California Water Service : June 2024 Investor Presentations

California Water Service Group Investing for Life

June 2024 Investor Presentation

Forward-Looking Statements and

Other Important Information

This presentation 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 presentation 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, commits or variations of these words or similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements in this presentation include, but are not limited to, statements describing expectations regarding potential increases in revenue, capital investments or expenditures, depreciation or regulated rate base, impacts of the decision of the California Public Utilities Commission on Cal Water's 2021 General Rate Case, compliance with new PFAS regulations, sufficiency of cash to support capital investment and growth, customer growth, market size, and sustainability and citizenship efforts to deliver long-term value. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable but are subject to uncertainty and risks. Actual results may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results to be different than those expected or anticipated include, but are not limited to: our ability to integrate business acquisitions and operate them in an effective and accretive manner; governmental and regulatory commissions' decisions; consequences of eminent domain actions relating to our water systems; changes in regulatory commissions' policies and procedures; the outcome and timeliness of regulatory commissions' actions concerning rate relief and other actions; changes in water quality standards; changes in environmental compliance and water quality requirements; electric power interruptions; the impact of opposition to rate increases; our ability to recover costs; availability of water supplies; issues with the implementation, maintenance or security of our information technology systems; civil disturbances or terrorist threats or acts; the adequacy of our efforts to mitigate physical and cyber security risks and threats; the ability of our enterprise risk management processes to identify or address risks adequately; changes in customer water use patterns and the effects of conservation; the impact of weather, climate change, natural disasters, and actual or threatened public health emergencies; 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; the impact of market conditions and volatility on unrealized gains or losses on our operating results; risks associated with expanding our business and operations geographically; and other risks and unforeseen events described in our Annual Report on Form 10-K and other reports filed from time to time with the SEC. 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 presentation. 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. Nothing in this presentation constitutes an offer to sell, or a solicitation of an offer to buy, any securities or should be treated or relied upon as a recommendation or advice. A credit or environmental, social and governance (ESG) rating is not a recommendation to buy, sell or hold any securities, may be changed at any time by the applicable ratings agency and should be evaluated independently of any other information.

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Who We Are

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Our Company At-a-Glance

Company founded
60	Gallons of drinking
		water delivered
Employees

57 Years

	Gallons of waste-
Population served	water processed

Service connections	Contributed to charitable
organizations

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California Water Service Group: a leading publicly traded U.S. water utility providing high-quality water & wastewater services

Financial Profile

2023 revenue

$794.6M*

497,700

Total connections

0.3%

Year-over-year growth

Statistics as of March 31, 2024

3.0%

of consolidated

revenue

90.6%

of consolidated

revenue

38,000

Total connections

1.3%

Year-over-year growth

0.9%

of consolidated

revenue

11,400

Total connections

6.5%

Year-over-year growth

6,500

Total connections

4.8%

Year-over-year growth

0.3%

of consolidated

revenue

3,000

Total connections

27.3%

Year-over-year growth

5.2%

of consolidated

revenue

2023 net income

$51.9M*

$161M

Returned to shareholders in dividends over 3 most recent ended years

Global credit rating affirmed by S&P Global

A+/stable

First Mortgage Bonds rating

AA-

*2023 revenue and net

income impacted by delay
in 2021 CA General Rate
Case decision.	5

Our Business Model is Straightforward

Earn reasonable return on capital invested in infrastructure

Recover other

costs through reasonable regulatory policies and efficient operations

Add non-regulated income (water system operations, HomeServe, antenna leases)

97.7% regulated revenue (return on equity [ROE], rates, and investments set or approved by

state utilities commissions or municipalities)

California ROE currently set at 10.27%

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The Case for Investing in CWT

Growth

Strategic M&A

Capital Allocation	Corporate
	Responsibility

Leverage deep expertise to grow through capital investment and acquisitions

Increasing rate base has driven expansion

Opportunistically target new markets in high- growth regions

Achieving 2-2.5% annual growth via new customer acquisitions

Strong history of returning cash to shareholders through dividend policy

Declared 317th consecutive quarterly dividend; increased annual dividend for 57th consecutive time

Taking a science-based approach to reducing Scope 1 and 2 greenhouse gas emissions

Continuing to make investments and adhering to PFAS regulation

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Recent Events

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2021 GRC Successfully Resolved

Decision provides clarity for all stakeholders, while enabling CWT to continue to provide safe, reliable water service to customers throughout California

Final decision approved: March 7, 2024

Increases adopted revenues, after corrections, for 2023 by approximately $41.5 million, retroactive to 1/1/23; also potentially increases adopted revenues by up to approximately $30.0 million for 2024 and $30.6 million for 2025, subject to the California Public Utility Commission's (CPUC) earnings test and inflationary adjustments

Authorizes Cal Water to invest approximately $1.2 billion from 2021 through 2024 in water system infrastructure projects needed to continue providing safe, reliable water service to customers throughout CA, including approximately $160 million of infrastructure projects that may be submitted for recovery via CPUC's advice letter process; from 2021

• 2023, Cal Water capital investments totaled approximately $855 million

Approves progressive rate design intended to provide financial stability while benefiting low-income and low- water-using customers by decreasing cost of first 6 units of water consumed and increasing percentage of fixed costs recovered in service charge

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EPA Sets Limits for PFAS

Group believes we are well-positioned to meet new PFAS regulation

On April 10, 2024, EPA established:

MCLs

PFOA - 4 ppt

PFOS - 4 ppt

PFHxS - 10 ppt

PFNA - 10 ppt

GenX - 10 ppt

Combined Hazard Index

PFBS, PFHxS, PFNA, and

GenX - 1.0

• Cal Water, Hawaii Water, New Mexico Water, and Washington Water have rigorous, coordinated water quality assurance programs and protocols in place to test and monitor the water delivered to customers
• In CA and WA, Group's utilities have been complying with previously issued PFAS guidelines issued by state regulators
• On April 18, 2024, CPUC dismissed without prejudice Cal Water's application requesting authorization to modify previously approved PFAS-expense memorandum account to include capital investments related to PFAS compliance; CPUC instructed Cal Water to include PFAS capital investments in a future GRC or a separate application
• Despite CPUC decision, we have reaffirmed our commitment to investing an estimated $215.0 million in PFAS treatment across our operating utilities and working quickly to complete planned projects

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