American States Water Company Q4 2008 Earnings Call Transcript

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2009-03-12 17:26:10.0

Tags: East Coast, Construction, Call Transcript, Earnings, Financial Accounting, Finance, Seeking Alpha, American States Water Co.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Debra Coy - Janney Montgomery Scott LLC.

Debra Coy - Janney Montgomery Scott LLC

On ASUS, it's great to see that contributing in the fourth quarter and I'm wondering what you can tell us about how things are shaping up for 2009 - number one, where you stand on any additional rate increases or adjustments there, and number two, what the prospects are for additional construction work or whether the construction work you were doing on the East Coast bases was wrapped up in the fourth quarter?

Bob Sprowls

Okay, let's talk about prospective financial information. We typically haven't provided that for ASUS.

Debra Coy - Janney Montgomery Scott LLC

No, I know, but just generally directionally.

Bob Sprowls

Well, that business has been volatile and, as you said, fourth quarter was improved performance there and we're glad to see that. It's one of these things where we don't know whether we're out of the woods at this point and don't want to say that we are before we are, so we're going to be conservative in terms of saying where we are there.

Regarding the major construction projects, we still have, I think, a little bit to go there in terms of a couple of these major projects that we're doing on the East Coast, but I'll tell you, there's a number of construction projects that need to be done at Fort Bragg and it's just the timing of that we're a little bit unclear. So we're going to continue to do these construction projects and it's going to probably vary base to base.

Regarding the price redeterminations, we've done filings for price redeterminations on our East Coast bases and so that has to run its course. We have a request for equitable adjustment in at Fort Bliss. Once that gets completed we feel we can then go in and file a request for price redetermination there. So really we've asked for price increases everywhere we can except Fort Bliss and that's because we've got to resolve this inventory issue first.

Debra Coy - Janney Montgomery Scott LLC

Just to back up, if you can explain the inventory issue? You mentioned that you did get a $100,000 a month increase at Fort Bliss starting in October, so that's an interim partial increase? What exactly is the situation at Fort Bliss?

Bob Sprowls

 

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