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 the launch of the seventh annual Cal Water H2O Challenge, encouraging K-12 students to engage in water conservation projects. This year's initiative incorporates distance learning and offers resources like expert Teacher Ambassadors and virtual meetings. Participants are tasked with identifying and developing solutions for local water issues over four to eight weeks. The winning classroom will receive $3,500, and each student will earn a $1,000 scholarship. The project aims to enhance science education and community connection.
California Water Service (CWT) has received the Division Best Paper award from the American Water Works Association (AWWA) for its collaboration with San Jose State University. The award recognizes their article, “Spatiotemporal and Deterioration Assessment of Water Main Failures,” highlighting significant findings that aid water utilities in understanding water main failures. This partnership, established in 2015, aims at improving operational decision-making in the water sector. Cal Water serves approximately 2 million people in California and has been operating since 1926.
Hawaii Water Service, a subsidiary of California Water Service Group (CWT), has reached an agreement to acquire the wastewater system assets of Keauhou Community Services, Inc. (KCSI). This deal will enable Hawaii Water to offer wastewater services to over 1,500 customers in the Keauhou region, including several commercial entities and local parks. The acquisition is pending due diligence and approval from the Hawaii Public Utilities Commission. Hawaii Water has been managing the Keauhou system since 2018 and aims to enhance local infrastructure for improved service reliability.
California Water Service Group (NYSE: CWT) has announced the promotion of Michael B. Luu to Vice President, Information Technology and Chief Risk Officer, effective January 1, 2021. Luu, who has been with the company since 1999, will oversee IT, cyber security, and emergency preparedness. Previously serving as Vice President of Customer Service and Chief Information Officer, Luu's experience includes roles that enhance the company's focus on safety and security for customers and shareholders. This strategic move reflects the Group's commitment to risk management.
California Water Service Group (CWT) has announced the promotion of Shannon C. Dean to Vice President, Customer Service and Chief Citizenship Officer, effective January 1, 2021. Dean will manage various functions, including water sustainability and corporate social responsibility (CSR). She has held multiple roles since joining the company in 1991 and has been a VP since 2015. The promotion highlights CWT's commitment to improving customer experience and CSR initiatives, aligning with their Environmental, Social, and Governance (ESG) framework.
California Water Service Group (CWT) announced the promotion of Michelle R. Mortensen to Vice President and Corporate Secretary, effective January 1, 2021. Mortensen, who has been with the company since 2008 and served as Corporate Secretary since 2015, will oversee internal audit and stock administration while aiding the Board of Directors. Her extensive experience in accounting, finance, and regulatory compliance positions her as a strong fit for this role. CWT provides water service to over 2 million customers across multiple states.
California Water Service Group (CWT) announced the promotion of Michael S. Mares, Jr. to Vice President, Operations, effective January 1, 2021. Mares, who has been with the company for nearly three decades, will oversee operations in California, Hawaii, New Mexico, and Washington. His extensive experience includes previous roles as Local Manager in Hawaii and District Manager in Bakersfield. CEO Martin A. Kropelnicki affirmed that Mares's leadership will enhance operational efficiency and ensure reliable water supply for over 2 million customers.
The California Public Utilities Commission (CPUC) has approved California Water Service's (CWT) 2018 General Rate Case and Infrastructure Improvement Plan. This decision allows CWT to invest $828 million to enhance water infrastructure and permits a revenue increase of $4.4 million for 2020 and up to $20.9 million in 2021, contingent on CPUC's escalation earnings test. The approval also supports the continuation of decoupling balancing accounts through 2022. CWT aims to provide reliable water service to nearly 2 million customers in California.
California Water Service Group (NYSE: CWT) announced a Q3 2020 net income of $96.4 million ($1.94 per diluted share), a significant increase from $42.4 million ($0.88 per diluted share) in Q3 2019. This growth is attributed to interim rate recovery and regulatory assets from the California 2018 General Rate Case. Total operating revenues rose to $304.1 million from $232.5 million, while operating expenses increased by 9.4% to $198.0 million. Liquidity remains strong with $113.3 million in cash. The proposed decision from the CPUC could further enhance regulatory conditions.
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