H2O America Announces Deferral of San Jose Water Company’s Cost of Capital Filing to May 1, 2027
H2O America (NASDAQ: HTO) said San Jose Water Company and three other California water utilities received CPUC approval to defer their scheduled 2026 Cost of Capital filing to May 1, 2027, with the deferral effective Jan. 1, 2028. The company will retain a 9.81% allowed ROE through 2027 unless the Water Cost of Capital Mechanism (WCCM) adjusts it in line with the Moody’s Aa Utility Bond Index. The 9.81% ROE reflects a prior CPUC-approved 10.01% base ROE less a 20-basis-point reduction tied to the Water Conservation Memorandum Account (WCMA). The WCCM remains in place until Jan. 1, 2028, and the deferral is intended to reduce administrative processing costs for the Joint Parties and CPUC staff.
H2O America (NASDAQ: HTO) ha comunicato che San Jose Water Company e altre tre utility idriche della California hanno ottenuto l'approvazione della CPUC per differire il previsto deposito del Cost of Capital del 2026 al 1 maggio 2027, con l'effetto del differimento dal 1 gennaio 2028. L'azienda manterrà un ROE ammesso del 9,81% fino al 2027 a meno che il Water Cost of Capital Mechanism (WCCM) non lo adegui in linea con l'indice Moody's Aa Utility Bond Index. Il ROE del 9,81% riflette un ROE base approvato dalla CPUC pari al 10,01% meno una riduzione di 20 punti base legata al Water Conservation Memorandum Account (WCMA). Il WCCM resta in vigore fino al 1 gennaio 2028, e il differimento è inteso a ridurre i costi di elaborazione amministrativa per le Parti congiunte e per lo staff della CPUC.
H2O America (NASDAQ: HTO) dijo que San Jose Water Company y otras tres empresas de servicios públicos de California obtuvieron la aprobación de la CPUC para aplazar su presentación programada del Cost of Capital de 2026 hasta el 1 de mayo de 2027, con el aplazamiento vigente desde el 1 de enero de 2028. La empresa mantendrá un ROE permitido del 9,81% hasta 2027 a menos que el Water Cost of Capital Mechanism (WCCM) lo ajuste conforme al Moody’s Aa Utility Bond Index. El ROE del 9,81% refleja un ROE base aprobado previamente por la CPUC del 10,01% menos una reducción de 20 puntos básicos vinculada a la Water Conservation Memorandum Account (WCMA). El WCCM permanece vigente hasta el 1 de enero de 2028, y el aplazamiento tiene como objetivo reducir los costos de procesamiento administrativo para las Partes Conjuntas y el personal de la CPUC.
H2O America (NASDAQ: HTO)은 San Jose Water Company 및 캘리포니아 주의 기타 3개 상수도 사업자가 CPUC의 승인을 받아 2026년 비용자본 제출을 2027년 5월 1일로 연기했고, 연기 효과는 2028년 1월 1일부터 발효됩니다. 이 회사는 2027년까지 9.81%의 허용 ROE를 유지하되 Water Cost of Capital Mechanism(WCCM)이 Moody’s Aa Utility Bond Index에 따라 이를 조정할 수 있습니다. 9.81% ROE는 CPUC가 사전에 승인한 10.01%의 기본 ROE에서 WCMA와 관련된 20bp의 감소를 반영합니다. WCCM은 2028년 1월 1일까지 유지되며, 연기는 Joint Parties와 CPUC 직원의 행정 처리 비용을 줄이기 위한 목적입니다.
H2O America (NASDAQ: HTO) a déclaré que San Jose Water Company et trois autres services publics d'eau en Californie ont obtenu l'approbation de la CPUC pour différer leur dépôt prévu du Coût du Capital de 2026 au 1er mai 2027, la dérogation prenant effet le 1er janvier 2028. L'entreprise conservera un ROE autorisé de 9,81% jusqu'en 2027, à moins que le Water Cost of Capital Mechanism (WCCM) ne l'ajuste conformément à l'indice Moody's Aa Utility Bond Index. Le ROE de 9,81% reflète un ROE de base 10,01% approuvé auparavant par la CPUC, moins une réduction de 20 points de base liée au Water Conservation Memorandum Account (WCMA). Le WCCM reste en vigueur jusqu'au 1er janvier 2028, et le report vise à réduire les coûts de traitement administratif pour les Parties conjointes et le personnel de la CPUC.
H2O America (NASDAQ: HTO) teilte mit, dass die San Jose Water Company und drei weitere kalifornische Wasserversorger die Genehmigung der CPUC erhalten haben, ihre geplante Cost of Capital im Jahr 2026 zu verschieben bis zum 1. Mai 2027, wobei die Verschiebung ab dem 1. Januar 2028 wirksam wird. Das Unternehmen wird bis 2027 eine erlaubte ROE von 9,81% beibehalten, es sei denn, der Water Cost of Capital Mechanism (WCCM) passt ihn an den Moody’s Aa Utility Bond Index an. Die ROE von 9,81% spiegelt eine zuvor von der CPUC genehmigte Basis-ROE von 10,01% wider, abzüglich einer 20 Basispunkte-Reduktion in Verbindung mit dem Water Conservation Memorandum Account (WCMA). Der WCCM bleibt bis zum 1. Januar 2028 in Kraft, und die Verschiebung soll die administrativen Bearbeitungskosten für die Joint Parties und das CPUC-Personal senken.
H2O America (NASDAQ: HTO) قالت شركة San Jose Water Company وثلاثة مرافق مياه أخرى في كاليفورنيا إنها حصلت على موافقة CPUC لتأجيل تقديم تكلفة رأس المال للسنة 2026 حتى 1 مايو 2027، مع سريان التأجيل اعتباراً من 1 يناير 2028. ستظل الشركة محافظة على عائد حقوق المساهمين المسموح به 9.81% حتى عام 2027 ما لم يعدله آلية تكلفة رأس المال للمياه (WCCM) وفق مؤشر Moody’s Aa Utility Bond Index. يعكس ROE البالغ 9.81% ROE الأساسي المعتمد سابقاً من CPUC البالغ 10.01% ناقص انخفاض قدره 20 نقطة أساس مرتبط بـ WCMA. يبقى WCCM ساري المفعول حتى 1 يناير 2028، وتهدف التأجيل إلى تقليل تكاليف المعالجة الإدارية للأطراف المشتركة وموظفي CPUC.
- Allowed ROE held at 9.81% through 2027
- WCCM remains active until Jan. 1, 2028
- COC filing postponed to May 1, 2027, lowering 2026 administrative costs
- Base ROE reduced by 20 basis points via WCMA (from 10.01% to 9.81%)
- Formal COC review delayed until May 1, 2027, postponing regulatory reset
Insights
Deferral preserves the current allowed ROE and delays administrative cost work for both the company and CPUC through 2027.
The decision keeps San Jose Water Company on its current
This action reduces near‑term regulatory workload and administrative costs for both the Joint Parties and CPUC staff while maintaining rate certainty for customers through 2027. Key dependencies include any WCCM adjustments between now and
- Upholds San Jose Water’s current
9.81% allowed return on equity (ROE), which is the CPUC-approved10.01% base ROE prior to a 20-basis-point reduction related to the Water Conservation Memorandum Account (WCMA) - Timing for next cost of capital filing will be May 1, 2027, effective Jan. 1, 2028
- Water Cost of Capital Mechanism (WCCM) remains in place until Jan. 1, 2028
SAN JOSE, Calif., Nov. 19, 2025 (GLOBE NEWSWIRE) -- H2O America (NASDAQ: HTO) announced today that its wholly owned subsidiary, San Jose Water Company, along with three other California water utilities (the “Joint Parties”) received a letter dated Nov. 18, 2025, from the Executive Director of the California Public Utilities Commission (“CPUC”) granting the Joint Parties’ request to defer their scheduled 2026 Cost of Capital (“COC”) filings to May 1, 2027.
On Nov. 10, 2025, the Joint Parties filed a request for a one-year postponement of their COC filings otherwise scheduled to be filed on May 1, 2026. Pursuant to the CPUC’s rate case plan, the Joint Parties are required to file their COC applications every three years. The last COC decision was issued on June 29, 2023. The Joint Parties previously requested one-year deferments for 2025 and 2026, which were granted. Postponing the filing for one additional year alleviates administrative processing costs for both the Joint Parties and CPUC staff.
“This approval provides greater clarity and stability for our customers through 2027,” said San Jose Water Company President, Tanya Moniz-Witten. “We deeply appreciate the CPUC’s support and timely response, and we are confident this positions us well for continued success.”
The deferral includes a provision that the WCCM remains in place until Jan. 1, 2028. The WCCM allows the ROE to adjust up or down in accordance with the movement in the Moody’s Aa Utility Bond Index.
San Jose Water’s
About H2O America
H2O America is among the largest investor-owned pure-play water and wastewater utilities in the United States, providing life-sustaining and high-quality water service to over 1.6 million people. H2O America’s locally led and operated water utilities - San Jose Water Company in California, The Connecticut Water Company in Connecticut, The Maine Water Company in Maine, and SJWTX, Inc. (dba The Texas Water Company) in Texas - possess the financial strength, operational expertise, and technological innovation to safeguard the environment, deliver outstanding service to customers, and provide opportunities to employees. H2O America remains focused on investing in its operations, remaining actively engaged in its local communities, and delivering continued sustainable value to its stockholders. For more information about H2O America, please visit www.H2O-America.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws relating to future events and future results of H2O America and its subsidiaries that are based on current expectations, estimates, forecasts, and projections about H2O America and its subsidiaries and the industries in which H2O America and its subsidiaries operate and the beliefs and assumptions of the management of H2O America. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “estimates,” “anticipates,” “intends,” “seeks,” “plans,” “projects,” “may,” “should,” “will,” “approximately,” “strategy,” or the negative of those words or other comparable terminology. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.
The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the following factors: (1) the risks associated with the proposed transactions with Quadvest, including, the risk of the proposed transactions not closing on the anticipated timeline, or at all, the ability to obtain required regulatory approvals, and the ability to successfully integrate Quadvest’s operations and realize the projected financial and other benefits of the proposed transactions; (2) the effect of water, utility, environmental and other governmental policies and regulations, including regulatory actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures, PFAS and other decisions; (3) changes in demand for water and other services; (4) unanticipated weather conditions and changes in seasonality including those affecting water supply and customer usage; (5) the effect of the impact of climate change; (6) unexpected costs, charges or expenses; (7) our ability to successfully evaluate investments in new business and growth initiatives; (8) contamination of our water supplies and damage or failure of our water equipment and infrastructure; (9) the risk of work stoppages, strikes and other labor-related actions; (10) catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, hurricanes, terrorist acts, physical attacks, cyber-attacks, epidemic, or similar occurrences; (11) changes in general economic, political, legislative, business and financial market conditions; and (12) the ability to obtain financing on favorable terms, or at all (including the financing for the proposed transactions with Quadvest in a timely manner), which can be affected by various factors, including credit ratings, changes in interest rates, compliance with regulatory requirements, compliance with the terms and conditions of our outstanding indebtedness, and general market and economic conditions. The risks, uncertainties and other factors may cause the actual results, performance or achievements of H2O America to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Results for a quarter are not indicative of results for a full year due to seasonality and other factors. In addition, actual results, performance or achievements are subject to other risks and uncertainties that relate more broadly to our overall business, including those more fully described in our filings with the SEC, including our most recent reports on Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements are not guarantees of future performance, and speak only as of the date made, and H2O America undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
San Jose Water Media Contacts:
John B. Tang
Vice President of Regulatory Affairs
408.279.7933
John.Tang@sjwater.com
Liann Walborsky
Director of Corporate Communications
408.918.7247
Liann.Walborsky@sjwater.com
H2O America Investor Relations Contacts:
Ann P. Kelly
Chief Financial Officer and Treasurer
408.385.4752
Ann.Kelly@H2O-America.com
Jonathan Reeder
Senior Director of Treasury and Investor Relations
475.414.1034
Jonathan.Reeder@H2O-America.com
FAQ
What did H2O America (HTO) announce on November 19, 2025 about its cost of capital filing?
How long will San Jose Water’s allowed ROE of 9.81% remain in effect for HTO?
Why is San Jose Water’s ROE 9.81% instead of 10.01% for HTO?
What is the Water Cost of Capital Mechanism (WCCM) timeframe for HTO after the deferral?
When must H2O America (HTO) now file its next cost of capital application?
