California Water Service(US:CWT)2026-02-26 22:39Employee and Management Information - As of December 31, 2025, the company had 1,336 employees, with 1,182 at Cal Water, 84 at Washington Water, 48 at Hawaii Water, and 22 at New Mexico Water [126]. - As of December 31, 2025, 696 employees were represented by the Utility Workers Union of America (UWUA) and 109 by the International Federation of Professional and Technical Engineers (IFPTE) [127]. - The company has an average management tenure exceeding 15 years, reflecting a strong focus on employee retention and development [125]. Risk and Resilience Assessments - The company completed workshops and recertified tier 1 and tier 2 Risk and Resilience Assessments (RRAs) and tier 1 Emergency Response Plans (ERPs) in 2025, with additional workshops planned for 2026 [106]. - The company is required to conduct additional risk and resilience assessments and develop emergency response plans for each water system under the 2018 America's Water Infrastructure Act [106]. Environmental and Regulatory Concerns - The company expects environmental regulation to increase, resulting in higher operating costs in the future, with no assurance that Commissions will approve rate increases to recover these costs [113]. - The company maintains a fleet of vehicles, including retrofitted heavy-duty diesel vehicles to meet California emission standards, which may increase operating costs if future legislation affects fleet operations [117]. Security Measures - The company has heightened security measures at its facilities in response to terrorism and other risks, complying with federal regulations concerning water facility security [105]. Financial and Market Risks - The company does not engage in hedge arrangements to mitigate market fluctuations on assets, liabilities, or contractual commitments, operating solely in the United States, thus avoiding foreign currency exchange rate risks [339]. - Interest rate risk exists, but is mitigated by operating in a regulated industry; customer rates may increase with interest rates, subject to Commission approval in future General Rate Case filings [340]. - The majority of the company's debt is long-term and fixed-rate, with $1,474.2 million of existing long-term debt instruments not expected to mature in the next 12 months [341]. - A hypothetical 10 percent increase in interest rates on existing borrowings would not materially affect the company's earnings [341]. Emergency Preparedness - The company leased additional emergency generators during 2025, 2024, and 2023 to respond to potential Public Safety Power Shutoffs (PSPSs) approved by the CPUC [104].