California Updates & ESG Initiatives
California Updates
•
Water Cost of Capital Mechanism (WCCM) adjustment
effective January 1, 2024
.
.
Return on Equity (ROE) increase of 70 basis points (bps) to
10.01%, less 20 bps for restoration of the WCMA, for a new
ROE of 9.81%
Cost of Debt of 5.28%
Authorized Rate of Return (ROR) of 7.75% reflects 9.81% ROE
Cost of Capital filing deferment authorized by the CPUC
•
Filing deferment to May 1, 2025
Maintains WCCM for 2025
Advanced Metering Infrastructure installation 2024 - 2026
• $29.0 million investment projected in 2024
$100 million project outside of the general rate case (GRC) CapEx
SJJJ
SAN JOSE
WATER
WCCM Adjustment
Change in Moody's Aa bond
index of plus or minus 100 bps
between October 1 and
September 30 triggers WCCM
Adjustment
ROE is adjusted by 50% of the
change when the trigger is
reached
Cost of debt and ROR also
adjusted
SJW Group 14View entire presentation