WUTC Issues Decision in Washington Water’s Application to Recover Costs for Investments to Provide Safe, Reliable Service
Washington Water gains WUTC approval to recover $26.5 million of system investments through a $4.1 million annual revenue increase starting with new rates in October 2026.
Rhea-AI Summary
California Water Service Group (CWT) received a Washington Utilities and Transportation Commission decision approving Washington Water Service’s application to adjust rates and recover recent investment costs. The adopted all-party settlement allows the subsidiary to increase annual revenue by $4.1 million.
From 2023 through 2024, Washington Water invested $26.5 million in its East Pierce and Legacy water systems, including thousands of feet of new water mains, new treatment facilities for lead, copper, arsenic, iron, and manganese, booster pump upgrades, and remote system monitoring. The company also undertook PFAS-related testing, construction, and treatment to meet new regulations. New rates are expected to take effect in October 2026.
Positive
- Annual revenue increase of $4.1 million approved for Washington Water
- $26.5 million of 2023–2024 system investments recognized for cost recovery
- Investments include new mains, treatment plants, pumps, monitoring, and PFAS facilities across multiple systems
Negative
- Approved revenue increase implies higher customer rates from October 2026
AI-generated analysis. How Rhea-AI works. Not financial advice.
GIG HARBOR, Wash., Sept. 10, 2026 (GLOBE NEWSWIRE) -- The Washington Utilities and Transportation Commission (WUTC) has issued a decision in Washington Water Service’s (Washington Water) application to adjust rates and recover costs for investments made to keep its East Pierce and Legacy water systems safe and reliable. The decision, which adopted the all-party settlement reached among Washington Water, WUTC staff, and the Public Counsel Unit of the Washington Attorney General’s Office, enables the California Water Service Group (Group) subsidiary to increase annual revenue by
Washington Water made
- Installing 1,000 feet of new water main in the Minterbrook system; 700 feet in Sunshine Acres; 2,500 feet in the Ranch Acres Shores system; 2,000 feet in Cedar Grove; 1,000 feet in Evergreen Shores; and 7,000 feet in the Southwood system to improve reliability and fire protection, and reduce potential leaks.
- Installing new treatment facilities to reduce lead and copper in the Heritage Row system, arsenic in the Quistorff system, and iron and manganese in the Southwood system.
- Upgrading booster pump stations in the Rosario, Cedar Crest, Artondale, Southwood, Olympic Mall, and Driftwood Valley systems.
- Deploying Supervisory Control and Data Acquisition remote system monitoring in the Sunshine Acres, Rosario, Mirrormont, Palmer Lake, and Southwood systems.
- Installing a new booster pumping facility to increase reliability and capacity in the Lost Creek zone of the Southwood system.
- Testing, constructing facilities, and treating for certain per- and polyfluoroalkyl substances (PFAS) in accordance with new water quality regulations.
“Protecting the health and safety of our customers is our highest priority, and improvements such as these help us provide high-quality, reliable drinking water for our customers,” said Martin A. Kropelnicki, Group Chairman and CEO. “We appreciate the WUTC enabling us to recover costs needed to keep delivering the quality, service, and value our communities deserve.”
Washington Water expects new rates to become effective in October 2026.
About California Water Service Group
California Water Service Group (NYSE: CWT) is the largest regulated water utility in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.2 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, TWSC, Inc. (Texas Water Service). This year, the company commemorates a century of 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 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.
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 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 potential timing for the increase in Washington Water’s rates to become effective and plans for related cash receipts. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks. Consequently, 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 those described under the section entitled "Risk Factors" and elsewhere in our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q and our other Securities and Exchange Commission 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.
MEDIA CONTACT: Yvonne Kingman, (310) 257-1434
FAQ
Which Washington Water systems benefited from the approved investments?
The investments covered East Pierce and Legacy water systems, including work in the Minterbrook, Sunshine Acres, Ranch Acres Shores, Cedar Grove, Evergreen Shores, Southwood, Heritage Row, Quistorff, Rosario, Cedar Crest, Artondale, Olympic Mall, Driftwood Valley, Mirrormont, Palmer Lake, and Lost Creek zone of the Southwood system.
What types of infrastructure upgrades did Washington Water complete?
Washington Water installed new water mains in several systems, built new treatment facilities for lead, copper, arsenic, iron, and manganese, upgraded booster pump stations, deployed Supervisory Control and Data Acquisition remote monitoring, installed a new booster pumping facility to increase reliability and capacity, and tested, constructed facilities, and treated for certain PFAS under new water quality regulations.
What agreement did the WUTC decision adopt?
The decision adopted an all-party settlement reached among Washington Water, WUTC staff, and the Public Counsel Unit of the Washington Attorney General’s Office, which enables recovery of costs for the specified investments through a $4.1 million annual revenue increase.
When does Washington Water expect the new rates to take effect?
Washington Water expects the new rates reflecting the approved revenue increase to become effective in October 2026.