Exhibit 99.1
         
(CALIFORNIA WATER SERVICE LOGO)   NEWS RELEASE

CALIFORNIA WATER SERVICE GROUP
  (CWT LOGO)
         
 
  1720 North First Street   April 28, 2010
 
  San Jose, CA 95112-4598   For Immediate Release
 
       
Contact:
  Marty Kropelnicki (408) 367-8200 (analysts)    
 
       
 
  Shannon Dean (310) 257-1435 (media)    
CALIFORNIA WATER SERVICE GROUP ANNOUNCES
FIRST QUARTER 2010 RESULTS
SAN JOSE, CA – California Water Service Group (NYSE: CWT) today announced net income of $2.0 million and earnings per share of $0.10 for the first quarter of 2010, compared to net income of $2.4 million and earnings per share of $0.12 for the first quarter of 2009.
     Revenue for the first quarter increased $3.7 million, or 4%, to $90.3 million. Rate increases added $4.3 million and sales to new customers added $0.6 million, while decreased usage by existing customers and other charges reduced revenue by $1.2 million.
     Total operating expenses for the first quarter of 2010 increased $2.2 million, or 3%, to $82.5 million. Water production costs increased $1.6 million, or 6%, due primarily to increases in wholesaler water prices and higher power costs. Administrative costs decreased $1.4 million, or 8%, to $17.4 million due to lower legal expense and other administrative costs compared with the prior year. Other operations expenses increased $1.1 million, or 9%, to $13.6 million, as a result of increases in expenses for water treatment, water quality, and costs associated with water distribution systems.

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     Maintenance expense increased 7%, or $0.3 million, to $4.9 million, compared to $4.6 million in the same period last year. Depreciation expense increased $0.6 million, or 6%, to $10.8 million, due to increases in utility plant. Taxes other than income decreased $0.2 million, or 5%, to $3.9 million.
     Other income, net of income taxes, decreased $0.6 million to a net loss of $0.1 million. The largest single component of the change was due to business development expenses in the regulated utility business. Interest expense increased $1.3 million, or 30%, to $5.7 million, due to the debt issuance in April 2009.
     According to President and Chief Executive Officer Peter C. Nelson, 1st quarter 2010 results were in line with management’s expectations.
     “We are in the third year of a three-year rate case cycle in California, which as planned, resulted in lower rate relief for the first quarter of 2010. We will continue to work diligently to control costs while providing excellent service, both of which will benefit stockholders and rate payers in 2010 and beyond,” Nelson said.
     All stockholders and interested investors are invited to listen to the 2010 first quarter conference call on April 29, 2010, at 11:00 a.m. (EDT), by dialing 1-866-961-7942 and keying in ID# 1442193. A replay of the call will be

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available from 2:00 p.m. (EDT) Thursday, April 29, 2010, through June 28, 2010 at 888-266-2081, ID# 1442193. The call, which will be hosted by President and CEO, Peter Nelson and Vice President and Chief Financial Officer, Martin A. Kropelnicki, will also be webcast under the investor relations tab at www.calwatergroup.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., CWS Utility Services, and HWS Utility Services, LLC. Together these companies provide regulated and non-regulated water service to nearly 2 million people in 100 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 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, but are not limited to: 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

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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, as well as the annual 10-K, Quarterly 10-Q, and other reports filed from time-to-time with the Securities and Exchange Commission (SEC). The Company assumes no obligation to provide public updates of forward-looking statements.
     Additional information is available at our Web site at www.calwatergroup.com.
     Attachments (2).
###
Source: California Water Service Group

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CALIFORNIA WATER SERVICE GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited
(In thousands, except per share data)
                 
    March 31,     December 31,  
    2010     2009  
ASSETS
               
Utility plant:
               
Utility plant
  $ 1,749,688     $ 1,709,062  
Less accumulated depreciation and amortization
    (522,508 )     (510,985 )
 
           
Net utility plant
    1,227,180       1,198,077  
 
           
 
               
Current assets:
               
Cash and cash equivalents
    11,352       9,866  
Receivables
               
Customers
    19,506       25,567  
Regulatory balancing accounts
    11,772       10,513  
Other
    6,829       9,043  
Unbilled revenue
    12,321       13,417  
Materials and supplies at average cost
    5,807       5,530  
Taxes, prepaid expense, and other assets
    22,696       18,305  
 
           
Total current assets
    90,283       92,241  
 
           
 
               
Other assets:
               
Regulatory assets
    211,802       204,104  
Goodwill
    2,615       2,615  
Other assets
    30,569       28,544  
 
           
Total other assets
    244,986       235,263  
 
           
 
  $ 1,562,449     $ 1,525,581  
 
           
 
               
CAPITALIZATION AND LIABILITIES
               
Capitalization:
               
Common stock, $.01 par value
  $ 208     $ 208  
Additional paid-in capital
    215,800       215,528  
Retained earnings
    200,738       204,898  
 
           
Total common stockholders’ equity
    416,746       420,634  
Long-term debt, less current maturities
    381,048       374,269  
 
           
Total capitalization
    797,794       794,903  
 
           
 
               
Current liabilities:
               
Current maturities of long-term debt
    12,987       12,953  
Short-term borrowings
    19,100       12,000  
Accounts payable
               
Trade and other
    43,058       43,689  
Regulatory balancing accounts
    2,104       2,430  
Accrued interest
    9,101       4,258  
Accrued expenses and other liabilities
    33,056       35,028  
 
           
Total current liabilities
    119,406       110,358  
 
               
Unamortized investment tax credits
    2,318       2,318  
Deferred income taxes, net
    90,806       91,851  
Pension and postretirement benefits other than pensions
    143,723       137,127  
Regulatory liability and Other
    90,946       85,780  
Advances for construction
    186,045       185,027  
Contributions in aid of construction
    131,411       118,217  
 
           
 
  $ 1,562,449     $ 1,525,581  
 
           

 


 

CALIFORNIA WATER SERVICE GROUP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Unaudited
(In thousands, except per share data)
For the Three-Months ended:
                 
    March 31     March 31  
    2010     2009  
Operating revenue
  $ 90,272     $ 86,613  
 
           
Operating expenses:
               
Operations:
               
Water production costs
    30,454       28,868  
Admistrative and General
    17,444       18,861  
Other operations
    13,567       12,456  
Maintenance
    4,951       4,635  
Depreciation and amortization
    10,792       10,198  
Income taxes
    1,403       1,232  
Property and other taxes
    3,903       4,088  
 
           
Total operating expenses
    82,514       80,338  
 
           
 
               
Net operating income
    7,758       6,275  
 
           
 
               
Other income and expenses:
               
Non-regulated revenue
    3,422       2,881  
Non-regulated expenses
    (3,546 )     (2,641 )
Gain on sale of non-utility property
          603  
Income taxes (expense) benefit on other income and expenses
    55       (338 )
 
           
Net other income (expense)
    (69 )     505  
 
           
 
               
Interest expense:
               
Interest Expense
    6,490       5,038  
Less: capitalized interest
    (819 )     (679 )
 
           
Net interest expense
    5,671       4,359  
 
           
 
               
Net income
  $ 2,018     $ 2,421  
 
           
 
               
Earnings per share
               
Basic
  $ 0.10     $ 0.12  
 
           
Diluted
  $ 0.10     $ 0.12  
 
           
Weighted average shares outstanding
               
Basic
    20,778       20,730  
 
           
Diluted
    20,793       20,759  
 
           
Dividends per share of common stock
  $ 0.2975     $ 0.2950