CALIFORNIA WATER SERVICE GROUP (COMPANY) PROVIDES HIGH-QUALITY WATER UTILITY SERVICES TO 2 MILLION PEOPLE BY MEANS OF FOUR SUBSIDIARIES: 

CALIFORNIA WATER SERVICE COMPANY (CAL WATER),WASHINGTON WATER SERVICE COMPANY (WASHINGTON WATER), NEW MEXICO WATER SERVICE COMPANY (NEW MEXICO WATER), AND CWS UTILITY SERVICES. REGULATED BY STATE UTILITY COMMISSIONS, CAL WATER,WASHINGTON WATER, AND NEW MEXICO WATER PROVIDE WATER UTILITY SERVICES TO CUSTOMERS IN 98 COMMUNITIES THROUGHOUT CALIFORNIA,WASHINGTON, AND NEW MEXICO.THE COMPANY EXPECTS TO BEGIN PROVIDING REGULATED WATER SERVICES IN HAWAII BY MID-2003 UPON COMPLETION OF ITS ACQUISITION OF THE KAANAPALI WATER CORPORATION. CWS UTILITY SERVICES CONDUCTS THE COMPANY’S NON-REGU- LATED BUSINESS,WHICH INCLUDES PERFORMING BILLING AND METER READING SERVICES AND FULL-SYSTEM WATER OPERATIONS FOR CITIES AND COMPANIES IN CALIFORNIA,WASHINGTON, AND NEW MEXICO. 

## CONTENTS 

Letter to Stockholders 2 

Financial Section 18 

Independent Auditor's Report 55 

Corporate Information 56 

Board of Directors 57 

