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California Water Service Group
2010 Annual Report
California Water Service Group
1720 North First Street
San Jose, California 95112-4598
(408) 367-8200
www.calwatergroup.com
NYSE: CWT
Table of Contents
Employee Profiles 2
Letter to Stockholders 17
Service Area Maps 30
Eight-Year Financial Review 34
Board of Directors 36
Corporate Officers 38
California Water Service Group (NYSE: CWT) is the third largest investor-owned water utility in
the United States, providing high-quality water utility services to approximately two million people in
more than 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 (HWSUS). Cal Water, Hawaii Water, New Mexico Water, and Washington Water
provide regulated water and wastewater utility services, while CWSUS and HWSUS conduct the
Company’s non-regulated business, which includes providing billing, water quality testing, and
water and wastewater system operations and management services to cities and other companies.
Financial Highlights
Year ended December 31
2010
2009
2008
2007
2006
Market price at year-end
$ 37.27 $ 36.82 $ 46.43 $ 37.02 $ 40.40
Book value per share
20.91
20.26
19.44
18.66
18.31
Earnings per share (diluted)
1.81
1.95
1.90
1.50
1.34
Dividend per share
1.19
1.18
1.17
1.16
1.15
Revenue*
460,399 449,372 410,312 367,082 334,717
Net income*
37,656 40,554
39,805
31,159
25,580
*Dollars in thousands
Stock Transfer, Dividend Disbursing, and Reinvestment Agent
American Stock Transfer & Trust Company
59 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 eli-
gible guarantor institution (banks, stock brokers, savings and loan associations, and credit unions with membership 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, the Direct Registration System can be utilized, which allows electronic share transactions
between your 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 at 9:30 a.m. on Tuesday, May 24, 2011, at the Doubletree Hotel, located at
2050 Gateway Place in San Jose, California. Details of the business to be transacted during the meeting will be contained in
the proxy material, which will be mailed to stockholders on or about April 8, 2011.
Anticipated Dividend Dates For 2011
Declaration
Quarter
Record Date
First
Second
Third
Fourth
January 26
April 27
July 27
October 26
February 7
May 9
August 8
November 7
Payment Date
February 18
May 20
August 19
November 18
Annual Report For 2010 On Form 10-K
A copy of the Company’s report for 2010 filed with the Securities and Exchange Commission (SEC) on Form 10-K will be avail-
able in April 2011 and can be obtained by any stockholder at no charge upon written request to the address below. The Com-
pany’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
http://www.calwatergroup.com
The pages in this report are 50% recycled with 25% post-consumer fiber, acid free, elemental chlorine free (ECF), and FSC-certified.
We operate 360
water and wastewater
systems serving
approximately two
million people in
California, Hawaii,
New Mexico, and
Washington.
For every one of
those customers,
we are here.
2010 Annual Report / 3
And here,
He has been at the kitchen faucet countless times
today – first when he made his morning coffee; again
when he filled a drinking glass after his workout; yet
again when he made pasta for lunch; one more time
to swallow his vitamins; and most recently before he
sat down to read. Not once did he wonder about the
safety of the water, thanks
in large part to water quality professionals like
Stephanie Hearn. Stephanie is part of a team of
scientists, chemists, and microbiologists who work
tirelessly to ensure that our water meets stringent
quality standards. As a Water Quality Project Manag-
er, Stephanie serves as a liaison between the scien-
tists in the laboratory and the water professionals in
the field. Together, they vigilantly monitor,
test, and treat the water in order to meet 146 water
quality standards. Because our experts concern
themselves with water quality, our customer doesn’t
have to, whether he goes to the tap
five or fifty times per day.
Stephanie Hearn, Bakersfield & Visalia Districts
2010 Annual Report / 5
even here,
He is nervous. He’s never been in the hospital
before, much less on the operating room table. Still,
he knows he’s lucky they caught the problem in
time. And he feels very good about the doctor who
will be doing his surgery. He doesn’t even think
about the fact that he will be much less
likely to suffer an infection in this day and age when
the medical community knows the importance of
scrubbing up before going in. Hospitals rely on Cal
Water for an uninterrupted supply of high- quality wa-
ter, and Leak Truck Foremen like Scott Carmichael
make sure they get it. Day in and day out, Scott and
his crew maintain, repair, and replace the water lines
and valves necessary for reliable service. And that’s
a good thing,
because it gives the patient one less thing to worry
about as he counts backwards from 10.
Scott Carmichael, Chico District
2010 Annual Report / 7
here too.
She pulls into her driveway on Juanita Avenue
in Redondo Beach after a long day at work. All she
wants to do is brew a cup of tea and relax in a nice
hot bath, but when she goes to fill her kettle, there
is no water. It’s already 8 o’clock, but when she
calls Cal Water, someone like Dick Lee will answer.
Because when a Cal Water customer has an after-
hours emergency, we are here. Water
professionals like Dick monitor water system op-
erations and respond to customer calls around the
clock, dispatching crews to help when needed. In
this case, the problem will be easily solved. Dur-
ing the call, Dick will learn that a plumber has been
working on the sprinkler system. Suspecting that
he may have turned off the customer’s house valve,
Dick will stay on the phone with her to help her lo-
cate the valve and turn it back on. By 8:15, she’ll be
filling her teapot and her tub.
Dick Lee, Dominguez District
2010 Annual Report / 9
Yes,
we’re here,
All those years she spent saving up to retire in
Hawaii, she dreamed about starting each day at the
first hole of a lush green golf course. Now her dream
has come true, and although she doesn’t know it,
one of the reasons the course is so
perfect is because it is getting all the water it needs.
And not just any water – water from Hawaii Water
Service Company’s Pukalani Wastewater Treatment
Plant. Thanks to Engineers like Devi Presanna, highly
treated effluent is being recycled and used to irrigate
the course and free up
precious potable water supplies. Water supply plan-
ning is one of the most critical roles of our Engi-
neers, who design the wells, pump stations, storage
tanks, pipelines, and water treatment
facilities in our water and wastewater systems. The
golfer may be blissfully unaware of the
engineering that makes it possible, but she
still savors every moment on the course.
Devi Presanna, General Office, San Jose
2010 Annual Report / 11
and here,
He doesn’t hear the sirens or see the lights
flashing, but he does feel the heat from the blaze.
Armed with a fire hose, he’s counting on a continu-
ous supply of water. Indeed, without it, he would be
completely defenseless. That’s where a Certified
Pump Operator like Eric Gardea comes in. One of
the primary responsibilities of Pump Operators is
to maintain water system production and storage
facilities. They continuously monitor water system
operations to ensure that the system is ready and
able to meet customer demand. And when demand
increases, as it would during a fire, Pump Operators
monitor reservoir levels, adjust system pressure, and
if necessary, activate additional sources of supply
to boost water flow. Knowledgeable Pump Operators
are critical, because for this firefighter, having a reli-
able supply is not just convenient,
it’s a matter of life and death.
Eric Gardea, East Los Angeles District
2010 Annual Report / 13
even here.
It’s not easy managing a business. You strategize.
You execute. You control expenses. You improve
customer service. At California Water Service Group,
we get it. Not only do we do the same things, but
we also provide the water service your factory needs
to manufacture your product. Not just your product
either, but also the products you need to make your
product. So when your plant manager wants one of
our water professionals on site or your accounting
department needs clarification on the water bill, we
are here. To be more precise, a
friendly, professional Customer Service Representa-
tive like Krystal Sandifer is here. She knows that
you want your issue resolved quickly the first time
you call, with efficiency and a smile. And she is
trained to do just that. That way, you can stay
focused on your business without having to
worry about ours.
Krystal Sandifer, Bakersfield District
Everywhere
you look, you
can see the vital role
water plays
2010 Annual Report / 15
in our daily lives.
That’s why it is critical for us to be here for our customers. And we are. We are here, taking
care of our water sources and our water and wastewater systems. We are here, executing
a rigorous water quality assurance program. We are here, planning strategically to meet
supply needs of today and tomorrow. We are here, providing responsive, professional,
friendly service to our customers. We are here, contributing to the
well-being of our environment and our communities.
By doing all of these things well, we provide value to you, our valued stockholder.
Peter C. Nelson President and Chief Executive Officer
Robert W. Foy Chairman of the Board
2010 Annual Report / 17
To Our Stockholders
If you’ve owned our stock for any length of time, you don’t expect the
unexpected in our letter. After all, year after year, we are here, doing the same
things – taking care of our water sources, serving our customers,
developing our employees, and providing fair value to our stockholders. If you pick
up previous years’ reports (and we hope you still have them!), you will see com-
mon themes from year to year, as we describe our commitment to doing the right
thing, our responsibility for being good stewards of the life-sustaining resource
we provide, and our pride in providing something so
invaluable and irreplaceable as water. As much as we’d like to “wow” you with
something you’re not expecting, we simply can’t. Because the fact of
the matter is, we are here, doing the same key things…
We Are Here, Providing Value to Our Stockholders
As we predicted last year, 2010 was a challenge in that it was the final
year of our transition to a three-year General Rate Case cycle in California, which
made it a critical year for holding the line on expenses and working
toward the best decision on the General Rate Case filed with the California Public
Utilities Commission in 2009, approved in 2010, and effective in 2011. Although
we were disappointed, we were not surprised by our financial results, given the
fact that rate relief for utility operations was minimal in 2010. Total revenues
increased 2.5% to $460.4 million. Net income decreased 7.1% to $37.7 million,
and earnings per share were down 7.2% to $1.81.
Throughout the year, we stayed focused on managing our operating costs, and
we believe we have positioned the Company well for 2011 and beyond.
In light of improvements in the regulatory environment in California and
our successful efforts over the past few years to reach a dividend payout
1,294,297 10
1,198,077 09
Five -Year
Net Utility Plant
(Dollars in thousands)
1,112,367 08
1,010,196 07
941,475 06
2010 Annual Report / 19
ratio target range of approximately 60% of earnings, our Board of Directors
approved a larger dividend increase for 2011, increasing annual dividends from
$1.19 to $1.23 per common share.
We Are Here, Working to Improve Regulation
These improvements in the regulatory climate are due in large measure to imple-
mentation of the California Public Utilities Commission’s Water Action Plan, which
provides a roadmap for regulators and utilities by formalizing
priorities for water regulation in California. As adopted in 2005, the Plan
established six objectives:
• Maintain highest standards for water quality.
• Strengthen water conservation.
• Promote water infrastructure investment.
• Assist low-income ratepayers.
• Streamline Commission decision-making.
• Set rates that balance investment, conservation, and affordability.
The California Public Utilities Commission adopted an updated Water Action Plan
in 2010, and we are pleased to report that the objectives set forth in 2005 have
been carried forward in the new Plan. We are hopeful that new and continuing
Commissioners will be guided by the Plan as they make decisions affecting our
customers and our stockholders.
Respect for the principles of the Water Action Plan was evident in the
Commission’s resolution of California Water Service Company’s 2009 General
Rate Case. The California Public Utilities Commission approved the 2009 General
Rate Case on time, authorizing rate increases that will add $25 million to annual
gross revenues in 2011 and an additional $8 million that may be
obtained when certain capital projects are completed. The decision approved wa-
ter infrastructure investments, additional conservation programs, and
increased funding for our Rate Support Fund, which helps customers in
disadvantaged communities where water costs are high.
2010 Annual Report / 20
We Are Here, Managing Expenses and Increasing Efficiency
In addition to working diligently toward a favorable outcome on the 2009
General Rate Case, we continued to focus on improving our efficiency and
service. Several achievements fall into this category.
First, we brought our Hawaii subsidiary onto the same financial system as
our other subsidiaries, which increases transparency and minimizes audit costs.
More than 3,000 miles away in New Mexico, we converted to the
same customer information system used in California, reducing billing costs, im-
proving our ability to serve New Mexico customers, and enabling us to offer cus-
tomers more payment options. Back at our San Jose headquarters, we rolled out
a new budgeting system that will greatly improve our districts’ and departments’
ability to track and manage expenses, launched an initiative to streamline and
enhance our procurement process, and made administrative changes to our pen-
sion program that significantly reduce transaction costs.
We also locked in a lower cost of debt– a benefit to both customers and
stockholders– when we sold $100 million of first mortgage bonds. We consider
our AA- credit rating to be a reflection of our strong balance sheet and manage-
ment team, because it is one of the best in the water industry and means our
company is viewed as being highly creditworthy.
We Are Here, Providing Reliable, High-Quality Water and Wastewater Services
The funds raised in our bond offering and our syndicated line of credit
provided the capital we needed to invest in our infrastructure to ensure reliable
and high-quality water and wastewater services. In 2010, we invested $113 mil-
lion in water and wastewater system projects, and in 2011, we expect to invest
$125 million. Our stockholders earn a return on capital investment,
but we don’t simply invest for the sake of investing; we are strategic and
diligent, completing projects that truly benefit customers by improving
reliability and water quality.
Five -Year
Dividend Growth
10 1.19
09 1.18
08 1.17
07 1.16
06 1.15
CWT 20 -Year Total Return on Investment
(On stock purchased December 31, 1990, with dividends reinvested)
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
2010 Annual Report / 24
In fact, a relatively small investment yielded huge benefits for a remote
community in the mountains in eastern New Mexico. Before we purchased
the system and installed computer-operated remote controls, customers routine-
ly experienced days -long interruptions in service. If lightning struck (a common
occurrence in this community called Sandia Knolls), a piece of equipment failed,
or a manual control malfunctioned, the water stopped flowing. Today, the supply is
much more reliable. And it costs less to operate the system, which translates into
lower water rates for customers. This was one of several 2010 capital projects
that increased reliability, as we completed
a number of well and water treatment projects that reduce our dependence
on higher-cost imported water supplies by increasing the amount of
water we can produce locally.
Increased reliability and expense management aren’t the only objectives;
we strive for innovation as well. In our Bear Gulch District, we replaced a key wa-
ter line using a trenchless construction method that involves digging only at each
end of the pipeline rather than along its entire length. Trenchless
construction tends to be more environmentally friendly and less disruptive
to neighbors. And in our Westlake District, we utilized the walls of an existing
storage tank as shoring for the new tank, thereby addressing space constraints
on the site and lessening the noise, traffic, and volume of material
to be hauled away.
“Green” was also the name of the game in Hawaii, where we replaced an aging
wastewater treatment plant with a state -of-the-art Membrane Bio -Reactor (MBR)
treatment plant that produces high -quality effluent that is reused for irrigation.
The Pukalani Treatment Plant, located upcountry on the island of Maui, treats
180,000 gallons of wastewater per day. Just one island away, in Waikoloa on the
island of Hawaii, we began construction on a larger MBR filtration plant that will
treat one million gallons of water per day when it
is completed in 2011.
Five -Year
Book Value
10 20.91
09 20.26
08 19.44
07 18.66
06 18.31
2010 Annual Report / 27
Five -Year
Operating Revenue
(Dollars in thousands)
460,399 10
Conservation is by its very nature “green,” and we continued to offer a
robust variety of conservation programs in 2010. Granted, storms in late 2010
vastly improved the state’s water supply picture, with mountain snowpack at
nearly 200 % of normal and most major reservoirs near or above
average at year- end. Time will tell if this wet weather will continue into 2011,
but the first few months of the year have been promising. Regardless, in
wet years or dry, we recognize the importance of water-use efficiency and
strategic water supply planning.
449,372 09
We Are Here, Improving Our Customer Service
410,312 08
367,082 07
All of these things– providing stockholder value, improving regulation,
increasing efficiency, and ensuring reliable and high-quality water and wastewater
services– enable us to provide excellent customer service. Beyond the improve-
ments in water infrastructure and upgrades in technology that we’ve already cov-
ered, there is the human element. In 2010, we conducted training for all of our
Customer Service Managers to better enable them to achieve customer service
goals in their respective districts. We launched a “Voice of the Business Cus-
tomer” project in order to better understand and prioritize the needs of business
customers and ensure that these needs are being met. We continued to expand
our mobile workforce project, which provides field employees direct access to
customer information, resulting in faster, more
efficient response to customer needs. And for those customers who prefer
a computer experience over face-to-face contact, we began implementing
a self-service option on our web site that will enable customers to initiate
a service order online at their convenience.
334,717 06
We Are Here, Developing Our People
We’ve said it before, but it bears repeating. To provide the best customer
service, we need the best and most skilled people. We start by offering competi-
tive salary and benefits packages, but it certainly doesn’t end there.
2010 Annual Report / 28
In 2010, we implemented a management development program and
developed a management trainee program to supplement our ongoing training
and tuition reimbursement programs. We also created a Business Intelligence
information system that ensures our people have easy and fast access to the
key data they need to make the best management decisions. We expect every
employee to make a difference in continuously improving customer service and
efficiency, and we continue to provide skills development and tools
to do just that.
Like our employees, our directors contribute significantly to our success.
In 2010, we lost a truly special and beloved board member with the passing of
Dr. Ted Harris. We were fortunate to recruit an outstanding individual to our board
who brings the critical public health perspective that we so valued in
Dr. Harris. Highly accomplished in his field, Dr. Thomas M. Krummel is the Susan
B. Ford Surgeon-in-Chief at the Lucile Packard Children’s Hospital
at Stanford and Emile Holman Professor and Chair of the Department of
Surgery at Stanford University School of Medicine. The Board of Directors also
appointed Lester A. Snow, whose 30 years of experience in natural resources
management includes service as the State Secretary for Natural Resources, Di-
rector of the California Department of Water Resources,
Regional Director of the U.S. Bureau of Reclamation, and Executive Director
of the CALFED Bay-Delta Program. Mr. Snow’s vast experience in the water
profession will be invaluable as we continue to fulfill our responsibility
for providing reliable, high-quality water to customers in California,
Washington, New Mexico, and Hawaii.
As always, we thank you for your continued investment in California Water
Service Group and wish you the best in the coming year.
Peter C. Nelson
President and Chief Executive Officer
Robert W. Foy
Chairman of the Board
Hawaii Operations/Customer Centers
We serve
We serve
customers in
customers in
more than 100
more than 100
communities.
communities.
And each one of them is unique. We serve cowboys and surfers, entrepreneurs
and homemakers. We are in big cities and small towns, beach communities
and deserts.
We support cherry festivals and little leagues, rodeos and art shows. But whatever their
differences, these communities have one thing in common: they all need
water to thrive. And that’s where we come in. That’s why we’re here.
Washington Operations/Customer Centers
(Maui) Ka’anapali • (Hawaii) Waikoloa
Serving the communities of Ka’anapali, Pukalani,
Waimea, Waikoloa, North Kona Coast, and Kohala
Coast on the islands of Maui and Hawaii.
Regulated Customer Connections
4,200* 09
4,200* 10
* Includes several large resorts
and condominium complexes
Olympia (S.W. Regional Office) •
Gig Harbor (N.W. Regional Office and
Customer Center) • Sequim • Issaquah •
Orcas Island (Field Offices)
Serving more than 425 neighborhoods and small
communities in the counties of Clallam, Jefferson,
Kitsap, Mason, Pierce, King, San Juan, and Thurston.
Regulated Customer Connections
15,600 09
15,700 10
Antelope Valley • Bakersfield • Bear Gulch • Chico •
Commerce • Dixon • Dominguez • East Los Angeles • Haw-
thorne • 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
Customer Connections*
467,100 09
470,200 10
* Numbers include Hawthorne
and Commerce lease agreements
California Districts
California Districts
& Communities
Antelope Valley • Fremont Valley, Lake Hughes, Lancaster & Leona Valley
Bakersfield
Bear Gulch • Atherton, Woodside, Portola Valley & a portion of Menlo Park
Chico • Hamilton City
Commerce (lease agreement)
Dixon
Dominguez • Carson & portions of Compton, Harbor City, Long Beach,
Los Angeles County & Torrance
East Los Angeles • Portions of Montebello, Commerce, Monterey Park & Vernon
Hawthorne (lease agreement)
Hermosa-Redondo • Hermosa Beach, Redondo Beach & a portion of Torrance
Kern River Valley • Bodfish, Kernville, Lakeland, Mountain Shadows, Onyx,
Squirrel Valley, South Lake & Wofford Heights
King City
Livermore
Los Altos • Portions of Cupertino, Los Altos Hills, Mountain View & Sunnyvale
New Mexico Operations/Customer Centers
Marysville
2010 Annual Report / 33
2010
2009
1,400
67,600
18,800
27,900
1,200
2,900
33,800
26,700
6,200
26,600
4,300
2,500
18,300
18,700
3,700
1,400
66,900
18,600
27,700
1,200
2,800
33,700
26,600
6,200
26,500
4,300
2,500
18,200
18,700
3,700
Elephant Butte • Belen • Cedar Crest
Serving the communitites of Meadow Lake, Cypress Gar-
dens, Rio Communities, Rio Del Oro, Elephant Butte, Sandia
Knolls, and Cedar Crest in the counties of Sierra, Valencia,
and Bernalillo.
Regulated Customer Connections
7,800 09
7,800 10
Mid-Peninsula • San Mateo & San Carlos
Oroville
Palos Verdes • Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills
36,400
36,200
3,600
3,600
& Rolling Hills Estates
24,100
24,000
Redwood Valley • Lucerne & portions of Duncans Mills, Guerneville,
Dillon Beach, Noel Heights & Santa Rosa
Salinas
Selma
South San Francisco • Colma & Broadmoor
Stockton
Visalia
Westlake • Westlake Village & a portion of Thousand Oaks
Willows
2,000
28,000
6,100
16,900
42,800
40,300
7,000
2,400
2,000
27,900
6,000
16,800
42,400
39,800
7,000
2,400
Eight-Year Financial Review
2010 Annual Report / 35
(Dollars in thousands, except common share and other data)
2010
2009
2008
2007
2006
2005
2004
2003
Summary of Operations
Operating revenue
Operating expenses
Interest expense, other income and expenses, net
24,157
Net income
Common Share Data
$37,656
$460,399
$449,372
$410,312
$367,082
$334,717
$320,728
$315,567
$277,128
398,586
391,253
17,565
$40,554
352,843
17,664
322,912
13,011
$39,805
$31,159
294,411
14,726
$25,580
278,903
14,602
$27,223
273,488
16,053
$26,026
244,167
13,544
$19,417
Earnings per share - diluted
$1.81
$1.95
$1.90
Dividend declared
1.190
Dividend payout ratio
66%
1.180
61%
1.170
62%
77%
86%
Book value
$20.91
$20.26
$19.44
Market price at year-end
37.27
36.82
46.43
Common shares outstanding at year-end (in thousands)
20,833
20,765
20,723
Return on average common stockholders’ equity
9.0%
9.8%
10.2%
Long-term debt interest coverage
3.59
4.04
4.72
$18.66
37.02
20,666
8.1%
3.70
$1.50
1.160
$1.34
1.150
$18.31
40.40
$1.47
1.140
78%
$15.98
38.23
$1.46
1.130
77%
$15.66
37.65
18,367
20,657
18,390
8.2%
9.3%
9.8%
3.17
3.61
3.38
2.78
$1.21
1.125
93%
$14.44
27.40
16,932
9.1%
Balance Sheet Data
Net utility plant
$1,294,297
$1,198,077
$1,112,367
$1,010,196
$941,475
$862,731
$800,305
$759,498
Total assets
Long-term debt, including current portion
Capitalization ratios:
1,692,066
1,525,581
481,561
387,222
1,418,107
1,184,499
1,165,019
290,316
291,921
293,592
996,945
275,275
942,853
275,921
873,035
273,130
Common stockholders’ equity
47.5%
52.1%
58.1%
Preferred stock
Long-term debt
Other Data
0 %
52.5%
0 %
47.9%
0%
41.9%
56.9%
0.5%
42.6%
56.0%
51.4%
50.8%
0.5%
0.6%
0.6%
43.5%
48.0%
48.6%
47.0%
0.7%
52.3%
Water production (million gallons)
121,942
131,558
137,757
Customers at year-end, including Hawthorne and Commerce
497,900
494,700
490,500
New customers added
3,200
4,200
2,900
Revenue per customer
$925
$908
$837
Utility plant per customer
3,706
3,455
3,228
Employees at year-end
1,127
1,013
929
141,238
487,600
3,707
$753
2,968
891
132,414
483,893
4,892
$692
2,778
129,453
479,001
139,039
473,155
5,846
6,733
$670
$667
2,578
2,418
131,680
466,422
7,434
$594
2,313
869
840
837
813
Board of Directors
2010 Annual Report / 37
Peter C. Nelson
President and
Chief Executive Officer
Robert W. Foy
Chairman of the Board
15 years served as a Board
34 years served as a Board
Member. Member of the
Executive Committee.
Member. Member of the
Executive Committee.
Douglas M. Brown
Dean, Anderson School of
Business, University of
New Mexico
10 years served as a Board
Member. Member of the following
Committees: Audit, Executive,
Finance/Risk Management,
and Nominating/Corporate
Governance.
Edwin A. Guiles
Former Executive Vice President
Bonnie G. Hill
President of
of Corporate Development,
B. Hill Enterprises, L.L.C.
Sempra Energy
Richard P. Magnuson
Private Venture Capital Investor
3 years served as a Board
8 years served as a Board
Member. Member of the following
Member. Member of the following
Member. Member of the following
Committees: Audit, Organization/
Committees: Organization/
Committees: Organization/
Compensation, Executive, Finance/
Compensation, Finance/Risk
Compensation and Nominating/
Risk Management, and Nominating/
Management, and Audit.
Corporate Governance.
Corporate Governance.
15 years served as a Board
George A. Vera
Vice President and
Chief Financial Officer,
Thomas M. Krummel, M.D.
Professor and Chair, Surgery
Linda R. Meier
Member of the National Board
Department, Stanford University
of the Institute of International
the David and Lucile Packard
School of Medicine
Education
Foundation
13 years served as a Board
Member. Member of the following
17 years served as a Board
Member. Member of the following
Committees: Audit, Finance/Risk
1 year served as a Board Member.
Committees: Audit, Executive,
Management, and Nominating/
Member of the Nominating/Corporate
Organization/Compensation, and
Corporate Governance.
Governance Committee.
Nominating/Corporate Governance.
2010 Annual Report / 38
Officers
California Water Service Company
Peter C. Nelson 1, 2, 3
President and Chief Executive Officer
Paul G. Ekstrom
Vice President, Customer Service,
Human Resources, and Information Technology
Francis S. Ferraro 2, 4
Vice President, Corporate Development
Robert R. Guzzetta 2
Vice President, Operations
Martin A. Kropelnicki 1, 2, 3
Vice President, Chief Financial Officer
and Treasurer
Christine L. McFarlane 3
Vice President, Chief Administrative Officer
Michael J. Rossi 2, 3
Vice President, Engineering
and Water Quality
Thomas F. Smegal III 4
Vice President, Regulatory Matters
and Corporate Relations
Calvin L. Breed 1, 2, 3
Controller, Assistant Secretary
and Assistant Treasurer
Lynne P. McGhee 1, 2, 3
Corporate Secretary
Washington Water Service Company
Michael P. Ireland
President
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.