Investor Presentaiton
First Quarter Revenue Discussion
2022 vs 2023 BILLED AND UNBILLED REVENUES
Due to the extremely wet winter in California, Q1 Cal Water sales fell 12% from Q1 2022
Weather also pushed unbilled revenue accrual down $5.8M
Also, in 2022, sales and production cost changes had been offset $12.1M by the WRAM/MCBA
In 2023, we anticipate that the effects of sales changes would be offset by the drought response
memorandum account (“DREMA”) and the Monterey-Style Revenue Adjustment Mechanism
("MWRAM"); however due to the delayed CPUC decision, we are unable to record these amounts.
• Estimated potential DREMA balance for q1*
Estimated potential MWRAM balance for q1*
REVENUE DEFERRAL
$6.5-7M
$9.5-11M
In accordance with GAAP, we defer revenue and cost related to regulatory balancing accounts not
projected to be recovered within 24 months. Accordingly, we deferred an additional $18.8M of
revenue, offset by an additional $15.4M of deferred costs, in Q1.
*DREMA is an authorized account but the value will be based on final GRC rates. MWRAM was requested in the 2021 GRC and was
not disputed by any other party to the proceeding. If approved, its value would also depend on final GRC rates. Ranges are current
estimates based on available information and may change as the GRC progresses. Due to the mechanisms' connection to customer
billings, first quarter estimates are not necessarily indicative of potential impacts in future quarters.
CALIFORNIA
WATER SERVICE GROUP
INVESTING FOR LIFE
INVESTOR
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