We had a strong quarter with consolidated earnings of $0.54 per share versus $0.45 per share earned during the fourth quarter of 2019, a 20% increase.
For the year, we reported diluted earnings per share of $2.33 as compared to $2.28 reported for 2019 or $2.24 per share after excluding the $0.04 per share retroactive impact of the electric general rate case decision from 2019 related to the full year of 2018.
In 2020, American States Water achieved a consolidated return on equity of 13.9%.
During the year, we also filed a new Golden State Water Company general rate case for the years 2022 through 2024, continued our capital improvement work at our regulated utilities, continued to improve water and wastewater systems on the military bases we serve, raised the dividend by nearly 10% and reached 66 consecutive years of annual dividend increases.
We continue to invest in the reliability of our systems, spending $123.4 million in company-funded infrastructure at our regulated utilities during the year.
As Bob mentioned, consolidated diluted earnings for the quarter were $0.54 per share compared to $0.45 per share.
Again, a 20% increase over the same period last year.
Earnings at our water segment increased $0.04 per share for the quarter.
Earnings from the electric segment for the fourth quarter of 2020 were $0.07 per share as compared to $0.05 per share recorded for same period in 2019.
Earnings from the contracted services segment were $0.17 per share as compared to $0.12 per share for the fourth quarter of '19.
Consolidated revenue for the three months ended December 31, 2020, increased by approximately $11.2 million as compared to the same period in 2019.
Turning to Slide 11, our water and electric supply costs were $24.1 million for the quarter, an increase of $900,000 from the same period last year.
Looking at total operating expenses excluding supply costs, consolidated expenses increased approximately $5.8 million versus the fourth quarter of 2019, mostly due to an increase in construction costs at ASUS as a result of the higher construction activity and property and other taxes, partially offset by lower maintenance expenses resulting from timing differences and a decrease in outside service costs.
Other income and expense for the fourth quarter of 2020 was a net expense of $2.1 million, which was $1.8 million lower in the same period of last year due to lower interest rate, as well as an increase in gains generated on investments held in the trust to fund a retirement benefit plan.
Consolidated earnings for 2020 were $2.33 per share as compared to $2.28 per share for 2019.
And as a result, the cumulative retroactive earnings impact related to 2018 of $0.04 per share was recorded as part of 2019's results.
Excluding this retroactive impact, consolidated earnings for 2020 increased $0.09 per share as compared to $2.24 per share for 2019 as adjusted.
Earnings from the water segment increased by $0.05 per share as compared to 2019, mostly due to new water rates as result of the full second-year step increase effective January 1, 2020, which added $10.4 million in water gross margins for 2020.
Moving on to the electric segment, earnings were $0.05 per share higher than in 2019 after excluding the retroactive impact for 2018 from the 2019 CPUC final decision.
For both 2020 and 2019, diluted earnings from contracted services were $0.47 per share, excluding a retroactive price adjustment of $0.01 per share recorded in 2019 related to period prior to 2019.
Earnings from the contracted services segment for 2020 increased by $0.01 per share, largely due to an increase in management fee and construction revenue and also overall lower operating expenses, partially offset by higher construction costs.
AWR parent's earnings decreased $0.01 per share compared to 2019 due to higher state unitary taxes recorded at the parent level.
Net cash provided by operating activities were $122.2 million as compared to $116.9 million in 2019.
The increase was primarily due to the refunding of $7.2 million to customers in 2019 related to the Tax Cuts and Jobs Act with no similar refund in 2020 and an increase in water customer usage.
As Bob mentioned, our regulated utility invested $123.4 million in company-funded capital projects in 2020.
We expect to invest $120 million to $135 million in 2021.
These new rates are expected to generate an additional $11.1 million of water gross margin.
Golden State Water requested capital budgets in this application of approximately $450.6 million for the three-year rate cycle and another $11.4 million of capital projects to be filed for revenue recovery through advice letters when those projects are completed.
This final decision, among other things, removes the continued use of the WRAM and MCBA by California water utilities in any general rate case application filed after the August 27, 2020, effective date of this decision.
The weighted average water rate base has grown from $752.2 million in 2018 to $980.4 million in 2021, a compound annual growth rate of 9.2%.
After adjusting the 2019 financial results for the $0.01 per share retroactive earnings impact related to periods prior to 2019 that Eva discussed earlier, ASUS's earnings contribution for 2020 increased by $0.01 per share as compared to 2019.
During 2020, the U.S. government awarded ASUS $15.5 million in new construction projects for completion in 2020 and 2021.
In light of our continued uncertainty associated with the effects of COVID-19, we reaffirm our projection that ASUS will contribute $0.45 to $0.49 per share for 2021.
In 2020, we increased the annual dividend by 9.8% to $1.34 per share.
American States Water Company has paid dividends to shareholders every year since 1931, increasing the dividends received by shareholders each calendar year for 66 consecutive years, which places it in an exclusive group of companies on the New York Stock Exchange that have achieved that result.
On February 02, our Board of Directors approved a quarterly dividend of $0.335 per share.
As a reminder, our dividend policy is to achieve a compound annual growth rate in the dividend of more than 7% over the long term.

Summary:
We had a strong quarter with consolidated earnings of $0.54 per share versus $0.45 per share earned during the fourth quarter of 2019, a 20% increase.
As Bob mentioned, consolidated diluted earnings for the quarter were $0.54 per share compared to $0.45 per share.