California-Based SJW Group Acquires Clear Water Estates Water System in Canyon Lake
The California-based SJW Group’s Texas subsidiary SJWTX Inc. — better known as Canyon Lake Water Service Company (CLWSC) — today said it completed acquisition of the Clear Water Estates Water System in Canyon Lake.
The transaction will not affect rates or service for CLWSC or Clear Water Estates customers, the company said in a press release.
The sale and transfer to SJWTX on March 1 is the first application to the Public Utilities Commission of Texas (PUCT) under Texas’ new Fair Market Value legislation.
The deal is a ‘tuck-in’ accquisition with Clear Water Estates’ system, which borders SJWTX’s water system to the north and south. The system is less than 40-years-old and has no employees. It already operates under contract by CLWSC.
“We have been serving customers at Clear Water Estates as contract operations and have been eagerly waiting to make them SJWTX customers,” said SJWTX President Thomas Hodge. “The Clear Water Estates Water System has water resources above and beyond what is needed to meet the water needs of the system, and these resources can be used for future growth of our systems.”
Eric Thornburg, chairman, president and CEO of SJW Group, said the company is pleased to be the first to use Texas’ new fair-market value process.
“We brought on boad 230 new customers and valuable water resources to serve current and future customers while adding rate-base that reflects market value for future rate-making purposes.” he said.
According to a statement released by SJW Group, the PUCT took an average of three market appraisals when determining the fair-market price of $1 million.
ABOUT SJTX, FORMERLY CANYON LAKE WATER SERVICE COMPANY
SJWTX is a state-regulated, investor-owned utility providing water service to approximately 36,000 people through more than 13,400 connections in Comal and southern Blanco counties.