California Water Service Partners with EDP Renewables North America on 20-Year Solar Power Agreement

Rhea-AI Summary

California Water Service (NYSE: CWT) has entered into a 20-year power purchase agreement with EDPR NA Distributed Generation LLC for a 2.35-megawatt DC solar photovoltaic array at its Northeast Bakersfield Treatment Plant. The system is expected to generate 3,800 megawatt-hours of renewable energy annually and reduce grid energy costs by approximately $1.7 million over the agreement term.

The partnership aims to reduce Cal Water's environmental footprint while maintaining affordable water costs for customers in the Bakersfield District, one of its largest service areas. The initiative aligns with Cal Water's commitment to reaching science-aligned greenhouse gas emissions reduction targets and enhancing sustainability in its operations.

Positive

• Expected to generate $1.7 million in grid energy cost savings over 20 years
• Will produce 3,800 megawatt-hours of renewable energy annually
• Supports company's greenhouse gas emissions reduction targets
• Helps maintain affordable water costs for customers

Negative

• Long-term 20-year commitment to a single energy provider
• Initial implementation limited to only one treatment plant

Insights

Utilities Infrastructure Analyst

Cal Water's 20-year solar agreement reduces costs by $1.7M while advancing sustainability goals through renewable energy implementation.

Cal Water's 20-year power purchase agreement with EDPR NA Distributed Generation represents a strategic investment in operational sustainability with measurable financial benefits. The 2.35-megawatt solar array at their Northeast Bakersfield Treatment Plant is projected to generate 3,800 megawatt-hours of renewable energy annually, creating approximately $1.7 million in grid energy cost savings over the contract term.

This agreement serves multiple strategic objectives for Cal Water. First, it provides a hedge against future electricity price volatility in California's challenging energy market. Second, it directly supports their science-aligned greenhouse gas reduction targets, which are increasingly important for regulatory compliance and ESG-focused investors. Third, the cost savings help mitigate upward pressure on water rates in their Bakersfield District, one of their largest service areas.

The project demonstrates how water utilities can leverage operational assets (treatment plant land) to generate long-term value. From an infrastructure perspective, this on-site generation model improves grid resilience while potentially reducing transmission losses. For a capital-intensive business like water utilities, finding operational efficiencies through renewable energy adoption represents a prudent approach to balancing sustainability goals with customer affordability concerns.

Power Purchase Agreement Expected to Generate 3,800 Megawatt-Hours Annually for Bakersfield Treatment Plant

SAN JOSE, Calif., July 23, 2025 (GLOBE NEWSWIRE) -- (NYSE: CWT)—As part of its mission to provide sustainable water utility services, California Water Service (Cal Water) has signed a 20-year power purchase agreement with EDPR NA Distributed Generation LLC (EDPR NA DG) for a 2.35-megawatt direct current (MWdc) / 1.75-megawatt alternating current (MWac) solar photovoltaic array to be installed at Cal Water’s Northeast Bakersfield Treatment Plant. The partnership between Cal Water, the largest subsidiary of California Water Service Group (Group), and EDPR NA DG, a subsidiary of EDP Renewables North America LLC, is designed to reduce the water utility’s long-term environmental footprint while providing lower-cost energy and helping to keep water costs affordable.

Cal Water and EDPR NA DG expect the system to generate about 3,800 megawatt-hours of renewable energy annually. The renewable energy generated by the solar array is anticipated to reduce grid energy costs by about $1.7 million over the term of the agreement, based on current electric rates for customers in the Bakersfield District, one of Cal Water’s largest service areas.

“At Cal Water, we are dedicated to being a responsible environmental steward, and partnering with EDPR NA DG will help us reduce traditional power costs, reach our science-aligned greenhouse gas emissions reduction targets, and increase sustainability,” said Marty Kropelnicki, Group Chairman and CEO. “We look forward to bringing this new onsite solar array online, which is an important step for us to continue providing safe, reliable, and affordable water service to our customers for decades to come.”

“California is a national clean energy leader because of organizations like Cal Water, which prioritize supporting renewable energy investments,” said João Barreto, EDPR NA DG CEO. “This partnership demonstrates the ever-increasing convergence of the water-energy nexus, and the importance of investment in vital infrastructure throughout California.”

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.

About EDPR NA Distributed Generation 
At EDPR NA Distributed Generation LLC, accelerating the adoption and success of distributed generation is at the core of our mission. EDPR NA DG provides cutting-edge innovative renewable energy services to the entire North American region. Built on long-standing relationships with developers, power generators, corporate purchasers, municipalities, and local communities, EDPR NA DG delivers a full suite of offerings ranging from financing and development to construction and operation of energy and storage assets poised to scale. To date, EDPR NA DG has an operating capacity of 337 megawatts (MW) across 545 active sites. For more information, visit www.edprnadg.com and follow us on LinkedIn.

Contact: Yvonne Kingman, 310-257-1434

FAQ

What is the size of CWT's solar power agreement with EDP Renewables?

The agreement is for a 2.35-megawatt DC (1.75-megawatt AC) solar photovoltaic array to be installed at Cal Water's Northeast Bakersfield Treatment Plant.

How much will CWT save from the solar power agreement?

Cal Water expects to reduce grid energy costs by approximately $1.7 million over the 20-year term of the agreement, based on current electric rates.

How much renewable energy will CWT's solar array generate annually?

The solar system is expected to generate about 3,800 megawatt-hours of renewable energy annually.

Where will CWT's new solar array be installed?

The solar array will be installed at Cal Water's Northeast Bakersfield Treatment Plant, which is located in one of Cal Water's largest service areas.

How long is CWT's solar power purchase agreement?

California Water Service has signed a 20-year power purchase agreement with EDPR NA Distributed Generation LLC.