Oct 7 2009
American States Water Company (NYSE:AWR) announced that the U.S. government issued contract modifications to subsidiaries of AWR’s American States Utility Services, Inc. (“ASUS”) unit.
The modifications provided funding for $7.3 million in new construction projects at ASUS’ Fort Bliss Water Services Company, Old Dominion Utility Services, Inc., Terrapin Utility Services, Inc., and Old North Utility Services, Inc. subsidiaries. The majority of this work will be performed during calendar year 2010. ASUS’ Palmetto State Utility Services, Inc. subsidiary also received on September 30 a modification for a $1.1 million equitable adjustment.
This modification provides reimbursement for emergency construction costs previously incurred at Fort Jackson, South Carolina. The majority of the costs on these projects at Fort Jackson had been previously recognized by ASUS as construction expense in 2008. The recognition of construction revenues was pending the approval of the request for equitable adjustment by the U.S. government. As a result of this modification, AWR will recognize construction revenues and operating income of $1.1 million during the third quarter of 2009.
Source: http://www.aswater.com/