SJW Group’s Texas Water Company boosts supply with KT Water acquisitions
In a significant stride to meet the surging water demand in Comal County, Texas, the Texas Water Company, an SJW Group (NYSE: SJW) subsidiary, has announced the successful acquisitions of KT Water Development Ltd. and KT Water Resources L.P. These additions are set to bolster the water service with 570 new residential connections and notably enhance the systemwide water supply by an approximate 40%, addressing both current demands and the region’s predicted growth.
SJW Group’s chair, president, and CEO, Eric W. Thornburg, emphasized the company’s commitment to delivering quality water and reliable services, especially with Texas witnessing accelerated population growth. He pointed out the vital role KT Water Resources plays in this merger, bringing in considerable water supply capabilities to cater to the region’s escalating needs.
KT Water Development Ltd., stationed in southern Comal County, caters to approximately 570 customers and has the potential to expand its connections by 150. Its counterpart, KT Water Resources L.P., stands as a pivotal wholesale groundwater resource provider to KT Water Development Ltd. This merger amplifies Texas Water’s resilience, strategically positioning it to meet estimated customer growth until 2070.
According to Thomas Hodge, president of Texas Water Resources LLC – another SJW Group’s Texas subsidiary that took over KT Water Resources – customers will begin reaping the benefits of this merger in a span of two to three years. The integration necessitates considerable investments in water infrastructure, which includes facilities for water treatment, pumping, distribution, and storage. These comprehensive developments are already in the design and planning stages.
The acquisition of KT Water Development secured approval from the Public Utilities Commission of Texas (PUCT) on July 24, while KT Water Resources’ acquisition didn’t mandate such approval. The Texas Water Company has sought an applied rate doctrine treatment through the PUCT, anticipating its final nod in the year’s last quarter.
The Texas Water Company, strategically located between San Antonio and Austin, caters to clients in three out of the five fastest-growing US counties. It boasts a robust acquisition record, with over 20 successful deals since 2006, resulting in customer growth from 6,500 water connections to an impressive tally of over 26,000 water and 900 wastewater connections.