H2O America (HTO) 2024 Q3 法說會逐字稿

Good day and thank you for standing by and welcome to the SJW Group Q3 2024 earnings conference call. (Operator Instructions) Please be advised today's conference is being recorded.

您好，感謝您的支持，歡迎參加 SJW Group 2024 年第三季財報電話會議。 （操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the conference over to your speaker 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 our third-quarter 2024 financial results conference call for 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.

謝謝您，接線生。歡迎參加 SJW 集團 2024 年第三季財務業績電話會議。今天我將與董事會主席、總裁兼執行長 Eric Thornburg 一起出席演講。對於想要跟隨的人，可以在我們的網站 sjwgroup.com 上找到我們評論的幻燈片。

Before we begin today, I would like to remind you that this presentation and 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.

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。這些聲明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當前情況下適當的其他因素而做出的估計和假設。

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.

許多因素可能導致公司的實際結果和績效與前瞻性陳述表達或暗示的結果和績效有重大差異。有關可能導致實際結果與本簡報中的陳述不同的某些因素的描述，請參閱財務業績新聞稿以及我們向美國證券交易委員會提交的最新 10-K、10-Q 和 8-K 表格，您可以在我們的網站上取得這些表格的副本。

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. This webcast is being recorded, and an archive of the webcast will be available until January 20, 2025. You can access the press release and the webcast at SJW Group's website.

所有前瞻性陳述均截至今日作出，SJW 集團不承擔更新或修改此類陳述的任何義務。演示結束後您將有機會提問。本次網路直播正在錄製中，網路直播存檔將保留至 2025 年 1 月 20 日。

In addition, some of the information discussed today includes the non-GAAP financial measures of adjusted net income and adjusted diluted earnings per share. They have not been calculated in accordance with generally accepted accounting principles in the United States or GAAP. These non-GAAP financial measures should be considered as a supplement to the financial information prepared on a GAAP basis rather than an alternative to respective GAAP.

此外，今天討論的一些資訊包括調整後淨收入和調整後每股攤薄收益等非公認會計準則財務指標。它們並未依照美國普遍接受的會計原則或 GAAP 進行計算。這些非 GAAP 財務指標應被視為根據 GAAP 編制的財務資訊的補充，而不是相應 GAAP 的替代品。

Financial measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the table in the appendix of our presentation.

財務指標以及這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳在我們報告附錄中的表格中列出。

I will now turn the call over to Eric.

現在我將電話轉給 Eric。

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 be here today to discuss the SJW Group. I'm pleased to share that in the third quarter of 2024, we continued to meet drinking water and environmental regulations, deliver on our public health and environmental stewardship commitments, and provide high-quality water and service to customers.

歡迎大家，感謝大家的加入。我叫 Eric Thornburg，很榮幸能擔任 SJW 集團董事長、總裁兼執行長。我很高興今天能在這裡討論 SJW 集團。我很高興地告訴大家，在 2024 年第三季度，我們繼續滿足飲用水和環境法規，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服務。

We also delivered strong financial results, including a 7% increase in net income from this time last year. Our performance reflects our continued execution of our successful growth strategy, which is focused on investments in our infrastructure and water systems across our national footprint and constructive engagement and consensus building with key local stakeholders.

我們也取得了強勁的財務業績，淨收入較去年同期成長了 7%。我們的業績反映了我們持續執行成功的成長策略，該策略的重點是投資全國範圍內的基礎設施和水系統，以及與當地主要利益相關者進行建設性接觸並達成共識。

For example, in California, we filed a settlement agreement with the California Public Utilities Commission for San Jose Water's 2025 through 2027 general rate case that we constructively negotiated with the Public Advocates Office, resolving all but two issues together.

例如，在加州，我們向加州公用事業委員會提交了有關聖荷西水務公司 2025 年至 2027 年一般費率案的和解協議，並與公共辯護辦公室進行了建設性談判，除了兩個問題之外，其他所有問題都得到了解決。

We also filed our second system improvement charge in Texas and received approval for infrastructure recovery mechanism filings in both Connecticut and Maine that together covered almost 18 miles of pipe replacement in New England.

我們還在德克薩斯州提交了第二次系統改進申請，並獲得了康涅狄格州和緬因州基礎設施恢復機制申請的批准，共涵蓋了新英格蘭近 18 英里的管道更換。

Year-to-date, we have invested $252 million, or approximately 76%, of our $332 million capital expenditure plan for 2024 in water and wastewater utility infrastructure across all four states, and we're steadily advancing our five-year plan of investing $1.6 billion.

年初至今，我們已在四個州的水和廢水公用事業基礎設施上投資了 2.52 億美元，約佔 2024 年 3.32 億美元資本支出計畫的 76%，並且我們正在穩步推進投資 16 億美元的五年計畫。

Also, our California operation anticipates receiving a grant of approximately $8 million through the Grid Resilience and Innovation Partnerships Program, or GRIP, for advancing clean energy infrastructure. We anticipate matching that amount for a total $16 million investment to increase operational resilience and reduce energy costs.

此外，我們的加州業務預計將透過電網彈性和創新夥伴關係計劃（GRIP）獲得約 800 萬美元的資助，用於推進清潔能源基礎設施。我們預計將投資 1,600 萬美元來提高營運彈性並降低能源成本。

Additionally, SJW Group was one of two water utilities recognized by Newsweek in its list of America's Greenest Companies 2025, and our Connecticut operations received a Top Workplace Award from the Hartford Current for the fourth consecutive year. Importantly, we delivered earnings per diluted share of $1.17 and adjusted non-GAAP earnings per diluted share of $1.18 in the third quarter.

此外，SJW 集團是《新聞週刊》評選的 2025 年美國最環保公司中的兩家水務公司之一，我們的康乃狄克州業務連續第四年榮獲《哈特福德時報》頒發的最佳工作場所獎。重要的是，我們第三季的每股攤薄收益為 1.17 美元，調整後非 GAAP 每股稀釋收益為 1.18 美元。

Now, while I'm proud of our accomplishments, our culture is not one of complacency. Our industry is facing significant challenges with the need to meet new water quality standards and replace aging infrastructure while also maintaining affordability for our customers. We know that regulators, legislators, and other policymakers are looking to us to be leaders, to find creative, resourceful, and efficient solutions to balance these at times competing needs, and we are up for that challenge.

現在，雖然我為我們的成就感到自豪，但我們的文化並不是自滿的。我們的產業面臨重大挑戰，需要滿足新的水質標準、更換老化的基礎設施，同時也要維持客戶的可負擔能力。我們知道，監管者、立法者和其他政策制定者都希望我們成為領導者，找到富有創造力、資源豐富、高效的解決方案來平衡這些有時相互競爭的需求，而我們已經準備好迎接這項挑戰。

We are focused on forward-thinking solutions that prioritize public health and safety while optimizing operational efficiency, whether through the use of AI technology, economies of scale, or other continual improvement exercises. Our industry-leading scientists and engineers are busy designing PFAS treatment facilities that meet the highest regulatory expectations while also tackling emerging contaminants, such as microplastics, through groundbreaking research.

我們專注於前瞻性的解決方案，優先考慮公共健康和安全，同時優化營運效率，無論是透過使用人工智慧技術、規模經濟或其他持續改善措施。我們業界領先的科學家和工程師正忙於設計符合最高監管要求的 PFAS 處理設施，同時透過開創性的研究解決微塑膠等新興污染物。

In parallel, we're diligently evaluating our pioneering income assistance programs in California and Connecticut to see how we can do more for a greater number of customers across our national footprint. We also continue to be dedicated to constructive engagement and partnership with our local stakeholders to ensure that we are all well positioned to achieve our shared mission of serving our communities effectively. That is our culture, and it's also our competitive advantage.

同時，我們正在認真評估我們在加州和康乃狄克州的開創性收入援助計劃，以了解如何在全國範圍內為更多客戶提供更多服務。我們也將繼續致力於與當地利害關係人進行建設性的接觸和合作，以確保我們都能夠很好地實現有效服務社區的共同使命。這是我們的文化，也是我們的競爭優勢。

With that, I will pass it over to Andrew to review our detailed financial results

我將把報告交給 Andrew，讓他來審查我們的詳細財務結果。

and regulatory updates in our state operations. Andrew?

以及我們州運營的監管更新。安德魯？

Thank you, Eric. This morning before the market opened, we released our third quarter 2024 operating results. In the third quarter, we reported revenue of $225.1 million, a 10% increase from the $204.8 million reported in the same quarter of 2023.

謝謝你，埃里克。今天早上開市前，我們發布了2024年第三季的經營業績。第三季度，我們報告的營收為 2.251 億美元，較 2023 年同期的 2.048 億美元成長 10%。

The increase was largely driven by rate increases, including higher pass-through water costs. We also experienced higher water production expense. Net income for the quarter was $38.7 million, which was a 7% increase over the $36.2 million reported in the third quarter of 2023. Diluted earnings per share was $1.17 compared to $1.13 in 2023.

成長的主要原因是費率上漲，包括直通水成本的提高。我們的水生產費用也增加了。本季淨收入為 3,870 萬美元，較 2023 年第三季報告的 3,620 萬美元增長 7%。

In the third quarter, merger and acquisition expenses and real estate transactions that netted $0.3 million after tax loss have been excluded in non-GAAP results reflected in adjusted net income of $39 million and adjusted diluted earnings per share of $1.18.

第三季度，併購費用和房地產交易淨額為 30 萬美元的稅後損失，已被排除在非公認會計準則業績之外，反映在調整後的淨收入 3900 萬美元和調整後的每股攤薄收益 1.18 美元中。

Turning to the third quarter EPS bridge, you can see the $0.49 of the revenue increase was driven primarily by rate increases in California and Connecticut and lower income tax expense because of tax accounting method change that yielded $0.11. The revenue increase was offset by higher water production costs of $0.38 and $0.06 in higher maintenance costs compared to the same period last year.

回顧第三季的每股盈餘，你可以看到，收入增加 0.49 美元主要是由於加州和康乃狄克州的稅率上調，以及由於稅務會計方法變更導致的所得稅費用降低 0.11 美元。與去年同期相比，收入的增加被水生產成本增加 0.38 美元和維護成本增加 0.06 美元所抵消。

Year-over-year revenue increased by 10%. Approximately $8.5 million of the revenue increase was passed through charges for purchased water and $8.5 million of the increase was from general rate cases and infrastructure recovery mechanisms. Water production expense in the quarter increased 16% compared to 2023. The increase was principally driven by rate increases from our water wholesaler in California and higher production volume.

營收年增10%。約 850 萬美元的收入成長是透過購買水費實現的，另外 850 萬美元的收入成長則來自一般費率案件和基礎設施恢復機制。本季的水生產費用與 2023 年相比增加了 16%。

Total other operating expenses increased 8% year over year and was primarily driven by higher maintenance administration and general cost and depreciation. Year-to-date, we reported revenue of $550.6 million, a 10% increase over the $499 million reported in the same period of 2023.

其他營運費用總額年增 8%，主要原因是維護管理費用、一般成本和折舊費用增加。今年迄今，我們報告的營收為 5.506 億美元，比 2023 年同期的 4.99 億美元成長 10%。

As we noted for the quarter, the increase was largely driven by rate increases, including higher pass-through water cost. Net income for the year-to-date was $71 million, an 8% increase. Diluted earnings per share was $7.5 million, an 8% increase. $2.18 compared to $2.09 in 2023.

正如我們在本季所指出的，成長主要是由於費率上漲，包括更高的直通水成本。年初至今的淨收入為 7,100 萬美元，成長 8%。每股攤薄收益為 750 萬美元，成長 8%。 2023 年為 2.09 美元，而 2024 年為 2.18 美元。

As mentioned earlier, real estate transaction and merger and acquisition expenses that netted a $0.9 million after-tax loss year-to-date have been excluded in non-GAAP results. Adjusted net income was $72 million and adjusted diluted earnings per share was $2.21.

如前所述，非公認會計準則結果中不包括年初至今造成的 90 萬美元稅後虧損的房地產交易和併購費用。調整後淨收入為 7,200 萬美元，調整後每股攤薄收益為 2.21 美元。

As you can see, $1.11 of the revenue increase was driven primarily by rate increases in California and Connecticut. Higher usage and customer growth added $0.20. Changes in the allowance for uncollectible customer accounts contributed $0.19, and $0.10 was from lower income tax expense because of a tax accounting method change related to the repairs tax deduction.

如您所見，1.11 美元的收入成長主要得益於加州和康乃狄克州的稅率上調。使用率提高和客戶成長增加了 0.20 美元。無法收回的客戶帳戶準備金的變動產生了 0.19 美元的損失，而由於與維修稅扣除相關的稅務會計方法變化導致的所得稅費用降低也產生了 0.10 美元的損失。

The revenue increase was partially offset by higher water production cost of $0.73, an increase in administrative and general expense of $0.18, as well as an increase in depreciation and amortization, maintenance cost, interest expense, and the release of an income tax reserve in 2023.

收入的增加部分被水生產成本增加 0.73 美元、行政和一般費用增加 0.18 美元以及折舊和攤提、維護成本、利息費用增加以及 2023 年釋放的所得稅儲備所抵銷。

Approximately $65 million in gross equity proceeds was raised year-to-date through our at-the-market equity program, or ATM. Our current ATM program is set to expire on November 17. We intend to enter into an agreement for a new ATM program prior to that date. At the end of third quarter, we had $93 million drawn on our $350 million bank lines of credit, which left $257 million available for short-term financing of utility plant additions and operating activities.

今年迄今為止，我們透過市場股權計畫（簡稱 ATM）籌集了約 6,500 萬美元的總股權收益。我們目前的 ATM 計劃將於 11 月 17 日到期。截至第三季末，我們從 3.5 億美元的銀行信用額度中提取了 9,300 萬美元，剩下 2.57 億美元可用於公用事業工廠擴建和營運活動的短期融資。

In the third quarter, we raised a total of $125 million through long-term debt offerings in California and Connecticut that were primarily used to pay down our bank lines of credit. By the end of 2024, we plan to raise an additional $35 million in long-term debt that will be used to pay down the line of credit further.

第三季度，我們透過在加州和康乃狄克州發行長期債券共籌集了 1.25 億美元，主要用於償還銀行信用額度。到 2024 年底，我們計劃額外籌集 3,500 萬美元的長期債務，用於進一步償還信用額度。

The average borrowing rate for the line of credit advances year-to-date through September was approximately 6.53%. The average borrowing rate in the same period of 2023 was 6.16%. The effective consolidated income tax rates for the third quarter of 2024 and 2023 were approximately 5% and 11%, respectively.

截至 9 月份，年初至今信用額度預付款的平均借款利率約為 6.53%。 2023年同期平均借貸利率為6.16%。 2024 年和 2023 年第三季的有效綜合所得稅率分別約為 5% 和 11%。

As Eric mentioned earlier, a settlement agreement negotiated with the Public Advocates Office has been filed with the CPUC for San Jose Waters 2025 through 2027 general rate case. Only two policy issues remain to be litigated, chemical and waste disposal cost in the full cost balancing account and adjusting the service charge calculation.

正如 Eric 之前提到的，針對聖荷西水域 2025 年至 2027 年一般費率案件，與公共辯護辦公室協商後的和解協議已提交給加州公用事業委員會 (CPUC)。僅剩兩個政策問題有待解決，即全成本平衡帳戶中的化學品和廢物處理成本以及調整服務費計算。

The settlement agreement also authorizes a $450 million capital expenditure budget that would address several key needs, such as treating PFAS to meet drinking water standards finalized by the US EPA earlier this year, reducing greenhouse gas emissions through solar generation, energy storage systems to replace diesel generators, fleet electrification, and advanced acoustic leak detection, and 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.

和解協議還批准了4.5億美元的資本支出預算，用於解決幾個關鍵需求，例如處理PFAS以滿足美國環保署今年早些時候最終確定的飲用水標準，透過太陽能發電減少溫室氣體排放，使用儲能係統取代柴油發電機、車隊電氣化和先進的聲學洩漏檢測，並推進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的機會、氣候發展以及經濟和工業發展以及經濟和勞動力服務的機會。

It also allows greater revenue recovery through the service charge and further aligns authorized to actual usage through a lower sales forecast. The settlement agreement includes a $53.1 million or 9.4% total revenue increase at the 2025 through 2027 authorized sales and customer forecast. The annual step increase range between approximately 2.6% to 3.9%.

它還可以透過服務費收回更多的收入，並透過較低的銷售預測進一步使授權與實際使用情況保持一致。和解協議包括根據 2025 年至 2027 年授權銷售和客戶預測，總收入將增加 5,310 萬美元或 9.4%。每年的增幅約為2.6%至3.9%。

The application we filed with the CPUC in January of 2024 requested a $103 million revenue increase over the three years and proposed a three-year, $540 million capital expenditure program. We view the settlement agreement as a testament to our ability to work with stakeholders and regulators to achieve constructive outcomes that are beneficial to our customers and local communities while also delivering shareholder value.

我們於 2024 年 1 月向 CPUC 提交的申請要求在三年內增加 1.03 億美元的收入，並提出了一項為期三年、5.4 億美元的資本支出計劃。我們認為和解協議證明了我們有能力與利害關係人和監管機構合作，實現有利於我們的客戶和當地社區的建設性成果，同時也為股東帶來價值。

If approved, the settlement agreement positions us well to continue our robust and necessary investment in our water system infrastructure. A CPUC decision is expected in the fourth quarter of 2024 with new rates effective January 1, 2025.

如果獲得批准，和解協議將使我們能夠繼續對水系統基礎設施進行強勁且必要的投資。預計 CPUC 將於 2024 年第四季做出決定，新費率將於 2025 年 1 月 1 日生效。

San Jose Water reached an agreement with the City of Cupertino, California to manage the city's water system that became effective on October 1, 2024. The initial term of the agreement is 12 years with a provision to extend it for an additional eight years.

聖荷西水務公司與加州庫比蒂諾市達成協議，管理該市的供水系統，該協議於 2024 年 10 月 1 日生效。

Under the new agreement, we will continue to operate and maintain the city's water system and pay an upfront fee of $22.1 million concession fee, which will be funded with equity through our ATM, and we will make annual payments of approximately $1.8 million, subject to increases each year based on a specified construction cost index. We first entered into an agreement with Cupertino in 1997.

根據新協議，我們將繼續營運和維護城市供水系統，並支付2,210萬美元的預付費用，該費用將透過我們的 ATM 以股權形式提供資金，並且我們每年將支付約180萬美元，但每年將根據指定的建設成本指數增加。我們於 1997 年首次與庫比蒂諾達成協議。

Since then, this arrangement has proven beneficial to our customers of San Jose Water and customers of Cupertino. As a large neighboring water system, we bring scale and efficiency to the city's water system operation and increase scale that helps San Jose Water serve its customers as well. A CPUC authorized annualized revenue increase of $768,000 became effective on July 1, 2024.

自那時起，這種安排已被證明對我們的聖荷西水務公司客戶和庫比蒂諾客戶有利。作為鄰近的大型供水系統，我們為城市供水系統營運帶來了規模和效率，並擴大了規模，幫助聖荷西水務公司為其客戶提供服務。 CPUC 授權的年度收入增加 768,000 美元於 2024 年 7 月 1 日生效。

Revenue increase was related to a requested rate-based increase of approximately $4.8 million for advanced metering infrastructure project. We're planning to invest approximately $27 million in this project in 2024. It is a $100 million project that is separate from the general rate case. Capital budget and majority of the installation is expected through 2026.

收入增加與先進計量基礎設施項目要求的約 480 萬美元的費率增長有關。我們計劃在 2024 年向該項目投資約 2,700 萬美元。資本預算和大部分安裝預計將持續到 2026 年。

On September 18, 2024, the Kinetic Public Utilities Regulatory Authority authorized a $4.3 million increase in annualized revenue through the Water Infrastructure and Conservation Adjustment, or WICA. The WICA surcharge became effective on October 1 and stands at 3.43%.

2024 年 9 月 18 日，動能公共事業監管局批准通過水基礎設施和保護調整 (WICA) 將年收入增加 430 萬美元。 WICA 附加費於 10 月 1 日生效，稅率為 3.43%。

The revenue increase was for approximately $41.9 million in completed infrastructure replacement projects that are in service and providing benefit to our customers. As we mentioned in the second quarter, Connecticut Water's general rate case became effective on July 1, 2024. As a reminder, the general rate case provided an annual revenue increase of $6.5 million $1.1 million by achieving certain performance metrics, a 9.3% return on equity, and it maintained our 53% to 47% equity to debt capital structure.

收入增加是由於已完成的基礎設施更換項目約 4,190 萬美元，這些項目已投入使用並為我們的客戶帶來利益。正如我們在第二季度提到的，康乃狄克水務公司的一般費率案於 2024 年 7 月 1 日生效。

This past week, Maine Water filed a general rate case for a $1.1 million application for the Camden-Rockland Division with the Maine Public Utilities Commission. Maine Water is requesting a revenue increase of $1.1 million or 15.9% above current authorized revenue. A decision is expected in the second quarter of 2025.

上週，緬因水務公司向緬因州公用事業委員會提交了一份針對卡姆登-羅克蘭分部的 110 萬美元一般費率申請。緬因水務公司要求增加收入 110 萬美元，比目前授權收入高出 15.9%。預計將於 2025 年第二季做出決定。

On September 30, 2024, a Water Infrastructure Charter was approved by the Maine Public Utilities Commission. On September 30, 2024, a Water Infrastructure Charge, or WISC, application was filed for the Millinocket Division to increase annualized revenues by $46,000. The decision is expected in the fourth quarter of 2024. On August 1 of 2024, WISC increases were authorized in two divisions for a total annual revenue increase of $52,000.

2024 年 9 月 30 日，緬因州公共事業委員會批准了水利基礎設施憲章。 2024 年 9 月 30 日，米利諾基特分部提交了水基礎設施收費 (WISC) 申請，以增加 46,000 美元的年收入。預計該決定將於 2024 年第四季作出。

I also want to share that Maine Water intends to file a petition with the Maine Public Utilities Commission before the end of the year requesting consolidation of the tariffs in the company's 10 rate districts. It is a move that would streamline general rate case and WISC applications which are currently filed on a district-by-district basis.

我還想分享一下，緬因水務公司打算在今年年底前向緬因州公用事業委員會提交一份請願書，要求合併該公司 10 個費率區的關稅。此舉將簡化目前按地區提交的一般稅率案件和 WISC 申請。

The company typically files two to four general rate case and WISC filings each year. This will improve administrative efficiency, reduce regulatory lag, and increase the burden on regulatory agencies and their staff and ease the burden. Texas Water filed for a second system improvement charge, or SIC, this past September.

該公司通常每年提交兩到四份一般稅率案件和 WISC 文件。此舉將提高行政效率，減少監管滯後，減輕監管機構及其工作人員的負擔。去年 9 月，德州水務公司申請了第二次系統改善費用（SIC）。

An SIC is an infrastructure recovery mechanism that is similar to WICA in Connecticut and WISC in Maine. We are requesting a $4.3 million increase in annual revenues for more than $41 million invested in completed infrastructure projects. We are targeting a decision in the first half of 2025. We have filed for a sale, transfer, and merger application with the Public Utility Commission of Texas to close on the acquisition of 3009. The closing has not yet been scheduled. We expect to fund the acquisition of 3009 with equity through our ATM program.

SIC 是一種基礎設施恢復機制，類似於康乃狄克州的 WICA 和緬因州的 WISC。我們要求每年增加 430 萬美元的收入，用於已完成的基礎設施項目投資超過 4,100 萬美元。我們的目標是在 2025 年上半年做出決定。我們期望透過我們的 ATM 計劃以股權形式為收購 3009 提供資金。

We have been experiencing drought in our Texas service area and had water conservation measures in place for much of 2024. As a result, we will see lower water usage in 2024 compared to 2023. As you will recall, our KT Water Resources acquisition in 2023 has a projected 6,000 acre feet of untapped water supply in the heart of Comal County.

我們在德州的服務區一直經歷乾旱，我們在 2024 年的大部分時間都採取了節水措施。

Bringing the supply online to serve customers is a priority for us. It will be a multi-phase project and our goal is to complete it by the end of 2026. KT Water Resources was initially acquired by our unregulated subsidiary in Texas Water Resources.

透過線上供應為客戶提供服務是我們的首要任務。這將是一個多階段項目，我們的目標是在 2026 年底前完成。

In the third quarter of this year, our regulated utility purchased the assets of KT Water Resources from our unregulated subsidiary. The regulated utility will fund the capital expenditures to bring the additional supply online. 2024 guidance for GAAP is currently at $2.65 to $2.75 per diluted share, and we reaffirm our guidance of $2.68 to $2.78 per diluted share on a non-GAAP basis.

今年第三季度，我們受監管的公用事業公司從我們不受監管的子公司購買了 KT Water Resources 的資產。受監管的公用事業公司將資助資本支出，以使額外供電上線。目前，2024 年 GAAP 指引為每股攤薄收益 2.65 美元至 2.75 美元，而我們重申非 GAAP 指引為每股攤薄收益 2.68 美元至 2.78 美元。

As mentioned earlier, we have reached our $65 million in gross proceeds from equity issuances, which was the top end of our guidance, excluding acquisitions. We maintain a five-year capital investment outlook of $1.6 billion, which includes approximately $230 million in estimated PFAS remediation based on finalized maximum contaminant levels.

如前所述，我們從股票發行中獲得的總收益已達到 6500 萬美元，這是我們預期的最高水準（不包括收購）。我們維持 16 億美元的五年資本投資預期，其中包括根據最終確定的最大污染物水準估計約 2.3 億美元的 PFAS 修復費用。

The remaining factors underlying our 2024 guidance include potential for reduced usage based on conservation and other factors, as well as strategic reinvestments in our business in 2024, such as approximately $1.1 million in customer-related software expended year-to-date. I would like to highlight that our guidance range is consistent with our long-term growth rate and is independent of real estate sales or merger and acquisition activities.

我們 2024 年指引的其他基礎因素包括基於保護和其他因素減少使用的可能性，以及 2024 年對我們業務的策略性再投資，例如今年迄今為止在客戶相關軟體上的支出約為 110 萬美元。我想強調的是，我們的指導範圍與我們的長期成長率一致，並且與房地產銷售或併購活動無關。

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 non-linear because of rate case cycles. I want to note that our recent settlement in California does provide a flatter rate impact than in years past.

此外，我們重申我們所述的 5% 至 7% 的長期增長率，該增長率以我們 2022 年每股 2.43 美元的攤薄收益為基礎，由於利率週期，該增長率是非線性的。我想指出的是，我們最近在加州達成的和解確實帶來了比過去幾年更平穩的利率影響。

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

說完這些，我會把電話轉給 Eric。

Thank you, Andrew. Well done. One of the ways we measure our impact and success as a company is how have we been a force for good? Just a couple of weeks ago, Newsweek notified us that SJW Group has been selected as one of America's greenest companies 2025. We are one of only two water utilities selected for this prestigious recognition.

謝謝你，安德魯。做得好。我們衡量一家公司的影響力和成功的方法之一是，我們如何成為一股向善的力量？就在幾週前，《新聞週刊》通知我們，SJW 集團被選為 2025 年美國最環保公司之一。

Only companies that meet the European Union's stringent sustainability criteria, considered the most advanced globally, were eligible. This recognition reflects the passion and dedication of our people who take our responsibility as environmental stewards very seriously.

只有符合歐盟嚴格的永續發展標準（被認為是全球最先進的）的公司才有資格。這項認可體現了我們的員工的熱情和奉獻精神，他們非常重視我們作為環境管理者的責任。

Another exciting new development is that San Jose Water, along with several of our California regulated private utility peers, were awarded a $50 million grant through the Grid Resilience and Innovation Partnerships, or GRIP, program for the installation of battery energy storage systems at critical high power use pumping stations.

另一個令人興奮的新進展是，聖何塞水務公司連同我們幾家受加州監管的私營公用事業同行，透過電網彈性和創新夥伴關係 (GRIP) 計劃獲得了 5000 萬美元的資助，用於在關鍵高功率使用泵站安裝電池儲能係統。

Established by the bipartisan infrastructure law, GRIP is a significant federal investment focused on modernizing and strengthening the resilience of the US electric grid. The GRIP program will integrate battery storage energy storage systems at various sites operated by San Jose Water and our peers.

GRIP 由兩黨基礎設施法設立，是一項重大的聯邦投資，重點是實現美國電網的現代化和增強其彈性。 GRIP 計劃將整合聖荷西水務公司和我們的同行營運的各個站點的電池儲存能量儲存系統。

To meet the GRIP cost share requirements and secure these funds, San Jose Water has committed to match its anticipated $8 million share of the grant, bringing the total investment to an anticipated $16 million. This funding represents a substantial investment in sustainability and operational flexibility for San Jose Water, significantly enhancing resilience while driving down energy costs. Only three California applicants were awarded grants through this very competitive program.

為了滿足 GRIP 成本分攤要求並確保這些資金，聖荷西水務公司承諾提供其預計的 800 萬美元撥款份額，使總投資達到預計的 1,600 萬美元。這筆資金代表著對聖荷西水務公司永續性和營運靈活性的重大投資，顯著增強了公司的彈性，同時降低了能源成本。透過這個競爭激烈的項目，只有三名加州申請者獲得了資助。

Other green achievements that I'd like to highlight include between 2019 and 2022, we reduced our greenhouse gas emissions by over 20% and we're on track for a further reduction in 2023. We will share that result after it's been audited, and our goal is a 50% reduction by 2030 from a 2019 baseline.

我想要強調的其他綠色成就包括，2019 年至 2022 年期間，我們的溫室氣體排放量減少了 20% 以上，並且預計在 2023 年進一步減少。

In California, our advanced leak detection program, which leverages AI technology, continues to be leading edge with water loss to leaks or non-revenue water below 10% compared to an industry benchmark of 15%. And we're fostering the expanded use of recycled water for irrigation to better preserve drinking water supplies.

在加州，我們利用人工智慧技術的先進洩漏檢測程序持續保持領先地位，洩漏造成的水損失或非收入水量低於 10%，而產業基準為 15%。我們正在推動擴大再生水在灌溉中的使用，以更好地保護飲用水供應。

In Connecticut, we've been recognized as a top workplace for the fourth consecutive year by the Hartford Current. We're especially humbled that the award is based on the results of an anonymous employee survey conducted by an independent third party.

在康乃狄克州，我們連續第四年被《哈特福德時報》評為最佳工作場所。我們尤其感到榮幸的是，該獎項是根據獨立第三方進行的匿名員工調查的結果而頒發的。

The survey asked employees about company culture, career development, and the organization's purpose and values. We appreciate our employees' partnership in creating a work environment that sets us up for world-class service and success.

調查詢問了員工關於公司文化、職業發展以及組織的目標和價值觀的問題。我們感謝員工的合作，創造了一個有利於我們提供世界級服務和成功的工作環境。

We'd like to extend a warm welcome to PURA Commissioner David Arconti and express our deep appreciation to outgoing Commissioner and Vice Chairman Jack Betkoski for his nearly four decades of public service, including 27 years at PURA. We look forward to working with Commissioner Arconti and his fellow commissioners to best serve Connecticut residents and communities.

我們要熱烈歡迎 PURA 專員 David Arconti，並對即將離任的專員兼副主席 Jack Betkoski 近四十年的公共服務（包括在 PURA 工作的 27 年）表示深切的感謝。我們期待與 Arconti 委員及其他委員一起努力，為康乃狄克州居民和社區提供更好的服務。

Over the last several years, we've built a strong national platform to support our growing local operations through the good times and the inevitable headwinds. And with a lot of effort and intention, we've maintained our fundamental values and culture through this growth.

在過去幾年裡，我們建立了強大的國家平台，以支持我們在順境和不可避免的逆境中不斷成長的本地業務。透過大量的努力和投入，我們在整個成長過程中始終保持著我們的基本價值和文化。

And that culture continues to guide us and distinguish us as we make business decisions that build trust with stakeholders. I continue to be inspired by the contributions of our talented teams across our local operations as they consistently provide an essential service with integrity, reliability, genuine care, and transparency.

當我們制定與利害關係人建立信任的商業決策時，這種文化繼續指導著我們，並使我們與眾不同。我不斷受到我們當地營運團隊的優秀貢獻的啟發，他們始終以誠信、可靠、真誠關懷和透明的方式提供基本服務。

I'm confident our team's commitment to serving customers, communities, and the environment will continue to excel SJW Group's ability to deliver value to our stakeholders and reinforce our strong position for a successful future.

我相信，我們團隊致力於服務客戶、社區和環境，這將繼續增強 SJW 集團為利益相關者創造價值的能力，並鞏固我們在未來成功的強大地位。

And with that, I'll turn the call back over to our operator.

說完這些，我會把電話轉回給我們的接線生。

(Operator Instructions) Richard Sunderland, JP Morgan.

（操作員指示）摩根大通 (JP Morgan) 的理查德·桑德蘭 (Richard Sunderland)。

Hi, good morning. Thank you for the time today.

嗨，早安。感謝您今天抽出時間。

Hey, hi, Richard. Thanks for calling in.

嘿，嗨，理查德。謝謝您的來電。

Good morning.

早安.

Great, thank you. Starting with the usage trends in Texas, can you speak a little bit about the sales there relative to the 2024 guidance assumptions? Are they on track ahead or behind? And I guess, similarly, how those trends, the GRC settlements and other recent developments position you on a 2025 basis relative to the 5% to 7% long-term growth rate?

太好了，謝謝。從德克薩斯州的使用趨勢開始，您能否談談那裡相對於 2024 年指導假設的銷售情況？他們是領先還是落後？我想，同樣地，這些趨勢、GRC 定居點和其他最新發展將如何讓您在 2025 年的基礎上相對於 5% 到 7% 的長期增長率處於什麼位置？

That's an excellent question, Richard. So let's start with 2024. We've definitely suffered some decreases due to usage and conservation in Texas this year. We are coming into the fourth quarter, so that -- that impact becomes less in terms of the total dollar amount, but it still remains in place. It is helpful to the fact that it's going to Stage 3 from Stage 4, but there's always some variation within the Texas area because there's different areas that have different drought levels.

理查德，這個問題問得非常好。那麼讓我們從 2024 年開始。我們即將進入第四季度，因此，從總金額來看，這種影響會變小，但仍然存在。從第四階段進入第三階段是有幫助的，但德州地區總是存在一些變化，因為不同地區的乾旱程度不同。

But that's still a positive development. So as we look at the fourth quarter this year, that will be something that we will continue to monitor. We are not adjusting our guidance range due to that. And so, I would expect us to be consistent with where we've talked about so far.

但這仍然是一個積極的發展。因此，當我們展望今年第四季時，我們將繼續關注這一點。我們不會因此調整我們的指導範圍。因此，我希望我們能夠堅持迄今為止所談論的立場。

Now for 2025, however, we would expect the drought conditions to persist. We will have the benefit of the settled rate case, knock on wood, that that will happen according to when we expect it to and we will also have the full year of the Connecticut rate case. So we are fully on track for meeting our long-term growth.

然而，到 2025 年，我們預計乾旱狀況將持續存在。我們將從已解決的利率案件中獲益，這將按照我們預期的時間發生，我們還將度過康乃狄克州利率案件的全年難關。因此，我們完全可以實現長期成長。

I would say the one highlight that I put into this comments today was to talk about the fact that the California rate increases this year or this coming year starts in 2025 at 3.91% assuming that that gets approved, that compares to a 13.35% that happened the last time that we had an approved rate case in 2022. So the benefit of that is it flattens out our overall earnings and revenue growth over a three-year cycle. So that's something I just want to highlight.

我想說，我今天在評論中提到的一個亮點是，加州的利率今年或明年（假設獲得批准）將從 2025 年開始上漲 3.91%，而上次 2022 年利率獲批時，利率為 13.35%。這是我只想強調的一點。

It's good for customers and it's good -- it's better for us too as we look at our earnings growth over a period of time.

這對客戶有好處，對我們也有好處——從我們一段時間內的獲利成長來看，這對我們來說也更好。

Got it. Great. Thank you for all the color there. Yes, very helpful. Do you have the main process that you highlight in the slides there on the tariff consolidation effort. I'm curious if you have any sense on how long that process could take?

知道了。偉大的。感謝那裡的所有色彩。是的，非常有幫助。您在投影片中重點介紹了關稅整合工作的主要流程嗎？我很好奇您是否知道這個過程需要多長時間？

And would it require a rate case after receiving approval across the new consolidated jurisdiction? Any other color there on sort of the relative rate levels would be helpful, too.

在獲得新的合併管轄區​​批准後，是否需要利率案例？關於相對利率水準的任何其他顏色也將有所幫助。

Yeah, look, I think from our perspective, it's still early days in order to be able to comment on rate levels or those types of things. But here's the benefit of this. This is a huge strategic move for our company to get this onto one rate cycle, and it really will help the communities in Maine as well, as we can further socialize the cost of the entire operation across the entire group of customers because there are some very small systems that are disadvantaged by not having such a large base of customers to distribute those costs over.

是的，我認為從我們的角度來看，現在對利率水平或諸如此類的事情發表評論還為時過早。但這樣做有好處。對於我們公司來說，將其納入一個費率週期是一個巨大的戰略舉措，而且它確實也會幫助緬因州的社區，因為我們可以進一步在整個客戶群中分攤整個運營的成本，因為有些非常小的系統由於沒有這麼大的客戶群來分攤這些成本而處於不利地位。

Given that, what I would expect to see is an ability, like we talked about, to reduce the load on not only our team, but on customers and then also on the Maine Public Utility Commission staff as we prosecute rate cases.

有鑑於此，我希望看到，正如我們所討論的那樣，當我們起訴費率案件時，不僅可以減輕我們團隊的負擔，還可以減輕客戶的負擔，並減輕緬因州公用事業委員會工作人員的負擔。

You can imagine that we're going down from multiples down to a single rate case and single WICA filings across all these, and that will really be beneficial for everybody involved.

你可以想像，我們將從多個費率案例減少到單一費率案例，並將所有這些案例都提交單一 WICA 文件，這對所有相關人員來說都是有益的。

Got it, very clear.

明白了，非常清楚。

Richard, the one thing I would add, I wouldn't expect us to bring everybody to the same level of rates immediately. That can be done gradually over time. But going forward, we'll, as Andrew said, really smooth out the administrative aspects of filing multiple cases as opposed to just a single case. So it will be good for everyone.

理查德，我想補充一點，我不會指望我們立即讓所有人的利率達到相同的水平。這可以隨著時間的推移逐步實現。但展望未來，正如安德魯所說，我們將真正理順提起多起案件（而非僅提起單一案件）的行政事宜。這對每個人來說都是有好處的。

No, got it. That's very clear. And then one last one from me. I recognize this came up several times on 2Q, but just curious if there are any updates you can offer on Aquarion. Your interest in the assets and potential timeline?

不，明白了。這非常清楚。接下來是我最後一個問題。我知道這個問題在第二季度出現過幾次，但我只是好奇您是否能提供有關 Aquarion 的任何更新資訊。您對資產和潛在時間表感興趣嗎？

Yeah. Thank you, Richard. I think if I recall now, the Eversource team announced about February of 2024 that they were looking to sell Aquarion. And I think they've said publicly that they would like to wrap that up, at least announce who the successful bidder was by the end of 2024. We do remain interested in the assets there.

是的。謝謝你，理查。我想如果我現在沒記錯的話，Eversource 團隊在 2024 年 2 月左右宣布他們正在尋求出售 Aquarion。我認為他們已經公開表示他們希望完成這項交易，至少在 2024 年底之前宣布得標者是誰。

And while I can't comment specifically on the process, it certainly would seem reasonable to know by the end of the year who the successful purchaser is. And then, of course, regulatory approval would commence in 2025. So we really believe that it would be a great acquisition for our shareholders, but at the same time, commit to remain disciplined and decisive about it going forward.

雖然我無法具體評論這個過程，但到年底知道誰是成功的購買者似乎是合理的。當然，監管部門的批准將於 2025 年開始。

Great. I'll leave it there. Thank you very much for the time today.

偉大的。我就把它留在那裡。非常感謝您今天抽出時間。

Thank you, Richard.

謝謝你，理查。

Thank you.

謝謝。

Jonathan Reeder, Wells Fargo.

富國銀行的喬納森·里德。

Hey, Eric and Andrew. How are you all today?

嘿，埃里克和安德魯。大家今天好嗎？

Hey. Hi, Jonathan. Thanks for calling today.

嘿。你好，喬納森。感謝您今天的來電。

Very good. Thank you.

非常好。謝謝。

Yeah. Thanks for taking the question. Just, I guess, piggybacking off of the last one with Aquarion. I know I've seen some Connecticut towns express concern over RWA's interest in buying Aquarion and what impact that might have on their tax revenues and customer rates. How influential do you think those concerns are to the process?

是的。感謝您回答這個問題。我猜，只是藉助上一個作品的 Aquarion 而已。我知道我已經看到康乃狄克州的一些城鎮對 RWA 收購 Aquarion 的興趣表示擔憂，以及這可能對他們的稅收和客戶費率產生的影響。您認為這些問題對這項進程有多大影響？

Yeah. Thank you, Jonathan. Yeah. I saw the same articles. And for those who may not have followed along, for example, a company such as ours, Connecticut Water in this case, we pay property taxes to communities based upon the assets invested to serve that community. And it is part of our rate recovery approach.

是的。謝謝你，喬納森。是的。我看到了同樣的文章。對於那些可能還沒有關注的人來說，例如我們這樣的公司，在這個例子中是康涅狄格水務公司，我們根據為服務社區而投資的資產向社區繳納財產稅。這是我們利率恢復方法的一部分。

Many municipalities do not pay, of course, themselves or in this case, if it was a different quasi-municipal utility, wouldn't pay the same level in property taxes to that community. And so, if you're a community leader and you see that the potential is there that future property tax receipts would decrease, then you would rightfully be quite concerned about that.

當然，許多市政當局自己不繳納稅款，或者在這種情況下，如果是不同的準市政公用事業，則不會向該社區繳納相同水平的財產稅。因此，如果您是社區領導者，並且您發現未來房產稅收入可能會減少，那麼您理應對此感到非常擔憂。

So it's one of the ways that we participate in the communities and assist them. And I think it's a real issue. I think community leaders in Bridgeport and Stamford and Greenwich and Torrington and on and on can -- could be quite concerned about it.

這是我們參與社區並為他們提供幫助的方式之一。我認為這是一個真正的問題。我認為布里奇波特、史丹佛、格林威治、托靈頓等地的社區領導人可能會對此相當擔憂。

But if there were a Regional Water Authority in place, they, of course, could try to make some amends to those communities and help out. So I do think it will be a consequential matter, but I don't think it would be determinative, Jonathan.

但如果有區域水務局，他們當然可以嘗試對這些社區做出一些補償並提供幫助。因此我確實認為這將是一個重要的問題，但我不認為它具有決定性作用，喬納森。

Okay. Great. And then I guess, shifting over to California, the CPUC recently issued the decision that lowers the energy utilities allowed ROEs by 42 basis points in 2025 by effectively reducing the magnitude of that 2024 cost of capital mechanism increase. Is there any avenue for the CPUC to do something similar for the waters for 2025?

好的。偉大的。然後我想，轉到加州，加州公用事業委員會最近發布了一項決定，透過有效降低 2024 年資本成本機製成長的幅度，在 2025 年將能源公用事業允許的 ROE 降低 42 個基點。加州公用事業委員會 (CPUC) 有沒有辦法針對 2025 年的水域採取類似措施？

Jonathan, I'll start and see if Andrew might want to add to it. But -- so of course, we've been tracking this proceeding as well. And at this time, I have no indication that a similar change is contemplated for the water utilities. We don't expect the energy decision to impact the way our WCCM is calculated. And similar to the energy decision, any change to the methodology used to calculate our adjustment would have to be issued via commission order.

喬納森，我先開始，看看安德魯是否想補充。但是——當然，我們也一直在追蹤這一進程。目前，我還沒有跡象顯示水務公司正在考慮進行類似的變革。我們不希望能源決策影響我們的 WCCM 計算方式。與能源決策類似，對計算調整的方法的任何變更都必須透過委員會命令發布。

And there's, again, nothing teed up at this moment that would suggest that or facilitate that. And we'd obviously engage at any time that we did sense or see that there was a change being considered or proposed. So, so far like I said, no indication at this time that we'd have a similar track.

但目前還沒有任何跡象表明或有助於實現這一點。而當我們感覺或看到有變更正在考慮或提議時，我們顯然會隨時參與。所以，到目前為止，就像我說的，目前還沒有跡象顯示我們會有類似的軌跡。

Yeah. I might just add a couple things, Eric, that, since the mechanism of recent time has been out, there's been three adjustments, two up and one down. We started off with the down actually and had two ups in the most recent time around.

是的。艾瑞克，我可能還想補充幾點，自從最近的機制推出以來，已經進行了三次調整，兩次上調，一次下調。事實上，我們一開始就處於低谷，但最近一次卻出現了兩次上升。

The thing that I commend about the mechanism is a two-way mechanism. It goes up and down, so it allows people to participate. In terms of the next adjustment, I don't know where the economy is ultimately going to go if I could forecast interest rates.

我對這個機制讚賞的一點是它是一種雙向機制。它上下移動，以便人們可以參與。對於下一次調整，如果我可以預測利率，我不知道經濟最終會走向何方。

I might not be talking to you on this call. But odds are greater that there's more downside pressure than upside pressure. And so, if I were an electric utility, I would understand the need to do this. And if you compare the outcomes of where our cost of debt has been and some of the other cost of capital mechanisms, the 20 basis points might be actually more consistent with what we're seeing today in the marketplace. But those can change over time.

我可能不會在這次通話中和你說話。但下行壓力大於上行壓力的可能性較大。所以，如果我是一家電力公司，我就會明白這樣做的必要性。如果你比較我們的債務成本和其他一些資​​本成本機制的結果，20 個基點可能實際上與我們今天在市場上看到的情況更一致。但這些會隨著時間而改變。

So that's the thing to keep in mind. It's -- while it might be here today, it can change in the future.

所以這是需要牢記的事情。儘管它今天可能還存在，但將來可能會發生變化。

Okay. Great. And just sticking along those lines, can you discuss what SJW's -- I know, you coordinate with the broader water utilities in the state, but with the potential cost of capital strategy. Do you think the new applications are likely to be filed in 2025 as scheduled? Or might there be a possibility to reach an agreement with PAO to defer the full-blown proceeding maybe possibly in exchange for a reduction in the allowed ROEs?

好的。偉大的。並且堅持這些思路，您能否討論一下 SJW——我知道，您與該州更廣泛的水務公司進行協調，但請考慮潛在的資本成本策略。您認為新的申請有可能按計劃在 2025 年提交嗎？或者是否有可能與 PAO 達成協議，推遲全面程序，以換取減少允許的 ROE？

Look, I think the odds are greater than that. Like we'll have to see where things are at, at the time and also what the commission workload is relative to us. So it's a discussion that needs to happen. So that being said, I think the odds are likely -- more likely that we will be -- end up filing in 2025. But that's a personal opinion, and that's one without having that interaction to find out what the workload is of the commission as well.

瞧，我認為可能性更大。例如，我們必須了解當時的情況，以及相對於我們而言的佣金工作量。所以這是一次需要進行的討論。話雖如此，我認為我們最終在 2025 年提交申請的可能性很高。

Okay. And then last one for me. I appreciate that answer, Andrew. Any potential impacts on the CapEx budget from the EPA's recently finalized lead and copper rule?

好的。對我來說這是最後一個。我很感謝你的回答，安德魯。美國環保署最近最終確定的鉛和銅規則對資本支出預算有何潛在影響？

Yeah. Look, I think there's -- that's something we will talk about the -- we'll give a revised five-year forecast in our next quarter's earnings as part of our also revised earnings forecast for 2025. But for sure, we are seeing continued increases in capital investment requirements.

是的。看，我認為——這是我們將要討論的事情——我們將在下一季度的收益中給出修訂後的五年預測，作為我們對 2025 年收益預測修訂的一部分。

And whether it's for lead and copper or inflation pressures related to the PFAS; as well as, quite frankly, growth and other things that are going on in our system that's very exciting but are going to require some very significant investments for us going forward. So I think overall, we're seeing certainly a more positive movement when it comes to that.

無論是鉛和銅，或是與 PFAS 相關的通膨壓力；坦白說，我們的系統中正在發生的成長和其他事情非常令人興奮，但為了我們未來的發展，需要進行一些非常重要的投資。因此我認為總的來說，我們在這方面確實看到了更積極的動向。

Now coupled with that, and this is very important for us, Eric talked about affordability as well. And I'm sure he'll add some more comments to this, but I would tell you that affordability is a key issue that we all are facing from a utility industry.

現在再加上這一點，這對我們來說非常重要，而艾瑞克也談到了可負擔性。我相信他會對此發表更多評論，但我要告訴你們，可負擔性是我們公用事業行業面臨的關鍵問題。

And we are zeroed in on things that we can do to further make the bills affordable for our customers. And so we're trying to look through everything that we do and increase our efficiency for the benefit of our customers and to allow that investment to happen not all on the backs of the customers, but on a shared basis.

我們正集中精力做力所能及的事情，讓客戶能夠負擔得起帳單。因此，我們試圖審視我們所做的每一件事，並提高我們的效率，以造福我們的客戶，並讓這項投資不再全部由客戶承擔，而是由大家共同承擔。

And well said, Andrew, I think we're viewing affordability as a strategic issue that we really need to think about comprehensively and propose solutions to the commissions and to our communities. And so, by working hard to reduce operating expense, it opens up a little headroom then in the bill to continue to invest to provide safe and adequate drinking water. So all on the table to do our best to meet the affordability test for our communities.

安德魯說得很好，我認為我們將負擔能力視為一個策略問題，我們確實需要全面考慮這個問題，並向委員會和社區提出解決方案。因此，透過努力降低營運費用，可以在帳單中騰出一點空間來繼續投資提供安全、充足的飲用水。因此，我們要盡最大努力滿足社區的負擔能力測試。

Excellent. Appreciate the time today.

出色的。珍惜今天的時光。

Thank you, Jonathan.

謝謝你，喬納森。

Angie Storozynski, Seaport.

安吉·斯托羅津斯基，海港。

Thank you. So two questions. One is, I understand the change in the earnings profile in California. But Andrew, you still kept your nonlinear growth profile comments. I'm just wondering why that is if California is more smoothed out. And then number two is, is there any exposure that you guys have in California or any other jurisdiction to the data centers?

謝謝。所以有兩個問題。一是，我了解加州收入狀況的變化。但是安德魯，你仍然保留了你的非線性成長概況評論。我只是想知道如果加州的情況更加平穩，為什麼會發生這種情況。第二個問題是，你們在加州或其他管轄區內對資料中心有任何風險嗎？

And the growth in water demand that those might have? Again, I don't know exactly which jurisdiction, but I'm assuming either California or Texas. Thank you.

這些可能導致用水需求成長嗎？再次重申，我不知道具體是哪個司法管轄區，但我假設是加州或德州。謝謝。

So I'll start off with the comment on the nonlinear. We still have two big divisions and one smaller division, Angie. So no matter how you look at it, that's going to be the case, and we will have nonlinear growth. But it's not as nonlinear as it was before just because of this current decision. But in general, it's something that's going to happen.

因此，我將從對非線性的評論開始。我們仍然有兩個大部門和一個小部門，安吉。所以無論你怎麼看，情況都會如此，我們將實現非線性成長。但由於目前的決定，它並不像以前那麼非線性。但總的來說，這是將要發生的事情。

And you can understand the comment that I said before, last time we started with a 13% increase when we first started our rate case in California, now we're only at 3.91%. So -- but that's -- we're very happy with where that's come out. There's nothing wrong. It's just the fact that we're making things more smooth for our customers.

您可以理解我之前所說的評論，上次我們在加州首次開始利率案例時，利率就上漲了 13%，而現在僅為 3.91%。所以 — — 但那是 — — 我們對結果非常滿意。沒什麼不對。事實是我們正努力為客戶提供更順暢的服務。

That's not necessarily always going to be the case, and it just depends how well we do of continuing to drive down expenses, which helps offset those potential first year adjustments when you go in for a rate case. So, so far, so good.

情況並不一定總是如此，這只是取決於我們在繼續降低開支方面做得有多好，這有助於抵消你在利率案例中可能出現的第一年調整。所以，到目前為止，一切都很好。

The second question, do you want to take that one?

第二個問題，你想選那個嗎？

Yeah. On the data centers, it's a great question, Angie. But I would not expect to see volume increases driven by data centers using water for cooling. I wouldn't expect to see significant volumetric changes resulting from that. But I would say that the economic development aspects and inevitably the growth that comes with that, there would definitely be infrastructure demands around that to support that community's growth and development.

是的。關於資料中心，這是一個很好的問題，安吉。但我預期資料中心使用水冷卻不會帶來產量的增加。我不認為這會導致顯著的體積變化。但我想說，經濟發展方面以及隨之而來的成長肯定會有基礎設施需求，以支持該社區的成長和發展。

And so, more of a secondary effect for us, Angie.

所以，安吉，這對我們來說更多的是一種次要的影響。

Awesome. Thank you.

驚人的。謝謝。

Thank you very much. Appreciate your call today.

非常感謝。感謝您今天的來電。

And I'm not showing any further questions at this time. I'd like to turn the call back over to Eric Thornburg for any closing remarks.

我現在不想再問任何問題。我想將電話轉回給 Eric Thornburg，請他做最後發言。

Well, thank you, operator. Really appreciate that. And thank you, everyone, for joining us today. We're in the home stretch of 2024, but there's still much to look forward to, including a CPUC decision on our settlement agreement in our California GRC, implementation of our AMI initiative, progress with bringing greater water supply online in Texas and applying for consolidation of our tariffs in Maine, and advancing our PFAS remediation strategy.

好的，謝謝您，接線生。真的很感激。感謝大家今天的參與。我們已進入 2024 年的最後衝刺階段，但仍有許多事情值得期待，包括 CPUC 就我們在加州 GRC 的和解協議做出的決定、我們 AMI 計劃的實施、在德克薩斯州增加供水量併申請合併我們在緬因州的關稅方面的進展，以及推進我們的 PFAS 補救戰略。

We will also continue to invest in our infrastructure, aiming to replace 1% of our pipe nationwide annually and explore the possibilities of how to ensure continued affordability for our customers as the capital needs of operations in the water utility industry continues to increase.

我們還將繼續投資於我們的基礎設施，目標是每年在全國範圍內更換 1% 的管道，並探索如何確保我們的客戶在水務行業運營的資本需求不斷增加的情況下繼續負擔得起費用的可能性。

SJW Group proudly leverages our national platform to support our distinct local operations and our shared mission to reliably serve high-quality water to 1.6 million people across four states. And while we do this, we make sure we execute our growth strategy and deliver shareholder value, including paying a dividend, which we have faithfully done for 80 straight years, and we've raised that dividend for 56 consecutive years.

SJW 集團自豪地利用我們的國家平台來支持我們獨特的本地業務和我們的共同使命，為四個州的 160 萬人民提供可靠的高品質水源。在這樣做的同時，我們確保執行我們的成長策略並實現股東價值，包括支付股息，我們已經連續 80 年忠實地做到了這一點，並且我們已經連續 56 年提高股息。

I recognize that it's our culture of service to our customers and the local communities that underlies our success, and I'm very proud of our people who make it all possible.

我認識到，我們為客戶和當地社區服務的文化是我們成功的基礎，我為使這一切成為可能的員工感到非常自豪。

Thank you again for your time today and your questions. We look forward to sharing our progress with you next quarter. In the meantime, Andrew and I, along with the rest of the SJW Group team are always available for follow-up. Thank you again for your interest in SJW Group.

再次感謝您今天的時間和提問。我們期待下個季度與您分享我們的進展。同時，安德魯 (Andrew) 和我以及 SJW 集團團隊的其他成員隨時準備跟進。再次感謝您對 SJW 集團的關注。

Thank you. Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.

謝謝。女士們、先生們，今天的演講到此結束。現在您可以斷開連接並享受美好的一天。