CWT - Earnings call transcript Q3 2020 | California Water Service Group

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the California Water 2020 Third Quarter Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to David Healey, Vice President and Corporate Controller. Thank you, and please go ahead, sir.

David Healey

Thank you, Bridgette. XXXX results the Water for to Group. Service everyone, third call quarter California Welcome, is our Financial Martin Thomas today Officer. of me With Kropelnicki, Chief and Vice Townsley, Vice Regulatory Chief Business Paul Development Smegal, President President, and and Chief Officer; our President our CEO; and Replay issued in earlier third dial-in call earnings quarter found for be this today. release, information can our which was be until XXXX. will February available replay The X,

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

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

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

Thomas Smegal

slide I'm going pretty the XXXX for the Rate slide we I'll refer begin are exciting through about numbers Rate I'm on through California the Thank X, And General bit presentation you, at things here some other recognition our deck, and a the a to a to of Water mentioned, good is the on slide General as and in of Dave the quarter case. We about It's well and as as Slide case get Service quite quarter. going that which talk going go Dave, everyone. speakers. morning, go to to the California us other Group. California

everyone X mechanisms, our California in reluctant the those recovery. regulatory point, not disputed had financial were in most California been delayed to medical as the decision accounts And back in such Commission quarters And pension account at that know mechanism and we the Water's matters adopt as we this for October positions accounts, record also X, decision for a GRC. settlement first proposed as GRC it January that published proposed the on That's cost continuing on XXXX. balancing the October the to have balancing as on proposed probable RAM should the our XX, of our whether approved we had Cal the effective they knows because Utilities well some XXXX. So Public for been case. of a And year, decoupling and the of did assets MCBA announced

basis. couple GRC continuing concluded, have to to those based and decision the subsequent proposed very that, that award upon accounts on us probable of a decision We things is the a

balancing the the And to modified - those will the recognizing the the those regulatory balancing regulatory are assets we significantly with revenue revenue adjustment assets. mechanism, and so account, account And cost associated our add water cost year-to-date. for for medical pension and quarter

know the us revenue in is grant to calculate requirement, In the And the on able decisions rate rate will memorandum we're interim now commission the addition, recovery. take accounted. proposed since interim we what

Advocates that decision. they the Case. the that their here. areas, in happened the I rate States, they interim that did office, water giving mechanism, regulatory Tuesday memorandum So to we've us major balancing And the not comments briefly the the also comment proposed the a asset other balancing decisions on PA, Tuesday, in General on areas comments In comments proposed the that further things Public for the medical on other account. account. of about want adjustment X of talk gave extensive cost among is is variety booked subsequent a event recovering United pension issued did not on issue with a we're continued Rate granting that count confidence while on modified do revenue their and take cost And words, or Cal

the than very allow those that XX, feel the is strongly November going be accounts commission, we decision, by balancing for so earlier can final which And rendered to though, us.

And so news very the company. that's for good

rate. as deferred mention tax Act we rate those customers X with associated tax refunding It's rate. shown that part refund this of applied as items, income customer it's case, rates, to our the to applied. tax income to reduction being to the that in And are statement reduction federal the in up is I addition our Tax Job a and In excess would the effective Cut

basis have lower company go-forward deferred those associated with emphasize we a of see to risk do a I some for want the rate tax And excess effective them. these assessments on probability as do refund taxes. so that you'll

likely, are third the gone as estimates. and rather, results, We no included material that's think But or these third proposed dependent upon I quarter decision changes. why our we have not that say, we've estimates, that now, evidence earnings given quarter adopting the right and with we ahead is in the CPUC

third turning determination increase $XX.X going $X.XX on third quarter net income a million is X, to X. income so significant a That the $XX.X year-to-date the Earnings $XX million. as basis, net And means for XXXX. to to in have for up in is On about up. result It's the million to Slide per share, compared very our XXXX. from third quarter. The that Slide that as the quarter we of of $X.XX compared

year-to-date $X.XX and of go up million XX, very year-to-date in share compared going period our a that $XX.X And then a it's from $XX.X on per I'll the quickly. basis in million, means as through And $X.XX. Slide earnings Slide XXXX. So year-to-date On is X through basis XXXX. to

Just about talked in things the revenues for and changes quarters. have pretty to that us, standard that expenses prior other we've we earnings, are the

operating increased expenses that and do assets. a time that adjustment see to have some and other time just amortization. as generally things retirement on we've in from our accruals, increase that the unbilled have our depreciation of and plan these So mark-to-market you'll variations couple We on as wages revenue for well slides we of

recording quarter, in and QX we're the in rate bar net in third about earnings. on major, that quarters quarter of the you're on the And notice effect delayed that's the XX, emphasize which to - Slide been those do quarter, earnings either or year-to-date want recording So represents is XX, first in end regulatory which time. of the in $X.XX were but Slide briefly to that General first of the there's third year if is affecting areas, change because the bar in had the the earnings. on there nothing up QX very assets. bridge, And the the do through those focus period quarter adopted third achieved the Rate titled you'll case earnings the Case have $X.XX, first point I the would been

in going we're we per of XXXX, to putting so recognition earn the so that quarter share get third of third XXXX. highlighting the probably to for when a $X.XX this that And this again - quarter not there's you just we're

if would be XX. we Although, want obviously, And then focus that to could. on do nice I Slide

company. is states, of think as The the just the allows in drives about again run specific most net portion a million earnings regulated The and and stock. for it power return income. to for that the I in this and income California base. analysts of rate adopted calculation and year equity X through reflects of predominantly - adopted, utility actually it of we're the And is about a revenues net case, of all $X.X billion company's basis on the our equity test a proposed rate XXXX, thinking if in others authorized that again, if decision $XX

base particular, California, net Those in will is an that water earnings not that anticipate by on again, on normalized on another be basis. kind time to should annual equity remember point million $XXX $X.X California line to the year will a are have New value the in our also also dependent And earn talk in Washington we income unbilled the regulated make factors the as our our test similar expect costs the we third from year-to-date unrealized that in quarter from the on and return, But addition affected are other returns assets, Mexico, water Hawaii, changes do million quarter understands a returns with year-to-date equity states everyone about being our revenue and Paul also, In other in time. mark-to-market sure the through in beginning about are about minute, for adding effect we sales. about states dotted or X businesses accruals in income. we a that to that rate And the the do in talk costs. net sales. retirement of basis, affected in changes a by of XXXX, our our in to And

factor on are you operational differences other finally, so associated end back maintenance at equity various And if be cause that factors it play expect, of things the be a a we with and antennas end our cellular antenna that down to earnings. regulatory state we the drop leases construction AFUDC, the couple where there. just core our portion year, - the go unbilled are that of to unregulated book the timing there higher our toward those XXXX. And asset a And then of the of various to facilities. cognizant The than that otherwise then we funding tax for particularly activities can the regulated earnings as was will, contracts, bit of the

to so everybody that. questions on to And Marty, that turn Happy about aware I take wanted well. as going of over to talk COVID-XX. to you I'm to be it just

Martin Kropelnicki

give COVID-XX, Tom. But season history. with in backdrop of Thanks, fire want the it California the with was COVID-XX. to quick everyone a worst operational update Great. I even

state earthquakes, busy a we addition as the folding and of deal shutdowns center opened state the had throughout as during of year in a to times power well the very a times fires in We've number operations. we very, to operations various at our total XX couple emergency public that then been with it's for year-to-date. So a COVID, had of safety

Having customers we have said major disruptions everyone, any for the having with service a still we water of remains a and employer gone we continue may health potential lack a avoided And the very, seen very record centers, for emergencies The to protocol public despite the think the as employees with to service, competing for of and with fire we how EOC, COVID situations. I'm deal protect protocols number FEMA-type new Protecting share happy priority. emergency of and our year, Silver happy that, employees XXX-plus out company's Stevie response. that throughout in emergency very especially well, Stevie us. Award that's this, our valuable during of to Award. say water you season. we and very operations #X companies the operations basically infections. operate to or have follow enhanced dealing with Stevie safety a a I was most of customers received terms Award, from That

award employees So that the win we're on safe. for work our keeping response very COVID our to on happy

an seen While aging in we've dealing with the the from collection customer pandemic, activities. of increase suspension accounts

recall, process, the to do Cal fight to prior so, water but it any by the the Water early the suspended ordered our for done on customers we of our need and government help Governor the and collections had it in virus. further because recognize we shutoffs, to orders you If was for

over-XX such Only our increased amounts are uncollectible. of $X.X has million. typically to So balances portion about a

monitor financial maybe to continue and to think We that for of has the bills. people ordered We've place very pandemic some shelter We times people it's assistance program of have their $X.X in hit to our been hard meet as reserve very, closely. indicative pay ability doubtful million million. able $X.X increased and on accounts their not by about been and to type and

to continue fourth XX% roughly we we'll move into that the of is and as So that balance for, reserved quarter. monitor

Hawaii. amount, when a dealing quarter, incremental And back have in we than And you a commission cost the period for kind to you memo-type the incremental planned seek Our less those to of what a but in is the We expense also the - the was you track to as to think in expenses third in do costs in go certain California COVID was incurred, the be which books. it's memo potentially they the good. a model. have it account are in right and it most $XXX,XXX account, know, Menlo ability recovery of with and as the you business gets off the account

COVID to aggregate, we So attract with continue operations. adopted to in been level. have in costs close in associated our memo Water accounts sales, the our

So the was in being customer with quarter. using adopted increases about obviously, offset and in more of people California, that by business XX% home, during lower in uses industrial the with sales water, usage,

terms In remains strong. of liquidity our liquidity,

$XX As additional line of current credit. $XXX had September of and million in million capacity a through cash XX, we of our

Paul over well with the into on has positioned regulation. liquidity the quarter. now going for and turn to update an I'm California it we're very the strong going fourth throughout So remained company Townsley pandemic, to

Paul Townsley

you, Thank Marty.

the Slide Water regulatory It on turning XX is regulatory year a has for So front. Cal the been update. busy California to very

As Tom $XXX.X proposed cycle. the decision, and rate a a commission decision mentioned, for the expenditures test also or In new of capital proposed new million XXXX. Cal X PD the company in $XXX established of case new investments decision, capital it year for proposed years the received the October, the Water authorized revenue of million across the in requirement or

rate we majority agreement filed of that the general case. agreement of resolved settlement the rate issues settlement in part we case. as Now the this a filed the And

Slide with balancing SRM; agreement treatment a the litigated administrative the approval quality position commission. inclusion not the or I case projects equity In or by cost XX be projects Angeles in XXXX also They XXXX. ruled were the I and XXXX mechanism; be year busy been of will case water the XXXX, judge, area. water be spring. we next the XX case, filing our the AMI, the items, filed a the the I other filed accounts; our in in proposed mechanism, because set to August infrastructure; by these XXXX XX our pension is next others the XXXX sales said in calculation; open were decision as - on settlement Cal there our of from mentioned, continuation an the also will and for year. component water note rule we XX adjustment along in has just at continuation the that of busy some in all litigated request commission which on agreed Los of rate of as and financial of items. law filing, Water's will filing will XX of However, will proposed the meter XX effective we on advanced Water, The continuation have to meeting. capital a earliest down reconciliation its decision, Cal that RAM/MCBA on care capital the decision use items, rate and revenue of with AFUDC bars the on the November for beginning, and which judge items, rehearing spring, our parties, included an RAM/MCBA; litigated be which with also case commission, favor health Cal part were Water for or continuing financial a our

those Marty. of be I we all together. will back putting year very our next team So - will busy regulatory turn it to that, With

Martin Kropelnicki

up $XXX $XXX.X we'd million. spend Thanks, Year-to-date, update $XX.X $XXX the we're between Paul. same million, capital capital think The investments has company XX% what XXXX. program period $XX.X and up million a right. were million for into give shape achieve has investments XXXX. last over year good in We for quarter a to previously been third All environment. this operating goals challenging fourth program going year. to quarter Capital our are And for the over quick the investment on going the really our I'm investment estimated despite year-to-date million, capital

just on announced in October reliability and $XXX which Southern into of million completed our service shy bring in down put California. Palos is we water company's we project that the redundancy history, the project addition, had PV In peninsula to the Verdes largest XX to project,

CPUC fantastic The Yesterday, CA's that XXXX through nice a capital environments working adopted the a Hot decision additional to So to Cal up. did wrapped year. request it's in an the team project have press. granting for job, million operating the financing up this that later. get be wrapped or Water's is help off difficult finance additional authority of which $XXX to to used program expected again,

debt to finance out X of additional to So equity million the this allow program go and years. our growth raise or next us an $XXX will capital in

was that good well. news So as

One areas last we're frankly, been is that XX business probably busy been the BD. years that the we've super of we've busiest in probably the and development in,

happening Paul Paul? is us to development update going an And side, so on give what's on business the

Paul Townsley

company's update Yes, has development strong have new sure. customer XX,XXX put lot I business Water connections have very X% new efforts new growth over our a a year. On efforts. development continuing new and this customer Slide had Year-to-date, is development success Cal of the under over a subsidiaries. process connections XX, business our representing across contract, in for an

in both Animas the far, for acquisitions and Water Gunnar View Hawaii. and water we acquisitions. System system California, New The are which Washington company entered on subject in And regulatory Sewer in in Rainier Ranch the Water Company closed the have in of and approval. So into has X Valley Kalaeloa sewer XXXX, to the system contracts Mexico

preserve the at regulatory in approval on still other the Hawaii Company California. that and Sewer Water being are undergoing and Millerton we On Kapalua side, X and the acquisitions, regulatory in review Sewer Water

the summary, just about. that our as from you see can I efforts are of turn this can of And details strong, our I Slide business turn will over back see that talked those XX, pipeline you to and In is potential projects development some deals of robust. matrix, to If you have Tom.

Thomas Smegal

Thanks, Paul.

seconds CapEx are So A as couple showing our these I'll traditional over base. a is Obviously, far. than charts little by just the to going we've slides, our million the charts do how of past. That's bit certainty the our realization. achievable authorized which XXXX bar next of midpoint of in rate $XXX target much the spend Marty getting commission and CapEx. on in for mentioned, X done very X Paul so We have the and and CapEx here more closer

flip you regulated rate this call the estimated in And it adds mentioned we proposed from the rate that If to I reflect California. states. to base, base base updated have earlier decision the chart then the other rate in the

So in include state-regulated rate estimate to adopt base That Verdes the we that the CPUC base they about does rate billion. project. assuming the and the California $X.X our decision after settlement, proposed not pipeline adopts, other is Palos and XXXX, be the going

Marty That projects. to As was of million. is these $XXX mentioned, close that one letter advice

We timing included that, year to depending a in maybe as pretty upon XXXX start case rate here the process expect that in the to of before California. bit it the in be through close or little even the rates flows

be letter X/X will rate we on this chart. base almost that advice that So show the of

are to XXXX emphasize, the rate XXXX to earnings want though, do I and So subject in test. bases that California

that rate the years, return X X We an we've capital rates rate us do of of year, earnings talking of made out progress this in it on California. case have additional year districts at we the looks the in test haven't - the and but we earnings before didn't because been grants test test effective investments our every an have

an and think time I the call have what increment So to will XXXX. by the we to get that we'll on add that update year-end

pass in of if is to rate those what's XXXX all shown authorized the we So base earnings tests. here were

that is to there. so what it for And turn I'll is you a it And Marty, over wrap-up.

Martin Kropelnicki

Thanks, Great. Tom.

accountants, couple take get to certified PD got weeks Deloitte and work to real a First, with Touche. the public this and thank since we our of Tom it's independent a want and been figure and I to out just registered everything Dave, all busy to booked moment

you us XXXX rate your this know hours team. great just on close done. it lot general I done been that to have have a move and have we've getting to I the to stuff and XXXX want job and Paul working for on to being mentioned. outstanding both And general our So It case already of nice that wrapped kind an to of to get booked. acknowledge was it you're disappointing forward. us It's rate so case, was of up It's late. as done allow

into our to is our positioned has assets employees have the which generation has our a move adopt dividend weeks, our we year our of with job capital been our business every the us in XX% and safety and that most of ever with to COVID be tight been us to and anyone every them. biggest our our very of operations. single the growth plans to allowed on As lot of plan, continued employees year, day or Water program disruptive COVID, protocols are our in protect continue has they've single field, importantly a execution including Most disruptive truly at programs, the last day. required work experienced. well the maybe Cal growth what plans has investment X our development business been

provide legislature executing in the the a by of Newsom, place. or water concerns wildfires. to served of to And another our and In fires provider figure our is which is been we which government law some threaten liability. electric state We're we differentiate we're profiles regarding not now law hasn't California are being a California to property signed from working year profile is passed of us I in wildfire milestone we a designed into specifies water systems the put hydrants to that worked So service in very Bill bill, are the with lot installed significant address Senate connected news, have help that believe gas fire the get had on, lawmakers bill Governor affairs on aid to of after think, team The of really XXXX, service that's late I in I good hard of risk the want state utilities September, to close well. a thought public fairly the further that not California. by well. this positioned extinguishment And generally significant. this really water is to

So please. big we're in getting the it's for it team a the for done. Q&A, that step Bridgette, to that, Kudos direction. up And with for going right open

Operator

Instructions]. [Operator

line Our first Ryan from question comes of the Connors with Boenning Scattergood.

Ryan Connors

And thanks in quarter. for very there comprehensive remarks the

I we One terms a California, of there. in picture impact there's think will, so you the of provided doesn't like couple tenor, lot sound any picture far. in the quick regulatory on just if the a need it and you But of detail bigger is impact COVID-XX questions. of big

capability. of there's the about some Or prudency investments, it's it's of or lot program municipal are increased could the cost that, all to be like things and of slow systems want evidence down. some investments on might Any approval know of be whether go? off? thing maybe sense might things they seem you view that systems in ROEs I of there's the that and now. it might hold any CapEx But a it's to kind creep all is does there evidence of for deferring sort capital of asked kind that talk financing given on any economic that You a approved, there the that pressures, - whether that a there's

Martin Kropelnicki

jump as and let and well. in Tom start, then I'll I'll Paul

it's I think right as it like of all systems now, go. looks

good rates you're Southern a think in going are no to Disneyland question I that asking and hotel California. with tourism. down. occupancy COVID, very No There's one's

and But that investor rate-regulated systems on 'XX basis aging thing now. And this the XX really those all 'XX, and to through municipal it's went in think, the that systems. I up, we So go our think systems, crisis, are bad that when was the debt of us we're affect sub-prime interesting, you're the receivables. The recession it points. is watching went receivable effect water I have going accounts certainly customer multiplier the for big right

about has really order governor's popped far. to receivable bit, clearly, limited so up but that's So the little collections to a our customers balances suspend XX,XXX

that. at looking we're So

is I outreach we would operating but say, The other our programs. Ryan, stopped it's a haven't been thing year, us, for difficult and

programs. stopped We philanthropic haven't our

local may have operations year. from We participated that doubled a and municipal did who we in You had seen, where firefighter government just center. we community we emergency XX operate, a our exercise, this areas co-run grants EOC officials

So we funding may those set we'll so it essentially up, up. to us. and They it the not come set with exercises, they'll have and participate do

all think utility. of side into of ESG of we kind get the those things a So kind being

we And so I think watch got what all to and see happens.

COVID. business I thoughts? think able positioned wrap the work to we're happy well case having up, very development the XXXX. for any I'm us, we've rate starting despite with with Tom, into to going And been continue to on work

Thomas Smegal

I some let side, Paul's closer first. Maybe I'll thoughts, let him I'll to Paul to that have going but go - do let regulatory first. I'm because go

Paul Townsley

utilities But have provide this not questions the time good commissions we all our business many to I other in been during business we've which as said. evidence agree and tenor doing And or terms we us Commission model on customers at that just our posture in Marty are really they've of seen in of the what any of a to of of changes what do regulated articulated. or utility. changes in, California able them to the commission's of Marty is COVID. with I support The Sure. concerned, asked commission of terms answers, their

Thomas Smegal

of A just how be that areas trends, COVID trends, predominantly to may home bit some from little in. thing our and a - are condos add more areas just and utilities X move short-term we're their this Cal but of little I I particularly and lot rather was suburban-type kind and really bit people serves buildings areas medium-density sky, lot to of they than - situation have the where we've areas about they blue Water to going the apartment was if whatnot. guess, I can see of urban So own all areas a are high-density that from talked moving work a you wanting But serve, the spaces, that and of the with will.

actually seen lot interest people of those in a to we've moving think I communities.

need And growing areas the infrastructure to uptick living there's so be be I if we you actually And certainly, in interest a likely look disparate serve. in to that lot provide operations in those those in able the capabilities meet an that impact, at to of we the think the and communities economic to demands.

I So just wanted add to that.

Ryan Connors

Okay.

appreciate you very very, of in there. That's weighing I X all helpful. Okay.

draconian we my and little closest a bit there ROE to this could more my that a limited issue side. right? question earnings, do the Now decoupling, think this your closest tone be there. is some earnings a other there perspective was - comments peer different in wasn't got had as be of higher your I'm believe is could with could there we've you it's that don't pretty We through sort you this. volatility, not a get to manageable. have And that deal," know, question earlier impact probably on the of that be general be bit although in positive of California volatility We'll to while you're this that but - And made real a like, view. Even the view we of seem paraphrasing, some that "Hey, support a it kind week definitely might it, this big if

is important. your in that? how it earnings there from volatility to of that especially And magnitude terms good response that equity, potential can an quantify - is increase the is is a any earnings way you question So obviously deal terms is, standpoint? Because volatility in my in what of the evaluating of

quantifiable you of be helpful. can that would metrics put So any kind around

Thomas Smegal

all, do with of to So me emphasize let they first have things, of a and couple regulatory.

our where feel at thing in I've The looking free decision making. So to the you us, Paul, proposed at it's in of the low-cost well. through from implemented. about, peer to allowed key service our our as of about water. quantity charges, was to that look talking to districts decoupling, course rates. different many XX% were and with little pipe the for rate we you're low-income our and if collect But of costs the our been had, in decoupling In utility structures Ryan. And about is In bit we're remove XX% over were that were of of many the if districts, since recovered a fixed remember the we we got before rule of summer costs fixed this we

of predominantly a incremental remember, water lot pump not is our where there's we're there. half in And of pump water about those So it's groundwater, costs districts groundwater.

into in quantity we to rate more the when conservation. toward decoupling to what mechanism, the really cost those cost to recovery our rates. tried went try this particular, areas, so And quantity really the push we've done is promote way we to And in skewed

that's or And not in people they like we've Chico, kind a something would of quantity conserve, a that. rate - the so for get what And to where month rates anybody state fell, is costs that's like pay concern to and and Where to not going wanted the format. unit us serve do. really Bakersfield, $XX just primarily volatility water pushed charge a the the $X.XX we base where places if like a you into

future We're think, And critical rate we work those to there. be could so I a affect most in case into to rates volatility the is push about factor, needs the for symmetrical. position cases the But incentives skewed and we've customers. the to talk next the normal that conservation back rates to going which in rate have

return. case volatility to the forecast work of getting earning and that's in any that also to sure things the and average symmetrical. volatility identify an sales an those given we X make of lower us authorized real design, is - we year, that those right. of or we'll in limit commission water particularly a least the Paul do comments. cost so to modifying the other just X at And it both areas in allows year And advocate get the some successfully, has earn rate And I'm chance can the case, is the And that upon if can those those things process rate us kind we'll focus and [indiscernible] below also forecast incumbent in authorized us return or equal to the gives an above into that buy rate

Paul Townsley

Yes. Well, Tom. thank you,

to were after be just decoupling. points. decoupling, I will of and our during wanted with think We before successful have and a you been that utility I successful very we financially reemphasize well, - successful period had said we couple a were We decoupling.

for is very One pricing takes of And cost charge it we've important the the away goal conservation. - commission most lost tool water, the that important issues about that been water tool concerned made. water is which state think decision the significantly a able we not was we state. are have we of to for were users decision high the per the policy the If why wrong in conservation, higher that

customers, believe rates The low-use decision of steps more who and customers, second to costs down tier back other the income this bring often the put will tier will lower hurt tier by to are the it be is to require we issue our because fixed into from that again. third first us to

and will low - they our have policy have for wrong And really customers, low-income under customer mechanism. that's decision - wrong filed what for potentially would on relatively why user bill felt low state had decoupled the have decision So a to the it for we and was compared this. rehearing a we higher

Operator

the our next Wells And of line Fargo. comes Jonathan Reeder from with question

Jonathan Reeder

two $X.XX was QX like When I I how the related you Yes, or reconcile details. the down to it, appreciate was $X.XX. between the quarters? and closer in to $X.XX slide discuss trying breaks Can I to QX

I quarterly reports. if little So previous from don't something know shifted bit of kind a your

Thomas Smegal

and little after that of going XX-Q we're walk read that between through the that. the help file could a maybe part you later detail Jonathan, and think to that in go bit there's more difference our But to for And billing our plug we is plug the system. into - first to design just going that what that of were kind have commission exact is quarters making the rate the X we now that we adopt. and concluding we we're today, you we I now estimates

may instance, is that rates because for be, so the just rates very And of versus between what's way some changes are calculated. variation the what slight in interim there RAM/MCBA

be of that's things may there. the going one that on so And

and in do one other for into The we of a end those but the bit get the the things is are the XX RAM how how I esoteric, of collectible that not collectible a apologize to in and evaluating to that with don't balances is months there. there XX rules due that that up months discounting RAM weeds collectible of is that much but within the next future - thing want a here, that's bit accounting And of periods. of the of much is

an And having of bit effect. so that little may be a

and in bear we'll you Q. with to information that get us, Jonathan, point to is where So and the out that try

Jonathan Reeder

the get regarding then about math that correct, relative then And is you if see you allowed? to the Great. returns. low the the $X.XX guess, earned side, Okay. my regulated ROEs I power you do And where earn of EPS, earnings accurate? two Is pieces to assuming [indiscernible] your

Thomas Smegal

the basis. well California to earned to do So of a generally, a ROE year relative the first very in going case, on we're regulated in rate

and we're I California the so other frankly, getting close even getting And - to that pretty in think terms of states. pretty we're close

ramped that's Hawaii. years, in a catch Hawaii of of been rate significant that's a investment And over on I us return, our lot that part drag we've non-California to particularly as earned a we on think up assets. our started the up the really, and

other I expense about the good obviously, we're core shape side a quarters in - tend and it's then really the year. most case. to talked move than these the compared net would I think the income that higher for that that pretty rate And revenue to factors likely way regulated the we're from but from we're so a just in And in, business, I think of X

Jonathan Reeder

I'm unbilled the the unrealized right. guess, the Right, from that sales $X.XX, and impact rate gains is utility out - we [indiscernible] you core, the that other right? just that the income, base, I and gets take is if exclude thinking, just No, around

Thomas Smegal

all just the the since like I'm math. for that. I multiplied We but front are rate everybody in a base that with could - else, capital well. you're [indiscernible] have is over conversation California Yes, allowed, But me, structure just exact and the by Jonathan sure the have and is of equity don't calculation listening return not something in weighted It's others California, X.X%. just the as XX.X% it's

about at do And the to So equity. XX-XX billion But math other typically, we're that authorized that then everybody the in on getting states, on rate base. same X.X% equity of $X.X it's essentially can return closer side. probably

whatever it is. so is, And that number

Jonathan Reeder

like side through down equity your the on think pull $XX at $XXX program I expect of program, then million the halfway XXXX? should how you And much you're to in million Okay. year.

Thomas Smegal

Yes.

Q the the additional in - there the - think and in deck Dave, about was the we might that have do on do you in follow-up it's sorry, people on - slide the we program. Dave, third that's might number? quarter I how where we that listed. it didn't to have know I We that talk the or Q, spot direct equity you about have much on to

David Healey

can't I right Yes. remember it now.

Jonathan Reeder

Do or? you though know what XXXX, do you the in total amount expect to is

Thomas Smegal

we trade or days time some in $XXX been particularly, think be in to do. there's we time, million the expect would that new where been couldn't to And much. there we're slightly to What under to program, I this and found we honest. from have volatility very some trade pretty it's ATM the couldn't market program,

$XXX And the X about of span. $XXX so overachieve targeting a and of shy right time basis getting We're we're over of mean it in program. over as that we X million X year now. look objective still But a on that that equity our years, at we little that of XX-month doesn't million probably can't year

Jonathan Reeder

It's X line. for looking Q just was first at months, I the it's million. $XX.X the -

Thomas Smegal

more in the there's fourth And little a bit quarter. go Okay. to

Operator

to [Operator back Kropelnicki for now Instructions]. I'm the you. turn further Marty call over not any questions. showing remarks. Thank closing I'll

Martin Kropelnicki

Bridgette. Thanks, Thanks. right. All

a support, come In thank forward our that there's that end release the We look year. And questions or and we we'll later for today we'll Group. for anyone results as into we get around in to to up full the everyone season. out the wrap XXXX financial go as our to meantime, Thanksgiving of talking and XX-Q for of lot everyone filed has. obviously, during especially times, the we California at February in details So answer will be stays Water interest you COVID March your hope continued Service any appreciate that safe early these your

Thank talk you. thank everyone And later. Bye-bye. Be to you. safe. we'll So

Operator

weekend. gentlemen, and the that have great Thank Everyone, participating. you Ladies concludes program. a for

California Water Service (CWT) 6 Nov 202020 Q3 Earnings call transcript