• Upholds San Jose Water’s current 9.81% allowed return on equity (ROE), which is the CPUC-approved 10.01% base ROE prior to a 20-basis-point reduction related to the Water Conservation Memorandum Account (WCMA)
  • Timing for next cost of capital filing will be May 1, 2027, effective Jan. 1, 2028
  • Water Cost of Capital Mechanism (WCCM) remains in place until Jan. 1, 2028

SAN JOSE, Calif., Nov. 19, 2025 (GLOBE NEWSWIRE) -- H2O America (NASDAQ: HTO) announced today that its wholly owned subsidiary, San Jose Water Company, along with three other California water utilities (the “Joint Parties”) received a letter dated Nov. 18, 2025, from the Executive Director of the California Public Utilities Commission (“CPUC”) granting the Joint Parties’ request to defer their scheduled 2026 Cost of Capital (“COC”) filings to May 1, 2027.

On Nov. 10, 2025, the Joint Parties filed a request for a one-year postponement of their COC filings otherwise scheduled to be filed on May 1, 2026. Pursuant to the CPUC’s rate case plan, the Joint Parties are required to file their COC applications every three years. The last COC decision was issued on June 29, 2023. The Joint Parties previously requested one-year deferments for 2025 and 2026, which were granted. Postponing the filing for one additional year alleviates administrative processing costs for both the Joint Parties and CPUC staff.

“This approval provides greater clarity and stability for our customers through 2027,” said San Jose Water Company President, Tanya Moniz-Witten. “We deeply appreciate the CPUC’s support and timely response, and we are confident this positions us well for continued success.”

The deferral includes a provision that the WCCM remains in place until Jan. 1, 2028. The WCCM allows the ROE to adjust up or down in accordance with the movement in the Moody’s Aa Utility Bond Index.

San Jose Water’s 9.81% ROE will remain in effect through 2027 absent an adjustment by the WCCM.  As a reminder, the 9.81% ROE reflects our CPUC-approved 10.01% base ROE prior to a 20-basis-point reduction related to the WCMA.  The WCMA is a temporary revenue protection mechanism authorized by the CPUC due to a voluntary 15% water reduction request from San Jose Water’s water wholesaler because a large reservoir is offline for seismic dam improvements.

About H2O America

H2O America is among the largest investor-owned pure-play water and wastewater utilities in the United States, providing life-sustaining and high-quality water service to over 1.6 million people. H2O America’s locally led and operated water utilities - San Jose Water Company in California, The Connecticut Water Company in Connecticut, The Maine Water Company in Maine, and SJWTX, Inc. (dba The Texas Water Company) in Texas - possess the financial strength, operational expertise, and technological innovation to safeguard the environment, deliver outstanding service to customers, and provide opportunities to employees. H2O America remains focused on investing in its operations, remaining actively engaged in its local communities, and delivering continued sustainable value to its stockholders. For more information about H2O America, please visit www.H2O-America.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the federal securities laws relating to future events and future results of H2O America and its subsidiaries that are based on current expectations, estimates, forecasts, and projections about H2O America and its subsidiaries and the industries in which H2O America and its subsidiaries operate and the beliefs and assumptions of the management of H2O America. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “estimates,” “anticipates,” “intends,” “seeks,” “plans,” “projects,” “may,” “should,” “will,” “approximately,” “strategy,” or the negative of those words or other comparable terminology. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.

The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the following factors: (1) the risks associated with the proposed transactions with Quadvest, including, the risk of the proposed transactions not closing on the anticipated timeline, or at all, the ability to obtain required regulatory approvals, and the ability to successfully integrate Quadvest’s operations and realize the projected financial and other benefits of the proposed transactions; (2) the effect of water, utility, environmental and other governmental policies and regulations, including regulatory actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures, PFAS and other decisions; (3) changes in demand for water and other services; (4) unanticipated weather conditions and changes in seasonality including those affecting water supply and customer usage; (5) the effect of the impact of climate change; (6) unexpected costs, charges or expenses; (7) our ability to successfully evaluate investments in new business and growth initiatives; (8) contamination of our water supplies and damage or failure of our water equipment and infrastructure; (9) the risk of work stoppages, strikes and other labor-related actions; (10) catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, hurricanes, terrorist acts, physical attacks, cyber-attacks, epidemic, or similar occurrences; (11) changes in general economic, political, legislative, business and financial market conditions; and (12) the ability to obtain financing on favorable terms, or at all (including the financing for the proposed transactions with Quadvest in a timely manner), which can be affected by various factors, including credit ratings, changes in interest rates, compliance with regulatory requirements, compliance with the terms and conditions of our outstanding indebtedness, and general market and economic conditions. The risks, uncertainties and other factors may cause the actual results, performance or achievements of H2O America to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Results for a quarter are not indicative of results for a full year due to seasonality and other factors. In addition, actual results, performance or achievements are subject to other risks and uncertainties that relate more broadly to our overall business, including those more fully described in our filings with the SEC, including our most recent reports on Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements are not guarantees of future performance, and speak only as of the date made, and H2O America undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

San Jose Water Media Contacts:
John B. Tang
Vice President of Regulatory Affairs
408.279.7933
[email protected]

Liann Walborsky
Director of Corporate Communications
408.918.7247
[email protected]

H2O America Investor Relations Contacts:
Ann P. Kelly
Chief Financial Officer and Treasurer
408.385.4752
[email protected]

Jonathan Reeder
Senior Director of Treasury and Investor Relations
475.414.1034
[email protected]