American States Water Co (AWR) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the American States Water Company Conference Call discussing the company's third-quarter 2024 results. The call is being recorded. If you would like to listen to the replay of this call, it will begin this afternoon at 5:00 p.m. Eastern Time and run through Thursday, November 14, 2024, on the company's website www.aswater.com.

女士們先生們，謝謝你們的支持。歡迎參加美國各州自來水公司電話會議，討論該公司 2024 年第三季業績。通話正在錄音。如果您想收聽本次電話會議的重播，會議將於今天下午 5:00 開始。東部時間，持續至 2024 年 11 月 14 日星期四，在公司網站 www.aswater.com 上發布。

The slides that the company will be referring to are also available on the website. (Operator Instructions) This call will be limited to one hour. Presenting today from American States Water Company are Bob Sprowls, President and Chief Executive Officer; and Eva Tang, Senior Vice President of Finance and Chief Financial Officer.

該公司將引用的幻燈片也可以在網站上找到。（接線生說明）本次通話僅限一小時。今天出席會議的有美國各州水務公司總裁兼執行長 Bob Sprowls；以及財務高級副總裁兼財務長 Eva Tang。

As a reminder, certain matters discussed during this conference call may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are news or assurance of any outcomes, financial results, levels of activity, performance or achievements and are cautioned not to place undue reliance upon them.

謹此提醒，本次電話會議中討論的某些事項可能屬於 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。前瞻性陳述是任何結果、財務表現、活動水準、績效或成就的新聞或保證，請注意不要過度依賴它們。

Forward-looking statements are subject to estimates and assumptions and known and unknown risks uncertainties and other factors. Listeners should review the description of the company's risks and uncertainties that could affect the forward-looking statements in our most recent Form 10-K and Form 10-Q on file with the Securities and Exchange Commission. Statements made on this conference call speak only as of the date of this call and expect as required by law, the company does not undertake any obligation to publicly update or revise any forward-looking statement.

前瞻性陳述受到估計和假設以及已知和未知風險、不確定性和其他因素的影響。聽眾應仔細閱讀我們向美國證券交易委員會提交的最新表格 10-K 和表格 10-Q 中對公司風險和不確定性的描述，這些風險和不確定性可能會影響前瞻性陳述。本次電話會議上發表的聲明僅代表本次電話會議當日的情況，預計根據法律要求，該公司不承擔公開更新或修改任何前瞻性聲明的義務。

In addition, this conference call will include a discussion of certain measures that are not prepared in accordance with generally accepted accounting principles or GAAP in the United States and constitute non-GAAP financial measures under SEC rules. These non-GAAP financial measures are delivered or derived from consolidated financial information, but are not presented in our financial statements that are prepared in accordance with GAAP.

此外，本次電話會議也將討論某些未依照美國公認會計原則或 GAAP 制定、且構成 SEC 規則下的非 GAAP 財務措施的措施。這些非公認會計原則財務指標是根據合併財務資訊提供或得出的，但未在我們根據公認會計原則編制的財務報表中列出。

For more details, please refer to the press release. At this time, I will now turn the call over to Bob Sprowls, President and Chief Executive Officer of American States Water Company. Please go ahead.

如欲了解更多詳情，請參閱新聞稿。現在，我將把電話轉交給美國各州自來水公司總裁兼執行長 Bob Sprowls。請繼續。

Thank you, Dave. Welcome, everyone, and thank you for joining us today. I'll begin with some brief comments on the quarter. Eva will then discuss some financial details, and then I'll wrap it up with updates on regulatory activity, ASUS dividends, and then we'll take your questions.

謝謝你，戴夫。歡迎大家，感謝您今天加入我們。我將首先對本季度進行一些簡短的評論。然後伊娃將討論一些財務細節，然後我將總結監管活動、華碩股息的最新情況，然後我們將回答您的問題。

I'm pleased to report that we recorded earnings per share for the third quarter were $0.10 per share higher compared to the third quarter of last year. The increase was in March part due to third year rate increases in our water segment and gains on our investments to fund a retirement plan, partially offset by higher operating expenses, some of which are due to timing, higher interest cost and a delay in receiving a decision in the pending electric general rate case.

我很高興地報告，我們第三季的每股收益比去年第三季高出 0.10 美元。3月份的成長部分是由於我們的水務部門第三年的利率上漲以及我們為退休計畫提供資金的投資收益，部分被較高的營運費用所抵消，其中一些是由於時機、較高的利息成本和延遲收到對懸而未決的電力一般費率案件的決定。

Eva will discuss the results in more detail. Our regulated utilities have invested $172.5 million in company-funded infrastructure year-to-date, and we'll be investing a record high $210 million to $230 million on capital expenditures this year. As we discussed last quarter, Golden State Water and the Public Advocates Office of the California Public Utilities Commission, or Cal Advocates for short, reached a settlement agreement in connection with Golden State Water's general rate case that will set new water rates for the years 2025 through 2027.

伊娃將更詳細地討論結果。今年迄今為止，我們受監管的公用事業公司已在該公司資助的基礎設施上投資了 1.725 億美元，今年我們將在資本支出上投資創紀錄的 2.1 億至 2.3 億美元。正如我們上季度討論的那樣，金州水務公司和加州公用事業委員會公共倡導辦公室（簡稱加州倡導者辦公室）就金州水務公司的一般費率案件達成了和解協議，該協議將為2025 年制定新的水費到 2027 年。

Parties filed a joint motion in July to adopt the settlement agreement with the California Public Utilities Commission or CPUC. Among other items, the settlement authorizes Golden State Water to invest $573.1 million and capital infrastructure over the three-year capital cycle.

雙方於 7 月提交了一份聯合動議，要求通過與加州公用事業委員會 (CPUC) 的和解協議。除其他事項外，和解協議授權金州水務公司在三年資本週期內投資 5.731 億美元和資本基礎設施。

Additionally, last week, Bear Valley Electric, Cal Advocates and the other intervener in the proceeding filed a joint motion to adopt a settlement agreement between the parties resolving all issues in connection with the electric general rate case and will set new electric rates for 2023 through 2026 with new rates retroactive to January 1, 2023.

此外，上週，Bear Valley Electric、Cal Advocates 和訴訟中的另一介入者提出了一項聯合動議，要求通過雙方之間的和解協議，解決與電力一般費率案件相關的所有問題，並將通過以下方式製定2023 年新的電費： 2026 年，新費率追溯至 2023 年 1 月 1 日。

Among other things, the settlement authorizes Bear Valley Electric to invest $75.6 million in capital infrastructure over 2023 through 2026, including $23.1 million that will be filed for revenue recovery through advice letters upon project completion.

除此之外，和解協議授權 Bear Valley Electric 在 2023 年至 2026 年期間投資 7,560 萬美元用於資本基礎設施，其中包括 2,310 萬美元，將在工程完成後透過建議函歸檔以收回收入。

The joint settlement, if approved, enable our water and electric utilities to continue investing in their assets to strengthen the systems and ensure safety and service reliability for our customers. I will discuss these settlements in more detail later in the call. For the year-to-date September, ASUS is $0.06 per share ahead of last year for the same period.

如果聯合和解獲得批准，我們的水務和電力公司將能夠繼續投資其資產，以加強系統並確保客戶的安全和服務可靠性。我將在稍後的電話會議中更詳細地討論這些和解方案。截至今年 9 月份，華碩每股股價比去年同期高出 0.06 美元。

You'll recall that ASUS contributed $0.50 per share to consolidated earnings for the full year 2023. We now project that ASUS will contribute $0.54 to $0.57 per share this year, higher than the $0.50 to $0.54 range we provided previously.

您可能還記得，華碩為 2023 年全年合併收益貢獻了每股 0.50 美元。我們現在預計華碩今年將出資每股 0.54 美元至 0.57 美元，高於我們之前提供的 0.50 美元至 0.54 美元的範圍。

ASUS continues to enter into US government awarded contract modifications for new construction projects. I'm very pleased to announce that ASUS has been awarded a record high $54 million in new capital upgrade construction projects during the nine months ended September 30, 2024.

華碩繼續簽訂美國政府授予的新建設項目合約修改合約。我很高興地宣布，在截至 2024 年 9 月 30 日的九個月內，華碩獲得了創紀錄的 5,400 萬美元新資本升級建設專案資金。

These newly awarded projects are expected to be completed during 2024 through 2027. With that, I'll turn the call over to Eva to discuss earnings and liquidity.

這些新授予的項目預計將在 2024 年至 2027 年期間完成。這樣，我會將電話轉給伊娃，討論收益和流動性。

Thank you, Bob, and hello, everyone. Let me start with our third quarter results. Consolidated earnings as recorded were $0.95 per share for the third quarter as compared to $0.85 per share for the third quarter of 2023. For our water utility, Golden State Water reported earnings were $0.84 per share as compared to $0.72 per share last year. The $0.12 per share increase was largely due to an increase in the third year water rate.

謝謝你，鮑勃，大家好。讓我從第三季的業績開始。第三季的合併收益為每股 0.95 美元，而 2023 年第三季的合併收益為每股 0.85 美元。對於我們的自來水公司，金州水務公司 (Golden State Water) 報告每股收益為 0.84 美元，而去年為每股 0.72 美元。每股上漲 0.12 美元主要是因為第三年水費上漲。

An overall increase in the authorized rate of return on rate base in 2024 gains generated from investment held for retirement plans and lower income taxes, partially offset by higher operating and interest expenses. Lastly, there was a decrease of earnings of approximately $0.01 per share due to the diluted effect from the issuance of equity under AWR's ad market offering program.

2024 年，退休計畫投資所產生的收益和較低的所得稅所產生的收益的授權回報率總體增加，但部分被較高的營運和利息支出所抵消。最後，由於 AWR 廣告市場發行計畫下發行股權的稀釋影響，每股收益減少約 0.01 美元。

Our electric segment's earnings were $0.02 per share for the quarter as compared to $0.04 per share for 2023, primarily resulting from not having new rate effect as we await a decision on the electric CRC that will set new rates for 2023 to 2026, while also experiencing continued increases in interest cost. When the decisions issued, new electric rates are expected to be retroactive to January 2023 and cumulative adjustments will be recorded at that time.

我們的電力部門本季的收益為每股0.02 美元，而2023 年為每股0.04 美元，這主要是由於我們正在等待電力CRC 的決定，該決定將為2023 年至2026 年設定新的費率，同時也經歷了新的費率影響，因此沒有產生新的費率影響。當決定發佈時，新的電費預計將追溯至2023年1月，並屆時記錄累計調整。

Earnings from US were consistent for the quarter when compared to 2023 with a decrease of $0.01 per share mainly due to the effect of rounding. Consolidated revenue for the third quarter increased by $10 million as compared to last year. Revenues for the water segment increased by $7.8 million, largely due to an increase in third year water rate and the overall increase in authorized rate of return on rate base in 2024.

與 2023 年相比，本季美國收益保持一致，每股下降 0.01 美元，主要是由於四捨五入的影響。第三季綜合營收比去年增加1000萬美元。水務部門的收入增加了 780 萬美元，主要是由於第三年水費上漲以及 2024 年授權回報率整體上漲。

Electric revenues remains consistent as we are waiting for a decision on the electric general rate case. While there was an increase in revenue from US of $2.2 million primarily due to higher management fee revenue resulting from a resolution of various economic price adjustments and the commencement of operations of water and wastewater systems at Joint Base Cape Cod in the Naval Station, Patuxent River.

由於我們正在等待電力總費率案件的決定，電力收入保持穩定。收入增加了 220 萬美元，主要是由於解決了各種經濟價格調整以及帕圖森特河海軍基地科德角聯合基地供水和廢水處理系統開始運營而導致管理費收入增加。

Turning to slide 10 and looking at total operating expenses other than supply cost. Consolidated expenses increased $5.3 million as compared to the third quarter of 2023. The increase was due to an increase in other operating expenses mainly related to the commencement of operations at the two new bases.

轉向投影片 10，查看除供應成本之外的總營運費用。與 2023 年第三季相比，合併費用增加了 530 萬美元。這一增長是由於主要與兩個新基地開始運營相關的其他運營費用增加所致。

Higher administrative and general expenses due to higher online service costs related to the pending water general rate case proceeding and other regulatory filings and the insurance costs and an increase in depreciation and property tax expenses both of which are impacted by the increased capital expenditures for our regulated utilities.

由於與未決的水費一般費率案件程序和其他監管備案相關的在線服務成本以及保險成本以及折舊和財產稅費用的增加，行政和一般費用增加，這兩者都受到我們受監管的資本支出增加的影響公用事業。

The increases were partially offset by lower maintenance expenses. Interest expense net of interest income increased by $1.9 million due to increases in average interest rate and overall borrowing levels during the quarter. Lastly, other income net of other expenses increased by $3.4 million, largely because of gains recorded on investments held to fund, one of the company's retirement plan in the third quarter compared to losses in the same period of last year.

維護費用的降低部分抵消了這一增長。由於本季平均利率和整體借款水準的上升，扣除利息收入後的利息支出增加了 190 萬美元。最後，扣除其他費用後的其他收入增加了 340 萬美元，主要是由於與去年同期的虧損相比，為基金（該公司第三季的退休計劃之一）持有的投資記錄了收益。

Slide 11 shows a EPS -- comparing reported EPS for the third quarter of 2014 against the same period last year. Consolidated year-to-date earnings as recorded were $2.42 per share as compared to $2.82 per share for the same period of 2023.

幻燈片 11 顯示了每股收益——將 2014 年第三季報告的每股收益與去年同期進行比較。年初至今的合併收益為每股 2.42 美元，而 2023 年同期為每股 2.82 美元。

Included in the results of the first nine months of last year were $0.38 per share related to the impact of retroactive rate from the finance decision in the water general rate case for the full year of 2022 and a reversal of $0.13 per share for revenue subject to refund originally recorded in 2022 as a result of the final cost of capital decision in June of 2023. Both items related to our water segment.

去年前 9 個月的業績中包括每股 0.38 美元，與 2022 年全年水費一般費率案例中財務決定的追溯費率的影響有關，以及每股 0.13 美元的收入逆轉由於2023 年6 月最終資本成本決定，退款最初記錄在2022 年。這兩項都與我們的水務部門有關。

Excluding the two items mentioned above from the year-to-date earnings -- 2023 earnings recorded an adjusted consolidated earnings for the nine months ended September 30, 2024, were $2.42 per share as compared to adjusted earnings of $2.31 per share for the same period in 2023, an increase of $0.11 per share.

從年初至今的收益中剔除上述兩項，截至 2024 年 9 月 30 日止九個月的 2023 年收益調整後合併收益為每股 2.42 美元，而同期調整後收益為每股 2.31 美元2023 年，每股增加0.11 美元。

Turning to liquidity. The cash provided by operating activities was $134.2 million for the nine months ended September 30, 2024, an as compared to $56.5 million for the same period of 2023. The increase in operating cash flow was primarily as a result of Golden State Water having implemented new rates in 2023 and 2024.

轉向流動性。截至2024年9月30日的九個月，經營活動提供的現金為1.342億美元，2023年同期為5,650萬美元。經營現金流的增加主要是由於金州水務於 2023 年和 2024 年實施了新費率。

The collection of surcharges to recover retroactive revenues from 2022 through July 23, and higher water consumption in 2024. The increase in cash flow from operating activities also resulted from differences in the timing of billing and cash receipts for construction work at military bases at US as well as the timing of vendor payments.

徵收附加費以收回2022年至7月23日的追溯收入，並在2024年提高用水量。經營活動現金流量的增加也歸因於美國軍事基地建築工程的帳單和現金收入時間以及供應商付款時間的差異。

For investing activities, as Bob mentioned earlier, our regulated utility invested $172.5 million on company-funded capital projects during the nine months ended September 30, 2024, and we project this to reach $210 million to $230 million for the full year of 2024.

對於投資活動，正如鮑伯之前所提到的，我們受監管的公用事業公司在截至2024 年9 月30 日的九個月內向公司資助的資本項目投資了1.725 億美元，我們預計到2024 年全年這一數字將達到2.1 億至2.3 億美元。

American State Waters at the market offering program to sell common shares remain ongoing at as these programs allow the company additional discretion to sell up to $200 million over a three-year period. During the nine months ended September 30, 2020, and rate proceeds of $59.3 million, net of issuance costs and legal costs incurred.

American State Waters 在市場上出售普通股的計劃仍在繼續，因為這些計劃允許該公司額外酌情在三年內出售高達 2 億美元。截至 2020 年 9 月 30 日的九個月內，扣除發行成本和法律費用後，利率收益為 5,930 萬美元。

American State Water currently maintain a credit rating of A stable with Standard and Poor's global ratings or S&P, while Golden State Water maintained an A+ stable rating with S&P and A2 stable rating with Moody's investor service. Each of these ratings has been affirmed during 2024. These are some of the highest credit ratings in the US investor-owned water utility industry.

美國州水務目前維持標準普爾全球評級或標準普爾A穩定信用評級，金州水務維持標準普爾A+穩定評級和穆迪投資者服務A2穩定評級。這些評級均已在 2024 年確認。這些是美國投資者擁有的水務業中最高的信用評級。

With that, I'll turn the call back to Bob.

這樣，我會將電話轉回給鮑伯。

Thank you, Eva. I will start with Golden State Water's settlement agreement with Cal Advocates on its general rate case. As I mentioned earlier, in July of this year, Golden State Water and Cal Advocates filed a joint motion to adopt a settlement agreement in connection with the general rate case that determines water rates for the years 2025 through 2027.

謝謝你，伊娃。我將從金州水務公司與加州倡導者協會就其一般費率案件達成的和解協議開始。正如我之前提到的，今年 7 月，Golden State Water 和 Cal Advocates 提交了一項聯合動議，要求就確定 2025 年至 2027 年水費的一般費率案件通過一項和解協議。

If approved, the proposed settlement resolves most of the issues related to the 2025 annual revenue requirement. The settlement authorizes Golden State Water to invest approximately $573.1 million in capital infrastructure over the three-year capital cycle. This amount has settled includes $17.7 million of advice letter capital investments to be filed for revenue recovery during the second and third year attrition increases when those projects are completed.

如果獲得批准，擬議的和解方案將解決與 2025 年年度收入要求相關的大部分問題。和解授權金州水務公司在三年資本週期內投資約 5.731 億美元用於資本基礎設施。這筆已解決的金額包括 1,770 萬美元的建議函資本投資，這些投資將在這些項目完成後的第二年和第三年的損耗增加期間用於收入回收。

In addition, the settlement agreement authorizes advice letter capital investments already under construction at the beginning of 2023 of $58.2 million to be filed for revenue recovery during the second and third year attrition increases when those projects are included. Excluding revenues for advice letter capital projects adopted operating revenues less water supply cost for 2025 were projected to increase by approximately $23 million when compared to 2024.

此外，和解協議還授權在 2023 年初已在建的 5,820 萬美元的建議函資本投資將在納入這些項目後的第二年和第三年損耗增加期間用於收入回收。不包括建議函資本項目所採用的收入減去供水成本，2025 年預計將比 2024 年增加約 2,300 萬美元。

In addition, there are potential additional revenue increases of approximately $20 million for each of the years 2026 and 2027 based on inflation factors without factoring in the revenues from those advice letter capital project. The two remaining unresolved 2025 revenue requirement issues relate to the sales forecast and supply mix.

此外，根據通貨膨脹因素，在不考慮這些建議書資本項目的收入的情況下，2026 年和 2027 年每年可能會增加約 2,000 萬美元的額外收入。剩下的兩個未解決的 2025 年收入要求問題涉及銷售預測和供應組合。

In addition, there were four regulatory mechanisms that Golden State Water requested and will be litigated. A full sales and revenue decoupling mechanism and full cost balancing account for water supply. The sales reconciliation mechanism supply mix adjustment mechanism and a request to modify the existing PFAS memorandum account to track carrying costs on capital investments needed to comply with the new PFAS regulation.

此外，金州水務還要求建立四種監管機制，並將提起訴訟。供水的全面銷售與收入脫鉤機制和全面成本平衡會計。銷售調節機制提供組合調整機制以及修改現有 PFAS 備忘帳戶的請求，以追蹤遵守新 PFAS 法規所需的資本投資的帳面成本。

We requested and have been granted an oral argument in front of the administrative law judge on the unresolved issues. A proposed decision in the law general rate case is scheduled to be issued by the end of 2024, but new rates to become effective January 1, 2025.

我們請求並已獲准在行政法法官面前就未解決的問題進行口頭辯論。一般費率案件的擬議裁決計劃於 2024 年底發布，但新費率將於 2025 年 1 月 1 日生效。

Last week, our electric utility subsidiary, Cal Advocates and the other intervener in the preceding filed a joint motion to adopt a settlement agreement between all parties in the general rate case that determines electric rates for the years 2023 through 2026. If approved, the proposed settlement agreement resolves all issues in connection with the general rate case.

上週，我們的電力子公司 Cal Advocates 和前述的另一介入者提交了一項聯合動議，要求在確定 2023 年至 2026 年電費的一般費率案件中各方之間達成和解協議。如果獲得批准，擬議的和解協議將解決與一般費率案件有關的所有問題。

(inaudible) settlement, adopts the revenue requirements for years 2023 through 2026 authorizes the investment of $75.6 million and capital infrastructure over the four-year rate cycle, including $23.1 million through advice letter capital investments that will include an allowance for funds used during construction when the projects are completed, adopts a cost of capital that increases the adopted return on equity to 10.0% from 9.6% and lowers the cost of debt to 5.51% and maintains the capital structure of 57% equity and 43% debt.

（聽不清楚）結算，透過2023 年至2026 年的收入要求，授權在四年費率週期內投資7,560 萬美元和資本基礎設施，其中包括透過建議函資本投資的2,310 萬美元，其中包括在建設期間所使用的資金補貼項目完成後，採用資本成本，將股本回報率從9.6%提高到10.0%，債務成本降低到5.51%，並維持57%股本和43%債務的資本結構。

And improved recovery of requested capital expenditures and incremental operating costs incurred prior to 2023 and in connection with its wildfire mitigation plans. These costs are not included in the current rate.

並提高了 2023 年之前發生的與其野火緩解計畫相關的所需資本支出和增量營運成本的回收率。這些費用不包含在當前費率中。

Excluding the additional revenues from the advice letter capital projects just discussed, under the terms of the settlement agreement, Bear Valley Electric adopted operating revenues less electric supply costs for 2023 are projected to increase by approximately $5.1 million as compared to the 2022 adopted and recorded operating revenues less electric supply costs.

排除剛討論的建議函資本項目的額外收入，根據和解協議的條款，熊谷電力採用的2023年營運收入減去供電成本預計將比2022年採用和記錄的營運收入增加約510萬美元。電力供應成本。

To cover among other things, the higher incremental operating costs settled in the revenue requirement related to Bear Valley Electric's wildfire mitigation plans that were previously not included in customer rates and not expensed because they were being tracked in memorandum accounts. In addition, the settlement provides increases in the adopted operating revenues of $2.2 million for each of the years 2024 and 2025 and by $3.3 million in 2026.

除其他事項外，較高的增量營運成本已納入與熊谷電力野火緩解計畫相關的收入要求中，該計畫以前未包含在客戶費率中，也未計入費用，因為它們是在備忘帳戶中跟蹤的。此外，和解協議還規定 2024 年和 2025 年每年的營業收入增加 220 萬美元，2026 年增加 330 萬美元。

The rate increases for 2024 through 2026 are not subject to an earnings test. Previously mentioned advice letter projects of $23.1 million, plus an allowance for funds used during construction are expected to generate additional annual operating revenues of approximately $3 million when the respective projects are completed, placed in service and filed for recovery in customer rates.

2024 年至 2026 年的升息不受收益測試的影響。前面提到的 2,310 萬美元的建議書項目，加上施工期間使用的資金補貼，預計當各個項目完成、投入使用並提交客戶費率回收時，將產生約 300 萬美元的額外年度營運收入。

The new rates once approved, will be retroactive to January 1, 2023. CPUC has extended the statutory deadline for processing this application to January 31, 2025, and Therefore, at this time, we don't expect the decision to be issued in 2024. If the decision is not issued in time to reflect the new rates in the 2024 year cumulative adjustments for 2023 and 2024 related to the full impact from the terms of the settlement agreement previously discussed will be recorded at the time a decision is finally issued. Assuming the settlement agreement is approved, we estimate the impact related to 2023 and 2024 to be a combined $0.05 to $0.07 per share.

新費率一旦獲得批准，將追溯至2023年1月1日。CPUC 已將處理此申請的法定截止日期延長至 2025 年 1 月 31 日，因此，目前我們預計不會在 2024 年發布決定。如果未及時發布決定以反映 2024 年的新費率，則與先前討論的和解協議條款的全部影響相關的 2023 年和 2024 年的累積調整將在最終發布決定時記錄。假設和解協議獲得批准，我們估計 2023 年和 2024 年相關的影響總計為每股 0.05 美元至 0.07 美元。

Turning our attention to slide 17. We present the growth in Golden State Water's adopted average water rate base from 2018 through 2024, which increased from $752.2 million in 2018 to $1.357.5 billion in 2024 at a compound annual growth rate of 10.3% for the 6-year period using 2018 as the base year for the calculation. Golden State Water anticipates a robust and sustained growth in its rate base over the next few years. Let's continue to ASUS. ASUS contributed earnings of $0.11 per share for the third quarter of 2024 as compared to $0.12 per share for the same period in 2023. The decrease was mainly due to the effects of rounding as earnings were consistent with the same period in 2023.

將我們的注意力轉向投影片 17。我們介紹了金州水務公司2018 年至2024 年採用的平均水費基數的增長情況，該水費基數從2018 年的7.522 億美元增至2024 年的13.575 億美元，以2018 年為基礎的6 年複合年增長率為10.3%。金州水務預計未來幾年其費率基數將強勁持續成長。我們繼續華碩。華碩 2024 年第三季的每股盈餘為 0.11 美元，而 2023 年同期為每股 0.12 美元。下降的主要原因是四捨五入的影響，因為收益與 2023 年同期一致。

For the year-to-date September, ASUS' earnings were $0.44 per share as compared to $0.38 per share for the same period in 2023. As previously mentioned, we now project ASUS will contribute $0.54 to $0.57 per share this year. We're also very pleased that ASUS has received a significant increase in new capital upgrade awards through September of 2024 to $54.0 million in total as compared to $25.2 million for the full year of 2023. In addition to continued work on the existing bases we serve, we remain confident that we can effectively compete for new military-based contract awards. With this in mind, as we look ahead to 2025, we project that ASUS will contribute $0.59 to $0.63 per share next year.

今年 9 月至今，華碩的每股收益為 0.44 美元，而 2023 年同期為每股 0.38 美元。如前所述，我們現在預計華碩今年將出資每股 0.54 美元至 0.57 美元。我們也非常高興的是，截至 2024 年 9 月，華碩獲得的新資本升級獎勵大幅增加，總額達到 5,400 萬美元，而 2023 年全年為 2,520 萬美元。除了繼續在我們服務的現有基地開展工作外，我們仍然有信心能夠有效地競爭新的軍事合約。考慮到這一點，展望 2025 年，我們預計華碩明年將出資每股 0.59 美元至 0.63 美元。

I'd like to turn our attention to dividends, which remains a compelling part of our investment story. Our quarterly dividend rate has grown at a compound annual growth rate or CAGR of 8.8% over the last five years and is on pace to achieve a 10-year CAGR of 8% in the calendar year dividend payment. These increases are consistent with our policy to achieve a compound annual growth rate in the dividend of more than 7% over the long term. I'd like to conclude our prepared remarks by thanking you for your interest in American States Water, and we'll now turn the call over to the operator for questions.

我想將我們的注意力轉向股息，這仍然是我們投資故事中引人注目的一部分。過去五年，我們的季度股息率以 8.8% 的複合年增長率增長，並且預計在日曆年股息支付中實現 8% 的 10 年複合增長率。這些成長符合我們的政策，即長期實現股息複合年增長率超過 7%。在結束我們準備好的演講時，我想感謝您對 American States Water 的興趣，現在我們將把電話轉給接線員詢問問題。

(Operator Instructions) Jonathan Reeder, Wells Fargo.

（操作員說明）Jonathan Reeder，富國銀行。

Hey, Bob and Eva, how are you all today?

嘿，鮑伯和伊娃，你們今天好嗎？

Okay.

好的。

Thank you, Jonathan. How about you?

謝謝你，喬納森。你呢？

Surprise, surprise. I literally just hopped on, so I apologize. I got a couple of questions. And if you address them in your prepared remarks, I do apologize for that. But I know year-to-date Bear Valley or the electric operations have contributed $0.07 of EPS versus $0.14 during the same period last year. If the proposed decision in the Bear Valley GRC would have been approved and in place at the start of 2024.

驚喜，驚喜。我真的只是跳上去，所以我道歉。我有幾個問題。如果您在準備好的發言中談到這些問題，我確實為此表示歉意。但我知道今年迄今為止，熊谷或電力業務貢獻了 0.07 美元的每股收益，而去年同期為 0.14 美元。如果熊谷集選區擬議的決定能夠在 2024 年初獲得批准並實施。

What would the year-to-date EPS have been? I'm trying to understand just what the EPS power would have looked like, obviously, excluding the retroactive portion related to 2023.

今年迄今的每股盈餘是多少？我試圖了解 EPS 功率會是什麼樣子，顯然，不包括與 2023 年相關的追溯部分。

Okay. So Jonathan, I don't know if you heard the $0.05 to $0.07 estimate for '23 and '24 together.

好的。喬納森，我不知道您是否聽說過 23 年和 24 年合計 0.05 至 0.07 美元的估價。

That would be the cumulative?

那是累計的嗎？

Yes, both years combined.

是的，這兩年加在一起。

Okay. So when you get the final order, you think the full-year impact of recording the retroactive would be that.

好的。因此，當您收到最終訂單時，您認為記錄追溯的全年影響就是這樣。

Yes. For --

是的。為了--

Three years, yeah. Some of the CapEx, of course, is an (inaudible) projects. So it's been moved out in the rate cycle a bit.

三年了，是啊。當然，有些資本支出是（聽不清楚）項目。所以它在利率週期中被移出了一點。

Okay. Okay. And then when like if you were going to be able to get that recorded in 2024 results, when do you need to get like a final order? Is it just before you report year-end earnings? Or is it by I think I heard you say you don't expect to get a decision until 2025.

好的。好的。然後，如果您想要在 2024 年的結果中記錄該結果，那麼您什麼時候需要獲得最終訂單？是在您報告年終收益之前嗎？或者我想我聽到你說你預計要到 2025 年才能做出決定。

But if it's in January or early February, will you be able to book it in 2024 than cumulative gain?

但如果是1月份或2月初的話，2024年能比累計收益訂到嗎？

Yes. So it depends what decision we get if it's fully. If it fully adopts the settlement, we have, I would say, more flexibility to book a proposed decision into 2024. Then if it's the commission of the ALJ's proposed decision is different from the settlement agreement makes it more difficult to book the proposed decision into 2024 financial results. Eva, do you want to.

是的。因此，如果完全的話，這取決於我們做出什麼決定。我想說，如果它完全採納和解協議，我們就有更大的靈活性將擬議的決定推遲到 2024 年。那麼，如果行政法官提議的決定與和解協議不同，那麼將提議的決定計入 2024 年財務業績就會變得更加困難。伊娃，你願意嗎？

Yes. If we have a final decision before the 10-K, then we'll be able to forget.

是的。如果我們在 10-K 比賽之前做出最終決定，那麼我們就可以忘記。

Yes. Takes a month -- at least a month between proposes and final. So (inaudible) but --

是的。需要一個月的時間——從提議到最終確定至少需要一個月的時間。所以（聽不清楚）但是--

Yes. So if you get a proposed decision that just fully adopts the settlement and that occurs for you got to file your 10-K then you might be able to you might feel comfortable booking at then as well?

是的。因此，如果您收到完全採納和解協議的擬議決定，並且您必須提交 10-K，那麼您可能也可以放心預訂？

Yes.

是的。

Yes.

是的。

Okay. Got you. And then ASUS does the big increase in capital work authorized? Does that reflect like PFOS mitigation work? Is it just a reflection of like the new bases that you've added in recent years?

好的。明白你了。那麼華碩是否授權大幅增加資本運作呢？這是否反映了 PFOS 緩解工作？這只是你們近年來新增的新基地的反映嗎？

Or what do you think drove that increase?

或者您認為是什麼推動了這種成長？

Well, I think the government had some money to vote. Usually, there's a big rush in awarding these new capital upgrades by the end of the fiscal year, which is September 30th. And we continue to work really hard to build a strong relationship with the government. I also feel like I've heard that some of the contracting officers raised their hand for some of the money to be spent on water and wastewater operations. So we've taken great care to present projects that are meaningful to the government for these new capital upgrades.

嗯，我認為政府有一些錢可以投票。通常，在本財年結束（即 9 月 30 日）之前，人們會急於授予這些新的資本升級。我們將繼續努力與政府建立牢固的關係。我還覺得我聽說一些承包官員舉手要求將部分資金用於水和廢水處理業務。因此，我們非常謹慎地展示對政府來說對這些新的資本升級有意義的項目。

But we'd be lying if we thought -- if we said we thought we were going to get $54 million. That's a big number for us.

但如果我們認為我們會得到 5400 萬美元，那我們就是在撒謊。這對我們來說是一個很大的數字。

Okay. Yes, that leads into my next question. I know like, well, two parts, I guess. Do you think that -- it sounds like maybe you don't believe that will be the new normal level going forward that this could just be a little bit of a one-off if there is extra money that needed to be spent before the end of the year.

好的。是的，這引出了我的下一個問題。我猜，我知道大概有兩個部分。你是否認為——聽起來也許你不相信這將成為未來的新常態，如果在結束之前需要花費額外的錢，這可能只是一次性的今年的。

Yes. I think the -- it's approximately double what our average recent average has been. So I think it's too early to tell whether that's the new normal. I will say this, one of the new bases contributed to that number. And then in the future, we think those two bases will help increase the NCU awards from what the historical average has been.

是的。我認為——這大約是我們近期平均值的兩倍。所以我認為現在判斷這是否是新常態還為時過早。我要說的是，新基地之一貢獻了這個數字。未來，我們認為這兩個基地將有助於提高 NCU 獎項的歷史平均水平。

Sure. And as we think of it like the annual construction expense for ASUS has been in that $50 million to $60 million range for many years. just given that award. And I know there's other ways you get projects approved and everything. What are you assuming for 2025 in the guidance range for annual construction expense relative to that historical $50 million to $60 million total.

當然。正如我們所想，華碩的年度建設費用多年來一直在 5,000 萬至 6,000 萬美元之間。剛剛獲得該獎項。我知道還有其他方法可以讓專案獲得批准等等。相對於歷史上 5000 萬至 6000 萬美元的總額，您對 2025 年年度建設費用指導範圍有何假設？

Yes. It goes back to our $0.59 to $0.63. I don't know if you heard that the $0.59 to $0.63 estimate 2025 on the earnings side.

是的。它回到我們的 0.59 美元到 0.63 美元。我不知道你是否聽說過 2025 年獲利預測為 0.59 至 0.63 美元。

Yes. I was wondering what's embedded in that estimate in terms of construction expense like knowing that you've got that $54 million or whatever it is appropriation. And then I know there's other projects that come into the fold over the course of the year and everything, like historically, when you've gotten more like 25%, you still have $50 million to $60 million in annual construction expense, right? So what what might construction expense look like in 2025 given the higher awards?

是的。我想知道在建築費用方面的估算中包含了什麼，例如知道你有 5400 萬美元或任何撥款。然後我知道還有其他項目在這一年中加入，一切都像歷史一樣，當你獲得了 25% 左右的份額時，你仍然有 5000 萬到 6000 萬美元的年度建設費用，對嗎？那麼，考慮到更高的獎項，2025 年的建築費用會是什麼樣子呢？

The $54 million is for the period 2024 through 2027. We -- the other part of construction expenses is renewal and replacement. And we have the ability to move that number up or down depending upon the efforts that need to take place on the new capital upgrade work. So we're -- we've got a lot to manage here, I guess, is what I'm saying. But we typically haven't given an estimate for what our construction expenses or revenues are going to be.

這 5,400 萬美元用於 2024 年至 2027 年。我們——建築費用的另一部分是更新和更換。我們有能力根據新的資本升級工作所需的努力來增加或減少這個數字。所以我們——我想，這就是我所說的，我們這裡有很多事情需要管理。但我們通常沒有對我們的建設費用或收入進行估計。

Okay. But I mean, I guess if you can move the stuff around and maybe like we shouldn't expect a huge jump in that annual construction expense, and I guess, like maybe some increase in 2025, but it's not like saying that $20 million or $25 million higher because of that $54 million award versus $25 million.

好的。但我的意思是，我想如果你可以移動這些東西，也許我們不應該期望每年的建設費用大幅增加，我想，就像 2025 年可能會有所增加，但這並不是說 2000 萬美元或由於5400 萬美元的獎金比2500 萬美元高出2500 萬美元。

Right. I wouldn't do that if I were you. I wouldn't move it all in there because we've got to manage all of this. I mean it's very, very nice to be awarded all this, but it's we've got to manage that along with the renewal and replacement work.

正確的。如果我是你我就不會這麼做。我不會把所有東西都移到那裡，因為我們必須管理所有這些。我的意思是，獲得所有這些獎項非常非常好，但我們必須在更新和更換工作的同時管理好這一點。

And usually, Jonathan, the annual NCU award has a long runway two to three years. So we can manage and plan our better this way because we have a healthy backlog of new capital upgrades to allow our capital program be able to plan ahead two, three years rather than a bounding one year. So just more planning involved to schedule it out.

喬納森，年度 NCU 獎項通常有兩到三年的時間。因此，我們可以透過這種方式更好地管理和規劃，因為我們有大量的新資本升級積壓，使我們的資本計劃能夠提前規劃兩三年，而不是一年。因此，只需更多的計劃來安排它。

John, just a little sideline on the $59 million to $63 million debt per share and why that's higher than what we're expecting this year. Some of that is due to having the new basis for a full year versus call it, 8.5 or 9 months. We took over Pax River on April 1 and KBCC on April 15. So we'll have a full year of their contribution, but some of that increase is also due to a higher level of new capital upgrade awards that we were given. If that helps.

約翰，稍微關註一下每股 5,900 萬至 6,300 萬美元的債務，以及為什麼這個數字高於我們今年的預期。其中部分原因是由於有了全年的新基準，而不是所謂的 8.5 或 9 個月。我們於 4 月 1 日接管了 Pax River，並於 4 月 15 日接管了 KBCC。因此，我們將得到他們一整年的貢獻，但其中一些成長也是因為我們獲得了更高水準的新資本升級獎勵。如果有幫助的話。

No, that's very helpful. And then I guess, what drove the increase in the 2024 guidance range? I don't know if you mentioned that because I think the midpoint was $0.52, and now you're more at like $55 million or $56 million.

不，這非常有幫助。然後我猜，是什麼推動了 2024 年指導範圍的增加？我不知道你是否提到過這一點，因為我認為中點是 0.52 美元，而現在你的價格大約是 5500 萬美元或 5600 萬美元。

Yes. So I would say a couple of things. One is we've had a pretty good year from a construction standpoint. We've encountered fewer unforeseen site conditions and had a very cooperative weather than we anticipated. Additionally, the new operations for us at Joint Base Cape Cod and Naval Air Station, Patuxent River contributed.

是的。所以我想說幾件事。一是從建造的角度來看，我們度過了相當不錯的一年。我們遇到的不可預見的現場情況較少，而且天氣比我們預期的更加配合。此外，我們在科德角聯合基地和帕圖森特河海軍航空站的新行動也做出了貢獻。

We were perhaps a bit conservative when we were providing the range as to what these two bases we're going to generate for us and in 2024. And they've done a bit better. So it's a combination of a better, I would say, better construction situation and then the new base is contributing better than what we had anticipated, which is a really good sign, I would say.

當我們提供我們將在 2024 年為我們產生的這兩個基地的範圍時，我們可能有點保守。他們做得更好。因此，我想說，這是一個更好的建設情況的結合，然後新基地的貢獻比我們預期的更好，我想說，這是一個非常好的跡象。

Yeah. No, and it sounds like that would be an ongoing thing in terms of their contribution being higher than what you're thinking. So no, that's good stuff.

是的。不，聽起來這將是一個持續的事情，因為他們的貢獻比你想像的要高。所以不，這是好東西。

Yeah.

是的。

Okay. That's it for me. I appreciate you taking my questions. Congrats on those GRC settlements and hopefully, we'll get the approval in the not too distant future.

好的。對我來說就是這樣。感謝您回答我的問題。恭喜這些 GRC 和解，希望我們能在不久的將來獲得批准。

Thank you, Jonathan.

謝謝你，喬納森。

Enjoy.

享受。

(Operator Instructions) This concludes our question-and-answer session. I would like to turn the conference back over to Bob Sprowls for any closing remarks.

（操作員說明）我們的問答環節到此結束。我想將會議轉回給鮑勃·斯普羅爾斯（Bob Sprowls）發表閉幕詞。

As I wrap up today, I just want to thank everyone for their participation today and we look forward to speaking with you next quarter. Thank you, all.

在我今天結束時，我只想感謝大家今天的參與，我們期待下個季度與您交談。謝謝大家。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

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。