California Water Service Group Subsidiaries Complete Acquisitions of HOH Utilities in Hawaii, Monterey Water Company in New Mexico
SAN JOSE, Calif., Jan. 02, 2024 (GLOBE NEWSWIRE) -- California Water Service Group (Group) subsidiaries Hawaii Water Service (Hawaii Water) and New Mexico Water Service (New Mexico Water) have finalized transactions to acquire the assets of HOH Utilities, LLC (HOH Utilities) and Monterey Water Company (Monterey), respectively, and provide service to their customers going forward.
The purchase of HOH Utilities’ wastewater system assets on Kauai marks the entry of Hawaii Water onto its fourth island. Located in the growing Poipu and Koloa area, HOH Utilities serves almost 1,800 residential, commercial, and resort customers, including three hotels, condominiums, multi-family housing, single-family homes, and a golf course. With Hawaii Public Utilities Commission approval received in July 2022, Hawaii Water now will both own and operate the wastewater system.
New Mexico Water now owns and operates the Monterey water system, which has become part of New Mexico Water’s Rio Del Oro service area in Valencia County. Located less than a half-mile from the Rio Del Oro water system, Monterey served 380 residential customers. About 100 undeveloped lots could also be served in the future upon development. The purchase was approved by the New Mexico Public Regulation Commission in June 2023.
“We look forward to beginning operations on Kauai and expanding service in New Mexico, and are focused on providing excellent service to our customers while protecting the environment around us,” said Martin A. Kropelnicki, Group Chairman and CEO. “We appreciate the partnership of HOH Utilities and Monterey Water Company to complete these acquisitions and their trust in us to support their customers and communities.”
In addition to its new Kauai customers, Hawaii Water currently provides water, wastewater, and/or recycled water utility services to about 6,200 customers, including a number of large resorts and condominium complexes, on Maui, Oahu, and the Big Island. Beyond its Monterey customers, New Mexico Water serves 10,700 water and wastewater connections throughout the Land of Enchantment. Both utilities intend to continue investing in local infrastructure to keep service reliable for their communities and protect the environment.
About California Water Service Group
California Water Service Group is the largest regulated water utility in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, Texas Water Service.
What sets Group apart is its commitment to enhancing the quality of life for its customers, communities, employees, and stockholders. Guided daily by their promise to provide quality, service, and value, Group’s 1,200+ employees lead the way in working to protect the planet, care for people, and operate with the utmost integrity. Integral to Group’s strategy is investing responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company has been named one of “America’s Most Responsible Companies” and the “World’s Most Trustworthy Companies” by Newsweek and a Great Place to Work®. More information is available at www.calwatergroup.com.
*California Water Service received the highest score in the West Large segment of the J.D. Power 2023 U.S. Water Utility Residential Customer Satisfaction Study of customers’ satisfaction nationally among water customers in the US. Visit jdpower.com/awards for more details.
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 in this news release are based on currently available information, expectations, estimates, assumptions and projections, and management's beliefs, assumptions, judgments, and expectations about Group and its subsidiaries, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our document, statements that are not historical in nature, including words like promise, commitment, strategy, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, predicts, forecasts, targets, seeks, should, 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 based on numerous assumptions that Group believes are reasonable but 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 actual results to be different than those expected or anticipated include, but are not limited to: ability to integrate the business and operate the HOH Utilities and Monterey water 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 by Group from time-to-time with the Securities and Exchange Commission (SEC). Group is under no obligation, and assumes no obligation, to provide public updates of forward-looking statements, whether as a result of new information, future events, or otherwise.
Contacts
Dave Healey (analysts)
dhealey@calwater.com
408-367-8200
Yvonne Kingman (media)
ykingman@calwater.com
310-257-1434
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