H2O America (HTO) 2023 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the SJW Group 2023 financial results conference call. (Operator Instructions) Please be advised, today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 SJW 集團 2023 年財務業績電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to one of your speakers today, Andrew Walters, Chief Financial Officer and Treasurer. Please go ahead.

現在我想將會議交給今天的發言人，財務長兼財務主管安德魯沃特斯 (Andrew Walters)。請繼續。

Thank you, Operator. Welcome to the 2023 Financial Results Conference call for the SJW Group. I will be presenting today with Eric Thornburg, Chair of the Board, President and Chief Executive Officer. For those who would like to follow along, slides accompanying our remarks are available on our website at sjwgroup.com.

謝謝你，接線生。歡迎參加 SJW 集團 2023 年財務業績電話會議。今天我將與董事會主席、總裁兼執行長 Eric Thornburg 一起進行演講。對於想要跟進的人，可以在我們的網站 sjwgroup.com 上獲取我們的評論附帶的幻燈片。

Before we begin today, I would like to remind you that this presentation and the related materials posted on our website may contain forward-looking statements. These statements are based on estimates and assumptions made by the company in light of its experience, historical trends, current conditions, and expected future results, as well as other factors that the company believes are appropriate under the circumstances. Many factors could cause the company's actual results and performance to differ materially from those expressed or implied by the forward-looking statements. For a description of some of the factors that could cause actual results to be different from statements in this presentation, we refer you to the financial results press release and to our most recent forms 10-K, 10-Q, and 8-K filed with the Securities and Exchange Commission, copies of which may be obtained on our website. All forward-looking statements are made as of today, and SJW Group disclaims any duty to update or revise such statements. You will have an opportunity to ask questions at the end of the presentation.

在今天開始之前，我想提醒您，本簡報和我們網站上發布的相關資料可能包含前瞻性陳述。這些陳述是基於公司根據其經驗、歷史趨勢、當前狀況和預期未來結果以及公司認為在這種情況下適當的其他因素做出的估計和假設。許多因素可能導致公司的實際結果和業績與前瞻性陳述中明示或暗示的結果和業績有重大差異。有關可能導致實際結果與本簡報中的陳述不同的一些因素的描述，我們建議您參閱財務結果新聞稿以及我們最新提交的表格 10-K、10-Q 和 8-K與證券交易委員會，其副本可以在我們的網站上獲得。所有前瞻性陳述均截至今日作出，SJW 集團不承擔任何更新或修改此類陳述的責任。您將有機會在演示結束時提問。

As a reminder, this webcast is being recorded, and an archive of the webcast will be available until April 22, 2024. You can access the press release and the webcast at our corporate website.

謹此提醒，該網路廣播正在錄製中，並且該網路廣播的存檔將在 2024 年 4 月 22 日之前提供。您可以在我們的公司網站上存取新聞稿和網路廣播。

I will now turn the call over to Eric Thornburg. Eric.

我現在將把電話轉給埃里克·索恩伯格。埃里克.

Welcome, everyone, and thank you for joining us. My name is Eric Thornburg, and it is my honor to serve as Chair, President, and CEO of SJW Group. I'm pleased to share that we had another successful year as our team continues to meet drinking water and environmental standards, deliver on our public health and environmental stewardship commitments, and provide high-quality water and exceptional service to customers. We also started and ended our 2023 financial performance on a strong note, delivering value for our shareholders through the continued execution of our proven growth strategy.

歡迎大家，感謝您加入我們。我的名字是 Eric Thornburg，我很榮幸能擔任 SJW 集團的董事長、總裁兼執行長。我很高興與大家分享，我們又度過了成功的一年，我們的團隊繼續滿足飲用水和環境標準，履行我們的公共衛生和環境管理承諾，並為客戶提供高品質的水和卓越的服務。我們也以強勁的勢頭開始和結束了 2023 年的財務業績，透過持續執行我們行之有效的成長策略，為股東創造了價值。

In 2023, we secured constructive regulatory outcomes across our operations, including the cost of capital decision and the reimplementation of the water conservation memorandum account in California, water infrastructure and conservation adjustments in Connecticut, and the settlement of our Biddeford-Saco general rate case in Maine.

2023 年，我們在整個業務中取得了建設性的監管成果，包括加州的資本成本決策和節水備忘錄帳戶的重新實施、康乃狄克州的水基礎設施和節水調整，以及我們在康乃狄克州的Biddeford -Saco 一般費率案件的解決。緬因州。

We achieved 12% customer growth year over year in Texas. Since 2006, Texas water has more than quadrupled in customers through organic growth and strategic acquisitions, and today serves more than 28,000 water connections and 950 wastewater connections.

我們在德克薩斯州的客戶年增了 12%。自 2006 年以來，透過有機成長和策略收購，德州水務公司的客戶數量增加了四倍多，如今為超過 28,000 個供水管網和 950 個廢水管網提供服務。

We invested $272 million in capital improvements, surpassing our planned expenditures announced at this time last year by $17 million. Thanks to the efforts of our local teams, our investments in drinking water and wastewater infrastructure spanned the replacement of over 47 miles of water mains to water treatment improvements, including a $14 million groundwater treatment facility in East Windsor, Connecticut, upgrades at our Park Shores surface water treatment facility in Kamal County, Texas, construction of an 800,000-gallon storage lagoon in Camden, Maine, and two 5-million-gallon storage tanks in California.

我們投資了 2.72 億美元用於資本改善，比去年此時宣布的計畫支出多了 1,700 萬美元。由於我們當地團隊的努力，我們對飲用水和廢水基礎設施的投資涵蓋了更換超過 47 英里的總水管和水處理改進，包括康涅狄格州東溫莎價值 1,400 萬美元的地下水處理設施、公園海岸的升級德克薩斯州卡邁勒縣的地表水處理設施，在緬因州卡姆登建造一個80 萬加侖的儲存潟湖，以及在加州建造兩個500 萬加侖的儲存槽。

We advanced our commitment to reduce operating costs by investing in capital projects that sustainably reduce operating expenses, like our asset management program in California. This program reduces unplanned repairs and maintenance expenses by leveraging technology, including artificial intelligence to predict the failure of an asset and the resulting consequences. And we delivered earnings per diluted share of $0.59 in the fourth quarter and $2.68 for the year, well above our original forecast.

我們透過投資可持續降低營運費用的資本項目（例如我們在加州的資產管理計劃）來推進降低營運成本的承諾。該計劃透過利用人工智慧等技術來預測資產故障及其後果，從而減少計劃外維修和維護費用。我們第四季攤薄後每股收益為 0.59 美元，全年攤薄後每股收益為 2.68 美元，遠高於我們最初的預測。

In 2024, we will continue to execute on the key elements of our strategy to create meaningful value and drive future earnings growth. We will continue making strategic investments to maintain and improve our water supply and infrastructure and also focus on opportunities that reduce operating expenses. These include advanced leak detection, advanced metering infrastructure that promises to reduce field visits and fleet miles, additional solar generation, battery energy storage systems, and expansion of our electric vehicle fleet.

2024年，我們將繼續執行我們策略的關鍵要素，以創造有意義的價值並推動未來的獲利成長。我們將繼續進行策略性投資，以維持和改善我們的供水和基礎設施，並專注於降低營運費用的機會。其中包括先進的洩漏檢測、先進的計量基礎設施（預計將減少現場訪問和車隊里程）、額外的太陽能發電、電池儲能係統以及擴大我們的電動汽車車隊。

We will also see increased capital expenditures to remediate per-and polyfluoroalkyl substances, or PFAS. Approximately $230 million is estimated for PFAS treatment. And we remain intensely focused on working with regulators and stakeholders for constructive regulatory outcomes across our operations, such as the recently filed general rate case in California, the ongoing general rate case in Connecticut, and the system improvement charge in Texas, which we will discuss later in the call.

我們還將看到用於修復全氟烷基物質和多氟烷基物質（PFAS）的資本支出增加。預計 PFAS 治療費用約為 2.3 億美元。我們仍然高度重視與監管機構和利益相關者合作，在我們的業務中取得建設性的監管成果，例如最近在加利福尼亞州提交的一般費率案件、康涅狄格州正在進行的一般費率案件以及德克薩斯州的系統改進費用，我們將討論這些案件稍後在通話中。

For now, Andrew will review our financial results and regulatory updates in our state operations. Andrew?

目前，安德魯將審查我們州業務的財務表現和監管更新。安德魯？

Thank you, Eric. Last evening after the market closed, we released our fourth-quarter and 2023 operating results. Couple of items to note. The quarter-over-quarter comparisons between the 2023 and 2022 operating results are affected by and reflect the delay in San Jose Water Company's 2022 to 2024 general rate case decision.

謝謝你，埃里克。昨晚收盤後，我們發布了第四季和 2023 年的營運表現。有幾點要注意。2023 年和 2022 年經營業績的環比比較受到聖荷西水務公司 2022 年至 2024 年一般費率案件判決的影響並反映了該判決的延遲。

As a reminder, while the California Public Utilities Commission approved the settlement agreement, and San Jose Water Company recorded the authorized revenue increase from the general rate case in the fourth quarter of 2022, the revenue increase was retroactive to January 1, 2022. This delay in recognizing the revenues authorized in the general rate case affected quarter over quarter comparisons in 2023.

需要提醒的是，雖然加州公用事業委員會批准了和解協議，聖荷西自來水公司在 2022 年第四季度記錄了一般費率案件的授權收入增長，但收入增長追溯至 2022 年 1 月 1 日。一般費率情況下確認收入的延遲影響了 2023 年的季度比較。

Also in California, the CPUC authorized re-implementation of the Water Conservation Memorandum Account, or WCMA, and Water Conservation Expense Management Account, or WCEMA, in October 2023. These revenue expense protection mechanisms were retroactive to April 20, 2023, and are reflected entirely in the fourth-quarter results.

同樣在加州，CPUC 於 2023 年 10 月授權重新實施節水備忘錄帳戶 (WCMA) 和節水費用管理帳戶 (WCEMA)。這些收入費用保護機制追溯至2023年4月20日，並完全反映在第四季業績中。

We saw reduced water usage in Maine due to wet weather and lower industrial usage, and in Texas due to water restrictions because of continuing drought conditions.

由於天氣潮濕和工業用水量減少，我們看到緬因州的用水量減少了，而德克薩斯州的用水量則由於持續乾旱而受到限制。

Now to the results for the quarter. In the fourth quarter reported revenue of $171.3 million and net income of $18.9 million or diluted EPS of $0.59 per share. This compares to 2022 quarterly revenue of $171.4 million and net income of $33.5 million or diluted EPS of $1.09 per share.

現在來看本季的業績。第四季營收為 1.713 億美元，淨利為 1,890 萬美元，稀釋後每股收益為 0.59 美元。相比之下，2022 年季度營收為 1.714 億美元，淨利潤為 3,350 萬美元，攤薄後每股收益為 1.09 美元。

For the full year of 2023, we reported revenue of $670.4 million and net income of $85 million or diluted EPS of $2.68 per share. This compares to 2022 revenue of $620.7 million reflecting an 8% increase and net income of $73.8 million reflecting a 15% increase or diluted EPS of $2.43 per share reflecting a 10% increase, which driven in part by a $0.14 increase due to the partial release of income tax reserves.

2023 年全年，我們報告收入為 6.704 億美元，淨利潤為 8,500 萬美元，攤薄後每股收益為 2.68 美元。相較之下，2022 年營收為 6.207 億美元，成長 8%；淨利為 7,380 萬美元，成長 15%；攤薄後每股收益為 2.43 美元，成長 10%，部分原因是部分發布導致成長 0.14 美元所得稅儲備。

As you can see, the year-to-date increase in diluted earnings per share for 2023 was primarily driven by rate filings of $1.30 per share in California and Maine, as well as a water infrastructure and conservation adjustment increase in Connecticut that were effective in 2023. Other factors include approximately $0.42 combined split evenly between the partial release of income tax reserves that I mentioned a moment ago, lower maintenance and OII cost and the impacts of lower customer usage and the WCMA offset. Partially offsetting the increase was higher water supply cost of $0.93, interest expense of $0.23 on short-term and new long-term debt and a non-recurring $0.17 gain on the sale of non-utility property.

正如您所看到的，2023 年稀釋每股收益年初至今的成長主要是由於加州和緬因州每股 1.30 美元的費率申報，以及康乃狄克州水基礎設施和保護調整的增加，這些調整在2023 年。其他因素包括我剛才提到的部分所得稅儲備釋放、較低的維護和 OII 成本以及較低的客戶使用率和 WCMA 抵消的影響，合計平均分配約 0.42 美元。供水成本上漲 0.93 美元，短期和新長期債務利息支出 0.23 美元，以及出售非公用事業財產的非經常性收益 0.17 美元，部分抵消了這一增長。

Now a breakeven -- a breakdown of the increase in revenue compared to 2022. Revenue increase was mostly driven by 4$6.5 million in cumulative rate filings and $5.7 million in regulatory mechanisms. The revenue increase was partially offset by $6.6 million decreased due to lower usage.

現在已實現損益平衡——與 2022 年相比營收成長的明細。收入成長主要由 4,650 萬美元的累積費率申請和 570 萬美元的監管機制推動。收入成長被使用率下降導致的 660 萬美元收入減少部分抵消。

Turning to our water production expense, there was an increase in water production expense when compared to 2022. The increase was largely driven by $31.8 million in water supply cost, primarily related to the rate increase from our water wholesaler, Valley Water in California. Partially offsetting the increase expenses was a$ 9.7 million decrease due to lower usage.

談到我們的水生產費用，與 2022 年相比，水生產費用有所增加。這一增長主要是由 3,180 萬美元的供水成本推動的，這主要與我們加州的水批發商 Valley Water 的費率上漲有關。由於使用量減少，費用減少了 970 萬美元，部分抵消了增加的費用。

The 3% increase in total other operating expenses compared to the prior year was primarily driven by a $6.2 million gain on prior year sale that did not occur in 2023. An increase in the allowance for customer credit losses and the depreciation and amortization. The increase was partially offset by reduced expenses with a significant portion of this reduction due to San Jose Water Company's continued focus on maturity of the Advanced Asset Management Program, which includes infrastructure condition monitoring and assessments, proactive planned asset replacement versus a run-to-failure approach. Additionally, advances in San Jose Water Company's leak detection technology deployed in the field, as well as other enhanced leak detection capabilities in our field crews, had together enabled the company to detect and repair leaks sooner, avoiding significant costs associated with larger emergency main breaks in the distribution system.

與前一年相比，其他營運費用總額增加了 3%，主要是由於上一年銷售收入增加了 620 萬美元，而 2023 年並未出現這筆收入。增加客戶信用損失準備金以及折舊和攤提。增加的費用被費用減少部分抵消，其中很大一部分費用減少是由於聖何塞水務公司繼續關注高級資產管理計劃的成熟度，其中包括基礎設施狀況監測和評估、主動計劃的資產更換與運行到運行的資產更換。失敗方法。此外，聖荷西水務公司在現場部署的洩漏檢測技術的進步，以及我們現場工作人員的其他增強的洩漏檢測能力，共同使該公司能夠更快地檢測和修復洩漏，避免了與較大的緊急主管道破裂相關的巨額成本在分配系統中。

Turning to our 2023 financing activity. Approximately $83 million in gross proceeds was raised in 2023 through our at-the-market program, including $5.7 million in the fourth quarter. $50 million was for general corporate purposes and the additional amount was raised for acquisitions that closed in the third quarter.

轉向我們 2023 年的融資活動。2023 年，我們透過市場計畫籌集了約 8,300 萬美元的總收益，其中第四季籌集了 570 萬美元。 5000 萬美元用於一般公司用途，額外資金用於第三季完成的收購。

At the end of the year, we had $171.5 million drawn on our $350 million bank lines of credit, leaving $178.5 million available for short-term financing of utility plan additions and operating activities. The average borrowing rate for the line of credit advances during 2023 was approximately 6.29%. Average borrowing rate in 2022 was approximately 3.41%. The effective consolidated income tax rates for 2023 and 2022 were approximately 7% and 10%, respectively.

年底，我們從 3.5 億美元的銀行信貸額度中提取了 1.715 億美元，剩下 1.785 億美元可用於公用事業計劃新增和營運活動的短期融資。2023年信用預付款的平均借款利率約為6.29%。2022年平均借款利率約為3.41%。2023年和2022年的有效綜合所得稅率分別約為7%和10%。

Turning to the California update. On January 2, 2024, the San Jose Water Company filed a general rate case application with the California Public Utilities Commission that will set rates for 2025 through 2027. The application proposes a three-year, $540 million capital expenditure program that addresses several key needs, including treating PFAS, which Eric mentioned earlier, to meet drinking water standards being finalized by the US EPA.

轉向加州的更新。2024 年 1 月 2 日，聖荷西自來水公司向加州公用事業委員會提交了一般費率案件申請，該申請將設定 2025 年至 2027 年的費率。該申請提出了一項為期三年、價值 5.4 億美元的資本支出計劃，旨在解決幾個關鍵需求，包括埃里克之前提到的處理 PFAS，以滿足美國環保署最終確定的飲用水標準。

Reducing greenhouse gas emissions through solar generation, energy storage systems to replace diesel generators, fleet electrification, and advanced acoustic leak detection. Plus advancing the CPUC's environmental and social justice action plan to improve access to high-quality water service, climate resiliency, and economic and workforce development.

透過太陽能發電、取代柴油發電機的儲能係統、車隊電氣化和先進的聲學洩漏檢測來減少溫室氣體排放。此外，還推動 CPUC 的環境和社會正義行動計劃，以改善獲得高品質供水服務、氣候適應能力以及經濟和勞動力發展的機會。

As of January 1, 2024, San Jose Water Company has the benefit of a group insurance balancing account. The purpose of the account is to capture the difference between authorized and actual medical, dental, and opt-out insurance costs. This is yet another regulatory mechanism that helps us to manage this escalating and unpredictable expense.

自 2024 年 1 月 1 日起，聖荷西自來水公司享有團體保險平衡帳戶的權益。該帳戶的目的是獲取授權費用與實際醫療、牙科和選擇退出保險費用之間的差異。這是另一種監管機制，可以幫助我們管理這種不斷升級且不可預測的費用。

The 2024 cost of capital mechanism adjustment was effective on January 1, 2024. It was triggered by 140 basis point increase in Moody's AA Bond Index between October 1, 2022, and September 30, 2023. The return on equity is now 10.01%, less a 20-basis-point reduction due to the reimplementation of the water conservation memorandum accounts for an authorized ROE of 9.81%. The cost of debt is 5.28%, and the authorized rate of return is 7.75%.

2024年資本成本機制調整於2024年1月1日生效。這是由穆迪AA債券指數在2022年10月1日至2023年9月30日期間上漲140個基點引發的。目前股本回報率為 10.01%，減去因重新實施節水備忘錄而減少的 20 個基點，授權股本回報率為 9.81%。債務成本為5.28%，授權回報率為7.75%。

On February 2, 2024, San Jose Water Company, along with three other Class A California water utilities, received approval from the CPUC for a one-year deferment in the 2024 cost of capital filing. With this decision, the CPUC extended the initial filing deadline from May 1, 2024, to May 1, 2025, to help alleviate administrative processing costs for both the water utilities and the CPUC staff. The approved deferral includes the provision that the water cost of capital mechanisms remain in place for 2025 and allows it to adjust up or down in accordance with the movement of 100 basis points or more in the Moody's AA Bond Index between October 1, 2023, and September 30, 2024.

2024 年 2 月 2 日，聖荷西自來水公司以及加州其他三家 A 級自來水公司獲得 CPUC 的批准，將 2024 年資本成本申報延長一年。根據這項決定，CPUC 將初始提交截止日期從 2024 年 5 月 1 日延長至 2025 年 5 月 1 日，以幫助減輕水務公司和 CPUC 工作人員的行政處理成本。核准的延期包括以下規定：2025年的水資本成本機制仍然有效，並允許其根據2023年10月1日至2023年10月1日期間穆迪AA債券指數100個基點或以上的變動進行上下調整. 2024 年 9 月 30 日。

You may recall our advanced metering infrastructure project was authorized by the CPUC in 2022. We're planning to invest approximately $29 million in the AMI project in 2024. This is a approximately $100 million project that is separate from the general rate case capital budget, and the majority of the installation is expected between 2024 and 2026.

您可能還記得我們的先進計量基礎設施專案於 2022 年獲得了 CPUC 的授權。我們計劃在 2024 年為 AMI 計畫投資約 2,900 萬美元。這是一個約 1 億美元的項目，獨立於一般費率案例資本預算，預計大部分安裝將於 2024 年至 2026 年期間完成。

Turning to Connecticut. In Connecticut, we recently concluded the evidentiary hearings in our general rate case that was filed with the Connecticut Public Utility Regulatory Authority in October 2023. Our request is for a $21.4 million or 18.1% increase in annual revenues. Approximately two thirds of the requested rate increase is related to infrastructure investments.

轉向康乃狄克州。在康乃狄克州，我們最近結束了 2023 年 10 月向康乃狄克州公用事業監理局提交的一般費率案件的證據聽證會。我們的要求是年收入增加 2,140 萬美元，增加 18.1%。所請求的加息中大約三分之二與基礎設施投資有關。

The application also includes a proposal for expanding our low-income water rate assistance program, also known as WRAP, for income eligible customers. We were the first water utility in the state to offer this type of program. And in 2023, we provided more than $70,000 in customer assistance through WRAP. We're hopeful that PURA will authorize our request expansion of this important program.

該申請還包括一項針對符合收入資格的客戶擴大低收入水費援助計劃（也稱為 WRAP）的提案。我們是該州第一家提供此類計劃的自來水公司。2023 年，我們透過 WRAP 提供了超過 70,000 美元的客戶協助。我們希望 PURA 能夠批准我們擴展這項重要計畫的請求。

We expect a decision on the Connecticut general rate case at the end of June with any approved revenue increase to be effective on or about July 1, 2024. The decision is not expected to be a significant driver of our 2024 financial results. PURA approved a 1.19% increase in water infrastructure and conservation adjustment that was effective on October 1, 2023. The increase is generating approximately $1.3 million in annualized revenues.

我們預計康乃狄克州一般費率案件將於 6 月底做出決定，任何批准的收入增加將於 2024 年 7 月 1 日左右生效。預計該決定不會成為我們 2024 年財務表現的重要推動因素。PURA 批准將水基礎設施和保護調整增加 1.19%，並於 2023 年 10 月 1 日生效。這一增長帶來了約 130 萬美元的年化收入。

Last March, we filed our general rate case in Maine Water Company's Biddeford-Saco division, requesting a $2.9 million increase in annualized revenues to cover the operating expenses and increased borrowing costs from constructing the new Saco River Water Resource Center. The Maine Public Utilities Commission authorized a temporary rate increase in August of 2023 while the general rate case was being processed.

去年3 月，我們向緬因州自來水公司的Biddeford-Saco 部門提交了一般費率申請，要求年化收入增加290 萬美元，以支付營運費用以及因建設新的Saco 河水資源中心而增加的借貸成本。緬因州公用事業委員會批准在 2023 年 8 月臨時提高費率，同時處理一般費率案件。

January 5, 2024, the Maine Public Utility Commission approved a stipulation agreement between Maine Water and the Office of Public Advocate on our general rate case. Provisions of the approved stipulation agreement include Maine Water's annualized revenue increase of $2.6 million effective January 1, 2024.

2024 年 1 月 5 日，緬因州公用事業委員會批准了緬因州水務公司與公共倡議辦公室之間關於我們的一般費率案例的規定協議。已批准的約定協議的條款包括緬因州水務公司自 2024 年 1 月 1 日起年化收入增加 260 萬美元。

The return on equity for Biddeford-Saco division and for future filings of water infrastructure charges or WISC filings statewide is now 9.5% with an assumed 51% equity and 49% debt capital structure. There's a general rate case stay out provision with the Biddeford-Saco division through January 1, 2027. The stay out does not include WISC filings.

Biddeford-Saco 部門以及未來提交的水利基礎設施費用或全州範圍內的 WISC 備案的股本回報率目前為 9.5%，假定股本結構為 51%，債務資本結構為 49%。Biddeford-Saco 部門有一項截至 2027 年 1 月 1 日的一般費率案例留出條款。暫緩參與不包括 WISC 備案。

Maine Water expects a decision in the first quarter of 2024 on its WISC filing to recover a $1.7 million in completed infrastructure investments in Camden and Rockland divisions. If approved as requested, it would generate $158,000 in annualized revenues.

緬因州水務公司預計將在 2024 年第一季根據 WISC 備案做出決定，收回卡姆登和羅克蘭部門已完成基礎設施投資的 170 萬美元。如果按要求獲得批准，它將產生 158,000 美元的年收入。

As Eric mentioned at the top of the call, we have seen accelerated growth in Texas and the momentum continues. In just the past year, we have seen increasing developer interest in our Texas service area as outstanding development units with the potential for new connections increased 47% to 22,000 units today. That's not surprising as Texas Water currently serves three of the five fastest-growing counties in the United States according to the US Census Bureau.

正如艾瑞克在電話會議開頭提到的那樣，我們看到德州的成長加速，而且這種勢頭仍在繼續。就在過去一年，我們看到開發商對德州服務區的興趣不斷增加，具有新連接潛力的優秀開發單元增加了 47%，達到 22,000 個單元。這並不奇怪，因為根據美國人口普查局的數據，德州水務公司目前為美國成長最快的五個縣中的三個縣提供服務。

With more than 28,000 water connections, 950 wastewater connections in the area between Austin and San Antonio, the company has quadrupled its service connection since 2006 and we intend to continue this momentum through prudent acquisitions, organic growth, and securing strategic water resources such as the supply we acquired in the third quarter.

該公司在奧斯汀和聖安東尼奧之間的地區擁有超過28,000 個供水管網和950 個廢水管網，自2006 年以來其服務連接數已增加了四倍，我們打算透過審慎收購、有機增長和確保戰略水資源（例如我們在第三季獲得了供應。

In January, we filed an application with the Public Utility Commission of Texas to acquire the 3009 Water Company in Comal County that serves approximately 270 water connections.

一月份，我們向德州公用事業委員會提交了收購科馬爾縣 3009 自來水公司的申請，該公司為約 270 個供水管網提供服務。

On February 13, we received a proposed order from the Public Utility Commission of Texas on our application for a system improvement charge in Texas. The proposed order authorized Texas Water to add certain utility plant additions made since 2020 to its rate base, thereby increase revenue and avoiding a general rate case in 2024. Our system improvement charge filing in December 2022 projected an annualized revenue increase of $1.6 million within one year of the PUCT's approval. Our final order is expected as early as March 7, 2024.

2 月 13 日，我們收到了德克薩斯州公用事業委員會關於我們在德克薩斯州申請系統改進費用的擬議命令。擬議的命令授權德克薩斯水務公司將 2020 年以來新增的某些公用事業工廠添加到其費率基礎中，從而增加收入並避免 2024 年出現一般費率情況。我們於 2022 年 12 月提交的系統改善費用預計在 PUCT 批准後一年內年化收入將增加 160 萬美元。我們的最終訂單預計最快將於 2024 年 3 月 7 日發出。

We have seen some recent improvement in the drought conditions in Texas, so the US Drought Monitor continues to classify our service areas being in a state of moderate to extreme drought. Most of our service area is classified as state 2 or stage 3 drought conditions, while a smaller portion is in the most severe stage 4 drought condition. We're targeting voluntary water use reductions that vary based on drought stage. Overall, we've seen reduced usage in this service area compared to 2022 due to the drought.

我們看到德州的乾旱狀況最近有所改善，因此美國乾旱監測機構繼續將我們的服務區域劃分為中度至極端乾旱狀態。我們的服務區大部分屬於二級或三級乾旱，一小部分地區處於最嚴重的四級乾旱。我們的目標是根據乾旱階段自願減少用水量。總體而言，由於乾旱，與 2022 年相比，我們發現該服務區域的使用量有所減少。

With a diverse portfolio of water supplies, a growing wastewater business, and continued acquisitions to the customer base through organic growth and acquisitions, we are very pleased with Texas Water's increased contributions to our consolidated earnings and remain optimistic about its prospects.

憑藉多元化的供水產品組合、不斷增長的廢水業務，以及透過有機成長和收購不斷收購客戶群，我們對德州水務公司對我們綜合收益的貢獻不斷增加感到非常高興，並對其前景保持樂觀。

We're announcing our 2024 guidance of $2.68 to $2.78 of net income per diluted share, which is consistent with our nonlinear long-term growth rate of 5% to 7%. Equity issuance of $55 million to $65 million, excluding acquisition growth, is to support a strong capital investment program. We maintain our five-year capital investment outlook of $1.6 billion, which includes approximately $230 million in estimated PFAS remediation based on the EPA's proposed maximum contaminant levels.

我們宣布 2024 年稀釋每股淨利潤為 2.68 美元至 2.78 美元，這與我們 5% 至 7% 的非線性長期成長率一致。不包括收購成長在內，發行 5,500 萬至 6,500 萬美元的股票是為了支持強大的資本投資計畫。我們維持 16 億美元的五年資本投資前景，其中包括根據 EPA 提議的最高污染物水準估計約 2.3 億美元的 PFAS 修復費用。

The factors underlying our 2024 guidance include a return on equity increase in California from 9.31% to 9.81% net of the 20 basis points and reimplementation of WCMA, which was effective already as of January 1, 2024; the impact of the already completed Biddeford-Saco rate case with a 9.5% ROE and 51% equity, 49% debt capital structure effective January 1, 2024; as well as constructive regulatory decisions on current and prospective regulatory filings. This includes strategic reinvestments in the business in 2024, and the guidance range is consistent with our long-term growth rates.

我們在 2024 年指導的因素包括，扣除 20 個基點後，加州的股本回報率從 9.31% 增加至 9.81%，以及重新實施 WCMA（已於 2024 年 1 月 1 日生效）；已完成的 Biddeford-Saco 利率案例的影響，該案例的 ROE 為 9.5%，股權資本結構為 51%，債務資本結構為 49%，該資本結構於 2024 年 1 月 1 日生效；以及對當前和未來監管備案的建設性監管決定。這包括2024年對業務的策略再投資，指導範圍與我們的長期成長率一致。

Further, we reaffirm our stated long-term growth rate of 5% to 7% that is anchored off our 2022 diluted earnings per share of $2.43, which is a non-linear because of rate case cycles. As investors consider our 2024 guidance, it's important to note that as we mentioned earlier, there was a one-time release of $0.14 related to income tax reserves in 2023.

此外，我們重申我們所宣稱的 5% 至 7% 的長期增長率，這是基於我們 2022 年攤薄每股收益 2.43 美元，由於利率情況週期，這是非線性的。當投資者考慮我們的 2024 年指引時，需要注意的是，正如我們之前提到的，2023 年一次性釋放了 0.14 美元的所得稅儲備金。

With that, I will turn the call over to Eric.

這樣，我會將電話轉給艾瑞克。

Thank you, Andrew. Our 2024 planned capital expenditures are $332 million across all four of our state operations, which includes the $29 million budgeted for advanced metering infrastructure in California. Approximately 65% of our annual capital budget will be recovered through pre-approved projects and infrastructure recovery mechanisms. Approximately one third of our 2024 budgeted capital expenditures or nearly $114 million is targeted to water main replacement. This investment is vital to our principled approach of replacing 1% of transmission and distribution mains each year.

謝謝你，安德魯。到 2024 年，我們所有四個州營運部門的計畫資本支出為 3.32 億美元，其中包括加州先進計量基礎設施預算的 2,900 萬美元。我們約 65% 的年度資本預算將透過預先批准的項目和基礎設施回收機制回收。我們 2024 年預算資本支出的大約三分之一（即近 1.14 億美元）用於更換總水管。這項投資對於我們每年更換 1% 的輸配電幹線的原則至關重要。

Other projects commencing or scheduled for completion in 2024 reflect our commitment to invest in new or replacement treatment and storage systems that are designed and constructed to be more energy efficient and to meet changing operational challenges, including climate change.

其他於2024 年開始或計劃完成的項目反映了我們對投資新的或替換的處理和儲存系統的承諾，這些系統的設計和建造旨在提高能源效率，並應對不斷變化的營運挑戰，包括氣候變遷。

These projects include a multi-year pipeline project to bring new water supply from the recently acquired KT Water Resources to our customers in Texas. A water storage project at our Cambrian Station in California. Two 8.3-million-gallon tanks will be constructed to replace aging storage reservoirs that date back as far as 1890. This multi-year project will enhance water quality, conserve water, and have lower maintenance costs.

這些項目包括一個多年期管道項目，旨在從最近收購的 KT Water Resources 向我們德克薩斯州的客戶提供新的供水。加州寒武紀站的蓄水計畫。將建造兩個 830 萬加侖的儲罐，以取代早在 1890 年就已老化的儲水庫。這個多年期計畫將提高水質、節省用水並降低維護成本。

In Connecticut, work has started on a new groundwater treatment facility in Southbury. This is a new facility to remove iron and manganese that has caused episodes of discolored water for decades. Since Connecticut Water acquired the system in 2017, we have been aggressively addressing the issue by optimizing water treatment and replacing water mains, but the treatment facility is necessary to achieve an efficient, long-term solution.

在康乃狄克州，紹斯伯里的一個新的地下水處理設施的建設工作已經開始。這是一個去除鐵和錳的新設施，幾十年來，鐵和錳一直導致水變色。自從康乃狄克水務公司於 2017 年收購該系統以來，我們一直在透過優化水處理和更換水管來積極解決這個問題，但處理設施對於實現高效、長期的解決方案是必要的。

In Maine, we're preparing this year for the construction of a solar array at our award-winning Saco River Drinking Water Resource Center in Biddeford. Solar generation has always been a part of the design plan, but the local electric utility infrastructure first needed updating. Our onsite solar generation will produce enough power to meet 100% of the resource center's energy needs as early as 2025. Additional solar generation in 2024 is also planned in California and Connecticut.

在緬因州，我們今年正準備在比德福德屢獲殊榮的薩科河飲用水資源中心建造太陽能電池陣。太陽能發電一直是設計計劃的一部分，但當地的電力基礎設施首先需要更新。我們的現場太陽能發電最快將在 2025 年產生足夠的電力來滿足資源中心 100% 的能源需求。加州和康乃狄克州還計劃在 2024 年增加太陽能發電。

San Jose Water Company is also expanding the availability of recycled water for irrigation use. Approximately 2 miles of pipe will bring up to 440 acre-feet of recycled water per year to a nearby golf course, schools, and parks. The potable water saved through the use of recycled water for irrigation is enough to meet the needs of more than 8,000 people daily.

聖荷西水務公司也正在擴大再生水用於灌溉的可用性。大約 2 英里長的管道每年將為附近的高爾夫球場、學校和公園輸送多達 440 英畝英尺的再生水。利用再生水進行灌溉節省的飲用水足以滿足8,000多人每天的用水需求。

One of the ways we measure our impact and success as a company is how have we been a force for good. We use our core values to help us deliver benefits to our customers, local communities, employees and the environment.

作為一家公司，我們衡量影響力和成功的方法之一就是我們如何成為一股行善的力量。我們利用核心價值幫助我們為客戶、當地社區、員工和環境帶來利益。

For example, employee safety is paramount. Our teams work diligently to ensure our people are trained and equipped to safely do their jobs. In Connecticut, we were awarded the Connecticut Construction Industries Association Safety Award for the 20th straight year. While this is a great achievement, we're continually assessing how can we improve our best-in-class safety standards across our operations.

例如，員工安全至關重要。我們的團隊勤奮工作，確保我們的員工接受培訓並具備安全完成工作的能力。在康乃狄克州，我們連續 20 年榮獲康乃狄克州建築工業協會安全獎。雖然這是一項偉大的成就，但我們仍在不斷評估如何在整個營運過程中提高一流的安全標準。

Also, as I've mentioned before, we're a better utility because of our employees' talent and hard work. So being recognized as an employer of choice is a top priority. Across SJW Group, our Good Place to Work Index, as measured by an independent third-party survey of our employees, is at world-class levels.

此外，正如我之前提到的，我們之所以成為一家更好的公用事業公司，是因為我們員工的才華和辛勤工作。因此，被認可為首選雇主是首要任務。根據對我們員工的獨立第三方調查衡量，整個 SJW 集團的良好工作場所指數處於世界一流水平。

As a company, we recognize the breadth and richness of perspective that we gain by having diverse teams and partners. SJW Group has a gender-balanced board, something only 12% of Russell 3000 companies can claim. And in 2023, we spent $63 million, or approximately 21% of our addressable spend with diverse suppliers.

作為一家公司，我們認識到透過擁有多元化的團隊和合作夥伴可以獲得廣泛而豐富的視角。SJW 集團擁有性別平衡的董事會，羅素 3000 強公司中只有 12% 可以做到這一點。2023 年，我們在多元化供應商方面花費了 6,300 萬美元，約佔可尋址支出的 21%。

I'm also proud to share that we've received recognition for our efforts. We were recognized for our watershed stewardship in California by the National Association of Clean Water Agencies. We received an A rating from MSCI for our work on ESG matters. And our company was the highest ranked utility in the prestigious Newsweek Excellence 1000 Index for 2024. Inclusion in the index is for exemplars of corporate excellence with a firm commitment to best practices in business and financial growth, while also serving customers, stakeholders, and communities with a dedication to social responsibility and ethical standards. It's a testament to the values of our company and our work to be a meaningful force for good.

我還很自豪地告訴大家，我們的努力得到了認可。我們在加州的流域管理工作獲得了美國清潔水機構協會的認可。我們在 ESG 事務方面的工作獲得了 MSCI 的 A 評級。我們公司是著名的《新聞周刊》2024 年卓越 1000 指數中排名最高的公用事業公司。入選該指數是為了表彰那些堅定致力於業務和財務成長最佳實踐的卓越企業典範，同時也致力於社會責任和道德標準，為客戶、利害關係人和社區提供服務。這證明了我們公司的價值觀和我們的工作是一股有意義的行善力量。

I can't say it enough, but our people make the difference at SJW Group, they make us a better utility. Every year, every quarter, every day, I continue to be inspired by the contributions of our talented teams across our national footprint, as they consistently provide an essential service with integrity, reliability, and peace of mind for our customers. I'm confident our team's commitment to serving customers, our local communities, and the environment, while creating value for shareholders, will continue to reinforce our strong position for a successful future.

我無法形容，但我們的員工在 SJW 集團中發揮了重要作用，他們使我們成為更好的公用事業公司。每年、每季、每一天，我都繼續受到我們遍布全國的才華橫溢的團隊所做貢獻的啟發，因為他們始終如一地為我們的客戶提供誠信、可靠、安心的基本服務。我相信，我們的團隊致力於服務客戶、當地社區和環境，同時為股東創造價值，這將繼續鞏固我們的強勢地位，創造成功的未來。

And with that, I will turn the call back over to the operator.

然後，我會將電話轉回給接線生。

(Operator Instructions) Angie Storozynski, Seaport.

（操作員指示）Angie Storozynski，海港。

Thank you. I have to start with a question about Connecticut. I mean, it's been almost, what, six years when you guys were approached, well, Connecticut Water was approached by Eversource, now Eversource is selling Aquarion. Just wonder how you guys, just wonder how you guys see this asset. I remember back in 2018, Eversource was talking about the complimentary nature of the service territories of both Aquarion and Connecticut Water. That should not have changed. The regulatory setup has changed, however, and I'm just wondering if you can comment at all about how you see Aquarion.

謝謝。我必須從康乃狄克州的問題開始。我的意思是，差不多六年了，Eversource 與康乃狄克水務公司接洽，現在 Eversource 正在出售 Aquarion。只是想知道你們如何看待這個資產。我記得早在 2018 年，Eversource 就談到了 Aquarion 和 Connecticut Water 服務領域的互補性。這不應該改變。然而，監管設定已經改變，我只是想知道您是否可以評論一下您如何看待 Aquarion。

Oh, thank you, Angie. Thanks for calling in today. And, you know, candidly, I'm really out of an abundance of respect for Eversource and Aquarion, and particularly the employees of Aquarion who've been through a lot of sales over the years. I'll not comment specifically on this process.

哦，謝謝你，安吉。感謝您今天打電話來。而且，坦白說，我真的非常尊重 Eversource 和 Aquarion，尤其是多年來經歷了大量銷售的 Aquarion 員工。我不會具體評論這個過程。

But as you know, we've got a real proven growth strategy focused on investing capital and making acquisitions that create shareholder value. And you have our commitment that we'll continue to evaluate and assess all potential growth opportunities that would create shareholder value. But we won't pursue growth just for growth's sake. I think it's very important to be disciplined in that, and that would be the case here as well. So we'll have more to say in the future, but for now, we'll have to leave it at that. Thank you.

但如您所知，我們擁有真正經過驗證的成長策略，專注於投資資本和進行創造股東價值的收購。我們向您承諾，我們將繼續評估和評價所有能夠創造股東價值的潛在成長機會。但我們不會僅僅為了成長而追求成長。我認為在這方面遵守紀律非常重要，這裡也是如此。所以我們將來還會有更多話要說，但現在我們只能到此為止。謝謝。

Okay, so maybe a little bit more about your pending rate case in Connecticut. I understand that the final decision is due in June, but we've seen some very weak regulatory decisions on the electric and gas side, also on the water side from Aquarion. So I'm just wondering if at this stage, you can comment how you think the current rate case is going. And again, not a very big driver of earnings, at least not this year. But again, any comment about how it's been proceeding?

好的，也許更多關於您在康乃狄克州的待定利率案例。據我了解，最終決定將於 6 月做出，但我們看到了 Aquarion 在電力和天然氣方面以及水方面的一些非常薄弱的​​監管決定。所以我只是想知道在這個階段，您是否可以評論一下您對當前利率狀況的看法。再說一次，這並不是一個很大的獲利驅動因素，至少今年不是。但同樣，對於進展如何有什麼評論嗎？

Yeah, absolutely. Thank you, Angie. I'll start and allow Andrew to contribute as well, of course. I'm super proud of our team. I mean, I think looking back at some of the recent decisions with energy utilities and then Aquarion Water, of course, we really studied that and learned and completely reimagined our rate process filing.

是的，絕對是。謝謝你，安吉。當然，我會開始並允許安德魯也做出貢獻。我為我們的團隊感到非常自豪。我的意思是，我認為回顧一下最近與能源公用事業公司和 Aquarion Water 做出的一些決定，當然，我們確實研究了這一點，學習並完全重新構想了我們的費率流程備案。

And if you tuned into any one of those hearings, I'm proud to say you would have seen a team that was really engaged and making every attempt to be transparent and honorable and to provide the commission the information that they need to make the decision. And so I remain very optimistic that we will have a fair result that'll be capital attractive and constructive. And certainly, we're going to find out more in May and July. But really proud of the team.

如果您收聽其中任何一次聽證會，我很自豪地說您會看到一個真正投入的團隊，他們盡一切努力保持透明和誠實，並向委員會提供做出決定所需的資訊。因此，我仍然非常樂觀地認為，我們將得到一個公平的結果，這將具有資本吸引力和建設性。當然，我們將在五月和七月找到更多資訊。但真的為團隊感到自豪。

And I'll go back. I mean, we've worked collaboratively with the Public Advocate's Office and the commission and the authority staff to pass such things as the Water Infrastructure Conservation Adjustment. We have full decoupling there. We still have a 270-day statutory period to get rates. So there's a lot of really capital-supportive regulatory tools.

我會回去。我的意思是，我們與公共倡議辦公室、委員會和當局工作人員合作，通過了水基礎設施保護調整等法案。我們在那裡完全脫鉤。我們仍有 270 天的法定期限來取得費率。因此，有許多真正支持資本的監管工具。

But it's clear, we've had a bit of a rough patch as utilities in the past year or so, but we're committed to continue to work with all parties to make it as constructive as we possibly can for our shareholders and customers. So bottom line, I am optimistic and feel very good about my team and what we put forth in our rate filing.

但很明顯，在過去一年左右的時間裡，我們作為公用事業公司經歷了一些困難，但我們致力於繼續與各方合作，盡可能為我們的股東和客戶帶來建設性的好處。因此，最重要的是，我對我的團隊以及我們在費率申請中提出的內容感到樂觀並且感覺非常好。

Andrew, did I fail to mention anything?

安德魯，我有沒有提到什麼？

Eric, I think you covered it very well and I don't have anything to add to that. Thank you.

艾瑞克，我認為你講得很好，我沒有什麼要補充的。謝謝。

But Andrew, can you add a little bit more maybe about when you mentioned your guidance for '24, there's like a reinvestment, right? I don't know how much this is exactly. And I'm assuming that that's somewhat of a drag on the '24 guidance. Is it pulling forward some expenses from '25? I mean, what is it? And then if you could quantify the size of this.

但安德魯，當你提到你對 24 年的指導時，你能補充一點嗎，這就像再投資，對嗎？我不知道這個具體是多少。我認為這對 '24 指導方針有一定的拖累。是否會從 25 年開始推遲一些費用？我的意思是，那是什麼？然後你是否可以量化它的大小。

Yeah, I can't quantify the size off the top of my head for this call, nor will I in the future. But what I can do is talk about the types of items that you've asked the question on. So these are items that will help us strategically position ourselves for additional future growth. They can be things that help from a staff training position to things that will allow us to invest in other infrastructure and items that will help us reduce costs in the future. So they're meant to be investments that will help us produce better results in the future.

是的，我無法量化這通通話的頭頂尺寸，將來也不會。但我能做的就是談談您提出問題的項目類型。因此，這些項目將幫助我們對自己進行策略定位，以實現未來的進一步成長。它們可以是有助於員工培訓的東西，也可以是讓我們能夠投資其他基礎設施和物品的東西，從而幫助我們降低未來的成本。因此，它們的投資意義在於幫助我們在未來取得更好的成果。

Thank you, that's all I have, thanks.

謝謝，我只有這些了，謝謝。

Thank you, Angie.

謝謝你，安吉。

Thank you.

謝謝。

Jonathan Reeder, Wells Fargo Securities.

喬納森·里德，富國銀行證券公司。

Hey, good morning or afternoon team, depending on where you're located. But yeah, can you remind us how Connecticut Water's CapEx budget that was outlined in the pending GRC actually gets factored into PURA's final order? I know it's not like California where the CPUC actually approves a three-year CapEx budget as part of the GRC process there, but will PURA indicate what level of spend over that period it believes is appropriate?

嘿，早上好或下午好，團隊，取決於您所在的位置。但是，您能否提醒我們，待決 GRC 中概述的康乃狄克水務公司的資本支出預算實際上如何納入 PURA 的最終訂單中？我知道這與加州不同，CPUC 實際上批准了三年資本支出預算作為那裡 GRC 流程的一部分，但 PURA 是否會表明其認為在此期間的支出水平是合適的？

Jonathan, I think PURA in the past, while they might give us some comments in general, that is definitely not the same as California where there's a specific approval process. But we do in the interaction with staff and with the commissioners can from time to time receive some guidance as to where they may see some challenges in the future, but typically it's not focused on that. It's really focused on what we have invested and whether that is a prudent use of our customers' money that they invest with us or provide to us.

喬納森，我認為 PURA 過去雖然可能會給我們一些一般性的意見，但這絕對和加州不一樣，那裡有一個特定的審批流程。但我們在與工作人員和委員的互動中確實可以時不時地收到一些指導，告訴他們未來可能會在哪些方面遇到一些挑戰，但通常情況下並不關注這一點。它真正關注的是我們的投資內容以及是否謹慎使用客戶與我們一起投資或提供給我們的資金。

Okay, and then maybe asking the querying question a little differently, but just given the challenges in the Connecticut regulatory environment right now, is that a state where SJW would want to increase exposure versus Texas where growth is higher or potentially entering a new state?

好的，然後可能會以稍微不同的方式提出查詢問題，但考慮到康涅狄格州目前監管環境面臨的挑戰，與增長更高或可能進入新州的德克薩斯州相比，SJW 是否希望增加在該州的風險敞口？

Yeah, fair question, and again, I'll not comment specifically on the opportunity and the process as it's yet not completely defined. But we do take a long-term view of constructive regulatory shaping and investment, and so we'll evaluate it very carefully once we understand fully the process. But that's all I have to say today, Jonathan. Thank you.

是的，這是一個公平的問題，再說一遍，我不會具體評論機會和流程，因為它尚未完全定義。但我們確實對建設性的監管塑造和投資採取了長遠的眼光，因此，一旦我們完全了解了整個過程，我們就會非常仔細地評估它。但這就是我今天要說的，喬納森。謝謝。

All right, thanks for taking my questions. Appreciate it.

好的，謝謝你回答我的問題。欣賞它。

Thank you, Jonathan.

謝謝你，喬納森。

(Operator Instructions) Roger Liddell, Clear Harbor Asset Management.

（操作員說明）Roger Liddell，Clear Harbor 資產管理公司。

Thank you, and good morning, gentlemen.

謝謝你們，早安，先生們。

Hi, Roger. So great to hear from you. Thank you.

嗨，羅傑。很高興收到你的來信。謝謝。

I'm delighted to get a report as good as this. You know, Eric, particularly how long I've been concerned about the PFAS issues and other contaminants, but PFAS is as good as it comes in terms of the signal or the damage of ignoring these things.

我很高興收到這樣好的報告。你知道，埃里克，特別是我關注 PFAS 問題和其他污染物有多長時間了，但 PFAS 就信號或忽視這些東西造成的損害而言，是一樣好的。

So my concern is that generally across the country, we're seeing blowback, I think more blowback on large rate requests than I can recall for a number of years, maybe it's selective amnesia. But -- and here are large numbers the 110 million in California is one thing, 120 million in Connecticut, by the way, Maine has had dreadful PFAS contamination issues. Perhaps it's not in the Biddeford-Saco area or your other service territory, so that's why it isn't mentioned,

所以我擔心的是，在全國範圍內，我們普遍看到了反彈，我認為對大額請求的反彈比我多年來記憶中的還要多，也許這是選擇性失憶症。但是——這裡的數字很大，加州的 1.1 億是一回事，康乃狄克州有 1.2 億，順便說一句，緬因州也面臨可怕的 PFAS 污染問題。也許它不在 Biddeford-Saco 區域或您的其他服務區域，所以這就是為什麼它沒有被提及，

But anyway, big bucks in play. And the blowback to me just seems in most cases remarkably uninformed by the benefits, the life cycle cost versus the first cost kinds of arguments. So is there anything that you feel the shareholder-owned companies in particular, but the industry, can it do more in terms of awakening the public to the return on investment in PFAS removal or control? There is going to be a big health payback, but it isn't right away. So what can be done?

但無論如何，大錢在玩。對我來說，在大多數情況下，這種反作用似乎非常不了解好處、生命週期成本與第一個成本類型的爭論。那麼，您有什麼感覺，尤其是股東所有的公司，但整個行業，在喚醒公眾認識到 PFAS 去除或控制的投資回報方面可以做更多的事情嗎？這將會帶來巨大的健康回報，但不是立竿見影的。那麼可以做什麼呢？

Yeah, thank you, Roger. And you're right, you and I have spoken about this for many years. I think the biggest sea change is finally EPA has stepped forward with a proposed regulatory standard. Candidly, up until that point, while many people wanted it resolved from a regulatory risk standpoint, a lot of commissions were concerned about, well, why should we approve a rate increase at cost to customers when there's in fact, no standard for this contaminant? There's not even completed health studies by EPA.

是的，謝謝你，羅傑。你是對的，你和我已經談論這個問題很多年了。我認為最大的變化是美國環保署最終提出了擬議的監管標準。坦白說，直到那時，雖然許多人希望從監管風險的角度解決這個問題，但許多委員會都擔心，為什麼我們應該批准以客戶成本為代價提高費率，而實際上這種污染物沒有標準？美國環保署甚至還沒有完成健康研究。

And so now that that process is well underway, we have a proposed standard. We expect that to get promulgated in final form. Boy, then that really sets the stage. And in our conversations with regulators, there's real alignment around, hey, we need to get this done and get it done fast. And it is a very aggressive timetable. Once that's promulgated, we have three years to complete treatment. We've taken many wells offline that are above certain action levels, but we do have a lot of construction work to get accomplished over the next three years to completely resolve and remediate this thing.

現在這個過程正在順利進行，我們已經有了一個建議的標準。我們期望以最終形式頒布。男孩，那真的奠定了基礎。在我們與監管機構的對話中，我們確實達成了一致，嘿，我們需要完成這件事，而且要快速完成。這是一個非常激進的時間表。一旦頒布，我們就有三年的時間來完成治療。我們已經關閉了許多超出一定行動水平的油井，但我們確實需要在未來三年內完成大量建設工作，以徹底解決和補救這個問題。

I will add that in Maine, we've been very fortunate in all the detailed testing we've done among across all of our sources there. We're fortunate so far not to have any PFAS hits of any substance. We do operate a utility under contract, part of our management services agreement that does have a bit of an issue. So we'll work with them to help resolve that.

我要補充的是，在緬因州，我們非常幸運地對那裡的所有來源進行了所有詳細的測試。到目前為止，我們很幸運沒有發現任何 PFAS 物質。我們確實根據合約經營一家公用事業公司，這是我們管理服務協議的一部分，但確實存在一些問題。因此，我們將與他們合作，幫助解決這個問題。

But we're committed to getting this done and behind us. And as well, we've disclosed, we also participate in the class action suit against the 3M's and the DuPont's to help so that any costs we recover in that process, which frankly, we don't expect it to be big, fully -- anywhere close to fully recovering our costs, but whatever we do get, we'll flow that back for the benefit of our customers, of course, to try to mitigate the rate impacts of it. But appreciate your question and your interest and support in this important topic.

但我們致力於完成這件事並在我們身後。此外，我們還透露，我們還參與了針對 3M 和杜邦的集體訴訟，以幫助我們收回在此過程中產生的任何成本，坦率地說，我們並不認為它會很大、完全 - - 任何接近完全收回成本的地方，但無論我們得到什麼，我們都會為了客戶的利益而回流，當然，以盡量減輕其對費率的影響。但感謝您的提問以及您對這個重要主題的興趣和支持。

Yeah, thank you.

是的，謝謝。

Thank you, Roger.

謝謝你，羅傑。

Thank you. And I'm showing no further questions at this time. And I would like to turn the conference back over to Eric Thornburg, Chief Executive Officer, for any further remarks.

謝謝。目前我不會再提出任何問題。我想將會議轉回執行長 Eric Thornburg 聽取進一步的評論。

Thank you, operator. Thank you, all of you who participated in today's call. We truly appreciate your interest and support of our organization, our people. And if we can be of service to you in the future, please reach out to Andrew Walters or Dan Meaney or myself, and we'll look forward to our next engagement. Thank you so much. Take care.

謝謝你，接線生。謝謝參加今天電話會議的所有人。我們衷心感謝您對我們的組織和員工的興趣和支持。如果我們將來能為您提供服務，請聯繫安德魯·沃爾特斯 (Andrew Walters) 或丹·米尼 (Dan Meaney) 或我本人，我們將期待下一次合作。太感謝了。小心。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。