CALIFORNIA WATER SERVICE GROUP (NYSE:CWT) Files An 8-K Regulation FD Disclosure

ME Staff 8-k
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CALIFORNIA WATER SERVICE GROUP (NYSE:CWT) Files An 8-K Regulation FD Disclosure
Item 7.01. Regulation FD Disclosure.

On February6, 2018, the California Public Utilities Commission (the “CPUC”) issued the proposed decision of the assigned administrative law judge, which applies to California Water Service Company, the Registrant’s California regulated utility subsidiary (“Cal Water”), and three other ClassA water companies (the “Joint Parties”), in response to the Joint Parties’ request to set their cost of capital for 2018 – 2020. The proposed decision would lower Cal Water’s authorized return on equity from 9.43% to 8.22%. If the proposed decision were adopted without changes, Cal Water would be required to reduce its rates collected from California customers by approximately $13 million. This reduction in revenue would have a material adverse impact on the Registrant’s net income and earnings beginning in 2018.

A proposed decision must be approved by the full Commission to go into effect. The full Commission could modify or reject the proposed decision and will first consider the matter at its meeting on March22, 2018.

The information furnished to Item 7.01 of this Current Report shall not be deemed “filed” for the purposes of Section18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

This report contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (“Act”). The forward-looking statements are intended to qualify under provisions of the federal securities laws for “safe harbor” treatment established by the Act. Forward-looking statements are based on currently available information, expectations, estimates, assumptions and projections, and management’s judgment about the Registrant, the water utility industry and general economic conditions. Such words as would, expects, intends, plans, believes, estimates, assumes, anticipates, projects, predicts, forecasts or variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not guarantees of future performance. They are subject to uncertainty and changes in circumstances. Actual results may vary materially from what is contained in a forward-looking statement. Factors that may cause a result different than expected or anticipated include, but are not limited to: governmental and regulatory commissions’ decisions; changes in regulatory commissions’ policies and procedures; changes in environmental compliance and water quality requirements; shortages and the cost of labor; governmental regulation directed at or affecting construction activities; weather related slowdowns; and, other risks and unforeseen events. When considering forward-looking statements, you should keep in mind the cautionary statements included in this paragraph, as well as the annual 10-K, Quarterly 10-Q, and other reports filed from time-to-time with the Securities and Exchange Commission. The Registrant assumes no obligation to provide public updates of forward-looking statements.


About CALIFORNIA WATER SERVICE GROUP (NYSE:CWT)

California Water Service Group is a holding company that provides water utility and other related services in California, Washington, New Mexico and Hawaii through its subsidiaries. It operates through supply and distribution of water, and providing water-related utility services segment. Its business comprises the production, purchase, storage, treatment, testing, distribution and sale of water for domestic, industrial, public and irrigation uses, and for fire protection. It provides non-regulated water-related services under agreements with municipalities and other private companies. The non-regulated services include water system operation, billing and meter reading services. Non-regulated operations also include the lease of communication antenna sites and lab services. Its subsidiaries include California Water Service Company, New Mexico Water Service Company, Washington Water Service Company, Hawaii Water Service Company, Inc., CWS Utility Services and HWS Utility Services LLC.