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 (CWT) announced the recipients of its 8th annual college scholarship program on June 17, 2021. The Group awarded $80,000 in total to 12 deserving students for the 2021-2022 academic year. Out of over 300 applicants, selections were based on academic achievement, community service, and financial need, with one-third being first-generation college attendees. The scholarship program has awarded $520,000 to date, funded entirely by shareholders as part of its philanthropic efforts.
California Water Service (CWT) filed its updated Water Shortage Contingency Plan with the California Public Utilities Commission, enhancing its drought management efforts. Currently in Stage 1 of the plan, the company has implemented penalties for various prohibited water uses, including excessive outdoor watering and vehicle washing without proper devices. To promote conservation, Cal Water doubled rebate amounts for high-efficiency devices and offers free conservation kits. The company emphasizes voluntary customer participation while monitoring for potential further actions as conditions evolve.
Hawaii Water Service, a subsidiary of California Water Service Group (CWT), has agreed to acquire HOH Utilities Company, enhancing its presence on the island of Kauai. This acquisition involves the wastewater utility serving about 1,800 customers in the Poipu/Koloa area. The deal is pending approval from the Hawaii Public Utilities Commission. Hawaii Water aims to provide the same quality service to the new customers as it does with its existing customer base of nearly 6,000 across multiple Hawaiian islands.
California Water Service Group (CWT) announced the election of Dr. Yvonne A. Maldonado to its Board of Directors during the Annual Stockholder Meeting on May 26, 2021. Dr. Maldonado, a prominent pediatric infectious diseases epidemiologist and professor at Stanford University, brings extensive expertise in infectious disease control. Her insights are expected to enhance the company's strategic direction, particularly in health-related governance. Group Chairman Peter C. Nelson expressed confidence that Dr. Maldonado's diverse background will be invaluable for the company and its stakeholders.
Students Proved Greywater can be Used to Solve Water Conservation Problems for Winning Entry
On May 12, 2021, a fifth- and sixth-grade class from Munsey Elementary in Bakersfield, California, won the grand prize of $3,500 in the 2021 Cal Water H2O Challenge for their project titled “Greywater: It’s Not Grey, It’s Blue.” The challenge encourages students to develop solutions for local water issues, particularly relevant in Kern County, which is facing drought. Students engaged with local experts, conducted various experiments, and created a website to spread awareness of greywater's potential in water conservation.
California Water Service encourages conservation efforts following the addition of 39 counties to the drought emergency declaration by Governor Newsom, impacting 12 of its districts. To combat potential water shortages, Cal Water is implementing a range of initiatives, including infrastructure upgrades, leak repairs, and the development of 30-year master plans. They offer rebates on high-efficiency appliances and free conservation kits to assist customers. The company serves approximately 2 million residents through 492,600 connections, emphasizing customer partnership in water conservation efforts.
Texas Water Service Enters into Strategic Partnership
California Water Service Group's Texas subsidiary, TWSC, Inc., has acquired a majority stake in BVRT Utility Holding Company, enhancing its presence in Texas. BVRT operates four wastewater utilities serving over 2,500 connections with potential growth to more than 61,000 connections. This partnership aims to leverage BVRT's strategic relationships to expand wastewater services in rapidly growing areas near Austin and San Antonio. Investment will focus on infrastructure development, aiming for future acquisitions within BVRT’s portfolio.
California Water Service Group's subsidiary, Hawaii Water Service, has completed the acquisition of Kapalua Water Company and Kapalua Waste Treatment Company from Maui Land & Pineapple Company. This acquisition allows Hawaii Water to serve 1,000 customer connections in the Kapalua, Maui resort area, enhancing their infrastructure and service quality. The company aims to maintain reliable water and wastewater services, committing to high standards and customer satisfaction. This strategic expansion supports Hawaii Water's growth in the region.
California Water Service Group (CWT) received a Silver Stevie® Award for its outstanding response during the COVID-19 pandemic. The award, given by the American Business Awards®, recognized the company for its extensive support to employees and communities. Actions included providing essential resources, additional time off, personal protective equipment, bill forgiveness for struggling customers, and significant community donations. The award underscores the company's commitment to prioritizing health and safety over profits. CWT serves over 2 million customers across multiple states.
California Water Service Group (CWT) reported a net loss of $3.0 million ($0.06 per share) for Q1 2021, a significant improvement from a net loss of $20.3 million ($0.42 per share) in Q1 2020. This reduction is credited to the resolution of its 2018 General Rate Case, which issued rate increases totaling $6.4 million. Operating revenue rose by 17.7% to $147.7 million, driven by regulatory mechanisms and accrued unbilled revenue. However, operating expenses also increased by 9.3%. The company maintains $84.4 million in cash and is set to invest $270-$300 million in infrastructure this year.
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