The coming years will no doubt present challenges, including the time that it will take to fully implement the California Public Utilities Commission's Water Action Plan and recover higher expenses associated with health care, pensions, and Sarbanes-Oxley compliance.
We are confident that we are capable of overcoming challenges that arise. Next year, we will seize the opportunity to file rate cases for every California operation, and if we are successful, we will significantly reduce the time it takes to fully recover reasonable expense increases. We will pursue growth opportunities that benefit customers and add value to stockholders. We will continue to evaluate and improve the way we do business to increase efficiency. And we will remain focused on our strategy, which has proven successful in both favorable and unfavorable business climates.
Most importantly, we can take pride in the value of the services we provide, services that you make possible as a stockholder in the company. As the largest investor-owned water utility in the state, we stand to gain much from anticipated improvements in California utility regulation. This, combined with our reputation for providing excellent customer service, positions us well for future success.
We wish you the best in 2007 and thank you for your continued investment in California Water Service Group.
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| Robert W. Foy Chairman of the Board |
Peter C. Nelson President and Chief Executive Officer |