H2O America (HTO) 2026 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the H2O America 2026 Q1 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

各位好，感謝您耐心等候。歡迎參加 H2O America 2026 年第一季財務業績電話會議。(接線員指示) 請注意，今天的會議將被錄音。

I would now like to hand the conference over to your first speaker, Jonathan Reeder. Please go ahead.

現在我想把會議交給第一位講者 Jonathan Reeder。請開始。

Thank you, Siobhan. Welcome to the first quarter of 2026 financial results conference call for H2O America. My name is Jonathan Reeder, and I am the Senior Director of Treasury and Investor Relations for H2O America.

謝謝你，Siobhan。歡迎參加 H2O America 2026 年第一季財務業績電話會議。我叫 Jonathan Reeder，擔任 H2O America 財務部與投資人關係資深總監。

Presenting today will be Andrew Walters, Chair of the Board and Chief Executive Officer; Ann Kelly, Chief Financial Officer and Treasurer; and Bruce Hauk, President and Chief Operating Officer.

今天出席簡報的有：董事會主席兼執行長 Andrew Walters；財務長兼司庫 Ann Kelly；以及總裁兼營運長 Bruce Hauk。

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 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.

如欲同步觀看，我們的發言簡報投影片已上傳至公司網站 h2o-america.com。在開始之前，我想提醒各位，本簡報及我們網站上發布的相關資料可能包含前瞻性陳述。

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 Exchange Commission, copies of which may be obtained on our website.

許多因素可能導致公司實際結果與表現與前瞻性陳述所明示或暗示者出現重大差異。關於可能導致實際結果與本簡報陳述不同的部分因素說明，請參閱我們的財務業績新聞稿，以及近期向美國證券交易委員會（SEC）提交的 10-K、10-Q 與 8-K 表格；其副本可於我們網站取得。

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 July 29, 2026. You can access the press release and the webcast at H2O America's website.

所有前瞻性陳述均以今日為準，H2O America 不承擔更新或修訂該等陳述之任何義務。在簡報結束時，您將有機會提問。本次網路直播將被錄製，直播存檔將提供至 2026 年 7 月 29 日。您可於 H2O America 網站取得新聞稿與網路直播連結。

In addition, some of the information discussed today includes the non-GAAP financial measures of adjusted net income and adjusted diluted earnings per share, which 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 as an alternative with respect to 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.

此外，今天討論的部分資訊包含非 GAAP 財務衡量指標：調整後淨利與調整後稀釋每股盈餘；其計算未依照美國一般公認會計原則（GAAP）。這些非 GAAP 財務衡量指標應視為對 GAAP 基礎財務資訊的補充，而非取代 GAAP 財務衡量指標。上述非 GAAP 財務衡量指標與最直接可比之 GAAP 財務衡量指標的調節表，已列示於本簡報附錄的表格中。

I will now turn the call over to Andrew.

現在我把電話交給 Andrew。

Welcome, everyone, and thank you for joining us today. We are pleased to provide you with an update on our strong first quarter 2026 results, during which we earn $0.49 per share on a GAAP diluted basis and $0.50 per share on an adjusted diluted basis. Our first quarter 2026 results were consistent with our internal expectations and supportive of our standalone 2026 EPS guidance of $3.08 per share to $3.18.

各位好，感謝今天加入我們。我們很高興向各位更新 2026 年第一季強勁的業績：按 GAAP 稀釋基礎計算每股盈餘為 0.49 美元，按調整後稀釋基礎計算每股盈餘為 0.50 美元。我們 2026 年第一季的結果符合內部預期，並支持我們在獨立口徑下對 2026 年每股盈餘（EPS）指引為每股 3.08 至 3.18 美元。

Before I ask Ann to discuss the quarterly results in more detail, I want to update everyone on the very successful equity raise that we executed in early March. Following our year-end 2025 update and taking advantage of what we viewed as a receptive equity market, we decided to take the Quadvest acquisition-related equity risk off the table by coming to the market with a $550 million equity offering to fund not only the transaction, but also the $100 million to $125 million of equity needed for our 2026 standalone capital budget.

在我請 Ann 更詳細說明季度業績之前，我想先向各位更新我們在 3 月初完成、非常成功的股權募資。在我們 2025 年底更新之後，並把握我們認為相對有利的股權市場環境，我們決定透過市場發行 5.5 億美元的股權，將與 Quadvest 收購相關的股權風險排除在外；該募資不僅用於交易資金需求，也用於我們 2026 年獨立資本預算所需的 1 億至 1.25 億美元股權資金。

Our equity offering received an overwhelmingly positive response from investors. As it was more than five times oversubscribed and priced at a tight 2.6% discount. Due to the overwhelming demand and our desire to accommodate some very high-quality, long-term-oriented investors into our shareholder base, we upsized the issuance to $700 million, including the green sheet.

我們的股權發行獲得投資人極為正面的回應。本次認購超額逾五倍，且定價折價幅度僅 2.6%。由於需求非常強勁，且我們希望讓一些高品質、長期導向的投資人納入股東結構，我們將發行規模上調至 7 億美元（包含綠鞋）。

The upsizing also served to address our forecasted equity needs through 2027. I believe the successful equity offering is a direct reflection of the hard work of all my partners here at H2O America and their dedication to providing our customers with high-quality, reliable service while executing on the financial goals that we have communicated to investors.

此次上調規模也有助於滿足我們預估至 2027 年的股權需求。我相信，這次成功的股權發行直接反映了 H2O America 團隊所有夥伴的辛勤努力，以及他們在為客戶提供高品質、可靠服務的同時，致力於達成我們向投資人所溝通的財務目標。

At the same time, we recognize that our work is far from complete. We remain steadfast in our commitment to deliver on the 2026 to 2030 plan that we rolled out at the end of February, including our increased long-term EPS CADR target of 16%.

同時，我們也認知到工作仍遠未完成。我們將堅定履行在 2 月底發布的 2026 至 2030 年計畫，包括將長期 EPS 複合年成長率（CADR）目標提高至 16%。

The core element of the plan is our tried-and-true strategy of growing the business and creating shareholder value by making the much-needed water infrastructure investments across the national footprint of our systems while constructively engaging our key local stakeholders in a consensus-building process to provide timely regulatory recovery while maintaining customer affordability.

該計畫的核心要素，是我們一貫且行之有效的策略：在我們系統遍布全國的版圖中進行迫切需要的供水基礎設施投資，以推動業務成長並創造股東價值；同時以建設性方式與關鍵在地利害關係人互動，透過共識建立流程，爭取及時的監管成本回收，並維持客戶可負擔性。

As a reminder, our plan does not include any M&A opportunities beyond our two pending Texas acquisitions. On the regulatory front, our teams have been busy working to secure the necessary approvals to execute on our long-term plan. This includes leveraging infrastructure investment mechanisms, recoveries in Connecticut, Maine, Texas, as well as making a PFAS remediation project recovery filing in Connecticut as well as California.

提醒各位，我們的計畫不包含除兩項尚在進行中的德州收購案之外的任何併購機會。在監管方面，我們的團隊一直忙於取得執行長期計畫所需的核准。這包括運用基礎設施投資機制、在康乃狄克州、緬因州與德州的回收機制，以及在康乃狄克州與加州提出 PFAS 整治專案的成本回收申請。

In addition, a great deal of thought and effort has gone into preparing our general rate case filings in Connecticut in Maine. And of course, there was a filing of the Quadvest LP sales transfer merger application earlier in the year, and our focus continues to be on closing the transformative acquisition later this year and delivering on the anticipated accretion beginning in 2028.

此外，我們也投入大量心力準備在康乃狄克州與緬因州的一般費率案件（general rate case）申報。當然，我們也在今年稍早提交了 Quadvest LP 銷售轉讓合併申請案；我們的重點仍是於今年稍晚完成這項具轉型意義的收購，並自 2028 年起實現預期的增益（accretion）。

Bruce will provide more detailed updates on Quadvest's transaction as well as some of our key regulatory moments later in the call. But now I will turn it over to Ann to provide details on our first quarter 2026 results and the key elements of our financial plan. Ann.

稍後在電話會議中，Bruce 將就 Quadvest 交易以及我們若干關鍵監管進展提供更詳細的更新。現在我把時間交給 Ann，請她說明 2026 年第一季業績以及我們財務計畫的關鍵要素。Ann。

Thank you, Andrew. Yesterday, after the market closed, we released our first quarter 2026 operating results. As Andrew mentioned, we were pleased to report first quarter 2026 diluted EPS of $0.49 and adjusted diluted EPS of $0.50. The results were consistent with our internal expectations and supportive of the financial guidance that we provided on our year-end 2025 update.

謝謝你，Andrew。昨天收盤後，我們發布了 2026 年第一季營運結果。如 Andrew 所提，我們很高興報告 2026 年第一季稀釋 EPS 為 0.49 美元，調整後稀釋 EPS 為 0.50 美元。該結果符合我們的內部預期，並支持我們在 2025 年底更新時所提供的財務指引。

Although we grew the underlying net income by roughly 15%, both our reported and adjusted diluted earnings per share were unchanged when compared to the first quarter of 2025 results due to the higher share count as a result of leveraging our ATM program in 2025 and our equity issuance in early March.

儘管我們的基礎淨利約成長 15%，但由於 2025 年運用 ATM 計畫以及 3 月初股權發行導致流通股數增加，與 2025 年第一季相比，我們的報告稀釋每股盈餘與調整後稀釋每股盈餘皆維持不變。

Moving to slide 8, I'd like to briefly discuss all the key drivers resulting in the comparable year-over-year earnings per share. We realized $0.41 per share increase due to higher revenues. Roughly half of this, or $0.20, was driven by rate relief received from general rate cases and infrastructure surcharges, primarily in California, Connecticut, and Texas. There was also $0.11 of higher revenues for pass-through water supply costs that are offset in our water production expenses and do not impact our net income.

接著看第 8 張投影片，我想簡要說明導致可比年度年增每股盈餘的所有關鍵驅動因素。由於營收較高，我們每股增加了 0.41 美元。其中約一半（即 0.20 美元）來自一般費率案件與基礎設施附加費所帶來的費率調整（rate relief），主要發生在加州、康乃狄克州與德州。此外，還有 0.11 美元的營收增加，係因可轉嫁的供水成本（pass-through water supply costs）提高；該部分會在我們的製水費用中相互抵銷，且不影響淨利。

In addition, higher usage largely due to a hot, dry March across our California service territory added $0.05. The revenue increase was partially offset by higher water production expenses of $0.20, attributable to $0.10 of higher water supply costs due to increases in average per unit costs for purchased water and groundwater extraction, $0.09 from increases in water production balancing and memorandum accounts primarily related to the full cost balancing account in California, and $0.08 from higher customer usage.

另外，由於我們在加州服務區域 3 月天氣炎熱乾燥，使用量上升亦貢獻了 0.05 美元。營收增加部分被較高的製水費用 0.20 美元所抵銷，主要歸因於：購水與地下水抽取的平均單位成本上升導致供水成本增加 0.10 美元；與加州全成本平衡帳戶（full cost balancing account）相關、以製水平衡與備忘錄帳戶（balancing and memorandum accounts）增加為主的 0.09 美元；以及客戶用水量增加帶來的 0.08 美元。

These increases are partially offset by $0.07 decrease in water production expense as a result of the increased availability of surface water. In addition, other operating expenses increased $0.18. The biggest item here was an $0.11 increase in depreciation and amortization for new utility plant placed in service, as well as an increase in maintenance, employee-related costs, and higher non-labor, administrative, and general expenses. The remaining drivers relate to $0.07 of dilution, which I alluded to earlier from the higher share count, partially offset by $0.04 of net other benefits.

上述增加部分被製水費用減少 0.07 美元所抵銷，原因是地表水供應可得性提高。此外，其他營運費用增加 0.18 美元。其中最大項目為折舊與攤銷增加 0.11 美元，係因新公用事業資產投入使用；同時維護費、員工相關成本，以及非人力、行政與一般費用亦有所增加。其餘驅動因素包括我先前提到因股數增加而造成的稀釋 0.07 美元，並部分被其他淨利益 0.04 美元所抵銷。

As for taxes during the quarter, our effective income tax in Q1 2026 was approximately 15% versus 17% in Q1 of 2025. The lower effective tax rate was primarily due to higher flow-through tax benefits.

就本季稅負而言，我們 2026 年第一季的有效所得稅率約為 15%，相較於 2025 年第一季的 17%。有效稅率較低主要是因為流入式（flow-through）稅務利益增加。

Shifting from the first quarter results to our full-year 2026 and beyond expectations. The figures on the next few slides should look familiar as we are reiterating all aspects of the guidance that we rolled out near the end of February with our year-end 2025 update.

接著從第一季結果轉向我們對 2026 全年及其後的展望。接下來幾張投影片上的數字應該很熟悉，因為我們重申 2 月底在 2025 年年終更新時所發布之指引的所有面向。

During the first quarter of 2026, we invested $85 million into infrastructure improvements. This represents 18% of our full-year 2026 CapEx budget of $483 million, which does not include the impacts of CapEx. While the 18% might seem low, it reflects the seasonality of our CapEx cycle, particularly during the winter months for our Connecticut and Maine operations. We are on track to deliver the full-year 2026 CapEx budget, as well as our plan to invest $2.7 billion of capital over the 2026 to 2030 period.

在 2026 年第一季，我們投入 8,500 萬美元進行基礎設施改善。這相當於我們 2026 全年資本支出（CapEx）預算 4.83 億美元的 18%，該預算不包含資本支出（CapEx）的影響。雖然 18% 看起來偏低，但這反映了我們資本支出週期的季節性，特別是康乃狄克州與緬因州營運在冬季月份的情況。我們正按計畫推進，將完成 2026 全年資本支出預算，並落實 2026 至 2030 年期間投入 27 億美元資本的計畫。

Importantly, roughly 80% of the $2.7 billion capital plan qualifies for timely regulatory recovery, either through California's three-year forward-looking general rate case framework or through various infrastructure recovery mechanisms in Connecticut, Maine, and Texas. Our five-year capital investment plan, combined with our pending acquisition of Quadvest, is expected to translate into a 13% rate-based CAGR off our year-end 2025 estimated rate base of $2.8 billion.

重要的是，27 億美元資本計畫中約 80% 符合可及時進行監管回收（timely regulatory recovery）的條件，方式包括加州三年期前瞻式一般費率案件（general rate case）架構，或康乃狄克州、緬因州與德州的各項基礎設施回收機制。我們的五年資本投資計畫，加上對 Quadvest 的待完成收購，預期將使以 2025 年底估計之 28 億美元費率基礎（rate base）為起點的費率基礎年複合成長率（CAGR）達到 13%。

As a reminder, these amounts represent our estimated rate base at year-end and not necessarily what was or will be recognized in rates by our state regulators in those particular years.

提醒一下，這些金額代表我們在各年度年末的估計費率基礎，並不一定等同於各州監管機關在那些年度於費率中已認列或將認列的金額。

We are laser-focused on not only delivering the rate-based growth but translating it into attractive earnings growth by minimizing regulatory lag and continually seeking ways to operate more efficiently in order to keep rates affordable while providing our customers with best-in-class service.

我們高度聚焦的不僅是實現費率基礎成長，也要透過降低監管時滯（regulatory lag）並持續尋求更高效率的營運方式，把成長轉化為具吸引力的獲利成長，以在提供同級最佳服務的同時維持費率可負擔。

The details on slide 10 are consistent with what we have provided on our year-end update. I won't go through them all, but wanted to reiterate our expectations to deliver a non-linear EPS CAGR over the 2026 to 2030 period at or above the top end of our 6% to 8% long-term organic EPS growth rate target, using our 2025 adjusted EPS of $2.99 as a base year.

第 10 張投影片的細節與我們在年終更新中提供的內容一致。我不會逐一說明，但想重申我們的預期：以 2025 年調整後每股盈餘 2.99 美元作為基準年度，在 2026 至 2030 年期間實現非線性的每股盈餘年複合成長率（EPS CAGR），且達到或高於我們 6% 至 8% 長期有機 EPS 成長目標區間的上緣。

The ability to deliver growth at or above our 6% to 8% long-term sustainable rate is enabled by, one, the line of sight that we have on our five-year capital expenditure plan; two, the anticipated accretion from pending Quadvest acquisition beginning in 2028 once the new grades from the consolidated Texas general rate case that we plan to follow and file in early 2027 go into effect; and three, our expectation to continue to work constructively with key stakeholders in each of our states to achieve fair and timely revenue regulatory outcomes. We remain excited about our five-year plan and long-term prospects and believe our team is fully capable of delivering on it.

我們能夠達成高於或等同 6% 至 8% 長期可持續成長率，主要來自三項因素：第一，我們對五年資本支出計畫具有清晰可見度；第二，待完成的 Quadvest 收購預期自 2028 年起帶來增益（accretion），屆時我們計畫於 2027 年初跟進並提交的德州合併一般費率案件（consolidated Texas general rate case）之新費率（new rates）將生效；第三，我們預期將持續與各州關鍵利害關係人建設性合作，以取得公平且及時的監管營收結果。我們對五年計畫與長期前景仍感到振奮，並相信團隊完全有能力交付成果。

Turning to financing and credit, on slide 11. As Andrew discussed, we executed on the equity needed to not only fund our pending Texas acquisitions, but also our 2026 and 2027 base capital expenditures. We expect to stay out of the equity markets, including issuances through our ATM program, through at least year-end 2027, as we have the ability to draw down on the $400 million Board agreement component of the March issuance over this period to fund our capital needs.

接著談融資與信用狀況，請看第 11 張投影片。如 Andrew 所述，我們已完成所需的股權籌資，不僅用於資助德州待完成的收購案，也用於 2026 與 2027 年的基礎資本支出。我們預期至少到 2027 年底前將不再進入股權市場（包括透過我們的 ATM 計畫發行），因為在此期間我們可動用 3 月發行中董事會協議（Board agreement）部分的 4 億美元額度，以支應資本需求。

And we still expect to raise $100 million to $200 million of debt across the parent and Texas operating company levels to fund the Quadvest transaction, although we have more flexibility now regarding the timing given the upsize equity issuance.

我們仍預期將在母公司與德州營運公司層級合計舉借 1 億至 2 億美元的債務，以資助 Quadvest 交易；不過，由於股權發行規模上調，我們在時點安排上現在更具彈性。

Our liquidity is strong to fund our daily operations. While we work towards closing projects later this year, we utilize the cash received from the equity issuance to pay down our bank lines of credit, meaning the full $370 million is available, and we have invested the remainder of the proceeds into cash equivalents.

我們的流動性充足，可支應日常營運。在我們推進今年稍晚的專案交割之際，我們運用股權發行所收到的現金償還銀行信用額度，意味著完整的 3.7 億美元皆可動用，且我們已將其餘募集款項投資於約當現金。

In addition, our A-minus credit rating, which S&P affirmed earlier this month, affords us access to the capital needed to fund our longer-term investments. We expect our FFO-to-debt ratio to be in the 11% to 12% range through 2027, which is above S&P's 11% downgrade threshold. In 2028, we expect the ratio to be above 12%, and we will continue to delever throughout the rest of the plan through increased cash flows and the anticipated paydown of our 2029 holdco maturity.

此外，S&P 本月稍早確認的 A- 信用評等，使我們得以取得所需資本以資助較長期的投資。我們預期 2027 年前 FFO 對債務比率（FFO-to-debt ratio）將落在 11% 至 12% 區間，高於 S&P 的 11% 降評門檻。在 2028 年，我們預期該比率將高於 12%，並將在計畫其餘期間透過現金流增加以及預期償還 2029 年控股公司（holdco）到期債務，持續去槓桿。

And with that, I will turn the call over to Bruce to provide some regulatory updates, including on our pending acquisition of Quadvest.

接下來，我將把電話會議交給 Bruce，請他提供一些監管面的最新進展，包括我們對 Quadvest 的待完成收購案。

Thank you, Anne. Our regulatory teams have been busy to start the year. While the California team is gearing up for the 2028 to 2030 GRC filing that will be made in January of 2027, earlier this month, we filed a request for the CPUC outside of the GRC process for approval and recovery of our planned Williams Station PFAS remediation project. The estimated capital cost of the ion exchange project is $176 million.

謝謝你，Anne。我們的監管團隊在年初以來一直相當忙碌。加州團隊正為 2028 至 2030 年的一般費率案件（GRC）申報做準備，該申報將於 2027 年 1 月提出；同時在本月稍早，我們在 GRC 流程之外向加州公用事業委員會（CPUC）提出申請，請求核准並回收我們規劃中的 Williams Station PFAS 整治專案。該離子交換（ion exchange）專案的估計資本成本為 1.76 億美元。

If approved, SJWC would adjust rates via annual rate-based filing offsets. This is similar to the recovery approach we took for our current AMI project that is expected to be completed around the end of this year.

若獲核准，SJWC 將透過年度以費率為基礎的申報抵減項來調整費率。這與我們針對目前 AMI 專案所採取的成本回收方式類似，該專案預計將於今年年底前後完成。

In Connecticut, we filed and received approval to implement annual revenue increases totaling a combined roughly $3.3 million under the WICA and WQTA mechanisms that went into effect on April 1, 2026. Also on April 1, we implemented our 2025 Water Revenue Adjustment Mechanism surcharge to reconcile revenues as authorized in CWC's most recent rate case.

在康乃狄克州，我們已提出申報並獲核准，透過 WICA 與 WQTA 機制實施年度營收調增，合計約 330 萬美元，並已於 2026 年 4 月 1 日生效。同樣在 4 月 1 日，我們也依據 CWC 最近一次費率案所授權，實施 2025 年水務營收調整機制（WRAM）附加費，以調節（對帳）營收。

Notably, as a result of CWC achieving the PURA prescribed performance metrics in our last GRC, the WRA surcharge provides recovery of certain amounts of compensation expenses. And then, as most of you are aware, CWC filed a letter of intent on March 13 to file a GRC application within the next 60 days.

值得注意的是，由於 CWC 在我們上一個一般費率審查（GRC）中達成 PURA 規定的績效指標，WRA 附加費可回收特定金額的薪酬費用。接著，如各位多數人所知，CWC 已於 3 月 13 日提交意向函，表示將在未來 60 天內提出 GRC 申請。

The actual rate case will be filed in the weeks ahead. But per the letter, CWC plans to request an approximately $26 million increase in annual revenues for new rates to become effective early 2027. As CWC seeks recovery for the approximately $129 million of infrastructure investments made between its last rate case and the end of 2026, as that investment is not reflected in current rates.

實際的費率案將在接下來幾週內提出。但依該意向函所述，CWC 計畫申請年度營收約增加 2,600 萬美元，使新費率於 2027 年初生效。此舉係因 CWC 尋求回收自上次費率案至 2026 年底期間約 1.29 億美元的基礎設施投資，而該等投資目前尚未反映於現行費率中。

Moving on to May, on slide 14, after getting approval of the stipulation of the rate unification proceeding in January, MWC filed its first consolidated WISC application in late February, requesting a $0.9 million increase. And then earlier this month, MWC filed its first consolidated GRC filing, requesting a $9.5 million increase in annual revenues to recover the approximately $36 million of infrastructure investments that have been or are expected to be made in the state by the end of 2026 and are not currently in rates. We expect the new rates to go into effect by the second quarter of 2027.

接著談到 5 月，在第 14 張投影片上，MWC 於 1 月取得費率統一程序和解協議（stipulation）核准後，於 2 月下旬提出其首份合併的 WISC 申請，要求增加 90 萬美元。而在本月稍早，MWC 提出其首份合併的 GRC 申報，要求年度營收增加 950 萬美元，以回收截至 2026 年底在該州已投入或預計投入、且目前尚未納入費率的約 3,600 萬美元基礎設施投資。我們預期新費率將於 2027 年第二季生效。

Lastly, I'd like to shift to Texas regulatory activity. We continue to work through the $5.1 million SIC mechanism application we filed in October and expect a decision from the PUCT in the second half of 2026. We also continue to move the ball forward through the PUCT's approval process for the two pending acquisitions.

最後，我想轉到德州的監管動態。我們持續推進去年 10 月提出的 510 萬美元 SIC 機制申請，並預期 PUCT 將於 2026 年下半年作出決定。我們也持續在 PUCT 的核准流程中推動兩項待審收購案向前進展。

In fact, I'm pleased to report that just last week we filed a Sales Transfer Merger or STM application for the Cibolo Valley Wastewater Plant and Related Collection System, which keeps us on track for an anticipated close of this transaction during the fourth quarter of 2026.

事實上，我很高興報告，就在上週我們已就 Cibolo Valley 污水處理廠及相關集水系統提出銷售移轉合併（Sales Transfer Merger，STM）申請，使我們仍可按計畫於 2026 年第四季完成該交易交割。

And then in early 2027, after the close of the Quadvest and Cibolo Valley acquisitions, as well as the completion of our significant investments to bring an additional 6,000 acre feet of water annually into our existing system, Texas Water continues to expect to file a combined company general rate case with new rates effective in early 2028, so that these and other additions to Texas Water's rate base can be recognized in rates.

接著在 2027 年初，在 Quadvest 與 Cibolo Valley 收購案完成交割後，以及我們完成重大投資、每年為既有系統新增 6,000 英畝英尺供水量之後，Texas Water 仍預期將提出合併公司的一般費率案，使新費率於 2028 年初生效，以便將上述及其他對 Texas Water 費率基礎（rate base）的新增項目反映於費率中。

Beginning in 2024, the magnitude of needed infrastructure investments to improve water supply and reliability at our Texas utility increased considerably. Over the '24 through '26 period, we expect to have invested more than $300 million into the infrastructure, and thus filing a GRC to get those investments recognized and rates is critical.

自 2024 年起，為提升我們德州公用事業的供水與可靠性所需的基礎設施投資規模大幅增加。在 2024 至 2026 年期間，我們預計對基礎設施投資將超過 3 億美元，因此提出 GRC 以使這些投資獲得認列並反映於費率中至關重要。

Now, before I move to an update on Quadvest, I did want to point out that, despite us making all of these significant and much-needed capital investments in recent years across our service territories, and seeking recognition of these investments from our regulators, our average bills are still below 1% of the median household income in each of our service territories.

在我更新 Quadvest 之前，我想指出，儘管近年來我們在各服務區域進行了這些重大且必要的資本投資，並向監管機關尋求對這些投資的認列，我們的平均帳單仍低於各服務區域家庭收入中位數的 1%。

This is well below the EPA's recent study that reports water and wastewater bills are affordable if, when combined, they are less than 4.5% of median household income. Assuming a 50/50 split between water and wastewater, it would suggest below 2.25% for each is affordable. We believe this is a reasonable guideline depicting affordability and provides bill headroom for the recovery of our planned infrastructure investments going forward.

這遠低於 EPA 最近研究所指出的標準：若水務與污水處理帳單合計低於家庭收入中位數的 4.5%，即屬可負擔。若假設水務與污水處理各占 50/50，則意味著各自低於 2.25% 即屬可負擔。我們認為這是一項合理的可負擔性指引，並為未來回收我們規劃的基礎設施投資提供帳單上調空間。

Now for an update on Quadvest. The STM application for the regulated portion of the Quadvest transaction was filed in January, and earlier this month, it was deemed administratively complete. As outlined on slide 15, the STM application requests approval of TWC's acquisition of the Quadvest LP assets and certification of the value of the rate-making rate base, as determined in accordance with the Texas Fair Market Value statute at TWC's $483.6 million purchase price.

接著更新 Quadvest 的進度。Quadvest 交易中受監管部分的 STM 申請已於 1 月提出，並於本月稍早被認定在行政上資料齊備。如第 15 張投影片所示，該 STM 申請請求核准 TWC 收購 Quadvest LP 資產，並依德州公平市價法規、以 TWC 4.836 億美元的收購價格所決定之費率制定用費率基礎（rate-making rate base）價值進行認證。

TWC is in the process of issuing the required public notices, and once proof of those notices are filed with the Commission, the PUCT's 120-day approval process will commence. That said, the 120-day timeframe may be extended if staff or the Office of Public Utility Counsel requests a hearing and/or timeline extension. As such, we are updating our expected closing of the Quadvest acquisition from mid-2026 to certainly during the second-half of 2026.

TWC 正在發布所需的公開公告；一旦公告證明文件提交至委員會，PUCT 的 120 天核准程序即將啟動。不過，若工作人員或公共事業法律顧問辦公室（Office of Public Utility Counsel）要求舉行聽證及／或延長時程，120 天期限可能會延長。因此，我們將 Quadvest 收購案預期交割時間由 2026 年年中更新為確定在 2026 年下半年完成。

Meanwhile, we continue to see robust connection growth in the Houston-based Quadvest water and wastewater system, which now has more than 57,200 active connections as of March 31, 2026. This represents an impressive 5% increase in the first three months of 2026 after the active connection count increased 16% during 2025.

同時，我們持續看到以休士頓為基地的 Quadvest 水務與污水系統連接戶數強勁成長，截至 2026 年 3 月 31 日，活躍連接戶已超過 57,200 戶。這代表在 2026 年前三個月活躍連接戶數成長 5%，而 2025 年全年活躍連接戶數曾成長 16%。

And as Quadvest under contract and pending development pipeline converts into active connections, the pool of future connections continues to be replenished, extending the longevity of the growth profile. Specifically, during the first quarter of 2026, despite Quadvest converting 2,800 connections from the pipeline to active, the pipeline was increased by 5,000 connections.

隨著 Quadvest 合約中及待開發的管線（pipeline）逐步轉換為活躍連接戶，未來連接戶的來源池也持續補充，延長其成長曲線的續航力。具體而言，在 2026 年第一季，儘管 Quadvest 將管線中的 2,800 戶轉為活躍連接戶，管線規模仍增加了 5,000 戶。

Of course, future connection growth will vary based on the number of conditions, so this is no guarantee of the future pace of growth. However, these results are in line with our range of expectations and we believe solid growth will continue in the greater Houston area, which is the second fastest growing metropolitan area in the United States.

當然，未來連接戶成長將因多項條件而有所不同，因此這並不保證未來的成長速度。然而，這些結果符合我們的預期區間；我們相信大休士頓地區將持續維持穩健成長，該地區是美國成長速度第二快的大都會區。

The addition of Quadvest's active customers plus the continued conversion of its contracted development backlog is the primary contributor that is expected to drive Texas from 8% of our consolidated customer base today to 26% by 2029. Between Quadvest and Cibolo Valley, we are very excited about our long-term growth potential in Texas.

Quadvest 活躍客戶的加入，加上其已簽約開發存量持續轉換，預期將成為主要推力，使德州在我們合併客戶基礎中的占比由目前的 8% 提升至 2029 年的 26%。在 Quadvest 與 Cibolo Valley 兩案之間，我們對德州的長期成長潛力感到非常振奮。

That concludes my regulatory updates, and I will now turn the call back over to Andrew.

以上為我的監管更新，接下來我將把電話會議交回給 Andrew。

Thank you, Bruce. Before opening the call up to Q&A, I wanted to welcome Commissioner Patrick Rhode, who Governor Abbott appointed a few weeks ago to fill the remaining vacancy on the Public Utility Commission of Texas. I'll take a minute to expand a bit on Bruce's remarks with respect to customer affordability.

謝謝你，Bruce。在開放問答之前，我想歡迎 Patrick Rhode 委員；他在幾週前由 Abbott 州長任命，以補足德州公共事業委員會（Public Utility Commission of Texas）的剩餘空缺席位。我將花一點時間，就 Bruce 關於客戶可負擔性的評論再補充說明。

We know the concern remains top of mind with customers, regulators, investors alike. Especially as the recent uptick in energy prices due to the conflict in the Middle East has caused inflationary expectations to rise. Affordability is, and frankly, always has been a top priority of ours, and we will continue to work constructively with our state regulatory partners as we look to balance affordability with the extensive investment required to replace aging infrastructure and treat emerging contaminants, all while providing safe, high-quality water and reliable service.

我們知道，這項疑慮仍然是客戶、監管機關與投資人共同最關切的議題。尤其是近期因中東衝突導致能源價格上揚，使通膨預期升高。可負擔性是我們的首要任務，而且坦白說一直都是；在我們致力於在可負擔性與汰換老舊基礎設施、處理新興污染物所需的大量投資之間取得平衡的同時，我們也將持續與各州監管夥伴以建設性的方式合作，並提供安全、高品質的用水與可靠的服務。

As Bruce mentioned, as of year-end 2025, average H2O bills were less than 1% of median household income across all four of our states, which is well below the EPA's suggested 2.25% affordability threshold. In addition, we offer affordability tariffs in California, Connecticut, and Maine, with hopes to introduce this benefit to our Texas customer base as part of our future rate proceedings.

如 Bruce 所提，截至 2025 年底，我們四個州的平均 H2O 水費帳單均低於家庭收入中位數的 1%，遠低於 EPA 建議的 2.25% 可負擔性門檻。此外，我們在加州、康乃狄克州與緬因州提供可負擔性費率方案（tariffs），並希望在未來的費率審議程序中，將此項福利導入我們在德州的客戶群。

In addition, and as always, we will continue to strive to run the business as efficiently as possible as we recognize that every dollar of avoided operating expenses enables the recovery of $7 of capital investments with a neutral impact on customer bills. Any time we can swap operating expenses for capital deployment, we will look to do it as it is a win-win for customers and the company.

另外，一如既往，我們將持續力求以最高效率營運業務，因為我們明白，每節省 1 美元的營運費用，就能在不影響客戶帳單的情況下，支撐回收 7 美元的資本投資。只要我們能以資本支出取代營運費用，我們就會尋求這麼做，因為這對客戶與公司而言是雙贏。

So in closing, I believe our company is off to a good start operationally and financially. We have a busy regulatory agenda ahead of us, but I believe our team is up to the challenge and our company is poised to deliver great things in 2026 and beyond.

總結來說，我認為我們公司在營運與財務面都已取得良好開局。我們接下來有繁忙的監管議程，但我相信團隊有能力迎接挑戰，公司也已蓄勢待發，將在 2026 年及往後交出亮眼成果。

Our dedicated team remains focused on driving shareholder and customer value through disciplined infrastructure investment and executing on our financial goals. Advancing the transformational Quadvest acquisition as well as Cibolo Valley, deepening our strong partnerships with local stakeholders, and our unrelenting pursuit of operational excellence in identifying creative and sustainable solutions to serve generations to come while maintaining a focus on affordability.

我們敬業的團隊仍專注於透過嚴謹的基礎設施投資與落實財務目標，來提升股東與客戶價值。推進具轉型意義的 Quadvest 收購案以及 Cibolo Valley，深化我們與在地利害關係人的強健夥伴關係，並以不懈追求營運卓越的精神，找出具創意且可持續的解決方案，以服務世世代代，同時維持對可負擔性的關注。

With that, I will turn the call back over to the operator for questions.

接下來，我把電話交回給接線員，進入提問環節。

(Operator Instructions)

(接線員指示)

Alex Kania, BTIG.

Alex Kania，BTIG。

Good morning. Thanks for taking my question. I kind of had just two questions. First one was just as you think about the regulatory, the upcoming rate case process, I guess, for I'd say for Quadvest next year, would you -- and and I know, obviously, it's early.

早安。謝謝讓我提問。我大概有兩個問題。第一個是，當你們思考監管面、即將到來的費率案件（rate case）流程時，我想應該是針對明年的 Quadvest；你們是否會——而且我也知道，顯然現在還早。

But just from a high level, how would you obviously, this rate case is going to be important, but how would you just think about maybe some of the affordability statistics that you provided for your other jurisdictions and maybe how they may end up looking relative to what you might expect from Quadvest kind of on a run rate basis?

但從較高層次來看，這個費率案件顯然很重要；你們會如何看待你們在其他轄區所提供的那些可負擔性統計數據，以及相較於你們對 Quadvest 在常態化（run rate）基礎下的預期，最終可能會呈現出怎樣的相對狀況？

Sure, I'll ask Bruce to take that question and thank you very much, Alex and good morning.

好的，我請 Bruce 來回答這個問題；非常感謝你，Alex，早安。

Yeah, thank you, Alex, for the question. As it relates to Quadvest rates, we've not disclosed the potential impact on rates, but we have disclosed that it would be significant. With that in mind, there's been a lot of investment that needs to be made for liability in the system, as you heard in my prepared remarks, and also the FNB transaction itself.

是的，謝謝你，Alex 的提問。就 Quadvest 的費率而言，我們尚未揭露對費率的潛在影響，但我們已表示其影響將會相當顯著。基於此，你也聽到我在事先準備的發言中提到，系統中有大量投資是為了處理系統責任（liability），以及 FNB 交易本身。

With that being said, we are in the process of being engaged with all the stakeholders, customers, and also the regulatory Commission as well. And we have to be creative and thoughtful in our preparations and preparing for that. And that will most likely be most public, if you will, sometime in 2027 when we file.

在此情況下，我們正與所有利害關係人、客戶以及監管委員會進行互動與溝通。我們在準備工作上必須具創意並審慎思考。而這些內容最可能在 2027 年左右、當我們提出申請（file）時，才會更公開地呈現。

But with that being said, as Andrew mentioned in his comments, we are very focused on affordability. And our rate design will take that into consideration. And we are going to be proposing a low-income tariff to address affordability issues in Texas as well but also being mindful of how to most appropriately bring those investments to light and to rates, and how we can do that in conjunction and in partnership with the Commission.

不過如 Andrew 在評論中提到的，我們非常重視可負擔性。我們的費率設計會將此納入考量。我們也將提出一項低收入費率方案（low-income tariff），以因應德州的可負擔性議題；同時也會留意如何以最適當的方式，將這些投資反映到費率中，以及如何與委員會協作、以夥伴關係共同推動。

Great, that's helpful. And then maybe a question for Ann, just as you talked about the balance sheet and the fact that it might be in that 11% to 12% range for the next couple of years, given that cushion from the equity offering.

很好，這很有幫助。接著可能是問 Ann 的問題：你提到資產負債表，以及由於股權發行帶來的緩衝，未來幾年可能會落在 11% 到 12% 的區間。

Just thinking about the thoughts around the comments on just the desire to continue to deleverage, is there kind of a target that we should be thinking of over the very long-term from an FFO-to-debt and maybe just the thinking behind wanting to be pretty sizably above maybe whatever a downgrade threshold might be for your A rating?

就你們提到希望持續去槓桿（deleveraging）的想法來看，是否有一個我們在非常長期應該思考的目標，例如 FFO 對債務（FFO-to-debt）的目標？以及你們為何希望明顯高於可能導致你們 A 級評等被調降的門檻，背後的考量是什麼？

Yeah, thanks, Alex. Yeah, so as we mentioned, we do plan to delever over the five-year plan with the target being to get into the A-flat rating, which is it's comparable to our competitors. Right now, we have a -- I think it's a 15% as quoted debt upgrade threshold. So we would need to be north of that. We expect to be there by the end of the five-year.

好的，謝謝你，Alex。是的，如我們提到的，我們確實計畫在五年計畫期間去槓桿，目標是提升至 A 平級（A-flat）評等，這與同業具可比性。目前我們有一個——我想是 15%——所提到的債務升評門檻。因此我們需要高於該水準。我們預期在五年期末能達到。

And going to the A-flat credit rating gives us flexibility. So we said overall that we're very committed to our A category rating, currently at the A minus. But building back up to an A-flat gives us flexibility if we were to pursue an acquisition or any other possessions in the future to be able to do so while still maintaining the A category rating.

而達到 A 平級信用評等能帶來彈性。因此我們整體而言非常致力於維持 A 類別評等，目前為 A 減（A minus）。但把評等拉回到 A 平級，能讓我們在未來若要進行收購或任何其他布局時，仍可在維持 A 類別評等的同時具備操作彈性。

Davis Sunderland, Baird.

Davis Sunderland，Baird。

Hey, good morning, guys. Andrew, Bruce, and thank you so much. Excited to be joining you guys' analysts community and thank you for taking our questions.

嗨，早安，各位。Andrew、Bruce，謝謝你們。很高興能加入你們的分析師社群，也謝謝你們回答我們的問題。

Maybe two from me. Just starting first on Quadvest. I'm wondering maybe Andrew or Bruce, if you guys could talk just a bit about the final steps needed to close this, any risks you guys see to the timeline, and then whether or not any small deviations, thinking months difference here, would pose any risk to your guys' timing for potentially filing the Texas rate case application next year?

我這邊可能有兩個問題。先從 Quadvest 開始。我想請 Andrew 或 Bruce 談談完成交割所需的最後步驟、你們看到的時間表風險，以及若出現一些小幅偏差——例如相差幾個月——是否會對你們明年可能提交德州費率案件申請的時點造成任何風險？

I'll have Bruce take that question, but thank you, David.

我請 Bruce 來回答這個問題，但謝謝你，David。

Yeah, thank you, David, for the question. And we're super excited about the major hurdle that we most recently covered, which was being deemed administratively sufficient. That specific step allows us to engage in the notice to customers of the acquisition and kicks off a process that allows us to actually get the 120-day procedural schedule set by the Commission.

是的，謝謝你，David 的提問。我們對最近跨過的一個重大門檻感到非常振奮，也就是被認定在行政上資料齊備（administratively sufficient）。這個特定步驟讓我們得以向客戶發出收購通知，並啟動一個流程，使我們能由委員會設定 120 天的程序時程表。

So with that being said, if you think back when we actually announced this acquisition, filed notice for the FMV, and then proceeded with filing over 7,000 pages of the STM filings, sales transfer merger process, to only have had a 60-day examination of that process to get deemed administratively sufficient, that's significant in terms of an achievement.

因此，回想我們當初宣布這項收購、就公平市價（FMV）提交通知，接著在銷售轉讓合併（sales transfer merger）流程中提交超過 7,000 頁的 STM 文件；而該流程僅經過 60 天的審查就被認定在行政上資料齊備，這在成就層面而言是相當重要的。

With that being said, as things proceed, that puts us from where we said in my prepared marks from a mid-2026 close to sometime in the latter half of 2026. That being said, all commissions across this country are inundated with a lot of dockets. Texas is no exception with the amount of investment and growth that's taking place in Texas. So we have to work with the Commission and partnership to proceed and prosecute the STM.

話雖如此，隨著事情推進，這會使我們從我在事先準備的講稿中所提到的「2026 年年中完成」調整到 2026 年下半年某個時間點。同時，全國各地的各個委員會都被大量案件積壓所淹沒。德州也不例外，因為德州正在發生大量投資與成長。因此，我們必須與委員會合作並建立夥伴關係，以推進並推動 STM 的審理與核准。

And so far, we're on track, like I mentioned, for that late 2026, barring no significant exceptions in terms of delays with things that may come up in the due diligence process. But so far, so good. And we are planning to close, as I mentioned, at the latter part of 2026, barring no unforeseen things that may come up by intervening parties or just basically with the Commission staff being enable to get to things as timely as we would like based on their docket and all the actual cases that they're reviewing.

截至目前，正如我提到的，我們仍按計畫朝 2026 年底推進，前提是盡職調查過程中不出現可能導致延宕的重大例外情況。但到目前為止，一切進展順利。而且如我所說，我們計畫在 2026 年下半年完成交割，前提是不會有介入方提出任何不可預見的事項，或僅僅因為委員會工作人員基於其案件排程與正在審查的所有實際案件，無法如我們所希望的那樣及時處理相關事項。

But we're very happy with the process thus far and the total engagement by the Commission and the staff. So we are happy with, I mentioned, crossing that hurdle at this point.

但我們對迄今為止的流程以及委員會與工作人員的全面投入感到非常滿意。因此，我們很高興如我所提到的，在此刻已跨過那道門檻。

I think it's an important point, David, too. It's just to kind of highlight that. If anybody gets that amount of volume of documents to go through, they're not going to kind of scrimp on their review process. It just means they have to work very hard in order to get through it. And, at least from our standpoint, we have nothing but gratitude for the hard work that the staff is putting into this.

David，我也認為這是一個重要的點。只是想稍微強調一下。任何人如果要處理那麼大量的文件，都不可能在審查流程上草率行事。這只意味著他們必須非常努力才能把它們全部看完。而且，至少就我們的立場而言，我們對工作人員投入的辛勤工作只有感激。

That is super helpful. And thank you both for all the detail. Maybe just one other, if I could sneak it in. I know this is a bit of a moving target, if you will, to an extent, but the EPA has been talking a bit more about regulating microplastics and other potentially harmful substances in drinking water. And I think, in fairness, it took maybe 2.5 years to officially move forward on PFAS, so it's still early on.

這非常有幫助。也謝謝你們兩位提供這麼多細節。如果可以的話，我再補問一個。我知道這在某種程度上是一個會變動的目標，但 EPA 最近更多談到要規範飲用水中的微塑膠以及其他可能有害的物質。而且公平地說，PFAS 從討論到正式推進可能花了大約 2.5 年，所以現在仍算早期。

But I guess my question is, have you guys thought about whether or not treating for PFAS would also cover treating some of these other potentially harmful substances, or is this maybe tailwind to increase capital deployments longer-term or just how to think of this in context of your guys' planned capital deployments? And thank you very much.

但我的問題是，你們是否有思考過，針對 PFAS 的處理是否也能涵蓋處理其中一些其他可能有害的物質？或者這是否可能成為一股順風，讓長期資本投入增加？又或者應該如何把這件事放在你們既定資本投入規劃的脈絡中來看？非常感謝。

Thank you, David, for that question and super engaged in the process with the EPA. Working with the process and just to kind of level set, the six constituents that are actually PFAS regulated with MCLs and what have you -- we're very much on track to make the improvements that are needed in Connecticut and California to achieve that compliance, and things are on track there.

謝謝你，David，提出這個問題；我們也非常積極參與與 EPA 的相關流程。就流程而言，先做個基準說明：目前實際受到 PFAS 以 MCL 等標準規範的六項成分——我們非常按計畫推進，將在康乃狄克州與加州完成達成合規所需的改善措施，相關進度也都在軌道上。

This new list of compounds that were part of that process that you just described. Just like you had mentioned, the rulemaking process is lengthy and long, and the due process is pretty extensive. But the partnership that we have with the Water Research Foundation. Also, our other partners with EPA and other organizations, NAWC, allows us to be a significant and meaningful part of that process and a voice.

至於你剛才描述的那個流程中所涵蓋的這份新的化合物清單。正如你提到的，制定規則（rulemaking）的流程冗長且耗時，而正當程序也相當廣泛。但我們與 Water Research Foundation 的合作夥伴關係，以及我們與 EPA 和其他組織（NAWC 等）的其他合作夥伴，使我們能在該流程中扮演重要且有意義的角色並發聲。

To your point of does ion exchange or GAC or any of these treatment processes that we use to mitigate PFAS, are there ancillary benefits? Absolutely. One of the things on microplastics I'm super proud of is our director of water quality based out of our San Jose water operation, is actually doing a pilot through the Water Research Foundation and actually using our Montevina plant to do a pilot on microplastics to inform the science behind what can be done to eliminate, treat, remediate microplastics.

回到你的問題：我們用來降低 PFAS 的離子交換、GAC（粒狀活性碳）或其他這些處理程序，是否有附帶效益？絕對有。在微塑膠方面，我非常自豪的一點是：我們位於聖荷西供水營運單位的水質總監，正透過 Water Research Foundation 進行試點計畫，並實際使用我們的 Montevina 廠來做微塑膠試驗，以支撐相關科學研究，了解可以如何消除、處理與修復微塑膠。

So we're very much in on the research and participating in the process that will help our company as well as others as we work through the process and the rulemaking. So super excited about that.

因此，我們非常投入研究並參與將有助於我們公司以及其他同業的流程，讓我們在推進流程與制定規則時能更好地應對。所以我們對此非常興奮。

Yeah, and I think it's good that Bruce highlights that because I think as we look at the team that is supporting all of us. We get the honor of telling the story. The work that actually gets done on the field is nothing short of amazing for what those folks do every day, and Suzanne DeLorenzo, who Bruce just talked about, is one of those amazing partners that is continuing to drive progress in our company and actually put us at the forefront of things that impact the entire industry, not just us.

是的，我認為 Bruce 強調這點很好，因為當我們看支援我們所有人的團隊時，我們有榮幸來講述這個故事。而真正發生在第一線的工作，對於那些每天在做的人而言，簡直令人驚嘆；Bruce 剛提到的 Suzanne DeLorenzo 就是其中一位了不起的夥伴，她持續推動公司進展，並讓我們站在影響整個產業（不只是我們）的議題最前沿。

(Operator Instructions)

(接線員指示)

I'm showing no further questions at this time. I would now like to turn it back over to Andrew Walters for any closing remarks.

目前顯示沒有其他問題。我現在想把電話交回給 Andrew Walters，請他做結語。

Thank you. 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. Together, we protect what's precious.

謝謝。再次感謝各位今天加入我們。H2O America 自豪地運用我們的全國性平台來支持各具特色的在地營運，並以共同使命凝聚一致：在四個州為 160 萬人提供可靠服務與高品質用水。我們一起守護珍貴之物。

At the same time, we continue executing our growth strategy and delivering our shareholder value, including our unwavering commitment to the dividend, which we paid for more than 80 consecutive years and increased it in each of the past 58.

同時，我們持續執行成長策略並為股東創造價值，包括我們對股利的堅定承諾：我們已連續超過 80 年發放股利，並在過去 58 年每年都提高股利。

Our success is built on a culture of service and partnership. We value our customers, communities, the environment, and capital partners, and I couldn't be prouder of our team whose dedication makes it all possible.

我們的成功建立在服務與夥伴合作的文化之上。我們重視客戶、社區、環境與資本夥伴；我也為我們的團隊感到無比自豪，正是他們的投入讓一切成為可能。

I'm always available for follow-up along with my partners, Ann and Bruce. We appreciate your interest in H2O America.

我與我的夥伴 Ann 和 Bruce 一樣，隨時都可以進行後續交流。感謝各位對 H2O America 的關注。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝各位參與今天的會議。本次議程到此結束。您現在可以掛線。