Financial Data and Key Metrics Changes - In Q2 2025, revenue increased by $20.7 million or 8.5% to $265 million compared to $244.3 million in Q2 2024 [12] - Non-GAAP EPS rose by 15% year over year, reflecting strong performance despite the ongoing rate case [8][13] - Net income for Q2 2025 was $42.2 million or $0.71 per diluted share, compared to $40.6 million or $0.70 per diluted share in Q2 2024 [13] Business Line Data and Key Metrics Changes - Capital spending increased approximately 7% quarter over quarter, with capital investments for the quarter at $119.4 million and year-to-date at $229.5 million [16] - The primary drivers of year-to-date diluted EPS growth were tariff rate changes and increased customer usage, contributing $0.75 per diluted share [15] Market Data and Key Metrics Changes - The company continues to maintain a strong liquidity profile with $50.5 million in unrestricted cash and $240 million in available credit [18] - The Texas utility subsidiary is experiencing growth, with increasing customer connections and paid commitments reflecting sustained demand in the Austin-San Antonio region [31] Company Strategy and Development Direction - The company is focused on growth through acquisitions and capital investments, including a new wastewater treatment facility in California [29] - The ongoing California general rate case is a priority, with the company requesting $398 million over the years 2026-2028 for infrastructure improvements [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the timely completion of the rate case, indicating that the assigned commissioner prioritizes it [48][49] - The company remains committed to investing in water quality and infrastructure, particularly in response to PFAS regulations [25][26] Other Important Information - The company received an A+ stable credit rating from S&P Global, reflecting a strong balance sheet [19] - The board approved a quarterly dividend of $0.30 per share, representing a 10.71% increase earlier this year [20] Q&A Session Summary Question: Expectations for the GRC decision timeline - Management confirmed that they expect a decision by year-end and indicated that the assigned commissioner is prioritizing the case [46][48] Question: Impact of EPA's PFAS timeline on investments - Management stated that they will continue to move forward with planned investments despite the EPA's extended compliance deadlines [52][56] Question: Rate base outlook and capital expenditure shifts - Management clarified that shifts in capital expenditures were due to timing, with no significant changes to core CapEx investments [67][70] Question: Discussion on California's water decoupling bill - Management highlighted the importance of Senate Bill 473, which would require the CPUC to implement full decoupling for water utilities, and noted strong legislative support [75][78] Question: Coverage of PFAS costs through settlements - Management estimated that settlements could cover approximately $40 to $60 million of the anticipated $226 million in PFAS-related costs [91][92]

Financial Data and Key Metrics Changes - In Q2 2025, revenue increased by $20.7 million or 8.5% to $265 million compared to $244.3 million in Q2 2024 [11] - Net income for the quarter was $42.2 million or $0.71 per diluted share, compared to $40.6 million or $0.70 per diluted share in Q2 2024 [12] - Non-GAAP EPS increased by 15% year over year, reflecting strong performance despite regulatory challenges [8] Business Line Data and Key Metrics Changes - Capital spending was up approximately 7% quarter over quarter, with capital investments for the quarter totaling $119.4 million and year-to-date investments at $229.5 million [15] - The primary drivers of year-to-date diluted EPS growth were tariff rate changes and increased customer usage, contributing $0.75 per diluted share [14] Market Data and Key Metrics Changes - The company maintained a strong liquidity profile with $50.5 million in unrestricted cash and $240 million in available credit [16] - The Texas utility subsidiary is experiencing growth, with increasing customer connections and paid commitments reflecting sustained demand in the Austin-San Antonio region [31] Company Strategy and Development Direction - The company is focused on growth through acquisitions and capital investments, including a new wastewater treatment facility in California [29] - The company is actively pursuing a general rate case in California, requesting $398 million over the years 2026-2028 for infrastructure improvements [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the timely completion of the rate case, indicating it is a top priority for the assigned commissioner [48] - The company remains committed to investing in water quality and infrastructure, with a focus on PFAS compliance and treatment projects [25] Other Important Information - The company received an A+ stable credit rating from S&P Global, reflecting a strong balance sheet [17] - The board approved a quarterly dividend of $0.30 per share, representing a 10.71% increase earlier this year [19] Q&A Session Summary Question: Expectations for the GRC decision timeline - Management indicated that the rate case is on schedule, with the assigned commissioner prioritizing its completion [48][49] Question: Impact of EPA's PFAS timeline on investments - Management confirmed that they are proceeding with planned investments despite the EPA's extended compliance deadlines, emphasizing customer health and safety [55][56] Question: Clarification on capital expenditure shifts - Management explained that shifts in capital expenditures were due to timing adjustments, with no significant changes to core CapEx plans [62][66] Question: Status of water decoupling legislation in California - Management provided an update on Senate Bill 473, which aims to implement full decoupling for water utilities, noting strong legislative support [70][72] Question: Coverage of PFAS-related costs through settlements - Management estimated that settlements could cover approximately $40 to $60 million of the anticipated $226 million in PFAS-related costs [83][84]

Financial Performance - Operating revenues increased from $2.88 billion in 2013 to $3.01 billion in 2014[15] - Adjusted diluted earnings per share from continuing operations increased by 10%, from $2.21 in 2013 to $2.43 in 2014[40] - The company is reaffirming its 2015 EPS guidance of $2.55-$2.65[22] - The company's long-term EPS growth goal is 7-10% from 2015-2019, anchored from FY 2013[23, 24] - Adjusted Return on Equity increased from 832% to 886% from 2013 to 2014[51, 89] Investments and Acquisitions - The company invested $1 billion in infrastructure in 2014, $100 million over the original estimate[18] - The company closed acquisitions of 13 systems in 2014, adding 4,500 water & wastewater customers[18] - 11 announced pending acquisitions are expected to add 21,500 water & wastewater customers[18] Regulatory Updates - New Jersey Rate Case filing requests a $662 million increase, or 996%[29] - Indiana American rate case order effective January 29, 2015, includes $51 million revenues (26% increase) driven by over $220 million investment in assets[30] Operational Efficiency - The company is targeting an O&M Efficiency Ratio of 34% by 2020[32]

Core Viewpoint - California Water Service Group reported strong operational and financial performance for 2024, highlighting significant revenue growth and capital investments aimed at enhancing water supply sustainability [3][6]. Financial Results - Q4 2024 operating revenue reached $222.2 million, up from $214.5 million in Q4 2023, marking an increase of $7.7 million [7]. - Full year 2024 operating revenue was $1.037 billion, compared to $794.6 million in 2023, reflecting a $242.4 million increase [6][26]. - Diluted earnings per share for 2024 were $3.25, a significant rise from $0.91 in 2023 [6][26]. - Net income attributable to the Group for Q4 2024 was $19.7 million, down from $30.1 million in Q4 2023 [7]. - Full year net income attributable to the Group was $190.8 million, compared to $51.9 million in 2023 [6][26]. Capital Investment - The company achieved a record capital investment of $471.0 million in water system infrastructure for 2024, a 23% increase from the previous year [6][10]. - The California Public Utilities Commission (CPUC) authorized Cal Water to issue up to $1.3 billion in new debt and equity securities [9]. Regulatory Activity - The 2024 General Rate Case (GRC) was filed, proposing over $1.6 billion in investments from 2025-2027 to enhance water supply reliability and sustainability [11][13]. - Proposed rate adjustments include an increase of $140.6 million (17.1%) in 2026, $74.2 million (7.7%) in 2027, and $83.6 million (8.1%) in 2028 [11]. Emergency Response and Preparedness - The company maintained emergency response leadership throughout 2024, conducting training and drills to prepare for potential emergencies [17]. - Investments of nearly $55 million over the past five years have been made to mitigate wildfire risks through infrastructure upgrades and strategic management [19].