California Water Service Group · NYSE:CWT
California Water Service — Corporate Update (June 2015)
11 slides from California Water Service's corporate update, Jun 3, 2015
Slide 1: California Water Service Drought Update Investor Call
California Water Service Drought Update Investor Call June 3, 2015 1
Slide 2: Forward-looking statements
This presentation 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
Slide 3: Agenda
3 Agenda Status of Water Shortage Contingency Plan (Schedule 14.1) Cal Water’s customer-first approach Public meetings and outreach Accounting for expenses, penalties and surcharges California’s Water Action Plan and the CPUC’s regulatory mechanisms in place
Slide 4: CPUC Drought Actions - Schedule 14.1
4 CPUC Drought Actions - Schedule 14.1 Cal Water was the first to file its drought plan with the CPUC, on April 28 Plan is effective June 1 after approval by CPUC staff Customers in Cal Water service areas have budgets 8%-36% lower than their 2013 usage Surcharges for those who exceed budgets – 2 ti
Slide 5: CPUC Drought Actions - Schedule 14.1 (Cont.)
5 CPUC Drought Actions - Schedule 14.1 (Cont.) Additional restrictions on type and timing of use including penalties for waste of water Provisions allowing more stringent action if drought goals not achieved Regulations are flexible to allow for coordination with local city ordinances
Slide 6: Cal Water Drought Strategy - Customer-First Approach
6 Cal Water Drought Strategy- Customer-First Approach Drought plan went live on June 1st Unique “customer-first” approach, which is consistent with our culture, reinforces reputation, and lets customer know we are here to help Customer-first approach well-received at 25 public meetings Cal Water con
Slide 7: Cal Water Drought Strategy - Customer-First Approach (Cont.)
7 Cal Water Drought Strategy – Customer-First Approach (Cont.) Dedicated call center with CSRs specially trained on drought Regional conservation coordinators to assist customers locally Targeted communications with high-use and high-impact customers Extensive, ongoing communication with media and c
Slide 8: Drought Accounting
8 Drought Accounting WRAM severs the link between sales volumes and profits, allowing Cal Water to aggressively pursue conservation Schedule 14.1 includes provision to credit drought surcharges to the WRAM This will help reduce the growth of WRAM balances through the drought period and lower future
Slide 9: Drought Accounting (Cont.)
9 Drought Accounting (Cont.) CPUC has established a drought memorandum account in 2014 to track incremental drought expenses Drought penalties for water waste and rules violations will be credited to the memorandum account and offset costs of Cal Water’s outreach program Company previously disclosed
Slide 10: CPUC Regulatory Mechanisms
10 CPUC Regulatory Mechanisms Under its Water Action Plan, the CPUC has approved mechanisms which align stockholder and customer interests in the drought: Water Revenue Adjustment Mechanism (WRAM) Modified Cost Balancing Account (MCBA) Sales Reconciliation Mechanism Conservation balancing account Dr
Slide 11: Next Steps
Next Steps We will update investors on these programs in the second quarter earnings conference call Cal Water will continue to track and report to its regulators on conservation effectiveness Our primary goal is to maintain high quality water service to our customers and comply with state mandates
California Water Service Group — Corporate Update (June 2015) on 6ix