Here are 1-2 brief analogies for California Water Service (CWT):

• It's like your local power or gas company, but exclusively focused on delivering clean water and managing wastewater.
• Think of it as the Southern Company or Consolidated Edison of water utilities.

• Potable Water Supply: Provides safe, reliable drinking water to residential, commercial, industrial, and public authority customers through an extensive network.
• Wastewater Treatment and Collection: Offers collection and treatment of wastewater services to ensure public health and environmental protection in specific service areas.

California Water Service (CWT) primarily sells water directly to end-users within its service areas, which include individuals, businesses, and public entities. It does not primarily sell to other water companies for resale.

Its major customer categories include:

• Residential: This category comprises individual households that use water for domestic purposes such as drinking, cooking, cleaning, and landscaping.
• Commercial: This category includes businesses such as offices, retail stores, restaurants, hotels, and other service-oriented establishments that use water for their operations.
• Industrial: This category serves manufacturing plants, processing facilities, and other large industrial operations that require significant water volumes for production, cooling, or other industrial processes.

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Martin A. Kropelnicki Chairman, President & CEO

Mr. Kropelnicki was named Chairman, President & CEO in May 2023, after serving as President & CEO since September 2013. Prior to joining California Water Service Group in 2006 as Vice President, Chief Financial Officer (CFO), and Treasurer, he held executive positions at PowerLight Corporation, Hall Kinion & Associates, Deloitte & Touche Consulting Group, and Pacific Gas & Electric Company. He also served as CFO/Treasurer at Washington Water Service Co., New Mexico Water Service Co., and Hawaii Water Service Company. Mr. Kropelnicki has over 33 years of experience in finance and operations, including more than 15 years as CFO at publicly listed companies.

James P. Lynch Senior Vice President, Chief Financial Officer & Treasurer

Mr. Lynch was appointed Senior Vice President, Chief Financial Officer (CFO), and Treasurer in January 2024. He brings over 22 years of rate-regulated utility experience, including a 12-year tenure as CFO and Treasurer and a one-year term as Chief Accounting Officer of SJW Group. Before his time at SJW Group, he worked as a lead audit partner with KPMG, overseeing a portfolio of global and domestic publicly traded and privately held companies, including California Water Service Group. His expertise spans finance, investor relations, regulated utility accounting, and mergers and acquisitions.

Paul G. Townsley Vice President, Corporate Development & Chief Regulatory Officer

Mr. Townsley serves as Vice President, Corporate Development and Chief Regulatory Officer. He previously held roles as VP:Engineering, VP:Rates & Regulatory Matters, and VP:Regulatory Matters & Relations at California Water Service Group. His career also includes positions as VP:Regulatory Matters at New Mexico Water Service Co., President at Arizona American Water, and VP:Regulatory Matters at Hawaii Water Service Company.

Michael B. Luu Vice President, Information Technology, Chief Risk Officer & Chief Information Officer

Mr. Luu holds the titles of Vice President, Information Technology, Chief Risk Officer, and Chief Information Officer. He has 18 years of experience in various business functions, with 11 years in management roles covering strategic planning, business process improvement, IT project management, supply chain management, and field operations. Under his leadership, Cal Water developed a robust enterprise risk management (ERM) model, its first cybersecurity practice, and an award-winning customer experience program.

Greg A. Milleman Vice President, Rates and Regulatory Affairs

Mr. Milleman is the Vice President of Rates and Regulatory Affairs. In this role, he is responsible for managing the company's economic regulatory activities with the public utilities commissions in California, Hawaii, New Mexico, and Washington. Before joining California Water Service Group, he spent 21 years at Valencia Water Company, where he concluded his tenure as Senior Vice President of Administration.

The escalating impact of climate change, particularly prolonged droughts and increased water scarcity in California, poses a clear emerging threat to California Water Service (CWT).

California Water Service Group (CWT) primarily provides drinking water and wastewater services. The addressable markets for their main products or services in their operational regions are as follows:

• California: Null
• Hawaii: The market size for the Water Supply & Irrigation Systems industry in Hawaii is $483.9 million in 2025. This market includes the operation of water-treatment plants, water-pumping stations, aqueducts, and water-distribution mains.
• New Mexico: Null
• Texas: Null
• Washington: Null

Here are 3-5 expected drivers of future revenue growth for California Water Service (CWT) over the next 2-3 years:

1. General Rate Case (GRC) Approvals and Rate Increases: California Water Service's revenue growth is significantly driven by approvals from the California Public Utilities Commission (CPUC) for rate increases through its General Rate Cases. The company submitted its 2024 California GRC, proposing revenue increases of 17.1% in 2026, 7.7% in 2027, and 8.1% in 2028. Rate changes have already contributed to revenue increases in Q2 2025.
2. Infrastructure Investment and Rate Base Growth: CWT plans substantial capital investments in its water system infrastructure. The company proposes to invest more than $1.6 billion in its districts from 2025-2027. These investments are projected to result in a compounded annual rate base growth of almost 12% through 2028.
3. Expansion into New Markets, particularly Texas: California Water Service is actively pursuing growth in new service areas. The company's expansion strategy in Texas is gaining traction, with ongoing customer growth in the Austin-San Antonio region and anticipated new deals in Q4 2025 and into 2026.
4. Investments in PFAS Treatment: Significant capital is being allocated to address per- and polyfluoroalkyl substances (PFAS) in water systems. CWT plans to invest approximately $160 million in PFAS treatment over the next two years, with estimated project expenses totaling around $217 million between 2025 and 2029. These necessary investments will likely be incorporated into the company's rate base and recovered through future rate adjustments, thereby contributing to revenue growth.

Share Issuance

• California Water Service Group had net total equity issued of approximately $82 million in 2020, $196 million in 2021, $105 million in 2022, $113 million in 2023, and $88 million in 2024.
• On May 14, 2025, the company entered into an at-the-market (ATM) equity distribution agreement to sell up to $350.0 million in common stock over three years, though this program was not utilized in Q2 2025.

Inbound Investments

• The company received $35 million year-to-date in 2025 from PFAS settlements, with an initial $10.6 million payment in May 2025 from a settlement with 3M.

Capital Expenditures

• Capital expenditures were approximately $298.7 million in 2020, $293.2 million in 2021, $335.5 million in 2022, $386.6 million in 2023, and $470.8 million in 2024. For the latest twelve months ending June 30, 2025, capital expenditures were $485.9 million.
• California Water Service proposes to invest more than $1.6 billion in its California districts from 2025-2027, including approximately $1.3 billion of newly proposed capital investments. Additionally, the company expects to incur about $217 million in PFAS project expenses between 2025 and 2029 for treatment and well replacement.
• The primary focus of these capital expenditures includes replacing aging water pipelines (estimated at 46% of new improvements), upgrading water quality to treat contaminants, enhancing infrastructure for reliable water delivery, and improving physical and cyber security.