American States Water Company (AWR) 2026 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 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 November 12, on the company's website, www.aswater.com. The slides that the company will be referring to are also available on the website. (Operator Instructions) 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.

各位女士、先生，感謝您稍候。歡迎參加 American States Water Company 之電話會議，討論公司 2026 年第三季業績。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，並持續至 11 月 12 日，於公司網站 www.aswater.com 提供。公司將引用的簡報投影片亦可於該網站取得。(接線員指示) 今日由 American States Water Company 出席的有：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. Forward-looking statements are subject to estimates and assumptions and known and unknown risks, uncertainties and other factors.

提醒各位，本次電話會議中討論的某些事項，可能構成 1995 年《私人證券訴訟改革法》所定義的前瞻性陳述。前瞻性陳述並非對任何結果、財務表現、活動水準、績效或成就的保證或承諾，並提醒聽眾切勿過度依賴該等陳述。前瞻性陳述受估計與假設，以及已知與未知的風險、不確定性及其他因素影響。

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

聽眾應查閱公司最近向美國證券交易委員會（SEC）申報之 Form 10-K 與 Form 10-Q 中，對可能影響前瞻性陳述之風險與不確定性的說明。本次電話會議所作之陳述僅截至本次通話日期有效，法律另有要求者除外。公司不承擔公開更新或修訂任何前瞻性陳述之義務。

In addition, this conference call will include a discussion of certain measures that are not prepared in accordance with Generally Accepted Accounting Principles or GAAP in the United States and constitute non-GAAP financial measures under SEC rules. These non-GAAP financial measures are 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.

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，依 SEC 規則屬於非 GAAP 財務衡量指標。該等非 GAAP 財務衡量指標係自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, Chloe. 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'll take your questions. Reported earnings per share for the third quarter were $1.06, consistent with reported earnings from last year. However, this year's third quarter included a $0.05 per share unfavorable period-over-period impact from changes in returns on investments held to fund one of the company's retirement plans, driven by volatile market conditions.

謝謝你，Chloe。各位好，感謝今天加入我們。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。第三季每股盈餘（EPS）為 1.06 美元，與去年同期的已報告每股盈餘一致。然而，今年第三季包含每股 0.05 美元的不利期間比較影響，係因用以資助公司其中一項退休計畫之投資報酬變動所致，並受市場波動影響。

Removing the effects of the gains and losses on investments from both periods, adjusted earnings for the third quarter of 2026 remained at $1.06 per share as compared to adjusted earnings of $1.01 per share for the same period in 2025, an increase of $0.05 per share. All three of our operating business segments have performed well year-to-date and report year-over-year earnings increases. On the regulatory front, Golden State Water filed its general rate case in July with the California Public Utilities Commission, or CPUC, to set new rates for the years 2028 through 2030. The filing included a request for capital investments of approximately $1 billion over the rate cycle.

若排除兩個期間投資損益的影響，2026 年第三季調整後每股盈餘仍為 1.06 美元，相較 2025 年同期調整後每股盈餘 1.01 美元，增加 0.05 美元。我們三個營運事業部門截至目前（年初至今）表現皆佳，且年對年獲利均呈成長。在監管方面，Golden State Water 於 7 月向加州公用事業委員會（CPUC）提交一般費率案件（general rate case），以訂定 2028 至 2030 年的新費率。該申報包含於費率循環期間約 10 億美元的資本投資申請。

In July, Golden State Water and the Public Advocates Office at the CPUC, 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. We continue to seek opportunities to expand our regulated water operations. Our regulated utilities are on pace to invest $185 million to $220 million in infrastructure investments for the full year as we continue to invest in our water, wastewater and electric utility systems for the long-term benefit of our customers.

7 月，Golden State Water 與 CPUC 之公共倡議辦公室（Public Advocates Office，或 Cal Advocates）提交聯合和解協議，以核准收購一套既有供水系統；該系統位於洛杉磯郡 Norwalk 市，服務近 900 個用戶接管（customer connections）。我們持續尋求擴大受監管供水業務的機會。我們的受監管公用事業預計全年基礎建設投資將達 1.85 億至 2.20 億美元；我們將持續投資於供水、污水及電力公用事業系統，以長期造福客戶。

ASUS continues to secure funding from the US government for new construction projects at the bases we serve, and was awarded $31 million in new capital upgrade construction projects during the 9 months ended September 30 of this year. These newly awarded projects are expected to be completed through 2029.

ASUS 持續自美國政府取得我們所服務基地之新建工程資金，並於截至今年 9 月 30 日的 9 個月期間，獲得 3,100 萬美元的新資本升級建設專案。這些新獲標專案預計將於 2029 年前完成。

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

接下來，我把電話會議交給 Eva，請她說明獲利與流動性。

Thank you, Bob. Hello, everyone. I'll begin on slide 7. As Bob mentioned, our consolidated reported earnings were $1.06 per share and were flat compared to last year but included in the quarterly consolidated and water segment earnings comparison was an unfavorable variance of $0.05 per share related to gains generated on investment in the third quarter of 2025 compared to a small loss generated in the current quarter. Excluding the impact of gains and losses on investments from both periods, adjusted consolidated earnings remained at $1.06 per share for the current quarter compared to adjusted earnings of $1.01 per share last year, an increase of $0.05 per share.

謝謝你，Bob。各位好。我將從第 7 張投影片開始。如 Bob 所提，我們合併已報告每股盈餘為 1.06 美元，與去年持平；但在本季合併與供水事業部門獲利的比較中，包含每股 0.05 美元的不利差異，係因 2025 年第三季投資產生收益，而本季則產生小幅損失。若排除兩個期間投資損益的影響，本季調整後合併每股盈餘仍為 1.06 美元，較去年調整後每股盈餘 1.01 美元增加 0.05 美元。

The increase in adjusted net earnings resulted largely from the implementation of new customer rate increases approved by the CPUC at our regulated utilities. Our water utility, Golden State Water reported earnings of $0.85 per share as compared to $0.86 per share for the third quarter of last year or $0.85 per share as adjusted for 2026 as compared to adjusted earnings of $0.81 per share for the same period in 2025, an increase of $0.04 per share when excluding the effect of gain and losses on investments as discussed.

調整後淨利增加主要來自我們受監管公用事業依 CPUC 核准實施之新客戶費率調升。我們的供水公用事業 Golden State Water 已報告每股盈餘為 0.85 美元，相較去年第三季 0.86 美元；或以 2026 年調整後口徑計算為每股 0.85 美元，相較 2025 年同期調整後每股盈餘 0.81 美元，在排除前述投資損益影響後，每股增加 0.04 美元。

The $0.04 per share increase in adjusted earnings was due to an increase in water rates for 2026 including additional revenue associated with the completed advice letter capital project filed and recovered -- filed and approved for recovery in late 2025, partially offset by increase in operating expenses and interest expenses, net of interest income as well as a higher effective income tax rate.

調整後每股盈餘增加 0.04 美元，係因 2026 年水費率上調所致，其中包含與已完成之建議函（advice letter）資本專案相關的額外收入（該專案於 2025 年底提出申報並獲核准回收）；但部分被營運費用與利息費用增加（扣除利息收入後之淨額），以及較高的有效所得稅率所抵銷。

Lastly, there was a decrease in earnings of $0.02 per share due to the dilutive effect from the share issuances under the parent company's at-the-market offering program. Our Electric segment's reported earnings were $0.05 per share for the quarter as compared to $0.04 per share for the same quarter last year. The $0.01 per share increase is from rate increases partially offset by higher operating and interest expenses and the higher effective income tax rate. Earnings from ASUS were $0.17 per share for the quarter compared to $0.19 per share for the same quarter last year, a decrease of $0.02 per share, primarily from an increase in overall operating and construction expenses partially offset by an increase in total revenue recognized.

最後，由於母公司在市價發行（at-the-market，ATM）發行計畫下進行股票發行所產生的稀釋效應，每股盈餘減少了0.02美元。本季我們電力事業部門的列報每股盈餘為0.05美元，相較去年同期為0.04美元。每股增加0.01美元，主要來自費率調升，但部分被較高的營運與利息費用以及較高的有效所得稅率所抵銷。ASUS本季每股盈餘為0.17美元，去年同期為0.19美元，每股減少0.02美元，主要因整體營運與工程建設費用增加，部分被已認列總營收增加所抵銷。

There was also a decrease of $0.02 per share in losses from our parent company. This decrease is principally from a decrease in interest expense resulting from lower borrowing levels under its credit facility and lower interest rates. The decrease in borrowing needs was driven primarily by additional proceeds raised under the company's ATM offer program.

此外，來自母公司的虧損亦每股減少0.02美元。此減少主要源自利息費用下降，原因是其在信用額度下的借款水位降低以及利率下降。借款需求下降主要是因公司在ATM發行計畫下籌得額外資金所致。

Consolidated revenue for the third quarter increased by $9.8 million when compared to the same quarter of 2025. Revenues increased by $7.6 million in the Water segment and $1.6 million in the Electric segment, driven mostly by the new 2026 rate and additional revenue associated with advice letter projects approved in 2025. Revenue from ASUS increased $0.6 million, primarily due to higher management fees.

第三季合併營收較2025年同期增加980萬美元。其中，水務事業部門營收增加760萬美元，電力事業部門增加160萬美元，主要受2026年新費率以及與2025年核准之建議函（advice letter）專案相關的額外營收所帶動。ASUS營收增加60萬美元，主要因管理費提高。

Turning to Slide 9. Overall operating expenses increased by $4.2 million. Looking at total operating expenses other than supply costs, expenses increased by $3.7 million compared to last year. The increase comes largely from higher depreciation and amortization expenses, higher ASUS construction expenses and higher other operation expenses. Interest expense net of interest income, also increased largely from a decrease in interest income due to the capitalization of debt costs associated with certain advice letter projects in 2025 with no similar items in 2026, as the projects were completed and new rates took effect in 2026 and reduced interest income from a decrease in regulatory asset balances for both regulated utilities.

接著看第9頁投影片。整體營運費用增加420萬美元。若觀察不含供應成本的總營運費用，費用較去年增加370萬美元。增加主要來自折舊與攤銷費用上升、ASUS工程建設費用上升，以及其他營運費用上升。利息費用（扣除利息收入後）亦增加，主要因利息收入下降所致；利息收入下降係因2025年與部分建議函專案相關之債務成本資本化，而2026年無類似項目，因專案已完工且2026年新費率生效，並且兩家受監管公用事業的監管資產餘額下降，進一步降低利息收入。

Lastly, other income decreased during the quarter, mainly due to a change in market conditions that resulted in gains on investments held to fund retirement plans in 2025 compared to losses on those investments in 2026. slide 10 shows the EPS bridge comparing adjusted EPS for the third quarter of 2026 against the same period for 2025.

最後，本季其他收入下降，主要因市場狀況變化所致：2025年用於退休計畫資金的投資產生收益，而2026年同類投資則出現損失。第10頁投影片顯示每股盈餘（EPS）橋接，將2026年第三季調整後EPS與2025年同期進行比較。

Moving now to slide 11, consolidated earnings for the nine months ended September 2026 as reported were $2.92 per share compared to $2.63 per share for the same period in 2025, an increase of $0.29 per share. Removing the effects of the gains on investments from both periods, adjusted earnings for year-to-date 2026 were $2.86 per share as compared to adjusted earnings of $2.54 per share in 2025, an increase of $0.33 per share or 12.6%. All three of our operating business segments have performed well and reported year-to-date increases in earnings per share.

接著看第11頁投影片，截至2026年9月止九個月的合併列報每股盈餘為2.92美元，較2025年同期的2.63美元增加0.29美元。剔除兩期投資收益的影響後，2026年年初至今的調整後每股盈餘為2.86美元，相較2025年的調整後每股盈餘2.54美元，增加0.33美元或12.6%。我們三個營運事業部門表現皆佳，年初至今每股盈餘均呈現成長。

Turning to liquidity on slide 12. Net cash provided by operating activities was largely consistent with last year, the implementation of new rates and surcharges at our regulated utility -- regulated utilities added to cash flows from operations. However, the timing of cash receipts and disbursements related to working capital items continues to impact our cash flow from operations. For investing activities, our regulated utilities invested $149.3 million on company-funded capital projects year-to-date. And as Bob mentioned earlier, we're on target to reach $185 million to $220 million this year.

接著看第12頁投影片的流動性。營運活動提供的淨現金流量與去年大致一致；我們受監管公用事業實施新費率與附加費，為營運現金流帶來增益。然而，與營運資金項目相關的現金收付時點仍持續影響我們的營運現金流。在投資活動方面，我們的受監管公用事業年初至今在公司自籌資金的資本專案上投資1.493億美元。正如Bob先前提到的，我們仍按計畫在今年達成1.85億至2.20億美元的目標。

In July, 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 with also a stable outlook. These are some of the highest credit ratings in the US investor-owned water utility industry.

7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+且展望同樣穩定。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 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. Let's start with the latest water general rate case 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 cost for the full year 2026, up $32 million compared to adopted operating revenues less water supply costs for 2025.

謝謝你，Eva。接著更新監管面向的最新進展。先從最新的水務一般費率案件（general rate case）談起，該案件為2025年至2027年訂定了新費率。12月，Golden State Water獲加州公用事業委員會（CPUC）核准實施其完整的第二年及其他費率調升，並自今年1月1日起生效。此核准使2026年全年採認的營運收入（扣除供水成本）較2025年採認的營運收入（扣除供水成本）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 revenue less water supply cost in 2025, over 2024 adopted levels was $23 million. 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.

2026年增幅中包含近1,100萬美元，與建議函（advice letter）資本專案相關。這些建議函專案被納入採認的費率基礎（rate base），並自2026年1月1日起納入收入需求（revenue requirement）。相較之下，2025年採認的營運收入（扣除供水成本）相對於2024年採認水準的淨變動為2,300萬美元。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（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動所帶來的波動性。

Golden State Water's year-to-date earnings benefited from higher customer consumption of approximately 1% 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 had been temporarily off-line returning to service during 2026. It remains uncertain whether these favorable conditions 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. For example, El Niño or La Niña weather events could significantly affect precipitation levels and outdoor water use.

Golden State Water年初至今的獲利受惠於客戶用水量約增加1%，以及有利的供水來源組合；該組合包含較2025年同期更少的外購水。供水組合改善部分原因是2026年期間，先前暫時停用的部分水井恢復供水服務。目前仍不確定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。例如，聖嬰（El Niño）或反聖嬰（La Niña）天氣事件可能顯著影響降雨量與戶外用水。

Additionally, water supply mix changes can occur due to unforeseen groundwater quality issues and changes in the operating conditions of ground water basins and associated pumping facilities. Any of these factors could directly impact Golden State Water's future net earnings. Next, we review pending and future regulatory proceedings at the water segment.

此外，由於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的營運條件變化，供水組合也可能發生改變。上述任何因素都可能直接影響 Golden State Water 未來的淨利。接下來，我們將回顧水務事業部門目前待決及未來的監管程序。

On July 1, Golden State Water filed a general rate case application for all 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 items, requested to reinstate the regulatory framework for a full revenue decoupling mechanism and a full supply cost balancing account for water supply. Decision in this rate case is scheduled for the fourth quarter of 2027.

7 月 1 日，Golden State Water 就其所有供水區域及總部辦公室提交了一般費率案件（general rate case）申請。此一般費率案件將決定 2028 年至 2030 年的新水費費率。Golden State Water 申請三年費率週期約 10 億美元的資本預算，並在其他事項中，要求恢復完整收入去耦合機制（full revenue decoupling mechanism）的監管架構，以及用於供水的完整供應成本平衡帳戶（full supply cost balancing account）。該費率案件的裁決預計於 2027 年第四季作出。

Also, as mentioned on prior earnings calls, in November 2025, 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 parties request to leave the current water cost of capital mechanism in place through the one-year deferral period. For the period from October 1, 2025, through September 30, 2026, the Moody's AA utility bond rate did not change by more than 100 basis points from the benchmark.

此外，如同先前財報電話會議所提及，2025 年 11 月，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水務公用事業公司，將資本成本（cost of capital）申請再延後一年。CPUC 的核准將申請提交日期延後一年至 2027 年 5 月 1 日，並將相對應的生效日訂為 2028 年 1 月 1 日。CPUC 亦核准聯合各方之請求，在延後的一年期間內維持現行水務資本成本機制不變。在 2025 年 10 月 1 日至 2026 年 9 月 30 日期間，穆迪 AA 級公用事業債券利率相較基準並未變動超過 100 個基點。

As a result, Golden State Water's return on equity remains unchanged as there was no trigger of the water cost of capital adjustment mechanism. Golden State Water's current authorized rate of return on rate base is 7.93%, which includes a return on equity of 10.06% and a capital structure with 57% equity and 43% debt. Based on its weighted average cost of capital which will continue in effect through December 31, 2027. Furthermore, as I had 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.

因此，由於未觸發水務資本成本調整機制，Golden State Water 的股東權益報酬率（return on equity）維持不變。Golden State Water 目前核准之費率基礎報酬率（return on rate base）為 7.93%，其中包含 10.06% 的股東權益報酬率，以及 57% 權益、43% 負債的資本結構。此係基於其加權平均資本成本（weighted average cost of capital），該水準將持續有效至 2027 年 12 月 31 日。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 Norwalk 一處供水系統之和解協議。

If the settlement agreement is approved by the CPUC, the system will be incorporated into one of Golden State Water's existing rate-making areas and will result in increased water revenues. The proposed decision is scheduled for the fourth quarter of this year.

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（rate-making area），並將帶來水務營收增加。擬議裁決預計於今年第四季作出。

Turning our attention to slide 15. We present the growth in Golden State Water's adopted average water rate base in 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.

接著請看第 15 張投影片。我們呈現 Golden State Water 於 2021 年至 2026 年間核定之平均水務費率基礎（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（CAGR）為 11.3%。Golden State Water 預期其未來數年費率基礎將維持強勁且持續的成長。

The annual increase in rate base reflects, among other factors, the net effect of capital investments less depreciation. The higher increase in 2026 as compared to the increases in prior years represents the effects of the advice letter projects completed prior to 2026 that were included in rate base effective January 1 of this year. Please see the first footnote at the bottom of the slide.

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。2026 年相較前幾年增幅更高，係反映 2026 年前完成之建議函（advice letter）專案的影響；該等專案自今年 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 a priority for the company. We remain focused on balancing the 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是公司的一項優先事項。我們持續專注於在系統可靠性與韌性所需的持續投資，以及對客戶帳單影響之間取得平衡。CPUC 透過可負擔性比率（affordability ratio）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 performed 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解決相關疑慮。我們的電力客戶帳單及可負擔性指標仍維持在可管理的範圍內。

Now turning our attention to Bear Valley Electric, which continues to be a strong contributor to the company's results. 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 are also increases in revenues in 2025 and 2026, associated with approximately $28 million of capital projects, including AFUDC, approved for recovery through advice letters that were completed and placed in service.

接著我們將焦點轉向 Bear Valley Electric，其持續為公司業績作出強勁貢獻。目前的一般費率案件已設定 2023 年至 2026 年的費率。今年 1 月，Bear Valley Electric 實施了 2026 年的新費率，該年為其四年費率週期的最後一年。2025 年與 2026 年的營收亦有所增加，與約 2,800 萬美元的資本專案（包含 AFUDC）相關；該等專案已獲核准可透過建議函在完工並投入使用後回收。

Bear Valley Electric's adopted average rate base has grown from $69.2 million in 2021 to $166 million in 2026, representing a compound annual growth rate of 19.1% over the five-year period. 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.

Bear Valley Electric 核定之平均費率基礎自 2021 年的 6,920 萬美元成長至 2026 年的 1.66 億美元，代表五年期間的年複合成長率為 19.1%。今年 1 月，Bear Valley Electric 提交了一般費率案件申請，將決定 2027 年至 2030 年的新電價。

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 11.3% and embedded cost of debt of 5.92%, a capital structure of 60% equity and 40% debt and a return on rate base of 9.15%.

除其他事項外，Bear Valley Electric 申請四年費率週期約 1.33 億美元的資本預算，另有約 1,700 萬美元加計 AFUDC 的資本專案，將於專案完成後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 11.3%、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 9.15%。

Let's continue to ASUS, which contributed earnings of $0.17 per share for the quarter, which was $0.02 per share lower than last year. This was primarily the result of higher overall operating and construction expenses, partially offset by an increase in total revenues recognized. With year-to-date earnings of $0.47 per share, ASUS is on target to contribute $0.63 to $0.67 per share this year, representing an increase of 3.3% to 9.8% year-over-year. ASUS was awarded $31 million in new capital upgrade construction projects through year-to-date September 2026 to be completed through 2029.

接著談到 ASUS，本季每股盈餘貢獻為 0.17 美元，較去年少 0.02 美元。這主要是由於整體營運與工程建造費用較高，部分被已認列的總營收增加所抵銷。年初至今每股盈餘為 0.47 美元，ASUS 今年可望達成每股貢獻 0.63 至 0.67 美元的目標，年增幅為 3.3% 至 9.8%。截至 2026 年 9 月的年初至今，ASUS 已獲得 3,100 萬美元的新資本升級建造專案，預計於 2029 年前完成。

As we look ahead to 2027, we project that ASUS will contribute $0.67 to $0.71 per share. In addition, we remain confident that we can effectively compete for new military base contract awards. I'd like to turn our attention to dividends. In the third quarter, we raised our dividend by 8.2%.

展望 2027 年，我們預估 ASUS 將為每股貢獻 0.67 至 0.71 美元。此外，我們仍然有信心能夠有效競爭新的軍事基地合約授標。我想把焦點轉向股利。在第三季，我們將股利提高了 8.2%。

Our quarterly dividend rate has grown at a compound annual growth rate, or CAGR, of 8.4% over the last five years. 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 record of dividend increases every calendar year for 72 consecutive years is a testament to our enduring commitment to delivering value to shareholders.

過去五年，我們的季度股利率以 8.4% 的複合年成長率（CAGR）成長。這些增幅符合我們的政策：長期而言，股利的複合年成長率要超過 7%。我們連續 72 年每個曆年都提高股利的紀錄，證明了我們對為股東創造價值的長期承諾。

I'd like to conclude our prepared remarks by thanking you for your interest in American States Water, and we'll now turn the call over to the operator for questions.

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

Thank you. We will now take your questions. (Operator Instructions)

謝謝。我們現在開始接受提問。（接線員指示）

Angie Storozynski, Seaport.

Angie Storozynski，Seaport。

Thank you. So first, maybe on the $0.05 of earnings from pension accounts, what was -- what's been the earnings contribution from that driver year-to-date or maybe year-over-year? What's been the delta? Thank you.

謝謝。首先，關於來自退休金帳戶的每股 0.05 美元盈餘，這個因素今年迄今（year-to-date）或同比（year-over-year）的盈餘貢獻是多少？差異（delta）是多少？謝謝。

You're asking year-to-date, right? Angie.

你是問今年迄今，對吧？Angie。

That's right. Like for the first nine months, I mean, I understand that there was $0.05 of a drag year-over-year in the third quarter. But how about the first half?

沒錯。例如前九個月，我理解第三季同比有每股 0.05 美元的拖累。那上半年呢？

For year-to-date September this year, we have $0.06. Yes, $0.05 last year. So that's the difference we talk about.

以今年截至 9 月的年初至今來看，我們是 0.06 美元。是的，去年是 0.05 美元。所以這就是我們所談到的差異。

And then even with that drag, do you expect to fully realize your allowed ROE on the electric side for 2026?

那麼即使有這個拖累，你們預期在 2026 年電力業務端仍能完全實現核准的 ROE 嗎？

So you're asking about the retirement assets and the electric business?

所以你是在問退休資產以及電力業務嗎？

Yes. Yes, exactly because that drag shows up in electric earnings, right? So because even with that drag, you guys are tracking pretty well against our estimates.

是的。是的，正是因為那個拖累會反映在電力盈餘上，對吧？所以即使有那個拖累，你們的表現仍與我們的估計相當一致。

It shows up in the water segment, Golden State Water. That's where that.

那會反映在供水事業部門，也就是 Golden State Water。就是在那裡。

That's what I mean, I'm sorry, on the water side. That's what I'm asking, yes. Yes, I've been clearly electricity is on my mind today, but yes, I'm talking about the water system.

我的意思是，抱歉，是在供水端。這就是我在問的，是的。是的，我今天腦中一直在想電力，但我說的是供水系統。

Yeah. I mean we are confident we'll earn at or above our authorized return on the water business. Like we, sort of, do every year.

是的。我們有信心在供水業務上能賺取等於或高於核准報酬率。就像我們幾乎每年都做到的一樣。

Exactly, exactly. So -- and then moving on to the electric side now intentionally. So we're waiting for the results of your pending rate case. So your expectation is that we're still going to get them by the end of next year that there shouldn't be a delay?

沒錯，沒錯。那麼——接著現在是有意識地轉到電力端。我們正在等待你們尚未結案的費率案件結果。你們的預期是我們仍會在明年年底前拿到結果，不會有延遲嗎？

Well, we're -- the schedule is that we get a decision in the first quarter of 2027.

嗯，我們——時程安排是我們會在 2027 年第一季取得裁決。

Okay.

好的。

So start out as a proposed decision, of course, but then --

所以當然會先以擬議裁決（proposed decision）開始，但接著——

That's right.

沒錯。

Yeah. The new rate is supposed to be effective 2027. January 1. So even delayed for a few months, we'll have ability to retroactive -- to book those retroactive revenues.

是的。新費率預計於 2027 年生效。1 月 1 日。所以即使延後幾個月，我們也能追溯——也就是入帳那些追溯性的收入。

The ALJ in the case seems to be very much wanting to keep it moving. So that's a really good sign.

本案的行政法官（ALJ）似乎非常希望推動進度。所以這是一個非常好的跡象。

Okay. Okay. Very good. Thank you. Thank you. So good to be a welcome today.

好的。好的。非常好。謝謝。謝謝。今天很高興受到歡迎。

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。我想把電話會議交回給 Bob Sprowls，請他做任何結語。

Thank you, Chloe. I just want to wrap it up today by thanking everyone for their participation today, saying we look forward to speaking with you again next quarter and then wishing everybody a happy holiday season. So thank you, everyone.

謝謝你，Chloe。我想在今天做個總結，感謝各位今天的參與，並表示我們期待在下個季度再次與各位交流，同時也祝大家佳節愉快。所以謝謝大家。

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

本次電話會議已結束。感謝您參加今天的簡報。您現在可以掛線。