SJW Corp. was incorporated in California on February 8, 1985. SJW Corp. is
a holding company with four subsidiaries:
San Jose Water Company, a wholly owned subsidiary of SJW Corp., with its headquarters
located at 110 West Taylor Street in San Jose, California 95110, was originally
incorporated under the laws of the State of California in 1866. As part of a
reorganization on February 8, 1985, San Jose Water Company became a wholly owned
subsidiary of SJW Corp. San Jose Water Company is a public utility in the business
of providing water service to approximately 229,000 connections that serve a
population of approximately one million people in an area comprising approximately
138 square miles in the metropolitan San Jose, California area.
SJWTX, Inc., a wholly owned subsidiary of SJW Corp., was incorporated in the
State of Texas in 2005. SJWTX, Inc. is doing business as Canyon Lake Water Service
Company (“CLWSC”). CLWSC is a public utility in the business of
providing water service to approximately 12,000 connections that serve approximately
36,000 people. CLWSCs service area comprises more than 240 square miles in
western Comal County and southern Blanco County in the growing region between
San Antonio and Austin, Texas. SJWTX, Inc. has a 25% interest in Acequia Water
Supply Corporation (“Acequia”).
SJW Land Company, a wholly owned subsidiary of SJW Corp., was incorporated in
1985. SJW Land Company owns undeveloped land in the states of California and
Tennessee, owns and operates commercial buildings in the states of California,
Arizona and Tennessee, and has a 70% limited partnership interest in 444 West
Santa Clara Street, L.P.
Texas Water Alliance Limited (“TWA”), a wholly owned subsidiary
of SJW Corp., is undertaking activities that are necessary to develop a water
supply project in Texas.
Together, San Jose Water Company, CLWSC and TWA are referred to as “Water
Utility Services.”
The principal business of Water Utility Services consists of the production,
purchase, storage, purification, distribution, wholesale, and retail sale of
water. San Jose Water Company provides water service to approximately 229,000
connections that serve customers in portions of the cities of San Jose and Cupertino
and in the cities of Campbell, Monte Sereno, Saratoga and the Town of Los Gatos,
and adjacent unincorporated territories, all in the County of Santa Clara in
the State of California. San Jose Water Company distributes water to customers
in accordance with accepted water utility methods. CLWSC provides water service
to approximately 12,000 connections that serve approximately 36,000 people in
a service area comprising more than 240 square miles in the growing region between
San Antonio and Austin, Texas. TWA has entered into arrangements with certain
landowners in Gonzales County, Texas that provide for the development of a water
supply project. In connection with the project, TWA applied for groundwater
production and transportation permits to meet the future water needs in the
Canyon Lake Water Service Companys service area and to the central Texas hill
country communities and utilities adjacent to this area. In January of 2013,
TWAs permits were approved by the groundwater district in Gonzales County.
The permits were subsequently received in March 2013.
San Jose Water Company also provides non-tariffed services under agreements
with municipalities and other utilities. These non-tariffed services include
water system operations, maintenance agreements and antenna leases.
In October 1997, San Jose Water Company commenced operation of the City of Cupertino
municipal water system under the terms of a 25-year lease. The system is adjacent
to the San Jose Water Company service area and has approximately 4,600 service
connections. Under the terms of the lease, San Jose Water Company paid an up-front
$6.8 million concession fee to the City of Cupertino that is amortized over
the contract term. San Jose Water Company is responsible for all aspects of
system operation including necessary capital improvements.
The operating results from the water business fluctuate according to the demand
for water, which is often influenced by seasonal conditions, such as summer
temperatures or the amount and timing of precipitation in Water Utility Services
service areas. Revenue, production expenses and income are affected by changes
in water sales and the availability of surface water supply. Overhead costs,
such as payroll and benefits, depreciation, interest on long-term debt, and
property taxes, remain fairly constant despite variations in the amount of water
sold. As a result, earnings are highest in the higher demand, warm summer months
and lowest in the lower demand, cool winter months.
0.6% 
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