8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (date of earliest event reported): May 30, 2007

CALIFORNIA WATER SERVICE GROUP

(Exact name of Registrant as Specified in its Charter)

Delaware
(State or other jurisdiction
of incorporation) 1-13883
(Commission file number) 77-0448994
(I.R.S. Employer
Identification Number)

1720 North First Street
San Jose, California
(Address of principal executive offices) 95112
(Zip Code)

(408) 367-8200
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 1.01. Entry into a Material Definitive Agreement.
	Item 1.02. Termination of a Material Definitive Agreement.
	Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.
	Item 8.01. Other Events.
	Item 9.01. Financial Statements and Exhibits.
SIGNATURES
Exhibit Index
EXHIBIT 99.1

Item 1.01. Entry into a Material Definitive Agreement.

On May 30, 2007, California Water Service Group, a Delaware corporation (CWSGP), and its subsidiaries, California Water Service Company, CWS Utility Services, New Mexico Water Service Company, Washington Water Service Company, and Hawaii Water Service Company, Inc., entered into two unsecured loan agreements with Bank of America, N.A. (the “Lender”). All commitments under the Prior Revolving Facilities were terminated effective upon the closing of the Revolving Facilities.

California Water Service Company entered into an unsecured loan agreement with the Lender providing for a $55.0 million revolving line of credit. Proceeds of the Revolving Facilities will be used for working capital, general corporate purposes, to bridge capital expenditures, and acquisitions.

California Water Service Group and subsidiaries (CWS Utility Services, New Mexico Water Service Company, Washington Water Service Company, and Hawaii Water Service Company, Inc.) entered into an unsecured loan agreement with the Lender providing for a $20.0 million revolving credit facility.

The current Revolving Facilities expires on May 30, 2012, and all obligations there under shall be due and payable on May 30, 2012, unless earlier accelerated upon the occurrence of an event of default. Borrowings under the Revolving Facilities will bear interest annually at the Lender’s Prime Rate minus 1.50% or alternatively at LIBOR plus 0.25%. Interest will be due monthly until payment in full of any principal outstanding under the Revolving Facilities.

The Revolving Facilities contain affirmative and negative covenants and events of default customary for financings of this type, including, among other things, limitations and prohibitions relating to the use of proceeds, loans and investments, additional indebtedness, liens, mergers, and asset sales. The Revolving Facilities also contain financial covenants governing the ratio of earnings before interest, taxes, depreciation and amortization of limited investment (EBITDA) to interest and rent expense. Debt to capitalization should not exceed 0.667:1.0.

Item 1.02. Termination of a Material Definitive Agreement.

The disclosure required by this item is included in Item 1.01 and is incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.

The disclosure required by this item is included in Item 1.01 and is incorporated herein by reference.

Item 8.01. Other Events.

On May 31, 2007, the Company issued a press release announcing the transactions described herein, a copy of which is attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

      We hereby furnish the following exhibit with this report:

Exhibit
No.	Description
99.1	Press Release issued May 31, 2007

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CALIFORNIA WATER SERVICE GROUP
Date: May 31, 2007	By:	/s/ Martin A. Kropelnicki
		Name:	Martin A. Kropelnicki
		Title:	Vice President, Chief Financial Officer and Treasurer

Exhibit Index

Exhibit
No.	Description
99.1	Press Release issued May 31, 2007

EX-99.1

Exhibit 99.1

	1720 North First Street	May 31, 2007
	San Jose, CA 95112-4598
Contact:	Marty Kropelnicki (408) 367-8200 (analysts)	For Immediate Release
	Shannon Dean (310) 257-1435 (media)

CALIFORNIA WATER SERVICE GROUP SIGNS RENEWAL OF REVOLVING
CREDIT AGREEMENT

SAN JOSE, Calif.—California Water Service Group (NYSE: CWT) today announced that California Water Service Group and its subsidiaries, California Water Service Company, CWS Utility Services, New Mexico Water Service Company, Washington Water Service Company, and Hawaii Water Service Company, Inc., entered into two unsecured loan agreements with Bank of America, NA (“Lender”).

     California Water Service Company entered into an unsecured loan agreement with the Lender providing for a $55.0 million revolving line of credit.

     In addition, California Water Service Group and four of its subsidiaries (CWS Utility Services, New Mexico Water Service Company, Washington Water Service Company, and Hawaii Water Service Company, Inc.), entered into an unsecured loan agreement with the Lender providing for a $20.0 million revolving line of credit.

     Proceeds from the Revolving credit Facilities will be used for working capital, general corporate purposes, to bridge capital expenditures, and acquisitions.

     California Water Service Group is the parent company of California Water Service Company, Washington Water Service Company, New Mexico Water Service Company, Hawaii Water Service Company, Inc., and CWS Utility Services. Together these companies provide regulated and non-regulated water service to more than 2 million people in 100 California, Washington, New Mexico, and Hawaii communities. Group’s common stock trades on the New York Stock Exchange under the symbol “CWT”.

     This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (“Act”). The forward-looking statements are intended to qualify under provisions of the federal securities laws for “safe harbor” treatment established by the Act. Forward-looking statements are based on currently available information, expectations, estimates, assumptions and projections, and management’s judgment about the Company, the water utility industry and general economic conditions. Such words as expects, intends, plans, believes, estimates, assumes, anticipates, projects, predicts, forecasts or variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not guarantees of future performance. They are subject to uncertainty and changes in circumstances. Actual results may vary materially from what is contained in a forward-looking statement. Factors that may cause a result different than expected or anticipated include, but not limited to,: governmental and regulatory commissions’ decisions; changes in regulatory commissions’ policies and procedures; the timeliness of regulatory commissions’ actions concerning rate relief; new legislation; electric power interruptions; increases in suppliers’ prices and the availability of supplies including water and power; fluctuations in interest rates; changes in environmental compliance and water quality requirements; acquisitions and our ability to successfully integrate acquired companies; the ability to successfully implement business plans; changes in customer water use patterns; the impact of weather on water sales and operating results; access to sufficient capital on satisfactory terms; civil disturbances or terrorist threats or acts, or apprehension about the possible future occurrences of acts of this type; the involvement of the United States in war or other hostilities; restrictive covenants in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt or pay dividends; and, other risks and unforeseen events. When considering forward-looking statements, you should keep in mind the cautionary statements included in this paragraph, as well as the annual 10-K, Quarterly 10-Q, and other reports filed from time-to-time with the Securities and Exchange Commission (SEC). The Company assumes no obligation to provide public updates of forward-looking statements.

     Additional information is available at our Web site at www.calwatergroup.com.

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Source: California Water Service Group