California Water Service Group Files Proposal to Invest $828.5 Million in its California Water Systems Between 2019 and 2021
July 03 2018 - 6:30PM
As part of its commitment to provide a reliable supply of
high-quality water to the communities it serves, California Water
Service (Cal Water)—the largest subsidiary of California Water
Service Group (NYSE:CWT)—yesterday submitted infrastructure
improvement plans in all of its California districts for years
2019-2021 in its General Rate Case (GRC) filing with the California
Public Utilities Commission (Commission). The Commission will
evaluate the infrastructure improvement plans along with operating
budgets to establish water rates that reflect the actual cost of
service.
More than half of Cal Water’s proposed $828.5 million of
infrastructure improvements relate to its transmission and
distribution pipeline replacement program, and all are necessary to
enhance reliability, augment water supply, and upgrade aging water
system infrastructure, according to President and CEO Martin A.
Kropelnicki. The plans also reflect the utility’s aggressive
cost-control measures to reduce operating and administrative
costs.
“Since our founding in 1926, we have focused on being a good
steward of the environment and prudently investing in our water
systems. This enables us to continue delivering a safe, reliable,
and high-quality water supply for both our customers’ everyday
needs and sufficient for emergency response by firefighters and
other first responders,” Kropelnicki said. “Our triennial
infrastructure improvement plan submission, the key element of our
California GRC, is scrutinized by an independent state agency
before it determines our approved projects and rates, and allows us
to fulfill our promise to provide quality, service, and value."
The required filing begins an approximately 18-month review
process, with any changes in customer rates expected to become
effective in 2020. Cal Water has proposed to the Commission to
increase revenues by $51.0 million, or 7.7%, in 2020; $29.8
million, or 4.2%, in 2021; and $31.4 million, or 4.2%, in 2022 as
compared to the last authorized revenue. In 75% of Cal
Water’s service areas, the utility is proposing infrastructure
improvements that will cost the typical residential customer less
than $5 per month, and in 90% of service areas, the proposed
increase is less than $6 per month.
“We are committed to doing everything we can to maintain
affordability while delivering the safe and reliable service our
customers and firefighters need,” Kropelnicki said.
California Water Service Group is the parent company of
California Water Service, Washington Water Service, New Mexico
Water Service, Hawaii Water Service, CWS Utility Services, and HWS
Utility Services. Together, these companies employ 1,176 people who
provide regulated and non-regulated water service to more than 100
California, Washington, New Mexico, and Hawaii communities.
The company’s common stock trades on the New York Stock Exchange
under the symbol “CWT.” More information is available at
www.calwatergroup.com.
This news release contains forward-looking statements within the
meaning established by the Private Securities Litigation Reform Act
of 1995 ("Act"). The forward-looking statements are intended to
qualify under provisions of the federal securities laws for "safe
harbor" treatment established by the Act. Forward-looking
statements are based on currently available information,
expectations, estimates, assumptions and projections, and
management's judgment about the Company, the water utility industry
and general economic conditions. Such words as would, expects,
intends, plans, believes, estimates, assumes, anticipates,
projects, predicts, forecasts or variations of such words or
similar expressions are intended to identify forward-looking
statements. The forward-looking statements are not guarantees of
future performance. They are subject to uncertainty and changes in
circumstances. Actual results may vary materially from what is
contained in a forward-looking statement. Factors that may cause a
result different than expected or anticipated include, but are not
limited to: governmental and regulatory commissions' decisions;
consequences of eminent domain actions relating to our water
systems; changes in regulatory commissions' policies and
procedures; the timeliness of regulatory commissions' actions
concerning rate relief; inability to renew leases to operate city
water systems on beneficial terms; changes in California State
Water Resources Control Board water quality standards; changes in
environmental compliance and water quality requirements; electric
power interruptions; changes in customer water use patterns and the
effects of conservation; the impact of weather and climate on water
availability, water sales and operating results; the unknown impact
of contagious diseases on the Company's operations; civil
disturbances or terrorist threats or acts, or apprehension about
the possible future occurrences of acts of this type; labor
relations matters as we negotiate with the unions; restrictive
covenants in or changes to the credit ratings on our current or
future debt that could increase our financing costs or affect our
ability to borrow, make payments on debt or pay dividends; and,
other risks and unforeseen events. When considering forward-looking
statements, you should keep in mind the cautionary statements
included in this paragraph, as well as the annual 10-K, Quarterly
10-Q, and other reports filed from time-to-time with the Securities
and Exchange Commission (SEC). The Company assumes no obligation to
provide public updates of forward-looking statements.
Contact: |
Yvonne
Kingman (310) 257-1434 |
California Water Service (NYSE:CWT)
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