California Public Utilities Commission Grants California Water Service's Request to Postpone Cost of Capital Application to May 1, 2027

Core Points - The California Public Utilities Commission (CPUC) has approved California Water Service (Cal Water) and three other utilities to delay their Cost of Capital applications from May 1, 2026, to May 1, 2027, maintaining a 10.27% return on equity (ROE) and 4.23% cost of debt for Cal Water [1] - Cal Water's capital structure consists of 53.40% common equity and 46.60% long-term debt, with an authorized rate of return set at 7.46% [1] - The CPUC has reauthorized the Water Cost of Capital Mechanism (WCCM), which adjusts the rate of return based on fluctuations in the Moody's Utilities Bond Index, with the next measurement date on September 30, 2026 [2] - Any changes to the ROE from the WCCM will take effect on January 1, 2027, if necessary [2] - The extension of the Cost of Capital proceeding is expected to alleviate workload for the CPUC, which is currently managing six water utility General Rate Cases and three ongoing rulemaking proceedings related to water [3] - This extension is also anticipated to reduce the frequency of rate changes for customers [3] - California Water Service Group operates several regulated utilities across multiple states, providing water and wastewater services to over 2.1 million people [3]