California Water Service Group / "Environmental Protection" | Tables in SEC filings

CWT California Water Service Group

Definitive proxy

2023 Annual Short-Term At-Risk Performance Goals

Water Quality and Public Health Weight: 20%

This metric evaluates performance based on the number of procedural violations and violations of primary and secondary drinking water standards. The CPUC has authority to set drinking water standards for Cal Water. It has adopted the California State Water Resources Control Board, Division of Drinking Water (DDW) standards, which also incorporate U.S. Environmental Protection Agency (EPA) drinking water standards. Similarly, the Group’s subsidiaries in Washington, Hawaii, and New Mexico are regulated by their respective state health regulators and the EPA. We have continued to include all state operations in the performance metric for primary water quality. The secondary and procedural water quality metrics measure activity in the California subsidiary only, but in the future, secondary and procedural water quality metrics could include other states’ compliance. • A primary drinking water standard violation is related to public health, either acute or long-term • A secondary drinking water standard violation is related to taste or aesthetics, such as excessive iron and manganese, which can generate customer complaints • A procedural drinking water violation is a missed sample or other non-compliance item that is not a violation of a primary or secondary drinking water standard We make it a priority to meet all water quality standards, every day, in every service area. For this reason, the target performance level was set for no primary drinking water standard violations, two or fewer secondary drinking water standard violations, and no more than four procedural drinking water violations.

Performance Level*

Primary Drinking Water Standards Violations (all states)

Secondary Drinking Water Standards Violations (California only)

Procedural Drinking Water Violations (California only)

Percent of Target Earned

Maximum

200%

Target

2 or fewer

Up to 4

100%

Threshold

1 or fewer

4 or fewer

Up to 8

50%

* An additional tier applies between the target and maximum level

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