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.
On March 14, 2023, California Water Service Group's subsidiary, Washington Water Service, announced the acquisition of Bethel Greenacres Water Association's water system assets, following WUTC approval in February 2023. The acquisition includes 200 residential customer connections in Graham, Washington, adjacent to Washington Water’s East Pierce system. Since September 2022, Washington Water has been operating the Bethel Greenacres system under an agreement. The company plans to invest in the system to ensure reliable water service for daily and emergency needs. Martin A. Kropelnicki highlighted the commitment to providing quality service and value to the new customers.
California Water Service Group (CWT) reported a net income of $96.0 million for 2022, down from $101.1 million in 2021, with diluted earnings per share at $1.77, down from $1.96. The decrease was attributed to an $11.0 million drop in unrealized gains and increased financing costs of $1.1 million. Operating revenue rose $55.5 million to $846.4 million, mainly due to rate increases. However, total operating expenses surged 8.2% to $718.8 million. Fourth-quarter results showed a significant profit increase to $19.6 million from $3.5 million year-over-year, driven primarily by accrued unbilled revenue adjustments.
California Water Service (Cal Water) reported a 9.5% reduction in water usage among its customers for January 2023 compared to January 2020, marking nine months of consecutive savings. Notably, five districts achieved over 15% savings, with Westlake leading at 47.8%. Despite recent heavy rains, the company emphasizes ongoing conservation efforts due to the Governor's Executive Order and active Stage 2 of its Water Shortage Contingency Plan. Cal Water serves approximately 2 million people and is committed to sustainable practices, having been recognized as one of “America’s Most Responsible Companies” by Newsweek.
California Water Service (CWT) has been granted a ruling by the California Public Utilities Commission (CPUC) to implement modified interim rates starting April 15, 2023. This allows a 4% rate increase across most districts, which is crucial for funding necessary infrastructure improvements. The ruling aims to mitigate future surcharges that may arise from delayed decisions regarding the company's General Rate Case (GRC). CWT emphasizes the positive impact of inflation considerations in this decision, which helps balance the financial needs of both the utility and its customers.
California Water Service Group (NYSE: CWT) will release its fourth quarter and year-end 2022 earnings results on March 1, 2023. A conference call for stockholders and investors is scheduled for March 2, 2023, at 11:00 a.m. ET. Interested participants can join by dialing 1-800-715-9871 or 1-646-307-1963 and entering ID# 3437186. The call will feature company executives, including President and CEO Martin A. Kropelnicki, and a slide presentation will be available on its website prior to the call. A replay of the call will be accessible from March 2, 2023, through May 1, 2023.
California Water Service (Cal Water) has partnered with Promise to provide customizable, interest-free payment plans for residential customers with past-due water bills. This new program allows customers to avoid water service interruptions by managing their debts more flexibly. The PromisePay portal offers various payment options and plan management features, enhancing customer convenience. CEO Martin A. Kropelnicki emphasized the company's commitment to affordable water service. The initiative aims to empower residents financially, making it easier to settle outstanding balances and maintain access to essential water services.
California Water Service Group (NYSE: CWT) announced the appointment of Shawn C. Bunting as Vice President, General Counsel, and Corporate Secretary, effective March 1, 2023. He succeeds Lynne P. McGhee, who is retiring after over 19 years. Bunting has nearly 15 years of experience at American Water Works Company, where he held roles including Senior Vice President and led a team of attorneys. His legal expertise in the regulated utility sector is expected to benefit California Water. The company emphasizes its commitment to quality service and sustainability for over 2 million customers across multiple states.
New Mexico Water Service, a subsidiary of California Water Service Group (CWT), has signed an agreement to acquire the assets of Lake Section Water Company in Chapparal, N.M. This purchase, pending regulatory approval, will establish New Mexico Water as the largest investor-owned water utility in New Mexico, expanding its service to approximately 16,000 connections. The acquisition encompasses a customer base of 5,000 connections located about 110 miles from its existing Elephant Butte system. This transaction continues Group's trend of growth, with over 42,000 connections added since 2019.
The California Water Service Group (NYSE: CWT) has announced an increase in its annual dividend by $0.04, marking a 4.0% rise from $1.00 to $1.04 per share. This increase reflects the company's commitment to returning value to its shareholders, representing the 56th consecutive annual dividend increase. The next quarterly dividend of $0.26 will be paid on February 17, 2023, to stockholders recorded by February 6, 2023. California Water Service Group serves over 2 million customers across multiple states, including California and Texas, as a utility holding company.
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