Essential Utilities Inc (WTRG) 2024 Q2 法說會逐字稿

For Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions).

對於收益電話會議。所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。 （操作員說明）。

And I would now like to turn the conference over to Brian Dingerdissen. You may begin.

現在我想將會議交給布萊恩·丁格迪森 (Brian Dingerdissen)。你可以開始了。

Good morning, everyone, and thank you for joining us for Essential Utilities' Second Quarter 2024 Earnings Call. This is Brian Dingerdissen, Vice President of Investor Relations and Treasurer at Essential. If you did not receive a copy of the press release, you can find it by visiting the Investor Relations section of our website at essential.co. The slides that we will be referencing and the webcast of this event can also be found on our website.

大家早安，感謝您參加 Essential Utilities 的 2024 年第二季財報電話會議。我是 Essential 投資者關係副總裁兼財務長 Brian Dingerdissen。如果您沒有收到新聞稿的副本，您可以訪問我們網站 Essential.co 的投資者關係部分找到它。我們將參考的幻燈片以及本次活動的網路廣播也可以在我們的網站上找到。

Here is our forward-looking statement. As a reminder, some of the matters discussed during this call may include forward-looking statements that involve risks, uncertainties and other factors that may cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements. Please refer to our most recent 10-Q, 10-K and other SEC filings for a description of such risks and uncertainties.

這是我們的前瞻性聲明。提醒一下，本次電話會議期間討論的一些事項可能包括前瞻性陳述，這些陳述涉及風險、不確定性和其他因素，這些因素可能導致實際結果與此類前瞻性陳述明示或暗示的任何未來結果存在重大差異。請參閱我們最新的 10-Q、10-K 和其他 SEC 文件，以了解此類風險和不確定性的描述。

During the course of this call, reference may be made to certain non-GAAP financial measures. A reconciliation of any non-GAAP to GAAP financial measures is posted in the Investor Relations section of the company's website.

在本次電話會議期間，可能會參考某些非公認會計準則財務指標。任何非公認會計原則與公認會計原則財務指標的調節表均發佈在本公司網站的投資者關係部分。

We will begin the call today with Chris Franklin, our Chairman and CEO, who will provide an update on the company. And then Dan Schuller, our CFO, will provide an overview of our financial results before Chris closes the call.

我們今天將與我們的董事長兼執行長 Chris Franklin 開始電話會議，他將介紹公司的最新情況。然後，我們的財務長 Dan Schuller 將在克里斯結束電話會議之前概述我們的財務表現。

With that, I will turn the call over to Chris Franklin.

這樣，我會將電話轉給克里斯·富蘭克林。

Presenter Speech

演講嘉賓

Thanks, Brian, and good morning, everyone. Thanks for joining us.

謝謝布萊恩，大家早安。感謝您加入我們。

Let's start with some highlights from the quarter. First, we posted GAAP earnings of $0.28 per share, which really was a strong result when you consider the weather in Pittsburgh, which is our largest natural gas service area. It was about 45% warmer than normal. This, of course, resulted in significant lower gas usage and marks the second year in a row weather has been warmer than normal.

讓我們從本季的一些亮點開始。首先，我們發布的 GAAP 收益為每股 0.28 美元，考慮到我們最大的天然氣服務區匹茲堡的天氣，這確實是一個強勁的結果。氣溫比平常高約 45%。當然，這導致天然氣使用量顯著減少，並標誌著天氣連續第二年比正常溫暖。

You'll recall that weather normalization is a key element of our current Peoples rate case in Pennsylvania. In an expression of its confidence in our business plan, our Board voted last week to increase the dividend by 6%, which continues our 33-year track record of annual increases in the dividend. The increases in expression of our continued commitment to delivering shareholder value, both through the dividend and long-term stock appreciation.

您會記得，天氣正常化是我們目前賓州人民利率案例的關鍵要素。為了表達對我們業務計劃的信心，我們的董事會上週投票決定將股息增加 6%，這延續了我們 33 年來每年增加股息的記錄。增加體現了我們透過股利和長期股票升值持續致力於提供股東價值的承諾。

Let me touch on a couple of regulatory developments in Pennsylvania that have occupied our time. First, back in June, the Pennsylvania Public Utility Commission voted [five- zero] to approve a C-motion that initiated some reform of the fair market value statute that was passed back in 2016. We see this as a positive step that should moderate purchase prices and rate impacts associated with municipal acquisitions.

讓我談談賓州一些佔用我們時間的監管進展。首先，早在6 月，賓州公用事業委員會就以[5-0] 的投票結果批准了一項C 動議，該動議啟動了對2016 年通過的公平市場價值法規的一些改革。一個積極的步驟，應該緩和與市政收購相關的購買價格和利率影響。

We also believe the new formula provides a guideline of how much purchase price will be allowed in rates, and we think it still promotes consolidation in the industry to a fair balance. We appreciate the commissioners work on this important statute that helps consolidate a fragmented industry, and I believe it will provide a much greater certainty in the closing of transactions.

我們還認為，新公式為費率中允許的購買價格提供了指導，我們認為它仍然促進行業整合達到公平平衡。我們讚賞委員們在製定這項重要法規方面所做的工作，該法規有助於整合分散的行業，我相信它將為交易的完成提供更大的確定性。

Now secondly, and importantly, we reached a nonunanimous settlement on our Peoples rate case in Pennsylvania. And then recently, the Administrative Law Judge issued a strong recommended decision in line with that settlement, which includes the important weather normalization.

其次，也是重要的是，我們就賓州的人民利率案達成了非一致和解。最近，行政法法官根據該解決方案發布了一項強烈建議的決定，其中包括重要的天氣正常化。

In Pennsylvania water rate case, our filing is nearly three years after the prior case, and we're requesting an overall rate increase of $126.7 million for water and wastewater. Dan will have a little more detail on that in just a moment.

在賓州水費案件中，我們提交申請的時間比上一案件晚近三年，我們要求水費和廢水處理費總體上調 1.267 億美元。丹稍後將提供更多詳細資訊。

Now before I talk about operations, I want to mention that the Commonwealth Court, which is the state court in Pennsylvania, did render a decision on DELCORA in early June. And our legal interpretation of that decision indicates continued support of the legally binding asset purchase agreement between Aqua and DELCORA.

在談論運營之前，我想提一下，聯邦法院，即賓夕法尼亞州的州法院，確實在 6 月初對 DELCORA 做出了裁決。我們對該決定的法律解釋表明，我們將繼續支持 Aqua 與 DELCORA 之間具有法律約束力的資產購買協議。

All right. Let's talk about operations for a moment. You may have followed the events around Hurricane Beryl. This is the large hurricane that hit Houston, Texas back on July 8. We initially had nearly 90 water and wastewater systems without service, largely due to power outages. With considerable help from mobile generators, we had many customers restored very quickly and all customers restored within three days. I have to congratulate our team.

好的。我們先來說一下操作。您可能關注了颶風貝裡爾周圍的事件。這是 7 月 8 日襲擊德州休士頓的大型颶風。在移動發電機的大力幫助下，我們很快就恢復了許多客戶，並且所有客戶在三天內就恢復了。我必須祝賀我們的團隊。

They did an outstanding job in restoring service after the storm, and they were well prepared for the next storm should it come this year as well. And by the way, our new outage map is available to customers and proved very helpful during the storm in Texas.

他們在風暴過後恢復服務方面做得非常出色，並且為今年下一次風暴的到來做好了充分的準備。順便說一句，我們的新停電地圖已向客戶提供，事實證明，在德克薩斯州的風暴期間，它非常有幫助。

Now shifting to capital. We're on track to invest $1.3 billion to $1.4 billion this year to improve critical infrastructure across the company's water and natural gas platform. To help fund those improvements, we continue to seek low interest loans to help keep our rates affordable.

現在轉向資本。今年我們預計將投資 13 億至 14 億美元，以改善公司水和天然氣平台的關鍵基礎設施。為了幫助為這些改進提供資金，我們繼續尋求低利率貸款，以幫助我們保持負擔得起的利率。

In the last three years, Essential has received approval for approximately $133 million in the form of 0% or low interest loans and approximately $59 million in the form of grants to fund projects like the PFOS mitigation that's required by the US EPA.

在過去三年中，Essential 已獲得約 1.33 億美元的零利率或低利率貸款批准以及約 5,900 萬美元的贈款批准，用於資助美國 EPA 要求的 PFOS 減排等項目。

So we recognized that neither the company or our customers put PFOS in the water, and we continue to focus on opportunities to mitigate the cost impact for our customers. This is all in addition to the work we've done in suing the polluters. We still expect to recover about $100 million from the settlement of those lawsuits.

因此，我們認識到公司或我們的客戶都沒有將 PFOS 放入水中，我們將繼續專注於減輕客戶成本影響的機會。這都是我們在起訴污染者方面所做的工作的補充。我們仍預計從這些訴訟的和解中收回約 1 億美元。

You might recall that we have over 280 water systems that need PFOS mitigation, and we provided an estimate of approximately $450 million to complete this work. We remain on schedule to complete that mitigation by the deadline set by the federal government.

您可能還記得，我們​​有超過 280 個供水系統需要 PFOS 減排，我們估計需要大約 4.5 億美元來完成這項工作。我們仍按計畫在聯邦政府設定的最後期限前完成緩解措施。

Let's look at the next slide here. You have heard that infrastructure we took place back in mid-May. We took time that week to celebrate our construction and field teams for the great work they do every day. I'll remind you that we've invested over $4 billion in infrastructure since 2020, and it's having a real impact on the communities we serve.

讓我們看下一張投影片。您聽說過我們在五月中旬啟動了基礎設施建設。那週我們花了一些時間來慶祝我們的施工和現場團隊每天所做的出色工作。我要提醒您的是，自 2020 年以來，我們已在基礎設施方面投資超過 40 億美元，這對我們所服務的社區產生了真正的影響。

In 2024 alone, we expect to replace over 300 miles of aged water and gas pipelines, providing even more reliability and resilient service to our customers. And of course, the plant work we do is to ensure our water is clean and safe from contaminants like PFOS and lead, among many others.

僅在 2024 年，我們預計將更換超過 300 英里的老化供水和天然氣管道，為我們的客戶提供更可靠、更有彈性的服務。當然，我們所做的工廠工作是確保我們的水清潔且安全，不含 PFOS 和鉛等污染物。

We were fortunate this year again to be included. This is the second consecutive year on USA today's prestigious list of America's climate leaders. The list identifies US companies demonstrating the most substantial reductions in greenhouse gas emissions over a two-year period. This recognition highlights Essential's significant progress in reductions achieved between 2020 and 2022.

今年我們有幸再次入選。這是連續第二年躋身《今日美國》著名的美國氣候領袖排行榜。名單列出了兩年內溫室氣體排放量減少幅度最大的美國公司。這項認可突顯了 Essential 在 2020 年至 2022 年間在減排方面取得的重大進展。

Speaking of environmental impact, our gas team continues to pursue opportunities to further reduce the company's carbon footprint. We recently announced an exciting hydrogen partnership with H Quest, an energy technology start-up, and the University of Pittsburgh. The demonstration project creates zero emission hydrogen energy directly from natural gas.

說到環境影響，我們的天然氣團隊繼續尋求機會進一步減少公司的碳足跡。我們最近宣布與能源技術新創公司 H Quest 和匹茲堡大學建立令人興奮的氫合作關係。此示範計畫直接從天然氣產生零排放氫能。

Peoples then blends the hydrogen with natural gas to assess impacts on pipeline operations and various home appliances. Again, this is a demonstration project, and we do not currently inject hydrogen into the distribution lines that serve our customers.

然後，皮爾斯將氫氣與天然氣混合，以評估對管道運作和各種家用電器的影響。同樣，這是一個示範項目，我們目前不會將氫氣注入為客戶服務的配電線路中。

All right. With that, let me turn it over to Dan to discuss the financials and regulatory matters. Dan?

好的。接下來，讓我將其交給 Dan 討論財務和監管問題。擔？

Thanks, Chris, and good morning, everyone. In this first slide, let's talk high level, and then we'll get into the details on the waterfall.

謝謝克里斯，大家早安。在第一張投影片中，我們將討論高層次的內容，然後我們將詳細介紹瀑布。

Operating revenues were down due to the decline in natural gas commodity prices year-over-year, which positively impacted our customers' bills and due to weather, which was warmer than normal for the natural gas business as compared to the prior year. In fact, as Chris mentioned, Pittsburgh was 44% warmer than normal for the quarter, and it's been 20% warmer than normal for the year so far.

營業收入下降的原因是天然氣商品價格年減，這對我們客戶的帳單產生了積極影響，而且由於天氣比上一年比天然氣業務正常溫暖，因此營業收入下降。事實上，正如 Chris 所提到的，匹茲堡本季的氣溫比正常水平高 44%，今年迄今比正常水平高 20%。

We also experienced lower water consumption in the second quarter than we did last year. While we continue our focus on managing O&M expenses, the quarterly O&M shows an increase due to a few onetime factors, which I will cover on the waterfall. However, I will note that year-to-date O&M expenses are up a reasonable 2.9%.

第二季的用水量也低於去年。雖然我們繼續專注於管理維運費用，但由於一些一次性因素，季度維運費用增加，我將在瀑布中介紹。不過，我要指出的是，年初至今的營運和維護費用合理成長了 2.9%。

We achieved EPS of $0.28 for the quarter. Last year's second quarter was especially strong given higher-than-budgeted water volumes, some onetime credits in O&M and the impact of the natural gas safe harbor rule. We remain on track relative to our stated EPS guidance range when normalizing for weather and excluding the substantial gain on sale from the energy project sale.

本季我們的每股收益為 0.28 美元。考慮到水量高於預算、營運和維護方面的一些一次性信貸以及天然氣安全港規則的影響，去年第二季的表現尤其強勁。當天氣正常化並排除能源項目銷售帶來的大幅銷售收益時，我們仍處於相對於我們規定的每股收益指引範圍的正軌上。

Next, let's walk through the second quarter waterfall. On Slide 9, we have the revenue waterfall for the quarter. Moving left to right, we have rate increases and surcharges of over $18 million, with about $15 million of that coming from water and $3 million from gas. Acquisitions and organic growth in the water business contributed $3 million, and then decreases due to lower volumes in both water and gas, as well as the impact of the purchased gas cost.

接下來我們就去第二季瀑布走一走吧。在投影片 9 上，我們看到了該季度的營收瀑布圖。從左到右，我們的費率上漲和附加費超過 1800 萬美元，其中約 1500 萬美元來自水費，300 萬美元來自天然氣。水業務的收購和有機成長貢獻了 300 萬美元，然後由於水和天然氣產量下降以及購買天然氣成本的影響而減少。

You may have experienced or noticed the excessively warm weather in June in the Mid-Atlantic, including here in Pennsylvania. This generally means higher water volumes due to irrigation. Given the meter read cycle, however, we didn't see the impact of this in our second quarter results, but we do expect to see this impact on our Aqua Pennsylvania results in July and thus, in the third quarter. A few other states, Texas, Ohio and Illinois, also had lower water consumption compared to a particularly strong quarter last year.

您可能已經經歷或註意到大西洋中部（包括賓夕法尼亞州）六月的天氣過於溫暖。這通常意味著灌溉帶來的水量更高。然而，考慮到抄表週期，我們在第二季的業績中沒有看到這種影響，但我們確實預計會在 7 月以及第三季的 Aqua PA 業績中看到這種影響。與去年特別強勁的季度相比，德克薩斯州、俄亥俄州和伊利諾伊州等其他幾個州的用水量也有所下降。

Let's talk about the natural gas business for a moment. Through May, each of the months this year has been warmer than normal, and this has had a real impact on our financial results. This is exactly why we asked for a weather normalization adjustment in our ongoing Peoples rate case and why we're encouraged that it's included in the recommended decision that will be considered by the PUC Commissioners.

我們先來談談天然氣業務。整個五月，今年的每個月都比正常更溫暖，這對我們的財務表現產生了實際影響。這正是我們要求在正在進行的人民費率案例中進行天氣正常化調整的原因，也是為什麼我們很高興將其納入 PUC 專員將考慮的建議決定中。

Next, let's take a look at O&M on Slide 10. O&M increased $9 million year-over-year for the second quarter. We saw approximately $1 million in increases in production costs and employee-related expenses combined, which I believe shows that we're through the extraordinary inflation period that everyone has experienced over the past few years.

接下來，我們來看看投影片 10 上的 O&M。我們看到生產成本和員工相關費用合計增加了約 100 萬美元，我相信這表明我們正在經歷過去幾年每個人都經歷過的非同尋常的通貨膨脹時期。

Next, we had an expected increase of $1.3 million in operating expenses from newly acquired systems in our Regulated Water segment. The larger increases include additional costs from the Gas segment Universal Services rider, which is recoverable through a revenue surcharge as well as higher other expenses.

接下來，我們的調節水部門新收購的系統預計營運費用將增加 130 萬美元。較大的成長包括來自天然氣部門普遍服務附加費的額外成本，這些成本可以透過收入附加費以及更高的其他費用來彌補。

The customer service rider was actually a credit last year due to overcollection that occurred as gas costs fell more quickly than rates could be adjusted. Thus, the difference between that credit last year and the expense this year is reflected in the $2.6 million increase on the O&M waterfall.

去年，由於天然氣成本下降速度快於費率調整速度，導致過度收取，客戶服務附加條款實際上是一項信用。因此，去年的信貸與今年的費用之間的差異反映在 O&M 瀑布增加的 260 萬美元。

The $5.1 million Other includes a number of items, but last year, we had some lower maintenance and insurance expenses in the Regulated Water segment and this year, it was normal. Additionally, we experienced lower capitalization in the Regulated Gas segment this quarter due to lower capital and direct spend, most of which should reverse later in the year. This resulted in O&M that was up from last year, but for the year, we expect a positive story here. As noted earlier, O&M is up 2.9% year-to-date, which is in line with our historic norms.

510 萬美元的其他費用包括許多項目，但去年我們在調節水領域的維護和保險費用有所降低，今年這是正常的。此外，由於資本和直接支出減少，本季我們在監管天然氣領域的資本化有所下降，其中大部分應該會在今年稍後逆轉。這導致運維比去年有所增長，但今年我們預計會出現積極的情況。如前所述，O&M 今年迄今上漲了 2.9%，這符合我們的歷史標準。

Next, let's look at the EPS waterfall on Slide 11. Starting on the left of the EPS waterfall with $0.34 from last year, the next thing we see is the nearly $0.05 increase from regulatory recoveries and $0.005 from growth in the water business. These were offset by the increase in expenses, decreases in volumes of both water and gas and the impact of the Other category.

接下來，讓我們看一下幻燈片11 上的EPS 瀑布。成長帶來的0.005 美元的成長。這些被費用的增加、水和天然氣用量的減少以及其他類別的影響所抵消。

The Other category here includes increases in depreciation, interest, taxes other than income taxes and income taxes due to the lower repair benefits. The lower repair benefits are the result of the timing of the natural gas safe harbor release last year, which resulted in recording both the Q1 and Q2 benefits in the second quarter. A $0.28 EPS outcome depicted here would be more than $0.02 higher if we had the weather normalization as included in the recommended decision.

這裡的「其他」類別包括折舊、利息、所得稅以外的其他稅收以及由於維修福利較低而產生的所得稅的增加。修復效益較低是由於去年天然氣安全港發布的時間安排，導致第二季第一季和第二季效益均錄得。如果我們將天氣正常化納入建議決策，則此處描述的 0.28 美元 EPS 結果將高出 0.02 美元以上。

When we provided guidance in February, we indicated that, presuming normal weather, we would have 2024 EPS of $1.96 to $2, excluding the gain on sale of the energy project. Unfortunately, warmer-than-normal weather has significantly impacted the regulated natural gas operating results in both Q1 and Q2.

當我們在 2 月提供指導時，我們表示，假設天氣正常，我們的 2024 年每股收益將為 1.96 美元至 2 美元，不包括能源項目銷售收益。不幸的是，比正常溫暖的天氣對第一季和第二季的受監管天然氣營運結果產生了重大影響。

So to better clarify our expected earnings versus guidance, if we take our anticipated full year reported GAAP EPS and we removed the $0.24 gain from the energy project sale, and then we add back about $0.08 due to warmer-than-normal weather to date, we would meet that target range. Of course, this presumes normal weather from here forward through 2024.

因此，為了更好地闡明我們的預期收益與指引，如果我們採用預期的全年報告GAAP 每股收益，並剔除能源項目銷售帶來的0.24 美元收益，然後由於迄今為止天氣比正常溫暖，我們再加上約0.08 美元，我們將達到這個目標範圍。當然，這是假設從現在到 2024 年天氣正常。

In conclusion, the story of the quarter includes unfavorable weather-related impacts for both water and gas and difficult O&M comparisons to last year. But the story for the year remains unchanged, and we continue to see the merits of our long-term strategy of providing service to our customers across our platform, investing in needed capital improvement, managing our day-to-day O&M expenses and maintaining our regulatory relations to deliver long-term shareholder value.

總之，本季的情況包括與天氣相關的對水和天然氣的不利影響，以及與去年相比的困難的運作和維護。但今年的情況保持不變，我們繼續看到我們長期策略的優點，即透過我們的平台為客戶提供服務、投資於所需的資本改進、管理我們的日常營運和維護費用以及維持我們的監管關係以實現長期股東價值。

Before moving to regulatory recoveries, I do want to mention that we still intend to issue $250 million of equity this year through our ATM program. Next, let's move to Slide 12 to provide an update on regulatory activity. This slide highlights our regulatory activity during this busy year so far.

在談到監管復甦之前，我確實想提一下，我們今年仍打算透過 ATM 計劃發行 2.5 億美元的股票。接下來，讓我們轉到投影片 12，提供監管活動的最新資訊。這張投影片重點介紹了我們在這繁忙的一年中迄今為止的監管活動。

We continue to manage our regulatory activity to maintain safe and reliable service, earn a fair return on the capital we invest and minimize regulatory lag, while always considering affordability for our customers. As Chris mentioned, part of this is pursuing low interest loans and grants wherever possible across our footprint.

我們繼續管理我們的監管活動，以維持安全可靠的服務，為我們的投資獲得公平的回報，並最大限度地減少監管滯後，同時始終考慮客戶的承受能力。正如克里斯所提到的，其中一部分是在我們的足跡中盡可能尋求低利率貸款和贈款。

Thus far, we've received authorization to increase water segment revenues by $25.8 million annually in Illinois, North Carolina, Ohio and Pennsylvania. And the Kentucky and Pennsylvania gas businesses have surcharges that will increase revenue by $2 million annually. We have significant water segment rate cases or surcharges pending in Illinois, New Jersey, Pennsylvania, Texas and Virginia to total $169.9 million. A detail of these can be found in the appendix.

到目前為止，我們已獲得伊利諾伊州、北卡羅來納州、俄亥俄州和賓夕法尼亞州水務部門收入每年增加 2580 萬美元的授權。肯塔基州和賓州的天然氣業務收取附加費，每年將增加 200 萬美元的收入。我們在伊利諾州、新澤西州、賓州、德州和維吉尼亞州有大量水費案件或附加費待決，總計 1.699 億美元。這些的詳細資訊可以在附錄中找到。

This includes the Pennsylvania water rate case, which we filed on May 23, nearly three years since we last filed. This case, while significant, is largely a capital case, and is proceeding as we would expect.

這包括我們在 5 月 23 日提起的賓州水費案，距離我們上次提起訴訟已經將近三年了。此案雖然意義重大，但在很大程度上是一個致命案件，並且正在按照我們的預期進行。

We're in the discovery phase now. We've got evidentiary hearings that are slated for October, and we expect a commission order in February. As Chris mentioned, we're optimistic about the progress of our PNG rate case, with the ALJ issuing a strong recommended decision in line with the nonunanimous settlement that was previously reached. We expect this case to be on the PUC agenda in September with rates effective September 27.

我們現在正處於發現階段。我們定於 10 月舉行證據聽證會，並預計在 2 月發出委員會命令。正如克里斯所提到的，我們對巴布亞新幾內亞利率案件的進展感到樂觀，行政法官根據先前達成的非一致和解協議發布了強烈建議的決定。我們預計此案將在 9 月列入 PUC 議程，費率將於 9 月 27 日生效。

And as noted, the recommended decision includes the weather normalization mechanism that would greatly reduce weather-related volatility going forward.

如上所述，建議的決定包括天氣正常化機制，該機制將大大減少未來與天氣相關的波動。

Thanks, Dan. Let's touch on the municipal acquisition program for just a couple of minutes. As of this call, we have 6 signed asset purchase agreements in two states, and we have existing water and wastewater operations in both of those states. These acquisitions will add over 215,000 customer equivalents and total approximately $385 million in purchase price.

謝謝，丹。讓我們花幾分鐘討論一下市政收購計劃。截至本次電話會議，我們已在兩個州簽署了 6 個資產購買協議，並且我們在這兩個州都有現有的供水和廢水處理業務。這些收購將增加超過 215,000 個客戶等價物，總收購價約為 3.85 億美元。

Now let me note that over $100 million of that rate base is from deals that are not DELCORA. We continue to see a strong and healthy pipeline of opportunities for additional growth. And as I've said many times before, our pipeline is more than 400,000 potential water and wastewater customers, and we are having active discussions with all of those.

現在讓我指出，該費率基礎中超過 1 億美元來自非 DELCORA 的交易。我們繼續看到強大而健康的額外成長機會。正如我之前多次說過的，我們的管道有超過 400,000 個潛在的水和廢水處理客戶，我們正在與所有這些客戶進行積極的討論。

As I said before as well, with Chairman DeFrank C-motion approved by the Public Utility Commission in Pennsylvania, we are optimistic that there should be a much clearer path to closing municipal acquisitions in Pennsylvania in the future. In addition, with the recently published EPA rules regarding PFOS, which includes a time line for compliance, we expect to see an increase in the number of opportunities, which should help further consolidate the water space in addition to mitigating the PFOS problem.

正如我之前所說，隨著主席 DeFrank C 動議獲得賓州公用事業委員會的批准，我們樂觀地認為，未來應該有一條更清晰的途徑來完成賓州的市政收購。此外，隨著最近發布的 EPA 有關 PFOS 的規定（其中包括合規時間表），我們預計機會數量將會增加，這除了緩解 PFOS 問題外，還應有助於進一步鞏固水域空間。

All right. So in closing, let's review the guidance we provided in February and then updated in May and we'll reaffirm it today. In February, we provided guidance for 2024 net income per share to be $1.96 to $2. Now on a GAAP basis, we anticipate exceeding this 2024 guidance as a result of the gain on sale of the energy plant assets. We mentioned the impact of warmer-than-normal weather a few times on this call that resulted in lower regulated natural gas operating revenues for the year-to-date.

好的。最後，讓我們回顧一下我們在 2 月提供並在 5 月更新的指南，今天我們將重申這一點。 2 月份，我們預計 2024 年每股淨利為 1.96 美元至 2 美元。現在，根據 GAAP 基礎，我們預計由於出售能源工廠資產所獲得的收益，將超過 2024 年的指導。我們在這次電話會議上多次提到了天氣比正常溫暖的影響，導致今年迄今受監管的天然氣營運收入較低。

Through 2028, we plan to invest approximately $7.2 billion in regulated infrastructure on existing utilities. In 2024, we expect to invest between $1.3 billion and $1.4 billion, and we'll stay on track for this. And we are on track so far, already spending $548.9 million year-to-date.

到 2028 年，我們計劃投資約 72 億美元用於現有公用事業的受監管基礎設施。到 2024 年，我們預計將投資 13 億至 14 億美元，並且我們將堅持這一目標。到目前為止，我們已步入正軌，今年迄今已支出 5.489 億美元。

Based on this investment, we expect rate base to grow at a compounded annual growth rate of approximately 8% for water and approximately 10% for natural gas through 2028, and the combined utility rate base will grow at a compounded annual growth rate of over 8%.

基於這項投資，我們預計到2028 年，水費率基數將以約8% 的複合年增長率增長，天然氣以約10% 的複合年增長率增長，綜合公用事業費率基數將以超過8%的複合年增長率增長。

We continue to expect that together, organic customer growth and growth from acquisitions for water and wastewater will continue at a rate of 2% to 3% per year on average. We remind investors that growth from acquisitions are lumpy and should be viewed over a three year average. We expect continued stability in our natural gas customer base.

我們繼續預計，有機客戶成長以及水和廢水收購帶來的成長將繼續以平均每年 2% 至 3% 的速度成長。我們提醒投資者，收購帶來的成長是不穩定的，應該以三年平均來看待。我們預計天然氣客戶群將持續穩定。

We mentioned before that we expect to raise approximately $250 million in 2024 using our ATM equity program. We remain committed to reducing Scope one and Scope two greenhouse gas emissions by 60% by 2035, and that's from a 2019 baseline. As you know, we've already made significant progress, and we estimate that we are over 25% as of the year-end 2023.

我們先前提到，我們預計在 2024 年利用 ATM 股權計畫籌集約 2.5 億美元。我們仍致力於在 2035 年將範圍一和範圍二溫室氣體排放量減少 60%（以 2019 年為基準）。如您所知，我們已經取得了重大進展，預計到 2023 年底我們的進展將超過 25%。

With that, I'll conclude my formal remarks, and we'll open it up for questions.

至此，我將結束我的正式發言，並開始提問。

(Operator Instructions) Ryan Connors with Northcoast Research.

（操作員說明）Northcoast Research 的 Ryan Connors。

I want to start on Chris, you mentioned the motion and the PUC reform on Act 12. On a separate parallel track of that, which I know there's some legislation out there that would actually make some legislative change, including, I guess, there's talk of even a repeal of Act 12, does the PUC reform process kind of stall that and for now? Or are those things still -- are those efforts still ongoing legislatively?

我想從克里斯開始，你提到了該動議和第 12 號法案的 PUC 改革。即使廢除第12 號法案，PUC 改革進程是否會暫時拖延這項進程？或者這些事情仍然在立法上仍在進行嗎？

Yes, Ryan, it's a great question. And I think we've made tremendous progress with the C-motion. Chairman DeFrank really showed real leadership in the commission in getting that through. But I don't think it deters the legislative action.

是的，瑞安，這是一個很好的問題。我認為我們在 C-motion 方面取得了巨大進展。德弗蘭克主席確實在委員會中展現了真正的領導力，以實現這一目標。但我不認為這會阻止立法行動。

I just given the schedule in Pennsylvania, the election and the short schedule in the fall, not even sure that the House will come back in session in the fall, I'm not overly optimistic that something could pass this fall.

我剛剛給出了賓夕法尼亞州的日程、選舉和秋季的短期日程，甚至不確定眾議院是否會在秋季重新開會，我對今年秋季的某些事情能夠通過並不太樂觀。

What I would say is there's not an appetite when you look at the full House and Senate to pass a repeal of Act 12. And so I would say there's probably opportunity to get a compromise bill that has some of the things that you see in the C motion codified and maybe a couple of other things.

我想說的是，當眾議院和參議院全體議員都沒有興趣通過廢除第12 號法案時。內容。

When I think about opportunities, I think about a greater definition or guardrails around affirmative public benefit. And I think if we get some of those things, done with some of the folks that want reform, I think there's an opportunity to get real progress accomplished. But I remain confident that we don't have the votes in the -- particularly in the Senate to re-peal Act 12 at this point in time.

當我想到機會時，我會考慮圍繞平權公共利益的更大定義或護欄。我認為，如果我們與一些想要改革的人一起完成其中一些事情，我認為就有機會取得真正的進展。但我仍然相信，目前我們在參議院——尤其是在參議院——還沒有票數來廢除第 12 號法案。

Yes. Okay. that's fair. Now on the Pennsylvania rate case, I know that not a whole lot you can say. It's a pending matter. But in other recent cases in Pennsylvania, we've seen where very significant turnout and so forth that some of these public hearings has been kind of an early indicator of some issues in some cases.

是的。好的。這很公平。現在，關於賓州的利率案件，我知道你不能說太多。這是一個懸而未決的事情。但在賓州最近的其他案件中，我們看到投票率非常高，其中一些公開聽證會是某些案件中某些問題的早期指標。

I mean I know your public hearing cases input hearings are ongoing, I think this week and next. Any early read from your team about what's coming out of those public input hearings? Any surprises, anything that would give you any concern as it relates to the public feedback.

我的意思是，我知道你們的公開聽證會案件輸入聽證會正在進行，我想本周和下週。您的團隊對這些公眾意見聽證會的結果有何早期了解？任何意外的事情，任何會讓你擔心的事情，因為它與公眾回饋有關。

Yes, so far, we've not seen anything that would surprise us or particularly come to concern. Listen, I'm always empathetic to customers who are concerned about rising bills. It's continuous discussion internally here on affordability. And so I have a great empathy for folks, and we're going to do everything we can to try to accomplish the mission and do it at the most affordable levels.

是的，到目前為止，我們還沒有看到任何令我們驚訝或特別令人擔憂的事情。聽著，我總是對那些擔心帳單上漲的顧客表示同情。內部一直在持續討論可負擔性。因此，我對人們抱持著極大的同情心，我們將盡一切努力完成使命，並以最實惠的水平完成任務。

And I know I told you at one of the hearings too, Ryan, I try to get out personally. I want to hear from people personally, so I sat in the back of the room yesterday and listened to some of the comments. But the good news is there really wasn't anything about service or reliability or the core capabilities that we provide to our customers in terms of water and wastewater services in this instance. So listen, we'll continue to listen and react appropriately, but nothing has been surprising to this point.

我知道我也在一次聽證會上告訴過你，瑞安，我試著親自退出。我想聽聽人們的個人意見，所以昨天我坐在房間的後面聽了一些評論。但好消息是，在這種情況下，我們在水和廢水處理服務方面確實沒有任何關於服務或可靠性或核心能力的資訊。因此，請聽著，我們將繼續傾聽並做出適當的反應，但到目前為止，沒有什麼令人驚訝的。

Got it. Okay. And then just one last one on housekeeping. Maybe, Dan. On the tax rate, I mean, I know there's been noise as you said, in the timing of the repair benefits, any directional help you can give us for the balance of the year modeling on the income tax line?

知道了。好的。然後是最後一項關於家事服務的內容。也許吧，丹。關於稅率，我的意思是，我知道正如您所說，在修復福利的時間安排方面存在噪音，您可以為我們在所得稅線的年度餘額建模方面提供任何方向性幫助嗎？

Yes, a little bit for it, Ryan. So we still anticipate that we'll have a slightly negative ETR at the end of the year. So I think, like single-digit negative ETR for 2024. I mean as we think ahead to 2025, I think that probably getting a little more toward breakeven.

是的，一點點，瑞安。因此，我們仍然預計年底 ETR 會略有負值。所以我認為，就像 2024 年的個位數負 ETR 一樣。

Durgesh Chopra with Evercore ISI.

Durgesh Chopra 與 Evercore ISI。

Just Chris, I wanted to get your thoughts on the PFOS program that you have in place. Just the Supreme Court decision since the last time we spoke, how does that change things, if any?

克里斯，我想了解您對現有 PFOS 計劃的看法。自上次我們交談以來最高法院的判決，這會如何改變事情（如果有的話）？

Yes, we -- it's a good question, Durgesh. So we've been in communication with the commissions that oversee the states where we have the majority of the work to do. And what we're hearing from our regulators is they'll get this thing done and focus on a PFOS mitigation, focused on the current levels, and that's exactly what we're doing.

是的，我們——這是一個很好的問題，Durgesh。因此，我們一直在與負責監督我們有大部分工作要做的州的委員會進行溝通。我們從監管機構那裡聽到的是，他們將完成這件事並專注於 PFOS 緩解，專注於當前水平，而這正是我們正在做的事情。

So we're full speed ahead. We remain with an estimate of about $450 million to do our work on 280 systems, as I said in the formal remarks but I think importantly, when we're getting the right signals from leadership at the commissions, then we have high confidence that not only will we accomplish the task of mitigation, but that we'll get recovery in the appropriate level in rates once the work is done. So we're full speed ahead.

所以我們正在全速前進。正如我在正式發言中所說，我們仍然估計花費約4.5 億美元來開展280 個系統的工作，但我認為重要的是，當我們從委員會的領導層那裡得到正確的信號時，我們就有很高的信心，不會我們不僅能完成緩解任務，而且一旦工作完成，我們就能將恢復率恢復到適當水準。所以我們正在全速前進。

Got it. It sounds like the commissions in different states are driving this, and so no changes there. A couple of modeling questions for Dan. Just Dan, can you remind us or tell us if you have issued any equity so far versus the $250 million target? That's one?

知道了。聽起來不同州的委員會正在推動這一點，所以那裡沒有變化。丹的幾個建模問題。 Dan，您能否提醒我們或告訴我們您迄今為止是否已發行任何股票以達到 2.5 億美元的目標？那是一個嗎？

And then just second, as we think about balance of the year, I think you mentioned that we'll see some weather benefit in Q3 in Pennsylvania, but then you said other states were lower relative to -- in terms of sales -- or weather-wise relative to last year. Can you just sort of talk in terms of guidance? Q3 so far, is it positive from a weather standpoint relative to guidance relative to normal? Or is that still a headwind? Those two questions, please.

其次，當我們考慮今年的平衡時，我想您提到我們將在賓夕法尼亞州第三季度看到一些天氣好處，但您又說其他州的銷售額相對較低，或者與去年相比，天氣方面。能簡單談談指導嗎？ Q3 到目前為止，從天氣角度來看，相對於正常情況的指導是否積極？或者這仍然是一個逆風？請問這兩個問題。

Yes, certainly. Let's start with the weather first, Durgesh. So we are seeing in July or July numbers, not fully baked yet, but we are seeing some positive benefits from weather as we anticipated for July.

是的，當然。讓我們先從天氣開始吧，Durgesh。因此，我們看到 7 月或 7 月的數據尚未完全成熟，但我們看到了天氣帶來的一些積極好處，正如我們對 7 月的預期一樣。

Now first portion of the year, we were behind a little bit on weather. So this helps us catch up, if not, get a little bit ahead. And then in terms of your question regarding equity, so we're just in the process now. We'll stand up that ATM next week. You might have looked and not seen a filing for that yet.

今年上半年，我們在天氣方面落後了一點。所以這可以幫助我們趕上，如果沒有，也可以領先一點。然後就您有關公平的問題而言，我們現在正在處理中。下週我們將安裝自動櫃員機。您可能已經查看過，但尚未看到相關文件。

And just given the fact that we didn't immediately need the cash and for much of the time between our last earnings call and this earnings call, our stock was kind of at a depressed price, we weren't really in a hurry to issue equity. But we will get started on that shortly here and still look to issue, as I said in the prepared remarks, about $250 million through the balance of the year.

考慮到我們並不立即需要現金，而且在上次財報電話會議和本次財報電話會議之間的大部分時間裡，我們的股票價格都處於低迷狀態，我們並不急於發行公平。但正如我在準備好的發言中所說，我們很快就會在這裡開始這項工作，並且仍然希望在今年剩餘時間內發行約 2.5 億美元。

Michael Gaugler with Janney Montgomery Scott.

麥可高格勒和珍妮蒙哥馬利史考特。

Let's start on DELCORA. Some good news there, obviously. Just wondering what the next steps for you, if any, might be? Or are we kind of still in just a waiting mode?

讓我們從 DELCORA 開始。顯然，有一些好消息。只是想知道您的下一步（如果有的話）可能是什麼？或者我們仍然處於等待模式？

Well, we continue to have ongoing conversations at the county. And I think we're all watching carefully to see what it looks like there in terms of their budget this year. As you might recall, last year, they had raised taxes about 5%. There is some public discussion about having to raise taxes again this year. We think we should be part of that conversation because certainly, the sale of DELCORA would raise them more than they would need coming from tax increases.

好吧，我們繼續在縣內進行持續的對話。我認為我們都在仔細觀察今年的預算狀況。您可能還記得，去年，他們提高了約 5% 的稅收。關於今年必須再次增稅存在一些公眾討論。我們認為我們應該參與這場對話，因為毫無疑問，出售 DELCORA 所帶來的收入將超過他們透過增稅所需的收入。

And our modeling continues to show that even despite some reduced capital spending, the plan, we would still have lower rates. And in our model, we're showing a 2% annual increase over a decade. And so really strong outcomes for the county.

我們的模型繼續表明，儘管該計劃減少了一些資本支出，但我們的利率仍然較低。在我們的模型中，我們顯示十年來每年增長率為 2%。該縣取得了非常強勁的成果。

So we still think we have a pretty compelling case, and maybe even more compelling as they come into budget season here in the next six weeks. So you have that aspect, so that conversation is going on. And then we still have the Federal Bankruptcy Court judge, who is dealing with the bankruptcy of the city of Chester, who has to stay on all progress at this point. So we continue to wait for an appeal there. And we're hopeful that, that stay is lifted some time in the relatively near future.

因此，我們仍然認為我們有一個非常令人信服的案例，而且當他們在未來六週內進入預算季節時，可能會更加令人信服。所以你有那個方面，所以談話正在進行中。然後我們還有聯邦破產法院法官，他正在處理切斯特市的破產案，他必須保持目前的所有進展。所以我們繼續在那裡等待上訴。我們希望在不久的將來能夠取消這種限制。

And then if that were to occur, it would immediately then start right back at the Public Utility Commission in Pennsylvania. And I'm optimistic about proceeding there. So I can't put a time line to it, but we our guidance has been estimated by midyear 2025. We're midyear 2024 here. So we still think we have a shot at that should something break loose here soon.

如果發生這種情況，賓州公用事業委員會將立即啟動。我對那裡的進展持樂觀態度。所以我無法給出時間表，但我們的指導預計到 2025 年年中。因此，我們仍然認為，如果很快就會出現問題，我們就有機會做到這一點。

That's good. And then in terms of the second half of the year, I noticed here in 2Q, the estimates were somewhat all over the map. And I know you've got a rate case coming up. That's going to be settled soon on the gas side. Just wondering what you're seeing in terms of cadence or what people should expect in terms of earnings cadence, 3Q and 4Q, particularly given the commentary that was just offered on positive weather impacts here in the third quarter?

那挺好的。然後就今年下半年而言，我注意到在第二季度，估計值有些分散。我知道您即將收到一個費率案例。天然氣方面的問題很快就會解決。只是想知道您在第三季和第四季的收入節奏方面看到了什麼，或者人們應該對第三季和第四季的獲利節奏有何預期，特別是考慮到剛剛對第三季的正面天氣影響發表的評論？

Yes. Happy to do that, Michael. So when we think about the -- our forecast versus consensus, we would say that consensus for the third quarter is high and consensus for the fourth quarter is low. So as you think about refinement to your models, let me give you a couple of pointers here.

是的。很高興這樣做，邁克爾。因此，當我們考慮我們的預測與共識時，我們會說第三季度的共識較高，而第四季度的共識較低。因此，當您考慮改進模型時，讓我在這裡給您一些建議。

For Q3 2023, that included an extra $0.085 of earnings from the gas repair safe harbor rules. So that if you're building off the 2023 reported $0.30 from the third quarter, you'd be too high. So keep in mind that this quarter will not yet have the impact of the pending gas rate case. And we've also got another year of lag on the water side relative to where we were last year. Now weather looks good so far on the water side, but -- as you know, the impact of weather on water is not as extreme as it is on the gas side.

2023 年第三季度，其中包括來自天然氣維修安全港規則的額外 0.085 美元收入。因此，如果您以 2023 年第三季報告的 0.30 美元為基礎，那麼您的價格就太高了。因此請記住，本季度尚未受到懸而未決的天然氣費率案件的影響。與去年相比，我們在水方面又出現了一年的延遲。現在，到目前為止，水方面的天氣看起來不錯，但是，如您所知，天氣對水的影響並不像對氣體方面那麼極端。

Understood.

明白了。

Let me touch on Q4, if I could, Michael, real quick.

如果可以的話，讓我談談第四季度，邁克爾，很快。

Sure.

當然。

Q4 -- by comparison, we think about Q4, the -- as I said, the Q4 estimates are light. And if you're light, you might not be accurately reflecting the benefits of the pending rate case in gas. And also if you're building off the Q4 for 2023, you want to keep in mind that last year, the reported $0.50 was weakened by warmer-than-normal weather in December and a onetime tax charge had an impact of about $0.068 in the fourth quarter last year.

第四季——相比之下，我們考慮第四季度，正如我所說，第四季度的估計很輕。如果你很輕，你可能無法準確反映天然氣中待定利率案例的好處。此外，如果您正在為2023 年第四季度做準備，您需要記住，去年12 月天氣比正常溫暖，報告的0.50 美元被削弱，一次性稅費對2023 年第四季度的影響約為0.068 美元。

So those items should be helpful as we think about the balance of the year. And as we've said, we expect to be in the $1.96 to $2 range on a weather-normalized basis once we exclude the impact of the energy project sale.

因此，當我們考慮今年的餘額時，這些項目應該會有所幫助。正如我們所說，一旦排除能源項目銷售的影響，我們預計在天氣正常化的基礎上，價格將在 1.96 美元至 2 美元之間。

Very helpful. And then I'll up just one more in 10-Q filing today, tomorrow?

非常有幫助。然後明天我會在 10-Q 歸檔中再增加一項嗎？

Today or tomorrow, I think that's -- think about it that way, Michael.

今天或明天，我認為──這樣想吧，麥可。

Jonathan Reeder with Wells Fargo.

喬納森·里德與富國銀行。

I wanted to get your thoughts or maybe what went on in the Board's decision this year to only increase the dividend 6%. I know it breaks the streak of doing 7% going back to like 2017.

我想了解您的想法，或董事會今年決定僅增加股息 6% 的原因。我知道這打破了 2017 年 7% 的連續紀錄。

Yes. So our dividend payout ratio, as you've seen, has been fully increasing. And our stated objective is to keep the dividend payout ratio full of 65%. So we set our dividend growth rate at 6% this year really to moderate the increase in that payout ratio. It's really that simple.

是的。因此，正如您所看到的，我們的股息支付率一直在全面提高。我們既定的目標是維持股利支付率達65%。因此，我們將今年的股息成長率定為 6%，實際上是為了緩和派息率的成長。真的就是這麼簡單。

Okay. So now the payout ratio is kind of where it needs to be or where you're targeting? And then if we're thinking about the going forward rate, you'd be likely increasing the dividend commensurate with, I guess, the EPS growth? Is that fair?

好的。那麼現在支付率是否達到了需要的水平或您的目標水平？然後，如果我們考慮未來的利率，我猜你可能會增加與每股盈餘成長相稱的股息？這樣公平嗎？

Yes. I mean, as you know, we make this decision one year at a time, but we'll continue to think in those terms.

是的。我的意思是，正如你所知，我們每年都會做出這個決定，但我們將繼續從這些方面思考。

Okay. And then just kind of -- sorry, were you saying something Chris? Sorry?

好的。然後就有點——抱歉，克里斯，你在說什麼嗎？對不起？

No.

不。

Okay. I don't want to cut you off. So just clarifying something. The estimated $0.08 weather headwind year-to-date, is that also including the lower volumes of the water segment? Or is that just purely the gas?

好的。我不想打斷你。所以只是澄清一些事情。今年迄今預計的天氣逆風為 0.08 美元，這是否還包括水量較低的部分？或者這只是純粹的氣體？

No. That's purely the gas. And maybe that's something we could be more clear on in the future. But we haven't talked much about weather impacts on the water side. On the water side, if we thought just about the quarter, water consumption probably is about a $0.005 impact for the quarter, whereas on the gas side, I think $0.08 year-to-date for an impact and about $0.03 for the quarter.

不，那純粹是氣體。也許我們將來可以更清楚這一點。但我們還沒有過多談論天氣對水邊的影響。在水方面，如果我們只考慮本季度，水消耗對該季度的影響可能約為 0.005 美元，而在天然氣方面，我認為今年迄今的影響為 0.08 美元，本季度的影響約為 0.03 美元。

Got it. Okay. So then the lower water volumes and revenues that you talked about, I mean, that's just exclusively due to that meter recycle? Or is there something--

知道了。好的。那麼您談到的水量和收入較低，我的意思是，這完全是由於水錶回收造成的？或者有什麼東西——

I think it's we just had lower water sales through the first part of the year in a number of our states. Specifically, what I mentioned in the prepared remarks were that in Pennsylvania, in the back half of June, we had very hot, dry weather, and we would have presumed to see a bump in revenue.

我認為今年上半年我們一些州的水銷量較低。具體來說，我在準備好的發言中提到的是，在賓州，六月下半月，我們的天氣非常炎熱、乾燥，我們預計會看到收入的成長。

We certainly saw a bump in that month in terms of our send out from our plants, but the way the meter read cycle works is the back half of the month ends up being primarily estimated, so you pick up that revenue in the subsequent months, so in July. And our numbers for July for Pennsylvania, they do reflect that pickup from the back half of June.

我們確實看到了該月工廠發出的量有所增加，但抄表週期的工作方式是在該月的後半部分進行主要估算，因此您可以在接下來的幾個月中獲得該收入，所以在七月。我們 7 月賓州的數據確實反映了 6 月下半月的回升。

Okay. So then that light. $0.025 difference between Q3 -- or sorry, Q2 2023 and Q2 2024 should reverse largely?

好的。那麼那光。第三季之間的差異為 0.025 美元——或者抱歉，2023 年第二季和 2024 年第二季應該會大幅逆轉？

Yes. Exactly. That specifically on it. But I would say, if we look at our comparison to last year, as you saw, we had a pretty stark comparison of water revenue. The water volumes relative to last year had a $9.7 million impact. But last year, what I'd say is water volumes were significantly ahead of budget or normal, whereas this year, we've been a bit below.

是的。確切地。那具體就可以了。但我想說，如果我們看看與去年的比較，正如你所看到的，我們對水收入的比較非常明顯。與去年相比，水量產生了 970 萬美元的影響。但去年，我想說的是，水量大大超出了預算或正常水平，而今年，我們的水量略低於預算。

And I'm trying to get if that's because of this the meter cycle or if it's actually underlying usage? Because I know you and American Waterworks on sort of the same territories, but they were kind of talking the opposite direction saying the anticipated declines in usage from those elevated levels in 2023, the anticipated decline in usage weren't as great as they were thinking they would be in 2024?

我想知道這是因為儀表週期還是實際上是潛在的使用？因為我知道您和 American Waterworks 位於同一地區，但他們的說法有點相反，即預計 2023 年使用量將較高水平下降，預計使用量下降幅度並不像他們想像的那麼大他們會在 2024 年嗎？

Yes, that sounds like that is the result for them. But in our case, I'd say we had significantly higher water sales last year relative to budget and somewhat lower sales this year relative to budget.

是的，聽起來這就是他們的結果。但就我們而言，我想說去年的水銷售額相對於預算明顯較高，而今年的銷售額相對於預算略有下降。

Okay. And those are not really necessarily weather influenced, I guess?

好的。我猜這些不一定是受天氣影響？

Well, and I would say last year, we saw a significant influence in a couple of states that -- including states that are not in like Texas, for example.

嗯，我想說去年，我們在幾個州看到了重大影響——包括德克薩斯州以外的州。

(Operator Instructions).

（操作員說明）。

David Sunderland with Baird.

大衛桑德蘭和貝爾德。

Two for me, both on the M&A pipeline. And actually, the first one, just a quick one. Chris, since the C-motion earlier in the quarter, have you seen any change in -- or any uptick maybe in M&A activity? Or now that there's a bit more certainty or I guess, maybe a level playing field is the right way to say it, or just a broader understanding there. Have you seen any change to that pipeline?

我有兩個，都在併購管道上。事實上，第一個，只是一個快速的。克里斯，自本季度早些時候提出 C 動議以來，您是否看到併購活動發生任何變化或可能有所增加？或者現在有了更多的確定性，或者我猜，也許公平的競爭環境是正確的說法，或者只是更廣泛的理解。您看到該管道有任何變化嗎？

It's hard to say because it's been so soon, whether there's a change in the pipeline. But what I would say is there's a lot of discussion with municipals trying to understand the new rules. And so what I would expect to see is once the there's RRR, which is this guideline that they're going to issue in the coming days here, once that's issued, I would expect municipal to start doing the math and say, Okay, if I take depreciated original cost, and I look at the multiple, how do I think about that? Is that fair or not?

很難說，因為時間太快了，管道是否有變化。但我想說的是，與市政當局進行了很多討論，試圖了解新規則。因此，我期望看到的是，一旦有了 RRR，這是他們將在未來幾天在這裡發布的指導方針，一旦發布，我希望市政當局開始做數學計算並說，好吧，如果我採用折舊的原始成本，然後查看倍數，我如何看待這一點？這公平不公平？

I'd like to think that they will think it's fair. It's not going to be certainly excessive as somewhere before, but I think they'll see it as fair. And I think that will begin to initiate even more conversations once that's issued, and that's coming in the coming days here.

我想他們會認為這是公平的。這肯定不會像以前那樣過度，但我認為他們會認為這是公平的。我認為一旦發布，將會開始發起更多的對話，這將在未來幾天內進行。

That makes sense. And yes, super early. And then maybe just secondly, a few peers in the industry have talked about maybe seeing some softening of sellers' expectations as it relates to valuations for their systems, and maybe some of this is due to realizing PFOS is going to be really expensive or otherwise. But maybe any thoughts on what you guys are seeing in this regard for M&A in your guys' jurisdictions?

這是有道理的。是的，超早。其次，業內的一些同行已經談到，賣家的期望可能會減弱，因為這與他們的系統估值有關，其中一部分可能是因為意識到 PFOS 將會非常昂貴，或者其他原因。但也許你們對你們管轄範圍內的併購有什麼想法？

And are you speaking specifically about municipals at this point or just generally?

您現在是專門談論市政當局還是籠統地談論市政當局？

Generally speaking, but I guess thoughts on municipals would be helpful, too.

一般來說，但我想對市政的想法也會有幫助。

Yes. I do think that, that's also ramping up. And of course, those are conversations that we're having directly with municipals in terms of what they're facing and the levels of contamination they're seeing and then how they go about it.

是的。我確實認為，這也在增加。當然，這些是我們直接與市政當局進行的對話，內容涉及他們所面臨的問題、他們所看到的污染程度以及他們如何處理這些問題。

And once those costs start to become real to them, I think they'll start to look at, in many cases, look at optionality. And I would expect those conversations to be had really in this year. I don't think this Supreme Court issue really impacts them. I think people will look to comply.

一旦這些成本開始對他們來說變得現實，我認為他們會開始考慮，在很多情況下，考慮選擇。我希望這些對話能夠在今年真正進行。我認為最高法院的問題並沒有真正影響他們。我認為人們會尋求遵守。

That concludes our Q&A session. I will now turn the conference back over to Chris Franklin for closing remarks.

我們的問答環節到此結束。現在我將把會議轉回克里斯·富蘭克林致閉幕詞。

Thank you and thank you all for joining us. As you know, we're always available. Dan, Brian, myself, make ourselves available if there are any follow-up questions, but really appreciate you joining us today. Thanks again.

謝謝你們並感謝大家加入我們。如您所知，我們隨時為您服務。丹、布萊恩、我本人，如果有任何後續問題，請隨時聯繫我們，但非常感謝您今天加入我們。再次感謝。

This concludes today's call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。