Essential Utilities Inc (WTRG) 2024 Q3 法說會逐字稿

Thank you for standing by. My name is Ellie, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Essential Utilities third quarter 2024 earnings call. (Operator Instructions) Thank you.

謝謝你的支持。我叫艾莉，今天我將擔任你們的會議操作員。此時，我謹歡迎大家參加 Essential Utilities 2024 年第三季財報電話會議。 （操作員說明）謝謝。

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

我現在想把會議交給布萊恩·丁格迪森 (Brian Dingerdissen)。你現在可以開始了。

Good morning, everyone, and thank you for joining us for Essential Utilities' third quarter 2024 earnings call, during which we'll provide an update on new long-term guidance. The slides that we will be referencing and a webcast of this event can be found on our website.

大家早安，感謝您參加 Essential Utilities 的 2024 年第三季財報電話會議，在此期間我們將提供新的長期指導的最新資訊。我們將參考的幻燈片以及該活動的網路廣播可以在我們的網站上找到。

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 and 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.

提醒一下，本次電話會議中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所表達和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, who will provide an update on the financial results, before Chris closes the call with our guidance.

今天，我們將首先與我們的董事長兼首席執行官克里斯·富蘭克林(Chris Franklin) 進行電話會議，他將介紹公司的最新情況，然後我們的首席財務官丹·舒勒(Dan Schuller) 將介紹財務表現的最新情況，然後克里斯在我們的指導下結束電話會議。

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。

Thanks, Brian, and welcome, everyone. We've got some really exciting news to share with you today. I've got some more color, but let me just run through it in a very, very brief summary on top here.

謝謝布萊恩，歡迎大家。今天我們有一些非常令人興奮的消息要與您分享。我還有更多的顏色，但讓我在上面做一個非常非常簡短的總結。

We had a great quarter financially. We had a strong capital investment so far this year, and we have an approved Pennsylvania gas rate case that included a weather normalization mechanism. We had a settlement in our Pennsylvania water rate case, yielding us $73 million, and we are reinstating our multiyear EPS guidance at a 5% to 7% growth rate through 2027, which importantly does not include DELCORA -- any earnings associated with DELCORA. And then we're also going to talk a little bit about our strong recovery from the Hurricane Helene that hit North Carolina. So a lot of good things to talk about for the quarter. So let me get into the details.

我們的季度財務狀況非常好。今年到目前為止，我們擁有強大的資本投資，我們已經批准了賓州天然氣費率案例，其中包括天氣正常化機制。我們在賓州水費案件中達成了和解，獲得了7,300 萬美元的收益，我們將在2027 年之前恢復多年每股收益指導，成長率為5% 至7%，重要的是，這不包括DELCORA－與DELCORA 相關的任何收益。然後我們還將談談我們從襲擊北卡羅來納州的颶風海倫中的強勁恢復。本季有很多值得討論的好事情。讓我詳細介紹一下。

First, we posted $0.25 in earnings per share for the quarter, which was above expectations. Our capital spending remains right on schedule this year. We invested $932.5 million through the end of the third quarter, and we'll spend about $1.3 billion to $1.4 billion to improve water, wastewater and natural gas infrastructure this year. Dan will get into more details about the financials for the quarter in just a few minutes.

首先，我們公佈本季每股收益 0.25 美元，高於預期。今年我們的資本支出仍按計劃進行。截至第三季末，我們投資了 9.325 億美元，今年我們將花費約 13 億至 14 億美元來改善水、廢水和天然氣基礎設施。丹將在幾分鐘內詳細介紹本季的財務狀況。

So in September, the Pennsylvania PUC unanimously approved the first rate case for people's natural gas under our ownership. The approval included an annualized revenue increase of $93 million and a weather normalization mechanism. You probably know this mechanism because others have it. It's designed to provide greater financial stability and predictability for both our customers and our investors by mitigating the financial volatility associated with abnormal weather impacts.

因此，9 月，賓州 PUC 一致批准了我們擁有的人民天然氣的一級案例。該批准包括年化收入增加 9,300 萬美元和天氣正常化機制。您可能知道這種機制，因為其他人也有它。它旨在透過減輕與異常天氣影響相關的財務波動，為我們的客戶和投資者提供更大的財務穩定性和可預測性。

I know you'll recall that both this year and last year have been unusually warm weather and have impacted our results. However, it could have just easily gone the other way, and we could have had two abnormally cold years, which would have negatively impacted our customers. So this new mechanism will provide the ability to mitigate these abnormalities in weather and should assist with reducing the volatility for all parties going forward.

我知道您會記得，今年和去年的天氣都異常溫暖，影響了我們的結果。然而，情況也可能很容易走向相反的方向，我們可能會經歷異常寒冷的兩年，這將對我們的客戶產生負面影響。因此，這項新機制將能夠減輕這些天氣異常現象，並有助於減少各方未來的波動性。

Now I do want to mention that the office of the consumer advocate filed a petition for review of the approval and the PNG case. Dan will talk a little bit more about that in a minute, but I did want to mention that.

現在我想提一下，消費者權益倡導辦公室提交了一份請願書，要求審查批准和巴布亞新幾內亞案件。丹稍後會詳細討論這一點，但我確實想提一下。

Let's also talk about the water rate case, the Aqua Pennsylvania rate case. We filed our briefs on October 28. And in those documents, you'll see that we have a settlement agreement designed to provide a total annualized revenue increase of $73 million from our water and wastewater operations.

我們也可以談談水費案例，賓州水費案例。我們於 10 月 28 日提交了簡報。

We expect the settlement agreement to be filed formally on November 7, and available on the PUC website at that time. It's important to note that this settlement agreement, as all settlements would be, remains subject to a recommended decision by the administrative law judges and approval by the PUC.

我們預計和解協議將於 11 月 7 日正式提交，屆時可在 PUC 網站上查看。值得注意的是，與所有和解協議一樣，和解協議仍需經過行政法法官的建議決定和 PUC 的批准。

I should also mention that East Whiteland, you'll recall that acquisition, it's a wastewater acquisition in Pennsylvania, was excluded from the settlement and will be fully litigated in front of the PUC, with an expected decision on that coincident with the rate case decision in February.

我還應該提到東懷特蘭，你會記得那次收購，這是賓州的廢水收購，被排除在和解之外，並將在 PUC 面前進行全面訴訟，預期的決定與費率案件的決定一致二月。

Now on the next slide, our significant progress on the two Pennsylvania rate cases have provided us the opportunity to reestablish long-term guidance. This guidance, which I'll review in more detail later, includes EPS growing at a compound annual growth rate of 5% to 7% for the next three years, that's through 2027, continue rate base growth of over 8% combined, and our continued commitment to improving and upgrading water, wastewater and natural gas infrastructure by investing $7.8 billion over the next five years through 2029.

現在在下一張投影片上，我們在賓州的兩個利率案例上取得的重大進展為我們提供了重新建立長期指導的機會。我稍後將更詳細地審查該指導意見，其中包括未來三年（即到2027 年）每股收益以5% 至7% 的複合年增長率增長，繼續保持超過8% 的綜合利率基礎增長率，並且我們的繼續致力於改善和升級供水、廢水處理和天然氣基礎設施，在未來五年至 2029 年期間投資 78 億美元。

Importantly, we expect to achieve this EPS growth without including [any action] to the EPS from the DELCORA transaction. So to be clear, we remain confident that our valid and enforceable asset purchase agreement will ultimately prevail and that we will close the DELCORA transaction, but we want to remove any potential overhang that might be associated with the delayed closing of DELCORA so we've taken it out of our numbers.

重要的是，我們預計在不包括對 DELCORA 交易中每股收益的[任何行動]的情況下實現每股收益成長。因此，需要明確的是，我們仍然相信我們有效且可執行的資產購買協議最終將獲勝，並且我們將完成 DELCORA 交易，但我們希望消除可能與 DELCORA 延遲關閉相關的任何潛在懸而未決的問題，因此我們把它從我們的數字中刪除。

And we believe this guidance communicates the right balance of growth for our investors built on the right level of infrastructure investment that ultimately results in rates that are affordable for our customers. So truly a win-win. As this slide indicates, we've consistently executed our plan to grow earnings between 5% and 7% every year.

我們相信，該指南為我們的投資者傳達了建立在適當水平的基礎設施投資基礎上的正確成長平衡，最終為我們的客戶帶來了可以承受的利率。所以真正是雙贏。正如這張投影片所示，我們始終如一地執行每年將收入成長 5% 到 7% 的計畫。

We've delivered these results despite elevated inflation, higher interest rates, and some of the warmest weather on record in our natural gas territory. Hopefully, our most recent achievements and the continued strong results indicated on this slide, underscore our ability to execute and our regulatory credibility in the jurisdictions where we operate.

儘管通貨膨脹率上升、利率上升以及我們的天然氣領域出現了有史以來最溫暖的天氣，但我們仍然取得了這些成果。希望我們最近的成就和這張投影片上顯示的持續強勁業績能夠強調我們的執行能力以及我們在經營所在司法管轄區的監管信譽。

All right. Just to take a moment, we were hit hard by the hurricane, and so many people worry in our country, particularly in the South. I want to talk a little bit about the impact of Hurricane Helene on our North Carolina operations.

好的。順便說一句，我們受到了颶風的嚴重打擊，我們國家有很多人感到擔憂，特別是在南方。我想談談颶風海倫對我們北卡羅來納州業務的影響。

Thankfully, our team was quick to respond, clearing trees and other debris, that allowed us to do some damage assessments early on after the storm had passed. We prioritized communications with our customers, most importantly, providing regular updates through our disruption map and other forms of electronic communication and physical communication, signage, et cetera.

值得慶幸的是，我們的團隊迅速做出反應，清除了樹木和其他碎片，這使我們能夠在風暴過去後儘早進行一些損失評估。我們優先考慮與客戶的溝通，最重要的是，透過我們的中斷地圖以及其他形式的電子通訊和實體通訊、標牌等提供定期更新。

We also dispatched a special reconnaissance team equipped with drones to inspect damage in areas that were either inaccessible or unsafe, particularly in the more mountainous communities where we serve. Now in total, 90 of our systems in North Carolina were impacted. But through really strong work by our teams, all but 6 systems were back up in just 5 days after the storm. And as of October 19, everything was back in power and repaired and fully functional. We're grateful for the patience of our customers and the understanding they provided, and we also appreciate the dedication and extensive work effort of our North Carolina team.

我們還派遣了一支配備無人機的特種偵察隊，前往無法進入或不安全的地區檢查受損情況，特別是在我們服務的山區社區。現在，我們在北卡羅來納州的 90 個系統總共受到了影響。但透過我們團隊的大力工作，風暴過後僅 5 天，除 6 個系統外的所有系統都已恢復正常。截至 10 月 19 日，一切已恢復供電並已修復且功能齊全。我們感謝客戶的耐心和理解，也感謝北卡羅來納州團隊的奉獻精神和廣泛的工作努力。

And with that, let me turn to Dan, and he's going to cover our financials for the quarter and some regulatory matters. Dan?

接下來，讓我轉向丹，他將介紹我們本季的財務狀況和一些監管事宜。擔？

Thanks, Chris, and good morning, everyone. As Chris mentioned, we're pleased with the financial results for the quarter. On this slide, I'll discuss high-level Q3 financial highlights, and then I'm going to into the details with the waterfall.

謝謝克里斯，大家早安。正如克里斯所提到的，我們對本季的財務表現感到滿意。在這張投影片上，我將討論第三季的高級財務亮點，然後我將詳細介紹瀑布。

Our revenues for the third quarter of 2024 were $435.3 million, marking an increase of about 6% compared to $411.3 million in the third quarter of 2023. This increase was driven by rates and surcharges, increased water sales, an increase in the price of gas, and water customer growth. These factors far offset the minor revenue decline from lower natural gas sales.

我們2024 年第三季的營收為4.353 億美元，與2023 年第三季的4.113 億美元相比成長約6%。的，並澆灌客戶成長。這些因素遠遠抵消了天然氣銷售下降造成的收入小幅下降。

The quarterly operations and maintenance expenses decreased for the third quarter compared to the third quarter of 2023. This decrease was primarily due to a reduction in bad debt expense and a decrease in expenses associated with the West Virginia gas utility assets, and the Pittsburgh area energy projects, both of which we have divested.

與 2023 年第三季相比，第三季的季度營運和維護費用有所下降。剝離了這兩個項目。

We achieved quarterly earnings per share of $0.25, which compared to $0.30 in earnings per share in the third quarter of 2023. So while we had an increase in revenue and a decrease in O&M expenses, last year's EPS in the third quarter was positively impacted by significant onetime tax repair benefits associated with the natural gas Safe Harbor, which, of course, didn't repeat this year.

我們的季度每股收益為0.25 美元，而2023 年第三季的每股收益為0.30 美元。收益受到了與天然氣安全港相關的重大一次性稅收修復優惠，當然，今年沒有重複。

Next, let's look at the waterfall. It's going to be first, the revenue waterfall. Moving left to right, we have regulatory recoveries of over $11 million, with the vast majority of this increase coming from the regulated water segment, plus over $10 million in increased water segment volumes and about $4 million coming from an increase in purchased gas costs as well as acquisitions and organic growth in the water business. This was offset slightly by lower volume of gas sales due to the warmer-than-normal weather as well as the other category.

接下來我們來看瀑布。首先是收入瀑布。從左到右，我們的監管追回金額超過1,100 萬美元，其中絕大多數成長來自受監管的水部門，加上超過1,000 萬美元的水部門增加量，約400 萬美元來自購買天然氣成本的增加，以及水務業務的收購和有機成長。由於天氣比正常溫暖以及其他類別導致天然氣銷售量下降，略有抵消了這種影響。

Revenues from the regulated water segment increased just shy of 8% for the third quarter of 2024 compared to the same period in 2023. We saw excessive warm and dry weather at various times in the mid-Atlantic as well as in Ohio, which in turn led to higher water volume, but we experienced lower consumption in Texas and in North Carolina.

與 2023 年同期相比，2024 年第三季監管水部門的收入增長了略低於 8%。水量增加，但德克薩斯州和北卡羅來納州的消耗量較低。

Next, let's look at the O&M on Slide 10. We saw a relatively modest increase of approximately $1.6 million in water production costs due to the higher volumes previously discussed. And among the smaller increases to O&M were the impact of the customer rider in the gas business, routine increases in employee-related costs and customer growth in the water segment.

接下來，讓我們看看投影片 10 上的 O&M。營運和維護規模較小的成長包括天然氣業務中客戶附加費的影響、員工相關成本的日常增加以及水務領域的客戶成長。

The overall reduction to O&M costs primarily due to a decrease in bad debt expenses and a reduction in expenses related to the now divested West Virginia gas utility assets and the Pittsburgh area energy project. Importantly, our year-to-date O&M performance is quite strong, expenses only up about 1% over the previous year, which demonstrates our continued commitment to operating efficiency.

營運和維護成本的整體下降主要是由於壞帳費用的減少以及與現已剝離的西維吉尼亞州天然氣公用事業資產和匹茲堡地區能源項目相關的費用的減少。重要的是，我們今年迄今的維運業績相當強勁，費用僅比上年增長約1%，這顯示我們對營運效率的持續承諾。

Next, let's look at the EPS waterfall on slide 11. Starting on the left of the EPS waterfall with $0.30 from last year, the next thing we see is the nearly $0.03 increase from regulatory recovery and close to $0.03 from increased water volume, the benifit of $0.006 from the decline in expenses and $0.003 in customer growth in the Water segment.

接下來，讓我們看看幻燈片11 上的EPS 瀑布。增加帶來的近0.03 美元的成長，即收益水部門費用下降 0.006 美元，客戶成長 0.003 美元。

These increases were offset slightly by decreased gas consumption and then more materially by nearly $0.11 from other, which reflects lower tax repair benefits and increased depreciation and interest expenses. As I noted earlier, the lower repair tax benefits this year are mainly the result of the timing of the natural gas Safe Harbor impact in 2023.

這些增長被天然氣消耗量的減少略微抵消，然後更實質地被其他費用近 0.11 美元所抵消，這反映了稅收修復福利的減少以及折舊和利息支出的增加。正如我之前指出的，今年維修稅優惠較低主要是由於 2023 年天然氣安全港影響的時間安排所致。

In conclusion, we're pleased with the performance for the quarter, given strong results in the water business and slightly lower expenses year-over-year. More importantly, we remain on track per year, in line with our guidance and investor expectations once we adjust for the sale of the energy project and normalized weather for the gas business.

總而言之，我們對本季的業績感到滿意，因為水務業務取得了強勁的業績，而且費用同比略有下降。更重要的是，一旦我們根據能源項目的銷售和天然氣業務正常化的天氣進行調整，我們每年都會保持正軌，符合我們的指導和投資者的預期。

Let's review the guidance we provided in February, updated in May and reconfirmed in August as well as today. We provided guidance for 2024 net income per diluted common share to be $1.96 to $2. We expect to achieve this once we consider the gain on sale and weather impact.

讓我們回顧一下我們在 2 月提供、5 月更新、8 月以及今天再次確認的指南。我們預計 2024 年稀釋普通股淨利為 1.96 至 2 美元。一旦考慮到銷售收益和天氣影響，我們預計就能實現這一目標。

So think about it this way, due to the energy project sale, GAAP earnings per share will exceed our guidance range, but if we subtract the $0.24 gain from that figure and add back $0.08 to reflect the warmer-than-normal weather in Q1 and Q2, we'd expect to result into the $1.96 to $2 EPS guidance range. As Chris mentioned, in 2024, we expect to invest between $1.3 billion and $1.4 billion. We're on track to do this as we've already invested over $932 million through September.

因此，這樣想吧，由於能源項目的出售，公認會計準則每股收益將超過我們的指導範圍，但如果我們從該數字中減去0.24 美元的收益，再加上0.08 美元，以反映第一季度比正常情況溫暖的天氣，第二季度，我們預計 EPS 指引範圍為 1.96 美元至 2 美元。正如 Chris 所提到的，到 2024 年，我們預計將投資 13 億至 14 億美元。我們預計將實現這一目標，因為截至 9 月我們已投資超過 9.32 億美元。

Turning to the next slide, let's look at regulatory activity. The Pennsylvania natural gas, or PNG rate case, was filed in December 2023, and we received an order from the Pennsylvania Public Utility Commission back in September. This order included an annualized revenue increase of $93 million, mainly due to the doubling of rate base, due to replacing aging infrastructure since the last case as well as weather normalization, which is good for both customers and investors. This order also fully incorporates the repair tax benefit into the revenue requirement, thus benefiting our customers.

轉向下一張投影片，讓我們看看監管活動。賓州天然氣（或 PNG 費率）案件於 2023 年 12 月提起，我們早在 9 月就收到了賓州公用事業委員會的命令。該訂單包括年化收入增長 9300 萬美元，主要是由於更換了上次案例以來老化的基礎設施以及天氣正常化，費率基數翻了一番，這對客戶和投資者都有好處。該訂單還將維修稅優惠完全納入收入要求中，從而使我們的客戶受益。

This case has a fully projected future test year that extends through September of 2025. Rates went into effect on September 27, so you'll see the increased revenue from the rate case in our Q4 results. Unfortunately, as Chris mentioned, in a highly unusual action, one of the parties that didn't sign on to the settlement agreement, the Office of the Consumer Advocate, has appealed the PUC's order to the Commonwealth Court and is asked for a remand to the PUC, essentially claiming that the PUC needed to include more information to support its findings to approve the rate case.

該案例有一個完整預計的未來測試年，持續到 2025 年 9 月。 費率於 9 月 27 日生效，因此您將在我們的第四季度結果中看到該費率案例帶來的收入增加。不幸的是，正如克里斯所提到的，在一項極不尋常的行動中，未簽署和解協議的當事方之一——消費者權益保護辦公室——已就PUC 的命令向聯邦法院提出上訴，並被要求發回重審。

We believe that the order is very sound, while based on a nonunanimous settlement with all parties, except for the OCA, it was supported by both the administrative law judge and the commissioners who voted [5-0] to approve the order. We'll be supporting the commission and its order on appeal, and we're closely monitoring the situation. The company does not expect accounting implications related to this appeal process.

我們認為該命令非常合理，雖然基於與 OCA 之外的所有各方達成的非一致和解，但它得到了行政法法官和委員的支持，他們投票 [5-0] 批准了該命令。我們將支持該委員會及其上訴命令，並且我們正在密切關注事態發展。該公司預計此次上訴程序不會對會計產生影響。

Moving on to the next slide. As Chris mentioned, we've reached a settlement for the rate case that we filed for Aqua Pennsylvania in May of 2024. The settlement would be reviewed by the assigned administrative law judge and then the commission. Once approved, we expect the new rates from this settlement to go into effect in February of 2025. This rate case includes a fully projected test year through the end of 2025.

轉到下一張投影片。正如 Chris 所提到的，我們已就 2024 年 5 月向 Aqua賓州提起的費率案件達成和解。一旦獲得批准，我們預計和解中的新費率將於 2025 年 2 月生效。

The settlement is designed to provide an annualized revenue increase of $73 million on the water and wastewater operation. It's important to note the East Whiteland wastewater system is excluded from this settlement, and thus is being addressed separately, but we'll conclude with the rate case outcome in February.

和解協議旨在使供水和廢水處理業務的年收入增加 7,300 萬美元。值得注意的是，東懷特蘭廢水系統不包括在該和解範圍內，因此將單獨解決，但我們將在 2 月得出費率案例結果。

Moving on to the next slide. In 2024, our regulated water segment received rate orders or infrastructure surcharges in several states, including Illinois, New Jersey, Ohio, North Carolina, Texas, Virginia and Pennsylvania totaling $51 million. This does not include the settled rate amount for the Aqua Pennsylvania case that we discussed a moment ago.

轉到下一張投影片。 2024 年，我們的監管水部門在伊利諾伊州、新澤西州、俄亥俄州、北卡羅來納州、德克薩斯州、維吉尼亞州和賓夕法尼亞州等多個州收到了總計5,100 萬美元的費率指示或基礎設施附加費。這不包括我們剛才討論的賓州水族案件的和解費率金額。

Our regulated natural gas segment also received infrastructure surcharges in Kentucky and Pennsylvania totaling approximately $22 million, in addition to the $93 million that we just discussed, for a total of approximately $115 million in increased annualized revenue.

除了我們剛才討論的 9,300 萬美元之外，我們的受監管天然氣部門還在肯塔基州和賓州收到了總計約 2,200 萬美元的基礎設施附加費，年化收入總共增加了約 1.15 億美元。

Looking ahead, we currently have rate cases or infrastructure surcharges pending in Illinois and Ohio and the pending Aqua Pennsylvania rate case settlement for our regulated water segment. Combined, the revenue request in these cases is $149.2 million. We also have an infrastructure surcharge spending in Kentucky in the amount of $465,000 for our regulated gas segment.

展望未來，我們目前在伊利諾伊州和俄亥俄州有懸而未決的費率案件或基礎設施附加費，以及我們的監管水部門懸而未決的 Aqua 賓州費率案件和解。這些案例中的收入請求總計為 1.492 億美元。我們還在肯塔基州為我們的受監管天然氣部門支付了 465,000 美元的基礎設施附加費。

With that, I'll hand the mic back to Chris.

說完，我會把麥克風還給克里斯。

All right. Thanks, Dan, and let me talk a little bit about growth. As of this call, we have seven signed asset purchase agreements across three states: Pennsylvania, Texas and Ohio, in which we already have existing water and wastewater operations. These agreements are projected to add over 213,000 customers or customer equivalents and total approximately $360 million in purchase price.

好的。謝謝丹，讓我談談成長。截至本次電話會議，我們已在賓州、德州和俄亥俄州這三個州簽署了七項資產購買協議，我們在這些州已經擁有現有的供水和廢水處理業務。這些協議預計將增加超過 213,000 名客戶或同等客戶，總購買價約為 3.6 億美元。

And just a reminder that the Federal Bankruptcy Court judge and the bankruptcy of the City of Chester continues to have a stay on all proceedings related to DELCORA. But I'll also remind you that we said a couple of times, we've removed all financial impacts from DELCORA in our new EPS guidance.

只是提醒一下，聯邦破產法院法官和切斯特市破產案繼續中止與 DELCORA 相關的所有訴訟程序。但我還要提醒您，我們多次說過，我們已在新的每股盈餘指南中消除了 DELCORA 的所有財務影響。

Now you'll notice that we recently signed a deal with Integra Water to acquire the wastewater system in Los Milagros, Texas. This system is expected to add about 1,100 customers to our network and comes with a purchase price of about $4.4 million. We've also entered into an agreement with the village of Midvale to acquire their water system in Midvale, Ohio. This system is expected to add about 900 customers to our network and has a purchase price of $3 million.

現在您會注意到，我們最近與 Integra Water 簽署了一項協議，收購德克薩斯州洛斯米拉格羅斯的廢水系統。該系統預計將為我們的網路增加約 1,100 名客戶，購買價格約為 440 萬美元。我們也與米德維爾村達成協議，收購俄亥俄州米德維爾的供水系統。該系統預計將為我們的網路增加約 900 名客戶，採購價格為 300 萬美元。

Now although a couple of these most recent systems are on the small side, we continue to have a robust pipeline of potential water and wastewater municipal acquisitions that we are actively pursuing. These potential acquisitions continue to represent nearly 400,000 total customers and will result in a significant expansion of our current customer base, assuming we get them completed.

現在，儘管其中一些最新的系統規模較小，但我們仍然擁有強大的潛在水和廢水處理市政收購管道，我們正在積極尋求這些收購。這些潛在的收購將繼續代表近 40 萬名客戶，假設我們完成這些收購，將導致我們目前客戶群的顯著擴大。

Now since 2015, our growth by acquisition strategy has allowed us to add over $500 million in rate base and more than 129,000 new customers or customer equivalents to our footprint. In addition to municipal growth activity, we're seeing great developer opportunities in several of our states, especially in Texas and North Carolina. Really worth mentioning. In the past three years, we've negotiated deals with Texas developers to be the water and/or wastewater utility operator and owner for communities that are expected to build over 30,000 homes.

自 2015 年以來，我們透過收購策略實現的成長使我們的費率基礎增加了超過 5 億美元，並增加了超過 129,000 個新客戶或同等客戶。除了市政發展活動外，我們還在幾個州看到了巨大的開發商機會，尤其是德克薩斯州和北卡羅來納州。確實值得一提。在過去三年中，我們與德州開發商談判達成了協議，成為預計將建造 30,000 多套住宅的社區的供水和/或廢水公用事業營運商和所有者。

Growth like this is as valuable as any acquisition we would do. Texas has been growing significantly over the last 20 years. And you've probably seen the numbers, adding roughly 1 million people every two years. And so also of note is that our service territory is within what they call the Texas Triangle. This is the most rapidly growing areas of Texas, including Austin, San Antonio, Houston, and the Dallas-Fort Worth Metroplex.

這樣的成長與我們所做的任何收購一樣有價值。德克薩斯州在過去 20 年裡一直在顯著增長。您可能已經看到這些數字，每兩年增加約 100 萬人。同樣值得注意的是，我們的服務區域位於他們所說的德州三角區內。這是德州發展最快的地區，包括奧斯汀、聖安東尼奧、休士頓和達拉斯-沃斯堡大都會。

All right. In closing, let me share with you our multiyear financial and growth guidance. You've heard some of it already. We are reestablishing guidance as promised, and we believe it will give you a clear line of sight to the opportunities in front of us. In 2025, we expect earnings per share to be between $2.07 and $2.11.

好的。最後，讓我與您分享我們的多年財務和成長指引。你已經聽過其中一些了。我們正在按照承諾重新建立指導，我們相信這將使您對我們面前的機會有清晰的認識。 2025 年，我們預計每股盈餘將在 2.07 美元至 2.11 美元之間。

Importantly, now that we have a weather normalization mechanism in place, the volatility in earnings associated with unusual weather should be dramatically reduced. We're guiding longer-term EPS at a compounded annual growth rate of 5% to 7%, and that is for the three-year period through 2027. Once again, this does not include DELCORA.

重要的是，既然我們已經建立了天氣正常化機制，那麼與異常天氣相關的收入波動應該會大大減少。我們指導長期每股收益的複合年增長率為 5% 至 7%，這是截至 2027 年的三年期間。

As we look to the next five years through 2029, we plan to make regulated infrastructure investment of about $7.8 billion. We expect our 2025 capital spending on infrastructure to be approximately $1.4 billion to $1.5 billion. Through 2029, we expect the regulated water segment rate base growth at a compound annual growth rate of about 6%. This projection only includes the acquisitions listed on the previous slide and are scheduled to close in 2025 and excludes DELCORA. This projection does include the crucial work that we're doing to remediate PFAS across the systems we currently own and operate.

展望未來五年（截至 2029 年），我們計劃進行約 78 億美元的受監管基礎設施投資。我們預計 2025 年基礎設施資本支出約為 14 億至 15 億美元。到 2029 年，我們預計監管水業務​​的成長率基礎成長率約為 6% 的複合年增長率。該預測僅包括上一張投影片中列出的預計於 2025 年完成的收購，不包括 DELCORA。該預測確實包括我們為修復我們目前擁有和運營的系統中的 PFAS 所做的重要工作。

For our regulated natural gas segment, we expect the rate base to grow at a compound annual growth rate of approximately 11% through 2029. I'll tell you, the team continues to amaze us with their ability to execute on their capital plans, and we have the opportunity to continue the important work of replacing aging natural gas pipes well past the next decade.

對於我們受監管的天然氣細分市場，我們預計到 2029 年，費率基數將以約 11% 的複合年增長率增長。有機會在未來十年繼續進行更換老化天然氣管道的重要工作。

On a combined basis, that's water and gas, we project rate base growth at a compound annual growth rate of over 8% through 2029. This growth will be driven by our ongoing investments in infrastructure and our commitment to operational excellence. I would expect that when we look back in five years on what we've done, we will have completed even more given the acquisition pipeline that is not factored into our rate base growth projections.

在水和天然氣的綜合基礎上，我們預計到 2029 年，費率基礎成長率將超過 8%。我預計，當我們在五年後回顧我們所做的事情時，我們將完成更多的工作，因為收購管道並未納入我們的利率基礎成長預測。

We believe that the growth we're describing can be accomplished while we keep customer rates at affordable levels. We anticipate that our water customer base will continue to grow at an average annual growth rate of between 2% and 3% over the long term because of the continued consolidation opportunity in water, wastewater and strong organic customer growth, especially in Texas and North Carolina. We expect our regulated natural gas customer base to remain stable.

我們相信，當我們將客戶價格保持在可負擔的水平時，我們所描述的成長是可以實現的。我們預計，由於水、廢水處理領域的持續整合機會和強勁的有機客戶成長，特別是在德克薩斯州和北卡羅來納州，我們的水客戶群長期將以年均2% 至3% 的速度繼續增長。我們預計我們的受監管天然氣客戶群將保持穩定。

Now to support our growth and meet our credit metrics, we plan to raise equity through our multiyear ATM program through 2027. Specifically, between 2024 and 2025, we expect to issue approximately $350 million in equity through the ATM. I know that that's probably smaller than some of you expected, but we believe our strong regulatory outcomes allow us now to do about $350 million between the two years, and we believe that, that will satisfy our capital needs, fund our growth initiatives, and maintain a strong balance sheet and credit profile.

現在，為了支持我們的成長並滿足我們的信用指標，我們計劃在2027 年之前透過多年ATM 計畫籌集股本。 。我知道這可能比你們中的一些人預期的要小，但我們相信，我們強有力的監管成果使我們現在能夠在兩年之間獲得約3.5 億美元的資金，我們相信，這將滿足我們的資本需求，為我們的成長計畫提供資金，並維持強勁的資產負債表和信用狀況。

I'll tell you, we remain committed to our sustainability goals as we outlined in our annual sustainability report. And we're just very, very excited about providing all this guidance to you today. We are very optimistic about the future of our company and the opportunities that lie ahead.

我告訴您，我們仍然致力於實現我們在年度永續發展報告中概述的永續發展目標。我們非常非常高興今天向您提供所有這些指導。我們對公司的未來和未來的機會非常樂觀。

And so with that, I look forward to your questions. And operator, please open the line for questions.

因此，我期待您的提問。接線員，請打開線路提問。

(Operator Instructions)

（操作員說明）

Julien Dumoulin-Smith, Jefferies.

朱利安·杜穆蘭-史密斯，杰弗里斯。

Good morning. Chris, Dan, the whole team here, guys, really incredible outcome here. Really nicely done to get back on that EPS CAGR horse. So kudos on that pivot.

早安.克里斯、丹、這裡的整個團隊、夥計們，這裡的結果真的令人難以置信。重返 EPS CAGR 的馬匹，真的做得很好。所以對這個樞軸讚不絕口。

With that said, guys, a lot of comments here. I want to come back to a couple of them. On the equity financing expectations, just want to understand, am I seeing a little bit of a shift here? I mean in terms of '24 and pushing into '25 a little bit, with this $350 million between '24 and '25.

話雖如此，夥計們，這裡有很多評論。我想回到其中的幾個。關於股權融資預期，我想了解一下，我是否看到了一些轉變？我的意思是從 24 年開始，稍微推進到 25 年，在 24 年到 25 年之間花費了 3.5 億美元。

And how do you think about that fitting with the rating agencies out there? I just want to speak to -- having reviewed the new plan with Moody's potentially, how are they reacting? How are you thinking about your equity timing with their outlook as it stands?

您如何看待與評級機構的配合？我只想談談——在與穆迪潛在審查了新計劃後，他們有何反應？根據他們目前的前景，您如何看待您的股權時機？

Yeah. Thanks, Julien. It's Dan here. So we're staying quite close to the rating agencies at this point in time just to make sure that we are in sync. And what we put out here is that we would raise $350 million between '24 and '25. And so we stood up the ATM back in August, we raised some equity on that already and then it gives us the opportunity to pick the advantageous times between now and the end of 2025 to raise the $350 million that we noted.

是的。謝謝，朱利安。這裡是丹。因此，我們目前與評級機構保持著非常密切的聯繫，只是為了確保我們保持同步。我們在此宣布，我們將在 24 年至 25 年間籌集 3.5 億美元。因此，我們在 8 月就設立了 ATM，我們已經籌集了一些股權，然後這讓我們有機會選擇從現在到 2025 年底之間的有利時機來籌集我們注意到的 3.5 億美元。

We feel confident that Moody's feels good about our plan.

我們相信穆迪對我們的計劃感到滿意。

Correct. Thanks, Chris.

正確的。謝謝，克里斯。

Got it. Is that any kind of subtle shift from your earlier $1 billion multiyear equity? Just to dig it out a second further.

知道了。這與您之前 10 億美元的多年期股權相比是否存在某種微妙的轉變？只是為了再進一步挖掘它。

Well, when we put that -- when we talked about the $1 billion, and we put the $1 billion ATM in place, what we said was that we would use that over an approximately three-year period of time, depending on acquisitions and other facts. Really see it as a pivot at all or changed from what we had indicated before.

好吧，當我們談到 10 億美元時，我們將 10 億美元的 ATM 投入到位，我們所說的是，我們將在大約三年的時間內使用它，具體取決於收購和其他方面的情況。事實。確實將其視為支點，或與我們之前指出的有所不同。

And we hope if we're raising that kind of equity, we're doing some really nice acquisitions. So it gives us some optionality, Julien.

我們希望，如果我們籌集這種股權，我們就能進行一些非常好的收購。所以它給了我們一些選擇，朱利安。

Yes, absolutely. In fact, do you want to speak to that because I've (technical difficulty) the equity expectations under the base versus your updated thinking about core or some of these acquisitions, right? I mean what is sort of that ex-M&A dynamic on equity versus inclusive?

是的，絕對是。事實上，您是否想談論這一點，因為我已經（技術難度）基礎下的股權預期與您對核心或其中一些收購的最新想法相比較，對吧？我的意思是，股權與包容性方面的前併購動態是什麼樣的？

And then I know you mentioned DELCORA here as being kind of incremental in the cerry on top of you. Is there a sense that as far as you're concerned that you could get this in a given time? Or are you going to hold us from providing any more prescriptive timeline at this point?

然後我知道你在這裡提到 DELCORA 是一種對你的好處的增量。是否有一種感覺，就你而言，你可以在給定的時間內得到它？或者您現在會阻止我們提供更多規定性的時間表嗎？

Yeah. The way I think about it is we have a very strong asset purchase agreement, as you know, has been declared by several levels of courts to be valid and enforceable. The frustrating part is this federal bankruptcy court judge, not even on DELCORA. Obviously, it's on the City of Chester. And so we have no control over that.

是的。我的想法是，我們有一個非常強大的資產購買協議，正如你所知，已經被各級法院宣佈為有效且可執行。令人沮喪的是這位聯邦破產法院法官，甚至不是 DELCORA 的法官。顯然，這是在切斯特市。所以我們對此無法控制。

Now there is a hearing later this week. And we do believe that the stay will be lifted on the Supreme Court's ability to determine who is the owner of the Chester Water Authority. So that's helpful. We need to get to stay lifted on PUC proceedings on DELCORA. But given the fact that we're not in control, it's difficult for us to have the influence.

本週晚些時候將舉行聽證會。我們確實相信，最高法院有能力確定誰是切斯特水務局的所有者，而中止將被取消。所以這很有幫助。我們需要繼續關注 DELCORA 的 PUC 程序。但由於我們無法控制，所以我們很難產生影響。

And so we backed that out of our numbers for that reason. But most certainly, if we can get that stay lifted and get it moving at publicity Commission, we look confident that it will -- remember, it's a onetime rate base case so that new RR won't really have any influence and this should fit nicely with it.

因此，出於這個原因，我們從我們的數據中支持了這一點。但最肯定的是，如果我們能夠保持這種狀態並在宣傳委員會上推動它，我們看起來有信心它會——記住，這是一次性的利率基本情況，因此新的RR 不會真正產生任何影響，這應該適合很好地配合它。

And if we were to do that, if we could move forward, call that in late '25, '26, then most certainly, we deal with this and we want to be able to have access to ways to raise that equity. It gives us optionality. When we put that ATM in place at that size, we really thought about how do we do this efficiently? How do we save legal costs? And how do we set these things up a matter where we had access to it even if we didn't need to use the entirety of it?

如果我們要這樣做，如果我們能夠繼續前進，在 25 年末、26 年末進行，那麼我們肯定會處理這個問題，並且我們希望能夠找到提高股權的方法。它給了我們選擇權。當我們安裝如此大小的 ATM 機時，我們真正考慮過如何有效地做到這一點？我們如何節省法律費用？即使我們不需要使用全部內容，我們如何將這些內容設定為我們可以存取它們的位置？

And I guess, Julien, what I would add is when we put that out there, we talked about the three years, it's a multiyear program, but it did contemplate at the time that we would have acquisitions in there. So what I wouldn't do if I were you to say, are you at $1 billion? Now you're allocating $350 million to '24 and '25. So that means $650 million in 2026. I would not go down sort of in that direction. As we said, it's a multiyear program, and it contemplates having some room for acquisitions as well. So --

我想，朱利安，我要補充的是，當我們把它放在那裡時，我們討論了三年，這是一個多年期計劃，但當時確實考慮過我們會在那裡進行收購。那麼，如果我是你，我不會做什麼，你的資產有 10 億美元嗎？現在，您將向 '24 和 '25 分配 3.5 億美元。所以這意味著 2026 年將達到 6.5 億美元。正如我們所說，這是一個多年計劃，也考慮有一些收購空間。所以 -

Got it. And last clarification here. yes, I know it's great. And last clarification. As you pivot out of DELCORA, is that kind of the bulk of the delta here? I know you have the segment rate base CAGR of -- you moved from the 8% to 10% to the 6% and 11%, respectively, for water and gas. Is that kind of reflected principally as a function of pulling DELCORA out there in terms of the composition mix?

知道了。最後澄清一下。是的，我知道這很棒。最後澄清一下。當你從 DELCORA 撤出時，這就是三角洲的大部分嗎？我知道您的細分市場複合年增長率為——水和天然氣的複合年增長率分別從 8% 到 10% 到 6% 和 11%。這是否主要反映為 DELCORA 在成分組合上的表現？

Yes, that is, Julien. So we don't have DELCORA and thus, we don't have any follow on capital related to DELCORA either. As Chris said, we remain extremely confident that we will ultimately close DELCORA and have that in our future, but it's not in the plan.

是的，那就是朱利安。所以我們沒有 DELCORA，因此我們也沒有任何與 DELCORA 相關的資本。正如克里斯所說，我們仍然非常有信心最終將關閉 DELCORA 並在未來實現這一點，但這不在計劃中。

Got it. Excellent. Thank you guys. Appreciate it.

知道了。出色的。謝謝你們。欣賞它。

Durgesh Chopra, Evercore ISI.

杜爾格甚喬普拉 (Durgesh Chopra)，Evercore ISI。

Hey, Chris, and Dan. Good morning. Congrats on the settlement in the water rate case. Well done. Just maybe on equity. Dan, can you clarify, so what have you issued year-to-date? And is that $350 million that [you're guiding] (technical difficulty) --

嘿，克里斯和丹。早安.恭喜水費案達成和解。幹得好。也許只是基於股權。丹，你能澄清一下，今年迄今為止你發布了什麼嗎？ [你正在指導的] 3.5 億美元是不是（技術難度）——

Sorry, you -- it was a little garbled there at the end. We've issued a relatively modest amount of equity between August and now just given blackout periods and some stock price volatility. So we've taken some off of that $350 million, but it's not a tremendous amount.

抱歉，你——最後有點亂碼。考慮到禁售期和一些股價波動，我們從 8 月到現在發行了相對少量的股票。因此，我們從這 3.5 億美元中扣除了一些，但這並不是一個巨大的數字。

Okay. Got it. That's all I wanted to ask. And then just the 5% to 7% EPS growth CAGR. The starting point is just to confirm, is it the 2024 guidance midpoint, is that fair?

好的。知道了。這就是我想問的。然後 EPS 複合年增長率僅為 5% 至 7%。起點只是為了確認，是2024年的指導中點，公平嗎？

Yeah. I guess the way I would think about that. We haven't finished 2024 yet. So we don't yet have the final EPS. And of course, as we've said, it's going to be a number that is above our guidance range because of the sale of the energy project assets. So we don't know the final EPS.

是的。我想我會這樣想。 2024 年我們還沒結束。所以我們還沒有最終的每股盈餘。當然，正如我們所說，由於能源項目資產的出售，這個數字將高於我們的指導範圍。所以我們不知道最終的每股盈餘。

But if you think about it this way, if you think you start with the 2025 EPS guidance range that Chris talked about, the $2.07, $2.11, and then you use the 5% to 7% growth, you can back calculate a 2024 EPS of $1.97 or you can go back further another year and you'd get to $1.86, which was our actual result for 2023. So that should provide you with some insights into how we're thinking about it.

但如果你這麼想的話，如果你認為你從克里斯談到的 2025 年 EPS 指導範圍開始，即 2.07 美元、2.11 美元，然後使用 5% 到 7% 的增長，你可以回算 2024 年 EPS 1.97 美元，或者你可以再往前推一年，你會得到1.86 美元，這是我們2023 年的實際結果。

Got it. Okay. That's helpful. Essentially, it's close to the 2024 EPS guidance midpoint, the way you just described it, [$1.97 versus $1.98]. Okay. That's helpful. And then finally, just -- thank you for explaining. I was just going to ask you on the water rate based delta. It looks like it's just not DELCORA, but DELCORA plus future investments in DELCORA that's driving that rate base delta.

知道了。好的。這很有幫助。本質上，它接近 2024 年 EPS 指導中點，正如您剛才所描述的那樣，[1.97 美元對 1.98 美元]。好的。這很有幫助。最後，謝謝你的解釋。我只是想問你關於水費三角洲的問題。看來推動利率基礎增量的不是 DELCORA，而是 DELCORA 以及 DELCORA 的未來投資。

Just one last question for me is just on the Moody's metric basis, Dan. So where do you expect to shake out? I know that they had a negative outlook early in the year and you have this equity plan. Where are you expecting to shake out? Are you expecting to shake out (technical difficulty) threshold as we think about 2025? If you could just clarify that for us.

丹，我的最後一個問題是關於穆迪指標的。那麼你希望在哪裡擺脫困境呢？我知道他們在今年早些時候對前景持負面看法，而你有這個股權計劃。你期待在哪裡擺脫困境？當我們考慮 2025 年時，您是否期望突破（技術難度）門檻？如果您能為我們澄清這一點就好了。

Yes. No, it's a great question. So yes, in 2025, when we've got the additional cash flow created by the PNG and Aqua Pennsylvania rate cases and some other things, we'd expect to see FFOs to debt that are above 12%. And then we'd expect to ultimately have the negative outlook resolved probably into 2026 at some point.

是的。不，這是一個很好的問題。所以，是的，到 2025 年，當我們獲得巴布亞新幾內亞和 Aqua 賓州利率案件以及其他一些事情創造的額外現金流時，我們預計 FFO 的債務比率將超過 12%。然後我們預計負面前景最終可能會在 2026 年某個時候得到解決。

Pulling out our current level.

拉出我們目前的水平。

Correct.

正確的。

Excellent. Well, thank you and congrats again on this solid regulatory process in PA.

出色的。好吧，謝謝您，並再次恭喜賓州這項可靠的監管流程。

Thanks, Durgesh. Take care.

謝謝，杜爾吉什。小心。

Travis Miller, Morningstar.

崔維斯米勒，晨星公司。

Hi, good morning. Thank you. You answered most of my questions. I appreciate all the information, the guidance and such. High-level question and timely here. PFAS, if there were to be a Republican Administration, what are your thoughts, not necessarily in terms of the limits being reconsidered, but implementation timeline and some of the maybe federal aid that would come your way to help with that?

嗨，早安。謝謝。你回答了我的大部分問題。我感謝所有的資訊、指導等等。這是一個高水準的問題，很及時。 PFAS，如果有一個共和黨政府，您有什麼想法，不一定是在重新考慮限制方面，而是在實施時間表和一些可能會為您提供幫助的聯邦援助方面？

Yes. I would say, if anything, we would not expect a backing off on the limit. So the four parts per trillion probably stays in place, at least to our best estimate. But even if there was a slowing in the compliance period, we would expect to continue to meet the current pace. We've talked to our regulators in the states that are particularly impacted by this and regulators, both on the environmental side and on the economic side, have suggested that we stay the course and complete the work and then get it recovered.

是的。我想說的是，如果有的話，我們不會期望在限制上有所退縮。因此，至少按照我們的最佳估計，萬億分之四可能保持不變。但即使合規期有所放緩，我們預計仍將繼續達到目前的速度。我們已經與受此影響特別嚴重的州的監管機構進行了交談，環境方面和經濟方面的監管機構都建議我們堅持到底，完成工作，然後將其恢復。

In the meantime, as you know, we have been in for low interest loans and grants and also sued the polluters, and we'll continue to pursue all of the above.

同時，如您所知，我們一直在申請低利率貸款和贈款，並起訴了污染者，我們將繼續追求上述所有目標。

In terms of federal money, as you probably know, that flows down through the agencies, the SRFs, or state revolving loan funds. And we don't see a big change there in terms of what we -- with the federal money flowing through the states. So I guess no matter who's elected today, we don't expect a big change, and we fully expect to still invest that, call it, roughly $450 million to overcome the PFAS issue. And again, that will be funded in a number of different ways here, as I just suggested.

就聯邦資金而言，正如您可能知道的那樣，這些資金透過各機構、SRF 或州循環貸款基金向下流動。我們並沒有看到聯邦資金流經各州的情況有重大變化。因此，我想無論今天誰當選，我們預計都不會發生大的變化，我們完全希望仍然投資約 4.5 億美元來克服 PFAS 問題。再次強調，正如我剛才所建議的，這將透過多種不同的方式提供資金。

Okay. That's helpful. And then one more kind of bigger picture also on acquisitions. Your big peer kind of is -- I don't know if I don't want to put words in their mouth, but slowed, at least plateaued acquisitions. Clearly, you have plateaued or slowed acquisitions.

好的。這很有幫助。然後是關於收購的另一種更大的圖像。你的大同行是——我不知道我是否不想讓他們說話，但收購速度放緩，至少穩定下來。顯然，您的收購已經趨於穩定或放緩。

Is there something going on fundamentally over the last year or two in the water business where any acquisitions are now reaching a new level, low level? Or I don't know if you could just characterize kind of what we're hearing from kind of the big water utilities on that side.

在過去的一兩年裡，水務行業是否發生了一些根本性的變化，導致任何收購現在都達到了新的水平，較低的水平？或者我不知道你是否可以描述一下我們從那邊的大型水務公司聽到的情況。

Yes. I think in Pennsylvania, most certainly, that is the case, as people figure out how the new regulation will impact them. The new, they call it RRR in Pennsylvania, which is essentially a cap, it's not formally a cap, but it's essentially a cap. I think the transactions that were already in place are being figured out. Can they become across troubled? Do they have to be renegotiated? So that's a little bit of effort for everybody.

是的。我認為在賓州，情況肯定是這樣，因為人們正在弄清楚新法規將如何影響他們。新的，他們在賓夕法尼亞州稱之為 RRR，這本質上是一個上限，它不是正式的上限，但它本質上是一個上限。我認為已經到位的交易正在解決。他們會陷入困境嗎？他們必須重新談判嗎？所以這對每個人來說都是一點點努力。

And then new -- those who are considering selling their systems thinking about, okay, what's my DOC and what's 1.68 times that DOC, and then is that enough for me to sell. We believe from our ongoing discussions that it will be enough for people to continue to sell because it's still a good multiple. And we also believe it will have a positive impact on the ultimate rate impact.

然後是新的——那些正在考慮出售他們的系統的人會思考，好吧，我的 DOC 是多少，DOC 的 1.68 倍是多少，然後這足以讓我出售。從我們正在進行的討論來看，我們相信人們繼續出售就足夠了，因為它仍然是一個不錯的倍數。我們也相信這將對最終的利率影響產生正面的影響。

So I think it's a temporary lull. And I think our ongoing discussions, not only in Pennsylvania, but the other states, would indicate that we see some really positive things in Ohio, Illinois, even down south that hopefully will materialize in the coming year here.

所以我認為這只是暫時的平靜。我認為我們正在進行的討論，不僅在賓夕法尼亞州，而且在其他州，都表明我們在俄亥俄州、伊利諾伊州甚至南部看到了一些真正積極的事情，這些事情預計來年在這裡實現。

Okay. So yes, I understand that's structural in PA, but nothing structural in those other states, like you said, that would indicate something new?

好的。所以，是的，我知道這在賓州是結構性的，但在其他州，沒有什麼結構性的，就像你說的，這表明有什麼新的東西？

Yeah. I feel good about it, Travis. I think we're in a little bit of a lull here, but I do think that it will recover nicely.

是的。我對此感覺很好，特拉維斯。我認為我們現在有點平靜，但我確實認為它會很好地恢復。

Okay, great. I appreciate the thoughts.

好的，太好了。我很欣賞這些想法。

You bet.

你打賭。

David Sunderland, Baird.

大衛桑德蘭，貝爾德。

Hey, good morning. Thank you for the time. Congrats on a very strong quarter and getting the long-term guidance back out there. Just one for me. I was wondering if you guys could talk maybe a bit about how the PUC is handling the separated estimated costs for PFAS. Maybe just any thoughts on if these will go through a similar rate base process and eventually be folded into the rate base? Or just how we think about those costs could be recovered if through a different mechanism, anything there?

嘿，早安。謝謝你的時間。祝賀一個非常強勁的季度並重新獲得了長期指導。只給我一個。我想知道你們是否可以談談 PUC 如何處理 PFAS 的單獨估計成本。也許只是想知道這些是否會經歷類似的費率基礎流程並最終合併到費率基礎中？或者我們如何看待如果透過不同的機制可以收回這些成本？

Yes. Listen, I guess let's start with we're assured that we will get recovery in each of the states where we've made the investments. And I think there's a couple of considerations here. One, how will the proceeds from the lawsuits, which we expect to be in the $100 million range, how will those be treated when those dollars actually come across? We know how they -- generally, how they'll be allocated, but will the commissions want that apply to an offset to rate base? Or will it be offset to O&M? And I don't think that's been fully determined at this point. But in terms of our actual capital investment in that mitigation, Dan, happy to get your opinion on that. But I think there are various approaches depending on the state.

是的。聽著，我想首先我們確信我們進行投資的每個州都會復甦。我認為這裡有幾個考慮因素。第一，我們預計訴訟收益將達到 1 億美元，當這些美元實際到達時將如何處理？我們知道它們如何——一般來說，它們將如何分配，但委員會是否希望將其應用於費率基礎的抵消？還是會抵銷到O&M？我認為目前這一點還沒有完全確定。但就我們在緩解措施方面的實際資本投資而言，丹，很高興聽到您對此的意見。但我認為根據不同的州有不同的方法。

There are various approaches depending on the state, and we're working toward in most of our states, Davis, is really the ability to have deferred accounting treatment on these things. So we would take these investments, we put them on the balance sheet. And then we would either stall depreciation, not start depreciation or we depreciate into this regulatory asset for recovery later.

根據州的不同，有多種方法，戴維斯，我們在大多數州都在努力實現對這些事情進行推遲會計處理的能力。所以我們會把這些投資放在資產負債表上。然後我們要么停止折舊，而不開始折舊，要么我們將折舊計入該監管資產以供稍後恢復。

So that's the typical approach is to look for deferred accounting in other places where we're able to incorporate some of these things into our recovery mechanism in a future looking year.

因此，典型的方法是在其他地方尋找遞延會計，我們能夠在未來一年將其中一些內容納入我們的恢復機制中。

That's super helpful Yeah, that's all for me. Thank you so much, guys. Appreciate it.

這太有幫助了 是的，這就是我的全部。非常感謝你們，夥伴們。欣賞它。

You bet.

你打賭。

Take care.

小心。

Gregg Orrill, UBS

格雷格·奧裡爾，瑞銀

Hi. Yeah, thank you. Could you talk about the process or time line around the Peoples Gas appeal?

你好。是的，謝謝。您能談談 Peoples Gas 呼籲的流程或時間表嗎？

Yeah, that's an unusual one. And so it's an appeal to the Commonwealth Court. And I'll tell you, listen, any time these things come up, you don't like to see them. But it is not -- certainly not a paramount concern to us. It would probably play out over a year, but there's some moving parts to it as well.

是的，這很不尋常。因此，這是向聯邦法院提出的上訴。我會告訴你，聽著，每當這些事情出現時，你都不喜歡看到它們。但這不是——當然不是我們最關心的問題。它可能會持續一年多的時間，但也有一些變化的部分。

Today, being election day, there is a race for attorney general here in Pennsylvania. And the two people running for Attorney General, the Democrat and the Republican, would both be a new attorney general. In other words, the existing attorney general is not running again. And so the one who is appealing this is the consumer advocate who is hired by the Attorney General. So that's another moving part like this consumer advocate not be in place after the two new attorney general candidates, one of them would be elected and then sworn in.

今天是選舉日，賓州將舉行總檢察長競選。競選司法部長的兩個人，民主黨和共和黨人，都將成為新任司法部長。換句話說，現有的總檢察長不會再競選。因此，提出上訴的人是司法部長聘請的消費者權益倡導者。因此，這是另一個令人感動的部分，就像這位消費者權益倡導者在兩位新的總檢察長候選人之後沒有就位一樣，其中一位將當選並宣誓就職。

So I think that's another factor in here, but it would probably play out over a year period. I think probably the most important takeaway is that the high probability even the request of the OCA in this situation is a remand back to the PUC, and they had a [5-0] very strong decision. So I think, in all likelihood, there will be some -- maybe more really support for that decision from the PUC.

所以我認為這是另一個因素，但它可能會在一年內發揮作用。我認為最重要的結論可能是，在這種情況下，即使是 OCA 的請求也很有可能被發回 PUC，並且他們做出了 [5-0] 非常強有力的決定。所以我認為，公用事業委員會很可能會得到一些——也許更多的真正支持——的決定。

Yes, we give an opportunity to document their support of the order [effectively].

是的，我們提供了一個機會[有效地]來記錄他們對該命令的支持。

Makes sense. Congratulations.

有道理。恭喜。

(Operator Instructions)

（操作員說明）

Jonathan Reeder, Wells Fargo.

喬納森·里德，富國銀行。

Hey, Jonathan, good. Morning. Good morning. Thanks for taking my questions. First off, is the entire $73 million water and wastewater base rate increase for the settlement to be effective in late February? Or is it perhaps phased in at all?

嘿，喬納森，很好。早晨。早安.感謝您回答我的問題。首先，為達成和解而增加的 7,300 萬美元的水和廢水基本費率是否會在 2 月底生效？或者說它可能是分階段實施的？

No, that will be implemented at one time in February. I think it's February 20.

不，這將在二月一次性實施。我記得是2月20日。

Okay. So I guess just with the new TA rates in 2025 for both electric and gas, I'm a little surprised that the '25 guidance wasn't a little higher. So maybe can you talk about what the '25 headwinds are to EPS growth that we should be thinking about off of, call it, the original '24 guidance range midpoint of $1.98?

好的。因此，我想，就 2025 年電力和天然氣的新 TA 費率而言，我對 25 年的指導方針並沒有高一點感到有點驚訝。那麼，也許您可以談談我們應該考慮的每股收益增長的 25 年阻力是什麼，稱之為最初的 24 指導範圍中點 1.98 美元？

Yeah. I guess I just touched on maybe one area, Jonathan. We're still in the process of finalizing our budget for 2025. And -- but one thing we are seeing is a few areas where we're having O&M headwinds that we haven't had in the past. And let me take you through a couple of those.

是的。我想我可能只是觸及了一個領域，喬納森。我們仍在敲定 2025 年的預算。讓我帶您了解其中幾個。

One is purchased power. So we've had a very advantageous multiyear agreement in our PJM states for purchased power. That agreement comes to an end here and we'll have -- we have a new contract in effect. And as you know, purchase power prices have increased. And so we're facing that headwind as we go into 2025.

一是外購電力。因此，我們在 PJM 州就購買電力達成了非常有利的多年協議。該協議到此結束，我們將擁有一份生效的新合約。如您所知，購買力價格已經上漲。因此，進入 2025 年我們將面臨這種逆風。

And then we're seeing things like -- another example is chemicals, just some new costs. So we haven't historically had PFAS-related chemicals. We're going to see some costs at our large surface water plants in 2025 to feed powder activated carbon as an O&M expense to reduce PFAS in the water. So that's two areas.

然後我們看到這樣的事情——另一個例子是化學品，只是一些新成本。所以我們歷史上沒有與 PFAS 相關的化學物質。到 2025 年，我們的大型地表水廠將需要投入一些粉末活性碳的成本作為營運和維護費用，以減少水中的 PFAS。這是兩個領域。

And then probably, you've followed some of the news, insurance costs have continued to increase. And so those are a few of the headwinds that, I would say, help to explain our guidance range of the $2.07 to $2.11 for 2025.

然後，您可能已經關注了一些新聞，保險費用持續增加。因此，我想說，這些是一些不利因素，有助於解釋我們 2025 年 2.07 美元至 2.11 美元的指導範圍。

Okay. Great. That's helpful. I was wondering, too, if you could give a breakdown of the five-year $7.8 billion CapEx budget between water and gas.

好的。偉大的。這很有幫助。我還想知道您是否可以詳細說明水和天然氣之間 78 億美元的五年資本支出預算。

Yes. So one thing to note is that $7.8 million CapEx only includes a few signed acquisitions. And of course, we've taken DELCORA out of that. So any follow-on CapEx for DELCORA is not included. So if we look at the $7.8 billion, it is slightly biased toward water. And I'd say relatively close to 50-50, biased a bit toward water. But we would expect with acquisitions, it biases even more toward water over time, but that's not in our plan at this moment.

是的。因此需要注意的一件事是，780 萬美元的資本支出僅包括少數已簽署的收購。當然，我們已經將 DELCORA 排除在外。因此，DELCORA 的任何後續資本支出均不包括在內。因此，如果我們看一下 78 億美元，就會發現它稍微偏向水。我想說相對接近 50-50，有點偏向水。但我們預計，隨著時間的推移，隨著收購的進行，它會更加偏向水，但這不在我們目前的計劃中。

Okay. Great. And then last question. I guess I saw the parts of Pennsylvania just issued a drought watch. How much of a concern is this to you guys right now? I mean I know discretionary water used is getting lower this time of the year, but how should we be thinking about that?

好的。偉大的。然後是最後一個問題。我想我看到賓夕法尼亞州部分地區剛剛發布了乾旱警報。你們現在對這個問題有多關心？我的意思是，我知道每年這個時候可自由支配的用水量越來越少，但我們該如何考慮這一點呢？

Yeahs, not a great concern to us. I mean listen, we're -- conservation is at heart. We're an environmental company. And we always were guarded against any problems that would happen. But this is unusual weather. It really is unusual to us. And so we have put some warnings out on our own to our customers, but we're in good state.

是的，這對我們來說不是一個大問題。我的意思是聽著，我們－保護是我們的核心。我們是環保公司。我們始終警惕可能發生的任何問題。但這是不尋常的天氣。這對我們來說確實很不尋常。因此，我們自己向客戶發出了一些警告，但我們的狀況良好。

We're -- there's not a major concern that we would run low on water or anything like that. That's not an issue here at Pennsylvania for us. But certainly, we'll comply with the warnings and support the warnings. And -- but as you just indicated, this is not a high consumption period for us either. So we don't anticipate a major impact.

我們——不太擔心我們會缺水或類似的事情。對我們賓州來說，這不是問題。但當然，我們會遵守警告並支持警告。而且—但正如您剛才指出的，這對我們來說也不是高消費時期。因此，我們預計不會產生重大影響。

Okay. Not just the supply side, but also on the revenue side, it shouldn't be too big, right?

好的。不只是供給端，還有收入端，應該不會太大吧？

Yes, that's correct. We don't expect a financial impact to speak of.

是的，這是正確的。我們預計不會產生財務影響。

Great. Thanks

偉大的。謝謝

Thanks Jonathan, take care.

謝謝喬納森，保重。

I'd like to hand back over to Chris Franklin for closing remarks.

我想請克里斯·富蘭克林致閉幕詞。

Thank you, and thank you all for joining us. As we're always available for follow-up calls, Brian, [Haley], Dan, and I at any time. So thanks for joining us, and take care.

謝謝你們，也謝謝大家加入我們。因為我們隨時可以接到布萊恩、[海莉]、丹和我的後續電話。感謝您加入我們，並保重。

Thank you for attending today's call. You may now disconnect. Have a wonderful day.

感謝您參加今天的電話會議。您現在可以斷開連線。祝你有美好的一天。