H2O America Significantly Expands Service with New Acquisition
H2O America Expands Texas Wastewater Infrastructure
Recently, H2O America (NASDAQ: HTO) announced a significant development that will transform its wastewater operations in Texas. The company, recognized for its regulated water and wastewater utility services, has finalized an agreement to acquire key assets from the South Central Water Company. This strategic move involves incorporating the Cibolo Valley wastewater treatment plant into H2O America's existing operations.
Enhancing Service Capacity
This acquisition is set to more than double the number of wastewater connections H2O America provides in Texas. The Cibolo Valley treatment plant and its associated collection systems will serve over 1,500 new connections, adding to Texas Water Company's current base of around 1,200 connections. Moreover, the expansion includes over 250 connections that are currently contracted and will see construction in the near future.
Operational Excellence and Customer Convenience
Bruce A. Hauk, president and chief operating officer of H2O America, expressed enthusiasm regarding this expansion, emphasizing that it reflects the company's commitment to operational excellence. He mentioned, 'Wastewater is a core business for H2O America, and our approach mirrors what we deliver daily in our drinking water systems. We invest significantly in infrastructure to ensure that we are meeting the needs of our communities.' This acquisition not only increases H2O America’s wastewater capacity but also integrates billing services with the existing water service area, fostering seamless customer experiences.
Future Developments in Texas
Another significant aspect of this acquisition is its timing. The transaction leverages Texas Fair Market Value principles, targeting to submit an application to the Public Utilities Commission of Texas within a specified timeframe. This strategic planning foresees a closing in the fourth quarter of 2026, ensuring that H2O America continues to provide uninterrupted services to its customers.
H2O America is no stranger to growth. This acquisition follows closely on the heels of another announced purchase where Texas Water Company secured more than 140,000 water and wastewater connections in the greater Houston area. These moves underline the company’s dynamic approach to expansion, focusing on maximizing its service capabilities while remaining agile in addressing community needs.
About H2O America
H2O America operates as a national investor-owned utility that prioritizes delivering high-quality water to communities across the United States. With approximately 407,000 service connections, this company is dedicated to infrastructure investments that reinforce a sustainable future for water supply. H2O America actively engages with local communities, aiming to create value for both public health and investor interests.
Across its four regional utilities—Connecticut Water, Maine Water, San Jose Water, and Texas Water—H2O America is committed to serving over 1.6 million customers, ensuring environmental stewardship and a robust customer experience.
Frequently Asked Questions
What did H2O America acquire from South Central Water Company?
H2O America acquired the Cibolo Valley wastewater treatment plant and associated collection systems, significantly increasing its wastewater connections in Texas.
How many new wastewater connections will H2O America add?
The acquisition will add over 1,500 new wastewater connections to H2O America's existing 1,200 connections.
What are the future plans for Texas Water Company?
Texas Water Company plans to submit an application for this acquisition to the Public Utilities Commission of Texas, aiming for completion in the fourth quarter of 2026.
How does this acquisition benefit customers?
This acquisition enhances operational efficiency and provides customers with a single provider for both water and wastewater, improving overall convenience.
What is H2O America's mission?
H2O America is dedicated to delivering clean, high-quality water and investing in sustainable infrastructure to serve the communities and protect public health.
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