New Mexico Water Service Enters Into Agreement to Acquire Animas Valley Water System
New Mexico Water Service, a subsidiary of California Water Service Group (CWT), has signed a purchase agreement to acquire the Morning Star Water System assets from Animas Valley Land and Water Co. This acquisition will provide regulated water service to approximately 2,000 customers in northwest New Mexico. The deal is pending court and regulatory approval and is expected to close in early 2021. Group's CEO, Martin A. Kropelnicki, expressed commitment to delivering high-quality water service to all customers.
- Acquisition of Morning Star Water System expands customer base by 2,000 connections.
- Enhances regulated water utility services in New Mexico.
- Acquisition is subject to regulatory approvals, which may introduce uncertainty.
- Pending rate case could impact the financial aspects of the acquisition.
SAN JOSE, Calif., Oct. 05, 2020 (GLOBE NEWSWIRE) -- New Mexico Water Service (New Mexico Water), a subsidiary of California Water Service Group (Group) (NYSE: CWT), has signed a purchase agreement with Animas Valley Land and Water Co., LLC (AV Water) and court-appointed receiver C. Randel Lewis to acquire the Morning Star Water System assets of AV Water and provide regulated water utility service to its approximately 2,000 customer connections in northwest New Mexico.
The purchase is subject to customary closing conditions, including approvals of the San Juan County Court and the New Mexico Public Regulation Commission, as well as successful completion of AV Water’s pending rate case. If approved, the transaction is expected to close in early 2021.
“We appreciate the confidence in New Mexico Water to provide a reliable supply of safe, high-quality water to AV Water customers,” said Group’s President and Chief Executive Officer Martin A. Kropelnicki. “We look forward to providing AV Water customers the same quality, service, and value that we are committed to delivering to all of our customers, as we continue through the due diligence and approval process.”
About New Mexico Water Service and California Water Service Group
New Mexico Water Service currently serves about 16,000 people through 8,200 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 California Water Service, Washington Water Service, New Mexico Water Service, Hawaii Water Service, CWS Utility Services, and HWS Utility Services. Together, these companies employ about 1,200 people who provide regulated and non-regulated water service to more than 2 million people in California, Washington, New Mexico, and Hawaii. 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 AV Water’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 recent 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 purpose of California Water Service Group's acquisition of Morning Star Water System?
When is the expected close date for the acquisition by CWT?
What are the expected benefits of the Morning Star Water System acquisition for customers?
What regulatory approvals are needed for the acquisition of the Morning Star Water System?
