The Sustainability Report aligns with the Sustainability Accounting Standards Board (SASB) Water Utilities & Services Industry Standards, Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), and Global Reporting Initiative (GRI) Standards. Key data and metrics are further detailed in the supplemental Sustainability Data Download.

"While much has changed over our 100 years of service, our dedication to delivering safe, clean, reliable water and being a responsible corporate citizen has remained steadfast," said Martin A. Kropelnicki, Group Chairman & CEO. "By focusing our efforts on key areas, we can fulfill the promise we have made to our customers, communities, employees, and stockholders to provide quality, service, and value-day in and day out. It is this focus that will sustain us into our next century of service."

Highlights in Group's key focus areas in 2025 alone include:

Protecting the planet

• Invested $7.3 million in emissions-reducing energy solutions.
• Delivered an estimated 2.6 billion gallons of recycled water for landscaping, irrigation, and industrial uses.
• Invested $3.4 million in customer conservation rebates and programs in California, which are expected to save more than 100 million gallons of water annually.
• Reduced total Scope 1 and market-based Scope 2 GHG emissions by 26.7% from a 2021 base year.
• Procured 12.8% of energy from renewable sources, including onsite solar and a utility green rate program.

Serving customers

• Achieved 100% compliance with primary and secondary federal and state water quality standards, as confirmed by 630,000+ water quality tests conducted.
• Offered $22 million in discounts to 100,000+ customers through its California subsidiary's low-income Customer Assistance Program.
• Submitted $20.4 million in grant funding applications for water quality or supply projects to reduce rate impacts to customers, with $10.1 million already approved for PFAS treatment in New Mexico.
• Received an overall satisfaction score of 9.1 out of 10, based on customer survey results.
• Donated nearly $1.9 million to local community organizations.

Engaging the workforce

• Earned the Great Place to Work® certification from the Great Place to Work Institute® for the 10th consecutive year.
• Reduced OSHA-recordable injuries by 35% compared to 2024.
• Invested more than $1 million in employee training and continuing education.

Governing with integrity

• Named one of the “World's Most Trustworthy Companies” and one of “America's Most Responsible Companies” by Newsweek.
• Held 50+ discussions on sustainability-related matters during board or committee meetings.
• Helped pass CA SB 693, which helps streamline emergency response efforts.
• Spent 26% of procurement in California with diverse suppliers.

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TIME honored the top 500 companies out of nearly 10,000 public and private companies worldwide with revenue of at least $250 million, sufficient data coverage, and positive overall net societal impact. Group joins the likes of Moderna, Gilead, Pfizer, Sunrun, and Tesla in the top 35. Group is one of eight water utilities listed in the Utilities and Environmental Services category, which is one of the ranking's 16 industries.

The ranking, grounded in a rigorous, science-based methodology, uses The Upright Project's Net Impact Model, which quantifies the benefits and costs that a company's products and services create across society, knowledge, health, and environment factors. The model considered impact- and sustainability-related data from more than 300 million scientific articles and major public databases, including World Bank, World Health Organization, Organisation for Economic Co-operation and Development, and Intergovernmental Panel on Climate Change.

“We are committed to doing the right thing and contributing to the greater good, and we are honored that TIME has included us in its first-ever list of the 500 most impactful companies worldwide,” said Marty Kropelnicki, Group Chairman & CEO.

The full listing is published on Time's website.

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Crews will begin construction in May to install 2,300 feet of new 12-, 8-, and 6-inch water main in central Oroville on:

• Norton Street, between Bridge and Montgomery streets
• Montgomery Street, between Norton Street and Linden Avenue
• Center Street, between Norton Street and Linden Avenue

"Upgrades like this are what help strengthen our water system and have kept us serving our customers' everyday and emergency needs for 100 years," said Loni Lind, Cal Water's Oroville Local Manager. "Our proactive efforts to modernize our infrastructure help us continue to evolve and improve the way in which we serve, so that we can continue delivering safe, clean, and reliable water-both now and for future generations."

Crews are working on the project, which is expected to be completed by September, from 7 a.m. to 5 p.m., Monday through Friday. Customers will be notified of any temporary traffic impacts or service interruptions that may occur as a result of this work at least 48 hours in advance.

Temporary asphalt will be applied until permanent paving is completed, which can be up to 30 days after project completion.

The main replacement is part of Cal Water's broader commitment to proactive, ongoing maintenance and upgrades that support safe, high-quality drinking water.

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On Monday, May 4, crews will begin construction to install 3,100 feet of new, 8-inch water main on:

• Caballeros Road (from the intersection of Crest Road to the end of cul-de-sac)
• Maverick Lane (from the intersection of Caballeros Road to the end of the cul-de-sac).

"Upgrades like these are what help strengthen our water system and have kept us serving our customers' everyday and emergency needs for 100 years," said Ralph Felix, Cal Water's Rancho Dominguez District Manager. The district serves Carson, Compton, Dominguez, Harbor City, Hawthorne, Hermosa Beach, Lomita, Palos Verdes Peninsula, Rancho Dominguez, Redondo Beach, Rolling Hills, Torrance, and West Basin. "Our proactive efforts to modernize our infrastructure help us continue to evolve and improve the way in which we serve, so that we can continue delivering safe, clean, and reliable water-both now and for future generations."

Crews are working on the project, which is expected to be completed in August, from 8 a.m. to 3 p.m., Monday through Friday. Customers will be notified of any temporary traffic impacts or service interruptions that may occur as a result of this work at least 48 hours in advance.

Temporary asphalt will be applied until permanent paving is completed, which can be up to 30 days after project completion.

The main replacement is part of Cal Water's broader commitment to proactive, ongoing maintenance and upgrades that support safe, high-quality drinking water.

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"These important water system upgrades will help us continue to provide a reliable supply of high-quality water both for this community's everyday needs and for fire protection in emergencies," said Jim Crawford, Cal Water's East Los Angeles District Manager. "Our infrastructure improvements are all about providing quality, service, and value to the communities we serve."

Crews are currently working to replace 2,500 feet of 6-inch water main on Via San Delarro Street, from Dewar Avenue to Via Campo Street. Work on the project is taking place Monday through Friday from 8 a.m. to 4 p.m.

Crews recently completed construction on the installation of 1,476 feet of new 8-inch water main on Sadler Avenue, north of Beverly and Atlantic boulevards.

The main replacements are part of Cal Water's broader commitment to proactive, ongoing maintenance and upgrades that support safe, high-quality drinking water.

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"Being in this community for 100 years is something we want to celebrate with our community. To be here 100 years, we've had to endure many different things-the Great Depression, World War II, earthquakes, fires, and more-and still be able to provide safe, clean, reliable water to our customers," said Stuart Skoglund, Cal Water's Visalia Interim District Manager. "We take providing water our customers can count on seriously, and that's one of the reasons we invest in our infrastructure-so that when our customers need water, whether it's to fight fires or to take showers, it's available when they turn on their faucets.

Customers are invited to attend the event for free (up to 800 tickets are being distributed free of charge on a first-come, first-served basis starting at 10 a.m. at the box office on May 1), to take home a free drought-tolerant, pollinator-friendly plant as part of the company's Adopt-a-Plant series, and meet their local Cal Water team. Add the rally towels, washing machine, etc.

Cal Water's Visalia District is made up of more than 50 employees with nearly 700 years of experience and more than 100 certifications, who work to maintain nearly 600 miles of main, 59 wells, 2.8 million gallons of storage, and 4,200+ hydrants to provide water to about 145,000 people through approximately 53,000 service connections in Visalia.

Already this year, the Visalia City Council presented Cal Water with a centennial proclamation in March, and the Tulare County Board of Supervisors will do the same later this year.

"For a full century, Cal Water has provided safe, dependable water every single day. We thank Cal Water for its dedication and support to our community and congratulate them on this incredible milestone," said Tulare County Supervisor Amy Shuklian.

To RSVP to Adopt-A-Plant, visit the Adopt-A-Plant home page.

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"Water is a precious resource, and our crews are working around the clock to maintain and upgrade our water systems so we can continuously improve our ability to deliver safe, clean, and reliable water to our Salinas communities," said Brenda Granillo, Cal Water's Salinas District Manager. "All of the work that we do is an investment back to the community, because it's centered around providing quality, service, and value to our customers for their everyday and emergency needs."

One of the two new main replacement projects is taking place in downtown Salinas. There, crews are installing 2,200 feet of 8-inch main, along with five hydrants and 16 new water service connections on Lincoln Avenue, from Avenue B to West Alisal Street, just east of Salinas High School. Work on the project, which is scheduled to be completed in May, is taking place Monday through Friday from 8 a.m. to 4 p.m. Some overnight and weekend work is expected to reduce traffic in the area.

Meanwhile, in east Salinas, crews have begun work on a second main replacement project to install 1,752 feet of new 12-inch water main and 73 feet of 6-inch main on Alisal Street, from Pearl Street to North Sanborn. Crews are working on this project, which is scheduled to be completed in July, Monday through Friday from 8 a.m. to 4 p.m. This is the second phase of a project that started in 2025 to install 2,026 feet of new water main, nine hydrants, and 46 new water service connections. The first phase replaced main on Alisal from Kern to Pearl streets.

The projects are part of Cal Water's Main Replacement Program. Implemented in 2014, the program's focus is on proactively replacing aging infrastructure, while maximizing the existing infrastructure's life to help prevent small, manageable issues from getting bigger and more expensive to fix.

As part of this program, crews recently completed installation of 2,052 feet of new 8-inch water main, five new hydrants, and 55 new services on Roosevelt Street, from Kern Street to North Pearl Street, near La Paz Park. In the same vicinity, crews also wrapped up installation of 2,428 feet of 8-inch water main, eight new hydrants, and 48 new services on Roosevelt Street, from North Madeira Avenue to Pearl Street, and into the intersection of East Market Street and North Pearl Street.

The post Upgrades Completed and Began in Salinas appeared first on Cal Water.

The CPUC adopted the proposed decision (PD) issued March 13, 2026 with revisions issued on April 29, 2026 (revised PD). The final decision increases Cal Water's company-wide revenues by $90.5 million in 2026 (a rate increase of 10.9%), $43.2 million in 2027 (a rate increase of 4.7%), and $48.9 million in 2028 (a rate increase of 5.1%). The differences between approved revenue and rate increases in the PD and the revised PD are primarily attributable to a reduction in authorized capital, some of which is now subject to the CPUC's advice letter process discussed below Cal Water is currently analyzing how the final decision will impact rates in each of its service areas.

The decision also authorizes Cal Water to invest $1.45 billion in its districts from 2024 through 2027 to upgrade infrastructure, such as water quality projects to protect customers from existing and newly regulated contaminants; pipes and other infrastructure to keep pumping and delivering water reliably; equipment to keep water flowing during power outages and shutoffs; cyber and physical security improvements to protect employees, customers, and facilities; and water supply initiatives to secure long-term sustainability of water sources. It authorizes up to $229 million in additional projects that will be submitted for recovery through the CPUC's advice letter process.

Although the decision does not allow full decoupling, it does renew the Monterey-style Water Revenue Adjustment Mechanism and water production incremental cost balancing accounts. It also establishes a new sales reconciliation mechanism that allows Cal Water to adjust sales forecasts annually, and it approves a rate design to better enable the company to recover fixed costs regardless of water sales. The mechanisms, balancing accounts, and new rate design provide financial stability while supporting customer affordability, particularly for low-income, low-water-using customers.

"We recognize the criticality of keeping water service affordable while making the infrastructure investments needed to provide safe, clean, reliable water to our communities," said Martin A. Kropelnicki, Group Chairman and CEO. "We appreciate the CPUC for issuing the final decision in our triennial General Rate Case and Infrastructure Improvement Plan and enabling us to continue providing quality, service, and value to our customers and communities for their everyday and emergency needs."

This marks the end of a required, extensive, nearly two-year review of the company's water system improvement plans, costs, and rates. Cal Water expects to implement the new rates effective July 1, 2026.

This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections, and our management's beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks or variations of these words or similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements in this news release include, but are not limited to, statements describing Group's beliefs, expectations, and plans related to the CPUC's final decision on the 2024 GRC and related impacts on Group's business. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks. Consequently, actual results or outcomes may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results or outcomes to be different than those expected or anticipated include but are not limited to the risks described under the section entitled "Risk Factors" and elsewhere in our most recent Annual Report on Form 10-K and our other SEC filings. In light of these risks, uncertainties and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

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A new piece of equipment is allowing Monterey County firefighters to train and test their life-saving fire equipment, while also now saving approximately 7.4 million gallons of water a year-enough to fill more than 11 Olympic-sized swimming pools. The Monterey County Regional Fire District (MCRFD) and Cal Water partnered on the purchase of the new Pump Pod® DRAFTS (Direct Recirculating Apparatus Firefighting Training Sustainability) Unit, which is helping the fire department reduce its water usage.

Through Cal Water's conservation program, Cal Water and the MCRFD partnered to bring the DRAFTS Unit to Salinas as a way to continue regular training and fire equipment testing, while also saving water. Though millions of gallons of water are needed for training and testing purposes, the unit allows water used for full-flow training to be recycled and reused instead of going down the drain.

"I want to thank Cal Water for its ongoing partnership and commitment to our community," said Justin Linquist, MCRFD Division Chief. "This new equipment strengthens our hardworking fire department by giving them the tools they need to respond more efficiently and effectively. It enhances their ability to provide the highest level of care and protection to our residents, while also advancing our shared sustainability goals. The DRAFTS Unit is another strong example of our continued collaboration."

Cal Water estimates that, with this unit, MCRFD will save more than 7.4 million gallons of water every year, while fully training firefighters and testing its equipment. The department is one of seven fire departments from Los Angeles County Fire Department in the south to Stockton in the north that Cal Water has partnered with on DRAFTS units to save more than 55 million gallons each year.

“Cal Water is dedicated to assisting firefighters, not just with a reliable supply of water, but also with their training,” said Christy Ariey, Director of Water-Use Efficiency for Cal Water. “As conservation is becoming a way of life in California, Cal Water is investing in making sure firefighter training can happen in ways that significantly reduce water use.”

By teaming up with Cal Water's Conservation Department, the utility was able to provide the MCRFD $124,965 as a rebate to purchase the DRAFTS Unit.

Linquist said saving water while training firefighters is a win-win. "This type of impact will make a real difference in water conservation efforts for both the county and Cal Water. That's important as we continue to face a changing climate and an uncertain water future."

Brenda Granillo, Cal Water's Salinas District Manager, thanked MCRFD for its continued partnership to keep the community safe. "We stay in close touch with Monterey County Regional Fire District to make sure they always have the water and pressure they need to protect the community," she said. "We're grateful for their leadership in showing how conservation can be part of everyday life."

Cal Water offers customers incentives to save water every day through conservation rebates and programs. To learn more, visit Cal Water's Conservation page.

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Top Workplaces USA honors organizations with at least 150 employees that have built exceptional, people-first cultures, according to Energage, the human resources research and technology company that partnered with USA Today for this award. Winners are recognized for their commitment to fostering a workplace environment that values listening to and engaging with employees. The results are calculated based on employee responses in confidential surveys to statements about Workplace Experience Themes, which are proven indicators of high performance. For this year's award, Energage collected and analyzed data from more than 23 million surveys at over 70,000 organizations.

"This honor reflects the legacy and culture we have built over the last 100 years, and we appreciate USA Today for recognizing us in this way," said Marty Kropelnicki, Group Chairman and CEO. "I often say that we take care of our employees so they can focus on taking care of the more than 2.2 million people we serve every day."

"Earning a USA TODAY Top Workplaces award is a testament to an organization's credibility and commitment to a people-first culture," said Eric Rubino, Energage CEO. "This award, driven by real employee feedback, is more than just a recognition-it's proof that your employees believe in the organization and its leadership. Job seekers and customers look for this trusted badge of credibility and excellence. It signals a company that values its people, and that kind of culture resonates in today's competitive market."

Beyond the overall Top Workplace award, USA Today also named Group a winner in Culture Excellence and Industry Awards categories for: compensation and benefits, purpose and values, employee appreciation, employee well-being, professional development, and energy and utilities.

The full list of U.S. Top Workplaces is available at USA Today online.

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