Posted: January 15, 2025
La Comisión de Servicios Públicos de California (CPUC) accedió a la solicitud de Cal Water y otras tres empresas de servicios públicos de posponer sus solicitudes del costo de capital del 1 de mayo de 2025 al 1 de mayo de 2026. The decision effectively maintains the current 10.27% return on equity (ROE) and 4.23% cost of debt for Cal Water, with a capital structure of 53.40% common equity and 46.60% long-term debt, and an authorized rate of return of 7.46%.
The CPUC also reauthorized the Water Cost of Capital Mechanism (WCCM). Among other provisions, the WCCM automatically adjusts the rate of return when the Moody's Utilities Bond Index fluctuates between Cost of Capital applications. The ROE will remain 10.27% through Dec. 31, 2026, unless the WCCM is triggered when next measured on Sept. 30, 2025. If a change in the ROE is required, it would become effective on Jan. 1, 2026.
"We appreciate the CPUC's agreement to grant us an additional one-year extension on our Cost of Capital proceeding," said Martin A. Kropelnicki, Chairman and CEO. "There are several ongoing water utility rate cases currently before the CPUC, including our 2024 General Rate Case and Infrastructure Improvement Plan, that require the resources of staff, the utilities, and other parties to the proceeding. The extension will help manage this workload and also help reduce the frequency of rate changes for our customers."
Este comunicado de prensa contiene declaraciones prospectivas en concordancia con lo establecido por la Ley de Reforma de Litigios sobre Valores Privados de 1995 (PSLRA). Las declaraciones prospectivas tienen la intención de calificar de conformidad con las disposiciones de las leyes federales de valores para el tratamiento de "puerto seguro" establecido por la PSLRA. Las declaraciones prospectivas en este comunicado de prensa se basan en información actualmente disponible, expectativas, estimaciones, presunciones y proyecciones, y en las creencias, suposiciones, juicios y expectativas de nuestra gerencia sobre nosotros, la industria de servicios públicos de agua y las condiciones económicas generales. Estas declaraciones no son declaraciones de hechos históricos. 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, commits, maintains 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 Cal Water's authorized return on equity, cost of debt, rate of return and capital structure. Las declaraciones prospectivas no son garantías de desempeño futuro. They are based on numerous assumptions that we believe are reasonable but are subject to uncertainty and risks. Los resultados reales pueden variar materialmente del contenido de las declaraciones prospectivas. Factors that may cause actual results to be different than those 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 outcome and timeliness of regulatory commissions' actions concerning rate relief and other actions; changes in water quality standards; changes in environmental compliance and water quality requirements; electric power interruptions; the impact of opposition to rate increases; our ability to recover costs; availability of water supplies; issues with the implementation, maintenance or security of our information technology systems; civil disturbances or terrorist threats or acts; the adequacy of our efforts to mitigate physical and cyber security risks and threats; the ability of our enterprise risk management processes to identify or address risks adequately; changes in customer water use patterns and the effects of conservation; the impact of weather, climate change, natural disasters, and actual or threatened public health emergencies; the impact of market conditions and volatility on unrealized gains or losses on our operating results; risks associated with expanding our business and operations geographically; and other risks and unforeseen events described in our Securities and Exchange Commission (SEC) filings. A la luz de estos riesgos, incertidumbres y suposiciones, se advierte a los inversores que no depositen una confianza indebida en las declaraciones prospectivas, que solo se refieren a la fecha de este comunicado de prensa. When considering forward-looking statements, you should keep in mind the cautionary statements included in this paragraph, as well as in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed from time-to-time with the SEC. 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.
