American States Water Co. Announces Award of Privatization Contracts for U.S. Military Bases.
American States Water Company announced that its American States Utility Services, Inc. (ASUS) subsidiary has reached an agreement to operate and maintain the water and wastewater systems at Andrews Air Force Base in Maryland and Fort Story, Fort Eustis, and Fort Monroe in Virginia. ASUS also reached an agreement to operate and maintain the wastewater system at Fort Lee, Virginia. According to the agreements, the aggregate award of these contracts is estimated at more than $238 million over a 50-year period and is subject to periodic price re-determination adjustments and modifications for changes in circumstances.
Terrapin Utility Services, Inc. in Maryland and Old Dominion Utility Services, Inc. in Virginia, wholly-owned subsidiaries of ASUS, will furnish all necessary labor, management, supervision, permits, equipment, supplies, materials, transportation and any other incidentals for the complete operation, maintenance, repair, upgrades and improvements to the utility systems.
The agreements are subject to the expiration of a 90-day due diligence period during which time the transition will be undertaken.
Commenting on the awards, Floyd E. Wicks, president and CEO said, "The signing of these agreements is a continuing part of the AWR growth strategy. ASUS has a number of currently outstanding bids for similar contracts across the country and we look forward to providing other installations of the United States military with premier water and wastewater services."