Grupo de Servicios de Agua de California (CWT): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

California Water Service Group (CWT) se destaca como un jugador fundamental en la infraestructura del agua, transformando cómo las comunidades acceden y administran su recurso más crítico. Al combinar estratégicamente la tecnología innovadora, la infraestructura robusta y los enfoques centrados en el cliente, CWT ha desarrollado un modelo comercial integral que garantiza servicios de agua confiables en diversos segmentos de clientes. Su enfoque único no solo aborda las necesidades inmediatas de suministro de agua, sino que también es pionera en las prácticas sostenibles de gestión del agua que las posicionan como un proveedor de servicios públicos con visión de futuro en un paisaje ambiental cada vez más complejo.

California Water Service Group (CWT) - Modelo de negocios: asociaciones clave

Municipios y agencias gubernamentales locales

California Water Service Group mantiene asociaciones con 29 municipios en California, atendiendo a aproximadamente 1,9 millones de personas. A partir de 2023, la compañía tiene acuerdos de servicio de agua activos en las siguientes regiones clave:

Región	Número de municipios	Cobertura de servicio
Área de la Bahía	12	632,000 clientes
California central	7	426,000 clientes
Sur de California	10	842,000 clientes

Empresas de ingeniería y construcción

CWT colabora con múltiples empresas de ingeniería para el desarrollo de infraestructura:

• Negro & Timón
• Aecom
• Jacobs Engineering Group
• Smith CDM

La inversión en infraestructura para 2024 se proyecta en $ 185.7 millones para mejoras y mantenimiento del sistema de agua.

Cuerpos reguladores

Las asociaciones regulatorias primarias incluyen:

Agencia reguladora	Supervisión principal	Costo de cumplimiento anual
Comisión de servicios públicos de California	Configuración de tarifas y estándares de servicio	$ 4.2 millones
Junta estatal de control de recursos hídricos	Monitoreo de la calidad del agua	$ 3.8 millones

Proveedores de tecnología

Asociaciones de tecnología clave para sistemas de gestión del agua:

• Sensus (tecnologías de medición)
• IBM (análisis de datos)
• Itron (infraestructura de agua inteligente)

Inversión tecnológica para 2024: $ 22.3 millones

Organizaciones de conservación ambiental

Asociaciones colaborativas con grupos ambientalistas:

• La conservación de la naturaleza
• Fundación de Investigación del Agua
• Acción del agua de California colaborativa

Inversión anual de conservación ambiental: $ 5.6 millones

California Water Service Group (CWT) - Modelo de negocio: actividades clave

Tratamiento de agua y purificación

California Water Service Group opera 44 instalaciones de tratamiento de agua en California, atendiendo a aproximadamente 2 millones de clientes. Volumen anual de tratamiento de agua: 256 millones de galones por día.

Ubicación del centro de tratamiento	Capacidad diaria (millones de galones)	Tasa de cumplimiento de la calidad del agua
San José	65.4	99.8%
Los Ángeles	48.7	99.6%
Sacramento	37.2	99.7%

Distribución de agua y mantenimiento de infraestructura

Red total de distribución de agua: 4.900 millas de tubería. Gasto anual de mantenimiento de la infraestructura: $ 78.3 millones.

• Tasa de reemplazo de la tubería: 0.5% anual
• Edad de tubería promedio: 65 años
• Racetas principales de agua anuales: 217

Servicio al cliente y gestión de facturación

Centros de servicio al cliente: 12 ubicaciones. Interacciones anuales del cliente: 1.2 millones.

Canal de servicio	Interacciones anuales	Tiempo de respuesta promedio
Soporte telefónico	620,000	3.2 minutos
Portal en línea	380,000	Instante
Centros sin cita previa	200,000	12 minutos

Cumplimiento regulatorio e informes

Presupuesto de cumplimiento: $ 22.5 millones anuales. Frecuencia de informes regulatorios: mensualmente a las agencias estatales y federales.

• Tasa de cumplimiento de la EPA: 100%
• Informulario de la Junta de Agua del Estado: 99.9%
• Evaluaciones anuales de impacto ambiental: 4

Inversión y expansión de infraestructura

Gasto de capital anual: $ 185.6 millones. Áreas de enfoque de expansión de infraestructura: actualizaciones del tratamiento de agua, modernización de tuberías.

Categoría de inversión	Asignación de presupuesto 2024	Mejora esperada
Actualizaciones de la planta de tratamiento	$ 72.3 millones	Aumento de la eficiencia del 15%
Reemplazo de la tubería	$ 58.9 millones	Reducir la pérdida de agua en un 3%
Integración tecnológica	$ 54.4 millones	Capacidades de monitoreo mejoradas

California Water Service Group (CWT) - Modelo de negocio: recursos clave

Instalaciones de tratamiento de agua e infraestructura

California Water Service Group opera 43 plantas de tratamiento de agua en múltiples estados. Infraestructura total de tratamiento de agua valorada en $ 1.38 mil millones a partir de 2023. La cobertura de servicio incluye 482,000 conexiones en California, Washington, Nuevo México y Hawai.

Categoría de infraestructura	Cantidad	Valor estimado
Plantas de tratamiento de agua	43	$ 1.38 mil millones
Red de agua	4,800 millas	$ 620 millones
Depósitos de almacenamiento	89	$ 210 millones

Tecnología avanzada de gestión del agua

La inversión en infraestructura tecnológica totalizó $ 87.4 millones en 2023. Los activos tecnológicos incluyen:

• Infraestructura de medición avanzada (AMI)
• Sistemas de monitoreo de calidad del agua en tiempo real
• Tecnologías de detección de fugas
• Mapeo del Sistema de Información Geográfica (SIG)

Fuerza laboral hábil

Fuerza laboral total: 1.093 empleados a diciembre de 2023. Desglose de categorías profesionales:

Categoría profesional	Número de empleados
Ingenieros	214
Técnico	341
Personal administrativo	538

Redes de derechos y distribución de agua

Cartera de derechos de agua: Tiene derechos de agua en 4 estados, que cubre aproximadamente 168,000 acres-pie de asignación anual de agua. La red de distribución abarca 4,800 millas de tuberías de agua.

Capital financiero

Recursos financieros a partir del cuarto trimestre 2023:

• Activos totales: $ 2.1 mil millones
• Efectivo y equivalentes de efectivo: $ 87.6 millones
• Gastos de capital anuales: $ 245.3 millones
• Deuda a largo plazo: $ 1.2 mil millones

California Water Service Group (CWT) - Modelo de negocio: propuestas de valor

Suministro de agua potable confiable y seguro

California Water Service Group atiende a 1,9 millones de personas en 510 comunidades en California. La compañía opera 41 plantas de tratamiento de agua y mantiene 4,900 millas de tuberías de agua.

Vía de Servício	Población atendida	Instalaciones de tratamiento de agua	Red de distribución de agua
California	1.9 millones	41 plantas	4,900 millas

Calidad y servicio consistente del agua

CWT realiza más de 130,000 pruebas de calidad del agua anualmente, asegurando el 99.9% de cumplimiento de los estándares estatales y federales de agua potable.

• Pruebas de calidad del agua por año: 130,000
• Tasa de cumplimiento: 99.9%
• Las normas regulatorias cumplen: estatal y federal

Prácticas sostenibles de gestión del agua

En 2022, CWT invirtió $ 228.3 millones en mejoras de infraestructura y tecnologías de conservación del agua.

Inversión en infraestructura	Inversión en conservación del agua	Iniciativas de sostenibilidad
$ 228.3 millones	$ 45.6 millones	10 proyectos de conservación importantes

Tarifas de servicios públicos asequibles para clientes residenciales

Las tasas promedio de agua residencial en las áreas de servicio CWT oscilan entre $ 45 y $ 65 por mes, que es un 12% más baja que el promedio del estado de California.

• Ley de agua residencial mensual promedio: $ 45- $ 65
• Tasa comparativa: 12% por debajo del promedio del estado

Administración ambiental y esfuerzos de conservación

CWT redujo el consumo de agua en un 15% a través de programas de conservación en 2022, ahorrando aproximadamente 8.2 mil millones de galones de agua.

Agua guardada	Reducción de la conservación	Participación del consumidor
8.2 mil millones de galones	15% de reducción	Más de 50,000 clientes comprometidos

California Water Service Group (CWT) - Modelo de negocio: relaciones con los clientes

Canales directos de atención al cliente

California Water Service Group mantiene los canales de atención al cliente con las siguientes métricas:

Canal de soporte	Volumen de contacto (anual)	Tiempo de respuesta promedio
Soporte telefónico	387,642 llamadas	12 minutos
Soporte por correo electrónico	129,548 correos electrónicos	24 horas
Centros sin cita previa	42,316 interacciones con los clientes	15 minutos

Plataformas de gestión de cuentas en línea

Estadísticas de participación de la plataforma digital:

• Registros de cuenta en línea: 276,845 clientes
• Descargas de aplicaciones móviles: 184,329
• Tasa de pago de la factura digital: 68.3%

Programas de participación y educación comunitaria

Tipo de programa	Participantes anuales	Costo del programa
Talleres de conservación de agua	12,547 participantes	$387,600
Programas de educación escolar	8,942 estudiantes	$214,500

Facturación transparente y comunicación de servicio

Métricas de comunicación de facturación:

• Destacaciones promedio de facturación mensual: 1,092,847
• Tasa de transparencia de facturación en línea: 92.4%
• Tiempo de resolución de disputas de facturación: 3.7 días

Servicios de reparación de emergencia receptivos

Categoría de servicio	Tiempo de respuesta promedio	Llamadas de servicio anuales
Ruptaciones principales de agua	2.1 horas	1.247 incidentes
Reparaciones de fugas de emergencia	1.6 horas	3.698 incidentes

California Water Service Group (CWT) - Modelo de negocios: canales

Centros de llamadas de servicio al cliente

California Water Service Group opera múltiples centros de llamadas de servicio al cliente con 247 representantes de servicios dedicados. En 2023, estos centros de llamadas manejaron 1,284,576 interacciones de los clientes, con un tiempo de espera promedio de 3.2 minutos.

Métricas del centro de llamadas	2023 datos
Interacciones totales del cliente	1,284,576
Tiempo de espera promedio	3.2 minutos
Número de representantes de servicio	247

Portal web en línea

El portal web de la compañía admite 98.3% de transacciones de servicio al cliente digitalmente. En 2023, el portal registró 876,432 usuarios mensuales únicos con una tasa de satisfacción del usuario del 92.7%.

• Usuarios únicos mensuales: 876,432
• Tasa de satisfacción del usuario: 92.7%
• Soporte de transacciones digitales: 98.3%

Aplicación móvil

La aplicación móvil de CWT se descargó 342,156 veces en 2023, con 214,879 usuarios mensuales activos. La aplicación admite el pago de facturas, el seguimiento de uso y los envíos de solicitudes de servicio.

Métricas de aplicaciones móviles	2023 datos
Descargas totales	342,156
Usuarios activos mensuales	214,879

Facturación física y ubicaciones de pago

California Water Service Group mantiene 37 centros de servicio al cliente físico en sus territorios de servicio. Estas ubicaciones procesaron $ 124.6 millones en pagos del cliente durante 2023.

Eventos de divulgación de la comunidad local

En 2023, CWT realizó 276 eventos de divulgación comunitaria, llegando a aproximadamente 92,543 clientes directamente. Estos eventos se centraron en la conservación del agua, las actualizaciones de infraestructura y la educación del cliente.

Métricas de divulgación comunitaria	2023 datos
Total de eventos	276
Los clientes llegaron	92,543

California Water Service Group (CWT) - Modelo de negocios: segmentos de clientes

Consumidores de agua residencial

California Water Service Group atiende a aproximadamente 1.9 millones de personas en California, con 475,000 conexiones de servicio.

Detalles de segmento	Métrica
Conexiones residenciales totales	370,000
Ley de agua residencial mensual promedio	$68.42
Cobertura del área de servicio	24 comunidades de California

Clientes comerciales e industriales

CWT ofrece servicios de agua a diversos clientes comerciales e industriales.

• Conexiones comerciales totales: 45,000
• Ley de agua comercial mensual promedio: $ 412.50
• Uso de agua industrial: 15% de la distribución total del agua

Clientes municipales y gubernamentales

Tipo de cliente	Número de conexiones
Agencias municipales	37
Instalaciones gubernamentales	62
Consumo total de agua municipal	8.2 millones de galones por día

Usuarios de agua agrícola

CWT apoya la distribución limitada del agua agrícola.

• Conexiones agrícolas: 1.200
• Uso del agua agrícola: 3% de la distribución total del agua
• Ley de agua agrícola mensual promedio: $ 1,245.00

Comunidades suburbanas y urbanas

Tipo comunitario	Cobertura de servicio
Áreas suburbanas	16 comunidades
Áreas urbanas	8 comunidades
Población total del área de servicio	1.9 millones

California Water Service Group (CWT) - Modelo de negocio: Estructura de costos

Mantenimiento y reparación de la infraestructura

En 2022, California Water Service Group gastó $ 215.3 millones en mantenimiento y reparación de infraestructura. La compañía opera aproximadamente 6,000 millas de platos principales de agua en sus territorios de servicio.

Categoría de costos	Gasto anual
Reparaciones principales de agua	$ 87.6 millones
Reemplazo de la tubería	$ 63.4 millones
Mantenimiento de la instalación	$ 64.3 millones

Gastos de tratamiento de agua y purificación

Los costos de tratamiento de agua para CWT totalizaron $ 92.7 millones en 2022, con asignaciones específicas de la siguiente manera:

• Tratamiento químico: $ 37.2 millones
• Pruebas de calidad del agua: $ 18.5 millones
• Mantenimiento del equipo de purificación: $ 36.9 millones

Salarios y beneficios de los empleados

Los gastos totales de personal para California Water Service Group en 2022 fueron de $ 206.4 millones.

Tipo de gasto	Cantidad
Salarios base	$ 156.3 millones
Seguro médico	$ 28.6 millones
Beneficios de jubilación	$ 21.5 millones

Costos de cumplimiento regulatorio

Los gastos de cumplimiento para CWT alcanzaron los $ 45.6 millones en 2022, que cubren varios requisitos reglamentarios.

• Cumplimiento ambiental: $ 22.3 millones
• Regulaciones de seguridad: $ 14.2 millones
• Informes y documentación: $ 9.1 millones

Actualizaciones de tecnología y sistema

La inversión tecnológica para California Water Service Group totalizó $ 67.5 millones en 2022.

Categoría de tecnología	Inversión
Infraestructura digital	$ 29.6 millones
Tecnología de medición inteligente	$ 21.3 millones
Sistemas de ciberseguridad	$ 16.6 millones

California Water Service Group (CWT) - Modelo de negocios: flujos de ingresos

Tarifas de servicio de agua residencial

California Water Service Group generó $ 673.7 millones en ingresos totales de servicios de agua para el año 2022, con clientes residenciales que representan aproximadamente el 74% de los ingresos totales.

Segmento de clientes	Ingresos anuales	Porcentaje de ingresos totales
Servicio de agua residencial	$ 498.54 millones	74%

Cargos de servicio de agua comercial

Los cargos de servicio comercial de agua representaron aproximadamente el 22% de los ingresos totales del servicio de agua en 2022, ascendiendo a $ 148.21 millones.

Categorías comerciales de clientes	Ingresos anuales
Usuarios comerciales/industriales	$ 89.93 millones
Clientes institucionales	$ 58.28 millones

Tarifas de conexión de infraestructura

En 2022, CWT recaudó $ 21.4 millones de las tarifas de conexión de infraestructura en sus territorios de servicio.

• Nuevas tarifas de conexión residencial: $ 15.6 millones
• Tasas de conexión comercial: $ 5.8 millones

Aranceles de uso de agua

Las tarifas de uso de agua escalonadas de CWT generaron ingresos adicionales de $ 37.5 millones en 2022.

Nivel de arancel	Ingresos generados
Nivel 1 (uso básico)	$ 22.1 millones
Nivel 2 (uso más alto)	$ 15.4 millones

Contratos de infraestructura gubernamental

Los contratos de infraestructura gubernamental contribuyeron con $ 28.6 millones a los ingresos totales de CWT en 2022.

• Proyectos de infraestructura municipal: $ 18.3 millones
• Contratos estatales de infraestructura de agua: $ 10.3 millones

California Water Service Group (CWT) - Canvas Business Model: Value Propositions

You're looking at the core promises California Water Service Group (CWT) makes to its customers and investors as of late 2025. These aren't just mission statements; they are backed by capital plans and regulatory agreements.

Safe, reliable, and high-quality drinking water service

California Water Service Group (CWT) delivers service to over 2.1 million people across California, Hawaii, New Mexico, Washington, and Texas. The company affirms its focus on delivering safe, affordable, reliable water service to its customers.

• S&P Global credit rating of A+/ Stable affirmed for the California Water Service Company (Cal Water) subsidiary.
• The 2024 Sustainability Report was published, highlighting progress on sustainability targets.

Long-term infrastructure investment for system sustainability

The commitment here is concrete capital deployment to keep the system modern and resilient. California Water Service Group (CWT) proposes to invest more than $1.6 billion across its districts for the period spanning 2025-2027. This investment supports system sustainability and reliable supply.

Here's a look at the capital deployment numbers we see through the third quarter of 2025:

Metric	Amount/Period	Reference Point
Proposed Total Investment (2025-2027)	More than $1.6 billion	2024 CA GRC Infrastructure Improvement Plans
Newly Proposed Capital Investments (2025-2027)	Approximately $1.3 billion	2024 CA GRC Filing
Pipeline Replacement Percentage of New Improvements	About 46%	Designed to enhance water supply reliability
YTD Capital Investment (as of Q3 2025)	$364.7 million	Up 9.8% compared to the same period in 2024
Q3 2025 Infrastructure Investment	$135.2 million	A 14.8% increase over Q3 2024

The company is definitely putting money to work; for instance, YTD capital investments through the first six months of 2025 were $229.5 million.

Regulatory stability with cost of capital extended through 2027

The California Public Utilities Commission (CPUC) granted an extension, which means the current regulatory framework for returns stays put for a bit longer. This reduces near-term regulatory uncertainty, which is always good for planning long-term capital projects.

The extension pushes the next Cost of Capital filing deadline to May 1, 2027. This keeps the existing Water Cost of Capital Mechanisms (WCCM) in effect.

Here are the key authorized financial parameters maintained by this extension:

Financial Parameter	Authorized Rate/Value
Return on Equity (ROE)	10.27%
Cost of Debt	4.23%
Authorized Rate of Return	7.46%
Capital Structure: Common Equity	53.40%
Capital Structure: Long-Term Debt	46.60%

The WCCM will next measure the Moody's Utilities Bond Index on September 30, 2026, with any resulting ROE change taking effect on January 1, 2027.

Commitment to corporate social responsibility and sustainability

California Water Service Group (CWT) maintains a long history of shareholder returns, which speaks to operational consistency. The company declared its 323rd consecutive quarterly dividend of $0.30 per share. That's a streak of 58 consecutive years of dividend increases.

Affordable service via proposed Low-Use Water Equity Program

As part of the 2024 California General Rate Case (GRC) application, California Water Service Group (CWT) proposed a Low-Use Water Equity Program. This program is designed to decouple revenue from water sales to help lower-income, low-water-using customers.

The proposed revenue adjustments tied to the GRC application that the program is part of look like this:

Year	Proposed Revenue Increase	Percentage Increase
2026	$140.6 million	17.1%
2027	$74.2 million	7.7%
2028	$83.6 million	8.1%

Also, in Hawaii, the Hawaii Public Utilities Commission approved a rate increase for Waikoloa systems expected to add $4.7 million in annual revenues.

California Water Service Group (CWT) - Canvas Business Model: Customer Relationships

California Water Service Group (CWT) maintains customer relationships built on the foundation of essential utility service, characterized by a highly regulated environment and minimal direct competition across its operating territories.

Regulated, long-term relationships with minimal competition

The relationship is inherently long-term, as customers rely on California Water Service Group for a life-sustaining resource. The company serves over 2.1 million people across California, Hawaii, New Mexico, Washington, and Texas. This regulated structure means customer interactions are heavily influenced by state and local utility commissions. For instance, the S&P Global credit rating of A+/ Stable affirmed for California Water Service Company (Cal Water) reflects regulatory stability and operational performance that underpins customer trust. The commitment to shareholders is also reflected in the dividend history, with the 323rd consecutive quarterly dividend declared in the amount of $0.30 per share for Q3 2025, continuing a 58-year streak of increases.

Customer service centers and digital self-service portals

Customer interaction is managed through traditional service centers and expanding digital channels. On December 1, 2025, some offices were experiencing high call volume across All districts, prompting the company to direct non-emergency issues to the Contact Us form. For payments, customers have the option of calling the pay-by-phone number at (866) 734-0743, or using the website. The digital self-service portal allows customers to manage their account, make payments, and initiate start/stop service requests online.

The nature of customer interaction channels can be summarized as follows:

Channel Type	Contact Method/Metric	Data Point (Late 2025)
In-Person/Phone Support	Reported High Call Volume	Affecting All districts as of December 1, 2025
Digital Self-Service	Online Account Management	Available for payment, contact updates, and service start/stop
Automated Phone Payment	Pay-by-Phone Number	(866) 734-0743
Conservation Hotline	Dedicated Phone Line	(844) 207-1313

Public outreach for conservation and water-use efficiency

California Water Service Group actively engages customers on conservation, linking these efforts to long-term cost management. Customers participating in rebates and programs in 2025 are projected to help California save more than 442 million gallons over their lifetime. This focus on efficiency has a measurable financial impact; a study showed conservation efforts reduced customer bills by up to 20.5% over 15 years. By October 2025, Cal Water's overall water-use reduction was 14.7% compared with October 2020. The company has a filed a $1.6 billion investment proposal for California from 2025-2027 within its 2024 General Rate Case, which includes infrastructure supporting reliability and sustainability.

Key conservation metrics and program impacts include:

• Overall water-use reduction in October 2025: 14.7%
• Projected lifetime water savings from 2025 participants: Over 442 million gallons
• Maximum bill reduction from 15 years of conservation: Up to 20.5%
• Example District Reduction (Livermore, October 2025): 30.1%

Proactive communication during service disruptions or water quality issues

Proactive communication centers on service alerts and mandated water quality reporting. For water quality, Cal Water published its 2024 Consumer Confidence Reports (CCRs) online in June 2025, confirming that the water met all primary and secondary federal and state standards for 2024. The company conducts more than 600,000 water quality tests per year for over 300 contaminants. During service issues, customers are directed to check the Alert Center or call district-specific phone numbers for urgent matters, while non-emergency issues can use the online form.

Managing rate case proceedings for fair and affordable rates

Managing regulatory proceedings is central to maintaining the relationship, balancing investment needs with customer affordability. Cal Water is in the third year of a three-year rate case cycle, which is typically the most financially challenging period while awaiting regulatory relief. The company is actively managing several proceedings:

• 2024 California General Rate Case (GRC): The proceeding is proceeding on schedule, with authorization for inflation-based interim rate increases effective January 1, 2026.
• Hawaii Water Service: The Hawaii Public Utilities Commission approved a rate increase for Waikoloa systems expected to increase annual revenues by $4.7 million.
• Washington State: A GRC was filed seeking to increase annual revenues by $4.9 million, with potential new rates by December 15, 2025.
• Drought Cost Recovery: In Q1 2025, approval was received to recover $1.4 million in drought-related costs, with surcharges implemented on April 1, 2025.

The company's YTD 2025 capital investments reached $364.7 million, up 9.8% compared to the same period in 2024, demonstrating investment activity while rates are pending. Finance: draft 13-week cash view by Friday.

California Water Service Group (CWT) - Canvas Business Model: Channels

You're looking at how California Water Service Group gets its water and its service information to the people who pay for it. It's a utility, so the channels are heavily weighted toward physical infrastructure and regulated interaction.

Physical water distribution network (pipes and mains)

This is the core channel. California Water Service Group, the largest regulated water utility operating exclusively in the western United States, relies on this massive physical asset base to deliver water and/or wastewater services. The commitment to maintaining and expanding this network is clear in their spending.

For the nine months ending September 30, 2025, Group capital investments totaled $364.7 million, which was up 9.8% compared to the same period in 2024. Specifically in the third quarter of 2025, the company invested $135.2 million in water system infrastructure, a 14.8% increase over Q3 2024. The capital expenditure forecast shows investments at approximately four times the depreciation rate, showing a strong focus on renewal and expansion. Furthermore, Cal Water has proposed to invest more than $1.6 billion in its districts from 2025-2027 as part of its 2024 California General Rate Case (GRC).

The service delivery channels span multiple states through regulated subsidiaries:

• California Water Service (Cal Water)
• Hawaii Water Service
• New Mexico Water Service
• Washington Water Service
• Texas Water Service (utility holding company)

Collectively, these channels serve over 2.1 million people across the western U.S. as of late 2025.

Direct billing and customer communication via mail and email

The traditional channels for financial interaction remain in place, though digital adoption is certainly growing. You see evidence of this communication through regular financial actions, like the declaration of the 323rd consecutive quarterly dividend of $0.30 per share in Q3 2025. The anticipated total 2025 dividend is $1.24 per share, reflecting a 10.71% increase from the prior year.

Online portals for bill payment and service requests

While specific portal usage statistics aren't in the latest reports, the company's focus on operational efficiency suggests these digital channels are key for managing the customer base. The utility is actively pursuing rate changes that impact customer bills, which necessitates clear communication, often routed through these digital platforms for efficiency.

Local field service teams for maintenance and repairs

These teams are the physical manifestation of the service channel on the ground. Their work is directly funded by the infrastructure investments mentioned earlier. For example, in Washington, the company has filed a General Rate Case seeking to increase annual revenues by $4.9 million to recover higher operating and maintenance expenses and costs associated with water system improvements made over the past two years, with new rates potentially taking effect as early as December 15, 2025.

State regulatory filings (e.g., CPUC) for rate changes

Regulatory approval is a critical, non-negotiable channel for revenue realization. Cal Water submitted its 2024 GRC application to the CPUC on July 8, 2024, seeking to raise customer rates by more than 30% over the three-year period starting in 2026. The CPUC has authorized inflation-based interim rate increases effective January 1, 2026, until a final decision is issued. This regulatory process is complex, as shown by the difference between the company's request and the Public Advocates Office's recommendation for the 2026 revenue requirement.

Here's a quick look at the rate change proposals for California:

Metric	California Water Service Request	Public Advocates Office Recommendation
2026 Increased Revenue	$140.6 M	Revenue Change of -$17.7 M
2026 Percentage Increase	17.1%	Percentage Change of -2.1%
2026 Total Revenue Requirement	$964 million	$816 million

Also, in Hawaii, the Public Utilities Commission approved a rate increase for the Waikoloa systems expected to increase annual revenues by $4.7 million.

Finance: draft 13-week cash view by Friday.

California Water Service Group (CWT) - Canvas Business Model: Customer Segments

California Water Service Group serves a broad base of customers across multiple western states, providing essential water and, in select areas, wastewater services. The total population relying on the regulated utilities of California Water Service Group, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, along with the utility holding company Texas Water Service, is more than 2.1 million people as of late 2025.

The customer base is geographically diverse, spanning California, Hawaii, New Mexico, Washington, and Texas. The largest subsidiary, California Water Service (Cal Water), serves about 2 million people across over 100 communities within California alone. In 2024, the combined operations across California, Hawaii, New Mexico, and Washington served over 560,000 customer connections.

You can see a breakdown of the service footprint and service types below. This structure shows the utility's reliance on regulated water delivery across a wide geography, supplemented by wastewater services in specific locations.

Service Area/Entity	Primary Service Type	Customer/Population Metric	Reference Data Year
Total Group Service Area	Water and/or Wastewater	More than 2.1 million people served	Late 2025
California Water Service (Cal Water)	Water	About 2 million people served	Late 2025
Cal Water Districts	Water	Over 100 Communities served	Late 2025
Cal Water Connections (CA, HI, NM, WA)	Water	Over 560,000 customer connections	2024
Hawaii Water Service	Water and/or Wastewater	Part of total population served	Late 2025
Waikoloa Systems (Hawaii)	Water and Wastewater	Rate increase expected to add $4.7 million in annual revenues	Q3 2025
Silverwood Systems	Wastewater and Recycled Water	Agreement executed to own and operate	Q2 2025

The customer segments are not limited to standard residential and business accounts; they also include specific governmental contracts and a focus on securing public funding for infrastructure improvements. For instance, the company has a direct relationship with the federal government for utility services.

• Residential customers (implied by the large population served across utility districts).
• Commercial and industrial businesses (implied by general utility service and wastewater operations).
• Government and public sector entities, including operating the Travis Air Force Base water system under a federal contract.
• Customers in California, where Cal Water has 497,600 Customers.
• Communities receiving support via grant applications, with $10.7 million in government grant funding applications submitted in 2024.

California Water Service Group (CWT) - Canvas Business Model: Cost Structure

You're looking at the expenses that keep the water flowing for California Water Service Group, and honestly, it's a business built on big, long-term spending. The cost structure is heavily weighted toward things you can't easily cut, which is typical for a regulated utility.

High fixed costs from regulated infrastructure and assets are the bedrock here. This is the cost of owning and maintaining the pipes, treatment plants, and reservoirs that serve over 2.1 million people across five states. This fixed nature means costs don't drop much even if usage dips, which you saw when declining customer water usage reduced Q3 2025 revenue by $8.1 million.

The sheer scale of investment shows where the money goes:

• Capital Expenditures (CapEx): The commitment to infrastructure renewal is clear. California Water Service Group invested $135.2 million in water system infrastructure during Q3 2025.
• Year-to-date (YTD) capital investments through September 30, 2025, reached $364.7 million, which was up 9.8% compared to the same period in 2024.
• Management has signaled this spending is significant, with the capital expenditure forecast showing investments at approximately four times the depreciation rate.

When you look at the operating expenses for the third quarter of 2025, they totaled $240.6 million, an increase of $7.8 million or 3.4% compared to Q3 2024's $232.8 million.

The variable and semi-variable costs driving that operating expense increase include:

• Water production costs increased by $7.6 million year-over-year in Q3 2025, driven primarily by increases in wholesale water rates.
• Labor and employee benefit expenses contributed to an increase in Other operations expenses, which rose by $7.8 million overall, alongside bad debt expenses.
• Interest expense also rose to $18.1 million in Q3 2025, up from $14.4 million in Q3 2024, given the rate environment.

The non-cash costs associated with these assets are also a major line item. Depreciation and amortization increased by $3.1 million in Q3 2025 due to new capital assets being placed in service. This increase in depreciation expense was noted as a negative factor on EPS, reducing it by $0.04 per share for the quarter.

Here's a quick look at some of the key financial figures influencing the cost side of the equation for Q3 2025:

Cost/Expense Metric	Q3 2025 Amount	Comparison/Driver
Total Operating Expenses	$240.6 million	Up 3.4% YoY
Water Production Cost Increase	$7.6 million	Primarily due to wholesale water rate increases
Depreciation & Amortization Change	+$3.1 million	Due to new capital assets placed in service
Capital Investment (Capex)	$135.2 million	Up 14.8% YoY
YTD Capital Investment	$364.7 million	Up 9.8% YoY

The utility is actively managing these costs, partly through regulatory mechanisms. For instance, they received $24.2 million net in PFAS settlement proceeds in Q3 2025, which management plans to use to directly offset PFAS-related capital expenditures.

California Water Service Group (CWT) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for California Water Service Group as of late 2025. The revenue streams are heavily anchored in its regulated utility status, which provides a predictable, albeit rate-dependent, cash flow.

The primary source is regulated utility revenue from water and wastewater sales across the states it serves, including California, Hawaii, New Mexico, Washington, and Texas, providing service to over 2.1 million people. This regulated structure means revenue growth is largely tied to infrastructure investment and regulatory approvals.

A key component supporting this is the process for rate increases authorized by state commissions. For the Year-to-Date (YTD) 2025 period, these authorized rate changes have added $57.5 million to revenue. This is a critical input, especially since the Chairman noted that Cal Water is in the third year of a three-year rate case cycle, which is typically the leanest financial year while awaiting regulatory relief.

The company uses revenue adjustment mechanisms (M-WRAM) to decouple sales from revenue, aiming to smooth out the impact of weather-driven usage fluctuations. For YTD 2025, there was a reported decrease in M-WRAM revenue of $13.4 million compared to the prior year. However, looking just at the third quarter (Q3) of 2025, the M-WRAM mechanism actually added $3.7 million in revenue for that period.

The total picture for the first three quarters of 2025 shows a GAAP Total YTD 2025 revenue of $780.2 million. This compares to a Q3 2025 operating revenue of $311.2 million, which was up 3.9% compared to Q3 2024.

Here's a quick look at the key revenue components and their recent impacts:

• Regulated water and wastewater sales form the base.
• Customer usage contributed an additional $2.0 million in revenue YTD 2025.
• Unbilled water sales added $3.2 million YTD 2025.
• New rate approvals in Hawaii are expected to add $4.7 million annually for the Waikoloa systems.
• The company also engages in non-regulated services revenue, though specific dollar amounts for this segment were not detailed in the YTD summary.

To map out the major drivers affecting the top line, consider this breakdown based on the YTD 2025 results compared to the prior year:

Revenue Component	YTD 2025 Impact (vs. YTD 2024)	Notes
Rate Changes (Authorized)	Added $57.5 million	Primary regulatory revenue driver
M-WRAM Adjustment	Decrease of $13.4 million	Decoupling mechanism impact
Customer Usage/Unbilled Sales	Added $5.2 million total	Usage of $2.0M, Unbilled of $3.2M
Total GAAP Revenue	$780.2 million	Year-to-date figure

The structure relies on successful regulatory engagement to realize the full value of its infrastructure investments. Finance: draft 13-week cash view by Friday.