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Sep 30, 2023
Cal Water Q3 2023 Earnings Report
California Water Service Group announced third quarter results impacted by delayed proposed decision from the CPUC on California Water Service Company’s pending 2021 general rate case.
Key Takeaways
California Water Service Group reported a decrease in net income and earnings per share for the third quarter of 2023 compared to the same period in 2022, primarily due to the delayed decision from the California Public Utilities Commission on California Water Service Company’s pending 2021 general rate case.
Net income attributable to Group was $34.4 million, compared to $55.9 million for the same quarter last year.
Diluted earnings per share were $0.60, down from $1.03 in the third quarter of 2022.
Operating revenue decreased by 4.3% to $255.0 million, mainly due to a decrease in Water Revenue Adjustment Mechanism and Modified Cost Balancing Account revenue.
Operating expenses increased by 5.0% to $211.5 million, driven by higher water production costs and other operations expenses.
Cal Water
Cal Water
Forward Guidance
The company is hopeful that meaningful progress will be made on the GRC before the end of the year.
Positive Outlook
- Appointment of a second judge on the GRC case is viewed as a promising development.
Challenges Ahead
- The delay in Cal Water’s GRC clearly had a temporary adverse impact on company results.