CWT - Earnings call transcript Q3 2017 | California Water Service Group

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Operator

Good morning, ladies and gentlemen and welcome to the California Water Service Group's Third Quarter 2017 Earnings Results and Teleconference. Operator instructions. I would now like to teleconference over to your host Mr. David Healey, Vice President and Corporate Controller.

David Healey

Thank you, Sonia. XXXX Group. earnings the California call to Service Water everyone third results quarter for Welcome today Martin Financial me Smegal, With is, our and and Vice Tom CEO President, Chief Officer, Treasurer. Kropelnicki, and our President information quarter release, second dialing in today. issued earnings for be which can Replay found call our earlier was this until The available XXXX. December replay will XX, be

with morning As before we The slide is the accompany to this at a website begin, quarter. a the this reminder, at earnings deck slide an also available furnished www.calwatergroup.com/docs/XXXXqXslides.pdf. was deck and the Company X-K call Company's has

like Before forward-looking take looking at this quarter few results, cover we'd to to minutes a statements.

risks read the statements risks and this, and our to actual Company During the make reports Company's these strongly deal may with interested and Securities XX-Q from Company results could future time-to-time as and uncertainties, advises differ are filed on call, Company's parties, of of Commission. uncertainties well various Because other course materially current all from events, shareholders, expectations. the to with the understand and XX-K, as because Form and certain the forward-looking found Exchange the statements carefully current disclosures they Form the in subject

let's pass Now, I'm the Tom XXXX to going quarter it results. at look third to begin. to over

Tom Smegal

is Glad in California. here morning, afternoon on it be morning to rather here Good or everyone. a beautiful autumn autumn

X-K I as to it with will the our And So, well slide for financial quarter. I'm turn up more we'll and color over furnished then that wrap was to bit referring on a from Marty going on to our with deck events And over as some be then website. available little some me. during results

$X.XX deck was per quarter on in million, in slide share per number to third am and on the million basis basis quarter net XXXX. XX% of our quarter starting that share I income the $X.XX an XXXX up $XX.X earnings from an So, $XX.X for earnings the third reporting the in up five of that with i.e.,

million, the on compared $XXX.X up was in rather revenue quarter $XXX.X XXXX operating million to as Our a year-to-date basis. third

income year-to-date showing slide that from the quarters share XXXX show $XX.X of and period over $XX.X the to $X.XX six, $X.XX up in in or as three million Turning of earnings XXXX. XX% first of we're we per is to a compared earnings of per share net million

increases flip $XX attributable - to primarily a primarily seven. the highlights was earnings revenue earnings Just financial million slide release to on Again, in increase California. recent rate additional quarterly from was

unbilled revenue million. accrual about of We increased also $X.X had

XXX,XXX commission's equity Our is primarily and other its in income increasing, due to decision in compliance year this rate case with last of year. California the our quarter, AFUDC implementation

are expense year-to-date drought was basis unbilled revenue recent largely water a in that not very with from change operations believed the from not same the on million. revenue expansible. slide quarter to waste the GRC effect third to we were has XXXX first last the in significant California related $XX.X drought Obviously, rate a previously the financial year-to-date drought cases California. as here other as a and associated in decreased attributable reflects drought we're eight, dramatically. in in in cost of earnings company half abandoned and well, additional XXXX, XXXX. in Bakersfield see year-to-date capitalized was year-to-date increase costs On $X.X from year. accrual and of Again, we period it do the Hawaii our the treatment highlights in be million In basis unrecovered expensing in Our assets which district water off million of California their plan treatment we now from project $X.X On wrote in on of comparison

equity the has also, issue in income other and to our benefit AFUDC primarily due investments. we've million, plan Our increased head $X.X gains done again

million the of an as million Our CapEx $XX the increase of compared that is XXXX. months $XXX.X to and X.X% first the or nine year-to-date of for amount for

earnings turn the earnings same expense did the our for on drought also some and other same factors we to a a EPS other the year-to-date XX, decrease the bridge the we basis, accrual, as If for I point On is do and see the the in XXXX. big you equity income drag am on a invest And EPS and this the the you'll we nine interest slide income depreciation on year-to-date expense at quarter, relief includes decreased slide Again, that's the is factors drought have due this that expense. increased basis. upon AFUDC capital, change slight thoughts to today the which unbilled really I over going quarter. Marty the depreciation We to bridge, year in on bridge listed because go more expense. increase, increase to depreciation rate think this borrowing the

Martin Kropelnicki

probably Orville customers. number water to about that to a water. is not irrigation damages These there a with source up within provide we Great. water am plums Thanks on do in drinking northern districts our and on think service about over of to were XX, and It down was that high million plums we were am three rebuild. territory that the have number lucky those most Tom. I about I those didn't were a near talking any plums $X.X heard being used people of fires did couple burned last slide to California getting major so, I And we to damage alert our fires small had of deal minor despite weeks, for that some with sustain related irrigation

lessons we survived events. was that Orville of well risk this emergency area, learned affected in the as and were is recall firestorms service which California service very area overall, had a we have county earlier our last some fire that the as those the directly dam So, we may well, year current year which in in our part we from taken northern - of down, in burned have you

Joel credentials Fire Joel he with Safety Chief Oakland XXXX chief Emergency Chief, In the and emergency of a a promoted has and Preparedness carrier Chief we Fire has of has of Officer, Simon, events. terms long of host all whole with our emergency our to city fire preparedness was and retired a he distinguish our Since and at done for program local states activated operate we within job four emergency times in. have a emergency type our center EOC, dealing preparedness operations total XX great that of XXXX, we establishing

service a by. few weeks that in with we XX fact, operation joint Marysville area and from also had emergency the We run our training exercises communities Chico operations local ago, and close many about the services participants with of surround emergency

was close damage no So, fire a real well with call us, the sustained storm. for it

one have preparedness. [ph] Navy. for first serve bio However, to a many including to years has California the of ago may we do always at a in couple of the Health Admiral selected of it when our Group, you who long emergency And Vice we as had add retired keep fact, of director a comes the guard Water sea new being did Service noted, to success from three-star up U.S. Directors long, Carol U.S. Board for of a the women admiral. Navy

reasons. in with group battle including The very her disaster assisting good of couple from a asset in plant relief she the she Two, Carol first has scale strong command. operations background female three, a couple interested securities of has she a officer NATO. were has background and And cyber and very Haiti protection. reactor strike for One, a the large to with We battle time command and a earthquake. run Fukushima a

So, are we very, fortune the very board. figured Carol we joined that

a person already her and strong that she happy She board. through preparedness on the is a are company We emergency will our delightful the basis. have normal goes strain to on complement

take to Turning be of settlement will There cost the to slide about settlement a cost nor not talk anticipate capital the to was enriched, do capital. XX, we a be in an moment it I reach equity equity. a so to want capital care The XX.XX% on an proceeding a XX.X%, full to in request keep litigated cost advocate we of XX.X% flat. with ROE going with proceeding, ROE X.XX% equity the proposed rate

an not with able So, reach agreement were we the advocate. to

with authorized capital had commissioner XX.X% September, schedule that equity. decision the has for we year, are a X.XX% will end proceeding. of We this the our adopted expect it at but cost by done hearings of in be a litigated We currently have to fully

Going to the mentioned. next page on regulatory notes other

was yet, for fourth We test increases, are approximately $XX.X our rate in our subject quarter, inflation and end numbers performance the that be the receiving capital an am expect will in earnings increase. replenishing but of any that currently there process There and bullish that for the that increases. available have cap will and preparing million of and number adjustment on in given and don't step is the final process I an in filing to escalation that be very the the we're our preparing the higher step spending we range our I

in the mechanism - reconciliation our will sellers we addition, will be that sales incorporating XXXX. In adjustment affect

actual ability collections. into cash commission in that $XX of - have and we approved the be with helps so with certainly consumption quarter, adopted of we into XXXX. The that included projects then has our X% like of letter adopted CPUC forecast company aggregate mechanism million and advice to than $X.X next additional the going that our third So, than million that's and file change an for have greater letter the that looks filed the greater the to going will and XXXX into we an that XX% revenue has the of the of advice outstanding through WRAM decoupling forward capture year year following the X% of sales all trigger

scheduled here after fourth the In one in regulated in to into try have addition, process Commission the still the service in Air here that that incorporate we space rate regime application so our its application it to filed will district quarter the is districts an commission be Public regulated to into we work with California. Force WRAM with Travis of hearing with sometime the Utilities territory, California

other of decision Looking for Hawaii associated plant. we some revenue $XXX,XXX Pukalani did waste water us the of our additional by with receive commission authorizing an at states, our

decision so assets mentioned of $XXX,XXX that has and four October the we of As have as settlement the years will impaired reach next that those come with that did we in the was some be and, out this effective a part I over impaired we so that to that's I assets so moment Hawaii commission we in also phased that the last think of won company don't year, awards take Normally a words there couple couple is to talk a at are none. just a a out noteworthy. lot about point want but rewards interesting has of couple weeks. Tom

American the AWWA first we was the The Works C. one yesterday Association, safety award. Larry. a Water awarded were Larson

management recognition was company, place As to have safety Jerald has plan of scores. improving anyone we studied incentive so our five who key and work nice within the our receive our on that has it that to in one is safety gone great and a who really job by team safety the objectives

our states In receive the House to in Supplier receive Commerce veterans with at we service addition, U.S. diversifiers and awarded working the distinguish goal our that goal of and us work on award it's other at the to a Trump for the had level done, that but it's into of diversity award. disabled Donald big is recognition nice have and White California chain. some a President really Tuesday we people the bring and diversity supplier in Department all XXXX Federal the them to

So, better stockholders. for to competition term more competition, lowest long leads and the is idea value created prices

and affecting conservation innovation Gulf received at week our trip define the to team could Course. work Golf the drop Association actual companies' their and Water management on award without areas taken last National GPS out be on addition, conservation that the annual In using for Coast summit, replaced

nice So, for weeks congratulate three awards team to of I by and a couple them last job want the done. well

Turning and to in a what's about water XX, moment talk quality happening I there. slide take want to to

additional to in compliance and will which are to adding make X,X,X carbon the new service go we X, XXXX year to meet schedule sites TCP we regulation our we million the filtration propane are continue approximately this granular new on progress in and will We territory, in investing within January about Trichloro into a regulation million on time. go be $XX regulation, activated effect at on XX anticipate on good or $XX

all analysis filed a the In temporarily take addition, benefit some of you the were against back was may the of our we put State in management again X regulation. compliance that's pending did state is cost water you added new it's was a lawsuit water in raised the go that exceed claimed effect to incentive state We that withdrawn to on quality systems. lawsuit if with compliance there plan regulation saw for economic state not but there the X when so regulation and meet the small Chromium burden the to and that standards, new its Chromium adopted into has California that meet

complains the this compliance be issue while Chromium full continue state. works within the to in in are We courts out and X and state the here we

legislatively I In may requires the a be addition, lead testing some of were adding it's us schools lead of have California, to to and at state tested do a copper part process. thing of so rule this that schools, concept The school California right in the is not California. you in seen of think to law added passed the necessarily

policy was plus the very Cal in of threat and territory schools there schools XXX are already However, test Water issue. our adopting and are lead to service schools serious any a in

we our and service that So, area. implementing had in schools already plant to developed test started

legislation and to residual us move as those the to back able enable forward. be effects us, drought. recover talk am coming to about rates it the costs will going out we of I the I hand So, Tom just to further think behind to

Tom Smegal

Marty. Thanks,

about mechanism sales. from period. over and in in its drought talked a water we've insulates course as that So, have fortunate of customers to California We're in the and the XXXX, company changes very adopted decoupling

water we surcharges offset drought us the WRAM allowed that employed their decoupling to and who from surcharges drought during addition, In those collect meet to rate budgets design deposit didn't balance. the those the

WRAM on the years the couple so, over our we balance doing were drought And during surcharges. of saw we receivable actually the the decline that

discontinued in XXXX. the However, surcharge we

X.X% our much lower the sales than case. rate period our see than drought have in historical from last and still averages adopted there In XXXX, We we are continue about this year, lower but rate in to from adopted lower what than water sale they cases. increased is had last

result, can lag us sell. we because of a a And the grow on continue don't is WRAM XXXX, if sales. growing a at see that million, where fall our to that We adopted is XX.X slide continue is for we're as that to So, anticipate to water XXX% XX. currently receivable throughout this in year going you balance to sell see

CPUC has for couple a So, us. of mechanism that the adopted

reconciliation First mentioned XXXX and that XXXX, sales mechanism our that so, we or the through there you as take base Marty XX% into to if are reconciliation see are rates sales just build of are below about in XX% adopted it our going mechanism. volumes we

we're a equal a the other as XX% we all year. exactly on XXXX if miss XX% miss were things sales see same, sales So, were would rather than only seeing the this in

of then or collect for get an filed we'll over So, in amortization April that balance WRAM that as as is in March XX WRAM have years, and a every the is district usually year or an balance we've to and opportunity accrual XXXX XX doing months lower appropriate the for involve. many been we into that's

update XX So, a that recovery. that our just programs were Remember period they expenses were and and is to booked on administer in drought incurred. our slide that the drought XX quick expense

XXXX. XXX,XXX million XXXX, X only Our in the about first of for drought are expenses that's nine down from really

the have beginning we that's X.X So, XXXX a in about total expensed million in of and XXXX.

making filing back be I'll filing the to make talk looks the you filing in recover ruling on timing We quarter, And XXXX. Marty, are fourth like costs, a about and in it now CapEx. to going we'll expected CPUC turn not that it that to yet would to made these filing be that

Martin Kropelnicki

Great.

you For those of whether rapidly if capital majority that through lot which to year program early has up been our recall we this may growing investment fairly of follow delays QX. a was the experienced that and you and of given had

that we earlier, the is midpoint hit of ground regained mentioned have track which million is lot year-to-date on well that news us our a believe $XX Tom that puts probably or a we up we we capital about the have So, to we is don't the Tom of we spending good as range beautiful said, given week. frankly of that street will which fact higher the really is today, have and on assuming been the and wet here weather fourth it's it's in end in believe quarter, range, quite this hot X.X%, California

So, you coming page base that go looking On the in. on cap advice put lot we depreciation program, clearly on into rate have moving regulator and fine. going obviously, have going and new just schedule is out, is capital letter projects, everyone, just out, to rate forecast base, parts, track there a remind you XX,

publishing, started is base rate we out. believe what we So, going regulator the

to next like include we how components going the slide So, we and couple see kind work years. to it remind of how everyone, looking, that just from out of

happening couple to what's fourth quarter, ahead keenly Looking of we're that on. in really focused things here a the

we is it and capital the of of that to comes for near end expect sometime were keen stays schedule. First probably when we waiting cost the the decision, on and comp, middle if about December, foremost decision to everything out

for for following that the couple mentioned adjustment California, sales well we addition, in rates advice we've mentioned. these our California, escalation, as will that letter Tom state January. of effective here times all we increases In mechanism step in new anticipate six be as a of sometime And in as early today, the believe the

ultimately fairly took negotiations XXXX conclude commission through, with it to renew a process we for was when I believe start the we will and we the them it when of XXXX drought to past and know, and us. it, the addition, have months, fourth of two the the those in but process anticipate year is expenses the and In during don't the approved, about filing it get quick recovery last with filed go quarter,

that about already will in capital. in XXX the the good process we feeling million there. So, towards XXX and capital, about here We start fourth upper I've believe between top of quarter. will range million be end the talked we

XX, case, on good get decoupled, our our general to many the progress what the Slide I'd will Xst. but expect back, Tom focal included, as or many, slide that make course, to to because a working the of had long-term because important based are full predict Xst. XX, really until people to a employees, GRC a include we I, be our XXX is continue and the capital on that you in And of We always on should be and it's of go slope that we we is like January compliance I understand sloped. regulation serves PCP think we filed plans. point rate and take it that we what revenue in of good curve, the financial from performance reminder, should of we July going adopted be on company it we lot to And can that where many, that how curve out,

to look company manage. the the to results. fall up budget fourth to so, Things for we've third successfully Clearly, as do actual that the obviously, our year. to up to We're demand off. quarter, quarter, And with very of has been and our has, we able we're soften continued do that in the best on, shows happy start quite that the as is starts with well quarter, especially happy the on in the that items that results SG&A management our quarter

last items kind was of year, rate in fourth noteworthy fourth catch had quarter. during case it's were that $X.XX or of we when up quarter booked one-time of addition, In general approved, the the XXXX the that about

the get of wanted don't that see pieces because are they to information the there. the share I forward ahead guidance, and So, so but really fit give together. to information, people, how that want I estimates business that give model, don't we any try how enough really we things slow transparent out to with anyone We

And handful we cetera. our this any during filings the the going with mechanism, the the of everything get going a cost, given lot year. talked recovery capital, to just don't regulatory about year, too fourth obviously, we're sales between have et of surcharge, drought, adjustment on, our the normally cost drought, excited I So, the of quarter

the since excited quarter, think quarters fourth fourth So, will quarter. nonetheless the fine I think the start I it see of consumption for not year. we it now, with or believe, And other during But be with we do fourth super decoupled questions fourth we up not. to open quarter we will a off quarter, so consistent probably please. is had We're about that, taper XXXX, we since

Operator

Angie comes first from of Instructions] question [Operator Storozynski from the Your Macquarie. line

line open. is Your

Tom Smegal

morning. Good

Angie Storozynski

Good Forgive morning. me, sorry. I'm

for cycles while So, I newer but I'd a like ROV CapEx your we understand - I to say now. covered to that cycles the I'm that and and story, have utilities

So, optic potential it at similar in what you you have meaningful going we when look that your versus have for? and have had pretty last should saw might at - pace the is so CapEx especially How you year's invested we CapEx? fair you over under clearly to CapEx assume peak. I the what last least file I race step-ups time versus to your last about assets a and, mean step-up think

Tom Smegal

gotten the replacement adequate willing main to what think XXX-year that for from to case system. to because efforts you not What that results. rate further to XXX-year XXXX than of of to to going a the just we're finalized a that needs we and is cycle file XXX so received kind any effort cycle litigation we're haven't in and will principles, regulatory replacement main a year commission we to water made yes, reduce last meet we do back last cycle tell but I've big negotiation of part the we case those a of to I is filing. our the the agree time, say more that's I CapEx CapEx in our can't case. terms will with So, of people our predict Obviously, the going we going

We our other cycle. replacement needs programmatic also have on

we the in we to that continue So, anticipate lack a and I of cases. to to CapEx don't spend rate system expect the have on request that

Angie Storozynski

understood. Okay,

Now on growth, side CapEx seem does need It that financing that the potential you equity. grow like will your up.

every all Your that high time stock day. is

some expect issue ROE, before I but in You equity? to should have do to you do the do need it uncertainty I around have

Tom Smegal

plans So, rules are of the have our commission of based upon line financing that with line credit we established some around the the and credit.

line back I commission to up there. in on XXXX, So credit on the be that permission of believe to line us activity the of for our gave XX construction months. We're currently financing credit

XX-month do to will application. we that and of line financing. We're have So, of of some being credit keep before the upon some commission equity earnings depending and outcome the to it debt and determines how going expect the the for financing other end how that authorizes long-term we of long-term capital mask to commission the period us that do retained of over be mean on try cost structure to company our the that capital going combination our to the in factors the will

be so volumes financing. of if financing follow different that we logic determined doing the of that timing XXXX some be that expected, probably in the we've obviously the relative or And financing will you types but not of should

Martin Kropelnicki

now capital or having Tom, I spot we're balanced? And equity not on, believe structures right fairly our pretty

Tom Smegal

line comfortable where of point credit is to at right here. structure Yeah, defray I think now, that do the but to we're some capital with have obviously

Angie Storozynski

the credit many And of so are months you? to how line in

Tom Smegal

described line off for company XXXX. of was the credit we a time last The as November were of operating I

Angie Storozynski

Okay. you. Thank

Operator

comes Baird. the Your of next from Tyler Frank from Robert question line

Tyler Frank

guys, for the Hi taking thanks question.

Tom Smegal

Yes, of course.

Tyler Frank

you to guess you what to standpoint be capital discuss gives XXXX hold a you like, maybe color and already look CapEx in having you and I able from confident those and are? to a projects bit as can identified? many how sanctuary pipeline, going have look You'll you projects potentially targets may your at how XXXX little on

Tom Smegal

Yeah, Tyler Tom. this is

cycle CapEx $XXX to three-year So, authorized in period number us and one thing to like it to obviously the of and fourth $XXX risk and we million subtraction And the XXXX so slightly do a simple that million authorization million that closer second the of some that some almost we I to year could over number that was mind depending the is CapEx year you we're first for there and is meet $XXX lower done XXXX if see into comes for already spend some in been really believe where in quarter on extent XXXX just XXXX. in be out. commission has going looks keep that cycle in

ramping the in projects that up new rate XXX on to not because XXX I and the XXX and, math be filling see number going don't some simple new and we we and that of We I are to a projects, it's numbers rate to likely there'll XXXX most project that range amount have authorized. case capital get just say going in work the we the propose to for case to just want start be of for of but that XXXX those you're so so the to think that may

that. second question predict I think that for the that was I was the question

Martin Kropelnicki

really it's changes target three-year have strategic and opening the up And capital we a that the point, to effort rate case, in made increase. I Tom's of those one was internally projects obtain to sooner step that more think of we

do right was going So, ago $XX that naturally it of said can We million the budgeting back because three capital on kind year, period, early potential in after think for to cycle, we of years increases. are that allowing we're $X increase kind because increase so million we that's us look helps the now. want it step as versus of was $XX capital over a be to the available on a kind was higher step call million our year if two three-year much to on a we as maximize flow there by uptake you years of as the much step we about last as we got

Tom Smegal

of Los a do large I have relatively storage Pal for That's $XX pipeline in project. of of we to feed slip is the conclusion we question system is now, did a there. most lot up there. the of project, the money is small that hill but project ongoing, [ph] our do projects one storage will closed. projects, project finally the getting project which the Tyler, Most it that bulk other million issues a you and is [ph] service, putting money a we final is in district And think remember County as permitting are are project don't anticipate and lot the spending alignment of sorry when the a the tanks and of the spent, it's The line where project for subject reliability Angeles planned, affect affect supply when may we project, about second our the I it large

Tyler Frank

Thank guys you. Number past of have as for just basis heard one follow-ups. your you quick you just a the I touch some this of well could military discuss then as couple And on water that the competitors, you there potential on you. and navy also Municipal acquisitions looking. then are opportunity opportunities out for also what there just potential Thank and how systems and do - is future as opportunities in in

Tom Smegal

cetera. example but of lot being the the of target basis going The have and government water all military bases gone a process bases Army bases. so the through Department the this process lot privatizing for Defense number our a joint utilities, et not for navy through a of Travis certainly of is the a Sure, base, of is

is So, a projects. long time of lead there type

there business bases is the cost because for For remote are because to other any set so To costs fill close in little our us bases, et labor. service is around there, area cetera, are us there not major our adding really we around is front. an direct more than to military resources those up minimal resources that opportunity complicated some extent with can area right terms attractive have resource marginal are of our to dealing that just portfolio the service fairly our and we staff adjacent incremental that

our for in us. a looking potential compete opportunities. of as we it's think core are of source service our of do, for our area, always I we don't around some do space we will So, water a the we think as them, are big in we it service they peers other growth think our business area, certainly are at as for potential if looking always

but So, just take forever. they

base, almost of and Travis of no are a hey proposals submitted one one getting a call, a information and through the years our for then half think five congratulations. I period day we year went really ago the finalist of you

think So, and you the to keep need in I context of plan it's network - got its accordingly. and it

development do little quick. states of pretty full-time of we especially M&A, terms asset becomes development team, business it a valuations more start of times all run interested in California. rate a that once asset in of competition part when because typically, more that's diluted a book We the ups a asset, in. of amount regulated X we X.X the greenfield tend and attract of are active In paying the kind certainly big central high, above to versus lot and seeing that's value, four I have development in kind greenfield ups bit kind certain big you to operate buying am about start you're

what some utility things, will acquisition like diluted assets. to nice we during the and dilutions on for that first integrate year want our we we at, are selective then pretty to look look but for to them, we do stockholders take don't we're add So, that productive

we're is always fall, buy projects municipal out state it in the And very see in would California, citizens. looking we're very vote a looking, system there's but fairly it's of little is selective answer of that short a of at hard I pipelines requires terms we're lot big the because pipeline really nothing municipalities, small to at. there, So, of there

evolved to to Partnerships squeezed. you'll these municipalities get Private PXs, more think, I as start Public tend see So,

in specifically, seen are have instead months the some up pay last the would having in are employees' who are a to has done input results where obligations. people cities that as we pension they the plan, need We on they're hard cities funding meeting also more retirement plan, thought on three basis stepping where for time their to local California there be, the cost you public known the [indiscernible]

And here. we some consider opportunities may the municipalities to so, that future in think drive help PX

complicated I it's but Sorry a the think complicated answer. and question for fairly answer, it's long

Tyler Frank

for Right. the Thank you color.

Operator

comes the question from next Hilliards Your Instructions] line of Lyons. from Spencer [Operator Joyce

open. line Your is

Spencer Joyce

quarter. Great morning. good Tom, and Martin

Tom Smegal

thank Spencer, morning you. Good

Spencer Joyce

me, a Just really question quick helpfully for mostly housekeeping.

we're QX, of First into of that will to stuff. the through is items kind over would all cap, X to to regulatory drought spill - one, working that be across day, effective all clear, that to here filing device just filings, that right? January all XXXX More early Retro be Active

Tom Smegal

cost capital, a for and there. to back delay a was time did effective an last whatever time there of adopt, they and in of the what's date company's surcharge was make they cost period or customers there refund capital did go the call the So,

that So, we from there seen case delay if major judge not like yet. and would come we've again, the a would the that would happen anything anticipate that, is in that

As generally are X, are these would a process letter be there effective expected far to a on step other January those not increases delay formulaic generally advice there. very and are as and

to subject commission. drive the the retroactive is recovery that set that's is date not as the amount far can approved. going on that to That As the that be discussion is an be of

Spencer Joyce

tax Okay, perfect. those our that of an close base rates. XX% the account off estimates to case, we XXXX XXXX, will should full rate it's looking into and of and we there or help air know items year kind maybe I XXXX, is at Also, this above of out we forward up some how as perhaps special kind to are but, here kind in as from Tom, that capital fall year project take

Tom Smegal

it think is know don't for or changes, effective, about when but we tax really No, that corporate well. XX% Washington on as I know, is about anything we appropriate XX% but us, that, what is target there reasonable rumbling might for rate in 'XX based a obviously about be

Spencer Joyce

little the filling and there to between that of weigh one maybe look XX%, or we deeper we any condition the than this here comment, underlying regulatory we point you. to commission? at if hey, Final thank be year as Okay, saying, point companies able are filing, want of capital major you X%” cost the to bit Marty extent was commission methodology driving get the to that the maybe just you are to might can

Martin Kropelnicki

just, with a No. get a when wanted the other lower to table than advocate around have we and very we couldn't they we number. the and a good our number like settlement down relationship we sat and working we

not for and Now, part and utility been those of is are of who and had kind movie we where In and what all you Moody's, you bond around are whole and expand a and forecast XXXX, have XXXX, look rate of at XXXX forecast of time kind spread a lot. the risk the the dropped. bumping yields index, on - credit I a things premiums kind but market flattest very XXXX, saw perverse there you lot

So, when get settlement haircuts, of really none I to didn't utilities they about I discussions, through that's companies, so, points obviously XX, feel why XX all with can't think points of come the average they believe were settle to just discussions. the have were with we footing settlement a when XX they on basis XX.X with California like in but the into all settled the position solid details the we on process plus when see our we're range advocate, there the are settlement there go basis wasn't advocate we just haircuts. XX.X, get I electric out, we XX

do, think we to as the And so, and we'll cost we have big up. capital litigated, see I and just I were it's a the company end being - I deal, don't get of normally through think it's

Spencer Joyce

lot Okay. all quarter, there. I comments Thanks for had. Again, additional thank That's those a guys. big

Martin Kropelnicki

Spencer. Thanks,

Operator

line Fargo, is Your comes of from from open. Wells question the line Jonathan your next Reeder

Jonathan Reeder

Martin. Hi,

Tom Smegal

Good morning.

Martin Kropelnicki

Jonathan. morning, Good

Jonathan Reeder

you of or really you by likely end you there? can think out just come decision have - could Most year point, address been questions did I it morning. more Marty think guess Good this my at but I mean

Tom Smegal

it's in control there case certainly the a under point motivate decision get we has so out the of So, the - be the your so, there, visibility have at really submitted the weeks all any motivation the done by can a be that this to the ago get don't judge us to it's of first judge and of hands - administer couple and is the was get decision December needs has a for day middle that in not. November middle but kind our can of December be to whether decided or or will point next public, XX actually of so, first we decision going by agenda California know treasure to month be a the it remember to the window commission able

more the if one any word to have don't that going time or has that's indication don't so have the indication. so, judge another information, treating way your is how or line on I And be somebody myself. I

Martin Kropelnicki

on thing that And three last with is, all only we if I I would the Jonathan add schedule years the look think of been stuff the to back I commission two to think has we've our ... pretty regulatory

Tom Smegal

general thousands it's Little at not responsibility a testimony and of the this rate judge, really point. patients hard. It's it's ultimately, judge's case the of thousands with

Jonathan Reeder

the commission going utilities so other right, other part standpoint part gets commission don't related wildfire the guess that some the or done, judge would things All guess assuming their of energy you I distract on going whether mean from I think its some from it. I his of on things handling

Tom Smegal

of there an and I staff here that is at that's Water - true another else may done. commission I before as issue commission there with the of number it even resource and commission probably well about And As Cal for the I something distracted in want of when has commissioner a level current full-time is the done but plenty think a years working there lot banned the get something at excuse be so, there. get keep to the at to California there the of court worked the so, XXXX has somebody little a by just five others you commission mind commission know a says and commissioners the, and the bezel bit basically

Jonathan Reeder

potential Okay. QX and just the if And quick With as in buy we XXXX be decision another terms on is it recovery and XXXX QX income question of recovery statement. then or in early that last item in automatically you recorded cost get XXXX. drought recoveries the such

Tom Smegal

to it X-K it when sure the be booking well, a a obviously is revenue going think XXXX it something it of most as it figure. standard in comes and with before I'm nevertheless if was out that's for make but think that Yeah, I for be a fast note comfortably authorized date to we'll we'll recovery commission item, is recognition authorize k-filing our recovery by and XXXX XXXX will I

Jonathan Reeder

clarifying for thanks Okay, that.

Martin Kropelnicki

Thank you, Jonathan.

Operator

to I am Tom Mr. time. showing to now this call no questions like at I turn over would back further Smegal. the

Tom Smegal

year-to-date results. the everyone Thanks quarter of Thanks the company forward the your end look our We third in. and interest calling at much for and you for very year. to in talking again to

Martin Kropelnicki

Thanks everybody. day. good Have a

Operator

Thank this have for concludes participation wonderful conference. your you a day. today's and gentlemen, and Ladies

disconnect. You all may now

California Water Service (CWT) 26 Oct 172017 Q3 Earnings call transcript