California Water Service Group: A Strong Finish to 2024

California Water Service Group (CWT) has reported a robust finish to 2024, with impressive financial results that reflect the company's commitment to sustainable water and wastewater services. The company's strong operational and financial performance demonstrates the team's exceptional execution of its business strategy, as highlighted by Chairman and CEO Martin A. Kropelnicki.



In 2024, CWT's operating revenue reached $1.037 billion, a significant increase from the $794.6 million reported in 2023. This growth can be attributed to several key factors, including increased rates, the Monterey-style Water Revenue Adjustment Mechanism (MWRAM), and interim rate relief related to the 2021 California GRC decision. The company's record capital investment of $471.0 million in water system infrastructure also contributed to its strong performance, as these investments aim to provide a safe and sustainable water supply to customers.

CWT's diluted earnings per share (EPS) for 2024 stood at $3.25, a substantial improvement from the $0.91 reported in 2023. This increase in EPS reflects the company's ability to generate value for shareholders through its strategic investments and operational excellence.

One notable achievement for CWT in 2024 was the authorization from the California Public Utilities Commission (CPUC) to postpone the 2025 Cost of Capital Application to May 1, 2026. This decision allows the company to maintain its current return on equity of 10.27% plus or minus any changes from the Water Cost of Capital Mechanism (WCCM). This stability in the company's allowed return on equity provides CWT with the financial flexibility to plan and invest in its water system infrastructure, ultimately contributing to its long-term growth and sustainability.

CWT's timely progress on its 2024 General Rate Case and Infrastructure Improvement Plan (GRC) filing, including the issuance of the Scoping Memo and Ruling in November 2024, demonstrates the company's commitment to working collaboratively with the CPUC to advance this rate case to a timely decision. This proactive approach to regulatory compliance ensures that CWT remains in compliance with all relevant regulations and continues to provide safe, clean water to its customers.

In conclusion, California Water Service Group's strong finish to 2024 reflects the company's dedication to sustainable water and wastewater services, as well as its commitment to investing in its water system infrastructure. With a record capital investment of $471.0 million and a stable return on equity, CWT is well-positioned to continue its growth trajectory in 2025 and beyond. As the company enters the new year, it remains focused on working together with the CPUC to advance its rate case and maintain its position as a leading provider of sustainable water and wastewater services.