for customers to not be adversely affected by the holding company structure.  Furthermore, our right to receive cash or other assets in the unlikely event of liquidation or reorganization of any of our subsidiaries is generally subject to the prior claims of creditors of that subsidiary.  If we are unable to obtain funds from a subsidiary in a timely manner, we may be unable to meet our financial obligations, make additional investments or pay dividends.
The final determination of our income tax liability may be materially different from our income tax provision
Significant judgment is required in determining our provision for income taxes. Our calculation of the provision for income taxes is subject to our interpretation of applicable tax laws in the jurisdictions in which we file. In addition, our income tax returns are subject to periodic examination by the Internal Revenue Service and other taxing authorities.
Although we believe our income tax estimates are appropriate, there is no assurance that the final determination of our current taxes payable will not be materially different, either higher or lower, from the amounts reflected in our financial statements. In the event we are assessed additional income taxes, our financial condition and cash flows could be adversely affected.
Our operations are geographically concentrated in California
Although we operate water and wastewater facilities in a number of states under our contracted services business, our regulated water and electric operations are concentrated in California, particularly Southern California.  As a result, our financial results are largely subject to political, water supply, labor, utility cost and regulatory risks, economic conditions, natural disasters (which may increase as a result of climate change) and other risks affecting California. Our financial results may also be impacted by population growth or decline in our service areas.
Item 1B. Unresolved Staff Comments
None.
Item 1C. Cybersecurity
Cyberattacks represent a threat to water, wastewater and electric utility systems. There have also been increasing threats to the information that companies maintain that have resulted in unauthorized disclosure of private customer, employee, director and corporate financial information.
Threats can come from many sources, including, but not limited to, ransomware, malicious software, credential loss or theft, supervisory control and data acquisition (“SCADA”) system takeover, equipment theft, supply chain attacks, phishing attacks, identity-based attacks, denial-of-service attacks or the actions of employees either intentional or accidental. Ransomware whereby hackers take control of a company’s systems and/or data has been identified as the most significant threat to Registrant’s critical infrastructure systems and is getting harder to detect and encrypted files are becoming harder to recover. Threat actors using ransomware have also increased their use of data, not only for direct ransom and data destruction, but also to release the data to the public. Registrant believes a breach of customer personally identifiable information is one of the most significant financial risks to it as the costs incurred could exceed the amount of its cybersecurity insurance coverage.
26

Nevertheless, in order to continue meeting Registrant’s technological business needs and as more vendors build solutions in the cloud, Registrant expects to further expand its use of cloud-computing environments. As such, Registrant expects risks from cyberattacks and data breaches to increase due to the growth of its technological footprint in the cloud environments.
Registrant expects to continue to increase its investment in information technology to monitor and address cyber threats and attempted cyber-attacks, and to improve its posture in addressing security vulnerabilities. In addition, Registrant has dedicated employees with cybersecurity technical expertise and also leverages outside cybersecurity firms. Registrant has adopted multi-layered safeguards and educational measures to protect its operations, assets and digital information. Registrant conducts mandatory quarterly cybersecurity training for all employees. Registrant also conducts specialized training for ASUS employees annually on protecting certain types of information relating to the work ASUS and its subsidiaries do with the U.S. government to comply with U.S. government contracting requirements. In addition, Registrant conducts periodic and unannounced phishing tests with all employees and vulnerability assessment and penetration tests.
Registrant has adopted a cybersecurity incident response policy, plan and set of specific instructions, which are annually reviewed by the IT cybersecurity team members. Registrant is also taking actions intended to strengthen its cybersecurity posture and to improve its cybersecurity incident response plans and operating procedures. Despite the actions Registrant has taken and is taking and the fact that, to its knowledge, it has yet to experience a cybersecurity incident, there can be no assurance that Registrant will not experience a cybersecurity incident.
Risk management, oversight and response
Cyber risk management is an ongoing iterative process that requires continuous identification, assessment and management of possible cyber threats and has become a vital part of Registrant’s overall risk management efforts. Registrant’s cybersecurity team assesses ongoing cybersecurity threats and vulnerabilities to prioritize and implement mitigation factors and defense to help contain and combat identified risks.
To ensure threat and vulnerability information is up-to-date, the cybersecurity team subscribes to multiple national and state-level threat and vulnerability information disclosure services, both general-purpose and industry-specific in nature. Updates from these sources include general information delivered on a daily basis and more threat-specific information delivered as required. Tools are in place within Registrant’s environment to monitor for anomalous behavior and provide alerting and, in some cases, automated responses to threats. Registrant’s cybersecurity team meets regularly with product vendors for these tools to ensure optimal configurations are in place to protect its environment.
To determine the risk to Registrant’s systems, it engages in a continuous vulnerability management lifecycle process to identify and remediate vulnerable systems and system configurations. In this regard, Registrant leverages the National Institute of Standards and Technologies cybersecurity framework. To supplement Registrant’s internal process, the cybersecurity team regularly contracts consultants to assess system configurations, both passively through exercises such as configuration review and actively through penetration testing, and response procedures, such as tabletop exercises, to identify areas for improvement. In addition, Registrant supplements its day-to-day operations with around the clock identification, assessment and mitigation of cyber risks with third-party security services as well. Registrant is working on implementing across AWR and its subsidiaries a comprehensive, risk-based approach to identify and oversee cybersecurity risks presented by third parties, including vendors, service providers and other external users of its systems and data, as well as the systems of third parties that could adversely impact Registrant’s business in the event of a cybersecurity incident affecting those third-party systems.
Cybersecurity updates are provided periodically to Registrant’s senior management, including its CEO, CFO and senior vice presidents of Registrant’s operations, and to the senior management of Registrant’s subsidiaries. Cybersecurity risk management extends beyond Registrant’s and its subsidiaries’ senior management teams. Registrant’s Board of Directors (“the Board”) oversees enterprise risk management, or ERM, performed under the direction of Registrant’s senior management team. Cybersecurity updates, including recent findings, changes to processes or personnel changes, are provided to the ERM liaison to the Board, who is a member of the Board, and to the full Board on a quarterly basis or more frequently if needed. Cybersecurity is one component of an overall ERM framework that involves Registrant’s Board. The Board satisfies its oversight responsibility by obtaining information from the ERM liaison and senior management of Registrant, with input from the senior management of Registrant’s subsidiaries as necessary. On a quarterly basis, Registrant’s senior management will discuss the implementation status of plans to mitigate cybersecurity risks with the ERM liaison. The ERM liaison and Registrant’s senior management will then provide a report to the full Board regarding the critical cybersecurity risks discussed, mitigation plans and implementation of the ERM program that addresses cybersecurity risks.
In addition, Registrant’s plans require members of its senior management, such as its CEO and CFO, as well as members of management from its, and its subsidiaries’, Operations, Information Technology, Human Capital Management, Accounting and Legal teams participate in Registrant’s Cybersecurity Incident Response Team (“CIRT”) to be kept current on all aspects related to a cyber-attack, if a cybersecurity incident were to occur.
27

Responses to cyber-attacks are fast-moving and dynamic and would require an assessment of actual or potential damage performed by Registrant’s cybersecurity team. If a cyber-attack were to occur, continuous engagement, communication and collaboration between Registrant’s cybersecurity team and members of its CIRT as well as third parties would likely be necessary in order to gather accurate and complete information, perform a comprehensive evaluation and assessment of the cyber-attack, manage and contain the cybersecurity threat, and develop and execute a remediation and recovery plan. Members of its CIRT team would work together to determine whether a cybersecurity breach is material and required to be reported to the Board and publicly under applicable law.
To ensure that members of Registrant’s Board are informed of material cyber-attacks, Registrant’s CFO and IT Director have been designated as key members of management that will provide current updates to Registrant’s ERM liaison and the Board. The communication will include but not be limited to, the nature and status of the cyber-attack and Registrant’s plan to contain and mitigate the cyber threat and ultimately the remediation and recovery plan to return to “business as usual” state. Registrant’s CFO has over 15 years overseeing the Company’s risk management area. Registrant’s IT Director has over 25 years in Information Technology designing, implementing and supporting various cybersecurity and technical solutions, along with ensuring compliance with multiple cybersecurity regulations.
Cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected and are not reasonably likely to materially affect Registrant, including its business strategy, results of operations or financial condition. However, the risk of cybersecurity threats could be significant if the cyber-attack disrupts Registrant’s critical operations, service or financial systems. See “Information Technology Risk Factors” under Item 1A. In addition, any unauthorized access to sensitive information or data breaches could be detrimental to Registrant’s operations, critical corporate information and reputation and relationships with its customers, vendors, employees, directors and could negatively affect the future of contract awards at ASUS and could result in a termination of one or more of its existing contracts or the assessment of penalties. The cost of responding to a cyber-attack could be significant depending on the severity of the cyber-attack and could go beyond financial costs as operations and services provided by Registrant could be delayed and coordinated resources in response could be significant. Registrant could also be assessed penalties if it is determined that applicable data privacy laws have been violated.
28

Item 2. Properties
Water Properties
As of December 31, 2023, GSWC’s physical properties consisted of water transmission and distribution systems, which included 2,878 miles of pipeline together with services, meters and fire hydrants, and approximately 450 parcels of land generally less than 1 acre each, on which are located wells, pumping plants, reservoirs and other water utility facilities, including five surface water treatment plants. GSWC also has franchises, easements and other rights of way for the purpose of accessing wells and tanks and constructing and using pipes and appurtenances for transmitting and distributing water. All of GSWC’s properties are located in California.
As of December 31, 2023, GSWC owned 239 wells, of which 167 are active with an aggregate production capacity of approximately 164 million gallons per day. GSWC has 59 connections to the water distribution facilities of the MWD, and other municipal water agencies. GSWC’s storage reservoirs and tanks have an aggregate capacity of approximately 119 million gallons. GSWC owns no dams. The following table provides, in greater detail, information regarding the water utility plant of GSWC: 
PumpsDistribution FacilitiesReservoirs
WellBoosterMains*ServicesHydrantsTanksCapacity*
239 387 2,878 264,097 26,852 145 119 (1)

* Reservoir capacity is measured in millions of gallons. Mains are in miles.
(1)  GSWC has additional capacity in its Bay Point system, through an exclusive capacity right to use 4.4 million gallons per day from a treatment plant owned by Contra Costa Water District. GSWC also has additional reservoir capacity through an exclusive right-to-use all of one 8 million gallon reservoir, one-half of another 8 million gallon reservoir, and one-half of a treatment plant’s capacity, all owned by Three Valleys Municipal Water District.
Electric Properties
BVES’s properties are located in the Big Bear area of San Bernardino County, California. As of December 31, 2023, BVES owned and operated approximately 87.8 miles of overhead 34.5 kilovolt (kv) sub-transmission lines (17.43 circuit miles are insulated), 6.49 miles of underground 34.5 kv sub-transmission lines, 493.41 miles of overhead 4.16 kv or 2.4 kv distribution lines (36.2 circuit miles are insulated), 114.22 miles of underground cable, 13 sub-stations and a natural gas-fueled 8.4 MW peaking generation facility. BVES also has franchises, easements and other rights of way for the purpose of constructing and using poles, wires and other appurtenances for transmitting electricity.
Adjudicated and Other Water Rights
GSWC owns groundwater and surface water rights in California.  Groundwater rights are further subject to classification as either adjudicated or unadjudicated rights.  Adjudicated rights have been established through comprehensive litigation in the courts, and the annual extraction quantities and use of the adjudicated rights are often subject to the provisions of the judgment for that particular groundwater basin. Additionally, as a result of the adjudication, many of these groundwater basins are managed by a watermaster that is charged with enforcing the provisions of the judgment, which may include determining operating safe yields based on the water supply conditions of the groundwater basin.
GSWC actively manages its adjudicated groundwater rights portfolio with the goal of optimizing and making this source of supply sustainable. Unadjudicated rights are subject to further regulation by the State Water Resources Control Board (“SWRCB”) and the California Department of Water Resources. Surface water rights are quantified and managed by the SWRCB, unless the surface water rights originated prior to 1914. As of December 31, 2023, GSWC had adjudicated groundwater rights and surface water rights of 69,409 and 11,335 acre-feet per year, respectively. GSWC also has a number of unadjudicated groundwater rights, which have not been quantified, but are typically measured by historical usage. 
Office Buildings
GSWC owns its general headquarters facility in San Dimas, California. GSWC also owns and leases customer service offices and office space throughout California. BVES owns office space in California. ASUS leases office facilities in Virginia and North Carolina, and owns service centers in Florida, Maryland, South Carolina, Virginia, Texas, North Carolina and Kansas.
Mortgage and Other Liens
As of December 31, 2023, neither AWR, GSWC, BVES, ASUS, nor any of its subsidiaries, had any mortgage debt or liens securing indebtedness outstanding. Under the terms of certain debt instruments, AWR, GSWC and BVES are prohibited from issuing any secured debt, without providing equal and ratable security to the holders of this existing debt.
29

Condemnation of Properties
The laws of the state of California provide for the acquisition of public utility property by governmental agencies through their power of eminent domain, also known as condemnation, where doing so constitutes a more necessary use. In addition, these laws provide that the owner of utility property (i) may contest whether the condemnation is actually necessary, and (ii) is entitled to receive the fair market value of its property if the property is ultimately taken.
Item 3. Legal Proceedings
Registrant is subject to ordinary routine litigation incidental to its business, some of which may include claims for compensatory and punitive damages. Management believes that rate recovery, proper insurance coverage and reserves are in place to insure against, among other things, property, general liability, employment, and workers’ compensation claims incurred in the ordinary course of business. Insurance coverage may not cover certain claims involving punitive damages.
Item 4. Mine Safety Disclosure
Not applicable.
30

PART II 
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Stock Performance Graph
The graph below compares the cumulative 5-Year total return of American States Water Company’s Common Shares with the cumulative total returns of the S&P 500 index and a customized peer group of seven water utilities that includes: American Water Works Company Inc., Essential Utilities Inc., Artesian Resources Corporation, California Water Service Group, Middlesex Water Co., York Water Co. and SJW Group. In accordance with SEC guidance, the returns of the seven utilities included in the peer group are weighted according to their respective market capitalizations.
An investment of $100 (with reinvestment of all dividends) is assumed to have been made in our Common Shares, and in the common stock in the index and in the peer group on December 31, 2018. Relative performance is tracked through December 31, 2023.
2023 Stock Performance Graph.jpg
 12/201812/201912/202012/202112/2022
12/2023
American States Water Company$100.00 $131.19 $122.32 $161.78 $147.31 $130.43 
S&P 500$100.00 $131.49 $155.68 $200.37 $164.08 $207.21 
Peer Group$100.00 $134.93 $157.90 $194.95 $166.87 $142.93 
The stock price performance included in this graph is not necessarily indicative of future stock price performance.
31

Market Information Relating to Common Shares
Common Shares of American States Water Company are traded on the New York Stock Exchange (“NYSE”) under the symbol “AWR.”
GSWC is a wholly-owned subsidiary of AWR. As a result, there is no public trading market in its common shares.
Approximate Number of Holders of Common Shares
As of February 20, 2024, there were 1,854 holders of record of the 36,988,764 outstanding Common Shares of American States Water Company. AWR owns all of the outstanding common shares of GSWC, BVES and ASUS. ASUS owns all of the outstanding stock of its subsidiaries.
Frequency and Amount of Any Dividends Declared and Dividend Restrictions
For the last two years, AWR has paid dividends on its Common Shares on or about March 1, June 1, September 1 and December 1. The following table lists the amounts of dividends paid on Common Shares of American States Water Company:
 20232022
First Quarter$0.3975 $0.3650 
Second Quarter$0.3975 $0.3650 
Third Quarter$0.4300 $0.3975 
Fourth Quarter$0.4300 $0.3975 
Total$1.6550 $1.5250 
AWR’s ability to pay dividends is subject to the requirement in its revolving credit facility to maintain compliance with all covenants described in Note 9 Bank Debt included in Part II, Item 8, in the Notes to Consolidated Financial Statements. GSWC is prohibited under the terms of its senior notes from paying dividends if, after giving effect to the dividend, its total indebtedness to capitalization ratio (as defined) would be more than 0.6667-to-1.  GSWC would have to issue additional debt of $716.3 million to invoke this covenant as of December 31, 2023.
Under California law, AWR, GSWC, BVES and ASUS are each permitted to distribute dividends to its shareholders and repurchase its shares so long as the Board of Directors determines, in good faith, that either: (i) the value of the corporation’s assets equals or exceeds the sum of its total liabilities immediately after the dividend, or (ii) its retained earnings equals or exceeds the amount of the distribution.  
Under the least restrictive of the California tests, approximately $776.1 million was available to pay dividends to AWR’s common shareholders and repurchase shares from AWR’s common shareholders at December 31, 2023. Approximately $703.8 million was available for GSWC to pay dividends to AWR at December 31, 2023, and approximately $72.3 million was available for BVES to pay dividends to AWR at December 31, 2023. BVES has a separate revolving credit facility, and its ability to pay dividends is subject to the requirement in the credit agreement to maintain compliance with all covenants described in Note 9 Bank Debt.
ASUS’s ability to pay dividends to AWR is dependent upon the ability of each of its subsidiaries to pay dividends to ASUS under applicable state law as well as ASUS’s ability to pay dividends under California law.
AWR paid $61.2 million in dividends to shareholders for the year ended December 31, 2023, as compared to $56.4 million for the year ended December 31, 2022. GSWC paid dividends of $55.4 million and $27.0 million to AWR in 2023 and 2022, respectively. BVES did not pay dividends to AWR in 2023 and paid dividends of $14.7 million to AWR in 2022. ASUS paid dividends of $16.0 million and $14.7 million to AWR in 2023 and 2022, respectively.
Other Information
The shareholders of AWR have approved the material features of all equity-compensation plans under which AWR directly issues equity securities. AWR did not issue any unregistered equity securities during 2023.
The following table provides information about AWR repurchases of its Common Shares during the fourth quarter of 2023:
32

PeriodTotal Number of Shares PurchasedAverage Price Paid per ShareTotal Number of
Shares Purchased as
Part of Publicly
Announced Plans or Programs (1)
Maximum Number
of Shares That May
Yet Be Purchased
under the Plans or Programs (1)(3)
October 1 - 31, 2023
468 $77.22 — — 
November 1 - 30, 2023
203 $80.11 — — 
December 1 - 31, 2023
3,086 $79.55 — — 
Total3,757 (2)$79.29 — 
(1)         None of the Common Shares were repurchased pursuant to any publicly announced stock repurchase program.
(2)    Of these amounts, zero Common Shares were acquired on the open market for employees pursuant to the 401(k) plan. The remainder of the shares were acquired on the open market for participants in the DRP.
(3)         Neither the 401(k) plan nor the Common Share Purchase and DRP contains a maximum number of Common Shares that may be purchased in the open market.
Item 6. (Reserved)
33

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis provides information on AWR’s consolidated operations and assets, and includes specific references to AWR’s individual segments and its subsidiaries (GSWC, BVES, and ASUS and its subsidiaries), and AWR (parent) where applicable.
Included in the following analysis is a discussion of Registrant’s operations in terms of earnings per share by business segment and AWR (parent), which equals each business segment’s earnings divided by AWR’s weighted average number of diluted Common Shares.  The gains and losses generated on the investments held to fund one of the Company’s retirement plans during the years ended December 31, 2023 and 2022 have been excluded when communicating the results to help facilitate comparisons of AWR’s performance from period to period. In addition, both the impact of retroactive rates related to the full year 2022 recorded during the year ended December 31, 2023 resulting from the final decision on the water general rate case, and the impact from the estimates of revenues subject to refund recorded in 2022 and changes to estimates recorded in 2023 following the receipt of a final cost of capital decision in June 2023 have been excluded when communicating AWR’s consolidated and water segment results for the years ended December 31, 2023 and 2022 to help facilitate comparisons of the Company’s performance from period to period.
All of the measures discussed above are derived from consolidated financial information of Registrant, but are not presented in our financial statements that are prepared in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). These items constitute “non-GAAP financial measures” under Securities and Exchange Commission rules, which supplement our GAAP disclosures but should not be considered as an alternative to the respective GAAP measures. Furthermore, the non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other registrants.
AWR uses earnings per share by business segment, a non-GAAP financial measure, as an important measure in evaluating its operating results and believes it provides investors with clarity surrounding the performance of its segments.  AWR reviews this measurement regularly and compares it to historical periods and to its operating budget. A reconciliation to AWR’s consolidated diluted earnings per share prepared in accordance with GAAP is included in the discussion under the section titled “Summary Results by Segment.
Overview
Factors affecting our financial performance are summarized under the Overview section in Item 1. Business and Item 1A. Risk Factors.
Water and Electric Segments:
GSWC’s and BVES’s revenues, operating income, and cash flows are earned primarily through delivering potable water to homes and businesses in California and electricity in the Big Bear area of San Bernardino County, California, respectively. Rates charged to GSWC and BVES customers are authorized by the CPUC. These rates are intended to allow recovery of operating costs and a reasonable rate of return on invested capital.  GSWC and BVES plan to continue seeking additional rate increases in future years from the CPUC to recover operating and supply costs, and receive reasonable returns on invested capital. Capital expenditures in future years at GSWC and BVES are expected to remain at substantially higher levels than depreciation expense. When necessary, GSWC and BVES may obtain funds from external sources in the capital markets and through bank borrowings.
General Rate Case Filings and Other Matters:
Water General Rate Case for the years 2025–2027:
On August 14, 2023, GSWC filed a general rate case application for all its water regions and the general office. This general rate case will determine new water rates for the years 2025 – 2027. Among other things, GSWC requested capital budgets of approximately $611.4 million for the three-year capital cycle. GSWC also requested the continuation of mechanisms to accommodate fully decoupled revenues and sales, and track differences between recorded and CPUC-authorized supply-related expenses. In an August 2020 decision, the CPUC discontinued the use of the WRAM and the MCBA by water utilities, which GSWC implemented in 2008, but would be discontinued for GSWC after 2024. However, on September 30, 2022, the governor of California signed Senate Bill (“SB”) 1469 and effective January 1, 2023, SB 1469 allows Class A water utilities, including GSWC, to continue requesting the use of a revenue decoupling mechanism in their next general rate case. With the passage of SB 1469, GSWC’s request to continue using a revenue decoupling mechanism will be subject to CPUC approval. As of the filing date of this Form 10-K, a proposed decision in the water general rate case is scheduled for the fourth quarter of 2024, with new rates to become effective January 1, 2025.

34

Water General Rate Case for years 2022 - 2024:
On June 29, 2023, the CPUC adopted a final decision in GSWC’s general rate case application for all its water regions and its general office that determined new water rates for the years 2022–2024 retroactive to January 1, 2022. Among other things, the final decision (i) adopted the full settlement agreement between GSWC and the Public Advocates Office at the CPUC (“Public Advocates”) that resolved all issues related to the 2022 annual revenue requirement in the general rate case application and authorized GSWC to invest approximately $404.8 million in capital infrastructure over the three-year capital cycle (excluding advice letter projects), and (ii) allowed for additional increases in adopted revenues for 2023 and 2024 subject to an earnings test and inflationary index values at the time of filing for implementation of the new rates. The impact of retroactive rates for the full year of 2022 as well as second-year rate increases for 2023 have been reflected in the results of operations for the year ended December 31, 2023.
As a result of receiving the final decision that approved the settlement agreement in its entirety, the net impact of retroactive new rates for the full year of 2022 was $0.38 per share and has been reflected in the year ended December 31, 2023 results, which consisted primarily of the increase in 2022’s annual revenue requirement (excluding advice letter projects) that, among other things, incorporated an increase in supply costs, and which combined is a net increase of approximately $0.40 per share; partially offset by the approval of new operating expense levels related to 2022 that resulted in an increase in recorded depreciation expense of approximately $790,000, or $0.02 per share, resulting from updated composite depreciation rates adopted in the final decision, and which are reflected in the 2022 adopted revenue requirement.
The second-year rate increases for 2023, which were retroactive to January 1, 2023, have also been reflected in the year ended December 31, 2023 results. Excluding the impact of retroactive rates for 2022 discussed above, there was an increase in recorded water operating revenues of $48.1 million largely as a result of the second-year rate increases for 2023 that, among other things, incorporated the increase in recorded supply costs of $10.0 million, which combined is an increase of $0.74 per share. Upon receiving the final decision, GSWC filed for the implementation of new 2023 rate increases that went into effect on July 31, 2023. Due to the delay in finalizing the water general rate case, water revenues billed to customers for the year ended December 31, 2022 and for the period from January 1, 2023 to July 30, 2023 were based on 2021 adopted rates. In October 2023, GSWC also filed with the CPUC to recover all retroactive rate amounts accumulated in memorandum accounts for the full 2022 year and for 2023 through July 30, 2023. Surcharges were implemented to recover the cumulative retroactive rate differences over 36 months. As of December 31, 2023, there is an aggregate cumulative balance of $52.8 million in CPUC-approved general rate case memorandum accounts that have been recognized as regulatory assets with a corresponding increase in water revenues.
Cost of Capital (COC) Proceedings:
2024 COC Application:
Investor-owned water utilities serving California are required to file their cost of capital applications on a triennial basis. GSWC’s next cost of capital application was scheduled to be filed on May 1, 2024 effective for the years 2025 - 2027. However, GSWC, along with three other Class A investor-owned water utilities in California, filed a joint request with the CPUC to defer the filing deadline of the next cost of capital applications by one year, which was approved on February 2, 2024. The joint request asked that the utilities keep the cost of capital currently authorized for 2024 in effect through 2025, and file new cost of capital applications by May 1, 2025 to set the cost of debt, return on equity and capital structure starting January 1, 2026. GSWC’s current authorized rate of return on rate base is 7.93% effective January 1, 2024, which will continue in effect through December 31, 2025. Additionally, GSWC's Water Cost of Capital Adjustment Mechanism (“WCCM”) will remain active through the one year deferral period.
2021 COC Application:
GSWC filed its last cost of capital application with the CPUC in May 2021. On June 29, 2023, the CPUC adopted a final decision that, among other things, (i) adopted GSWC’s requested capital structure of 57% equity and 43% debt; (ii) adopted a cost of debt of 5.1% for GSWC as compared to 6.6% previously authorized; (iii) adopted a return on equity of 8.85% for GSWC as compared to 8.9% previously authorized; (iv) allowed for the continuation of the WCCM through December 31, 2024; and (v) adopted the new cost of capital for the three-year period commencing January 1, 2022 through December 31, 2024. Based on the final decision issued in June 2023, all adjustments to rates are prospective and not retroactive. GSWC filed an advice letter that implemented the new cost of capital effective July 31, 2023.
Following the receipt of the final decision in the cost of capital proceeding, management updated its analysis and reassessed the accounting estimates recorded to date related to GSWC’s lower cost of debt. Accordingly, during the second quarter of 2023, GSWC recorded a change in estimate that resulted in an increase to water revenues in the amount of $6.4 million, or approximately $0.13 per share, as a result of reversing its regulatory liability for revenues subject to refund that it had recorded during 2022.
The WCCM adjusts the return on equity and rate of return on rate base between the three-year cost of capital proceedings only if there is a positive or negative change of more than 100 basis points in the average of the Moody’s Aa utility bond rate as measured over the period October 1 through September 30. If there is a positive or negative change of more than
35

100 basis points, the return on equity is adjusted by one half of the difference. For the period from October 1, 2021 through September 30, 2022, the Moody’s Aa utility bond rate increased by 102.8 basis points from the benchmark, which triggered the WCCM adjustment. GSWC recognized revenues for the period from January 1 through July 30, 2023 and all of 2022 based on the previously authorized return of equity of 8.9% that had also been billed to water customers through the same period. On June 30, 2023, GSWC filed an advice letter to establish the WCCM for 2023, which increased GSWC’s 8.85% adopted return on equity in the decision to 9.36% effective July 31, 2023. Additionally, for the period from October 1, 2022 through September 30, 2023, the Moody’s Aa utility bond rate increased by 139.7 basis points from the benchmark, which triggered another WCCM adjustment. On October 12, 2023, GSWC filed an advice letter to establish the WCCM for 2024, which has been approved by the CPUC and increased GSWC’s 9.36% adopted return on equity to 10.06% effective January 1, 2024.
Final Decision in the First Phase of the Low-Income Affordability Rulemaking:
In August 2020, the CPUC issued a final decision in the first phase of the CPUC’s Order Instituting Rulemaking evaluating the low income ratepayer assistance and affordability objectives contained in the CPUC’s 2010 Water Action Plan. This decision also addressed other issues, including mandating discontinuance of the WRAM and the MCBA. The MCBA is a full-cost balancing account used to track the difference between adopted and actual water supply costs (including the effects of changes in both rates and volume). Based on the final decision, any general rate case application filed by GSWC and the other California water utilities after August 27, 2020 may not include a proposal to continue the use of the WRAM or MCBA, but may instead include a proposal to use a limited price adjustment mechanism and an incremental supply cost balancing account. The discontinuation of the WRAM and MCBA for GSWC would be effective for years after 2024. However, on September 30, 2022, the governor of California signed Senate Bill (“SB”) 1469. Effective January 1, 2023, SB 1469 allows Class A water utilities, including GSWC, to continue requesting the use of a full revenue decoupling mechanism in their general rate case. With the passage of SB 1469, GSWC was able to request the continued use of a full revenue decoupling mechanism, similar to the WRAM in its general rate case application filed on August 14, 2023 that establishes new rates for the years 2025 – 2027. GSWC’s request to continue using a full revenue decoupling mechanism in its general rate case is subject to CPUC approval. Since its implementation in 2008, the WRAM and MCBA have helped mitigate fluctuations in GSWC’s earnings due to changes in water consumption by its customers or changes in water supply mix. Replacing them with mechanisms recommended in the final decision will likely result in more volatility in GSWC’s future earnings and could result in less than, or more than, full recovery of its authorized revenue and supply costs.
In October 2020, GSWC, three other investor-owned water utilities (“IOWUs”) operating in California, and the California Water Association (“CWA”) filed applications with the CPUC for rehearing on the discontinuation of the WRAM and MCBA, which the CPUC denied in September 2021. GSWC, the three other IOWUs and CWA each separately filed a petition with the California Supreme Court to review the CPUC’s decision revoking prior authorization of the WRAM and MCBA. In May 2022, the Court granted the petition for writ of review. The Court ordered GSWC, along with the other IOWUs and CWA, to file opening briefs, which were filed on September 1, 2022. The CPUC’s answer to the opening briefs was originally due by November 15, 2022 and reply briefs were due by December 15, 2022. However, as a result of SB 1469, in October 2022 the CPUC filed a motion to dismiss the IOWUs and CWA’s petition with the Court, and also requested that the Court suspend the proceeding schedule until it rules on the motion to dismiss. The Court granted the CPUC’s request to suspend the proceeding schedule. In November 2022, the Supreme Court denied the CPUC’s motion to dismiss and established a new proceeding schedule whereby the CPUC filed their answer brief on December 9, 2022 and the IOWUs filed their reply brief on January 13, 2023. At this time, management cannot predict the final outcome of this matter.
Electric General Rate Case for the years 20232026:
On August 30, 2022, BVES filed a general rate case application that will determine new electric rates for the years 2023 – 2026. In February 2023, a scoping memo and ruling that set the final schedule and scope of issues in BVES’s general rate case proceeding was issued by the CPUC. Electric revenues billed to customers for 2023 were based on 2022 adopted rates and will remain in effect until finalization of the pending general rate case application. On December 15, 2022, the CPUC approved a decision for BVES to establish a general rate case memorandum account that makes the new 2023 rates effective and retroactive to January 1, 2023. When a decision is issued in the electric general rate case, cumulative adjustments will be recorded at that time.
Among other things, BVES requested (i) capital budgets of approximately $62.0 million for the four-year rate cycle, and another $6.2 million for a large line replacement capital project to be filed for revenue recovery through an advice letter when the project is completed, and (ii) a capital structure for BVES of 61.8% equity and 38.2% debt, a return on equity of 11.25%, an embedded cost of debt of 5.51%, and a return on rate base of 9.05%. Included in the general rate case application is a request for recovery of all capital expenditures and other incremental costs incurred over the last few years in connection with BVES’s wildfire mitigation plans that are currently not included in customer rates. These costs will be subject to review by the CPUC during the general rate case proceeding.

36

Contracted Services Segment:
ASUS’s revenues, operating income and cash flows are earned by providing water and/or wastewater services, including operation and maintenance services and construction of facilities for the water and/or wastewater systems at various military installations, pursuant to an initial 50-year, firm-fixed-price contract, additional firm-fixed-price contracts, task order agreements and subcontracts with third party prime contractors on military bases. Currently, ASUS has one subsidiary that has entered into a task order agreement with the U.S. government that has a term of 15 years. The contract price for each of the contracts and recurring task order agreements is subject to annual economic price adjustments. Additional revenues generated by contract operations are primarily dependent on annual economic price adjustments, and new construction activities under contract modifications with the U.S. government or agreements with other third-party prime contractors. ASUS’s subsidiaries continue to enter into U.S. government-awarded contract modifications and agreements with third-party prime contractors for new construction projects at the military bases served.
During 2023, excluding the first task order of Joint Base Cape Cod (“JBCC”) and the new contract for Naval Air Station Patuxent River, ASUS was awarded approximately $24.1 million in new construction projects for completion beginning in 2023 through 2026. Earnings and cash flows from modifications to the initial 50-year contracts, additional contracts thereafter with the U.S. government and agreements with third-party prime contractors for additional construction projects may or may not continue in future periods.
On August 15, 2023, ASUS was awarded a new 50-year contract by the U.S. government to operate, maintain, and provide construction management services for the water distribution and wastewater collection and treatment facilities at Naval Air Station Patuxent River, a United States Navy air station located in Maryland. The initial firm-fixed-price value of the contract is estimated at $349 million over a 50-year period and is subject to annual economic price adjustments. This initial value is also subject to adjustment based on the results of a joint inventory of assets to be performed during the transition period and will be finalized during the first year of operations.
On September 29, 2023, ASUS was awarded a new 15-year contract by the U.S. government, that is different than ASUS's other existing 50-year contracts, to operate, maintain, and provide construction management services for the water distribution and wastewater collection and treatment facilities at JBCC located in Massachusetts. Under this contract, ASUS will have the opportunity to perform work at JBCC through the periodic issuance of task orders by the U.S. government for up to a maximum initial firm-fixed-price value of $45.0 million over a 15-year period, subject to adjustments as task orders are issued. In September 2023, the first task order was issued with a value of $2.3 million to perform an evaluation, construction and transition services that are scheduled for completion in 2024.
Entering into contracts with the U.S. government subjects ASUS to potential government audits or investigations of its business practices and compliance with government procurement statutes and regulations. ASUS had been under a civil government investigation over bidding and estimating practices used in certain capital upgrade projects. In July 2023, ASUS and the U.S. government entered into an agreement that settles civil and monetary claims by the U.S. government. This settlement did not have a material impact on Registrant’s financial statements.

37

Summary Results by Segment
The table below sets forth a comparison of the diluted earnings per share by business segment and for the parent company:  
 Diluted Earnings per Share
 Year Ended 
 12/31/202312/31/2022CHANGE
Water$2.77 $1.45 $1.32 
Electric0.20 0.24 (0.04)
Contracted services0.50 0.46 0.04 
AWR (parent)(0.10)(0.04)(0.06)
Consolidated diluted earnings per share, as recorded (GAAP)
3.36 2.11 1.25 
Adjustments to GAAP measure:
Impact of retroactive rates related to the full year of 2022 from the final decision in the water general rate case*
(0.38)— (0.38)
Impact related to the final cost of capital decision*(0.13)0.13 (0.26)
Consolidated diluted earnings per share, as adjusted (Non-GAAP)*$2.85 $2.24 $0.61 
Water diluted earnings per share, as adjusted (Non-GAAP)*$2.26 $1.58 $0.68 
Note: Certain amounts in the table above may not foot or crossfoot due to rounding.
* All adjustments to recorded diluted earnings per share relate to the water segment. The water segment’s adjusted earnings for 2023 exclude the impact of retroactive rates related to the full year of 2022 resulting from the final CPUC decision in the general rate case previously discussed, and for 2023 and 2022 they exclude the impact of changes in estimates resulting from revenues subject to refund related to the cost of capital proceeding, both shown separately in the table above.
For the year ended December 31, 2023, AWR’s recorded consolidated diluted earnings were $3.36 per share, as compared to $2.11 per share for 2022, an increase of $1.25 per share, which includes: (i) the impact of retroactive new rates related to the full 2022 year of $0.38 per share as a result of receiving a final decision in the water general rate case as previously discussed and shown separately in the table above, and (ii) a net favorable variance of $0.26 per share, also shown separately in the table above, related to the impact of the final cost of capital decision that resulted in the reversal during 2023 of revenues subject to refund of $6.4 million, or $0.13 per share, due to a change in estimate from what had been recorded during 2022. Excluding these items from both periods, for the year ended December 31, 2023 and 2022, adjusted consolidated diluted earnings were $2.85 per share and $2.24 per share, respectively, an adjusted increase of $0.61 per share. Also, included in the results for 2023 were gains totaling $5.0 million, or approximately $0.10 per share, on investments held to fund one of the Company’s retirement plans, as compared to losses of $5.2 million, or approximately $0.10 per share, for 2022, both due to financial market conditions.
Excluding the gains and losses on the retirement plan investments from both periods, the impact of retroactive rates recorded in 2023 related to the full year of 2022, and the impact of changes in estimates from the cost of capital proceeding from both periods, adjusted consolidated diluted earnings for the year of 2023 would be $2.75 per share as compared to adjusted diluted earnings of $2.34 per share for 2022, an adjusted increase of $0.41 per share or a 17.5% increase, largely due to new 2023 water rates approved in GSWC’s final decision in its general rate case proceeding.
The following is a computation and reconciliation of diluted earnings per share from the measure of operating income by business segment as disclosed in Note 17 to the Consolidated Financial Statements, to AWR’s consolidated fully diluted earnings per common share for the year ended December 31, 2023 and 2022:
WaterElectricContracted ServicesAWR (Parent)Consolidated (GAAP)
In 000's except per share amounts2023202220232022202320222023202220232022
Operating income (Note 17)$159,177 $92,455 $11,196 $11,740 $26,151 $22,449 $216 $(8)$196,740 $126,636 
Other (income) and expense
20,780 22,339 2,202 425 1,446 (273)5,792 2,085 30,220 24,576 
Income tax expense (benefit)35,689 16,346 1,515 2,439 6,109 5,476 (1,714)(597)41,599 23,664 
Net income (loss)$102,708 $53,770 $7,479 $8,876 $18,596 $17,246 $(3,862)$(1,496)$124,921 $78,396 
Weighted Average Number of Diluted Shares37,077 37,039 37,077 37,039 37,077 37,039 37,077 37,039 37,077 37,039 
Diluted earnings per share$2.77 $1.45 $0.20 $0.24 $0.50 $0.46 $(0.10)$(0.04)$3.36 $2.11 
Note: Certain amounts in the table above may not foot or crossfoot due to rounding.
38

Water Segment:
For the year ended December 31, 2023, recorded diluted earnings from the water utility segment were $2.77 per share, as compared to $1.45 per share for 2022, an increase of $1.32 per share, which includes: (i) the impact of retroactive new rates related to the full 2022 year of $0.38 per share (shown separately in the Summary Results by Segment table above), (ii) a net favorable variance of $0.26 per share (shown separately in the Summary Results by Segment table above) from the impact of the final cost of capital decision that resulted in the reversal of $6.4 million, or $0.13 per share, due to a change in estimate from what had been recorded during 2022, and (iii) a net favorable variance of $0.20 per share from gains totaling $5.0 million, or $0.10 per share, recorded during 2023 on investments held to fund a retirement plan, as compared to losses of $5.2 million, or $0.10 per share, recorded in 2022.
Excluding the gains and losses on the retirement plan investments from both periods, the impact of retroactive rates recorded in 2023 related to the full year of 2022, and the impact of changes in estimates from the cost of capital proceeding from both periods, adjusted diluted earnings for 2023 at the water segment were $2.16 per share as compared to adjusted diluted earnings of $1.68 per share for 2022, an adjusted net increase at the water segment of $0.48 per share, or a 28.6% increase, due primarily to the following items:
An increase in the water operating revenues of $48.1 million largely as a result of the second-year rate increases for 2023 that are retroactive to January 1, 2023 and have been reflected in the results for the year ended December 31, 2023, partially offset by the impact of the prospective change in the new cost of capital effective July 31, 2023. GSWC filed for the implementation of new 2023 rates upon receiving the final decisions in June 2023 in both its general rate case and cost of capital proceedings. The increase in water revenues during 2023 represents the difference from the 2023 second-year rate increases and the 2021 adopted rates in place and recorded during 2022.
An increase in water supply costs of $10.0 million, which consist of purchased water, purchased power for pumping, groundwater production assessments and changes in the water supply cost balancing accounts. Adopted supply costs for the year of 2023 were based on 2023 authorized amounts approved in the final CPUC decision in the water general rate case as compared to 2021 authorized amounts in place during 2022. Actual water supply costs are tracked and passed through to customers on a dollar-for-dollar basis by way of the CPUC-approved water supply cost balancing accounts. The increase in water supply costs results in a corresponding increase in water operating revenues and has no net impact on the water segment’s profitability.
An overall increase in operating expenses of $3.4 million (excluding supply costs), which negatively impacted earnings and was mainly due to increases in (i) overall labor costs and other employee-related benefits, (ii) administrative and general expenses resulting from higher legal and other outside-services costs, (iii) depreciation and amortization expenses resulting from additions to utility plant and higher composite depreciation rates based on a revised depreciation study approved in the water general rate case, and (iv) franchise fees resulting from higher water revenues. These increases were partially offset by a decrease in water treatment costs, and bad debt expense as a result of additional state relief funds expected to be received for unpaid water bills accumulated during the COVID-19 pandemic period.
An overall increase in interest expense (net of interest and other income) of $4.8 million resulting primarily from an increase in interest rates, as well as an overall increase in total borrowing levels to support, among other things, the capital expenditure programs at GSWC; partially offset by higher interest income earned on regulatory assets bearing interest at the current 90-day commercial-paper rate, which increased compared to 2022’s rates, as well as an increase in the level of regulatory assets recorded resulting, in large part, from the decision on the water general rate case that had been delayed.
An overall increase in other expense (net of other income) of $4.6 million due largely to a net increase in the non-service cost components related to GSWC’s benefit plans resulting from changes in actuarial assumptions recorded during the year ended December 31, 2023 as compared to 2022. However, as a result of GSWC’s two-way pension balancing accounts authorized by the CPUC, changes in total net periodic benefit costs related to the pension plan have no material impact to earnings, which accounts for the majority of the increase in non-service costs.
Changes in certain flowed-through income taxes and permanent items included in GSWC’s income tax expense for the twelve months ended December 31, 2023 as compared to the same period in 2022 that unfavorably impacted the water segment's earnings. As a regulated utility, GSWC treats certain temporary differences as being flowed-through in computing its income tax expense consistent with the income tax method used in its CPUC-jurisdiction rate making. Changes in the magnitude of flowed-through items either increase or decrease tax expense, thereby affecting diluted earnings per share.

39

Electric Segment:
Diluted earnings from the electric utility segment decreased $0.04 per share for the year ended December 31, 2023 as compared to 2022, largely resulting from not having new rates in 2023 while awaiting the processing of the pending electric general rate case that will set new rates for 2023 – 2026, while also experiencing continued increases in overall operating expenses and interest costs, partially offset by favorable changes in certain flowed-through income taxes. When a decision is issued in the electric general rate case, new rates are expected to be retroactive to January 1, 2023 and cumulative adjustments will be recorded at that time.
Contracted Services Segment:
Diluted earnings from the contracted services segment increased $0.04 per share for the year ended December 31, 2023 as compared to 2022, largely due to an increase in management fee revenues resulting from the resolution of various economic price adjustments and an increase in construction activity, partially offset by higher overall operating expenses (excluding construction expenses) and interest costs as compared to 2022.
AWR (Parent):
For the year ended December 31, 2023, the diluted loss from AWR (parent) increased $0.06 per share compared to 2022 due primarily to an increase in interest expense resulting from higher short-term interest rates and higher borrowings made under AWR’s revolving credit facility, as well as changes in state unitary taxes.
The following discussion and analysis for the years ended December 31, 2023 and 2022 provide information on AWR’s consolidated operations and assets and, where necessary, includes specific references to AWR’s individual segments and subsidiaries: GSWC, BVES and ASUS and its subsidiaries.
40

Consolidated Results of Operations — Years Ended December 31, 2023 and 2022 (amounts in thousands, except per share amounts):
Year EndedYear Ended$%
12/31/202312/31/2022CHANGECHANGE
OPERATING REVENUES    
Water$433,473 $340,602 $92,871 27.3 %
Electric41,832 39,986 1,846 4.6 %
Contracted services120,394 110,940 9,454 8.5 %
Total operating revenues595,699 491,528 104,171 21.2 %
OPERATING EXPENSES    
Water purchased72,864 75,939 (3,075)-4.0 %
Power purchased for pumping12,829 11,861 968 8.2 %
Groundwater production assessment20,850 19,071 1,779 9.3 %
Power purchased for resale13,275 15,039 (1,764)-11.7 %
Supply cost balancing accounts12,118 (12,000)24,118 -201.0 %
Other operation 40,271 38,095 2,176 5.7 %
Administrative and general 88,273 86,190 2,083 2.4 %
Depreciation and amortization42,403 41,315 1,088 2.6 %
Maintenance14,218 13,392 826 6.2 %
Property and other taxes24,046 22,894 1,152 5.0 %
ASUS construction57,912 53,171 4,741 8.9 %
Gain on sale of assets(100)(75)(25)33.3 %
Total operating expenses398,959 364,892 34,067 9.3 %
OPERATING INCOME196,740 126,636 70,104 55.4 %
OTHER INCOME AND EXPENSES    
Interest expense(42,762)(27,027)(15,735)58.2 %
Interest income7,416 2,326 5,090 218.8 %
Other, net5,126 125 5,001 *
 (30,220)(24,576)(5,644)23.0 %
INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE166,520 102,060 64,460 63.2 %
Income tax expense41,599 23,664 17,935 75.8 %
NET INCOME$124,921 $78,396 $46,525 59.3 %
Basic earnings per Common Share$3.37 $2.12 $1.25 59.0 %
Fully diluted earnings per Common Share$3.36 $2.11 $1.25 59.2 %
* not meaningful
41

Operating Revenues
General
GSWC and BVES rely upon approvals by the CPUC of rate increases to recover operating expenses and to provide for a return on invested and borrowed capital used to fund utility plant. ASUS relies on economic price and equitable adjustments by the U.S. government in order to recover operating expenses and provide a profit margin for ASUS. Current operating revenues and earnings may be negatively impacted if ASUS’s subsidiaries do not receive adequate price adjustments in a timely manner. ASUS’s earnings are also impacted by the level of construction projects at its subsidiaries, which may or may not continue at current levels in future periods.
Water
For the year ended December 31, 2023, revenues from water operations increased by $92.9 million to $433.5 million, compared to 2022. The increase in water revenues was largely because of the adoption in June 2023 of a final decision in the water general rate case that included the impact of retroactive rates associated with the increase in 2022’s annual revenue requirement (excluding advice letter projects), as well as the second-year rate increases for 2023, partially offset by the impact of the prospective change in the new cost of capital effective July 31, 2023. In addition, because of receiving a final decision in the cost of capital proceeding in June 2023, in which the CPUC made adjustments to rates prospective, GSWC recorded a change in estimate that resulted in an increase to water revenues in 2023 totaling $6.4 million as a result of reversing its regulatory liability for revenues subject to refund that it had recorded during 2022.
Billed water consumption for the year ended December 31, 2023 was lower by 7.8% compared to 2022 due primarily to overall above average rainfall in California during the year of 2023 compared to 2022. Currently, changes in consumption generally do not have a significant impact on recorded revenues due to the CPUC-approved WRAM that is in place in all but one small rate-making area. GSWC records the difference between what it bills its water customers and that which is authorized by the CPUC in the WRAM accounts as regulatory assets or liabilities.
Electric
Electric revenues for the year ended December 31, 2023 increased $1.8 million to $41.8 million due, in large part, to the final decision adopted in the water general rate case proceeding that updates the costs allocated from the general corporate office to the electric segment. The final decision authorizes an increase in the allocation ratio to the electric segment. The increase in general corporate office expenses allocated to the electric segment also includes a corresponding and offsetting increase in adopted electric revenues as provided in BVES’s last general rate case proceeding, resulting in no impact to earnings. There was also an increase in electric revenues from an advice letter filing related to a completed capital project.
Electric usage for the year ended December 31, 2023 was lower by 2.9% compared to 2022. Due to the CPUC-approved Base Revenue Requirement Adjustment Mechanism, which adjusts certain revenues to adopted levels authorized by the CPUC, changes in usage do not have a significant impact on earnings.
Contracted Services
Revenues from contracted services are composed of construction revenues (including renewal and replacements) and management fees for operating and maintaining the water and/or wastewater systems at various military bases.  For the year ended December 31, 2023, revenues from contracted services increased $9.5 million to $120.4 million as compared to $110.9 million for 2022. The increase was largely due to higher construction activity and an increase in management fee revenue from annual economic price adjustments as compared to 2022.
ASUS’s subsidiaries continue to enter into U.S. government-awarded contract modifications and agreements with third-party prime contractors for new construction projects at the military bases served. During 2023, excluding the first task order of JBCC and the new contract for Naval Air Station Patuxent River, ASUS was awarded approximately $24.1 million in new construction projects for completion in 2023 through 2026. Earnings and cash flows from modifications to the initial 50-year contracts and additional contracts with the U.S. government and agreements with third-party prime contractors for additional construction projects may or may not continue in future periods.

42

Operating Expenses:
Supply Costs
Total supply costs at the regulated utilities comprise the largest segment of total consolidated operating expenses. Supply costs accounted for 33.1% and 30.1% of total operating expenses for the years ended December 31, 2023 and 2022, respectively.
Water segment supply costs
Two of the principal factors affecting water supply costs are the amount of water produced and the source of the water. Generally, the variable cost of producing water from wells is less than the cost of water purchased from wholesale suppliers. The overall actual percentages for purchased water for the years ended December 31, 2023 and 2022 were 43% and 45%, as compared to the adopted percentages of 41% and 34% for 2023 and 2022. The higher actual percentage of purchased water as compared to adopted resulted from a higher volume of purchased water costs due to several wells being out of service.
Under the current CPUC-approved MCBA, GSWC tracks adopted and actual expense levels for purchased water, power purchased for pumping and pump taxes. GSWC records the variances (which include the effects of changes in both rate and volume) between adopted and actual purchased water, purchased power and pump tax expenses as a regulatory asset or liability. GSWC recovers from, or refunds to, customers the amount of such variances.  GSWC tracks these variances individually for each water ratemaking area.
Supply costs for the water segment consist of purchased water, purchased power for pumping, groundwater production assessments and changes in the water supply cost balancing accounts. For the years ended December 31, 2023 and 2022, water supply costs consisted of the following amounts (in thousands):
Year
Ended
Year
Ended
$%
12/31/202312/31/2022CHANGECHANGE
Water purchased$72,864 $75,939 $(3,075)-4.0 %
Power purchased for pumping12,829 11,861 968 8.2 %
Groundwater production assessment20,850 19,071 1,779 9.3 %
Water supply cost balancing accounts *13,839 (8,643)22,482 -260.1 %
Total water supply costs$120,382 $98,228 $22,154 22.6 %
* The sum of water and electric supply-cost balancing accounts are shown on AWR’s Consolidated Statements of Income and totaled $12.1 million and $(12.0) million for 2023 and 2022, respectively.
Purchased water costs for the year ended December 31, 2023 decreased to $72.9 million as compared to $75.9 million for 2022 primarily due to decreases in water consumption and production that were driven by overall above-average rainfall in 2023 and from overall improvements in drought conditions in 2023 as compared to 2022, partially offset by increases in wholesale water costs. The increase in power purchased for pumping was due to increases in electricity provider rates. Groundwater production assessments increased due to increases in pump tax rates during 2023 as compared to 2022.
For the year ended December 31, 2023, the water supply cost balancing account had a $13.8 million over-collection as compared to an $8.6 million under-collection in 2022. The change in water supply cost balancing accounts was primarily due to updated adopted supply costs from the final decision in the water general rate case proceeding received in June 2023. This increase includes the full year impact of 2022 to reflect newly adopted supply costs retroactive to January 1, 2022, with a corresponding and offsetting increase in adopted water revenues, resulting in no impact to earnings.
Electric segment supply costs
Supply costs for the electric segment consist primarily of purchased power for resale, the cost of natural gas used by BVES’s generating unit, the cost of renewable energy credits and changes in the electric supply cost balancing account. For the years ended December 31, 2023 and 2022, electric supply costs consisted of the following amounts (in thousands):
Year
Ended
Year
Ended
$%
12/31/202312/31/2022CHANGECHANGE
Power purchased for resale$13,275 $15,039 $(1,764)-11.7 %
Electric supply cost balancing account *(1,721)(3,357)1,636 -48.7 %
Total electric supply costs$11,554 $11,682 $(128)-1.1 %
    
* The sum of water and electric supply-cost balancing accounts are shown on AWR’s Consolidated Statements of Income and totaled $12.1 million and $(12.0) million for 2023 and 2022, respectively.
43

For the year ended December 31, 2023, the cost of power purchased for resale to BVES’s customers decreased to $13.3 million as compared to $15.0 million for 2022 primarily due to a decrease in customer usage and lower average price per megawatt-hour (“MWh”). The average price per MWh, including fixed costs, decreased to $79.80 per MWh in 2023 from $97.89 per MWh in 2022. The lower customer usage resulted in a lower under-collection of $1.7 million recorded in the electric supply balancing account in 2023 when compared to an under-collection of $3.4 million during 2022.
Other Operation
The primary components of other operation expenses include payroll costs, materials and supplies, chemicals and water treatment costs, and outside service costs of operating the regulated water and electric systems, including the costs associated with transmission and distribution, pumping, water quality, meter reading, billing, and operations of district offices.  Registrant’s contracted services operations incur many of the same types of expenses.  For the years ended December 31, 2023 and 2022, other operation expenses by business segment consisted of the following amounts (in thousands):
Year
Ended
Year
Ended
$%
12/31/202312/31/2022CHANGECHANGE
Water Services$29,064 $28,117 $947 3.4 %
Electric Services4,057 3,311 746 22.5 %
Contracted Services7,150 6,667 483 7.2 %
Total other operation $40,271 $38,095 $2,176 5.7 %
For the year ended December 31, 2023, the increase in other operation expenses at the water segment was due primarily to higher operation-related labor, transportation and outside-service costs, partially offset by lower water treatment costs and bad debt expense. As a result of receiving the final decision in the water general rate case, the increase at the water segment also included a cumulative depreciation adjustment for 2022 of $212,000 on GSWC’s transportation equipment, which is recorded in other operation expenses.
The increases at the electric and contracted services segments were due primarily to higher operation-related labor and outside-services costs.
Administrative and General
Administrative and general expenses include payroll related to administrative and general functions, all employee-related benefits, insurance expenses, outside legal and consulting fees, regulatory utility commission expenses, expenses associated with being a public company and general corporate expenses charged to expense accounts. For the years ended December 31, 2023 and 2022, administrative and general expenses by business segment, including AWR (parent), consisted of the following amounts (in thousands):
Year
Ended
Year
Ended
$%
12/31/202312/31/2022CHANGECHANGE
Water Services$59,313 $58,358 $955 1.6 %
Electric Services8,745 7,901 844 10.7 %
Contracted Services20,431 19,923 508 2.5 %
AWR (parent)(216)(224)*
Total administrative and general $88,273 $86,190 $2,083 2.4