On this page of StockholderLetter.com we present the 4/7/2023 shareholder letter from AMERICAN STATES WATER CO — ticker symbol AWR. Reading current and past AWR letters to shareholders can bring important insights into the investment thesis.

 •  4/7/2023 Letter Continued (Full PDF)
 •  4/5/2024 AWR Stockholder Letter
 •  4/4/2025 AWR Stockholder Letter
 •  More "Water Utilities" Category Stockholder Letters
 •  AWR Benford's Law Stock Score = 99

AWR 4/7/2023 Shareholder/Stockholder Letter Transcript:

We   re right here.
2022 ANNUAL REPORT

The water coming
out of faucets today,
we planned for
decades ago.
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 nine states. Through its water utility subsidiary, Golden State Water
Company, the company provides water service to approximately 263,000 customer connections located within more than 80
communities in Northern, Coastal and Southern California. Through its electric utility subsidiary, Bear Valley Electric Service, Inc., the
company distributes electricity to approximately 24,700 customer connections in the City of Big Bear Lake and surrounding areas in
San Bernardino County, California. Through its contracted services subsidiary, American States Utility Services, Inc., the company
provides operations, maintenance and construction management services for water distribution and wastewater collection and
treatment facilities located on 11 military bases throughout the country under 50-year privatization contracts with the U.S. government.

We all fill a glass or turn on a shower
as did the drought. But we were also
without thinking about all it takes to
challenged by supply chain struggles, near
bring this life-sustaining resource into
record inflation, and a jittery stock market.
our homes and businesses. It takes
thoughtful strategic planning, strong
leadership, and an unwavering sense
of responsibility to prepare for what
we will need from these resources for
generations to come. American States
Water has a track record of consistently
hitting all these marks. We   ve been here
since 1929     planning for today and each
day to come.
Yet American States Water is here
delivering reliable water, wastewater
and electric services to over a million
people in nine states. It   s why we
plan for the next decade and the one
after that and then eight after that. In
2022, we spent a record amount on
infrastructure for our regulated utilities
to build, fortify and improve our water
and electric systems.
It   s clear that 2022 tested all of us. Some
of this was expected as the COVID-19
pandemic continued to impact our lives,
We   re right here for you.
2022 ANNUAL REPORT
1

We   re here for customers
and communities.
We realize the pivotal role we play in people   s lives. It   s no
ordinary job to provide safe, reliable water, electricity, and
wastewater services every day     in their homes, businesses
and across military bases. This foundational relationship
creates a fabric that connects us to the people, families, and
businesses that we serve. It   s why we continuously plan for the
infrastructure needs for the next generation.
To support the economy in our regions, we do business with a
host of diverse suppliers and small businesses. Our regulated
utilities increased the percentage of spend with diverse
suppliers during the year. It is now more than four times the
number we worked with in 2004. The work we do on military
bases has also included strong support for these businesses. Now
70.5% of our dollars invested on bases are awarded to a variety of
small businesses, far exceeding U.S. government requirements.
We also work with communities to meet the issues we face
together. As the drought has continued to challenge California,
our conservation rate structure, communication and education
initiatives have paid off. Since 2007, Golden State Water Company
(GSWC) customers have cooperatively chosen to cut their water
usage per customer by 36.5%. We are proud that together we
Regulated Utilities
have been very effective in meeting or exceeding the state water
investment per customer connection
conservation objectives, and in many cases, achieving greater
$8,062
and this is reflected in their significant volunteering efforts
$7,596
Our employees are vital members of the communities we serve,
$7,138
water conservation results than other adjacent water purveyors.
2021
2022
and charitable contributions. Another key part of living in a
community is caring for the environment. We demonstrate
this every day through managing our precious resources, and
through our company   s commitment to reduce greenhouse
gas emissions 60% by 2035.
2
AMERICAN STATES WATER COMPANY
2020

We   re here
for our people.
Capital Investments    
Regulated Utilities
in millions
2018
$121.0
2019
$136.2
2020
$123.4
2021
$142.6
2022
$167.5
5-Year Total
$690.7
We   ve heard from so many customers that they were
comforted by seeing our crews out in the field, still
working through the challenges of the pandemic. It
was a perfect opportunity for our customers to see
the character and devotion that we see every day. We
have extremely dedicated employees. When they see
a problem, they address it. When given a challenge
and goal, they attain it. And we are here for them.
Their health and safety are always top priorities     as is
Construction
Expenses     ASUS
in millions
2018
$53.9
2019
$55.7
2020
$62.4
2021
$56.9
2022
$53.2
providing them with a diverse and inclusive culture and
opportunities for development.
5-Year Total
$282.1
2022 ANNUAL REPORT
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 4/7/2023 Letter Continued (Full PDF)