California Water Service Group Creates Texas Water Service Subsidiary; Seeks to Capitalize on Growth Opportunities in Texas
May 04 2021 - 8:45AM
California Water Service Group announced today that its new
Texas-based subsidiary, TWSC, Inc. (Texas Water Service) now owns
the majority of BVRT Utility Holding Company (BVRT), a Texas-based
utility development company owning and operating four wastewater
utilities serving growing communities outside of Austin and San
Antonio. Austin and San Antonio are among the five fastest growing
cities in the United States, and communities surrounding them are
also experiencing high growth.
“We are pleased to be moving into a fifth state, the great state
of Texas, into a dynamic area with considerable opportunities for
growth,” said California Water Service Group President and Chief
Executive Officer, Martin A. Kropelnicki.
Texas Water Service initially invested funds to enable BVRT to
continue to build wastewater infrastructure. Today it converted its
investment to equity, with the intention of continuing to invest in
BVRT’s existing infrastructure and new developments, and has the
right to eventually acquire all of BVRT’s growing portfolio of
wastewater systems.
BVRT’s four wastewater utilities currently serve or are under
contract to serve over 2,500 connections, with a potential total
build-out of more than 61,000 connections. Texas Water Service,
through its partnership with BVRT, is actively and aggressively
pursuing additional opportunities to build and enhance wastewater
infrastructure.
“BVRT is an excellent partner with key strategic relationships
in this growing part of Texas. Texas Water Service looks forward to
working with them to provide more and more people with the reliable
wastewater service that is vital to every community’s success,”
Kropelnicki said.
About California Water Service GroupCalifornia
Water Service Group is the parent company of regulated utilities
California Water Service, Hawaii Water Service, New Mexico Water
Service, and Washington Water Service, and now 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 complete the acquisition and ability to
operate the wastewater systems in an accretive manner; natural
disasters, public health crises, pandemics, epidemics or outbreaks
of a contagious disease, such as the recent 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.
Media ContactTom Smegal
(analysts)tsmegal@calwater.com408-367-8200
Yvonne Kingman (media)ykingman@calwater.com310-257-1434
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