9. Financial Information

For the 12-month period ending September 30, 2009, CalWater reported total regulated operating revenues of $408,312,385 and net income of $441,864,465, as shown on its Pro Forma Income Statement and Return on Equity, attached as Exhibit B to the Application.

CalWater's Balance Sheet at September 30, 2009, Exhibit A to the Application is summarized as follows:

Assets	Amount
Net Utility Plant	$1,093,963,982
Current Assets	$142,488,798
Other Assets	$226,977,331
Total Assets	$1,463,430,111

Capitalization and Liabilities

	Amount
Common Stockholder's Equity (Total Equity)	$389,579,359
Liabilities	Amount
Long Term Debt	$369,949,109
Current Liabilities	$109,719,102
Unamortized Investment Tax Credit	$2,392,472
Deferred Income Taxes	$81,990,380
Regulatory Liabilities	$20,729,047
Advances for Construction	$181,229,798
Contributions in Aid of Construction (CIAC)	$100,632,202
Other Long-Term Liabilities	$207,208,642
Total Liabilities	$1,073,850,752
Total Capitalization and Liabilities	$1,463,430,111

Construction Budget

CalWater's Projected Company Funded Expenditures for Utility Plant for 2010 through 2014, as shown in Exhibit D to the Application,¹⁶ are as follows:

(Dollars in Thousands)
Components	2010	2011	2012	2013	2014	Total (5-year)
Land and Land Rights	$3,383	3,654	3,946	4,262	4,603	$19,848
Structures and Improvements	$15,874	8,217	8,957	9,763	10,641	$53,452
Wells	$1,683	4,818	5,059	5,312	5,577	$22,449
Storage	$21,821	10,341	10,651	11,064	11,396	$65,274
Pumping & Wtr. Trmt. Equip.	$36,760	38,230	36,319	37,772	39,283	$188,361
Trans. & Distrib. Mains	$25,037	20,950	20,322	21,338	21,444	$109,090
Services	$5,812	6,050	6,180	6,489	6,521	$31,052
Meters	$7,694	8,310	8,974	9,692	10,468	$45,138
Hydrants	$1,906	1,060	1,080	1,134	1,140	$6,320
General Equipment	$12,014	10,380	10,600	11,130	11,186	$55,310
Construction Totals	$131,984	112,010	112,088	117,956	122,259	$596,297

We will not make a finding in this decision on the reasonableness of
CalWater's projected construction program. Construction expenditures and the resulting plant balances in rate base are issues that are normally addressed in GRC.

Estimated Cash Flow and External Financing

CalWater's estimate of cash requirements for 2010 through 2014, as shown in Exhibit D to the Application, is summarized as follows:

(Dollars in Thousands)
Components	2010	2011	2012	2013	2014	Total (5-year)
Construction Budget	$131,984	112,009	112,087	117,955	122,258	$596,292
Tax on CIAC	$1,500	1,900	2,300	2,700	3,100	$11,500
Extension Refunds17	$5,494	5,714	5,943	6,180	6,428	$29,759
Maturity of Bonds	$11,700	1,700	5,400	45,637	1,700	$66,137
Short-Term Debt (net)	$2,907	2,471	0	2,112	0	$7,490
Dividend Payments	$23,401	25,845	26,060	26,272	26,491	$128,074
Total Cash Requirements	$176,986	149,639	151,790	200,859	159,977	$839,252

Projected Cash Received

(Dollars in Thousands)
	2010	2011	2012	2013	2014	Total (5-year)
Total Cash Requirements	$176,987	149,639	151,790	200,859	159,977	$839,252
Cash Received from Internal Sources	$78,538	87,356	94,052	99,228	104,701	$463,874
External Financing Requirements	$98,449	62,283	57,738	101,632	55,276	$375,378
Beginning Cash Balance	$38,827	18,377	56,095	-1,643	-3,275	0
Issue New Long-Term Debt	$80,000	0	0	0	70,000	$150,000
Issue of New Equity	0	100,000	0	100,000	0	$200,000
Sub-Total (Cash Balance)	$18,377	56,095	-1,643	-3,275	11,449	$350,000

CalWater's projected cash requirements indicates that internally generated funds will provide approximately $463,874,000 or 55% of its total cash requirements of $839,252,000 for years 2010 through 2014. The requested $350,000,000 is necessary to help CalWater meet its $375,378,000 external financing requirements for these years.

Capital Ratios

CalWater's capital ratios as of September 30, 2009, as shown in Exhibit G to the Application, are presented below as recorded and adjusted to give pro forma effect to the projected issuance of $200,000,000 of Common Stock and $150,000,000 of debt securities requested in the Application:

	Recorded	Adjustments	Proforma
Common Stock Equity	$389,579,359 (51.3%)	$200,000,000	$589,579,359 (53.1%)
First Mortgage Bonds	$367,172,727 (48.3%)	150,000,000	$517,172,727 (46.6%)
Other Long Term Debt	$2,776,382 (0.40%)		$2,776,382 (0.3%)
Sub-Total (Debt)	$369,949,109 (48.7%)	350,000,000	$519,949,109 (46.9%)
Total Capitalization	$759,528,468 (100.0%)	350,000,000	$1,109,528,468 (100%)

Capital structures are normally subject to review in cost of capital or GRC proceedings. We will not therefore, make a finding in this decision of the reasonableness of the projected capital ratios for ratemaking purposes.

¹⁶ Corrected for minor addition errors.

¹⁷ Pertains to CIAC Main Extension Contracts.