Investor FAQ

1.What services does Cal Water provide?
2.Where are Cal Water’s operations?
3.What percentage of Cal Water’s business is regulated by State Utilities Commissions?
4.Does Cal Water have a strategy for improving its service and efficiency?
5.Does Cal Water have a Dividend Reinvestment Program (DRIP)?
6.Does Cal Water pay dividends?
7.When are the dividends paid?
8.When has Cal Water’s stock split?
9.Does Cal Water have plans to expand its operations?
10.What criteria does Cal Water use in considering acquisitions?
11.What year was Cal Water incorporated and in what state?
12.What type of accounting does Cal Water use?
13.How can I obtain a copy of the Company’s annual report or proxy?
14.Are the Company’s Securities and Exchange Company (SEC) filings available?
15.How many shares are outstanding?
16.When do fiscal quarters end?
17.When is the annual meeting of stockholders?
18.How many employees does Cal Water have?
19.Who is Cal Water’s outside legal counsel?
20.Who are Cal Water’s independent auditors?
21.How long has Pete Nelson been at Cal Water? What is his background?
22.How do I transfer ownership of my stock?
23.My legal name has changed. Do I need to re-register my stock?
24.As the representative for a deceased stockholder, how do I transfer stock?
25.Do you offer direct registration for stockholders?
1.What services does Cal Water provide?
 California Water Service Group (“Company” or “Cal Water”) provides a range of regulated and non-regulated water utility services to nearly 2 million people in California, Washington, New Mexico, and Hawaii through its five subsidiaries: California Water Service Company (“California Water”), New Mexico Water Service Company (“New Mexico Water”), Washington Water Service Company ("Washington Water"), Hawaii Water Service Company ("Hawaii Water"), and CWS Utility Services. The Company operates its own regulated water and wastewater systems serving over 483,000 customers, and provides non-regulated utility services to other companies, municipalities, and agencies. In all regulated and non-regulated operations, employees are focused on providing high-quality water and excellent customer service.

2.Where are Cal Water’s operations?
 Headquartered in San Jose, California, the Company provides regulated and non-regulated water and wastewater service in 99 communities. The Company’s largest subsidiary, California Water Service Company, has 25 districts throughout California, ranging from Chico in the north to the Palos Verdes Peninsula in the south. Washington Water Service Company operates two districts: one near Olympia and the other near Tacoma. New Mexico Water Service Company is located in Belen, Los Lunas, and Elephant Butte, New Mexico, which is south of Albuquerque. Hawaii Water Service Company is headquartered in Kaanapali on the island of Maui. CWS Utility Services provides non-regulated contract utility services throughout California.

3.What percentage of Cal Water’s business is regulated by State Utilities Commissions?
 About 95%. The Company has regulated operations in California, New Mexico, Washington, and Hawaii.

4.Does Cal Water have a strategy for improving its service and efficiency?
 Yes. Cal Water uses a tool called Continuous Improvement. Through Continuous Improvement, every employee devotes at least one hour per week to working as a team member on projects to increase efficiency or improve customer service. The Company also has a cross-functional team that measures customer satisfaction and initiates programs to increase satisfaction levels. The Company is very focused on providing excellent customer service.

5.Does Cal Water have a Dividend Reinvestment Program (DRIP)?
 Yes. The Company has a Dividend Reinvestment and Stock Purchase Plan (Plan). The Plan allows stockholders to reinvest common stock dividends to purchase additional Company stock; it also enables existing and new stockholders to purchase common stock without using a broker by going through the Company’s transfer agent, American Stock Transfer & Trust Company . For information on the program, contact Investor Relations at (408) 367-8200 or (800) 750-8200.

6.Does Cal Water pay dividends?
 Yes. The Company has a long history of paying dividends. As of 2008, it has paid a common stock dividend every year for more than 63 years and has increased the dividend for 41 consecutive years.

7.When are the dividends paid?
 After reviewing and considering the Company’s financial results, the Board of Directors declares the dividends at the end of each quarter. For 2008, the expected dividend payment schedule is:

Quarter Declaration Record Date Payment Date
First January 28 February 9 February 20
Second April 22 May 4 May 15
Third July 29 August 10 August 21
Fourth October 28 November 9 November 20

8.When has Cal Water’s stock split?
 The most recent stock splits, each two-for-one, occurred in 1984, 1987 and 1997.

9.Does Cal Water have plans to expand its operations?
 The Company actively works to expand its operations through a disciplined growth strategy, pursuing opportunities that add stockholder value. In 1999, the Company became the largest investor-owned water utility in Washington with its purchase of the Harbor and South Sound Utility companies. In 2000, it merged with Dominguez Services Corporation and added 40,000 new customer connections. In 2002, the Company's New Mexico subsidiary added 2,265 water and 1,600 wastewater customers with its acquisition of the Rio Grande Utility Corporation and 1,600 customers with its acquisition of National Utilities Corporation. Most recently, in 2003, the Company acquired Kaanapali Water Corporation, which serves 500 customers, including several large resorts and condominium complexes, in Maui, Hawaii.

10.What criteria does Cal Water use in considering acquisitions?
 Cal Water takes a disciplined approach to growth. A due diligence review team, which represents various water business disciplines, considers many factors, including whether the acquisition would be accretive and whether the system is close to an existing operation or of sufficient size to make sense as a stand-alone operation. It also considers the condition of the system infrastructure, water quality, staffing requirements, rates, potential for future customer growth, and water supply.

11.What year was Cal Water incorporated and in what state?
 California Water Service Company was incorporated in 1926 in the state of California. In 1997, the Company adopted a holding company structure under which California Water Service Company became a subsidiary of California Water Service Group. California Water Service Group is incorporated in Delaware.

12.What type of accounting does Cal Water use?
 The Company maintains its accounting records in accordance with accounting principles generally accepted in the United States and as directed by the regulatory commissions to which the Company’s operations are subject.

13.How can I obtain a copy of the Company’s annual report or proxy?
 Contact the Company’s Investor Relations at (408) 367-8200 or (800) 750-8200 or e-mail your request to klichtenberg@calwater.com.

14.Are the Company’s Securities and Exchange Company (SEC) filings available?
 Yes. You can obtain copies of SEC filings by contacting the Company’s Investor Relations at (408) 367-8200 or (800) 750-8200, or by sending an e-mail to klichtenberg@calwater.com. The filings can also be viewed online through this web site from our SEC Filings page.

15.How many shares are outstanding?
 The Company has 20.67 million shares of common stock outstanding, which are traded on the New York Stock Exchange under the symbol “CWT.”

16.When do fiscal quarters end?
 The Company operates on a calendar year basis, with quarters ending on March 31, June 30, September 30, and December 31.

17.When is the annual meeting of stockholders?
 The 2008 annual meeting will be held on May 27 at the Company’s headquarters, located at 1720 North First Street, San Jose, CA 95112.

18.How many employees does Cal Water have?
 As of December 2007, there were 878 employees.

19.Who is Cal Water’s outside legal counsel?
 Bingham McCutchen in San Francisco.

20.Who are Cal Water’s independent auditors?
 KPMG, L.L.P.

21.How long has Pete Nelson been at Cal Water? What is his background?
 Mr. Nelson was named President and Chief Executive Officer in 1996. Before joining California Water Service Group, he was Vice President, Division Operations (1994-1995) and Region Vice President (1989-1994) of Pacific Gas & Electric Company.

22.How do I transfer ownership of my stock?
 To transfer stock, the owner must complete the assignment on the back of the certificate and sign it exactly as his or her name appears on the front. This signature must be guaranteed by an eligible guarantor institution (banks, stock brokers, savings and loan associations, and credit unions with membership in approved signature medallion programs) pursuant to SEC Rule 17Ad-15. A notary’s acknowledgement is not acceptable. This certificate should then be sent to American Stock Transfer & Trust Company by registered or certified mail with complete transfer instructions. American Stock Transfer & Trust Company may be reached at 59 Maiden Lane, New York, NY 10038, or by phone at (800) 937-5449.

23.My legal name has changed. Do I need to re-register my stock?
 Yes. If your name has legally changed, you must fill out a Request to Transfer Stock form. Please contact the Company at (408) 367-8200 or (800) 750-8200 to request the form.

24.As the representative for a deceased stockholder, how do I transfer stock?
 

To transfer a deceased stockholder's shares, you must fill out a Request to Transfer Stock form. The Executor(s) or Administrator(s) must fill out the form in the deceased person's legal capacity. You will need to include the following with the transfer form:

  • a court certified copy of the appointment of the decedent's legal representative dated sixty days of the date of the transfer; and
  • an affidavit of residence/inheritance tax waiver (if applicable under state law).

In the event an estate is not required to go through probate, the transfer form must be endorsed by the legal heir(s) of the deceased owner's estate, and the following must be included with the form:

  • an official certificate (Small Estate Affidavit), stating the decedent's legal heir(s), with signature(s) notarized or certified by the probate court within sixty days of the date of the transfer (check with the probate court for more information); and
  • a certified copy of the decedent's death certificate.


25.Do you offer direct registration for stockholders?
 

Yes. For more information on the direct registration system, please click here.