regulatory
confidence high
sentiment neutral
materiality 0.55
CPUC approves cost of capital for Cal Water; authorized return drops to 7.08%
CALIFORNIA WATER SERVICE GROUP
- CPUC sets initial ROE of 9.05%; WCCM trigger allows filing for 9.57% ROE.
- Authorized rate of return reduced 40 bps to 7.08%, decreasing annual revenue by ~$7M (<1%).
- Cost of debt lowered to 4.23% from 5.51%; decision covers July 2023–end of 2024.
- CEO states decision provides investor certainty while balancing customer and community needs.