Ten-Year Financial Review Dollars in thousands, except common share data 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 Summary of Operations Operating revenue Residential $173,823 $171,234 $163,681 $150,491 $158,210 $148,313 $132,859 $127,228 $122,585 $111,353 Business 44,944 44,211 41,246 38,854 40,520 37,605 35,873 33,712 31,360 29,208 Industrial 9,907 11,014 12,695 10,150 10,376 9,748 9,952 9,080 8,415 7,905 Public authorities 11,860 11,609 10,898 9,654 11,173 10,509 9,585 9,397 8,535 7,899 Other 6,286 6,738 6,417 5,777 4,886 4,083 4,833 3,767 4,985 7,104 Total operating revenue 246,820 244,806 234,937 214,926 225,165 210,258 193,102 183,184 175,880 163,469 Operating expenses 221,669 211,610 201,890 183,245 188,020 177,356 164,958 155,012 145,517 137,401 Interest expense, other income and expenses, net 10,186 13,233 11,076 11,821 11,388 11,502 11,176 11,537 12,785 11,794 Net income $ 14,965 $ 19,963 $ 21,971 $ 19,860 $ 25,757 $ 21,400 $ 16,968 $ 16,635 $ 17,578 $ 14,274 Common Share Data* Earnings per share - diluted $ 0.97 $ 1.31 $ 1.44 $ 1.31 $ 1.71 $ 1.42 $ 1.13 $ 1.17 $ 1.26 $ 1.02 Dividend declared  1.115 1.100 1.085 1.070 1.055 1.040 1.020 0.990 0.960 0.930 Dividend payout ratio 115% 84% 75% 82% 62% 73% 90% 85% 76% 91% Book value $ 12.95 $ 13.13 $ 12.89 $ 12.49 $ 12.15 $ 11.47 $ 10.97 $ 10.72 $ 10.03 $ 9.65 Market price at year-end 25.75 27.00 30.31 31.31 29.53 21.00 16.38 16.00 20.00 16.50 Common shares outstanding at year-end (in thousands) 15,182 15,146 15,094 15,015 15,015 15,015 14,934 14,890 13,773 13,773 Return on average common stockholders’ equity 7.6% 10.1% 11.5% 10.8% 14.5% 12.8% 10.6% 11.1% 12.6% 10.7% Long-term debt interest coverage 2.87 3.58 3.79 3.64 4.37 3.81 3.41 3.49 3.34 3.21 Balance Sheet Data Net utility plant $624,342 $582,782 $564,390 $538,741 $515,917 $495,985 $471,994 $455,769 $437,065 $419,194 Utility plant expenditures 62,049 37,161 48,519 41,061 37,511 40,310 31,031 32,435 31,097 37,698 Total assets 710,214 666,605 645,507 613,143 594,444 569,745 553,027 516,507 497,717 451,754 Long-term debt including current portion 207,981 189,979 171,613 152,674 153,271 151,725 154,416 138,628 138,863 130,971 Capitalization ratios: Common stockholders’ equity 48.8% 51.1% 53.0% 54.6% 53.8% 52.7% 50.9% 52.9% 49.3% 49.7% Preferred stock 0.9% 0.9% 0.9% 1.0% 1.0% 1.1% 1.1% 1.2% 1.2% 1.3% Long-term debt 50.3% 48.0% 46.1% 44.4% 45.2% 46.2% 48.0% 45.9% 49.5% 49.0% Other Data Water production (million gallons) Wells and surface supply 65,283 65,408 65,144 57,482 63,736 60,964 54,818 53,274 48,598 55,641 Purchased 61,343 62,237 58,618 54,661 59,646 56,769 57,560 59,850 59,103 49,303 Total water production 126,626 127,645 123,762 112,143 123,382 117,733 112,378 113,124 107,701 104,944 Metered customers 371,281 366,242 361,235 354,832 350,139 345,307 335,238 332,146 326,564 322,457 Flat-rate customers 79,146 78,104 77,892 77,568 77,878 77,991 78,330 79,159 81,416 82,617 Customers at year-end, including Hawthorne 450,427 444,346 439,127 432,400 428,017 423,298 413,568 411,305 407,980 405,074 New customers added 6,081 5,219 6,727 4,383 4,719 9,730 2,263 3,325 2,906 3,769 Average revenue per customer $ 552 $ 554 $ 539 $ 500 $ 529 $ 502 $ 468 $ 447 $ 433 $ 404 Utility plant per customer at year-end 2,020 1,916 1,851 1,768 1,694 1,632 1,580 1,520  1,459 1,400 Employees at year-end 783 797 790 759 752 740 738 729 717 706 * Common share data is restated to reflect the effective two-for-one stock split on December 31, 1997 15 CALIFORNIA WATER SERVICE GROUP 14 CALIFORNIA WATER SERVICE GROUP