California Water Service Group Moving Forward to Install PFAS Treatment Despite CPUC Dismissal of Request to Track Capital Costs in Pre-Approved Memorandum Account

SAN JOSE, Calif., April 18, 2024 (GLOBE NEWSWIRE) -- California Water Service Group (Group) (NYSE: CWT) reaffirmed its commitment to investing an estimated $215 million in PFAS treatment and to working as quickly as possible to complete planned projects, despite a decision today by the California Public Utilities Commission to dismiss California Water Service’s (Cal Water’s) application requesting authorization to modify a previously approved PFAS-expense memorandum account to include capital investments related to PFAS compliance for future recovery.

Formally tracking capital-related costs through a memorandum account is an important early step to aid construction and financial recovery of large-scale infrastructure projects, and Cal Water, Group’s largest subsidiary, intends to reapply to track costs through the regulatory process.

“Above all, protecting our customers’ health and safety is our highest priority,” said Martin A. Kropelnicki, Group Chairman & CEO. “Although the CPUC rejected our application to include capital costs in our PFAS balancing account, we will proceed with our plans to construct treatment to meet the new federal water quality standard.”

Group has long been preparing to comply with the new maximum contaminant levels (MCL) set by the U.S. Environmental Protection Agency earlier this month. Although utilities must begin monitoring for certain PFAS by 2027 and comply with the MCLs by 2029, Group has already tested most of its active water sources and believes it is well-positioned to treat any water sources needed across its service areas within the compliance timeframe.

Additionally, Group has filed lawsuits to hold PFAS manufacturers financially responsible for the costs of testing and treatment, and is pursuing grants where available, to reduce the financial impact on its customers.

About California Water Service Group
California Water Service Group (NYSE: CWT) is the largest regulated water utility in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.1 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, Texas Water Service.