Adds 570 service connections and increases
water supply by approximately 40% in rapidly growing Comal County,
Texas
The Texas Water Company, a subsidiary of SJW Group (NYSE: SJW),
today announced that it has closed on the acquisitions of KT Water
Development Ltd. and KT Water Resources L.P. The acquisitions will
add 570 residential water service connections and an approximately
40% increase in the systemwide water supply available for current
customer needs and future growth.
“We are a pure-play water and wastewater utility, and we are
eager to serve our new customers in Comal County, Texas, and
deliver high-quality water and reliable service to them,” stated
Eric W. Thornburg, SJW Group chair, president and CEO. Thornburg
added, “One critical aspect of this acquisition is the substantial
water supplies that come with KT Water Resources. Our Texas service
area is experiencing sustained and rapid population growth. The
approximately 40% increase in supply will enable us to serve growth
in the region for years to come.”
KT Water Development Ltd. currently serves approximately 570
customers in southern Comal County, Texas, with potential expansion
opportunities of 150 connections.
KT Water Resources L.P. is a wholesale groundwater resource
supplier to KT Water Development Ltd. The acquisition of KT Water
Resources L.P. significantly increases system resiliency and
improves Texas Water’s position to provide ample water for
projected customer growth estimated through 2070.
“Our customers will begin seeing the benefits of our acquisition
of KT Water Resources in the next two to three years,” stated
Thomas Hodge, president of Texas Water Resources LLC, a
nonregulated subsidiary of SJW Group in Texas that acquired the
assets of KT Water Resources. Hodge added, “Integrating additional
water supply from KT Water Resources to the entirety of our service
area will require a substantial investment in drinking water
infrastructure in the form of water treatment, pumping,
distribution, and storage facilities. The design work and planning
are well underway.”
The Public Utilities Commission of Texas approved the
acquisition of KT Water Development on July 24. The acquisition of
KT Water Resources did not require PUCT approval.
The Texas Water Company requested an applied rate doctrine
treatment for this acquisition through the PUCT, which would allow
the existing rates of The Texas Water Company to be applied to KT
Water Development. A decision on applied rate treatment is expected
in the fourth quarter of 2023, when the PUCT is expected to issue
its final approval.
The Texas Water Company, located in the growth pathway between
San Antonio and Austin, serves customers in three of the five
fastest-growing counties in the United States. The company has
closed more than 20 acquisitions since 2006 and has more than
quadrupled the number of customers it serves from 6,500 water
connections to over 26,000 water and 900 wastewater
connections.
About The Texas Water Company
The Texas Water Company, a subsidiary of SJW Group, is a public
water utility situated in the Texas Hill Country between Austin and
San Antonio, providing service to approximately 78,000 people
through over 26,000 water and 900 wastewater service connections.
With three of the five fastest-growing counties in the United
States between 2010 and 2019, Texas Water serves customers in
Comal, Blanco, Kendall, Bandera, Medina, Hays and Travis
counties.
About SJW Group
SJW Group is among the largest investor-owned pure-play water
and wastewater utilities in the United States, providing
life-sustaining and high-quality water service to nearly 1.5
million people. SJW Group’s locally led and operated water
utilities – San Jose Water Company in California, The Connecticut
Water Company in Connecticut, The Maine Water Company in Maine and
SJWTX Inc. (dba The Texas Water Company) in Texas – possess the
financial strength, operational expertise and technological
innovation to safeguard the environment, deliver outstanding
service to customers and provide opportunities to employees. SJW
Group remains focused on investing in its operations, remaining
actively engaged in its local communities and delivering continued
sustainable value to its stockholders. For more information about
SJW Group, please visit www.sjwgroup.com.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, as
amended. Some of these forward-looking statements can be identified
by the use of forward-looking words such as “believes,” “expects,”
“estimates,” “anticipates,” “intends,” “seeks,” “plans,”
“projects,” “may,” “should,” “will,” or the negative of those words
or other comparable terminology. These forward-looking statements
are only predictions and are subject to risks, uncertainties, and
assumptions that are difficult to predict. These forward-looking
statements involve a number of risks, uncertainties and assumptions
including, but not limited to, the following factors: (1) the
effect of water, utility, environmental and other governmental
policies and regulations, including regulatory actions concerning
rates, authorized return on equity, authorized capital structures,
capital expenditures and other decisions; (2) changes in demand for
water and other services; (3) unanticipated weather conditions and
changes in seasonality including those affecting water supply and
customer usage; (4) the effect of the impact of climate change; (5)
unexpected costs, charges or expenses; (6) our ability to
successfully evaluate investments in new business and growth
initiatives; (7) contamination of our water supplies and damage or
failure of our water equipment and infrastructure; (8) the risk of
work stoppages, strikes and other labor-related actions; (9)
catastrophic events such as fires, earthquakes, explosions, floods,
ice storms, tornadoes, hurricanes, terrorist acts, physical
attacks, cyber-attacks, epidemic, or similar occurrences; (10)
changes in general economic, political, business and financial
market conditions; (11) the ability to obtain financing on
favorable terms, which can be affected by various factors,
including credit ratings, changes in interest rates, compliance
with regulatory requirements, compliance with the terms and
conditions of our outstanding indebtedness, and general market and
economic conditions; and (12) legislative, and general market and
economic developments. The risks, uncertainties and other factors
may cause the actual results, performance or achievements of SJW
Group to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements.
Results for a quarter are not indicative of results for a full
year due to seasonality and other factors. Other factors that may
cause actual results, performance or achievements to materially
differ are described in SJW Group’s most recent Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K filed with the SEC. Forward-looking statements are not
guarantees of performance, and speak only as of the date made. SJW
Group undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20230814280087/en/
Investor Contacts: Andrew F.
Walters Chief Financial Officer and Treasurer
Andrew.Walters@sjwater.com 408-279-7818
Daniel J. Meaney, APR Director of Corporate and External
Communications Daniel.Meaney@ctwater.com 860-664-6016
Media Contact: Larry Jackson
Director, Customer Service & Communications
larry.jackson@txwaterco.com 830-460-4566
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