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CLWSC’s Parent Company to Buy Utilities in Kendall, Bandera and Medina Counties

Image courtesy of SJWTX, dba Canyon Lake Water Service Company.

SJWTX Inc. — better known as Canyon Lake Water Service Company — plans to expand its service area by acquiring Kendall West Utility operating in Kendall County, and the Bandera East Utility operating in Bandera and Medina counties.

The proposed transaction will not affect rates or service for customers in Canyon Lake.

Thomas Hodge, president of SJWTX, said Kendall West and Bandera East utilities are the two fastest-growing water-service companies in adjacent counties. They rely on water from Canyon Lake and the Trinity Aquifer.

“The Kendall West and Bandera East utilities provide water to approximately 4,000 people through over 1,300 service connections in a service area approximately 20 square miles,” he said. “The merger will increase efficiency of operations and bring SJWTX’s experience of managing and supporting rapid growth to Kendall, Bandera and Medina counties.”

Included with Kendall West are wastewater services that recycle water for landscape irrigation at a local golf course, “stretching the use of scarce water resources in this drought-prone area,” SJWTX said in a press release.

A combination of groundwater wells and surface water from Canyon Lake also provide Kendall West Utility and Bandera East Utility with their water supply.

If approved by the Public Utilities Commission of Texas (PUCT), it would be would be the fourteenth acquisition the company has made since 2006, expanding SJWTX’s footprint in Texas across seven counties, three of them ranked among the top-10 fastest-growing in the United States.

“We are eager to serve the customers of Kendall West and Bandera East utilities as part of our Canyon Lake Water Service Company,” said Eric Thornburg, chairman, president and CEO of SJW Group, SJWTX’s parent company.

“This transaction, if approved by the PUCT, will benefit all of our customers through increased scale and resources,” he said. “We look forward to delivering exceptional drinking water and wastewater services to them in the future.”

Over the past 15 years, SJWTX has nearly tripled in size from 6,500 to 21,500 connections and now serves approximately 65,000 people.

In a statement, SJW said combining Kendall West and Bandera East Water Systems with SJWTX will make for a larger, more-efficient water utility with access to capital and management resources needed for the rapidly expanding area.

About SJWTX dba Canyon Lake Water Service Company

The public water utility serves approximately 65,000 people through approximately 21,500 service connections in a service area comprising 246 square miles in Comal, Blanco, Hays and Travis counties.

About Kendall West Utility LLC and Bandera East Utility LLC

The two public water utilities provide water to approximately 4,000 people through over 1,300 service connections. The service area is approximately 20 square miles and runs through Kendall, Bandera and Medina counties.

About SJW Group

SJW Group is the second-largest, investor-owneed pure play water and wastewater utility based on its esimated rate base. The company serves nearly 1.5 million customers. Other locally led and operated water utilities under the SJW umbrella include San Jose Water Company in California, Connecticut Water Company in Connecticut, and Maine Water Company in Maine.

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