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California Updates & ESG Initiatives

California Updates 2025 - 2027 GRC application filed with the California Public Utilities Commission (CPUC) on January 2, 2024 Proposes 3-year $540 million CapEx program . · • • Addresses PFAS Reduces operating expense and greenhouse gas emissions through solar generation, energy storage systems to replace diesel generators, fleet electrification, and advanced acoustic leak detection Advances CPUC's Environmental and Social Justice Action Plan to Improve access to high-quality water service, climate resiliency, and economic and workforce development Group Insurance Balancing Account Captures difference between authorized and actual medical, dental, and opt-out insurance costs • Effective January 1, 2024 SJJJ SAN JOSE WATER WCMA and WCEMA Water Conservation Memorandum Account and Water Conservation Expense Memorandum Account Revenue and expense protection mechanisms requested due to water wholesaler's ongoing 15% conservation request Reauthorized in October 2023 and retroactive to April 20, 2023 WCMA use reduces ROE 20 basis points SJW Group 13
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