CWT - Earnings call transcript Q1 2022 | California Water Service Group

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the California Water Service Group First Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. David Healey, Vice President, Controller. Thank you. Please go ahead, sir.

David Healey

Jeff. you, Thank the California to quarter results earnings Welcome Service XXXX Group. for Water call everyone first With is Officer; Smegal, and our our me CEO; President Chief Vice and today Vice President, Marty Citizenship Kropelnicki, Officer. Chief Customer Financial of and Dean, President Shannon Service our Tom Replay for can this be first in our dial-in earnings earlier release, today. information quarter which call found was issued until be replay available June XX, will The XXXX.

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

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

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

Tom Smegal

first where nice financials in going about I year of of itself, for we’re The Thank was this course We net that revenue, the quarter XXXX million was last share course, income the Slide $X.XX million you, expenses day as and comparative quarter versus earnings just I and it this of $X.X of was a was related year. quarter us. million in nationally the going And things a am XXXX. cases to will everyone loss to our to first as Jose a talk on and year, for affect jump knows, first to higher of the good the compared X the California, am us quarter in morning, of might $X.XX do effect in I income things us that higher that and to of quarter some a having per loss over revenue. the talk $X and a call, And $X.X of net is quarter had to are the San Good for all the as for sure about lightest our and of the up quarter. some an number to that Dave. from compared everybody, our in spring California we’ll on of

that summer lot selling our and in We of are of a in and and quarter the profits mostly Washington comes be and water to in the the year. third the most of second and of revenue in and tend Hawaii California business water so

first a relatively quarter for so quiet And us.

a X, very over X.X%. business to Slide for as as last other us We COVID pandemic. our amounts the of during were customers to the that to delinquent apply us be become the have bills, to had really customer California, excited state who provided able for slightly, year, for far there, $X.X go increase Flipping of quarter. couple Our about CapEx million to the the improved highlights operations

we million in and so about state, from over our customer bit the that now applied a $XX little bills. received relief And have we’ve to

us that We of amount time was had big negative customer we’ve mark-to-market that our seen a from little saw that the in is $X.X than of So thing focus the some this would million. was just reduction those of factors escalation do there increase plan our couple $X.XX increases third quarter, an the increase the general the in X, you increases, stock expense last delinquencies. bit over X about a little a is We that to pretty on, a of And in share. the revenue. things. assets last of core We our $X.XX might operating on as representation are talked expect, of a revenue to then and time, market I down year as impact about in rate on want share, year, unbilled for our bit quarter. quarter. nonqualified in Key a process. graphical had then favorable Slide a We a higher California very And Slide of

Remember, that’s rate helping case. year general the of third is it us. so And the California

our for are limited. increases rate opportunities So

of so the discussed some the And I other prior slide. that are on there can factors that you the see other factors

to progress. Next, as California I as There’s would not now X X jump to give on lot update. on quick in with in Slide far report cases regulatory going right lot like a to a for There’s the California a company. big

in third information So quarter and quarter, me tangible here. give a report. let a you more update quick be expect lot that there’ll just the the But second to

filed think So week. say. in the and And earlier advocate and week discussions general actually cordial April. to are rebuttal case the last I rate it’s we’ve California been Those public having fair settlement this with is our continuing. We informal testimony confidential

out case of conversations rate going general report to be The to those nothing seems California sessions. good there, So, on on but schedule.

we and last factors the schedules water slip. we as But rate investment Obviously, to and will big the in difference the are a sales last what is and positions, this I staff we goes and There to that a as year. balancing issues. had our tend on to parties’ two continue between help difference, allow design of our in Those going California Rate mode. hopefully cases to on RAM issues I The see in budgets. issue to typical moving an capital there the quarter case, next seem And primarily are in after are wait-and-see for quarter, returns recover general our what – fair major utilities us away authorized water would proposed. like are Not of in as are expenses to we is production along earn to electric some account due pretty big be GRC, is about mix. talked well. so are the a the again, mentioned mechanism

design fair that, making good in so combined And for long way with us regulatory hopefully outcome rate on toward a go will California. a a environment

been the we’re hearings settlement capital is ongoing there. actually that’s the But March are and dialogue of file rebuttal case did that have to week. second testimony hearing in next of case. We there our cost case. some potential And speaking, going generally in The

So been we case delayed That a we’ll we cost California of filed all process. case next is with capital. for utilities the and week this start capital cost of year, hearings the other have in for time asking delayed. January water are in of same X that would decided period. Remember, that hearing X that’s commission by That that but

in that’s this when of December impact the So no no might to terms that annual at is issues if effective. Water the the on about things on other become end the that’s last would to cost don’t November, decision cost the that, million are And capital get reduce unlikely about get structure become $XX the time call. the we CPUC talked as know quarter and a going issue we the company’s exactly of now equity. when we’re we effective, before from you a change, adopt once October, is advocate Maybe right for If the The again, thinking what proposed exactly of decision. and of will, debt in case. by frame. point the decision that and the It’s Cal a were of we revenues QX. accept the timing But rates there

doing So, of lowered keep and and at is that cost on California. to we’re values in benefits where lower by our proceeding passing we customers this our the refinancing financing in mind those debt

would about Dean I it turn to like Shannon to to next, over talk ESG. So

Shannon Dean

XXXX am ESG continue QX efforts in I on XXXX. that Tom. to Thanks, our significant pleased make to we report and progress

our First, our of in achieve has that making drive the It’s corporate ESG work priorities, with our helping the part and engaging framework, them organization drivers. enabled measurable provided showing progress. employees our We further to us which success values, for in the we employees ESG and that which for how will they includes us goals. process strategic a to emphasis added meaningful, ESG a critical ESG is short play all experts found objectives, all matter role throughout and ESG long-term set planning also to mission, touchstone strategic subject

XX power $X reducing water years, of examples investing water million less Just of to beyond, energy our than to use over emissions emissions. strategy XXXX the developing supply customers the solutions enterprise-wide next Scope total operations by objectives to renewable than lower by in and help in our a purchasing no for gas us ESG X XXXX few increasing greenhouse no XXXX recycled of X% and less an

be there our might rather site. our flashy, very ensuring more or see to objectives than about is note can on ESG but is which I success want goals. unrealistic unattainable disciplined in will report, You feasible to available group now path we a our too not that setting seem

that planning. So addresses

and our call report, listed both side, enables we does water executing One, look to climate three at an commitment SASB-aligned we In them, published extraordinarily you of importantly, throughout one our every numerous strategy, assessment TCFD. out few references And adaptation it reflect execution the that one GRI the California. of this a risk our you granular framework Again, earlier It’s us a Marty. investments, group On on will of And infrastructure to our facilities infrastructure on risks it identifies here. and I’ll many report framework. an that I climate encourage month, things. our provides disadvantaged it these areas. see develop for others, the available detail on projects which highlight projects ESG is ESG adaptation each which over risks ongoing I mitigation to strategy, service basis. with XXXX Two, risks it prioritizing do varying the a take in look for call of prioritize the report, that, address our foundational at measures website. to turn ESG and more And to and and communities. three,

Marty Kropelnicki

morning, you. Good Alright. Thank everyone.

There happening the has of information. of how a give I drought. into want we in been and lot to little XX, the affect things drought Before jump politically California respond bit Slide that to I background a

was to significant foremost, may highlight amid that reached with for voluntary the there there agreement March the government, droughts. some water suppliers noticed headline out on a fairly And state government you point have federal that’s a and First XX, of everyone. a California

them we is kind This include wholesalers not know done the the get water the summer And the it sign agreements. While between state, go months, them. target get supply. called of the see agreements in we have of board place in of allocations all we’re and of wholesalers to allows include it we to making versus and the did XX% does water through something on rest hoping of we as more other about kind environment sure the voluntary work put forced being on adequate to voluntary more

state puts it other it $X.X on between funding. and federal does, The billion about thing the table

that the for so urban, environment. you between of the a and lot debate is have followed in And there California, the of state water tension been of those ag,

forward land need storms for So move the with by we allow farmers sets table, when agreement, it’s the to monies state which have Delta signed also up like people the allow to change. the which restoring go Bay of two-thirds to more fallow, starting on to settlement intense project, habitat, voluntary money things that which tunnels, if for will up divert getting us water allow the put to the happen allocating these more climate to with the will these and they is this

at very big direction. of significant right a very it it’s place step document. end on that’s took is the on suppliers getting other Again, complete March. So not the in a still event a working They are but that board,

So to see we encouraged were that. very

the out of state things. thing One, on April up Governor order does Resources the three is more this water Board the to be And drought. The is irrigating it executive it – up order responsibility have including adopt XX the may executive strategies, the second overseeing turning signed to Control urban point really Newsom N-X-XX. – that ban second suppliers two, an California, sets and sets turf. And State water this stringent nonfunctional Water on the required the conservation possibility for that happened for

better steps these this is long-term. more and prepared state the significance to for noticed to you possibilities if sets So with has but taken the up the of, deal be change of the two events it, more climate drought

are we move next order on and stages up kind the Slide why now drought, XX. which the of that’s important, to of the sets So executive will

we dry well. in So dry last receive a where a couple Well, we and this? of having did are were February extremely snow an with We had But all January April March. week, very and as feet Sierras. the of we

like needle that it While sounds doesn’t lot, the a a bunch. whole move

at we you averages. week, we about where XX% last Prior look normal. to XX%, snow snowfall After the if were the on fell snowpack of So our we of XX%, about week, were XX% normal. that went to last

pushing our us Hence, it bit, but our will year the help certainly, So state which N-X-XX in into order, third plans. in we little certainly Governor’s executive the drought of mitigation forward California, a of now are drought is the

of the does of California that in a XX X in state districts are what drought. Stage mean? So our

We have Stage end a of our by have the X June. rest the to in districts drought filed of

of Just adopted X-stage that state everyone, is drought program. remind to a one the strategies the strategy has

definition talking what whether San So our Bay you’re drought Jose the all same Water, of Cal-Am, Golden MUD, East State Water, we’re on is. to

how to is of second Stage for in reduction a waste talking Times violation. first starts for drought up X a XX% the water. Water irrigation Southern And are it’s is a California, days for yards it drought supply. it week, has violation, penalties for week. water week. New And the water penalty made X $XXX this now irrigation a water – Metropolitan the So use $XX limiting limiting between It the in It’s essentially the Times one day purposes a to X and L.A. York for this

here districts staging contained has all Stage mean the next the put our it’s process a on for X will all X place. state of Clearly, it the be again, in Water? plan So Cal What in weeks. in does

drought of XXXX. has May Our been weeks since team meeting every X

incremental a have also, that if commission us date. later the the that you We associated the year authorized with apply costs of recovery a allows account recall, June in drought and for track memorandum last route at to

Stage Stage for been X, to year our to So time Stage go preparing X, we well drought. for the this have on with some X and way the potential

So we our ahead continue plans. move to with

meets to the couple at water march the our of the continue district weeks. summer water We look at continue team to will water months. The executive every team along we supply supply at And looking plans drought every with throughout as state. with into supply response we go

mitigating done Cal job the high spending $XX.X to want the believe the this be So Water, supply outstanding continue will continue regularly. job this a has and to year. of been of out on longer there’ll to I chain news of update that’s will you the supply some risks for topic CapEx. as to constraints months. to XX to an The Slide want over quarter although the number more be every stay year, the that just construction around common quarter bit second grow, I Obviously, done those at active the grow. change. it’s a for talk to come a things to the Certainly, to the risks has rest in move point little team a of about effectiveness have going going million probability very in we is to I be that and team at mitigating date, of the all-time good first our during

haven’t fittings, get we ability our So parts, pipe, of inflation, programs. etcetera. in to some capital as of with now, the any seen certainly delays right But

will continued how We out it delays, XXXX our program. affect know to again. start don’t capital As there and are yet into go we

We the point. have team on up some that’s an excellent to mitigating going risks. with catch working us supply But at it’s here

So capital do all keep we our can are to going on that to to continue program we track.

chain That’s global a to continue that. from will to a immune set certainly, it’s and macroeconomic be events, closely issue. we’re of not supply We monitor. going But

second will to we’ve ATM coverage in as see going Tom, So working things year it this you talk over we to we on I here the later give to look more been renewal quarter. about how on. the to unfold to that hand am equity

Tom Smegal

Thanks, Marty.

So program to we our equity to that today just know expect renew I wanted in near-term. everyone ATM let the

XXXX, obviously, that of allow The about $XXX from plans to and expect that be this million us QX will and proceeds, used general in to million a for last XXXX. raise program ran you’ll We everything over talk was if corporate completed all time. raised that And recall, we period. to time purposes, in will up the the starting program we $XXX X-year ATM

continue the debt and debt as long-term capital will equity. structure balancing issue to of a We way between

to about us continue with debt you’ll want see to Marty, talk long-term issuances you business as development. well. So

Marty Kropelnicki

pipeline of So new quarter. fairly ultimately Kauai. behalf that which Driftwood is the first system We our sized the three Washington, connections. system, robust. then And island island acquisition years year is a Water, have to a a Kauai. their small business be the sold continues owners a add good Valley, wastewater which system; development us. that in operated did announce Stroh’s XXX the to second on was X is our that they which of deals we’ve business It’s for That’s connections. of system on That KSSCS, on will XXX to a in

Water at added about New so we’ve the in New are connections Valley that So in that’s where that year-to-date. deals two with far Water Valencia if year-to-date and Mexico look you Mexico, Animas we closed, new X,XXX

and X,XXX total the Texas, Again, Water strong the a If while. development big island really of Mexico, acquisitions, going none continues have you which It states tuck-in you very, California. kind acquisitions that we or team regulatory New of of of we’ve kind the be stay like Hawaii, to that awaiting X,XXX, System the of middle is very add appears for ones but all so far the system are market coming acquired the of Stroh’s second connections, some busy and to include we on on that’s in, across the are nice in chart, The business all really we’re in Kauai. that Washington, connections books. year-to-date that the about the these up approval operate that

for move talk year the to want we it a I investment? continue as third in development will do about think quarters. and the So Tom, you good be to business capital second forward

Tom Smegal

Yes.

think as the added these permanently So only we’re change everyone show XX update and to the on knows, – I and have is just the rate The base. for XX is by quarterly on XX Slide CapEx now, here Slide we projected recorded CapEx and XXXX. slides to

our You year-to-date projections to in in the in. these rate California that can charts, $XX.X remind operate other we that what And states CapEx. represents million we the see case just the bar requested everyone yellow the

any But not estimated. as all. processing other that and And are potential We obviously, as filed end California have everyone approval that if not the and in at all a you Slide does we numbers that were actually shown case. adopted so case. the are any the same that regulatory of The changed That all and result as that the reflect settlement. settlement of projections does Flipping to in subject Slide And not these the year. the These is the applies. had change XX XX. reflect at to rate case remind thing things to just of

time will well. those passage as to and we so, be get approvals through the regulatory of And as revised continue

XX. So you on wrap Marty, up Slide I’ll let

Marty Kropelnicki

solid Great. Thanks, Tom. Well, quarter. first

year dusted, the in glad we’re making we’re the cycle. think the I in third books. rate of Obviously, done and it’s

year in of terms So relief. it’s toughest the rate always

performance we had in the quarter. happy So, that first good

revenue overall, of our But ESG This majority the in the about. and the performance. we’re report. net the happy third second with with that taking second report mentioned, Tom is overall and very seriously. very income Obviously, Shannon happy As fall our talked ESG quarter. Also

we basis that targets back are make and are marked a on We think we normal that report pick trying are we that sure measurable can that to achievable. very

to everyone a And so progress the look we’ve I our ESG report as and been that making at company. encourage

as through focused summer mentioned, I business development move As continue things, into acquisition, really months of the we pipeline grow still to on a we and company see is And of right. the couple XXXX. we strong the

have like this up As California up rate cost the the Tom we time regulatory get a and the We’d have has to wrapped of and minimum through mentioned, working those disruptions. on proceeding, taken with capital case, that the affairs regulatory front, which general year for lot we of team.

The in our We’ve on fire already launched months. for and summer we dry operating their the year going training done had season, going into obviously of year. the thing the another response is teams teams all for have other the fire hot season anticipation

And So to second be call second certainly, will have our going the end third we cost of the capital the on lot at conference case work Focus in we on and the of quarter. in on quarter. have is to hopefully, side. rate and news a general regulatory more the

So that, going to open we over questions, you, for Jeff, to it please. I’m and will it up turn with

Operator

question Instructions] Your the Ben Kallo [Operator from comes line Baird. of from first

Your is open. line

Ben Kallo

guys? Hello, you, how are

Marty Kropelnicki

morning, Ben. Good

Tom Smegal

Good morning, Ben.

Ben Kallo

Thanks remind cadence year. and are year maybe for to just to guys about talk into of again, I does is have all delays my a and – you more just does us or if well. seasonality issues Maybe hope And does for you. because this Tom, taking question. at type you that next year – of how impact it it of and next hit? flow CapEx, through supply Thank year this the of or chain all all

Tom Smegal

question, a Ben. That’s good Yes.

about the talking with out get that really, things water focus infrastructure water we time. hoping the effort on what quality, systems. of really of period is long and what customers our CapEx Because reliability, the is are replacement, over So continuing we’re the to

because in of escalation rate not first year, really year to we us if to year to have lower CapEx But we spending tend first disruptions are year it’s start will unable set general the that’s and to meet in have revenue this not next affect affect case. going case. And going us. if so that affect of if expectation continues, It’s a California rate general the the the the that it to

So, it start of where up back XXXX. if can’t question. and That’s would the additional we impact speed to ability to disruptions. earn money recover some these Hopefully, you that get through in answers that would to XXXX see and the

Ben Kallo

does. And you talked of $X.X It forward? Federal then, about Marty, funding. state would this that impact you How that if billion moves

Marty Kropelnicki

indirect it wells. It’s for water, affects the how our our water own then that more an and wholesalers, us. states captured half is we – Obviously, from effect produce water water half and wholesalers. that we moved the of And throughout to goes through we buy of

the a this tension between – centers and lot the farmers, the constant just you you users. have Delta project, arguments have environmentalists, of So, and had around where Tunnel urban – water really Bay-Delta tension that the

money from into going of kept have to each to that those So, on how things. them on have fix the help getting parties goes agreement issues table that that these mitigate

suppliers crops water get compensated Water, make want for users water years. enough Cal sure we supply urban our customers. sure our from minimum certain adequate have to make or and enough are water want in where have can we water water flow we The planting make they want like salmon farmers crop rotation crops their have amount program they environmentalists least have sure of obviously, to So, to at a salmon not And a that spawning. the for for to

prepare that it’s those us really of find and been three change. projects better the parties So, aligned Federal State together of that to – it climate over the get to a long-term helps State number and lot affecting a a really for have years, it’s solution issues to come ecosystem Ben,

that Water, get “dollars” Cal will how it who direct water we no but we affect and is get affect from. there So, will water

Ben Kallo

September-October the Alright. And and October, then you going capital, the what does talked the delay Thank of of from you. What timeframe. does guys you? how that cost January impact impact just that was the on to

Tom Smegal

don’t the will thing know rates we now. uncertain Ben, when become it’s really that right effective. is One

And matters be will on a obviously, debt. And lower cap to package And a so what a key, result But that and equity. of there determines out as comes increase kind timing that return in this. far just of or we the might cost had goes, that’s terms it higher the no of as with of up us change general, of say, Commission rate overall equity revenue accruing positively structure for as starts asked the I of for the either we to asked when cost negatively. in as coming

And of would rate so there be would is or limited rates increase potential likely and rates flat decreasing. be more that out this for

wait on So, open we and will have That see to timing. the right is now. the question

Ben Kallo

Thank you very Okay. much.

Tom Smegal

Okay.

Marty Kropelnicki

Thanks Ben.

Operator

Fargo. question the comes from of Wells line Jonathan next Your Reeder from

Your line is open.

Jonathan Reeder

taking Hey. Thanks my question. for

Marty Kropelnicki

Jonathan. Hi

Jonathan Reeder

I cost has wanted already, but just with Ben my for stick asked to questions the of capital a more. couple

expand increase, has potentially settlement on for some You cost of Like the volatility? rates bit? that settlement dialogue the market recent by you increase Can driven a there been capital. stock interest and the has mentioned that on in potential

Tom Smegal

a it’s question. Jonathan, Well, good

very encouraging and a discussions. as company settlement we of are know, the settlements you and As California Commission

testimony, probably has case, in there has rebuttal been – there any dialogue. their – expect certainly think since we ever the to would you settlement filed company I be

hearings, thing should you I think that are next settlement announced take that that is I There is one we yet. starting Tuesday. no think

up not it day are coming time. two of days. it’s to come or a be in someone to with If is settlement, running we the next would you – going out So, expect

been announced. And so that’s Nothing happened. happened yet has has nothing

for about workings good I a settlement. have worked that But can’t And the is obviously there settlement. internal a comment so in faith parties all know of really if I potential to see

Jonathan Reeder

Okay.

of the file terms the thought take in place we hearings still should then if could the of way you So, I settlement. a it, the is off table. view settlement kind potentially

Tom Smegal

hearing typically, to You we to see before delay order continue or in see hearing can. a But settlement. settlements we request

is things kinds the happened that’s I little the look a that all comment, of the your I So, there produced. think settlement And in are here just has markets a right. bit would of to are for. I was you the But testimony capital a other those movement as tricky mean the of since afterward. that always thing lot be could

account had the shifted have are than the to of months whether points. the going if we look the up curve to and – down some so adjust last that or data, into going whether on up capital capital from the AA the they Moody’s and look the XXXX the would And or look testimony and whether little returns a and commission real months that question XXXX have bit at markets notice in of the bond that have or to administrative their cost up four is data and law which equity itself the or really are table, judge requested again, from goes really desk take not. basis relies or utility mechanism on five do XXX more have adjustment We experts,

as is So, that if in cost well. opportunity there gets the included capital that of next

Jonathan Reeder

what just... period? for haven’t actually end at If XXXX perhaps up of using, XXXX guess looked the I I I Moody’s it it the we period, and test which could Would October Okay. being would that, September be test were first be trigger the guess perhaps capital. the the cost through

Tom Smegal

the have was it than period, So, not average. we period, appear that XXX rates if is hasn’t this it day. – does that’s a points internally and but what updating end calculated as obviously, the rate basis weighted it’s at every the every is day, the change but of higher test – It

a evaluation this from wouldn’t through year, If guess. I but period is. be months XXXX, trigger. trigger for that’s interest year for are number wouldn’t But months, it that assume place going to to trigger today October, continued particular XX a in that rates in necessarily rates whatever theoretically next it would lot it So, XX next the or that of necessarily asking

a little is the is of on here. that does in are the And case. higher bit does commission about result the the adopting the is the return equity interested as hopeful to more But we certainly markets. there rates that And So, what change lot be of uncertainty the a considerably. again, is, But commission obviously, up a question gone the going pretty that. commission have in certainly, ultimately, capital

Jonathan Reeder

whatever, you of to mechanism late down. Yes. whatever but a or an something have similar, back the we or something. was, we then order maybe get out, came in the trigger No, finally kind it if I the order might then XXXX it but up year, If where triggered have was thinking

Tom Smegal

with the months But in have order think I just for that to just that the is average happening the to math, quite over that have it up I bit it point. to increase a gets you XXXX, be off an certainly rates, certainly interest level see yes. current so think aware of above that’s a would the in XX don’t story period, and additional this rates. trigger We at trigger weighted of, year

Jonathan Reeder

Right.

debt. the Okay. the revenue the uncertainty No, color guessing given guess I lower the beginning the cost of effective appreciate of the from capital of I whether And date retroactive am I cost then adjustment doesn’t any order, including of there. reflect XXXX. of it’s QX at

Tom Smegal

correct. That’s

Jonathan Reeder

you water Okay. Alright. deal the guess you challenges it. Thanks as luck supply call I and as the with CapEx for would as there well good out the both challenges, supply details

Tom Smegal

Jon. Great. Thanks

Marty Kropelnicki

we I And for are a think summer. in fun

Operator

of next Baird. line from comes Your question the Kallo Ben from

is open. line Your

Ben Kallo

Hi. I I Marty, does the question about, drought you I and how H.R. to of, you follow-up, this Water have because infrastructure was Is introduced? it what wanted that are XXXX, closely don’t legs this, received bill were speaking FUTURE watching any Western just since and know resiliency.

Marty Kropelnicki

watching bills move can But through California, a to It they to go Senate. it am the around the If the quite affairs go committees appropriations two bit. the to introduced, has Ben, has it our it. assembly. was go just sure is has in and to through government I team It

Tom Smegal

I I this yesterday. was Ben, to think alerted So

of Sorry, a Legislation didn’t only ever is the about to my know pieces That’s conversation Congress bill. U.S. that the And there are take Senate. was way thing U.S. away that that get Senate. works, yesterday. and that in Feinstein-Padilla very Marty I the one adopted out believe the a legislation few of Federal introduced

about as was when that a money about additional is problems think a know, in going are we supply Obviously, investing infrastructure some respect $XXX been the systems, is capital are us And customers. do able the capital Marty, as are Marty – so and and in business in wholesale to you continue later if talking in valuable notion our lot of the the to that’s to of talking some have bill any our the and gets million to there as for a be import provisions, they far investing places on at amount you different in story these but money what expect settlement. And systems. But San little Peninsula to to introduced us need water. be of of than the bit you are to we what similar we with reliability can larger bill we we we particularly But is side that really amount that was so about about, invest really, talking to there our it’s year water the money, will U.S., water date. for Delta really, of infrastructure, there. that all to And about and these part see buy be expecting the what that we that increasing other that the from, Francisco future that in of California foreseeable to of the our

Marty Kropelnicki

on federal the and my were to And in details they I the an know But big Yes. Feinstein hour. haven’t wildfire. I fighters bill, the Senator with Padilla, $XX two of discussions focused pertain make really things read wildfire Ben. Senate

resources don’t they been to don’t is happening have what’s on so property and when – have they we appropriate is have And fight fires. those happened wildfires these federal they more

in wage the hunch this so livable a wage I is to State of in what’s a bill the raising got firefighters of California. And the

junior graduating don’t and to municipal What you then district wildfire typically up have a they the taught they is they have city the at and training when resources. So, Feds the college while. happens their end the job which or get firefighting a people is going academies, from level, stay in that for

If you remember the fires last year that we had, they were predominantly on federal territory.

Ben Kallo

much guys. you Thank very

Tom Smegal

Ben. Thanks

Operator

There Instructions] time, continue. at this [Operator no Please are presenters. questions

Marty Kropelnicki

benign Well, out coming everyone, of coming to thank is Thanks time fresh and quarter Okay. a XX-K. for Obviously, QX today through your a of us off our results. year-end of kind go always for Jeff. pretty QX you

general everyone in rate We conference case, at on will state July. and update earnings the quarter look of cost the capital, call forward detailed second end drought a giving scheduled conditions to our of at the

we be safe, for So, joining and you then, again thank until you. will to us, soon. Thank talk you

Operator

today’s this and conference your call. for you Thank gentlemen, participation. Ladies concludes

now disconnect. You may

California Water Service (CWT) 30 Apr 222022 Q1 Earnings call transcript