American States Water Co (AWR) 2025 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 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 p.m. Eastern Time and run through November 13 on the company's website, www.aswater.com.

女士們、先生們，感謝你們的耐心等待。歡迎參加美國州際水務公司電話會議，本次會議將討論本公司 2025 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錄音，錄音將於今天下午美國東部時間 5:00 開始，一直持續到 11 月 13 日，您可以在公司網站 www.aswater.com 上收聽。

The slides that the company will be referring to are also available on the 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.

公司將要提到的幻燈片也可以在網站上找到。（操作員指示）本次通話時間限制為一小時。今天代表美國州水務公司發言的是總裁兼執行長鮑伯·斯普勞爾斯，以及財務高級副總裁兼財務長伊娃·唐。

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.

提醒各位，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》所界定的前瞻性陳述。前瞻性陳述並非對任何結果、財務表現、活動水準、表現或成就的保證或擔保，聽眾請勿過度依賴這些陳述。

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.

前瞻性陳述受制於估計和假設，以及已知和未知的風險、不確定性和其他因素。聽眾應查看公司最新向美國證券交易委員會提交的 10-K 表格和 10-Q 表格中對可能影響前瞻性聲明的公司風險和不確定性的描述。

Statements made on this conference call speak only as of the date 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.

本次電話會議中所作的陳述僅代表截至本次電話會議當日的觀點，除法律要求外，本公司不承擔任何公開更新或修改任何前瞻性陳述的義務。此外，本次電話會議也將討論一些不符合美國公認會計原則（GAAP）的指標，這些指標根據美國證券交易委員會（SEC）的規定屬於非GAAP財務指標。

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

這些非公認會計準則財務指標源自合併財務訊息，但並未在我們依照公認會計準則編製的財務報表中列示。更多詳情請參閱新聞稿。此時，我將把電話轉交給美國州水務公司總裁兼執行長鮑伯‧斯普勞爾斯。請繼續。

Thank you, Bailey. Welcome, everyone, and thank you for joining us today. I'll begin with brief highlights to our quarter, Eva will 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. I'm pleased to report that recorded earnings per share for the third quarter were $0.11 per share higher compared to the third quarter of last year, an increase of 11.6%.

謝謝你，貝利。歡迎各位，感謝你們今天加入我們。首先，我將簡要介紹我們本季的亮點，Eva 將討論一些財務細節，然後我將總結一下監管活動、華碩、股息方面的最新情況，最後我們將回答大家的問題。我很高興地報告，第三季每股收益比去年同期成長了 0.11 美元，增幅達 11.6%。

Favorable variance is attributable to the receipt of final decisions from the California Public Utilities Commission or CPUC in January 2025 for our regulated water and electric utilities general rate cases which authorized new water rates for 2025 to 2027 and authorized new electric rates for 2023 to 2026 and higher earnings for our contracted services business, American States Utility Services, or ASUS, of $0.08 per share, due mostly to increases in construction activities during the quarter.

有利的差異歸因於加州公共事業委員會 (CPUC) 於 2025 年 1 月對我們受監管的水務和電力公用事業一般費率案件作出的最終決定，該決定授權了 2025 年至 2027 年的新水費和 2023 年至 2026 年的新電費，以及我們增加服務每股收益 (.美元，這主要是由於該季度建築活動的增加。

For the year-to-date September 30, earnings were $2.63 per share, $0.21 per share higher than last year or 8.7%. We continue to invest in our water and electric utility systems for the long-term benefit of our customers. Our regulated utilities are on pace to invest a combined $180 million to $210 million in infrastructure investments this year.

截至 9 月 30 日，今年迄今的每股收益為 2.63 美元，比去年同期增長 0.21 美元，增幅為 8.7%。我們將繼續投資水務和電力設施，以造福我們的客戶。今年，我們受監管的公用事業公司預計在基礎設施投資方面投入總計 1.8 億美元至 2.1 億美元。

In addition, our water utility recently received CPUC approval to provide water services at another new planned community that will be built out over time with the first development expected to serve up to 3,800 customer connections during the next five years. And over the longer term, 20-plus years, allows for the construction of 17,500 total dwelling units at full build-out.

此外，我們的水務公司最近獲得了加州公共事業委員會的批准，將在另一個新的規劃社區提供供水服務。該社區將逐步建成，預計在未來五年內，第一個開發案將為多達 3,800 個用戶連線提供服務。從長遠來看，20 多年後，全面建成後總共可以建造 17,500 套住宅單元。

ASUS continues to enter into US government awarded contract modifications for new construction projects and was awarded $28.7 million in new capital upgrade construction projects during the nine months ended September 30 of this year. These newly awarded projects are expected to be completed through 2028.

華碩繼續與美國政府簽訂新的建設項目合同，並在截至今年9月30日的九個月內獲得了價值2870萬美元的新資本升級建設項目。這些新得標的項目預計將於 2028 年前完成。

I'd also like to mention that we are pleased to be recognized on Times America's Best Midsize Companies 2025 list and are one of only two investor-owned water utilities on the list. Companies are ranked by revenue growth, employee satisfaction and sustainability transparency. In addition, American States Water Company is the only water utility included in Barron's 100 Most Sustainable Companies for 2025.

我還想提一下，我們很高興能夠入選《時代》雜誌評選的「2025 年美國最佳中型企業」榜單，並且是榜單上僅有的兩家投資者擁有的水務公司之一。公司排名依據營收成長、員工滿意度和永續發展透明度。此外，美國州立水務公司是唯一入選巴倫周刊2025年100家最具永續發展能力公司名單的水務公司。

Companies were scored across 230 environmental, social and governance performance indicators from workplace diversity to greenhouse gas emissions. We believe these recognitions reflect our strategic growth plans, commitment to our workforce and focus on our initiatives and disclosures in the sustainability areas and these will remain priorities for the company.

從工作場所多元化到溫室氣體排放，共有 230 項環境、社會和治理績效指標對公司進行評分。我們相信，這些認可體現了我們的策略性成長計畫、對員工的承諾以及對永續發展領域舉措和資訊揭露的重視，這些仍將是公司的優先事項。

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

接下來，我將把電話交給伊娃，讓她討論收益和流動性問題。

Thank you, Bob. Hello, everyone. Let me start with our third quarter results. Recorded consolidated earnings were $1.06 per share for the quarter as compared to $0.95 per share for the third quarter of 2024. For our water utility Golden State Water reported earnings were $0.86 per share as compared to $0.84 per share last year.

謝謝你，鮑伯。大家好。首先，讓我來看看我們第三季的業績。本季錄得的合併收益為每股 1.06 美元，而 2024 年第三季為每股 0.95 美元。根據我們水務公司 Golden State Water 報告，其每股收益為 0.86 美元，去年同期為每股 0.84 美元。

The $0.02 per share increase in 2025 was largely due to new 2025 water rates as a result of receiving a final decision in Golden State Water's general rate case proceeding. Higher gain generated on investments held to fund a retirement plan and lower interest expense, partially offset by higher operating expenses and a higher effective income tax rate.

2025 年每股上漲 0.02 美元，主要是由於 Golden State Water 的一般費率案件程序最終裁決，導致 2025 年水費上漲。退休計畫的投資收益較高，利息支出較低，但部分被較高的營運費用和較高的實際所得稅率所抵銷。

Lastly, there was a decrease in earnings of $0.02 per share due to the dilutive effect from the insurance of equities under AWR ad market offering program. Our Electric segment earnings were $0.04 per share for the quarter as compared to $0.02 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 the new 2025 electric rates as compared to 2022 rate used to record revenues during the third quarter of last year.

最後，由於 AWR 廣告市場發行計畫下的股票保險帶來的稀釋效應，每股收益減少了 0.02 美元。本季我們的電力部門每股收益為 0.04 美元，而去年同期為每股 0.02 美元，每股收益增加 0.02 美元，主要是由於我們收到了加州公共事業委員會 (CPUC) 關於電力一般費率案件的最終決定，新的 2025 年電力費率與去年第三季度用於記錄收入的 2022 年費率相比有所變化。

Earnings from ASUS were $0.19 per share for the quarter compared to $0.11 per share for the same quarter last year. That is an increase of $0.08 per share, which Bob will discuss further later. Lastly, losses from our parent company were $0.03 per share for the quarter when compared to losses of $0.02 per share for the same quarter last year, due largely to an increase in interest expense resulting from higher borrowing levels from AWR's credit facility.

華碩本季每股收益為 0.19 美元，去年同期每股收益為 0.11 美元。這意味著每股上漲 0.08 美元，鮑勃稍後會對此進行更詳細的討論。最後，由於 AWR 信貸額度借款水準提高導致利息支出增加，本季母公司每股虧損 0.03 美元，而去年同期每股虧損 0.02 美元。

Consolidated revenue for the third quarter increased by $21 million when compared to the same quarter of 2024. Revenues for the water segment increased by $8.3 million, largely as a result of receiving the final decision in Golden State Water's general rate case with new rates effective January 1, 2025. Revenues for Electric segment increased by $4.3 million, mainly due to new 2025 electric rates as compared to 2022 rates used to record revenue during the same quarter of 2024.

第三季綜合營收比 2024 年同期成長了 2,100 萬美元。水務部門的收入增加了 830 萬美元，這主要是由於 Golden State Water 的一般費率案件獲得了最終裁決，新費率將於 2025 年 1 月 1 日生效。電力業務收入增加了 430 萬美元，主要是由於 2025 年新的電價與 2022 年電價相比有所變化，而 2024 年同期收入的確認依據是 2022 年電價。

Revenues from ASUS increased $8.4 million, primarily due to higher construction activity during the quarter due to timing. Turning to slide 9. Supply costs increased by $4 million, mostly due to higher overall per-unit purchased water cost included in customer rates in 2025. Looking at total operating expenses other than supply costs. Consolidated expenses increased by $10.3 million compared to 2024.

華碩的收入增加了 840 萬美元，這主要是由於本季施工活動因時間因素而增加。翻到第9張投影片。供水成本增加了 400 萬美元，主要是由於 2025 年客戶水費中包含的單位購水成本總體上漲。考慮除供應成本以外的所有營運費用。與 2024 年相比，合併支出增加了 1,030 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. These costs were previously excluded from customer rates and are not expensed -- were not expensed in the third quarter of last year, as they were being tracked in memorandum accounts.

此次增長包括 1 月發布的電力一般費率案件決定的影響，該決定授權提高營運費用，主要用於植被管理和其他野火緩解工作。這些成本以前不包含在客戶費率中，也沒有計入費用——去年第三季也沒有計入費用，因為它們是在備忘錄帳戶中追蹤的。

They are now included in adopted Electric revenue. In addition, the increase was due to higher ASUS construction expenses and higher overall operating expenses. These higher expenses were partially offset by lower interest expense, net of interest income, primarily due to decreases in interest rates and overall borrowing levels partially offset by reduced interest income from a decrease in regulatory asset balances.

它們現在已納入已採納的電力收入。此外，成長的原因還包括華碩更高的建設成本和更高的整體營運成本。這些較高的支出部分被較低的利息支出（扣除利息收入後）所抵消，這主要是由於利率和整體借款水準的下降，但部分被監管資產餘額減少導致的利息收入減少所抵消。

Lastly, there was an increase in other income net of other expense due largely to higher gains generated on investments held to fund a retirement plan during the quarter as compared to the same period in 2024 due to financial market conditions. slide 10 shows the EPS bridge comparing reported EPS for the third quarter of 2025 against the same period for 2024.

最後，由於本季用於退休計畫的投資收益高於2024年同期，其他收入扣除其他支出後增加，這主要是由於金融市場狀況良好。第10張投影片展示了2025年第三季與2024年同期每股盈餘的比較表。

Moving on to slide 11. Consolidated earnings for the 9 months ended September were $2.63 per share compared to $2.42 per share for the same period in 2024, an increase of $0.21 per share. The increase is largely generated from higher earnings at our regulated utilities.

接下來是第11張投影片。截至 9 月的 9 個月，合併收益為每股 2.63 美元，而 2024 年同期為每股 2.42 美元，每股增加 0.21 美元。這一成長主要源自於我們監管的公用事業公司獲利增加。

Turning to liquidity on slide 12. Net cash provided by operating activities was $202 million for the year-to-date September compared to $134.2 million for the same period last year, with the increase largely related to the implementation of new rates at our regulated utility funds approved to generate proceedings as well as various approved surcharges or additional base rate from advice letter filings.

第 12 頁討論流動性問題。截至 9 月份，經營活動產生的淨現金為 2.02 億美元，而去年同期為 1.342 億美元，增長主要與受監管公用事業基金實施新費率有關，該費率已獲批准用於產生訴訟，以及根據諮詢函備案的各種已批准附加費或額外基本費率。

In addition, the increase also resulted from differences in timing of income tax payments, billing and cash receipts for construction work at military basis at ASUS and the timing of its vendor payments. For investing activities, our regulated utility invested $151.8 million on company-funded capital projects in the first nine months of this year, and we project to be on target to reach $180 million to $210 million for this year.

此外，ASUS 在軍事基地的建築工程的所得稅支付、帳單和現金收入的時間以及向供應商付款的時間存在差異，這也是導致成長的原因之一。在投資活動方面，我們這家受監管的公用事業公司在今年前九個月投資了 1.518 億美元用於公司出資的資本項目，我們預計今年的投資額將達到 1.8 億美元至 2.1 億美元。

For financing activities, American States Water under its ad market offering program raised the proceeds of $40.2 million during the nine months ended September 30, net of issuing cost and legal costs, leaving a remaining balance of $68 million available for issuance under the program.

在融資活動方面，美國州水務公司透過其廣告市場發行計劃，在截至 9 月 30 日的九個月內籌集了 4,020 萬美元的資金，扣除發行成本和法律成本後，該計劃下還剩餘 6,800 萬美元可用於發行。

In July, Standard & Poor's Global Ratings affirmed a credit rating of A stable for American States Water and A+ stable rating for Golden State Water. These are some of the highest credit rating in the US investor-owned water utility industry. With that, I'll turn the call back to Bob.

7 月，標準普爾全球評級確認美國州水務公司信用評級為 A（穩定），金州水務公司信用評級為 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。這樣，我就把電話轉回給鮑伯了。

Thank you, Eva. On the regulatory front, as previously mentioned, 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. We have discussed the details of this rate case decision in our prior earnings releases and calls. We have begun preparation for our next water rate case expected to be filed by July 1, 2026.

謝謝你，伊娃。在監管方面，如前所述，今年 1 月，CPUC 就最近的水費一般費率案件發布了最終決定，該決定涵蓋 2025 年至 2027 年的費率。我們在先前的財報發布和電話會議中已經詳細討論過這項利率案件決定的細節。我們已開始準備下一場水費訴訟，預計將於 2026 年 7 月 1 日前提交。

As a reminder, the final decision ordered 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 known as the Monterey-Style Water Revenue Adjustment Mechanism, or MRAM and an incremental cost balancing account for supply cost effective January 1, 2025.

提醒一下，最終決定命令金州水務公司從在一般費率案件申請中再次提出的完全解耦機制和完全供水成本平衡帳戶過渡到一種稱為蒙特雷式水收入調整機制（MRAM）的修改後的費率調整機制以及一個用於供水成本的增量成本平衡帳戶，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 in revenues and earnings as a result of fluctuations in water consumption by its customers and changes in water supply source mix.

如果無法繼續實施完整的收入脫鉤機制和完整的供水成本平衡帳戶，由於客戶用水量的波動和供水來源組合的變化，公司未來的收入和利潤可能會出現波動。

Final decision adopted the company's MRAM rate design proposal, which authorizes Golden State Water to increase the revenue requirement in the fixed services charges to between 45% and 48% of the revenue requirement depending on the rate making area, representing approximately 65% and 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 Golden State Water 將固定服務費中的收入需求提高到收入需求的 45% 至 48% 之間，具體取決於費率制定區域，約佔水務公司固定成本總額的 65%。

It also approved Golden State Water's sales forecast and its request for the continuation of a sales reconciliation mechanism, which would allow the company to adjust its sales forecast throughout the general rate cycle to address significant fluctuations in consumption. In August 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's Central Coast region.

它還批准了金州水務公司的銷售預測及其關於繼續實施銷售調整機制的請求，該機制將允許該公司在整個一般費率週期內調整其銷售預測，以應對消費量的重大波動。2023 年 8 月，金州水務公司與一家開發商達成協議，該協議需經加州公共事業委員會 (CPUC) 批准，方可向該開發商購買位於加州中部海岸地區的一個開發案中的水和廢水系統資產。

This is a new planned community, which will serve up to approximately 1,300 customer connections at full build-out, which is anticipated to occur by 2034 under the current construction schedule, barring any future delays. On December 5, 2024, the CPUC approved a final decision granting Golden State Water's certificate of public convenience and necessity that establish rates for water and sewer services, including the company's recovery of the purchase price through future customer rates in this new San Juan Oaks and service area.

這是一個新建的規劃社區，建成後將為大約 1300 個用戶連線提供服務。按照目前的建設進度，預計到 2034 年，如果沒有未來的延誤，社區將全面建成。2024 年 12 月 5 日，CPUC 批准了一項最終決定，授予 Golden State Water 公共便利和必要性證書，該證書確定了水和污水服務的費率，包括該公司通過未來客戶費率收回在新的聖胡安橡樹服務區內的購買價格。

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 noncash transaction to Golden State Water recorded during the second quarter of 2025.

在加州公共事業委員會 (CPUC) 的批准並完成其他交割程序後，今年 5 月，雙方完成了交易的交割，其中包括開發商向 Golden State Water 支付的 1070 萬美元水和廢水系統資產的初始安裝和交付，這是一筆非現金交易，已於 2025 年第二季度記錄在案。

That resulted in an increase in the company's utility plant with corresponding increases in advances and contributions in aid of construction. 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.

這導致公司公用設施增加，相應的預付款和建設援助資金也隨之增加。未來，隨著供水和污水處理系統資產的建成並準備好接納新的連接，金州水務公司將分階段接管這些新增的供水和污水處理系統資產。

In addition, Golden State Water and the Public Advocates Office of the CPUC filed a joint motion with the CPUC in March to adopt a settlement agreement to authorize initial rates for water service in the new Sutter Pointe service area. Last week, the CPUC approved the settlement agreement in its entirety. The approval establishes initial water service rates for 2026 through 2028 and authorizes various balancing and memorandum accounts for this area.

此外，金州水務公司和加州公共事業委員會公共倡導辦公室於 3 月向加州公共事業委員會提交了一份聯合動議，要求通過和解協議，以授權新的薩特角服務區水務服務的初始費率。上週，加州公共事業委員會 (CPUC) 全面批准了和解協議。該批准確定了 2026 年至 2028 年的初始供水服務費率，並授權為該地區設立各種平衡帳戶和備忘錄帳戶。

This new planned community in Northern California will be built out over time with the first development expected to serve up to 3,800 customer connections during the next five years. And over the longer term, 20-plus years allows for the construction of 17,500 total dwelling units at full build-out, as part of the overall plan approved by the respective counting.

北加州這個新建的規劃社區將逐步建成，預計第一個開發案將在未來五年內為多達 3800 個客戶連線提供服務。從長遠來看，20 多年時間足以建成 17,500 套住宅單元，這是相關統計部門批准的總體規劃的一部分。

Turning our attention to slide 15. We present the growth in Golden State Water's adopted average water rate base from 2021 through 2025 which increased from $980.4 million in 2021 to $1,455.8 million in 2025. That represents a compound annual growth rate of 10.4% over the four-year period using 2021 as the base share for the calculation.

現在我們來看第15張投影片。我們展示了金州水務公司 2021 年至 2025 年採用的平均水費基數的成長情況，從 2021 年的 9.804 億美元增加到 2025 年的 14.558 億美元。以 2021 年為基準年計算，四年間的複合年增長率為 10.4%。

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 their filings upon completion that will contribute to a further growth in rate base in the second and third year of this cycle.

由於最近獲得了一般費率案件裁決，金州水務公司預計其費率基礎將在未來幾年內實現強勁且持續的成長。該裁決不僅授權該公司投資 5.731 億美元用於基礎設施建設。但除此之外，某些項目的資本投資，透過建議在專案完成後提交備案，將有助於本週期第二年和第三年費率基礎的進一步成長。

Turning our attention to Bear Valley Electric. As previously noted, in January of this year, the CPUC issued a final decision on the electric general rate case that set rates for 2023 through 2026. Like the water utility rate case, we have discussed the details of the electric rate case in our prior earnings releases and calls. We are working to file our next electric rate case in the first quarter of 2026.

接下來，我們將目光轉向熊谷電力公司。如前所述，今年 1 月，CPUC 就電力一般費率案作出最終決定，確定了 2023 年至 2026 年的費率。與水務費率案一樣，我們在先前的收益報告和電話會議中也討論過電力費率案的細節。我們正努力爭取在 2026 年第一季提交下一份電力費率申請。

This past April, Bear Valley Electric also implemented new base rates to recover the revenue requirement associated with $11.6 million of capital projects approved for recovery through advice layers. In July, Bear 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 Bear Valley electric application to construct solar energy generation and battery storage facilities.

今年四月，Bear Valley Electric 還實施了新的基本費率，以收回與諮詢層批准收回的 1,160 萬美元資本項目相關的收入需求。7 月，Bear Valley Electric 和 CPUC 公共倡議辦公室向 CPUC 提交了一份聯合動議，要求採納和解協議，以解決 Bear Valley Electric 申請建造太陽能發電和電池儲能設施的所有問題。

The solar energy generation project will help Bear Valley Electric meet approximately 18% of its renewables portfolio standard requirement. These facilities will also 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.

該太陽能發電計畫將幫助熊谷電力公司達到其再生能源組合標準要求的約 18%。這些設施還將幫助 Bear Valley Electric 透過本地發電資源的自供電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情況下提供能源轉移能力和額外容量。

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 to the proposed decision expected by the first quarter of 2026.

除其他事項外，和解協議授權建造這些設施，總成本為 2,800 萬美元，另加建造期間使用的資金補貼。和解協議尚待加州公共事業委員會批准，預計 2026 年第一季做出決定。

If approved, the costs associated with the projects would be recoverable in customer rates at the time the projects are completed and in service. Let's continue to ASUS, which contributed earnings of $0.19 per share in the third quarter of 2025 as compared to $0.11 per share for 2024. The increase was a result of higher construction activity due to the timing of when the work was performed.

如果獲得批准，與這些項目相關的成本將在項目完成並投入使用時從客戶費率中收回。我們繼續來看華碩，該公司在 2025 年第三季的每股收益為 0.19 美元，而 2024 年同期為 0.11 美元。由於施工時間安排，建築活動增加，導致價格上漲。

Management fee revenues resulting from the resolution of various economic price adjustments and lower interest expense from lower borrowing levels partially offset by higher overall operating expenses. During the quarter, ASUS made substantial progress on its construction activities with year-to-date earnings of $0.45 per share as compared to $0.44 per share for the same period of 2024.

管理費收入的增加，源自於各種經濟價格調整的解決以及借款水準降低帶來的利息支出減少，但部分被較高的整體營運費用所抵銷。本季度，華碩在建設活動方面取得了實質進展，年初至今每股收益為 0.45 美元，而 2024 年同期為每股 0.44 美元。

We continue to project ASUS to contribute $0.59 to $0.63 per share this year, representing an increase of 7.3% to 14.5% year-over-year. ASUS was awarded $28.7 million in new capital upgrade construction projects through the year-to-date September of this year to be completed through 2028. As we look ahead to 2026, we project that ASUS will contribute $0.63 to $0.67 per share.

我們繼續預測華碩今年每股收益將達到 0.59 美元至 0.63 美元，年增 7.3% 至 14.5%。截至今年9月，華碩已獲得2,870萬美元的新資本升級建設項目，這些項目將於2028年完成。展望 2026 年，我們預計華碩每股收益將達到 0.63 美元至 0.67 美元。

In addition, we remain confident that we can effectively compete for new military-based contract awards. I would like to turn our attention to dividends. In the third quarter, we raised our dividend by 8.3% and our quarterly dividend rate has grown at a compound annual growth rate or CAGR of 8.5% over the last five years.

此外，我們仍然有信心能夠有效地競爭新的軍事合約。我想把大家的注意力轉移到股利上。第三季度，我們將股息提高了 8.3%，過去五年，我們的季度股息率以 8.5% 的複合年增長率 (CAGR) 增長。

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. Our unrivaled dividend history since 1931 is something that the company is proud of and will continue to be an asset to our shareholders. 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.

這些成長符合我們長期實現股息複合年增長率超過 7% 的政策。自 1931 年以來，我們擁有無與倫比的分紅歷史，這是公司引以為傲的，並將繼續成為我們股東的寶貴資產。最後，我要感謝各位對美國州水務公司的關注，以結束我們事先準備好的發言。現在我們將把電話轉交給接線員，回答大家的問題。

(Operator Instructions)

（操作說明）

Ian Rapp, Bank of America.

伊恩‧拉普，美國銀行。

Hey, good morning, guys. Congrats on the good quarter. Good to talk to you.

嘿，各位早安。恭喜你們本季業績出色。很高興和你聊天。

Thanks, Ian. Good to talk to you.

謝謝你，伊恩。很高興和你聊天。

I'm just curious on ASUS, obviously, a good quarter and a good contract announcement there. If I look at the incremental contract, I'm just curious if you could provide a little color on the timing and when we might see that further into EPS over the -- I think you said '25 to '28 period.

我只是對華碩的情況比較好奇，他們今年的季度業績不錯，而且也發布了不錯的合約公告。如果我看一下增量合同，我只是好奇您能否就時間安排提供一些細節，以及我們何時可能會在——我想您說過是 2025 年至 2028 年期間——的 EPS 中看到這一點。

I'm just looking at the ASUS guidance for '26, and it looks like year-over-year a little bit down relative to the last three years. So just curious if that's just contracts rolling off or what the earnings power looks like going forward there?

我正在查看華碩 2026 年的業績預期，看起來與過去三年相比，同比略有下降。所以，我只是好奇這只是合約到期，還是說該公司未來的獲利能力如何？

Yes. I mean it's a pretty good step up, I think, in the earnings from $0.59 to $0.63 to the $0.63 to $0.67. It's -- but would just talk a little bit about the new capital upgrades. Those have been an important part of our overall performance and getting almost $29 million of new capital upgrades a pretty good year for us. Additionally, last year, we had a fairly significant amount of new capital upgrades relative to our history in the neighborhood of $55 million.

是的。我的意思是，我認為盈利從 0.59 美元到 0.63 美元到 0.63 美元，這是一個相當大的進步。不過，我還是想簡單談談新的資本升級吧。這些都對我們的整體業績起到了重要作用，我們獲得了近 2900 萬美元的新資本升級，這對我們來說是相當不錯的一年。此外，去年我們進行了相當可觀的新資本升級，金額約為 5500 萬美元，這與我們的歷史相比相當大。

So between those two, we've got a pretty good backlog to do new capital upgrade work in '26 and beyond. We also have the renewal and replacement work that we're doing. So it's, I would say, a pretty good year, recognizing we don't -- we're not adding any new bases in that number. It's -- I think, as you know, Ian, there's a transition period we typically have to go through once we were awarded a contract. And so the expectation is we likely won't have a new contract to deal with in 2026 just because of that transition period and where we think the government might be on privatizations.

因此，在這兩項工作之間，我們有相當多的積壓項目可以在 2026 年及以後進行新的資本升級工作。我們還有正在進行的更新和更換工作。所以，我認為今年還不錯，但同時也要意識到，我們並沒有——我們沒有在這個數字中增加任何新的基數。我想，正如你所知，伊恩，一旦我們獲得合同，通常都需要經歷一個過渡期。因此，我們預計 2026 年可能不會有新的合約需要處理，這主要是因為過渡期以及我們認為政府在私有化問題上的立場。

Okay. Got it. Yes, that makes a lot of sense. And then just on the new announcements or, I guess, the new approvals on the new customer connection growth, it looks like some robust activity around the new development projects. I'm just curious like if you look at these numbers, should we think about translating that -- those new customer connections to rate base based on looking at your Golden State rate base relative to your customer base or as a rule of thumb?

好的。知道了。是的，這很有道理。然後，就新發布的公告，或者說，關於新客戶連接增長的新批准而言，看起來圍繞新開發項目有一些強勁的活動。我只是好奇，如果你看一下這些數字，我們是否應該考慮將這些新客戶連接轉化為基於加州費率基礎相對於你的客戶基礎的費率基礎，或者根據經驗法則來轉換？

Or should we think about it more just on the capital that you've applied for? Just any color as to how we should think about the rate base translation would be helpful.

或者我們應該多考慮一下您申請的資金數量？任何關於我們應該如何考慮利率基準轉換的建議都會有所幫助。

Yes. I guess the one difficult thing with those new customers is it is a function of people wanting to buy homes and a developer signing them up to buy homes. And so looking at the potential there. It is under this incremental acquisition approach. So as phases are done, the company will buy the infrastructure.

是的。我認為對於這些新客戶來說，最困難的一點是，這取決於人們是否想買房，以及開發商是否願意與他們簽訂訂購房合約。所以，讓我們來看看那裡的潛力。這是在這種漸進式獲取方式下實現的。隨著專案階段的完成，公司將收購基礎設施。

I think the way to think about it maybe is the distribution infrastructure for these houses. And that's a pretty favorable activity for both the company and the developer because typically, the developer would have had to advance those facilities to the company to be then paid back over four years. So we will be acquiring new systems there. And I'm not exactly sure what to tell you about how you bake that into your rate base forecast because I do think the figuring out when those customers are going to be added is a challenge.

我認為或許應該從這些房屋的配送基礎設施的角度來思考這個問題。這對公司和開發商來說都是非常有利的，因為通常情況下，開發商必須先向公司提供這些設施，然後公司才能在四年內償還這些設施。所以我們將在那裡購置新的系統。至於如何將這些因素納入你的費率基礎預測中，我不太確定該如何告訴你，因為我認為確定這些客戶何時加入是一個挑戰。

Right. Okay. That's helpful color. And with that growth, maybe just one more if I could squeeze it in. Obviously, the big thematic these days is corporate M&A. As you look out at your growth profile, do you feel like gaining scale in California or other places would be beneficial? Or I'm really just curious to hear your thoughts on how you're thinking about M&A as investor attention kind of shifts toward it.

正確的。好的。這是個很有幫助的顏色。隨著我的成長，如果時間允許，也許還能再添一個。顯然，如今的大主題是企業併購。從你的發展規劃來看，你覺得在加州或其他地方擴大規模會有好處嗎？或者，我只是很想聽聽您對併購的看法，因為投資人的注意力正逐漸轉向併購領域。

Yes. I mean we were a bit surprised by the announcement of the merger between American Water and Essential Utilities, which I think that's what you're sort of asking about. However, we don't really think that merger will impact our company's strategic direction going forward. We are optimistic about the future of our company. The rate bases at both of our regulated utilities continue to grow at strong rates of growth, and our ASUS business also continues to grow at a good pace.

是的。我的意思是，我們對美國水務公司和Essential Utilities公司合併的消息感到有些意外，我想這就是你問的重點。然而，我們並不認為此次合併會對公司未來的策略方向產生影響。我們對公司的未來充滿信心。我們兩家受監管公用事業公司的費率基礎繼續以強勁的速度成長，我們的華碩業務也持續以良好的速度成長。

We noted in our presentation materials, the 10.4% four-year CAGR on our rate base for 2025 -- sorry, 2022 to 2025 at Golden State Water in our presentation and Bear Valley Electric's rate base has been growing at a faster rate than that. And then, of course, we will see additional customer growth, we believe, through the two new developments that we've mentioned, San Juan Oaks and Sutter Pointe over time.

我們在簡報資料中指出，2025 年（抱歉，應該是 2022 年至 2025 年）金州水務公司費率基數的四年複合年增長率為 10.4%，而熊谷電力公司的費率基數增長速度更快。當然，我們相信，隨著時間的推移，隨著我們提到的兩個新開發項目——聖胡安橡樹和薩特角——的建成，客戶數量將會進一步增長。

So I think generally, we're happy with our growth plan. That's not to say if a good deal came along. We wouldn't try to buy some systems that are in places where we believe the regulatory framework is neutral to positive. Does that answer your question?

所以總的來說，我認為我們對我們的成長計劃感到滿意。這並不代表一定能找到划算的交易。我們不會嘗試購買那些我們認為監管框架中立或積極的地區的系統。這樣回答了你的問題嗎？

Yes, that's super helpful. And that all makes a lot of sense. I appreciate you guys walking me through and congrats again on the quarter and I'll echo your confidence on the growth rate. It looks promising.

是的，這非常有幫助。這一切都很有道理。感謝你們的詳細講解，再次恭喜你們本季取得佳績，我也對成長率充滿信心。看起來很有希望。

Thank you.

謝謝。

Angie Storozynski, Seaport

安吉·斯托羅津斯基，海港

Thank you guys. Okay. So you added your rate base projection for 2025 on slide 15. It is actually a little bit lower than I would have implied it from just the pace of CapEx less depreciation. I mean, Eva is there any reason why again, just assuming that you're spending about, I don't know, $190 million, right, and around $30 million something of the depreciation that would have implied a slightly higher rate base for '25 versus '24, no?

謝謝大家。好的。所以你在第 15 頁投影片上新增了 2025 年的利率基準預測。實際上，根據資本支出速度減去折舊後，這個數字比我預想的要低。我的意思是，伊娃，假設你花了大約，我不知道，1.9億美元，對吧，還有大約3000萬美元的折舊費，這意味著2025年的稅率基數比2024年略高，對吧？

So Angie, we talk about -- we have tons of advice letter yet to be filed toward end of this year in the rate case decision, we will authorize about $76 million of advice letter that we can file by end of this year to get new rates effective 1/1 next year. So we are preparing the documentation and close the job and to get the final number in Q4. So we anticipate that should be approved for rate effect is 1/1 of next year. So after 2025, those actual advice letter project amount will be added to the rate base. So that's maybe something --

所以安吉，我們談到——在今年年底的費率案件裁決中，我們還有大量的諮詢函需要提交，我們將授權在今年年底前提交約 7600 萬美元的諮詢函，以便從明年 1 月 1 日起生效新的費率。所以我們正在準備相關文件，完成這項工作，以便在第四季度獲得最終結果。因此我們預計該方案將於明年 1 月 1 日獲得批准，生效日期為明年 1 月 1 日。因此，2025 年之後，這些實際的諮詢信項目金額將計入費率基數。所以這或許算是一件好事吧。--

And that $573 million, that number, does that include the advise letters? No --

那5.73億美元，這個數字，包括諮詢信的費用嗎？不--

Does not including the advice letter that was started to do prior to the rate case cycle. So there are $58 million I would think advice letter coming from the prior rate case that were allowed to added to rate starting next year. So in total, $573 million, I believe, including $17 million of new advice letter project, but we have another $58 million project that come in from the prior rate case. So both of which can be added to our rate base starting next year.

不包括在費率案件週期之前開始撰寫的諮詢信。因此，我認為有 5800 萬美元的諮詢函來自先前的費率案件，這些款項獲準從明年開始計入費率。所以總共是 5.73 億美元，我相信，其中包括 1700 萬美元的新諮詢信項目，但我們還有來自先前費率案件的另一個 5800 萬美元的項目。因此，這兩項都可以從明年開始納入我們的費率基礎。

Yes. I mean -- and again, I don't want to nickel and dime you here, but it's just that, that would imply this $573 million number, right, that I'm spending about, again, assuming that it's ratable, $190 million a year, right, if I divide it just by three simple math and then subtract $30 million or say $35 million, that would still suggest that, that rate base should have grown by about $150-something million versus the $100 million that is shown of a growth between '24 and '25. So is it deferred taxes, again, just like simplistically.

是的。我的意思是——我再說一遍，我不想在這裡斤斤計較，但就是，這意味著我每年花費的5.73億美元，對吧？假設它是可徵收的，那麼每年大約是1.9億美元，對吧？如果我簡單地除以3，然後減去3000萬美元或3500萬美元，這仍然表明，該稅基應該增長了大約1.5億美元，而不是2024年至2025年間顯示的1億美元增長。所以，這又和之前簡單來說，是遞延稅的問題嗎？

Our actual spending is about that amount. I was just talking about the adopted rate base.

我們實際的支出大約就是這個金額。我剛才說的就是採用的費率基數。

Okay.

好的。

We are spending a little ahead of the rate cycle because we do have an earnings test in California that we have to meet. And you are predisposed to try to spend early because it's a 13-month average. So that may be contributing a little bit. I don't know, Eva, what do you --

我們目前的支出略微超前於利率週期，因為我們在加州有一個獲利測試需要達到。而且，由於平均週期為 13 個月，所以你傾向於提前消費。所以這可能就起到了一定的作用。我不知道，伊娃，你覺得呢？--

Yes, I think that will definitely contribute. And we want to make sure we can finish advice letter project so we can file this year. So we've been spending the $76 million that authorized us to file.

是的，我認為這肯定會有幫助。我們希望確保能夠完成建議信項目，以便今年能夠提交申請。所以，我們一直在花掉那筆授權我們提交申請的7600萬美元。

And that wouldn't count towards the right base? Because my point is that the rate base is lower than it would have been implied from the approved CapEx minus depreciation.

那不算是正確的基數嗎？因為我的觀點是，利率基數低於根據已批准的資本支出減去折舊所隱含的利率基數。

Yes, it will count as the actual rate base. It's just not -- currently not in the revenue requirement based on the adopted rate base. We'll have a new rate next year to cover what we spent so far. Does that makes sense?

是的，它將被計入實際利率基數。目前，根據已採用的費率基礎，這還不是收入需求的一部分。明年我們將實施新的費率，以彌補我們迄今為止的支出。這樣說得通嗎？

Yes. Okay. And even though you have gone through the GRC for the water business, you will not show the projected rate base for '26 and '27?

是的。好的。即使你們已經完成了水務業務的GRC流程，你們仍然不願公佈2026年和2027年的預計費率基數？

We will show that next time for sure, because we want to make sure we have the exact number of what we can file by end of this year for those advice letter even though we are also right $76 million, not sure that's exactly the number will be in the adopted rate base. So we're very conservative. We like to have a pretty certain number before announce (inaudible). So definitely, we'll announce that next quarter earnings.

下次我們一定會公佈，因為我們想確保在今年年底前能夠準確地統計出這些諮詢函的申報數量，儘管我們估計的7600萬美元也是正確的，但我們不確定這是否就是最終採用的稅率基數。所以我們非常保守。我們喜歡在宣布之前先確定一個比較確切的數字。（聽不清楚）所以，我們肯定會在下個季度公佈收益情況。

Okay. Okay. I've been asking. So I'm just repeating the question. Okay. I have --

好的。好的。我一直在問。所以我只是重複這個問題。好的。我有--

Yes, I can probably share with you the (inaudible) number for next year, but I don't have the information right now. But it's public information, so I can shoot you an e-mail, Angie.

是的，我或許可以告訴你明年的（聽不清楚）數字，但我現在還沒有相關資訊。但這是公開訊息，所以我可以給你發封郵件，安吉。

Awesome, thank you so much. Thanks guys. Thank you, bye.

太棒了，非常感謝。謝謝各位。謝謝，再見。

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

我們的問答環節到此結束。我謹將會議交還給鮑伯‧史普勞爾斯，請他作總結發言。

Thank you, Bailey. Just want to wrap up by thanking you all for your participation today, letting you know that we look forward to speaking with you next quarter and then wishing all of you a happy holiday season. Thank you very much.

謝謝你，貝利。最後，我要感謝大家今天的參與，期待下季與大家再次交流，並祝大家節日快樂。非常感謝。

The conference has now concluded. You may disconnect.

會議已經結束。您可以斷開連線。