Quadvest Fair Market Value Determination Received; On Track for Mid-2026 Close

H2O America (NASDAQ: HTO) announced that The Texas Water Company received appraised fair market values from three PUCT-appointed appraisers for Quadvest LP assets.

Rhea-AI Summary

H2O America (NASDAQ: HTO) announced that The Texas Water Company received appraised fair market values from three PUCT-appointed appraisers for Quadvest LP assets.

The purchase price of $483.6 million will serve as the ratemaking rate base under Texas statute. TWC plans to file the Sale-Transfer-Merger application with the PUCT by mid-January 2026 to request approval and certification of the rate base value, and H2O America continues to anticipate closing the Quadvest acquisition by mid-2026.

Positive

• $483.6 million appraised purchase price set as rate base
• Adds regulated water and wastewater assets in Houston metro
• STM application filing targeted for mid-January 2026

Negative

• Closing is subject to PUCT approval and certification
• Transaction timeline depends on regulatory process through mid-2026

Argus Dec 30 session

+0.76% close to close Open Argus

Details

News Market Reaction – HTO

In the Dec 30 session, HTO gained 0.76%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement confirms appraised fair market values for Quadvest and sets a purchase price of $4...

Analysis

This announcement confirms appraised fair market values for Quadvest and sets a purchase price of $483.6 million as the ratemaking rate base, while reiterating plans to file an STM application and target a mid-2026 close. It extends the acquisition narrative highlighted in earlier filings and earnings updates. Investors may watch for regulatory milestones, detailed financing disclosures, and integration updates as key markers of how effectively this transaction supports long-term regulated growth.

Key Figures

Quadvest purchase price: $483.6 million

Quadvest purchase price

$483.6 million

Fair market value-based ratemaking rate base for Quadvest LP assets

Historical Context

5 past events · Latest: Dec 22

5 events

1. Dec 22

   Leadership appointment

   24h Move

   -0.7%

   New VP of business development to drive strategic growth and M&A.

2. Dec 15

   Board transition

   24h Move

   -0.4%

   Retirement of chair and CEO assuming chair role for continuity.

3. Dec 04

   ESG recognition

   24h Move

   -1.2%

   Named to Newsweek’s responsible companies list with ESG progress.

4. Nov 19

   Regulatory deferral

   24h Move

   -3.3%

   Deferral of cost-of-capital filing and continuation of allowed ROE.

5. Oct 27

   Earnings results

   24h Move

   +0.8%

   Q3 EPS and revenue growth, guidance update, and capex investment.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

fair market values, Public Utility Commission of Texas, ratemaking rate base, Sale-Transfer-Merger (STM) application

4 terms

fair market values financial

"received the appraised fair market values (FMV) from the three Public Utility"

The price a willing buyer and a willing seller would agree on for an asset when neither is rushed, both have relevant information, and each acts in their own interest. It matters to investors because it anchors valuations, financial reporting, taxes and deal pricing — influencing perceived gains, portfolio value and whether an investment looks attractive or over- or underpriced. Think of it as the amount two neighbors settle on for a used car after comparing condition and nearby listings.

Public Utility Commission of Texas regulatory

"from the three Public Utility Commission of Texas (PUCT)-appointed appraisers for"

State agency that oversees and sets rules for utilities—mainly electricity, and certain telecommunications and water services—within Texas. Think of it as a referee and rulebook keeper that approves rates, enforces reliability and safety standards, and decides whether infrastructure projects move forward; its decisions can change utility revenues, costs and operational risk, so investors watch it closely for signals about future profits and regulatory exposure.

ratemaking rate base regulatory

"the purchase price of $483.6 million will serve as the ratemaking rate base."

Ratemaking rate base is the value of a regulated company’s long‑term assets—like power lines, water pipes, or equipment—that regulators allow the company to earn a return on when setting customer rates. It matters to investors because a larger or higher‑valued rate base leads to higher allowed earnings and steadier cash flow, much like a landlord being paid interest on the amount they invested in a rental building.

Sale-Transfer-Merger (STM) application regulatory

"TWC plans to file the Sale-Transfer-Merger (STM) application with the PUCT"

A sale-transfer-merger (STM) application is a formal request submitted to a regulator or stock exchange asking permission for a change of ownership or control—such as selling assets, transferring licenses, or merging companies. Investors care because the decision can alter who runs the business, affect future cash flow and risks, and introduce timing or approval uncertainty much like asking a landlord for permission before subletting a leased storefront.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SAN JOSE, Calif., Dec. 29, 2025 (GLOBE NEWSWIRE) -- H2O America (NASDAQ: HTO) today announced that its regulated Texas water and wastewater utility, The Texas Water Company (TWC), received the appraised fair market values (FMV) from the three Public Utility Commission of Texas (PUCT)-appointed appraisers for the assets of Quadvest LP, a regulated investor-owned water and wastewater utility operating in the Houston metro area. In accordance with Texas’ FMV statute, the purchase price of $483.6 million will serve as the ratemaking rate base.

“We appreciate the hard work of all parties involved during the appraisal process,” said Aundrea Williams, President of TWC. “We believe the FMV determination supports our previously communicated benefits of the transaction.”

TWC plans to file the Sale-Transfer-Merger (STM) application with the PUCT by mid-January to request approval of TWC’s acquisition of the Quadvest LP assets and certification of the value of the rate base.

We continue to anticipate closing the Quadvest acquisition by mid-2026.

Investor Relations:

Jonathan G. Reeder
Senior Director of Treasury & Investor Relations
(475) 414-1034
InvestorRelations@H2O-America.com

Media Relations:

Nazan Riahei
Vice President of Communications
(408) 731-0890
MediaRelations@H2O-America.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What purchase price did H2O America (HTO) receive for Quadvest assets?

The appraised purchase price is $483.6 million, which will serve as the ratemaking rate base.

When will H2O America (HTO) file the STM application with the PUCT for Quadvest?

TWC plans to file the Sale-Transfer-Merger application with the PUCT by mid-January 2026.

When does H2O America (HTO) expect to close the Quadvest acquisition?

The company continues to anticipate closing the Quadvest acquisition by mid-2026.

How will the $483.6 million FMV affect H2O America's (HTO) rate base?

Under Texas statute, the appraised $483.6 million purchase price will serve as the ratemaking rate base.

Which regulator must approve H2O America's (HTO) Quadvest acquisition?

The acquisition requires approval and certification from the Public Utility Commission of Texas (PUCT).