California Water Service to Own, Operate New Silverwood Development’s Wastewater and Recycled Water Systems
California Water Service (NYSE: CWT) has signed an agreement with DMB Development to own and operate the wastewater and recycled water systems of Silverwood, a new master-planned community in San Bernardino County, California.
Initially, Cal Water will serve 500 wastewater connections currently managed by the City of Hesperia. At full buildout, the development is expected to reach over 15,000 customer connections. The company will acquire ownership of the wastewater collection and recycled water distribution systems in phases as they are completed.
The new Silverwood system will become a new Cal Water district under California Public Utilities Commission oversight.
California Water Service (NYSE: CWT) ha firmato un accordo con DMB Development per possedere e gestire i sistemi di acque reflue e di acqua riciclata di Silverwood, una nuova comunità pianificata situata nella contea di San Bernardino, California.
Inizialmente, Cal Water fornirà servizio a 500 collegamenti di acque reflue attualmente gestiti dalla città di Hesperia. Al completamento totale, lo sviluppo dovrebbe raggiungere oltre 15.000 collegamenti clienti. L'azienda acquisirà la proprietà dei sistemi di raccolta delle acque reflue e di distribuzione dell'acqua riciclata in fasi, man mano che saranno completati.
Il nuovo sistema Silverwood diventerà un nuovo distretto Cal Water sotto la supervisione della California Public Utilities Commission.
California Water Service (NYSE: CWT) ha firmado un acuerdo con DMB Development para poseer y operar los sistemas de aguas residuales y agua reciclada de Silverwood, una nueva comunidad planificada en el condado de San Bernardino, California.
Inicialmente, Cal Water atenderá a 500 conexiones de aguas residuales que actualmente gestiona la ciudad de Hesperia. Al completarse totalmente, se espera que el desarrollo alcance más de 15,000 conexiones de clientes. La compañía adquirirá la propiedad de los sistemas de recolección de aguas residuales y distribución de agua reciclada por fases a medida que se completen.
El nuevo sistema Silverwood se convertirá en un nuevo distrito de Cal Water bajo la supervisión de la Comisión de Servicios Públicos de California.
California Water Service (NYSE: CWT)는 캘리포니아 산버너디노 카운티에 위치한 새로운 마스터 플랜 커뮤니티인 Silverwood의 폐수 및 재활용수 시스템을 소유하고 운영하기 위해 DMB Development와 계약을 체결했습니다.
초기에는 Cal Water가 현재 Hesperia 시에서 관리 중인 500개의 폐수 연결에 서비스를 제공할 예정입니다. 완공 시점에는 개발 지역이 15,000개 이상의 고객 연결에 이를 것으로 예상됩니다. 회사는 폐수 수집 시스템과 재활용수 배분 시스템을 단계별로 완공되는 대로 인수할 계획입니다.
새로운 Silverwood 시스템은 캘리포니아 공공유틸리티 위원회 감독 하에 새로운 Cal Water 지구가 될 것입니다.
California Water Service (NYSE: CWT) a signé un accord avec DMB Development pour posséder et exploiter les systèmes d’eaux usées et d’eau recyclée de Silverwood, une nouvelle communauté planifiée dans le comté de San Bernardino, en Californie.
Dans un premier temps, Cal Water desservira 500 raccordements d’eaux usées actuellement gérés par la ville de Hesperia. Une fois le développement achevé, on prévoit que le nombre de raccordements clients dépassera 15 000. La société acquerra la propriété des systèmes de collecte des eaux usées et de distribution d’eau recyclée par phases, au fur et à mesure de leur réalisation.
Le nouveau système Silverwood deviendra un nouveau district Cal Water sous la supervision de la California Public Utilities Commission.
California Water Service (NYSE: CWT) hat eine Vereinbarung mit DMB Development unterzeichnet, um die Abwasser- und Recyclingwassersysteme von Silverwood, einer neuen geplanten Gemeinde im San Bernardino County, Kalifornien, zu besitzen und zu betreiben.
Zunächst wird Cal Water 500 Abwasseranschlüsse bedienen, die derzeit von der Stadt Hesperia verwaltet werden. Bei vollständiger Fertigstellung wird erwartet, dass die Entwicklung über 15.000 Kundenanschlüsse erreicht. Das Unternehmen wird die Eigentumsrechte an den Abwassersammel- und Recyclingwasserverteilungssystemen in Phasen übernehmen, sobald diese fertiggestellt sind.
Das neue Silverwood-System wird unter der Aufsicht der California Public Utilities Commission zu einem neuen Cal Water-Distrikt.
- Expansion into wastewater and recycled water operations in a new district
- Significant growth potential from 500 to over 15,000 customer connections at full buildout
- Strategic partnership with DMB Development in a master-planned community
- Regulatory oversight from California Public Utilities Commission ensures stability
- Phased implementation may delay full revenue potential
- Project completion and connection growth dependent on development timeline
Insights
Cal Water expands operations with Silverwood development deal, adding potentially 15,000 new connections, enhancing recurring revenue.
This agreement between Cal Water and DMB Development represents a notable expansion of Cal Water's wastewater and recycled water operations in Southern California. The company will start by serving approximately 500 wastewater connections in the Silverwood development (currently served by the City of Hesperia), with potential growth to over 15,000 connections at full buildout.
This phased acquisition aligns with Cal Water's strategic focus on diversifying its utility services beyond traditional water provision. The move into wastewater and recycled water systems creates additional recurring revenue streams with regulatory oversight from the California Public Utilities Commission, providing revenue stability typical of regulated utilities.
The deal's structure—taking ownership in phases as infrastructure is completed—is financially prudent, allowing Cal Water to gradually deploy capital as the development progresses rather than making a single large investment upfront. This phased approach helps mitigate development risk while securing a growing customer base in a newly constructed community.
For context, this expansion adds a meaningful new district to Cal Water's operations. The company currently serves about 2 million people through 492,600 connections across California, establishing Silverwood as a potential growth area that could eventually represent approximately 3% of their total connections. This demonstrates Cal Water's execution on opportunities to expand its regulated business footprint in its home state.
SAN JOSE, Calif., June 24, 2025 (GLOBE NEWSWIRE) -- In an expansion of its wastewater and recycled water operations, California Water Service (Cal Water) has signed an agreement with an affiliate of DMB Development to own and operate the wastewater and recycled water systems of Silverwood, a new master-planned, mixed-use community currently under construction in San Bernardino County, Calif. Cal Water is the largest subsidiary of California Water Service Group (NYSE: CWT), whose subsidiaries provide water, wastewater, and recycled water utility services across the western United States.
Under the agreement, upon completion of the community’s wastewater treatment plant, Cal Water will begin serving approximately 500 wastewater connections initially being served by the City of Hesperia. At full buildout of the development, Silverwood is expected to have more than 15,000 customer connections. Cal Water will take ownership of the wastewater collection system and recycled water distribution system in phases as they are completed and ready to accommodate new connections.
“We look forward to our partnership with DMB Development to serve the new Silverwood community and help sustain the environment,” said Martin A. Kropelnicki, Cal Water Chairman and Chief Executive Officer. “As families seek to put down roots in this area, we are dedicated to helping improve their quality of life by focusing on the same high standard of quality, service, and value that we provide to customers throughout our service areas.”
The phased transfers of ownership are subject to satisfactory closing conditions. The Silverwood system will become a new Cal Water district, with oversight from the California Public Utilities Commission.
About California Water Service
California Water Service provides high-quality, reliable water utility services to more than 2.1 million people statewide through 499,400 service connections. Cal Water’s purpose is to enhance the quality of life for customers and communities. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s 1,200 employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The utility has been named one of “America’s Most Responsible Companies” and one of the “World’s Most Trustworthy Companies” by Newsweek, a USA Top Workplace, and a Great Place to Work®. More information is available at www.calwater.com.
This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (PSLRA). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections, and our management's beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks, commits or variations of these words or similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements in this news release include, but are not limited to, statements describing the anticipated transfer of ownership pursuant to, expected benefits resulting from, and closing conditions related to the Silverwood acquisition. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable but are subject to uncertainty and risks. Actual results or outcomes may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results or outcomes to be different than those expected or anticipated include, but are not limited to: ability to integrate the business and operate the Silverwood systems in an effective and accretive manner; the outcome and timeliness of regulatory commissions' actions concerning rate relief and other matters, including with respect to the 2024 California GRC filing; changes in regulatory commissions’ policies and procedures; our ability to invest or apply the proceeds from the issuance of common stock in an accretive manner; federal governmental and state regulatory commissions’ decisions; consequences of eminent domain actions relating to our water systems; increased risk of inverse condemnation losses as a result of the impact of weather, climate change, and natural disasters; our ability to renew leases to operate water systems owned by others on beneficial terms; changes in California State Water Resources Control Board water quality standards; changes in environmental compliance and water quality requirements, such as the EPA’s finalization of a National Primary Drinking Water Regulation in 2024; electric power interruptions; housing and customer growth; the impact of opposition to rate increases; our ability to recover costs; availability of water supplies; issues with the implementation, maintenance or security of our information technology systems; civil disturbances or terrorist threats or acts; the adequacy of our efforts to mitigate physical and cyber security risks and threats; the ability of our ERM processes to identify or address risks adequately; labor relations matters as we negotiate with the unions; changes in customer water use patterns and the effects on conservation, including as a result of drought conditions; our ability to complete, in a timely manner or at all, successfully integrate, and achieve anticipated benefits from acquisitions; the impact of weather, climate change, natural disasters, including wildfires and landslides, and actual or threatened public health emergencies on our operations, water quality, water availability, water sales, and operating results and the adequacy of our emergency preparedness; restrictive covenants in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt, or pay dividends; risks associated with expanding our business and operations geographically; the impact of stagnating or worsening business and economic conditions, including inflationary pressures, general economic slowdown, or a recession, changes in tariff policy and uncertainty regarding tariffs and other retaliatory trade measures, the interest rate environment, changes in monetary policy, adverse macroeconomic conditions as a result of geopolitical conflicts, and the prospect of a shutdown of the U.S. federal government; the impact of market conditions and volatility on unrealized gains or losses on our non-qualified benefit plan investments and our operating results; the impact of weather and timing of meter reads on our accrued unbilled revenue; the impact of evolving legal and regulatory requirements; the impact of the evolving U.S. political environment that has led to, in some cases, legal challenges and uncertainty around the funding, functioning, and policy priorities of U.S. federal regulatory agencies and the status of current and future regulations; and other risks and unforeseen events described in our most recent Annual Report on Form 10-K and our other SEC filings. In light of these risks, uncertainties and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. We are not under any obligation, and we expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact: Yvonne Kingman, 310-257-1434
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