SOURCE: California Water Service Group

California Water Service Group

March 30, 2011 17:35 ET

Cal Water Stresses Need for Water-Use Efficiency Despite Governor's Recision of Drought Declaration

SAN JOSE, CA--(Marketwire - March 30, 2011) - California Water Service Company (Cal Water) is urging its customers to continue water conservation efforts despite today's announcement by the governor that the state is no longer in a drought. 

According to Cal Water, the end of the current drought means a short-term respite from supply challenges, but it doesn't solve long-term water supply challenges related to the state's growing population, heightened environmental concerns, and issues with state-wide water infrastructure. 

"We applaud our customers for their water conservation efforts and encourage them to keep at it. We need to continue to work together to achieve the 20% reduction in per capita water use by 2020 as required by state law," said Thomas Smegal, Cal Water's Vice President of Regulatory Matters and Corporate Relations. 

According to Smegal, Cal Water has significantly expanded its conservation programs. Cal Water's public awareness programs include radio messages throughout the state and participation in Disney's Planet Challenge program for elementary school children. The utility also offers low-water-using fixtures, rebates, and a broad range of programs to customers. 

"We are relieved that the current drought is officially over, but the reality is that California still faces long-term supply challenges. We hope our customers will continue to take advantage of the programs we offer to help them use water more efficiently," Smegal said. 

Cal Water serves about 2 million people in California and has service areas as far north as Chico and as far south as the Palos Verdes Peninsula. For more information, visit www.calwater.com.

This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 ("Act"). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" treatment established by the Act. Forward-looking statements are based on currently available information, expectations, estimates, assumptions and projections, and management's judgment about the Company, the water utility industry and general economic conditions. Such words as expects, intends, plans, believes, estimates, assumes, anticipates, projects, predicts, forecasts or variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not guarantees of future performance. They are subject to uncertainty and changes in circumstances. Actual results may vary materially from what is contained in a forward-looking statement. Factors that may cause a result different than expected or anticipated include but are not limited to: governmental and regulatory commissions' decisions, including decisions on proper disposition of property; changes in regulatory commissions' policies and procedures; the timeliness of regulatory commissions' actions concerning rate relief; new legislation; changes in accounting valuations and estimates; the ability to satisfy requirements related to the Sarbanes-Oxley Act and other regulations on internal controls; electric power interruptions; increases in suppliers' prices and the availability of supplies including water and power; fluctuations in interest rates; changes in environmental compliance and water quality requirements; acquisitions and our ability to successfully integrate acquired companies; the ability to successfully implement business plans; changes in customer water use patterns; the impact of weather on water sales and operating results; access to sufficient capital on satisfactory terms; civil disturbances or terrorist threats or acts, or apprehension about the possible future occurrences of acts of this type; the involvement of the United States in war or other hostilities; restrictive covenants in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt or pay dividends; and, other risks and unforeseen events. When considering forward-looking statements, you should keep in mind the cautionary statements included in this paragraph. The Company assumes no obligation to provide public updates of forward-looking statements.

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San Jose, CA 95112

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