Grupo de Serviço de Água da Califórnia (CWT): Modelo de Negócios Canvas [Jan-2025 Atualizado]

O California Water Service Group (CWT) permanece como um jogador fundamental na infraestrutura de água, transformando como as comunidades acessa e gerenciam seus recursos mais críticos. Ao misturar estrategicamente tecnologia inovadora, infraestrutura robusta e abordagens centradas no cliente, a CWT desenvolveu um modelo de negócios abrangente que garante serviços de água confiáveis ​​em diversos segmentos de clientes. Sua abordagem única não apenas atende às necessidades imediatas de abastecimento de água, mas também aos pioneiros práticas sustentáveis ​​de gerenciamento de água que as posicionam como um fornecedor de utilidade de visão de futuro em um cenário ambiental cada vez mais complexo.

Grupo de Serviço de Água da Califórnia (CWT) - Modelo de Negócios: Principais Parcerias

Municípios e agências governamentais locais

O California Water Service Group mantém parcerias com 29 municípios em toda a Califórnia, atendendo a aproximadamente 1,9 milhão de pessoas. A partir de 2023, a empresa possui acordos ativos de serviço de água nas seguintes regiões -chave:

Região	Número de municípios	Cobertura de serviço
Área da baía	12	632.000 clientes
Central California	7	426.000 clientes
Sul da Califórnia	10	842.000 clientes

Empresas de engenharia e construção

A CWT colabora com várias empresas de engenharia para desenvolvimento de infraestrutura:

• Preto & VEATCH
• Aecom
• Jacobs Engineering Group
• CDM Smith

O investimento em infraestrutura para 2024 é projetado em US $ 185,7 milhões Para melhorias e manutenção do sistema de água.

Órgãos regulatórios

As parcerias regulatórias primárias incluem:

Agência regulatória	Supervisão primária	Custo anual de conformidade
Comissão de Utilidade Pública da Califórnia	Classificação e padrões de serviço	US $ 4,2 milhões
Conselho Estadual de Controle de Recursos Hídricos	Monitoramento da qualidade da água	US $ 3,8 milhões

Fornecedores de tecnologia

Principais parcerias de tecnologia para sistemas de gerenciamento de água:

• Sensus (tecnologias de medição)
• IBM (Data Analytics)
• Itron (infraestrutura de água inteligente)

Investimento de tecnologia para 2024: US $ 22,3 milhões

Organizações de conservação ambiental

Parcerias colaborativas com grupos ambientais:

• A Conservancy Nature
• Fundação de Pesquisa de Água
• California Water Action Collaborative

Investimento anual de conservação ambiental: US $ 5,6 milhões

Grupo de Serviço de Água da Califórnia (CWT) - Modelo de Negócios: Atividades -chave

Tratamento e purificação de água

O California Water Service Group opera 44 instalações de tratamento de água em toda a Califórnia, atendendo a aproximadamente 2 milhões de clientes. Volume anual de tratamento de água: 256 milhões de galões por dia.

Localização da instalação de tratamento	Capacidade diária (milhão de galões)	Taxa de conformidade da qualidade da água
San Jose	65.4	99.8%
Los Angeles	48.7	99.6%
Sacramento	37.2	99.7%

Distribuição de água e manutenção de infraestrutura

Rede total de distribuição de água: 4.900 milhas de tubulação. Despesas anuais de manutenção de infraestrutura: US $ 78,3 milhões.

• Taxa de substituição de pipeline: 0,5% anualmente
• Idade média do oleoduto: 65 anos
• Principais pausas anuais da água: 217

Atendimento ao cliente e gerenciamento de cobrança

Centros de atendimento ao cliente: 12 locais. Interações anuais do cliente: 1,2 milhão.

Canal de serviço	Interações anuais	Tempo médio de resposta
Suporte telefônico	620,000	3,2 minutos
Portal online	380,000	Instantâneo
Centros de Walk-In	200,000	12 minutos

Conformidade regulatória e relatórios

Orçamento de conformidade: US $ 22,5 milhões anualmente. Frequência de relatórios regulatórios: mensalmente para agências estaduais e federais.

• Taxa de conformidade da EPA: 100%
• Relatório do Conselho Estadual de Relatórios de Relatórios: 99,9%
• Avaliações anuais de impacto ambiental: 4

Investimento de infraestrutura e expansão

Despesas com capital anual: US $ 185,6 milhões. Áreas de foco em expansão da infraestrutura: atualizações de tratamento de água, modernização de oleodutos.

Categoria de investimento	2024 Alocação orçamentária	Melhoria esperada
Atualizações da planta de tratamento	US $ 72,3 milhões	15% de aumento de eficiência
Substituição de pipeline	US $ 58,9 milhões	Reduzir a perda de água em 3%
Integração de tecnologia	US $ 54,4 milhões	Recursos de monitoramento aprimorados

Grupo de Serviço de Água da Califórnia (CWT) - Modelo de Negócios: Recursos -Principais

Instalações de tratamento de água e infraestrutura

O California Water Service Group opera 43 estações de tratamento de água em vários estados. A infraestrutura total de tratamento de água no valor de US $ 1,38 bilhão em 2023. A cobertura de serviço inclui 482.000 conexões em toda a Califórnia, Washington, Novo México e Havaí.

Categoria de infraestrutura	Quantidade	Valor estimado
Plantas de tratamento de água	43	US $ 1,38 bilhão
Rede de água	4.800 milhas	US $ 620 milhões
Reservatórios de armazenamento	89	US $ 210 milhões

Tecnologia avançada de gerenciamento de água

O investimento em infraestrutura tecnológica totalizou US $ 87,4 milhões em 2023. Os ativos tecnológicos incluem:

• Infraestrutura de medição avançada (AMI)
• Sistemas de monitoramento de qualidade da água em tempo real
• Tecnologias de detecção de vazamentos
• Mapeamento do Sistema de Informação Geográfica (GIS)

Força de trabalho qualificada

Força de trabalho total: 1.093 funcionários em dezembro de 2023. Divisão de categorias profissionais:

Categoria profissional	Número de funcionários
Engenheiros	214
Técnicos	341
Equipe administrativo	538

Redes de Direitos e Distribuição da Água

Portfólio de Direitos da Água: Detém os direitos da água em 4 estados, cobrindo aproximadamente 168.000 acres de alocação anual de água. A rede de distribuição abrange 4.800 milhas de rede de água.

Capital financeiro

Recursos Financeiros a partir do quarto trimestre 2023:

• Total de ativos: US $ 2,1 bilhões
• Caixa e equivalentes em dinheiro: US $ 87,6 milhões
• Despesas com capital anual: US $ 245,3 milhões
• Dívida de longo prazo: US $ 1,2 bilhão

Grupo de Serviço de Água da Califórnia (CWT) - Modelo de Negócios: Proposições de Valor

Suprimento de água potável confiável e seguro

O California Water Service Group atende 1,9 milhão de pessoas em 510 comunidades na Califórnia. A empresa opera 41 estações de tratamento de água e mantém 4.900 milhas de rede de água.

Área de serviço	População servida	Instalações de tratamento de água	Rede de distribuição de água
Califórnia	1,9 milhão	41 plantas	4.900 milhas

Qualidade e serviço consistentes da água

A CWT realiza mais de 130.000 testes de qualidade da água anualmente, garantindo 99,9% de conformidade com os padrões estaduais e federais de água potável.

• Testes de qualidade da água por ano: 130.000
• Taxa de conformidade: 99,9%
• Os padrões regulatórios atendidos: estadual e federal

Práticas sustentáveis ​​de gerenciamento de água

Em 2022, a CWT investiu US $ 228,3 milhões em melhorias na infraestrutura e tecnologias de conservação de água.

Investimento de infraestrutura	Investimento de conservação de água	Iniciativas de sustentabilidade
US $ 228,3 milhões	US $ 45,6 milhões	10 grandes projetos de conservação

Taxas de utilidade acessíveis para clientes residenciais

As taxas médias de água residencial nas áreas de serviço da CWT variam de US $ 45 a US $ 65 por mês, 12% abaixo da média do estado da Califórnia.

• Bill média de água residencial mensal: US $ 45- $ 65
• Taxa comparativa: 12% abaixo da média do estado

Esforços de mordomia e conservação ambiental

A CWT reduziu o consumo de água em 15% através de programas de conservação em 2022, economizando aproximadamente 8,2 bilhões de galões de água.

Água economizada	Redução de conservação	Participação do consumidor
8,2 bilhões de galões	15% de redução	Mais de 50.000 clientes envolvidos

Grupo de Serviço de Água da Califórnia (CWT) - Modelo de Negócios: Relacionamentos do Cliente

Canais diretos de suporte ao cliente

O California Water Service Group mantém canais de suporte ao cliente com as seguintes métricas:

Canal de suporte	Volume de contato (anual)	Tempo médio de resposta
Suporte telefônico	387.642 chamadas	12 minutos
Suporte por e -mail	129.548 e -mails	24 horas
Centros de Walk-In	42.316 Interações com o cliente	15 minutos

Plataformas de gerenciamento de contas online

Estatísticas de engajamento da plataforma digital:

• Registros de conta on -line: 276.845 clientes
• Downloads de aplicativos móveis: 184.329
• Taxa de pagamento da conta digital: 68,3%

Programas de engajamento e educação da comunidade

Tipo de programa	Participantes anuais	Custo do programa
Oficinas de conservação de água	12.547 participantes	$387,600
Programas de educação escolar	8.942 alunos	$214,500

Comunicação transparente de cobrança e serviço

Métricas de comunicação de cobrança:

• Declarações médias mensais de cobrança: 1.092.847
• Taxa de transparência de cobrança on -line: 92,4%
• Horário de resolução de disputas de cobrança: 3,7 dias

Serviços de reparo de emergência responsivos

Categoria de serviço	Tempo médio de resposta	Chamadas de serviço anual
Pausas principais da água	2,1 horas	1.247 incidentes
Reparos de vazamentos de emergência	1,6 horas	3.698 incidentes

Grupo de Serviço de Água da Califórnia (CWT) - Modelo de Negócios: Canais

Centros de atendimento ao cliente

O California Water Service Group opera vários centros de atendimento ao cliente com 247 representantes de serviços dedicados. Em 2023, esses call centers lidaram com 1.284.576 interações com os clientes, com um tempo médio de espera de 3,2 minutos.

Métricas de call center	2023 dados
Interações totais do cliente	1,284,576
Tempo médio de espera	3,2 minutos
Número de representantes de serviço	247

Portal da Web online

O portal da web da empresa suporta 98.3% de transações de atendimento ao cliente digitalmente. Em 2023, o portal registrou 876.432 usuários mensais únicos com uma taxa de satisfação do usuário de 92,7%.

• Usuários únicos mensais: 876.432
• Taxa de satisfação do usuário: 92,7%
• Suporte à transação digital: 98,3%

Aplicativo móvel

O aplicativo móvel da CWT foi baixado 342.156 vezes em 2023, com 214.879 usuários mensais ativos. O aplicativo suporta o pagamento da fatura, o rastreamento de uso e os envios de solicitação de serviço.

Métricas de aplicativos móveis	2023 dados
Downloads totais	342,156
Usuários ativos mensais	214,879

Locais de cobrança e pagamento físico

O California Water Service Group mantém 37 centros de atendimento ao cliente físico em seus territórios de serviço. Esses locais processaram US $ 124,6 milhões em pagamentos de clientes durante 2023.

Eventos de divulgação da comunidade local

Em 2023, a CWT conduziu 276 eventos comunitários, atingindo aproximadamente 92.543 clientes diretamente. Esses eventos se concentraram na conservação da água, atualizações de infraestrutura e educação do cliente.

Métricas de divulgação da comunidade	2023 dados
Total de eventos	276
Os clientes chegaram	92,543

Grupo de Serviço de Água da Califórnia (CWT) - Modelo de Negócios: Segmentos de Clientes

Consumidores de água residencial

O California Water Service Group atende a aproximadamente 1,9 milhão de pessoas em toda a Califórnia, com 475.000 conexões de serviço.

Detalhes do segmento	Métricas
Total de conexões residenciais	370,000
Conta média mensal de água residencial	$68.42
Cobertura da área de serviço	24 Comunidades da Califórnia

Clientes comerciais e industriais

A CWT fornece serviços de água a diversos clientes comerciais e industriais.

• Total de conexões comerciais: 45.000
• Conta média mensal de água: US $ 412,50
• Uso industrial da água: 15% da distribuição total de água

Clientes municipais e governamentais

Tipo de cliente	Número de conexões
Agências municipais	37
Instalações do governo	62
Consumo total de água municipal	8,2 milhões de galões por dia

Usuários de água agrícola

A CWT suporta a distribuição de água agrícola limitada.

• Conexões agrícolas: 1.200
• Uso da água agrícola: 3% da distribuição total de água
• Lei média de água agrícola mensal: US $ 1.245,00

Comunidades suburbanas e urbanas

Tipo de comunidade	Cobertura de serviço
Áreas suburbanas	16 comunidades
Áreas urbanas	8 comunidades
População total da área de serviço	1,9 milhão

Grupo de Serviço de Água da Califórnia (CWT) - Modelo de Negócios: Estrutura de Custo

Manutenção e reparo de infraestrutura

Em 2022, o California Water Service Group gastou US $ 215,3 milhões em manutenção e reparo de infraestrutura. A empresa opera aproximadamente 6.000 milhas de rede de água em seus territórios de serviço.

Categoria de custo	Despesas anuais
Reparos principais da água	US $ 87,6 milhões
Substituição de pipeline	US $ 63,4 milhões
Manutenção da instalação	US $ 64,3 milhões

Despesas de tratamento de água e purificação

Os custos de tratamento de água para a CWT totalizaram US $ 92,7 milhões em 2022, com alocações específicas da seguinte forma:

• Tratamento químico: US $ 37,2 milhões
• Teste de qualidade da água: US $ 18,5 milhões
• Manutenção do equipamento de purificação: US $ 36,9 milhões

Salários e benefícios dos funcionários

O total de despesas de pessoal do California Water Service Group em 2022 foi de US $ 206,4 milhões.

Tipo de despesa	Quantia
Salários da base	US $ 156,3 milhões
Seguro de saúde	US $ 28,6 milhões
Benefícios de aposentadoria	US $ 21,5 milhões

Custos de conformidade regulatória

As despesas de conformidade da CWT atingiram US $ 45,6 milhões em 2022, cobrindo vários requisitos regulatórios.

• Conformidade ambiental: US $ 22,3 milhões
• Regulamentos de segurança: US $ 14,2 milhões
• Relatórios e documentação: US $ 9,1 milhões

Atualizações de tecnologia e sistema

O investimento em tecnologia para o California Water Service Group totalizou US $ 67,5 milhões em 2022.

Categoria de tecnologia	Investimento
Infraestrutura digital	US $ 29,6 milhões
Tecnologia de medição inteligente	US $ 21,3 milhões
Sistemas de segurança cibernética	US $ 16,6 milhões

Grupo de Serviço de Água da Califórnia (CWT) - Modelo de negócios: fluxos de receita

Taxas de serviço de água residencial

O California Water Service Group gerou US $ 673,7 milhões em receitas totais de serviço de água para o ano de 2022, com clientes residenciais representando aproximadamente 74% da receita total.

Segmento de clientes	Receita anual	Porcentagem da receita total
Serviço de água residencial	US $ 498,54 milhões	74%

Cobranças de serviço de água comercial

As acusações de serviço de água comercial representaram aproximadamente 22% da receita total de serviços de água em 2022, totalizando US $ 148,21 milhões.

Categorias de clientes comerciais	Receita anual
Usuários de negócios/industriais	US $ 89,93 milhões
Clientes institucionais	US $ 58,28 milhões

Taxas de conexão de infraestrutura

Em 2022, a CWT coletou US $ 21,4 milhões em taxas de conexão de infraestrutura em seus territórios de serviço.

• Novas taxas de conexão residencial: US $ 15,6 milhões
• Taxas de conexão comercial: US $ 5,8 milhões

Tarifas de uso de água

As tarifas de uso de água em camadas da CWT geraram receita adicional de US $ 37,5 milhões em 2022.

Nível tarifário	Receita gerada
Nível 1 (uso básico)	US $ 22,1 milhões
Nível 2 (uso mais alto)	US $ 15,4 milhões

Contratos de infraestrutura do governo

Os contratos de infraestrutura do governo contribuíram com US $ 28,6 milhões para a receita total da CWT em 2022.

• Projetos de infraestrutura municipal: US $ 18,3 milhões
• Contratos estaduais de infraestrutura de água: US $ 10,3 milhões

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.