EXHIBIT 10.13B September 1, 1997 Southwest Water Company 225 N. Barranca Ave., Suite 200 West Covina, CA 91719 Gentlemen: This letter is to confirm that Wells Fargo Bank, National Association ("Bank") has agreed to extend the maturity date of that certain credit accommodation granted by Bank to Suburban Water Systems ("Borrower") in the maximum principal amount of Four Million Dollars ($4,000,000.00) pursuant to the terms and conditions of that certain credit Agreement between Bank and Borrower dated as of June 30, 1996, as amended from time to time (the "Agreement"). The maturity date of said credit accommodation is hereby extended until November 1, 1997. Until such date, all terms and conditions of the Agreement which pertain to said credit accommodation shall remain in full force and effect, except as expressly modified hereby. The promissory note dated as of December 22, 1992, as modified and/or amended from time to time, executed by Borrower and payable to the order of Bank which evidences said credit accommodation, a copy of which is attached hereto as Exhibit A (the "Note"), --------- shall be deemed modified as of the date this letter is acknowledged by Borrower to reflect the new maturity date set forth above. All other terms and conditions of the note remain in full force and effect, without waiver or modification. Borrower acknowledges that Bank has not committed to make any renewal of further extension of the maturity date of the above-described credit accommodation beyond the new maturity date specified herein, and that any such renewal of further extension remains in the sole discretion of Bank. This letter constitutes the entire agreement between Bank and Borrower with respect to the maturity date extension for the above-described credit accommodation, and supersedes all prior negotiations, discussions and correspondence concerning said extension. Please acknowledge your acceptance of the terms and conditions contained herein by dating and signing one copy below and returning it to my attention at the above address on or before September 15, 1997. Very truly yours, WELLS FARGO BANK, NATIONAL ASSOCIATION SUCCESSOR- BY-MERGER TO FIRST INTERSTATE BANK OF CALIFORNIA By: /s/ Richard Madsen ---------------------- RICHARD MADSEN Vice President Acknowledged and accepted as of September 1, 1997 SOUTHWEST WATER COMPANY By: /s/Daniel N. Evans ------------------ DANIEL N. EVANS Title: Vice President Finance ---------------------- By: /s/Peter J. Moerbeek -------------------- PETER J. MOERBEEK Title: Secretary ---------