美國水務 (AWK) 2023 Q4 法說會逐字稿

Good morning, and welcome to the American Water's Fourth Quarter and Year-End 2023 Earnings Conference Call. As a reminder, this call is being recorded and is also being webcast with an accompanying slide presentation through the company's Investor Relations website. The audio webcast archive will be available for 1 year on American Water's Investor Relations website. I would now like to introduce your host for today's call, Aaron Musgrave, Vice President of Investor Relations. Mr. Musgrave, you may begin.

早上好，歡迎參加美國水務公司 2023 年第四季和年終收益電話會議。提醒一下，這次電話會議正在錄音，並透過公司的投資者關係網站進行網路直播，並附有幻燈片演示。音訊網路廣播檔案將在美國水務公司的投資者關係網站上提供一年。現在我想介紹今天電話會議的主持人，投資者關係副總裁 Aaron Musgrave。馬斯格雷夫先生，您可以開始了。

Thank you, Dave. Good morning, everyone, and thank you for joining us for today's call. At the end of our prepared remarks, we will open the call for your questions. Let me first go over some safe harbor language. Today, we will be making forward-looking statements that represent our expectations regarding our future performance or other future events. These statements are predictions based on our current expectations, estimates and assumptions. However, since these statements deal with future events, they are subject to numerous known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results indicated or implied by such statements.

謝謝你，戴夫。大家早安，感謝您參加我們今天的電話會議。在我們準備好的演講結束後，我們將開始電話詢問您的問題。讓我先回顧一些安全港語言。今天，我們將做出前瞻性聲明，代表我們對未來業績或其他未來事件的期望。這些陳述是基於我們目前的預期、估計和假設的預測。然而，由於這些陳述涉及未來事件，因此它們受到許多已知和未知的風險、不確定性和其他因素的影響，這些因素可能導致實際結果與此類陳述所表明或暗示的結果有重大差異。

Additional information regarding these risks, uncertainties and factors as well as a more detailed analysis of our financials and other important information is provided in the fourth quarter earnings release and in our 2023 Form 10-K, each filed yesterday with the SEC. And finally, all statements during this presentation related to earnings and earnings per share refer to diluted earnings and diluted earnings per share. After our prepared remarks, we'll then close by answering your questions. With that, I'll turn the call over to American Water's President and CEO, Susan Hardwick.

有關這些風險、不確定性和因素的更多信息，以及對我們財務狀況和其他重要信息的更詳細分析，請參見昨天向 SEC 提交的第四季度收益報告和 2023 年 10-K 表格。最後，本簡報中與收益和每股盈餘相關的所有陳述均指稀釋收益和稀釋每股盈餘。在我們準備好的發言之後，我們將回答您的問題。接下來，我會將電話轉交給美國水務公司總裁兼執行長蘇珊哈德威克 (Susan Hardwick)。

Thanks, Aaron. Good morning, everyone. As we announced yesterday, we finished 2023 with very strong financial results that were right on plan. As shown on Slide 5, earnings were $4.90 per share for the year, which included $0.13 per share of favorable weather, most of which we discussed earlier in the year. Excluding the estimated weather impact, earnings of $4.77 per share were at the midpoint of the guidance range we shared originally back in November of 2022.

謝謝，亞倫。大家，早安。正如我們昨天宣布的那樣，我們在 2023 年結束時取得了非常強勁的財務業績，完全符合計劃。如幻燈片 5 所示，今年每股收益為 4.90 美元，其中包括每股 0.13 美元的有利天氣，其中大部分我們在今年早些時候討論過。排除預期的天氣影響，每股收益 4.77 美元處於我們最初在 2022 年 11 月分享的指導範圍的中點。

I'm very proud of our company's ability to stay focused on serving our customers safely and reliably through numerous economic events this past year, which gave us the ability to confidently execute on the plan we had for 2023. And I'm also proud of the resilient service we consistently deliver and especially over the past few months during a cold January and active storm season across the country. I want to thank our employees for safely providing reliable service to the 14 million people we serve in their homes, businesses and communities.

我對我們公司能夠在過去一年的眾多經濟事件中繼續專注於安全可靠地為客戶提供服務感到非常自豪，這使我們能夠自信地執行 2023 年的計劃。我也為我們始終如一地提供彈性服務，尤其是在過去幾個月的寒冷一月和全國各地活躍的風暴季節。我要感謝我們的員工為我們在家庭、企業和社區服務的 1400 萬人提供安全可靠的服務。

You can see here on Slide 5, an abbreviated list of some of our key accomplishments in 2023, and John and Cheryl will add to these in their remarks. Overall, we believe the takeaway today for investors is that our strong execution in 2023 amid the challenging macro backdrop, coupled with our clear top tier growth plan demonstrates American Water's ability to deliver on our long-term plan. I'm very confident we will execute our plans in 2024 and beyond with the great momentum we have from 2023.

您可以在幻燈片 5 上看到我們 2023 年一些主要成就的簡要列表，約翰和謝麗爾將在他們的演講中補充這些內容。總體而言，我們認為今天對投資者來說的要點是，在充滿挑戰的宏觀背景下，我們在2023 年的強勁執行力，加上我們明確的頂級增長計劃，表明美國水務有能力實現我們的長期計劃。我非常有信心，憑藉 2023 年以來的強勁勢頭，我們將在 2024 年及以後執行我們的計劃。

Turning to Slide 6. As you can see, we have delivered an excellent total shareholder return over the past 5 and 10 years, including our growing record of significant dividend increases. We're proud of this history, which compares very favorably to other utilities. I want to acknowledge, though, that our stock and utility stocks in general did not perform nearly as well as the S&P 500 in 2023, which dampened the outperformance we've had versus the S&P 500 over the last decade or so.

轉向幻燈片 6。正如您所看到的，我們在過去 5 年和 10 年中實現了出色的股東總回報，包括我們不斷大幅增加股息的記錄。我們為這段歷史感到自豪，與其他公用事業公司相比，它非常有利。不過，我想承認，我們的股票和公用事業股在 2023 年的表現總體上不如標準普爾 500 指數，這削弱了我們在過去十年左右的時間裡相對於標準普爾 500 指數的優異表現。

Relative valuations of utility stocks fell without regard to specific performance. All of that, while we continued our very strong performance. I'm confident our company's fundamentals and the execution of our strategies will continue to produce superior shareholder value and very competitive total shareholder returns for years to come, which takes us to Slide 7. The comments that we'll share today are largely an affirmation of the financial plan, long-term targets and guidance we laid out last November, highlighted by 7% to 9% EPS and dividend growth.

不考慮具體表現，公用事業股的相對估值下跌。所有這一切，同時我們繼續保持強勁的表現。我相信，我們公司的基本面和策略的執行將在未來幾年繼續創造卓越的股東價值和極具競爭力的股東總回報，這將我們帶到幻燈片7。我們今天分享的評論很大程度上是一種肯定我們去年 11 月制定的財務計劃、長期目標和指導方針，重點是 7% 至 9% 的每股收益和股息增長。

Later, John will recap the drivers for our growth in 2024, including the increase to our EPS guidance range that we announced yesterday. Big picture, though, we believe the combination of our EPS and dividend growth are low-risk capital plan, our ESG leadership and the affordability of our service continues to be rewarded by investors and distinguishes us from other utilities in this sector. I'll remind you that we believe the runway for our growth and for achieving these targets is very long, certainly through 2028 in our 5-year plan and beyond that.

隨後，約翰將回顧我們 2024 年成長的驅動因素，包括我們昨天宣布的每股盈餘指導範圍的上調。不過，從大局來看，我們相信我們的每股盈餘和股息成長相結合是低風險的資本計劃，我們的ESG 領導力和我們的服務負擔能力繼續受到投資者的回報，並使我們與該行業的其他公用事業公司區分開來。我要提醒您的是，我們相信我們的成長和實現這些目標的跑道很長，在我們的 5 年計劃中肯定會持續到 2028 年及以後。

This, of course, is driven by significant investments in infrastructure and acquisitions, coupled with our track record of constructive regulatory outcomes, all with a keen focus on affordability. And on top of all of that, we continue to grow organically, including in our military services business that successfully serves 18 military installations across the country. One final thought I want to leave you with as we begin 2024. American Water continues to receive tremendous support at the state and federal level for the work we do across the country. The impact we are making in communities across our 14 states to improve water and wastewater service is critical to the well-being of the citizens we are proud to serve.

當然，這是由對基礎設施和收購的大量投資，加上我們建設性監管成果的記錄所推動的，所有這些都高度關注負擔能力。最重要的是，我們繼續有機成長，包括成功為全國 18 個軍事設施提供服務的軍事服務業務。在 2024 年伊始，我想留給大家最後一個想法。美國水務公司在全國範圍內開展的工作繼續獲得州和聯邦層面的大力支持。我們為改善供水和廢水處理服務而在 14 個州的社區中產生的影響對於我們自豪地服務的公民的福祉至關重要。

As we've told you many times, we are committed to solving local infrastructure issues, while at the same time, driving efficiencies in our business to remain very affordable to our customers. Policymakers frequently encourage our leadership to keep growing, keep investing and keep solving problems in their states. And this includes Pennsylvania, where we applaud the Public Utility Commission's proposal on February 1 to enhance the process around the implementation of fair market value legislation. We believe the spirit of the enhancements is to increase public awareness and establish greater procedural consistency, all in support of much-needed consolidation of the common wealth, water and wastewater systems.

正如我們多次告訴您的那樣，我們致力於解決當地基礎設施問題，同時提高我們的業務效率，以保持客戶的經濟實惠。政策制定者經常鼓勵我們的領導階層不斷成長、不斷投資、不斷解決各州的問題。其中包括賓州，我們對該州公用事業委員會 2 月 1 日提出的加強公平市場價值立法實施流程的提案表示讚賞。我們相信，這些改進的精神是提高公眾意識並建立更大的程序一致性，所有這些都是為了支持急需的共同財富、供水和廢水處理系統的鞏固。

While the business of providing these critical services can at times lead to enhancements in the way we do business, including in the regulatory construct, we have no doubt about the overwhelmingly positive support we received from stakeholders as we pursue our company's mission. With that, I'll turn it over to Cheryl to talk more about rate base growth, our regulatory plan and some recent news around lead service lines. Cheryl?

雖然提供這些關鍵服務的業務有時可以改善我們開展業務的方式，包括在監管結構方面，但我們毫不懷疑，在我們追求公司使命的過程中，我們從利益相關者那裡獲得了壓倒性的積極支持。接下來，我將把它交給謝麗爾，更多地討論利率基礎增長、我們的監管計劃以及有關領先服務線的一些最新消息。謝麗爾？

Thanks, Susan, and good morning, everyone. Let me start by turning to Slide 9 where these graphs illustrate that our continued successful execution of our capital investment plan is succeeding in growing regulated rate base consistent with our long-term rate of 8% to 9%. Rate base growth, of course, will drive earnings growth. We believe the high degree of visibility to our capital investment plan, combined with the low-risk nature of the plan, uniquely positions American Water in the utility sector and is fundamental to our investment thesis.

謝謝，蘇珊，大家早安。首先讓我轉向投影片 9，其中這些圖表表明，我們對資本投資計畫的持續成功執行正在成功地擴大監管利率基礎，與我們 8% 至 9% 的長期利率一致。當然，利率基數成長將推動獲利成長。我們相信，我們的資本投資計劃的高度可見性，加上該計劃的低風險性質，使美國水務公司在公用事業領域擁有獨特的地位，也是我們投資理念的基礎。

Turning to Slide 10. I'll cover the latest regulatory activity in our states, beginning with our most recently filed cases. In Pennsylvania, we filed a general rate case in November and are seeking recovery of $1 billion of investments. The case is proceeding as planned, including testimony and evidentiary hearings that are scheduled for February and March. With rates still expected to be effective in August. As a reminder, Pennsylvania uses a forward test year for ratemaking purposes. In New Jersey, we filed a general rate case in January and are seeking recovery of over $1.3 billion of investments through December 2024. This case includes, for example, infrastructure improvement projects at all seven of our surface water treatment plants in the state.

轉向投影片 10。我將介紹我們各州的最新監管活動，從我們最近提交的案例開始。在賓州，我們於 11 月提起了一般利率訴訟，並尋求收回 10 億美元的投資。該案正在按計劃進行，包括定於二月和三月舉行的證詞和證據聽證會。預計利率仍將在八月生效。提醒一下，賓州使用前瞻性測試年來制定利率。在新澤西州，我們於1 月提交了一般費率案件，並尋求在2024 年12 月之前收回超過13 億美元的投資。該案件包括我們在該州所有七個地表水處理廠的基礎設施改善項目等。

We expect the New Jersey case to be completed sometime later this fall. We also filed a general rate case last month in Illinois, where we have invested over $550 million since our last case. Our general rate cases in California, West Virginia and Virginia, are all progressing well and as expected. In California, we reached a partial settlement in the case in November related to the revenue request. We will prepare to implement the new rates retroactively to January 1, 2024, upon receiving the CPUC's decision on the settlement agreement and outstanding topics related to rate design and revenue stabilization mechanisms.

我們預計新澤西州案件將於今年秋天晚些時候完成。上個月，我們還在伊利諾伊州提起了一般費率案件，自上次案件以來，我們已在那裡投資了超過 5.5 億美元。我們在加州、西維吉尼亞州和維吉尼亞州的一般費率案件均進展順利，符合預期。在加州，我們於 11 月就與收入請求相關的案件達成了部分和解。在收到 CPUC 關於和解協議以及與費率設計和收入穩定機制相關的未決主題的決定後，我們將準備執行新費率，追溯至 2024 年 1 月 1 日。

Our request for a 1-year extension on the cost of capital was also granted, pushing the next filing out to May of 2025. In Indiana, we received a final order just yesterday, and it looks very constructive. We are currently evaluating it, and we'll share key takeaways in the next day or two, but overall, we're generally pleased. And finally, in Kentucky, we expect to receive a final order very soon.

我們關於資本成本延期 1 年的請求也獲得批准，將下一次申請推遲到 2025 年 5 月。在印第安納州，我們昨天收到了最終訂單，看起來非常有建設性。我們目前正在評估它，我們將在接下來的一兩天內分享關鍵要點，但總的來說，我們總體上很滿意。最後，在肯塔基州，我們預計很快就會收到最終訂單。

As a reminder, we expect to file general rate cases about every 2 years in our larger jurisdictions. Because we make prudent investments and have skilled and dedicated employees working on these cases, we're very confident in obtaining constructive outcomes again in 2024 as we did in 2023. On the legislative front, in New Jersey, new legislation supporting capital investment was passed and was signed by the governor in January. The Resiliency and Environmental System Investment Charge or RESIC, for short, establishes a new regulatory mechanism that will enable water and wastewater utilities to recover in a more timely manner, capital spending related to investments in resiliency, environmental compliance, safety and public health. This includes capital related to PFAS remediation.

提醒一下，我們預計大約每兩年在我們較大的司法管轄區提交一次一般費率案件。由於我們進行審慎投資，並擁有熟練且敬業的員工處理這些案件，因此我們非常有信心在2024 年再次取得建設性成果，就像2023 年一樣。在立法方面，新澤西州通過了支持資本投資的新立法並在一月由州長簽署。彈性和環境系統投資費用（簡稱RESIC）建立了一種新的監管機制，使供水和污水處理設施能夠更及時地恢復與彈性、環境合規性、安全和公共衛生投資相關的資本支出。這包括與 PFAS 修復相關的資本。

In fact, most of our states where PFAS is present. There are either existing environmental mechanisms that we believe PFAS investments will fit under or we're proactively advocating for such mechanisms. To show the magnitude of our regulatory execution efforts, you can see on Slide 11 that we have $390 million in annualized new revenues in rates since January of 2023. This includes $273 million from general rate cases and step increases and $117 million from infrastructure surcharges. We also have $670 million of total annualized revenue request pending. As a reminder, American Water recovers about 75% of our overall capital spend through infrastructure mechanisms or forward test years, which greatly reduces regulatory lag.

事實上，我們大多數州都存在 PFAS。我們認為 PFAS 投資適合現有的環境機制，或者我們正在積極倡導此類機制。為了顯示我們監管執行工作的規模，您可以在投影片11 中看到，自2023 年1 月以來，我們的年化新收入為3.9 億美元。其中包括來自一般費率案例和階梯增長的2.73 億美元，以及來自基礎設施附加費的1.17 億美元。我們還有 6.7 億美元的年化總收入請求待處理。提醒一下，美國水務公司透過基礎設施機製或遠期測試年份回收了約 75% 的總資本支出，這大大減少了監管滯後。

Alongside all of the investments we're making, we remain extremely focused on customer affordability and operating efficiently. We are continuing to evolve our strategies around rate design and programs to assist our customers who are challenged with affordability. We are also continuing our focus on technology, efficiencies of scale and cost management to deliver on customer affordability, especially as the regulatory demand such as the proposed PFAS rule and lead and copper rule improvements drive increases in -- on our capital program.

除了我們正在進行的所有投資之外，我們仍然高度關注客戶的承受能力和高效運作。我們將繼續圍繞費率設計和計劃制定策略，以幫助面臨負擔能力挑戰的客戶。我們也將繼續專注於技術、規模效率和成本管理，以提高客戶的承受能力，特別是在擬議的 PFAS 規則以及鉛和銅規則改進等監管需求推動我們資本計畫的增加的情況下。

On Slide 12, I'd like to cover our recent announcements regarding the U.S. EPA's proposed Lead and Copper Rule Improvements. Like PFAS we think clear rules are important and should be enforced for all providers. American Water consistently meets water quality standards related to the lead and copper rules across our footprint and believes removing the risk of lead service lines over time is the right thing to do for the health and safety of our customers. But also like PFAS, we believe all stakeholders must understand the costs associated with the proposed improvements to the lead and copper rule and that the EPA estimates are likely understated.

在投影片 12 上，我想介紹我們最近發布的有關美國 EPA 擬議的鉛和銅規則改進的公告。與 PFAS 一樣，我們認為明確的規則很重要，並且應該對所有提供者執行。美國水務公司在我們的業務範圍內始終符合與鉛和銅規定相關的水質標準，並相信隨著時間的推移，消除鉛服務線的風險是為了我們客戶的健康和安全而採取的正確做法。但與 PFAS 一樣，我們相信所有利害關係人必須了解與擬議的鉛和銅規則改進相關的成本，而 EPA 的估計可能被低估了。

The cost to identify the material of all unknown service lines and replace all lead service lines, including the customer owned lines and galvanized lines were needed by 2037, will require significant investment for all water systems. We are currently developing preliminary estimates based on the proposed rule. Unlike PFAS though, the expected time line for complying with the Lead and Copper Rule Improvements is much longer, so the impact on capital spend will be more gradual. Providing safe, reliable and affordable water is American Water's business.

到 2037 年，識別所有未知服務管線的材料並更換所有主要服務管線（包括客戶自有管線和鍍鋅管線）所需的成本將需要對所有供水系統進行大量投資。我們目前正在根據擬議規則制定初步估計。但與 PFAS 不同的是，遵守鉛和銅規則改進的預期時間要長得多，因此對資本支出的影響將更加漸進。提供安全、可靠和負擔得起的水是美國水務公司的業務。

We continue to work with the EPA, Congress, regulators and policymakers to ensure that the implementation of any final standards protect customers, community and the general public. As I close on Slide 13, you can see that our 5-year capital plan, which is unchanged from November, has $1 billion for PFAS and approximately $500 million for lead service line replacements. We have been proactively investing about $100 million per year to replace lead service lines for several years now and expect to continue that level at least through 2030 or beyond.

我們繼續與美國環保署、國會、監管機構和政策制定者合作，確保任何最終標準的實施都能保護客戶、社區和公眾。在投影片 13 結束時，您可以看到我們的 5 年資本計畫與 11 月相比沒有變化，其中 10 億美元用於 PFAS，大約 5 億美元用於主要服務線更換。幾年來，我們每年積極投資約 1 億美元來更換主要服務線，並預計至少到 2030 年或更長時間都能維持這一水準。

Depending on the EPA's requirements in the final Lead and Copper Rule Improvements such as for customer-owned service lines, our annual investment level may need to be revised and likely over a longer period of time. Also, we are still awaiting a final rule from the U.S. EPA on PFAS. We continue to expect that there will be no material changes to the proposed rule, and we have not changed any of our announced plans or estimates last November related to PFAS compliance. We continue to treat for PFAS in compliance with state regulations and we continue to prepare for full compliance with the new federal rule once released.

根據 EPA 在最終鉛和銅規則改進中的要求（例如客戶擁有的服務線），我們的年度投資水準可能需要修改，並且可能需要修改較長的時間。此外，我們仍在等待美國環保署關於 PFAS 的最終規定。我們仍然預計擬議規則不會發生重大變化，我們也沒有改變去年 11 月宣布的與 PFAS 合規相關的任何計劃或估計。我們將繼續按照州法規處理 PFAS，並繼續為全面遵守新的聯邦法規發布後的規定做好準備。

Previously, we have disclosed that we are a party to the multi-district litigation, or MDL lawsuit in U.S. District Court for the District of South Carolina against manufacturers of certain PFAS like 3M and DuPont for damages. In early December, there were deadlines to decide whether or not to remain partly to the two potential settlements with manufacturers, and we did remain a party to both settlements. We believe this is the optimal path to recouping the most dollars possible from PFAS manufacturers in expedient manner for our customers. On February 8, the MDL Court issued its final approval of the DuPont settlement. We will now begin the process of perfecting our claims under this settlement within the time period provided by the MDL.

先前，我們曾透露，我們是美國南卡羅來納州地區法院針對 3M 和杜邦等某些 PFAS 製造商提起的多區訴訟或 MDL 訴訟的一方，要求賠償損失。 12 月初，我們在最後期限內決定是否部分保留與製造商達成的兩項潛在和解協議，而我們確實仍然是兩項和解協議的一方。我們相信，這是為我們的客戶以方便的方式從 PFAS 製造商收回最多資金的最佳途徑。 2 月 8 日，MDL 法院發布了對杜邦和解協議的最終批准。我們現在將在 MDL 規定的期限內開始完善本和解協議項下的索賠流程。

A fairness hearing on the 3M settlement was held on February 2. This matter remains pending. In closing, it's important for investors to understand that the ever-changing regulatory environment is leading to significant industry challenges, including those related to lead and PFAS, but also with issues like cybersecurity, for example. Each change on its own is significant, but the layering effect of all these changes is even more dramatic. The expertise we bring to the table to solve these challenges is well recognized across the states where we operate and sets us apart from others.

2 月 2 日舉行了關於 3M 和解協議的公平聽證會。此案仍懸而未決。最後，投資者必須了解不斷變化的監管環境正在導致重大的行業挑戰，包括與鉛和 PFAS 相關的挑戰，但也包括網路安全等問題。每個變化本身都很重要，但所有這些變化的分層效果更加引人注目。我們為解決這些挑戰而提供的專業知識在我們開展業務的各州得到了廣泛認可，這使我們與眾不同。

It's a privilege and a great responsibility to deliver safe, clean, reliable and affordable services to our customers and communities. With that, I'll hand it over to John to cover our financial results and plans in further detail. John?

為我們的客戶和社區提供安全、清潔、可靠和負擔得起的服務是一種榮幸，也是一項重大責任。這樣，我將把它交給約翰，以更詳細地介紹我們的財務表現和計劃。約翰？

Thank you, Cheryl, and good morning, everyone. Turning to Slide 15. Let me provide a few more details on financial results for 2023. The appendix also has details of fourth quarter EPS. Consolidated earnings were $4.90 per share in 2023, up $0.39 per share compared to 2022 and up $0.32 per share on a weather-normalized basis. Increased revenues were driven by general rate cases we completed in late 2022 and early 2023 in our larger states. These additional revenues are driven by the significant investments we've made and continue to make in our systems.

謝謝你，謝麗爾，大家早安。轉向幻燈片 15。讓我提供有關 2023 年財務業績的更多詳細資訊。附錄還包含第四季度每股收益的詳細資訊。 2023 年合併收益為每股 4.90 美元，比 2022 年每股增加 0.39 美元，在天氣正常化的基礎上每股增加 0.32 美元。我們於 2022 年底和 2023 年初在較大州完成的一般費率案件推動了收入的增加。這些額外收入是由我們已經和繼續對我們的系統進行的重大投資所推動的。

As noted, earnings were higher in 2023 by an estimated net $0.13 per share as a result of weather in the second, third and fourth quarters due to warm and dry conditions, primarily in Missouri, New Jersey and Pennsylvania. This compares to net favorable weather in the third quarter of 2022 of $0.06 per share, which related to (inaudible) warm and dry conditions in New Jersey.

如上所述，由於第二、第三和第四季度天氣溫暖乾燥，主要是密蘇裡州、新澤西州和賓夕法尼亞州，預計 2023 年每股收益將增加 0.13 美元。相比之下，2022 年第三季的淨有利天氣為每股 0.06 美元，這與新澤西州（聽不清楚）溫暖乾燥的條件有關。

And looking at operating costs, higher pension expense of about $0.13 per share and increased chemical costs of about $0.11 per share, including inflationary pressures are being recovered in large part through higher revenues we proactively sought in general rate cases we completed in the last 12 to 18 months. In the fourth quarter, we also had higher costs of about $0.10 per share related to waste disposal, equipment repairs, tank painting and other maintenance costs across our footprint.

從營運成本來看，每股退休金費用增加約0.13 美元，化學品成本增加約每股0.11 美元，包括通膨壓力，這在很大程度上是透過我們在過去12 年完成的一般費率案例中主動尋求的更高收入來恢復的。18 個月。第四季度，我們的廢棄物處理、設備維修、儲槽噴漆和其他維護成本的成本也增加了，每股約 0.10 美元。

Supporting our investment growth, depreciation expense increased $0.24 per share and the cost of additional long-term financing increased $0.38 per share, primarily related to share count dilution. As I have mentioned all year, the EPS impact of the higher share count from our equity issuance back in early March was offset by avoided interest on the year. An additional benefit realized this year from the equity issuance is the interest income we have been earning from the cash balance held since March. Other reflects primarily post-closing acquisition adjustments in 2022 from the sales of HOS in New York, which added to EPS.

為了支持我們的投資成長，折舊費用每股增加了 0.24 美元，額外長期融資成本每股增加了 0.38 美元，主要與股份數量稀釋有關。正如我全年提到的，三月初我們發行股票所帶來的股票數量增加對每股盈餘的影響被今年避免的利息所抵銷。今年透過股票發行實現的另一個好處是我們從三月以來持有的現金餘額中賺取的利息收入。其他主要反映了 2022 年紐約居屋銷售的交割後收購調整，該調整增加了每股收益。

Turning to Slide 16. You'll see that we continue to be set up for strong growth through acquisitions. We closed on 23 acquisitions totaling $77 million across eight states in 2023. We also have 25 transactions under agreement across seven states at year-end, totaling $589 million and 88,000 customer connections. This total includes both the Butler Area Sewer Authority wastewater system in Pennsylvania and the Granite City wastewater treatment plant in Illinois. We are very close to completing the Granite City acquisition, where we already provide wastewater collection service for approximately 12,000 customers.

轉向幻燈片 16。您會發現我們繼續透過收購實現強勁成長。 2023 年，我們在 8 個州完成了 23 筆收購，總金額為 7,700 萬美元。截至年底，我們還在 7 個州簽署了 25 筆交易，總金額為 5.89 億美元，建立了 88,000 個客戶關係。這一總數包括賓州巴特勒地區下水道管理局廢水系統和伊利諾州花崗岩城廢水處理廠。我們即將完成對 Granite City 的收購，我們已經為約 12,000 名客戶提供廢水收集服務。

In Pennsylvania, as Susan briefly discussed, the regulatory environment relating to acquisitions is undergoing change, which we think is ultimately necessary and positive, but will take a period of time to sort out. We are very confident that Act 12 fair market value legislation will remain in place and continue to have strong support. As is often the case, implementation of legislation needs to be worked through in the regulatory arena, and that is what is happening now. In the meantime, closing of our current pending transactions will likely take more time than usual. But to be clear, we are confident that the previously approved Butler acquisition will close soon.

正如蘇珊簡要討論的那樣，在賓州，與收購相關的監管環境正在發生變化，我們認為這最終是必要且積極的，但需要一段時間才能理清。我們非常有信心第 12 號法案公平市場價值立法將繼續存在並繼續得到強有力的支持。通常情況下，立法的實施需要在監管領域完成，這就是現在正在發生的情況。同時，完成當前待處理交易可能會比平常花費更多時間。但需要明確的是，我們有信心先前批准的巴特勒收購將很快完成。

We are continuing to invest in regulated acquisition opportunities in Pennsylvania, driven by the continued need for system consolidation and upgrading for the benefit of communities in Pennsylvania who deserve safe and reliable water and wastewater service. As you know, we have a strong track record of closing acquisitions. Over the past 5 years, we've closed over 100 acquisitions across 12 states, totaling nearly 200,000 new customer connections. Of course, as we close transactions, the work to build and refill our acquisition pipeline is continuous. Our pipeline of more than 1.3 million customer connections with meaningful contributions from across our platform continues to be a strong leading indicator that supports this piece of our rate base growth outlook.

由於系統整合和升級的持續需求，我們將繼續投資賓州受監管的收購機會，以造福賓州值得獲得安全可靠的供水和廢水處理服務的社區。如您所知，我們在完成收購方面擁有良好的記錄。在過去 5 年裡，我們在 12 個州完成了 100 多項收購，總計建立了近 20 萬個新客戶關係。當然，當我們完成交易時，建立和補充收購管道的工作仍在繼續。我們擁有超過 130 萬個客戶聯繫，整個平台做出了有意義的貢獻，這仍然是支持我們的費率基礎成長前景的強大領先指標。

As you recall, in November, we introduced our long-term target of 2% annual customer growth from acquisitions as shown on Slide 7. This equates to about 70,000 acquired customers per year based on our current customer count of approximately 3.5 million customers. We are proactively investing in our capabilities across our platform to bolster our system-wide contribution to acquisitions to support this growth and are confident in meeting our 2% long-term target.

正如您所記得的，我們在11 月推出了透過收購實現2% 年度客戶成長的長期目標，如幻燈片7 所示。根據我們目前約350 萬客戶的數量，這相當於每年約70,000 個收購客戶。我們正在積極投資於我們整個平台的能力，以增強我們對全系統收購的貢獻，以支持這一成長，並有信心實現我們 2% 的長期目標。

Turning to Slide 17. Here, we show the buildup from 2023 weather-normalized actual to the 2024 EPS guidance range of $5.10 to $5.20 that we introduced last November, which reflects 8% growth at the midpoint of $5.15. Working from that same buildup yesterday, we announced an increase of $0.10 per share to our 2024 EPS guidance range, which is now $5.20 to $5.30 per share. The increase is due solely to additional interest income we will receive in 2024 and expect to receive annually through 2026 from the amended terms of the secured seller note from the sale of HOS.

轉向幻燈片17。在這裡，我們展示了從2023 年天氣正常化實際值到我們去年11 月推出的2024 年EPS 指導範圍5.10 美元至5.20 美元的增長情況，這反映了5.15 美元中​​點的8 % 增長。在昨天的基礎上，我們宣布將 2024 年每股收益指引提高 0.10 美元，目前為每股 5.20 美元至 5.30 美元。這一增長完全是由於我們將在 2024 年收到額外的利息收入，並預計到 2026 年每年都會從出售居屋的擔保賣方票據的修訂條款中獲得額外的利息收入。

As we described in the 8-K we filed on February 5, the note balance has been increased to $795 million from $720 million which satisfies payment of the contingent consideration owed to American Water of $75 million triggered by the extension of HOS's service agreement with the New York City water board. In addition, reflecting current market interest rates and removal of American Water's option to require prepayment of the note at a future date, the annual interest rate on the note has been increased from 7% to 10%.

正如我們在2 月5 日提交的8-K 中所述，票據餘額已從7.2 億美元增加至7.95 億美元，用於支付因延長HOS 與美國水務公司的服務協議而引發的欠美國水務公司7,500萬美元的或有代價。紐約市水務局。此外，考慮到目前的市場利率以及取消美國水務公司要求在未來某個日期預付票據的選擇權，票據的年利率已從 7% 提高至 10%。

American Water is pleased to see the continued growth of the HOS business under its new ownership, including the service contract extension with New York City as well as the significant acquisition recently announced by HOS, which will be funded with new equity from HOS's owners. As it relates to future earnings guidance, it will be important for investors to be able to track the ongoing growth of American Water from its core regulated strategy before this additional interest income. Therefore, when we provide forward year EPS guidance each November, we will be sure to note the EPS associated with the additional interest income from the secured seller note in that guidance.

美國水務很高興看到 HOS 業務在其新所有權下持續成長，包括與紐約市的服務合約延期以及 HOS 最近宣布的重大收購，該收購將由 HOS 所有者的新股權提供資金。由於它與未來的獲利指引相關，因此對於投資者來說，在獲得額外利息收入之前，能夠從其核心監管策略中追蹤美國水務公司的持續成長非常重要。因此，當我們每年 11 月提供遠期每股盈餘指引時，我們一定會在該指引中註明與有擔保賣方票據的額外利息收入相關的每股盈餘。

To wrap up, Slide 18 is a summary of our continued strong financial condition, which we further solidified in 2023. Just last month, Moody's affirmed our solid Baa1 investment-grade credit rating and stable outlook and noted our improved FFO to debt ratio. We are confident our FFO to debt ratios will continue to support our current credit ratings. Our total debt-to-capital ratio as of December 31, net of our roughly $330 million of cash on hand is 55%, which is comfortably within our long-term target of less than 60%.

最後，投影片18 總結了我們持續強勁的財務狀況，並在2023 年進一步鞏固了這一狀況。就在上個月，穆迪確認了我們穩固的Baa1 投資級信用評級和穩定的前景，並指出我們的FFO 與負債比率有所改善。我們相信我們的 FFO 與債務比率將繼續支持我們目前的信用評級。截至 12 月 31 日，扣除約 3.3 億美元的手頭現金後，我們的總債務與資本比率為 55%，完全處於我們低於 60% 的長期目標之內。

While having moderated somewhat, the current higher interest rate environment continues to be challenging. As I said in November, though, we are in a position of strength on a number of fronts in dealing with this challenge. Our strategy of issuing debt at the holding company level allows us to take advantage of our scale and pricing debt issuances and we will remain proactive in managing risk and achieving a low cost of capital to the best of our customers and shareholders.

儘管有所放緩，但當前較高的利率環境仍充滿挑戰。不過，正如我在 11 月所說，我們在應對這項挑戰的多個方面都處於有利地位。我們在控股公司層級發行債務的策略使我們能夠利用我們的規模和定價債務發行的優勢，我們將繼續積極主動地管理風險，並為我們的客戶和股東實現較低的資本成本。

With that, I'll turn it back over to our operator to begin Q&A and take any questions you may have.

這樣，我會將其轉回給我們的接線員以開始問答並回答您可能有的任何問題。

(Operator Instructions) Our first question comes from Shahriar Pourreza with Guggenheim Partners.

（操作員說明）我們的第一個問題來自 Guggenheim Partners 的 Shahriar Pourreza。

I don't usually lead off with sort of an M&A question, but I know John loves talking about M&A, and we saw that in the prepared remarks. And obviously, it's timely given the Eversource news yesterday where they essentially put Aquarion on the block. Can you speak maybe to your appetite for larger inorganic opportunities? And specifically, any geographic aversions to the Northeast in light of the developments yesterday.

我通常不會以併購問題作為開頭，但我知道約翰喜歡談論併購，我們在準備好的演講中看到了這一點。顯然，考慮到昨天 Eversource 的消息，他們基本上將 Aquarion 封殺，這是及時的。您能談談您對更大的無機機會的興趣嗎？具體來說，鑑於昨天的事態發展，對東北地區的任何地理厭惡。

Shahriar, I think it's a great question. Obviously, we saw the news as well. And John certainly can comment more. I'd say, first of all, of course, we don't comment on any activity in the M&A space of that nature. I think for us, it continues to be our standards that we've shared. We have to be confident in the ability to grow. We have to have confidence regulatory environments, confidence in policy, support in any jurisdiction that we're currently in or other jurisdictions we may be looking at. So I think that's always the gate at which we evaluate opportunities. So I'd probably just say that, John, any additional comments from your side?

Shahriar，我認為這是一個很好的問題。顯然，我們也看到了這個消息。約翰當然可以發表更多評論。我想說，首先，我們當然不會對此類性質的併購領域的任何活動發表評論。我認為對我們來說，這仍然是我們共同的標準。我們必須對成長的能力充滿信心。我們必須對監管環境有信心，對政策有信心，並對我們目前所在的任何司法管轄區或我們可能正在考慮的其他司法管轄區有支持。所以我認為這始終是我們評估機會的大門。所以我可能只想說，約翰，你還有其他意見嗎？

Well said.

說得好。

Perfect. And then just a follow-on. I know you're still kind of working through some of the ins and outs lead and copper rule. Is there even a general CapEx upside amount you could give us to think about would the spend sort of be additive in your view to the current plan? Or would it shift out some spend out like we saw with -- obviously, with PFAS spend on the last update.

完美的。然後只是後續。我知道您仍在研究鉛和銅規則的一些細節。您是否可以提供一個總體資本支出上行金額，讓我們考慮一下您認為這筆支出是否會增加到當前計劃中？或者它會像我們看到的那樣轉移一些支出 - 顯然，在上次更新中使用 PFAS 支出。

Yes, Shahriar, let me again sort of generally answer and then Cheryl can add to it. I think it's -- first of all, it's sort of too early to be able to give any additional guidance around impacts to our overall plan. I think the important thing to remember here is it is over a much longer period of time than what we're seeing with the PFAS rules, for example. So it will give us more time to figure out what the actual impacts are to the plan, give us more opportunity to look at -- opportunity to move other projects around to sort of accommodate whatever spend we think maybe incremental here for us.

是的，Shahriar，讓我再次籠統地回答，然後謝麗爾可以補充。我認為，首先，現在就對我們整體計劃的影響提供任何額外指導還為時過早。我認為這裡要記住的重要一點是，它的持續時間比我們所看到的 PFAS 規則要長得多。因此，這將給我們更多的時間來弄清楚對計劃的實際影響，讓我們有更多的機會去考慮——有機會移動其他項目，以適應我們認為可能會增加的任何支出。

So we just probably need a little bit more time to sort through it and then we can give a clearer guidance. Again, as Cheryl said in her prepared remarks, we know it will be significant. I don't think it will have the dramatic impact on our plan for shorter-term windows like we saw with PFAS, for example. Cheryl, anything you want to add to that?

所以我們可能需要更多的時間來整理它，然後我們才能給予更清晰的指導。正如謝麗爾在準備好的演講中所說，我們知道這將意義重大。我認為這不會像我們在 PFAS 上看到的那樣對我們的短期窗口計劃產生巨大影響。謝麗爾，你還有什麼要補充的嗎？

Yes. The only thing I would add, Shahriar, is just that we have been making really good progress in that space. And we'll continue to be focused on removing our lead service lines and the customer lead service line where they exist. But this is a more inclusive rule that, as Susan said, is over a longer period of time. So we'll continue to look at how we can layer that in.

是的。 Shahriar，我唯一要補充的是，我們在該領域取得了非常好的進展。我們將繼續專注於消除我們的領先服務線和現有的客戶領先服務線。但這是一個更具包容性的規則，正如蘇珊所說，是一個較長時期的規則。因此，我們將繼續研究如何將其分層。

Yes. I think just to sort of punch line on that one, and Cheryl again made the comment in her prepared remarks, this is about unknown service lines, unknown material, and it is about customer owns. So as we've been working through our own program of replacing our lines, now we have the added requirement to look at unknown pipe and customer service lines. So that's why it gets bigger. And then again, the long-term time horizon to deal with it, I think, is also important to keep note of.

是的。我想只是為了強調這一點，謝麗爾在她準備好的演講中再次發表了評論，這是關於未知的服務線、未知的材料，而且是關於客戶擁有的。因此，當我們一直在實施自己的線路更換計劃時，現在我們有額外的要求來查看未知的管道和客戶服務線路。這就是它變得更大的原因。話又說回來，我認為，處理這個問題的長期時間範圍也很重要。

The next question comes from Durgesh Chopra with Evercore ISI.

下一個問題來自 Evercore ISI 的 Durgesh Chopra。

Just -- I hate to go back to the M&A. I know you're kind of going to be very limited in what you can say. But we've been getting a ton of questions on this. So I just want to be clear about something. In your seat, your peers generally describe M&A as a high hurdle rate, right, with the organic growth opportunities that they have as a company. How would you characterize the Connecticut water assets? Are these ones -- one-of-a-kind assets, those large assets that don't often come to markets extremely attractive? Or would you say the M&A opportunity is still a high hurdle rate versus the organic CapEx that you have? And I don't want to put words in your mouth, but I just want to see how you're thinking about it.

只是——我討厭回到併購。我知道你能說的話會非常有限。但我們收到了很多關於此的問題。所以我只是想澄清一些事情。在你的座位上，你的同行通常將併購描述為高門檻率，對吧，因為他們作為一家公司擁有有機成長機會。您如何描述康乃狄克州的水資源資產？這些獨特的資產、那些不常進入市場的大型資產是否極具吸引力？或者您會說，與您擁有的有機資本支出相比，併購機會仍然是一個很高的障礙率？我不想把話塞到你嘴裡，只是想看看你怎麼想的。

Yes. Durgesh, I'll tell you at the outset, you're not going to be happy with my answer because I'm not going to sort of go into a whole lot of detail here. I think -- our focus continues to be on the communities and the states that we currently operate in. And as you know, we're in 14 different states. We think there are just a significant number of opportunities in those states, and we're going to continue to focus on that. As you would expect anyone to do, we'll take a look at this kind of an opportunity as everyone would, but I think, again, our screens are the critical thing you should focus on. Regulatory environment, legislative environment, business climate and the ability to grow and that we're always going to look at opportunities from that perspective.

是的。 Durgesh，我一開始就告訴你，你不會對我的回答感到滿意，因為我不會在這裡詳細介紹很多細節。我認為，我們的重點仍然是我們目前營運所在的社區和州。如您所知，我們分佈在 14 個不同的州。我們認為這些州存在大量機會，我們將繼續關注這一點。正如您期望任何人都會做的那樣，我們將像每個人一樣關注這種機會，但我認為，我們的螢幕是您應該關注的關鍵事情。監管環境、立法環境、商業環境和成長能力，我們總是從這個角度來看機會。

Understood. Susan, I appreciate that. Maybe then switching gears. Can you just update us on the Pennsylvania rate case, the commission, I think, came out in December, I think they may have suspended the rate case schedule. Maybe just talk to that, what does that mean? What are the next steps there, please?

明白了。蘇珊，我很感激。也許然後換檔。您能否向我們介紹賓州費率案件的最新情況，我認為該委員會於 12 月發布，我認為他們可能已經暫停了費率案件時間表。也許只是談談，這意味著什麼？請問接下來的步驟是什麼？

Yes. Cheryl, I think laid out the details around timing. We've disclosed the size of the case, et cetera. Sort of big picture for me on this case. As is the case really with all of our general rate cases we have in progress, it's all about investment. We're not trying to do anything tricky in any of these cases, no significant policy changes from our perspective. This is simply about investment. That's what this Pennsylvania case is about and we'll continue to work through the process. There are no indications of any issues associated with this case as we work through the process, and we'll continue to stay on that path. I'd say that's generally the case on all of our jurisdictions, all the cases that we have on file today.

是的。謝麗爾，我認為列出了有關時間的細節。我們已經披露了案件的規模等。對我來說，這個案子有點大局觀。正如我們正在進行的所有一般利率案例的實際情況一樣，這一切都與投資有關。在這些情況下，我們並不想做任何棘手的事情，從我們的角度來看，政策沒有重大改變。這只是投資的問題。這就是賓州案件的目的，我們將繼續完成整個過程。在我們處理整個流程的過程中，沒有任何跡象表明存在與此案例相關的任何問題，我們將繼續沿著這條道路走下去。我想說，我們所有司法管轄區、我們今天歸檔的所有案件都是如此。

We've been signaling this, I think, for quite some time that the expectation to be in for general rate cases on this roughly 2-year cycle. We've been saying that for probably 2, 3 years now, and this is just the continuation of that program. And it's all really driven again by our investment -- the pace of our investment, we've been increasing our capital spend plan for a number of years now to really address the needs that exist in the communities that we serve. And I think our regulatory strategy is consistent with that approach. So Pennsylvania is no different than any other state in terms of our approach to it, and we'll continue to work the process there like we always do. And we think Pennsylvania again, is a very constructive state, and we're confident in our ability to work through that case.

我認為，我們已經在相當長的一段時間裡發出了這樣的信號，即對這個大約兩年周期的一般利率情況的預期。我們已經這樣說了大概兩三年了，而這只是這個計畫的延續。這一切實際上都是由我們的投資所驅動的——我們的投資速度，多年來我們一直在增加我們的資本支出計劃，以真正滿足我們所服務的社區中存在的需求。我認為我們的監管策略與這種方法是一致的。因此，賓州的處理方法與其他州沒有什麼不同，我們將像往常一樣繼續在那裡進行流程。我們再次認為賓州是一個非常有建設性的州，我們對解決此案的能力充滿信心。

Got it. Just a quick follow-up there, Susan, -- like do -- does the procedure like the steps in the rate case in terms of testimony, intervenor testimony and all that stuff. Does that go along as planned with the suspension? Or is that on pause? I might have seen something that you maybe on pause. I'm not sure if...

知道了。蘇珊，只是快速跟進，就像在證詞、幹預者證詞和所有其他內容方面的費率案件中的步驟一樣。這是否按計劃進行？還是說暫停了？我可能看到了一些你可能暫停的東西。我不確定是否...

No, no change. Yes, no change. It's on schedule and on the normal process.

不，沒有改變。是的，沒有變化。這是按計劃、按正常流程進行的。

The next question comes from Angie Storozynski with Seaport.

下一個問題來自 Seaport 的 Angie Storozynski。

I'm going to ask about Illinois first. I mean we have some very bad outcomes, regulatory outcomes on the electric and gas side in the states. You have a case there where we're already seeing some noise around it. So I'm just wondering how -- if there is any lesson learned from what happened in December and if you've incorporated that into the current timing? And then secondly, on PFAS, so we're seeing some lawsuits against investor-owned utilities on the back of PFAS. I understand that you've mentioned that you've been in compliance and going beyond requirements, but I'm just wondering how you manage this risk.

我要先問一下伊利諾州的狀況。我的意思是，我們有一些非常糟糕的結果，即各州電力和天然氣方面的監管結果。那裡有一個案例，我們已經看到周圍有一些噪音。所以我只是想知道，是否從 12 月發生的事情中吸取了任何教訓，並且您是否已將其納入當前的時間表中？其次，關於 PFAS，我們看到一些針對投資者擁有的公用事業公司的 PFAS 訴訟。我知道您提到您一直遵守並超出要求，但我只是想知道您如何管理這種風險。

Yes. Again, let me sort of start off here. On Illinois, I would take my answer to Pennsylvania and insert the word, Illinois. We are proceeding there as scheduled with no significant issues in that case. It is about investment, and we'll continue to process that case like we always would. Certainly, there is noise around the electric and gas industry cases there. We think, again, our cases are different in that they are about investment only, and we're confident in our ability to continue to work through that case as well.

是的。再次，讓我從這裡開始。關於伊利諾伊州，我會將我的答案取為賓夕法尼亞州並插入“伊利諾伊州”這個詞。我們正在按計劃進行，在這種情況下沒有重大問題。這是關於投資的，我們將像往常一樣繼續處理該案件。當然，那裡的電力和天然氣行業案件存在噪音。我們再次認為，我們的案例有所不同，因為它們僅與投資有關，並且我們對繼續解決該案例的能力充滿信心。

On PFAS, Cheryl, you might just actually want to comment on Illinois, if you like. And then on PFAS. There's obviously a lot going on here, too. I think the litigation environment around this is probably not surprising. There'll be all sorts of plaintiffs' attorneys looking for an angle here. And I think that's probably what mostly you're referring to and what we're seeing. But Cheryl, anything you want to add on either of these topics?

關於 PFAS，謝麗爾，如果您願意，您實際上可能只想對伊利諾伊州發表評論。然後是 PFAS。顯然這裡也發生了很多事情。我認為圍繞此的訴訟環境可能並不令人意外。會有各種各樣的原告律師在這裡尋找角度。我認為這可能就是您所指的以及我們所看到的。但是謝麗爾，您想為這些主題添加什麼內容嗎？

Yes. I would just say, Susan, you were completely accurate on Illinois. We built a really strong case based on capital investment and we feel good about that case and the process. We're just going to go through the process there, the way we normally would. As far as the PFAS stuff, I do believe that there -- we've seen some lawsuits out there, [Julien], as you mentioned. But we've been working really hard both to make sure that we're in compliance with all the rules that are out there that we're being proactive in our approach. But we're also working with EPA on the CERCLA designation and working at the federal level to try to get protections for water utilities all across the U.S. because we believe that we shouldn't be held accountable for polluted waters that are coming to us, and we're doing everything we possibly can to treat for that pollutant. And so we think that we should be protected from that.

是的。我只想說，蘇珊，你對伊利諾伊州的看法完全準確。我們基於資本投資建立了一個非常強大的案例，我們對這個案例和流程感覺良好。我們將按照通常的方式完成該過程。至於 PFAS 的問題，我確實相信——我們已經看到了一些訴訟，[Julien]，正如你所提到的。但我們一直在非常努力地工作，以確保我們遵守我們積極主動的所有規則。但我們也在與 EPA 就 CERCLA 指定進行合作，並在聯邦層面開展工作，努力為全美各地的自來水公司提供保護，因為我們認為我們不應該對即將到來的污染水源承擔責任，我們正在盡一切努力來處理這種污染物。所以我們認為我們應該受到保護，免受這種情況的影響。

So we're going to continue to work in that vein and in that space. And being part of the MDL, that's one step in that process to get recovery from the people who caused the pollution in the first place.

因此，我們將繼續在這個領域和這個領域開展工作。作為 MDL 的一部分，這是從最初造成污染的人那裡恢復的過程中的一個步驟。

Next question comes from Julien Dumoulin-Smith from Bank of America.

下一個問題來自美國銀行的 Julien Dumoulin-Smith。

And nicely done on the guidance here, I got to say. Maybe actually, to that point on guidance, given the bump here. Just with respect to resetting higher the CAGR going forward, I just want to recognize that this goes through '26. Implicitly, could we say this is a statement of confidence through the forecast period? Or is this more nuance to the specific 3-year forecast period, '25 -- '24 to '26 here, if you will?

我不得不說，這裡的指導做得很好。也許實際上，考慮到這裡的障礙，到了指導的這一點。就重置更高的複合年增長率而言，我只想認識到這將貫穿 26 年。隱含地，我們是否可以說這是對預測期內的信心聲明？或者，如果您願意的話，這與特定的 3 年預測期（'25 - '24 到 '26）有更細微的差別嗎？

Yes. I think we've tried to be clear, Julien, on the sort of duration of this additional interest we'll have on the [NOL]. But John, do you want to comment on this further?

是的。 Julien，我認為我們已經盡力澄清我們對 [NOL] 的額外興趣的持續時間。但是約翰，你想對此進一步發表評論嗎？

Yes, I think you've got it right, Julien. It's -- think of this as an increase over our ongoing guidance for that period through '26. And that's -- but we've not made changes as we tried to describe in our comments from our original guidance on the regulated strategy from back in November?

是的，我認為你說得對，朱利安。可以將其視為對我們截至 26 年期間持續指導的增加。那就是——但我們並沒有做出改變，正如我們試圖在我們的評論中描述的那樣，我們對 11 月的監管策略的原始指導意見是這樣的？

Right. Yes, understood. I just wanted to clarify that extra clear. With respect to Illinois here, obviously, you've got this case out there, there's a certain degree of attention. Can you comment a little bit about maybe some of the rate mitigation factors, what other pieces could help offset some of the rate increases to customers in Illinois? And any other mitigating factors and circumstances around that case that we can speak to here, for instance.

正確的。是的，明白了。我只是想更清楚地澄清這一點。顯然，就伊利諾伊州而言，您已經看到了這個案例，並且受到了一定程度的關注。您能否對一些費率緩解因素發表一些評論，還有哪些因素可以幫助抵消伊利諾伊州客戶的部分費率上漲？例如，我們可以在這裡討論與該案件相關的任何其他減輕因素和情況。

Yes. I'll comment on sort of overall strategy on that point. I think we treat Illinois the same as we do our other states. I mean we've been very focused on mechanisms or approaches to regulatory solutions that will help lessen and mitigate the direct impact of inflationary cost pension and other things, we've done that via trackers, we've done that via deferrals, and we've done that sort of across many of our jurisdictions, and we have a good amount of those costs actually, frankly, already sort of dealt with and embedded in rate structures across our territory.

是的。我將評論這一點的整體策略。我認為我們對待伊利諾伊州和對待其他州一樣。我的意思是，我們一直非常關注監管解決方案的機製或方法，這將有助於減少和減輕通貨膨脹成本養老金和其他事情的直接影響，我們透過追蹤器做到了這一點，我們透過延期做到了這一點，我們我們的許多司法管轄區都這樣做了，而且坦白說，我們實際上已經處理了大量這些成本，並將其嵌入到我們整個領土的費率結構中。

No, Illinois, really no different than that. And as Cheryl said, we're just not experiencing other issues currently in that case. Now we obviously have to finish it. We have to get through the rest of the procedural schedule. And and work through any issues that may come up. But we're not anticipating anything materially different there.

不，伊利諾伊州，確實與此沒有什麼不同。正如謝麗爾所說，在這種情況下，我們目前沒有遇到其他問題。現在我們顯然必須完成它。我們必須完成剩下的程序安排。並解決可能出現的任何問題。但我們預計不會出現任何實質的差異。

Yes. Excellent. And then lastly, just going back to the M&A point you were making earlier. I thought you were pretty clear about this. It needs to be accretive and/or provide robust visible growth. I just want to make sure I'm hearing you right about the growth piece there in terms of a key element in ingredient.

是的。出色的。最後，回到您之前提出的併購要點。我以為你對此很清楚。它需要具有增值性和/或提供強勁的可見成長。我只是想確保我聽到的關於生長部分的成分關鍵元素的說法是正確的。

Well, I don't know that I said it has to be accretive. Are you -- I guess you're talking about the M&A piece. I think, again, I'll just repeat it. I think our view is that for us to look at new jurisdictions, it has to be productive, regulatory, legislative business environment. And the opportunity for growth, and I really, I guess, was referring to sort of footprint growth there. And obviously, you would apply a meaningful financial contribution from that too. So it's the same screens we've always had. It's the same dialogue we've always had on potential expansion into other territories. So I don't think this particular situation changes anything about how we feel about growth in other jurisdictions.

嗯，我不知道我說過它必須是增值的。我猜你正在談論併購部分。我想，我還是重複一遍吧。我認為我們的觀點是，我們要考慮新的司法管轄區，它必須具有高效率、監管、立法的商業環境。我想，成長的機會實際上指的是那裡的足跡成長。顯然，您也可以從中獲得有意義的財務貢獻。所以我們一直使用的螢幕是一樣的。這與我們一直就潛在擴張到其他領域進行的對話是一樣的。因此，我認為這種特殊情況不會改變我們對其他司法管轄區成長的看法。

Got it. And just going back to lastly on that FMV piece, you guys commented extensible here, but just the time line on getting that clarity there. And you talked about being a little bit more protracted. Just how does this sort of at least from a process perspective, finally get to some resolution as far as you guys are concerned? And then prospects on expanding it even from there, given where we stand.

知道了。回到最後那篇 FMV 文章，你們在這裡評論了可擴展性，但只是在那裡獲得清晰度的時間線。你談到要拖延一點時間。就你們而言，至少從流程的角度來看，最終又如何達成某種解決方案？考慮到我們的立場，甚至從那裡開始擴大它的前景。

Well, Julien, you're going to have to help me. On the first part of your question, I'm not sure what you're referring to.

好吧，朱利安，你得幫我。關於你問題的第一部分，我不確定你指的是什麼。

Well, just on the fair market value just in terms of potentially taking a little bit longer yes, indeed.

嗯，就公平市場價值而言，可能需要更長的時間，是的，確實如此。

I got you. I just didn't hear the first part. Yes, I think that, as I said in my remarks, and John expanded on a bit, I think that what the PUC has done in Pennsylvania is actually quite helpful. And I've got a lot of experience in the regulatory world over the last 40 years or so. I've seen many pieces of legislation enacted, and I've seen many situations where commissions have to work through the implementation of that legislation. And I think that's exactly what we're doing here. And as we said, we applaud the commission for taking this approach and really being thoughtful about it and understanding the importance of this legislation to the larger strategy in the Commonwealth. So I think the steps that are being taken make good sense.

我接到你了。我只是沒聽到第一部分。是的，我認為，正如我在發言中所說的那樣，約翰對此做了一些擴展，我認為 PUC 在賓夕法尼亞州所做的事情實際上非常有幫助。在過去 40 年左右的時間裡，我在監管領域擁有豐富的經驗。我見過許多立法的頒布，也見過許多委員會必須努力執行該立法的情況。我認為這正是我們在這裡所做的。正如我們所說，我們讚揚委員會採取這種方法，並真正深思熟慮並理解這項立法對英聯邦更大戰略的重要性。因此，我認為正在採取的步驟很有意義。

Now -- having said that, we do have to continue to work through how those guidelines ultimately may be employed. But we think it's just helpful. And we'll give a framework for all of us to be able to work more productively in. Now having said that also, we do have to sort out what it means in terms of timing, and we've got a number of cases, acquisitions that we're working on in Pennsylvania through the regulatory and approval process, and it's obviously impacting that a bit currently, but we expect that to clear soon and be able to get back on our way here.

現在——話雖如此，我們確實必須繼續研究如何最終採用這些指導方針。但我們認為這只是有幫助。我們將為我們所有人提供一個框架，以便我們能夠更有效率地工作。話雖如此，我們確實必須弄清楚它在時間方面意味著什麼，而且我們已經有很多案例，我們正在賓夕法尼亞州通過監管和審批流程進行的收購，目前顯然會產生一些影響，但我們預計這種情況很快就會消除，並且能夠回到這裡。

Next question Comes from Anthony Crowdell with Mizuho.

下一個問題來自瑞穗的安東尼克勞德爾。

Just a quick housekeeping question after Julien. You talked about the HOS note in the income, and you're very clear about that, that's more -- or not much of an ongoing earnings number. I think you talked about maybe it rolls off in 2026. When we move forward post '26, should we think about additional rate base that maybe backfills that on a more linear growth rate? Or -- and I know $0.10 of a $5 and some number is very small, but just does something backfill that to keep their earnings trajectory pretty linear?

朱利安之後，我想問一個簡單的家事問題。您談到了收入中的居屋票據，您非常清楚這一點，這更多或不是持續盈利數字的一部分。我想你談到的可能會在 2026 年結束。當我們在 26 年後前進時，我們是否應該考慮額外的利率基礎，也許可以以更線性的成長率來回補？或者——我知道 5 美元中​​的 0.10 美元，有些數字非常小，但只是做一些事情來彌補這一點，以保持他們的收入軌跡相當線性？

Yes. I think you hit on it, Anthony, there at the end. It's not terribly material. We think this is a great benefit from a cash flow perspective. The additional interest is nice to have. We think the certainty associated with the -- that contingent payment we had on the New York contract extension is quite helpful now to have that secured. So we think there's just a variety of things about the restructuring that made a lot of sense for us that don't necessarily translate into any material impact to our overall plan. So long answer to your question, we would not expect there to be a need for finding additional capital to sort of fill in that very minor hole that this $0.10 will create.

是的。我想你在最後說到了這一點，安東尼。這並不是什麼非常物質的東西。我們認為從現金流角度來看這是一個巨大的優點。額外的興趣是很高興的。我們認為與紐約合約延期相關的或有付款的確定性現在對於確保這一點非常有幫助。因此，我們認為重組中有很多對我們來說很有意義的事情，但不一定會對我們的整體計劃產生任何實質影響。對你的問題的回答很長，我們預計不需要尋找額外的資金來填補這 0.10 美元將造成的非常小的漏洞。

Great. And just if I could squeeze one more. And it's -- it's to Cheryl's comments earlier and unfortunately, it looks like most of the Q&A has been sidetracked by Eversource question. So I'm not asking an Eversource question. Just when Cheryl talked about the increased needs on water systems, cybersecurity, you just think of that, is that maybe a foreshadow to that maybe the smaller bolt-on acquisitions may come at a greater frequency because of the requirements that are being -- the compliance requirements that are being put on these smaller systems, was that where that was headed?

偉大的。如果我能再擠一個就好了。這是——這是謝麗爾早些時候的評論，不幸的是，看起來大部分問答都被 Eversource 的問題轉移了注意力。所以我不是問 Eversource 問題。就在謝麗爾談到對供水系統和網路安全的需求增加時，你會想到這一點，這可能預示著，由於當前的要求，較小的補強收購可能會以更高的頻率出現。對這些較小的系統所提出的合規性要求，是它的發展方向嗎？

Yes. I think this is an area we've tried to signal, I think, for the last several discussions we've been having, and I think really probably what prompted that even was PFAS as an example. We see that as just another area that may be difficult for some of these smaller systems to be able to manage, both from an investment standpoint as well as an expertise standpoint. Cyber is another great example. Interest rates is another great example. I mean, the list just gets longer, not shorter for these communities to sort of have to deal with.

是的。我認為這是我們在最近幾次討論中試圖發出信號的一個領域，我認為這可能就是以 PFAS 為例。我們認為，從投資的角度和專業知識的角度來看，這只是這些較小系統中的一些可能難以管理的另一個領域。網路是另一個很好的例子。利率是另一個很好的例子。我的意思是，這些社區需要處理的問題清單只是變得更長，而不是更短。

And from our perspective, we have always been very focused on trying to define what the need is for a community and helping satisfy those needs. And again, from an M&A perspective or an acquisition perspective, as that list gets longer, it creates more opportunity for us to have that dialogue and work with communities to solve those kinds of problems. So yes, we think it does have upside to our acquisition strategy. it's probably not a Tsunami though to use a water term. It's probably a much sort of longer-term impact I think it takes a bit of time for communities to sort of wrestle with these issues and determine impacts to them before they are ready to make a move.

從我們的角度來看，我們一直非常專注於嘗試定義社區的需求並幫助滿足這些需求。再次，從併購或收購的角度來看，隨著清單變得越來越長，它為我們創造了更多機會進行對話並與社區合作解決此類問題。所以，是的，我們認為這確實對我們的收購策略有好處。但如果用水這個術語來說，這可能不是海嘯。這可能是一種長期影響，我認為社區需要一些時間來解決這些問題並確定對他們的影響，然後才能準備好採取行動。

So again, we use these kinds of issues in our discussions. I think it will take some time before we see any measurable impact directly related to these issues.

因此，我們在討論中再次使用此類問題。我認為我們需要一段時間才能看到與這些問題直接相關的任何可衡量的影響。

The next question comes from Steven Fleishman with Wolfe Research.

下一個問題來自沃爾夫研究中心的史蒂文‧弗萊什曼。

Not an M&A question. So the -- a couple of things on the HOS changes. So -- just the -- thinking about the shift in the interest rate on the note 7%, 10%, which is great. I mean that's a pretty high rate to pay for the seller and I guess soon to get rid of the prepayment. And so I guess I'm just wondering how do I think about just making sure that, that seller in terms of getting paid back -- getting paid.

不是併購問題。因此，居屋的一些事情發生了變化。所以 - 只是 - 考慮票據利率的變化 7%、10%，這很​​棒。我的意思是，這對賣家來說是一個相當高的支付率，我想很快就會擺脫預付款。所以我想我只是想知道我如何考慮確保賣家獲得回報 - 獲得報酬。

Great question, Steve.

好問題，史蒂夫。

Yes. John, do you want to take this question?

是的。約翰，你想回答這個問題嗎？

Sure. From a credit perspective, we stay very close to the HOS business. We're, in fact, a partner. And as lender, we're constantly in touch with the business. The company has evolved, the credit has improved. Extending the New York contract is a significantly positive credit move and as I mentioned in my comments, the company is currently making an acquisition with new equity funding from their owners as well as cash on their balance sheet. So we do have covenants. They've remained in compliance with the covenants. And in fact, we've taken the opportunity to tighten covenants as well. But when you look at the underlying business, it's frankly doing better than it ever has. So we feel very, very good about the underlying credit here.

當然。從信用角度來看，我們與居屋業務非常接近。事實上，我們是合作夥伴。作為貸款人，我們不斷與企業保持聯繫。公司不斷發展，信用不斷提高。延長紐約合約是一項非常積極的信貸舉措，正如我在評論中提到的，該公司目前正在利用其所有者的新股權融資以及資產負債表上的現金進行收購。所以我們確實有契約。他們仍然遵守契約。事實上，我們也藉此機會收緊了契約。但當你審視基礎業務時，坦白說，它的表現比以往任何時候都更好。所以我們對這裡的基礎信用感覺非常非常好。

Okay. Does the owner, does the private -- does the firm back it up to? Or is it just the business back up paying the rest?

好的。業主、私人企業是否支持它？還是只是企業支援支付其餘部分？

Yes. No, the owner backs it up, and that's what I was trying to say. So when there's fresh equity coming into the business to make this acquisition, that's coming from APAC to who owns the business.

是的。不，業主支持它，這就是我想說的。因此，當有新的股權進入企業進行此次收購時，這些股權將來自亞太地區，並由誰擁有該企業。

Got it. And then just -- I know you have that sharing mechanism, too for the business. Could you just maybe let us know kind of how much income you made on the sharing mechanism part in, let's say, 2023 or -- yeah.

知道了。然後，我知道你們也有這種業務共享機制。您能否讓我們知道您在 2023 年透過共享機制賺取了多少收入，或者——是的。

Yes. Steve, I don't know if we had that disclosed. Is it separate in the 10-K? Yes. Steve, we can point you to it. I'll have Aaron follow back up with you to point you to it. But I think it is in the 10-K, which obviously, we filed last night. And this is the revenue-sharing mechanism you're referring to, where we collect the share of the revenue that's generated from the warranty work that they're doing in our various state jurisdictions where we have (inaudible). Yes, yes. So Aaron will (inaudible).

是的。史蒂夫，我不知道我們是否已經披露了這一點。 10-K 中是分開的嗎？是的。史蒂夫，我們可以給你指點一下。我會讓 Aaron 跟進你，向你指出這一點。但我認為它是在 10-K 中，顯然，我們昨晚提交了該文件。這就是您所指的收入分享機制，我們收集他們在我們擁有的各州司法管轄區所做的保固工作所產生的收入份額（聽不清楚）。是的是的。所以亞倫會（聽不清楚）。

Last on the Pennsylvania case, I think two of the commissioners sent a letter at the beginning of the case, just kind of framing it. I'm not sure -- is that abnormal would you say? Or is that normal for your Pennsylvania cases? How would you characterize that?

最後關於賓州的案件，我認為兩位委員在案件開始時發了一封信，只是框架而已。我不確定——你認為這是不正常的嗎？或者這對於您賓州的案件來說是正常的嗎？您如何形容這一點？

Yes, I would say it's probably not necessarily customary, but again, we think that this case is proceeding as it should. We don't really see, again, any issues here. It's a big case. I mean it's $1 billion worth of investment and we were in just a little under 2 years ago on this case. So it's certainly material. And again, solely driven by investment in the jurisdictions that we -- or the communities that we serve there.

是的，我想說這可能不一定是慣例，但我們再次認為此案正在按其應有的方式進行。我們在這裡並沒有真正看到任何問題。這是一個大案子。我的意思是，這是價值 10 億美元的投資，而我們在不到兩年前就參與了這個案例。所以這當然是物質的。再說一次，這完全是由我們所在司法管轄區或我們所服務的社區的投資所驅動的。

Next question comes from Jonathan Reeder with Wells Fargo.

下一個問題來自富國銀行的喬納森·里德。

I just wanted to come back to [PA] and the fair market value stuff, do you anticipate that all the changes to the fair market value will come via the commission process? Or do you think some of the bills in the legislature will make it across the finish line?

我只想回到 [PA] 和公平市場價值的問題，您是否預計公平市場價值的所有變化都將透過佣金流程來實現？或者你認為立法機關的一些法案會成功通過嗎？

Yes. Our view is that this is the best path and the likely path to sort of resolve issues around fair market value in Pennsylvania. Again, I think this is normal practice. And I'm not speaking specific to Pennsylvania. I'm just saying normal in my 40 years of experience, this happens fairly regularly where commissions are charged with interpreting legislation and applying the provisions of it. And that's what I think this commission is doing, and I think they took a very proactive step here to do exactly what you're talking about to resolve the issues and be able to effectively implement the legislation.

是的。我們的觀點是，這是解決賓州公平市場價值問題的最佳途徑和可能途徑。再說一遍，我認為這是正常做法。我並不是專門針對賓州。我只是說，根據我 40 年的經驗，這種情況很常見，在委員會負責解釋立法並應用立法條款的情況下，這種情況經常發生。我認為這就是該委員會正在做的事情，我認為他們在這裡採取了非常積極主動的步驟，完全按照您所說的去做，以解決問題並能夠有效地實施立法。

I think there's no one -- well, I shouldn't say no one. There are a few probably that have conceptual problem with what fair market value legislation was intended to do. I think there's a good understanding of the need for consolidation in the state, and this is the mechanism to allow for that to occur. So I think it stands, and I think the commission will do the work necessary to make sure that the legislation is effectively enacted and implemented.

我認為沒有人——好吧，我不應該說沒有人。有些人可能對公平市場價值立法的目的存在概念性問題。我認為人們對國家整合的必要性有了很好的理解，這就是實現這一目標的機制。所以我認為這是正確的，而且我認為委員會將進行必要的工作，以確保立法得到有效頒布和實施。

Yes. So I mean you're saying PA is, in your opinion, very much fully behind continued promotion of consolidation.

是的。所以我的意思是，您認為 PA 非常全力支持持續促進整合。

Yes. I think as a state, as a Commonwealth, I believe that is a true statement, yes.

是的。我認為作為一個州，作為一個聯邦，我相信這是一個真實的說法，是的。

Okay. what sort of impact do you think it will have on the deal activity? And would you say the proposed RRR will make it tougher for AWK to deliver on the M&A CapEx placeholders?

好的。您認為這會對交易活動產生什麼樣的影響？您是否認為擬議的 RRR 將使 AWK 更難兌現併購資本支出佔位權？

I think we'll have to see how it plays out and how ultimately it gets worked from a procedural standpoint. But I'd say, generally speaking, no. we do not see it having a material impact on available opportunities and then ultimately, the outcomes on transactions.

我認為我們必須從程序的角度來看它如何發揮作用以及最終如何發揮作用。但我想說，一般來說，不會。我們認為它不會對現有機會以及最終的交易結果產生重大影響。

Okay. And then last question for me. I saw that in at least the PA and New Jersey rate case filings that revenue decoupling requests were made, possibly, it's in the Illinois case, too. Do you typically make those decoupling requests and just don't get them? Or is that something new that you're pursuing?

好的。然後是我的最後一個問題。我看到至少在賓夕法尼亞州和新澤西州的費率案件備案中提出了收入脫鉤請求，可能伊利諾伊州的案件中也有這樣的要求。您通常會提出這些解耦請求但沒有得到它們嗎？或者這是您正在追求的新事物？

Yes, it's a good question. I'd say it varies across jurisdictions. And again, part of our job here is to really understand what each commission is comfortable with and what mechanisms work or don't work in a particular jurisdiction. And it's also part of our responsibility to educate and to inform commissions and their staffs about how various mechanisms can work and what the impacts are. So we do that across our jurisdictions. And I think we have really been more proactive in that regard over the last couple of years.

是的，這是一個好問題。我想說的是，不同司法管轄區的情況有所不同。再說一遍，我們的部分工作是真正了解每個委員會對什麼感到滿意，以及哪些機制在特定司法管轄區有效或無效。教育委員會及其工作人員並讓其了解各種機制如何運作及其影響是什麼，這也是我們責任的一部分。所以我們在我們的管轄範圍內這樣做。我認為過去幾年我們在這方面確實更加積極主動。

And so I think as we do that education and that dialogue, it will inform where we propose what mechanisms. So I wouldn't necessarily say it's a broad application. The decoupling is always on our list. In every jurisdiction, I think it's all circumstantial. What mechanisms work best in what jurisdictions and we work accordingly.

因此，我認為，當我們進行教育和對話時，它將告訴我們在哪裡提出什麼機制。所以我不一定說它是一個廣泛的應用。脫鉤始終在我們的清單上。在每個司法管轄區，我認為這都是因情況而定的。哪些機制在哪些司法管轄區最有效，我們也相應地開展工作。

Okay. But for PA in New Jersey, are these new proposals? Or have they been there and, say, your most recent case, too?

好的。但對於新澤西州的 PA 來說，這些是新提案嗎？或者他們也去過那裡，比如說你最近的案例嗎？

Yes. I'd have to go back and look to see if we had them specifically in those cases. I don't actually recall. But again, I wouldn't necessarily think this is breaking new ground on either of these proposals.

是的。我必須回去看看我們是否專門針對這些情況提供了它們。我其實不記得了。但同樣，我不一定認為這對這些提案中的任何一個都有新的突破。

The next question comes from Gregg Orrill with UBS.

下一個問題來自瑞銀集團的格雷格·奧裡爾。

Yes. Thank you. Just a question on the PFAS settlements. Just sort of your expectation on the outcome following up on the 3M settlement there. And thanks for the additional updates. I'm just curious if anything's changed around your view of the company's sort of legacy liability to PFAS if there is one?

是的。謝謝。只是關於 PFAS 和解的問題。只是您對 3M 和解協議後續結果的期望。感謝您的額外更新。我只是好奇您對公司對 PFAS 的遺留責任的看法是否有任何改變（如果有的話）？

Yes. On the first question, Gregg, around just settlement expected outcomes. Obviously, that process is proceeding. And we had one settlement approved and the other one fairness hearing has occurred, and we would expect it to ultimately get approved. And then the process begins of claim submittals and really going through the settlement allocation process. So obviously, it's too early for us to be able to give you any indication of what we think the outcomes will be financially. But as we've said all along, these will be cents on the dollar in terms of recovery. We don't expect, obviously, for it to cover the full cost of exposure here. But the amounts to be recovered through the settlement, we think is quite important and the best avenue, as Cheryl said in her remarks, to collect dollars on behalf of the customer to reduce the overall obligation the customer has.

是的。關於第一個問題，格雷格，圍繞著和解的預期結果。顯然，這個過程正在進行中。我們已經批准了一項和解方案，並舉行了另一場公平聽證會，我們預計它最終會獲得批准。然後，索賠提交流程開始，並真正完成和解分配流程。顯然，現在向您提供我們認為的財務結果的任何指示還為時過早。但正如我們一直以來所說的那樣，就復甦而言，這些對美元來說只是微不足道的。顯然，我們並不期望它能夠涵蓋這裡的全部曝光成本。但我們認為，透過和解收回的金額非常重要，也是代表客戶收回美元以減少客戶整體義務的最佳途徑，正如謝麗爾在她的演講中所說。

So it's a good process. We've been happy to be involved in it. Our team, I think, in a lot of ways, is leading much of the effort around getting this work through the courts and getting outcomes here that are quite favorable.

所以這是一個很好的過程。我們很高興能參與其中。我認為，我們的團隊在許多方面都在帶領這項工作通過法庭並取得相當有利的結果。

To your second question on how do we view sort of legacy exposure here. I don't think our view changes. As we said earlier, this will be an environment like all where there will be plaintiff's attorneys that are looking for an opportunity here and how that ultimately gets worked through the larger process around the MDL, the multi-district litigation is yet to (inaudible). But in terms of our exposure, we don't have any different view than we've had from a legacy perspective. Again, as Cheryl said, on a go-forward basis, we are treating and we're preparing to treat, and we're confident in our ability to do that on a go-forward basis.

關於你的第二個問題，我們如何看待這裡的遺留風險。我認為我們的觀點不會改變。正如我們之前所說，這將是一個與所有環境一樣的環境，原告律師將在這裡尋找機會，以及最終如何通過圍繞 MDL 的更大程序進行工作，跨地區訴訟尚未完成（聽不清） 。但就我們的曝光度而言，我們的觀點與傳統觀點沒有什麼不同。再次，正如謝麗爾所說，在前進的基礎上，我們正​​在治療，我們正在準備治療，我們對我們在前進的基礎上做到這一點的能力充滿信心。

This concludes our question-and-answer session. The conference has now concluded. Thank you for attending. You may now disconnect.

我們的問答環節到此結束。會議現已結束。感謝您的出席。您現在可以斷開連線。