Welcome to our dedicated page for California Water Service news (Ticker: CWT), a resource for investors and traders seeking the latest updates and insights on California Water Service stock.
California Water Service (Cal Water), a subsidiary of the California Water Service Group, is the largest investor-owned American water utility west of the Mississippi River. Founded in 1926 and headquartered in San Jose, California, Cal Water serves over 472,000 customers across 28 customer and operations centers in the state. The company is dedicated to the production, treatment, storage, distribution, and sale of water for residential, commercial, and industrial use.
Cal Water operates through regulated and unregulated businesses spread across California, New Mexico, Washington, Hawaii, and Texas. Its regulated utilities provide essential water services to millions, ensuring safe and reliable water supply, while unregulated subsidiaries offer utility services to private companies and municipalities.
Recent notable achievements include the assignment of a $1.21 billion investment from 2021 through 2024 for water infrastructure projects. This investment aims to enhance the reliability and safety of water services, addressing critical needs such as wildfire hardening and water supply reliability. Additionally, the California Public Utilities Commission (CPUC) recently approved a progressive rate design to benefit low-income customers and promote water conservation.
Financially, Cal Water faced challenges in 2023 due to regulatory delays affecting rate decisions. However, the company remains resilient with strong liquidity, having $85 million in cash and substantial short-term borrowing capacity. Despite a slight decrease in operating revenue in 2023, Cal Water managed to positively impact net income through increased income tax benefits and net other income.
Cal Water is also proactive in meeting environmental regulations, particularly concerning per- and polyfluoroalkyl substances (PFAS). The company has committed $215 million to PFAS treatment, ensuring compliance with new federal water quality standards. Additionally, the company has taken legal action against PFAS manufacturers to mitigate financial burdens on its customers.
The company’s community impact extends beyond water services. Cal Water secured $83 million to assist customers with past-due balances incurred during the COVID-19 pandemic, demonstrating a commitment to customer support during challenging times.
Cal Water's commitment to sustainability is evident in their recent ESG initiatives, targeting a 63% reduction in Scope 1 and Scope 2 greenhouse gas emissions by 2035. This aligns with global efforts to limit temperature increases and highlights Cal Water’s dedication to environmental responsibility.
California Water Service Group, trading on the New York Stock Exchange under the symbol CWT, remains a key player in the water utility industry, providing essential services and maintaining a focus on sustainability, infrastructure investment, and customer well-being.
California Water Service Group (NYSE: CWT) announced the appointment of Shawn C. Bunting as Vice President, General Counsel, and Corporate Secretary, effective March 1, 2023. He succeeds Lynne P. McGhee, who is retiring after over 19 years. Bunting has nearly 15 years of experience at American Water Works Company, where he held roles including Senior Vice President and led a team of attorneys. His legal expertise in the regulated utility sector is expected to benefit California Water. The company emphasizes its commitment to quality service and sustainability for over 2 million customers across multiple states.
New Mexico Water Service, a subsidiary of California Water Service Group (CWT), has signed an agreement to acquire the assets of Lake Section Water Company in Chapparal, N.M. This purchase, pending regulatory approval, will establish New Mexico Water as the largest investor-owned water utility in New Mexico, expanding its service to approximately 16,000 connections. The acquisition encompasses a customer base of 5,000 connections located about 110 miles from its existing Elephant Butte system. This transaction continues Group's trend of growth, with over 42,000 connections added since 2019.
The California Water Service Group (NYSE: CWT) has announced an increase in its annual dividend by $0.04, marking a 4.0% rise from $1.00 to $1.04 per share. This increase reflects the company's commitment to returning value to its shareholders, representing the 56th consecutive annual dividend increase. The next quarterly dividend of $0.26 will be paid on February 17, 2023, to stockholders recorded by February 6, 2023. California Water Service Group serves over 2 million customers across multiple states, including California and Texas, as a utility holding company.
California Water Service (CWT) reports a significant achievement in water conservation, with customers reducing water use by 16.5% in December 2022 compared to December 2020, exceeding the state's 15% conservation target. This marks the eighth consecutive month of water savings, with 11 districts achieving reductions above 15%. Top performers include Westlake at 46% and Los Altos at 37.3%. Despite recent wet conditions, CWT emphasizes the importance of ongoing conservation efforts due to unpredictable weather patterns. The company also promotes incentives for water-efficient appliances and landscaping modifications to maintain sustainable practices.
California Water Service Group (CWT) has launched its 10th annual College Scholarship Program, offering $80,000 in awards for students in its service areas across California, Hawaii, New Mexico, and Washington. The program includes four $10,000 grand-prize scholarships and additional awards ranging from $2,500 to $5,000. Eligible applicants must be enrolling in a full-time undergraduate program for the 2023-24 academic year, with selection based on academic achievement, community service, and financial need. This initiative is part of CWT's stockholder-funded philanthropic giving, totaling $600,000 awarded since inception. The application deadline is March 30, 2023.
California Water Service (Cal Water) reported a continued trend in water conservation among its customers with a 13.6% reduction in water use in November compared to November 2020, marking the seventh consecutive month of decreased usage. Notably, 13 districts exceeded 15% reductions, with Westlake achieving the highest at 36.8%. President and CEO Martin A. Kropelnicki emphasized the importance of ongoing conservation efforts, especially during wetter months. Historical data shows significant reductions as well, indicating a strong commitment to water savings across the state.
Hawaii Water Service has acquired Keauhou Community Services, Inc.'s wastewater assets, following approval from the Hawaii Public Utilities Commission. The acquisition, impacting around 1,500 customer-equivalent units, enhances Hawaii Water's service assurance and infrastructure investment. California Water Service also received approval to acquire King’s Mountain Park Mutual Water Company’s assets, serving 23 residential connections. Both acquisitions aim to ensure reliable utility services, with future benefits expected in operational efficiency and community support.
California Water Service has received grant funding from the California Department of Water Resources to enhance water access for disadvantaged communities in Tulare County. The funding includes $3.45 million to connect 50 homes in West Goshen with the existing water system, addressing failing wells and water quality issues. An additional $535,000 grant will extend services to 25 customers along Harrison Road. Construction is projected to start in 2023 and conclude by the end of 2024, promoting access to safe and clean water amidst climate challenges.
California Water Service Group (NYSE: CWT) announced the promotions of Thomas A. Scanlon to Corporate Controller and Principal Accounting Officer, and Justin B. Skarb to Vice President, Government & Community Affairs, effective January 1, 2023. Scanlon brings over 25 years of experience in financial management, having served as Director of Financial Reporting since 2010. Skarb, with a background in government relations since 2009, has significantly contributed to the company's community engagement. Both promotions were highlighted by President and CEO Martin A. Kropelnicki as vital for the leadership team.
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