H2O America Announces Deferral of San Jose Water Company’s Cost of Capital Filing to May 1, 2027

Core Viewpoint - H2O America, through its subsidiary San Jose Water Company, has received approval from the California Public Utilities Commission (CPUC) to defer its 2026 Cost of Capital filings to May 1, 2027, providing clarity and stability for customers through 2027 [1][3]. Summary by Sections Cost of Capital Filings - The Joint Parties, including San Jose Water Company, requested a one-year postponement of their Cost of Capital (COC) filings originally due on May 1, 2026, which has now been granted [2]. - The last COC decision was made on June 29, 2023, and the Joint Parties had previously received deferments for 2025 and 2026 [2]. Regulatory Approval and Mechanisms - The approval from CPUC allows the Water Cost of Capital Mechanism (WCCM) to remain in effect until January 1, 2028, which adjusts the Return on Equity (ROE) based on the Moody's Aa Utility Bond Index [3][7]. - San Jose Water's current ROE of 9.81% will remain unchanged through 2027 unless adjusted by the WCCM, reflecting a reduction from the CPUC-approved base ROE of 10.01% due to the Water Conservation Memorandum Account (WCMA) [4][7]. Company Overview - H2O America is a major investor-owned water utility in the U.S., serving over 1.6 million people and focusing on sustainable operations and community engagement [5].