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) announced compliance with the State Water Resources Control Board's draft maximum contaminant level (MCL) for chromium-6 set at 10 parts per billion (ppb). The utility has treated affected groundwater sources in Dixon, Salinas, and Willows since 2014, ensuring water quality for its customers. Despite the absence of an MCL for several years, CWT continued treatment due to public health concerns. The State Board plans a formal rulemaking process after the public comment period ends on April 29, 2022. CWT also recycles the chromium removed during treatment.
New Mexico Water Service, a subsidiary of California Water Service Group (CWT), has announced an agreement to acquire Monterey Water Company, located in Valencia County, N.M. This transaction, pending regulatory approval, will integrate Monterey Water into New Mexico Water's existing Rio Del Oro water system, enhancing service to approximately 380 residential customers. Additionally, the acquisition includes about 100 undeveloped lots for future service. New Mexico Water aims to maintain high-quality service standards for its customers.
California Water Service Group (CWT) donated $2.19 million to community organizations in 2021, exceeding its 2020 contributions by $500,000. The donations focused on at-risk communities (38%), community improvements (11%), and environmental sustainability (10%). Notable contributions included $200,000 each to the Monterey Bay National Marine Sanctuary Foundation, Chico Housing Action Team, and Boys & Girls Clubs of Greater Sacramento. Additionally, an employee donation-matching program supported local charities, generating $14,200. These contributions are part of a philanthropic program and do not affect customer rates.
California Water Service Group (NYSE: CWT) reported a net income of $101.1 million and diluted earnings per share of $1.96 for 2021, up from $96.8 million or $1.97 per share in 2020. Key growth drivers included rate increases of $14 million and a reduction in operating tax expenses of $8.6 million. However, total operating revenue decreased to $790.9 million, affected by $11.7 million in deferred revenue. The company increased its dividend by 8.7% amid challenges from drought conditions and supply chain issues.
California Water Service Group (CWT) has received regulatory approval from the New Mexico Public Regulation Commission to acquire the Morningstar Water System from Animas Valley Land and Water, LLC. This acquisition will extend New Mexico Water Service's reach to 2,000 customers in the northwest region of the state, enhancing its service offerings. The deal is expected to close in the first half of 2022, pending final approval from the San Juan County Court. Group President and CEO Martin A. Kropelnicki expressed optimism about the integration and service enhancement for new customers.
Washington Water Service, a subsidiary of California Water Service Group, has signed an agreement to acquire the water utility assets of Driftwood Valley Association, which serves 62 customers in Yelm, Washington. This acquisition is pending customary closing conditions and approval from the Washington Utilities and Transportation Commission. The deal will also enable Washington Water to serve potential new customers as 21 empty lots are developed. Group's President and CEO highlighted the commitment to quality service for Driftwood Valley residents.
California Water Service Group (CWT) announced the acquisition of the Hi Mesa Water System in New Mexico through its subsidiary, New Mexico Water Service. The New Mexico Public Regulation Commission approved the purchase, allowing operations to start immediately. The Hi Mesa Water System serves approximately 85 customer connections in Los Lunas, N.M., and integrates into the existing Meadow Lake system, which serves around 16,000 residents across various regions. This acquisition aims to enhance service and infrastructure in the area.
California Water Service Group (NYSE: CWT) will announce its fourth quarter and year-end 2022 earnings results on February 24, 2022, at 9:00 a.m. ET, followed by a conference call at 11:00 a.m. ET. Investors and stakeholders can join via phone or access the audio webcast on the company's website. The call features key executives, including CEO Martin A. Kropelnicki and CFO Thomas F. Smegal. A replay will be available after the call. The company serves over 2 million people across multiple states.
California Water Service Group's subsidiary, New Mexico Water Service, has received approval from the New Mexico Public Regulation Commission to acquire Valencia Mesa, LLC, known as the Hi Mesa water system. This acquisition will extend regulated water utility services to approximately 85 customer connections in unincorporated Valencia County. The transaction is expected to close by the end of 2021, contingent upon the fulfillment of conditions outlined in the purchase agreement. CEO Martin A. Kropelnicki expressed appreciation for the regulatory review process and anticipates continued quality service for Hi Mesa customers.
California Water Service has applied for and secured $20.8 million from the California Water and Wastewater Arrearage Payment Program to assist customers facing financial hardship due to pandemic-related past-due water bills.
Administered by the State Water Resources Control Board, these funds will be credited to affected customers' accounts within two months. This initiative, part of the American Rescue Plan Act, aims to support customers struggling since March 2020. Additionally, Cal Water offers payment plans and assistance programs to further help customers manage their bills.
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