SJW Group Announces Deferral of San Jose Water Company's Cost of Capital Filing to May 1, 2026

Core Viewpoint - SJW Group's subsidiary, San Jose Water Company, along with three other California water utilities, has received approval from the California Public Utilities Commission to defer their 2025 Cost of Capital filings to May 1, 2026, which is aimed at reducing administrative costs for both the utilities and the CPUC [1][2]. Group 1: Cost of Capital Filings - The Joint Parties initially requested a one-year postponement of their Cost of Capital filings scheduled for May 1, 2025, which was previously granted by the CPUC [2]. - The last Cost of Capital decision was issued on June 29, 2023, and the Joint Parties are required to file these applications every three years [2]. - The new filing date of May 1, 2026, will be effective from January 1, 2027 [7]. Group 2: Water Cost of Capital Mechanism - The Water Cost of Capital Mechanism (WCCM) will remain in place until January 1, 2027, allowing the return on equity to adjust based on the Moody's Aa Utility Bond Index [3][7]. - The Water Conservation Memorandum Account (WCMA) is a temporary revenue protection mechanism due to a voluntary 15% water reduction request from San Jose Water's wholesaler [3]. Group 3: Company Overview - SJW Group is one of the largest investor-owned water and wastewater utilities in the U.S., serving nearly 1.6 million people [4]. - The company operates several water utilities across different states, including California, Connecticut, Maine, and Texas, focusing on environmental protection and customer service [4].