Cal Water news release

City of Commerce Awards Renewal of Water System Lease

Agreement Extends Operations and Maintenance Service Through 2033

The City of Commerce has renewed a lease agreement for Cal Water to operate the City's water system for the next 15 years. The City of Commerce water system, which serves 1,200 customer connections, will continue to be operated by Cal Water's East Los Angeles District through 2033.

Cal Water, which has run the City of Commerce water system since 1985, is responsible for all operations, maintenance, water quality assurance, and customer service programs to provide a reliable supply of water that meets federal and state standards to customers served by the City system. The City will remain responsible for financing infrastructure improvements and setting its customers' water rates.

"We take our responsibility to deliver safe, high-quality water to City of Commerce customers seriously, so residents have it anytime they turn on the tap and firefighters have enough resources in emergencies," said Martin A. Kropelnicki, Cal Water President and CEO. "I am pleased that the City of Commerce values the work we have done and will continue to do to deliver quality, service, and value to its customers, and I look forward to continuing our partnership to serve the community for the next 15 years."

The City of Commerce water system includes three active wells, 12 booster pumps, five storage tanks, and one connection with the Metropolitan Water District of Southern California (MWD). Water provided to customers is a combination of local groundwater and surface water purchased from MWD, obtained from the Colorado River and the State Water Project in northern California.

Este comunicado de prensa incluye declaraciones prospectivas en concordancia con lo establecido por la Ley de Reforma de Litigios sobre Valores Privados de 1995 ("La Ley"). Tales declaraciones intentan tener la protección de lo dispuesto por las leyes de valores federales para los principios de "puerto seguro" establecidos por esta Ley. Dichas declaraciones se basan en información actualmente disponible, expectativas, estimaciones, presunciones y proyecciones y criterios de manejo sobre la Compañía, la industria de servicios públicos del agua y las condiciones económicas generales. Tales palabras como podría, espera, pretende, planea, cree, estima, asume, anticipa, proyecta, predice, pronostica o variaciones de dichas palabras o expresiones similares tienen la intención de identificar a las declaraciones prospectivas. Las declaraciones prospectivas no son garantías de acciones futuras. Las mismas están sujetas a los cambios e incertidumbre de las circunstancias. Los resultados reales pueden variar materialmente del contenido de las declaraciones prospectivas. Factors that may cause a result different than expected or anticipated include, but are not limited to: governmental and regulatory commissions' decisions; consequences of eminent domain actions relating to our water systems; changes in regulatory commissions' policies and procedures; the timeliness of regulatory commissions' actions concerning rate relief; inability to renew leases to operate city water systems on beneficial terms; changes in California State Water Resources Control Board water quality standards; changes in environmental compliance and water quality requirements; electric power interruptions; changes in customer water use patterns and the effects of conservation; the impact of weather and climate on water availability, water sales and operating results; the unknown impact of contagious diseases on the Company's operations; civil disturbances or terrorist threats or acts, or apprehension about the possible future occurrences of acts of this type; labor relations matters as we negotiate with the unions; restrictive covenants in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt or pay dividends; and, other risks and unforeseen events. Al considerar las declaraciones prospectivas, usted debe tener en cuenta las declaraciones preventivas que se incluyen en este párrafo, al igual que el informe anual 10-K, el informe trimestral 10-Q y otros informes presentados ocasionalmente ante la Comisión de Valores y Bolsa (SEC, siglas en inglés). La Compañía no asume ninguna obligación de proporcionar actualizaciones de las declaraciones prospectivas por medios públicos.