American States Water Co. shares fell 4 percent Wednesday after the utility operator said it would sell 1 million shares to repay short-term debt.

The San Dimas company, which has not yet priced the shares, said it also may sell an additional 150,000 shares to cover any over-allotments.

American States Water Co. owns Golden State Water Co., American States Utility Services Inc. and Chaparral City Water Co., which serve customers in California and parts of Arizona.

American States Water closed down $1.42, or 4 percent, to $32.05 on the New York Stock Exchange.