California Water Service Group
1720 North First Street
San Jose, California 95112-4598
(408) 367-8200
www.calwatergroup.com
NYSE: CWT
California Water Service Group
Investing for Life
The Stockholder
California Water Service Group (NYSE: CWT) is the second largest
investor-owned water utility in the United States, providing high-quality
water utility services to approximately 2 million people in 100 communities
through six subsidiaries: California Water Service Company (Cal Water),
Hawaii Water Service Company, Inc. (Hawaii Water), New Mexico
Water Service Company (New Mexico Water), Washington Water
Service Company (Washington Water), CWS Utility Services (CWSUS),
and HWS Utility Services, L.L.C. (HWSUS). Cal Water, Hawaii Water,
New Mexico Water, and Washington Water provide regulated water
utility services, while CWSUS and HWSUS conduct the Company’s
non-regulated business, which includes providing billing, water quality
testing, and water system operations and management services to cities
and other companies.
Stock Transfer, Dividend Disbursing, and Reinvestment Agent
American Stock Transfer & Trust Company
57 Maiden Lane
New York, NY 10038
(800) 937-5449
To Transfer Stock
A change of ownership of shares (such as when stock is sold or gifted or when owners are deleted from or added to
stock certificates) requires a transfer of stock. To transfer stock, the owner must complete the assignment on the back
of the certificate and sign it exactly as his or her name appears on the front. This signature must be guaranteed by
an eligible guarantor institution (banks, stock brokers, savings and loan associations, and credit unions with member-
ship in approved signature medallion programs) pursuant to SEC Rule 17Ad -15. A notary’s acknowledgement is not
acceptable. This certificate should then be sent to American Stock Transfer & Trust Company by registered or
certified mail with complete transfer instructions. Alternatively, effective January 1, 2008, California Water Service
Group is participating in the Direct Registration System, which allows electronic share transactions between the
stockholder’s broker or dealer and American Stock Transfer & Trust Company.
Bond Registrar
US Bank Trust, N.A.
One California Street
San Francisco, CA 94111-5402
(415) 273-4580
Annual Meeting
The Annual Meeting of Stockholders will be held on Tuesday, May 27, 2008 at 9:30 a.m. at the company’s
Executive Office, located at 1720 North First Street in San Jose, California. Details of the business to be trans-
acted during the meeting will be contained in the proxy material, which will be mailed to stockholders on or about
April 11, 2008.
Dividend Dates For 2008
Quarter Declaration Record Date Payment Date
First January 23 February 4 February 15
Second April 23 May 5 May 16
Third July 23 August 4 August 16
Fourth October 22 November 3 November 14
Annual Report For 2007 On Form 10-K
A copy of the company’s report for 2007 filed with the Securities and Exchange Commission (SEC) on Form 10-K
will be available in April 2008 and can be obtained by any stockholder at no charge upon written request to the
address below. The company’s filings with the SEC can be viewed via the link to the SEC’s EDGAR system on the
company’s web site.
Executive Office and Stockholder Information
California Water Service Group
Attn: Stockholder Relations
1720 North First Street
San Jose, CA 95112-4598
(408) 367-8200 or (800) 750-8200
www.calwatergroup.com
It was a good year.
1 investing for life
Financial Highlights
Year ended December 31 2007 2006 2005 2004 2003
Market price at year-end $ 37.02 $ 40.40 $ 38.23 $ 37.65 $ 27.40
Book value 18.66 18.31 15.98 15.66 14.44
Earnings per share (diluted) 1.50 1.34 1.47 1.46 1.21
Dividends per share 1.160 1.150 1.140 1.130 1.125
Revenue* 367,082 334,717 320,728 315,567 277,128
Net income* 31,159 25,580 27,223 26,026 19,417
*Dollars in thousands
Contents
Letter to Stockholders 4
20-Year Return on Investment 10
Service Area Maps 17
Eight -Year Financial Review 26
Board of Directors 28
Corporate Officers 30
Company Information 31
3 investing for life
To Our Stockholders
k
Investing for life. It’s what we do when we invest in our water
systems. It’s what you do when you invest in California Water
Service Group (NYSE: CWT).
The pipelines that connect us to the 2 million people we
serve are tangible, but the intangible connection that links
our customers, our employees, and our stockholders is no
less real. In a fire, a homeowner relies on the firefighter who
connects the hose to our hydrant. That firefighter relies on our
employees, who ensure that the hydrant operates as it should.
Our employees, in turn, rely on our stockholders, who make
the investments that enable us to maintain and upgrade the
water system that supplies that hydrant.
So what rewards do we reap by investing for life?
4 investing for life
Peter C. Nelson
President and Chief Executive Officer
Robert W. Foy
Chairman of the Board
Five -Year
Dividend Growth
1.125
1.130
1.140
1.150
1.160
03
04
05
06
07
CWT 20 -Year Total Return on Investment
(On stock purchased December 31, 1987, with dividends reinvested)
$$$800
$700
$600
$500
$400
$300
$200
$100
$0
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
10 investing for life
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
11 investing for life
Five -Year
Book Value
14.44
15.66
15.98
18.31
18.66
03
04
05
06
07
Five -Year
Net Utility Plant
(Dollars in thousands)
759,498
800,305
862,731
941,475
1,010,196
03
04
05
06
07
Hawaii
Operations & Customer Centers
Kaanapali • Pukalani • Waimea • Waikoloa
2006 500*
2007 700*
Regulated Customer Connections
Locations of pending regulated & non-regulated acquisitions.
Service area includes Kaanapali on Maui.
* Includes several large resorts and condominium complexes.
Does not include pending acquisitions.
17 investing for life
Washington
Operations & Customer Centers
Olympia (S.W. Regional Office) • Gig Harbor (N.W. Regional Office)
Sequim • Issaquah • Orcas Island
2006 15,400
2007 15,800
Regulated Customer Connections
Service areas located in the counties of
Clallam, Jefferson, Kitsap, Mason, Pierce, King, San Juan, and Thurston.
18 investing for life
Additionally, in December, we formed a non-regulated
subsidiary, HWS Utility Services, L.L.C., in order to acquire
the non-regulated operations and maintenance contracts
from Waimea-based Island Utility Services on the island of
Hawaii, which we expect to close in April 2008. We selected
Terry S. Tamble, formerly manager of one of our largest
districts in California, to assume leadership of Hawaii
Water Service Company as General Manager, effective
February 2008.
Service and Quality
Our work with regulatory agencies and efforts to grow would
be fruitless without our reputation for providing excellent
customer service and high-quality water. In 2007, we continued
our Continuous Improvement approach to the business,
which involves every single employee in developing and
implementing projects that improve service or increase
efficiency. We also began offering a no-fee credit card payment
option to customers and arranged for Home Service USA
to provide an expanded and enhanced Extended Service
19 investing for life
California
Districts
Antelope Valley • Bakersfield • Bear Gulch • Chico • Dixon •
Dominguez • East Los Angeles • Hawthorne • Hermosa-Redondo •
Kern River Valley • King City • Livermore • Los Altos •
Marysville • Mid-Peninsula • Oroville • Palos Verdes •
Redwood Valley • Salinas • Selma • South San Francisco •
Stockton • Visalia • Westlake • Willows
2006 460,900
2007 463,600
Regulated Customer Connections
20 investing for life
California Districts & Communities 2007 2006
Antelope Valley • Fremont Valley, Lake Hughes, Lancaster & Leona Valley 1,400 1,400
Bakersfield 65,400 64,900
Bear Gulch • Atherton, Woodside, Portola Valley & portions of Menlo Park 18,000 18,000
Chico • Hamilton City 27,300 26,900
Dixon 2,900 2,900
Dominguez • Carson and portions of Compton, Harbor City, Long Beach,
Los Angeles County & Torrance 33,700 33,700
East Los Angeles • City of Commerce 27,800 27,800
Hawthorne 6,200 6,200
Hermosa-Redondo • Hermosa Beach, Redondo Beach & part of Torrance 26,300 26,200
Kern River Valley • Bodfish, Kernville, Lakeland, Mountain Shadows, Onyx,
Squirrel Valley, South Lake & Wofford Heights 4,300 4,300
King City 2,500 2,400
Livermore 18,200 18,200
Los Altos • Portions of Cupertino, Los Altos Hills, Mountain View & Sunnyvale 18,600 18,600
Marysville 3,800 3,800
Mid-Peninsula • San Mateo & San Carlos 36,100 36,100
Oroville 3,600 3,600
Palos Verdes • Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills
& Rolling Hills Estates 24,000 24,000
Redwood Valley • Lucerne & portions of Duncans Mills, Guerneville,
Dillon Beach, Noel Heights & Santa Rosa 2,000 2,000
Salinas 28,000 27,800
Selma 6,100 6,100
South San Francisco • Colma & Broadmoor 16,800 16,800
Stockton 42,200 42,100
Visalia 38,900 37,800
Westlake • Westlake Village & a portion of Thousand Oaks 7,100 7,000
Willows 2,400 2,300
21 investing for life
Protection program, an optional program that protects
residential customers if the water service line between
the meter and the home breaks. Behind the scenes, we
provided intensive training to all of our customer service
representatives, upgraded our data center, and completed
an evaluation of the security of customer data. With the
California Public Utilities Commission’s support, we now have
the opportunity to be even more proactive about support-
ing customer efforts to use water efficiently. In the coming
year and beyond, we intend to help our customers manage
their water bills and support them in their efforts to ensure
enough water for future generations.
Prudent Fiscal Management
Clearly, each of these four strategic areas is interrelated, and
all contribute to our financial strength. In 2007, we were
effective at controlling expenses and managing operating
costs. We also streamlined and improved our internal controls
to ensure compliance with all accounting and corporate
22 investing for life
New Mexico
Operations & Customer Centers
Elephant Butte • Belen • Cedar Crest
2006 7,100
2007 7,500
Regulated Customer Connections
Service areas located in the counties of Sierra,
Valencia, and Bernalillo.
23 investing for life
governance rules and regulations. Most importantly, we con-
tinued to invest diligently in our infrastructure. In 2007,
company-funded capital expenditures were $77 million; in
2008, we expect capital expenditures to exceed $85 million.
By building our financial strength, we provide value to stock-
holders; by providing value to stockholders, we attract the
capital needed to maintain and upgrade our infrastructure;
and by maintaining and upgrading our infrastructure, we
reliably provide life’s key ingredient to our customers and
communities. For California Water Service Group and our
stockholders, investing for life has its rewards.
Director Update
At the March 2008 meeting, the Board elected Edwin A. Guiles
as Director. Ed brings a wealth of utility business leadership
experience to the table, having begun his distinguished
career in the energy industry 36 years ago. He currently serves
as Executive Vice President of Corporate Development for
San Diego-based Sempra Energy, and he previously served as
24 investing for life
Chairman and CEO of Sempra Energy Utilities, San Diego
Gas & Electric, and Southern California Gas Company. We
know he will be an asset to our team and we welcome him to
California Water Service Group.
In closing, it is with great sadness that we report the passing
of recently retired Director David N. Kennedy, former director
of the California Department of Water Resources. He was a
great man, an outstanding board member, and an expert in
his field, and we will miss him greatly. We dedicate this report
to his memory.
On behalf of the entire Board, we thank you for your continued
investment in California Water Service Group and wish you
the very best in 2008.
Peter C. Nelson
President and Chief Executive Officer
Robert W. Foy
Chairman of the Board
25 investing for life
Eight -Year Financial Review
(Dollars in thousands, except common share data)
2007
2006
2005
2004
2003 2002
2001
2000
Summary of Operations
Operating revenue
Operating expenses
Interest expense, other income and expenses, net
Net income
$ 367,082 $334,717
322,912 294,411
14,726
$ 31,159 $ 25,580
13,011
$ 1.50 $ 1.34
1.150
86%
1.160
77%
Common Share Data
Earnings per share - diluted
Dividend declared
Dividend payout ratio
Book value
Market price at year-end 37.02
20,666
Common shares outstanding at year-end (in thousands)
8.1%
Return on average common stockholders’ equity
3.70
Long-term debt interest coverage
$ 18.66 $ 18.31
40.40
20,657
8.2%
3.17
Balance Sheet Data
Net utility plant $1,010,196 $941,475
Utility plant expenditures 101,343 112,279
1,184,499 1,165,019
Total assets
291,921 293,592
Long-term debt including current portion
Capitalization ratios:
56.9%
Common stockholders’ equity
Preferred stock 0.5%
Long-term debt 42.6%
56.0%
0.5%
43.5%
Other Data
Water production (million gallons) 141,238 132,414
487,600 483,893
Customers at year-end, including Hawthorne
4,892
3,662
New customers added
$692
$753
Revenue per customer
2,778
Utility plant per customer 2,968
869
891
Employees at year-end
26 investing for life
$320,728 $315,567 $ 277,128 $263,151 $246,820 $244,806
278,903 273,488 244,167 230,301 218,963 211,035
14,602
$ 27,223 $ 26,026 $ 19,417 $ 19,073 $ 14,965 $ 19,963
16,053 13,544 13,777
12,892 13,808
77%
1.130 1.125 1.120
$ 1.47 $ 1.46 $ 1.21 $ 1.25
1.140
78%
$ 15.98 $ 15.66 $ 14.44 $ 13.12
38.23
18,390
9.3%
3.61
18,367 16,932 15,182
37.65 27.40 23.65
2.78 2.73
93% 90%
9.1% 9.7%
3.38
9.8%
$ 0.97 $ 1.31
1.115
1.100
115%
84%
$ 12.95 $ 13.13
25.75 27.00
15,182 15,146
7.6%
10.1%
2.64
3.31
$862,731 $800,305 $759,498 $696,988 $624,342 $582,782
94,517
996,945 942,853 873,035 798,478 710,214 666,605
275,275 275,921 273,130 251,365 207,981 189,979
68,573 74,253 88,361
62,049 37,161
51.4%
0.6%
48.0%
50.8%
0.6%
48.6%
47.0% 44.0%
48.8%
0.7% 0.7%
0.9%
52.3% 55.3%
50.3%
51.1%
0.9%
48.0%
129,453 139,039 131,680 132,225 126,626 127,645
479,001 473,155 466,422 458,988 450,427 444,346
5,846
$670
2,578
840
6,733 7,434 8,561
2,418 2,313 2,182
$667 $594 $579
2,020 1,916
$552 $554
6,081 5,219
813 802
783
797
837
(Dollars in thousands, except common share data)
Summary of Operations
2007
2006
2005
2004
2003 2002
2001
2000
Operating revenue
$ 367,082 $334,717
Operating expenses
322,912 294,411
Interest expense, other income and expenses, net
13,011
14,726
Net income
$ 31,159 $ 25,580
$320,728 $315,567 $ 277,128 $263,151 $246,820 $244,806
278,903 273,488 244,167 230,301 218,963 211,035
14,602
12,892 13,808
$ 27,223 $ 26,026 $ 19,417 $ 19,073 $ 14,965 $ 19,963
16,053 13,544 13,777
Common Share Data
Earnings per share - diluted
$ 1.50 $ 1.34
Dividend declared
1.160
Dividend payout ratio
77%
Book value
$ 18.66 $ 18.31
Market price at year-end 37.02
Common shares outstanding at year-end (in thousands)
20,666
Return on average common stockholders’ equity
8.1%
Long-term debt interest coverage
3.70
1.150
86%
40.40
20,657
8.2%
3.17
$ 1.47 $ 1.46 $ 1.21 $ 1.25
1.130 1.125 1.120
1.140
93% 90%
77%
78%
$ 15.98 $ 15.66 $ 14.44 $ 13.12
37.65 27.40 23.65
38.23
18,367 16,932 15,182
18,390
9.1% 9.7%
9.8%
9.3%
2.78 2.73
3.38
3.61
$ 0.97 $ 1.31
1.100
1.115
84%
115%
$ 12.95 $ 13.13
25.75 27.00
15,182 15,146
10.1%
7.6%
3.31
2.64
Net utility plant $1,010,196 $941,475
Utility plant expenditures 101,343 112,279
Total assets
1,184,499 1,165,019
Long-term debt including current portion
291,921 293,592
$862,731 $800,305 $759,498 $696,988 $624,342 $582,782
94,517
62,049 37,161
996,945 942,853 873,035 798,478 710,214 666,605
275,275 275,921 273,130 251,365 207,981 189,979
68,573 74,253 88,361
Common stockholders’ equity
56.9%
Preferred stock 0.5%
Long-term debt 42.6%
56.0%
0.5%
43.5%
51.4%
0.6%
48.0%
50.8%
0.6%
48.6%
47.0% 44.0%
0.7% 0.7%
52.3% 55.3%
48.8%
0.9%
50.3%
51.1%
0.9%
48.0%
Balance Sheet Data
Capitalization ratios:
Other Data
Water production (million gallons) 141,238 132,414
Customers at year-end, including Hawthorne
487,600 483,893
New customers added
3,662
Revenue per customer
$753
Utility plant per customer 2,968
Employees at year-end
891
4,892
$692
2,778
869
129,453 139,039 131,680 132,225 126,626 127,645
479,001 473,155 466,422 458,988 450,427 444,346
6,081 5,219
5,846
$552 $554
$670
2,020 1,916
2,578
797
783
840
6,733 7,434 8,561
$667 $594 $579
2,418 2,313 2,182
813 802
837
27 investing for life
Board of Directors
Peter C. Nelson
President and Chief Executive Officer
Linda R. Meier
Member of the National Board of the
Institute of International Education
Douglas M. Brown
Former Treasurer, State of New Mexico
Richard P. Magnuson
Private Venture Capital Investor
28 investing for life
Robert W. Foy
Chairman of the Board
George A. Vera
Vice President and Chief Financial Officer,
The David and Lucile Packard Foundation
Bonnie G. Hill
President of B. Hill Enterprises, L.L.C.
Edward D. Harris, Jr., M.D.
Professor of Medicine, Emeritus,
Stanford University Medical Center
29 investing for life
Officers
California Water Service Company
Robert W. Foy 1,2,3
Chairman of the Board
Peter C. Nelson 1,2,3
Michael J. Rossi
Vice President, Engineering
and Water Quality
President and Chief Executive Officer
Thomas F. Smegal 4
Paul G. Ekstrom
Vice President, Customer Service
and Information Technology
Francis S. Ferraro 2, 4
Vice President, Corporate Development*
Robert R. Guzzetta 2
Vice President, Operations
Vice President, Regulatory Matters
and Corporate Relations*
Calvin L. Breed 1, 3
Controller, Assistant Secretary
and Assistant Treasurer
Lynne P. McGhee 1, 2, 3
Corporate Secretary and
Associate Corporate Counsel
Martin A. Kropelnicki 1, 2, 3
Washington Water Service Company
Vice President, Chief Financial Officer
and Treasurer
Christine L. McFarlane 3
Vice President, Human Resources
Michael P. Ireland
President
*Effective March 1, 2008
1 Holds the same position with California Water Service Group.
2 Also an officer of CWS Utility Services.
3 Also an officer of Washington Water Service Company, New Mexico Water Service Company, and Hawaii Water Service Company, Inc.
4 Holds the same position with New Mexico Water Service Company and Hawaii Water Service Company, Inc.
30 investing for life
California Water Service Group (NYSE: CWT) is the second largest
investor-owned water utility in the United States, providing high-quality
water utility services to approximately 2 million people in 100 communities
through six subsidiaries: California Water Service Company (Cal Water),
Hawaii Water Service Company, Inc. (Hawaii Water), New Mexico
Water Service Company (New Mexico Water), Washington Water
Service Company (Washington Water), CWS Utility Services (CWSUS),
and HWS Utility Services, L.L.C. (HWSUS). Cal Water, Hawaii Water,
New Mexico Water, and Washington Water provide regulated water
utility services, while CWSUS and HWSUS conduct the Company’s
non-regulated business, which includes providing billing, water quality
testing, and water system operations and management services to cities
and other companies.
Stock Transfer, Dividend Disbursing, and Reinvestment Agent
American Stock Transfer & Trust Company
57 Maiden Lane
New York, NY 10038
(800) 937-5449
To Transfer Stock
A change of ownership of shares (such as when stock is sold or gifted or when owners are deleted from or added to
stock certificates) requires a transfer of stock. To transfer stock, the owner must complete the assignment on the back
of the certificate and sign it exactly as his or her name appears on the front. This signature must be guaranteed by
an eligible guarantor institution (banks, stock brokers, savings and loan associations, and credit unions with member-
ship in approved signature medallion programs) pursuant to SEC Rule 17Ad -15. A notary’s acknowledgement is not
acceptable. This certificate should then be sent to American Stock Transfer & Trust Company by registered or
certified mail with complete transfer instructions. Alternatively, effective January 1, 2008, California Water Service
Group is participating in the Direct Registration System, which allows electronic share transactions between the
stockholder’s broker or dealer and American Stock Transfer & Trust Company.
Bond Registrar
US Bank Trust, N.A.
One California Street
San Francisco, CA 94111-5402
(415) 273-4580
Annual Meeting
The Annual Meeting of Stockholders will be held on Tuesday, May 27, 2008 at 9:30 a.m. at the company’s
Executive Office, located at 1720 North First Street in San Jose, California. Details of the business to be trans-
acted during the meeting will be contained in the proxy material, which will be mailed to stockholders on or about
April 11, 2008.
Dividend Dates For 2008
Quarter Declaration Record Date Payment Date
First January 23 February 4 February 15
Second April 23 May 5 May 16
Third July 23 August 4 August 16
Fourth October 22 November 3 November 14
Annual Report For 2007 On Form 10-K
A copy of the company’s report for 2007 filed with the Securities and Exchange Commission (SEC) on Form 10-K
will be available in April 2008 and can be obtained by any stockholder at no charge upon written request to the
address below. The company’s filings with the SEC can be viewed via the link to the SEC’s EDGAR system on the
company’s web site.
Executive Office and Stockholder Information
California Water Service Group
Attn: Stockholder Relations
1720 North First Street
San Jose, CA 95112-4598
(408) 367-8200 or (800) 750-8200
www.calwatergroup.com
California Water Service Group
1720 North First Street
San Jose, California 95112-4598
(408) 367-8200
www.calwatergroup.com
NYSE: CWT
California Water Service Group
Investing for Life
The Stockholder