California Water Service Group (CWT) 2025 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. My name is Desire and I will be your conference operator today. At this time, I would like to welcome everyone to the California Water Service Group Q4 2025 and full year earnings call. (Operator Instructions) I would now like to turn the conference over to James Lynch, Chief Financial Officer. You may begin.

女士們、先生們，感謝你們的耐心等待。我叫黛西蕾，今天我將擔任你們的會議接線生。在此，我謹代表加州水務集團歡迎各位參加2025年第四季及全年業績電話會議。（操作說明）現在我將會議交給財務長詹姆斯·林奇先生。你可以開始了。

Thank you, Desire. Welcome, everyone, to the fourth quarter and full year 2025 results call for California Water Service Group. With me today is Marty Kropelnicki, our Chairman and CEO; Shilen Patel, our Chief Business Development Officer; and Greg Milleman, our Vice President of Rates and Regulatory Affairs.

謝謝你，黛西蕾。歡迎各位參加加州水務集團2025年第四季及全年業績電話會議。今天與我一同出席的有：我們的董事長兼執行長 Marty Kropelnicki；我們的首席業務發展長 Shilen Patel；以及我們的費率和監管事務副總裁 Greg Milleman。

Replay dial-in information for this call can be found in our quarterly results earnings release, which was issued yesterday. The call replay will be available until April 27, 2026. 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.

本次電話會議的重播撥入資訊可在我們昨天發布的季度業績報告中找到。電話錄音重播將保留至 2026 年 4 月 27 日。提醒一下，在開始之前，公司準備了一份投影片，用於今天的財報電話會議。幻燈片簡報台配備了 8K 顯示器，也可在公司網站 www.calwatergroup.com 上查看。

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

在查看我們 2025 年第四季業績之前，我想先談談前瞻性聲明。在電話會議期間，我們可能會發表一些前瞻性聲明。由於這些聲明涉及未來事件，因此存在各種風險和不確定性，實際結果可能與公司目前的預期有重大差異。

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 with the Securities and Exchange Commission.

因此，我們強烈建議所有現有股東和相關人士仔細閱讀公司在 10-K 表格、10-Q 表格、新聞稿以及向美國證券交易委員會提交的其他報告中披露的風險和不確定性資訊。

And now I'll turn the call over to Martin.

現在我把電話交給馬丁。

Thanks, Jim. Good morning, everyone. I can't think of a more appropriate way to kick off our 100th year of operations as an essential utility than by quickly talking about two deals we announced. First and foremost, yesterday, we executed an agreement to purchase the Nevada and Oregon operations from Nexus Water. We've been busy working with them over the last few months to put that deal together, and we'll be talking about the deal later on today.

謝謝你，吉姆。各位早安。在我們作為一家重要公用事​​業公司運營 100 週年之際，沒有什麼比快速談論我們宣布的兩項交易更合適的開場方式了。首先，昨天我們簽署了一項協議，從 Nexus Water 收購內華達州和俄勒岡州的業務。過去幾個月我們一直在忙著與他們合作達成這項交易，我們今天晚些時候會討論這項交易。

Secondly, in December, we announced we've reached an agreement to purchase the outstanding minority in the Texas joint venture that we helped start, BVRT Holdings and become the sole owner of 7 Texas water and wastewater utilities. So big news that continues to allow us to expand our geographical footprint and further solidify our position as a leader in the water industry the Western US.

其次，在 12 月，我們宣布已達成協議，收購我們協助創立的德州合資企業 BVRT Holdings 中剩餘的少數股權，並成為 7 家德州水務和污水處理公司的唯一所有者。這是一個重大消息，它使我們能夠繼續擴大我們的地理版圖，並進一步鞏固我們在美國西部水務產業的領導地位。

In addition, while we don't have a general rate case for the 2024 rate case for California yet, we know it is actively being worked on and we expect to get a rate decision here soon. It's a little different situation than what we're in in the ['21] rate case where there was a lot of silence based on what we're seeing on where the commissioner is in the process. The questions are asking, et cetera, we know it's actively being worked on and we know it's a priority within the commission to get that done soon.

此外，雖然我們目前還沒有加州 2024 年費率案的總體費率案，但我們知道相關工作正在積極進行中，我們預計很快就會有費率決定出台。這與我們目前在 [2021] 年的費率案件中的情況略有不同，當時根據我們目前所看到的專員在過程中的進展情況來看，有很多沉默。這些問題是提出的，等等，我們知道委員會正在積極努力，我們也知道盡快完成這項工作是委員會的優先事項。

In addition, during the quarter, we filed and we're expecting a decision for our consolidated rate case in Texas, and we've also filed a rate case in the State of Washington. So we'll talk about that more a little bit later. So if I can get everyone to go to page 5, please. We'll do a quick recap on what we did for the year.

此外，本季度我們已向德州提交了合併費率申請，目前正在等待裁決；同時，我們也向華盛頓州提交了費率申請。我們稍後會詳細討論這個問題。所以，請大家翻到第5頁。我們將快速回顧一下我們這一年的工作。

So first and foremost, we went into the fourth quarter really ahead of budget and performing well. But I think as many of you saw, we had a major storm on the West Coast in December, and the financial results in December were clearly affected by wet cold weather. This is really the second time we've had an atmospheric river that really kind of hits the whole West Coast.

首先，我們第四季的業績遠遠超出預算，表現良好。但我想正如你們許多人所看到的，12 月西海岸遭遇了一場大風暴，12 月的財務業績顯然受到了潮濕寒冷天氣的影響。這其實是第二次出現席捲整個西海岸的大氣河流現象了。

Normally, if you think about California, it's kind of a long state and while we might -- whether in Northern California, demand for water services stay high in Southern California because it tends to be warmer. This is one of those storms that was from all the way from the Canadian border all the way down to the Gulf of Mexico and to the AHA coast on the California side.

通常來說，如果你想到加州，它就是一個非常狹長的州，雖然我們可能——無論是在北加州，還是在南加州，對水服務的需求仍然很高，因為南加州往往更溫暖。這是一場從加拿大邊境一直延伸到墨西哥灣，並一直到加州一側的AHA海岸的風暴。

So we had a pretty big weather impact that Jim will be talking about later. So overall, our results in the fourth quarter softened in December really because of these storms. As a highlight for 2025, we invested a record $517 million into our infrastructure systems, and that includes an additional $52.3 million invested in the fourth quarter alone.

所以天氣對我們造成了相當大的影響，吉姆稍後會談到這一點。因此，總體而言，我們第四季的業績在 12 月有所下滑，這主要是由於這些風暴造成的。作為 2025 年的一大亮點，我們向基礎設施系統投入了創紀錄的 5.17 億美元，其中僅在第四季度就額外投入了 5,230 萬美元。

In 2025, we increased our annual dividend by a record 10.7%, and that was filed by our 59th annual dividend increase earlier this year in 2026 by an additional 8%. We received during the fourth quarter, our extension for our cost of capital in the state of California, which allows us to retain a 10.27% ROE until January 2028. I believe this is one of the highest ROEs of a water utility in North America.

2025 年，我們將年度股息提高了創紀錄的 10.7%，而今年早些時候，我們將年度股息提高了 8%，這是我們第 59 次年度股息增長。我們在第四季度獲得了加州資本成本延期，這使我們能夠保持 10.27% 的 ROE 直至 2028 年 1 月。我認為這是北美水務公司中最高的投資報酬率之一。

And we have received approval to increase interim rates by the commission. So when the decision didn't come out in December, the commission gave us the green light to implement an interim rate increase of 3% that we [incorporated] in January in California.

我們已獲得委員會批准，可以提高臨時費率。因此，由於 12 月沒有做出決定，委員會批准我們在 1 月在加州實施 3% 的臨時費率成長。

So overall, kind of a busy year from that perspective on the rate side. In addition to that, we also maintained our A+ stable credit rating from S&P, which I believe is one of the highest rate credit utilities in North America. So there's a lot to get into in the details.

所以總的來說，從利率角度來看，今年算是相當忙碌的一年。除此之外，我們還保持了標普授予的 A+ 穩定信用評級，我認為這是北美最高的信用評級之一。所以細節方面有很多值得探討的地方。

So I'm going to turn it back to Jim to go through some of the details on the financial results. Jim?

所以，接下來我將把麥克風交給吉姆，讓他詳細解說財務表現。吉姆？

Great. Thanks, Marty. In Q4 2025, revenue was $220 million, and that compares to $222 million in the fourth quarter of 2024. Net income for the quarter was $11.5 million or $0.19 per diluted share compared to the prior year period of $19.7 million or $0.33 per diluted share.

偉大的。謝謝你，馬蒂。2025 年第四季度，營收為 2.2 億美元，而 2024 年第四季為 2.22 億美元。本季淨利為 1,150 萬美元，即每股攤薄收益 0.19 美元，而去年同期淨利為 1,970 萬美元，即每股攤薄收益 0.33 美元。

As Marty mentioned, our results in the fourth quarter were negatively impacted by the strong statewide weather pattern over much of California that created exceptionally wet and cold weather during the month of December.

正如馬蒂所提到的那樣，我們第四季度的業績受到了加州大部分地區強烈的全州天氣模式的負面影響，該模式在 12 月造成了異常潮濕寒冷的天氣。

Moving to slide 6, you can see the impact of this and other activities during the fourth quarter on our earnings results as compared to 2024. While tariff rate changes and other regulatory activities generated an increase of $0.48 per share, the weather-induced consumption decline led to a $0.59 earnings per share decrease.

翻到第 6 張投影片，您可以看到與 2024 年相比，第四季這項活動和其他活動對我們獲利結果的影響。雖然關稅稅率變化和其他監管活動使每股收益增加了 0.48 美元，但天氣原因的消費下降使每股收益減少了 0.59 美元。

In fact, of the $12.7 million in consumption decrease experienced in 2025, $14.6 million of it occurred in the fourth quarter. In addition, the three year conservation program approved in the 2021 rate case ended in Q4 with final expenses and the expense true-up reducing earnings by $0.10 per share.

事實上，2025 年消費減少的 1,270 萬美元中，有 1,460 萬美元發生在第四季。此外，2021 年費率案中批准的三年節能計劃在第四季度結束，最終費用和費用調整導致每股收益減少了 0.10 美元。

Slide 8 shows our 2025 year-end financial results. And as many of you know, the company's delayed 2021 GR rate case decision resulted in 2023 interim rate relief, which was recorded in 2024. So in reporting our results, we presented both the GAAP and non-GAAP measures for 2024. Essentially, the non-GAAP measures remove the impact of the 2023 interim rate relief from our 2024 results.

第 8 張投影片展示了我們 2025 年末的財務表現。正如你們許多人所知，該公司推遲的 2021 年 GR 費率案件決定導致了 2023 年的臨時費率減免，該減免在 2024 年記錄在案。因此，在報告我們的業績時，我們同時列出了 2024 年的 GAAP 指標和非 GAAP 指標。從本質上講，非GAAP指標消除了2023年中期利率減免對我們2024年業績的影響。

Operating revenue for 2025 was $1 billion. This compared to $1.370 billion in 2024 when compared to non-GAAP 2024 revenue of $949.3 million, our revenue for the year actually increased by $50.8 million or approximately 5.4%.

2025 年的營業收入為 10 億美元。相較之下，2024 年的收入為 13.7 億美元，而 2024 年的非 GAAP 收入為 9.493 億美元，我們當年的收入實際上增加了 5,080 萬美元，約佔 5.4%。

Net income attributed to Group was $128.2 million compared to net income of $190.8 million in 2024. Again, when compared to 2024, non-GAAP income of $126.8 million, our net income increased $1.4 million or 1% in 2025.

歸屬於集團的淨利潤為 1.282 億美元，而 2024 年的淨利潤為 1.908 億美元。同樣，與 2024 年的非 GAAP 收入 1.268 億美元相比，2025 年我們的淨收入增加了 140 萬美元，增幅為 1%。

Diluted earnings per share was $2.15 in 2025 compared to $3.25 in 2024. And again, removing the 2023 rate relief from our 2024 numbers, the non-GAAP 2024 earnings per share was $2.16, which was essentially flat when you compare it to 2025.

2025 年稀釋後每股收益為 2.15 美元，而 2024 年為 3.25 美元。再次強調，從 2024 年的數據中剔除 2023 年的利率減免，2024 年非 GAAP 每股收益為 2.16 美元，與 2025 年相比基本持平。

Turning to slide 9. The primary drivers of our 2025 diluted earnings per share when compared to non-GAAP 2024 results for tariff rate changes and other regulatory activities. In addition, income taxes were lower year-over-year due to lower taxable income and the related effects on our income tax rate.

翻到第9張投影片。與 2024 年非 GAAP 業績相比，我們 2025 年稀釋後每股收益的主要驅動因素是關稅稅率變化和其他監管活動。此外，由於應稅收入減少以及由此對所得稅率產生的影響，所得稅比去年同期降低。

Combined, these added 1.5 per diluted share. The increases were primarily offset by wholesale water rates that net of the volume decreases reduced diluted earnings per share by $0.27, consumption decreases of $0.19 per share and depreciation expense increases of $0.18 per share.

合計，這些措施使每股攤薄收益增加 1.5。這些成長主要被批發水價所抵消，批發水價扣除用水量減少後，稀釋後每股收益減少了 0.27 美元，每股用水量減少了 0.19 美元，每股折舊費用增加了 0.18 美元。

Turning to slide 10. We continue to make significant investments in our water infrastructure during 2025, which are the delivery of safe, reliable water service. Our capital investments for the quarter and year-to-date were $152.3 million and $517 million, respectively. This record level of annual investment represents a 19.8% over construction levels in 2024.

翻到第10張投影片。2025 年，我們將繼續對供水基礎設施進行重大投資，以提供安全可靠的供水服務。本季和年初至今的資本投資分別為 1.523 億美元和 5.17 億美元。這項創紀錄的年度投資水準比 2024 年的建築水準高出 19.8%。

As a reminder, our capital investment estimates for 2026 and 2027 presented on this slide do not include $235 million of anticipated remaining PFOS project expenditures, which we expect will be incurred over the next few years. In addition, the estimates do not include any capital investments for our recently announced system acquisitions in Nevada and Oregon.

提醒一下，本投影片中列出的 2026 年和 2027 年的資本投資估計不包括預計剩餘的 PFOS 專案支出 2.35 億美元，我們預計這些支出將在未來幾年內產生。此外，這些估算不包括我們最近宣佈在內華達州和俄勒岡州進行的系統收購的任何資本投資。

The positive impact of our capital investment program and what is happening on our rate base is presented on slide 11. If approved as requested, the 2024 California GRC Infrastructure Improvement Plan coupled with planned capital investments in our utilities and other states would result in a compounded annual rate base growth of almost 12% through 2027. Again, this is without PFOS expenditures or capital investments required in Nevada or Oregon, which would further add to our estimated rate base growth.

第 11 頁投影片展示了我們的資本投資計畫的正面影響以及對我們的費率基礎的影響。如果按要求獲得批准，2024 年加州 GRC 基礎設施改善計劃加上對我們公用事業和其他州的計劃資本投資，到 2027 年將導致年複合費率基數增長近 12%。此外，這還不包括內華達州或俄勒岡州所需的 PFOS 支出或資本投資，這些支出或投資將進一步增加我們估計的費率基礎成長。

Moving to slide 12. We continue to maintain a strong liquidity profile to execute our capital plan to fund BVRT greenfield utility growth and to integrate Nevada in our Oregon systems. At year-end, we had $51.8 million in unrestricted cash and $45.6 million in restricted cash, along with approximately $470 million available on our bank lines of credit. We maintain credit facilities totaling $600 million that are expandable to $800 million with the maturities extending to March of 2028.

切換到第12張投影片。我們將繼續保持強勁的流動性，以執行我們的資本計劃，為 BVRT 新建公用事業發展提供資金，並將內華達州整合到我們的俄勒岡州系統中。截至年底，我們有 5,180 萬美元的非限制性現金和 4,560 萬美元的限制性現金，此外，我們還有約 4.7 億美元的銀行信貸額度可用。我們擁有總額為 6 億美元的信貸額度，可擴展至 8 億美元，到期日最長可達 2028 年 3 月。

On October 1, 2025, we issued $370 million in long-term financing, which consisted of a combination of group notes and Cal Water first mortgage bonds. We also renewed our ATM program in May of 2025 with a $350 million shelf registration and completed $1.5 million of program sales in the 2025 fourth quarter. Importantly, both group and Cal Water maintained strong credit ratings of A+ stable from S&P Global, underscoring the strength of our balance sheet.

2025 年 10 月 1 日，我們發行了 3.7 億美元的長期融資，其中包括集團票據和加州水務公司第一抵押債券。2025 年 5 月，我們續簽了 ATM 計劃，註冊費為 3.5 億美元，並在 2025 年第四季完成了 150 萬美元的計劃銷售額。重要的是，集團和加州水務公司都保持了標普全球 A+ 穩定的強勁信用評級，凸顯了我們資產負債表的實力。

And finally, in January 2026, we declared our 324th consecutive quarterly dividend of $0.33 per share. We also announced our intended 2026 annual dividend of $1.34 per share. This would be our 59th consecutive announced increase. The $0.10 per share increase represents an 8.1% increase over 2025. So we have a lot going on in 2025, and we're really looking forward to 2026.

最後，在 2026 年 1 月，我們宣布連續第 324 個季度派發股息，每股 0.33 美元。我們也宣布了2026年計畫發放的年度股息，每股1.34美元。這將是我們連續第59次宣布加薪。每股上漲 0.10 美元，比 2025 年上漲 8.1%。所以我們2025年有很多事情要做，我們非常期待2026年。

With that, I'll turn it back over to Marty.

這樣，我就把麥克風交還給馬蒂了。

Alright. Thanks, Jim. And just to remind everyone, 2025 was the third year of the rate case. When you look at the press release, you might say, well, you're essentially flat kind of year-over-year, you're off $0.01 year-over-year. But remember, coming out of COVID, there was a pretty big spike in inflation.

好吧。謝謝你，吉姆。提醒大家一下，2025 年是費率案的第三年。當你查看新聞稿時，你可能會說，嗯，你們的業績基本上與去年持平，比去年同期下降了 0.01 美元。但別忘了，新冠疫情結束後，通貨膨脹出現了相當大的飆升。

We have absorbed those costs within that period and we're waiting for a rate to refund that. And historically, the third year of the rate case in California being 92%-ish of our total operations we really feel that inflationary lag in that third year.

我們已經在這段時間內承擔了這些費用，目前正在等待合適的利率以進行退款。從歷史數據來看，加州利率案件的第三年約佔我們總業務量的 92%，因此我們確實在第三年感受到了通膨落後。

So kind of all in, I'm happy with how we ended up the year we would end up stronger if we didn't have the atmospheric river take -- really wipe out the West Coast consumption here in December. But overall, I think we finished the year in a good position as we wait for the rate case in California.

總的來說，我對我們今年的最終結果感到滿意，如果我們沒有受到大氣河流的影響，我們最終會更強大——真的在 12 月徹底消除西海岸的消費。但總的來說，我認為在等待加州利率案件結果之際，我們以良好的狀態結束了這一年。

I am on slide 13, and I want to talk a little bit more about the deal with our friends at Nexus Water. And when you look at slide 13, this acquisition really is meaningful because it strengthens our position as a leader on the Western US by adding two additional states and diversifying our geographic footprint.

我現在講到第 13 張投影片，我想再多談談我們與 Nexus Water 的朋友們達成的協議。當你看到第 13 張投影片時，你會發現這次收購意義重大，因為它透過增加兩個州並使我們地理版圖多樣化，加強了我們在美國西部地區的領導地位。

In addition to that, it also increases our regulatory diversification by -- if you exclude BVRT, this adds about 40% to our operations outside the state of California. So the geographical diversification and the regulatory diversification we think are really, really important.

除此之外，它還增加了我們的監管多元化——如果排除 BVRT，這將使我們在加州以外的業務增加約 40%。所以我們認為地域多元化和監管多元化真的非常重要。

At year-end 2025, the acquired systems represent about $109 million of rate base at a purchase price of approximately 2 times rate base, consistent with our allocation of capital and our disciplined approach to looking at acquisitions.

截至 2025 年底，收購的系統代表了約 1.09 億美元的費率基礎，收購價格約為費率基礎的 2 倍，這與我們的資本配置以及我們審慎的收購方法相一致。

In addition, at the purchase price, the proposed purchase price, we believe this deal will be accretive within the first year backing out some of the onetime integration costs that we'll have to do once the deal is approved by the regulatory commissions that we are talking about in the appropriate jurisdictions.

此外，按照擬議的收購價格，我們相信這筆交易將在第一年內帶來收益，扣除一些一次性整合成本後，我們將不得不支付這些成本。這些成本將在交易獲得相關司法管轄區的監管委員會批准後支付。

So overall, really happy with this deal. We expect to be accretive in the first year, and we look forward to entering these two new markets, closing the deal and welcoming the Nexus employees to California Water Service Group.

總的來說，我對這筆交易非常滿意。我們預計第一年就能實現獲利成長，我們期待進入這兩個新市場，完成交易，並歡迎 Nexus 的員工加入加州水務集團。

Moving on to slide 14. It just gives you an illustration of what the footprint looks like as we operate and expand into a total of eight states total. So again, diversifying out of California, extending our footprint in these other states. And I was doing some work in preparation with our Board and looking back in 1926 when we were founded, and we started with really four little water systems in Northern California and kind of how they have grown.

接下來是第14張投影片。這只是向您展示我們運營和擴張到總共八個州後的業務範圍。所以，我們再次將業務從加州分散出去，擴大在其他州的商業版圖。我當時正在和董事會一起做一些準備工作，回顧了我們在 1926 年成立的時候，我們最初在北加州只有四個小型供水系統，以及它們是如何發展壯大的。

And then as I look at the growth of the company, at some point, we bought the system called Bar Gale in the 20s and early 30s. And I'm sure some people thought, why would they want to buy a system down in Silicon Valley. All of this is farm land down there.

然後，當我回顧公司的發展歷程時，在某個時期，我們在 1920 年代和 1930 年代初期收購了名為 Bar Gale 的系統。我確信有些人會想，他們為什麼要從矽谷買一套系統？下面這些地方全是農田。

So as we acquire these new systems, we like to think them as seeds and robust markets that will grow over time, and that is consistent with our capital strategy, look for systems in growing markets that we can continue to invest capital and grow their infrastructure to continue to improve service and spread our baseline costs over a larger base. So spread that marginal cost over a larger base.

因此，當我們收購這些新系統時，我們喜歡把它們看作是種子和強大的市場，它們會隨著時間的推移而成長，這與我們的資本策略是一致的，即在不斷增長的市場中尋找系統，以便我們可以繼續投資資本並發展其基礎設施，從而不斷改善服務並將我們的基本成本分攤到更大的基數上。所以要把邊際成本分攤到更大的基數上。

On slide 14, this deal will add about 36,000 equivalent residential units, so it's water and wastewater. And we think it is a great strategic fit with the company. If you go to slide 15, we cover some of the points on the strategic rationalization for this deal. It adds rate base driven growth platforms with meaningful capital investment opportunities consistent with our existing long-term infrastructure investment strategy.

第 14 頁顯示，這項交易將增加約 36,000 個等效住宅單元，因此涉及水和廢水處理。我們認為這與公司的策略非常契合。如果您翻到第 15 頁，我們會介紹這筆交易的策略合理化要點。它增加了以費率為基礎的成長平台，提供了有意義的資本投資機會，這與我們現有的長期基礎設施投資策略一致。

Both states, Oregon and Nevada, operate under a hybrid rate-making framework, which supports ongoing infrastructure investment and replacement costs. In addition, Nevada allows for a disk which we think is a regulatory best practice and the framework really provides some visibility into the future rate relief for capital investments that are needed.

俄勒岡州和內華達州都採用混合定價框架，以支援持續的基礎設施投資和更換成本。此外，內華達州允許進行利率減免，我們認為這是監管方面的最佳實踐，而且該框架確實為未來所需的資本投資的利率減免提供了一定的可見性。

And with a larger footprint, we see opportunities to optimize our corporate costs and again, leverage our water utilities are high-cost marginal providers having a larger base to spread those costs over to allow us to lower the overall marginal cost for customers while making sure we meet and exceed water quality standards and build resiliency into the system.

隨著業務規模的擴大，我們看到了優化公司成本的機會，並且再次利用我們水務公司作為高成本邊際供應商的優勢，透過擴大用戶基數來分攤成本，從而降低客戶的整體邊際成本，同時確保我們達到並超越水質標準，並增強系統的韌性。

We'll also benefit from strong regulatory relationships within the States. We were very impressed with the employees, both in systems in the states of Oregon and in Nevada. And as we know, Cal Water is a big believer in strong regulatory relationships, and we believe that's the underpin of the long-term stability of the system and our success on the regulatory side.

我們也將受益於與美國各州建立的牢固的監管關係。我們對俄勒岡州和內華達州系統內的員工都印象深刻。眾所周知，加州水務公司非常重視與監管機構建立牢固的關係，我們認為這是系統長期穩定和我們在監管方面取得成功的基礎。

In addition, these systems come with embedded growth pipelines that include both tuck-in acquisitions and other opportunities to add around the existing systems to grow out. So we're excited about that. Especially in the state of Nevada, which we deem as a high-growth date.

此外，這些系統還內建了成長管道，包括補充收購和其他機會，可以在現有系統周圍進行擴展和發展。我們對此感到很興奮。尤其是在內華達州，我們認為這是一個高成長地區。

And then finally, we were very impressed with the staff and the assets. I think as a kind of a gold standard utility. When you look at deals, A lot of times you go look at someone and they look different than you or they operate different than you do. We were very impressed with the operations of Nexus Water.

最後，我們對員工和資產都印象深刻。我認為它是一種黃金標準的實用工具。當你檢視交易時，很多時候你會發現對方與你的理念不同，或他們的運作方式與你不同。我們對Nexus Water的營運印象深刻。

It's not surprising for those of you who know Rob McLean and the management team at Nexus. They do a very good job operating their systems. So we're very happy with the quality of not only their people, but the quality of their systems that they operate in. So we look forward to a smooth approval process with the commissions in Oregon and Nevada, and integrating the systems onto our platform.

對於了解 Rob McLean 和 Nexus 管理團隊的人來說，這並不奇怪。他們的系統運作非常出色。因此，我們不僅為他們的人員素質感到非常滿意，也為他們所運行的系統的品質感到非常滿意。因此，我們期待俄勒岡州和內華達州的委員會能夠順利批准相關事宜，並將這些系統整合到我們的平台上。

Looking at slide 16, I'm going to hand that over to Shilen. I think most of you know Shilen as our Chief Business Development Officer. But Shilen has also been our General Manager in Texas managing our Texas operations. So Shilen, do you want to talk about the transaction, we executed and what's going on in Texas.

看了第 16 張投影片，我這就交給 Shilen 了。我想你們大多數人都認識 Shilen，他是我們的首席業務拓展長。但 Shilen 同時也是我們在德州的總經理，負責管理我們在德州的業務。希倫，你想談談我們完成的這筆交易以及德州正在發生的事情嗎？

Yeah. Thank you, Marty. We have entered into an agreement to acquire the remaining outstanding membership interest in BVRT in Texas. As you recall, it was a joint venture, and we're acquiring a minority. Upon closing, we'll become the sole owner of seven regulated water and wastewater utilities located in the high-growth corridor between Austin and San Antonio.

是的。謝謝你，馬蒂。我們已達成協議，收購德州 BVRT 剩餘的未償會員權益。你應該還記得，那是個合資企業，而我們正在收購少數股權。交易完成後，我們將成為位於奧斯汀和聖安東尼奧之間高速發展走廊的七家受監管的水務和污水處理公司的唯一所有者。

We continue to expand through ongoing system build-outs, infrastructure enhancements, really positioning the platform to support contained -- sustained customer growth. At the end of 2025, as you can see on the slide, we have more than 19,000 committed customers and about -- of that ,5,000 are connected currently with an additional 20,000 likely in the next foreseeable future and then about 100,000 in the long-term potential customers as our systems grow and mature.

我們透過持續的系統建置和基礎設施改善不斷擴展，真正使平台能夠支援可控的、持續的客戶成長。如幻燈片所示，到 2025 年底，我們將擁有超過 19,000 名忠實客戶，其中約有 5,000 名客戶目前已接入網絡，在可預見的未來可能還會新增 20,000 名客戶，隨著我們系統的發展和成熟，長期潛在客戶數量將達到約 100,000 名。

As reflected in the anticipated customer growth, both connected and committed customers increased meaningfully in recent years, demonstrating the embedded growth profiles of both systems and also just the nature of growth in that quarter of Texas alone.

從預期的客戶成長來看，近年來，已連結客戶和已承諾客戶的數量都顯著增加，這表明這兩個系統本身的成長趨勢，也反映了德州該區域的成長特性。

The transaction will require our utility, our Texas subsidiary to file a change control application and the contingent on regulatory approval and other customary closing conditions, including the [PUCT] and also Cal Water Group Board approval once we receive PUCT approval.

該交易將要求我們的公用事業公司和我們在德克薩斯州的子公司提交變更控制申請，並且取決於監管部門的批准和其他慣常的交割條件，包括[PUCT]和加州水務集團董事會的批准（一旦我們獲得PUCT的批准）。

Strategically consolidating full ownership enhances both our governance, but simplifies the structure allows us to fully capture the long-term growth and infrastructure investment opportunities within this market and really looking forward to continuing to build on the successes that the team locally have put in place for the last six to seven years. Marty -- Greg, we'll turn it to you.

從策略上整合全部所有權，既能加強我們的治理，又能簡化結構，使我們能夠充分把握這個市場中的長期成長和基礎設施投資機會，我們非常期待繼續鞏固本地團隊在過去六七年中取得的成功。馬蒂——格雷格，我們交給你了。

Sure. Thanks, Shilen. Turning to slide 17. As Marty said, the key takeaway here on the '24 California general rate cases that we're expecting a proposed decision very soon, given that where we are in the process. As we previously reported, in the case, we proposed to invest $1.6 billion in water infrastructure in order to continue providing safe and reliable water service to our customers.

當然。謝謝你，希倫。翻到第17張幻燈片。正如馬蒂所說，關於 2024 年加州一般費率案件，關鍵在於，鑑於我們目前所處的階段，我們預計很快就會有擬議的決定出爐。正如我們之前報導的那樣，我們提議投資 16 億美元用於水利基礎設施建設，以便繼續為我們的客戶提供安全可靠的供水服務。

We also requested revenue adjustments over the three year period totaling just a little under $3 million given the fact that the commission can vote as early as 30 days after the proposed decision is issued and our oral arguments made, we believe that the commission were to issue a proposed decision by March 5, there would be adequate time for the commission to consider and adopt the final decision at its next voting meeting on April 9. Obviously, we'll provide an update when we receive the proposed decision.

鑑於委員會最早可在擬議決定發布後 30 天內進行投票，並且我們已經進行了口頭辯論，因此我們也要求對三年期間的收入進行調整，總額略低於 300 萬美元。我們認為，如果委員會在 3 月 5 日之前發布擬議決定，則有足夠的時間讓委員會在 4 月 9 日的下次投票會議上考慮並通過最終決定。顯然，一旦收到擬議的決定，我們將及時提供最新消息。

Turning to slide 18. I I'll provide a brief update on regulatory activity across our other jurisdictions, and I'll start with Hawaii. In November of 2025, we filed a rate case for -- in Hawaii for our Capital District requesting $2.2 million in annual revenues to recover higher operating costs and system improvements. Additionally, in October 2025, the Hawaii PUC approved a $4.7 million annual revenue increase for Hawaii Water's five Waikoloa systems with a two year phase-in that began in October 2025.

翻到第18張幻燈片。我將簡要介紹我們其他轄區的監管活動，首先從夏威夷開始。2025 年 11 月，我們向夏威夷首都區提交了一份費率申請，要求每年增加 220 萬美元的收入，以彌補更高的營運成本和系統改進費用。此外，2025 年 10 月，夏威夷公共事業委員會批准夏威夷水務公司旗下五個 Waikoloa 供水系統每年增加 470 萬美元的收入，分兩年逐步實施，從 2025 年 10 月開始。

Moving to Texas. During the second quarter of 2025, BVRT reached settlement with the consumer advocate on our 2024 GRC and interim rates were adopted and implemented in July of 2025. These rates are not subject to refund, and we're waiting on a final PUC Texas approval that is currently pending.

搬到德克薩斯州。2025 年第二季度，BVRT 與消費者權益倡導者就 2024 年 GRC 達成和解，並於 2025 年 7 月通過並實施了臨時費率。這些費用不予退還，我們正在等待德州公共事業委員會的最終批准，目前該批准仍在審批中。

Moving to Washington. In September of 2025, Washington Water file their rate case with the Washington Utilities and Transportation Commission requesting a $4.9 million annual revenue increase to recover cost of system investments and rising operating costs. We expect the case to be completed and new rates implemented in the second half of 2026.

搬到華盛頓。2025 年 9 月，華盛頓水務公司向華盛頓公用事業和運輸委員會提交費率申請，要求每年增加 490 萬美元的收入，以彌補系統投資成本和不斷上漲的營運成本。我們預計該案件將於 2026 年下半年結案，新的費率也將在 2026 年下半年實施。

Overall, these filings demonstrate our continued investment in infrastructure, proactive regulatory engagement and disciplined efforts to align rates with the cost of providing safe, reliable service. Marty, back to you.

總體而言，這些文件表明我們持續投資於基礎設施，積極參與監管事務，並努力使費率與提供安全可靠服務的成本保持一致。馬蒂，把機會交還給你。

Thanks, Greg, and I'm now on that last page. So what are we focused on in 2026, our centennial year. First and foremost, we're committed to a timely completion of the acquisitions we announced with Nexus Water and for Nevada and for Oregon and work with Nexus Water, you completely -- successfully winning those transactions on time and in a way that it is good for customers and good for the employees. So we expect the smooth transition there.

謝謝你，格雷格，我現在正在看最後一頁。那麼，在2026年，也就是我們的百年慶典之年，我們的工作重點是什麼？首先，我們致力於及時完成與 Nexus Water 宣布的內華達州和俄勒岡州的收購，並與 Nexus Water 完全合作——成功地按時完成這些交易，並以對客戶和員工都有利的方式完成這些交易。因此我們預計過渡過程會很順利。

As Greg mentioned, we have a lot of regulatory activities going on, whether it's the '24 rate case in California. And then we have the rate case that Greg just mentioned in Washington, Mexico, Hawaii as well as change of control applications that we're working on.

正如格雷格所提到的，我們有很多監管活動正在進行，例如加州的「24號費率案」。然後，我們還有格雷格剛才提到的華盛頓、墨西哥、夏威夷的費率案件，以及我們正在處理的控制權變更申請。

And then, of course, once we get the '24 rate case done, it's a three year cycle in California, we start to pivot on planning the 2027 general rate case. So it's just kind of keeps moving forward. We'll continue to pursue growth opportunities in these high-growth areas and looking for opportunities for systems that are kind of close to where we are that we can easily integrate on our platform and that meet our investment criteria.

當然，一旦我們完成了 2024 年的費率調整案（加州的費率調整週期為三年），我們就會開始著手規劃 2027 年的一般費率調整案。所以它就一直向前發展著。我們將繼續在這些高成長領域尋求成長機會，並尋找與我們業務範圍相近、可以輕鬆整合到我們平台上且符合我們投資標準的系統機會。

Again, just to remind everyone, the primary growth engine at California Water Service Group is really the reinvestment of existing capital into our rate base. And as Jim said, we were just about 10% year-over-year increase in CapEx, that's the primary growth engine and that excludes in either PFOS staff. And then secondary, we plan on continually strategic acquisitions like what we've done here with Nexus that add to the existing platform.

再次提醒大家，加州水務集團的主要成長引擎其實是將現有資本再投資於我們的費率基礎。正如吉姆所說，我們的資本支出比去年同期成長了約 10%，這是主要的成長引擎，而且這還不包括 PFOS 員工。其次，我們計劃不斷進行策略性收購，就像我們收購 Nexus 一樣，以增強現有平台。

So -- but having criteria that we use to evaluate acquisitions is really important because we want to maintain that 10% cadence on the CapEx line. And we also believe that allows us to keep rates affordable while making sure that our systems are resilient and we're building resiliency into our systems as we deal with things like climate change.

所以——但是，擁有評估收購的標準非常重要，因為我們希望維持資本支出10%的節奏。我們也相信，這使我們能夠在保持價格合理性的同時，確保我們的系統具有韌性，並且我們正在努力增強系統的韌性，以應對氣候變遷等問題。

And then, of course, lastly, we will continue our disciplined strategy on the regulatory side, working with our regulators. Affordability continues to be an issue. We know and understand that. We've been able to keep our rates affordable. We've been able to maintain our rate base growth and our capital replacement program. So we'll continue looking at that and making sure we're being sensitive to the needs of our customer of balancing public health and sustainability and reliability in the systems.

最後，當然，我們將繼續在監管方面採取嚴謹的策略，與監管機構合作。價格承受能力仍然是個問題。我們明白這一點。我們一直努力保持價格親民。我們得以維持費率基礎成長和資本更新計劃。因此，我們將繼續關注這一點，並確保我們能夠敏銳地滿足客戶的需求，在公共衛生、永續性和系統可靠性之間取得平衡。

So with that Desire, we will open it up for questions, please.

所以，帶著這份願望，我們決定開放提問環節，請大家踴躍提問。

(Operator Instructions)

（操作說明）

Davis Sunderland, Beard.

戴維斯·桑德蘭，比爾德。

Good morning, David.

早安，大衛。

Gentlemen. Marty, Jim, Shilen, Greg, thank you, guys, for the update and thank you for taking my questions. Good morning. [Marty's] exciting updates -- maybe I'll start with what could be viewed as, I guess, the least exciting first just on the GRC delay. Marty, in your prepared remarks, I think you said this case is a little different. It seems from my seat that it may be a lot different than the highly unusual a 15-month delay last time.

先生們。Marty、Jim、Shilen、Greg，謝謝你們提供最新消息，也謝謝你們回答我的問題。早安. [Marty]帶來了令人興奮的最新消息——也許我應該先從最不令人興奮的GRC延期消息開始說起。馬蒂，我想你在事先準備好的演講稿中說過，這個案子有點特別。依我看來，這次的情況可能與上次極為罕見的 15 個月延誤大不相同。

But I guess my question is just is the delay of cases, something that we should expect as a new norm and fully recognizing that this is a very large and complex case. I guess just what gives you guys confidence in future cases staying on track, so to speak?

但我想問的是，案件延誤是否應該成為一種新常態，我們應該充分認識到這是一個非常龐大且複雜的案件。我想問的是，是什麼讓你們對未來案件的進展充滿信心？

I'll go ahead and answer that question. Really, a couple of things that we would say. The California Water Association over the past three or four years has been really focused on educating the commissioners about the impacts of the delays on customers. And we have seen actions moving to get the cases out on a more timely basis.

我將回答這個問題。其實，我們有幾點想說。在過去三、四年裡，加州水務協會致力於向委員普及供水延誤對使用者的影響。我們已經看到一些行動正在推進，以便更及時地處理這些案件。

Second, one of the lead advocates for that is the commissioner that's assigned to our case, Commissioner Matt Baker, and he is very focused on getting decisions done on time. And then the third thing really with where we're feeling -- where this -- our proposed decision should be coming out pretty soon is the water division staff at the commission has been asking us for information to help them process up and get to publish the PD very similar to what they did in the '21 and 2018 GRCs right before the PDs came out. So that's where I feel that long term, it will -- the cases will come out on a more timely basis and then short term for our case side. We see it coming out in the very near future.

其次，其中一位主要倡導者是負責我們案件的專員馬特貝克專員，他非常注重按時做出決定。第三點，也是我們目前感受的——我們提出的決定應該很快就會公佈——委員會水務部門的工作人員一直在向我們索要信息，以幫助他們處理並發布 PD，這與他們在 2021 年和 2018 年 GRC 發布 PD 之前所做的非常相似。所以我覺得從長遠來看，案件將會更及時地水落石出，而從短期來看，我們的案件方面也會如此。我們預計它將在不久的將來面世。

Yeah. And just to echo what Greg said, I was being politically correct in my opening comments, Davis. But in the last rate case, it was just kind of like a black hole, like stuff was submitted, and then we waited and waited and waited and waited and there wasn't a lot of communication. We weren't getting questions. As Greg said, we got a lot of questions at the very, very end and then the PD came out all of a sudden.

是的。正如格雷格所說，戴維斯，我開場白裡確實措辭很政治正確。但在上一次的費率案件中，情況就像一個黑洞，提交了材料，然後我們就一直等啊等啊等啊等，幾乎沒有任何溝通。我們沒有收到任何問題。正如格雷格所說，在最後關頭我們收到了很多問題，然後警局突然就出來了。

It's been really different in this case. The judge -- and when it was delayed, gave us the 3% in our rate increase right away, which we thought was good. They have been asking questions throughout the process, which is good. And so we just -- we've seen a lot of activity, which leads us to believe they're very focused on it.

這次的情況確實截然不同。法官——儘管有所延誤，但還是立即批准了我們3%的利率上漲，我們認為這很好。他們在整個過程中一直在提問，這是好事。因此，我們看到了很多活動，這讓我們相信他們非常重視這件事。

So well, they haven't given us any assurances of other date, it's been very clear that they've made it a priority at the commission. I think the other big thing that's changed now from where it was in the '21 rate case is affordability is a big issue. And when you deal with things in California, like the skyrocketing electric rates that people had to deal with and gas rates that are up, the commissions are getting more scrutiny about rate increases. And so the idea of making our rate increase look worse than what it really is because you can't get a rate case out. I don't think the commission likes being in that position.

雖然他們沒有給我們任何關於其他日期的保證，但很明顯，委員會已經把這件事列為優先事項。我認為與 2021 年的利率案例相比，現在發生的另一個重大變化是，負擔能力是一個大問題。在加州，人們必須面對電費飆升和天然氣價格上漲等問題，因此，相關委員會對費率上漲的審查也越來越嚴格。因此，我們試圖讓我們的利率上漲看起來比實際情況更糟糕，因為我們無法提出利率申訴。我認為委員會並不喜歡處於這種情況。

And having a commissioner signed your case used to run the office rate or advocates. I think it's good because they deal with those complaints from customers and rates go up. And so Baker has been very, very clear that this thing is getting rate cases on time. So it can vary commissioner by commissioner. And while you have an assigned ALJ, the real hearing officer really is the commissioner in these cases.

讓專員簽署你的案件過去是為了支付辦公室或律師的費用。我認為這很好，因為他們可以處理客戶的投訴，而且費率也會上漲。因此，貝克已經非常非常明確地表示，這件事是為了按時處理費率案件。因此，具體情況可能因專員而異。雖然會指定一名行政法官，但這些案件中真正的聽證官實際上是專員。

And so the commissioner kind of sets the tone in this case, I think we're fortunate we have Baker who has been setting the tone. We need to get the rate cases out on time. It'd be reasonable and diligent in our approach. So I think for now, I frankly expect to get a decision here relatively soon. And obviously, when it comes out, it's material, so it will be '18 and right away when it comes out.

因此，專員在某種程度上決定了本案的基調，我認為我們很幸運有貝克這樣一位定下基調的專員。我們需要按時提交費率案件報告。這將是合理且嚴謹的做法。所以我覺得，坦白說，我預計很快就能得到一個結果。顯然，當它面世時，它就是一部作品，所以它將是 2018 年的作品，並且會在它面世後立即面世。

That is super helpful. Thank you both for all the details there. Maybe my second question, Marty, I appreciate you bringing it up the [disc] in Nevada. I was just going to ask about maybe the friendliness of operating environments or specifically any key regulatory mechanisms in either Oregon or Nevada that are worth calling out? Either that are in place now or that you might be pursuing, that would be helpful.

這太有幫助了。謝謝你們提供的所有細節。馬蒂，我的第二個問題是，感謝你提到內華達州的[光碟]。我原本想問俄勒岡州或內華達州的營商環境是否友好，或者俱體有哪些值得一提的關鍵監管機制？無論是您現在已經採取的措施，還是您正在採取的措施，都將有所幫助。

And I think, Jim, you also mentioned in your comments, CapEx, of course, does not include potential investments in these, and maybe it's too early to say, but any thoughts on what those might look like would be helpful, too.

吉姆，我想你也在評論中提到過，資本支出當然不包括對這些方面的潛在投資，現在說這些可能還為時過早，但任何關於這些投資可能是什麼樣子的想法也會很有幫助。

Yeah, sure. Let's start with Nevada. And Nevada has got a very reasonable commission which is positive with me for our water systems that we're acquiring there, they're allowing consolidated or statewide rates to be phased in over six years for the water systems.

當然可以。我們先從內華達州開始。內華達州的委員會收費非常合理，這對我們正在那裡收購的水務系統來說是個好消息，他們允許在六年內分階段實施統一或全州統一的水務費率。

The two wastewater systems are already on a statewide rate. As we mentioned, the hybrid rate environment, which means the historic test year with about a half year capital improvements into your first year being included in the case.

這兩個污水處理系統已經按照全州統一標準收費。正如我們所提到的，混合利率環境，這意味著歷史測試年，以及第一年大約半年的資本改善，都將納入案例中。

As you said, they have the [DSIC]. They also have decoupling in Nevada and their rate case processes to approve them the last about six months in Oregon. They also have a hybrid system of a rate case. They allow construction work and progress in rate case. They have a mechanism for interim rate memorandum account if your case is late.

正如你所說，他們有[DSIC]。他們在內華達州也有脫鉤措施，而俄勒岡州的費率審批流程在過去大約六個月裡一直在進行。他們還有一個混合的費率案件製度。他們允許在費率案件中進行施工和進度調整。如果你的案件逾期未決，他們會提供臨時費率備忘錄帳戶機制。

They allow adjustments for changes in your water production costs from your wholesalers and their cases take about six months to complete. In Oregon, about half of the systems are nonregulated wastewater systems. We -- Nexus has treated them as they treat their regulated entities. And so they file a rate case annual adjustment on an annual basis. Those are kind of the high-level benefits of each of the rate-making areas in each state.

他們允許根據批發商的水生產成本變化進行調整，他們的案件大約需要六個月才能完成。在俄勒岡州，大約一半的污水處理系統屬於非監管污水處理系統。我們－Nexus 對待他們的方式，與他們對待受監管實體的方式相同。因此，他們每年都會提交費率調整申請。以上是各州各費率制定領域的主要優勢。

Yeah. And I think as far as the CapEx goes, Davis, clearly, we're working -- first of all, they're historically in state. So what we don't get preapproval like we do in California, but Nevada did file a capital plan in their last rate case.

是的。我認為就資本支出而言，戴維斯，顯然，我們正在努力——首先，他們歷來都在這個州。所以，雖然我們不像加州那樣獲得預先批准，但內華達州在上一次費率調整案中提交了一份資本計劃。

And as a result of that, there's kind of pre recognition of what the levels are going to be at least in Nevada as we kind of move forward. But I would expect in the first couple of years, somewhere between $20 million to $30 million in CapEx between the two systems.

因此，至少在內華達州，隨著我們不斷前進，人們對未來的水平會有一定程度的預判。但我預計在頭幾年，這兩個系統的資本支出將在 2,000 萬至 3,000 萬美元之間。

And then as we get more familiarity with the systems, that number could change. We feel there's also a lot of opportunity there for tuck-in -- potential tuck-in acquisitions around the systems, especially in Nevada. So I think there's some great opportunity there that we're going to be able to take advantage of not only because it provides us the diversification that Marty talked about, but because there is an opportunity for us to to continue investment growth.

隨著我們對系統的熟悉程度加深，這個數字可能會改變。我們認為，在各個系統周圍，尤其是在內華達州，還有很多機會進行補充收購。所以我認為這裡蘊藏著巨大的機遇，我們不僅可以利用它來實現馬蒂所說的多元化投資，還能藉此機會繼續實現投資成長。

Super helpful again, and thank you. Maybe if I could be greedy and just sneak in one more quick one. I saw yesterday the EPA appears to officially be moving forward now with the PFOS pushout that's been talked about now for a few quarters.

再次幫了我很大的忙，謝謝！也許我可以貪心一點，再偷偷吃一個。我昨天看到，美國環保署似乎正式開始推動PFOS的淘汰工作，這項工作已經討論了好幾個季度了。

I know we've talked about this before, and Marty, you've said your plans here probably won't change, continue to make the upgrades as they come. But maybe just give any update on funds that are flowing as a result of the class action suit and then if that first piece is indeed correct. And thank you, guys, very much.

我知道我們之前討論過這個問題，馬蒂，你也說過你的計劃可能不會改變，會繼續根據實際情況進行升級。但或許可以先更新集體訴訟後資金的流入情況，然後再看看第一件事是否屬實。非常感謝各位。

Yeah. No. Good question, Davis. I think I've used the example, it's really hard to look at a mother with their child and say, yes, there's something in the water that's not safe, but don't worry about it for three years, right? That just doesn't work. And I think consumers have gotten fairly well educated on water. And because as a utility, our product is consumable and it's ingested there's no room for error on water quality. It is absolutely critical. That's why it's in our bonus plan. That's why it's published right upfront.

是的。不。問得好，戴維斯。我想我舉過這個例子，看著一位母親和她的孩子，然後說，是的，水裡有些東西不安全，但是三年內不用擔心，對吧？這根本行不通。我認為消費者對水質的了解已經相當充分了。而且，作為公用事業公司，我們的產品是消費品，會被攝入，因此水質方面容不得半點差錯。這至關重要。這就是它被納入我們獎金計劃的原因。所以才把它放在最前面公佈。

We show what the ramifications are. Our goal is to meet primary and secondary water quality standards every moment that we operate in. And obviously, as this becomes a new MCL, we got to be compliant with it. So we're moving forward with our plans.

我們展示了其後果。我們的目標是在營運的每一刻都達到一級和二級水質標準。顯然，既然這已成為新的MCL，我們就必須遵守​​它。所以我們正在推進我們的計劃。

What we've seen when you had this fight between the states and Feds on kind of when is a go, where it go if the stats have said, hey, we might delay this three years. We've seen states, okay, but then we're going to make it effective sooner, right? Because again, I don't think anyone wants to not protect their citizens. I think that's really important.

我們看到，當各州和聯邦政府就何時啟動、在哪裡啟動這個問題發生爭執時，如果統計數據表明，嘿，我們可能會將此事推遲三年。我們已經看到了一些情況，好吧，但我們會盡快讓它生效，對吧？因為我認為沒有人願意不保護自己的公民。我認為這非常重要。

So we're moving ahead as planned. In 2025, Jim, I believe we spent about $20 million on our PFOS programs. And that's really getting all the program logistics up, the planning for all the constructions, putting the contracts at the bid, procuring all the materials and scheduling now. We're running it as a corporate group sponsored program.

所以我們正在按計劃推進。吉姆，我相信到 2025 年，我們在 PFOS 專案上花了大約 2000 萬美元。現在要做的就是把所有專案後勤工作都安排好，包括所有建設專案的規劃、招標合約的簽訂、所有材料的採購和進度安排。我們是把它當作企業團體贊助計畫來運作的。

So there's a PMO, project management office, just really down the hall from me here. We have a very, very good engineers living in that program. The senior management team gets updates on it all the time, and everything is being scheduled out.

專案管理辦公室（PMO）就在我這邊的走廊盡頭。那個專案裡住著很多非常優秀的工程師。高階管理團隊會隨時了解最新情況，所有事項都會安排妥當。

So we're going to continue going kind of full steam ahead. I expect in 2026, Jim, if I remember correctly, we're going to spend between $15 million, $17 million on PFOS in 2026. Again, that's incremental to the capital numbers that Jim has shared and we're going to keep going for it. In terms of recoveries, Jim, what's our net amount that we've recovered so far is it 40-some million-odd?

所以我們會繼續全力以赴。吉姆，如果我沒記錯的話，我預計到 2026 年，我們將在 PFOS 上花費 1500 萬美元到 1700 萬美元。再次強調，這是在吉姆分享的資本數字基礎上增加的，我們將繼續努力。吉姆，就追回款項而言，我們目前為止的淨追討金額是多少？是四千多萬美元嗎？

But the net amount is just slightly above, I think slightly below $40 million after the attorneys have taken their share of the proceeds. But we continue to work on other opportunities to fund those investments. I know we've got a pretty strong ramp program underway that's really is going to help us, I think, in some of our more challenged districts and states. So we're looking at potential grant dollars in addition to the recovery dollars.

但扣除律師分成後，淨額略高於，我認為略低於 4,000 萬美元。但我們仍在努力尋找其他途徑為這些投資提供資金。我知道我們正在推行一項非常強大的過渡計劃，我認為這真的會幫助我們一些比較困難的地區和州。所以，除了災後重建資金外，我們還在考慮潛在的撥款資金。

The other thing I would just add is that if you take a look at the $235 million that we are anticipating in terms of spend for PFOS probably you have to think of it in two kind of tranches. One is the treatment and the other is where new wells need to be drilled in order to take out to replace old wells or to put new wells in where we don't believe there is as big of a contamination problem.

我還要補充一點，如果我們看一下我們預計在 PFOS 方面的支出 2.35 億美元，可能需要將其分為兩部分來考慮。一是處理方法，二是需要鑽新井來替換舊井，或是在我們認為污染問題不那麼嚴重的地方打新井。

And so the treatment is going to be in place much quicker the wells. It usually takes us three, four, five years depending upon the permitting process to get those wells going up. But a majority of the treatment we do anticipate right now being put in place by the end of 2027.

因此，治療措施將比油井更快到位。根據審批流程的不同，通常需要三到五年才能讓這些油井開工。但我們預計，目前大部分治療措施將在 2027 年底前落實到位。

It's based, yeah.

是的，它有依據。

Outstanding. Thank you, guys, very much. Appreciate all the details.

傑出的。非常感謝各位。感謝您提供的所有細節。

Hi, Davis. Have a good day. please support call [on] follow up.

你好，戴維斯。祝您今天愉快。請支援後續來電。

(Operator Instructions)

（操作說明）

There are no further questions at this time. I would like to turn the call back over to Marty Kropelnicki for closing remarks.

目前沒有其他問題了。我謹將電話交還給馬蒂·克羅佩爾尼基，請他作總結發言。

Alright. Thank you, everyone, for joining us here today. Obviously, 2026 is starting off with a bang. We have plenty to do on our agenda in California Water Service Group, and we'll look forward to integrating the acquisitions that we talked about, the Nexus acquisitions as well as the BVRT acquisitions that we announced.

好吧。謝謝各位今天蒞臨現場。顯然，2026 年將以轟轟烈烈的方式拉開序幕。加州水務集團有很多工作要做，我們期待著整合我們之前談到的收購、Nexus 收購以及我們宣布的 BVRT 收購。

Getting the rate cases, staying focused on the rate cases, getting those equipment as quickly as possible and then continue with the PFOS treatment in our capital program. So there'll be plenty to talk about at the end of Q1, and we'll look forward to giving an update then. So until then, thanks for joining us today. Be safe, and we'll talk to everyone soon. Thank you.

拿到費率案件，專注於費率案件，盡快拿到這些設備，然後繼續在我們的資本計畫中進行 PFOS 處理。因此，第一季末會有很多事情要討論，我們期待屆時能為大家帶來最新進展。那麼，在此之前，感謝您今天的收看。注意安全，我們很快會和大家聯絡。謝謝。

Ladies and gentlemen, that concludes today's call. Thank you all for joining us. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝各位的參與。您現在可以斷開連線了。