California Water Service Group Reports Second Quarter Results

Core Viewpoint - California Water Service Group reported strong financial results for Q2 2024, with significant increases in net income and operating revenue compared to the same period in 2023, driven by rate increases and the effects of the 2021 California General Rate Case decision [2][5][6]. Financial Performance - Diluted earnings per share reached $0.70 in Q2 2024, up from $0.17 in Q2 2023 [2][26]. - Net income attributable to the Group was $40.6 million in Q2 2024, compared to $9.6 million in Q2 2023 [5][26]. - Operating revenue for Q2 2024 was $244.3 million, an increase of $50.3 million from $194.0 million in Q2 2023 [5][25]. - Year-to-date net income for 2024 was $110.5 million, compared to a net loss of $12.7 million in the same period last year [6][26]. - Operating revenue for the first six months of 2024 was $515.0 million, up from $325.1 million in the same period in 2023 [6][25]. Capital Investment and Infrastructure - The Group invested $214.4 million in water system infrastructure in the first half of 2024, representing 56% of its estimated $385 million capital investment target for the year [2][9]. - California Water Service (Cal Water) plans to invest over $1.6 billion in its districts from 2025-2027 to ensure a reliable supply of high-quality water [10][11]. Rate Case and Regulatory Developments - The company filed the 2024 General Rate Case (GRC) and Infrastructure Improvement Plans for 2025-2027 with the California Public Utilities Commission (CPUC) [2][10]. - The proposed Low-Use Water Equity Program aims to decouple revenue from water sales to assist low-water-using, lower-income customers [10][12]. - Proposed rate increases include $140.6 million (17.1%) in 2026, $74.2 million (7.7%) in 2027, and $83.6 million (8.1%) in 2028 [13]. Emergency Response and ESG Initiatives - The company conducted emergency response exercises in Hawaii and activated emergency operations during the Butte County Thompson Fire, ensuring no assets were impacted [15]. - The 2023 ESG Report highlights the company's commitment to environmental, social, and governance (ESG) objectives, detailing progress and achievements in these areas [19][20].