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 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.
Hawaii Water Service, a subsidiary of California Water Service Group (CWT), has completed the acquisition of Kalaeloa Water Company from Hunt Companies Inc., expanding its service area in Kapolei, Honolulu. This utility serves a 3,700-acre area formerly known as Barbers Point Naval Air Station. The company aims to maintain reliable water and wastewater services for residential and commercial customers in the region. CEO Martin Kropelnicki expressed commitment to delivering high-quality utility services to Kalaeloa residents.
California Water Service (CWT) announced plans to acquire the wastewater system assets of Gunner Ranch Inc., serving southern Madera County, including Valley Children’s Hospital. The acquisition will enable the new Gunner Ranch West system to support a planned development of 2,840 residential units and commercial facilities. Expected to close by early 2021, this strategic move signifies Cal Water's expansion in the growing Madera County region, ensuring reliable wastewater services for local communities.
The California Water Service Group (NYSE: CWT) has announced the declaration of its 303rd consecutive quarterly dividend at $0.2125 per common share. This dividend is set to be paid on November 20, 2020, to shareholders on record by November 9, 2020. The group serves approximately 2 million customers across various states including California, Washington, New Mexico, and Hawaii. The company remains committed to providing water services while navigating potential risks such as regulatory changes and environmental standards.
California Water Service Group (NYSE: CWT) will release its third quarter 2020 earnings results on November 6, 2020, at 9:00 a.m. ET. The teleconference will follow at 11:00 a.m. ET, where stakeholders can dial in using 1-833-832-5130 or 1-509-844-0151, ID# 3858077. A replay of the call will be available until February 5, 2021. The company, serving nearly 2 million customers, operates under several brands across multiple states, emphasizing its essential role in providing water services.
California Water Service (CWT) received a proposed decision from the CPUC in its 2018 General Rate Case. If adopted on Nov. 19, 2020, it would validate a 2019 settlement and authorize CWT to invest $828 million for infrastructure upgrades. The proposal suggests a revenue increase of approximately $6.6 million in 2020, escalating to $20.9 million by 2022. The decision also allows CWT to retain certain balancing accounts. Management expresses gratitude for the ruling, emphasizing their commitment to delivering reliable water services while controlling costs.
California Water Service (CWT) has successfully completed the Palos Verdes Peninsula Water Reliability Project, marking the largest water infrastructure upgrade in its history. This extensive project involved over 15 years of planning and 7 miles of new pipeline installation, enhancing the reliability of water service for residents and firefighters. The upgrade includes a second pump station aimed at preventing service outages during natural disasters. Serving approximately 2 million people, CWT emphasizes the vital role of this project amid challenges like climate change and wildfires.
New Mexico Water Service, a subsidiary of California Water Service Group (CWT), has signed a purchase agreement to acquire the Morning Star Water System assets from Animas Valley Land and Water Co. This acquisition will provide regulated water service to approximately 2,000 customers in northwest New Mexico. The deal is pending court and regulatory approval and is expected to close in early 2021. Group's CEO, Martin A. Kropelnicki, expressed commitment to delivering high-quality water service to all customers.
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