Cal Water Receives CPUC Approval for Palm Mutual Acquisition Serving 63 Customers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
0mins
Should l Buy CWT?
Source: Newsfilter
- Acquisition Approval: California Water Service has received approval from the CPUC for its acquisition of Palm Mutual, which currently serves 63 residential customers, marking a significant step in expanding Cal Water's customer base.
- Infrastructure Upgrades: Cal Water intends to gradually upgrade Palm Mutual's infrastructure to ensure consistent and high-quality water service for customers, which will enhance customer satisfaction and strengthen the company's competitive position in the market.
- Customer Integration: Upon completion of the acquisition, Palm Mutual's customers will be integrated into Cal Water's Bakersfield District, which currently provides safe and reliable water to approximately 445,600 people, further expanding Cal Water's service network.
- Future Outlook: The acquisition is expected to close in the first quarter of 2026, subject to customary closing conditions, but this initiative will provide Cal Water with long-term customer growth potential.
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Analyst Views on CWT
Wall Street analysts forecast CWT stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 45.450
Low
51.00
Averages
53.00
High
55.00
Current: 45.450
Low
51.00
Averages
53.00
High
55.00
About CWT
California Water Service Group is a holding company that provides water utility and other related services in California, Washington, New Mexico, Hawaii and Texas through its subsidiaries. Its business is conducted through its operating subsidiaries and provides utility services. Its business consists of the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, and the provision of domestic and municipal fire protection services. It provides wastewater collection and treatment services, including treatment which allows water recycling. It also provides non-regulated water-related services under agreements with municipalities and other private companies. The non-regulated services include full water system operation, meter reading, and billing services. Non-regulated operations also include the lease of communication antenna sites, lab services and promotion of other non-regulated services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Corporate Mission: The company is committed to enhancing the quality of life for customers, communities, employees, and shareholders by responsibly investing in water infrastructure and sustainability initiatives, reflecting its role as the largest regulated water utility in the western United States.
- Honor Recognition: California Water Service Group has been recognized as one of
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See More
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See More
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- Ongoing Infrastructure Investment: This temporary rate hike will enable California Water Service to continue necessary infrastructure improvements during the review of its 2024 General Rate Case, mitigating the financial burden on customers due to delays in decision-making.
- Customer Burden Mitigation: The CEO of California Water Service emphasized that the interim rate increase will alleviate the potential for higher retroactive recovery surcharges that could arise from delayed decisions, ensuring customers are not unduly impacted by future rate adjustments.
- Extensive Service Coverage: As the largest subsidiary of California Water Service Group, which serves over 2.1 million people across California and other states, this interim rate increase will help maintain service quality and reliability in its extensive operational footprint.
See More
