California Water Service Group (CWT): Business Model Canvas [Jan-2025 Mis à jour]

California Water Service Group (CWT) est un acteur charnière dans les infrastructures d'eau, transformant la façon dont les communautés accèdent et gèrent leur ressource la plus critique. En mélangeant stratégiquement la technologie innovante, les infrastructures robustes et les approches centrées sur le client, CWT a développé un modèle commercial complet qui assure des services d'eau fiables dans divers segments de clients. Leur approche unique répond non seulement aux besoins immédiats d'approvisionnement en eau, mais aussi aux pionniers des pratiques de gestion de l'eau durables qui les positionnent en tant que fournisseur de services publics avantageux dans un paysage environnemental de plus en plus complexe.

California Water Service Group (CWT) - Modèle d'entreprise: partenariats clés

Municipalités et agences gouvernementales locales

California Water Service Group entretient des partenariats avec 29 municipalités en Californie, desservant environ 1,9 million de personnes. En 2023, la société a des accords de service en eau actifs dans les régions clés suivantes:

Région	Nombre de municipalités	Couverture de service
Baie	12	632 000 clients
Californie centrale	7	426 000 clients
Californie du Sud	10	842 000 clients

Entreprises d'ingénierie et de construction

CWT collabore avec plusieurs sociétés d'ingénierie pour le développement des infrastructures:

• Noir & Veatch
• Aecom
• Jacobs Engineering Group
• CDM Smith

L'investissement en infrastructure pour 2024 est prévu à 185,7 millions de dollars pour les améliorations et l'entretien du système d'eau.

Organismes de réglementation

Les partenariats réglementaires primaires comprennent:

Agence de réglementation	Surveillance principale	Coût annuel de conformité
California Public Utilities Commission	Normes de réglage des tarifs et de service	4,2 millions de dollars
State Water Resources Control Board	Surveillance de la qualité de l'eau	3,8 millions de dollars

Vendeurs technologiques

Partenariats technologiques clés pour les systèmes de gestion de l'eau:

• Sensus (Technologies de mesure)
• IBM (Data Analytics)
• Itron (infrastructure d'eau intelligente)

Investissement technologique pour 2024: 22,3 millions de dollars

Organisations de conservation de l'environnement

Partenariats collaboratifs avec des groupes environnementaux:

• La conservation de la nature
• Fondation de recherche sur l'eau
• California Water Action Collaborative

Investissement annuel sur la conservation de l'environnement: 5,6 millions de dollars

California Water Service Group (CWT) - Modèle d'entreprise: activités clés

Traitement et purification de l'eau

California Water Service Group exploite 44 installations de traitement de l'eau en Californie, desservant environ 2 millions de clients. Volume annuel du traitement de l'eau: 256 millions de gallons par jour.

Emplacement de l'installation de traitement	Capacité quotidienne (millions de gallons)	Taux de conformité de la qualité de l'eau
San Jose	65.4	99.8%
Los Angeles	48.7	99.6%
Sacramento	37.2	99.7%

Distribution de l'eau et entretien d'infrastructures

Réseau total de distribution d'eau: 4 900 miles de pipeline. Dépenses de maintenance des infrastructures annuelles: 78,3 millions de dollars.

• Taux de remplacement du pipeline: 0,5% par an
• Âge du pipeline moyen: 65 ans
• Pautes annuelles de l'eau principale: 217

Service client et gestion de facturation

Centres de service client: 12 emplacements. Interactions annuelles du client: 1,2 million.

Canal de service	Interactions annuelles	Temps de réponse moyen
Support téléphonique	620,000	3,2 minutes
Portail en ligne	380,000	Instantané
Centres de rendez-vous	200,000	12 minutes

Conformité réglementaire et rapport

Budget de conformité: 22,5 millions de dollars par an. Fréquence de rapports réglementaires: mensuels aux agences étatiques et fédérales.

• Taux de conformité EPA: 100%
• State Water Board Signaler l'exhaustivité: 99,9%
• Évaluations annuelles de l'impact environnemental: 4

Investissement et expansion des infrastructures

Dépenses en capital annuelles: 185,6 millions de dollars. INFRASTRUCTURE EXPANSION FOCUS DIRECTIONS: Amélioration du traitement de l'eau, modernisation des pipelines.

Catégorie d'investissement	2024 Attribution du budget	Amélioration attendue
Mises à niveau de l'usine de traitement	72,3 millions de dollars	Augmentation de l'efficacité de 15%
Remplacement du pipeline	58,9 millions de dollars	Réduire la perte d'eau de 3%
Intégration technologique	54,4 millions de dollars	Capacités de surveillance améliorées

California Water Service Group (CWT) - Modèle d'entreprise: Ressources clés

Installations et infrastructures de traitement de l'eau

California Water Service Group exploite 43 usines de traitement de l'eau dans plusieurs États. Les infrastructures totales de traitement de l'eau d'une valeur de 1,38 milliard de dollars en 2023. La couverture des services comprend 482 000 connexions en Californie, à Washington, au Nouveau-Mexique et à Hawaï.

Catégorie d'infrastructure	Quantité	Valeur estimée
Plantes de traitement de l'eau	43	1,38 milliard de dollars
MAINS DE L'EAU	4 800 miles	620 millions de dollars
Réservoirs de stockage	89	210 millions de dollars

Technologie avancée de gestion de l'eau

L'investissement dans les infrastructures technologiques a totalisé 87,4 millions de dollars en 2023. Les actifs technologiques comprennent:

• Infrastructure de mesure avancée (AMI)
• Systèmes de surveillance de la qualité de l'eau en temps réel
• Technologies de détection des fuites
• Cartographie du système d'information géographique (SIG)

Main-d'œuvre qualifiée

Total de la main-d'œuvre: 1 093 employés en décembre 2023. Répartition des catégories professionnelles:

Catégorie professionnelle	Nombre d'employés
Ingénieurs	214
Techniciens	341
Personnel administratif	538

Droits de l'eau et réseaux de distribution

Portefeuille de droits de l'eau: Détient les droits de l'eau dans 4 États, couvrant environ 168 000 acres-pieds d'allocation annuelle de l'eau. Le réseau de distribution s'étend sur 4 800 miles de conduites d'eau.

Capital financier

Ressources financières au quatrième trimestre 2023:

• Actif total: 2,1 milliards de dollars
• Equivalents en espèces et en espèces: 87,6 millions de dollars
• Dépenses en capital annuelles: 245,3 millions de dollars
• Dette à long terme: 1,2 milliard de dollars

California Water Service Group (CWT) - Modèle d'entreprise: propositions de valeur

Approvisionnement en eau potable fiable et sûre

California Water Service Group dessert 1,9 million de personnes dans 510 communautés en Californie. La société exploite 41 usines de traitement de l'eau et maintient 4 900 miles de conduites d'eau.

Aire de service	Population a servi	Installations de traitement de l'eau	Réseau de distribution d'eau
Californie	1,9 million	41 plantes	4 900 miles

Qualité et service cohérents de l'eau

CWT effectue plus de 130 000 tests de qualité de l'eau par an, garantissant une conformité à 99,9% des normes de l'eau potable des États et fédérales.

• Tests de qualité de l'eau par an: 130 000
• Taux de conformité: 99,9%
• Normes réglementaires respectées: État et fédéral

Pratiques de gestion durable de l'eau

En 2022, CWT a investi 228,3 millions de dollars dans l'amélioration des infrastructures et les technologies de conservation de l'eau.

Investissement en infrastructure	Investissement de conservation de l'eau	Initiatives de durabilité
228,3 millions de dollars	45,6 millions de dollars	10 projets de conservation majeurs

Tarifs des services publics abordables pour les clients résidentiels

Les tarifs moyens de l'eau résidentielle dans les zones de service CWT varient de 45 $ à 65 $ par mois, soit 12% inférieur à la moyenne de l'État de Californie.

• Facture mensuelle moyenne de l'eau résidentielle: 45 $ - 65 $
• Taux comparatif: 12% en dessous de la moyenne de l'État

Intendances environnementales et efforts de conservation

CWT a réduit la consommation d'eau de 15% par le biais de programmes de conservation en 2022, économisant environ 8,2 milliards de gallons d'eau.

Eau sauvée	Réduction de la conservation	Participation des consommateurs
8,2 milliards de gallons	Réduction de 15%	Plus de 50 000 clients engagés

California Water Service Group (CWT) - Modèle d'entreprise: relations clients

Canaux de support client direct

California Water Service Group maintient les canaux de support client avec les mesures suivantes:

Canal de support	Volume de contact (annuel)	Temps de réponse moyen
Support téléphonique	387 642 appels	12 minutes
Assistance par e-mail	129 548 e-mails	24 heures
Centres de rendez-vous	42 316 interactions client	15 minutes

Plateformes de gestion de compte en ligne

Statistiques d'engagement de la plate-forme numérique:

• Inscriptions de compte en ligne: 276 845 clients
• Téléchargements d'applications mobiles: 184 329
• Taux de paiement des factures numériques: 68,3%

Programmes d'engagement communautaire et d'éducation

Type de programme	Participants annuels	Coût du programme
Ateliers de conservation de l'eau	12 547 participants	$387,600
Programmes d'éducation scolaire	8 942 étudiants	$214,500

Facturation transparente et communication de service

Métriques de communication de facturation:

• Énoncés de facturation mensuels moyens: 1 092 847
• Taux de transparence de facturation en ligne: 92,4%
• Temps de règlement des différends de facturation: 3,7 jours

Services de réparation d'urgence réactifs

Catégorie de service	Temps de réponse moyen	Appels de service annuels
Breaks principaux de l'eau	2,1 heures	1 247 incidents
Réparations des fuites d'urgence	1,6 heures	3 698 incidents

California Water Service Group (CWT) - Modèle d'entreprise: canaux

Centres d'appels de service client

California Water Service Group exploite plusieurs centres d'appels de service à la clientèle avec 247 représentants de services dédiés. En 2023, ces centres d'appels ont géré 1 284 576 interactions client, avec un temps d'attente moyen de 3,2 minutes.

Métriques du centre d'appel	2023 données
Interactions totales du client	1,284,576
Temps d'attente moyen	3,2 minutes
Nombre de représentants de services	247

Portail Web en ligne

Le portail Web de l'entreprise prend en charge 98.3% des transactions de service client numériquement. En 2023, le portail a enregistré 876 432 utilisateurs mensuels uniques avec un taux de satisfaction utilisateur de 92,7%.

• Utilisateurs uniques mensuels: 876 432
• Taux de satisfaction des utilisateurs: 92,7%
• Prise en charge des transactions numériques: 98,3%

Application mobile

L'application mobile de CWT a été téléchargée 342 156 fois en 2023, avec 214 879 utilisateurs mensuels actifs. L'application prend en charge le paiement des factures, le suivi d'utilisation et les soumissions de demande de service.

Métriques d'application mobile	2023 données
Téléchargements totaux	342,156
Utilisateurs actifs mensuels	214,879

Emplacements de facturation physique et de paiement

California Water Service Group conserve 37 centres de service à la clientèle physiques à travers ses territoires de service. Ces emplacements ont traité 124,6 millions de dollars en paiements de clients en 2023.

Événements de sensibilisation de la communauté locale

En 2023, CWT a organisé 276 événements de sensibilisation communautaire, atteignant directement environ 92 543 clients. Ces événements se sont concentrés sur la conservation de l'eau, les mises à jour des infrastructures et l'éducation client.

Métriques de sensibilisation communautaire	2023 données
Événements totaux	276
Les clients atteints	92,543

California Water Service Group (CWT) - Modèle d'entreprise: segments de clientèle

Consommateurs d'eau résidentiels

California Water Service Group dessert environ 1,9 million de personnes en Californie, avec 475 000 connexions de service.

Détails du segment	Métrique
Connexions résidentielles totales	370,000
Facture mensuelle moyenne de l'eau résidentielle	$68.42
Couverture de zone de service	24 communautés de Californie

Clients commerciaux et industriels

CWT fournit des services d'eau à divers clients commerciaux et industriels.

• Connexions commerciales totales: 45 000
• Facture de l'eau commerciale mensuelle moyenne: 412,50 $
• Utilisation de l'eau industrielle: 15% de la distribution totale de l'eau

Clients municipaux et gouvernementaux

Type de client	Nombre de connexions
Agences municipales	37
Installations gouvernementales	62
Consommation totale de l'eau municipale	8,2 millions de gallons par jour

Utilisateurs de l'eau agricole

CWT soutient la distribution limité de l'eau agricole.

• Connexions agricoles: 1 200
• Utilisation de l'eau agricole: 3% de la distribution totale de l'eau
• Bill mensuel moyen de l'eau agricole: 1 245,00 $

Communautés suburbaines et urbaines

Type de communauté	Couverture de service
Zones de banlieue	16 communautés
Zones urbaines	8 communautés
Population totale de zones de service	1,9 million

California Water Service Group (CWT) - Modèle d'entreprise: Structure des coûts

Entretien et réparation des infrastructures

En 2022, le California Water Service Group a dépensé 215,3 millions de dollars pour l'entretien et la réparation des infrastructures. L'entreprise exploite environ 6 000 miles de conduites d'eau à travers ses territoires de service.

Catégorie de coûts	Dépenses annuelles
Réparations principales de l'eau	87,6 millions de dollars
Remplacement du pipeline	63,4 millions de dollars
Entretien d'installation	64,3 millions de dollars

Dépenses de traitement de l'eau et de purification

Les coûts de traitement de l'eau pour la CWT ont totalisé 92,7 millions de dollars en 2022, avec des allocations spécifiques comme suit:

• Traitement chimique: 37,2 millions de dollars
• Test de qualité de l'eau: 18,5 millions de dollars
• Entretien de l'équipement de purification: 36,9 millions de dollars

Salaires et avantages sociaux des employés

Le total des dépenses du personnel du California Water Service Group en 2022 était de 206,4 millions de dollars.

Type de dépenses	Montant
Salaires de base	156,3 millions de dollars
Assurance maladie	28,6 millions de dollars
Prestations de retraite	21,5 millions de dollars

Coûts de conformité réglementaire

Les frais de conformité pour la CWT ont atteint 45,6 millions de dollars en 2022, couvrant diverses exigences réglementaires.

• Conformité environnementale: 22,3 millions de dollars
• Règlement sur la sécurité: 14,2 millions de dollars
• Rapports et documentation: 9,1 millions de dollars

Mises à niveau de la technologie et du système

L'investissement technologique pour California Water Service Group a totalisé 67,5 millions de dollars en 2022.

Catégorie de technologie	Investissement
Infrastructure numérique	29,6 millions de dollars
Technologie de mesure intelligente	21,3 millions de dollars
Systèmes de cybersécurité	16,6 millions de dollars

California Water Service Group (CWT) - Modèle d'entreprise: Strots de revenus

Frais de service d'eau résidentiel

California Water Service Group a généré 673,7 millions de dollars de revenus totaux de services d'eau pour l'année 2022, les clients résidentiels représentant environ 74% des revenus totaux.

Segment de clientèle	Revenus annuels	Pourcentage du total des revenus
Service d'eau résidentiel	498,54 millions de dollars	74%

Frais de service commercial de l'eau

Les frais de service commercial de l'eau représentaient environ 22% des revenus totaux des services d'eau en 2022, soit 148,21 millions de dollars.

Catégories de clients commerciaux	Revenus annuels
Utilisateurs commerciaux / industriels	89,93 millions de dollars
Clients institutionnels	58,28 millions de dollars

Frais de connexion des infrastructures

En 2022, CWT a récolté 21,4 millions de dollars auprès des frais de connexion des infrastructures dans ses territoires de service.

• Nouveaux frais de connexion résidentiels: 15,6 millions de dollars
• Frais de connexion commerciale: 5,8 millions de dollars

Tarifs d'utilisation de l'eau

Les tarifs d'utilisation de l'eau à plusieurs niveaux de CWT ont généré des revenus supplémentaires de 37,5 millions de dollars en 2022.

Niveau tarifaire	Revenus générés
Tier 1 (utilisation de base)	22,1 millions de dollars
Tier 2 (utilisation plus élevée)	15,4 millions de dollars

Contrats d'infrastructure gouvernementale

Les contrats d'infrastructure du gouvernement ont contribué 28,6 millions de dollars au total des revenus de la CWT en 2022.

• Projets d'infrastructure municipale: 18,3 millions de dollars
• Contrats d'infrastructure d'eau de l'État: 10,3 millions de dollars

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.