California Water Service Group Announces Revenues and Earnings for Year-End and 4th Quarter 2010

California Water Service Group CWT today announced 2010 net income of $37.7 million, down 7.2% or $2.9 million from 2009, and diluted earnings per share of $1.81, a decrease of 7.4% or $0.14 per share over the prior year. Total revenue increased $11.0 million, or 2.5%, to $460.4 million in 2010. The net effect of the water revenue adjustment mechanism (WRAM) and the modified cost balancing account (MCBA) for the year was an additional $18.5 million in revenue, a $6.5 million increase over 2009. The WRAM is a ratemaking mechanism that decouples water sales from revenues and the MCBA is an account that allows California Water Service Company (Cal Water), a wholly owned subsidiary of California Water Service Group, to track and recover or refund changes in water production costs. Both the WRAM and the MCBA are designed to allow Cal Water to promote water efficiency and conservation.