What changed in this filing

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Item 1. Business

2026-02-26 compared with 2025-02-28 · 228 added, 250 removed, 257 unchanged (65% of the section changed)

General Development of Business

SJW Group, a Delaware corporation, was initially incorporated as SJW Corp.

H2O America, a Delaware corporation, was initially incorporated as SJW Corp.

in the state of California in 1985.

SJW Group is a holding company that conducts its business through the following wholly owned subsidiaries:

In May 2025, the company changed its corporate name from SJW Group to H2O America.

We will not distinguish between our prior and current corporate name and will refer to our current corporate name throughout this Annual Report on Form 10-K.

As such, unless expressly indicated or the context requires otherwise, the terms “H2O America,” “company,” “we,” “us,” and “our” in this document refer to H2O America, a Delaware corporation, and, where appropriate, its subsidiaries.

H2O America is a holding company that conducts its business through the following wholly owned subsidiaries:

• San Jose Water Company (“SJWC”), with its headquarters located at 110 West Taylor Street in San Jose, California 95110, was originally incorporated under the laws of the State of California in 1866.

As part of a reorganization in 1985, SJWC became a wholly owned subsidiary of SJW Group.

As part of a reorganization in 1985, SJWC became a wholly owned subsidiary of H2O America.

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.

SJWNE LLC is a special purpose entity established to hold SJW Group’s investment in Connecticut Water Service, Inc.

• H2O America NE LLC (previously known as SJWNE LLC), a Delaware limited liability company, was formed in 2019, and is a wholly owned subsidiary of H2O America.

H2O America NE LLC is a special purpose entity established to hold H2O America’s investment in Connecticut Water Service, Inc.

Connecticut Water Service, Inc.

with its headquarters located in Clinton, Connecticut, was incorporated in 1974 in the State of Connecticut.

As part of the merger transaction between SJW Group and Connecticut Water Service, Inc.

As part of the merger transaction between H2O America and Connecticut Water Service, Inc.

in 2019, Connecticut Water Service, Inc.

and its subsidiaries (“CTWS”) became a wholly owned subsidiary of SJWNE LLC.

and its subsidiaries (“CTWS”) became a wholly owned subsidiary of H2O America NE LLC.

Connecticut Water Service, Inc.

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(“NEWUS”), which provides contract water and sewer operations and other water-related services.

• SJWTX Holdings, Inc., a Texas corporation, formed in 2021, is the holding company for SJWTX, Inc., doing business as The Texas Water Company (“TWC”), Texas Water Operation Services, LLC (“TWOS”) and Texas Water Resources, LLC (“TWR”).

• H2O America TX Holdings, Inc.

(previously known as SJWTX Holdings, Inc.), a Texas corporation, formed in 2021, is the holding company for SJWTX, Inc., doing business as The Texas Water Company (“TWC”), Texas Water Operation Services, LLC (“TWOS”) and Texas Water Resources, LLC (“TWR”).

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

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TWOS was created for non-tariffed service operations and TWR was formed to hold wholesale water supply assets.

• SJW Land Company was incorporated in 1985.

SJW Land Company owns undeveloped land in California.

• National Water Utility Services, LLC (“NWU”) is the contracting entity for shared services among the SJW Group affiliates formed in 2024.

Together, SJWC, excluding the City of Cupertino (“Cupertino”) service concession arrangement operations, CWC, MWC and TWC are referred to as “Water Utility Services,” which is our single reportable segment.

Other business activities that are not separately reportable segments are SJWC’s Cupertino service concession arrangement operations, TWOS, TWR, NEWUS, SJW Land Company and Chester Realty, Inc.

and are collectively referred to as “Other Services.”

• H2O America Land Company (previously known as SJW Land Company) was incorporated in 1985.

H2O America Land Company owns undeveloped land in California.

• National Water Utility Services, LLC (“NWU”) is currently the contracting entity for shared services among the H2O America affiliates formed in 2024.

• H2O America Risk Solutions, Inc., is a captive insurance entity and wholly owned subsidiary of H2O America Inc., established in 2025 to manage certain insurance specific risks of the Company in addition to its use of traditional insurance products provided by its current insurance carriers.

Together, SJWC, excluding the City of Cupertino (“Cupertino”) service concession arrangement operations, CWC, MWC, TWC, and Acequia, are referred to as “Water Utility Services,” which is our single reportable segment.

Other business activities that are not separately reportable segments are SJWC’s City of Cupertino service concession arrangement operations, property management and investment activity conducted by H2O America Land Company and Chester Realty, Inc., contract water and sewer operations and other water-related services provided by NEWUS and are collectively referred to as “Other Services.”

Quadvest acquisition

On July 7, 2025, H2O America, through its indirect subsidiary, TWC, entered into an Asset Purchase Agreement (the “Regulated Business APA”), with Quadvest, L.P., a Texas limited partnership, as seller (“Quadvest Retail”) and H2O America, as guarantor, pursuant to which, and subject to the terms and conditions set forth therein, Quadvest Retail has agreed to sell, and

TWC has agreed to acquire, substantially all of the assets of Quadvest Retail related to the operation of Quadvest Retail’s water and sewer utility business (the “Regulated Business”) at a purchase price consisting of a base amount of $483.6 million, with certain adjustments based on capital expenditures (the “Regulated Business Transaction”).

The Regulated Business Transaction will be subject to the satisfaction of various closing conditions set forth in the Regulated Business APA, including satisfaction of the closing conditions with respect to the Wholesale Business Transaction described below.

Concurrently on July 7, 2025, H2O America, its indirect subsidiary, Texas Water Operation Services, LLC (“TWOS”) and TWC (together with H2O America and TWOS, the “Purchasers”), entered into another Asset Purchase Agreement (the “Wholesale Business APA” and together with the Regulated Business APA, the “Agreements”), with Quadvest Retail and its affiliate, Quadvest Wholesale, LLC, a Texas limited liability company (“Quadvest Wholesale” and together with Quadvest Retail, the “Sellers”), pursuant to which, and subject to the terms and conditions set forth therein, Quadvest Wholesale has agreed to sell, and TWOS has agreed to acquire substantially all of the assets of Quadvest Wholesale related to the operation of Quadvest Wholesale’s wholesale water and sewer business (the “Wholesale Business” and together with the Regulated Business, the “Businesses”) at a purchase price consisting of a base amount of $56.4 million, with certain adjustments based on capital expenditures (the “Wholesale Business Transaction”, and together with the Regulated Business Transaction, the “Transactions”).

The Wholesale Business Transaction will be subject to the satisfaction of various closing conditions set forth in the Wholesale Business APA, including the simultaneous closing of the Regulated Business Transaction described above.

On July 9, 2025, TWC filed a request with the Public Utility Commission of Texas (“PUCT”) to use Fair Market Value (“FMV”) to support its acquisition of Quadvest, L.P.

On August 7, 2025, the PUCT appointed three appraisers to determine the FMV.

In December 2025, TWC received the appraised FMV from the three PUCT appointed appraisers for the assets of Quadvest, L.P.

In accordance with Texas’ FMV statute, the purchase price of $483.6 million will serve as the ratemaking rate base.

TWC filed its Sale, Transfer & Merger (“STM”) application with the PUCT in January 2026.

Regulation and Rates

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 affects the timing of the recognition of certain revenues and expenses.

SJW Group’s consolidated financial statements reflect the actions of regulators in 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 activities are designed to achieve capital structures consistent with regulatory guidelines in the locations

where the companies operate.

H2O America’s consolidated financial statements reflect the actions of regulators in the ratemaking process.

The ratemaking 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.

H2O America’s regulated operations financing activities are 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, 2025:

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Authorized capital structure (debt/equity) 45% / 55% 47% / 53% 42% / 58% 49% / 51%

47% / 53% 42% / 58% 49% / 51%

Authorized return on equity (c)

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California Regulatory Affairs

SJWC’s rates, service and other matters affecting its business are subject to regulation by the California Public Utilities Commission (“CPUC”).

SJWC’s rates, service and other matters affecting its business are subject to regulation by the California Public Utilities Commission (the “CPUC”).

Generally, there are three types of rate adjustments that affect SJWC’s revenue collection:

general rate adjustments, cost of capital adjustments, and offset rate adjustments.

General rate adjustments are authorized in general rate case decisions, which usually authorize an initial rate adjustment followed by two annual escalation adjustments.

From time to time, SJWC may file special rate applications for discrete projects, such as the Montevina Water Treatment Plant Upgrade and the Advanced Metering Infrastructure program as needed or directed by the CPUC.

These special applications are separate from general rate case filings and are subject to their own rate recovery mechanisms.

General rate adjustments are authorized in general rate case decisions, which usually authorize an initial

rate adjustment followed by two annual escalation adjustments.

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.

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The purpose of an offset rate adjustment is to compensate utilities for changes in specific pre-authorized offsettable capital investments or expenses, primarily for purchased water, groundwater extraction, purchased power, pensions, and group health insurance.

Pursuant to Section 792.5 of the California Public Utilities Code, a balancing account must be maintained for each expense item for which such revenue offsets have been authorized.

Pursuant to the California Public Utilities Code, a balancing account must be maintained for each expense item for which such revenue offsets have been authorized.

Memorandum accounts track revenue impacts due to catastrophic events, certain unforeseen water quality expenses related to new federal and state water quality standards, energy efficiency, water conservation during periods of mandated water restrictions, water tariffs and other approved activities or as directed by the CPUC.

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

On June 29, 2023, the CPUC approved Decision No.

23-06-025 authorized a rate of return of 7.28% based on a return on equity of 8.80%, cost of debt of 5.46%, and a capital structure of approximately 45% debt and 55% equity.

On June 29, 2023, the CPUC approved an authorized rate of return of 7.28% based on a return on equity of 8.80%, cost of debt of 5.46%, and a capital structure of approximately 45% debt and 55% equity.

The CPUC also authorized continuation of the WCCM in the same decision.

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The index rate difference between those periods increased 103 basis points, thereby triggering the WCCM.

Accordingly, SJWC filed Advice Letter No.

601 on October 13, 2023, to inform the CPUC that the WCCM authorized in Decision No.

23-06-025 required an update to SJWC’s authorized rate of return effective January 1, 2024.

The filing requested an adjusted equity of 10.01%, a cost of debt of 5.28%, and a resulting authorized rate of return of 7.86%.

Advice Letter No.

601 was approved with an effective date of January 1, 2024.

Separate from the filing, the return on equity was further adjusted by a 20-basis point reduction for reimplementation of the WCMA resulting in an overall rate of return of 7.75%.

The CPUC approved the settlement of 2022 General Rate Case 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 aligned authorized and actual consumption, particularly for business customers, addressed the water

supply mix variability, and provided greater revenue recovery in the fixed charge.

The approved revenue increase for 2022 was effective retrospectively to January 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 No.

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

SJWC filed Advice Letter No.

586 on November 18, 2022, to increase the authorized 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.

SJWC filed Advice Letter No.

590 on April 6, 2023, to recover a $14.2 million under-collection in its Monterey Water Revenue Adjustment (“MWRAM”) Account as of March 31, 2023.

SJWC proposed that this amount be recovered via a 12-month volume surcharge.

Advice Letter No.

590 was approved with an effective date of May 8, 2023.

SJWC filed Advice Letter No.

591 on April 11, 2023, to discontinue its drought allocation surcharges and move from Stage 3 to Stage 1 of its Schedule 14.1.

Advice Letter No.

591 was approved with an effective date of April 11, 2023.

SJWC filed Advice Letter No.

592 on April 20, 2023, to continue its WCMA and Water Conservation Expense Memorandum Account under Santa Clara Valley Water District’s (“Valley Water”) voluntary call for 15% conservation.

On October 2, 2023, Advice Letter No.

592 was approved with an effective date of April 20, 2023.

SJWC filed Advice Letter No.

596 on May 31, 2023, to increase the authorized revenue requirement by $27.6 million 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, 2023.

Accordingly, on June 30, 2023, SJWC filed Advice Letter No.

598 to inform the CPUC that the authorized rate of return required an update in accordance with the WCCM.

On July 31, 2023, SJWC filed Advice Letter 599 to adjust the return on equity to 9.31% and the cost of debt to 5.26%, resulting in a rate of return of 7.47% for the remainder of 2023.

Advice Letter No.

599 was approved with an effective date of July 31, 2023.

SJWC filed Advice Letter No.

603 on November 14, 2023, to establish a Group Insurance Balancing Account to track the difference between the company’s authorized versus actual costs for medical, dental, and opt-out insurance expenses.

Advice Letter No.

603 was approved with an effective date of January 1, 2024.

SJWC filed Advice Letter No.

605 on November 21, 2023, to increase the authorized revenue requirement by $21.3 million or 4.16% for the attrition year increase in accordance with the 2022 GRC Decision.

Advice Letter No.

605 was approved with an effective date of January 1, 2024.

On October 13, 2023, SJWC filed Advice Letter No.

601 to inform the CPUC that the authorized WCCM required an update to SJWC’s authorized rate of return, effective January 1, 2024, based on the change to the Moody’s Aa utility bond index rate between October 1, 2022, and September 30, 2023.

SJWC requested an adjusted return on equity of 10.01%, a cost of debt of 5.28%, and a resulting authorized rate of return of 7.86%.

The request was approved with an effective date of January 1, 2024, Separate from the filing, the return on equity was further adjusted by a 20-basis point reduction for reimplementation of the WCMA resulting in an overall rate of return of 7.75%.

On December 15, 2023, SJWC, along with three other California water utilities, filed a joint request for a one-year deferment on the cost of capital filings which would otherwise be due on May 1, 2024.

Postponing the filing a year alleviates administrative processing costs on the utilities as well as the CPUC staff and provides relief for both CPUC and utility resources already strained by numerous other proceedings.

The request was conditioned on leaving the current WCCM in place such that any adjustments will be made to the respective utilities cost of capital during the one-year deferment based on the mechanism.

Postponing the filing a year alleviated administrative processing costs on the utilities as well as the CPUC staff and provided relief for both CPUC and utility resources already strained by numerous other proceedings.

The request was conditioned on leaving the current WCCM in place such that any adjustments would be made to the respective utilities cost of capital during the one-year deferment based on the mechanism.

The request was approved on February 2, 2024.

Based on the change in the average Moody’s Aa utility bond index rate between the 12 months ended September 30, 2023 and September 30, 2024, there is no adjustment to SJWC’s cost of capital for 2025.

On January 2, 2024, SJWC filed General Rate Case Application No.

24-01-001 with the CPUC to increase rates charged for water service by $55.2 million or 11.11% in 2025, by $22 million or 3.99% in 2026, and by $25.8 million or 4.49% in 2027.

Based on the change in the average Moody’s Aa utility bond index rate between the 12 months ended September 30, 2023 and September 30, 2024, there was no adjustment to SJWC’s cost of capital for 2025.

On January 2, 2024, SJWC filed a general rate case application with the CPUC to increase rates charged for water service by $55.2 million or 11.11% in 2025, by $22 million or 3.99% in 2026, and by $25.8 million or 4.49% in 2027.

The application proposed a $540 million three-year capital budget and also included requests to recover $23.5 million from balancing and memorandum accounts, further alignment between actual and authorized usage, and a shift to greater revenue collection in the service charge.

On June 14, 2024, SJWC notified the CPUC that it had reached an all-party settlement agreement in principle with the Public Advocates Office and Water Rate Advocates for Transparency, Equity and Sustainability, also known as WRATES, in its 2025 through 2027 general rate case application on all but two policy issues.

WRATES later notified the CPUC that it would not join in the settlement agreement on August 13, 2024.

Per the procedural ruling, the formal settlement motion and agreement between SJWC and the Public Advocates Office was submitted on August 19, 2024, and updated on September 27, 2024.

The settlement agreement provides for rate increases of $21.3 million or 3.91% in 2025, $14.4 million or 2.55% in 2026, and $17.4 million or 2.98% in 2027.

The settlement agreement also provides a three-year capital budget of $450 million and recovery of $15.8 million in memorandum and balancing accounts.

Briefs on the two policy issues were also submitted on August 19, 2024.

On December 19, 2024, the CPUC approved the settlement agreement, but denied SJWC’s request with respect to the two policy issues not resolved in the settlement agreement through Decision No.

SJWC filed Advice Letter No.

609 on May 16, 2024, to increase the authorized revenue requirement by $28.3 million, or 5.3%, 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, 2024.

On December 19, 2024, the CPUC approved a final decision for rate increases of $21.3 million or 3.91% in 2025, $14.4 million or 2.55% in 2026, and $17.4 million or 2.98% in 2027.

The decision also provides a three-year capital budget of $450 million and recovery of $15.8 million in memorandum and balancing accounts.

On May 16, 2024, SJWC filed Advice Letter No.

609 to increase the authorized revenue requirement by $28.3 million, or 5.3%, 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, 2024.

Advice Letter No.

609 was approved with an effective date of July 1, 2024.

SJWC filed Advice Letter No.

610/610A on May 23, 2024, to increase the authorized revenue requirement by $0.8 million, or 0.14%, to recover revenue related to the plant additions for the Advanced Metering Infrastructure project.

On May 23, 2024, SJWC filed Advice Letter No.

610/610A to increase the authorized revenue requirement by $0.8 million, or 0.14%, to recover revenue related to the plant additions for the Advanced Metering Infrastructure project.

Advice Letter No.

610/610A was approved with an effective date of July 1, 2024.

On December 18, 2024, SJWC, along with three other California water utilities, filed a joint request for a one-year deferment on the cost of capital filings which would otherwise be due on May 1, 2025.

On December 9, 2024, SJWC filed Application No.

24-12-004 with the CPUC requesting authorization to issue and sell additional debt securities in an aggregate principle amount not exceeding $400 million to fund the retirement of all or a portion of SJWC’s then-outstanding short-term bank loans, and the balance, if any, for any or all purposes as may be allowed under

Section 817 of the Public Utilities Code, including water utility plant construction, completion, replacement, extension or improvements of its existing facilities;

acquisition of property and/or water systems;

and reimbursement of moneys previously expended from income for which SJWC’s treasury has not been reimbursed.

This application is pending before the CPUC.

On December 18, 2024, SJWC, along with three other California water utilities, filed a joint request for a second one-year deferment on the cost of capital filings which would otherwise be due on May 1, 2025.

The request was approved on January 14, 2025.

SJWC filed Advice Letter No.

613 on December 20, 2024, to increase authorized revenue requirement by $21.3 million, or 3.91%, and implement new water rates and recover $15.8 million in memorandum and balancing accounts in accordance with Decision No.

On December 20, 2024, SJWC filed Advice Letter No.

613 to increase authorized revenue requirement by $21.3 million, or 3.91%, and implement new water rates and recover $15.8 million in memorandum and balancing accounts in accordance with Decision No.

This filing was approved with an effective date of January 1, 2025.

On May 27, 2025, SJWC filed Advice Letter No.

616 to increase the authorized revenue requirement by $22.5 million, or 4.00%, 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, 2025.

Advice Letter No.

616 was approved with an effective date of July 1, 2025.

On May 28, 2025, SJWC filed Advice Letter No.

617 to increase the authorized revenue requirement by $6.8 million, or 1.16%, to recover revenue related to the plant additions for the Advanced Metering Infrastructure (“AMI”) project.

Advice Letter No.

617 was approved with an effective date of July 1, 2025.

On June 24, 2025, SJWC filed Advice Letter No.

618 to establish the Water Contamination Litigation Memorandum Account (“WCLMA”) to track net proceeds and costs resulting from water contamination litigation.

Advice Letter No.

618 was approved in July 2025 by the CPUC with an effective date of June 24, 2025.

On October 15, 2025, SJWC filed Advice Letter No.

620 to re-establish the Ground Water Regulation Legal Expense Memorandum Account to track litigation and consensus building legal and related legal expenses associated with SJWC’s water rights.

Advice Letter No.

620 was approved with an effective date of November 14, 2025.

On November 10, 2025, SJWC, along with three other California water utilities, filed a joint request for a third one-year deferment on the cost of capital filings which would otherwise be due on May 1, 2026.

The request was approved on November 18, 2025.

On November 20, 2025, SJWC filed Advice Letter No.

621 to increase the authorized revenue requirement by $17.2 million, or 2.89%.

This filing was superseded by Advice Letter No.

621A, filed on December 5, 2025, to update changes to certain rate schedules.

Advice Letter No.

621A was approved with an effective date of January 1, 2026.

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 or sur-credits for the Water Revenue Adjustment (“WRA”).

On January 26, 2023, CWC filed for a WICA increase of $3.3 million in annualized revenues for $27.8 million in completed projects.

PURA approved CWC’s application on March 22, 2023.

On July 27, 2023, CWC filed for a WICA increase of $1.3 million in annualized revenues for $11.5 million in completed projects.

PURA approved the application effective October 1, 2023.

On October 3, 2023, CWC filed an application with PURA in Connecticut to adjust customer rates.

The proposal requested an increase in annual revenues of approximately $21.4 million, or 18.1%, over current authorized revenues.

On June 28, 2024, PURA issued a final decision authorizing an increase in annual revenues of $6.5 million, or 5.5%, with the ability to earn additional revenue of $1.1 million through the annual WRA filing for achievement of certain performance metrics.

In addition, the decision authorized a return on equity of 9.3% on a capital structure comprised of 53% equity and 47% long term debt.

New rates became effective on July 1, 2024.

On November 14, 2023, CWC submitted an application to PURA for approval to issue unsecured notes in the amount of $25.0 million.

A decision from PURA approving the application was received on January 10, 2024.

On February 26, 2024, CWC filed its 2023 WICA reconciliation with PURA.

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The cumulative WICA surcharge as of April 1, 2024 was 7.41%, collecting $7.8 million on an annual basis.

In connection with the general rate case decision noted above, as of July 1, 2024, the base WICA surcharge was reset to zero;

however, the credit of 0.13% for 2023 reconciliation will continue to apply into 2025.

In connection with CWC’s most recent general rate case decision, as of July 1, 2024, the base WICA surcharge was reset to zero;

however, the credit of 0.13% for 2023 reconciliation continued to apply into 2025.

On February 28, 2024, CWC filed its 2023 WRA.

The mechanism reconciles 2023 revenues as authorized in the CWC’s most recent rate case.

The mechanism reconciles 2023 revenues as authorized in CWC’s most recent rate case.

The 2023 WRA, as approved by PURA on March 11, 2024 and effective for 12 months beginning on April 1, 2024, imposed a 2.11% sur-credit on customer bills to refund the 2023 revenues over-collection.

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On January 28, 2025, CWC filed its 2024 WICA reconciliation with PURA.

The reconciliation, if approved, would be effective for 12 months beginning April 1, 2025, replacing the expiring 2023 reconciliation credit of $0.1 million with a credit of $2.4 million on an annual basis.

The reconciliation is effective for 12 months beginning April 1, 2025, replacing the expiring 2023 reconciliation credit of $0.1 million with a credit of $2.4 million on an

annual basis.

On January 28, 2025, CWC filed for a WICA increase of $1.6 million in annualized revenues for $15.7 million in completed projects.

On March 26, 2025, PURA approved the filing in its entirety.

The cumulative WICA surcharge as of April 1, 2025, was 4.90%, collecting $6.0 million on an annual basis.

On February 24, 2025, CWC filed its 2024 Water Rate Adjustment (“WRA”) mechanism.

The mechanism reconciles 2024 revenues as authorized in the CWC’s most recent rate case as well as provides for recovery of certain amounts of executive compensation as the result of the achievement of performance metrics as prescribed by PURA.

The 2024 WRA surcharge of 3.62%, approved by PURA on March 26, 2025, is effective for 12 months beginning April 1, 2025.

On March 6, 2025, CWC submitted an application requesting that PURA approve the issuance of $19.4 million in Drinking Water State Revolving Fund Loans that the Company proposes to use to fund three projects pertaining to:

(1) the interconnection of the Green Springs Water System in Madison, Connecticut with the Guilford Water System;

(2) a facility for centralized treatment of raw water from certain wells in CWC’s Gallup System in Plainfield, Connecticut;

and (3) a Lead Service Line Identification Program.

A decision was received from PURA on April 30, 2025, approving CWC’s request.

On June 4, 2025, the Connecticut General Assembly approved Public Act No.

25-142, An Act Concerning Water Utility Systems and Water Quality and Treatment Surcharges.

The Act, signed by the Governor on July 1, 2025, allows CWC to surcharge customers for investments related to emerging contaminants, primarily PFAS.

In accordance with the legislation, CWC submitted its Water Quality and Treatment Adjustment (“WQTA”) Assessment Report (“AR”) on July 2, 2025.

A decision was received from PURA on December 17, 2025, approving CWC’s AR.

On July 30, 2025, CWC filed for a WICA increase of $3.1 million in annualized revenue for $24.3 million in completed projects.

On September 24, 2025, PURA approved the filing in its entirety.

The cumulative WICA surcharge as of October 1, 2025 is 7.47%, collecting $9.1 million on an annual basis.

On January 22, 2026, CWC submitted its WQTA application to recover the costs associated with in-progress or completed WQTA-eligible projects through a WQTA surcharge of $0.6 million, or 0.53%.

Also included in this filing was a revised WQTA AR reflecting a comprehensive view of the status of all projects featuring updated project eligibilities, costs and water quality sampling results.

If approved by PURA, the proposed WQTA charge will become effective April 1, 2026.

On January 26, 2026, CWC filed its 2025 WICA reconciliation with PURA for a surcharge of $0.3 million on an annual basis.

The reconciliation, if approved, would be effective for 12 months beginning April 1, 2026.

In addition, on January 26, 2026, CWC filed for a WICA increase of $2.7 million in annualized revenues for $25.7 million in completed projects.

If approved, the cumulative WICA surcharge as of April 1, 2026, will be 9.90%, collecting $12.1 million on an annual basis.

On February 24, 2025, CWC filed its 2024 WRA.

On February 25, 2026, CWC filed its 2025 WRA mechanism.

The mechanism reconciles 2025 revenues as authorized in the CWC’s most recent rate case as well as provides for recovery of certain amounts of executive compensation as the result of the achievement of performance metrics as prescribed by PURA.

The 2024 WRA, if approved by PURA, will be effective for 12 months

beginning on April 1, 2025, and will impose a 3.62% surcharge on customer bills to collect the 2024 revenue shortfall.

If approved, the 2026 WRA surcharges of 5.70% will become effective for 12 months beginning April 1, 2026.

Texas Regulatory Affairs

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

TWC’s rates are subject to the economic regulation of the PUCT.

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

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TWC has no current general rate case pending.

However, it filed its application to establish a System Improvement Charge (“SIC”) with PUCT under Docket No.

54430 on December 30, 2022.

However, TWC continues to amend its existing System Improvement Charge (SIC) for both water and sewer.

SIC filings are used to include certain utility plant additions made from 2020 to present in its rate base, thereby increasing revenue and avoiding the immediate need for a general rate case.

On March 21, 2024, the PUCT filed the final order approving TWC’s request to implement its SIC which applies to certain customers.

As a result of this final order, the SIC is projected to increase TWC’s water revenue by $1.6 million and sewer revenue by $28 thousand within one year of the approval.

On September 12, 2024, TWC filed its application to amend its SIC with the PUCT under Docket No.

Its amended SIC will apply to all customers and seeks to increase its annual water revenue by $3.9 million and its annual sewer revenue by $0.2 million, in addition to the original SIC filed with the PUCT under Docket No.

54430 on December 30, 2022.

On October 14, 2024, the PUCT notified TWC that the filing was administratively complete in order to establish a procedural schedule.

TWC expects to receive the final approval from the PUCT in the first half of 2025.

On September 12, 2024, TWC filed its application to amend its original SIC with the PUCT.

Its amended SIC applies to all customers and increases its annual water revenue by $3.9 million and its annual sewer revenue by $0.2 million, in addition to the original SIC filed with the PUCT on December 30, 2022.

On May 15, 2025, the PUCT filed the final order approving TWC’s amended SIC application.

On October 6, 2025, TWC filed its second application to amend its SIC.

The application seeks to increase TWC annual water revenue by $4.7 million and sewer revenue by $0.3 million, in addition to its amended approved SIC rates.

TWC’s second application to amend its SIC was deemed administratively complete on December 15, 2025, and is expected to be approved mid-2026.

Additionally, TWC is required to file a general rate case on or before March 21, 2028.

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

On April 10, 2023, TWC filed an application with the PUCT to acquire the Elm Ridge water system that serves 21 residential customers.

TWC has asked to acquire the Elm Ridge customers using TWC’s existing rate.

On December 12, 2023, the Administrative Law Judge filed Order No.

11, which allowed TWC to proceed and the acquisition closed on January 26, 2024.

On July 23, 2024, the PUCT filed the final approval which allowed TWC to charge its existing rates to customers of Elm Ridge.

On July 24, 2023, the PUCT approved TWC's application to acquire KT Water Development Ltd.

KT Water Development Ltd.

provides service to approximately 570 residential water connections.

On August 14, 2023, TWC closed on the acquisition.

On March 7, 2024, the PUCT filed the final order which transferred the Certificate of Convenience and Necessity to TWC, approved the fair market value, and allowed TWC to charge its existing rates to the customers of KT Water Development.

On January 5, 2024, TWC filed an application with the PUCT to acquire the 3009 Water Company LLC water system that serves approximately 270 residential connections.

TWC received the PUCT’s approval to proceed with the transaction.

However, on February 24, 2025, TWC terminated the agreement since the seller was not able to meet the requirements of the related purchase and sale agreement.

Maine Regulatory Affairs

MWC’s rates, service and other matters affecting its business are subject to regulation by the MPUC.

MPUC approves rates on a division-by-division basis in Maine and allows MWC to add surcharges to customers’ bills in order to recover certain costs associated with capital projects through the WISC in between general rate cases.

MPUC allows MWC to add surcharges to customers’ bills in order to recover certain costs associated with capital projects through the WISC in

between general rate cases.

Projects eligible for WISC surcharges include all infrastructure replacement or repair projects, excluding meters, that are necessary for the transmission, distribution or treatment of water.

The rates approved in the Biddeford Saco division by the April 5, 2022 stipulated agreement, which authorized a rate increase of $6.3 million, or 72.5% went into effect on July 1, 2022.

The Saco River Drinking Water Resource Center began supplying the water distribution system on June 16, 2022.

As part of the stipulated agreement, MWC agreed to file a final phase of the rate case by April 1, 2023.

Step 3 of the planned multi-year rate filings for the Saco River Drinking Water Resource Center was filed in accordance with the MPUC order on March 31, 2023.

The filing requested an increase in revenue requirement of $2.9 million or 19.9% and requested that the increase be implemented over two years with a 12% increase effective July 1, 2023 followed by a 9% increase effective July 1, 2024 with a slight decrease in year three to reach the overall 19.9% requested.

On August 25, 2023, the MPUC issued an order granting a temporary rate increase of $1.5 million or 10% while the case and the company’s full request are litigated.

On March 31, 2023, MWC filed the third and final step of its multi-year rate case for the Biddeford Saco division related to the Saco Drinking Water Resource Center.

The filing sought a $2.9 million, or 19.9%, increase in revenue requirement, proposed to be phased in over two years with a 12% increase effective July 1, 2023 followed by a 9% increase effective July 1, 2024, with a slight decrease in year three to reach the overall 19.9% requested.

On August 5, 2023 the MPUC issued an order granting a temporary rate increase of $1.5 million or 10% while the case and the company’s full request were litigated.

The company reached a settlement agreement with MPUC and the Office of the Public Advocate and filed a stipulated settlement agreement with the MPUC on December 22, 2023.

The commission approved the stipulation in deliberations on January 5, 2024 with a rate effective date of January 1, 2024.

The approved stipulation authorizes an increase in rates of $2.6 million or 17.6%.

The Biddeford and Saco division’s increase in rates is based on an authorized return on equity of 9.5% along with a capital structure of 49% debt and 51% equity.

This return on equity and capital structure will be used for any future WISC calculations for all divisions until the MPUC has authorized or approved a different return on equity structure in a different proceeding.

The commission approved the stipulation on January 5, 2024, with a rate effective date of January 1, 2024.

The approved stipulation authorized an increase in rates of $2.6 million or 17.6%.

The Biddeford and Saco division’s increase in rates was based on an authorized return on equity of 9.5% along with a capital structure of 49% debt and 51% equity.

This return on equity and capital structure are used for any future WISC calculations for all divisions until the MPUC has authorized or approved a different return on equity structure in a different proceeding.

During the year ended December 31, 2024, MPUC issued orders approving surcharges for the Camden-Rockland, Freeport, Oakland and Millinocket divisions that in aggregate represent annual revenue increases of $0.3 million.

On October 25, 2024, MWC filed an application with MPUC to adjust customer rates in the Camden Rockland division.

The proposal requested an increase in annual revenues of approximately $1.1 million, or 15.9%, over current authorized revenues.

A decision is expected in the second quarter of 2025.

On December 31, 2024, MWC filed for a unified tariff across its 10 separate rate divisions.

A decision in this case is expected in the fourth quarter of 2025.

The proposal requested an increase in annual revenues of approximately $1.1 million, or 15.9%, over then-current authorized revenues.

On June 27, 2025, the MPUC approved a settlement stipulation, authorizing an increase in rate of $0.87 million, or 13.0% with an effective date of July 1, 2025.

On December 31, 2024, MWC filed a request to establish a unified tariff across its ten separate rate divisions.

On January 13, 2026, the MPUC approved a stipulated agreement consolidating those ten districts into a single unified rate structure, effective February 1, 2026.

The agreement also includes authorization for a needs-based financial assistance program consistent with Legislative Document 241, An Act to Authorize the Public Utilities Commission to Approve Rate Adjustments for Low-Income Water Utility Ratepayers, approved by the Maine Legislature and signed into law by the Governor on May 29, 2025.

On April 15, 2025, MWC filed a WISC in both the Oakland and Biddeford Saco divisions.

The combined requested surcharge is 3.00% or $0.5 million.

The MPUC issued an order approving the surcharges on June 24, 2025, with an effective date of July 1, 2025.

On January 30, 2026, MWC issued a Notice of Intent to file a general rate case with the MPUC on or about March 31,2026.

The filing will be the first general rate case since the MPUC’s approval of MWC’s unified rate schedule.

MWC’s proposed revenue requirement will be based on a test year ending December 31, 2025, and adjusted for known and measurable changes and other ratemaking considerations.

MWC expects to propose an annual revenue increase of approximately $12 million.

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.”

Description of Business

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

The principal business of H2O America consists of the production, purchase, storage, purification, distribution, wholesale and retail sale of water and wastewater services.

SJWC provides water services to approximately 232,000 connections that serve approximately one million people over 140 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.

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The original agreement commenced in October 1997 and expired on September 30, 2024.

Effective October 2024, SJWC entered into a new 12-year agreement with Cupertino subject to an additional term of eight years if agreed to by the parties.

SJWC paid an upfront concession fee of $22.1 million in 2024 and agreed to pay, beginning in 2024, an annual investment rent of $1.8 million, subject to adjustment each year based on a specified construction cost index.

Effective October 2024, SJWC entered into a 12-year agreement with Cupertino subject to an additional term of eight years if agreed to by the parties.

SJWC paid an upfront concession fee of $22.1 million in 2024 and agreed to pay, beginning in 2024, an annual investment rent of $1.8 million, subject to adjustment each year based on a

specified construction cost index.

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

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Services provided are dependent on the selected plan.

SJW Land Company owns undeveloped real estate property in California.

SJW Land Company previously owned commercial and warehouse properties in Tennessee, which were sold in 2024.

H2O America Land Company owns undeveloped real estate property in California.

H2O America Land Company previously owned commercial and warehouse properties in Tennessee, which were sold in 2024.

Chester Realty, Inc.

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An additional 40% to 50% of its water supply is pumped from the underground basin which is subject to a groundwater extraction charge paid to Valley Water.

Surface supply, which during a normal rainfall year satisfies about 6% to 8% of SJWC’s annual

water supply needs, provides approximately 1% of its water supply in a dry year and approximately 14% in a wet year.

In dry years, the decrease in water from surface run-off and diversion and the corresponding increase in purchased and pumped water increases production expenses substantially.

Surface supply, which during a normal rainfall year satisfies about 6% to 8% of SJWC’s annual water supply needs, provides approximately 1% of its water supply in a dry year and approximately 14% in a wet year.

In dry years, the decrease in availability of water from surface run-off and diversion and the corresponding increase in purchased and pumped water increases production expenses substantially.

The opposite is also true where water production expenses decrease in wet years.

In both instances, the impacts of surface water, purchased water, groundwater extraction, and purchased power expenses are tracked in SJWC’s Full Cost Balancing Account (“FCBA”) authorized by the CPUC for cost recovery.

The pumps and motors at SJWC’s groundwater production facilities are propelled by electric power.

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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 2024, the level of water in the Santa Clara Valley groundwater basin, which is managed by Valley Water, experienced a decrease in most areas due to a decrease in managed recharge operations and a decline in natural recharge associated with less rainfall compared to 2023.

As reported by Valley Water at the end of 2024, the groundwater level in the Santa Clara Plain was eight feet lower compared to the same time in 2023.

In 2025, the level of water in the Santa Clara Valley groundwater basin, which is managed by Valley Water, experienced a decrease in most areas due to a decrease in managed recharge operations, a decline in natural recharge associated with less rainfall compared to 2024, and an increase in groundwater pumping.

As reported by Valley Water at the end of 2025, the groundwater level in the Santa Clara Plain was six feet lower compared to the same time in 2024.

The total groundwater storage at the end of 2025 was within Stage 1 (Normal) of the Valley Water’s Water Shortage Contingency Plan.

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SJWC’s Montevina Water Treatment Plant treated 2.3 billion gallons of water in 2025, which is 104.7% of the five-year average.

SJWC’s Saratoga Water Treatment Plant remained offline in 2024 for regulatory improvements.

SJWC’s Saratoga Water Treatment Plant treated 40 million gallons of water in 2025.

SJWC believes that its various sources of water supply will be sufficient to meet customer demand in 2026.

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CWC’s water sources vary among the individual systems, but overall, approximately 60% of the total dependable yield comes from surface water supplies and 40% from wells.

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

CWC believes that it will be able to meet customer demand for 2026 with its existing water supply which consists of groundwater from wells, surface water in reservoirs and purchased water treated by neighboring water utilities.

Texas Water Supply

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

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

TWC’s water supply consists of groundwater from wells and purchased treated and raw water from local water agencies.

TWC has long-term agreements with the Guadalupe-Blanco River Authority (“GBRA”), which expire in 2037, 2040, 2044 and 2050.

The agreements, which are take-or-pay contracts, provide TWC with an aggregate of 7,602 acre-feet of water per year from Canyon Lake at prices that may be adjusted periodically by GBRA.

TWC also has raw water supply agreements with the Lower Colorado River Authority (“LCRA”) and West Travis County Public Utility Agency (“WTCPUA”) 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.

TWC also has treated water supply agreements with the Lower Colorado River Authority (“LCRA”) and West Travis County Public Utility Agency (“WTCPUA”) 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.

Forty active production wells located in a Comal Trinity Groundwater Conservation District, a regulated portion of the Trinity aquifer, are charged a groundwater pump tax based upon usage.

TWC expects to meet customer demand for 2026 with TWC’s water supply which consists of groundwater from wells, surface water and purchased treated and raw water from the GBRA, based on current conditions.

In August 2023, SJWTX Holdings Inc.’s unregulated subsidiary, TWR, acquired eight wells and the associated water rights of KT Water Resources LLC (“KTR”).

In August 2023, H2O America TX Holdings Inc.’s unregulated subsidiary, TWR, acquired eight wells and the associated water rights of KT Water Resources LLC (“KTR”).

During the third quarter of 2024, TWC purchased these assets from TWR for use in utility operations.

Accordingly, SJW Group reclassified $28.4 million related to indefinite-lived water rights from other intangible assets to utility plant intangible assets and $11.7 million from nonutility property to utility plant.

Accordingly, H2O America reclassified $28.4 million related to indefinite-lived water rights from other intangible assets to utility plant intangible assets and $11.7 million from nonutility property to utility plant.

These wells have been projected to yield an additional 6,000 acre-feet per year or more.

Development of the KT Water System continues.

Development of the KT Water System remains ongoing.

The Texas service area is currently experiencing drought conditions that result in water usage restrictions for customers .

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None of the franchises have a termination date, other than the franchise for the unincorporated areas of Santa Clara County, which terminates in 2035.

CWC’s utility services hold the necessary franchises to provide water in portions of the towns of Ashford, Avon, Beacon Falls, Bethany, Bolton, Brooklyn, Burlington, Canton, Chester, Clinton, Colchester, Columbia, Coventry, Deep River, Durham, East Granby, East Haddam, East Hampton, East Windsor, Ellington, Enfield, Essex, Farmington, Griswold, Guilford, Haddam, Hebron, Killingly, Killingworth, Lebanon, Madison, Manchester, Mansfield, Marlborough, Middlebury, Naugatuck, Old Lyme, Old Saybrook, Oxford, Plainfield, Plymouth, Portland, Prospect, Simsbury, Somers, Southbury, South Windsor, Stafford, Stonington, Suffield, Thomaston, Thompson, Tolland, Vernon, Voluntown, Waterbury, Westbrook, Willington, Windsor Locks and Woodstock.

Stonington, Suffield, Thomaston, Thompson, Tolland, Vernon, Voluntown, Waterbury, Westbrook, Willington, Windsor Locks and Woodstock.

Additionally, the Heritage Village Water division serves the Town of Southbury with wastewater services.

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

Seasonal Factors

Water sales are seasonal in nature and influenced by weather conditions.

The timing of precipitation and climatic conditions can cause seasonal water consumption by customers to vary significantly.

Demand for water is generally lower during the cooler and rainy winter months.

Demand increases in the spring when the temperature rises and rain diminishes.

The regulated operations of Water Utility Services are public utilities regulated by applicable state public utility commissions and operate within service areas approved by such regulators.

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The laws of the states in which Water Utility Services provide regulated services generally provide that municipalities, water districts, and/or other public agencies of state governments (each, a “Public Agency”) are authorized to engage in the ownership and operation of water systems.

Such Public Agencies are empowered, under certain circumstances, to condemn properties, and/or exercise the right of eminent domain on property operated by privately owned public utilities, upon payment of just

compensation.

Furthermore, under California law, Public Agencies are authorized to issue bonds (including revenue bonds) for the purpose of acquiring or constructing water systems.

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Additionally, public utilities are subject to environmental regulation by various other state and local governmental authorities.

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.

Water Utility Services is in compliance in all material respects with applicable standards under the federal SDWA, including EPA surface‑water treatment performance standards, Stage 2 Disinfectants and Disinfection Byproducts Rule (“DBPR”) requirements, and primary maximum contaminant levels (“MCLs”).

These standards have been adopted and are enforced by the applicable state water, public health and environmental agencies.

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

The site assessments are performed to remove any legacy materials and to obtain site closures from the Santa Clara County Department of Environmental Health under its Voluntary Cleanup Program.

The site assessments are performed to identify any legacy materials and determine the need for remediation, which is then completed to obtain site closures from the Santa Clara County Department of Environmental Health under its Voluntary Cleanup Program.

In April 2024, the EPA issued new national primary drinking water regulations for six PFAS.

The regulations impose maximum contaminant levels and monitoring requirements for the nation’s water systems for six PFAS chemicals under the Safe Drinking Water Act.

The regulations impose maximum contaminant levels and monitoring requirements for the nation’s water systems for six PFAS chemicals under the SDWA.

The final regulation requires water systems to comply with PFAS monitoring and reporting requirements by 2027, and to comply with the maximum contaminant levels by 2029.

SJW Group estimates capital expenditures of approximately $300 million for PFAS treatment based on finalized maximum contaminant levels.

H2O America estimates aggregate capital expenditures of approximately $400 million for PFAS treatment based on finalized maximum contaminant levels.

Water Utility Services is currently in compliance with all state and local public health and environmental regulations applicable to their operations.

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Human Capital Resources

In order to continue to achieve SJW Group’s mission of delivering life sustaining, high-quality water and exceptional service to families, businesses and communities, we are committed to attract, retain and develop the highest quality talent.

In order to continue to achieve H2O America’s mission of providing high-quality water and exceptional service while investing in the health and vitality of the communities we serve, we are committed to attract, retain and develop the highest quality talent.

We believe our employees are our most important asset.

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.

Throughout our organization, our employees embrace the company’s values of do it right, do it together, and do it with heart in everything we do.

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

Through our board and its committees, we are empowered to address factors that impact our employee strategy and drive positive change in our company and our communities.

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competitive wages and benefits;

and training and development opportunities that support our employees to establish and succeed in meaningful careers at SJW Group.

and training and development opportunities that support our employees to establish and succeed in meaningful careers at H2O America.

Basic Workforce Data

As of December 31, 2024, SJW Group had 822 full-time employees, of whom 395 were SJWC employees, 244 were CWC employees, 99 were TWC employees, and 84 were MWC employees.

As of December 31, 2025, H2O America had 837 full-time employees, of whom 396 were SJWC employees, 248 were CWC employees, 109 were TWC employees, and 84 were MWC employees.

At SJWC, 242 employees are members of unions.

Employees working for CWC, MWC and TWC are not represented by unions.

In the first quarter of 2023, SJWC executed 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 (“UWUA”), representing the majority of all non-administrative employees at SJWC covering the period from January 1, 2023

through December 31, 2025.

In the final quarter of 2025, SJWC executed 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 (“UWUA”), representing the majority of all non-administrative employees at SJWC covering the period from January 1, 2026 through December 31, 2028.

The agreements include a 3% wage increase provided in 2026, 3% in 2027, and 4% in 2028 for the union employees.

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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.

H2O America 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 H2O America identified and adopted three core values to guide their work and interactions:

do it right, do it together and do it with heart.

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.

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

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.

Community Involvement

In support of our mission as trusted, passionate and socially responsible professionals, we are dedicated to the people and the environment of the communities where we live, work, and serve.

SJW Group provides various opportunities for our employees to participate in outreach programs from free virtual education programs for adults, employee-led courses for elementary school aged children, winter coat donation drives, environmental cleanups, community events, and grant programs supporting schools and fire departments.

The Force for Good Foundation, established in 2024, is a non-consolidated not-for-profit corporation funded by SJW Group that plans to make contributions to selected charitable organizations with a focus on the communities served.

In support of our mission, we are dedicated to the people and the environment of the communities where we live, work, and serve.

H2O America provides various opportunities for our employees to participate in outreach programs from free virtual education programs for adults, employee-led courses for elementary school aged children, winter coat donation drives, environmental cleanups, community events, and grant programs supporting schools and fire departments.

The Force for Good Foundation, established in 2024, is a non-consolidated not-for-profit corporation funded by H2O America that is making contributions to selected charitable organizations with a focus on the communities served.

SJWC and CWC also have matching donations for certain programs to further promote our employees’ involvement in their communities.

In California, the SJWC Employees Community Fund is a 501(c)(3) charitable organization that uses funds from employee contributions and company matches to provide grants to non-profit organizations supported by our employees.

H2O America has a key commitment to supporting local non-profits through the Force for Good Foundation and building strong community ties.

Fair Wages and Competitive Benefits

SJW Group’s future success is largely dependent upon our ability to attract and retain highly skilled and qualified employees.

H2O America’s future success is largely dependent upon our ability to attract and retain highly skilled and qualified employees.

Our California and Connecticut subsidiaries operate in particularly competitive labor markets;

we believe our compensation

package and benefit programs allow us to recruit and retain talented and qualified personnel.

we believe our compensation package and benefit programs allow us to recruit and retain talented and qualified personnel.

Our compensation and benefits programs include:

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• A comprehensive annual employee performance review process pursuant to which we determine and communicate to employees annual merit increases, promotions and other changes to responsibilities and duties;

• Eligibility for all employees to participate in health insurance, dental, vision, cafeteria plans, life and disability/accident coverage, retirement plans and/or salary deferral plans, an employee stock purchase plan, paid and unpaid leaves, a commuter assistance program, professional education and training, and tuition assistance.

• Eligibility for all full-time employees to participate in health insurance, dental, vision, cafeteria plans, life and disability/accident coverage, retirement plans and/or salary deferral plans, an employee stock purchase plan, paid and unpaid leaves, a commuter assistance program, professional education and training, and tuition assistance.

Executive Officers of the Registrant

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Name Age Offices and Experience

Willie Brown 57 SJW Group—Vice President and General Counsel.

Brown serves as Vice President and General Counsel of SJW Group and SJWC since June 2021.

Brown served as Corporate Secretary of SJW Group and SJWC from January 2020 to October 2023.

Brown served as Assistant General Counsel of SJW Group and SJWC from January 2020 to June 2021.

Willie Brown 58 H2O America—Vice President and General Counsel.

Brown serves as Vice President and General Counsel of H2O America and SJWC since June 2021.

Brown served as Corporate Secretary of H2O America and SJWC from January 2020 to October 2023.

Brown served as Assistant General Counsel of H2O America and SJWC from January 2020 to June 2021.

From April 2018 to October 2023, Mr.

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

Douwe Busschops

44 SJW Group—Chief Information Officer.

Busschops serves as Chief Information Officer of SJW Group, SJWC, and CWC since December 2024.

Previously, Mr.

Busschops served as Vice President and Chief Information Officer for the Municipal Water division of Veolia North America from 2022 to 2024.

Prior to this, Mr.

Busschops held senior roles at SUEZ Water North America since 2013, including Vice President of Customer Experience.

Busschops served as the Chairman of the Customer Experience Committee for the National Association of Water Companies from 2020 to 2021 .

Hauk 54 SJW Group—Chief Operating Officer.

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

Hauk 55 H2O America—President and Chief Operating Officer.

Hauk serves as President of H2O America since July 2025, and Chief Operating Officer of H2O America, SJWC, CTWS, and TWC since January 2023.

Hauk was the Chief Corporate Development and Strategy Officer of H2O America, SJWC, CTWS, and TWC from August 2022 to December 2022.

Prior to joining the Company, Mr.

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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 58 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, since April 2020.

Johnson 59 H2O America—Senior Vice President and Chief Administrative Officer.

Johnson serves as President of Shared Services, Senior Vice President since November 2022 and Chief Administrative Officer of H2O America, since April 2020.

Johnson also serves as Senior Vice President of Administration for CTWS and certain of its subsidiaries since November 2019.

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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.

Tanya Moniz-Witten

53 SJWC—President.

Moniz-Witten serves as President of SJWC since March 2024.

Prior to joining SJWC, Ms.

Moniz-Witten served as the Vice President, Electric Distribution Field Operations (New England) of National Grid from January 2021 to March 2024.

Prior to joining National Grid, Ms.

Moniz-Witten served in various roles at Pacific Gas and Electric Company, including up to Senior Director of Electric Distribution Field Operations (Bay / Central Region) from October 2019 to January 2021.

Patla 57 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 64 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 TWC since November 2017.

Thornburg serves as Chair of the Board of Directors of SJW Group, SJWC, SJW Land Company, and TWC since April 2018, and Chair of the Board of Directors of SJWNE LLC, and CTWS and its subsidiaries since October 2019.

Prior to joining SJW Group, Mr.

Thornburg served as President and Chief Executive Officer of CTWS from 2006 until 2017, and Chair of the Board of CTWS from 2008 to 2017.

Thornburg served as President of Missouri-American Water, a subsidiary of American Water Works Corporation from 2000 to 2004.

From July 2004 to January 2006, Mr.

Thornburg served as Central Region Vice President-External Affairs for American Water Works Corporation.

Walters 54 SJW Group—Chief Financial Officer and Treasurer.

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

Walters also serves as Chief Financial Officer of CTWS and its subsidiaries since April 2023.

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 from January 2014 until January 2019.

She served as the Corporate Secretary of MWC until July 2020.

55 H2O America—Chief Financial Officer and Treasurer.

Kelly serves as Chief Financial Officer and Treasurer of H2O America, SJWC, CTWS, TWC, CWC, and MWC since July 2025.

Kelly served as Chief Accounting Officer and Principal Accounting Officer of H2O America, and Chief Accounting Officer of SJWC, CTWS, TWC, CWC, and MWC from November 2024 to June 2025.

Prior to joining H2O America, Ms.

Kelly was Executive Vice President Finance and Chief Financial Officer of American Electric Power from November 2022 to September 2023.

From December 2014 to November 2022, Ms.

Kelly served in various roles of increasing responsibility at UGI Corporation and its subsidiaries.

Kelly also previously served as Vice President Finance and Chief Financial Officer, AmeriGas Propane, a UGI subsidiary.

Walters 55 H2O America—Chairman of the Board of Directors and Chief Executive Officer.

Walters serves as Chairman of the Board of Directors since February 2026 and Chief Executive Officer of H2O America, SJWC, CTWS, TWC, CWC, and MWC since July 2025.

Walters also served as Chief Financial Officer and Treasurer of H2O America, SJWC, CTWS, TWC, CWC, and MWC from January 2022 to June 2025.

Walters served as Chief Corporate Development Officer and Integration Executive of H2O America from November 2019 until January 2022, and previously served as Chief Administrative Officer of SJWC from January 2014 until January 2019.

Walters also served as the Vice President of Business Planning of CWC and CTWS from November 2019 until January 2022.

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Name Age Offices and Experience

54 SJW Group—Chief Accounting Officer, Principal Accounting Officer.

Kelly serves as Chief Accounting Officer and Principal Accounting Officer of SJW Group, and Chief Accounting Officer of SJWC, CTWS, TWC, CWC, and MWC since November 2024.

Prior to joining SJW Group, Ms.

Kelly was Executive Vice President Finance and Chief Financial Officer of American Electric Power (“AEP”) from November 2022 to September 2023, one of the nation’s largest pure play electric companies.

From December 2014 to November 2022, Ms.

Kelly served in various roles of increasing responsibility at UGI Corporation and its subsidiaries, a natural gas, propane, and electric power distribution company.

Kelly also previously served as Vice President Finance and Chief Financial Officer, AmeriGas Propane, a UGI subsidiary.

Megan Mattern

44 H2O America—Chief Accounting Officer, Principal Accounting Officer, and Controller.

Mattern serves as Chief Accounting Officer, Principal Accounting Officer, and Controller of H2O America, and Chief Accounting Officer of SJWC, CTWS, TWC, CWC, and MWC since July 2025.

Prior to joining H2O America, Ms.

Mattern was Vice President and Chief Financial Officer of UGI International, a subsidiary of UGI Corporation (“UGI”), from August 2022 to July 2025, and was Deputy UGI International from May 2024 to March 2025.

From November 2019 to September 2022, Ms.

Mattern served as Vice President and Chief Financial Officer at UGI Energy Services, LLC, a subsidiary of UGI.

Previously, Ms.

Mattern served in various roles of increasing responsibility at subsidiaries of UGI from May 2016 to November 2019.

Prior to joining UGI, Ms.

Mattern served in various roles of increasing responsibility at the regulated electric and unregulated businesses of PPL Corporation from 2004 to May 2016.

Available Information

SJW Group’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and amendments to these reports, are made available free of charge through SJW Group’s website at http://www.sjwgroup.com , as soon as reasonably practicable, after SJW Group electronically files such material with, or furnishes such materials to, the SEC.

The content of SJW Group’s website is not incorporated by reference to or part of this report.

H2O America’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and amendments to these reports, are made available free of charge through H2O America’s website at www.h2o-america.com, as soon as reasonably practicable, after H2O America electronically files such material with, or furnishes such materials to, the SEC.

The content of H2O America’s website is not incorporated by reference to or part of this report.

You may obtain electronic copies of our reports filed with the SEC on the SEC website at http://www.sec.gov .

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