Exhibit 99.1

                    American States Water Company
      Announces Proposed CPUC Decision to Approve Rate Increases

    SAN DIMAS, Calif.--(BUSINESS WIRE)--Nov. 1, 2007--American States
Water Company (NYSE:AWR) announced that on October 26, 2007 the
California Public Utilities Commission ("CPUC") issued a proposed
decision to approve rate increases for the Region II water service
area of its Golden State Water Company ("GSWC") unit. The written
version of the decision that the CPUC approved on October 18, 2007
contained a number of errors. A proposed decision that corrects the
errors will be placed on the agenda for the CPUC to approve on
November 16, 2007.

    Due to delays in issuing a decision on this application, the CPUC
had previously approved an interim rate increase totaling $1.2 million
that became effective January 1, 2007. Based on the proposed decision
issued by the CPUC on October 26, 2007, the final approved revenue
increase for 2007 would total approximately $6.7 million, which is
retroactive to January 1, 2007. The proposed decision authorizes GSWC
to track the difference between the interim rates and the final rates
approved by the CPUC and to recover the difference via a temporary
surcharge. This unbilled revenue covers the period from January 1,
2007 thru the implementation of the new final rates to be approved on
November 16, 2007.

    The proposed decision also changes the revenue requirement related
to the adopted rates for the supply cost memorandum accounts that will
also be retroactive to January 1, 2007. Accordingly, GSWC will
re-calculate, among other items, the amount recorded in Region II's
supply cost memorandum account based on the new rates. For the six
months ended June 30, 2007, an amount of $1.3 million was recorded as
an under-collection of supply costs which positively impacted earnings
and increased regulatory assets for the period. We expect the amount
of this under-collection to increase for the nine months ended
September 30, 2007. We expect most of the under-collected amount as
recorded to be reversed, partially offsetting the retroactive revenues
to be recorded in the fourth quarter. Based on the proposed decision,
the estimated rate increases for Region II are $4.6 million and $4.3
million for 2008 and 2009, respectively, subject to an earnings test.

    Additionally, the proposed decision also reflects rate increases
of $3.3 million for 2007 to recover general office expenses allocated
to Region III. Similar to Region II, the CPUC had previously approved
an interim rate increase for Region III, totaling $135,000 which
became effective January 1, 2007. GSWC will implement a temporary
surcharge to recover the revenue difference between the interim rates
implemented on January 1, 2007 and the final rates authorized by the
CPUC for the period from January 1 to the implementation of the final
rates to be approved on November 16, 2007.

    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
255,000 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