American States Water Company Announces CPUC’s Approval to Defer the Cost of Capital Application at Golden State Water Company
American States Water Company (NYSE:AWR) has received approval from the California Public Utilities Commission (CPUC) to defer the cost of capital application for its subsidiary, Golden State Water Company (GSWC). The CPUC approved postponing the filing date from May 1, 2025, to May 1, 2026, with an effective date of January 1, 2027.
The current Water Cost of Capital Mechanism will remain in place during the deferral period. GSWC's authorized rate of return on rate base will continue at 7.93% through December 31, 2026, based on a weighted cost of capital that includes a 10.06% return on equity, 5.1% embedded cost of debt, and a capital structure comprising 57% equity and 43% debt.
American States Water Company (NYSE:AWR) ha ricevuto l'approvazione dalla California Public Utilities Commission (CPUC) per rinviare la richiesta del costo del capitale per la sua sussidiaria, Golden State Water Company (GSWC). La CPUC ha approvato il rinvio della data di deposito dal 1 maggio 2025 al 1 maggio 2026, con una data di entrata in vigore del 1 gennaio 2027.
Il Meccanismo del Costo del Capitale dell'Acqua attuale rimarrà in vigore durante il periodo di rinvio. Il tasso di rendimento autorizzato di GSWC sulla base tariffaria continuerà a essere del 7,93% fino al 31 dicembre 2026, sulla base di un costo del capitale ponderato che include un 10,06% di rendimento azionario, un 5,1% di costo del debito incorporato e una struttura di capitale composta dal 57% di capitale proprio e 43% di debito.
American States Water Company (NYSE:AWR) ha recibido la aprobación de la Comisión de Servicios Públicos de California (CPUC) para aplazar la solicitud del costo de capital para su subsidiaria, Golden State Water Company (GSWC). La CPUC aprobó posponer la fecha de presentación del 1 de mayo de 2025 al 1 de mayo de 2026, con una fecha de entrada en vigor del 1 de enero de 2027.
El Mecanismo del Costo de Capital del Agua actual permanecerá en vigor durante el período de aplazamiento. La tasa de retorno autorizada de GSWC sobre la base regulatoria continuará siendo del 7,93% hasta el 31 de diciembre de 2026, basada en un costo de capital ponderado que incluye un 10,06% de retorno sobre el capital, un 5,1% de costo de la deuda incorporada y una estructura de capital compuesta por 57% de capital y 43% de deuda.
아메리카 주 생수 회사 (NYSE:AWR)는 캘리포니아 공공 유틸리티 위원회(CPUC)로부터 자회사인 골든 스테이트 워터 컴퍼니(GSWC)의 자본 비용 신청 연기를 승인받았습니다. CPUC는 제출 기한을 2025년 5월 1일에서 2026년 5월 1일로 연기하는 것을 승인했으며, 발효일은 2027년 1월 1일입니다.
현재 수자원 자본 비용 메커니즘은 연기 기간 동안 유지될 것입니다. GSWC의 승인된 요율 기반에 대한 수익률은 2026년 12월 31일까지 7.93%로 계속되며, 이는 10.06%의 자본 수익률, 5.1%의 내재된 채무 비용 및 57% 자본과 43% 부채로 구성된 자본 구조를 포함한 가중 자본 비용에 기반합니다.
American States Water Company (NYSE:AWR) a reçu l'approbation de la California Public Utilities Commission (CPUC) pour différer la demande de coût du capital pour sa filiale, Golden State Water Company (GSWC). La CPUC a approuvé le report de la date de dépôt du 1er mai 2025 au 1er mai 2026, avec une date d'entrée en vigueur du 1er janvier 2027.
Le Mécanisme du Coût du Capital de l'Eau actuel restera en vigueur pendant la période de report. Le taux de rendement autorisé de GSWC sur la base tarifaire continuera d'être de 7,93% jusqu'au 31 décembre 2026, sur la base d'un coût du capital pondéré qui inclut un 10,06% de rendement des capitaux propres, un 5,1% de coût de la dette intégrée, et une structure de capital composée de 57% de capitaux propres et 43% de dettes.
American States Water Company (NYSE:AWR) hat die Genehmigung der California Public Utilities Commission (CPUC) erhalten, die Antragstellung bezüglich der Kapitalkosten für ihre Tochtergesellschaft, die Golden State Water Company (GSWC), zu verschieben. Die CPUC genehmigte die Verschiebung des Einreichungsdatums vom 1. Mai 2025 auf den 1. Mai 2026, mit einem Inkrafttretungsdatum vom 1. Januar 2027.
Der derzeitige Wasser-Kapitalkostenmechanismus bleibt während des Aufschubzeitraums in Kraft. Die genehmigte Rendite von GSWC auf dem Tarifsockel wird bis zum 31. Dezember 2026 weiterhin 7,93% betragen, basierend auf einem gewichteten Kapitalkostenansatz, der eine 10,06% Rendite auf Eigenkapital, 5,1% eingebetteten Fremdkapitalkosten und eine Kapitalstruktur von 57% Eigenkapital und 43% Fremdkapital umfasst.
- Maintains stable 7.93% return on rate base through 2026
- Preserves favorable 10.06% return on equity
- Continues advantageous 57/43 equity-to-debt capital structure
- Delayed opportunity to potentially secure higher rates until 2027
Insights
The CPUC's approval to defer GSWC's cost of capital application represents a strategic regulatory development. The continuation of the current 7.93% authorized rate of return through 2026 provides important revenue stability and predictability. The approved capital structure with 57% equity and 43% debt maintains a conservative financial profile that should help weather potential market volatility.
The 10.06% return on equity remains competitive in the current utility landscape, particularly given the challenging interest rate environment. The 5.1% embedded cost of debt is relatively favorable, considering recent market conditions. This regulatory framework effectively balances shareholder returns with customer costs while providing AWR with sufficient capital to maintain and upgrade its infrastructure.
For everyday investors: Think of this like locking in a favorable mortgage rate for an extra year. The company gets to keep its current favorable financing terms, which helps maintain stable earnings and supports dividend payments. This is particularly valuable when interest rates are uncertain.
GSWC’s current authorized rate of return on rate base is
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by words such as “anticipate,” “estimate,” “expect,” “intend,” “may,” “should” and similar phrases and expressions, and variations or negatives of these words. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to place undue reliance upon them. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors, including those described in greater detail in the Company’s filings with the SEC, particularly those described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are encouraged to review the Company’s filings with the SEC for a more complete discussion of risks and other factors that could affect any forward-looking statements. The statements made herein speak only as of the date of this press release and except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statement.
About American States Water Company
American States Water Company is the parent of Golden State Water Company, Bear Valley Electric Service, Inc. and American States Utility Services, Inc., serving over one million people in ten states. Through its water utility subsidiary, Golden State Water Company, the company provides water service to approximately 264,600 customer connections located within more than 80 communities in Northern, Coastal and
AWR has paid common dividends every year since 1931, and has increased the dividends received by shareholders each calendar year for 70 consecutive years, which places it in an exclusive group of companies on the New York Stock Exchange that have achieved that result. The company has grown its quarterly dividend rate at a compound annual growth rate (“CAGR”) of
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Eva G. Tang
Senior Vice President-Finance, Chief Financial Officer,
Corporate Secretary and Treasurer
Telephone: (909) 394-3600, ext. 707
Source: American States Water Company
FAQ
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