American States Water reaches agreement on eminent domain action
American States Water's wholly owned subsidiary Golden State Water Company and a group of citizens referred to as Ojai Friends of Locally Owned Water has reached a settlement agreement with the Board of Directors of Casitas Municipal Water District to resolve an eminent domain action and other litigation brought by Casitas and Ojai FLOW against GSWC. Casitas will acquire the operating assets of GSWC's Ojai water system by eminent domain for approximately $34.5M, including payments for unpaid receivables and regulatory assets subject to a post-closing final reconciliation. Under the agreement, Casitas and Ojai FLOW have also agreed to dismiss all claims against GSWC, which sought damages against GSWC stemming from Casitas' proposal to issue bonds to finance the acquisition of GSWC's Ojai water system. GSWC, which has owned and operated the 2,900-connection Ojai water system since 1929, will continue operating the water system until all conditions to the settlement agreement have completed. It is estimated that the transaction will close in June.