H2O America (HTO) 2025 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the H2O America second-quarter financial results call. (Operator Instructions) Please be advised that today's conference is being recorded.

大家好，感謝您的收看。歡迎參加H2O America第二季財務業績電話會議。 （操作員指示）請注意，今天的會議正在錄音。

I'd now like to hand the conference over to Ann Kelly, Chief Financial Officer and Treasurer. Please go ahead.

現在，我想將會議交給財務長兼財務主管安·凱利（Ann Kelly）。請發言。

Thank you, operator. Welcome to the second-quarter 2025 financial results conference call for H2O America. I will be presenting today with Andrew Walters, Chief Executive Officer; and Bruce Hauk, President and Chief Operating Officer.

謝謝接線生。歡迎參加 H2O America 2025 年第二季財務業績電話會議。今天我將與執行長 Andrew Walters 和總裁兼營運長 Bruce Hauk 一起出席。

For those who would like to follow along, slides accompanying our remarks are available on our website at h2o-america.com. 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.

對於那些想繼續關注的人來說，我們演講的幻燈片可以在我們的網站 h2o-america.com 上找到。在開始今天的演講之前，我想提醒大家，本次演講以及我們網站上發布的相關資料可能包含前瞻性陳述。

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.

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.

諸多因素可能導致公司的實際績效和表現與前瞻性陳述中明示或暗示的內容有重大差異。有關可能導致實際業績與本簡報中陳述存在差異的部分因素，請參閱財務業績新聞稿以及我們最近向美國證券交易委員會提交的10-K、10-Q和8-K表格，這些表格的副本可在我們的網站上取得。

All forward-looking statements are made as of today, and H2O America 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 October 20, 2025. You can access the press release and the webcast at H2O America's website.

所有前瞻性陳述均截至今日為止，H2O America 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，網路直播的存檔將保留至2025年10月20日。您可以在 H2O America 的網站上存取新聞稿和網路直播。

In addition, some of the information discussed today includes the non-GAAP financial measures of adjusted net income and adjusted diluted earnings per share that have not been calculated in accordance with generally accepted accounting principles in the United States, or GAAP.

此外，今天討論的一些資訊包括非 GAAP 財務指標，即調整後淨收入和調整後稀釋每股收益，這些指標並未按照美國公認會計原則 (GAAP) 計算。

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 the respective GAAP 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.

這些非公認會計準則 (non-GAAP) 財務指標應被視為以公認會計準則 (GAAP) 編製的財務資訊的補充，而非取代相應的公認會計準則 (GAAP) 財務指標。這些非公認會計準則 (non-GAAP) 財務指標與最直接可比較的公認會計準則 (GAAP) 財務指標的調節表已列於本報告附錄的表格中。

I will now turn the call over to Andrew.

現在我將電話轉給安德魯。

Welcome, everyone, and thank you for joining us. Before I begin, I would like to take a moment to acknowledge those impacted by the devastating flooding in the Texas Hill Country earlier this month. We are deeply saddened by the loss of so many lives. Our hearts go out to those affected, including our communities, our coworkers, our customers and those who have lost loved ones.

歡迎大家，感謝大家的參與。在開始之前，我想先向本月初德州丘陵地區遭受特大洪災的受災民眾致以誠摯的慰問。我們對眾多罹難者深感悲痛。我們向所有受災民眾，包括我們的社區、我們的同事、我們的客戶以及失去親人的人們，致以最深切的慰問。

We also want to thank all of the first responders for their heroic efforts as well as our entire Texas Water team who continue to serve their neighbors with integrity and courage, they face concerns about the health and safety of their own loved ones.

我們也要感謝所有急救人員的英勇努力，以及我們整個德州水務團隊，他們繼續以正直和勇氣為鄰居服務，他們擔心自己親人的健康和安全。

Now I'll turn to our second quarter updates. There have been many changes at our company since the first financial results update. In May, we rebranded SJW Group as H2O America and changed our ticker to HTO. The name and ticker better reflect who we are as a company.

現在我來談談我們第二季的財報更新。自從首次發布財報以來，我們公司發生了許多變化。今年5月，我們將SJW集團更名為H2O America，並將股票代號改為HTO。這個名稱和股票代碼更好地反映了我們作為一家公司的身份。

Water is now front and center in our name, which is fitting for one of America's largest investor-owned pure-play water and wastewater utilities. It also reflects our national platform and the strength we bring to our local utility operations so they can better serve their local customers.

如今，水已成為我們公司名稱的核心，這與美國最大的投資者擁有的純水務和污水處理公用事業公司之一相得益彰。它也體現了我們覆蓋全國的平台以及我們為本地公用事業營運帶來的實力，使他們能夠更好地服務本地客戶。

On June 30, Eric Thornburg retired as President and CEO, leaving an impressive career that spans more than four decades. He leaves an enduring legacy in the industry and at our company. We wish them the best. I was honored to step into the CEO role on July 1 and was joined by Bruce Hauk as President and Chief Operating Officer; Kristen Johnson, as President of Shared Services, Senior Vice president and Chief Administrative Officer; and Ann Kelly as our Chief Financial Officer and Treasurer.

6月30日，艾瑞克‧索恩伯格（Eric Thornburg）卸任總裁兼執行長一職，留下了四十餘年輝煌的職業生涯。他為行業和公司留下了不朽的遺產。我們祝福他們一切順利。我很榮幸於7月1日接任執行長一職，與他一同卸任的還有：布魯斯·豪克（Bruce Hauk）擔任總裁兼首席營運長；克里斯汀·約翰遜（Kristen Johnson）擔任共享服務總裁、高級副總裁兼首席行政官；安·凱利（Ann Kelly）擔任首席財務官兼財務主管。

Just yesterday, we welcomed another highly accomplished leader to H2O America. Megan Mattern is our new Principal Accounting Officer, Chief Accounting Officer and Controller. She joins us from UGI International, where she recently served as Vice President and Chief Financial Officer. Megan brings two decades of experience in complex regulated environments, spanning global energy, utilities and infrastructure, making her an outstanding addition to our national leadership team.

就在昨天，我們迎來了另一位才華橫溢的領導者——Megan Mattern，她將擔任我們新任首席會計官、首席會計官兼財務總監。她之前在 UGI International 任職，近期擔任副總裁兼財務長。 Megan 擁有二十年在複雜監管環境下工作的經驗，業務範圍涵蓋全球能源、公用事業和基礎設施，這使其成為我們國家領導團隊的傑出補充。

She shared our commitment to culture, service and communities. At H2O America, we protect what's precious and we do it right, we do it together, and we do it with heart. I am pleased to share that our second quarter of 2025, we delivered strong financial results, including net income of $0.75 per share on an adjusted 14% increase over the second quarter of 2024.

她分享了我們對文化、服務和社區的承諾。在H2O America，我們守護珍貴的事物，並以正確的方式、齊心協力、用心去做。我很高興地告訴大家，我們在2025年第二季度取得了強勁的財務業績，其中每股淨利潤0.75美元，調整後比2024年第二季度增長14%。

Our performance reflects our continued execution of our proven growth strategy, focus on investments in our infrastructure and our water systems across our national footprint and constructive engagement in consensus building with key local stakeholders, all with an eye on affordability.

我們的績效反映了我們持續執行行之有效的成長策略，專注於在全國範圍內投資基礎設施和供水系統，並與當地主要利益相關者建設性地建立共識，同時著眼於可負擔性。

Some highlights from the second quarter. We spearheaded legislation in Connecticut that was signed into law and will allow for faster recovery of PFAS investments and avoid rate shock for customers. We supported legislation in Texas that will similarly reduce how long it takes us to recover capital investments through infrastructure recovery mechanisms and provided for a future test year in general rate cases. We championed a law in Maine that allows water utilities to offer affordability programs to customers.

第二季的一些亮點：我們主導推動了康乃狄克州的一項立法，該立法已簽署生效，將加快PFAS投資的回收速度，並避免客戶遭受費率衝擊。我們支持了德州的一項立法，該立法同樣將縮短我們透過基礎設施回收機制回收資本投資的時間，並規定了未來在一般費率案件中設立一個測試年。我們支持了緬因州的一項法律，該法律允許水務公司向客戶提供可負擔性計劃。

We requested and received approval in California to recover the capital invested in our advanced metering infrastructure project. And finally, Texas Waters, second system improvement charge was approved by the Public Utilities Commission of Texas. I am also happy to share that we invested $207 million in water and wastewater utility infrastructure across all four states through June 30, and we are on track to meet our $473 million capital plan for 2025.

我們已向加州申請並獲批收回先進計量基礎設施項目的資金。此外，德州公用事業委員會批准了德州水域計畫的第二筆系統改進費用。我還很高興地告訴大家，截至6月30日，我們在四個州的供水和污水處理公用事業基礎設施上已投資2.07億美元，我們預計將實現2025年4.73億美元的資本計劃。

Just after the quarter ended, we announced an agreement to acquire Quadvest, a water and wastewater utility serving Greater Houston, Texas area, the second fastest-growing metropolitan area in the country. We expect the acquisition to close by mid-2026, at which point our combined Texas Water operation would become the second largest investor-owned water utility in Texas, serving 7 of the 50 fastest-growing counties in the United States, placing us in the top 2% of counties nationwide.

本季結束後不久，我們宣布了一項收購 Quadvest 的協議。 Quadvest 是一家服務於德州大休士頓地區的供水和污水處理公司，該地區是美國成長速度第二快的大都會區。我們預計此次收購將於 2026 年中期完成，屆時，合併後的德州水務業務將成為德克薩斯州第二大投資者所有的供水公司，服務於美國增長最快的 50 個縣中的 7 個，使我們躋身全美前 2% 的縣之列。

Quadvest adds significant operational scale to both our Texas operations and H2O America, with a strong and growing developer pipeline of connections under contract and pending future development. We expect the transaction to be dilutive to earnings in 2026 and 2027 before becoming accretive in 2028 and meaningfully accretive to our long-term growth rate. Bruce will have more on the Quadvest acquisition and state regulatory matters later in the call. Overall, it's been a strong, strategic and financial first half of the year with several milestones we're proud of. With that,

Quadvest 為我們德州的業務和 H2O America 帶來了顯著的營運規模，並擁有強大且不斷增長的開發商管道，涵蓋已簽約和未來待開發的項目。我們預計，此交易將稀釋 2026 年和 2027 年的收益，然後在 2028 年實現增值，並顯著提升我們的長期成長率。 Bruce 將在稍後的電話會議上詳細介紹 Quadvest 收購和州監管事宜。整體而言，今年上半年表現強勁，策略性和財務狀況良好，取得了許多值得我們驕傲的里程碑。此外，

I'll turn it over to Ann to walk us through our financial results.

我將讓安向我們介紹我們的財務結果。

Thank you, Andrew. Yesterday, after the market closed, we released our second quarter operating results. As Andrew mentioned, we are pleased to report diluted EPS of $0.71 and adjusted diluted EPS of $0.75 for the quarter.

謝謝，安德魯。昨天股市收盤後，我們公佈了第二季的營運表現。正如安德魯所提到的，我們很高興地報告本季的稀釋每股收益為0.71美元，調整後稀釋每股收益為0.75美元。

With these strong results, we are reaffirming our 2025 guidance range of adjusted diluted earnings per share of $2.90 to $3.00. We are also reaffirming H2O America's 5% to 7% earnings growth rate through 2029, and we continue to expect to be in the top half of the range.

憑藉這些強勁的業績，我們重申2025年調整後稀釋每股收益2.90美元至3.00美元的預期範圍。我們也重申H2O America到2029年的獲利成長率將達到5%至7%，並將繼續保持在該區間的上半部。

We are very pleased with our strong performance in the first half of 2025. However, it's important to note that this period reflects the full benefit of new rate cases at San Jose Water, which was effective on January 1, 2025, and Connecticut water, which was effective July 1, 2024, compared to the prior year.

我們對 2025 年上半年的強勁表現感到非常滿意。然而，值得注意的是，與前一年相比，這段時期反映了聖荷西水務公司（於 2025 年 1 月 1 日生效）和康乃狄克水務公司（於 2024 年 7 月 1 日生效）新費率案例的全部好處。

And as a reminder, last year's results also benefited from tax favorability in the second half of 2024, including an $0.11 onetime benefit in Q3 '24 from a change in accounting method. As we look ahead, we remain focused on disciplined execution to meet our annual and long-term growth targets.

值得一提的是，去年的業績也受惠於2024年下半年的稅收優惠政策，其中包括2024年第三季因會計方法變更而產生的0.11美元的一次性收益。展望未來，我們將繼續專注於嚴謹的執行，以實現年度和長期成長目標。

Factors impacting second quarter earnings per share are shown on slide 10. At a high level, increased revenue from rates and usage drove a revenue increase of $0.57. The revenue increase was partially offset by higher water production expenses of $0.27, other operating expense of $0.19 and an additional $0.05 due to an increase in the number of shares outstanding.

影響第二季每股收益的因素列於投影片10。整體來看，費率和使用量收入的增加推動收入成長0.57美元。收入成長部分被水生產費用增加0.27美元、其他營運費用增加0.19美元以及因流通股數量增加而額外增加0.05美元所抵銷。

Turning to the next slide, I will provide more detail on each of these areas. Our revenues increased 13% in the second quarter. Rate increases from the general rate cases in California and Connecticut, along with increases from our infrastructure mechanisms in Connecticut, Maine and Texas contributed $10.9 million to the revenue increase.

下一張投影片將詳細介紹每個領域。我們的營收在第二季成長了13%。加州和康乃狄克州的一般費率上漲，以及康乃狄克州、緬因州和德州的基礎設施機制費率上漲，為營收成長貢獻了1,090萬美元。

$6.7 million is attributable to pass-through water cost for our wholesalers as these costs continue to increase each year. Higher customer usage added another $4.9 million as increased usage in California more than offset a reduction in Texas due to ongoing conservation measures. I'll speak more about that in a moment.

670萬美元歸因於我們批發商的直通水成本，因為這些成本每年都在增加。由於持續採取節水措施，加州用水量的增加抵消了德州用水量的減少，因此客戶用水量的增加又增加了490萬美元。稍後我會詳細介紹這一點。

And the revenue increase associated with the higher usage was partially offset by a reduction in regulatory mechanisms. As I mentioned a moment ago, water conservation measures remain in place in much of our Texas service area.

用水量增加帶來的收入成長，部分被監管機制的減少所抵銷。正如我剛才提到的，我們德州大部分服務區仍在實施節水措施。

Recent rains over the past months have helped our water supplies. However, the recovery has not yet been enough to lift water conservation measures. We are more than halfway through our peak long irrigation season, and we do not expect any adjustment to our 2025 guidance based on Texas revenue. Water production expenses increased 15% in the quarter and was primarily driven by an increased cost of $8 million from our water wholesalers that are largely offset in revenue. There was also a $2.7 million increase in expense associated with our higher production volume and a $300,000 reduction in other production costs and regulatory mechanisms.

過去幾個月的降雨有助於我們的供水。然而，水位恢復尚不足以取消節水措施。我們的灌溉高峰期已過半，根據德州的收入，我們預計2025年的指導方針不會有任何調整。本季水生產費用增加了15%，主要原因是我們水批發商的成本增加了800萬美元，但這部分成本基本上被收入抵銷。此外，由於產量增加，費用也增加了270萬美元，其他生產成本和監管機制則減少了30萬美元。

Turning to slide 13. For the quarter, we reported an increase of 13% in other operating expenses. Customer credit losses increased $4.6 million over the same period of 2024. You may recall that in the second quarter of last year, San Jose Water received a nonrecurring payment from the California water and wastewater arrearage payment program to relieve outstanding payment delinquencies. General and administrative expenses increased $3.7 million, primarily driven by contracted work and acquisition costs and lower maintenance costs offset increases in other areas.

翻到第13張幻燈片。本季度，我們報告其他營運費用成長了13%。客戶信用損失比2024年同期增加了460萬美元。您可能還記得，去年第二季度，聖荷西水務公司從加州水和廢水欠費支付計劃獲得了一筆非經常性付款，用於緩解未償付的欠款。一般及行政費用增加了370萬美元，主要原因是合約工程和收購成本以及維護成本的降低抵消了其他領域的成長。

Factors impacting earnings per share for the year-to-date period are shown on slide 14. At a high level, increased revenue from GRCs and infrastructure recovering mechanisms drove a revenue increase of $1.04. The revenue increase was partially offset by higher water production expense of $0.45. And as noted during my remarks for the quarter, purchased water costs are largely offset in revenue.

影響年初至今每股盈餘的因素列於第14張投影片。整體來看，來自GRC和基礎設施恢復機制的收入成長推動收入成長1.04美元。收入成長被0.45美元的供水費用成長部分抵銷。正如我在本季度發言中指出的那樣，購水成本在很大程度上被收入抵消。

Operating expenses increased $0.27 driven by increases in customer credit losses in addition to increased expenses for insurance and contracted work and an additional $0.08 was due to an increase in the number of shares outstanding. Breakdowns of revenue, water production expenses and other operating expense for the first six months of 2025 are available in the appendix of our slide presentation.

營運費用增加了0.27美元，這主要是由於客戶信貸損失增加，以及保險和合約工程費用增加；此外，還增加了0.08美元，原因是流通股數量增加。 2025年前六個月的收入、水生產費用和其他營運費用的明細，請參閱我們投影片簡報的附錄。

On the financing side, through the first six months, we took advantage of investor interest and raised approximately $84 million of our $120 million to $140 million expected annual equity proceeds through our at-the-market equity program. At the end of the quarter, we had $161 million drawn on our $360 million bank lines of credit, which left $199 million available for short-term financing of utility plant additions and operating activities.

在融資方面，前六個月，我們充分利用了投資者的興趣，透過市場化股權融資計畫籌集了約8,400萬美元，而我們預計年度股權收益為1.2億至1.4億美元。截至本季末，我們已從3.6億美元的銀行信貸額度中提取了1.61億美元，剩餘1.99億美元可用於公用事業工廠擴建和營運活動的短期融資。

The average borrowing rate for our line of credit has been approximately 5.45% compared to 6.53% in the prior year. Also, after quarter end, Maine Water borrowed $25 million under an existing loan agreement for 30-year debt at 6.7% fixed interest, and CTWS repaid the outstanding $25 million balance under its credit agreement. On the tax front, our consolidated income tax rate was 16%, which was consistent over the first half of last year.

我們的信用額度平均借款利率約為5.45%，而去年同期為6.53%。此外，季末之後，緬因水務公司根據現有貸款協議以6.7%的固定利率借入2,500萬美元，期限為30年。 CTWS公司根據其信貸協議償還了2500萬美元的未償餘額。稅務方面，我們的合併所得稅率為16%，與去年上半年持平。

And with that, I'll turn the call over to Bruce, who will provide updates on key state regulatory developments and the Quadvest acquisition.

接下來，我將把電話轉給布魯斯，他將提供有關主要國家監管發展和 Quadvest 收購的最新資訊。

Thank you, Ann. I am pleased to share that our constructive engagement with regulators, legislators and policy leaders continue to create value for our customers and the company. At San Jose Water, our request for a $6.8 million revenue increase for our advanced metering infrastructure project was approved and effective on July 1, 2025. The increase reflected our capital investment of $44 million in AMI. Just this month, we launched the SJ WaterHub, the customer AMIN payment portal.

謝謝你，安。我很高興地告訴大家，我們與監管機構、立法者和政策領導者的建設性合作持續為我們的客戶和公司創造價值。在聖荷西水務公司，我們為先進計量基礎設施項目增加680萬美元收入的申請已獲批准，並於2025年7月1日生效。這筆增資反映了我們對先進計量基礎設施（AMI）4,400萬美元的資本投資。就在本月，我們推出了客戶AMIN支付入口網站－SJ WaterHub。

This platform gives customers near real-time information on their water usage and enables them to create high water usage alerts, so they can conduct leaks earlier and better manage their bills. We expect to fully build out our AMI platform to serve customers by 2027. Maine Water successfully completed the general rate case in the Camden Rockland division. The main Public Utilities Commission authorized $865,000 increase in revenues. The MPUC also authorized a total of $547,000 and water infrastructure charge increases effective on July 1, 2025.

該平台為客戶提供近乎即時的用水信息，並支援他們創建高用水量警報，以便他們能夠更早發現漏水情況並更好地管理帳單。我們預計2027年將全面建成AMI平台，為客戶提供服務。緬因水務公司成功完成了卡姆登羅克蘭分部的一般費率案。緬因州公用事業委員會批准增加86.5萬美元的收入。緬因州公用事業委員會也批准了總計54.7萬美元的供水基礎設施費用上調，這些費用自2025年7月1日起生效。

At Texas Water, our system improvement charge increase of $4.1 million was approved and became effective on May 15, 2025. And at Connecticut Water, our latest Water Infrastructure and Conservation Adjustment surcharge increase of $1.6 million went into effect on April 1, 2025.

在德州水務公司，我們系統改善費用增加 410 萬美元的提案已獲批准，並於 2025 年 5 月 15 日生效。在康乃狄克水務公司，我們最新的水基礎設施和保護調整附加費增加 160 萬美元的提案已於 2025 年 4 月 1 日生效。

I want to give kudos to teams in our local states that are executing our $473 million 2025 CapEx plan, which was a significant increase over last year and designing and managing projects that are bringing critical infrastructure online to serve our customers, including our water supply resiliency projects in the Texas Hill Country.

我要對我們當地各州的團隊表示敬意，他們正在執行我們 4.73 億美元的 2025 年資本支出計劃，該計劃比去年大幅增加，並設計和管理了將關鍵基礎設施上線為我們的客戶提供服務的項目，包括我們在德克薩斯丘陵地區的供水彈性項目。

Turning to the next slide. Our regulatory affairs teams are making a meaningful difference that state legislators for our customers, the company and all of our stakeholders. Our approach of engaging with local stakeholders across our national footprint paid real dividends in this year's state legislative sessions. Connecticut, we championed the water quality treatment adjustment to recover $190 million we estimate is needed through 2029 to meet the PFAS standards.

翻到下一張投影片。我們的監管事務團隊正在為州立法者為我們的客戶、公司和所有利益相關者做出有意義的改變。我們與全國各地當地利益相關者合作的方式在今年的州立法會議上獲得了真正的回報。在康乃狄克州，我們倡導水質處理調整，以收回我們估計到2029年達到PFAS標準所需的1.9億美元。

The WQTA provides for annual recovery of our investment to address PFAS and other emerging contaminants. Further, the WQTA increases the percent of capital in our five-year plan that has recovered on a timely basis to 75% from 66%.

WQTA 規定我們每年可收回用於解決 PFAS 和其他新興污染物問題的投資。此外，WQTA 將我們五年計畫中已及時收回的資本比例從 66% 提高到 75%。

I want to stress the recovery is for the total amount spent during the period, not just for completed projects. We have filed the required assessment report and expect to be able to make our first WQTA to recover invested capital beginning in early 2026. To date, Texas has been a historic test year for water utility rate cases.

我想強調的是，追回的是該期間支出的全部金額，而不僅僅是已完成的項目。我們已經提交了所需的評估報告，預計能夠從2026年初開始進行首次水費評估（WQTA），以收回投資資金。迄今為止，德克薩斯州一直是水費案件歷史性的考驗之年。

Under new legislation signed by Governor Abbott, utilities will now have the option to use a future test year or a hybrid test year. In addition, the governor signed a bill that reduces the processing time for system improvement charge requests from 120 days down to 60 days. Both laws take effect in September and are expected to support more timely recovery of capital investments.

根據州長阿博特簽署的新法案，公用事業公司現在可以選擇使用未來測試年或混合測試年。此外，州長還簽署了一項法案，將系統改善收費申請的處理時間從120天縮短至60天。這兩項法案將於9月生效，預計將支持更及時地收回資本投資。

In Maine, we worked to get a new law on the books that allows Maine Public Utility Commission to authorize an affordability tariff for income-eligible customers. This is a win for customers facing financial challenges. We are working with the Office of Public Advocate on implementing this as part of our application before the MPUC to unify our 10 separate rate districts into a single tariff. We expect a decision on the unification proceeding in the fourth quarter.

在緬因州，我們努力推動一項新法律的通過，該法律允許緬因州公用事業委員會（MPUC）授權符合收入條件的客戶制定可負擔電價。這對於面臨財務困境的客戶來說是一個勝利。我們正在與公共辯護辦公室（Office of Public Advocate）合作，將這項法案作為我們向緬因州公用事業委員會（MPUC）提交的申請的一部分，申請將我們10個不同的費率區統一為一個電價。我們預計將於第四季度就統一程序做出決定。

We'll now turn to an update on the Quadvest acquisition in Texas we announced earlier this month. Adding Quadvest to the Texas Water Company is a unique opportunity to strategically diversify, enhance and expand H2O Americas operations in one of the fastest-growing regions in the US. It will allow us to strengthen our network of developers and drive stronger returns for our investors.

現在，我們將介紹本月稍早宣布的德州 Quadvest 收購案的最新進展。將 Quadvest 納入德州水務公司，是 H2O Americas 在美國成長最快的地區之一實現業務多元化、增強和擴張的獨特機會。這將使我們能夠增強開發商網絡，並為投資者帶來更豐厚的回報。

We're bringing together two highly aligned teams that share a culture of servant leadership positioning us to integrate seamlessly and execute effectively. By joining forces, we're expanding our geographic reach and enhancing our overall scale and diversification. This creates a more balanced utility portfolio and strengthens our ability to invest in infrastructure, operations and talent in Texas and across all states we serve.

我們將兩支高度契合的團隊整合在一起，他們擁有共同的僕人式領導文化，使我們能夠無縫整合並有效執行。透過強強聯手，我們將擴大地域覆蓋範圍，並提升我們的整體規模和多元化。這將打造更均衡的公用事業組合，並增強我們在德州及我們服務的所有州投資基礎設施、營運和人才的能力。

Texas currently represents about 7% of H2O America's customer base. By 2029, we anticipate double-digit growth fueled in large part by Quadvest which will propel Texas to 26%, making it our second largest state in terms of customers served.

德州目前約佔 H2O America 客戶群的 7%。到 2029 年，我們預計客戶群將實現兩位數成長，這主要得益於 Quadvest 的推動，屆時德州的客戶佔比將達到 26%，成為我們服務客戶數量第二大的州。

I'll have more on the growth story on the next slide. Just one day after the announcement, we notified the Public Utilities Commission of Texas of our intention to use fair market value for the transaction. That notification started a 30-day window for the PUCT to a point 3 appraisers. Under Texas fair market value rules, the appraisers have 120 days to complete their work and the appraisals will be average to determine the fair market value. As we move through the regulatory process, we expect the transaction to close in mid-2026.

下一張投影片我會更詳細地介紹成長情況。公告發布後僅一天，我們就通知了德州公共事業委員會 (PUCT)，我們打算使用公平市場價值進行交易。該通知為 PUCT 開啟了 30 天的窗口期，以便 PUCT 能夠與 3 級評估師進行溝通。根據德州公平市場價值規則，評估師有 120 天的時間完成工作，評估結果將採用平均值來確定公平市場價值。隨著監管流程的推進，我們預計交易將於 2026 年中期完成。

Concurrent with the Quadvest acquisition, Texas Water is undertaking large infrastructure investment projects to increase the resilience of our water supply in the Texas Hill Country including the interconnection of KT water supply. We expect that project to be in service by the end of 2026. If the current time line holds, we anticipate filing a general rate case in early 2027 for the combined Texas water operations. This filing would include the Quadvest rate base as determined through the fair market value process. We would expect new rates for Texas Water to become effective in early 2028.

在收購 Quadvest 的同時，德州水務公司 (Texas Water) 正在進行大型基礎設施投資項目，旨在提升德州丘陵地區供水系統的韌性，其中包括連接 KT 供水系統。我們預計該專案將於 2026 年底投入使用。如果目前的時間表保持不變，我們預計將於 2027 年初為合併後的德州水務業務提交一份通用費率申請。該申請將包含透過公平市場價值流程確定的 Quadvest 費率基準。我們預計德州水務公司的新費率將於 2028 年初生效。

The Quadvest acquisition is anticipated to be accretive in 2028 and meaningfully accretive to our long-term growth rate. I also want to give you a sense of the growth potential of the Quadvest assets. When we made our announcement, we were using December 31, 2024, connection numbers that showed Quadvest had 136,000 water and wastewater connections that were either active or under contract pending development.

預計對 Quadvest 的收購將在 2028 年實現增值，並顯著提升我們的長期成長率。我也想讓大家了解一下 Quadvest 資產的成長潛力。當我們宣布收購時，使用的是截至 2024 年 12 月 31 日的連接數據，數據顯示 Quadvest 擁有 13.6 萬個供水和污水處理連接，這些連接要么已投入使用，要么已簽訂合同，等待開發。

We have updated those numbers through the second quarter. Quadvest now has more than 140,000 connections that are either active or under contract and pending development, a 4% increase over six months.

我們已更新第二季的數據。 Quadvest 目前擁有超過 14 萬個活躍、已簽約和待開發的連接，六個月內成長了 4%。

It is worth noting that regulated active customer growth was 2,000 connections, a significant 6% increase. Of course, future connection growth will vary based on a number of conditions, so this is no guarantee of future growth rates. However, these results are in within the range of our expectations, and we believe solid growth will continue in the Greater Houston area, the second fastest growing metropolitan area in the United States.

值得注意的是，受監管的活躍客戶成長了2,000個連接，增幅高達6%。當然，未來的連結成長將受多種因素影響，因此這並不能保證未來的成長率。然而，這些結果在我們的預期範圍內，我們相信，作為美國成長第二快的大都會區，大休士頓地區將繼續保持穩健的成長。

With that, I will turn it back over to Andrew.

說完這些，我將把麥克風交還給安德魯。

Thank you, Bruce. The second quarter was strong for H2O America, and we have even more to look forward to in the rest of 2025. We remain focused on driving shareholder and customer value through disciplined infrastructure investment, advancing the Quadvest acquisition, deepening our strong partnerships with local stakeholders in unrelenting pursuit of operational excellence and identifying creative and sustainable solutions that maintain affordability while investing in critical infrastructure as demands continue to grow across the water utility industry.

謝謝你，布魯斯。 H2O America 在第二季表現強勁，我們對 2025 年剩餘時間的業績充滿期待。我們將繼續專注於透過嚴謹的基礎設施投資來提升股東和客戶價值，推進 Quadvest 收購，深化與當地利益相關者的緊密合作夥伴關係，不懈追求卓越運營，並尋找富有創意且可持續的解決方案，在投資關鍵基礎設施的同時保持可負擔性，以滿足水務行業持續增長的需求。

And now I'll turn the call back over to the operator for questions.

現在我將把電話轉回給接線員以便回答問題。

(Operator Instructions)

（操作員指示）

Angie Storozynski, Seaport.

安吉·斯托羅津斯基，海港。

Thank you.

謝謝。

Good afternoon. How are you doing?

午安.你好嗎？

How are you guys? Okay, My question is about -- Okay. So the question on Texas, the SMB notification or the intent to use SMB. So what happens next? So we're waiting for those appraisers to be appointed and you're not going to be filing your perspective of what you think the value of the asset is, right? We're going to be waiting for the appraisers to express their views.

你們好嗎？好的，我的問題是關於……好的。關於德克薩斯州的問題，SMB通知，或使用SMB的意圖。接下來會發生什麼事？我們正在等待那些評估師的任命，而你不會提交你對資產價值的看法，對嗎？我們將等待評估師表達他們的意見。

Correct, Angie. The process is we filed on July 9, the notice of intent to use fair market value. That sets off a 30-day process for the PUCT to appoint the three appraisers to do the valuation. And then that kicks off after 30 days, another 120 days for those appraisals to be completed and discern the value. The fair market value for rate-making purposes based on the average of the three appraisers. Subsequent to that, we would file the sale transfer merger post those appraisals being discerned and that kicks off that process.

正確，安吉。流程是，我們在7月9日提交了使用公平市價的意向通知。這啟動了為期30天的流程，PUCT將任命三位評估師進行估價。 30天后，評估工作開始，接下來的120天用於完成評估並確定價值。用於制定費率的公平市場價值將基於三位評估師的平均估價。之後，我們將在確定這些評估結果後提交銷售轉讓合併申請，並啟動整個流程。

Okay. So we just basically had to wait for their assessment of the value just to have any sense of what the rate base of the assets will be, I understand. Okay. And secondly, the update on the connection increase. I mean, yes, it is strong, but it's slower -- seemingly a slower growth than what we saw in the past, at least based on the report -- or the chart that was included in your slides. Is it just the law of large numbers, so the base is getting bigger, and that's why the growth off of the larger basis is decelerating?

好的。所以我理解，我們基本上只能等他們評估價值，才能大致了解這些資產的利率基數是多少。好的。其次，關於連結量成長的最新情況。我的意思是，是的，它很強勁，但增長速度較慢——似乎比我們過去看到的要慢，至少根據報告——或者幻燈片中的圖表來看是這樣。這是否只是大數定律，基數越來越大，這就是為什麼基於更大基數的成長速度正在放緩？

Yeah. I think that's primarily it, Angie, is that as you grow the business, the percent increases are going to be coming out each year just because, as you mentioned, large numbers. So that's why we kind of guided folks to look at the actual total number of increases over the past couple of years versus the percentage.

是的。安吉，我認為主要原因在於，隨著業務的成長，每年的百分比都會成長，因為正如你所提到的，數字很大。所以我們引導大家關注過去幾年實際成長的總數，而不是百分比。

Okay. And then one other question about that's meaningfully accretive to the long-term EPS growth rate. So what it means meaningfully (Laughter). Is it 100 bps versus whatever the 6% to 7% range that you're currently guiding to? Is it more than 100 basis points? What would be considered meaningful?

好的。還有一個問題，關於這對長期每股收益成長率是否具有顯著的增值作用。那麼，它意味著什麼才是有意義的呢？ （笑聲）。是100個基點，而不是您目前預測的6%到7%的範圍？是超過100個基點嗎？什麼才算有意義？

Look, I think meaningful obviously can be in the eye of the beholder in terms of how you think about it. But when you start talking about percentages of a growth rate, 100 basis points would absolutely be a meaningful increase as an example. But we won't comment on that until we move further along the line.

聽著，我認為「有意義」顯然取決於旁觀者的看法。但當你開始談論成長率的百分比時，例如100個基點絕對是一個有意義的成長。但我們在進一步探討之前不會對此發表評論。

Okay. And then one more question. So we're hearing some opposition to the Aquarion transaction in Connecticut. I mean you're just an observer of the issue in the state. I mean do you have any general views about, if you would be so interested in this asset if the current sales process were to fail?

好的。還有一個問題。我們聽到康乃狄克州有人反對Aquarion交易。您只是該州的一個觀察員。您有什麼總體看法嗎？如果目前的出售流程失敗，您是否還會對這項資產感興趣？

Look, I think the asset would be very strategic for our company from that perspective. We've made our bed, so to speak, in terms of where we're heading right now with our Texas acquisition, that's going to keep us busy for a bit. But yes, would that acquisition be strategic for us, it would be. And the reason why it's strategic is because it would be good for our customers and allow us to have a significantly lower rates that we would be able to charge customers at the end of the day. That's the part that's unique about investor-owned utility is those cost savings belong in the pockets of our customers as opposed to being able to go somewhere else.

從這個角度來看，我認為這項資產對我們公司來說非常具有戰略意義。我們已經做好了準備，就目前德州收購專案的發展方向而言，這筆收購會讓我們忙上一陣子。但這項收購對我們來說是否具有戰略意義，答案是肯定的。之所以說它具有戰略意義，是因為它對我們的客戶有利，並且最終讓我們能夠以更低的價格向客戶收取費用。這就是投資者所有公用事業公司的獨特之處，這些成本節省最終歸客戶所有，而不是流向其他地方。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

Jonathan Reeder, Wells Fargo.

富國銀行的喬納森·里德。

Hey, good afternoon team. How are y'all doing today?

嘿，下午好，各位團隊成員。你們今天過得怎麼樣？

Good afternoon, Jonathan.

下午好，喬納森。

Angie asked a couple of my other questions, but I wanted to say congrats on getting that Connecticut PFAS recovery mechanism in place. Just to understand a lot of the nuances around it. Does the July 1, 2025, effective date mean that any PFAS CapEx after that date can be recovered through the mechanism? And then further what is the expected kind of approval process once the first filing is made in 2026?

安吉問了我其他幾個問題，但我想祝賀康乃狄克州 PFAS 回收機制的建立。只是想了解其中的細微差別。 2025 年 7 月 1 日的生效日期是否意味著該日期之後的任何 PFAS 資本支出都可以透過該機制回收？此外，2026 年首次提交申請後，預計的審批流程是如何的？

Thank you, Jonathan, for that question. And I believe your comment is accurate in terms of, it's a forward recovery. We will be able to file -- I believe it's in July -- or I'm sorry, January of the beginning of the year. and recover that in 2026. And I think it's very similar to the process that we have in our WICA in terms of recovery. So it's a couple, two-, three-month type of a review process for implementing it into rates.

謝謝喬納森的提問。我認為你的評論很準確，因為它是一種前瞻性的恢復。我們可以提交申請——我記得是在7月——或者抱歉，應該是年初的1月——然後在2026年恢復。我認為這與我們在《工資所得稅法》(WICA)中的恢復流程非常相似。所以，這是一個為期兩三個月的審核流程，用於將其納入稅率。

Yeah. And I would just add that the unique part to as opposed to WICA, where they have to be in service and completed. This one takes us all the way to what we have spent. And I think that's a unique addition, it helps further kind of reduce rate shock for customers. And there's some really solid positives that we're going to be able to bring to our customers by being able to put that investment in over time as opposed to big lumps they would otherwise see.

是的。我想補充一點，與WICA（WICA）不同的是，它的獨特之處在於，WICA必須投入使用並完成。這項服務會直接計算我們的支出。我認為這是一項獨特的附加功能，有助於進一步降低客戶的利率衝擊。而且，我們能夠分階段投入這筆投資，而不是一次性投入一大筆，這將為客戶帶來一些實際的正面影響。

Yeah. And just to add to that, Jonathan, it's more like a forward look recovery on spend versus in service that was [pull] Andrew described. And that was a comment that was made in my prepared remarks, and that's what that was intended to convey.

是的。喬納森，我還要補充一點，這更像是支出方面的前瞻性復甦，而不是像安德魯所說的那樣，服務方面的復甦。這是我在準備好的發言稿中提出的，也是我想要表達的意思。

Yeah. No, that is a good little wrinkle to it that it's just on the dollar spent. What about the Texas future hybrid test year law? Does it require the PUCT to adopt the future hybrid test year? Or could that still be a point of contention during the rate case process by either the commission itself or interveners?

是的。不，這只是一個小小的瑕疵，因為它只涉及花費的金額。那麼德州未來混合動力測試年的法律呢？它是否要求 PUCT 採用未來混合動力測試年份？或者，這在費率案件審理過程中，委員會本身或介入者是否仍會成為爭論點？

Well, as you know, Jonathan, any time you have a historic future or hybrid, there's always contention in what you file potentially. But the process kicks off in terms of the approval of the bill, but then there's a rule-making process that will go through. So the specifics of the procedures will be a process that we go through with the PUCT and that will start in September.

喬納森，你知道，無論涉及歷史性未來法案還是混合法案，提交的內容都可能有爭議。但流程從法案批准開始，之後還要經過一個規則制定過程。因此，具體程序將由我們與公共工程委員會（PUCT）共同商定，該程序將於9月啟動。

Okay. And that will -- will that figure out whether it's future or hybrid test year? You're saying like whether it's even like a requirement that the commission approved that future test year.

好的。那麼，這能確定是未來測試年還是混合測試年嗎？您說的是，這是否需要委員會批准未來的測試年？

The procedures will lay out the process for a hybrid or a future. I mean we've already got established procedures for historic, but it's up to the applicant to choose the path forward to filing. So I believe it would be up to the applicant to choose the type of filing that you want to make and the law would allow it pursuant to the rules and procedures through the rule making through the commission.

這些程序將明確混合型或未來型的流程。我的意思是，我們已經制定了歷史性保護的程序，但未來的申報路徑則由申請人自行選擇。因此，我認為申請人可以自行選擇申報類型，法律將允許其根據委員會制定的規則和程序進行申報。

Okay, got it. Thank you. Alright, appreciate the update and yeah, congrats on a good Q2 and a very busy Q2.

好的，明白了。謝謝。好的，感謝您的更新。是的，恭喜您第二季取得了良好的業績，也恭喜您第二季非常忙碌。

Thank you, Jonathan.

謝謝你，喬納森。

That concludes today's question and answer session. I'd like to turn the call back to Andrew Walters for closing remarks.

今天的問答環節到此結束。我想請安德魯沃特斯作最後發言。

Thank you again for joining us today. H2O America proudly leverages our national platform to support our distinct local operations, all united by a shared mission, delivering reliable service and high-quality water to 1.6 million people across four states.

再次感謝您今天的到來。 H2O America 很榮幸能夠利用我們的全國平台，支持我們各具特色的本地運營，所有這些運營都團結在一個共同的使命之下，即為四個州的 160 萬居民提供可靠的服務和高品質的水。

At the same time, we continue executing our growth strategy and delivering shareholder value, including our unwavering commitment to the dividend, which we have paid for more than 80 consecutive years. Our success is built on a culture of service and partnership. We value our customers, communities and the environment and capital providers, and I couldn't be prouder of our team whose dedication makes it all possible. Ann, Bruce and I are always available for follow-up. We appreciate your interest in H2O America.

同時，我們持續執行成長策略，創造股東價值，包括我們堅定不移地致力於派發股息，至今已連續派發超過80年。我們的成功建立在服務和合作的文化上。我們重視客戶、社區、環境以及資本提供者，我為我們的團隊感到無比自豪，而正是他們的奉獻精神成就了這一切。 Ann、Bruce 和我隨時準備與您聯繫。感謝您對 H2O America 的關注。

Thank you, operator.

謝謝您，接線生。

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。您可以掛斷電話了。