Northwest Natural Holding Co (NWN) 2024 Q2 法說會逐字稿

Good morning. Thank you for attending today's Northwest Natural Holding Company Q2 2024 earnings call. My name is Jayla, and I will be your moderator for today. (Operator Instructions)

早安.感謝您參加今天的西北天然控股公司 2024 年第二季財報電話會議。我叫 Jayla，我將擔任今天的主持人。（操作員說明）

I would now like to pass the conference over to our host, Nikki Sparley, Director of Investor Relations. Nikki, you may proceed.

現在我想將會議交給我們的東道主投資者關係總監 Nikki Sparley。妮基，你可以繼續了。

Good morning, and welcome to our second-quarter 2024 earnings call. As a reminder, some things that will be said this morning contain forward-looking statements. They are based on management's assumptions, which may or may not occur. For a complete list of our cautionary statements, refer to the language at the end of our press release. We expect to file our 10-Q later today.

早上好，歡迎參加我們的 2024 年第二季財報電話會議。提醒一下，今天早上將要說的一些事情包含前瞻性陳述。它們基於管理層的假設，這些假設可能會發生，也可能不會發生。有關我們的警告聲明的完整列表，請參閱我們新聞稿末尾的語言。我們預計今天晚些時候提交 10-Q。

As mentioned, this teleconference is being recorded and will be available on our website following the call. Please note, these calls are designed for the financial community. If you are an investor and have additional questions after the call, please contact me directly at 503-721-2530. News Media may contact David Roy at 503-610-7157.

如前所述，本次電話會議正在錄製中，並將在電話會議結束後在我們的網站上提供。請注意，這些電話是為金融界設計的。如果您是投資者並且在通話後還有其他問題，請直接致電 503-721-2530 與我聯繫。新聞媒體可致電 503-610-7157 聯絡 David Roy。

Speaking this morning are David Anderson, Chief Executive Officer; and Brody Wilson, CFO, and Vice President, Treasurer, and Chief Accounting Officer. David and Brody have prepared remarks and then will be available, along with other members of our executive team to answer your questions.

今天上午發表演說的是執行長 David Anderson；財務長兼副總裁、財務長兼首席會計官布羅迪威爾遜 (Brody Wilson)。大衛和布羅迪已準備好發言稿，然後將與我們執行團隊的其他成員一起回答您的問題。

With that, I'll turn it over to David.

有了這個，我會把它交給大衛。

Thanks, Nikki, and good morning, and welcome. Our financial results are on track for the year and in line with our full-year guidance issued in February. Brody will go through the details of the results here in a moment. This morning, and I'll walk you through a few economic indicators and provide an update on our Oregon gas utility rate case. I'll wrap up with an update on our long-term decarbonization and growth initiatives.

謝謝，尼基，早安，歡迎光臨。我們今年的財務業績步入正軌，並符合我們 2 月發布的全年指引。布羅迪稍後將詳細介紹結果。今天早上，我將向您介紹一些經濟指標，並提供俄勒岡州天然氣公用事業費率案例的最新情況。最後，我將介紹我們長期脫碳和成長計畫的最新情況。

Turning to a few comments on the economy. Related to our gas utility service territory, Oregon's unemployment rate remains low and on par with the national average at 4.1% in June. Employment growth increased in Oregon to 1.6%, compared to a drop in US employment growth to 1.5% annualized for June 2024.

轉向對經濟的一些評論。與我們的天然氣公用事業服務領域相關，俄勒岡州 6 月的失業率仍然很低，與全國平均 4.1% 持平。俄勒岡州的就業成長率增至 1.6%，而美國 2024 年 6 月的就業成長率年化下降至 1.5%。

Single-family housing permits were up 8.6% year over year in Oregon and increased 19.1% in the Portland metro area, signaling favorable conditions for customer growth ahead. For June, unemployment rates in our water service territories were as low as 3%. In six of the nine counties our water utilities serve, single-family building permits posted double-digit growth for the 12 months ended June 2024 compared to the same period in 2023. Collectively, our gas and water utility customer base grew 1.8% over the last 12 months.

俄勒岡州單戶住房許可證年增 8.6%，波特蘭都會區成長 19.1%，預示著未來客戶成長的有利條件。6 月份，我們供水服務地區的失業率低至 3%。在我們供水公司服務的 9 個縣中，有 6 個縣的單戶建築許可證在截至 2024 年 6 月的 12 個月內與 2023 年同期相比實現了兩位數增長。總的來說，我們的瓦斯和自來水公司客戶群在過去 12 個月中成長了 1.8%。

Moving to an update on our gas and water rate cases. Our utilities have continued to make necessary investments in safety, reliability and technology at record levels. For our water and wastewater utilities, we continue to find these systems need substantial investments to meet current and increasing quality standards and support customer growth.

接下來是關於我們的天然氣和水費案例的更新。我們的公用事業公司繼續以創紀錄的水平在安全性、可靠性和技術方面進行必要的投資。對於我們的供水和廢水處理設施，我們不斷發現這些系統需要大量投資才能滿足當前和不斷提高的品質標準並支援客戶成長。

Like many other companies, we're also contending with inflationary pressures on operating expenses. These are all reasons why we decided to file rate cases for our gas utility in Oregon and a number of our water and wastewater utilities.

與許多其他公司一樣，我們也在應對營運費用的通膨壓力。這些都是我們決定為俄勒岡州的天然氣公用事業公司以及我們的一些供水和廢水公用事業公司提交費率案件的所有原因。

We filed only after very careful consideration and with the utmost attention to the effect on customer bills. We know this is a difficult time. Our team has done all they can to reduce cost and operate as efficiently as possible, while maintaining safe and reliable systems.

我們是在經過非常仔細的考慮並高度重視對客戶帳單的影響後才提交的。我們知道這是一個困難時期。我們的團隊已盡一切努力降低成本並盡可能高效地運營，同時維護安全可靠的系統。

I'm happy to report we've worked constructively with stakeholders in these cases and have made substantial progress. All party settlements have been filed in the majority of the dockets.

我很高興地向大家報告，我們在這些案例中與利害關係人進行了建設性合作，並取得了實質進展。所有當事人的和解協議均已提交至大多數備審案件。

Concerning the gas utility Oregon general rate case, in July, Northwest Natural filed an all-party settlement resolving a majority of the case. That included a revenue requirement increase of $95 million that consisted of $85.4 million related to investments in the system and expenses, and $9.6 million for increased depreciation.

關於俄勒岡州天然氣公用事業一般費率案件，西北自然公司於 7 月提交了一份各方和解協議，解決了案件的大部分問題。其中包括收入要求增加 9,500 萬美元，其中 8,540 萬美元與系統投資和費用相關，以及 960 萬美元用於增加折舊。

The settlement also included a 50-50 capital structure and ROE of 9.4% and a cost of capital of approximately 7.1%. In addition, rate base would increase $357 million since the last rate case for a total rate base of $2.11 billion. We expect an order from the commission on the full rate case this fall with rates effective November 1.

和解協議還包括 50-50 的資本結構和 9.4% 的股本回報率以及約 7.1% 的資本成本。此外，自上次利率案例以來，利率基數將增加 3.57 億美元，總利率基數為 21.1 億美元。我們預計委員會將在今年秋季對全額費率案件發出命令，費率將於 11 月 1 日生效。

This week, we filed a preliminary Oregon annual purchase gas adjustment, which updates rates for the projected gas cost. Gas prices have been dropping, resulting in an expected decrease of 3.4% in customer bills, which will help offset an increase in rates from the rate case.

本週，我們提交了初步的俄勒岡州年度購買天然氣調整報告，更新了預計天然氣成本的費率。天然氣價格一直在下降，預計客戶帳單將減少 3.4%，這將有助於抵消費率情況下費率的上漲。

All in, we expect customers will pay about 2% more for their natural gas services coming winter than they did in 2005. On an annual basis, that's about a 0.10% compounded growth rate. We've also settled several water and wastewater utility rate cases.

總而言之，我們預計客戶在即將到來的冬季為天然氣服務支付的費用將比 2005 年高出約 2%。以年計算，複合成長率約 0.10%。我們也解決了幾起水和廢水利用率案件。

That includes the case for our largest utilities in Arizona with new rates expected to go into effect November 1, 2024. With that, let me turn it over to Brody.

這包括我們位於亞利桑那州最大的公用事業公司的情況，新費率預計將於 2024 年 11 月 1 日生效。那麼，讓我把它交給布羅迪。

Thank you, David, and good morning, everyone. I'll begin by discussing overall earnings drivers for 2024. Highlights for the second quarter and year-to-date results and conclude with guidance for the year.

謝謝大衛，大家早安。我將首先討論 2024 年的整體獲利驅動因素。第二季和年初至今的業績要點，並以全年指引作為總結。

As a reminder, Northwest Natural's earnings are seasonal with a majority of revenues and earnings generated in the first and fourth quarters during the winter heating months. Also, our segment reporting includes our natural gas distribution or NGD segment and other, which includes our interstate storage services and asset management services, Northwest Natural Water, Northwest Natural Renewables, and holding company expenses.

需要提醒的是，西北自然公司的利潤是季節性的，大部分收入和收益是在冬季供暖月份的第一季和第四季度產生的。此外，我們的分部報告還包括天然氣分銷或 NGD 分部及其他分部，其中包括我們的州際儲存服務和資產管理服務、西北天然水務、西北天然再生能源和控股公司費用。

Before I walk through detailed second quarter results, I wanted to emphasize a couple of financial themes for 2024. As you may remember, 2024 is an investment year for us that is setting the stage for future growth. While we continue to maintain strong credit ratings, a solid balance sheet and an unchanged long-term earnings growth outlook, our earnings guidance for 2024 reflects a combination of lag related to our capital investments and inflationary pressures that we are experiencing simultaneously.

在詳細介紹第二季業績之前，我想先強調 2024 年的幾個財務主題。您可能還記得，2024 年對我們來說是投資年，為未來的成長奠定了基礎。雖然我們繼續保持強勁的信用評級、穩健的資產負債表和長期盈利增長前景不變，但我們對 2024 年的盈利指引反映了與我們的資本投資相關的滯後性和我們同時經歷的通膨壓力。

To resolve the regulatory lag, we filed a gas utility Oregon rate case late last year. As David mentioned, we recently filed an all-party settlement and expect new rates will go into effect November 1.

為了解決監管滯後問題，我們在去年年底向俄勒岡州天然氣公用事業公司提起了費率訴訟。正如 David 所提到的，我們最近提交了一份各方和解協議，預計新費率將於 11 月 1 日生效。

Now moving to the second-quarter results. We reported a net loss of $2.8 million or $0.07 per share for the second quarter of 2024 compared to net income of $1.2 million or $0.03 per share for the same period in 2023. Lower earnings at our gas utility drove consolidated results as a result of regulatory lag on investments and inflationary pressures we discussed earlier.

現在轉向第二季業績。我們報告 2024 年第二季淨虧損 280 萬美元，即每股 0.07 美元，而 2023 年同期淨利潤為 120 萬美元，即每股 0.03 美元。由於投資監管滯後和我們先前討論的通膨壓力，我們的天然氣公用事業公司的收益下降推動了合併表現。

Utility margin increased $0.4 million, primarily due to customer growth and the amortization of deferrals. Gas utility O&M decreased $3.5 million, reflecting cost saving measures. Utility depreciation and general taxes increased $2.5 million. Other income declined $4.2 million, mainly driven by higher pension costs. Interest expense increased $0.4 million from incremental long-term debt financing.

公用事業利潤率增加了 40 萬美元，主要是由於客戶成長和延期攤銷。天然氣公用事業營運與維護減少了 350 萬美元，反映出成本節約措施。公用事業折舊和一般稅費增加了 250 萬美元。其他收入下降了 420 萬美元，主要是由於退休金成本上升。長期債務融資增量導致利息支出增加 40 萬美元。

Our other businesses provided net income of $200,000, which was a decrease of $1.3 million compared to the same period last year primarily due to a gain on settlement in 2023. For the first 6 months of 2024, we reported net income of $61 million or $1.60 per share compared to net income of $72.9 million or $2.03 for the same period in 2023. Lower earnings at our gas utility drove the consolidated results with similar themes as we noted for the quarter, namely regulatory lag on investments and inflation pressures.

我們的其他業務提供淨利潤 20 萬美元，比去年同期減少 130 萬美元，主要是由於 2023 年結算收益。2024 年前 6 個月，我們的淨利潤為 6,100 萬美元，即每股 1.60 美元，而 2023 年同期淨利潤為 7,290 萬美元，即每股 2.03 美元。我們的天然氣公用事業公司的獲利下降推動了綜合業績與我們在本季指出的類似主題，即投資監管滯後和通膨壓力。

A few more details on the gas utility results. Utility margin increased $0.9 million as a result of customer growth and the amortization of deferrals, partially offset by the effect of warmer weather on customers that opt out of weather normalization and lower gains on gas costs.

有關天然氣公用事業結果的更多詳細資訊。由於客戶成長和延期攤銷，公用事業利潤率增加了 90 萬美元，部分被天氣變暖對選擇退出天氣正常化的客戶的影響和天然氣成本收益降低所抵消。

Gas utility O&M decreased $3.8 million, reflecting lower employee benefit and contractor costs related to cost-saving measures, partially offsetting this was higher payroll and information technology costs. Utility depreciation and general taxes increased $4.5 million due to higher property, plant and equipment investments.

天然氣公用事業營運與維護減少了 380 萬美元，反映出與成本節約措施相關的員工福利和承包商成本下降，但工資和資訊技術成本上升部分抵消了這一損失。由於財產、廠房和設備投資增加，公用事業折舊和一般稅費增加了 450 萬美元。

Other income decreased $8 million, mainly from higher pension costs, but also lower interest income and equity AFUDC. Interest expense increased $1.9 million from incremental long-term debt financing. Our other businesses reported a decrease of $2.9 million, primarily due to a gain on settlement in 2023. With the overall cost of capital increasing, we have remained disciplined in our approach to deploying capital.

其他收入減少了 800 萬美元，主要是由於退休金成本增加，但利息收入和權益 AFUDC 減少。長期債務融資增量導致利息支出增加 190 萬美元。我們的其他業務減少了 290 萬美元，主要是由於 2023 年結算收益。隨著整體資本成本的增加，我們在部署資本的方法上仍然保持紀律。

For 2024, cash provided by operating activities was $246 million. We invested $200 million into the business with the majority of the investments for safety and reliability projects and our regulated gas and water businesses. These were planned and included in our rate case request. Our objective remains to keep our balance sheet strong with ample liquidity.

2024年，經營活動提供的現金為2.46億美元。我們向該業務投資了 2 億美元，其中大部分投資用於安全和可靠性項目以及受監管的天然氣和水業務。這些都是計劃好的並包含在我們的費率案例請求中。我們的目標仍然是保持資產負債表強勁和流動性充足。

The company reaffirmed 2024 annual earnings guidance today for net income in the range of $2.20 to $2.40 per share. Guidance assumes continued customer growth, average weather conditions and no significant changes in prevailing regulatory policies, mechanisms or outcomes or significant changes in laws, legislation, or regulations.

該公司今天重申 2024 年年度獲利指引，每股淨利潤在 2.20 美元至 2.40 美元之間。指南假設客戶持續成長、天氣條件平均，且現行監管政策、機製或結果沒有重大變化，或法律、立法或法規沒有重大變化。

In our earnings release, we have also provided our expectations regarding the quarterly distribution of consolidated earnings. We continue to target a long-term earnings per share growth rate of 4% to 6% compounded annually from 2022 through 2027.

在我們的收益報告中，我們也提供了合併收益季度分配的預期。我們繼續目標是從 2022 年到 2027 年，每股盈餘的長期複合成長率為 4% 至 6%。

With that, I'll turn the call back over to David.

這樣，我會將電話轉回大衛。

Thanks, Brody. Turning to our gas utility. We continue to work on decarbonization initiatives related to renewable natural gas, our utility RFP closed in May with very good responses. We're currently evaluating the offtake proposals and expect to begin contracting soon. Work continues on our hydrogen pilots.

謝謝，布羅迪。轉向我們的天然氣公用事業。我們繼續致力於與再生天然氣相關的脫碳舉措，我們的公用事業 RFP 已於 5 月結束，並得到了很好的反響。我們目前正在評估承購建議，預計很快就會開始簽約。我們的氫試點工作仍在繼續。

As you may remember, we partnered with Modern Hydrogen to become the first North American gas utility to deliver Turquoise Hydrogen, which permanently sequesters carbon in solid form resulted in clean hydrogen blended directly on our system.

您可能還記得，我們​​與 Modern Hydrogen 合作，成為北美第一家提供綠松石氫的天然氣公用事業公司，氫能永久封存固體形式的碳，從而在我們的系統中直接混合清潔氫氣。

In May, more than 100 key policymakers and other stakeholders attended our unveiling ceremony to see this technology firsthand. And in fact, just last week, we also hosted a congressional delegation at the sites that they could see it too. At the same time, we're also piloting carbon capture technology that would reduce emissions from boilers for our largest customers. We're also examining ground source heat pump systems coupled with natural gas backup heating.

5 月份，100 多名主要政策制定者和其他利害關係人參加了我們的揭幕儀式，親眼目睹了這項技術。事實上，就在上週，我們還在他們也可以看到的地點接待了一個國會代表團。同時，我們也正在試驗碳捕獲技術，為我們最大的客戶減少鍋爐的排放。我們也正在研究與天然氣備用加熱相結合的地源熱泵系統。

We believe hybrid solutions are important to the future of energy and are excited to be at the cutting edge. Turning to Northwest Natural Water. We continue to execute on our growth strategy. In June, we agreed to acquire Puttman Infrastructure and ICH, which will add 4,200 customers in Idaho, Oregon and California, which will ultimately grow to 19,000 as it is built out. Importantly, this acquisition provides an entry into the recycled water business.

我們相信混合動力解決方案對於能源的未來非常重要，並且很高興能夠處於前沿。轉向西北天然水。我們繼續執行我們的成長策略。6 月，我們同意收購 Puttman Infrastructure 和 ICH，這將在愛達荷州、俄勒岡州和加利福尼亞州增加 4,200 名客戶，建成後最終將增加到 19,000 名。重要的是，此次收購提供了進入再生水業務的機會。

I'm very happy Tom will be joining our executive team to lead the water business. Tom is a recognized leader in the sustainable infrastructure market with over 25 years of experience investing, developing and operating innovative water, wastewater and recycled water systems. Most importantly, Tom shares Northwest Natural Waters' core values and our commitment to customers. We expect this acquisition to close soon. Moving now to an update on Northwest Natural renewables.

我很高興湯姆將加入我們的執行團隊來領導水業務。Tom 是永續基礎設施市場公認的領導者，在投資、開發和營運創新水、廢水和再生水系統方面擁有超過 25 年的經驗。最重要的是，Tom 認同 Northwest Natural Waters 的核心價值以及我們對客戶的承諾。我們預計此次收購將很快完成。現在介紹西北自然再生能源的最新情況。

As you know, through that business, we're focused on providing cost-effective solutions to help a variety of sectors decarbonize using existing waste streams and renewable energy sources.

如您所知，透過該業務，我們專注於提供具有成本效益的解決方案，幫助各行業利用現有廢物流和再生能源實現脫碳。

Our first project is an investment in two facilities with EDL that is designed to convert landfill waste gases to renewable natural gas. Construction was completed on both facilities in 2023, and the raw gas production continues to be at the forecasted levels from the landfills. Our partners have finished installing needed additional equipment and the plants are ramping up production to be able to process all of the landfill gas. I'm very pleased with this progress.

我們的第一個項目是投資兩個 EDL 設施，旨在將垃圾掩埋場廢氣轉化為再生天然氣。兩個設施的建設均於 2023 年完成，垃圾掩埋場的原氣產量持續保持在預測水準。我們的合作夥伴已經完成了所需額外設備的安裝，工廠正在提高產量，以便能夠處理所有垃圾掩埋氣體。我對這項進展感到非常滿意。

EDL now expects both facilities to be online and ready to begin commercial operations later this fall. Our investment of approximately $25 million per facility will only be made at substantial completion or at our election upon reaching specified production levels. Importantly, the revenues and cash flows are expected to begin promptly thereafter from long term, primarily fixed price offtake agreements that we have contracted with investment-grade counterparties.

EDL 現在預計這兩個設施都將上線並準備在今年秋季晚些時候開始商業運營。我們每個設施的投資約為 2500 萬美元，只有在基本完工後或在我們選擇達到指定生產水平後才會進行。重要的是，預計收入和現金流將立即從我們與投資等級交易對手簽訂的長期、主要是固定價格承購協議中開始。

Thanks for joining us this morning. With that, we'll open it up to questions.

感謝您今天早上加入我們。至此，我們將開放提問。

(Operator Instructions) Chris Ellinghaus, Siebert Williams Shank.

（操作員說明）Chris Ellinghaus、Siebert Williams Shank。

The recycled water aspect of the recent announcement, can you just talk about where you see that market?

最近宣布的再生水方面，您能談談您對這個市場的看法嗎？

Yeah. So have me let Justin kind of take that one, if you don't mind.

是的。如果你不介意的話，讓我讓賈斯汀拿走那個吧。

Chris, the recycled water technology, it's really -- think about it as wastewater treatment plants that are installed and able to reuse the treated effluent typically for irrigation purposes. And what that does is it really reduces the overall water required to serve a community.

克里斯，再生水技術，它實際上是——把它想像成安裝的廢水處理廠，並且能夠將處理後的廢水再利用，通常用於灌溉目的。這樣做確實減少了社區所需的總用水量。

That's obviously important in water-scarce areas, such as California, Arizona, areas of Idaho, Central Oregon, actually a lot of the areas that our water company currently has customers and provide service. So we see it as a really interesting technology and application that will help support growth and create new opportunities for us going forward.

這對缺水地區顯然很重要，例如加州、亞利桑那州、愛達荷州、俄勒岡州中部地區，實際上我們的自來水公司目前擁有客戶並提供服務的許多地區。因此，我們認為它是一項非常有趣的技術和應用程序，將有助於支持成長並為我們的未來創造新的機會。

Do you have any other industries like, say, geothermal that could utilize your recycled water?

您是否還有其他行業可以利用您的再生水，例如地熱？

There are some commercial and industrial customers that Puttman Infrastructure serves in a similar format. Geothermal, I don't know that we have any specific applications there, but that's something that we could look into in the future.

Puttman 基礎設施以類似的形式為一些商業和工業客戶提供服務。地熱，我不知道我們在那裡有任何具體的應用，但這是我們將來可以研究的東西。

Okay. Well, I have you. What are your thoughts on the current environment for water M&A? And do you see any opportunities to accelerate sort of the tenor of your growth there?

好的。嗯，我有你。您對目前水務併購環境有何看法？您是否認為有任何機會可以加快您在那裡的發展速度？

Yes. So the current M&A market, I would say it slowed down a little bit, and that's probably a function of the cost of capital and just the bid-ask spread, if you will, out in the market today. So we're seeing a little bit of a slowdown. But we still have a robust pipeline of acquisition opportunities. Many of them are tuck-in acquisitions around our existing service territories, but we're always looking at opportunities to do something more substantial, and we'll take that on an opportunistic basis.

是的。因此，我認為當前的併購市場放緩了一點，這可能是資本成本的函數，如果你願意的話，這可能是當今市場上的買賣價差的函數。所以我們看到了一些放緩。但我們仍擁有大量收購機會。其中許多是圍繞我們現有服務區域進行的收購，但我們一直在尋找機會做更實質的事情，我們將在機會主義的基礎上抓住這個機會。

Okay. And maybe this is for Brody, but vis-a-vis the water business, and you guys have talked about how you see reporting that segment in the future. But is there an opportunity for you guys in terms of expediting your water reporting and so far as valuation for water utilities is materially higher. So there could be a material benefit to the stock of when that reporting takes place. So have you guys thought about that aspect?

好的。也許這適用於布羅迪，但針對的是水務業務，你們已經討論瞭如何看待未來報告該細分市場的情況。但是，你們是否有機會加快水報告速度，到目前為止，水務公司的估值要高得多。因此，當報告發佈時，股票可能會獲得實質的好處。那麼大家有沒有想過這方面的問題呢？

Yes. Thanks for the question, Chris. I think we're always considering all of our disclosures and what's valuable for our investors. And so we'll look at that both from a compliance requirement with the SEC, but then also on what we feel like is best for our investors to receive. So I would say, yes, we're always looking at that.

是的。謝謝你的提問，克里斯。我認為我們一直在考慮我們所有的披露以及對投資者有價值的內容。因此，我們不僅會從 SEC 的合規要求角度來考慮這一點，還會考慮我們認為對投資者來說最有利的情況。所以我想說，是的，我們一直在關注這一點。

And as this business grows, and as you know, for us, on the water side, this is also an investment year. We've got a number of rate cases ongoing, and we've actually reached settlements on a number of those rate cases setting us up for future growth in the water business. So very pleased there, and we are always looking at that disclosures and what we plan to do in the future.

隨著這項業務的成長，正如你所知，對我們來說，在水務方面，這也是一個投資年。我們有許多費率案件正在進行中，而且我們實際上已經就其中一些費率案件達成了和解，為我們未來水務業務的成長奠定了基礎。非常高興，我們一直在關注這些披露以及我們未來計劃做什麼。

Yes. We hear you, Chris, and that will drive us to make a decision. We absolutely understand the valuation impacts.

是的。克里斯，我們聽到了你的聲音，這將促使我們做出決定。我們絕對理解估值影響。

Okay. One last question. Given that this is a lag year, it's a difficult year. When you get a final order in Oregon, have you thought about maybe given some guidance at that point, maybe what your interpretation of the earnings power of that case is or just some 2025 guidance on the earlier side?

好的。最後一個問題。鑑於今年是滯後年，因此這是艱難的一年。當您在俄勒岡州收到最終訂單時，您是否考慮過可能會在那時給予一些指導，也許您對該案例的盈利能力的解釋是什麼，或者只是早期的一些 2025 年指導？

We will think about that. We -- first thing we do is to get through the case, right? I mean the good news is we've got a settlement, but it still needs to be approved. So I don't want to get too far ahead of this, but we will consider that, Chris.

我們會考慮這一點。我們要做的第一件事就是解決這個案子，對嗎？我的意思是，好消息是我們已經達成和解，但仍需獲得批准。所以我不想走太遠，但我們會考慮這一點，克里斯。

Selman Akyol, Stifel.

塞爾曼·阿克奧爾，史蒂菲爾。

This is Tyler Rakers on for Selman. On the Puttman Water acquisition, you alluded to these growth opportunities. And I'm just sort of wondering what sort of CapEx looks like it's going into that? And then whether it's more looking at growing the geographic footprint, whether it be California or if it's more just entering more into the wastewater stuff. I'd love to get your thoughts.

我是泰勒雷克斯 (Tyler Rakers) 替補塞爾曼 (Selman)。在收購 Puttman Water 時，您提到了這些成長機會。我只是想知道這會牽涉到什麼樣的資本支出？然後，是否更多地考慮擴大地理足跡，無論是在加利福尼亞州，還是只是更多地進入廢水處理領域。我很想聽聽你的想法。

Yes. Good question, Tyler. So there are a few different aspects of that. In terms of the CapEx, there's certainly a long-term capital investment opportunity to support growth. But we are acquiring existing assets that serve an existing customer base.

是的。好問題，泰勒。所以有幾個不同的面向。就資本支出而言，肯定存在支持成長的長期資本投資機會。但我們正在收購為現有客戶群服務的現有資產。

So there's a number of different communities, individual utilities that Puttman Infrastructure owns. And some of those -- many of those communities are only partly built out. So picture the treatment plant and the underground pipe infrastructure that's in the ground ready to serve future homes that are in rapidly growing areas outside of Boise, Idaho, for example, and down in the San Diego market.

因此，普特曼基礎設施公司擁有許多不同的社區和獨立的公用事業公司。其中一些——許多社區只是部分建成。因此，想像地下的處理廠和地下管道基礎設施，它們已準備好為愛達荷州博伊西以外快速增長地區以及聖地亞哥市場的未來住宅提供服務。

And so there's long-term growth potential there and capital that already has been invested, but there's also future opportunities. And we see future opportunities in the existing service territories that they serve, but also opportunities to expand beyond that.

因此，那裡有長期的成長潛力和已經投入的資本，但也有未來的機會。我們不僅看到了他們所服務的現有服務領域的未來機遇，而且還看到了進一步擴展的機會。

Great. And then on the hydrogen, I know you mentioned in the opening remarks about Modern, just with the Turquoise Hydrogen or are you seeing that as sort of the path forward with that side of the business? Or are you still looking at other forms of -- yes, just hydrogen, whether it be blue or green or whatever it may be?

偉大的。然後關於氫，我知道您在有關 Modern 的開場白中提到過，只是綠松石氫，或者您是否認為這是該業務方面的前進道路？或者你還在尋找其他形式的——是的，只是氫，無論它是藍色的、綠色的還是其他？

Yes, this is David. We would look at all of them. What we were just trying to point out, what's really unique about this opportunity is that these units can go directly on the distribution system in various places. And so you don't have to have a large hydrogen hub to make the hydrogen. So we are for all of the above on hydrogen.

是的，這是大衛。我們會研究所有這些。我們只是想指出，這個機會的真正獨特之處在於這些單位可以直接進入不同地方的分銷系統。所以你不需要有一個大型的氫中心來製造氫氣。因此，我們支持氫的上述所有內容。

And I think this just shows you one more example of how R&D dollars and technology is coming to the gas business to help it decarbonize.

我認為這只是向您展示了研發資金和技術如何進入天然氣行業以幫助其脫碳的另一個例子。

Got It. And then on the -- regarding the warmer weather, you guys have mentioned full year guidance expects more normal weather. I'm just wondering in terms of sort of sensitivity to warmer weather, how that affects future earnings?

知道了。然後關於天氣變暖，你們提到全年指導預計天氣會更加正常。我只是想知道對溫暖天氣的敏感性，這對未來的收入有何影響？

Yes. Thanks for the question. When we referenced the warmer weather, we did experience warmer-than-normal weather in the first quarter. Generally, for us, the heating quarters, first and fourth quarters are the largest impacted quarters by weather. So I think for the remainder of the year, we are forecasting and assuming normal weather, that's what we would always do, and we've worked really hard on earnings year-to-date given the regulatory lag and inflation pressures to help offset those with some O&M savings.And then for the rest of the year, again, we're just -- we're assuming a normal weather for the remainder of the year.

是的。謝謝你的提問。當我們提到天氣變暖時，我們確實在第一季經歷了比正常情況更溫暖的天氣。一般來說，對我們來說，暖氣季度、第一季和第四季是受天氣影響最大的季度。因此，我認為在今年剩下的時間裡，我們正在預測並假設天氣正常，這就是我們一直會做的事情，考慮到監管滯後和通膨壓力，我們在年初至今的盈利方面非常努力，以幫助抵消這些影響。

And Tyler, just a reminder on weather normalization, most of our load is weather normalized in Oregon and some customers have an option to opt out and then our Washington load doesn't have it, but well over 80% of our load is covered by weather normalization. So weather can have some impact, it's more of a minor side of the impact overall.

泰勒，只是提醒一下天氣正常化，我們的大部分負載在俄勒岡州都是天氣正常化的，一些客戶可以選擇退出，然後我們的華盛頓負載沒有它，但我們超過 80% 的負載都由天氣正常化。因此，天氣可能會產生一些影響，但它只是整體影響的次要方面。

At this time, there are no other questions registered in the queue. So I'd like to pass the conference back over to David Anderson for closing remarks.

此時，隊列中沒有登記其他問題。因此，我想將會議轉回給大衛·安德森（David Anderson）致閉幕詞。

Well, thank you, everybody, for joining us. If you have any questions, please get a hold of Nikki, and we'll be happy to follow up in any way we can to help you up. Everybody, have a great weekend. Thank you.

好的，謝謝大家加入我們。如果您有任何疑問，請聯絡 Nikki，我們很樂意盡一切努力為您提供協助。大家週末愉快。謝謝。

That concludes today's conference call. Thank you for your participation, and enjoy the rest of your day.

今天的電話會議到此結束。感謝您的參與，祝您有個愉快的一天。