American States, IOUs Target Military Water Contracts

1 Aug 2016
Available with corporate subscription

Bluefield analyzes investor-owned utility strategies in US water markets

On 12 July 2016, American States Utility Services (ASUS), American States Water’s wholly-owned subsidiary, was awarded a US$510 million military services contract with the U.S. Air Force. The contract is for the ownership, operation, and maintenance of water distribution and wastewater collection systems at Eglin Air Force Base in Florida.

The 50-year contract is the result of a competitive acquisition with six responses received by the Defense Logistics Agency‘s energy unit. Eglin Air Force Base is located in northwest Florida and is the largest Air Force installation in the continental United States in terms of land area. The facility hosts 9,800 military, civilian, and contractor personnel. ASUS already serves nine other U.S. military installations including facilities at Fort Bragg, North Carolina, and Fort Bliss, Texas.

In this Research Note, Bluefield water experts analyze the impact of this market development on America States’ strategy as well as competing IOUs such as American Water.

For more in-depth analysis of investor-owned utility strategies in US water markets, see Bluefield’s new report: US Private Water Utilities, Market Trends, Strategies and Opportunities, 2016. Follow this link for additional insights available to US & Canada Private Water Insight clients.

Bluefield Takeaways

  • New contract further increases American States’ military position
  • Market-based business bolsters income for American States
  • American States, American Water vie for military service contract business