What changed in this filing

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Item 1. Business

2023-02-24 compared with 2022-02-28 · 197 added, 224 removed, 251 unchanged (63% of the section changed)

5 unchanged sentences

As part of a reorganization on February 8, 1985, SJWC became a wholly owned subsidiary of SJW Group.

SJWC is a public utility in the business of providing water service to approximately 231,000 connections that serve a population of approximately one million people in an area comprising approximately 139 square miles in the metropolitan San Jose, California area.

SJWC is a public utility in the business of providing water service in the metropolitan San Jose, California area.

• SJWNE LLC, a Delaware limited liability company, was formed in 2019, and is a wholly-owned subsidiary of SJW Group.

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is a holding company with four wholly-owned subsidiaries.

The Connecticut Water Company (“Connecticut Water”) and The Maine Water Company (“Maine Water”) are public utilities in the business of providing water service to approximately 140,000 connections that serve a population of approximately 456,000 people in 81 municipalities throughout Connecticut and Maine and more than 3,000 wastewater connections in Southbury, Connecticut.

The Connecticut Water Company (“Connecticut Water”) and The Maine Water Company (“Maine Water”) are public utilities in the business of providing water service throughout Connecticut and Maine.

The remaining two subsidiaries are Chester Realty, Inc., a real estate company in Connecticut, and New England Water Utility Services, Inc.

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• SJWTX, Inc.

was incorporated in the State of Texas in 2005.

is doing business as Canyon Lake Water Service Company (“CLWSC”).

CLWSC is a public utility in the business of providing water service to approximately 24,000 service connections that serve approximately 70,000 people.

CLWSC’s service area comprises more than 266 square miles in the southern region of the Texas Hill Country in Bandera, Blanco, Comal, Hays, Kendall, Medina and Travis counties, the growing region between San Antonio and Austin, Texas.

has a 25% interest in Acequia Water Supply Corporation (“Acequia”).

Acequia has been determined to be a variable interest entity within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 810, “Consolidation” with SJWTX, Inc.

(“SJWTX”) was incorporated in the State of Texas in 2005.

SJWTX is doing business as Canyon Lake Water Service Company.

In 2022, SJWTX filed and was approved with the State of Texas an assumed named certificate to operate under the name The Texas Water Company.

SJWTX is a public utility in the business of providing water service in the southern region of the Texas Hill Country in Bandera, Blanco, Comal, Hays, Kendall, Medina and Travis counties, the growing region between San Antonio and Austin, Texas.

SJWTX has a 25% interest in Acequia Water Supply Corporation (“Acequia”).

Acequia has been determined to be a variable interest entity within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation” with SJWTX.

as the primary beneficiary.

As a result, Acequia has been consolidated with SJWTX, Inc.

On December 17, 2021, CLWSC completed its acquisition of Kendall West Utility and Bandera East Utility, companies that provide water services, including wastewater and recycled water services in Kendall, Bandera and Medina counties which are located in south central Texas.

Kendall West Utility and Bandera East Utility, together, added approximately 1,600 service connections that serve a population of approximately 5,000 people in a service area approximately 19 square miles to CLWSC’s operations.

SJWTX, Inc is undergoing a corporate reorganization to separate regulated operations from non-tariffed activities.

In November 2021, SJWTX Holdings, Inc.

As a result, Acequia has been consolidated with SJWTX.

SJWTX is undergoing a corporate reorganization to separate regulated operations from non-tariffed activities.

In 2021, SJWTX Holdings, Inc.

(“SJWTX Holdings”) and Texas Water Operation Services LLC (“TWOS”) were formed for the purpose of effecting a corporate reorganization of our water services organization in Texas.

TWOS was created for non-tariffed operations and is wholly-owned by SJWTX Holdings.

SJWTX Holdings is a wholly-owned subsidiary of SJW Group, incorporated to hold the investments in SJWTX, Inc.

In addition, in 2022, SJWTX Holdings intends to create a new subsidiary to hold future wholesale water supply assets.

SJWTX Holdings is a wholly-owned subsidiary of SJW Group, incorporated to hold the investments in SJWTX and TWOS.

SJWTX Holdings intends to create a new subsidiary to hold future wholesale water supply assets in 2023.

• SJW Land Company was incorporated in 1985.

SJW Land Company owns undeveloped land in California and Tennessee and operates commercial buildings in Tennessee.

Together, SJWC, Connecticut Water, CLWSC, Maine Water and NEWUS, are referred to as “Water Utility Services.”

SJW Land Company and and Chester Realty, Inc.

Together, SJWC, Connecticut Water, SJWTX, Maine Water and NEWUS, are referred to as “Water Utility Services.”

SJW Land Company and Chester Realty, Inc.

are collectively referred to as “Real Estate Services.”

Regulation and Rates

Water Utility Services are subject to rate regulation based on cost recovery and meets the criteria of accounting guidance for rate-regulated operations, which considers the timing of the recognition of certain revenues and expenses.

Water Utility Services, excluding non-tariffed activities, are subject to rate regulation based on cost recovery and meets the criteria of accounting guidance for rate-regulated operations, which considers the timing of the recognition of certain revenues and expenses.

SJW Group’s consolidated financial statements reflect the effects of the rate-making process.

The rate-making process is intended to provide revenues sufficient to recover normal operating expenses, provide funds for replacement of water infrastructure and produce a fair and reasonable return on stockholder common equity.

SJW Group’s regulated operations financing activity is designed to

achieve capital structures consistent with regulatory guidelines in the locations where the companies operate.

SJW Group’s regulated operations

financing activity is designed to achieve capital structures consistent with regulatory guidelines in the locations where the companies operate.

The following summarizes each state’s authorized rates and capital structure as of December 31, 2022:

California Connecticut Texas (a) Maine (a)

California Connecticut Texas Maine (a)

Authorized capital structure (debt/equity) 47% / 53% 47% / 53% 42% / 58% 50% / 50%

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Authorized rate base (in millions) $1,028.7 $580.9 $43.3 $129.6

Estimated rate base at year-end (in millions) $1,023.1 $613.6 $95.1 $87.6

Estimated rate base at year-end (in millions) (b) $1,074.9 $656.3 $92.0 $157.9

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(a) Represents averages over water systems operating in the state.

(b) An approximation of rate base which includes net utility plant not yet included in rate base pending rate case filings and outcomes.

California Regulatory Affairs

4 unchanged sentences

General rate applications are normally filed and processed during the last year covered by the most recent general rate case as required by the CPUC in order to avoid any gaps in regulatory decisions on general rate adjustments.

Actual revenue received may be higher or lower than the revenue requirement due to a number of factors including actual customer counts, usage or other regulatory factors in force at the time.

Cost of capital adjustments are rate adjustments resulting from the CPUC’s usual tri-annual establishment of a reasonable rate of return for SJWC’s capital investments.

3 unchanged sentences

The purpose of balancing and memorandum accounts is to track the under-collection or over-collection associated with such expense changes and activities for future recovery or refund considerations.

On March 17, 2020, the CPUC ordered its regulated water utilities to halt customer disconnection activities in connection with the COVID-19 pandemic.

On April 2, 2020, California Governor Gavin Newsom issued Executive Order N-42-20 suspending customer disconnection activities until further notice.

On April 16, 2020, the CPUC issued Resolution M-4842 directing utilities to implement emergency customer protections to assist customers such as waiving reconnection deposits, offering payment arrangements, and suspending disconnections for nonpayment.

This resolution was effective for up to one year, or April 15, 2021, with the option to extend.

On February 11, 2021, the CPUC approved Resolution M-4849 extending customer protections required in Resolution M-4842 through June 30, 2021.

The resolution also requires water utilities to develop a transition plan regarding shutoffs and terminations with customers once the moratorium ends.

On April 1, 2021, SJWC filed Advice Letter 560 which includes such plan and the filing was approved on June 16, 2021.

On June 11, 2021, Governor Newsom issued Executive Order N-08-21 which initially ended the suspension on customer disconnection activities on September 30, 2021.

On June 16, 2021, the CPUC directed its regulated water utilities to extend the suspension on customer disconnection activities through September 30, 2021, in response to the Governor’s order.

On June 23, 2021, SJWC filed Advice Letter 565 to extend Resolution M-4849’s emergency customer protections through September 30, 2021.

This advice letter was approved on July 1, 2021.

On July 20, 2021, the CPUC directed its regulated water utilities to continue to suspend customer disconnection activities until the sooner of further notice and direction from the CPUC or until February 1, 2022.

On September 23, 2021, Governor Newsom approved Senate Bill 155, which included a provision extending the water shutoff moratorium through December 31, 2021.

SJWC filed Advice Letter No.

556 on November 16, 2020, with the CPUC requesting authorization to increase its revenue requirement by $11.8 million or 3.04% in 2021 for the final escalation year authorized in our 2018 General Rate Case Decision No.

18-011-025 which established rates for 2019, 2020, and 2021.

This advice letter was approved on December 17, 2020, and new rates became effective January 1, 2021.

On January 4, 2021, SJWC filed General Rate Case Application No.

21-01-003 requesting authority for an increase of revenue of $51.6 million or 13.35% in 2022, $16.9 million or 3.88% in 2023, and $19.2 million or 4.24% in 2024.

The application also includes requests to recover $18.5 million from balancing and memorandum accounts, authorization for a $435.0 million capital budget, further alignment between actual and authorized usage, and a shift to greater revenue collection in the service charge.

The application will undergo a year-long review process and new rates, if approved, are expected to be effective by the second quarter of 2022.

Due to the processing delay, SJWC filed Advice Letter No.

573 on December 30, 2021, to request interim rates effective January 1, 2022, which will allow SJWC to retroactively apply approved rates to January 1, 2022.

Interim rates are proposed to be set equal to present rates in order to avoid customer confusion and short-term bill changes.

This advice letter was approved with an effective date of January 1, 2022.

SJWC and the Public Advocates Office filed a settlement agreement resolving all issues in the proceeding on January 13, 2022, which will be considered by the CPUC for adoption.

The settlement recognizes the need for continued investments in the water system to deliver safe and reliable water service.

Additionally, it further aligns authorized and actual consumption, particularly for business customers, addresses our water supply mix challenge, and provides greater revenue recovery in the fixed charge.

Carrying balances of the balancing and memo accounts earn a rate of return based on treasury rates.

On May 3, 2021, SJWC filed Application No.

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In addition, the request seeks to adjust SJWC’s currently authorized capital structure of approximately 47% debt and 53% equity to approximately 45% debt and 55% equity.

If approved, rates are expected to be effective in the third quarter of 2022.

On May 27, 2021, SJWC filed Advice Letter No.

561/561A with the CPUC requesting authorization to increase revenue by $17.3 million or 4.34% to recover the increases to purchased potable water charges, the groundwater extraction fee, and purchased recycled water charges implemented by Santa Clara Valley Water District (“Valley Water”) and South Bay Water Recycling.

This advice letter was approved with an effective date of July 1, 2021.

On June 9, 2021, Valley Water declared a water shortage emergency and mandated its retailers to reduce consumption by 15% based on 2019’s volume.

On June 18, 2021, SJWC filed Advice Letter No.

563 with the CPUC to activate Stage 3 of its Rule 14.1, Water Shortage Contingency Plan, in response to Valley Water’s declaration of drought emergency and call for 15% mandatory conservation.

If approved, new rates are expected to be effective in the second quarter of 2023.

On December 6, 2019, SJWC filed Application No.

19-12-002 to deploy Advanced Metering Infrastructure (“AMI”) throughout its service area.

On August 5, 2021, an all-party settlement agreement was submitted to the CPUC for adoption that would authorize the deployment of AMI outside of the capital budget requested in the SJWC’s General Rate Case Application No.

21-01-003 (“2022 GRC”).

A final decision approving the settlement agreement was issued on June 10, 2022.

SJWC filed Advice Letter No.

577 on May 24, 2022 to increase revenue requirement by $24.3 million or 5.9% to offset the increases to purchased potable water charges, the groundwater extraction fee, and purchased recycled water charges from its water wholesalers effective July 1, 2022.

Advice Letter No.

564 was also filed on June 9, 2021, to establish a Water Conservation Memorandum Account to track the revenue impact of authorized versus actual water consumption and the incremental expenses required to implement our mandatory water conservation plan.

Similar memorandum accounts were authorized during the previous drought.

Advice Letters No.

564 and 563 were approved with the effective dates of July 20, 2021, and August 5, 2021, respectively.

On August 5, 2021, SJWC filed Advice Letter No.

567 with the CPUC requesting authorization to update its Drought Allocations and Drought Surcharges program contained within its Schedule 14.1.

This filing updates the program developed during the drought of 2014-2017.

577 was approved with an effective date of July 1, 2022.

The CPUC approved the settlement of 2022 GRC on October 6, 2022 and issued Decision No.

22-10-005 (“2022 GRC Decision”) on October 11, 2022.

SJWC received authority for an increase of revenue requirement by $25.1 million or 6.03% in 2022, $13.0 million or 2.94% in 2023, and $16.1 million or 3.56% in 2024.

The application included requests to recover $18.2 million from balancing and memorandum accounts and authorization for a $350 million capital budget.

Additionally, it further aligns authorized and actual consumption, particularly for business customers, addresses the water supply mix variability, and provides greater revenue recovery in the fixed charge.

The approved revenue increase for 2022 is effective retrospectively to January 1, 2022.

SJWC filed Advice Letter No.

581 on October 12, 2022 to recover $18.2 million in balancing and memorandum accounts in accordance with the 2022 GRC Decision.

The advice letter was approved with an effective date of November 11, 2022.

SJWC filed Advice Letter No.

582 on October 12, 2022 to refund $19.9 million accumulated in its Water Conservation Memorandum Account (“WCMA”) and its Water Conservation Expense Memorandum Account through August 31, 2022.

This refund amount will offset the $18.2 million requested in Advice Letter No.

581 resulting in a net refund to customers of $1.7 million.

Netting the two balances against each other allows for immediate recovery of the balancing and memorandum accounts and results in less confusion on customer bills.

Advice Letter No.

567 was approved with an effective date of September 6, 2021.

This approval does not authorize program activation.

On October 15, 2021, SJWC filed Advice Letter No.

569 with the CPUC requesting authorization to activate Schedule 14.1 effective November 15, 2021, as approved in Advice Letter No.

The drought surcharges collected will be used to offset the revenue losses tracked in the Water Conservation Memorandum Account authorized in Advice Letter No.

This advice letter was approved with an effective date of November 15, 2021.

582 was approved with an effective date of November 11, 2022.

SJWC filed Advice Letter No.

583 on October 13, 2022 to increase revenue requirement by $25.1 million or 6.03% and implement new water rates in accordance with the 2022 GRC Decision.

Advice Letter No.

583 was approved with an effective date of November 1, 2022.

SJWC filed Advice Letter No.

585 on November 10, 2022 to recover $20.6 million in the Interim Rates Memorandum Account in accordance with the 2022 GRC Decision.

Advice Letter 585 was approved with an effective date of January 1, 2023.

SJWC filed Advice Letter No.

586 on November 18, 2022 to increase revenue requirement by $18.4 million or 4% for the escalation year increase in accordance with the 2022 GRC Decision.

Advice Letter No.

586 was approved with an effective date of January 1, 2023.

Connecticut Regulatory Affairs

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PURA allows the Connecticut regulated operations to add surcharges to customers’ bills in order to recover certain costs associated with approved eligible capital projects through the Water Infrastructure Conservation Adjustment (“WICA”) in between full rate cases, as well as approved surcharges for the Water Revenue Adjustment (“WRA”).

Connecticut Water mitigates the risk associated with changes in demand through a PURA approved WRA mechanism.

The WRA is used to reconcile actual water demands with the demands projected in the most recent general rate case and allows companies to implement a surcharge or surcredit as necessary to recover the revenues approved in the general rate case.

The WRA removes the financial disincentive for water utilities to develop and implement effective water conservation programs.

The WRA allows water companies to defer on the balance sheet, as a regulatory asset or liability, for later collection from or crediting to customers the amount by which actual revenues deviate from the revenues allowed in the most recent general rate proceedings.

Projects eligible for WICA surcharges include certain types of aging utility plant, primarily water mains, meters, and service lines.

Additionally, certain energy conservation projects, improvements required to comply with streamflow regulations, and improvements to acquired systems are eligible for WICA surcharges.

On October 28, 2020, Connecticut Water filed a WICA application representing an additional 1.11% surcharge or approximately $1.0 million increase in revenues, for a cumulative WICA surcharge of 6.94% which became effective April 1, 2021.

Additionally, on February 1, 2021, Connecticut Water and the Avon Water division separately filed their annual WICA

reconciliation which called for a 0.09% increase and 0.80% reduction of the WICA surcharge, respectively.

On March 3, 2021, in separate decisions, PURA approved a net cumulative 7.03% WICA surcharge for Connecticut Water and a net cumulative 8.51% WICA surcharge for the Avon Water division, both of which became effective on customers’ bills on April 1, 2021.

The WICA surcharge was reset to zero as part of the July 28, 2021 rate case decision, and remained zero until December 31, 2021.

On January 15, 2021, Connecticut Water filed an application with PURA to amend rates for its customers, including the divisions of Avon Water and Heritage Village Water.

The filing requests an increase of $20.2 million in annual revenues that includes more than $265.5 million in completed infrastructure investments that are not currently in approved rates and surcharges.

On July 28, 2021, Connecticut Water received the final decision approving an increase of $5.2 million in annual revenues, a return on equity of 9.0%, with new rates effective July 28, 2021.

The final decision also approved a low-income rate, tiered block rate structure for residential water customers and the cost of debt and equity percentage as requested.

The final decision did not include all of the requested pro forma plant in service due to the timing of its completion.

However, no plant was disallowed.

Connecticut Water will seek recovery for the projects in the future.

The portion of plant which is eligible for recovery through WICA was included in the October 26, 2021 WICA filing discussed below or will be included in future WICA filings.

In addition, the final decision reset WICA, which was approaching its statutory caps, to zero.

On August 11, 2021, Connecticut Water filed a petition for reconsideration with PURA to consider matters specific to excess deferred income taxes contained in the July 28, 2021 decision.

The proposed increased revenues associated with the petition is $2.2 million.

On November 17, 2021, PURA issued a final decision approving $2.1 million of Connecticut Water’s request.

On October 26, 2021, Connecticut Water filed for a WICA increase of approximately $21.7 million in completed projects.

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On December 22, 2021, PURA approved a WICA surcharge of 2.44% to be added to bills of all Connecticut Water customers, including those of the former The Avon Water Company and The Heritage Village Water Company, effective January 1, 2022 which is expected to generate approximately $2.6 million in additional revenue.

Long-term debt issuances for Connecticut Water require regulatory authorization which is typically obtained for a specified amount of debt to be issued during a specified period of time.

On March 16, 2021, Connecticut Water filed for PURA approval for the issuance of up to $100.0 million of long-term borrowings in 2021.

Connecticut Water received approval of the financings from PURA on June 9, 2021.

On February 14, 2022 Connecticut Water filed its 2021 WICA reconciliation with PURA.

The reconciliation, approved by PURA on March 16, 2022 and effective for 12 months beginning April 1, 2022, replaced the expiring 2020 reconciliation surcharge of 0.07% with a credit of 0.02%.

As a result, the net WICA surcharge, effective April 1, 2022 was 2.35%.

On February 28, 2022, Connecticut Water filed its 2021 WRA.

The mechanism reconciles 2021 revenues as authorized in the company’s most recent rate cases.

The 2021 WRA, as approved by PURA on March 30, 2022 and effective for 12 months beginning on April 1, 2022 imposed a 2.85% surcharge on customer bills to collect the 2021 revenue shortfall.

On April 26, 2022, Connecticut Water filed for a WICA increase of $9.8 million in completed projects.

PURA approved the Company’s application on June 22, 2022.

The cumulative WICA charge as of July 1, 2022 is 3.26%, collecting $3.5 million on an annual basis.

On June 17, 2022, Connecticut Water submitted an application to PURA for the approval to issue unsecured notes in the amount of $25 million.

A decision from PURA approving the application was received on August 10, 2022.

The notes carry an interest rate of 4.71% and the closing occurred on December 14, 2022.

On January 26, 2023, Connecticut Water filed with PURA for a $3.1 million increase in annualized revenues for approximately $27.8 million in projects completed through the WICA.

Any PURA authorized increase is expected to be effective on April 1, 2023.

Texas Regulatory Affairs

CLWSC’s rates are subject to the economic regulation of the Public Utilities Commission of Texas (“PUCT”).

SJWTX’s rates are subject to the economic regulation of the Public Utilities Commission of Texas (“PUCT”).

The PUCT may authorize rate increases after the filing of an Application for a Rate/Tariff Change.

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Furthermore, rate cases may not be filed more frequently than once every 12 months.

On January 29, 2021, CLWSC submitted its Water Pass-Through Charge (“WPC”) true-up report for the Canyon Lake area water systems’ 2020 purchased water costs.

The WPC is the annual filing to update the monthly per thousand gallons charge for changes in purchased water costs since the last annual true-up report.

The 2020 WPC true-up report resulted in a reduction of the WPC usage rate from $0.95 dollars to $0.70 dollars per thousand gallons which became effective on March 1, 2021.

In August 2021, the Guadalupe-Blanco River Authority (“GBRA”) increased its debt service rate by 82% and announced a 15% increase in the Operations & Maintenance rate and a 4% increase in the firm water rate effective September 1, 2021.

CLWSC filed its annual WPC true-up report on January 31, 2022 under Docket No.

The 2022 WPC usage rate will increase from $0.70 to $1.02 dollars per thousand gallons due to CLWSC under-collecting the actual cost of purchased water and GBRA increasing its rates.

The new usage rate will be effective starting March 1, 2022.

The Deer Creek Ranch water system has a separate WPC.

A WPC filing for Deer Creek Ranch is required only when there is a change in purchased water costs.

CLWSC received notice of an increase of 4% for the Deer Creek purchased water cost from West Travis Public Utility Agency (“WTPUA”), effective in October 2021.

SJWTX also received notice from the Lower Colorado River Authority (“LCRA”) of an increase of 7% per acre-foot for the firm water rate and the reservation rate.

The WPC true-up report for this system was submitted on December 1, 2021, which will result in an increase in the usage charge from $1.84 to $1.87 dollars per thousand gallons, and an increase in the monthly base charge of $1.04 dollars per residential account effective January 1, 2022.

A disaster declaration was issued on February 12, 2021, by the PUCT because of severe winter weather.

The PUCT issued orders under Docket No.

51812-6 which prohibited disconnections for non-payment, suspended the rules for late fees and interest, and allowed for estimated billing for the duration of the disaster declaration.

On March 5, 2021, the PUCT reinstituted the utilities’ ability to resume charging late fees, and on June 15, 2021, removed the prohibition on disconnections for non-payment.

The Texas Legislature passed Senate Bill No.

3 on August 6, 2021.

Under this bill, utilities are obligated to report to the PUCT steps they are taking to mitigate the type of long-term power outages experienced during the February 2021 storm.

CLWSC filed its emergency preparedness plans under Docket No.

52299 on November 1, 2021.

CLWSC expects to incur capital expenditures related to meeting these new requirements, largely for procurement of backup generators.

On June 28, 2021, CLWSC announced that it reached an agreement to acquire the Kendall West and Bandera East utilities in Bandera, Kendall, and Medina counties in Texas and that change in ownership applications had been filed with the PUCT under Docket No.

The PUCT approved the acquisition on December 10, 2021 and the transaction closed on December 17, 2021.

The acquisition increased CLWSC’s customers served by 1,600 service connections.

Rates will remain the same for those customers of the acquired Certificate of Convenience and Necessity.

SJWTX has no current general rate case pending.

However, SJWTX filed its application to establish a System Improvement Charge (“SIC”) with the PUCT on December 30, 2022.

This filing will allow SJWTX to add certain utility plant additions made since 2020 to its rate base, thereby increasing revenue and avoiding the immediate need for a general rate case.

The SIC is projected to increase SJWTX’s water revenue by $1.6 million and sewer revenue by $29 thousand within one year of the

approval from the PUCT.

Once the PUCT files the final order approving the SIC, SJWTX will be required to file a general rate case within four years.

The decision on the SIC filing is expected to be in the third quarter of 2023.

Notwithstanding the SIC filing, SJWTX will continue to file its annual adjustments for the Water Pass-through Charges (“WPC”) for Canyon Lake, Deer Creek, and Kendall West customers.

All water supply cost increases are recoverable when the next annual WPC adjustment for each system is filed.

Maine Regulatory Affairs

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Maine’s rate-adjustment mechanism could provide revenue stabilization in divisions with declining water consumption and Maine Water expects to request usage of this mechanism in future rate filings when consumption trends support its use.

On June 17, 2020, the MPUC approved a general rate increase for Skowhegan Division customers allowing $0.2 million in additional revenue.

Per the MPUC decision, the increase was implemented in two steps:

an initial 9.80% rate increase effective June 15, 2020, and a 3.51% rate increase effective July 1, 2021.

The combined rate increase is 13.31%.

On March 10, 2021, Maine Water filed a general rate increase application for the Biddeford Saco Division seeking approximately $6.7 million, or 77.5%, in additional revenue.

The application proposed a three step, multi-year rate plan designed to ease the transition to higher water bills over the period from July 2021 to July 2023.

The primary driver for the increase in rates is the support for a new drinking water treatment facility on the Saco River, a $60.0 million project to replace the existing facility that is expected to be in service in the second quarter of 2022.

On June 23, 2021, the MPUC approved the first step in the plan by adopting the proposed rate smoothing mechanism and implementing a temporary 22.65% surcharge on all customer bills.

The surcharge will be in effect for one year.

On September 8, 2021, Maine Water filed a supplemental application to update its request to increase base rates, initiating the second step in the rate plan.

The supplemental application updates the March application and seeks $6.9 million, or 80.1% in additional revenue and provides a bill credit funded by the year one surcharge to offset a portion of the increase.

The bill credit will be in effect for one year.

A decision on the requested revenue increase is expected in the second quarter of 2022, corresponding with the completion of the new water treatment facility.

On October 28, 2021, Maine Water filed a WISC application with the MPUC for the Skowhegan division requesting an increase of 3%, representing approximately $0.1 million in additional revenues.

The WISC application was approved on December 27, 2021, and the surcharge became effective January 1, 2022.

On February 28, 2022, Maine Water filed requests for general rate increases in the Camden-Rockland, Freeport, Millinocket and Oakland Divisions.

The four filings collectively request $0.5 million in new revenue and seek to reset the WISC in all four divisions.

The four cases, while docketed separately, are proceeding through the adjudication process together.

On February 2, 2023, Maine Water Company received final decisions from the MPUC on four general rate cases filed in 2022.

The rate increases are retroactively effective for January 1, 2023, and authorize a $0.7 million increase in annual revenues.

Please also see Item 1A , “Risk Factors,” Item 7 , “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Note 3 of “Notes to Consolidated Financial Statements.”

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The principal business of Water Utility Services consists of the production, purchase, storage, purification, distribution, wholesale and retail sale of water and wastewater services.

SJWC provides water services to approximately 231,000 connections that serve approximately one million people residing in portions of the cities of San Jose and Cupertino and in the cities of Campbell, Monte Sereno, Saratoga and in the Town of Los Gatos, and adjacent unincorporated territories, all in the County of Santa Clara in the State of California.

SJWC provides water services to approximately 232,000 connections that serve approximately one million people over 139 square miles residing in portions of the cities of San Jose and Cupertino and in the cities of Campbell, Monte Sereno, Saratoga and in the Town of Los Gatos, and adjacent unincorporated territories, all in the County of Santa Clara in the State of California.

The CTWS companies provide water service to approximately 141,000 service connections that serve a population of approximately 459,000 people in 81 municipalities with a service area of approximately 270 square miles throughout Connecticut and Maine and 3,000 wastewater connections in Southbury, Connecticut.

CLWSC provides water service to approximately 24,000 service connections that serve approximately 70,000 people in a service area comprising more than 266 square miles in the region between San Antonio and Austin, Texas.

SJWTX provides water service to approximately 26,000 service connections that serve approximately 77,000 people in a service area comprising more than 268 square miles in the region between San Antonio and Austin, Texas and approximately 900 wastewater connections.

Together, the Water Utility Services distribute water to customers in their respective service areas in accordance with accepted water utility methods.

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These non-tariffed services include water system operations, maintenance agreements and antenna site leases.

In addition, in October 1997, SJWC commenced operation of the City of Cupertino municipal water system under a 25-year lease

which is due to expire in September of 2022 and was amended on January 8, 2020.

In addition, in October 1997, SJWC commenced operation of the City of Cupertino municipal water system under a 25-year lease which was due to expire in September of 2022 and was amended on January 8, 2020.

The system is adjacent to the SJWC service area and has approximately 4,600 service connections.

Under the terms of the lease, SJWC paid an upfront $6.8 million concession fee to the City of Cupertino that is being amortized over the contract term.

SJWC assumed responsibility for all maintenance and operating costs of the system, while receiving all payments for water service.

Under the terms of the amended lease agreement in 2020, SJWC agreed to make an additional up-front payment of $5 million that could be used to invest in capital improvements in Cupertino’s water system prior to the expiration of the lease.

Any unspent funds at lease termination remain the property Cupertino.

On November 2, 2021, the City of Cupertino approved another amendment to the current lease agreement executed on January 8, 2020.

This second amendment provides the City of Cupertino options to extend the lease agreement by periods of six months, two years, or three years with modifications of additional capital improvement funds of $0.4 million, $1.6 million and $2.5 million, respectively, depending on the lease extension period option.

These options are intended to provide the City of Cupertino more time, if needed, to complete its RFP process for a new lease term and conduct analyses of other alternatives for the operation of the water system.

Under the terms of the lease, SJWC assumed responsibility for all maintenance and operating costs of the system, while receiving all payments for water service.

SJWC paid an upfront $6.8 million concession fee and an additional $5.0 million in capital improvements to the City of Cupertino.

On February 25, 2022, SJWC received a letter from the City of Cupertino exercising their option to extend the term of the lease an additional two years through October 1, 2024.

SJWC paid an additional $1.6 million concession fee.

The total concession fees paid for the agreement are being amortized over the contract term including the extension.

CTWS provides contracted services to water utilities, as well as offers Linebacker® protection plans for public drinking water customers in the States of Connecticut and Maine.

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Among other things, operating results from the water business fluctuate according to the demand for water, which is often influenced by seasonal conditions, such as impact of drought, summer temperatures or the amount and timing of precipitation in Water Utility Services’ service areas.

Revenue, production expenses and income are affected by changes in water sales and the availability of surface water supply.

Overhead costs, such as payroll and benefits, depreciation, interest on long-term debt, and property taxes, remain fairly constant despite variations in the amount of water sold.

Revenue, production expenses and income are affected by changes in water sales and the

sources of water supply.

Overhead costs, such as payroll and benefits, depreciation, interest on long-term debt, and property taxes are not significantly impacted by seasonality or water supply mix.

As a result, earnings are highest in the higher demand, warm summer months and lowest in the lower demand, cool winter months.

California Water Supply

SJWC’s water supply consists of groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from Valley Water under the terms of a master contract with Valley Water expiring in 2051.

SJWC’s water supply consists of groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from Santa Clara Valley Water District (“Valley Water”) under the terms of a master contract with Valley Water expiring in 2051.

During normal rainfall years, purchased water provides approximately 40% to 50% of SJWC’s annual production.

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In the event of a power outage, SJWC believes it will be able to prevent an interruption of service to customers for a limited period by pumping water using generator power and by using purchased water from Valley Water.

In 2021, the level of water in the Santa Clara Valley groundwater basin, which is managed by the Valley Water, experienced a decrease due to an increase in groundwater pumping by various water retailers in the region, and lower than normal local rainfall and natural recharge.

As reported by Valley Water at the end of 2021, the groundwater level in the Santa Clara Plain was 2 feet lower compared to the same time in 2020.

In 2022, the level of water in the Santa Clara Valley groundwater basin, which is managed by the Valley Water, experienced an increase in most areas due to seasonal recovery, an increase in managed recharge operations, and a decrease in groundwater pumping by various water retailers in the region.

As reported by Valley Water at the end of 2022, the groundwater level in the Santa Clara Plain was 14 feet higher compared to the same time in 2021.

The total groundwater storage at the end of 2022 was within Stage 1 (Normal) of the Valley Water’s Water Shortage Contingency Plan.

On January 1, 2022, Valley Water’s 10 reservoirs were 28% of capacity with 46,318 acre-feet of water in storage.

As of December 31, 2021, SJWC’s Lake Elsman was 58.8% of capacity with 3,615 acre-feet of water, approximately 121.1% of the five-year seasonal average.

On January 1, 2023, Valley Water’s 10 reservoirs were 32% of capacity with 17,263 million gallons of water in storage.

As of December 31, 2022, SJWC’s Lake Elsman was 45.5% of capacity with 912 million gallons of water, approximately 113.9% of the five-year seasonal average.

In addition, the rainfall at SJWC’s Lake Elsman was measured at 29.45 inches for the period from July 1, 2022 through December 31, 2022, which is 207.4% of the five-year average.

Subsequent to December 31, 2021, California has returned to drier than normal weather patterns.

Local surface water is a less costly source of water than groundwater or purchased water and its availability significantly impacts SJWC’s results of operations.

SJWC’s Montevina Water Treatment Plant treated 1,350 acre-feet of water in 2021, which is 20.2% of the five-year average.

Subsequent to December 31, 2022, California has continued to experience wet weather patterns.

SJWC’s Montevina Water Treatment Plant treated 1,883 million gallons of water in 2022, which is 103.5% of the five-year average.

SJWC’s Saratoga Water Treatment Plant treated 42.7 million gallons of water in 2022, which is 17.1% of the five-year average.

SJWC believes that its various sources of water supply will be sufficient to meet customer demand in 2023.

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In response to Valley Water’s declaration of drought emergency and call for conservation, SJWC filed with the CPUC to activate Stage 3 of its Rule 14.1 Water Shortage Contingency Plan.

Like the most recent drought, the current restrictions center on outdoor water usage which typically accounts for half of a residential customer’s consumption.

The current restrictions center on outdoor water usage which typically accounts for half of a residential customer’s consumption.

The restrictions include limits on watering days and times, use of potable water for washing structures and other non-porous surfaces except to protect public health and safety, and no outdoor watering during and up to 48 hours after measurable rainfall.

In addition, SJWC implemented a plan with CPUC that established budgets for each residential customer and places a surcharge on water usage that exceeds the allotted budget that was set based on a 15% reduction to 2019 usage.

There is no such surcharge for commercial customers except for landscaping water usage.

California also faces long-term water supply challenges.

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Connecticut Water Supply

Connecticut Water’s infrastructure consists of 65 noncontiguous water systems in the State of Connecticut.

These systems, in total, consist of approximately 1,800 miles of water main and reservoir storage capacity of 2.4 billion gallons.

The safe, dependable yield from 235 active wells and 18 surface water supplies is approximately 65 million gallons per day.

Water sources vary among the individual systems, but overall approximately 80% of the total dependable yield comes from surface water supplies and 20% from wells.

The Connecticut water utilities supplement their water supplies with purchase water contracts with neighboring utilities.

Connecticut Water’s water sources vary among the individual systems, but overall approximately 80% of the total dependable yield comes from surface water supplies and 20% from wells.

In addition, Connecticut Water has water supply agreements to supplement its water supply with the South Central Connecticut Regional Water Authority and The Metropolitan District that expire 2058 and 2053, respectively.

Texas Water Supply

CLWSC’s water supply consists of groundwater from wells and purchased treated and raw water from the GBRA.

CLWSC has long-term agreements with the GBRA, which expire in 2037, 2040, 2044 and 2050.

The agreements, which are take-or-pay contracts, provide CLWSC with an aggregate of 7,650 acre-feet of water per year from Canyon Lake at prices that may be adjusted periodically by GBRA.

CLWSC also has raw water supply agreements with the LCRA and WTPUA expiring in 2059 and 2046, respectively, to provide for 250 acre-feet of water per year from Lake Austin and the Colorado River, respectively, at prices that may be adjusted periodically by the agencies.

SJWTX’s water supply consists of groundwater from wells and purchased treated and raw water from the Guadalupe-Blanco River Authority (“GBRA”).

SJWTX has long-term agreements with the GBRA, which expire in 2037, 2040, 2044 and 2050,

respectively.

The agreements, which are take-or-pay contracts, provide SJWTX with an aggregate of 7,650 acre-feet of water per year from Canyon Lake at prices that may be adjusted periodically by GBRA.

SJWTX also has raw water supply agreements with the Lower Colorado River Authority (“LCRA”) and West Travis Public Utility Agency (“WTPUA”) expiring in 2059 and 2046, respectively, to provide for 350 acre-feet of water per year from Lake Austin and the Colorado River, respectively, at prices that may be adjusted periodically by the agencies.

Maine Water Supply

Maine Water’s infrastructure consists of 12 noncontiguous water systems in the State of Maine.

These systems, in total, consists of approximately 600 miles of water main and reservoir storage capacity of 7.0 billion gallons.

The safe, dependable yield from our 14 active wells and 7 surface water supplies is approximately 120 million gallons per day.

Water sources vary among the individual systems, but overall approximately 90% of the total dependable yield comes from surface water supplies and 10% from wells.

Water sources at Maine Water vary among the individual systems, but overall approximately 90% of the total dependable yield comes from surface water supplies and 10% from wells.

Maine Water has a water supply agreement with the Kennebec Water District expiring in 2040.

Maine Water relies on legislatively granted water rights in order to serve customers.

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None of the franchises of the Connecticut water utility services have a termination date.

Maine Water holds franchises necessary to provide water services in the towns served are Biddeford, Saco, Old Orchard Beach, Scarborough (Pine Point), Porter, Parsonsfield, Hiram, Freeport, Camden, Rockland, Rockport, Owls Head, Union, Thomaston, Warren, Bucksport, Skowhegan, Oakland, Hartland, Millinocket and Greenville.

Maine Water holds franchises necessary to provide water services in the towns served which are Biddeford, Saco, Old Orchard Beach, Scarborough (Pine Point), Porter, Parsonsfield, Hiram, Freeport, Camden, Rockland, Rockport, Owls Head, Union, Thomaston, Warren, Bucksport, Skowhegan, Oakland, Hartland, Millinocket and Greenville.

None of the franchises with Maine Water have a termination date.

CLWSC holds the franchises necessary to provide water and wastewater services to the City of Bulverde and the City of Spring Branch, which terminate in 2029 and 2036, respectively.

The unincorporated areas that CLWSC serves in Comal, Blanco, Bandera, Hays, Kendall, Medina and Travis Counties do not require water service providers to obtain franchises.

SJWTX holds the franchises necessary to provide water and wastewater services to the City of Bulverde and the City of Spring Branch, which terminate in 2029 and 2036, respectively.

The unincorporated areas that SJWTX serves in Comal, Blanco, Bandera, Hays, Kendall, Medina and Travis Counties do not require water service providers to obtain franchises.

Seasonal Factors

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Water Utility Services is currently in compliance with all of the United States Environmental Protection Agency’s (the “EPA”) surface water treatment performance standards, drinking water standards for disinfection by-products and primary maximum contaminant levels.

These standards have been adopted and are enforced by the California State Water Board, Division of Drinking Water, the Connecticut Department of Public Health, the Maine Department of Health and Human Services, and the Texas Commission on Environmental Quality for SJWC, Connecticut Water, Maine Water and CLWSC, respectively.

Other state and local environmental regulations apply to our Water Utility Services’ operations and facilities.

These regulations relate primarily to the handling, storage and disposal of hazardous materials and discharges to the environment, including

wastewater operations in the States of Connecticut and Texas.

These regulations relate primarily to the handling, storage and disposal of hazardous materials and discharges to the environment, including wastewater operations in the States of Connecticut and Texas.

In 2016, SJWC began performing hazardous materials site assessments and remediation prior to the construction phase of capital projects.

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We believe our employees are our most important asset.

Throughout our organization, our employees embrace the company’s values of integrity, respect, service, compassion, trust, teamwork and transparency in everything we do.

Throughout our organization, our employees embrace the company’s values of teamwork and respect, straight talk and transparency, integrity and trust, and service and compassion in everything we do.

Employees participate in semi-annual employee engagement and satisfaction surveys providing feedback that enables the Company to continually assess and implement initiatives to enhance employee satisfaction and retention.

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a culture that embraces diversity, respect and equity;

jobs that offer fair wages as benchmarked to the markets that we live and work in;

jobs that offer fair

wages as benchmarked to the markets that we live and work in;

competitive wages and benefits;

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Basic Workforce Data

As of December 31, 2021, SJW Group had 751 full-time employees, of whom 362 were SJWC employees, 228 were Connecticut Water employees, 84 were CLWSC employees, and 77 were Maine Water employees.

As of December 31, 2022, SJW Group had 757 full-time employees, of whom 362 were SJWC employees, 230 were Connecticut Water employees, 87 were SJWTX employees, and 78 were Maine Water employees.

At SJWC, 215 employees are members of unions.

Employees working for Connecticut Water, Maine Water and CLWSC are not represented by unions.

On November 12, 2019 and February 20, 2020, SJWC reached three-year bargaining agreements with the International Union of Operating Engineers, representing certain employees in the engineering department, and the Utility Workers of America, representing the majority of all non-administrative employees at SJWC covering the period from January 1, 2020 through December 31, 2022.

Employees working for Connecticut Water, Maine Water and SJWTX are not represented by unions.

In December of 2022, SJWC proposed tentative three-year bargaining agreements with the International Union of Operating Engineers (“OE”), representing certain employees in the engineering department, and the Utility Workers of America (“OWUA”), representing the majority of all non-administrative employees at SJWC covering the period from January 1, 2023 through December 31, 2025.

The agreements include a 6% wage increase in 2023, 3.5% in 2024 and 5.5% in 2025 for the union workers.

Acceptance of the OE and the OWUA bargaining agreements are anticipated in the first quarter of 2023.

Employee Safety and Pandemic Response

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Incident and crisis management of both known and unknown threats to employee health and safety are anticipated and planned for by our safety team.

Our 2021 Sustainability Plan incorporates specific targets that set the trajectory of our safety program to ensure continuous improvement, including:

Our 2022 Sustainability Plan and Supplemental Report, to be published in 2023, incorporates specific targets that set the trajectory of our safety program to ensure continuous improvement, including:

• Implement processes and systems to track, monitor, report and continually improve health and safety performance;

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Locally, workplace hazards are identified by onsite inspections and from near-miss investigations.

More broadly, the team collaborates to anticipate and plan for external events

such as pandemic or for extreme weather or other external events that could impact our operations.

More broadly, the team collaborates to anticipate and plan for external events such as pandemic or for extreme weather or other external events that could impact our operations.

Proactive identification of hazards keeps us one step ahead of our constantly changing workplace conditions.

During the COVID-19 pandemic, SJW Group’s primary focus has been to protect the health and safety of employees, customers and the community from the spread of the disease in the workplace, while continuing to deliver reliable, clean and safe drinking water and service.

During the COVID-19 pandemic, SJW Group’s primary focus has always been to protect the health and safety of employees, customers and the community from the spread of the disease in the workplace, while continuing to deliver reliable, clean and safe drinking water and service.

Beginning in March 2020, with additional COVID-19 protections in place, we paused all non-essential services for two months;

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In an effort to ensure the safety and protection of our workplace and those customers and vendors with whom we serve and work, SJW Group announced a universal vaccination requirement for all employees by January 17, 2022 for three of our operating utilities and by February 14, 2022 at SJWC.

On January 22, 2022, SJWC received a letter from the National Labor Relations Board (“NLRB”) stating that it would investigate the allegations from the Utility Workers Union of America Local 259 that SJWC failed to bargain in good faith by imposing a COVID vaccine mandate and threatening to terminate noncompliant employees and for, otherwise, failing to bargain over its decision to impose the mandate.

SJWC intends to cooperate with the NLRB’s investigation requests for affidavits from SJWC management and relevant documents.

On January 22, 2022, SJWC received a letter from the National Labor Relations Board (“NLRB”) stating that it would investigate the allegations from the Utility Workers Union of America Local 259 (“Local 259”) that SJWC failed to bargain in good faith by imposing a COVID vaccine mandate and threatening to terminate noncompliant employees and for, otherwise, failing to bargain over its

decision to impose the mandate.

The NLRB issued a decision to defer the unfair labor practice charge which was appealed by Local 259.

In final response, the NLRB General Counsel denied the appeal with the decision to defer the unfair labor practice charge to arbitration.

We continue to actively monitor all evolving federal, state and local guidance from public health authorities to ensure that our measures are in compliance with such rules and regulations and are effective in the continually changing pandemic environment.

Engagement and Satisfaction

SJW Group has invested significantly in employee engagement and satisfaction in alignment with its values and five building blocks of Community, Customers, Employees, Environment and Shareholders.

Employees across SJW Group identified and adopted four sets of core values to guide their work and interactions:

integrity and trust, compassion and service, straight talk and transparency, and respect and teamwork.

Our leadership employs a servant leadership model where all leaders are encouraged and expected to provide service to their people ensuring that they continue to grow and thrive in their profession, knowledge, and general well-being.

Regular “Straight Talk” meetings, employee town halls and quarterly “Leadership on Tap” gatherings are held to continue to build and support our culture and values.

Additionally, the Company provides ongoing opportunities for employee recognition from peers and leaders and also administers an employee engagement and satisfaction survey twice per year.

Diversity and Inclusion

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In 2021, CEO Eric Thornburg signed on to the CEO Action for Diversity & Inclusion™ CEO pledge, which outlines a specific set of actions the signatory CEOs will take to cultivate a trusting environment where all ideas are welcomed and employees feel comfortable and empowered to have discussions about diversity and inclusion.

The Company’s Diversity, Equity and Inclusion Council has implemented several impactful initiatives in 2021, including ongoing education and communications and an unconscious bias training program for all employees.

The Company’s Diversity, Equity and Inclusion Council (the “Council”) is comprised of employee volunteers from all four subsidiaries representing the communities we serve.

The Council has implemented several impactful initiatives in 2022, including ongoing education and communications utilizing numerous platforms, providing unconscious bias training, and creating opportunities for all employees to celebrate and support cultural days of personal significance in their communities.

During the year ended December 31, 2022, our workforce comprised of:

Percentage of Workforce

Hispanic or Latino 20 %

Not Hispanic or Latino 80 %

2 or More Races 4 %

Black or African American 4 %

American Indian or Alaska Native 1 %

Native Hawaiian or Other Pacific Islander 1 %

Other/Not Reported 19 %

We work to ensure training and development opportunities are available so that all employees can establish and succeed in meaningful careers at SJW Group.

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Brown was an associate at two Silicon Valley law firms and is a member of the State Bar of California.

Gere 55 SJWC—President and Chief Operating Officer.

Gere serves as President since April 2016 and as Chief Operating Officer since April 2015.

Gere 56 SJWC—President.

Gere serves as President since April 2016 and was Chief Operating Officer from April 2015 to December 2022.

From 2013 to April 2015, Mr.

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Gere served as Chairman of the National Association of Water Companies.

Johnson 55 SJW Group—Chief Administrative Officer.

Johnson serves as the Chief Administrative Officer of SJW Group and the Senior Vice President of Administration for CTWS and its subsidiaries since November 2019.

Hauk 52 SJW Group—Chief Operating Officer.

Hauk serves as the Chief Operating Officer of SJW Group, SJWC, CTWS, and SJWTX since January 2023 and was the Chief Corporate Development and Strategy Officer of SJW Group, SJWC, CTWS, and SJWTX from August 2022 to December 2022.

Prior to joining the Company, Mr.

Hauk was the President of NextEra Water from May 2021 to August 2022.

Prior to joining NextEra, Mr.

Hauk served in several roles at American Water Works Company, Inc.

from May 2011 to March 2021, lastly serving as President of Regulated Operations and Military Services Group and then as Deputy Chief Operating Officer.

Previously, Mr.

Hauk served as Deputy Mayor/Chief Administrative Officer for the City of Westfield, Indiana and as Town Manager/Director of Public Works for the City of Westfield, Indiana.

Johnson 57 SJW Group—Senior Vice President and Chief Administrative Officer.

Johnson serves as Senior Vice President since November 2022 and Chief Administrative Officer of SJW Group and Senior Vice President of Administration for CTWS and its subsidiaries since November 2019.

Previously, Ms.

Johnson served as Director of Human Resources, Vice President of Human Resources and the Vice President and Corporate Secretary of CTWS and its subsidiaries from 2007, 2008, and 2010, respectively.

She served as the Corporate Secretary of Maine Water until July 2020.

Lynch 62 SJW Group—Chief Accounting Officer.

Lynch also serves as Chief Accounting Officer of SJWC and SJW Land Company since January 2022.

Lynch served as Chief Financial Officer and Treasurer until January 2022.

He also served as Chief Financial Officer and Treasurer of SJWC, SJW Land Company, and SJWTX, Inc.

from September 2010 until January 2022.

He served as Treasurer of SJWTX Holdings, Inc.

until January 2022.

Lynch served as Chief Financial Officer and Treasurer of Texas Water Alliance Limited from October 2010 until November 16, 2017.

Prior to joining the Corporation Mr.

Lynch was an Audit Partner with KPMG LLP.

Lynch was with KPMG LLP for 26 years.

Lynch is a certified public accountant.

Johnson served as Director of Human Resources, Vice President of Human Resources and Vice President and Corporate Secretary of CTWS and its subsidiaries from 2007, 2008, and 2010, respectively.

She served as the Corporate Secretary of The Maine Water Company until July 2020.

Patla 55 CTWS—President.

Patla serves as President of CTWS and its subsidiaries, except The Maine Water Company, since January 2023.

From April 2014 to December 2022, Mr.

Patla was Vice President of Service Delivery.

From 2011 to 2014, Mr.

Patla was Director of Service Delivery.

From 2008 to 2011, Mr.

Patla was Manager of Service Delivery.

From 2004 to 2008, Mr.

Patla was Region Manager.

Patla joined CTWS in 1990 as an engineer.

Thornburg 62 SJW Group—President, Chief Executive Officer and Chair of the Board.

Thornburg serves as President and Chief Executive Officer of SJW Group and SJW Land Company and Chief Executive Officer of SJWC and SJWTX, Inc.

since November 6, 2017.

He has served as the Chair of the Board of Directors of SJW Group, SJWC, SJW Land Company and SJWTX, Inc.

since April 25, 2018 and Chair of the Board of Directors of SJWNE LLC, CTWS and its subsidiaries since October 9, 2019.

Thornburg serves as President and Chief Executive Officer of SJW Group and SJW Land Company and Chief Executive Officer of SJWC and SJWTX since November 6, 2017.

He has served as the Chair of the Board of Directors of SJW Group, SJWC, SJW Land Company and SJWTX since April 25, 2018 and Chair of the Board of Directors of SJWNE LLC, CTWS and its subsidiaries since October 9, 2019.

Prior to joining SJW Group, Mr.

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Walters 52 SJW Group—Chief Financial Officer and Treasurer.

Walters serves as Chief Financial Officer and Treasurer of SJWC, SJW Land Company, and SJWTX, Inc.

since January 2022.

Walters serves as Chief Financial Officer and Treasurer of SJW Group, SJWC, SJW Land Company, and SJWTX since January 2022.

Walters served as Chief Corporate Development Officer and Integration Executive of SJW Group from November 2019 until January 2022 and previously served as Chief Administrative Officer of SJWC since January 31, 2014.

Walters is also currently the Vice President of Business Planning of Connecticut Water Service, Inc.

and Connecticut Water Company as of November 7, 2019.

Walters is also currently the Vice President of Business Planning of CWC and CTWS as of November 7, 2019.

Prior to joining SJWC in 2014, Mr.

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Walters served in the Investment Banking Division of Citigroup as managing director and head of infrastructure for the Americas and in other roles focused on mergers and acquisitions and capital raising for clients, since 1993.

Westbrook 63 CTWS—President.

Westbrook serves as the President of CTWS and its subsidiaries, except Maine Water, since December 2019 and President of SJWNE LLC since October 2019.

Westbrook has been Chief Executive Officer of Maine Water since December 2019.

Initially hired as Connecticut Water’s Manager of Source Protection, Ms.

Westbrook has held various positions of increasing scope and responsibility.

She had served as the Vice President of Customer and Regulatory Affairs of Connecticut Water since 2008, assuming that role for The Avon Water Company and The Heritage Village Water Company when those utilities were acquired by CTWS.

Prior to joining Connecticut Water in 1988 she worked at the Connecticut Department of Public Health and in local and regional planning.

Principal Accounting Officer of the Registrant

The following table summarizes the name, age, offices held and business experience for our principal accounting officer, as of February 24, 2023:

Name Age Offices and Experience

Zerhouni 47 SJW Group—Senior Vice President of Finance, Principal Accounting Officer.

Zerhouni serves as Senior Vice President of Finance, Principal Accounting Officer of SJW Group, SJWC, SJWTX and CTWS since January 2023.

Prior to joining SJW Group Mr.

Zerhouni was the Chief Financial Officer of Veolia Utility Parent, Inc.

(“VUP”) from October 2022 to January 2023 which is part of the North American business of Veolia Group, a rate-regulated water and wastewater company.

Previously, Mr.

Zerhouni was Vice President/Controller and Chief Accounting Officer of VUP from December 2018 to September 2022.

Zerhouni served in various roles of increasing responsibility up to Senior Manager in the audit practice of PricewaterhouseCoopers LLP from December 2004 to December 2018.

Zerhouni is a certified public accountant.

Available Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business