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American States Water to Miss Estimates

Dec. 20, 2002

California utility American States Water Co. said it will miss Wall Street analysts' earnings estimates for 2002 due to delays in rate increases and higher supply costs.

Analysts had been expecting American States to earn $1.35 per share in fiscal 2002.

American States said it had expected approval of a rate increase from the California Public Utilities Commission in the first quarter of 2002, but consideration of that increase was delayed until Jan. 2003. The delay will hurt 2002 earnings by 9 cents per share, the company said.

The company also said its method for accounting for supply costs has changed, which will hurt earnings by 11 cents per share. American States added that earnings have been hurt by flat water consumption in most of its service areas.

Source: Reuters

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