美國水務 (AWK) 2026 Q2 法說會逐字稿

Good morning, and welcome to American Water's second quarter 2026 earnings conference call. As a reminder, this call is being recorded and is also being webcast with 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（American Water）2026 年第二季財報電話會議。提醒各位，本次電話會議將被錄音，並透過公司投資人關係網站以網路直播方式進行，並搭配投影片簡報。音訊網路直播的存檔將在美國水務投資人關係網站上提供一年。

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

現在我想介紹今天電話會議的主持人：投資人關係副總裁 Aaron Musgrave。Musgrave 先生，請開始。

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'll 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.

各位早安，感謝各位參加今天的電話會議。在我們的預備發言結束後，我們將開放提問。我先說明一些「安全港」聲明。今天我們將發表前瞻性陳述，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、估計與假設所做出的預測。

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. 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 second quarter earnings release and Form 10-Q, each filed yesterday with the SEC.

然而，由於這些陳述涉及未來事件，因此受到眾多已知與未知的風險、不確定性及其他因素影響，可能導致實際結果與這些陳述所指示或暗示的結果出現重大差異。關於這些風險、不確定性與因素的更多資訊，以及對我們財務狀況更詳細的分析與其他重要資訊，已載於第二季財報新聞稿與 10-Q 表格，兩者皆已於昨日向美國證券交易委員會（SEC）提交。

This call will include a discussion of non-GAAP financial information. A reconciliation of our historical adjusted earnings per share to GAAP earnings per share and other disclosures related to our non-GAAP financial information can be found in the appendix of the slides for this call. And finally, all statements during this presentation related to earnings and earnings per share refer to diluted adjusted earnings and earnings per share.

本次電話會議將包含對非 GAAP 財務資訊的討論。我們歷史調整後每股盈餘與 GAAP 每股盈餘之間的調節表，以及與非 GAAP 財務資訊相關的其他揭露，可在本次電話會議投影片的附錄中找到。最後，本簡報中所有與盈餘及每股盈餘相關的陳述，均指稀釋後調整盈餘及稀釋後調整每股盈餘。

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

接下來，我把電話會議交給美國水務總裁兼執行長 John Griffith。

Thanks, Aaron, and good morning, everyone. Let's turn to slide 5, and I'll start by covering some highlights of the second quarter and first half of the year. As we announced yesterday, we delivered solid financial results in the second quarter and through the first half of 2026. Adjusted earnings were $1.61 per share for the second quarter, compared to $1.49 per share for the same period last year. In the first six months of 2026, adjusted earnings were $2.62 per share, compared to $2.51 per share in the same period of 2025.

謝謝你，Aaron，各位早安。請翻到投影片第 5 頁，我先說明第二季與上半年的一些重點。如同我們昨日宣布的，我們在第二季以及 2026 年上半年都交出了穩健的財務成果。第二季調整後每股盈餘為 1.61 美元，去年同期為 1.49 美元。2026 年前六個月調整後每股盈餘為 2.62 美元，2025 年同期為 2.51 美元。

With this strength across the business, combined with our expectations for the rest of the year, we continue to be on track to achieve our full year earnings guidance, which we've again affirmed along with our long-term targets. David will share more about our results and guidance a bit later. I also want to acknowledge the great work of our state and corporate regulatory teams as they continue to successfully execute our regulatory strategy with rate cases and merger proceedings, which I'll talk more about shortly.

在全公司表現強勁、並結合我們對今年剩餘期間的預期之下，我們仍按計畫達成全年盈餘指引；我們也再次確認該指引以及我們的長期目標。David 稍後會分享更多關於我們的業績與指引。我也要肯定我們州級與公司層級法規團隊的出色工作；他們持續透過費率案件與併購程序成功執行我們的法規策略，我稍後也會再多談一些。

We have completed three rate cases already in 2026 in West Virginia, Maryland, and Pennsylvania, all of which authorized recovery of nearly 100% of the capital investments we have made in each state. As we've discussed with investors many times over the years, we strategically choose to operate in a diverse set of regulatory environments that we believe have been and will remain supportive of water and wastewater utility investments and consolidation.

2026 年我們已在西維吉尼亞州、馬里蘭州與賓夕法尼亞州完成三件費率案件，均核准回收我們在各州所進行資本投資的近 100%。正如我們多年來多次與投資人討論的，我們策略性地選擇在多元的法規環境中營運；我們相信這些環境過去一直、未來也將持續支持自來水與污水公用事業的投資與整併。

American Water continues to receive healthy support at the state level for the work that we do. We, along with utility commissions, all share a strong desire to promote customer affordability, resilient and reliable services, and financially strong utilities. We look forward to continuing to provide common sense solutions for the benefit of customers and communities across our 14-state footprint. Moving on to some of our other key accomplishments so far in 2026, we have invested $1.8 billion in capital projects and acquisitions year-to-date. This reflects our focus on making investments to better serve our customers and to grow the business.

美國水務持續在州層級獲得對我們工作的良好支持。我們與公用事業委員會同樣都強烈希望促進客戶可負擔性、具韌性且可靠的服務，以及財務健全的公用事業公司。我們期待持續提供務實可行的解決方案，造福我們在 14 個州服務範圍內的客戶與社區。接著談談 2026 年迄今的其他關鍵成果：年初至今我們已在資本專案與收購上投資 18 億美元。這反映出我們專注於透過投資來更好地服務客戶並推動業務成長。

As we've said, growing to scale in our states greatly benefits our operating efficiency and long-term customer affordability. Speaking of customer growth, we were very pleased to close on the acquisition of systems from Nexus Water Group ahead of schedule on June 1. Our teams did a great job of achieving all eight requisite state approvals in a timely and constructive manner. We're also excited to continue our progress on the municipal acquisition front with approximately 57,000 customer connections under agreement as of June 30. Overall, we are well on our way to executing our capital plan for 2026 and achieving our target of 2% customer growth.

如同我們所說，在各州擴大規模能大幅提升營運效率並改善長期客戶可負擔性。談到客戶成長，我們很高興於 6 月 1 日提前完成向 Nexus Water Group 收購系統的交易。我們的團隊在及時且具建設性的過程中，出色地取得了全部八項必要的州級核准。我們也很期待在市政收購方面持續推進；截至 6 月 30 日，已有約 57,000 個客戶連接數在協議之下。整體而言，我們正穩步執行 2026 年資本計畫，並朝 2% 的客戶成長目標邁進。

These efforts align squarely with our mission to provide safe, clean, reliable, and affordable service to our customers. Turning to slide 6. I'm pleased to share that we've continued to achieve new milestones in the second quarter related to our proposed merger with Essential Utilities. You may recall, as part of the update we provided with Q1 earnings, we achieved our first state approval, Kentucky, in April. In May and June, we added Ohio and Virginia to the list of approvals received.

這些努力與我們的使命完全一致：為客戶提供安全、潔淨、可靠且可負擔的服務。請翻到投影片第 6 頁。我很高興分享，我們在第二季就與 Essential Utilities 擬議合併案持續達成新的里程碑。各位或許記得，在我們第一季財報更新中提到，我們於 4 月取得第一個州級核准——肯塔基州。在 5 月與 6 月，我們又新增俄亥俄州與維吉尼亞州的核准。

It's also worth noting that so far, we're hearing good support for the merger during public input hearings, including in Pennsylvania in April and May. In other states, the merger cases are proceeding as planned, including very good progress in Texas, where we've reached a settlement in principle. We remain very pleased with our integration planning to date and the constructive relationships that continue to develop between the American Water and Essential Utilities teams. Consistent with our messaging from the merger announcement last October, we expect the merger to close by the end of the first quarter of 2027.

同時也值得一提的是，截至目前，我們在公開意見聽證會上聽到對合併案的良好支持，包括賓夕法尼亞州在 4 月與 5 月的聽證會。在其他州，合併案件也按計畫推進；其中德州進展非常順利，我們已達成原則性和解。我們對目前的整合規劃進度仍感到非常滿意，美國水務與 Essential Utilities 團隊之間也持續建立具建設性的合作關係。依照我們自去年 10 月宣布合併以來一貫的訊息，我們預期合併將於 2027 年第一季末前完成。

With that, I'll hand it over to David to cover our financial and regulatory update in further detail. David?

接下來我把時間交給 David，請他更詳細說明我們的財務與法規更新。David？

Thanks, John, and good morning, everyone. Starting on slide 8, I'll provide further insights into our financial results for the quarter. Consolidated earnings were $1.61 per share compared to $1.49 per share in Q2 of 2025, representing just over an 8% growth rate. Revenues were higher due to authorized rate increases to recover investments across our states, while depreciation, financing costs, and general taxes increased as expected. Importantly, O&M costs were flat period-over-period, highlighting our continued focus on cost control while supporting operational and customer needs.

謝謝你，John，各位早安。從投影片第 8 頁開始，我將進一步說明本季的財務結果。合併後每股盈餘為 1.61 美元，較 2025 年第二季的 1.49 美元增加，成長率略高於 8%。營收增加主要來自各州已核准的費率調升，以回收投資；同時折舊、融資成本與一般稅負也如預期上升。重要的是，營運與維護（O&M）成本較前期持平，凸顯我們在支援營運與客戶需求的同時，仍持續專注於成本控管。

Slide 9 shows our financial results for the year so far. Consolidated earnings were $2.62 per share, compared to $2.51 per share in 2025, which is well on track with our plans for the year. The various drivers here are similar to the quarterly drivers and our outlook for these categories for the year remains unchanged, as you can see from the full year waterfall in the appendix. As a reminder, the majority of our EPS growth will occur in the second half of the year with revenue increases in key states expected to go into effect later in Q3.

投影片第 9 頁顯示我們今年迄今的財務結果。合併後每股盈餘為 2.62 美元，較 2025 年的 2.51 美元增加，與我們今年的計畫進度非常一致。此處的各項驅動因素與季度層面的驅動因素相似，而我們對這些類別在全年展望仍維持不變；如各位在附錄中的全年瀑布圖所見。提醒各位，我們每股盈餘成長的大部分將發生在下半年，因為預期關鍵州的營收調升將於第三季稍晚生效。

Slide 10 provides a look at our balance sheet and liquidity profile. Our total debt-to-capital ratio as of June 30 was 58%. On May 20, we successfully completed a long-term debt issuance of $500 million at 4.625% that attracted strong demand. In June, we settled 3.4 million shares of our approximately 8 million share equity forwards for a net proceeds of $476 million. Our financing plan for 2026 assumes we'll settle the remaining equity forwards in Q4.

第10張投影片提供我們資產負債表與流動性概況的觀察。截至6月30日，我們的總負債對資本比率為58%。5月20日，我們成功完成5億美元、票面利率4.625%的長期債務發行，需求強勁。6月，我們就約800萬股的股權遠期合約中，交割了340萬股，淨募得款項4.76億美元。我們2026年的融資計畫假設將於第四季結算剩餘的股權遠期合約。

Slide 11 covers the latest regulatory activity in our states. In Pennsylvania, we received a final order in the case that approved a $75 million annualized increase in water and wastewater revenues, compared to the filing that had requested $160 million increase. The order also approved a return on equity of 9.55% and an equity component of 54.2%. As John mentioned, we believe this was a constructive outcome, and we will implement new rates on August 13. On active cases, you can see we have general rate cases in progress in six jurisdictions. To highlight a few of those, in June, we entered into a black box settlement with staff and several intervenors in Virginia, as well as a partial settlement with the Public Advocates Office in California.

第11張投影片涵蓋我們各州最新的監管動態。在賓夕法尼亞州，我們在該案中收到最終命令，核准水務與污水處理收入年化增加7,500萬美元，相較於申請時所要求的增加1.6億美元。該命令亦核准股東權益報酬率（ROE）為9.55%，以及股權比重為54.2%。如John所提，我們認為這是具建設性的結果，並將於8月13日實施新費率。就進行中的案件而言，你們可以看到我們在六個司法管轄區有一般費率案件正在推進。舉其中幾項，在6月，我們在維吉尼亞州與監管人員及數位介入方達成黑箱和解，並在加州與公共倡議者辦公室達成部分和解。

In New Jersey, we -- as outlined in the procedural schedule, the company is in confidential settlement discussions with the parties to the proceedings, and we hope to be able to announce a resolution soon. In Illinois, our case is progressing as expected, and the next milestones in the case will be evidentiary hearings in August, followed by briefings from all parties in September and then a proposed order due in October.

在新澤西州，正如程序時程所述，公司正與程序各方進行保密和解協商，我們希望很快能宣布解決方案。在伊利諾伊州，我們的案件如預期推進，下一個里程碑將是8月的證據聽證會，接著是9月各方提交書狀，然後10月將提出擬議命令。

On May 15, we filed a general rate case in Kentucky, reflecting $108 million in system investments covering January 2027 through December 2027. We are seeking $18 million of additional annual revenue, and we expect proposed rates to go into effect on an interim basis in December of 2026. Intervenor testimony is set for August and rebuttal testimony in September.

5月15日，我們在肯塔基州提出一般費率案件申請，反映1.08億美元的系統投資，涵蓋2027年1月至2027年12月。我們尋求每年額外增加1,800萬美元收入，並預期擬議費率將於2026年12月以臨時方式生效。介入方證詞預定於8月提出，反駁證詞於9月提出。

And lastly, on July 1, we filed a general rate case in Missouri, reflecting $1.6 billion in system investments, covering the period from June 2025 through May 2028. We are seeking $179 million of additional annual revenue, and we expect proposed rates to go into effect in June 2027. Importantly, with this case, this is the first case using the fully forecasted future test year legislation that was passed last year. Turning to Slide 12. As John mentioned yesterday, we affirmed our 2026 adjusted EPS guidance range of $6.02 to $6.12 per share.

最後，7月1日，我們在密蘇里州提出一般費率案件申請，反映16億美元的系統投資，涵蓋2025年6月至2028年5月期間。我們尋求每年額外增加1.79億美元收入，並預期擬議費率將於2027年6月生效。重要的是，這起案件是首宗採用去年通過之「完全預測的未來測試年度」立法的案件。接著看第12張投影片。如John昨天所提，我們重申2026年調整後每股盈餘（EPS）指引區間為每股6.02至6.12美元。

This represents our expectation of, again, delivering 8% EPS growth in 2026, while continuing to provide high-quality, affordable service to our customers. We also continue to expect to achieve consistent EPS and dividend growth well within the 7% to 9% range through 2030 and beyond.

這反映我們對於在2026年再次實現8% EPS成長的預期，同時持續為客戶提供高品質且可負擔的服務。我們也仍預期在2030年及之後，持續實現穩健的EPS與股利成長，且成長幅度將穩穩落在7%至9%的區間內。

With that, I'll turn it over to Cheryl to talk more about our capital program and our recent acquisition activity.

接下來，我把時間交給Cheryl，請她進一步說明我們的資本計畫以及近期的併購活動。

Thanks, David, and good morning, everyone. Starting on slide 14, we successfully invested in many needed capital projects across our footprint in the first half of 2026. We've deployed $1.8 billion this year to renew our infrastructure, improve resiliency and address water quality challenges, as well as add new systems, including those acquired from Nexus. These investments are crucial for us to deliver on our core mission of consistently providing clean and reliable water and wastewater services, and we remain vigilant about utilizing our scale and expertise to control costs and keep bills affordable for our customers. We are hyper-focused on staying balanced between affordability and making necessary investments in our systems.

謝謝你，David，各位早安。從第14張投影片開始，2026年上半年我們在服務版圖內成功投入多項迫切需要的資本專案。今年我們已投入18億美元，用於更新基礎設施、提升韌性並因應水質挑戰，同時也新增系統，包括自Nexus收購而來的系統。這些投資對我們履行核心使命至關重要，也就是持續提供乾淨且可靠的供水與污水處理服務；我們也持續警覺，運用規模與專業來控管成本，讓客戶帳單維持可負擔。我們高度聚焦於在可負擔性與系統必要投資之間維持平衡。

We remain confident that American Water's average monthly residential water bills will stay at or below 1% of median household income for many years to come. Concluding on slide 15, we continue to be well positioned for growth through acquisitions across many states as our track record of signing and closing deals continues in 2026.

我們仍有信心，美國水務（American Water）平均每月住宅用水帳單在未來多年將維持在家庭收入中位數的1%或以下。在第15張投影片作結，我們仍然具備良好的成長定位，可在多個州透過併購擴張；我們在2026年持續簽約並完成交易的紀錄也延續至今。

We were excited to begin serving the customers of the acquired Nexus Water systems in the beginning of June, which was a few months ahead of our initial estimated time line. We look forward to leveraging our scale and size to deliver safe, clean, reliable and affordable water and wastewater services to the 47,000 new customer connections and to welcoming the 70 local employees who already call these communities homes.

我們很高興在6月初開始為所收購的Nexus Water系統客戶提供服務，時間比我們最初估計的時程提前了幾個月。我們期待運用我們的規模與體量，為新增的47,000個客戶接管戶提供安全、乾淨、可靠且可負擔的供水與污水處理服務，並歡迎已在這些社區安居的70位在地員工加入。

Zooming out, as of June 30, we had approximately 57,000 customer connections under agreement across six states totaling $236 million. There are many systems across our fragmented industry that have underinvested in the necessary capital to operate their systems, and we believe we can be a solutions provider for these communities.

從更宏觀的角度看，截至6月30日，我們在六個州已有約57,000個客戶接管戶處於協議之下，總金額為2.36億美元。在我們這個高度分散的產業中，有許多系統在維持營運所需的資本投入上長期不足；我們相信我們能為這些社區提供解決方案。

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，我把時間交回給主持人，開始問答並回答各位可能有的問題。

(Operator Instructions)

(主持人指示)

Paul Zimbardo, Jefferies.

Paul Zimbardo，Jefferies。

I promise no Pennsylvania questions for a change. Starting in Missouri, just with that forecast year, is there any way to quantify what the benefits of that kind of change would be? Or said differently, what the rate increase would have been versus that $179 million, if it was more of a historical filing?

我保證這次不問賓夕法尼亞的問題。先從密蘇里州開始，關於那個預測年度，有沒有辦法量化這類變更帶來的好處？或者換句話說，如果是比較偏歷史基礎的申報，費率調升幅度相較於這1.79億美元會是多少？

Paul, this is David. We have not quantified it. I mean, in practical purposes, I think one way you can do it is, if can you go back and look at our prior cases and what that filed increase would be. I mean that's not a complete apples-to-apples, but that could give you an idea.

Paul，我是David。我們尚未量化。我的意思是，從實務上來說，一種做法是回頭看我們先前的案件以及當時申報的調升金額。當然那不是完全可比（不是完全的蘋果對蘋果），但可以讓你有個概念。

Okay. Got it. It looked like a decent pickup potentially. So I was just curious there. And the other was Indiana, kind of two parts. I know there's kind of an affordability process in the state. It seems like it's not focused on water, but curious to your thoughts there. And also, I know there was some legislation passed, which seemed like it could give you a little bit incremental recovery on some chemical costs and others. Just curious overall Indiana affordability and the legislation, if you could.

好的。了解。看起來可能是個不錯的提升。所以我只是好奇。另外一個是印第安納州，分兩部分。我知道該州有一個可負擔性流程。看起來它不是針對水務，但想聽聽你們的看法。另外，我也知道有一些法案通過了，似乎能讓你們在某些化學品成本等項目上多一些增量回收。想請你們整體談談印第安納州的可負擔性以及該立法。

Yeah. Paul, I'd say we still feel good about Indiana from everything we're seeing in the state. It's focused on the electric affordability story there. Our rates are very affordable in Indiana and continue to be in our forecast to be there. So we feel good. As far as the legislation, yes, it's -- I mean, it's beneficial to us. I mean, it's not overly material from an American Water standpoint, but it's certainly -- little wins like that help.

是的。Paul，我會說，從我們在該州看到的一切來看，我們對印第安納州仍然感覺良好。那個議題主要聚焦在電力的可負擔性。我們在印第安納州的費率非常可負擔，而且在我們的預測中也會持續如此。所以我們感覺不錯。至於立法，是的——我的意思是，這對我們是有利的。從American Water的角度來看，它不是非常重大的影響，但確實——這種小小的勝利也有幫助。

Shar Pourreza, Wells Fargo.

Shar Pourreza，富國銀行。

Actually, it's Andrew Kadavy on for Shar. Has the Pennsylvania PUC commentary on the frequency of your rate cases changed your regulatory strategy in the state? Or do you see the 25 basis points of ROE for less regulatory lag as an acceptable trade-off?

其實是 Andrew Kadavy 代替 Shar 發言。賓夕法尼亞州公用事業委員會（PUC）對你們費率案件頻率的評論，是否改變了你們在該州的監管策略？或者你們是否認為，以較少的監管滯後換取 25 個基點的 ROE 是可接受的取捨？

Thanks for the question, Andrew. With regards to our strategy in Pennsylvania, our real focus and what underpins our rate cases in the state is the capital investment that we make. They're really investment-driven rate cases. As we look to recover, we can continue to do that under general rate cases. Another area that we're exploring is a broadening of our DSIC mechanism, which could be useful in a couple of ways, giving us interim recovery in between rate cases, which also has the benefit of smoothing in increases over time, which is helpful from an affordability perspective.

謝謝你的問題，Andrew。就我們在賓州的策略而言，我們真正的重點、也是支撐我們在該州提出費率案件的基礎，是我們所進行的資本投資。這些確實是由投資驅動的費率案件。當我們尋求回收時，我們可以在一般費率案件下持續這麼做。我們也在探索的另一個領域，是擴大我們的 DSIC 機制，這在幾個方面可能有用：讓我們在兩次費率案件之間取得中期回收，同時也有助於隨時間平滑調漲幅度，從可負擔性的角度來看是有幫助的。

I'd say water in the state as it relates to mechanisms is a little bit behind electric. In other states, we've had the opportunity to update the mechanism. And certainly, from our perspective in PA, if we can get some traction in being able to do that, that could be helpful from a cadence perspective. But at the end of the day, for us, we need to continue to -- our obligation in PA as in all of our states is to provide good service that requires capital. That's what drives the rate cases. And so we'll look for the most constructive form of recovery.

我會說，就機制而言，該州的自來水業務相較於電力稍微落後一些。在其他州，我們有機會更新該機制。當然，從我們在賓州（PA）的角度來看，如果我們能在推動這件事上取得一些進展，從節奏（cadence）的角度可能會有所幫助。但歸根結底，對我們而言，我們在賓州以及所有州的義務，是提供良好服務，而這需要資本。這就是推動費率案件的因素。因此，我們會尋求最具建設性的回收方式。

Makes sense. And then staying in Pennsylvania, has the affordability noise and Shapiro's intervention in the Peoples Gas case, does that have any potential impact maybe on the approval of the Essential merger? How should we think about that?

了解。那麼仍在賓州，關於可負擔性的雜音以及 Shapiro 對 Peoples Gas 案的介入，是否可能對 Essential 併購案的核准造成任何影響？我們應該如何看待這件事？

Well, approval for the merger is really just under a standard in the state. Each state has their own standard. In the case of Pennsylvania, it is substantial affirmative public benefit that can come in a variety of ways. Certainly, affordability is a theme across the state and other states. But our job with respect to the merger is to be able to demonstrate substantial affirmative public benefit, which we think that we've done in our testimony. So we're in settlement discussions there, and so we'll continue to push there.

嗯，併購案的核准在該州基本上是依照一個標準來審查。每個州都有各自的標準。以賓州為例，標準是「實質且明確的公共利益」（substantial affirmative public benefit），而這可以透過多種方式體現。當然，可負擔性是該州以及其他州共同的主題。但就併購而言，我們的工作是能夠證明存在實質且明確的公共利益；我們認為我們已在證詞中做到這點。因此我們正在進行和解協商，接下來會持續推進。

(Operator Instructions)

（接線員指示）

Angie Storozynski, Seaport.

Angie Storozynski，Seaport。

I was about to ask about the DSIC structure in Pennsylvania. So thank you for your comments. So could you maybe tell us what percentage of your CapEx currently qualifies for recovery under this rider? And what would it take to actually increase how much of the spending is recoverable?

我正要問賓州的 DSIC 架構。所以謝謝你們的說明。那你們能否告訴我們，目前你們的資本支出（CapEx）中，有多少比例符合透過這個附加費（rider）回收的資格？而要如何才能實際提高可回收的支出比例？

Angie, thanks for that question. It's -- currently, it's about 40%, give or take, depending on the year, but you can roughly think 40% of our capital in PA falls under the DSIC mechanism.

Angie，謝謝你的問題。目前大約是 40% 左右，視年度而定會有些差異，但你大致可以理解為我們在賓州的資本中約有 40% 落在 DSIC 機制之下。

And would you need some sort of a legislation to basically expand the CapEx that qualifies?

那你們是否需要某種立法，才能擴大符合資格的資本支出範圍？

Yeah. Under the current legislation that allows DSIC, we would need to amend that to include additional capital to fall under that mechanism.

是的。依照目前允許 DSIC 的現行法規，我們需要修法，才能把額外的資本納入該機制之下。

And Angie, John here. Just to follow on David's response. I think there's a cap element to the DSIC and then there's an eligibility in terms of assets that's available. And so David correctly said legislation is required for a wholesale change. There may be work that can be done in a regulatory pathway around the edges that could be helpful.

Angie，我是 John。補充一下 David 的回覆。我認為 DSIC 一方面有上限（cap）的要素，另一方面也有就可納入資產類別的資格規定。所以 David 說得沒錯，若要全面性的變更需要立法。但在監管途徑上，或許也能在邊際範圍做一些工作，可能會有所幫助。

When you think -- so David's 40% answer, I think the answer to that question from an electric perspective, is somewhere in the neighborhood of 90%. And that's really when we look at what's eligible for us, think in terms of underground piping. And that's where water, when you think about treatment, think about PFAS, storage tanks, things like that, the more we can broaden the eligibility, then that would be helpful.

當你思考——就 David 提到的 40% 這個答案，我認為若從電力的角度來回答，同樣的問題大概是在 90% 左右。而那主要是因為我們看可納入資格的項目時，會想到地下管線。而水務方面，當你想到處理設施、想到 PFAS、儲槽等這些項目時，我們越能擴大可納入資格的範圍，就越有幫助。

Okay. And then separately, you obviously still have the merger proceeding pending. It didn't seem to have impacted the distribution rate case, which, I mean, is definitely good news. But I'm just wondering, is there any chance that you could actually stay out of rate cases longer once you become a larger company? I mean, there has to be some economies of scale driven by the enlarged operations in Pennsylvania.

好的。另外，你們顯然仍有併購程序在進行中。看起來它並沒有影響配電費率案件，這當然是好消息。但我想問的是，一旦你們成為更大的公司，是否有可能更長時間不必提出費率案件？畢竟在賓州擴大營運規模後，應該會有一些規模經濟。

There certainly will be economies associated with the merger over time. I will say, in the near term, as we begin to go through our integration planning, there is a -- both companies have a -- and together as one company, we'll have a need really for the people, by and large, that we have today. Both companies individually and together still have the need to invest all of the capital that we're investing. And it's that capital investment that really drives timing of rate cases for capital recovery.

隨著時間推進，併購確實會帶來一些規模經濟。我會說，短期內，當我們開始進行整合規劃時，兩家公司各自——以及合併成一家公司後——基本上仍會需要我們今天所擁有的人力。兩家公司個別以及合併後，仍然需要投入我們目前正在投入的所有資本。而正是這些資本投資，真正驅動了為了資本回收而提出費率案件的時點。

Thank you. And ladies and gentlemen, as there are no more questions, this concludes our question-and-answer session. We thank you for attending today's conference call. You may now disconnect your lines. Take care.

謝謝。各位女士先生，由於沒有更多問題，我們的問答環節到此結束。感謝各位參加今天的電話會議。您現在可以掛斷電話。保重。