As reported previously, Baird analyst Ben Kallo upgraded California Water Service to Outperform from Neutral. The analyst believes water utilities can be a relative safe haven and could benefit from a shift to less risky investments. Although valuations are high, he believes premiums are warranted given the market volatility and compelling sector growth. Kallo raised his price target to $50 from $41 on California Water Service shares.

California Water Service confirmed that its water systems will meet the new state maximum contaminant level of 10 parts per billion for chromium-6, which was adopted today by the State Water Resources Control Board. Cal Water developed and installed treatment for the contaminant in its impacted water systems in Dixon, Oak Hills (Salinas), Las Lomas (Salinas), and Willows when the same chromium-6 MCL, which was subsequently vacated for administrative reasons, was originally set in 2014. In fact, Cal Water's treatment system design was used as a model for other water utilities. After the MCL was vacated, Cal Water continued to treat those wells to protect customer health and safety. Cal Water plans to install treatment at a newer well that was brought online in Oak Hills, as well as at another well in Dixon that currently does not serve customers but could, if needed, within the two- to four-year compliance timeline. All other active wells above the MCL in these service areas are already being treated. "We take our responsibility to protect our customers' health and safety very seriously; that's why we continued to treat impacted water systems after the chromium-6 MCL was temporarily vacated," said Martin A. Kropelnicki, Cal Water Chairman & CEO. "We remain committed to meeting all state and federal standards set to protect public health and safety."