SAN JOSE, Calif., March 1, 2023 (GLOBE NEWSWIRE) — California Water Service Group CWT (“Company” or “CWT”) today announced net income attributable to CWT of $96.0 million and diluted earnings per share of $1.77 for 2022, compared to net income attributable to CWT of $101.1 million and diluted earnings per share of $1.96 in 2021.

The $5.1 million decrease in net income was primarily due to a $11.0 million decrease in unrealized gains on investments in nonqualifying benefit plans and a $1.1 million increase in funding costs. In addition, operating expenses increased by $54.6 million primarily due to increases in other operating expenses by $29.8 million, water production costs by $7.8 million, general and administrative expenses by 6, $0 million, depreciation and amortization charges by $5.9 million, income taxes by $0.5 million and property and other taxes by $2.6 million and maintenance costs of $2.1 million. These operating expense increases were offset by a $55.5 million increase in operating income primarily due to rate increases of $34.5 million, a $16.5 million change in deferred income and an increase in accrued , unaccounted for revenue by $1.7 million. In addition, the company recorded a $2.7 million gain on a proprietary life insurance policy.

The Company considers changes in unrealized gains on non-qualified pension plans, company-owned life insurance proceeds and accrued unaccounted income to be factors outside of the Company’s immediate control. Seasonal weather patterns and the number of unaccounted days were typically the main drivers of accrued unaccounted revenue.

President & Chief Executive Officer Martin A. Kropelnicki said 2022 financial results were in line with expectations given the challenges of regulatory delays, inflation and other factors beyond the company’s control.

“I am proud of everything we have achieved despite these challenges. We have complied with all applicable water quality standards to protect…