Mission Statement, Vision, & Core Values (2024) of California Water Service Group (CWT)

An Overview of California Water Service Group (CWT)

General Summary of California Water Service Group (CWT)

California Water Service Group (CWT), founded in 1926, is one of the largest publicly traded water utilities in the United States. The company provides water and wastewater services to approximately 500,000 customer connections across California, as well as in New Mexico and Hawaii. CWT operates through several subsidiaries, including California Water Service Company and New Mexico Water Service Company. The company focuses on delivering reliable water services while ensuring environmental sustainability and community engagement.

As of 2024, CWT reported total sales reaching approximately $814.6 million for the nine months ending September 30, 2024, representing a significant increase from $580.1 million during the same period in 2023, driven by new customer acquisitions and rate adjustments.

Company's Financial Performance in the Latest Financial Reports

In the latest financial report for the three months ended September 30, 2024, California Water Service Group achieved operating revenue of $299.6 million, marking a 17.5% increase compared to $254.9 million in the same quarter of 2023. This revenue growth is attributed to a combination of rate increases, new customer additions, and higher consumption levels.

For the nine months ending September 30, 2024, the company reported a net income of $171.1 million, or $2.93 per diluted share, compared to $21.8 million, or $0.38 per diluted share, for the same period in 2023. This remarkable increase in net income reflects the company’s strategic adjustments, including the implementation of the 2021 General Rate Case (GRC) which retroactively impacted revenue starting January 1, 2023.

The following table summarizes key financial data:

Introduction to California Water Service Group as an Industry Leader

California Water Service Group stands out as a leader in the water utility industry, recognized for its commitment to sustainable practices and community service. The company has been proactive in adopting advanced technologies for water management and customer service, enhancing operational efficiency and reducing environmental impact.

In addition to its extensive service area, CWT is noted for its robust financial health and strategic growth initiatives, making it a reliable choice for investors and stakeholders. The company's forward-thinking approach and dedication to quality service position it favorably within the competitive landscape of water utilities.

With ongoing investments in infrastructure and customer engagement, California Water Service Group continues to set benchmarks for excellence in the water service industry.

Mission Statement of California Water Service Group (CWT)

Mission Statement of California Water Service Group (CWT)

The California Water Service Group (CWT) is committed to providing safe, reliable, and high-quality water service to its customers. The mission statement is integral in guiding the company's strategic direction, shaping its operational practices, and ensuring a customer-centric approach. The mission emphasizes the importance of sustainability, community involvement, and innovative solutions in addressing the pressing challenges of water supply and management.

Core Component 1: Safety

CWT prioritizes the safety of both its water supply and its customers. The company adheres to strict health and safety regulations as mandated by the Environmental Protection Agency (EPA) and state regulatory bodies. CWT's water quality testing program includes over 200,000 tests annually to ensure compliance with health standards. In 2023, the company reported a 99.5% compliance rate with drinking water standards, reflecting its commitment to delivering safe water to its customers.

Core Component 2: Reliability

Reliability in water service is crucial for CWT. The company has invested significantly in its infrastructure to minimize service interruptions. In 2024, CWT allocated approximately $365 million for utility capital expenditures, focusing on upgrading aging pipelines and enhancing water treatment facilities. The average response time to service interruptions is currently under 30 minutes, demonstrating CWT's dedication to efficient service.

Core Component 3: Customer Service

CWT places a strong emphasis on customer service, aiming to foster positive relationships with its customers. In 2024, the company achieved a customer satisfaction score of 85%, as measured through annual surveys. CWT has implemented various customer engagement initiatives, including a 24/7 customer service hotline and an online portal for bill payments and service requests. The company is also committed to transparency, providing customers with regular updates on service changes and water quality reports.

CWT's mission statement and its core components are not only critical for guiding the company's strategic objectives but also for ensuring that it meets the evolving needs of its customers while maintaining high standards of safety, reliability, and service quality.

Vision Statement of California Water Service Group (CWT)

Vision of California Water Service Group (CWT)

The vision statement of California Water Service Group (CWT) emphasizes sustainable water management, community engagement, and innovative solutions to enhance service delivery. The components of the vision statement are as follows:

Sustainable Water Management

CWT aims to be a leader in sustainable water management, ensuring a reliable supply of water while protecting the environment. This commitment is reflected in the company’s operational strategies and investments in infrastructure. For instance, during the nine months ended September 30, 2024, CWT reported utility plant expenditures totaling $332.2 million, with an estimated $365.0 million projected for the entire year.

Moreover, CWT's average annual groundwater extraction from managed groundwater basins was approximately 29.7 billion gallons, which accounts for 57.6% of their total average annual water supply.

Community Engagement

CWT prioritizes community engagement and strives to build strong relationships with the communities it serves. This is evident in their participation in programs such as the California Extended Water and Wastewater Arrearages Payment Program, where CWT applied $57.5 million toward eligible past due customer balances.

Innovative Solutions

The company is committed to leveraging technology and innovative solutions to improve service delivery. For example, CWT recorded $118.4 million of operating revenue from the Monterey-Style Water Revenue Adjustment Mechanism (MWRAM) during the first nine months of 2024. This mechanism allows for adjustments based on actual metered sales, demonstrating CWT's adaptability in revenue management.

Commitment to Quality and Reliability

CWT’s vision includes a strong commitment to providing high-quality and reliable water service. The net income attributable to California Water Service Group for the three months ended September 30, 2024, was $60.7 million, representing a significant increase from $34.4 million in the same period of 2023.

This growth is attributed to increased operating revenue driven by rate changes and new customers, highlighting CWT's effective strategies in enhancing service reliability and customer base expansion.

Conclusion

California Water Service Group (CWT) is clearly focused on a vision that champions sustainable practices, community involvement, and innovation in water service management. These elements are crucial for meeting the evolving demands of their service areas while maintaining a strong financial performance.

Core Values of California Water Service Group (CWT)

Integrity

Integrity is a core value that emphasizes honesty, accountability, and ethical behavior in all business practices. For California Water Service Group (CWT), integrity is fundamental to building trust with customers, regulators, and stakeholders.

CWT demonstrates its commitment to integrity through transparent reporting and compliance with regulatory standards. In 2024, the company reported net income attributable to California Water Service Group of $171.1 million for the nine months ending September 30, compared to $21.8 million for the same period in 2023. This significant increase is attributed to the company's adherence to regulatory requirements and sound financial practices.

Customer Commitment

CWT prioritizes customer commitment by providing reliable water services and ensuring customer satisfaction. The company has established programs to support customers during financial hardships, particularly through the California Extended Water and Wastewater Arrearages Payment Program, which provided $57.5 million to eligible customer balances in 2024.

In the nine months ended September 30, 2024, CWT's operating revenue increased by 40.4% to $814.6 million, reflecting its focus on service quality and customer retention.

Environmental Stewardship

Environmental stewardship is a guiding principle for CWT, which emphasizes sustainable practices in water resource management. In 2024, the company reported that approximately 57.6% of its water supply came from managed groundwater basins, demonstrating its commitment to sustainable water sourcing.

CWT's capital expenditures for utility infrastructure improvements are projected at $365 million for 2024, reflecting investments in projects aimed at enhancing water quality and reliability.

Innovation

Innovation is essential for CWT to adapt to changing regulatory environments and customer needs. The company has implemented advanced technologies to improve operational efficiency and customer service. For example, the introduction of automated systems for monitoring water quality and supply management has enhanced service delivery.

As part of its innovation strategy, CWT has allocated $1.6 billion for infrastructure improvements from 2025 to 2027, focusing on replacing aging pipelines and upgrading water quality systems.

Diversity and Inclusion

Diversity and inclusion are core values that promote a workplace culture reflective of the communities CWT serves. The company actively engages in initiatives aimed at fostering an inclusive environment. In 2024, CWT's workforce diversity initiatives contributed to improved employee satisfaction and retention.

As of September 30, 2024, CWT reported a book value per common share of $27.38, indicating a solid financial foundation that supports its diversity and inclusion efforts.

Article updated on 8 Nov 2024

Resources:

• California Water Service Group (CWT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of California Water Service Group (CWT)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View California Water Service Group (CWT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.