Exhibit 99.1

                          American States Water Company
                  Announces Approval by CPUC of Rate Increases

    SAN DIMAS, Calif.--(BUSINESS WIRE)--Jan. 17, 2006--American States
Water Company (NYSE:AWR) announced that on January 12, 2006, the
California Public Utilities Commission ("CPUC") approved General Rate
Case increases for the Region III service area of its Golden State
Water Company ("GSWC") unit. The authorized rate increases, effective
January 18, 2006, will provide GSWC additional annual revenue
approximating $5,351,700 in 2006 based on a return on equity of 9.8%.
    For the second and the third year of this three-year General Rate
Case, the CPUC approved an annual increase of approximately $1,878,400
and $2,333,700, respectively, subject to certain earnings tests. The
Company is in the process of evaluating any other impact to its
financial statements resulting from this decision.
    Certain matters discussed in this news release with regard to the
Company's expectations may be forward-looking statements that involve
risks and uncertainties. The assumptions and risk factors that could
cause actual results to differ materially, include those described in
the Company's Form 10-Q and Form 10-K filed with the Securities and
Exchange Commission.
    American States Water Company is the parent of Golden State Water
Company, American States Utility Services, Inc. and Chaparral City
Water Company. Through its subsidiaries, AWR provides water service to
1 out of 30 Californians located within 75 communities throughout 10
counties in Northern, Coastal and Southern California (approximately
252,800 customers) and to approximately 13,000 customers in the city
of Fountain Hills, Arizona and a small portion of Scottsdale, Arizona.
The Company also distributes electricity to approximately 23,000
customers in the Big Bear recreational area of California. Through its
non-regulated subsidiary, American States Utility Services, the
Company contracts with various municipalities, the U.S. government and
private entities to provide various services, including billing and
meter reading, water marketing and operation and maintenance of water
and wastewater systems.


    CONTACT: American States Water Company
             Robert J. Sprowls, 909-394-3600, ext. 647