Hawaii Water Service Company Receives Regulatory Approvals That Will Add Nearly $3 Million to Annual Revenues

WAIKOLOA, HI--(Marketwired - Jul 1, 2015) - California Water Service Group (NYSE: CWT) announced today that its subsidiary, Hawaii Water Service Company (Hawaii Water), received two decisions from the Hawaii Public Utilities Commission (Commission) that will increase annual revenues by $2,775,020.

On June 29, 2015, the Commission approved a rate increase and change in rate design for Hawaii Water Service Company's Kona Water System, which operates as Kona Water Service Company (Kona Water). In its decision, the Commission approved an increase in revenue of $2,101,024, or 58.8%, to be phased in over six months to reduce the impact to customers. Kona Water provides potable water service and wastewater collection and treatment to homes and businesses in the Kukio Resort community on the Big Island.

The rate design change for Kona Water implements a "ready-to-serve" charge for water service, which includes a fixed amount of consumption, in addition to the current meter and consumption charges. Only water consumption over 10,000 gallons will be charged set quantity rates. For wastewater service, the quantity charge will only apply to the first 7,000 gallons of water used under the new rate design.

Additionally, in a decision on June 22, 2015, the Commission approved a rate increase for Hawaii Water Service Company's Waikoloa Sanitary Sewer System, which operates as West Hawaii Sewer Company (West Hawaii Sewer). In this decision, the Commission approved an increase in revenue of $673,996, or 68.4%. West Hawaii Sewer provides wastewater collection and treatment services to homes and businesses in the Waikoloa Village community on the Big Island of Hawaii.

"We appreciate these decisions made by the Hawaii Public Utilities Commission after a thorough review of our operations, costs, and service," said Martin A. Kropelnicki, President and CEO of Hawaii Water Service Company. "We have made significant investments in the water and wastewater systems for our West Hawaii Sewer and Kona Water customers to help ensure that we are able to meet stringent water and wastewater standards and provide reliable service to our customers."