SJW Group’s Texas Subsidiary Reaches Agreements That Will Add Customers and Significant Water Supply to the Rapidly Growing Service Area

SJW Group (NYSE: SJW) today announced that its Texas subsidiary, SJWTX Inc., which does business as Canyon Lake Water Service Company, has reached agreements to acquire KT Water Development Ltd and KT Water Resources L.P., which are both located in Comal County, Texas. The pending acquisitions will add more than 550 customers and a 50% increase in the total available system-wide water supply for current customer needs and future growth.

Eric W. Thornburg, chairman, president and CEO of SJW Group, stated, “Not only are we eager to serve the customers of KT Water Development as part of our Canyon Lake Water Service Company, but we are also pleased that adding KT Water Resources to our existing water supply portfolio will put our Texas operation in great shape to meet future customer growth and demand. If approved by the PUCT, this transaction will benefit our customers through increased scale and greater resources. We look forward to delivering exceptional high-quality drinking water service to them in the future.”

KT Water Development Ltd, a privately held-investor-owned water utility, currently serves approximately 560 customers in southern Comal County, Texas, with possible expansion for an additional 150 connections.

KT Water Resources L.P. is a wholesale groundwater resource supplier to KT Water Development Ltd. The acquisition of KT Water Resources L.P. by SJWTX will significantly increase system resiliency and improves SJWTX’s position to provide ample water for projected customer growth through 2070.

Thomas Hodge, president of SJWTX, stated, “The combination of KT Water Development and KT Water Resources with SJWTX brings together both additional customers into our system that can take advantage of state-of-the-art customer experience solutions, but also a more effective and sustainable use of our precious water resources in our fast-growing communities. The acquisition will increase the efficiency and resilience of the operations and bring SJWTX’s experience of managing and supporting rapid growth.”

SJWTX has filed an application for the acquisition of KT Water Development Ltd with the PUCT. If approved by the PUCT as submitted, the acquisitions are expected to be final by the 3rd quarter of 2023.

SJWTX, located in the growth pathway between San Antonio and Austin serves customers in three of the five fastest growing counties in the United States. The company has closed more than 15 acquisitions since 2006 and has more than quadrupled the number of customers it serves from 6,500 to 26,000.