CALIFORNIA WATER SERVICE GROUP 18 Ten-Year Financial Review Dollars in thousands, except per share amounts 2002 2001 2000 SUMMARY OF OPERATIONS Operating revenue Residential $184,894 $173,823 $171,234 Business 46,404 44,944 44,211 Industrial 11,043 9,907 11,014 Public authorities 12,706 11,860 11,609 Other 8,104 6,286 6,738 Total operating revenue 263,151 246,820 244,806 Operating expenses 232,854 221,669 211,610 Interest expense, other income and expenses, net 11,224 10,186 13,233 Net income $ 19,073 $ 14,965 $ 19,963 COMMON SHARE DATA Earnings per share – diluted $ 1.25  $ 0.97  $ 1.31  Dividend declared  1.12 1.115 1.100  Dividend payout ratio 90% 115% 84% Book value $ 13.12  $ 12.95  $ 13.13  Market price at year-end 23.65 25.75 27.00  Common shares outstanding at year-end (in thousands) 15,182 15,182 15,146 Return on average common stockholders’ equity 9.7% 7.6% 10.1% Long-term debt interest coverage 2.73  2.64  3.31  BALANCE SHEET DATA Net utility plant $696,988 $624,342 $582,782 Utility plant expenditures 88,800 62,049 37,161 Total assets 800,582 710,214 666,605 Long-term debt including current portion 251,365 207,981 189,979 Capitalization ratios: Common stockholders’ equity 44.0% 48.8% 51.1% Preferred stock 0.7% 0.9% 0.9% Long-term debt 55.3% 50.3% 48.0% OTHER DATA Water production (million gallons) Wells and surface supply 67,488 65,283 65,408 Purchased 64,735 61,343 62,237 Total water production 132,223 126,626 127,645 Metered customers 380,087 371,281 366,242 Flat-rate customers 78,901 79,146 78,104 Customers at year-end, including Hawthorne 458,988 450,427 444,346 New customers added 8,561 6,081 5,219 Revenue per customer $ 579  $ 552  $ 554  Utility plant per customer 2,182 2,020 1,916 Employees at year-end 802  783  797 