Washington Water receives UTC approval for a $178,000 revenue increase, adjusting rates over two years for infrastructure upgrades.
Quiver AI Summary
Washington Water Service, a subsidiary of California Water Service Group, has received approval for a $178,000 annual revenue increase from the Washington Utilities and Transportation Commission for its Stroh’s water system. The rate adjustments will be implemented in two phases to mitigate customer impact, with half of the increase effective immediately and the remainder anticipated by mid-2026. This revenue boost is attributed to recent upgrades to the water system infrastructure, including the replacement of pumps, the installation of a water quality sampling station, and safety improvements to water storage tanks. CEO Marty Kropelnicki emphasized the company's dedication to providing high-quality water service. New rates became effective on May 23, 2025.
Potential Positives
- Approval of a $178,000 annual revenue increase demonstrates regulatory support and allows for continued investment in infrastructure improvements.
- The phased approach to rate adjustment mitigates immediate financial impact on customers, showing consideration for customer concerns.
- Significant infrastructure upgrades enhance service reliability and quality, promoting long-term customer satisfaction and safety.
- The company’s strong commitment to community and environmental values reinforces its positive public reputation and business sustainability.
Potential Negatives
- Approval of the water rate increase may lead to customer dissatisfaction, as it represents an additional financial burden on consumers in the Stroh’s service area.
- Increased operating costs and the necessity for infrastructure upgrades could indicate underlying financial or operational challenges that the company is facing.
- The phased implementation of the rate increase suggests a potential anticipation of customer pushback or resistance to higher water rates.
FAQ
What revenue increase has Washington Water Service received approval for?
Washington Water Service received approval for an annual revenue increase of approximately $178,000 in its Stroh’s water system.
When will the new water rates take effect?
The new water rates became effective on May 23, 2025, with a phased implementation over two years.
Why is Washington Water Service increasing its rates?
The rate increase is due to upgrades in water infrastructure and rising operating costs since acquiring the Stroh’s system in late 2022.
What improvements have been made to the Stroh’s water system?
Improvements include replacing pumps, installing a water quality sampling station, and upgrading safety measures in the water storage system.
Who oversees Washington Water Service's operations?
The Washington Utilities and Transportation Commission (UTC) oversees and approves operational changes for Washington Water Service.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
GIG HARBOR, Wash., June 04, 2025 (GLOBE NEWSWIRE) -- Washington Water Service (Washington Water), a subsidiary of California Water Service Group (NYSE: CWT), has received approval from the Washington Utilities and Transportation Commission (UTC) to increase annual revenue by approximately $178,000 in its Stroh’s water system and adjust water rates accordingly. This increase in annual revenue will be phased in over two years to reduce the impact to customers, with rates reflecting half of the change effective now and the remainder expected to become effective in the second quarter of 2026.
This change is driven by upgrades made to the water system infrastructure since Washington Water acquired the Stroh’s system in late 2022 along with increased operating costs. Among significant investments made in the Stroh’s service area are:
- Replacement of a well pump, a motor, and two booster pumps to help increase pressure reliability.
- Installation of a new water quality sampling station.
- Safety improvements made to water storage tanks.
- Replacement of two wellhead meters designed to accurately record production data for the Department of Ecology and Department of Health.
“We are committed to providing quality, service, and value to our Stroh’s water system customers, and one important part of fulfilling this promise is by improving and maintaining the local water system infrastructure,” said Marty Kropelnicki, Group Chairman and CEO. “We believe these upgrades will help us continue to provide safe, clean, reliable drinking water to Stroh’s customers for years to come.”
New rates were effective as of May 23, 2025.
About California Water Service Group
California Water Service Group (NYSE: CWT) is the largest regulated water utility operating exclusively in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.1 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, Texas Water Service.
Group’s purpose is to enhance the quality of life for customers, communities, employees, and stockholders. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s nearly 1,300 employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The company has been named one of “America’s Most Responsible Companies” and one of the “World’s Most Trustworthy Companies” by Newsweek , a USA Top Workplace, and a Great Place to Work ® . More information is available at www.calwatergroup.com .
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