SAN JOSE, Calif., Oct. 8, 2002 -- California Water Service Group announced that it has completed the tax-free exchange of certain surplus properties for the company's new Customer and Operations Center in Torrance.
Cal Water occupied the new Customer and Operations Center in January 2002, consolidating four of its southern California operating districts at a single location.
Because the transaction was structured as a property exchange, acquiring the new facility did not require a significant expenditure of cash.
"We are pleased to complete the transaction, which is good for customers, stockholders, and employees. We are now operating more efficiently from a new, well-equipped facility, and we didn't have to expend significant funds or impact customer rates," said Paul Ekstrom, Vice President of Customer Service.
Under terms of the exchange agreement, Cal Water guaranteed the contractor's bank loan during construction of the new facility. The new facility, which is valued at in excess of $7 million, served as security to the company for the guarantee. When the property exchange was completed, the contractor paid off the bank loan, extinguishing the company's guarantee.
California Water Service Group is the parent company of California Water Service Company, Washington Water Service Company, New Mexico Water Service Company, and CWS Utility Services. The subsidiaries provide regulated and non-regulated water service to over 1.7 million people in 98 communities. The Company's common stock trades on the New York Stock Exchange under the symbol "CWT."
SOURCE: California Water Service Group
