BVRT Subsidiary Utility Holding Company Enters into Long-Term Water Supply Agreement, Expanding Customer Growth Opportunities Near Austin, Texas

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Texas Water Service, a subsidiary of the California Water Service Group, majority investor in BVRT Utility Holding Company, is increasing its investments in the Lone Star State

SAN JOSE, Calif., Aug. 17, 2022 (GLOBE NEWSWIRE) — California Water Service Group (NYSE: CWT) today announced that Camino Real Utility (Camino Real), a wholly owned subsidiary of BVRT Utility Holding Company (BVRT) , entered into a long-term water supply agreement with the Guadalupe Blanco River Authority (GBRA), a water conservation and reclamation district established by the Texas Legislature that oversees water resources in 10 counties.

Under the terms of the agreement with GBRA, Camino Real will receive up to 2,419 acre-feet of potable water per year. The GBRA deal involves four buyers, including Camino Real, and GBRA plans to extend a drinking water line from the town of Lockhart to the town of Mustang Ridge and surrounding areas. Camino Real will be the utility provider in this rapidly growing area of ​​the Austin metro area and will provide potable water, reclaimed water and wastewater services to portions of the City of Mustang Ridge and surrounding areas. The GBRA plans to extend a water supply line from Lockhart, Texas to the Mustang Ridge area. Camino Real will invest more than $40 million in capital in the first phase of the water supply pipeline project as one of four buyers.

California Water Service Group subsidiary, Texas Water Service, is the majority investor in BVRT, a Texas-based utility development company that owns and operates six wastewater treatment utilities that serve growing communities in outside of Austin and San Antonio.

“We are excited to increase our investment in Texas, a dynamic region with significant growth opportunities,” said Martin A. Kropelnicki, president and CEO of California Water Service Group.

Texas Water Service is investing funds to enable BVRT to continue building its water and wastewater infrastructure. The company actively and aggressively seeks other opportunities to build and improve water and wastewater infrastructure.

“BVRT is an excellent partner with key strategic relationships in this growing part of Texas. Our Texas Water Service team looks forward to working with BVRT to provide more people with the reliable utilities that are essential to the success of every community,” Kropelnicki said.

About California Water Service Group
California Water Service Group is the parent company of the regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, Washington Water Service and Texas Water Service, a utility holding company. Together, these companies provide regulated and unregulated water and sanitation services to more than 2 million people in California, Hawaii, New Mexico, Texas and Washington. Common stock of California Water Service Group trades on the New York Stock Exchange under the symbol “CWT”. Further 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 an outcome to differ from that expected or anticipated include, but are not limited to: the ability of Camino Real and GBRA to operate under the Water Supply Agreement in an effective and efficient manner and to execute the expansion plans of the project; 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 be mindful of 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.

Media Contact
Tom Smegal (analysts)
tsmegal@calwater.com
408-367-8200

Yvonne Kingman (media)
ykingman@calwater.com
310-257-1434

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