SJW Group subsidiary closes on Acquisition of Kendall West and Bandera East Water Utilities
SJW Group announced last week its Texas subsidiary, SJWTX Inc., which does business as the Canyon Lake Water Service Company, has closed on the purchase of two water/wastewater acquisitions that were under common ownership.
The Kendall West and the Bandera East utilities have more than 1,600 water and wastewater service connections, and serve approximately 4,000 people in Kendall, Bandera and Medina counties in Texas.
With the addition of Kendall County, SJWTX will operate in three of the top five fastest percentage growth counties in the US according to the US Census Bureau.
“SJWTX has a strong record of integrating acquisitions in this rapidly growing area to deliver exceptional water quality and service,” Eric W. Thornburg, chair, president and CEO of SJW Group, said in a press release. “Building scale across our Texas operation and combining it with access to capital, management and technical resources available across SJW Group benefits customers, communities and the environment through efficient operations and smart-use of water resources.”
The Kendall West and Bandera East utilities and Canyon Lake Water Service Company rely on water resources from Canyon Lake and the Trinity aquifer.
Furthermore, Kendall West also provides wastewater services that deliver recycled water for landscape irrigation — stretching the use of scarce water resources.
Thomas Hodge, president of SJWTX, stated, “Our team of local Texas water professionals looks forward to serving our new customers. SJWTX is continually investing in infrastructure to serve this growing region. Our planned capital budget for our Texas operations is $24.5 million in 2022, with significant investments planned in our water distribution system to enhance system reliability and water quality, and to reduce water lost to leaks.”
According to a press release, the acquisition will not affect the current rates of customers of the Kendall West and Bandera East utilities or those of the Canyon Lake Water Service Company.
This is the 14th acquisition by SJWTX since 2006.
Over the past 15 years, the company has more than tripled in size from 6,500 to more than 23,900 water and wastewater service connections, including Kendall West. Its service area extends across seven counties, including Comal, Hays, and Kendall counties in the corridor between Austin and San Antonio.
SJWTX has an application before the Public Utilities Commission of Texas to acquire Texas Country Water, which would add another 100 customers. A decision on that application is expected in the first quarter of 2022.