California American Water Receives Approval to Acquire Mesa del Sol Water System in Corral de Tierra
The California Public Utilities Commission (CPUC) has approved California American Water's acquisition of the Mesa del Sol water system in Corral de Tierra, Monterey County. This acquisition will add approximately 15 new water connections to Cal Am's existing customer base of about 40,000 connections in the Monterey Peninsula and surrounding areas.
The Mesa del Sol system is currently identified as a failing water system by the California State Water Resources Control Board's SAFER program. Cal Am's acquisition aims to solve long-running water quality issues for the neighborhood through physical consolidation with their neighboring system. The acquisition is expected to be finalized in early 2025, following the completion of construction on system improvements and interconnection.
Cal Am emphasizes that this acquisition will bring clean, safe, and reliable water service to Mesa del Sol residents, along with improved customer service options and programs. The larger customer base is expected to provide greater economies of scale and future rate stability for the newly acquired system.
La Commissione pubblica delle utility della California (CPUC) ha approvato l'acquisizione di California American Water del sistema idrico Mesa del Sol a Corral de Tierra, nella contea di Monterey. Questa acquisizione aggiungerà circa 15 nuove connessioni idriche alla base clienti già esistente di Cal Am, che conta circa 40.000 connessioni nella penisola di Monterey e nelle aree circostanti.
Il sistema Mesa del Sol è attualmente identificato come un sistema idrico in difficoltà dal programma SAFER dell'Autorità statale per le risorse idriche della California. L'acquisizione da parte di Cal Am mira a risolvere problemi di qualità dell'acqua di lunga data per il quartiere attraverso una consolidazione fisica con il loro sistema vicino. Si prevede che l'acquisizione sarà finalizzata all'inizio del 2025, dopo il completamento dei lavori di miglioramento del sistema e della connessione intersistemica.
Cal Am sottolinea che questa acquisizione porterà un servizio idrico pulito, sicuro e affidabile ai residenti di Mesa del Sol, insieme a opzioni di servizio e programmi per i clienti migliorati. Si prevede che una base clienti più ampia fornirà maggiore economia di scala e stabilità tariffaria futura per il nuovo sistema acquisito.
La Comisión de Utilidades Públicas de California (CPUC) ha aprobado la adquisición de California American Water del sistema de agua Mesa del Sol en Corral de Tierra, en el condado de Monterey. Esta adquisición añadirá aproximadamente 15 nuevas conexiones de agua a la base de clientes existente de Cal Am, que cuenta con alrededor de 40,000 conexiones en la península de Monterey y sus alrededores.
El sistema Mesa del Sol está actualmente identificado como un sistema de agua en dificultad por el programa SAFER de la Junta de Control de Recursos Hídricos del Estado de California. La adquisición de Cal Am tiene como objetivo resolver problemas de calidad del agua que han persistido durante mucho tiempo para el vecindario mediante una consolidación física con su sistema vecino. Se espera que la adquisición se finalice a principios de 2025, después de completar la construcción de mejoras en el sistema y la interconexión.
Cal Am enfatiza que esta adquisición proporcionará un servicio de agua limpio, seguro y fiable a los residentes de Mesa del Sol, junto con opciones y programas de servicio al cliente mejorados. Se espera que una base de clientes más grande ofrezca mayores economías de escala y estabilidad de tarifas futura para el nuevo sistema adquirido.
캘리포니아 공공유틸리티위원회(CPUC)는 캘리포니아 아메리칸 워터의 메사 델 솔 수도 시스템 인수를 승인했습니다. 이 인수는 몬테레이 반도와 주변 지역에 약 40,000개의 연결을 갖고 있는 Cal Am의 기존 고객 기반에 약 15개의 새로운 수도 연결을 추가할 것입니다.
메사 델 솔 시스템은 현재 캘리포니아 주 수자원 관리 위원회의 SAFER 프로그램에 의해 문제를 가진 수도 시스템으로 분류됩니다. Cal Am의 인수 목적은 오랜 수질 문제를 해결하는 것이며, 인근 시스템과의 물리적 통합을 통해 이루어질 예정입니다. 인수는 시스템 개선 및 상호 연결 작업이 완료된 후 2025년 초에 마무리될 것으로 예상됩니다.
Cal Am은 이번 인수가 메사 델 솔 주민들에게 깨끗하고 안전하며 신뢰할 수 있는 수돗물 서비스를 제공할 것임을 강조합니다. 고객 기반이 확대됨에 따라 더 큰 규모의 경제를 달성하고 미래 요금 안정성을 제공할 것으로 기대하고 있습니다.
La Commission californienne des services publics (CPUC) a approuvé l'acquisition par California American Water du système d'eau Mesa del Sol à Corral de Tierra, dans le comté de Monterey. Cette acquisition ajoutera environ 15 nouvelles connexions d'eau à la clientèle existante de Cal Am, qui compte environ 40 000 connexions dans la péninsule de Monterey et les zones environnantes.
Le système Mesa del Sol est actuellement identifié comme un système d'eau défaillant par le programme SAFER du Conseil des ressources en eau de l'État de Californie. L'acquisition par Cal Am vise à résoudre des problèmes de qualité de l'eau de longue date pour le quartier par une consolidation physique avec leur système voisin. L'acquisition devrait être finalisée début 2025, après l'achèvement des travaux d'amélioration du système et d'interconnexion.
Cal Am souligne que cette acquisition apportera un service d'eau propre, sûr et fiable aux résidents de Mesa del Sol, ainsi que de meilleures options et programmes de service à la clientèle. La base de clients élargie devrait offrir d'avantages d'échelle et une stabilité tarifaire future pour le nouveau système acquis.
Die California Public Utilities Commission (CPUC) hat übernommen von California American Water das Wassersystem Mesa del Sol in Corral de Tierra, Monterey County, genehmigt. Diese Übernahme wird ungefähr 15 neue Wasseranschlüsse an die bestehende Kundenbasis von Cal Am mit etwa 40.000 Anschlüssen in der Monterey-Halbinsel und den umliegenden Gebieten hinzufügen.
Das System Mesa del Sol wird derzeit von dem SAFER-Programm des California State Water Resources Control Board als wenig funktionierendes Wassersystem eingestuft. Die Übernahme von Cal Am zielt darauf ab, langfristige Wasserqualitätsprobleme für die Nachbarschaft durch physische Konsolidierung mit ihrem benachbarten System zu lösen. Die Übernahme wird voraussichtlich Anfang 2025 abgeschlossen sein, nachdem die Bauarbeiten an den Systemverbesserungen und der Interkonnektivität abgeschlossen sind.
Cal Am betont, dass diese Übernahme sauberes, sicheres und zuverlässiges Wasserversorgung für die Bewohner von Mesa del Sol bringen wird, zusammen mit verbesserten Kundenserviceoptionen und -programmen. Es wird erwartet, dass eine größere Kundenbasis größere Skaleneffekte und zukünftige Preisstabilität für das neu übernommene System bietet.
- Acquisition of Mesa del Sol water system adds 15 new connections to Cal Am's customer base
- Acquisition aims to solve long-running water quality issues for the neighborhood
- Expected to provide greater economies of scale and future rate stability for Mesa del Sol customers
- Will bring new customer service options and programs to Mesa del Sol residents
- Acquisition not expected to be finalized until early 2025, pending construction completion
Insights
The acquisition of Mesa del Sol water system by California American Water is a strategic move that addresses critical water quality issues in the area. This consolidation will likely improve service reliability and water quality for the 15 new connections. The CPUC's approval signifies regulatory support for such consolidations, which is positive for AWK's growth strategy.
The integration of Mesa del Sol into AWK's larger system should create operational efficiencies and economies of scale. This could potentially lead to cost savings in the long term, benefiting both the company and customers. The expected completion in early 2025 allows time for necessary infrastructure improvements, which may require some capital investment but should enhance system performance.
While the immediate financial impact is minimal given the small number of new connections, this acquisition aligns with AWK's broader strategy of expanding its customer base and addressing failing water systems. It also positions the company favorably with regulators by supporting state initiatives like the SAFER program.
The acquisition of Mesa del Sol water system, while small in scale, is strategically important for California American Water, a subsidiary of American Water Works (AWK). With only 15 new connections, the immediate revenue impact is negligible relative to AWK's
The deal's value lies in its potential to:
- Enhance regulatory relationships by addressing failing water systems
- Improve operational efficiency through system consolidation
- Potentially increase rate base for future returns
Investors should view this as a positive indicator of AWK's execution of its growth strategy rather than a significant financial catalyst. The company's ability to integrate small systems efficiently and improve their performance could lead to more such opportunities, gradually building shareholder value over time.
Cal Am’s expertise will bring safe drinking water to the neighborhood
“California American Water’s acquisition will bring clean, safe and reliable water service to the residents of the Mesa del Sol neighborhood,” said Evan Jacobs, Director of Business Development for California American Water. “The physical consolidation of the Mesa del Sol system into California American Water’s neighboring system will solve long running water quality issues for the neighborhood.”
The acquisition of the Mesa del Sol water system is expected to be finalized in early 2025, once construction is complete on a physical interconnection and other system improvements. The Mesa Del Sol Water system is currently identified as a failing water system by the California State Water Resources Control Board’s SAFER program, which works to ensure every Californian has access to safe drinking water.
“Mesa del Sol customers will benefit from California American Water’s experience and expertise and the company’s large customer base will provide much greater economies of scale and future rate stability while keeping water rates lower than they would have been as a small, stand-alone system,” said Jacobs. “Mesa del Sol residents will also benefit from new customer service options and programs offered by the company.”
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in
For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.
About California American Water
California American Water, a subsidiary of American Water, provides high-quality and reliable water and wastewater services to approximately 700,000 people. For more information, visit www.californiaamwater.com and follow California American Water on LinkedIn, Facebook, X, and Instagram.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241018701798/en/
Media Contact
Josh Stratton
External Affairs
Phone: 831-435-6015
Email: josh.stratton@amwater.com
Source: California American Water
FAQ
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