Grupo SJW (SJW): Lienzo del Modelo de Negocios [Actualizado en Ene-2025]

En el panorama dinámico de la gestión de recursos hídricos, SJW Group surge como un jugador fundamental, transformando cómo las comunidades acceden y utilizan su recurso natural más crítico. Al crear meticulosamente un modelo comercial integral que equilibra la innovación tecnológica, la resiliencia de infraestructura y los servicios centrados en el cliente, SJW Group se ha posicionado como una empresa de servicios de agua a futuro. Su enfoque estratégico no solo garantiza el suministro de agua confiable, sino que también defiende las prácticas de gestión del agua sostenible que resuenan con las necesidades ambientales y de la comunidad modernas.

SJW Group (SJW) - Modelo de negocios: asociaciones clave

Compañías de infraestructura de servicios públicos de agua

SJW Group colabora con los siguientes socios clave de infraestructura de servicios de agua:

Pareja	Tipo de colaboración	Cobertura geográfica
Grupo de servicio de agua de California	Intercambio de infraestructura	California, Washington
Asociación de Obras Americanas del Agua	Estándares técnicos de colaboración	Red Nacional

Gobiernos municipales y distritos de agua

SJW Group mantiene asociaciones estratégicas con entidades municipales:

• San Jose Water Company atiende a 8 municipios en el condado de Santa Clara
• Acuerdos de asociación con San José, Campbell y Los Gatos
• Inversión anual de infraestructura de agua: $ 45.2 millones

Empresas de ingeniería y construcción

Las asociaciones de ingeniería clave incluyen:

Pareja	Especialización	Valor de contrato
Negro & Timón	Diseño de infraestructura de agua	$ 12.3 millones
Jacobs Engineering Group	Modernización del sistema de agua	$ 8.7 millones

Proveedores de tecnología y software

Detalles de la asociación tecnológica:

• Se asoció con Sensus para tecnologías de medición inteligente
• Inversión de transformación digital: $ 6.5 millones anuales
• Proveedores de software centrados en la eficiencia de gestión del agua

Agencias de consultoría ambiental

Red de asociación ambiental:

Agencia de consultoría	Área de enfoque	Impacto de colaboración
Fondo de Defensa Ambiental	Estrategias de sostenibilidad	Huella de carbono reducida en un 22%
Fundación de Investigación del Agua	Investigación técnica	$ 3.1 millones de inversiones de investigación

SJW Group (SJW) - Modelo de negocio: actividades clave

Tratamiento y distribución de agua

SJW Group opera instalaciones de tratamiento de agua que procesan 55.4 millones de galones de agua por día en California. El volumen anual de producción de agua alcanza 20.2 mil millones de galones.

Métrica de tratamiento de agua	Volumen anual
Agua total procesada	20.2 mil millones de galones
Producción diaria de agua	55.4 millones de galones
Cobertura del área de servicio	3 condados en California

Mantenimiento y actualizaciones de infraestructura

El gasto de capital para la infraestructura en 2023 fue de $ 78.3 millones. La red total de tuberías abarca 1,245 millas.

• Tasa de reemplazo de infraestructura: 0.75% anual
• Edad de tubería promedio: 65 años
• Inversión anual de infraestructura: $ 78.3 millones

Monitoreo y prueba de calidad del agua

Realiza 150,000 pruebas de calidad del agua anualmente, cumpliendo con los estándares de la EPA con una tasa de cumplimiento del 99.8%.

Métrica de calidad del agua	Rendimiento anual
Pruebas totales de calidad del agua	150,000
Cumplimiento regulatorio	99.8%

Gestión de cumplimiento regulatorio

Asigna $ 4.2 millones anuales para el cumplimiento regulatorio y el monitoreo ambiental.

Servicio al cliente y operaciones de facturación

Atiende 235,000 conexiones de clientes con ingresos de facturación anuales de $ 214.6 millones.

Métrica de servicio al cliente	Datos anuales
Conexiones totales del cliente	235,000
Ingresos anuales de facturación	$ 214.6 millones

SJW Group (SJW) - Modelo de negocio: recursos clave

Redes de suministro y distribución de agua

SJW Group posee y opera 281 millas de platos principales de agua en California. Capacidad total de almacenamiento de agua: 102 millones de galones en 35 depósitos e instalaciones de almacenamiento.

Activo de red	Cantidad	Área de cobertura
Red de agua	281 millas	San José, California
Embalses	35	Condado de Santa Clara
Capacidad de almacenamiento total	102 millones de galones	Región de servicio

Instalaciones de tratamiento e infraestructura

SJW Group mantiene 4 plantas de tratamiento de agua con una capacidad de tratamiento diario combinada de 80 millones de galones.

• Ubicaciones de plantas de tratamiento de agua: San José, California
• Sistemas de filtración avanzados: 3 instalaciones de última generación
• Inversión anual de infraestructura: $ 24.3 millones

Experiencia técnica en gestión del agua

Composición de la fuerza laboral: 506 empleados totales a partir de 2023, con un 62% de retención de títulos técnicos o de ingeniería.

Categoría de empleado	Número	Porcentaje
Total de empleados	506	100%
Profesionales técnicos/de ingeniería	314	62%

Permisos y licencias regulatorios

Permisos activos: 17 licencias de gestión del agua estatales y federales que cubren las áreas de servicio de California.

Tecnologías avanzadas de monitoreo de agua

Inversión tecnológica: $ 8.7 millones en sistemas de monitoreo avanzado durante 2023 año fiscal.

• Sensores de monitoreo de calidad del agua en tiempo real: 247 unidades
• Sistemas de detección de fugas digitales: cubriendo el 92% de la red
• Tecnología automatizada de lectura de medidores: desplegado en el 98% de las conexiones de servicio

SJW Group (SJW) - Modelo de negocio: propuestas de valor

Suministro de agua potable confiable y seguro

SJW Group atiende a aproximadamente 239,000 personas en San José, California, proporcionando el 100% de cumplimiento con los estándares de la Ley de Agua Potable Seguro. La producción anual de agua es de 54.6 millones de galones por día en su área de servicio.

Métrica de calidad del agua	Actuación
Cumplimiento del tratamiento del agua	100%
Producción diaria de agua	54.6 millones de galones
Población de servicios	239,000 personas

Gestión sostenible de recursos hídricos

SJW Group gestiona 387 millas de tuberías de agua y mantiene 27 pozos de agua subterránea con sistemas de monitoreo avanzado.

• Inversión de conservación del agua: $ 12.4 millones anuales
• Programas de recarga de agua subterránea: 3 sitios activos
• Eficiencia de reciclaje de agua: 65% de los recursos hídricos totales

Infraestructura de agua de alta calidad

La inversión en infraestructura totalizó $ 47.2 millones en 2022, centrándose en el reemplazo de la tubería y la modernización del sistema.

Componente de infraestructura	Inversión
Reemplazo de la tubería	$ 24.6 millones
Actualizaciones de la instalación de tratamiento	$ 15.3 millones
Tecnología de medición inteligente	$ 7.3 millones

Tecnologías avanzadas de conservación del agua

SJW Group implementa la medición inteligente en el 100% de las conexiones del cliente, lo que permite el monitoreo del uso del agua en tiempo real.

• Cobertura de medidor inteligente: 100% del área de servicio
• Precisión de la tecnología de detección de fugas: 95%
• Reducción de la pérdida de agua: 12% anual

Servicios de atención al cliente receptivos

El equipo de servicio al cliente maneja el 98.7% de las consultas dentro de las 24 horas, manteniendo una calificación de satisfacción del cliente 4.8/5.

Métrica de servicio al cliente	Actuación
Tiempo de respuesta	24 horas
Calificación de satisfacción del cliente	4.8/5
Tasa de resolución de la investigación	98.7%

SJW Group (SJW) - Modelo de negocios: relaciones con los clientes

Soporte directo de servicio al cliente

SJW Group mantiene un centro de servicio al cliente dedicado ubicado en San José, California, que maneja aproximadamente 185,000 interacciones de clientes anualmente. La compañía opera un equipo de atención al cliente de 42 representantes a tiempo completo.

Métrica de servicio al cliente	Rendimiento anual
Interacciones totales del cliente	185,000
Representantes de servicio al cliente	42
Tiempo de respuesta promedio	24 horas

Plataformas de gestión de cuentas en línea

SJW Group proporciona interfaces de clientes digitales con las siguientes características:

• Portal de cuentas basado en la web
• Aplicación móvil para el pago de la factura
• Visión de facturas en línea
• Seguimiento de uso de agua digital

Métrica de plataforma digital	2024 datos
Usuarios de cuentas en línea	78,500
Descargas de aplicaciones móviles	42,300
Porcentaje de pago de facturas digitales	62%

Programas de participación comunitaria

SJW Group invierte en iniciativas de conservación y educación del agua comunitaria, asignando $ 375,000 anualmente a dichos programas.

Canales regulares de facturación y comunicación

La Compañía procesa aproximadamente 225,000 estados de facturación mensual con múltiples métodos de comunicación:

• Facturación en papel
• Facturación electrónica
• Notificaciones por correo electrónico
• Alertas de SMS

Informes transparentes de calidad del agua

SJW Group conduce Pruebas integrales de calidad del agua, realizando 85,000 pruebas de calidad del agua anualmente, con la divulgación pública completa de los resultados.

Métrica de informes de calidad del agua	Rendimiento anual
Pruebas totales de calidad del agua	85,000
Tasa de cumplimiento	99.8%
Informes públicos publicados	12

SJW Group (SJW) - Modelo de negocio: canales

Centros directos de ventas y servicio al cliente

SJW Group opera centros de servicio al cliente ubicados en San José, California, con 3 ubicaciones físicas que sirven aproximadamente 225,000 conexiones de servicio de agua en Silicon Valley.

Ubicación	Horas de servicio	Interacciones anuales del cliente
Sede de San José	De lunes a viernes de 8 a.m. a 5 p.m.	127,450 interacciones con los clientes
Rama de Silicon Valley	De lunes a viernes de 8 a.m. a 5 p.m.	98,230 interacciones con los clientes

Portal web en línea

La plataforma digital de SJW Group maneja aproximadamente el 62% de las transacciones de los clientes digitalmente.

• Usuarios mensuales de portal web activo: 38,750
• Tasa de pago de facturas en línea: 73%
• Finalización de la solicitud de servicio digital: 56%

Aplicación móvil

SJW lanzó la aplicación móvil en 2019 con una base de usuarios actual de 24,500 usuarios mensuales activos.

Característica de la aplicación	Porcentaje de uso
Pago de facturas	68%
Seguimiento de uso de agua	45%
Notificaciones de servicio	37%

Sistemas de soporte telefónico

SJW Group mantiene el centro de llamadas centralizado que maneja 52.300 llamadas de los clientes anualmente.

• Tiempo promedio de manejo de llamadas: 7.2 minutos
• Tasa de satisfacción del cliente: 89%
• Tasa de resolución de llamadas: 94%

Interfaces de facturación municipal

SJW Group se integra con 6 jurisdicciones municipales para la facturación y la coordinación de servicios.

Municipio	Conexiones de servicio	Integración de facturación
San José	142,500	Integración digital completa
Cupertino	35,200	Integración digital parcial
Campbell	22,750	Integración digital completa

SJW Group (SJW) - Modelo de negocios: segmentos de clientes

Consumidores de agua residencial

SJW Group sirve aproximadamente 237,000 conexiones residenciales en California y Texas a partir de 2023.

Característica de segmento	Datos específicos
Total de clientes residenciales	237,000 conexiones
Consumo promedio de agua mensual	5,000 galones por unidad residencial
Población del área de servicio	Aproximadamente 605,000 residentes

Usuarios de agua comercial e industrial

SJW Group ofrece servicios de agua a diversos clientes comerciales e industriales en sus territorios de servicio.

• Conexiones comerciales totales: 12,500
• Uso de agua industrial: 15% de la distribución total del agua
• Sectores comerciales clave: minorista, atención médica, tecnología

Entidades municipales y gubernamentales

SJW Group suministra agua a múltiples sistemas de infraestructura municipal e instalaciones gubernamentales.

Tipo de cliente municipal	Número de conexiones
Instalaciones del gobierno de la ciudad	85 conexiones directas
Escuelas públicas	42 instituciones educativas
Servicios de emergencia	27 departamentos de bomberos y hospitales

Clientes de agua agrícola

Servicios de agua agrícola limitados proporcionados principalmente en las áreas de servicio de California.

• Conexiones agrícolas: 350 Total
• Asignación de agua: 8% de la distribución total del agua
• Tipos de cultivos primarios: viñedos, huertos

Proyectos de desarrollo inmobiliario

SJW Group apoya la infraestructura del agua para nuevos desarrollos residenciales y comerciales.

Categoría de desarrollo	Nuevas conexiones anuales
Desarrollos residenciales	1.200 nuevas conexiones por año
Desarrollos comerciales	85 nuevas conexiones por año
Proyectos de uso mixto	45 nuevas conexiones por año

SJW Group (SJW) - Modelo de negocio: Estructura de costos

Gastos de mantenimiento de infraestructura

En 2022, SJW Group reportó $ 37.1 millones en gastos de mantenimiento de infraestructura. Los costos de reemplazo de infraestructura de agua de la compañía fueron de aproximadamente $ 15.2 millones para el año fiscal.

Categoría de infraestructura	Costo anual
Reemplazo de la red de agua	$ 8.6 millones
Mantenimiento de la red de tuberías	$ 6.5 millones
Mantenimiento del depósito	$ 4.1 millones

Costos de tratamiento de agua y purificación

SJW Group gastó $ 22.3 millones en tratamiento y purificación de agua en 2022, lo que representa un aumento del 5.7% respecto al año anterior.

• Costos de tratamiento químico: $ 7.6 millones
• Pruebas de calidad del agua: $ 3.2 millones
• Mantenimiento del equipo de purificación: $ 5.5 millones

Salarios y beneficios de los empleados

La compensación total de empleados para SJW Group en 2022 fue de $ 45.6 millones.

Categoría de compensación	Costo anual
Salarios base	$ 32.4 millones
Beneficios para la salud	$ 6.2 millones
Planes de jubilación	$ 4.1 millones
Bonos de rendimiento	$ 2.9 millones

Inversiones de tecnología y equipos

En 2022, SJW Group invirtió $ 18.7 millones en tecnología y actualizaciones de equipos.

• Tecnología de medidor de agua inteligente: $ 6.3 millones
• Actualizaciones del sistema SCADA: $ 4.2 millones
• Infraestructura de gestión de datos: $ 3.5 millones
• Tecnología de detección de fugas: $ 4.7 millones

Gastos de cumplimiento regulatorio

SJW Group gastó $ 12.4 millones en cumplimiento regulatorio en 2022.

Categoría de cumplimiento	Costo anual
Prueba de calidad del agua	$ 5.1 millones
Informes ambientales	$ 2.6 millones
Mantenimiento de permisos regulatorios	$ 4.7 millones

SJW Group (SJW) - Modelo de negocios: flujos de ingresos

Tarifas de servicio de agua

En 2022, SJW Group reportó ingresos por servicios de agua de $ 153.5 millones. La compañía atiende aproximadamente 239,000 conexiones en California y Texas.

Vía de Servício	Conexión	Ingresos del servicio de agua
California	225,000	$ 145.2 millones
Texas	14,000	$ 8.3 millones

Cargos de instalación de infraestructura

SJW Group recaudó $ 4.7 millones en tarifas de instalación de infraestructura en 2022.

Medidor de agua y tarifas de conexión

El medidor de agua y las nuevas tarifas de conexión generaron $ 2.1 millones en ingresos para la compañía en 2022.

Tipo de tarifa	Costo promedio	Ingresos totales
Nuevo medidor de agua	$750	$ 1.5 millones
Tarifas de conexión	$600	$ 0.6 millones

Ingresos del contrato municipal

Los ingresos del contrato municipal totalizaron $ 6.3 millones en 2022, representando acuerdos de servicio con entidades gubernamentales locales.

Servicios de gestión de recursos hídricos

Los servicios de gestión de recursos hídricos generaron $ 3.2 millones en ingresos adicionales para SJW Group en 2022.

• Servicios de gestión de aguas subterráneas
• Prueba de calidad del agua
• Implementación del programa de conservación

Flujos de ingresos totales: $ 169.8 millones para el año fiscal 2022

SJW Group (SJW) - Canvas Business Model: Value Propositions

You're looking at the core promises SJW Group makes to its customers and investors as of late 2025. These aren't just mission statements; they are backed by capital plans and dividend history.

Provision of safe, reliable, and high-quality essential water service

The fundamental value is delivering life-sustaining, high-quality water. This is executed through local utilities serving approximately 1.6 million customers across California, Connecticut, Maine, and Texas.

The commitment to service quality is tied to regulatory performance metrics, like those at Connecticut Water, where achieving targets allowed for recovery of additional revenues through the Water Revenue Adjustment (WRA).

Long-term infrastructure investment for system reliability and water quality

SJW Group is putting serious capital to work to maintain and modernize its systems. The planned capital expenditures for the full year 2025 are set at $473 million.

For perspective, in the first quarter of 2025, the company already invested $78.2 million in infrastructure, putting it on track to meet its full-year goal. This investment is part of a much larger, long-term commitment.

Here's a quick look at the scale of the infrastructure commitment:

Investment Metric	Value/Period
Planned 2025 Capital Expenditures	$473 million
Five-Year Capital Plan Total	$2.0 billion
San Jose Water 3-Year Capital Plan (2025-2027)	$450 million
Q1 2025 Infrastructure Investment	$78.2 million

Also, the San Jose Water Company subsidiary is executing a separate $100 million Advanced Metering Infrastructure (AMI) project, with the bulk of spending slated for 2025 and 2026.

Environmental stewardship, including PFAS treatment and emission reduction goals

SJW Group is actively addressing environmental challenges, which is a critical value proposition in today's regulatory climate. The company was recognized as one of America's Most Responsible Companies 2025 and America's Greenest Companies 2025.

Specific environmental targets and costs include:

• Estimated capital expenditure required for PFAS treatment: approximately $300 million.
• Greenhouse gas emission reduction goal: 50% reduction in Scope 1 and 2 emissions by 2030.
• Achieved reduction in Scope 1 and 2 emissions between 2019-2022: 20%.

The company is designing its first treatment facility for PFHxS removal, with design expected to finish at the end of 2024, leading to construction starting soon after.

Predictable, regulated pricing model for an essential service

Because SJW Group operates in a regulated space, its pricing model offers predictability for both customers and investors. You see this play out in rate case outcomes.

For instance, the General Rate Case (GRC) decision for San Jose Water, effective January 1, 2025, authorized a revenue increase of $53.1 million over the three-year cycle. This decision also authorized a rate increase of approximately 4% for 2025.

In Texas, SJWTX, Inc. (The Texas Water Company) has a pending application for a second System Infrastructure Charge, requesting an annual revenue increase of $4.1 million. This is the mechanism that helps align authorized revenue with operational needs. It's a defintely different approach than a pure market play.

57 consecutive years of annual dividend increases for shareholders

This track record is a cornerstone of the value proposition to shareholders. SJW Group has increased its annual dividend for 57 consecutive years, paying dividends for more than 80 consecutive years.

The most recent increase, announced in January 2025, was a 5.0% hike in the quarterly dividend to $0.42 per share. This sets the projected 2025 annualized dividend at $1.68 per share, up from $1.60 per share in 2024. The company is affirming 2025 adjusted diluted EPS guidance of $2.90 to $3.00, anchoring its long-term growth projection at 5% to 7% through 2029.

Finance: draft 13-week cash view by Friday.

SJW Group (SJW) - Canvas Business Model: Customer Relationships

You're looking at how SJW Group, which rebranded to H2O America in May 2025, manages the connection with the over 1.6 million people it serves across its national footprint. For a regulated utility, customer relationships are defintely built on reliability and regulatory compliance, which directly impacts the monthly billing experience.

The core relationship is regulated and transactional, driven by monthly billing and service delivery, which is heavily influenced by rate case outcomes. For instance, at San Jose Water, new rates went into effect on January 1, 2025, following a General Rate Case approval that authorized a total revenue increase of $53.1 million over a three-year cycle. The immediate impact for 2025 was a step increase of $21.3 million in authorized revenues, which translates to about a 3.91% increase for that year.

Here's a quick look at the scale of the customer base and the revenue mechanisms that underpin the transactional relationship:

Metric	Value/Detail	Context/Date
Total People Served Nationwide	Over 1.6 million	As of early 2025
San Jose Water Connections	232,000	California service area
San Jose Water 2025 Revenue Step Increase	$21.3 million	Effective January 1, 2025
San Jose Water 2025 Revenue Step Increase Percentage	3.91%	Part of three-year GRC cycle
Q1 2025 Operating Revenue Growth (YoY)	12% increase to $167.6 million	Driven by rate increases and usage

Community engagement and charitable giving are managed through the Force for Good Foundation, signaling a commitment beyond just water delivery. SJW Group was recognized by Newsweek as one of America's Most Responsible Companies 2025, which acknowledges efforts spanning environmental initiatives, affordability programs, volunteering, and charitable donations. This recognition helps strengthen the social contract with customers.

Affordability is a key relationship pillar, especially for low-income customers. The company actively manages assistance programs. While specific 2025 figures aren't public yet, we know the company expanded income-eligibility for its Water Rate Assistance Program (WRAP) in Connecticut, which offers bill discounts to income-eligible customers. For context on past support:

• Secured over $900,000 in assistance for customers across California, Maine, and Connecticut via the federal Low-Income Home Water Assistance Program in 2023.
• Assisted California customers with $15.3 million through the state California Water and Wastewater Arrearage Payment Program in 2023.

Direct communication channels focus on transparency regarding service reliability and conservation. A tangible result of infrastructure investment, which is communicated to customers as a benefit of their rates, is the improvement in system performance. For example, an advanced leak detection program successfully reduced non-revenue water to less than 10% in California. This focus on operational excellence is a silent, but critical, part of the ongoing customer relationship.

• Communication covers outages, billing inquiries, and conservation program updates.
• Infrastructure investment for 2025 is planned at $473 million to maintain and improve service quality.
• The company has a history of paying dividends for over 80 consecutive years, a key communication point for investors, which underpins operational stability for customers.

Finance: draft 13-week cash view by Friday.

SJW Group (SJW) - Canvas Business Model: Channels

You're looking at how H2O America, formerly SJW Group, gets its essential water and wastewater services to its customers as of late 2025. The channels are pretty straightforward for a utility, but the scale across four states is what matters for your analysis.

Direct service provision through company-owned distribution systems is the bedrock. This means the physical pipes, treatment plants, and pumping stations owned and operated by the local subsidiaries. The company serves over 1.6 million people across its national footprint. The primary channel is the direct delivery of water and the collection of wastewater within regulated territories.

Here's a breakdown of the customer footprint delivered through these owned systems:

Operating Company	State(s)	Approximate People Served	Known Connections
San Jose Water Company	California	1,000,000	232,000
The Connecticut Water Company	Connecticut	(Part of 1.6 million total)	(Not specified in latest data)
The Maine Water Company	Maine	(Part of 1.6 million total)	(Not specified in latest data)
SJWTX, Inc. (Texas Water Company)	Texas	(Part of 1.6 million total)	Approx. 29,000

The channel is heavily regulated, so customer interaction for billing and service requests is often mandated. Still, H2O America is pushing digital adoption. You see this most clearly in California.

Online customer portals and mobile applications for billing and service requests are key for modernizing the customer experience, even if the service itself is a monopoly. For instance, the San Jose Water subsidiary is rolling out a $100 million Advanced Metering Infrastructure (AMI) project. That AMI system is the backbone for more transparent, real-time data delivery to customers via their digital channels, helping them see usage and report issues faster.

The structure relies on local operating companies acting as the direct interface for service delivery. These entities manage the day-to-day customer relationship and infrastructure maintenance:

• San Jose Water Company: Serves the greater San Jose metropolitan area in California. It saw a rate increase of approximately 4% for 2025, effective January 1, 2025.
• The Connecticut Water Company: Received approval to recover additional revenues through the Water Revenue Adjustment (WRA) for achieving performance metrics in Q1 2025.
• The Maine Water Company: Filed a General Rate Case (GRC) application for its Camden-Rockland Division requesting an annual revenue increase of approximately $1.1 million, or 15.9%.
• SJWTX, Inc. (The Texas Water Company): Has an application pending before the Public Utilities Commission of Texas requesting an annual revenue increase of $4.1 million from its System Infrastructure Charge.

Finally, the secondary channels via non-regulated water sales and real estate division provide diversification, though they are minor compared to the regulated utility revenue. For context on the scale of these non-core activities, the Q4 2024 results showed a (Gain) loss on sale of non-utility real estate, net of tax, of ($0.01 million). This division is definitely a supporting channel, not a primary driver of the core business flow.

Finance: draft 13-week cash view by Friday.

SJW Group (SJW) - Canvas Business Model: Customer Segments

You're looking at the core customer base for SJW Group, which rebranded to H2O America in May 2025. This utility serves essential, non-discretionary demand, which is the bedrock of its regulated business model.

The total reach of SJW Group, now H2O America, is providing life-sustaining and high-quality water service to over 1.6 million people across the United States as of its First Quarter 2025 reports. The company's operations are spread across four states through its locally led and operated water utilities.

Here's a breakdown of the customer base by the known operating entities and their connection counts:

Customer Segment Focus	Service Territory / Subsidiary	Known Connections (Approximate)	Population Served (Approximate)
Residential & Commercial Base	San Jose Water Company (California)	232,000 connections	One million people
Residential & Commercial Base	The Connecticut Water Company (CT/ME)	142,000 connections (across CT and ME)	Not explicitly stated
Residential & Commercial Base	SJWTX, Inc. (Texas Water Company)	29,000 connections (North of San Antonio)	Not explicitly stated

The total of these explicitly stated connections is approximately 403,000, all contributing to the 1.6 million people served overall.

Residential consumers form the foundation of the customer base, representing individual households relying on the utility for essential services. In California alone, the San Jose Water Company segment serves approximately one million people through its 232,000 connections.

The segment encompassing Commercial and industrial businesses, along with Public authorities and governmental entities, is served across the four operational states: California, Connecticut, Maine, and Texas. The growth in this area is evident in Texas, where the Texas Water Company saw a 12% year-over-year customer increase in 2023. Regulatory approvals, such as the general rate case decision for San Jose Water in December 2024, which authorized an increase of $53.1 million in revenues over three years starting January 1, 2025, directly impact the revenue derived from these customer classes.

Regarding real estate development customers in California and Tennessee, the data confirms operations in California, but explicitly names Texas, not Tennessee, as the fourth state of operation. The company's strategy involves capital investments to support service capacity for growth areas, with planned 2025 capital expenditures of $473 million.

You can see the geographic spread of the customer base through the utility subsidiaries:

• San Jose Water Company in California.
• The Connecticut Water Company in Connecticut.
• The Maine Water Company in Maine.
• SJWTX, Inc. (dba The Texas Water Company) in Texas.

The company's focus on infrastructure investment, with a plan to invest approximately $2.0 billion over five years, is a direct action to maintain service quality for all these segments.

Finance: draft 13-week cash view by Friday.

SJW Group (SJW) - Canvas Business Model: Cost Structure

You're looking at the major outlays for SJW Group (SJW) as they execute their national platform strategy in 2025. For a utility heavily focused on infrastructure renewal, capital spending is a massive cost driver, but operating expenses, especially those tied to resource availability and regulation, are constant pressures.

High capital expenditures for infrastructure form a cornerstone of the cost base. SJW Group has planned capital expenditures for 2025 totaling $473 million. This spending is aimed at maintaining and improving water supply and infrastructure across their footprint. For example, the San Jose Water Company subsidiary has an authorized investment of $450 million over three years (covering 2025 through 2027) for critical drinking water infrastructure, stemming from a General Rate Case settlement. By the end of the first quarter of 2025, the company had already invested $78.2 million toward this annual goal.

The table below breaks down some of the most significant, quantifiable costs SJW Group faces, using the latest available 2025 data points:

Cost Category Component	Latest Reported/Planned 2025 Figure	Context/Period
Planned Full-Year Capital Expenditures	$473 million	2025 Plan
Actual Infrastructure Investment	$78.2 million	Q1 2025
Interest on Long-Term Debt and Other Interest Expense	$18.272 million	Q1 2025
Increase in Water Production Expenses (YoY)	$7.2 million increase	Q1 2025 vs. Q1 2024
San Jose Water GRC Infrastructure Investment Authorization	$450 million	Over three years, starting 2025
Maine Water WISC Requested Surcharge Increase	$547,000	Combined for Oakland and Biddeford Saco divisions

Significant operating production expenses are dominated by the cost of resources. The primary drivers here are purchased water and groundwater extraction charges, which caused water production expenses to increase by $7.2 million in the first quarter of 2025 compared to the same quarter last year. Purchased power is also a factor, with SJW Group noting a strategy to invest in solar generation to reduce future operating costs.

Regulatory compliance and legal costs are ongoing due to the nature of regulated operations. New rates for San Jose Water Company took effect on January 1, 2025, following a General Rate Case decision. Furthermore, the Connecticut Water Company subsidiary faced litigation risk, as it was named in a class action lawsuit in 2023, which can lead to significant, and potentially unrecoverable, legal costs. Other regulatory actions include:

• Texas Water seeking an annual revenue increase of $4.1 million through its System Infrastructure Charge application.
• Maine Water filing for Water Infrastructure Charge (WISC) increases totaling 3.00%.
• The Water Cost of Capital (COC) filing for San Jose Water was deferred to May 1, 2026, which alleviated administrative processing costs for 2025.

Interest expense on debt is a direct result of financing those large capital projects. For the first quarter of 2025, the reported interest on long-term debt and other interest expense was $18.272 million, up from $17.584 million in the first quarter of 2024. The company's focus on maintaining its credit rating means keeping its Funds From Operations (FFO) to debt consistently above 11%, despite the robust capital spending.

Finally, labor costs for field operations and administrative staff are a persistent expense. While specific 2025 labor cost figures aren't detailed, the 2024 results showed an increase in administrative and general expenses that was partly attributed to increases for labor costs. You can expect these personnel costs to continue to rise due to inflationary pressures and the need for skilled field operations staff to manage the extensive capital improvement programs. Finance: draft 13-week cash view by Friday.

SJW Group (SJW) - Canvas Business Model: Revenue Streams

The core of SJW Group (SJW) revenue generation is firmly rooted in its regulated utility operations, which you can see clearly in the financial reporting.

Regulated water and wastewater service charges (primary stream) constitute the vast majority of SJW Group's income, given its status as a leading investor-owned pure-play water and wastewater utility operating across California, Connecticut, Maine, and Texas. This stream is predictable, governed by authorized rates of return set by regulatory bodies like the California Public Utilities Commission (CPUC).

Revenue is also boosted by specific regulatory mechanisms and rate adjustments:

• Revenue from rate increases, like the 4% rate increase for San Jose Water effective January 1, 2025.
• The San Jose Water General Rate Case (GRC) decision authorized an increase of $53.1 million in revenues over the three-year cycle beginning in 2025.
• For the first quarter of 2025, higher water rates overall contributed $17.2 million to the results.
• The company also implemented an approved Water Infrastructure and Conservation Charge (WICA) increase at Connecticut Water.

SJW Group also maintains other, smaller revenue sources outside of the core regulated utility business. These are less central to the overall financial picture but still contribute to the top line.

Non-regulated water production and delivery services are not explicitly detailed with a revenue figure, but the regulated nature implies any non-regulated delivery would be minor or incidental.

Revenue from land development and real estate activities comes from a small division within SJW Group. This division owns and develops properties for residential and warehouse customers in California and Tennessee. While direct revenue isn't isolated, its impact is noted in adjustments, as non-utility real estate transactions were factored into the calculation of adjusted net income for the fourth quarter of 2024.

Here's a quick look at the top-line revenue context for 2025:

Metric	Amount (as of late 2025)
Total TTM Revenue	$0.76 Billion USD
Q1 2025 Revenue	$176.6 million
Q1 2024 Revenue	$149.4 million
2024 Operating Revenue	$748.4 million

The total TTM Revenue as of 2025 is approximately $0.76 Billion USD.