Exhibit 99.1


                    American States Water Company
            Confirms Change of Rating Outlook to Positive


    SAN DIMAS, Calif.--(BUSINESS WIRE)--Feb. 8, 2007--American States
Water Company (NYSE:AWR) today confirmed that Standard & Poor's
Ratings Services ("S&P") has affirmed the corporate ratings of 'A-'
for American States Water Company and its primary water utility
subsidiary, Golden State Water Company, and has also revised the
rating outlook for both, to positive from stable.

    According to S&P's February 7, 2007 press release, "The outlook
revision reflects improved regulatory treatment in California and the
expectation of consistently strong cash flow measures and declining
debt leverage." As further noted, "Additionally, the outlook assumes
adequate and timely rate relief, as well as that non-regulated
operations will remain modest in scale."

    S&P's corporate credit ratings range from AAA (highest rating
possible) to D (rating for default), reflecting S&P's opinion of a
company's overall capacity to meet its financial obligations. Credit
ratings are not recommendations to purchase, sell or hold a security
and are subject to change or withdrawal at any time by the rating
agency.

    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
254,000 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 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
             Senior Vice President, Chief Financial Officer,
             Treasurer and Corporate Secretary
             (909) 394-3600, extension 647