California Water Service to Own, Operate New Silverwood Development's Wastewater and Recycled Water Systems

SAN JOSE, Calif., June 24, 2025 (GLOBE NEWSWIRE) -- In an expansion of its wastewater and recycled water operations, California Water Service (Cal Water) has signed an agreement with an affiliate of DMB Development to own and operate the wastewater and recycled water systems of Silverwood, a new master-planned, mixed-use community currently under construction in San Bernardino County, Calif. Cal Water is the largest subsidiary of California Water Service Group (NYSE: CWT), whose subsidiaries provide water, wastewater, and recycled water utility services across the western United States. Under the agreement, upon completion of the community’s wastewater treatment plant, Cal Water will begin serving approximately 500 wastewater connections initially being served by the City of Hesperia. At full buildout of the development, Silverwood is expected to have more than 15,000 customer connections. Cal Water will take ownership of the wastewater collection system and recycled water distribution system in phases as they are completed and ready to accommodate new connections. “We look forward to our partnership with DMB Development to serve the new Silverwood community and help sustain the environment,” said Martin A. Kropelnicki, Cal Water Chairman and Chief Executive Officer. “As families seek to put down roots in this area, we are dedicated to helping improve their quality of life by focusing on the same high standard of quality, service, and value that we provide to customers throughout our service areas.” The phased transfers of ownership are subject to satisfactory closing conditions. The Silverwood system will become a new Cal Water district, with oversight from the California Public Utilities Commission. About California Water Service California Water Service provides high-quality, reliable water utility services to more than 2.1 million people statewide through 499,400 service connections. Cal Water’s purpose is to enhance the quality of life for customers and communities. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s 1,200 employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The utility has been named one of “America’s Most Responsible Companies” and one of the “World’s Most Trustworthy Companies” by Newsweek, a USA Top Workplace, and a Great Place to Work®. More information is available at www.calwater.com. This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (PSLRA). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections, and our management's beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks, commits or variations of these words or similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements in this news release include, but are not limited to, statements describing the anticipated transfer of ownership pursuant to, expected benefits resulting from, and closing conditions related to the Silverwood acquisition. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable but are subject to uncertainty and risks. Actual results or outcomes may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results or outcomes to be different than those expected or anticipated include, but are not limited to: ability to integrate the business and operate the Silverwood systems in an effective and accretive manner; the outcome and timeliness of regulatory commissions' actions concerning rate relief and other matters, including with respect to the 2024 California GRC filing; changes in regulatory commissions’ policies and procedures; our ability to invest or apply the proceeds from the issuance of common stock in an accretive manner; federal governmental and state regulatory commissions’ decisions; consequences of eminent domain actions relating to our water systems; increased risk of inverse condemnation losses as a result of the impact of weather, climate change, and natural disasters; our ability to renew leases to operate water systems owned by others on beneficial terms; changes in California State Water Resources Control Board water quality standards; changes in environmental compliance and water quality requirements, such as the EPA’s finalization of a National Primary Drinking Water Regulation in 2024; electric power interruptions; housing and customer growth; the impact of opposition to rate increases; our ability to recover costs; availability of water supplies; issues with the implementation, maintenance or security of our information technology systems; civil disturbances or terrorist threats or acts; the adequacy of our efforts to mitigate physical and cyber security risks and threats; the ability of our ERM processes to identify or address risks adequately; labor relations matters as we negotiate with the unions; changes in customer water use patterns and the effects on conservation, including as a result of drought conditions; our ability to complete, in a timely manner or at all, successfully integrate, and achieve anticipated benefits from acquisitions; the impact of weather, climate change, natural disasters, including wildfires and landslides, and actual or threatened public health emergencies on our operations, water quality, water availability, water sales, and operating results and the adequacy of our emergency preparedness; restrictive covenants in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt, or pay dividends; risks associated with expanding our business and operations geographically; the impact of stagnating or worsening business and economic conditions, including inflationary pressures, general economic slowdown, or a recession, changes in tariff policy and uncertainty regarding tariffs and other retaliatory trade measures, the interest rate environment, changes in monetary policy, adverse macroeconomic conditions as a result of geopolitical conflicts, and the prospect of a shutdown of the U.S. federal government; the impact of market conditions and volatility on unrealized gains or losses on our non-qualified benefit plan investments and our operating results; the impact of weather and timing of meter reads on our accrued unbilled revenue; the impact of evolving legal and regulatory requirements; the impact of the evolving U.S. political environment that has led to, in some cases, legal challenges and uncertainty around the funding, functioning, and policy priorities of U.S. federal regulatory agencies and the status of current and future regulations; and other risks and unforeseen events described in our most recent Annual Report on Form 10-K and our other SEC filings. In light of these risks, uncertainties and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. We are not under any obligation, and we expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise. Contact: Yvonne Kingman, 310-257-1434

California Water Service to Own, Operate New Silverwood Development's Wastewater and Recycled Water Systems

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