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) has been recognized as one of the "World's Most Trustworthy Companies" by Newsweek for the second consecutive year. The utility was among only five water utilities honored in the energy and utilities category, which included 57 companies. The 2024 list features 1,000 companies across 23 industries and 20 countries, selected from stock exchange-listed firms with annual revenues exceeding $500 million USD.
The ranking was based on feedback from over 70,000 participants and a social listening analysis of more than 995,000 company mentions. Group Chairman & CEO Martin A. Kropelnicki expressed pride in the company's commitment to trustworthiness and service to stakeholders. This recognition follows Group's inclusion in Newsweek's "America's Most Trustworthy Companies" list in March 2024.
California Water Service (Cal Water) has launched its sixth annual Firefighter Grant Program, inviting professional and volunteer fire departments in its service areas to apply for funding. This initiative, part of Cal Water's commitment to supporting local first responders, aims to offset costs for fire protection efforts, equipment, training, and education. Since 2019, the program has provided over $854,000 in grants to local fire departments.
Last year's grants ranged from $5,400 to $36,900, funding essential equipment such as ballistic helmets, thermal imaging cameras, and rescue equipment. The application period for the 2024 cycle is open through September, with recipients to be notified in late fall. This program is funded by California Water Service Group's stockholder-funded philanthropic giving program and does not affect customer rates.
California Water Service Group (NYSE: CWT) has been named a Great Place to Work® for the ninth consecutive year by the Great Place to Work® Institute. This certification is based on employee feedback and includes a Culture Audit© and Trust Index©. The company has focused on enhancing employee engagement through increased communications, in-person events, and a new at-risk pay program. This program allows participating employees to share in the company's success when certain performance metrics are achieved, including safety, water quality, and customer service.
Martin A. Kropelnicki, Group Chairman and CEO, emphasized the company's commitment to supporting its employees, which in turn enables them to better serve customers and communities. California Water Service Group serves over 2 million people and encourages job seekers to explore career opportunities with the company.
California Water Service Group (NYSE: CWT) has been named a Top Workplace in the Bay Area for the 12th year by the San Francisco Chronicle. This recognition is based on employee feedback from Cal Water, the Group's largest subsidiary. The company has implemented several initiatives to enhance the employee experience, including:
- Improved communication and feedback channels
- An at-risk pay program tied to company success
- Competitive compensation and benefits
- Opportunities for growth
- Emotional wellness resources
Cal Water employs nearly 400 people in the Bay Area, serving about 393,500 people through 125,000 customer connections across various districts. Statewide, the company serves over 2 million people through 497,700 customer connections.
California Water Service Group (NYSE: CWT) reported Q2 2024 earnings with diluted EPS of $0.70, up from $0.17 in Q2 2023. Key highlights include:
- Operating revenue increased to $244.3 million, up $50.3 million from Q2 2023
- Net income rose to $40.6 million, compared to $9.6 million in Q2 2023
- $214.4 million invested in water system infrastructure in H1 2024
- Filed 2024 General Rate Case with California Public Utilities Commission
- Proposed Low-Use Water Equity Program to assist low-income customers
- S&P Global affirmed A+ Stable credit rating for California Water Service Company
The company benefited from the 2021 California General Rate Case decision and plans to invest $1.6 billion in California water systems from 2025-2027.
California Water Service Group (NYSE: CWT) has declared its 318th consecutive quarterly dividend of $0.28 per common share. The dividend will be payable on August 23, 2024 to stockholders of record as of the close of business on August 12, 2024. This announcement demonstrates the company's consistent commitment to providing returns to its shareholders.
CWT is the parent company of regulated utilities serving over 2.1 million people across five states: California, Hawaii, New Mexico, Washington, and Texas. The company provides both regulated and non-regulated water and wastewater services through its subsidiaries. This diverse portfolio and long-standing dividend history highlight CWT's stability in the utility sector.
A new study by the Alliance for Water Efficiency (AWE) reveals that California Water Service's (Cal Water) conservation efforts have reduced customer bills by up to 20.5% over the past 15 years. The study, titled 'The Economic Value of Efficiency for California Water Service: Lower Water Bills,' demonstrates how water efficiency measures have decreased operating costs, resulting in customer savings.
Key findings include:
- Conservation measures have enabled environmental benefits such as lower chemical use and reduced energy consumption
- Tiered rate structures, universal metering, and efficient plumbing standards have contributed to lower operating costs
- Without demand reduction since 2008-2009, bills would have been 1.2% to 20.5% higher across Cal Water's service areas
- Investments in water conservation directly benefit customers by slowing the increase in water service costs over time
California Water Service Group (NYSE: CWT) has scheduled the release of its 2024 second-quarter earnings results for August 1, 2024, at 9:00 a.m. ET. The earnings conference call will follow at 11:00 a.m. ET. Stockholders and interested investors can attend by dialing in or accessing a live audio webcast. The call will be hosted by top executives, including CEO Martin A. Kropelnicki and CFO James P. Lynch. A replay will be available starting at 2:00 p.m. ET on the same day until September 30, 2024. A slide presentation will be furnished on Cal Water's website prior to the call.
California Water Service (Cal Water), the largest subsidiary of California Water Service Group (NYSE: CWT), has filed its Infrastructure Improvement Plans for 2025-2027 with the California Public Utilities Commission (CPUC). The proposal includes a $1.6 billion investment in California water systems, with $1.3 billion allocated to new capital investments.
Key projects include replacing aging pipelines, water quality upgrades, infrastructure replacements, generators, solar installations, and security enhancements. The plan also features a Low-Use Water Equity Program aimed at decoupling revenue from water sales, intended to benefit low-use, low-income customers while promoting conservation.
Cal Water seeks to increase total revenue by $140.6 million (17.1%) in 2026, $74.2 million (7.7%) in 2027, and $83.6 million (8.1%) in 2028. These proposals will undergo an 18-month review by the CPUC, with new rates potentially effective from January 2026.
California Water Service (Cal Water) has welcomed the California Supreme Court's decision to uphold decoupling as a rate-making mechanism, which supports water conservation and protects customer interests. The ruling responded to the CPUC's August 2020 Low-Income Ratepayer Assistance Phase 1 Decision, stating CPUC failed to provide adequate notice before considering eliminating decoupling. This practice helps keep water rates affordable for low-water-using customers while ensuring financial stability for utilities. Cal Water, one of four utilities challenging CPUC's decision, sees this ruling as a victory for due process rights and effective water management.
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