American States Water Company (AWR) 2026 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 2026 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 13 on the company's website, www.aswater.com. The slides that the company will be referring to are also available on the website.

各位女士、先生，感謝您稍候。歡迎參加 American States Water Company（美國州水務公司）就公司 2026 年第二季業績所舉行的電話會議。本次通話將被錄音。若您希望收聽本次通話的重播，將於今日下午美東時間 5:00 開始，並於 8 月 13 日前可在公司網站 www.aswater.com 收聽。公司在本次會議中將引用的簡報投影片亦可於該網站取得。

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.

今日由 American States Water Company 出席簡報者為：總裁兼執行長 Bob Sprowls，以及財務資深副總裁兼財務長 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.

提醒各位，本次電話會議中討論的若干事項，可能構成 1995 年《私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）所定義之「前瞻性陳述」。前瞻性陳述並非對任何結果、財務成果、活動水準、績效或成就的保證或承諾，並提醒聽眾切勿對其過度依賴。

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.

前瞻性陳述受估計與假設以及已知與未知之風險、不確定性及其他因素影響。聽眾應查閱公司最近向美國證券交易委員會（Securities and Exchange Commission）申報之 Form 10-K 與 Form 10-Q 中，對可能影響前瞻性陳述之公司風險與不確定性的說明。

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 in the United States and constitute non-GAAP financial measures. 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.

本次電話會議所作之陳述僅截至本次通話日期有效；除法律要求外，公司不承擔任何公開更新或修訂任何前瞻性陳述之義務。此外，本次電話會議將討論若干未依照美國一般公認會計原則（GAAP）編製之衡量指標，屬於非 GAAP 財務衡量（non-GAAP financial measures）。該等非 GAAP 財務衡量係由合併財務資訊推導而來，但未呈列於依 GAAP 編製之財務報表中。更多細節請參閱新聞稿。

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

現在，我將把電話會議交給 American States Water Company 總裁兼執行長 Bob Sprowls。

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

謝謝你，Bailey。歡迎各位，並感謝大家今天加入我們。我將先就本季表現進行說明。Eva 會說明部分財務細節，接著我將以監管動態、ASUS 與股利的最新進展作結，然後我們將回答各位的提問。

We are pleased to report an excellent quarter with financial results that reflected strong execution across our business. The company's performance highlights our effective management and the constructive regulatory framework in which we operate.

我們很高興報告本季表現優異，財務結果反映出我們在各項業務上的強勁執行力。公司的表現凸顯我們有效的管理能力，以及我們所處之具建設性的監管架構。

Our reported earnings per share for the second quarter was $1.09 compared to $0.87 for the same quarter in 2025, an increase of $0.22 or 25.3%. All three of our operating business segments performed well and reported year-over-year increases resulting from new customer rates implemented in 2026 at our regulated utilities to cover our infrastructure investments and an increase in construction activities at our Contracted Services segment.

我們第二季每股盈餘（EPS）為 1.09 美元，較 2025 年同期的 0.87 美元增加 0.22 美元，增幅 25.3%。我們三個營運業務部門皆表現良好，年對年均呈現成長，主要來自 2026 年於受監管公用事業實施的新客戶費率（用以涵蓋我們的基礎建設投資），以及合約服務（Contracted Services）部門施工活動增加。

In particular, the earnings growth was largely driven by the Water segment's strong second quarter performance that was led by new customer rate increases effective January 1, 2026. A 4% increase in water consumption and a lower reliance on purchased water further supported the quarter's solid performance compared to the same quarter in 2025.

尤其是，本次獲利成長主要由供水（Water）部門第二季的強勁表現所帶動，關鍵因素為自 2026 年 1 月 1 日起生效的新客戶費率調升。用水量增加 4% 以及對外購水的依賴降低，也進一步支撐本季相較 2025 年同期的穩健表現。

However, it is uncertain whether these favorable conditions experienced in the second quarter will continue through the remainder of 2026 or if their positive earnings impact will reverse as we will discuss later.

然而，目前尚不確定第二季所出現的這些有利條件是否會在 2026 年剩餘期間持續，或其對獲利的正面影響是否會如我們稍後所述而出現反轉。

I'm also pleased to report that last week, our Board approved a significant dividend increase of 8.2%, resulting in an annualized dividend rate of [$2.182] per share. This 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 enables us to provide safe and reliable services to our customers and return value to our shareholders.

我也很高興報告，上週董事會核准大幅調升股利 8.2%，使年化股利率達到每股 [$2.182] 美元。此舉反映董事會對公司達成長期、可持續獲利成長能力的信心。我們相信，持續成長的股利有助於公司吸引資本投入基礎建設投資，使我們能為客戶提供安全且可靠的服務，並為股東創造價值回報。

American States Water has paid dividends every year since 1931, increasing the dividends received by shareholders each calendar year now for 72 consecutive years, which places it in an exclusive group of companies on the New York Stock Exchange that have achieved that result.

American States Water 自 1931 年起每年皆發放股利，且至今已連續 72 個曆年提高股東所獲股利，使其躋身紐約證券交易所中達成此一成果的少數公司之列。

We continue to seek opportunities to expand our regulated water operations. In July, Golden State Water Company and the Public Advocates Office at the California Public Utilities Commission, or Cal Advocates, filed a joint settlement to approve the acquisition of an existing water system that serves almost 900 customer connections located in the city of Norwalk in Los Angeles County.

我們持續尋求擴大受監管供水業務的機會。7 月，Golden State Water Company 與加州公用事業委員會（California Public Utilities Commission）之公共倡議辦公室（Public Advocates Office，或 Cal Advocates）共同提交聯合和解案，以核准收購一套既有供水系統；該系統服務近 900 個客戶接管，位於洛杉磯郡諾沃克市（Norwalk）。

Our regulated utilities are on pace to invest $185 million to $220 million in infrastructure investments this year as we continue to invest in our water, wastewater and electric utility systems for the long-term benefit of our customers. We filed a new electric general rate case in January for customer rates covering 2027 through 2030 and a new water general rate case in July, covering rates for 2028 through 2030.

我們的受監管公用事業今年預計將投入 1.85 億至 2.20 億美元進行基礎建設投資，持續投資於供水、污水處理及電力公用事業系統，以長期造福客戶。我們於 1 月提出新的電力一般費率案（electric general rate case），涵蓋 2027 至 2030 年的客戶費率；並於 7 月提出新的供水一般費率案（water general rate case），涵蓋 2028 至 2030 年的費率。

We successfully completed our at-the-market equity offering program in June, reaching the maximum aggregate offering capacity of $200 million in gross proceeds raised since the program was first established in February 2024. We have no plans to issue additional equity through at least the end of 2029 to support our current operations.

我們已於 6 月成功完成「隨行就市」（at-the-market）股權發行計畫，達到自該計畫於 2024 年 2 月首次建立以來，累計最高發行額度 2 億美元的募資總額（毛收益）。為支持目前營運，我們至少在 2029 年底之前沒有再發行額外股權的計畫。

Lastly, we were once again recognized on TIME's list of Best Companies in 2026 and we're one of only two investor-owned water utilities on the list. This recognition reflects the company's disciplined execution of its strategic growth plans, strong financial performance, commitment to our workforce and robust environmental, social responsibility and governance practices.

最後，我們再次入選《TIME》2026 年最佳公司榜單，且我們是榜單上僅有的兩家投資人持有（investor-owned）的供水公用事業之一。此項肯定反映公司在策略性成長計畫上的紀律執行、強勁的財務表現、對員工隊伍的承諾，以及健全的環境、社會責任與公司治理（ESG）實務。

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

接下來，我將把電話會議交給 Eva，請她說明獲利與流動性。

Thank you, Bob, and hello, everyone. Let me start on slide 7. As Bob mentioned, we delivered excellent financial results this quarter. Our consolidated earnings were $1.09 per share compared to $0.87 per share for the second quarter of 2025. Our water utility, Golden State Water, reported earnings of $0.91 per share compared to $0.73 per share for the second quarter of last year.

謝謝你，Bob，各位好。讓我從第 7 張投影片開始。如 Bob 所提到，我們本季交出非常出色的財務成果。我們合併每股盈餘為 1.09 美元，較 2025 年第二季的 0.87 美元增加。我們的供水公用事業 Golden State Water 每股盈餘為 0.91 美元，較去年第二季的 0.73 美元增加。

The $0.18 per share increase was largely due to new water rates for 2026, including additional revenues associated with approved advice letter capital project in late 2025 and higher gains generated on investments for a retirement plan, partially offset by an increase in water supply costs, interest expense net of interest income and the effective income tax rate. Lastly, there was a decrease in earnings of $0.02 per share due to the dilutive effect from the share issuances under the parent company's at-the-market offering program.

每股增加的 0.18 美元主要來自 2026 年新的供水費率，包括 2025 年底核准之建議函（advice letter）資本專案所帶來的額外收入，以及退休計畫投資所產生的較高收益；部分被供水成本、利息費用（扣除利息收入後）及有效所得稅率上升所抵銷。最後，由於母公司隨行就市發行計畫下的股票發行造成稀釋效應，每股盈餘另減少 0.02 美元。

Our Electric segment's reported earnings were $0.04 per share for the quarter as compared to $0.03 per share for the same quarter last year. The $0.01 per share increase is primarily related to rate increases, partially offset by higher overall operating and interest expenses. Earnings from ASUS were $0.16 per share for the quarter compared to $0.13 per share for the same quarter last year, an increase of $0.03 per share, largely due to higher construction activities, an increase in management fee revenues from the resolution of various economic price adjustments and lower interest expenses, partially offset by an increase in operating expenses.

我們電力事業部門本季公告每股盈餘為 0.04 美元，較去年同期的每股 0.03 美元增加。每股增加 0.01 美元主要與費率調升有關，但部分被整體營運費用與利息費用上升所抵銷。ASUS 本季每股盈餘為 0.16 美元，較去年同期的每股 0.13 美元增加 0.03 美元，主要因施工活動增加、因解決各項經濟價格調整而帶動管理費收入增加，以及利息費用降低；但部分被營運費用增加所抵銷。

This slide shows that consolidated revenue for the second quarter increased by $18.2 million compared to the same quarter of 2025. Revenues increased by $11.4 million in the Water segment and $700,000 in the Electric segment, driven largely by the new 2026 rates and additional revenues generated from advice letter projects approved in 2025. Revenues from ASUS increased $6.2 million, primarily due to higher construction activities and management fee revenues.

本頁顯示，第二季合併營收較 2025 年同期增加 1,820 萬美元。水務部門營收增加 1,140 萬美元，電力部門增加 70 萬美元，主要受 2026 年新費率以及 2025 年核准之建議函（advice letter）專案所帶來的額外收入所驅動。ASUS 營收增加 620 萬美元，主要因施工活動增加及管理費收入提升。

Turning to slide 9. Looking at supply costs first. The increase in supply costs primarily related to our water utility segment. Due to an overall increase in per unit water supply cost covers in rates and an increase in the production of water resulting from higher customer consumption, partially offset by the favorable impact of an actual water supply source mix that included less purchased water during the quarter compared to the same period last year due to wells being brought back online in certain customer service areas.

接著看第 9 頁。先看供應成本。供應成本的增加主要與我們的水務公用事業部門有關，原因包括：費率中涵蓋的單位供水成本整體上升，以及因客戶用水量提高而使產水量增加；但部分被實際供水來源組合帶來的有利影響所抵銷——本季相較去年同期購水量較少，係因部分客戶服務區域的水井重新恢復運轉所致。

The remaining consolidated operating expenses increased by $4.6 million compared to 2025, largely due to higher ASUS construction expenses from an increase in construction activity and an overall increase in operating expenses.

其餘合併營運費用較 2025 年增加 460 萬美元，主要因 ASUS 施工活動增加而使施工費用上升，以及整體營運費用增加。

Interest expense net of interest income also increased largely from capitalization of debt costs related to certain advice letter projects approved by the CPUC in the latest water GRC effective January 1, 2025, which was recorded in 2025 with no similar items this year and reduced interest income from a decrease in regulatory asset balances for both regulated utilities.

扣除利息收入後的利息費用亦增加，主要因與 CPUC 在最新水務一般費率案件（GRC）中核准之部分建議函專案相關的債務成本資本化；該項目自 2025 年 1 月 1 日起生效並於 2025 年入帳，而今年無類似項目；另因兩家受監管公用事業之監管資產餘額下降而導致利息收入減少。

Lastly, other income increased during the quarter due to higher gains generated from investment to fund a retirement plan. Slide 10 shows the EPS bridge comparing reported EPS for the second quarter of 2026 against last year's second quarter.

最後，本季其他收入增加，係因用於資助退休計畫之投資所產生的收益增加。第 10 頁顯示每股盈餘（EPS）橋接，將 2026 年第二季公告 EPS 與去年第二季進行比較。

Consolidated earnings for the six months ended June 2026 were $1.86 per share compared to $1.57 per share for the same period in 2025, an increase of $0.29 per share. As Bob mentioned, all three of our operating business unit segments performed very well and reported year-over-year increases.

截至 2026 年 6 月止六個月的合併每股盈餘為 1.86 美元，較 2025 年同期的每股 1.57 美元增加 0.29 美元。如 Bob 所提，我們三個營運事業單位部門表現皆非常出色，並呈現年增。

Turning to liquidity on this slide. Net cash provided by operating activities were $116.6 million for year-to-date 2026 as compared to $109.6 million for the same period last year. The increase is largely related to new rates implemented at our regulated utilities as well as various approved surcharges and additional revenues from approved advice letter projects. In addition, the increase also results from PFAS litigation proceeds received during the year.

接著看本頁的流動性。2026 年截至目前（年初至今）營業活動提供之淨現金為 1.166 億美元，較去年同期的 1.096 億美元增加。增加主要與受監管公用事業實施新費率、各項已核准附加費，以及已核准建議函專案帶來的額外收入有關。此外，增加亦來自本年度收到的 PFAS 訴訟款項。

For investing activities, our regulated utility invested $91.7 million on company-funded capital projects during the first half of the year, and we expect company-funded capital expenditures to total between $185 million to $200 million for the full year 2026.

在投資活動方面，我們的受監管公用事業於上半年在公司自籌資金的資本專案上投資 9,170 萬美元；我們預期 2026 年全年公司自籌資金的資本支出總額將介於 1.85 億至 2.00 億美元。

For financing activities, American States Water under at-the-market offering program raised proceeds of $39.9 million during the first half of the year, net of issuance costs and legal costs. As Bob mentioned earlier, we have completed the equity offering program and do not expect to issue additional equity through at least the end of 2029.

在籌資活動方面，American States Water 透過其按市價發行（at-the-market）計畫於上半年募集 3,990 萬美元款項（已扣除發行成本與法律費用）。如 Bob 先前所述，我們已完成該股權發行計畫，並預期至少至 2029 年底前不會再發行額外股權。

Last month, Standard & Poor's affirmed the company's strong credit ratings of A for American States Water with a stable outlook and A+ for Golden State Water also with a stable outlook. These are some of the highest credit ratings in the US investor-owned water utility industry.

上個月，標準普爾（Standard & Poor's）確認本公司強勁的信用評等：American States Water 為 A 且展望穩定；Golden State Water 為 A+ 且展望同為穩定。這些是美國投資人持有型水務公用事業產業中最高等級的信用評等之一。

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

接下來，我把電話會議交回給 Bob。

Thank you, Eva. Turning now to updates on the regulatory front, starting with the latest water general rate case application that set new rates for the years 2025 through 2027. In December, Golden State Water received approval from the CPUC to implement its full second year and other rate increases, which were effective January 1 of this year. This approval results in higher adopted operating revenues less water supply costs for the full year 2026 of $32 million compared to adopted operating revenues less water supply cost for 2025.

謝謝你，Eva。接著更新監管面進展，先從最新的水務一般費率案件（general rate case）申請談起，該案為 2025 至 2027 年設定新費率。12 月，Golden State Water 獲 CPUC 核准實施其完整第二年及其他費率調升，並於今年 1 月 1 日生效。此核准使 2026 年全年之核定營運收入扣除供水成本後，較 2025 年核定營運收入扣除供水成本後增加 3,200 萬美元。

Included in the 2026 increase is nearly $11 million related to advice letter capital projects. The advice letter projects were added to the adopted rate base for inclusion in the revenue requirement effective January 1, 2026. In comparison, the net change in adopted operating revenues less water supply costs in 2025 over 2024 adopted levels was $23 million.

2026 年的增幅中，近 1,100 萬美元與建議函資本專案有關。這些建議函專案被納入核定之費率基礎（rate base），以納入自 2026 年 1 月 1 日起生效的收入需求（revenue requirement）。相較之下，2025 年相對於 2024 年核定水準之核定營運收入扣除供水成本後的淨變動為 2,300 萬美元。

As a reminder, due to the CPUC's required use of a modified revenue decoupling mechanism and an incremental water supply cost balancing account effective January 1, 2025, Golden State Water's earnings face future volatility from consumption fluctuations and water supply mix changes.

提醒一下，由於 CPUC 要求自 2025 年 1 月 1 日起採用修正後的收入脫鉤機制（modified revenue decoupling mechanism）以及增量供水成本平衡帳戶（incremental water supply cost balancing account），Golden State Water 的獲利未來將面臨因用水量波動與供水組合變化而產生的波動性。

As I mentioned earlier, Golden State Water's second quarter earnings benefited from higher customer consumption of 4% and a favorable water supply source mix that included less purchased water than in the same period of 2025. This improvement in the supply mix was due in part to certain wells that have been temporarily offline during the first quarter, returning to service in the second quarter.

如我先前提到，Golden State Water 第二季獲利受惠於客戶用水量增加 4%，以及較 2025 年同期購水量更少的有利供水來源組合。供水組合改善部分原因在於第一季暫時停用的部分水井於第二季恢復供水。

It remains uncertain whether these favorable conditions in the second quarter will continue through the remainder of 2026 or if their positive earnings impact will reverse. Customer consumption can fluctuate due to factors like climate change, conservation efforts and weather conditions.

目前仍不確定第二季的有利條件是否會延續至 2026 年剩餘期間，或其對獲利的正面影響是否會反轉。客戶用水量可能因氣候變遷、節水措施與天候狀況等因素而波動。

For example, El Nino or La Nina weather events could significantly affect precipitation levels and outdoor water use. Additionally, water supply mix changes can occur due to unforeseen groundwater quality issues and changes in the operating conditions of groundwater basins and associated pumping facilities. Any of these factors could have a direct impact on Golden State Water's future net earnings.

例如，聖嬰（El Nino）或反聖嬰（La Nina）等天氣事件可能顯著影響降雨量與戶外用水。此外，供水組合也可能因不可預見的地下水水質問題，以及地下水盆地與相關抽水設施之營運條件變化而改變。上述任何因素都可能直接影響 Golden State Water 未來的淨利。

Next, we review pending and future regulatory proceedings at the Water segment. On July 1, Golden State Water filed a general rate case application for all of its water regions and the general office. This general rate case will determine new water rates for the years 2028 through 2030. Golden State Water requested capital budgets of approximately $1 billion for the three-year rate cycle and among other things, requested to reinstate the regulatory mechanisms for full revenue decoupling and a full supply cost balancing account for water supply. The decision in this rate case is scheduled for the fourth quarter of 2027.

接下來，我們檢視水務部門目前待決及未來的監管程序。7 月 1 日，Golden State Water 就其所有供水區域及總部提出一般費率案件申請。該一般費率案件將決定 2028 至 2030 年的新水費費率。Golden State Water 申請在三年費率循環期間的資本預算約 10 億美元，並在其他事項中，要求恢復完整收入脫鉤（full revenue decoupling）及針對供水成本的完整供應成本平衡帳戶（full supply cost balancing account）等監管機制。此費率案件的裁決預計於 2027 年第四季作出。

Also, as mentioned on prior earnings calls, the CPUC approved a request by Golden State Water and three other large investor-owned California water utilities to defer the cost of capital application by another year. CPUC's approval postponed the filing date of the application by one year until May 1, 2027, with a corresponding effective date of January 1, 2028. The CPUC also approved the joint party's request to leave the current water cost of capital mechanism in place through the one-year deferral period.

此外，如同先前的財報電話會議所提及，加州公用事業委員會（CPUC）核准 Golden State Water 與另外三家大型加州投資人持有之自來水公用事業公司提出之申請，將資本成本（cost of capital）申請案再延後一年。CPUC 的核准將該申請案的提報日期延後一年至 2027 年 5 月 1 日，並相應將生效日訂為 2028 年 1 月 1 日。CPUC 亦核准聯合當事方之請求，在為期一年的延後期間內維持現行的自來水資本成本機制不變。

Golden State Water's current authorized rate of return on rate base is 7.93% based on its weighted average cost of capital, which includes a return on equity of 10.06% and a capital structure with 57% equity and 43% debt, which will continue in effect through December 31, 2027.

Golden State Water 目前核准之費率基礎（rate base）報酬率為 7.93%，係依其加權平均資本成本計算，其中包含 10.06% 的股東權益報酬率（return on equity），以及 57% 權益、43% 負債的資本結構；上述將持續有效至 2027 年 12 月 31 日。

Furthermore, as I previously highlighted, on July 13, Golden State Water and Cal Advocates filed a joint motion seeking approval of the settlement agreement to acquire a water system in Norwalk, California. If the settlement agreement is approved by the CPUC, system will be incorporated into one of Golden State Water's existing ratemaking areas and will result in an increase to water revenues. A proposed decision is expected in the fourth quarter of this year.

此外，如我先前所強調，7 月 13 日 Golden State Water 與 Cal Advocates 提交聯合動議，尋求核准收購加州諾沃克（Norwalk）一套供水系統之和解協議。若該和解協議獲 CPUC 核准，該系統將併入 Golden State Water 現有的某一費率制定區（ratemaking area），並將帶動自來水營收增加。預計將於今年第四季出具擬議決定（proposed decision）。

Turning our attention to slide 15. We present the growth in Golden State Water's adopted average water rate base from 2021 through 2026, which increased from $980.4 million in 2021 to $1,673.2 million in 2026. That represents a compound annual growth rate of 11.3% over the five-year period. Golden State Water anticipates a robust and sustained growth in its rate base over the next few years. The annual increase in rate base reflects, among other factors, the net effect of capital investments less depreciation.

接著請看第 15 頁投影片。我們呈現 Golden State Water 於 2021 年至 2026 年間核定之平均自來水費率基礎（adopted average water rate base）成長情形，從 2021 年的 9.804 億美元增加至 2026 年的 16.732 億美元。這代表在五年期間的年複合成長率為 11.3%。Golden State Water 預期未來幾年其費率基礎將維持強勁且持續的成長。費率基礎的年度增加反映了多項因素，其中包括資本投資扣除折舊後的淨影響。

The higher increase in 2026 as compared to the increases in the prior years represents the effects of the advice letter projects completed prior to 2026 that were included in rate base effective January 1, 2026. Please see the first footnote at the bottom of the slide.

2026 年相較於前幾年增幅較高，係反映 2026 年之前完成之建議函（advice letter）專案的影響，該等專案自 2026 年 1 月 1 日起納入費率基礎。請參閱投影片底部的第一則註腳。

The affordability of our customer bills is always something that our company takes very seriously. We remain focused on balancing our need for continued investment in system reliability and resiliency with the impact on customer bills. CPUC evaluates affordability using metrics such as the affordability ratio, which measures essential utility bills relative to household income, particularly for low-income customers.

客戶帳單的可負擔性一直是本公司極為重視的事項。我們仍專注於在持續投資以提升系統可靠性與韌性之需求，與對客戶帳單的影響之間取得平衡。CPUC 以可負擔性比率等指標評估可負擔性；該比率衡量基本公用事業帳單相對於家庭收入的程度，特別是針對低收入客戶。

The majority of our water service areas perform well under the CPUC's affordability metrics. For a very few smaller service areas where affordability challenges exist, we are either implementing or have proposed measures to address those concerns. Our electric customer bills and affordability metrics remain within a manageable range.

我們大多數供水服務區在 CPUC 的可負擔性指標下表現良好。對於極少數存在可負擔性挑戰的較小服務區，我們正在實施或已提出措施以因應相關疑慮。我們的電力客戶帳單與可負擔性指標仍維持在可控範圍內。

Now turning our attention to Bear Valley Electric, which continues to be a strong contributor to the company's results. The current general rate case set rates for 2023 through 2026. In January, Bear Valley Electric implemented new rates for 2026, which is the last year of its four-year rate cycle. There were also additional increases in revenues in 2025 and 2026 associated with $27.9 million of capital projects, including AFUDC approved for recovery through advice letters that were completed and placed in service.

現在把焦點轉向 Bear Valley Electric，其持續為公司業績作出重要貢獻。現行一般費率案（general rate case）已設定 2023 年至 2026 年的費率。今年 1 月，Bear Valley Electric 實施 2026 年新費率，這是其四年費率週期的最後一年。此外，2025 年與 2026 年亦因 2,790 萬美元的資本專案而帶來額外營收增加，其中包括已完成並投入使用、且透過建議函核准回收之建設期間利息（AFUDC）。

In January of this year, Bear Valley Electric filed a general rate case application that will determine new electric rates for the years 2027 through 2030. Among other things, Bear Valley Electric requested capital budgets of approximately $133 million for the four-year rate cycle and another approximately $17 million plus AFUDC for capital projects to be filed for revenue recovery through advice letters when the projects are completed. A return on equity of 11.30%, and embedded cost of debt of 5.92%, capital structure of 60% equity and 40% debt and a return on rate base of 9.15%.

今年 1 月，Bear Valley Electric 提交一般費率案申請，將決定 2027 年至 2030 年的新電價。除其他事項外，Bear Valley Electric 申請在四年費率週期內約 1.33 億美元的資本預算，另申請約 1,700 萬美元加計 AFUDC 的資本專案，待專案完成後將透過建議函申請營收回收。其申請內容包括：股東權益報酬率 11.30%、內含負債成本（embedded cost of debt）5.92%、資本結構為 60% 權益與 40% 負債，以及費率基礎報酬率（return on rate base）9.15%。

Let's continue to ASUS, which contributed earnings of $0.16 per share for the quarter, which was $0.03 per share higher than last year. This was a result of an increase in construction activities, higher management fee revenues resulting from the resolution of various economic price adjustments and lower interest expense from lower borrowing levels and lower average interest rates, partially offset by higher overall operating expenses.

接著談到 ASUS，本季每股盈餘貢獻為 0.16 美元，較去年增加 0.03 美元。此係由於施工活動增加、因解決各項經濟價格調整而帶動管理費收入提高，以及因借款水位較低與平均利率較低而使利息費用下降；但部分被整體營運費用上升所抵銷。

ASUS is projected to contribute $0.63 to $0.67 per share this year. In addition, we remain confident that we can effectively compete for new military base contract awards in the future based on our expertise and strong reputation with the military.

預期 ASUS 今年將貢獻每股 0.63 至 0.67 美元。此外，基於我們的專業能力以及在軍方建立的良好聲譽，我們仍有信心未來能有效競爭新的軍事基地合約標案。

I would like to turn our attention to dividends, which I touched on earlier. Last week, we announced an 8.2% 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.

我想把焦點轉到股利，這部分我先前已略有提及。上週我們宣布第三季股利提高 8.2%。此一增幅符合我們的政策：長期而言，股利的年複合成長率要達到 7% 以上。

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 8.4% compound annual growth rate in our quarterly dividend rate to shareholders over the last five years since the third quarter of 2021, and the company is on pace to achieve a 10-year compound annual growth rate of 8.7% in its calendar year dividend payments through 2026.

公司對於強勁的股利發放歷史深感自豪，且這也持續成為股東的重要資產。這項亮眼的紀錄使我們自 2021 年第三季起的過去五年，得以達成季度股利率對股東的年複合成長率 8.4%；同時，公司亦正按進度在 2026 年前的曆年股利支付上，達成 10 年年複合成長率 8.7%。

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，我想以感謝各位對 American States Water 的關注作為我們預先準備發言的結語，接下來我們將把電話會議交給接線員進行提問。

(Operator Instructions) At this time, there are no questions. I would like to turn the conference back over to Bob Sprowls for closing remarks.

（接線員指示）目前沒有任何提問。我想把電話會議交回給 Bob Sprowls 進行結語。

Thank you, Bailey. I just want to pass on my thanks to all of you for your participation today, and we look forward to speaking with you next quarter.

謝謝你，Bailey。我只想向各位轉達我對大家今天參與的感謝，我們期待在下個季度再次與各位交流。

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

本次電話會議到此結束。感謝各位出席今天的簡報。您現在可以掛線。