California Water Service Group Subsidiaries to Acquire Systems in California and Washington
SAN JOSE, Calif., July 27, 2022 (GLOBE NEWSWIRE) -- California Water Service Group (NYSE:CWT) subsidiaries California Water Service (Cal Water) and Washington Water Service (Washington Water) have signed agreements to acquire the water system assets of two utilities near the companies’ existing service areas. Cal Water intends to purchase King’s Mountain Park Mutual Water Company (King’s Mountain), while Washington Water intends to acquire Bethel Green Acres Water Association (Bethel Green Acres).
Adjacent to Cal Water’s Bear Gulch District, King’s Mountain currently serves 23 residential connections near Skyline Boulevard in the Bay Area. Because the system relies on customers to voluntarily maintain system operations, the State Water Resources Control Board’s Division of Drinking Water (DDW) has worked with Cal Water to bring the King’s Mountain system and customers into Cal Water’s Bear Gulch District. Bethel Green Acres, which is located in Graham, Wash., and borders Washington Water’s Rainier View water system, serves about 200 residential customer connections.
Both purchases are subject to satisfaction of customary closing conditions, including approval by the California Public Utilities Commission and Washington Utilities and Transportation Commission, respectively.
“We appreciate the confidence DDW, King’s Mountain, and Bethel Green Acres have in us to provide not just a life-sustaining product, but also quality, service, and value to these residents,” said Martin A. Kropelnicki, California Water Service Group President and Chief Executive Officer. “We look forward to working with King’s Mountain, Bethel Green Acres, and our California and Washington commissions to complete these transactions and serve our new customers.”
About California Water Service Group
California Water Service Group is the parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, Washington Water Service, and Texas Water Service, a utility holding company. Together, these companies provide regulated and non-regulated water and wastewater service to more than 2 million people in California, Hawaii, New Mexico, Texas, and Washington. California Water Service Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.
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 would, 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 are not limited to: ability to close the acquisitions of King’s Mountain and Bethel Green Acres, integrate the businesses, and operate the King’s Mountain and Bethel Green Acres systems in an effective and accretive manner; natural disasters, public health crises, pandemics, epidemics or outbreaks of a contagious disease, such as the outbreak of coronavirus (or COVID‐19); governmental and regulatory commissions' decisions, including decisions on proper disposition of property; consequences of eminent domain actions relating to our water systems; changes in regulatory commissions' policies and procedures; the timeliness of regulatory commissions' actions concerning rate relief and other actions; changes in water quality standards; changes in environmental compliance and water quality requirements; electric power interruptions; housing and customer growth trends; the impact of opposition to rate increases; our ability to recover costs; availability of water supplies; issues with the implementation, maintenance or security of our information technology systems; civil disturbances or terrorist threats or acts; the adequacy of our efforts to mitigate physical and cyber security risks and threats; the ability of our enterprise risk management processes to identify or address risks adequately; labor relations matters as we negotiate with unions; changes in customer water use patterns and the effects of conservation; the impact of weather, climate, natural disasters, and diseases on water quality, water availability, water sales and operating results, and the adequacy of our emergency preparedness; 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.
Released July 27, 2022