Exhibit 99 NEWS RELEASE [CALIFORNIA WATER SERVICE GROUP SEAL] [CWT Listed NYSE OBJECT OMITTED] CALIFORNIA WATER SERVICE GROUP 1720 North First Street San Jose, CA 95112-4598 October 22, 2003 For Immediate Release Contact: Richard Nye (408) 367-8216 (analysts) Shannon Dean (310) 257-1435 (media) 03GO9 CAL WATER ANNOUNCES 12% INCREASE IN THIRD QUARTER 2003 NET INCOME; BOARD DECLARES 236th CONSECUTIVE QUARTERLY DIVIDEND - -------------------------------------------------------------------------------- SAN JOSE, CA - California Water Service Group (NYSE : CWT) today announced third quarter net income of $8.6 million and earnings of $0.53 per share, compared to net income of $7.7 million and earnings of $0.50 per share in the third quarter of 2002. Revenue for the third quarter increased $6.8 million or 8% to $88.2 million. Higher water usage by existing customers added $1.5 million, rate increases added $3.2 million, and sales to new customers added $2.0 million, $.9 million of which is attributable to customers added with the acquisition of the Kaanapali Water Corporation in Hawaii. According to President and CEO Peter C. Nelson, securing fair and timely rate relief continues to be a key driver of the Company's financial performance. "Our approach in the rate setting process is beginning to yield results. We will continue our focus in this area, because it is critical to our continued success," Nelson said. 3 Third quarter revenues reflect approval by the California Public Utilities Commission (Commission) of the Company's 2001 rate cases. In its decision, the Commission granted an 8.9% rate of return on rate base for 14 of the Company's California Districts and approved rate increases that will add $12.8 million to annual revenues. The Company began charging the new rates on September 9, 2003. Pursuant to a previous decision to establish April 3, 2003 as an effective date for the new rates, the Commission also authorized the Company to collect $5.0 million in surcharges for the period from April 3, 2003 to September 9, 2003, which will be collected over a 12- month period. On October 16, 2003, the Commission also approved the Company's request to recover an annual $4.2 million in costs associated with the Bakersfield Treatment Plant. That decision will add $.3 million to revenues in the fourth quarter of 2003 and $4.2 million to revenues in 2004. Pending applications to the Commission include general rate case filings made in November 2002 and January 2003. In the third quarter of 2003, the Company also requested recovery of $6 million in "balancing-type memorandum accounts," which primarily reflect electricity rate increases that were not included in rates. The Company cannot predict the amount or the timing of CPUC decisions on pending applications. Higher revenues in the third quarter of 2003 were partially offset by an 8% or $5.8 million increase in total operating expenses. Water production costs, which consist of purchased water, power, and pump taxes, increased 8%, reflecting increases in water purchases and higher rates for purchased water as well as a 7% increase in power costs. Maintenance expense increased 5% because more repairs were made to pumping 4 equipment, water lines, and services. Depreciation expense increased 11% due to capital expenditures. Other operating costs increased 7%, primarily due to increases in payroll, related benefit costs, and changes made to the pension plan effective January 1, 2003. At their meeting today, the Directors declared a dividend on common stock in the amount of $0.28125 per share, which is the 236th consecutive quarterly dividend. It is payable on November 14, 2003, to stockholders of record on October 31, 2003. The regular dividend on Series C preferred stock was also declared. On Thursday, October 23, 2003, at 1 p.m. Pacific Standard Time (4 p.m. Eastern Standard Time), the Company will conduct a teleconference call, at which time management will provide comments about third quarter 2003 operating results and other pertinent matters. Any stockholder or interested investor can listen to the teleconference or a replay. The dial-in number to access the teleconference is 1-800-482-2225, call ID #266638. Additional information about the call, including replay information, is available at the Company's web site, at www.calwater.com. California Water Service Group is the parent company of California Water Service Company, Washington Water Service Company, New Mexico Water Service Company, Hawaii Water Service Company, Inc. and CWS Utility Services. Together these companies provide regulated and non-regulated water service to over 2 million people in 99 California, Washington, New Mexico and Hawaii communities. Group's common stock trades on the New York Stock Exchange under the symbol "CWT". This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 ("Act"). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" treatment established by the Act. Forward-looking statements are based on currently available information, expectations, estimates, assumptions and 5 projections, and management's judgment about the Company, the water utility industry and general economic conditions. Such words as expects, intends, plans, believes, estimates, assumes, anticipates, projects, predicts, forecasts or variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not guarantees of future performance. They are subject to uncertainty and changes in circumstances. Actual results may vary materially from what is contained in a forward-looking statement. Factors that may cause a result different than expected or anticipated include: governmental and regulatory commissions' decisions; changes in regulatory commissions' policies and procedures; the timeliness of regulatory commissions' actions concerning rate relief; new legislation; electric power interruptions; increases in suppliers' prices and the availability of supplies including water and power; fluctuations in interest rates; changes in environmental compliance and water quality requirements; acquisitions and our ability to successfully integrate acquired companies; the ability to successfully implement business plans; changes in customer water use patterns; the impact of weather on water sales and operating results; access to sufficient capital on satisfactory terms; civil disturbances or terrorist threats or acts, or apprehension about the possible future occurrences of acts of this type; the involvement of the United States in war or other hostilities; 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; and, other risks and unforeseen events. When considering forward-looking statements, you should keep in mind the cautionary statements included in this paragraph. The Company assumes no obligation to provide public updates of forward-looking statements. Additional information is available at our Web site at www.calwater.com. Attachments (3). 6 ### CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATED BALANCE SHEETS