The Board of Directors and Stockholders
California Water Service Group:
We have audited the accompanying consolidated balance sheets of
California Water Service Group and subsidiaries as of December 31, 2005
and 2004, and the related consolidated statements of income, common
stockholders’ equity and comprehensive income, and cash flows for each
of the years in the three-year period ended December 31, 2005. These
consolidated financial statements are the responsibility of the
management of California Water Service Group. Our responsibility is to
express an opinion on these consolidated financial statements based on
our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable
basis for our opinion.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of
California Water Service Group and subsidiaries as of December 31, 2005
and 2004, and the results of their operations
and their cash flows for each of the years in the three-year period
ended December 31, 2005, in conformity with U.S. generally accepted
accounting principles.
We also have audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), the effectiveness of
the internal control over financial reporting of California Water
Service Group and subsidiaries as of December 31, 2005, based on the
criteria established in Internal Control – Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO), and our report dated March 9, 2006, expressed an
unqualified opinion on management’s assessment of, and the effective
operation of, internal control over financial reporting. |