California Water Service Group
2022 summary annual report
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Business at
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Corporate
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California Water Service Group (NYSE: CWT) is the third-
largest publicly traded water utility in the United States,
providing high-quality water and wastewater services to more
than two million people through four regulated subsidiaries:
California Water Service (Cal Water), Hawaii Water Service
(Hawaii Water), New Mexico Water Service (New Mexico
Water), and Washington Water Service (Washington Water).
A fifth subsidiary, Texas Water Service, invests in water and
wastewater infrastructure in Texas through a joint venture
with BVRT Utility Holding Company.
We are committed to improving the quality of life for our
customers, communities, employees, and stockholders.
We do this by living our core values and delivering on our
promise to provide quality, service, and value.
This report contains forward-looking statements that are
based on currently available information, expectations,
estimates, assumptions and projections, and management’s
judgment about the Company, the water utility industry, and
general economic conditions. Forward-looking statements,
which are identified by words such as seek, expect, intend,
plan, believe, anticipate, project, will, and forecast, are not
guarantees of future performance, and actual results may
vary materially. Please see our 2022 Annual Report on
Form 10-K for more information.
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Established
in 1926,
our company has seen good times and bad. We rejoiced when
America rebounded after the Great Depression, WWII ended,
the Civil Rights Movement gained momentum, and the first man
walked on the moon. We mourned when President John F. Kennedy
and Dr. Martin Luther King Jr. were assassinated, astronauts
were lost in the Challenger and Columbia disasters, terrorists
took thousands of American lives on 9/11, and, most recently,
the world suffered a heartbreaking global pandemic.
Through it all, we have survived and thrived by
focusing day in and day out on our mission: to provide
the safe, reliable water supply that is the lifeblood of
our communities, while also seizing every opportunity
to enhance the quality of life for our customers,
communities, employees, and stockholders.
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Staying
the course
Challenging times threaten to take us off
course. To stay on track, we prioritize the
things that are core to the business: water
quality, public health and safety, customer
service, and infrastructure investment.
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Keeping our promise
to customers
We promise to provide quality, service, and value to our
customers, and in 2022, we delivered by:
Answering 87.7% of customer calls within 20 seconds
Rendering 99.8% of customer bills accurately
Arriving within two hours of designated appointment
times 98.6% of the time
Helping customers save 180 million gallons of water
through a variety of conservation programs
We recognize that customer service goes beyond these
performance metrics to the way we make our customers
feel. That’s why we implemented an additional survey tool
in 2022 that will help us keep a finger on their pulse and
continue to identify ways to surpass their expectations.
250 water quality
standards were met or
surpassed to protect
public health and safety.
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Delivering safe,
high-quality water
Whatever is happening in the world around us, one thing
never changes: our responsibility for providing safe water
to our customers and communities. Our water quality
assurance program is multi-faceted and rigorous, and our
laboratory is at the heart of it. In 2022, our team participated
in an intense audit, demonstrating expertise and
conformance with regulatory methodologies and docu-
mentation requirements. They earned recertification from
the California Environmental Laboratory Accreditation
Program (ELAP) and verified their conformance with stricter
national standards. This allows for in-house analyses by
scientists who are personally invested in our customers’
health and safety, which results in superior quality, faster
service, and lower costs for our customers.
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“ We couldn’t allow these supply chain disruptions to slow down our water
system infrastructure improvement program, because our customers rely on
us to make the investments necessary to provide a reliable, safe water supply.
By putting our heads together and getting creative, we’ve been able to
minimize the effects of delays.” — elissa ouyang, chief procurement officer
Investing in our
infrastructure
Businesses in many industries faced supply chain
challenges in 2022, and we were no exception. Faced with
delays in shipments of water pipe, fittings, hydrants,
valves, and other key materials, we formed cross-
functional teams to address the issue.
our strategy included:
An accelerated ordering program to enable teams to
accurately estimate needs and order materials earlier
in the project design process
A pre-purchase plan to allow for the advanced purchase
and storage of commonly used supplies
Identification and addition of new materials and
suppliers to meet critical needs
As a result of these efforts, we
invested $328 million in infrastructure
improvements that increase reliability
and improve water quality.
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Throwing
out a lifeline
When our customers and community partners struggle to stay
afloat, we are there to throw out a lifeline. We are more than
a water utility company; we are a helping hand, securing
financial assistance for customers, connecting people with
available programs, and supporting community organizations.
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Executing a
new grant strategy
We use investments from our stockholders to fund
critical infrastructure improvement projects, and these
investments are vital to the reliability and integrity of
our water systems. For certain projects, however, a state
or federal grant can be used to augment stockholder
investment and minimize the rate impact to customers.
To take advantage of these opportunities, we developed
a grant pursuit strategy.
In 2022, we secured more than
$10 million in grants to fund water
pipes, water supply projects, and
water quality treatment in
disadvantaged communities.
Helping customers
take advantage of
our programs
We offer a range of programs to help customers who are
having difficulties making ends meet. In addition to a
Rate Support Fund for all customers in smaller, higher-cost
areas, we offer a low-income assistance program, a stock-
holder-funded hardship grant program, and a variety of
water conservation programs. And when customers need
more time to bring their accounts current, we offer inter-
est-free payment plans. To help customers take advantage
of these programs, as well as the services offered by some
of our community partners, in 2022, we hosted customer
resource fairs in several disadvantaged communities.
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Contributing to
our communities
Beyond our customer assistance programs, we contribute
to community organizations that are working to make
a difference in our communities. Here are just a few
2022 examples. We:
Provided grants to firefighting agencies for essential
equipment and tools
Delivered meals and toys to needy families through our
Operation Santa Claus event in King City
Adopted goats for environmentally friendly landscaping
in Palos Verdes
Donated funds to the San Juan College Veteran Center
In 2022, throughout our service
areas, our stockholder-funded
contributions totaled more than
$1.58 million
Supported Village Harvest’s Community Fruit Harvesting
program, which organizes volunteer teams to pick
one-quarter of a million pounds of fruit from local
backyards and small orchards for food banks
Contributed to support efforts for Ukraine and victims
of Hurricane Ian
“ One of the things I love most about our company is our commitment to
doing the right thing. Our philanthropic giving is a meaningful and tangible
demonstration of this commitment. We are purpose-driven, and we work
together to make a real difference in our communities.”
— shannon dean, chief citizenship officer
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All hands
on deck
It takes all of us to keep things ship-shape. When we
do all we can to take care of our employees, they do
all they can to take care of our customers. And as any
good captain knows, a crew that feels heard and
valued will perform like a well-oiled machine,
solving any problem that arises.
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Crews coming together
to solve problems
In good times and bad, our employees are dedicated to
serving our customers. This dedication and teamwork was
demonstrated perfectly by a team in our Bakersfield District,
who came together and worked around the clock to prevent
water service interruptions to customers after a wide-
spread power outage occurred late one Friday night in
November. After confirming that standby generators worked
as intended and that water in the system was not adversely
impacted, the team focused on the two massive water
quality treatment plants serving the city. Within an hour of
the power loss, the plants had been manually restarted and
were operating properly. Work continued into the weekend
as power was restored. Through it all, customers were
blissfully unaware of all our team was doing behind the
scenes to serve them.
other crews getting the job done
Challenge
Solution
A Christmas event in
Salinas was jeopardized
by water collecting from
a heavy rain.
Within minutes, two of
our operators arrived to
drain the water so the
festivities could continue.
A leak caused a system-
wide outage in a remote
area of Washington
located nearly an hour from
our Operations Center.
In Oroville, the sedimen-
tation basin in our
treatment plant needed
to be cleaned out in a
single day, an impossible
feat for the local team.
The crew worked long
hours through a snowy,
icy holiday weekend to
locate the leak in chal-
lenging terrain and repair
it so that no customers
would be without water.
Operations professionals
from Chico and Willows
joined forces with the
Oroville team to get the
job done.
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“ Preparation is key in emergency response. An effective emergency
response program involves partnering with first responders to regularly
rehearse and simulate actual incidents to refine our information
sharing, coordinated response, and public outreach protocols. This is
a long-standing practice at the Company, and we are thankful for the
support from our community leaders and partner agencies.”
— michael luu, chief risk officer
Getting everyone
back on board
The pandemic took away a lot of things, and one of them
was the ability for our employees to connect. Isolated in
our pods, faces covered with masks, we lost touch with
each other and our communication suffered. For the first
time ever, in one of our annual surveys, a significant
number of employees said that we’d lost something special
about our culture. This was a monumental concern to
us, and we immediately set out on a listening campaign.
We sought counsel from inside and out and took steps to
re-engage and motivate our employees.
RESULTS:
Later in 2022, we were named
a Great Place to Work® by the
Great Place to Work Institute.
Bringing first
responders together
In 2022, Cal Water organized a multi-agency emergency
response exercise to coordinate how first responders
would work together in a contaminated water scenario.
The event, which took place in Chico, California, included
both a field and tabletop exercise. Joining Cal Water
were representatives from the California Department of
Drinking Water, Federal Bureau of Investigation, City of
Chico Police and Fire Departments, Butte County Office
of Emergency
Services, California Office of Emergency Services, and
others. The massive undertaking enabled us to sharpen
our emergency response procedures, test our customer
notification system, and further strengthen our
partnerships with other first responders.
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Eyes on
the horizon
What if the crew of the Titanic could have seen that
massive iceberg out in the distance below the surface?
Surely they would have circumvented disaster. A key
part of our strategy is to keep our eyes on the horizon,
identifying risks to the business and taking meaningful
steps to mitigate them. A few that are currently in
our sights: climate change, regulatory hurdles, and
water supply constraints.
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Mitigating and
adapting to
climate change
As part of our effort to reduce our contribution
to climate change, we:
Continued to promote our industry-leading water
conservation programs
Conducted a month-long educational campaign in our
service areas to help customers understand that when
they conserve water, they reduce the amount of power
needed for water delivery, thus reducing greenhouse
gas emissions
Piloted multiple technologies for leak detection to
minimize loss in our water systems
Made progress on an energy management system that
will enable us to prioritize use of the most energy-
efficient sources and identify opportunities to replace
and upgrade facilities for increased energy efficiency
Completed a fleet study to identify optimal replacement
cycles and opportunities to downsize vehicles
In 2022, we continued to identify and mitigate risks
associated with climate change. We:
Cleared fire breaks around key facilities to minimize
risk of wildfire damage
Installed additional backup generators to enable us to
operate during power interruptions
Designed a floating intake to be utilized in Clear Lake
to help meet water needs when lake levels are low in
our
Lucerne, California service area
Developed and refined operational contingency plans
for operating our surface water treatment plants when
they are impacted by climate change-driven events,
including fires, floods, and droughts
Our Water Resource Sustainability, Engineering,
Water Quality, Operations, and Fleet and
Facilities Departments are all working on
climate change-related projects to be submitted
in California’s next rate filing. Thorough
preparation for the filing is critical, as all projects
must be reviewed and approved by our regulator
during the triennial process.
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Advocating to
protect affordability
Looking at water
supply reliability
Although our customer assistance programs are helpful,
affordability remains top of mind for us, as the costs of
providing safe, reliable water service continue to increase
for all water providers.
Challenge
Solution
The California Public
Utilities Commission’s
2020 decision to disallow
the use of decoupling
created a major regulatory
hurdle for us in reaching
both affordability and
water conservation goals.
In 2022, Cal Water led a
coalition of diverse interests
in supporting passage of
legislation in California that
restores water utilities’
ability to propose decoupling
in future proceedings before
the Commission.
Decoupling removes the link
between a water utility’s
financial performance and the amount of water it sells. Without
it, a water utility must collect more of the revenue required
for operations in the fixed monthly service charge, which hurts
low-income, low-volume water users.
Every investor has heard the saying, “Don’t put all
your eggs in one basket.” Diversification is also key in
water supply planning. We have been taking a hard look
at each of our service areas to prioritize opportunities
to augment existing sources of supply, an endeavor
that becomes increasingly important in the face of
climate change.
In 2022, we installed water quality treatment and an
emergency generator at a high-volume well serving
East Los Angeles, California. The project adds a water
source and reduces the cost of bringing water in from
outside the service area by more than $5,000 per day, a
savings that is passed directly on to customers.
We also secured grants for two critical water supply
projects in our Visalia and Kern River Valley Districts.
In Visalia, we plan to add a water storage tank and two
booster pumps to augment one small system’s single
well; in Kern River Valley, we plan to construct an
in-channel concrete intake structure and associated
equipment to improve our ability to draw water from
the Kern River.
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Full steam
ahead
A famous fish once said, “Just keep swimming,”
and that’s precisely our approach. We keep
executing our plan, making progress, and moving
forward. For us, growth takes various forms, including
connecting to communities that lack a reliable
supply of safe water, adding new service areas,
and pursuing new partnerships.
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“ We believe that every community should have access to clean, safe water.
That’s a personal passion of mine. So I’m particularly proud of
our tenacious efforts to bring people together to connect communities
in need to our water systems, despite the challenges involved.”
— sophie james, chief water quality officer
Connecting to
communities in need
Shocking though it may be, an estimated 2 million people
in the United States lack access to clean, safe water. We
are working hard to make a difference in neighboring
communities that find themselves in this untenable situation,
whether due to a decline in available water supplies or
insurmountable water quality challenges. In one dramatic
example from 2022, we expedited a project to connect a
community in Southwest Bakersfield to our system after the
well serving its mobile home park ran dry in triple-digit
heat, leaving dozens of residents no alternative but to scoop
water from the complex’s swimming pool to flush their
toilets. Although these projects often require cooperation
between multiple parties and can be challenging and
complex, we won’t give up. In fact, at the end of 2022, we
had 12 consolidation projects in various stages of progress,
from early initiation to pending grant approval.
1,000+ is the number of customers
we are currently working to connect to our
systems. This includes one school.
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Bringing in
new customers
growth by acquisition
continued apace in 2022
We closed acquisitions in Hawaii,
New Mexico, Texas, and Washington,
adding a total of 4,016 customers.
We secured regulatory approval on four
acquisitions in California, Hawaii, and
Washington, which is expected to add
2,900 customers upon closing.
We completed purchase agreements with
three utilities serving 980 customers in
Hawaii, New Mexico, and Washington.
Entering into
new partnerships
two unique water supply
partnerships in 2022
One of the subsidiaries of our Texas partner,
BVRT Utility Holding Company, entered into
a long-term water supply agreement with the
Guadalupe Blanco River Authority. Under the
terms of the agreement, this subsidiary plans
to invest more than $40 million in capital in the
first phase of a water supply pipeline project
and receive up to 2,419 acre-feet of water
annually in return.
Cal Water entered into a partnership with biotech
leader Genentech to explore the feasibility of
constructing facilities to bring recycled water to
Genentech’s South San Francisco campus. If the
project is built, it will improve supply reliability
in the area and demonstrate both companies’
commitment to sustainability.
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Our business
at a glance
Our mission: to be the leading provider
of water and wastewater services
Our purpose: to enhance the quality
of life for our customers, communities,
employees, and stockholders
Our operating imperatives: affordable
and excellent service, sustainability and
community impact, public health and
safety, enhanced stockholder value, and
employees as best advocates
2M+
population served
through 553,000
service connections
100B+
gallons of
drinking water
delivered annually
650M+ gallons of wastewater
processed annually
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founded in
1926
1,200
employees
serving
150+
communities
service connections by state
CA
California
496,400
WA
Washington
37,500
NM
New Mexico
10,700
HI
Hawaii
6,200
TX
Texas
2,200
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To our
stockholders
It’s worth pointing out that our theme for 2022 is “Steady at the Helm,”
which is distinctly different from “A Port in the Storm.” We are not
insulated from headwinds caused by inflation, supply chain issues,
workforce challenges, or, most impactful, regulatory delays. Our 2022
financial results reflect some of these challenges. However, for nearly a
century, we have demonstrated that we are steady at the helm, in both
smooth and rough waters. That’s because we remain focused on our
mission and our customers, no matter what comes our way.
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our 2022 highlights
Previous pages in this report illustrate why stockholders
tend to ride out the waves with us. To recap and add to the
accomplishments highlighted there, we:
Declared our 308th consecutive quarterly dividend and
increased the annual dividend for the 55th consecutive year
Met or surpassed every primary state and federal water
quality standard for public health and safety in all 291
of our water systems
Completed an inventory of our water service lines to
rule out the presence of lead, and began the multi-phase
process of inventorying service lines owned by customers
Constructed two treatment plants for Per- and
Polyfluorinated Substances, commonly known as PFAS
Provided unconscious bias training to 95% of our employees
Invested more than $6.1 million in conservation rebates
and programs for customers
Secured more than $10 million in grants to minimize rate
impacts of critical water supply projects in disadvantaged
communities
Added 4,016 new customers through acquisitions, secured
regulatory approval to add 2,900 customers in 2023,
and completed purchase agreements that are expected to
add 980 customers upon closing
Treated more than 664 million gallons of wastewater
safely and with no negative environmental impacts
Made $1.58 million in stockholder-funded contributions to
our communities through a range of philanthropic programs
Invested $328 million in critical infrastructure that
improves quality and reliability for customers, including:
> 18 projects to better prepare us for power interruptions
and wildfire events, including emergency generators
> Seven projects to replace, upgrade, and/or retrofit
storage and pressure tanks
> 12 projects to enhance water quality treatment
> 134,072 feet of water pipeline
Challenged the California Public Utilities Commission’s
decision to disallow decoupling, a critical regulatory
mechanism in preparing for climate change and drought,
in the California State Supreme Court
Made steady progress on our ESG journey, described in
detail in our annual ESG Report, which will be available at
calwatergroup.com in May 2023
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What keeps
our stockholders
on board?
our transparency & track record
our purpose
First, our earnings drivers are straightforward: grow the
business (primarily through infrastructure investment and
secondarily through acquisitions); manage controllable
expenses; and provide safe, reliable service to customers.
And we’ve delivered, even when faced with regulatory
delays. Having successfully invested nearly $1.5 billion
and added 35,500 customers over the past five years, we
have demonstrated that we are on course from a growth
perspective. We’ve also been disciplined in managing
controllable expenses and have remained focused on
the importance of affordability and excellent service for
customers. A recent example is our effort to regionalize
our customer service teams and expand our service hours,
which increased efficiency and enhanced service. And,
although they are beyond our control, regulatory delays are
eventually resolved. All of this is transparent to investors
from Wall Street to Main Street.
Second, and more important: We have a higher purpose.
Our stockholders know that they are making it possible
for our dedicated team of employees to provide a service
that is absolutely essential to the health, well-being,
and prosperity of every family and business that
relies on us. As climate change continues to impact
everything from water supply reliability to water quality,
our communities know the importance of having a
professional, proven water provider to meet their needs.
Our genuine commitment to enhancing the quality of
life for those we serve, through our daily operations,
community contributions, and preparations for the
future, make us an asset to our customers,
communities, and stockholders.
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Annual dividend
per common share
$0.750
$0.790
$0.850
$0.920
$1.000
2018
2019
2020
2021
2022
Capital investment
in infrastructure
$272M
$274M
$299M
$293M
$328M
2018
2019
2020
2021
2022
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what’s on the horizon
Looking ahead to 2023 and beyond, we expect to continue
to make steady progress forward. We anticipate the
California Public Utilities Commission will authorize rate
changes requested in our 2021 filing, which will enable us
to continue to invest for the future while improving service
and efficiency today.
We will work diligently to prepare for our 2024 filing, which
will reflect the need for investment to adapt to and mitigate
climate change impacts, including water supply challenges.
We expect our growth to continue, as we diligently invest
in our infrastructure and pursue opportunities to serve
new communities. Already, in the first quarter of 2023, we
reached an agreement to purchase Lake Section Water
Company in Chaparral, New Mexico, which serves 5,000
customer connections.
And, most importantly, we will maintain our focus on
people — we will bring our employees together and keep
them engaged in fulfilling our mission; we will give to worth-
while charitable organizations; and we will pursue grants
and financial assistance to help our customers.
Thomas A. Scanlon, our Corporate Controller & Principal
Accounting Officer; and Justin B. Skarb, our Vice Presi-
dent, Government & Community Affairs. We also con-
gratulate and thank Scott L. Morris, who has assumed
the role of Lead Independent Director while Terry P. Bayer
is on medical leave. Our proxy details the wide range of
expertise and experience possessed by both our Board
and our Officer team; we hope you’ll take a moment to
review their impressive resumés.
With that, we wish you health, happiness, and prosperity
in 2023 and thank you for your investment in California
Water Service Group.
martin a. kropelnicki
President & Chief Executive Officer
A dedicated and top-notch crew is on board to navigate us
forward, including the newest additions to our officer team:
Shawn C. Bunting, our new Vice President, General Counsel;
peter c. nelson
Chairman of the Board
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Financial Highlights*
Dollars in thousands, except per
common share data
“ I am truly blessed to be part of
our ‘One Team’ workplace. This is
an extraordinary company, solid
in both good and tough times.”
— pete nelson, chairman
year ended december 31
2022
2021
2020
2019
2018
Market price at year end
$60.64
$71.86
$54.03
$51.56
$47.66
Book value per share
$23.70
$21.72
$18.08
$15.84
$15.19
Earnings per share (diluted)
Dividend per share
$1.77
$1.00
$1.96
$0.92
$1.97
$1.31
$1.36
$0.850
$0.790
$0.750
Operating revenue
$846,431
$790,909
$794,307
$714,557
$698,196
Net income attributable to
California Water Service Group
$96,011
$101,125
$96,831
$63,116
$65,584
*Certain numbers reflect prior period adjustments. See Form 10-K for details.
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CWT 20-year total
return on investment
On $100 stock purchase on January 1, 2003,
with dividends reinvested
S&P 500
CWT
$1,019
$891
$770
$746
$695
$626
$593
$586
$624
$507
$439
$403
$383
$100 $100
$124 $120
$165
$137
$147
$179
$168
$190
$175 $182
$234
$115
$194
$143
$204
$205
$164
$168
$304
$289
$289 $294
$331
$268
$252
$217
$197
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
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CWT 20-year total
return on investment
On $100 stock purchase on January 1, 2003,
with dividends reinvested
$1,019
$891
$770
$746
$695
S&P 500
CWT
$626
$593
$586
$624
$507
$439
$403
$383
$304
$289
$289 $294
$331
$268
$252
$217
$197
$165
$137
$147
$179
$168
$190
$175 $182
$194
$143
$204
$205
$164
$168
$234
$115
$100 $100
$124 $120
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
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Eight-year
financial review*
Dollars in thousands, except per common
share data and as otherwise noted
summary of operations
Operating revenue
Operating expenses
Interest expense, other income and expenses, net
Net income
common share data
Earnings per share (diluted)
Dividend declared
Dividend payout ratio
Book value
Market price at year end
Common shares outstanding at year end (in thousands)
Return on average common stockholders’ equity
Long-term debt interest coverage
balance sheet data
Net utility plant
Total assets
Long-term debt, including current portion
Capitalization ratios:
Common stockholders’ equity
Long-term debt
other data
Water production (in million gallons)
Customers at year end, including Hawthorne and Commerce
New customers added
Operating revenue per customer
Utility plant per customer
Employees at year end
2022
$846,431
$718,771
$32,397
$96,011
$1.77
$1.00
57%
$23.70
$60.64
55,598
7.7%
3.31
$3,058,870
$3,850,752
$1,055,797
55.6%
44.4%
106,945
553,000
5,400
$1,531
$8,203
1,225
* Certain numbers reflect prior period adjustments.
See Form 10-K for details.
28
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2021
$790,909
$664,139
$25,791
$101,125
$1.96
$0.920
47%
$21.72
$71.86
53,716
9.7%
3.52
2020
$794,307
$657,641
$39,835
$96,831
$1.97
$0.850
43%
$18.08
$54.03
50,334
11.5%
3.87
2019
$714,557
$615,145
$36,296
$63,116
$1.31
$0.790
60%
$15.84
$51.56
48,532
8.4%
3.10
2018
$698,196
$587,656
$44,956
$65,584
$1.36
$0.750
55%
$15.19
$47.66
48,065
9.2%
3.57
2017
$676,113
$569,030
$34,143
$72,940
$1.52
$0.720
47%
$14.56
$45.35
48,012
10.7%
4.58
2016
$609,370
$526,734
$33,961
$48,675
$1.01
$0.690
68%
$13.75
$33.90
47,965
7.5%
3.45
2015
$588,368
$506,803
$36,548
$45,017
$0.94
$0.670
71%
$13.41
$23.27
47,875
7.1%
3.67
$2,846,862
$3,623,271
$1,060,986
$2,650,558
$3,394,248
$786,227
$2,406,370
$3,111,308
$808,622
$2,232,723
$2,837,704
$814,938
$2,047,965
$2,744,710
$531,713
$1,859,277
$2,411,745
$557,953
$1,701,768
$2,241,253
$514,045
52.5%
47.5%
110,519
547,600
4,600
$1,444
$7,665
1,182
53.7%
46.3%
110,742
543,000
22,400
$1,463
$7,165
1,192
49.4%
50.6%
104,735
520,600
3,100
$1,373
$6,820
1,207
47.3%
52.7%
107,589
517,500
3,200
$1,349
$6,240
1,184
56.8%
43.2%
104,986
514,300
2,800
$1,315
$5,775
1,176
54.2%
45.8%
99,096
511,500
2,500
$1,191
$5,312
1,163
55.5%
44.5%
98,899
509,000
2,900
$1,156
$4,925
1,155
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Fair winds and
following seas
our people, our company
It’s the people who make our company special, and
many of them choose to enjoy long careers with us
before embarking on their retirement journeys.
officers & directors
retiring in 2022 & 2023
David B. Healey, Vice President & Corporate
Controller, retired in December 2022 after 13 years
of service.
Lynne P. McGhee, Vice President, Legal Counsel,
retired in March 2023 after 19 years of service.
Paul G. Townsley, Vice President, Corporate
Development, will retire in May 2023 after
10 years of service.
Peter C. Nelson, Chairman of the Board, will retire
in May 2023, after 27 years of service. He began his
career as President & Chief Executive Officer in 1996.
He has served as Chairman of the Board since 2012.
Lisa Peralta
Senior Engineering
Assistant
34 years of service
Charles (Richard) Schuppe
Risk Manager
41 years of service
Steven Cavallini
General Superintendent
34 years of service
Stanley Ellis
Water Quality Technician
28 years of service
Joel Huntington
Foreman Construction &
Operations
40 years of service
Curtis Reynolds
Regional Foreman
Flushing & Valve
Maintenance
39 years of service
team members
retiring in 2022
with more
than 25 years
of service
Emma Martinez
Senior Clerk
30 years of service
Gary Vincelet
Interim Local Manager
32 years of service
Russell Chisam
Distribution Service
Technician
26 years of service
Richard Velasquez
Regional Foreman
Construction & Operations
35 years of service
Alejandro Portillo
Certified Pump Operator
34 years of service
Scott Moore
Foreman, Pump &
Control Valves
35 years of service
Annabelle Bungubung
Senior Control Clerk
38 years of service
Pascal Ansolabehere
Distribution
Service Technician
30 years of service
Kathleen Hoffman
Regional Customer
Center Service Manager
32 years of service
Philip Delgado
Superintendent
30 years of service
Ricky Shepard
Superintendent
26 years of service
Regina Carter
Administrative Assistant
35 years of service
Wayne Lechich
Superintendent
30 years of service
Laura John
Operations Clerk
36 years of service
Mark Markham
Certified Pump Operator
43 years of service
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“ In their own unique ways, these people
have made a mark on this company
and leave a legacy that won’t be
forgotten. It is with deepest thanks
and utmost respect that I wish them
the best and assure them we will carry
on fulfilling our shared mission and
making a positive impact.”
— marty kropelnicki, president & chief executive officer
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s
r
o
t
c
e
r
i
d
f
o
d
r
a
o
B
Terry P. Bayer
Former Chief Operating
Officer, Molina Healthcare Inc.
Director since 2014. On medical leave.
Martin A. Kropelnicki
President and Chief
Executive Officer of California
Water Service Group
Director since 2013.
Gregory E. Aliff
Former Vice Chairman and
Senior Partner of U.S. Energy
& Resources, Deloitte LLP
Director since 2015. Chair of the Audit
Committee. Member of the Finance and Capital
Investment Committee and Enterprise Risk
Management, Safety, and Security Committee.
Shelly M. Esque
Former Vice President and
Global Director of Corporate
Affairs, Intel Corporation
Director since 2018. Member of the
Enterprise Risk Management, Safety, and
Security Committee and Nominating
and Corporate Governance Committee.
Thomas M. Krummel, M.D.
Emile Homan and Chair
Emeritus, Department of
Surgery, Stanford University
School of Medicine
Director since 2010. Chair of the Organization
and Compensation Committee. Member of the
Nominating and Corporate Governance Committee.
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s
r
o
t
c
e
r
i
d
f
o
d
r
a
o
B
Yvonne A. Maldonado, M.D.
Professor of Global Health and Infectious
Diseases, Departments of Pediatrics and
Epidemiology and Population Health,
Stanford University
Director since 2021. Member of the Enterprise Risk
Management, Safety, and Security Committee and
Nominating and Corporate Governance Committee.
Peter C. Nelson
Chairman of the Board of
California Water Service Group
Director since 1996
Lester A. Snow
Former Director of the California
Department of Water Resources
Director since 2011. Chair of the Enterprise Risk
Management, Safety, and Security Committee. Member
of the Finance and Capital Investment Committee and
Organization and Compensation Committee.
Scott L. Morris
Chairman,
Avista Corporation
Director since 2019. Lead Independent Director,
Chair of the Nominating/Corporate Governance
Committee. Member of the Audit Committee and
Organization and Compensation Committee.
Carol M. Pottenger
Principal and Owner of
CMP Global, LLC, and Retired
U.S. Navy Vice Admiral
Director since 2017. Member of the Enterprise
Risk Management, Safety, and Security
Committee, Finance and Capital
Investment Committee, and Nominating/
Corporate Governance Committee.
Patricia K. Wagner
Former Group President, U.S.
Utilities, Sempra Energy
Director since 2019. Chair of the Finance and
Capital Investment Committee. Member of the
Audit Committee.
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r
e
c
ffi
o
e
t
a
r
o
p
r
o
C
Sophie M. James
Chief Water
Quality Officer
Shannon C. Dean
Vice President,
Customer Service &
Chief Citizenship Officer
David B. Healey
Vice President &
Corporate Controller
Robert J. Kuta
Vice President, Engineering
& Chief Water Quality
and Environmental
Compliance Officer
Kenneth G. Jenkins
Chief Water Resource
Sustainability Officer
Martin A. Kropelnicki
President &
Chief Executive Officer
Michael B. Luu
Vice President,
Information Technology
& Chief Risk Officer
Michael S. Mares
Vice President,
Operations
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ffi
o
e
t
a
r
o
p
r
o
C
Lynne P. McGhee
Vice President,
General Counsel
Greg A. Milleman
Vice President, Rates
and Regulatory Affairs
Michelle R. Mortensen
Vice President, Corporate
Secretary & Chief of Staff
Daryl L. Osby
Vice President,
Emergency Preparedness,
Safety, and Security
Elissa Y. Ouyang
Vice President,
Procurement and
Facilities
Todd K. Peters
Chief Engineering Officer
Thomas F. Smegal, III
Vice President,
Chief Financial Officer &
Treasurer
Paul G. Townsley
Vice President, Corporate
Development
Ronald D. Webb
Vice President, Chief
Human Resource Officer
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Corporate
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anticipated dividend dates for 2023
to transfer stock
QUARTER
DECLARATION
RECORD DATE
PAYMENT DATE
First
January 25
February 6
February 17
Second
April 26
May 8
May 19
Third
July 26
August 7
August 18
Fourth
October 25
November 6
November 17
annual meeting
bond registrar
The Annual Meeting of
Stockholders will be held online
on Wednesday, May 31, 2023,
at 9:30 a.m. PT. 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 19, 2023.
computershare
investor services
462 South 4th Street, Suite 1600
Louisville, Kentucky 40202
U.S. Bank Trust, N.A.
One California Street
San Francisco, California 94111
415.273.4580
executive office
and stockholder
information
California Water Service Group
Attn: Stockholder Relations
1720 North First Street
San Jose, California 95112
408.367.8200 or 800.750.8200
www.calwatergroup.com
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 com-
plete 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, stockbrokers,
savings and loan associations, and credit unions with membership in
approved signature medallion programs) pursuant to SEC Rule 17Ad-15.
A notary’s acknowledgment is not acceptable. This certificate should
then be sent to Computershare Investor Services (Computershare)
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 Computershare.
annual report for 2022 on form 10-k
A copy of the Company’s annual report for 2022 filed with the Securities
and Exchange Commission (SEC) on Form 10-K is available and can be
obtained by any stockholder at no charge upon written request to the
Company. The Company’s filings with the SEC can be viewed via the
link to the SEC’s EDGAR system on the Company’s website.
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1720 North First Street, San Jose, California 95112-4508
Phone: 408.367.8200 | www.calwatergroup.com | NYSE: CWT
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