Community services

Hawaii Water Service to Acquire Kukui’ula South Shore Community Services

WAIKOLOA, Hawaii, April 26, 2022 (GLOBE NEWSWIRE) — Expanding its presence on the island of Kauai, Hawaii Water Service (Hawaii Water) today announced that it has signed an agreement to acquire the assets of Kukui’ula South Shore Community Services (KSSCS). The acquisition by the subsidiary of California Water Service Group (NYSE: CWT) is subject to satisfaction of customary closing conditions, including approval from the Hawaii Public Utilities Commission (HPUC).

Located in the Kukui’ula Resort area of ​​southeast Kauai, KSSCS is a public sewage-only collection utility also regulated by the HPUC. As part of the acquisition, Hawaii Water will own and manage the utility, which currently serves approximately 440 residential, commercial and resort customers, but is expected to serve up to 1,500 connections upon construction of the complex over the next 20 years. coming years. . Wastewater from KSSCS is discharged to the Poipu Water Reclamation Facility owned by HOH Utilities, which Hawaii Water is also in the process of acquiring.

“At Hawaii Water, we are committed to providing quality, service and value to all of our customers and to operating in a way that supports our communities and the environment,” said Martin A. Kropelnicki, President and CEO of Hawaii Water Service. “We appreciate the trust KSSCS places in our team to provide the same to its customers, and we look forward to working together to complete the acquisition and welcome KSSCS customers to our ohana.”

In addition to new KSSCS customers, Hawaii Water currently provides utility water and/or wastewater services to 6,200 customers, including a number of large hotel and condominium complexes, in the communities of Ka’anapali, Pukalani and Kapalua in Maui; Kalaeloa on Oahu; with Waikoloa and the North Kona Coast on the Big Island. Hawaii Water employees provide services such as meter reading, water quality testing, water and wastewater treatment, water system design and construction, and customer service .

Hawaii Water is a wholly owned subsidiary of California Water Service Group, which also includes California Water Service, New Mexico Water Service, Washington Water Service and Texas Water Service, a utility holding company. Together, these companies provide regulated water and wastewater utilities to more than 2 million people in more than 100 communities in California, Hawaii, New Mexico, Texas and Washington. The 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 press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“Act”). Forward-looking statements are intended to qualify under the provisions of the federal securities laws for the “safe harbor” treatment established by law. Forward-looking statements are based on currently available information, expectations, estimates, assumptions and projections, as well as management’s judgment regarding the company, the water utility industry and general economic conditions. Words such as would, expect, intend, plan, believe, estimate, assume, anticipate, project, predict, forecast or variations of such words or similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance. They are subject to uncertainty and changing circumstances. Actual results may differ materially from what is contained in any forward-looking statement. Factors that could cause results to differ from those expected or anticipated include, but are not limited to: the ability to complete the acquisition of KSSCS and the acquisition of the Poipu Water Reclamation Facility, integrate the company and operate the KSSCS system in an efficient and accretive manner; natural disasters, public health crises, pandemics, epidemics or outbreaks of a contagious disease, such as the coronavirus (or COVID‐19) epidemic; decisions of governmental and regulatory commissions, including decisions on the proper disposal of property; consequences of eminent domain actions relating to our water systems; changes in regulatory commission policies and procedures; the timeliness of regulatory commission actions regarding tariff relief and other actions; changes in water quality standards; changes in environmental compliance and water quality requirements; power outages; housing and customer growth trends; the impact of opposition to rate increases; our ability to recover costs; availability of water supply; problems relating to the implementation, maintenance or security of our IT systems; civil unrest 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 adequately address risks; labor relations issues as we negotiate with unions; changes in customer water use patterns and conservation effects; the impact of weather, climate, natural disasters and disease on water quality, water availability, water sales and operating results, and the adequacy of our preparedness emergency situations; and, other risks and unforeseen events. When reviewing forward-looking statements, you should keep in mind the cautionary statements included in this paragraph, as well as the annual 10-Ks, quarterly 10-Qs and other reports filed from time to time with the Securities and Exchange Commission. (SECOND). The Company undertakes no obligation to provide public updates of forward-looking statements.

Contact:

Yvonne Kingman, 310-257-1434 (media)

Tom Smegal, 408-367-8200 (analysts)