California Water Service Group reported first-quarter net income of $4.0 million, down from $13.3 million year-over-year, on revenue of $214.6 million, up 5.2%. Higher rate adjustments and unbilled revenue drove growth, while lower customer consumption and rising water production and depreciation costs increased expenses to $196.4 million.

The CPUC issued a revised proposed decision on the 2024 California General Rate Case, authorizing rate increases that would add $90.5 million of revenue (10.9%) in 2026, $43.2 million (4.7%) in 2027 and $48.9 million (5.1%) in 2028. Final adoption is expected by April 30, 2026, after which the company may record retroactive increases authorized from January 1, 2026.

The company agreed to acquire Nexus Water Group’s Nevada and Oregon systems for approximately $218 million, adding about 36,000 customer equivalent residential units and $109 million of rate base. The acquisition expands geographic footprint in adjacent markets, pending customary regulatory approvals.

Capital investment reached $129.4 million in the quarter, compared with $110.1 million a year earlier, and the company anticipates up to $627 million in infrastructure spending for 2026. The board declared an 8% dividend increase, raising annualized payouts by $0.10 to $1.34 per share and confirming a quarterly dividend of $0.335.