California Water Service enters agreement to operate Travis Air Force Base water system

he base handles more cargo and passenger traffic through its airport than any other military air terminal in the United States.

Sep 30th, 2016
Content Dam Ww Online Articles 2016 09 Aerial View Of Travis Air Force Base Near Fairfield  California
Travis Air Force Base is located adjacent to Fairfield, Calif., and near Cal Water's Dixon, Calif., service area. Image: Wikimedia Commons.

SAN JOSE, CA, SEPTEMBER 30, 2016 -- California Water Service (Cal Water), the largest subsidiary of California Water Service Group (NYSE: CWT), announced today that it has entered into a 50-year agreement with the U.S. Department of Defense to acquire the water distribution assets of, and to provide water utility service to, the Travis Air Force Base beginning in 2018, subject to California Public Utilities Commission approval.

Travis Air Force Base is located adjacent to Fairfield, Calif., and near Cal Water's Dixon, Calif., service area. Travis Air Force Base is host to the Air Force's 60th Air Mobility Wing, which is the largest wing in its Air Mobility Command. The base handles more cargo and passenger traffic through its airport than any other military air terminal in the United States.

The water system utilizes surface water treated at a water treatment plant and groundwater from five wells, and includes distribution piping, storage tanks, hydrants, and other appurtenances to serve about 15,280 active and reserve personnel and civilians on the 6,400-acre base. Cal Water will also make initial capital improvements of about $12.7 million, with an anticipated capital investment of about $52 million over the 50-year term of the utility service contract.

"We are pleased to partner with the Department of Defense and Travis Air Force Base and serve the men and women who put their lives on the line to serve us and our country," said President and Chief Executive Martin A. Kropelnicki. "We are committed to providing our customers and communities with more than just water, but also with quality, service, and value, and we look forward to doing that here for our military and civilian personnel, and their families."

Under the terms of the utility service agreement, the California Public Utilities Commission would regulate water rates and tariffs for Travis Air Force Base utility service as part of Cal Water's three-year rate case cycle, and based on rate base and expenses associated with providing water utility service to the base.

California Water Service Group is the parent company of California Water Service, Washington Water Service Company, New Mexico Water Service Company, Hawaii Water Service Company, Inc., CWS Utility Services, and HWS Utility Services. Together, these companies provide regulated and non-regulated water service to approximately 2 million people in more than 100 California, Washington, New Mexico, and Hawaii communities. California Water Service was ranked "Highest in Customer Satisfaction Among Water Utilities in the West" in 2016 by J.D. Power in its inaugural Water Utility Residential Customer Satisfaction Study. Group's common stock trades on the New York Stock Exchange under the symbol "CWT." Additional information is available online at www.calwatergroup.com.

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