New Mexico Water Service Completes Purchase Of Valencia Mesa LLC Water System

Rhea-AI Summary

California Water Service Group (CWT) announced the acquisition of the Hi Mesa Water System in New Mexico through its subsidiary, New Mexico Water Service. The New Mexico Public Regulation Commission approved the purchase, allowing operations to start immediately. The Hi Mesa Water System serves approximately 85 customer connections in Los Lunas, N.M., and integrates into the existing Meadow Lake system, which serves around 16,000 residents across various regions. This acquisition aims to enhance service and infrastructure in the area.

Positive

• Acquisition of Hi Mesa Water System increases customer base by 85 connections.
• Regulatory approval received, allowing operational commencement immediately.

Negative

• None.

SAN JOSE, Calif., Feb. 09, 2022 (GLOBE NEWSWIRE) -- California Water Service Group (Group) (NYSE: CWT) announced that its New Mexico subsidiary, New Mexico Water Service (New Mexico Water), closed its purchase of Valencia Mesa LLC Water System, also known as the Hi Mesa Water System, yesterday. The New Mexico Public Regulation Commission granted approval of the transaction last week, and the utility will commence operation of the system immediately.

The Hi Mesa Water System serves about 85 customer connections and is located in Los Lunas, N.M., part of the unincorporated area of Valencia County. The system is located approximately one mile from New Mexico Water’s Meadow Lake service area and will become part of the Meadow Lake system.

“We are pleased to now own and operate the Hi Mesa Water System; we thank the New Mexico Public Regulation Commission for its diligent review and approval, and Valencia Mesa for working with us over the past several months to ensure a seamless transition,” said Martin A. Kropelnicki, Group President and CEO. “Throughout our company’s history, we have remained committed to providing safe, clean water and excellent service to each customer, every day, and we look forward to doing the same for our Hi Mesa customers.”

About New Mexico Water Service and California Water Service Group
New Mexico Water Service currently serves about 16,000 people through 8,500 water and wastewater service connections in its Rio Communities, Rio Del Oro, Meadow Lake, Indian Hills, Squaw Valley, Elephant Butte, Sandia Knolls, Juan Tomas, and Cypress Gardens systems in New Mexico. 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 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 operate Valencia Mesa LLC’s assets in an accretive manner; governmental and regulatory commissions' decisions, including decisions on proper disposition of property; natural disasters or calamities, public health crises, pandemics, epidemics or outbreaks of a contagious disease, such as the outbreak of coronavirus (or COVID-19), or any escalation or worsening of the foregoing, including any economic effects of the foregoing; 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 Contact
Tom Smegal (investors)
tsmegal@calwater.com, 408-267-8200
Yvonne Kingman (media)
ykingman@calwater.com, 310-257-1434

FAQ

What is the recent acquisition made by California Water Service Group?

California Water Service Group acquired the Hi Mesa Water System in New Mexico, serving 85 customer connections.

When was the acquisition of Hi Mesa Water System approved?

The acquisition was approved by the New Mexico Public Regulation Commission last week.

What impact does the Hi Mesa acquisition have on CWT's operations?

The acquisition integrates the Hi Mesa system into the Meadow Lake system, enhancing service for existing and new customers.

How many customer connections does New Mexico Water Service currently serve?

New Mexico Water Service serves about 16,000 people through 8,500 connections.

Where is the Hi Mesa Water System located?

The Hi Mesa Water System is located in Los Lunas, New Mexico, approximately one mile from the Meadow Lake service area.