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 (CWT) has officially activated Stage 2 of its Water Shortage Contingency Plan across all districts, including Antelope Valley and Salinas, in response to severe drought conditions. This plan, aligning with Governor Newsom's emergency regulations, imposes watering limits and increased penalties for water waste. Customers are urged to conserve water, with restrictions now allowing landscape irrigation only two days a week. Cal Water offers various conservation programs, including rebates for water-efficient appliances and landscaping changes, to support customers in reducing consumption.
California Water Service (CWT) received approval from the California Public Utilities Commission to acquire Skylonda Mutual Water Company's assets. The acquisition, expected to close later this year, will enable CWT to serve Skylonda's 176 customer connections from its adjacent Bear Gulch District, which currently serves approximately 60,900 residents. Post-acquisition, CWT plans to enhance Skylonda's infrastructure and improve water supply reliability across interconnected areas, benefiting both customers and emergency services.
California Water Service has secured nearly $2.4 million in grants from the State Department of Water Resources to support water supply reliability projects in drought-affected areas. The funds will enhance systems in Kernville, Coast Springs, and Tulco, benefiting approximately 2,053 service connections. Key projects include a new water intake facility and storage tanks to improve reliability and fire protection, aiming for minimal impact on customers' water bills.
California Water Service Group (NYSE: CWT) reported a net income of $1.1 million, translating to diluted earnings per share of $0.02 for Q1 2022, reversing a net loss of $3.0 million in Q1 2021. The increase was propelled by rate hikes and prior year acquisitions, despite higher expenses in wages, depreciation, and interest. Operating revenue climbed 17.1% to $173 million, while total operating expenses rose 13.2% to $163.9 million. The company anticipates further regulatory approvals for its capital programs and ongoing investments in infrastructure.
The California Water Service Group (NYSE: CWT) has declared its 309th consecutive quarterly dividend of $0.25 per common share. This dividend will be payable on May 20, 2022, to stockholders of record on May 9, 2022. The company provides water and wastewater services to over 2 million people across several states, including California, Hawaii, New Mexico, Texas, and Washington. CWT is committed to maintaining consistent dividend payments, which reflects its financial stability and commitment to shareholders.
Hawaii Water Service, a subsidiary of California Water Service Group (CWT), has signed an agreement to acquire Kukui’ula South Shore Community Services (KSSCS) in Kauai, Hawaii. This acquisition is subject to approval by the Hawaii Public Utilities Commission. KSSCS currently serves around 440 customers but can expand to 1,500 connections as the Kukui’ula Resort develops over the next 20 years. Hawaii Water aims to enhance service quality and community support, anticipating a seamless integration of KSSCS operations.
California Water Service Group (NYSE: CWT) has successfully acquired Animas Valley Land and Water, integrating its Morningstar Water System to enhance services for approximately 2,000 customers in northwestern New Mexico. A community welcome event is scheduled for May 5, 2022, allowing customers to familiarize themselves with the new utility services. Group President and CEO, Martin A. Kropelnicki, expressed eagerness to begin providing quality services and acknowledged the regulatory approvals from the New Mexico Public Regulation Commission.
The California Water Service Group (NYSE: CWT) has released its 2021 Environmental, Social, and Governance (ESG) Report, titled “Enhancing the Quality of Life: Today & Tomorrow.” The report outlines key achievements, including the adoption of four ESG-related policies, development of a climate change strategy, and the construction of a hydro-turbine system in Hawaii to generate sustainable electricity. Additionally, the company launched a wastewater treatment plant in California and proposed new rate designs aimed at supporting infrastructure investments. The report emphasizes the company's commitment to delivering quality and value to stakeholders.
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