ACQUISITIONS

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

ACQUISITIONS

Acquisitions

Rainier View Water Company

On March 27, 2020, the Company’s wholly owned subsidiary, Washington Water, received regulatory approval from the WUTC for Washington Water's application for the sale and transfer of assets of Rainier View Water Company. Washington Water paid $37.6 million in cash to take control of the water system on June 1, 2020. The acquisition of Rainier View Water doubles the size of Washington Water’s operations and solidifies the Company’s position as the largest investor-owned water company in the state of Washington, regulated by the WUTC. Rainier View Water serves approximately 35,000 people in parts of Graham, Spanaway, Puyallup, Gig Harbor, and other nearby areas through approximately 18,500 customer connections in 27 water systems.

Assets acquired were $32.6 million, including utility plant of $31.1 million, and liabilities of $23.5 million were assumed, including $21.3 million of contributions in aid of construction. Goodwill of $28.5 million was recorded and consists largely of the synergies expected from combining the operations of Rainier View Water Company and Washington Water.

The Company expects all the goodwill from the acquisition to be deductible for tax purposes.

Condensed balance sheets and pro forma results of operations for this acquisition have not been presented since the impact of the acquisition was not material.

Kalaeloa Water Company

On September 25, 2020, the Hawaii Public Utilities Commission (HPUC) approved Hawaii Water's application for the purchase of the Membership Interests of Hunt in Kalaeloa Water Company, LLC. Hawaii Water paid $3.1 million in cash to control of the water system on November 1, 2020. Kalaeloa Water Company is located in the growing Kapolei area of the City and County of Honolulu on Oahu, serves residential, commercial, and industrial customers in Kalaeloa, a 3,700-acre area located on the former Barbers Point Naval Air Station. Hawaii Water will continue to invest in local system infrastructure to keep service reliable for customers’ every day and emergency needs, and work to provide customers with continued access to safe, high-quality water and excellent customer service.

Assets acquired were $2.8 million, including utility plant of $2.1 million, and liabilities of $0.4 million were assumed. Goodwill of $0.7 million was recorded and consists largely of the synergies expected from combining the operations of Kalealoa Water Company and Hawaii Water.

The Company expects all the goodwill from the acquisition to be deductible for tax purposes.

Condensed balance sheets and pro forma results of operations for this acquisition have not been presented since the impact of the acquisition was not material.