California Public Utilities Commission Adopts Decision on California Water Service’s 2021 General Rate Case and Infrastructure Improvement Plan
11 März 2024 - 2:00PM
The California Public Utilities Commission (CPUC) issued a decision
on March 7, 2024 on the 2021 General Rate Case and Infrastructure
Improvement Plan for California Water Service (Cal Water), the
largest subsidiary of California Water Service Group (NYSE: CWT).
The decision marks the end of an extensive review of the utility’s
water system improvement plans, costs, and rates.
The decision adopts a revised version of the alternate proposed
decision issued January 24, 2024, and increases adopted revenues
for 2023 by approximately $39.2 million, plus an inflation factor
yet to be determined, retroactive to January 1, 2023. It also
increases revenues by up to approximately $32.2 million for 2024
and $31.7 million for 2025, subject to the CPUC’s escalation
earnings test and inflationary adjustments.
Importantly, the decision authorizes Cal Water to invest
approximately $1.21 billion from 2021 through 2024 in water system
infrastructure projects that are needed to continue providing safe,
reliable water service to customers throughout California. This
includes approximately $160 million of infrastructure projects that
may be submitted for recovery via the CPUC’s advice letter
process.
The CPUC’s decision approves a progressive rate design that is
intended to provide budget stability while benefiting low-income
and low-water-using customers by significantly decreasing the cost
of the first units of water consumed and increasing the percentage
of fixed costs that are recovered in the service charge.
“I am proud of our track record of prioritizing infrastructure
projects that we believe are most critical to achieving our
mission. From 2021 through 2023, we completed more than 85% of the
projects previously approved by the CPUC, deferring the remaining
projects in order to complete higher-priority projects such as
wildfire hardening and water supply-reliability projects. In total,
the Company spent nearly 100% of its approved capital budget. I’m
pleased that the decision authorizes us to continue investing
responsibly in our infrastructure,” said Chairman, President &
Chief Executive Officer Martin A. Kropelnicki.
“I was most encouraged by the Commissioners’ comments
acknowledging the need to improve the timeliness of their
decisions, both those related to General Rate Cases and advice
letter projects,” he said. “With this decision behind us, we will
continue preparing our next General Rate Case and Infrastructure
Improvement Plan, which we are scheduled to file in July 2024.”
About California Water Service Group
California Water Service Group is the parent company of
regulated utilities California Water Service, Hawaii Water Service,
New Mexico Water Service, and Washington Water Service, as well as
Texas Water Service, a utility holding company. Together, these
companies provide regulated and non-regulated water and wastewater
service to more than 2.1 million people in California, Hawaii, New
Mexico, Washington, and Texas. California Water Service Group’s
common stock trades on the New York Stock Exchange under the symbol
“CWT.” Additional information is available online at
www.calwatergroup.com.
This news release contains forward-looking statements within the
meaning established by the Private Securities Litigation Reform Act
of 1995 (PSLRA). The forward-looking statements are intended to
qualify under provisions of the federal securities laws for "safe
harbor" treatment established by the PSLRA. Forward-looking
statements in this news release are based on currently available
information, expectations, estimates, assumptions and projections,
and our management's beliefs, assumptions, judgments and
expectations about us, the water utility industry and general
economic conditions. These statements are not statements of
historical fact. When used in our document, statements that are not
historical in nature, including words like will, would, expects,
intends, plans, believes, may, could, estimates, assumes,
anticipates, projects, progress, predicts, hopes, targets,
forecasts, should, seeks or variations of these words or similar
expressions are intended to identify forward-looking statements.
Examples of forward-looking statements in this news release
include, but are not limited to, statements describing Cal Water’s
expected increases in revenue in 2024 and 2025, intentions to seek
recovery for capital expenditures and impacts of the CPUC’s
decision on Cal Water’s 2021 General Rate Case. Forward-looking
statements are not guarantees of future performance. They are based
on numerous assumptions that we believe are reasonable but are
subject to uncertainty and risks. Actual results may vary
materially from what is contained in a forward-looking statement.
Factors that may cause actual results to be different than those
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 outcome and
timeliness of regulatory commissions' actions concerning rate
relief and other actions; changes in water quality standards;
changes in environmental compliance and water quality requirements;
electric power interruptions; the impact of opposition to rate
increases; our ability to recover costs; availability of water
supplies; issues with the implementation, maintenance or security
of our information technology systems; civil disturbances or
terrorist threats or acts; the adequacy of our efforts to mitigate
physical and cyber security risks and threats; the ability of our
enterprise risk management processes to identify or address risks
adequately; changes in customer water use patterns and the effects
of conservation; the impact of weather, climate change, natural
disasters, and actual or threatened public health emergencies; the
impact of market conditions and volatility on unrealized gains or
losses on our operating results; risks associated with expanding
our business and operations geographically; and other risks and
unforeseen events described in our SEC filings. In light of these
risks, uncertainties and assumptions, investors are cautioned not
to place undue reliance on forward-looking statements, which speak
only as of the date of this news release. When considering
forward-looking statements, you should keep in mind the cautionary
statements included in this paragraph, as well as in our Annual
10-K, Quarterly 10-Q’s, and other reports filed from time-to-time
with the Securities and Exchange Commission (SEC). We are not under
any obligation, and we expressly disclaim any obligation to update
or alter any forward-looking statements, whether as a result of new
information, future events or otherwise.
Media Contact
Shannon Deansdean@calwater.com408-367-8243
California Water Service (NYSE:CWT)
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