美國水務 (AWK) 2025 Q1 法說會逐字稿

Good morning, and welcome to American Water's first quarter 2025 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 one year on American Water's Investor Relations website.

早安，歡迎參加美國水務公司 2025 年第一季財報電話會議。提醒一下，本次電話會議正在錄音，並透過公司投資者關係網站進行網路直播，並附上幻燈片簡報。音訊網路廣播檔案將在美國水務公司投資者關係網站上保存一年。

I would now like to introduce you your host for today's call, Aaron Musgrave, Vice President of Investor Relations. Mr. Musgrave, you may begin.

現在，我想向大家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，你可以開始了。

Thank you, Danielle. 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.

謝謝你，丹妮爾。大家早安，感謝大家參加今天的電話會議。在我們準備好的發言結束時，我們將開始回答您的問題。首先讓我介紹一下安全港語言。

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.

今天，我們將做出前瞻性陳述，代表我們對未來績效或其他未來事件的預期。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，因此它們受制於許多已知和未知的風險、不確定性和其他因素，這些因素可能導致實際結果與這些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 the more detailed analysis of our financials and other important information is provided in the first-quarter earnings release and Form 10-Q, 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.

有關這些風險、不確定性和因素的更多資​​訊以及對我們的財務狀況和其他重要資訊的更詳細分析均在昨天向美國證券交易委員會提交的第一季度收益報告和 10-Q 表中提供。最後，本演示中所有與收益和每股收益相關的陳述均指稀釋收益和稀釋每股收益。

John Griffith, our President, will share year-to-date highlights, our affirmation of 2025 EPS guidance, and long-term targets, and our dividend increase. David Bowler, our Executive Vice President and CFO, will discuss our first quarter financial results, provide rate case and legislative updates, and will review our affirmation of growth drivers and financing plans.

我們的總裁約翰·格里菲斯 (John Griffith) 將分享今年迄今為止的亮點、我們對 2025 年每股收益指引的確認、長期目標以及我們的股息增長。我們的執行副總裁兼財務長 David Bowler 將討論我們的第一季財務業績，提供利率案例和立法更新，並將審查我們對成長動力和融資計劃的確認。

Cheryl Norton, our Executive Vice President and COO will then discuss our capital investment program, our acquisition outlook, and will conclude with comments on the state of infrastructure in the US. After our prepared remarks, we'll then close by answering your questions. Our CEO, Susan Hardwick, is also with us and will be available for Q&A.

我們的執行副總裁兼營運長 Cheryl Norton 將討論我們的資本投資計劃、收購前景，最後對美國基礎設施狀況發表評論。在我們準備好發言之後，我們將回答您的問題。我們的執行長蘇珊哈德威克 (Susan Hardwick) 也將出席並回答我們的問題。

With that, I'll turn the call over to American Water's President, John Griffith.

說完這些，我會把電話轉給美國水務公司總裁約翰‧格里菲斯。

Thank you, Aaron, and good morning, everyone. As we announced yesterday, we started 2025 with solid financial results. As shown on slide 5, earnings were $1.05 per share for the quarter, a nearly 11% increase compared to $0.95 last year. The increased results are on track to achieve our full-year earnings guidance, which we are pleased to affirm representing our expectation of 8% EPS growth in 2025 compared to our weather-normalized 2024 EPS.

謝謝你，亞倫，大家早安。正如我們昨天宣布的那樣，我們以穩健的財務業績開啟了 2025 年。如幻燈片 5 所示，本季每股收益為 1.05 美元，與去年的 0.95 美元相比增長了近 11%。業績成長預計將實現我們的全年獲利預期，我們很高興地確認，與天氣正常化的 2024 年每股收益相比，我們預計 2025 年每股收益將成長 8%。

First quarter 2025 results included $0.03 per share of additional interest income from the February 2024 amendment of the seller note related to the sale of Homeowner Services. Here you can also see a recap of some of our other key accomplishments so far in 2025 and David and Cheryl will add to these in their remarks.

2025 年第一季的業績包括 2024 年 2 月與出售房主服務相關的賣方票據修訂產生的每股 0.03 美元的額外利息收入。在這裡，您還可以看到我們在 2025 年迄今為止取得的一些其他主要成就的回顧，David 和 Cheryl 將在他們的評論中補充這些成就。

We continued our track record of regulatory and capital plan execution in the first quarter with new rates effective in several states and investments in infrastructure progressing well. I'm proud of our team's efforts supporting two key priorities in Missouri this year. We achieved a constructive settlement in the general rate case in Missouri and are awaiting a final order. And through a collaborative effort with many stakeholders, future test year legislation was signed into law in the state.

我們在第一季度延續了監管和資本計劃執行的良好記錄，新利率在多個州生效，基礎設施投資進展順利。我為我們團隊今年在支持密蘇裡州兩項關鍵優先事項方面所做的努力感到自豪。我們在密蘇裡州的一般稅率案件中達成了建設性的解決方案，目前正在等待最終命令。透過與眾多利益相關者的共同努力，未來考試年立法已在該州簽署成為法律。

Both outcomes are supportive of important utility infrastructure investments and aligned with our focus on providing safe, clean, reliable, and affordable service to our customers. In addition, we were pleased to see S&P and Moody's again recognize our strong balance sheet and cash flows and our low-risk profile as they both affirmed our strong investment-grade credit ratings and stable outlook.

這兩項成果都支持重要的公用事業基礎設施投資，並符合我們為客戶提供安全、清潔、可靠和實惠服務的重點。此外，我們很高興看到標準普爾和穆迪再次認可我們強勁的資產負債表和現金流以及低風險狀況，他們都肯定了我們強勁的投資級信用評級和穩定的前景。

Turning to slide 6. This quarter, we are again affirming our long-term targets for both earnings and dividend growth at 7% to 9%, driven by 8% to 9% rate base growth. This affirmation is based on our clear top tier capital growth plan and our strong regulatory and operational execution that I believe is a positive differentiator from our peers. We expect to consistently grow earnings and dividends at an industry-leading pace over the next five years and beyond, leading to a very competitive value proposition for our shareholders.

翻到幻燈片 6。本季度，我們再次確認獲利和股息成長的長期目標為 7% 至 9%，由 8% 至 9% 的利率基準成長推動。這項肯定是基於我們明確的頂級資本成長計劃以及強大的監管和營運執行力，我相信這是我們與同行的積極區別。我們預計未來五年及以後我們的獲利和股利將以業界領先的速度持續成長，從而為我們的股東帶來極具競爭力的價值主張。

Moving on to slide 7. As we announced yesterday, our Board of Directors approved an increase in the company's quarterly cash dividend from $0.765 per share to $0.8275 per share, an 8.2% increase. We have grown our dividend consistently over the last decade, significantly outpacing virtually all of our utility peers.

移至幻燈片 7。正如我們昨天宣布的那樣，董事會批准將公司季度現金股息從每股 0.765 美元增加到每股 0.8275 美元，增幅為 8.2%。過去十年來，我們的股息持續成長，幾乎超過所有公用事業同業。

Looking ahead, we continue to expect to grow our dividend at 7% to 9% per year in line with our compelling 7% to 9% EPS growth target. Our Board and management team understand and appreciate how important the dividend component of our total shareholder return is to our investors.

展望未來，我們預期股息每年仍將成長 7% 至 9%，以實現令人信服的 7% 至 9% 的每股盈餘成長目標。我們的董事會和管理團隊理解並重視總股東回報中的股利部分對我們的投資者的重要性。

Finally, I would like to note that today is our last earnings call with Susan at the helm. As you recall, we announced in February with the Q4 release that Susan will be retiring upon our Annual Shareholders' Meeting on the 14th of this month. Susan, we will miss your presence, your leadership, and your wisdom and are grateful for everything that you have done for American Water. You've had a long and very distinguished career in the utility sector, and we wish you much happiness and a lot of relaxation in your retirement.

最後，我想指出，今天是蘇珊主持的最後一次財報電話會議。您還記得，我們​​在二月發布的第四季財報中宣布，蘇珊將於本月 14 日的年度股東大會上退休。蘇珊，我們會懷念您的存在、您的領導和您的智慧，並感謝您為美國水務公司所做的一切。您在公用事業領域有著漫長而傑出的職業生涯，我們祝福您退休後生活幸福安康。

With that, I'll hand it over to David to cover our financial results and rate case and legislative updates in further detail. David?

接下來，我將把主題交給大衛，讓他更詳細地介紹我們的財務表現、利率案例和立法更新。戴維？

Thanks, John, and good morning, everyone. Turning to slide 9, I'll provide some further insights into our financial results for the quarter. Consolidated reported earnings were $1.05 per share, up $0.10 per share versus the same period in 2024. Revenues were higher by $0.44 per share, primarily due to authorized rate increases to recover investment across our states.

謝謝，約翰，大家早安。翻到第 9 張投影片，我將進一步介紹本季的財務表現。合併報告收益為每股 1.05 美元，比 2024 年同期每股增長 0.10 美元。每股收入增加 0.44 美元，主要原因是授權提高利率以恢復各州的投資。

Revenues were also higher from closed water and wastewater acquisitions and organic customer growth. And looking at operating costs, O&M was higher by $0.15 per share, driven primarily by employee-related costs and other increases that support growth in the business and costs related to acquisitions completed in 2024, as we expected.

已完成的水和廢水收購以及有機客戶成長也帶來了收入成長。從營運成本來看，O&M 每股上漲 0.15 美元，主要原因是員工相關成本和其他支持業務成長的成長以及與 2024 年完成的收購相關的成本，正如我們預期的那樣。

Depreciation increased $0.11 per share and financing costs increased $0.10 per share, both as expected in support of our investment growth. And finally, we have $0.01 per share of additional interest income from the February 2024 note amendment related to the sale of HOS, which is included in the other net column.

折舊增加每股 0.11 美元，融資成本增加每股 0.10 美元，這兩項均符合預期，支持了我們的投資成長。最後，我們從 2024 年 2 月與出售 HOS 相關的票據修訂中獲得每股 0.01 美元的額外利息收入，這筆收入包含在另一個淨列中。

Turning to slide 10. I'll cover the latest regulatory activity in our states. The two key developments this quarter were rate cases in Missouri and Virginia. In Missouri, we entered into a settlement agreement with several parties, including commission staff and the Office of Public Counsel. We agreed to an annualized revenue increase of $63 million as compared to our most recent revised request of $107 million. New rates are expected to go into effect on May 31, 2025, and once the final order is received from the commission, we will give our view on ROE and capital structure.

翻到第 10 張投影片。我將報道我們各州的最新監管活動。本季度的兩個關鍵進展是密蘇裡州和維吉尼亞州的利率案件。在密蘇裡州，我們與包括委員會工作人員和公共律師辦公室在內的多方達成了和解協議。我們同意將年度收入增加 6,300 萬美元，而我們最近修改後的請求是 1.07 億美元。新的利率預計將於 2025 年 5 月 31 日生效，一旦收到委員會的最終命令，我們將對 ROE 和資本結構發表看法。

In Virginia, the commission issued an order approving our settlement of the general rate case. The order approved a $15 million annualized increase in water and wastewater revenues compared to the original filing that had requested a $20 million increase. The order also approved a return on equity of 9.7% and a higher equity component of the capital structure than in our previous case at nearly 46%. Since interim rates were implemented in May of 2024, results in 2025 won't be meaningfully impacted by this case.

在維吉尼亞州，委員會發布命令批准我們對一般費率案件進行和解。該命令批准將水和廢水處理收入每年增加 1500 萬美元，而最初申請的收入是增加 2000 萬美元。該命令還批准了 9.7% 的股本回報率，且資本結構的股權部分高於我們先前的案例，接近 46%。由於臨時利率於 2024 年 5 月實施，因此 2025 年的結果不會受到此案的重大影響。

Turning to active cases. The proceeding in Iowa is progressing as expected, and we expect to receive a final order this month. In Hawaii, we filed a partial settlement agreement subject to regulatory approval that results in a $1.5 million increase based on a 9.75% ROE. We expect to receive a final order midyear 2025.

轉向活躍案例。愛荷華州的訴訟程序正在按預期進行，我們預計本月將收到最終命令。在夏威夷，我們提交了一份部分和解協議，需經監管部門批准，該協議將基於 9.75% 的 ROE 增加 150 萬美元。我們預計將於 2025 年中期收到最終訂單。

And finally, later today, we'll be making an initial submission related to our next general rate case in California, which is in keeping with the state's three-year cycle. The California case will seek to recover nearly $750 million in planned investment in pipe replacement, resiliency, and other important system needs.

最後，今天晚些時候，我們將就加州的下一個一般稅率案件提交初步意見，這符合該州的三年週期。加州的案件將尋求收回近 7.5 億美元的管道更換、彈性和其他重要係統需求的計畫投資。

Slide 11 outlines three important pieces of priority legislation for us that were signed into law already in 2025. First, Missouri passed Senate Bill 4. As a result, beginning July 1, 2026, water and wastewater utilities may request the use of a future test year in a general rate case for rate base and certain expenses. As you know, our current Missouri general rate case was filed on July 1, 2024, so we expect that our next general rate case in Missouri, we'll request this future test year treatment. This is a positive step for the regulatory and business environment in Missouri.

投影片 11 概述了我們已於 2025 年簽署成為法律的三項重要優先立法。首先，密蘇裡州通過了參議院第4號法案。因此，從 2026 年 7 月 1 日開始，水務和污水處理公用事業單位可以要求在一般費率案例中使用未來的測試年度作為費率基準和某些費用。如您所知，我們目前的密蘇裡州一般稅率案件於 2024 年 7 月 1 日提起，因此我們預計，我們在密蘇裡州的下一個一般稅率案件將要求在未來的測試年份進行處理。這對於密蘇裡州的監管和商業環境來說是一個積極的進步。

Turning to Indiana. Legislatures there passed Senate Bill 426 in March which modifies the existing distribution system improvement charge to allow for the deferral, depreciation and post in-service carrying costs from the in-service state of eligible investments until they are included for recovery in rates. The language also provides important protections from lawsuits when utilities are meeting applicable water quality standards.

轉向印第安納州。3 月份，立法機構通過了參議院第 426 號法案，該法案修改了現有的配電系統改進費用，允許從合格投資的投入使用狀態開始計算延期、折舊和投入使用後的持有成本，直到將其納入費率回收。當公用事業滿足適用的水質標準時，該語言也提供了重要的訴訟保護。

Then in Virginia. Senate Bill 850 was passed and will permit a water or wastewater utility to petition the Virginia Commission for the recovery of an expanded list of eligible infrastructure costs outside of a base rate case. Collectively, these three laws represent progress towards achieving allowed returns in each state and are supportive of further investments. I'd like to congratulate our government and external affairs teams who worked alongside many others to help achieve these constructive policies in 2025.

然後在維吉尼亞州。參議院第 850 號法案獲得通過，該法案將允許水務或污水處理公用事業公司向弗吉尼亞州委員會請願，要求追討基準費率案例之外的擴大合格基礎設施成本清單。總的來說，這三項法律代表了各州在實現允許回報方面取得的進展，並支持進一步的投資。我要祝賀我們的政府和對外事務團隊，他們與其他許多人一起努力，幫助在 2025 年實現這些建設性政策。

And finally, on slide 12. As John mentioned, we've affirmed our 2025 EPS guidance, which again represents 8% annual growth. Our outlook and plans for 2025 remain unchanged from our February call. As Cheryl will speak to, we don't expect any of the recent tariff-related announcements to have a material impact on our 2025 plan or financial results.

最後，請看第 12 張投影片。正如約翰所提到的，我們已經確認了 2025 年每股收益指引，這再次代表著 8% 的年增長率。我們對 2025 年的展望和計劃與 2 月份的展望相比保持不變。正如 Cheryl 所說，我們預計任何最近與關稅相關的公告都不會對我們的 2025 年計劃或財務業績產生重大影響。

I'm confident in our team's ability to execute on our financial and operating plans and cost management strategies. This includes delivering cost-effective financing while maintaining our balance sheet strength and credit profile.

我相信我們的團隊有能力執行我們的財務和營運計劃以及成本管理策略。這包括提供具有成本效益的融資，同時保持我們的資產負債表實力和信用狀況。

As we announced in late February, we completed a successful long-term debt issuance of $800 million at a 5.25% coupon that attracted strong demand. The treasury team did a great job of timely executing part of our financing objectives for the year amidst a challenging market environment. Our total debt-to-capital ratio as of the end of the quarter, net of $114 million of cash on hand was 58%, which was within our target of less than 60%.

正如我們在二月底宣布的那樣，我們成功發行了 8 億美元的長期債券，票面利率為 5.25%，吸引了強勁的需求。在充滿挑戰的市場環境下，財務團隊出色地及時完成了今年的部分融資目標。截至本季末，我們的總負債資本比率（扣除 1.14 億美元現金）為 58%，符合我們低於 60% 的目標。

Also, as John mentioned, S&P affirmed our A rating in April, which followed Moody's affirmation of our Baa1 investment credit rating in January with a stable outlook from both. Both agencies note advantages of our scale, our low-risk business profile, our strong regulatory and operational diversity across 14 states and our steady financial performance in their analysis. They also noted our expected sustained FFO to debt ratios well within the current rating thresholds. We are confident our business and financial profile, including FFO to debt, will continue to support either our current or higher investment-grade credit ratings.

此外，正如約翰所提到的，標準普爾在 4 月確認了我們的 A 級評級，而穆迪在 1 月確認了我們的 Baa1 投資信用評級，且兩者的展望均為穩定。兩家機構在分析中都注意到了我們的規模優勢、低風險的業務狀況、覆蓋 14 個州的強大監管和營運多樣性以及穩定的財務表現。他們還指出，我們預期的持續 FFO 與債務比率遠低於目前的評級門檻。我們相信，我們的業務和財務狀況（包括 FFO 與債務比率）將繼續支持我們當前或更高的投資等級信用評級。

With that, I'll turn it over to Cheryl to talk more about our capital program, our recent acquisition activity and a look at the state of infrastructure in the US. Cheryl?

接下來，我將讓 Cheryl 進一步介紹我們的資本計劃、我們最近的收購活動以及美國基礎設施的狀況。謝麗爾？

Thanks, David, and good morning, everyone. On slide 14, our capital program is off to a good start this year, investing $518 million in the first quarter. Our state and corporate leaders and their teams did a great job working through a particularly harsh winter across many of our states. This result keeps us on pace to hit our goal of approximately $3.3 billion of capital investment in 2025. We continue to expect these capital investments in infrastructure and in acquisitions will grow regulated rate base at a long-term rate of 8% to 9%.

謝謝，大衛，大家早安。在第 14 張投影片上，我們的資本計畫今年開局良好，第一季投資了 5.18 億美元。我們的州和企業領導以及他們的團隊在許多州度過了特別嚴酷的冬天，做出了出色的工作。這一結果使我們預計將實現 2025 年約 33 億美元資本投資的目標。我們繼續預計，這些對基礎設施和收購的資本投資將使管制利率基數長期成長 8% 至 9%。

As our capital investments related to PFAS remediation and lead service line replacement begin to ramp up, we've been asked by investors if the amount or timing of our investments will change. Our answer is still the same. We haven't changed our plans. EPA's rules around PFAS and lead and copper are final regulations. Some of our states also have existing regulations for PFAS and lead and copper. So while we'll continue to monitor for any potential changes in this realm. For now, we're moving forward.

隨著我們與 PFAS 修復和鉛服務管線更換相關的資本投資開始增加，投資者詢問我們投資金額或時間是否會改變。我們的答案依然是一樣的。我們沒有改變計劃。EPA 有關 PFAS 以及鉛和銅的規定是最終法規。我們的一些州也制定了針對 PFAS 以及鉛和銅的法規。因此，我們將繼續監測該領域的任何潛在變化。目前，我們正在向前邁進。

As I'll note a bit later in my comments, if the capital spend needed to address PFAS and/or lead and copper goes down, we would redeploy it to other important system needs such as pipe replacement. This quarter, we also thought it would be helpful to share a few comments about the potential impact of tariffs on our capital and operating expenses.

正如我稍後在評論中提到的那樣，如果解決 PFAS 和/或鉛和銅所需的資本支出下降，我們會將其重新部署到其他重要的系統需求上，例如管道更換。本季度，我們也認為分享一些有關關稅對我們的資本和營運費用的潛在影響的評論會有所幫助。

Our teams analyzed the potential cost increases that could come from tariffs on various raw materials or finished goods that we purchased to serve our customers. The good news, as David alluded to, is that our supply chain is predominantly sourced domestically and therefore, our exposure is very limited on things like fleet purchases, pumps, and some construction-related materials. Of course, we'll work to mitigate even that small exposure through our supply chain team and our purchasing power.

我們的團隊分析了我們為服務客戶而購買的各種原材料或成品的關稅可能帶來的潛在成本增加。正如大衛所提到的，好消息是我們的供應鏈主要來自國內，因此，我們在車隊採購、泵浦和一些建築相關材料等方面的接觸非常有限。當然，我們會透過我們的供應鏈團隊和購買力來努力減輕哪怕是很小的影響。

Related to operating costs, we don't expect any significant tariff-related impacts as most of our key expenses, such as labor, power, and chemicals are primarily sourced domestically. So again, even with the uncertainty around tariffs amidst other uncertainties, I believe, the high degree (technical difficulty) the market has seen how resilient American Water is. I will say it again, I 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.

關於營運成本，我們預計不會受到任何重大的關稅相關影響，因為我們大部分的主要支出（例如勞動力、電力和化學品）主要來自國內。因此，即使關稅等因素存在不確定性，我相信市場已經看到了美國水務公司的高度韌性（技術難度）。我再說一遍，我相信我們的資本投資計劃的高度透明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佔據獨特的地位，並且是我們投資理論的基礎。

Turning to slide 15. We continue to be well positioned for growth through acquisitions across many states with about 37,000 customer connections under agreement. I want to highlight three states, in particular, today as we think about our acquisition outlook.

翻到第 15 張投影片。我們透過在許多州進行的收購繼續保持良好的成長勢頭，目前已與約 37,000 個客戶簽訂了協議。今天，當我們思考收購前景時，我想特別強調三個州。

First, in Pennsylvania, already this year, we've received multiple unanimous approvals from the commission to acquire water and wastewater systems. We remain confident in our Pennsylvania acquisition pipeline, and we are continuing to invest in regulated acquisition opportunities in Pennsylvania, driven by the need for system consolidation and upgrading.

首先，在賓州，今年我們已經多次獲得委員會的一致批准，批准購買供水和廢水處理系統。我們對賓州的收購管道充滿信心，我們將繼續投資賓州受監管的收購機會，以滿足系統整合和升級的需求。

A great example of this is the East Dunkard Water system, which we just closed this week. That system was out of EPA compliance since 2014 and the residents in that community could not trust that the water coming out of their taps was safe to drink. The system was placed into a receivership under Pennsylvania American Water last year and our team has done a phenomenal job in rectifying approximately 75 violations from the state DEP. In Pennsylvania, as in all our states, American Water will continue to be the solution provider to communities who deserve high-quality water and wastewater service.

一個很好的例子就是我們本週剛關閉的東鄧卡德供水系統。該系統自 2014 年起就不符合 EPA 規定，該社區的居民無法相信從水龍頭流出的水是否可以安全飲用。該系統去年被賓州美國水務公司接管，我們的團隊在糾正州環境保護署的約 75 項違規行為方面做得非常出色。在賓州，就像在我們所有的州一樣，美國水務公司將繼續為需要高品質供水和廢水服務的社區提供解決方案。

Next, you can see that West Virginia has nearly 15,000 customer connections under agreement. Our business development team there is doing an excellent job in identifying consolidation opportunities and converting them to signed asset purchase agreements.

接下來，您可以看到西維吉尼亞州有近 15,000 個客戶連線處於協議之下。我們在那裡的業務開發團隊在發現合併機會並將其轉化為簽署的資產購買協議方面做得非常出色。

And finally, in New Jersey, we have a signed purchase agreement for the South Orange water system, which passed a voted referendum last fall. That system is in need of significant follow-up -- follow-on capital over the next decade, which, in particular, includes a great deal of lead service line replacements.

最後，在新澤西州，我們簽署了南奧蘭治供水系統的購買協議，該協議於去年秋天通過了全民公投。該系統需要大量的後續工作——未來十年的後續資本，特別是包括大量的鉛服務線更換。

To close on slide 16, the American Society of Civil Engineer's latest report card for America's infrastructure issued every four years since 2001, recently gave the nation's drinking water systems, a C- grade and wastewater systems a D+ grade, both of which are unchanged from the 2021 report card.

最後，在第 16 張投影片中，美國土木工程師學會自 2001 年以來每四年發布一次的最新美國基礎設施成績單最近給美國的飲用水系統評為 C 級，廢水系統評為 D+ 級，這兩個等級與 2021 年的成績單相比沒有變化。

EPA estimates that our country's water infrastructure needs total $625 billion of investments over the next 20 years, and that estimate keeps going up, not down, each time they update their estimates. We believe even that estimate is way too low by a factor of two or three.

美國環保署估計，未來 20 年，我國的水利基礎建設總共需要 6,250 億美元的投資，而且每次更新估算時，這項估算值都會不斷上升，而不是下降。我們認為，即使這個估計也低了兩到三倍。

Aging infrastructure, extreme weather events, and costs associated with regulatory and environmental compliance continue to place increased strain on the nation's water systems. And this strain is generally felt most acutely by small- to medium-sized municipal systems that don't always have the capital or the expertise to address the issues at hand. The need for consolidation of the fragmented US water industry to help solve these problems is dire.

老化的基礎設施、極端天氣事件以及與監管和環境合規相關的成本繼續給國家供水系統帶來越來越大的壓力。而這種壓力最明顯地體現在中小型市政系統，因為它們並不總是擁有解決當前問題的資金或專業知識。迫切需要整合分散的美國水務產業以解決這些問題。

Within the communities we already serve, we need to invest $36 billion to $37 billion over the next 10 years to help ensure safe, clean, reliable and affordable water and wastewater service. The solutions needed across the country will require the public and private sectors to work together. Together, we can safeguard public health, incentivize economic investment, and ultimately create American jobs.

在我們已經服務的社區中，我們需要在未來 10 年內投資 360 億至 370 億美元，以幫助確保安全、清潔、可靠和負擔得起的水和廢水服務。全國所需的解決方案需要公共和私營部門共同努力。我們可以共同維護公眾健康，激勵經濟投資，並最終創造美國就業機會。

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

接下來，我將把電話轉回給我們的接線生，開始問答環節並回答您可能提出的任何問題。

(Operator Instructions) Richard Sunderland, JPMorgan.

（操作員指示）摩根大通的理查德·桑德蘭。

Well, first, congrats again to John, Susan, and the whole team. Susan, I hope you enjoy your retirement.

首先，再次恭喜約翰、蘇珊和整個團隊。蘇珊，我希望你享受退休生活。

Thanks, Rich. I certainly appreciate it. I plan to.

謝謝，里奇。我當然很感激。我打算這麼做。

Starting off, any thoughts on pulling forward your 2026 equity issuance, given the recent share price strength or just financing thoughts overall on approach to equity?

首先，考慮到最近股價的強勢，或者只是對股權融資方式的整體想法，您是否考慮提前 2026 年的股權發行？

Rich, thanks for the question. We'll continue to evaluate the market and opportunities. But at this point, no plans to pull that forward. We're going to issue equity when we need the financing, and we'll leave it at that.

Rich，謝謝你的提問。我們將繼續評估市場和機會。但目前，還沒有推進這項計畫。當我們需要融資時，我們就會發行股票，然後我們就不再做這件事了。

And then circling back to some of the earlier M&A acquisition outlook commentary. How do you see the landscape standing under a scenario where recession puts pressure on muni finances? Do you think this could bolster some of the medium-term opportunities for you?

然後回顧一些早期的併購前景評論。在經濟衰退給市政融資帶來壓力的情況下，您如何看待情況？您認為這會為您帶來一些中期機會嗎？

Rich, it's John here. I'd say our prior narrative that we expect to see continuous flow of acquisition opportunities is still in place. It's possible that whether it's a recession or just less federal funding could drive some sellers or potential sellers to want to transact is an opportunity. And we think about that as part of a broader list of reasons why sellers could sell, whether it's environmental remediation, deferred capital investment spend, retiring operators, things like that, all point to continued activity.

里奇，我是約翰。我想說，我們之前預計會看到持續不斷的收購機會的說法仍然成立。無論是經濟衰退還是聯邦資金減少，都可能促使一些賣家或潛在賣家想要進行交易，這是一個機會。我們認為這是賣家出售的一系列更廣泛原因的一部分，無論是環境修復、遞延資本投資支出、營運商退休等原因，都表明活動將持續進行。

(Operator Instructions) Anthony Crowdell, Mizuho.

（操作員指示）瑞穗的安東尼·克勞德爾 (Anthony Crowdell)。

I echo Rich's comments, congrats all. Just if I could just quickly hit on one state on California. I think you mentioned you're going to file, I guess, a notice that you're planning to file a rate case. Curious if you could just talk about maybe percentage increase that you think you'll be asking in that case?

我同意 Rich 的評論，祝賀大家。如果我能快速找到加州這個州就好了。我想您提到您將要提交一份通知，表明您計劃提起費率訴訟。好奇的是，您是否可以談談在這種情況下您認為會要求的百分比增幅？

And then also, I just apologize, I forgot. It's the timing of when you guys would file the -- I think you do it separate so the cost of capital proceeding in California?

然後，我還要道歉，我忘了。這是你們提交申請的時間 - 我認為你們是分開進行的，那麼加州的資本成本是多少？

Anthony, this is David. So the California case that we're filing, there's a requirement to file a case every three years. We haven't disclosed the percentage increase and won't disclose that at this time. As far as the cost of capital proceeding, that's correct. There's a separate proceeding. We requested that be delayed until 2026. That was approved earlier this year. So the 10.2% we have in place will stay in place until -- through 2025.

安東尼，這是大衛。因此，我們提起的加州案件要求每三年提起一次訴訟。我們尚未揭露具體百分比增幅，目前也不會揭露。就資本運作成本而言，這是正確的。有一個單獨的程序。我們要求將其推遲至 2026 年。該法案已於今年稍早獲得批准。因此，我們現有的 10.2% 的稅率將維持到 2025 年。

So through '25, do you have to file it this year then to have a new cost of capital in '26? Or you begin the filing in '26 for a new cost of capital in '27?

那麼，到 25 年，您是否必須在今年提交，然後在 26 年獲得新的資本成本？還是您從 26 年開始申報 27 年的新資本成本？

Filing in '26 for a new cost of capital in January '27, Anthony.

安東尼 (Anthony) 於 26 年提交了 27 年 1 月的新資本成本申請。

Gregg Orrill, UBS.

瑞銀的格雷格·奧裡爾。

Thank you, Susan. I appreciate all your help.

謝謝你，蘇珊。我感謝您的所有幫助。

Thanks, Gregg.

謝謝，格雷格。

Just maybe a little different topic. Could you provide an update on the California desalination project and how that's going to help you there?

只是主題可能有點不同。您能否介紹一下加州海水淡化計畫的最新進展以及該計畫將如何幫助您？

Sure. Gregg, I think on desal, as you recall, we got our last major permit approval back in November of 2022, which was the California Coastal Commission. We've got a CPCN from the California PUC. We'll need to provide updates to the PUC. But as we had noted in our 10-K, we expect to break ground this year on desal.

當然。格雷格，我認為關於海水淡化，正如你記得的，我們最後一次獲得主要許可證批准是在 2022 年 11 月，由加州海岸委員會批准的。我們已從加州公共事業委員會 (PUC) 獲得 CPCN。我們需要向 PUC 提供更新資訊。但正如我們在 10-K 報告中指出的那樣，我們預計今年海水淡化項目將破土動工。

That's not a part of the rate case?

這不是利率案例的一部分嗎？

Correct. That's a separate docket.

正確的。那是一份單獨的案卷。

(Operator Instructions) Paul Zimbardo, Jefferies.

（操作員指示）Paul Zimbardo，Jefferies。

Congrats again, everyone, especially, Susan.

再次恭喜大家，特別是蘇珊。

Thanks, Paul.

謝謝，保羅。

Just one for me on the legislative progress that you talked about the three states. I think you mentioned potential for stronger earned returns and incremental capital. Is there any way that you could frame the opportunities there? I know some states are larger in your mix versus some others. Just any quantification will be helpful, if you can.

關於您談到的三個州的立法進展，我只想提一個。我認為您提到了獲得更高收益和增量資本的潛力。您有什麼方法可以抓住那裡的機會嗎？我知道，在你們的混合中，有些州的規模比其他州的規模更大。如果可以的話，任何量化都會有幫助。

Yeah. Hey, Paul, this is David. We haven't really framed up how much of an opportunity that the future test year in Missouri will provide to us nor have we for the other states. I mean, obviously, it will incrementally help our earned returns in each state.

是的。嘿，保羅，我是大衛。我們還沒有真正確定密蘇裡州未來的測試年將為我們提供多少機會，我們也沒有為其他州提供太多機會。我的意思是，顯然它將逐步幫助我們在每個州獲得回報。

This concludes our question-and-answer session. And the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

我們的問答環節到此結束。會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。