CALIFORNIA WATER SERVICE GROUP | SUMMARY ANNUAL REPORT 2025
Then. Now. Next.
Celebrating 100 years.
California Water Service Group
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 (TWSC, Inc.), invests in water and
wastewater infrastructure in Texas.
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.
Table of contents
02 Then. Now. Next.
38 Letter to stockholders
44 Our service areas
46 Eight-year financial review
48 Board of Directors
50 Corporate Officers
52 Corporate information
If the last century teaches
us anything about our
Company, it’s that we have
the expertise and tenacity
to overcome challenges.
Through the years, we have contributed to the greater good by
delivering a reliable, affordable, high-quality water supply,
regardless of the obstacles we have faced. This expertise, this
tenacity—together with our commitment to enhancing the quality
of life for our customers, communities, employees, and stockholders—
not only distinguishes our past but foreshadows our future.
Unwavering
commitment
to water safety
2 CALIFORNIA WATER SERVICE GROUP
Safe water sustains life. There is no higher
calling than protecting our water supplies,
thereby contributing to the health, safety,
and well-being of our communities. Through
out our history, we have demonstrated our
commitment to providing a safe, reliable,
affordable water supply. And although
these efforts go largely unseen by the
public, they are part of the legacy that will
take us into
the future.
CALIFORNIA WATER SERVICE GROUP 3
Responding proactively
to evolving standards
Cal Water completes
more PFAS treatment plants
Working to achieve compliance well
ahead of the 2029 effective date for
new water quality regulations related
to certain per- and polyfluoroalkyl
substances (PFAS), Cal Water
completes two treatment plants in
2025, bringing its total to 11 completed
plants. The Company also completes
designs for 26 plants it plans to
construct in 2026.
2025
1974
President Ford signs landmark
water quality legislation
The first law of its kind, the Safe
Drinking Water Act provides a com
prehensive framework for regulating
the quality of the nation’s drinking
water supplies and authorizes the
United States Environmental
Protection Agency to set standards
to protect public health. Cal Water
begins designing treatment facilities
needed to meet new standards.
4 CALIFORNIA WATER SERVICE GROUP
1994
Company installs chlorinators
on all California wells
In just one of several water quality-
related accomplishments in
1994, the Company voluntarily
installs chlorinators on all of its
California wells to reduce the risk
of bacteriological contamination.
It also completes an innovative
treatment system in Bakersfield
to improve taste and odor and
another in Chico to remove volatile
organic compounds.
Adding and removing chlorine
to keep everyone safe
Company receives patent
for dechlorination invention
Although chlorination of drinking
water is considered one of the great
est public health achievements of
the 20th century, chlorinated water
that is released into the environment
can harm fish and other aquatic life.
To solve the problem, a creative
group of Cal Water engineering and
operations employees invents a
device that automatically removes
chlorine before treated drinking
water reaches natural waterways.
2016
6 CALIFORNIA WATER SERVICE GROUP
RIGHT Operations employee
collects water sample to check
chlorine residual.
ABOVE Our patented
dechlorination invention protects
fish like this Rainbow Trout.
1941
Cal Water prepares
for enemy attacks
Cal Water works with the Office
of Civilian Defense and other
government agencies to safeguard
water supplies from enemy attacks.
It blacks out windows, adds tele
phones that connect directly to local
Civilian Defense Headquarters, and
establishes lines of communication
with employees. Practice tests and
authentic alerts confirm the efficacy
of wartime preparations.
Protecting infrastructure
from attacks
Cybersecurity efforts protect
water infrastructure
The Company establishes a formal
cybersecurity strategy and program
in response to the rising threat of
cyberattacks by foreign nation-
states on critical infrastructure. In
partnership with the Federal Bureau
of Investigation and the Department
of Homeland Security, the Company
follows best practices to help
protect its infrastructure as
informed by the National Institute
of Standards and Technology (NIST)
Cybersecurity Framework.
2012
LEFT Vintage poster reminds the
public of the importance of black
outs during WWII; concerned
citizens cover windows.
Community
support through
good times
and bad
8 CALIFORNIA WATER SERVICE GROUP
For us, community support takes many
forms. It’s effectively preparing for and
responding to emergencies. It’s doing what
we can to help people through difficult
times. It’s keeping the water flowing when
disaster strikes. It’s supporting the
people and organizations that share our
commitment to improving the quality of
life. Doing all of this has helped us thrive
in the past, and it will help us
thrive well
into the
future.
CALIFORNIA WATER SERVICE GROUP 9
Contributing to
the greater good
Employees make a difference
during Season of Service
Employees throughout the Company
celebrate Season of Service by
volunteering at local charities. They
roll up their sleeves, both to donate
blood and clean up local parks. They
get crafty, making toys for shelter
animals and “Happy Hats” for kids
in hospitals. They fill boxes of food,
care for pollinator gardens, and
partner with law enforcement on
clean-up projects.
2025
2019
Cal Water launches
Firefighter Grant Program
Cal Water launches its Firefighter
Grant Program, open to all uniformed
professional or volunteer fire
departments in its service areas, as
a demonstration of its commitment
to—and partnership with—local
firefighters. In its first year, the
program provides funding for fire
hoses, turnout gear, helmets, a fire
detection and monitoring system,
and a hydraulic emergency ram.
10 CALIFORNIA WATER SERVICE GROUP
1997
Employees keep water system
running during massive floods
Torrential rains and weakened levees
lead to the evacuation of Cal Water’s
entire Marysville service area. Our
priority is keeping the system pres
surized to prevent any flood waters
from contaminating our water. We
use emergency generators and keep
our elevated storage tank full. The
levees around Marysville hold, but
others fail, leaving the entire city
surrounded by water.
Going above and beyond
when disaster strikes
The CEO shows up to lift
community spirits
Record storms damage the Oroville
Dam, creating a risk of catastrophic
flooding. Two days before Valentine’s
Day, nearly 200,000 people are
evacuated, including Cal Water’s
Oroville District customers. While
operations crews work tirelessly
to protect the water system, CEO
Marty Kropelnicki buys all the See’s
candy he can find and personally
distributes it to evacuees. The
Company provides free movie
tickets for evacuated families.
2017
12 CALIFORNIA WATER SERVICE GROUP
LEFT Our Marysville service area
becomes an island as floodwaters
engulf surrounding communities.
Photo: Yuba Water Agency
BELOW CEO Marty Kropelnicki
delivers sweets from Cal Water
customer See’s Candies to
evacuees during the Oroville
Dam emergency.
1952
Bakersfield system holds up
through destructive earthquake
Earthquakes hit Southern California
in July and August 1952, causing
an estimated $100 million in
widespread damage. The City of
Bakersfield is severely impacted, but
the Company’s Bakersfield system
only suffers about $35,000 in
damage, including the loss of an
elevated storage tank. Cal Water
provides uninterrupted water service
both during and after the disaster;
it uses what it learns about storage
tanks to strengthen infrastructure in
preparation for future disasters.
Being there during
and after emergencies
Heroic employee efforts
keep water flowing during fire
The Mendocino Complex Fire
burns for more than three months
in Northern California, consuming
nearly 460,000 acres. The
Company’s Lucerne customers are
among those evacuated. Cal Water
employees are escorted into the
fire zone by firefighters to keep the
water system running. When
evacuated customers return, they are
greeted by employees distributing
food staples and bottled water.
2018
BELOW Cal Water’s only major
loss during the Bakersfield
earthquake is this elevated tank,
but the broader community
experiences significant damage.
14 CALIFORNIA WATER SERVICE GROUP
Investing in
infrastructure
that stands the
test of time
One of the most impactful things we do
for customers is invest responsibly in
water system infrastructure that will stand
the test of time. Continually maintaining
and upgrading pipes, pumps, treatment
plants, wells, fire hydrants, and other
critical infrastructure enables us to deliver
a safe, reliable water supply,
both now
and in
the future.
CALIFORNIA WATER SERVICE GROUP 15
Partnering to secure
additional water supplies
Recycled water adds to
water supply portfolio
Cal Water partners with the West
Basin Municipal Water District and
invests in two projects that will
bring approximately 2 billion gallons
of recycled water per year to its
Rancho Dominguez District. The first
project will enable the Company to
deliver non-potable recycled water
for irrigation of the Palos Verdes
Golf Club. The second will increase
the amount of highly treated recycled
water delivered to a refinery in Carson.
2025
2003
Cal Water partners with city of
Bakersfield to secure more water
To serve 15,000 new customers in
Bakersfield and diversify its water
supply sources, Cal Water completes
the construction of a treatment plant
that can produce 20 million gallons
of water per day. The Northeast
Water Supply Project uses membrane
filtration to treat surface water from
the Kern River—a supply that is
secured through a partnership with
the City of Bakersfield.
16 CALIFORNIA WATER SERVICE GROUP
1945
Company builds water system
infrastructure after the war
Although war-related government
restrictions on use of materials
aren’t eliminated until late in the
year, Cal Water invests in infrastruc
ture needed to serve its growing
communities. The Company installs
60 miles of new water main, drills
and equips seven new wells and
pump stations, completes five new
booster pumps, and erects seven
new storage tanks.
Building despite
the obstacles
Cal Water completes highly
complex water reliability project
After more than 15 years of planning,
two years of construction, and an
unprecedented amount of collabora
tion with the community, Cal Water
completes the Palos Verdes
Peninsula Water Reliability Project.
Spanning four cities, the complex
project involves adding a massive
water transmission line and other
infrastructure needed to avoid
reliance on a single, 60-year-old
water line.
2020
LEFT In the early days, elevated
storage tanks utilized gravity to
provide adequate pressure.
1932
Reservoir stores water for
use in drier seasons
Cal Water completes the Chenery
project, the centerpiece of which
is a one-billion-gallon reservoir in
Concord, California. During the
winter and spring, the reservoir
receives approximately 22 million
gallons of water daily from the
Suisun Bay, which is stored to meet
summertime needs. The project will
meet the needs of the Company’s
200-square-mile Contra Costa
District for the next 20 years.
Adding storage to provide
water when needed
Cal Water completes
small-footprint storage project
Cal Water completes a four-
million-gallon storage tank in its
Westlake District. It replaces an
existing tank that became unstable
due to ground movement and
deterioration. Its innovative design,
which allowed the new tank to be
constructed within the existing tank
to eliminate the need for new land,
earns a Merit Award for Engineering
Excellence from the American
Council of Engineering Companies.
2011
BOTTOM RIGHT Award-winning
Harris Reservoir is built within the
existing tank.
BOTTOM LEFT Company
“suits” strike a pose at the site of
the massive Chenery Reservoir.
20 CALIFORNIA WATER SERVICE GROUP
Seizing growth
opportunities
for good
In the early days, growth opportunities
were as plentiful as the California sunshine,
and despite our conservative, strategic
approach to acquisitions, we were the
largest private water utility in the west
within five years of our founding. Today, we
continue to evaluate whether an acquisition
makes sense, not just for our stockholders,
but for our existing customers and the
customers we would be serving. Our focus
is on adding value for all concerned,
both now and
into the
future.
CALIFORNIA WATER SERVICE GROUP 21
1999
Company establishes first
operation outside of California
The Company establishes its first
operation outside of California when
it acquires Harbor Water Company in
Gig Harbor and South Sound Utilities
in Olympia, two companies whose
history of designing and constructing
water systems dates back to 1975.
The newly formed entity, Washington
Water Service, retains a local team
of 22 professionals serving about
47,000 people through 14,800
customer connections.
Company agrees to become
sole owner of Texas utilities
The Company’s Texas subsidiary
enters into an agreement to purchase
the remaining membership interests
of BVRT Utility Holding Company
LLC and become the sole owner of its
seven water and wastewater utilities
in the Austin-San Antonio corridor.
One of these, Camino Real Utility
Company, signs an agreement to
extend wastewater infrastructure to
serve an adjacent development that
is expected to include 5,000 equiva
lent dwelling units at buildout.
2025
Establishing a presence
outside of California
22 CALIFORNIA WATER SERVICE GROUP
CELEBRATING 100 YEARS 05
CELEBRATING 100 YEARS
05
1931
First five years see
tremendous growth
By the end of 1931, Cal Water is the
largest regulated water utility on the
pacific coast, providing service to
73,000 customers in California, with
service areas ranging from Redding
in the north to Los Angeles in the
south. It has added 24 service areas
since 1926, capping a five-year
period of tremendous growth.
Growing by leaps
and bounds
Company completes largest
acquisition to date
The Company completes its largest
acquisition yet with the purchase
of Dominguez Service Corporation,
a Los Angeles–area water utility
formed in 1911 to irrigate the
farmlands of the first and largest
Spanish land grant, gifted to
Juan Jose Dominguez for his military
service to the Spanish crown.
The acquisition adds nearly 40,000
customer connections in and
around Carson, California.
2000
RIGHT Dominguez Water’s bull
logo reflects the purpose of its
formation: to irrigate ranchland
used to raise cattle.
BELOW Cal Water expands to
serve the many new communities
formed to accommodate a
booming population.
1970
Higher density housing proliferates
in California service areas
A lack of available space and
higher land prices result in the
proliferation of apartments and other
multifamily dwellings in Cal Water’s
service areas, notably on the
San Francisco Peninsula and in
Los Angeles County. The 1971
Annual Report to Stockholders
features images of lushly landscaped
and swimming pool–studded
developments in Cupertino,
Livermore, and Redondo Beach.
Meeting customers
where they are
Company provides reliable,
high-quality water to rural areas
Cal Water announces a partnership
with the County of Tulare,
Department of Water Resources,
and a local non-profit organization
that will enable it to serve 50
customers in a rural disadvantaged
community. The community, whose
groundwater wells are failing and
whose water does not meet water
quality standards, will be connected
to Cal Water’s Visalia District system.
2022
CALIFORNIA WATER SERVICE GROUP 25
ABOVE Cal Water’s annual report
showcases the multi-family resi-
dences that are springing up in its
highly populated communities.
26 CALIFORNIA WATER SERVICE GROUP
Customer
service that
meets the
moment
Customer needs and expectations change
over time, and from the beginning, we have
provided service that meets the moment.
The key for us is to understand how current
events, economic conditions, and advances
in technology are impacting customers’
daily lives. Armed with that knowledge,
we go above and beyond to
enhance
their
experience.
CALIFORNIA WATER SERVICE GROUP 27
Helping customers grow
what’s right for the times
Plant Local program focuses
on native species
Cal Water introduces its Plant Local
program, designed to help customers
conserve water and support local
ecosystems by planting California-
native species. The initiative
encourages homeowners to replace
traditional lawns with drought-
tolerant plants that thrive in our
climate, reduce outdoor water use,
and attract pollinators. As part of
the launch, Cal Water hosts 17
community events attended by an
estimated 3,000 customers.
2025
1944
Cal Water supports victory gardens
To support the war effort on the
homefront, Americans across the
country grow fruits and vegetables to
supplement the nation’s food supply.
Survey results indicate that 80% of
Cal Water’s customers are cultivating
these “Victory Gardens.” To support
their efforts, Cal Water offers bill
credits that lower participating
customers’ bills.
28 CALIFORNIA WATER SERVICE GROUP
2007
Cal Water is among the first to
offer low-income discounts
Cal Water becomes one of the two
large California Public Utilities
Commission–regulated water
utilities to offer a low-income rate
assistance program, which provides
a discount on the monthly water bill
to qualified households, non-profit
group homes, and agricultural
employee housing. Customers can
qualify simply by showing that they
receive a low-income discount from
their electricity supplier.
Holding out a hand to
those who need it most
Company secures grant
funding to help customers in
need during pandemic
The Company secures more than $20
million in grant funding to pay down
water bill balances for customers
affected by the continuing global
pandemic. Personal contributions of
$600,000 from the Board and
Executives augment annual corporate
philanthropy, which enables the
Company to donate $1.6 million to
non-profit organizations that are
struggling to keep up with greater
community need.
2021
30 CALIFORNIA WATER SERVICE GROUP
BELOW AND LEFT Children are
a big part of Cal Water’s philan-
thropy, whether they are playing
at the Boys & Girls Club or pick-
ing up new shoes for school.
1947
Customer billing is a manual effort
Employees in the Central Billing
Office located in our Stockton
District manually calculate
customer bills using handwritten
meter reads, massive cash registers,
and mechanical addressographs.
Remarkably, water rates are the
same in 1947 as they were when the
Company was founded in 1926. The
conversion to computerized billing
won’t take place until 1968.
Providing service that
meets today's needs
Expanded bills offer customers
water use information
Water and electricity supplies are
strained by continuing drought, and
customers need more information
on their usage. To meet this need,
Cal Water introduces an expanded
bill design to replace its smaller,
card-sized format. The new bill
provides a 12-month consumption
history, detailed cost calculations,
and space for conservation and
other important messages.
1984
ABOVE Employees pause
for a photo at a barbecue,
one of many barbecue meals
shared over the years.
RIGHT Employees in the
Stockton office prepare
bills manually in the 1940s.
Strategic
planning for
water supply
resilience
32 CALIFORNIA WATER SERVICE GROUP
When there is enough water, families thrive,
communities grow, businesses prosper, and
firefighters save lives. Since the day we were
founded, we have found ways to overcome
supply challenges posed by limited local
water supplies, a growing population, and
frequent periods of drought. What we have
learned from the past will make us
even better in
the decades
to come.
CALIFORNIA WATER SERVICE GROUP 33
Strategically utilizing
water supplies
Maximizing use of local water
supplies supports affordability
Cal Water drills six new wells in 2025
as part of its well replacement program.
The well replacement program is a
priority for the Company because
responsibly produced local ground
water is more reliable and often
more affordable for customers than
supplemental water purchased from
outside its service areas. Notably,
two wells in the Rancho Dominguez
District in the Los Angeles area allow
the Company to utilize groundwater
rights dating back to the early 1900s.
2025
1960
Cal Water secures water to
supplement local supplies
In the 1960s, with the population
continuing to boom, the emphasis is
on securing and storing supplemental
water supplies. Cal Water works with
the State of California to secure State
Water Project deliveries and with
other agencies on long-term water
supply agreements. It builds tanks
and pipelines to deliver supplemental
supplies when and where they
are needed.
34 CALIFORNIA WATER SERVICE GROUP
1948
Growing population and drought
conditions strain supplies
The combination of population
growth and drought is a recurring
challenge in the Company’s history.
After World War II, the population
in California explodes, growing more
than 53% from 1940 to 1950. That,
combined with what Company
President Ralph Elsman characterizes
as “abnormally low rainfall” in 1948,
poses a challenge that Cal Water
overcomes through its “policy of
planned development of sources
of supply.”
Responding to droughts
and population growth
Cal Water takes customer-first
approach to drought response
Cal Water faces one of the worst
droughts in history. The Company
takes a “customer first” approach
to meeting ambitious water-use-re
duction targets set by the State of
California, establishing individual
customer water budgets and setting
up a system for surcharges, appeals,
and drought credit banking. It offers
a range of educational and rebate
programs to help customers achieve
conservation goals.
2015
ABOVE More and more homes
are built as postwar population
soars; Cal Water annual report
delineates growing service areas.
BELOW Cracked, dry earth
is a common sight for
drought-weary Californians.
1988
Cal Water partners with educators
to promote conservation
In yet another severe drought,
Cal Water partners with the California
Department of Water Resources
to hold workshops for teachers on
water science and water-related
activities. It also sponsors a theatrical
production for grade school students
by the Small Change Theatre Group
entitled “Alice in Waterland.”
Teaching customers of the
future about water conservation
Disney educational program
sparks student interest in water
Twenty years later, during a
shorter but notable drought period
that spans from 2007 to 2009,
Cal Water brings the wonder of
water and the magic of Disney to
elementary school students in its
service areas through sponsorship
of a Disney education program.
Another collaboration with teachers,
“Environmentality” involves environ
ment-related student pledges and
classroom projects.
2008
CALIFORNIA WATER SERVICE GROUP 37
ABOVE From “Alice in Waterland”
to Disney’s “Environmentality,”
Cal Water uses entertainment to
teach kids about water conservation.
Chairman’s
letter
We commemorate our 100th anniversary by celebrating the legacy
that foreshadows our next 100 years. Because we haven’t just sur
vived a century; we’ve shown time and again our ability to overcome
challenges and thrive for a century. And as Confucius once said,
“Study the past, if you would divine the future.”
You see glimpses of our impressive history in this report; for a more
complete timeline and a treasure trove of historical photographs and
documents, please visit 100years.calwatergroup.com.
EXPANDING OUR FOOTPRINT INTO TWO NEW STATES
Kicking off our centennial year with yet another milestone, we announced
in February an agreement to purchase the Nevada and Oregon water
and wastewater systems of Nexus Water Group. The acquisition,
which is subject to customary closing conditions and approvals, will
add approximately 36,000 equivalent residential connections in two
new states, establish a platform for additional growth, and bolster
our position as the largest investor-owned water utility in the western
United States. We hope to receive regulatory approvals for the acqui
sition in late 2026.
POISED FOR GROWTH IN TEXAS
We also reached an agreement to purchase the remaining outstand
ing membership interests in BVRT Utility Holding Company LLC. The
transaction will make our subsidiary Texas Water Service (TWSC, Inc.)
the sole owner of seven water and wastewater utilities in the high-
growth Austin-San Antonio corridor. Together, these utilities serve
5,000 customer connections and have approximately 14,000 addi
tional customer connections under contract.
38 CALIFORNIA WATER SERVICE GROUP
ANNUAL DIVIDEND
PER COMMON SHARE
CAPITAL INVESTMENT
IN INFRASTRUCTURE
2021
FINANCIAL HIGHLIGHTS*
Year ended December 31
Market price at year end
Book value per share
Earnings per share (diluted)
Dividend per share
Operating revenue
Net income attributable
to California Water
Service Group
2024
$45.33
$1.12
2023
$51.87
$25.82*
$2.00*
$1.04
$882,114*
$115,891*
2022
$60.64
$23.70
$1.77
$1.00
$846,431
$96,011
2025
$43.33
$28.33
$2.15
$1.24
$1,000,140
$128,211
2021
$71.86
$21.72
$1.96
$0.92
$790,909
$101,125
Dollars in thousands, except per common share data
2022
2023
2024
2025
2021
2022
2023
2024
2025
*Indicates non-GAAP amounts. The effects of the interim rate relief recorded in 2024 related to the delayed 2021 CA GRC decision
were included in the 2023 non-GAAP revenue, net income, and earnings per share and excluded from the 2024 non-GAAP revenue,
net income, and earnings per share. Specifically, the 2023 non-GAAP amounts include revenue of $87.5 million, net income of $64.0
million, and $1.09 diluted earnings per share added to GAAP balances of $794.6 million in revenue, net income of $51.9 million, and
$0.91 diluted earnings per share. The 2024 non-GAAP amounts exclude revenue of $87.5 million, net income of $64.0 million, and
$1.09 diluted earnings per share from GAAP balances of $1,036.8 million in revenue, net income of $190.8 million, and $3.25 diluted
earnings per share. Non-GAAP information is presented to enable stockholders to better assess the Company’s 2025 financial
performance by showing 2024 results without the impact of the 2023 interim rate relief. Ratios, percentages, and other information
dependent on earnings are presented using non-GAAP earnings results.
*CAGR: Compound annual growth rate
**Includes one-time dividend of $0.04 per common share
CALIFORNIA WATER SERVICE GROUP 39
$949,324*
$126,827*
$26.42*
$2.16*
CELEBRATING 2025 ACCOMPLISHMENTS
It’s been an exciting start to our centennial year, and I look forward to
the rest of 2026. But before we move ahead, I want to highlight a few
key 2025 accomplishments:
We met or surpassed all water quality standards set to protect
public health and safety, constructed two PFAS treatment plants,
and completed design on an additional 26 PFAS treatment plants.
We invested a record $517 million in water system
infrastructure to provide safe, reliable water service to customers.
We introduced Walmart Bill Pay to support customers in need
of a convenient way to pay by cash or debit card.
We contributed nearly $2 million to charitable organizations
serving our communities, and nearly 50% of our employees
volunteered their time during our Season of Service.
We entered into a 20-year agreement to purchase power from
a solar photovoltaic array to be installed at our Northeast
Bakersfield Treatment Plant.
We made USA Today’s 2025 List of “American Climate Leaders”
and were named “One of America’s Greenest Companies”
by Newsweek.
We entered into an agreement to own and operate wastewater
and recycled water systems serving a master-planned,
mixed-use development in San Bernardino County, California,
with 500 customers initially and up to 15,000 at full buildout.
We were named a Great Place to Work for the 10th
consecutive year.
We earned an A+/Stable rating from S&P Global for California
Water Service Group, one of the highest credit ratings in the
domestic utility space.
We increased our annual dividend by 10.71%, or $0.12, to $1.24
per common share, which includes a special one-time dividend
of $0.04 per common share.
40 CALIFORNIA WATER SERVICE GROUP
AWAITING A DECISION ON OUR 2024 GRC
As this report goes to press, we await the California Public Utilities
Commission’s decision on our California 2024 General Rate Case
(GRC). In our application, we request revenue increases of $296.6
over three years and authorization to invest $1.6 billion in water
system infrastructure from 2026 to 2028. I expect to receive the
decision by the end of the first quarter of 2026.
LOOKING TO 2026 AND BEYOND
The next year and beyond will be exciting, as we integrate new
utilities and pursue growth opportunities that come our way in the
western United States, including Nevada, Oregon, and Texas. We will
also make investments in water system infrastructure to continue
providing a safe, reliable water supply and affordable, excellent
service to our customers and communities.
We are enjoying a unique moment in our Company’s history: a time
to celebrate the past and look forward to the future. It’s also a time
to pause and consider how exceedingly rare it is for a business
to make it to 100 years old—by most estimates, less than 1% of
all businesses achieve this milestone. We are in good company,
joining the likes of Coca-Cola, Proctor & Gamble, Kellogg’s,
Johnson & Johnson, and Harley Davidson.
For us, the key to success has been and will continue to be a
commitment to doing the right thing, making lives better, and fulfilling
our mission. We’ve done it for 100 years and we’re ready to do it for
100 more. Thank you for your continued trust and investment in
California Water Service Group.
Martin A. Kropelnicki
Chairman, President & Chief Executive Officer
CALIFORNIA WATER SERVICE GROUP 41
What an exciting time to be part of this great, 100-year-old company!
I was drawn to California Water Service Group by its strong vision,
values, and strategy. During my tenure, it’s become clear that this
team operates as One Team, working together to achieve a shared
mission: provide safe, reliable, and affordable water and wastewater
services to customers.
Looking back through our history, I’m impressed by the significant
challenges we’ve overcome to fulfill our purpose and enhance the
quality of life for our customers, communities, and stockholders. I don’t
know what the next 100 years will bring, but I believe that we will be
successful by staying true to who we are: a company with a legacy of
strong vision, values, and strategy.
Our centennial year has started off with some exciting growth oppor
tunities that position us well for continued expansion. I know I speak
for the entire Board of Directors when I say we are looking forward to
providing insight and guidance to management as it navigates what
lies ahead. We thank you for your continued investment in California
Water Service Group.
Lead Independent
Director letter
Scott L. Morris
Lead Independent Director
42 CALIFORNIA WATER SERVICE GROUP
NEXT . . .
We want to thank employees who retired in
2025. As you look to your next chapter, may
you see only good health and happiness
ahead. A special thank you to those retiring
with 25 years of service or more:
Judy Randall
Manager, Construction
Accounting
37 years
Robert Hanson
Electrical/Mechanical
Technician
36 years
Rocky Lundy
Superintendent
35 years
Michael Hanson
Treatment Plant
Operator Grade III
34 years
Jeffrey Freeman
Sub-Structure
Locating Technician
34 years
Patricia Herron
Superintendent
34 years
Darryl Jountti
Foreman, Operations
& Maintenance
34 years
Thomas Sillert
T-6 Senior SCADA/
Autocad Specialist
33 years
Eliot Harper
Certified Pump Operator
32 years
THEN. NOW.
CALIFORNIA WATER SERVICE GROUP 43
1927
Paid our first
dividend to
shareholders
2025
Paid our 323rd
consecutive
quarterly dividend
1986
Made Forbes’
list of “200 Best
Small Companies
in America”
2025
Included in USA
Today’s “List of
American
Climate Leaders”
1994
Closed first year
on NYSE with a
market cap
of $199.9 million
2025
Closed 2025 with
a market cap of
$2.6 billion
Leonard Clewett
Cross Connection
Control Specialist
32 years
Christopher Tran
Manager, IT Architecture
32 years
Linda Przybyla
Engineering Coordinator,
New Business
32 years
Daniel Guardado
Foreman, Construction
& Operations
30 years
John Munoz
Regional Foreman,
Flushing & Valve
Maintenance
28 years
James Douglas
Superintendent
27 years
Lawrence Mansfield
Distribution Service
Technician, Water
Quality Technician
27 years
Anne Andrijasevich
Regional Customer
Service Representative
26 years
Fabian Ramirez
Foreman, Hydrant
Maintenance
25 years
~
CALIFORNIA DISTRICTS
Bakersfield
Bay Area Region (serving
South San Francisco, Colma,
Broadmoor, San Mateo, San
Carlos, Lucerne, Duncans Mills,
Guerneville, Dillon Beach,
Noel Heights, and portions
of Santa Rosa)
Bear Gulch (serving portions
of Menlo Park, Atherton,
Woodside, and Portola Valley)
Dixon
East Los Angeles
Kern River Valley
Livermore
Los Altos (including portions
of Cupertino, Los Altos Hills,
Mountain View, and Sunnyvale)
Los Angeles County Region
(serving Palos Verdes Estates,
Rancho Palos Verdes, Rolling
Hills, Rolling Hills Estates,
Fremont Valley, Lake Hughes,
Leona Valley, and Lancaster)
Marysville
North Valley Region
(serving Chico, Hamilton City,
and Oroville)
Salinas Valley Region
(including Salinas and
King City)
Our service
areas
California
CUSTOMER CONNECTIONS
2025
500,000
2024
499,400
Selma
South Bay Region (serving
Hermosa Beach, Redondo
Beach, Carson, and portions
of Compton, Harbor City,
Long Beach, Los Angeles,
and Torrance)
Stockton
Visalia
Westlake
Willows
2025
2,100,00
1926
85,000
Estimated
population
44 CALIFORNIA WATER SERVICE GROUP
CUSTOMER CONNECTIONS
2025
6,800
2024
6,700
Hawaii
Serving the communities of Ka’anapali,
Kapalua, Pukalani, Waikoloa, North Kona
Coast, Keauhou, Kalaeloa, and Poipu
on the islands of Maui, Hawaii, Oahu,
and Kauai
New Mexico
Serving the communities of Meadow Lake,
Cypress Gardens, Rio Communities, Rio Del
Oro, Elephant Butte, Sandia Knolls, Indian Hills,
Woodland Hills, Squaw Valley, Cedar Crest,
Crouch Mesa/Morningstar, and Monterey
Park in the counties of Sierra, Valencia,
Torrance, Bernalillo, and San Juan
Texas
Serving communities near Castroville,
New Braunfels, Uhland, Kyle, Buda,
Mustang Ridge, Creedmoor, and
Niederwald in the counties of Medina,
Guadalupe, Hays, Caldwell, and Travis
Washington
Serving more than 425 neighborhoods
and small communities in the counties of
Clallam, Jefferson, Kitsap, Mason, Pierce,
King, San Juan, and Thurston
2025
11,800
2024
11,500
2025
4,900
2024
4,200
2025
38,500
2024
38,300
CALIFORNIA WATER SERVICE GROUP 45
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
Interest coverage ratio
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
2025
$1,000,140
$829,771
$42,521
$128,211
$2.15
$1.24
58%
$28.33
$43.33
59,638
7.7%
5.37
$4,579,590
$5,671,165
$1,474,238
53.5%
46.5%
105,741
562,000
1,900
$1,780
$10,515
1,336
Eight-year
financial review
46 CALIFORNIA WATER SERVICE GROUP
Dollars in thousands, except per common
share data and as otherwise noted.
*Non-GAAP amounts. See footnote on page 39, and for more information, go to
www.calwatergroup.com/investors/financials-filings-reports/non-gaap-info.
.
$846,431
$718,771
$32,397
$96,011
$1.77
$1.00
57%
$23.70
$60.64
55,598
7.7%
5.89
$3,472,931
$4,264,813
$1,055,797
55.6%
44.4%
106,945
553,000
5,400
$1,531
$8,203
1,225
$790,909
$664,139
$25,791
$101,125
$1.96
$0.92
47%
$21.72
$71.86
53,716
9.7%
5.95
$2,846,862
$3,623,271
$1,060,986
52.5%
47.5%
110,519
547,600
4,600
$1,444
$7,665
1,182
$794,307
$657,641
$39,835
$96,831
$1.97
$0.85
43%
$18.08
$54.03
50,334
11.5%
5.95
$2,650,558
$3,394,248
$786,227
53.7%
46.3%
110,742
543,000
22,400
$1,463
$7,165
1,192
$714,557
$615,145
$36,296
$63,116
$1.31
$0.79
60%
$15.84
$51.56
48,532
8.4%
5.12
$2,406,370
$3,111,308
$808,622
49.4%
50.6%
104,735
520,600
3,100
$1,373
$6,820
1,207
$698,196
$587,656
$44,956
$65,584
$1.36
$0.75
55%
$15.19
$47.66
48,065
9.2%
5.37
$2,232,723
$2,837,704
$814,938
47.3%
52.7%
107,589
517,500
3,200
$1,349
$6,240
1,184
2024
2023
2022
2021
2020
2019
2018
$811,752
$34,969
$1.12
$45.33
59,484
$4,158,704
$5,180,283
$1,176,993
106,374
560,100
3,700
$9,642
1,278
$2.16*
$949,324*
$126,827*
$717,497
$25,759
$1.04
$51.87
57,724
$3,773,255
$4,595,533
$1,053,440
103,484
556,400
3,400
$8,852
1,266
$2.00*
$115,891*
$882,114*
CALIFORNIA WATER SERVICE GROUP 47
52%*
51%*
$26.42*
$25.82*
8.3%*
8.3%*
5.96*
5.94*
$1,695*
$1,585*
58.8%*
41.2%*
58.7%*
41.3%*
Gregory E. Aliff
Former Vice Chairman
and Senior Partner of
U.S. Energy & Resources,
Deloitte LLP
Director since 2015. Audit Committee,
Chair; Finance and Capital Investment
Committee; Enterprise Risk Management,
Safety and Security Committee.
Shelly M. Esque
Former Vice President
and Global Director of
Corporate Affairs, Intel
Corporation
Director since 2018. Enterprise Risk Man
agement, Safety, and Security
Committee; Nominating/Corporate
Governance Committee.
Jeffrey Kightlinger
Principal and Owner of
Acequia Consulting, LLC,
and Former Chief Executive
Officer, The Metropolitan
Water District of Southern
California
Director since 2023. Audit Committee;
Enterprise Risk Management, Safety and
Security Committee.
Martin A. Kropelnicki
Chairman, President, and Chief
Executive Officer of California
Water Service Group
Director since 2013.
Thomas M. Krummel,
M.D.
Emile Homan and Chair
Emeritus, Department of
Surgery, Stanford University
School of Medicine
Director since 2010. Organization
and Compensation Committee, Chair;
Nominating/Corporate Governance
Committee.
Board of
directors
Yvonne A. Maldonado,
M.D.
Vice Provost for Faculty Advance
ment, Taube Professor of Global
Health and Infectious Diseases,
Professor of Pediatrics and of
Epidemiology and Population
Health—Stanford University
School of Medicine; Attending
Physician—Lucile Packard
Children’s Hospital at Stanford
Director since 2021. Enterprise Risk
Management, Safety, and Security
Committee; Nominating/Corporate
Governance Committee.
Scott L. Morris
Chairman, Avista
Corporation
Director since 2019. Lead
Independent Director; Nominating/
Corporate Governance Committee,
Chair; Organization and
Compensation Committee.
Charles R. Patton
Former Executive Vice President,
External Affairs, American
Electric Power Company, Inc.
Director since 2023. Audit
Committee; Finance and Capital
Investment Committee.
Carol M. Pottenger
Principal and Owner of CMP
Global, LLC, and Retired U.S.
Navy Vice Admiral
Director since 2017. Enterprise
Risk Management, Safety, and Security
Committee; Finance and Capital
Investment Committee; Nominating/
Corporate Governance Committee.
Lester A. Snow
Former Secretary of California
Natural Resources Agency
Director since 2011. Enterprise Risk
Management, Safety, and Security
Committee, Chair; Finance and Capital
Investment Committee; Organization
and Compensation Committee.
Patricia K. Wagner
Former Group President, U.S.
Utilities, Sempra Energy
Director since 2019. Finance and
Capital Investment Committee, Chair;
Audit Committee; Organization and
Compensation Committee.
CALIFORNIA WATER SERVICE GROUP 49
Shawn C. Bunting
Senior Vice President,
General Counsel and
Business Development
Shannon C. Dean
Senior Vice President,
Customer Service and Chief
Sustainability Officer
Kris A. Hamner
Vice President, Chief
Human Resources Officer
Sophie M. James
Vice President, Water Quality
and Environmental Affairs
Kenneth G. Jenkins
Vice President, Water
Resources Planning and
Sustainability
Martin A. Kropelnicki
Chairman, President, and
Chief Executive Officer
Michael B. Luu
Senior Vice President,
Corporate Services and
Chief Risk Officer
James P. Lynch
Senior Vice President,
Chief Financial Officer
and Treasurer
Michael S. Mares
Senior Vice President,
Operations
Corporate
officers
50 CALIFORNIA WATER SERVICE GROUP
Greg A. Milleman
Vice President, Rates
and Regulatory Affairs
Michelle R. Mortensen
Vice President, Corporate
Secretary and Chief of Staff
Daryl L. Osby
Vice President, Emergency
Preparedness, Safety, and
Security
Elissa Y. Ouyang
Vice President, Facilities,
Fleet, and Procurement
Shilen M. Patel
Chief Business Development
Officer and Vice President Texas
Water Service (TWSC, Inc.)
Todd K. Peters
Chief Engineering Officer
Thomas A. Scanlon
Corporate Controller and
Principal Accounting Officer
Justin B. Skarb
Vice President, Government
and Community Affairs
Corporate
information
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, stockbrokers, savings and
loan associations, and credit unions with membership in approved sig
nature 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 2025 on Form 10-K
A copy of the Company’s annual report for 2025 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.
Annual Meeting
The Annual Meeting of
Stockholders will be held online
on Wednesday, May 20, 2026,
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 8, 2026.
Computershare
Investor Services
462 South 4th Street, Suite 1600
Louisville, Kentucky 40202
Bond Registrar
U.S. Bank Trust, N.A.
One California Street
San Francisco, CA 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
Anticipated Dividend Dates for 2026
QUARTER
DECLARATION
RECORD DATE
PAYMENT DATE
First
January 28
February 9
February 20
Second
April 29
May 11
May 22
Third
July 29
August 10
August 21
Fourth
October 28
November 9
November 20
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 2025 Annual Report on Form 10-K for more information.
52 CALIFORNIA WATER SERVICE GROUP
1720 North First Street, San Jose, California 95112-4508
408.367.8200 | www.calwatergroup.com | NYSE: CWT