Washington Utilities and Transportation Commission Sets New Rates for Washington Water Service’s Stroh’s Water System to Help Keep Service Safe and Reliable

Rhea-AI Summary

Washington Water Service, a subsidiary of California Water Service Group (NYSE: CWT), has received approval from the Washington Utilities and Transportation Commission to increase annual revenue by $178,000 for its Stroh's water system. The rate increase will be implemented in two phases to minimize customer impact, with half effective immediately and the remainder in Q2 2026. The revenue adjustment follows infrastructure upgrades made since acquiring the Stroh's system in late 2022. Key improvements include replacing well pump equipment, installing a water quality sampling station, enhancing water storage tank safety, and upgrading wellhead meters. The new rates became effective May 23, 2025.

Positive

• Approved revenue increase of $178,000 annually for the Stroh's water system
• Phased implementation approach reduces immediate impact on customers
• Strategic infrastructure upgrades improve system reliability and safety
• Successful regulatory approval demonstrates effective cost recovery strategy

Negative

• Rate increase may impact customer affordability
• Two-phase implementation delays full revenue realization until 2026

GIG HARBOR, Wash., June 04, 2025 (GLOBE NEWSWIRE) -- Washington Water Service (Washington Water), a subsidiary of California Water Service Group (NYSE: CWT), has received approval from the Washington Utilities and Transportation Commission (UTC) to increase annual revenue by approximately $178,000 in its Stroh’s water system and adjust water rates accordingly. This increase in annual revenue will be phased in over two years to reduce the impact to customers, with rates reflecting half of the change effective now and the remainder expected to become effective in the second quarter of 2026.

This change is driven by upgrades made to the water system infrastructure since Washington Water acquired the Stroh’s system in late 2022 along with increased operating costs. Among significant investments made in the Stroh’s service area are:

• Replacement of a well pump, a motor, and two booster pumps to help increase pressure reliability.
• Installation of a new water quality sampling station.
• Safety improvements made to water storage tanks.
• Replacement of two wellhead meters designed to accurately record production data for the Department of Ecology and Department of Health.

“We are committed to providing quality, service, and value to our Stroh’s water system customers, and one important part of fulfilling this promise is by improving and maintaining the local water system infrastructure,” said Marty Kropelnicki, Group Chairman and CEO. “We believe these upgrades will help us continue to provide safe, clean, reliable drinking water to Stroh’s customers for years to come.”

New rates were effective as of May 23, 2025.

About California Water Service Group

California Water Service Group (NYSE: CWT) is the largest regulated water utility operating exclusively in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.1 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, Texas Water Service. 

Group’s purpose is to enhance the quality of life for customers, communities, employees, and stockholders. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s nearly 1,300 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 company 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.calwatergroup.com.

Media Contact
Yvonne Kingman
ykingman@calwater.com
310-257-1434

FAQ

What is the total revenue increase approved for CWT's Stroh's water system?

The Washington Utilities and Transportation Commission approved an annual revenue increase of approximately $178,000 for the Stroh's water system.

When will the new water rates for CWT's Stroh's system take effect?

The rate increase is being implemented in two phases, with the first half effective May 23, 2025, and the second half expected in Q2 2026.

What infrastructure improvements did Washington Water make to the Stroh's system?

Improvements include replacing a well pump, motor, and booster pumps, installing a water quality sampling station, making safety improvements to storage tanks, and replacing wellhead meters.

When did Washington Water acquire the Stroh's water system?

Washington Water acquired the Stroh's water system in late 2022.

Why is CWT increasing rates for the Stroh's water system?

The rate increase is driven by infrastructure upgrades made since acquiring the system in 2022 and increased operating costs to maintain safe and reliable water service.