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Sep 30, 2024
Cal Water Q3 2024 Earnings Report
Financial results were in line with expectations, as Group continued to benefit from the effects of the 2021 California General Rate Case decision.
Key Takeaways
California Water Service Group reported solid financial results for the third quarter of 2024, benefiting from the 2021 California General Rate Case decision. The company invested $117.8 million in infrastructure and received several awards for water conservation, emergency response, and workplace leadership.
Financial results were in line with expectations, benefiting from the 2021 California General Rate Case decision.
Invested $117.8 million in infrastructure during the third quarter.
Earned a WaterSense Excellence Award for conservation from the EPA.
Recognized as a Great Place to Work and one of the World’s Most Trustworthy Companies.
Cal Water
Cal Water
Forward Guidance
Cal Water proposes to invest more than $1.6 billion in its districts from 2025-2027. Cal Water proposes to adjust rates to increase total revenue by $140.6 million, or 17.1%, in 2026; $74.2 million, or 7.7%, in 2027; and $83.6 million, or 8.1%, in 2028.
Positive Outlook
- Proposed investment of more than $1.6 billion in districts from 2025-2027.
- Aims to provide a reliable supply of high-quality water.
- Enhance sustainability through infrastructure improvements.
- Proposes a Low-Use Water Equity Program.
- Filed advice letters pertaining to the IRMA, the 2023 MWRAM, and the 2023 Incremental Cost Balancing Account (“ICBA”).
Challenges Ahead
- Rate adjustments proposed to increase total revenue by 17.1% in 2026.
- Rate adjustments proposed to increase total revenue by 7.7% in 2027.
- Rate adjustments proposed to increase total revenue by 8.1% in 2028.
- The triennial filing begins an approximately 18-month review process by the CPUC.
- Anticipates recovering approximately $94.2 million in cash, primarily derived from the IRMA, MWRAM, and ICBA.