American States Water Co (AWR) 2025 Q2 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 second quarter 2025 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 PM Eastern Time and run through August 14 on the company's website www.aswater.com.

女士們、先生們，感謝你們的支持。歡迎參加美國水務公司電話會議，討論公司 2025 年第二季的表現。通話正在錄音。如果您想收聽本次電話會議的重播，重播將於今天下午 5:00（美國東部時間）開始，並持續到 8 月 14 日，在公司網站 www.aswater.com 上播出。

The slides that the company will be referring to are also available on our website. (Operator Instructions) This call will be limited to an 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.

該公司將參考的幻燈片也可在我們的網站上找到。（接線生指示）本次通話將限制在一小時內。今天出席演講的是美國水務公司總裁兼執行長 Bob Sprowls 和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 not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and listeners are cautioned not to place undue reliance upon them.

提醒一下，本次電話會議中討論的某些事項可能是 1995 年《私人證券訴訟改革法案》所定義的前瞻性陳述。前瞻性陳述並不保證或擔保任何結果、財務表現、活動水準、績效或成就，敬請聽眾不要過度依賴它們。

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 and 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.

前瞻性陳述受估計和假設以及已知和未知的風險、不確定性和其他因素的影響。聽眾應該查看我們向美國證券交易委員會提交的最新 10-K 表和 10-Q 表中有關公司風險和不確定性的描述，這些描述可能會影響前瞻性陳述。

Statements made on this conference call speak only as of the day of this call. And except as required by law, the company does not undertake any obligation to publicly update or revise any forward-looking statements. 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.

本次電話會議所作的聲明僅代表會議當天的觀點。除法律要求外，本公司不承擔公開更新或修改任何前瞻性聲明的義務。此外，本次電話會議還將討論某些未依照美國公認會計原則或 GAAP 編制並根據美國證券交易委員會規則構成非 GAAP 財務指標的指標。

These non-GAAP financial measures are derived from consolidated financial information but are not presented in our financial statements that are prepared in accordance with GAAP. For more details, please refer to the press release.

這些非 GAAP 財務指標來自合併財務訊息，但未在依照 GAAP 編製的財務報表中呈現。如欲了解更多詳情，請參閱新聞稿。

At this time, I will turn the call over to Bob Sprowls, President and Chief Executive Officer of American States Water Company.

現在，我將把電話轉給美國水務公司總裁兼執行長 Bob Sprowls。

Thank you, Betsy. Welcome, everyone, and thank you for joining us today. I'll begin with a brief discussion 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. We had an overall positive and productive second quarter.

謝謝你，貝琪。歡迎大家，感謝你們今天的到來。我將首先簡要討論本季的情況。然後，Eva 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。總體而言，我們的第二季表現積極且富有成效。

Earnings per share were $0.02 higher compared to the same quarter in 2024. Favorable variance is attributable to the receipt of final decisions from the California Public Utilities Commission, or CPUC, in January of this year, for the water and electric general rate cases, which authorized new water rates for 2025 to 2027 and authorized new electric rates for 2023 to 2026.

每股收益與 2024 年同期相比高出 0.02 美元。有利的變化歸因於今年 1 月收到了加州公用事業委員會 (CPUC) 針對水和電一般費率案件的最終決定，該決定授權 2025 年至 2027 年的新水費率和授權 2023 年至 2026 年的新電費率。

The favorable variances were partially offset by lower earnings for ASUS of $0.06 per share due mostly to timing differences of construction activities. ASUS plans to catch up on construction during the second half of the year, and is still expecting to contribute $0.59 to $0.63 per share for the year.

有利的差異被華碩每股 0.06 美元的較低收益部分抵消，這主要歸因於建築活動的時間差異。華碩計劃在下半年趕上建設進度，預計全年每股收益仍為 0.59 美元至 0.63 美元。

There is also a $0.03 per share favorable variance from gains generated on our investments to fund one of the company's retirement plan. And the dilutive effects from the issuance of equity under American States Water's at the market offering program decreased consolidated earnings by $0.03 per share.

我們為資助公司的一項退休計畫而進行的投資所產生的收益也為每股 0.03 美元。美國水務公司根據市場發行計畫發行股票的稀釋效應導致每股合併收益減少 0.03 美元。

For the year-to-date June 30, earnings were $1.57 per share, $0.10 per share higher than last year. I'm also pleased to report that last week, our Board approved a sizable dividend increase of 8.3%. The annualized dividend rate after this increase is $2.016 per share.

截至 6 月 30 日的今年每股收益為 1.57 美元，比去年同期高出 0.10 美元。我還很高興地報告，上週我們的董事會批准了 8.3% 的大幅股息成長。此次調漲後的年化股利率為每股2.016美元。

This increase reflects our Board's confidence in the company's ability to achieve long-term sustainable earnings growth. We believe a growing dividend allows the company to attract capital for investments in its infrastructure that enable us to provide safe and reliable services to our customers and return value to our shareholders.

這一增長反映了董事會對公司實現長期可持續盈利增長的能力的信心。我們相信，不斷增長的股息使公司能夠吸引資本投資其基礎設施，使我們能夠為客戶提供安全可靠的服務並為股東帶來回報。

American States Water has paid dividends every year since 1931, increasing the dividends received by shareholders each calendar year now for 71 consecutive years. which places it in an exclusive group of companies on the New York Stock Exchange that have achieved that result.

美國水務公司自 1931 年以來每年都支付股息，至今已連續 71 年增加每年股東收到的股息。這使其成為紐約證券交易所少數幾家取得這一成績的公司之一。

We continue to invest in our water and electric systems for the long-term benefit of our customers. Our regulated utilities are on pace to invest a combined $170 million to $210 million in infrastructure investments this year.

我們將繼續投資水力發電系統，以造福我們的客戶。我們監管的公用事業今年將在基礎建設投資上共投資 1.7 億至 2.1 億美元。

American State Water Company has completed a transaction with a developer to own and operate the water and wastewater system assets serving a new planned community to be built out over time, and is expected to have approximately 1,300 customer connections, generating two revenue streams for delivering water and wastewater services to this community for many years to come.

美國州立水務公司已與一家開發商完成交易，擁有並運營為即將建成的新規劃社區提供服務的水和廢水處理系統資產，預計將擁有約 1,300 個客戶連接，為未來多年向該社區提供水和廢水處理服務創造兩大收入來源。

With that, I'll turn the call over to Eva to discuss earnings and liquidity.

說完這些，我將把電話轉給 Eva，討論收益和流動性。

Thank you, Bob, and hello, everyone. Let me start with our second quarter results. Recorded consolidated earnings were $0.87 per share for the quarter compared to $0.85 per share for the second quarter of last year.

謝謝你，鮑勃，大家好。讓我先介紹一下我們的第二季業績。本季合併收益為每股 0.87 美元，去年第二季為每股 0.85 美元。

For our water utility Golden State Water, reported earnings were $0.73 per share as compared to $0.67 per share last year. The $0.06 per share increase in 2025 was largely due to new 2025 water rates as a result of receiving the final decision on Golden State Water's standard rate case and higher gains generated on investments held to fund a retirement plan as compared to the same period in 2024, partially offset by higher operating expenses.

對於我們的水務公司 Golden State Water 而言，報告的收益為每股 0.73 美元，而去年的每股收益為 0.67 美元。2025 年每股收益增加 0.06 美元，主要是因為在收到有關金州水務公司標準水價案的最終判決後，2025 年水價有所變化，而且為資助退休計劃而持有的投資產生的收益與 2024 年同期相比有所增加，但部分被更高的運營費用所抵消。

Lastly, there was a decrease in earnings of $0.02 per share due to dilutive effect from the issuance of equity under AWR's at the market offering program. Our electric segment earnings were $0.03 per share for the quarter as compared to $0.01 per share for the same quarter last year, a $0.02 per share increase, primarily due to receiving the final CPUC decision on the electric general rate case with new 2025 electric rates as compared to 2022 rates used to record revenue during the second quarter of 2024.

最後，由於根據 AWR 的市場發行計劃發行股票的稀釋效應，每股收益減少了 0.02 美元。本季我們的電力部門收益為每股 0.03 美元，而去年同期為每股 0.01 美元，每股增加 0.02 美元，主要原因是收到了 CPUC 對電力通用費率案的最終決定，新的電費率為 2025 年，而 2024 年第二季度用於記錄收入的電費率為 2022 年。

Earnings from ASUS were $0.13 per share for the quarter compared to $0.19 per share in the same quarter last year, largely due to the timing of construction activity, which Bob will discuss further later in the call. Lastly, losses from our parent company were $0.01 per share for the quarter when compared to losses of $0.02 in the same quarter of 2024, due largely to a decrease in interest expense resulting from lower average interest rates, partially offset by higher borrowing levels at AWR's credit facility.

華碩本季每股收益為 0.13 美元，而去年同期每股收益為 0.19 美元，這主要是由於建築活動的時間安排，Bob 將在稍後的電話會議中進一步討論這一點。最後，本季我們母公司的虧損為每股 0.01 美元，而 2024 年同期的虧損為 0.02 美元，這主要是由於平均利率降低導致利息支出減少，但 AWR 信貸額度的借款水準較高部分抵消了這一影響。

Consolidated revenue for the second quarter increased by $7.7 million when compared to same period of 20.4%. Revenues for the water segment increased by $9.3 million, largely due to new 2025 water rates as a result of receiving a final decision in Golden State Water's general rate case with new rates effective January 1, 2025.

第二季綜合營收較去年同期成長 770 萬美元，成長 20.4%。水務部門的收入增加了 930 萬美元，這主要是因為在金州水務公司一般費率案中收到最終判決後，新的 2025 年水費將於 2025 年 1 月 1 日生效。

Revenues for the electric segment increased by $4.2 million, mainly due to new 2025 electric rates as compared to 2022 rates used to record revenue during the second quarter of last year. Revenues from ASUS decreased $5.8 million, primarily due to lower construction activities during the quarter as a result of the timing when the work was performed.

電力部門的收入增加了 420 萬美元，這主要是由於 2025 年的新電價，而去年第二季用於記錄收入的電價是 2022 年的。華碩的收入減少了 580 萬美元，主要原因是本季施工時間較長，導致建築活動減少。

Turning to slide 9. Supply costs increased by $4.7 million, mostly due to higher per unit water supply costs. Looking at total operating expenses other than supply costs, consolidated expenses increased by $3.9 million compared to 2024.

翻到第 9 張投影片。供水成本增加了 470 萬美元，主要是因為單位供水成本上升。從供應成本以外的總營運費用來看，合併費用與 2024 年相比增加了 390 萬美元。

This increase includes the impact of the electric general rate case decision issued in January, which authorized higher operating expenses, primarily for vegetation management and other wildfire mitigation efforts.

這一增長包括 1 月發布的電力通用費率案判決的影響，該判決批准提高營運費用，主要用於植被管理和其他野火緩解工作。

These costs were previously excluded from customer rates and not expense in the second quarter of last year as they were being tracked in memorandum accounts. They are now included in the adopted electric revenues. In addition, the increase was due to higher overall operating expenses, partially offset by lower ASUS construction expenses.

這些成本之前被排除在客戶費率之外，而不是去年第二季的費用，因為它們是在備忘帳戶中追蹤的。它們現在已被納入所採用的電力收入中。此外，成長是由於整體營運費用增加，但被華碩建築費用降低部分抵消。

Lastly, there was an increase in other income net of other expense of $2.1 million, due largely to higher gains generated on investments held to fund a retirement plan during the quarter due to financial market conditions.

最後，扣除其他支出後的其他收入增加了 210 萬美元，這主要是由於本季度由於金融市場狀況而為退休計劃而持有的投資產生了更高的收益。

Slide 10 shows the EPS bridge comparing reported EPS for second quarter of 2025 against the same period for 2024. Consolidated earnings for the six months ended June 2025 were $1.57 per share compared to $1.47 per share for the same period last year, an increase of $0.10 per share. The increase is largely generated from higher earnings at our regulated utilities.

投影片 10 顯示了 EPS 橋，比較了 2025 年第二季報告的 EPS 與 2024 年同期的 EPS。截至 2025 年 6 月的六個月的綜合收益為每股 1.57 美元，而去年同期為每股 1.47 美元，每股增加 0.10 美元。這一增長主要源於我們所監管的公用事業的收益增加。

Turning to liquidity on slide 12. Net cash provided by operating activities were $109.6 million for the first six months of the year compared to $70.5 million last year. with the increase largely related to the implementation of new rates at our regulated utilities from approved general rate cases as well as the implementation of various approved surcharges or additional base rates from advice letter filings.

轉向投影片 12 上的流動性。今年上半年，經營活動提供的淨現金為 1.096 億美元，去年同期為 7,050 萬美元。成長的主要原因是，我們監管的公用事業公司根據批准的一般費率案例實施了新費率，以及根據建議函文件實施了各種批准的附加費或額外基本費率。

In addition, the increase also resulted from differences in timing of billing and cash receipts for construction work at ASUS military basis and the timing of its tender payments. For investing activities, our regulated utility invested $97.9 million on company-funded capital project in the first half of the year, and we project to be on target to reach $170 million to $210 million for the year.

此外，成長也由於華碩軍事基地建設工程的帳單和現金收款時間與其投標付款時間存在差異。對於投資活動，我們監管的公用事業公司在上半年向公司資助的資本項目投資了 9,790 萬美元，我們預計今年的投資目標將達到 1.7 億至 2.1 億美元。

For financing activity -- activities, American States Water under its ad market offering program raised proceeds of $25.6 million during the first half of the year, net of issuance costs and legal costs.

對於融資活動—活動，美國水務公司根據其廣告市場發行計劃在上半年籌集了 2,560 萬美元，扣除發行成本和法律成本。

In May of this year, Golden State Water issued $100 million in unsecured private placement notes that matured in 2032 and 2037. In addition, earlier during the quarter, both American States Water and Golden State Water executed amendments to their credit agreements to extend their credit facility terms from June 2028 to June of 2029.

今年 5 月，Golden State Water 發行了 1 億美元無擔保私募債券，到期日分別為 2032 年和 2037 年。此外，在本季早些時候，American States Water 和 Golden State Water 均對其信貸協議進行了修訂，將其信貸期限從 2028 年 6 月延長至 2029 年 6 月。

As part of this amendment, American States Water also expanded its credit facility borrowing capacity from $165 million to $195 million. In early July, Standard & Poor's Global Ratings affirmed a credit rating of a stable for American States Water and A+ stable ratings for Golden State Water. These are some of the highest credit ratings in the US investor-owned water utility industry.

作為此次修訂的一部分，美國水務公司也將其信貸額度借款能力從 1.65 億美元擴大到 1.95 億美元。7月初，標準普爾全球評等確認美國水務公司信用評等為穩定，金州水務公司信用評等為A+穩定。這是美國投資者所有的水務行業中最高的信用評級之一。

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

說完這些，我就把電話轉回給鮑伯。

Thank you, Eva. On the regulatory front, as a reminder, in January of this year, the CPUC issued a final decision in connection with the recent water general rate case that covers rates for 2025 through 2027, and a final decision on the electric general rate case, that sets rates for 2023 through 2026.

謝謝你，伊娃。在監管方面，需要提醒的是，今年 1 月，加州公用事業委員會 (CPUC) 就最近的水費一般費率案發布了最終裁決，該裁決涵蓋 2025 年至 2027 年的費率，並就電力一般費率案發布了最終裁決，確定了 2023 年至 2026 年的費率。

We have discussed the details of these two rate cases in our prior earnings releases and calls. We are gearing up to file our next electric rate case in early 2026, and we will begin preparation for our next water rate case expected to be filed in July of 2026.

我們在先前的收益報告和電話會議中討論過這兩種利率情況的細節。我們正準備在 2026 年初提起下一起電費訴訟，並且我們將開始準備預計在 2026 年 7 月提起的下一起水費訴訟。

As you know, the final decision in the water rate case or Golden State Water to transition from a full decoupling mechanism and a full supply cost balancing account, which were requested again in the general rate case application to a modified rate adjustment mechanism, a Monetary Water Revenue Adjustment Mechanism, or MRAM and an incremental cost balancing account for supply cost effective January 1, 2025.

如您所知，水費案或金州水務公司的最終決定是從完全脫鉤機制和完全供應成本平衡帳戶（在一般費率案申請中再次要求）過渡到修改後的費率調整機制，即貨幣水收入調整機製或 MRAM 和增量成本平衡帳戶，以實現供應成本，自 2025 年 1 月 1 日起生效。

Without the continuation of a full revenue decoupling mechanism and a full cost balancing account for water supply, the company may be subject to future volatility and revenues and earnings as a result of fluctuations in water consumption by its customers and changes in water supply source mix.

如果不繼續實行完全的收入脫鉤機制和供水完全成本平衡帳戶，公司未來的收入和利潤可能會因客戶用水量的波動和供水源結構的變化而受到波動的影響。

Final decision adopted the company's MRAM rate design proposal which authorizes Golden State Water to increase the revenue requirement and its fixed service charges to between 45% and 48% of the revenue requirement, depending upon the rate making area, representing approximately 65% of the water utilities fixed cost in aggregate.

最終決定採納了該公司的 MRAM 費率設計方案，該方案授權金州水務公司將收入要求及其固定服務費提高到收入要求的 45% 至 48% 之間（具體取決於費率制定區域），總計約佔水務公司固定成本的 65%。

It also adopted Golden State Water's recommended sales forecast and approved the company's request for the continuation of a sales reconciliation mechanism which allows the company to adjust its sales forecast throughout the general rate case cycle to address significant fluctuations in consumption.

它還採納了金州水務公司建議的銷售預測，並批准了該公司繼續實行銷售核對機制的請求，該機制允許該公司在整個一般費率案例週期內調整其銷售預測，以應對消費的大幅波動。

In March, Golden State Water filed an application for rehearing of the CPUC's decision in the 2025 through 2027 water general rate case asserting that the final decisions denial of the company's revenue decoupling proposal was not supported by the record.

3 月份，金州水務公司提交了一份申請，要求重新審理 CPUC 在 2025 年至 2027 年水費一般費率案中的決定，聲稱最終決定否決該公司的收入脫鉤提議沒有記錄支持。

In May, the CPUC issued a decision denying the company's application for rehearing. Golden State Water, along with four other investor-owned water utilities in California are supporting Senate Bill 473 or SB 473, which has been authored by one of the California state senators and being sponsored by the California Water Association.

5月，CPUC發布決定，駁回該公司的重審申請。金州水務公司與加州其他四家投資者擁有的水務公司一起支持參議院第 473 號法案或 SB 473 號法案，該法案由加州參議員起草，並由加州水務協會贊助。

SB 473 seeks to align the regulated water utilities with the regulated electric utilities, by making revenue decoupling mandatory and not at the discretion of the CPUC. The bill has been passed by the Senate and has been approved by the Assembly Committee on Utilities and Energy. It has been referred to the committee on appropriations, but no hearing date has been set.

SB 473 旨在透過強制收入脫鉤（而不是由 CPUC 自行決定）來使受監管的水務公司與受監管的電力公司保持一致。該法案已獲參議院通過，並獲得議會公用事業和能源委員會的批准。該案已提交撥款委員會，但尚未確定聽證日期。

If approved by the committee on appropriations, it will go to the assembly floor for vote. The deadline to pass out of the assembly is September 12, and the deadline for Governor Newsom to sign all proposed bills is October 12.

如果獲得撥款委員會批准，該法案將提交給議會表決。議會通過的最後期限是 9 月 12 日，紐森州長簽署所有擬議法案的最後期限是 10 月 12 日。

Since Senate Bill 473 is still progressing through the legislative process, at this time, management cannot predict the final outcome of this matter. In August of 2023, Golden State Water entered into an agreement, which was subject to CPUC approval to purchase from a developer, the water and wastewater system assets in a development located in California Central Coast region.

由於參議院第 473 號法案仍在立法程序中，目前管理階層無法預測此事的最終結果。2023 年 8 月，Golden State Water 簽署了一項協議，該協議需經 CPUC 批准，從開發商購買位於加州中央海岸地區開發項目的供水和廢水系統資產。

This is a newly planned community, which will serve up to approximately 1,300 customers at full build-out, which is anticipated to occur by 2034 under the current construction schedule, barring any future delays.

這是一個新規劃的社區，全面建成後將為約 1,300 名客戶提供服務，按照目前的建設進度，如果不出現任何未來延誤，預計將於 2034 年建成。

On December 5, 2024, the CPUC approved a final decision granting Golden State Water's certificates of public convenience and necessity that established rates for water and sewer services, including the company's recovery of the purchase price through future customer rates.

2024 年 12 月 5 日，CPUC 批准了一項最終決定，授予 Golden State Water 公共便利和必要證書，該證書規定了水和下水道服務的費率，包括該公司透過未來客戶費率收回購買價格。

After receiving CPUC approval and finalizing other closing procedures, in May of this year, the parties completed the closing of the transaction, which included the initial installation and conveyance of water and wastewater system assets of $10.7 million by the developer, a non-cash transaction to Golden State Water recorded during this year's second quarter, that resulted in an increase in the company's utility plant, with corresponding increases in advances for and contributions in aid of construction.

在獲得 CPUC 批准並完成其他交割程序後，雙方於今年 5 月完成了交易，其中包括開發商初始安裝和輸送價值 1070 萬美元的水和廢水系統資產，這是今年第二季度記錄的與 Golden State Water 的一項非現金交易，這導致該公司的公用事業工廠規模增加，建設預付款和援助捐款也相應增加。

In the future, Golden State Water will take ownership of the incremental water and wastewater system assets in phases as they are completed and ready to accommodate new connections.

未來，隨著增量供水和廢水系統資產的完工並準備好容納新的連接，Golden State Water 將分階段接管這些資產。

Turning our attention to slide 16, 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 billion in 2024. That is the compound annual growth rate of 10.3% and for the six year period using 2018 as the base year for the calculation.

我們將注意力轉向第 16 張投影片，我們展示了金州水務公司採用的平均水費基數從 2018 年到 2024 年的成長情況，從 2018 年的 7.522 億美元增加到 2024 年的 13.57 億美元。以2018年為基準年計算，六年間的複合年增長率為10.3%。

Golden State Water anticipates a robust and sustained growth in its rate base over the next few years. as a result of receiving its recent general rate case decision that not only authorizes it to invest $573.1 million in capital infrastructure, but in addition to that, capital investments of certain projects through advice letter filings upon completion, that will contribute to a further growth in the rate base in the second and third year of the rate cycle.

Golden State Water 預計未來幾年其費率基數將實現強勁、持續的成長。由於最近收到的一般費率案件判決不僅授權其投資 5.731 億美元用於資本基礎設施，而且授權其在項目完成後通過建議函備案對某些項目進行資本投資，這將有助於費率週期第二年和第三年費率基數的進一步增長。

Lastly, a few weeks ago, on July 18, Fair Valley Electric and the Public Advocates Office of the CPUC filed a joint motion with the CPUC to adopt the settlement agreement, resolving all issues in Fair Valley Electric's application with the commission to construct solar energy generation and battery storage facilities.

最後，幾週前，即 7 月 18 日，Fair Valley Electric 公司和 CPUC 公共辯護辦公室向 CPUC 提交了一份聯合動議，要求透過和解協議，解決 Fair Valley Electric 公司向委員會提交的建設太陽能發電和電池儲存設施的申請中的所有問題。

These facilities will help enable Bear Valley Electric to better control its energy and energy-related costs through self-supply from a local generation resource and also provide energy shifting capabilities and additional capacity during emergencies and peak load conditions.

這些設施將幫助 Bear Valley Electric 公司透過本地發電資源的自我供應更好地控制其能源和能源相關成本，並在緊急情況和高峰負載條件下提供能源轉換能力和額外容量。

Among other things, the settlement agreement authorizes the construction of the facilities for a total combined cost of $28 million, plus allowance for funds used during construction. Settlement agreement is pending approval by the CPUC, with a proposed decision expected later this year. If approved, the costs associated with the projects would be recoverable in customer rates at the time the projects are completed and in served.

除其他事項外，和解協議還授權建造這些設施，總成本為 2,800 萬美元，外加建造期間使用的資金補貼。和解協議有待加州公共事業委員會批准，預計今年稍後做出決定。如果獲得批准，項目相關成本將在項目完成並投入使用時以客戶費率收回。

Let's continue to ASUS, which contributed earnings of $0.13 per share in the second quarter of this year as compared to $0.19 per share for 2024. The decrease was a result of a decline in construction activity due to the timing of when the work was performed and higher overall operating expenses partially offset by an increase in management fee revenues from the resolution of various economic price adjustments and lower interest expense from lower borrowing levels.

讓我們繼續看看華碩，今年第二季其每股收益為 0.13 美元，而 2024 年每股收益為 0.19 美元。下降的原因是施工時間導致建築活動減少，以及整體營運費用增加，但部分抵消了因解決各種經濟價格調整而增加的管理費收入和因借款水平降低而減少的利息支出。

Despite the lower construction activities during the quarter, we continue to project ASUS to contribute $0.59 to $0.63 per share this year, representing an increase of 7.3% at the low end of the range to 14.5% at the high end of the range. In addition, we remain confident that we can effectively compete for new military-based contract awards.

儘管本季建築活動減少，但我們仍預測華碩今年每股收益將達到 0.59 美元至 0.63 美元，這意味著最低成長 7.3%，最高成長 14.5%。此外，我們仍然相信我們能夠有效地競爭新的軍事合約授予。

I would like to turn our attention to dividends, which I touched on earlier. Last week, we announced an 8.3% increase in the third quarter dividend. This increase is consistent with our policy to achieve a compound annual growth rate in the dividend of more than 7% over the long term.

我想把注意力轉向我之前提到的股息。上週，我們宣布第三季股利增加 8.3%。這一增長符合我們長期實現股息複合年增長率超過 7% 的政策。

Our strong dividend history is something that the company is proud of and is a continued asset to our shareholders. This strong track record has allowed us to achieve an 8.5% compound annual growth rate in our quarterly dividend rate to shareholders over the last five years since the third quarter of 2020.

我們強勁的股利歷史是公司引以為傲的，也是我們股東的持續資產。這一良好的業績記錄使我們自 2020 年第三季以來的五年中向股東派發的季度股息實現了 8.5% 的複合年增長率。

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.

最後，我想感謝您對美國水務公司的關注，現在我們將把電話轉給接線員來回答您的問題。

(Operator Instructions) [Ian Rath], Bank of America.

(操作員指示)[Ian Rath]，美國銀行。

Hey guys, thanks for taking my question. Just a quick one in terms of sculpting our estimates for the remainder of the year. So that you reiterated the ASUS guidance for the year. Just curious if you are seeing more construction activity pacing towards the third quarter? Or is that later in the year, pickup in 4Q, just so I can kind of rightsize our quarterly estimates there?

嘿夥計們，謝謝你們回答我的問題。就今年剩餘時間的預測而言，這只是一個快速的預測。因此您重申了華碩今年的指引。我只是好奇，您是否看到第三季有更多的建築活動？或者是在今年晚些時候，在第四季度回升，這樣我就可以調整我們的季度預估？

Well, it's -- we'll see in both the third and the fourth quarter. My guess is we'll probably see more in the fourth than the third, but it's really sort of a guess at this point. We're depending on other folks permitting, et cetera, and it's how quickly we can get through those processes. But we're pretty confident on the $0.59 to $0.63.

嗯，我們將在第三季和第四季看到結果。我猜測我們可能會在第四部中看到比第三部更多的內容，但目前這只是一種猜測。我們依賴其他人的許可等等，以及我們能夠多快完成這些流程。但我們對 0.59 美元至 0.63 美元的價格非常有信心。

Okay. Great. And then just on the decoupling legislation. It seems like it's moving through the legislature pretty nicely so far. Obviously, got some robust debate in the committee at this point. But can you just talk us through kind of your confidence level of getting something done on that front? And then just -- apologies if you already mentioned it, but just the process or time line as the bill is currently written to effectuate that into your rate construct.

好的。偉大的。然後是關於脫鉤立法。到目前為止，該法案在立法機構的進展似乎相當順利。顯然，委員會此時展開了激烈的辯論。但是您能否向我們談談您對這方面取得成就的信心程度？然後只是 - 如果您已經提到它，請原諒，但只是流程或時間表，因為賬單目前已寫入以將其納入您的費率結構。

Yeah. So it's pretty difficult thing to handle California. We think we have -- there's a lot of great arguments on our side as to why we should get full decoupling, and probably the biggest one is the electric utilities have it. Why is it good for the electrics and not for water.

是的。所以處理加州的事情相當困難。我們認為我們已經——我們這邊有很多很好的論點來說明為什麼我們應該完全脫鉤，其中最大的一個可能就是電力公司已經完全脫鉤了。為什麼它對電有好處，對水卻無好處？

But not to mention what it does for ability to put tiered rates in and make rates more affordable to low-income customers. We just -- we're cautiously optimistic, I would say. We've done very well to get it this far. And again, I don't want to handicap whether it's going to go through or not because I'm no political scientists to be honest, just we'll just have to watch it carefully. What are you hearing from the other companies, Ian?

但更不用說它對實施分級費率和使低收入客戶能夠負擔得起費率的能力。我想說，我們只是謹慎樂觀。我們已經做得很好了，能夠達到現在的水準。再說一次，我不想預測它是否會通過，因為說實話我不是政治學家，我們只是必須仔細觀察。伊恩，你從其他公司聽到了什麼消息？

Yeah, I think that's a fair assessment of the landscape, cautiously optimistic to get term, but that's helpful for my end. I appreciate you guys' commentary. I'll come back in the queue.

是的，我認為這是對情況的公平評估，對獲得任期持謹慎樂觀的態度，但這對我有幫助。我很感謝你們的評論。我會回到隊列中。

Yeah. Thanks Ian.

是的。謝謝伊恩。

(Operator Instructions) There are no further questions at this time. I'd like to turn the conference back over to Bob Sprowls for any closing remarks.

（操作員指示）目前沒有其他問題。我想將會議交還給 Bob Sprowls 做最後發言。

Thank you, Betsy. Just wanted to pass on my thanks to everyone for their participation today. And we look forward to -- as we always do, we look forward to speaking with all of you next quarter. And enjoy the rest of the summer. Thank you.

謝謝你，貝琪。我只是想向大家今天的參與表示感謝。我們一如既往地期待著下個季度與大家交談。享受剩下的夏天吧。謝謝。

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。