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 has secured a $4.23 million grant from the Water Replenishment District to fund treatment equipment for removing PFOS and PFOA contaminants from groundwater in East Los Angeles. The treatment plant, operational since January 2022, aims to restore vital water supplies. Although no maximum contaminant levels are set for PFOS or PFOA, the utility proactively tests water sources and has temporarily taken some offline for treatment. Cal Water has also filed a lawsuit against PFOS and PFOA manufacturers to prevent cost burdens on customers.
California Water Service Group (CWT) reported a net income of $19.5 million, or $0.36 per diluted share, for Q2 2022, down from $38.2 million or $0.75 per diluted share in Q2 2021. This decrease of $18.7 million was primarily driven by a $15.2 million drop in accrued unbilled revenue and a $6.2 million decline in unrealized gains on investments. Operating revenue fell 3.3% to $206.2 million, influenced by a $15.2 million decrease in accrued unbilled revenue. Despite challenges, the company completed acquisitions and secured $2.4 million in grants for infrastructure improvements.
California Water Service Group (NYSE:CWT) announced agreements to acquire water system assets from two utilities: King’s Mountain Park Mutual Water Company and Bethel Green Acres Water Association. The acquisitions aim to enhance service in existing districts, with King’s Mountain serving 23 connections in the Bay Area, and Bethel Green Acres serving around 200 connections in Washington. Both acquisitions are pending regulatory approval, and the company expresses commitment to providing quality service to new customers.
On July 27, 2022, California Water Service Group (NYSE: CWT) declared its 310th consecutive quarterly dividend of $0.25 per share, payable on August 19, 2022, to stockholders on record by August 8, 2022. Earnings results will be announced on July 28, 2022, at 9 AM ET, followed by a conference call at 11 AM ET. The company serves over 2 million customers across several states, including California and Texas. Stockholder participation is encouraged via dial-in or live audio webcast.
California Water Service Group (NYSE: CWT) announced its second quarter 2022 earnings results will be released on July 28, 2022, at 9:00 a.m. ET, followed by a conference call at 11:00 a.m. ET. Updated dial-in information for attendees has been provided due to a vendor change. Investors can access the call via phone or through a live webcast. A replay will be available from 2:00 p.m. ET on the same day until September 28, 2022. The call will feature executives including CEO Martin A. Kropelnicki.
California Water Service has launched its fourth annual Firefighter Grant Program, inviting fire departments in its service areas to apply for funding. The program, initiated in 2019, has grown significantly, distributing $175,000 in grants in 2021 alone. Grants range from $7,500 to $38,000 for essential equipment like hoses and safety tools. The program aims to enhance community safety and support firefighters' efforts. Interested parties can apply until September 2, 2022, and the grant recipients will be announced later in September.
California Water Service Group (CWT) has awarded $80,000 in scholarships to students in California, Hawaii, New Mexico, and Washington for the 2022-2023 academic year. Over 300 applicants vied for the scholarships, which are based on academic achievement, community service, and financial need. To date, the Group has distributed $600,000 through its scholarship program. Notable winners include students attending Yale, Columbia, and Princeton. The next scholarship cycle opens in spring 2023, with eligibility for students residing in the Group's service areas.
California Water Service Group (NYSE: CWT) announced that it will release its second quarter 2022 earnings on July 28, 2022, at 9:00 a.m. ET, followed by a conference call at 11:00 a.m. ET. Interested investors can join the call by dialing 1-833-832-5130, or access it via a live audio webcast. A replay of the call will be available from 2:00 p.m. ET on the same day until September 28, 2022. The call will feature key executives including CEO Martin A. Kropelnicki and CFO Thomas F. Smegal.
Hawaii Water Service has received approval from the Hawaii Public Utilities Commission to acquire HOH Utilities, LLC, enhancing its operations on Kauai. HOH Utilities, serving nearly 1,800 customers in the Poipu and Koloa regions, includes various residential and commercial properties. The acquisition is subject to customary closing conditions. Hawaii Water, a subsidiary of California Water Service Group, currently serves 6,000 customers across multiple Hawaiian islands, providing essential utility services. This strategic move is expected to expand Hawaii Water's market presence and service offerings.
California Water Service Group (NYSE:CWT) announced the acquisition of Railyard Utility’s wastewater system, now named Spanish Trail Utility, through its subsidiary Texas Water Service and BVRT Utility Holding Company. This acquisition expands their service to 345 customers in the Austin area, with potential for an additional 150 customers as development occurs. The CEO emphasized a commitment to quality and reliable service in Texas amidst future growth opportunities.
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