San Dimas-based American States Water Co. on Aug. 5 reported better than expected earnings in the second quarter, thanks to state approval of higher rates for its water utility subsidiary and the payoff from a major military base facilities contract.

The utility subsidiary, Golden State Water Co., received approval from the California Public Utilities Commission in May for its rate case, allowing it to retroactively raise water rates and increase its gross margin for this year by $7 million. That added 16 cents per share to earnings compared to last year, which comprised the major portion of American States’ 28 cent per share jump in earnings to 72 cents, which beat analyst estimates by 10 cents.

Meanwhile, American States’ unregulated contracted services subsidiary, which constructs and manages water facilities on U.S. military bases, saw revenue increase by $7 million to $29 million, and earnings per share double to 12 cents. These increases were due to work beginning last summer on a 50-year water facilities construction and management contract at the U.S. Army’s Fort Riley base in Kansas and the upward negotiation of some management fee contracts at other bases.