California Water Service Group (CWT) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the California Water Service Group second-quarter 2025 earnings call. (Operator Instructions)

女士們、先生們，感謝你們的支持。現在，我歡迎大家參加加州水務集團 2025 年第二季財報電話會議。（操作員指示）

I would now like to turn the conference over to James Lynch, Senior Vice President, Chief Financial Officer and Treasurer. You may begin.

現在，我想將會議交給高級副總裁、財務長兼財務主管詹姆斯·林奇 (James Lynch)。你可以開始了。

Thank you, Jericho. Welcome everyone to the second quarter of 2025 results call for California Water Service Group. With me today is Marty Kropelnicki, our Chairman and CEO, and Shilen Patel, our Chief Business Development Officer and Vice President of our Texas subsidiary TWSC.

謝謝你，傑里科。歡迎大家參加加州水務集團 2025 年第二季業績電話會議。今天與我一起的有我們的董事長兼執行長 Marty Kropelnicki，以及我們的首席業務發展長兼德州子公司 TWSC 的副總裁 Shilen Patel。

Replay dialing information for this call can be found in our quarterly results earnings release, which was issued earlier today. The call replay will be available until September 29, 2025.

本次通話的重播撥號資訊可在我們今天稍早發布的季度業績收益報告中找到。通話重播將保留至 2025 年 9 月 29 日。

As a reminder, before we begin, the company has a slide deck to accompany today's earnings call. The slide deck was furnished with an 8-K and is also available on the company's website at www.calwatergroup.com.

提醒一下，在我們開始之前，公司準備了一份投影片來配合今天的收益電話會議。幻燈片配有 8-K，也可在公司網站 www.calwatergroup.com 上取得。

Before looking at our second quarter 2025 results, I'd like to cover forward-looking statements. During our call, we may make forward-looking statements because these statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ material company's current expectations.

在查看我們 2025 年第二季的業績之前，我想先介紹一下前瞻性陳述。在電話會議期間，我們可能會做出前瞻性陳述，因為這些陳述涉及未來事件，它們受各種風險和不確定性的影響，實際結果可能與公司目前的預期不同。

As a result, we strongly advise all current shareholders and interested parties to carefully read the company's disclosures on risks and uncertainties found in our Form 10-K, Form 10-Q, press releases, and other reports filed from time to time with the Securities and Exchange Commission. And now I'll turn the call over to Marty.

因此，我們強烈建議所有現有股東和相關方仔細閱讀公司在 10-K 表、10-Q 表、新聞稿以及不時向美國證券交易委員會提交的其他報告中有關風險和不確定性的披露。現在我將把電話轉給馬蒂。

Thank you, Jim. Good morning, everyone. Thank you for joining us here today. We have six main items on the agenda that we want to cover today with everyone and provide an update on. One, we want to talk about the strong performance during the second quarter.

謝謝你，吉姆。大家早安。感謝您今天來參加我們的活動。我們的議程上有六個主要事項，我們今天想與大家討論並提供最新進展。首先，我們要談談第二季的強勁表現。

Just to remind everyone, earnings look pretty wonky, and as we have been saying on every earnings call, it's really driven by the fact that the 2021 General Rate Case was 16 months late. So when it was finally approved in 2024, it was retroactive. So that's kind of like the boa constrictor and the egg. Because it was retroactive, it's kind of made earnings look kind of funky year to year.

只是提醒大家，收益看起來相當不穩定，正如我們在每次收益電話會議上所說的那樣，這實際上是由於 2021 年一般費率案晚了 16 個月造成的。因此，當該法案最終在 2024 年獲得批准時，它具有追溯力。這有點像蟒蛇和蛋。因為它具有追溯力，所以每年的收益看起來都有點奇怪。

I think kind of the punch line from an earnings perspective is when you look at the non-GAAP EPS, non-GAAP earnings per share, we're up 15% year by year, which is historically very good considering it's the third year of the rate case in California, which is our largest operating entity.

我認為從獲利角度來看，關鍵在於當你查看非 GAAP EPS、非 GAAP 每股盈餘時，我們每年都會成長 15%，考慮到這是我們在加州（我們最大的營運實體）實施利率案例的第三年，這在歷史上是非常好的。

Second thing, we will give an update on our capital program. Capital spending was up approximately 7%, kind of quarter over quarter. And we'll give you an update on where we are with the California General Rate Case.

第二件事，我們將更新我們的資本計畫。資本支出較上季成長約 7%。我們將向您通報加州一般稅率案件的最新進展。

In addition, we have a new person attending us today, not new to the company, who's been around a long time, but new to helping give an update to our stockholders, Shilen Patel, who is the Lead Executive Officer who heads up our business development activities and is also running our Texas operations for us. So Shilen will give you an update on what's going on in Texas, as well as an exciting new contract we entered into in California in Silverwood, which is a new development that's being built in Southern California.

此外，今天我們還有一位新人，她對公司來說並不是新人，已經在公司工作了很長時間，但她是新來幫助我們向股東通報最新情況的，她就是 Shilen Patel，她是首席執行官，負責我們的業務發展活動，同時也負責我們德克薩斯州的業務。因此，Shilen 將向您介紹德克薩斯州的最新情況，以及我們在加利福尼亞州 Silverwood 簽訂的一項令人興奮的新合同，Silverwood 是正在南加州建設的一個新開發項目。

We'll give you a quick update on where we are with PFAS. That's been a little bit of a political football, but we have remained steadfast in our approach in making sure that the drinking water we provide our customers are safe and in compliance with our requirements. And then lastly, we did recently get reaffirmed our very good A+ stable rating from S&P Global. So we're very happy to see that we maintained a very strong credit rating going into the second half of the year. So with that, Jim, I'm going to turn over to you so you can go through the financial results for the quarter, please.

我們將向您簡要介紹 PFAS 的最新進展。這有點像政治足球，但我們始終堅定不移地確保我們為客戶提供的飲用水是安全的，並且符合我們的要求。最後，我們最近確實獲得了標準普爾全球 (S&P Global) 的 A+ 穩定評級的再次確認。因此，我們很高興地看到，我們在下半年保持了非常強勁的信用評級。因此，吉姆，我將把時間交給你，以便你可以瀏覽本季的財務結果。

Great, thanks, Marty. So as Marty mentioned, we have presented both GAAP and non-GAAP metrics for 2024, which you'll be able to see on the next several slides. The non-GAAP measures do remove the impact of the 2023 interim rate relief from our 2024 results.

太好了，謝謝，馬蒂。正如 Marty 所提到的，我們展示了 2024 年的 GAAP 和非 GAAP 指標，您可以在接下來的幾張投影片中看到。非公認會計準則指標確實消除了 2023 年中期利率減免對我們 2024 年業績的影響。

So in Q2 2025, revenue increased $20.7 million or 8.5% to $265 million. This compares with revenue of $244.3 million in Q2 of 2024. Compared to Q2 2024 non-GAAP revenue, second-quarter revenue increased $17.9 million or 7.2%.

因此，2025 年第二季度，營收增加了 2,070 萬美元，即 8.5%，達到 2.65 億美元。相比之下，2024 年第二季的營收為 2.443 億美元。與 2024 年第二季非 GAAP 收入相比，第二季營收增加了 1,790 萬美元，增幅為 7.2%。

Net income for the quarter was $42.2 million or $0.71 per diluted share, and this compares with 2024 second quarter net income of $40.6 million or $0.70 per diluted share. Compared to non-GAAP 2024 net income, Q2 net income decreased $200,000 or $0.02 per diluted share. The $1.8 million GAAP to non-GAAP difference is due to the finalization of amounts recorded in 2024 that were related to the 2023 interim rates.

本季淨收入為 4,220 萬美元，即每股攤薄收益 0.71 美元，而 2024 年第二季淨收入為 4,060 萬美元，即每股攤薄收益 0.70 美元。與非 GAAP 2024 淨收入相比，第二季淨收入減少 200,000 美元或每股攤薄收入 0.02 美元。180 萬美元的 GAAP 與非 GAAP 差異是由於 2024 年記錄的與 2023 年中期費率相關的金額最終確定所致。

Moving to slide 6, you can see the impact of the activity during the second quarter on our earnings result as compared to the 2024 non-GAAP results. The primary drivers were tariff rate changes and increased customer usage, which combined added $0.52 per diluted share. The increases were offset mainly by revenue regulatory account decreases of $0.21 per share, and water production rates and depreciation increases of $0.12 and $0.05 per share, respectively.

移到第 6 張投影片，您可以看到第二季的活動對我們的收益結果的影響，與 2024 年非 GAAP 結果相比。主要驅動因素是關稅稅率變動和客戶使用量增加，合計每股收益增加 0.52 美元。增幅主要被每股收入監管帳戶減少 0.21 美元以及每股水生產率和折舊分別增加 0.12 美元和 0.05 美元所抵消。

Also in the second quarter of 2024, we reduced bad debt expense as a result of payments received under the Extended Water Arrearages Program in California. As a result, we recognized the $0.06 per share benefit in the second quarter of 2024 that did not repeat in 2025.

此外，在 2024 年第二季度，由於收到了加州延長水費欠款計畫下的付款，我們減少了壞帳費用。因此，我們在 2024 年第二季確認了每股 0.06 美元的收益，但在 2025 年並未重複出現。

Slide 7 shows our year-to-date financial results. Revenue for the first six months of 2025 was $468.9 million compared to $515 million for the same period in the prior year. When adjusting 2024 results for interim rate relief, year-to-date 2025 revenue increased $41.3 million or 9.7%.

幻燈片 7 展示了我們今年迄今為止的財務表現。2025 年前六個月的收入為 4.689 億美元，而去年同期的收入為 5.15 億美元。當根據中期費率減免調整 2024 年業績時，2025 年年初至今的收入增加了 4,130 萬美元，增幅為 9.7%。

Net income attributed to Group was $55.5 million or $0.93 per diluted share compared to $110.5 million or $1.90 per diluted share in the prior year. When adjusting for the 2023 interim rate relief, net income increased $9 million or 19.4% over non-GAAP 2024 year-to-date net income, while diluted earnings per share increased $0.12 or 14.8%.

集團淨利為 5,550 萬美元，即每股攤薄收益 0.93 美元，而去年同期為 1.105 億美元，即每股攤薄收益 1.90 美元。經 2023 年中期利率減免調整後，淨收入較非 GAAP 2024 年年初至今淨收入增加 900 萬美元或 19.4%，而每股攤薄收益增加 0.12 美元或 14.8%。

Turning to slide 8, the primary drivers of our year-to-date diluted earnings per share when compared to the non-GAAP 2024 results were tariff rate changes and increased customer usage, which combined added $0.75 per diluted share, and the Palos Verdes pipeline recovery that added $0.05 per share. These increases were partially offset by regulatory revenue account decreases of $0.26 per share, water production rate and usage increases totaling $0.18 per share, and depreciation expense increase of $0.09 per share.

轉到投影片 8，與非 GAAP 2024 年業績相比，我們年初至今每股攤薄收益的主要驅動因素是關稅稅率變化和客戶使用量的增加，這兩項合計使每股攤薄收益增加 0.75 美元，而 Palos Verdes 管道恢復則使每股攤薄收益增加 0.05 美元。這些成長部分被每股 0.26 美元的監管收入帳戶減少、每股 0.18 美元的產水率和使用量增加以及每股 0.09 美元的折舊費用增加所抵消。

We continue to make significant investments in our water infrastructure to ensure the delivery of safe and reliable water service. Our capital investments for the quarter and year-to-date were $119.4 million and $229.5 million respectively. This represents a 14.2% increase for the quarter and a 7% increase year-to-date compared to the same periods in 2024. As a reminder, our capital investments do not include an estimated $220 million of remaining PFAS project expenditures, which we expect will be incurred over the next few years.

我們繼續對水利基礎設施進行大量投資，以確保提供安全可靠的供水服務。本季和年初至今我們的資本投資分別為 1.194 億美元和 2.295 億美元。與 2024 年同期相比，本季成長了 14.2%，年初至今成長了 7%。提醒一下，我們的資本投資不包括預計 2.2 億美元的剩餘 PFAS 項目支出，我們預計這些支出將在未來幾年內發生。

The positive impact of our capital investment program is having on a regulated rate base presented on slide number 10. If approved as requested, the 2024 GRC and Infrastructure Improvement Plan, coupled with planned capital investments in our utilities and other states, would result in a compounded annual rate-based growth of almost 12%.

我們的資本投資計畫對第 10 張投影片中所展示的管制利率基礎產生了正面影響。如果按要求獲得批准，2024 年 GRC 和基礎設施改善計劃，加上我們公用事業和其他州的計劃資本投資，將導致年複合成長率接近 12%。

Moving to slide 11, we continue to maintain a strong liquidity profile to execute both our capital plan and strategic M&A investments. As of the end of the quarter, we had $50.5 million in unrestricted cash, $45.6 million in restricted cash, and $240 million in available credit on our bank lines.

轉到第 11 張投影片，我們繼續保持強勁的流動性狀況，以執行我們的資本計劃和策略併購投資。截至本季末，我們擁有 5,050 萬美元的非限制現金、4,560 萬美元的限制現金和 2.4 億美元的銀行可用信貸額度。

Earlier in the quarter, we entered into an equity distribution agreement to sell shares under an at-the-market equity program with an available shelf of $350 million. While we expect to use the ATM strategically and from time to time, we did not use it in 2025 year-to-date.

本季度早些時候，我們簽署了一項股權分配協議，根據按市場股權計劃出售股票，可用資金為 3.5 億美元。雖然我們希望不時地策略性地使用 ATM，但從 2025 年至今我們還沒有使用過它。

And finally, as Marty mentioned, in July we received our annual credit rating update from S&P Global in which we retained our A+ stable rating. We're proud that we continue to maintain this strong credit rating. With that, I'll turn the call back over to Marty.

最後，正如 Marty 所提到的，7 月我們收到了標準普爾全球的年度信用評級更新，我們保留了 A+ 穩定評級。我們很自豪能夠持續維持這項強勁的信用評級。說完這些，我就把電話轉回給馬蒂。

Thanks, Jim, and I'm going to piggyback off those last comments about the credit rating. Obviously, the company's balance sheet continues to be very, very strong, which is important given the growth that we have in our capital investment program and our Infrastructure Improvement Plans. Likewise, that also dovetails right into our dividend program.

謝謝，吉姆，我將附和關於信用評級的最後評論。顯然，公司的資產負債表持續非常強勁，這對我們的資本投資計畫和基礎設施改善計畫的成長至關重要。同樣，這也與我們的股息計劃相吻合。

And I'm very proud to announce that yesterday our Board of Directors approved our 322nd quarterly dividend in the amount of $0.30 a share. I just remind everyone, the dividend increase that the Board approved earlier this year represented a 10.71% increase, which gives us a five-year 7.7% compound annual growth rate for our dividend.

我很自豪地宣布，昨天我們的董事會批准了第 322 次季度股息，每股 0.30 美元。我只是提醒大家，董事會今年稍早批准的股息成長幅度為 10.71%，這使我們的股息五年複合年增長率達到 7.7%。

We believe this dividend growth rate reflects our continued growth in our balance sheet as well as our continued expansion on our Infrastructure Improvement Plan, which we think is important as we continue to build up the balance sheet. So, balance sheet is in good shape and we have a lot to do in the second half of 2024 (sic - 2025).

我們相信，這一股息成長率反映了我們資產負債表的持續成長以及基礎設施改善計畫的持續擴大，我們認為這對我們繼續建立資產負債表非常重要。因此，資產負債表狀況良好，我們在 2024 年下半年（原文如此 - 2025 年）有很多事情要做。

Moving on to slide 13, I want to give everyone an update on where we are at the rate case in the state of California. As you may recall, in the application, the company is requesting $398 million in over the years 2026, 2027, and 2028, and a corresponding $1.6 billion budget for infrastructure improvements in the state of California, especially as we continue to move forward with our climate change adaptation plans.

轉到第 13 張投影片，我想向大家介紹加州利率案件的最新情況。您可能還記得，在申請中，該公司要求在 2026 年、2027 年和 2028 年撥款 3.98 億美元，並相應撥款 16 億美元用於改善加州的基礎設施，特別是在我們繼續推進氣候變遷適應計畫的情況下。

During the quarter -- well, first of all, the rate case continues to be on schedule from where it is, and that's really the good news here. So far, the administrative law judge and the assigned Commissioner have kept everything on task to date.

在本季——首先，利率狀況繼續按計劃進行，這確實是個好消息。到目前為止，行政法官和指派的專員已完成所有任務。

Settlement discussions did take place during April, and hearings before the administrative law judge took place in May. After the hearings in May, the ALJ, administrative law judge, requested additional information from the parties, and he was responded to in June.

和解談判確實在四月進行，行政法官面前的聽證會也在五月舉行。5 月的聽證會結束後，行政法官 ALJ 要求各方提供更多信息，並於 6 月得到了回复。

We then filed opening briefs on July 7, with reply briefs that were filed earlier this week. As we move into the last phase of the rate case. So there was no settlement that was reached. While there were a number of undisputed items in the rate case process, we did not reach a settlement with the ratepayer advocate. And so hence we had to file the opening briefs on July 7 and the reply briefs on July 28 to set up the final motion hearing, which will take place on August 5.

我們隨後於 7 月 7 日提交了開庭陳述，並在本週早些時候提交了答辯陳述。我們進入利率案件的最後階段。因此，雙方並未達成任何解決方案。雖然在稅率案件審理過程中存在一些無爭議的問題，但我們尚未與納稅人權益倡導者達成和解。因此，我們必須在 7 月 7 日提交開庭陳述，並在 7 月 28 日提交答辯陳述，以便為 8 月 5 日舉行的最終動議聽證會做準備。

After that August 5 hearing, that's the point at which all the information is submitted to the ALJ to draft the proposed decision. So August and September and October are critical months for the Commission as they work through the rate case and hopefully keeping it on time so it goes into effect on 1/1/2026.

8 月 5 日聽證會結束後，所有資訊都會提交給 ALJ，以起草擬議的決定。因此，8 月、9 月和 10 月對委員會來說至關重要，因為他們要處理利率案件，並希望能夠按時完成，以便於 2026 年 1 月 1 日生效。

Moving over to slide 14, to give you a quick update on what's happening with PFAS. The EPA has confirmed the maximum contaminant level for PFOA and PFOS will remain at four parts per trillion while it continues to evaluate standards for the other PFAS compounds. So, compounds in the PFAS family or in the forever chemicals families. The agency has also proposed extending the compliance deadline for PFOA and PFOS treatments from approximately two years from 2029 to 2031, with a final ruling expected in 2026.

請翻到第 14 張投影片，快速向您介紹 PFAS 的最新動態。美國環保署已確認 PFOA 和 PFOS 的最大污染物含量將維持在兆分之四，同時繼續評估其他 PFAS 化合物的標準。因此，PFAS 家族或永久化學物質家族中的化合物。該機構還提議將 PFOA 和 PFOS 處理的合規期限從大約兩年（2029 年）延長至 2031 年，預計最終裁決將於 2026 年作出。

Some states such as Washington or what's currently going to the legislature in the state of California are looking at implementing their own regulatory rules around this, consistent with the 4 parts per trillion, but on the original implementation time line. So we're closely monitoring that on a state-by-state basis to see where ultimately each state ends up with the implementation of the PFAS rules.

一些州，例如華盛頓州或目前正在提交立法的加利福尼亞州，正在考慮圍繞這一問題實施自己的監管規則，與萬億分之四的標準一致，但要按照原來的實施時間表。因此，我們正在密切監控各州的情況，以了解各州最終如何實施 PFAS 規則。

From a group perspective, we remain committed to investing in the water quality and infrastructure across Washington, New Mexico, California and making sure that we do everything we can to make sure that we stay ahead of schedule to ensure water quality for all of our customers and we'll continue with our plans as they are right now.

從集團角度來看，我們將繼續致力於投資華盛頓、新墨西哥、加州的水質和基礎設施，並確保我們竭盡所能，確保提前完成計劃，為所有客戶提供水質保障，我們將繼續執行目前的計劃。

We might push or pull a couple of things from year-to-year. Now that there's a little bit more room, but the original $222 million -- $226 million investment that we forecast is still on the table. And we are moving forward with that program.

我們每年可能會推動或撤銷一些事情。現在有了一點空間，但我們最初預測的 2.22 億美元至 2.26 億美元的投資仍在考慮之中。我們正在推進該計劃。

Looking on page 15, our approach to PFAS-related investments is intentionally aligned with the evolving EPA guidelines. It has been a little bit of a moving ball. But if you think about it, they just extended the implementation date a couple of years.

請參閱第 15 頁，我們對 PFAS 相關投資的方法有意與不斷發展的 EPA 指南保持一致。它就像一個移動的球。但如果你仔細想想，他們只是將實施日期延長了幾年。

And given what we're seeing within a few of the larger states that we operate in, there's a good chance that the states will adopt standards that will keep us in line with the original implementation time line set by EPA. So again, we're watching that.

鑑於我們在開展業務的幾個較大州所看到的情況，這些州很有可能會採用標準，使我們符合 EPA 最初設定的實施時間表。因此，我們再次關注此事。

But nonetheless, we will remain committed to doing what we need to do to make sure that we exceed the water quality standards every day that we operate. And the PFAS and PFOA teams are going full steam ahead as of right now and moving forward with our projects. And we'll start to see that investment start to show up in the capital investment line as we move forward in the second half of 2025 and certainly well into 2026 and '27.

但儘管如此，我們仍將繼續致力於做我們需要做的事情，以確保我們每天營運的水質都超過標準。目前，PFAS 和 PFOA 團隊正在全力推進我們的專案。隨著 2025 年下半年以及 2026 年和 2027 年的推進，我們將開始看到投資開始出現在資本投資領域。

In addition, I want to talk a little bit about the settlement on where we are in dealing with the people who contaminated the water supply. We continue to make good progress on recovering those costs through litigation.

此外，我想談談我們如何處理污染水源的人的問題。我們在透過訴訟追回這些成本方面繼續取得良好進展。

Cal Water is a party to four separate class action settlements related to PFAS. And in May of 2025, so May of this year, we received the first $10.6 million in net proceeds from a settlement with 3M. This represents the first of 10 scheduled installments that we will get from 3M, and we expect to begin receiving proceeds from the other three settlements potentially later on this year.

Cal Water 是四起與 PFAS 相關的集體訴訟和解的一方。2025 年 5 月，也就是今年 5 月，我們從與 3M 達成的和解協議中獲得了第一筆 1,060 萬美元的淨收益。這是我們將從 3M 獲得的 10 期預定分期付款中的第一期，我們預計將在今年稍後開始收到其他三筆和解金的收益。

Now I want to take a moment to introduce someone new to the call, but not new to Cal Water. He's been here a while driving all our business development efforts. And he's certainly a veteran in the water space. So I'm going to turn over to Shilen Patel to give everyone an update on what we have going on, on the business development side and in Texas. So Shilen, take it away.

現在我想花點時間介紹這次通話中的新人，但對 Cal Water 來說並不陌生。他在這裡工作了一段時間，推動我們所有的業務發展工作。他無疑是水上領域的老手。因此，我將請 Shilen Patel 向大家介紹我們在業務發展方面以及在德克薩斯州的最新進展。所以 Shilen，把它拿走吧。

Thank you, Marty. On slide 16, you'll see that California Water continues to prioritize growth through acquisitions and capital investments. A key example is our agreement with DMB Development, a national developer working on a master-planned community near the city of Hesperia in San Bernardino County.

謝謝你，馬蒂。在第 16 張投影片上，您會看到加州水務公司繼續透過收購和資本投資優先成長。一個關鍵的例子是我們與 DMB Development 達成的協議，DMB Development 是一家全國性開發商，正在聖貝納迪諾縣赫斯珀裡亞市附近的一個總體規劃社區進行開發。

Under this agreement, Cal Water will build, own, operate, and finance the wastewater treatment facility that will serve the development. Once fully built out, the community will consist of over 15,000 customer connections.

根據該協議，Cal Water 將建造、擁有、營運和資助為該開發項目服務的廢水處理設施。一旦完全建成，該社區將擁有超過 15,000 個客戶連線。

At full capacity, the facility will deliver more than 3 million gallons per day of tertiary treated wastewater. More importantly, 100% of this water will be reused within the community and will be the largest wastewater treatment and reuse facility in Cal Water's asset portfolio. We plan to file a certificate of public convenience and necessity with the CPUC to establish a regulated service area and include this district in future general rate case filings.

在滿載運轉的情況下，該設施每天將輸送超過 300 萬加侖的三級處理廢水。更重要的是，這些水 100% 將在社區內重複使用，並將成為 Cal Water 資產組合中最大的廢水處理和再利用設施。我們計劃向 CPUC 提交一份公共便利和必要性證書，以建立受監管的服務區，並將該地區納入未來的一般費率案件備案範圍。

Now turning to slide 17. Our Texas utility subsidiary continues to grow in step with the rapid expansion of the state. As a reminder, California Water made its initial investment in this subsidiary in 2021. The goal was to support water and sewer utility development in the Austin, San Antonio Mega region. This region currently has a population of about 5 million people and is projected to exceed 8 million by 2050, which is comparable to the Dallas-Fort Worth region today.

現在翻到第 17 張投影片。我們的德州公用事業子公司繼續隨著該州的快速擴張而發展。提醒一下，加州水務公司於 2021 年對該子公司進行了初步投資。目標是支持奧斯汀、聖安東尼奧大都會地區的供水和排污設施發展。該地區目前人口約 500 萬，預計到 2050 年將超過 800 萬，與今天的達拉斯-沃斯堡地區相當。

The biggest challenge to this growth is timely infrastructure development, especially roads and water systems. This presents a strong opportunity for California Water to partner with state and local governments and the private sector to align our utility investments to support the state's economic development objectives in the region.

這種成長面臨的最大挑戰是及時建造基礎設施，特別是道路和供水系統。這為加州水務公司提供了一個與州和地方政府以及私營部門合作的絕佳機會，以協調我們的公用事業投資，以支持該州在該地區的經濟發展目標。

On slide 18, you'll see continued momentum in customer growth for our utility in Texas. Both connected customers and paid customer commitments are increasing, which reflects the sustained demand in the Austin, San Antonio Mega region.

在第 18 張投影片上，您將看到我們在德克薩斯州的公用事業客戶持續成長的勢頭。連網客戶和付費客戶承諾都在增加，這反映了奧斯汀、聖安東尼奧大都會地區的持續需求。

Additionally, BVRT filed a general rate case for five utilities in June of 2024. A settlement agreement has been reached and is currently awaiting commission approval. Thank you, and I'll hand it back to Marty.

此外，BVRT 於 2024 年 6 月針對五家公用事業公司提起了一般費率訴訟。和解協議已達成，目前正在等待委員會批准。謝謝，我會把它交還給馬蒂。

Great, Shilen. Shilen, I believe DMB, we've done other business with successful projects with them in other states. I believe Kukio, which is the high end estates on the Big Island of Hawaii was one of the ventures we did with them a number of years ago, correct?

太好了，Shilen。Shilen，我相信 DMB，我們已經在其他州與他們合作過其他業務並完成了成功的專案。我相信 Kukio，即夏威夷大島上的高端莊園，是我們幾年前與他們合作的項目之一，對嗎？

That is correct. And we have another one as well as KSSCS in Kauai.

沒錯。我們在考艾島還有另一個以及 KSSCS。

Kauai. So it's good to work with a partner we have boy, I guess, 16 years of experience with working with them, which is good. On the settlement with BVRT, it's not filed yet with the commission, right? But we have an all-party settlement.

考艾島。因此，與我們擁有的合作夥伴一起工作是件好事，我想，我們已經與他們合作了 16 年，這很好。關於與 BVRT 達成的和解，尚未向委員會提交，對嗎？但我們已達成了各方一致解決方案。

That is correct. We do have an all-party settlement, and it is not filed with the commission yet. It should be filed shortly. And we'll share more information with us within that settlement when it's filed.

沒錯。我們確實有一個各方達成的和解協議，但尚未向委員會提交。它應該很快就會被提交。當和解協議提交後，我們將與我們分享更多資訊。

Perfect, so that means for everyone on the call, we can't take any questions as to the particulars of the settlement. But overall, I would say we're very pleased that we reached an all-party settlement. And Shilen and the team in Texas have done a really good job working on that rate case. And that's our first rate case that's being filed, which will actually establish the rate base for the Texas entities for us. So really good work there.

太好了，這意味著對於通話中的每個人來說，我們無法回答有關和解細節的任何問題。但總的來說，我想說我們很高興達成了各方一致的解決方案。希倫和德克薩斯州的團隊在處理這一利率案件方面做得非常出色。這是我們提交的第一起稅率案件，它實際上將為我們確定德州實體的稅率基礎。所以那裡的工作確實很棒。

All right, moving ahead to slide 19, I want to take a moment to talk about our Sustainability Report and just hit a couple of highlights on that. In June, we published our 2024 report. I believe this is our third report that we published, and we continue to focus on four key areas: protecting the planet, serving our customers, engaging the workforce, and governing with integrity.

好的，請看第 19 張投影片，我想花點時間談談我們的永續發展報告，並簡單介紹其中的幾個重點。6 月，我們發布了 2024 年報告。我相信這是我們發布的第三份報告，我們繼續關註四個關鍵領域：保護地球、服務客戶、調動員工積極性以及誠信治理。

Among some of the highlights are our goals of reducing Scope 1 and Scope 2 greenhouse gas emissions by 23.5% from our 2021 baseline, and the fact that we're investing nearly $3 million in energy-efficient upgrades within our service territory.

其中的亮點包括，我們的目標是將範圍 1 和範圍 2 的溫室氣體排放量在 2021 年基準上減少 23.5%，並且我們在服務區域內投資近 300 萬美元用於節能升級。

In addition, we had 100% compliance with the water quality standards, the primary and secondary water quality standards, and we conducted more than 615,000 water quality tests on behalf of our customers in the states that we operated at.

此外，我們 100% 遵守水質標準、一級和二級水質標準，並代表我們營運所在州的客戶進行了超過 615,000 次水質測試。

From a philanthropic perspective, the company donated more than $1.1 million to community organizations, including our Firefighter Grant Program, which is very successful, as well as our local scholarship programs for children of customers, especially those that are first-generation college students.

從慈善角度來看，該公司向社區組織捐贈了超過 110 萬美元，其中包括非常成功的消防員資助計劃，以及針對客戶子女（尤其是第一代大學生）的當地獎學金計劃。

In addition, we expanded our employee training program by approximately 17%, and we continue to develop new career pathways for our employees, which have been very successful. And the significance of those pathway is, it's not just a way to get promoted, but there are certification requirements that go along with it.

此外，我們將員工培訓計畫擴大了約 17%，並繼續為員工開發新的職涯道路，這些措施非常成功。這些途徑的意義在於，它不僅是一種晉升的方式，而且還伴隨著認證要求。

So for everyone that operates a water system, we all know how important those certifications are. So it's a way to let people grow and move up their certification chain and move into higher-level jobs as they get those higher-level certifications. In fact, we always say higher pay for higher certs, so it's been a very, very successful program.

因此，對於每個操作供水系統的人來說，我們都知道這些認證有多重要。因此，這是一種讓人們成長並提升其認證鏈並在獲得更高級別認證後從事更高級別工作的方式。事實上，我們總是說證書越高，薪水越高，所以這是一個非常非常成功的專案。

In addition, we've expanded our supplier oversight and our diversity efforts in terms of adding more suppliers that we procure goods and services from at the local level. So I encourage everyone to read the report. It's in the consistent reporting format that meets the majority of standards out there for sustainability reports. And we remain 100% dedicated to our ESG efforts, emphasizing the strong G for governance.

此外，我們還擴大了對供應商的監督，並努力增加多元化力度，在當地增加更多供應商來採購商品和服務。因此我鼓勵大家閱讀這份報告。它採用一致的報告格式，符合永續發展報告的大多數標準。我們將繼續全心全意地致力於 ESG 工作，強調強大的 G 代表治理。

So lastly, I want to talk about what to watch for in the fourth quarter because certainly, we have a lot going on. First and foremost, we're maintaining our focus on the 2024 General Rate Case. That's really important. And as I mentioned before, it represents 90% of our business as a utility.

最後，我想談談第四季需要關注的事項，因為我們確實有很多事情要做。首先，我們將繼續關注 2024 年一般稅率案。這真的很重要。正如我之前提到的，它占我們公用事業業務的 90%。

In addition to that, we also have important rate proceedings in Hawaii, Washington, as Shilen has just talked about, Texas, as well as New Mexico. So the rates team is very, very busy with everything they got going on.

除此之外，正如 Shilen 剛才所提到的，我們也在夏威夷、華盛頓、德州以及新墨西哥州舉行了重要的利率會議。因此，利率團隊非常忙碌，要處理所有事情。

As we move into the warm, dry summer months, that allows us the opportunity to speed up our capital investment program. So the third quarter is one of the busiest quarters from an investment standpoint. So the team is busy working on that.

隨著我們進入溫暖乾燥的夏季，我們有機會加快資本投資計劃。因此，從投資角度來看，第三季是最繁忙的季度之一。因此團隊正忙於此事。

It is interesting to note that while the Southeast of the US is going through a heat wave. In California, we are having a below-average summer. So it's been cooler. It's been a little more pleasant, which has been great from a fire season perspective. But all this means, it allows us to really kind of put the pedal to the metal on the capital investments as we go through the summer months and prepare to go into winter.

有趣的是，美國東南部正遭遇熱浪。在加州，我們正經歷一個低於平均水平的夏天。所以感覺更酷了。情況變得更令人愉快了，從火災季節的角度來看，這是件好事。但這一切意味著，當我們度過夏季並準備進入冬季時，我們可以真正增加資本投資的力量。

Obviously, with the cool weather, it gives us a little bit of break from fire season. But nonetheless, that does not allow us to slow down our efforts or back off our efforts for wildfire readiness. And the operating teams have been very, very busy since May, implementing our readiness programs for 2025.

顯然，涼爽的天氣讓我們暫時擺脫了火災季節。但儘管如此，這並不意味著我們可以放慢努力，或是放棄應對野火的努力。自五月以來，營運團隊一直非常忙碌，實施我們的 2025 年準備計畫。

So overall, there's a lot going on. And of course, lastly, we have to continue to execute prudently and efficiently. And as I started with this discussion here today, it is the third year of the rate case. The third year of the rate case is where we tend to see the most regulatory lag. And overall, I'm very happy to see that 15% growth in our earnings for the second quarter of 2025, given the fact it's the third year of the rate case. So with that, Jericho, we will open it up for questions from the analysts, please.

總的來說，有很多事情發生。當然，最後，我們必須繼續謹慎有效地執行。正如我今天在這裡開始討論的那樣，這是利率案的第三年。在利率案例的第三年，我們往往會看到監管落後最為嚴重。總體而言，考慮到這是利率案例的第三年，我很高興看到我們的收益在 2025 年第二季增長 15%。那麼，傑里科，我們將開始接受分析師的提問。

(Operator Instructions) Davis Sunderland, Baird.

（操作員指示）戴維斯桑德蘭，貝爾德。

Thank you for taking my question. Maybe I could start. You started actually to answer my question at the tail end of your last comments there, Marty, just about the GRC. But it sounds like you guys are still expecting a decision by year-end. So I guess, one, is that correct?

感謝您回答我的問題。也許我可以開始。馬蒂，實際上，在您最後一條評論的末尾，您就開始回答我關於 GRC 的問題了。但聽起來你們仍然期待年底前做出決定。所以我猜，第一，這是正確的嗎？

And then maybe more specifically, I mean, what is there that you guys are looking for in the case? Or what can we monitor in that time frame of August to October that you kind of defined as the critical months? And then I have one follow-up.

然後也許更具體地說，我的意思是，你們在案件中尋找什麼？或者我們可以在您定義為關鍵月份的 8 月至 10 月這段時間內監測什麼？然後我還有一個後續問題。

Yeah. I mean, so far, the assigned commissioner has given us every indication that it's a top priority for him to get the rate case done on time. Obviously, because there's no settlement, there's a lot for the assigned administrative law judge to go through. I will say the judge who has assigned our case is very procedural and has just really been kind of following the schedule, which -- so everything has been lining up to be on schedule year-to-date. But now is really when the rubber meets the road for the assigned law judge to kind of pull the case all together.

是的。我的意思是，到目前為止，指定的專員已經向我們表明，按時完成費率案件是他的首要任務。顯然，由於沒有達成和解，指定的行政法官需要處理很多事情。我想說的是，負責我們案件的法官非常注重程序，並且一直在嚴格按照時間表進行，所以今年到目前為止，所有事情都按計劃進行。但現在才是真正關鍵時刻，由指定的法官來整理整個案件。

And one of the things that the judge did ask us for was a list of non-disputed items. So that's been provided. So I think he's seen it the right way, but we kind of go into this blackout period other than answering questions from the administrative law judge for October -- or for August, September and potentially October.

法官確實要求我們提供一份無爭議物品的清單。至此，我們已經提供了。所以我認為他的看法是正確的，但除了回答行政法官提出的 10 月份（或 8 月份、9 月份，甚至 10 月份）的問題外，我們進入了暫停期。

So we'll just have to wait and see. But so far, with the commissioner saying it's his goal, the judge has been sticking to the schedule. He's been very procedurally driven. He's asked a lot of good questions.

所以我們只能拭目以待。但到目前為止，正如專員所說，這是他的目標，法官一直在堅持時間表。他非常注重程序。他問了很多好問題。

So we have every indication that it's heading the right way. Now it's where the rubber meets the road from the commission side. Our work is done as of August 5 when we have that final hearing and everything is handed off to the judge, so it will be up to the judge.

因此，我們有充分的跡象表明，一切正朝著正確的方向發展。現在，就到了委員會方面真正需要解決的問題了。我們的工作將於 8 月 5 日完成，屆時我們將舉行最後一次聽證會，並將所有事宜移交給法官，因此最終決定權在法官手中。

So I'm guardedly optimistic. Will it be right on time? I have no reason to believe that the assigned commissioner is not telling us the truth, and he said it's a top priority to get it done on time. So we'll see what the commissioner does with it. And in the meantime, we'll continue to answer all their questions.

所以我持謹慎樂觀的態度。會準時嗎？我沒有理由相信指派的專員沒有告訴我們真相，他說按時完成這件事是當務之急。因此我們將看看專員如何處理它。同時，我們將繼續回答他們的所有問題。

So that's a long-winded question of saying, as of right now, it's on schedule and the commissioner is focused on it as well as the judge.

這是一個冗長的問題，截至目前，一切都按計劃進行，專員和法官都在關注此事。

I appreciate the detail. And then maybe just one more for me. Just on the comments relating to the PFAS pushout or potential pushout, I should say, from the EPA. Is the right way to think about this as a positive that you guys are still moving forward on your time line as it relates to maybe getting some regulatory recovery and earning a return on those investments and then maybe a negative or a slowdown in potentially accelerating some M&A for smaller systems? Or I guess any other thoughts there would be helpful.

我很欣賞這個細節。然後也許對我來說再多一個。僅就有關 PFAS 推廣或潛在推廣的評論而言，我應該說來自 EPA。正確的思考方式是，你們仍然按照自己的時間表向前邁進，這既可能帶來一些監管復甦，也可能帶來一些投資回報，但也可能帶來一些負面影響或減緩一些小型系統的併購？或者我想任何其他想法都會有幫助。

Yeah. Thanks, Davis. I think from the perspective of the timing of the CapEx investments, we're still focusing on delivering the treatment according to the original schedule that we had put in place. Since our last call, we've taken a look at whether or not it makes sense for us to put treatment in some of our well locations as opposed to replacing the wells.

是的。謝謝，戴維斯。我認為從資本支出投資時機的角度來看，我們仍然專注於按照我們制定的原計劃進行治療。自從上次通話以來，我們一直在研究是否有必要在某些井位進行處理而不是更換井。

And we have identified a couple of areas where we are going to go ahead and just replace those wells. That's typically a little longer process. That takes about five to seven years from the time we first identify property to the time we actually get the well and place it in service.

我們已經確定了幾個將要繼續進行並更換這些油井的區域。這通常是一個較長的過程。從我們首次確定財產到我們實際獲得油井並投入使用大約需要五到七年的時間。

So initially, we were going to treat all of the wells we identified. But since this reassessment, we probably have about $160 million or so that we expect to be in place in the next two years related to treatment with the remainder being pushed out a little bit further as we look at our well replacements.

因此，最初，我們打算處理所有已確定的井。但自從這次重新評估以來，我們大概有大約 1.6 億美元左右的資金，我們預計這些資金將在未來兩年內用於處理，而剩餘的資金將在未來一段時間內推遲，因為我們將考慮更換油井。

Yes. And I would say, David, too, kind of putting politics aside for a moment, it's really hard. The EPA could shift the dates, but the fact is PFOA and PFAS is a known cancer-causing agent. And so it's really hard to look at customers in the eyes saying, yes, there's a compound of water, it may cause cancer, but the government just moved the implementation out a couple of years. Don't worry about it. The water is safe to drink.

是的。我想說，大衛，暫時把政治放在一邊，這真的很難。美國環保署可能會改變日期，但事實是 PFOA 和 PFAS 是已知的致癌物質。因此，當我們看著顧客的眼睛說，是的，水中確實含有某種化合物，可能會致癌，但政府只是將實施時間推遲了幾年，這真的很難。別擔心。水可以安全飲用。

So I was happy to see that the state of Washington is keeping the original timelines. I know in the legislature in the state of California, that's seriously being looked at right now. I think from a customer perspective, we'll always put the customers' health and safety first. Even if it means we need some depreciation dollars for a year or so if something gets kind of messed up on the EPA side.

因此我很高興看到華盛頓州保留了原來的時間表。我知道加州立法機構目前正在認真考慮這個問題。我認為從客戶的角度來看，我們始終把客戶的健康和安全放在第一位。即使這意味著如果 EPA 方面出現問題，我們需要一年左右的折舊費。

But PFAS, the train is moving. The projects are planned. We have contracts that have all been signed. The engineers are working on it. And we have room to move a couple of things around, as Jim said, and we'll change a couple of treatment options.

但 PFAS，這列火車正在移動。項目正在規劃中。我們的合約均已簽署。工程師們正在努力解決這個問題。正如吉姆所說，我們有空間來調整一些事情，我們會改變一些治療方案。

But I don't think you're going to see hundreds of millions of dollars shift out two more years. I think you're going to see pretty much stay on track with the exception of some stuff will get pushed and pulled a little bit.

但我不認為在未來兩年內你會看到數億美元被流出。我認為你會看到事情基本上保持在正軌上，除了有些東西會被稍微推拉。

Yeah. And I think with regards to the impact that that would have on our M&A, we've got a really strong balance sheet right now. And I think you can look at those two initiatives independent of one another.

是的。我認為，就這對我們的併購業務的影響而言，我們目前的資產負債表非常強勁。我認為你可以分別看待這兩項舉措。

This is super helpful, guys. I've got you loud and clear. And thank you very much for the time.

夥計們，這非常有幫助。我聽清楚了你的聲音。非常感謝您抽出時間。

Thank you. Thanks, David.

謝謝。謝謝，大衛。

Jonathan Peter, Wells Fargo.

富國銀行的喬納森·彼得。

Hey, good morning team. How are you all doing today?

嘿，大家早安。大家今天過得怎麼樣？

Good morning, Jonathan.

早安，喬納森。

A couple of questions for me. First, the rate base outlook outlined on slide 10 did not change, but it looks like there were some shifts in the CapEx by year, including like pushing out $50 million from 2025. I apologize if you mentioned it in the prepared remarks, but what caused the shift?

我有幾個問題。首先，第 10 張投影片中概述的利率基準前景沒有改變，但看起來資本支出每年都有一些變化，包括從 2025 年開始增加 5,000 萬美元。如果您在準備好的發言中提到了這一點，我深感抱歉，但是是什麼導致了這種轉變呢？

I mean, as it sounds like that anticipated PFAS well replacement CapEx shift has not yet been incorporated? And then further, does the increase in 2027 represent any of the $60 million to $70 million of anticipated investment related to the Silverwood opportunity?

我的意思是，聽起來預期的 PFAS 井更換資本支出轉變尚未納入其中？那麼，2027 年的成長是否代表了與 Silverwood 機會相關的 6,000 萬至 7,000 萬美元預期投資的一部分？

Well, with regards to Silverwood, yes, we are right now coming up with a budget with regards to what that plant is going to entail. And that is going to provide an opportunity for us to invest additional capital over the next few years. Shilen, I think we have a two-year time window with which to get that plant up and operating.

嗯，關於 Silverwood，是的，我們現在正在製定有關該工廠所需內容的預算。這將為我們在未來幾年投資額外資本提供機會。希倫，我認為我們有兩年的時間來建立和運作該工廠。

That's correct.

沒錯。

So those are numbers that we will be incorporating into the deck. And that will ultimately work its way into rate base as we kind of work through the regulatory process. As far as our CapEx plans, it really haven't changed relative to our core CapEx investments.

這些就是我們將要納入卡片中的數字。隨著我們完成監管過程，這最終將體現在利率基礎中。就我們的資本支出計劃而言，相對於我們的核心資本支出投資而言，它確實沒有改變。

We're still moving ahead with the anticipation of receiving a good portion, if not all, of what we've asked for in the general rate case. As you remember, 2025 is the first year of the current rate case, even though it's not effective -- the other parts of the rate case aren't effective until 2026. So we're pushing forward assuming that whatever we're allowed to put in place in terms of our rate base plan, we're in a position to deliver on that.

我們仍在繼續努力，希望能收到我們在一般費率案中所要求的大部分（如果不是全部）賠償金。正如您所記得的，2025 年是當前利率案例的第一年，儘管它尚未生效——利率案例的其他部分直到 2026 年才生效。因此，我們正在努力推進，假設無論我們在費率基礎計劃方面被允許實施什麼，我們都有能力實現它。

Okay. So the shift was just some like timing stuff because, yeah, I mean, overall, the three-year period pretty much the same thing?

好的。所以這種轉變只是一些時間上的事情，因為，是的，我的意思是，總的來說，三年的時間幾乎是同一件事？

I think that's a good characterization, yes.

是的，我認為這是一個很好的描述。

I'll just say, this is also why we got memo account treatment for part of the PFAS stuff because part of this is we're going through the process of discovery, what do we need to do at locations, you got to do all the testing, then you got to develop the implementation plans.

我只想說，這也是為什麼我們對部分 PFAS 內容採用備忘帳戶處理的原因，因為部分原因是我們正在經歷發現的過程，我們需要在各個地點做什麼，你必須進行所有測試，然後你必須制定實施計劃。

And so it meets the criteria of memo account treatment with the PUC, especially in California, where we got the most number of wells that we got to treat. And that's why that number is carved out and put in a footnote because ultimately, most of those costs will kind of roll into a memo account.

因此，它符合公共事業公司 (PUC) 備忘帳戶處理的標準，特別是在加州，我們需要處理的油井數量最多。這就是為什麼這個數字被劃出來並放在腳註中，因為最終，大部分成本都會轉入備忘帳戶。

Okay. But the Silverwood spend, that $60 million to $70 million you say on the slide, that's still incremental to the current budget?

好的。但是您在幻燈片上說的 Silverwood 支出為 6000 萬至 7000 萬美元，這相對於當前預算來說仍然是增量嗎？

Yes. In fact, our Board yesterday just approved the expenditures for that over the next two years. Yesterday, I was at our Board meeting. We go through the annual capital program in detail. So the engineering team comes in, the finance committee meets. And we go through all the details of the plan for the next year and the next really couple of years because they authorize us to start some other capital projects in advance. And so that was approved yesterday.

是的。事實上，我們的董事會昨天才剛批准了未來兩年的支出。昨天，我參加了董事會。我們詳細審查了年度資本計劃。於是工程團隊進來，財務委員會開會。我們仔細研究了明年以及接下來幾年計劃的所有細節，因為他們授權我們提前啟動一些其他資本項目。因此，該決議昨天獲得批准。

Okay. And then my other question relates to something that AWK mentioned earlier today that there's a water decoupling bill working its way through the California legislature this session. Can you discuss what all the bill may do? Like does it mandate that the CPUC adopt fully decoupled rates if requested by the utility? And what sort of support do you believe it has to pass both chambers and hopefully garner governing news and signature?

好的。然後我的另一個問題與 AWK 今天早些時候提到的有關，即在本屆會議期間，加州立法機構正在審議一項水資源脫鉤法案。您能討論一下法案可以做些什麼嗎？例如，如果公用事業公司提出要求，CPUC 是否必須採用完全解耦的費率？您認為法案需要什麼樣的支持才能在參眾兩院獲得通過並有望獲得執政新聞和簽名？

Yes. So that bill has been a key focal point of our government affairs team. And we have been leading the effort on that bill individually initially and then collectively as some of the other water purveyors have jumped in to support us.

是的。因此，該法案一直是我們政府事務團隊的重點。最初，我們單獨領導法案的製定工作，後來，隨著一些其他水供應商加入進來支持我們，我們開始集體努力。

So yeah, it's Senate Bill 473 and 473 would require the Public Utilities Commission to implement full decoupling for water utilities. And so we think, it's a real important bill. We think, especially as we deal with climate change out West and water scarcity, it just -- as I talked to the governor before about this topic, it's really -- if you think about it, when we go in there with this bill, we're basically saying kind of cap our earnings, right, as a regulated utility.

是的，參議院第 473 號法案要求公共事業委員會對水務公司實施全面脫鉤。因此我們認為這是一項非常重要的法案。我們認為，特別是在我們應對西部氣候變遷和水資源短缺問題時，就像我之前與州長談論這個話題一樣，如果你仔細想想，當我們提出這項法案時，我們基本上是在說，作為受監管的公用事業，要限制我們的收入。

But it's the right thing to do for the long term for the customers because it allows you to deal with affordability in some underserved communities. It allows you to better plan for things like climate change and actually kind of smooth out rates a little bit.

但從長遠來看，這對客戶來說是正確的做法，因為它可以幫助你解決一些服務不足的社區的負擔能力問題。它能讓你更能規劃氣候變遷等問題，實際上還能稍微平滑利率。

So as of July 28, right, the bill has passed the Senate on a 37 to 0 vote. It's moved through the assembly. It's moved through the assembly committee on utilities and energy with a 15 to 0 vote. And now it's waiting on the assembly committee for appropriations.

截至 7 月 28 日，該法案已以 37 票對 0 票在參議院獲得通過。它已在大會上移動。該法案以 15 比 0 的投票結果通過了公用事業和能源大會委員會。現在它正在等待議會委員會的撥款。

Now there is one opposing party to this bill. And it's the California advocates, they oppose the bill. And they are bringing up the point that it's going to increase the commission's operating cost by $1 million. So that's the opposition. It's a $1 million issue with the commission.

現在有一個黨派反對這項法案。而加州的支持者則反對這項法案。他們提出，這將使委員會的營運成本增加 100 萬美元。這就是反對意見。這是委員會面臨的一個價值 100 萬美元的問題。

We, of course, have been saying, well, wait a minute, we were decoupled for a number of years and you didn't have a blip in your operating cost. And the other utilities, electric and gas have been decoupled since the '70s, so that doesn't make a whole lot of sense.

當然，我們一直在說，好吧，等一下，我們已經脫鉤好幾年了，而你的營運成本卻沒有出現任何波動。而其他公用設施，電力和天然氣自 1970 年代以來就已經脫鉤，所以這沒有太大意義。

So overall, it's -- this bill has kind of sailed through everything. And now, we're waiting to see what happens next as it goes to the appropriations committee. Now that $1 million could become a hanger. California's budget is in the best shape. And there's not a lot of mercy for utility issues in Sacramento right now, given the large number of electrical cost increases that have been experienced in California to deal with some of the wildfire hardening.

所以整體來說，這項法案基本上順利通過了。現在，我們正在等待撥款委員會的審議結果。現在那100萬美元可能就變成了一個衣架。加州的預算狀況最佳。由於加州為應對野火加劇而大幅提高了電費，目前薩克拉門託的公用事業問題並沒有得到太多寬恕。

But so far, we've built a very large coalition. All the lawmakers that we've met with. And we met with a lot of lawmakers have been very, very supportive of decoupling and how it works. And so we'll just have to see what happens next. They're on recess right now in the state of California. So this will get picked up again in the fall when they come back from their recess.

但到目前為止，我們已經建立了一個非常龐大的聯盟。我們會見的所有立法者。我們會見了許多立法者，他們都非常支持脫鉤及其運作方式。所以我們只需要看看接下來會發生什麼。加州目前正在休會。因此，當他們在秋季休學回來時，這個問題將會再次被提起。

Thank you, Marty. I know you're always very plugged into what's going on in Sacramento, so I didn't expect anything less in terms of color.

謝謝你，馬蒂。我知道你總是非常關注薩克拉門托發生的事情，所以我對色彩方面的期望並不低。

Well, again, Jonathan, you know how we are. I mean we were the first water company to decouple. And we took a couple of hard knocks for that. And people say, why would you want to do it? But decoupling when you deal with water scarcity, when you deal with sustainability type of issues and tiered rates, I mean, it really helps drive down consumption over the long term.

好吧，喬納森，你又知道我們的情況了。我的意思是我們是第一家脫鉤的水務公司。為此，我們遭受了一些沉重的打擊。人們會問，為什麼要這麼做？但是，當你解決水資源短缺問題、永續性問題和分級費率時，脫鉤確實有助於長期降低消費。

And we've got to stay focused on that in California. It's a massive state that continues to grow. And so you have the largest ag business in the union in the state of California. You got some of the largest urban centers in the state of California compared to anywhere else in the US, and you've got a growing population, you got to be very proactive with this stuff. And so we believe in taking a leadership role, and that's what we've been doing.

我們必須在加州繼續關注此事。這是一個規模龐大且仍在持續成長的州。因此，你們擁有加州聯盟內最大的農業企業。與美國其他地方相比，加州擁有一些最大的城市中心，而且人口還在不斷增長，因此必須非常積極地應對這些事情。因此，我們相信自己能夠發揮領導作用，而且我們也一直在這樣做。

Yeah. No, good luck with it. It's hard to imagine that the $1 million figure would become a hangup in a state besides California. But yes, I guess, you never know. So good luck with that and best of luck as you move into the second half of the year with keeping the GRC on time.

是的。不，祝你好運。很難想像 100 萬美元這個數字會成為加州以外的州的障礙。但是的，我想，你永遠不會知道。所以祝你好運，並祝你在下半年順利按時完成 GRC。

Yes. And obviously -- and you know this, Jonathan, because we attend your conference as well. I mean as we move into the fall, Jim and I are out quite a bit talking to investors. And so we'll be happy to give people updates as we move through various IR meetings in the fall.

是的。顯然——喬納森，你知道這一點，因為我們也參加了你的會議。我的意思是，隨著我們進入秋季，吉姆和我經常出去與投資者交談。因此，我們很樂意在秋季召開各種 IR 會議時向人們提供最新資訊。

Excellent thanks a lot guys. I appreciate you taking the time to answer my questions.

非常好，非常感謝大家。感謝您抽空回答我的問題。

Michael Gaugler, Janney Montgomery Scott.

麥可高格勒、珍妮蒙哥馬利史考特。

Just one question on PFAS. Looking through your deck today, it seems like visibility is improving on the settlements across all four class actions. I'm just wondering at this point, what percentage of the total costs that you're going to incur do you think you can cover with the settlements?

關於 PFAS 只有一個問題。今天瀏覽您的演講稿，似乎所有四起集體訴訟的和解情況都有所改善。我現在只是想知道，您認為可以透過和解支付您將要承擔的總成本的百分之多少？

That's -- Michael, you would ask a very difficult question. It's -- I mean that always in a good way. I think it's a very, very fair question. It's really hard to gauge. My best guess would be $40 million to $60 million of the $226 million estimate. If I had to put a number on the table and make a bet, that's probably the range I would put it in.

這是——邁克爾，你問了一個非常困難的問題。這是——我的意思是這總是好的。我認為這是一個非常非常公平的問題。這確實很難衡量。我最好的猜測是 2.26 億美元估值中的 4,000 萬至 6,000 萬美元。如果我必須在桌上放一個數字並下注，那可能就是我會下注的範圍。

Consistent with the point I was just making with Jonathan about kind of taking a leadership role, Shawn Bunting, our Senior Vice President and General Counsel, has been the industry rep associated with these one of two industry reps associated with the lawsuit that represent the water industry. So we are very kind of up to our neck in these lawsuits working with outside counsel and representing the water space.

與我剛才和喬納森談到的擔任領導角色的觀點一致，我們的高級副總裁兼總法律顧問肖恩·邦廷 (Shawn Bunting) 一直是與此相關的行業代表，他是代表水行業的兩名行業代表之一。因此，我們在這些訴訟中竭盡全力與外部律師合作並代表水域。

So we're at the table when the deal gets cut. We know how it's going to work, et cetera. And part of the reason why we wanted to make that investment was to make sure that it's fairly allocated. So we're continuing that leadership role. Shawn Bunting is doing an absolutely fantastic job representing the water industry. He's a very, very good attorney.

因此，當交易達成時，我們就坐在談判桌前。我們知道它將如何運作等等。我們進行這項投資的原因之一就是為了確保資金得到公平分配。因此我們將繼續發揮領導作用。肖恩·邦廷 (Shawn Bunting) 在代表水產業方面做得非常出色。他是一位非常非常優秀的律師。

And if I had to bet, I would say $40 million to $60 million would probably be a probable range as of where I am right now. I don't know, Jim, if you'd add anything on that.

如果我不得不打賭的話，我會說，就我現在的情況而言，4000 萬美元到 6000 萬美元可能是一個可能的範圍。我不知道，吉姆，你對此還有什麼補充。

Yeah, Michael, the only thing I'd say is part of the difficulty in estimating it is that it's predicated not only on the settlement dollars we're able to negotiate, but then the application for those dollars by the different water providers that could benefit from it. And until the total applications are known and can be identified in terms of how much they're requesting, it's hard to say how much is going to go to the individual water companies.

是的，邁克爾，我唯一想說的是，估算的困難部分在於，它不僅取決於我們能夠協商的和解金額，還取決於可以從中受益的不同供水商對這些金額的應用。在了解申請總數並確定其請求量之前，很難說有多少水會流向各個自來水公司。

So they're working through that process right now. As we said on the call, by the end of this year, we think we'll have a real good sense of where that's going to land. And quite frankly, we believe we'll start to get some of the other payments by the end of this year also. So more to come on that. But right now, it's moving ahead in a real good direction for us.

所以他們現在正在進行這個過程。正如我們在電話會議上所說的那樣，到今年年底，我們認為我們將對這一目標的實現有一個非常好的了解。坦白說，我們相信到今年年底我們也會開始收到一些其他付款。對此我們還有更多內容。但目前，一切進展順利，對我們來說都是好事。

There are no further questions at this time. I would now like to turn the call back over to Martin Kropelnicki, Chairman, President, and Chief Executive Officer.

目前沒有其他問題。現在我想將電話轉回給董事長、總裁兼執行長馬丁·克羅佩爾尼茨基 (Martin Kropelnicki)。

Great. Thank you, Jericho, and thanks, everyone, for joining us here today. First half of the year is done and dusted, as they say, in my spin class. It's been recorded, and we're moving forward. Looking forward to the second half of the year, obviously, we got a lot going on. But the company is in very, very good shape, very happy with earnings, very happy with the balance sheet. And we just got a lot going on.

偉大的。謝謝你，傑里科，也謝謝大家今天加入我們。正如人們所說，在我的動感單車課上，上半年已經結束。一切都已記錄下來，我們正在繼續前進。展望下半年，顯然我們有很多事情要做。但公司的狀況非常非常好，對獲利非常滿意，對資產負債表非常滿意。我們還有很多事情要做。

And with everything Shilen's got going on in Texas on the business development side with Silverwood, et cetera, as well as the rate case. It's going to be a very, very busy second half of the year, and we will look forward to updating you at the end of Q3. So until then, be safe, and have a good day. Thank you very much.

此外，Shilen 在德克薩斯州與 Silverwood 等公司開展業務開發，並處理利率案件。今年下半年將會非常非常忙碌，我們期待在第三季末向您更新最新情況。所以，在此之前，請注意安全，祝您有個愉快的一天。非常感謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。