Earnings call transcript Q1 2023

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Operator

Good day, and welcome to the California Water Service Group Q1 2023 Earnings Call. [Operator Instructions]

I'd now like to welcome Mr. Tom Scanlon, Corporate Controller, to begin the conference.

Tom Scanlon

Good morning, and welcome, everyone, to the 2023 first quarter results call for California Water Service Group. Martin Vice President Officer. President is Thomas CEO; today our Smegal, and me Kropelnicki, and our and With Chief Financial dial was call quarterly this information found Replay our in can results earlier issued be which today. release, for June The XXXX. XX, replay available be will until

the before accompany call a deck reminder, has slide begin, we As this company quarter. the a to earnings

website X-K also available is slide The at afternoon www.calwatergroup.com. yesterday deck was furnished and the with company's an at

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

During of certain call, future company forward-looking the to and the statements. are from current with materially uncertainties, various company's they the deal actual expectations. the course differ may results risks and Because make these events, could subject statements

shareholders Because understand of and from in press and as time read to other company's interested the our Commission. XX-Q, with filed the this, and and carefully parties Form the as company uncertainties current releases on reports all well risks disclosures Form found Exchange to XX-K, strongly time Securities advises

going to it begin. to over Tom pass I'm to

Tom Smegal

Good for on results first quarter joining you morning, and our call. us everyone, thank

results is going the what revenue, on slide number financial which is to second. quarter. five first I'm which a there in just large a get to drop you'll of I'll our the see slide And table a of start deck, for in just

per first income million quarter had compares a we $XX.X loss $XX.X million expenses share, similar year. The of XX.X%. That on among or $X.XX $X.XX X.X%. a operating those other last revenue of or lines million reduction share $X.X and in million. of of XXXX $XX.X net per that We in that the of quarter had was the And for operating to were of or quarter decrease a with that decrease that's the the during effect in things of up a net

of about do capital the news talk the want plans. quarter, that is later certainly more good little a investments increase XX.X% we'll I in and in for bit business to the company's highlight

I in California mechanisms. for describing gap The temporary, that we X. in release go and call California, and a document Slide of here of are is little weather quarter areas the and big we those combination we'll really service bit to And we what wet probably about our lot talk would main a in gap regulatory a this weather in Turning from a severe had story cold and is very where in our in the that here mechanisms. press in terms this

impact On the and saw quarter in first revenue, Slide the a February wet we that remember are low winter January, billed the begin sales and March. quite usually decrease in with California X, big in And to to our the months both unbilled extremely in again, of XX% sales. in California, revenue, wet

The are revenue compared offset we other weather where from And decision being recall mechanism. by pushed commission. to Those WRAM our the past In the regulatory for of during you'll MCBA and active presentations, And period, are Water, longer accrual somewhat $X.X million as MCBA of regulatory our we had get down million our the XXXX the that and Cal mechanisms. replaced mechanisms that's the by no WRAM in mechanisms. unbilled year. similar $XX.X an XXXX, and into a here's last

mechanisms Rate Case. those up California delayed in general the tied However, are

weather. have deck Case the a have we on, been changes Slide have here again, for two accounts been impactful recorded what Rate And middle an so on we that of of had estimate X, the in in would would in have

estimate million a account. is to $X.X have recovery drought which in the balance sales $X California. drought account period, and are Rate is from that during the The the effective period, That We would drought million an the memorandum we during account, account. a lost revenue still Case where response is that been from that period first the in DRMA tracks DRMA

addition mechanism, quite mechanism full but place our Case, to a that to adjustment the would revenue. be not In of WRAM decoupling that have WRAM, Monterey-Style, generated price similar the mechanism, to million that's in $XX would $X.X with million Rate a that,

adopted, Not in see currently had significant will a yet would regulatory the you positive effect place a Case are rate on can once but quarter. the that not regarding the the be place, increase, potential for in where Rate mechanisms gets have

that The affected wanted second item I revenue, deferral. is revenue here highlight to

account to in be we are that surcharges evaluate that and our balances WRAM XX that of accounts, in the recovered large to the to have balancing the how when time. we collecting much other because balances of we some months. exceed within GAAP, of with length California, accordance of going have balancing In is customers And

to and that had defer million $XX.X deferral deferral of by we've That is the the revenue. for quarter, quarter. so million offset was And revenue of $XX.X in an deferral cost of increased

so top the on net on And see revenue that a lot the line you that doesn't of side. again, to do but impact have income,

Flipping Slide to X.

million the a increased Just on a there. We nonqualified couple did of gain our see as assets other same period, quarter. to notes the retirement in gain about XXXX $X.X compared plan

to that, you'd of million heavy done, construction increase of rains XX.X% Despite had XXXX. mentioned capital sales able water get other expect, California. $X.X same a Our a quarter as in we Couple of the $XX period lower We lot were by improvements. the activity production to in I financial from fell in highlights. costs million. due in lot

million the beginning by administrative is and the of agreement. Water authorized QX right the a of Water And in $XXX from a interim expects law pending customer then basis, million, $XXX credit X% available here, by judge and just rates on increased the a Cal that's company increase the reminder at that filed new in to to to in California. As and most have we May an GRC, that to revolving resolution five-year amount been end Cal revolving credit agreement, the quarter, new we the

discussed. Moving very EPS to X, Bridge. is that quickly just factors our Slide this I shows And which the

mention factors haven't I here AG mentioned, and I'll other operation that two expenses. and other The maintenance is

Apart EPS over operating that just then property and from base as for result increases an deferral, bar property-related expense basis. a a decreased company. your having the on invested fourth interest, our That's we And the higher would typical depreciation by what annual is so the capital $X.XX. expenses, call tax of

to this X, general for flip actually Rate on X. the that Slide on One with California Bridge thing and increase any want I do rate not that to potential is associated Case. is if EPS you Slide a highlight you

regulatory the about accounts. the two, and unrecorded the mechanisms, we so M-WRAM talked already And last DRMA the

Case memorandum and We interim adopted, we would between $XX is million rate have have the also interim rate of We effective an $X account. back Xst of California the to an estimate that case XXXX. general seen Remember Rate account January and that had been random the balance million.

reefer The $X million represents Cal the of case. position $XX position advocate, the the Water the represents of in the million

the The a the change caveats whatever And in there's so can they independent. lot that Obviously, manner rates of warrants. judge evidence feel to judge to choose that. is

Water guideline rate Rate memorandum Case a is But after that for the would where anticipate We that advocate decided. is where interim and of booking not recovery. that you the is And first for a a Cal account increase the with quarter. rate amount scheduled gives respect to is until

did Finally, account. going just up the is book the in quantities that be. what fourth balancing And also anything the not incremental to Case is of terms the mechanism are cost cost understanding balancing We Rate incremental for tied adopted in account. the

the XX, lot California a I to with regulatory will keep update, here. Slide report going not

issue that of deadline. now that August First bullet decision case. of statutory we deadline. We a deadline could the decision another any their time extending they the or but did case cost really a of by XXXX is to information get the extending Commission have complete see that don't have statutory case on They that. capital complete could

it date that there is the or at reminder, be one decision retroactively. the of effective issues a As capital of would cost whether case, of the

of the on And several update for during California the Rate the the we've retroactive expected Case And quarter. to we if January no is potential originally one quarters, decision when was effective. so impact last that back General XXXX, to the to as identified there's company be have it

a moment it over stop and for turn Marty I'll to drought. the to about talk

Marty Kropelnicki

out talk want odd seems on a to going of given Coast. kind on we've gone to just kind what's through get to with about on we of West actually the drought up certainly, It what winter. But date you the

As Tom especially. record it mentioned, winter California for was a

XX, is XXX% around I'll talk at also of Sierras, As snowfall. they flooding. that, XXX% snowfall and as Lake it the they're in of Southern talk normal which Trinity for look Tahoe start region, of potential Central which about the April percent normal California, Northern they're Sierras or April Northern are XX, area, snowfall the XXX% you for at snowfall. to at is California, normal And later the of normal bit of in the of The of little as the significance if we a about

winter an eased declaration another throughout state. of atmospheric His restrictions that and West the results in that the basically drought executive rivers of Coast, given Accordingly, the order. issued basically have were number order is California but in emergency place, issued still Newsom the governor some hit the that place

moving drought. to an end And a of Board of emergency into we some point. If three those XXX, Water of Control adopted Stage Resources plan will you as XXth, by spring. State Water the a they The at remember extend Board and don't regulation were if in in the and effect was of Resources for he we emergency, had date State Control state, XXXX, two so exploration severe as X-stage Stage that the it restrictions has remains that eased we and then go June in declaration the fairly

emergency account, response which that drought into the Control Board is memorandum drought State Resources believe the Water DRMA stay effect that the We will resends until account declaration. emergency

total, If but trickle the total, move you have $X.X in these Public balance forward. were And California programs we XXXX, we look in of a have the our of expenditures, that place our million. in drought were at memo expenditure, seems were kind drought they Utilities $XXX,XXX in in with we and throughout about as had costs accounts put you that Commission, it QX

update. I ESG a XX. to you Page to on quick Going give want

million in water than resulted drinking conservation service more areas. million invested that $X.X we for XXXX, XXX of our in gallons During saved water

study completed and replace to optimize, vehicles. downsize to We our ways our fleet identify

running help clear around facilities to to which risk to additional operate had install to you may systems fairly of taxed. to our year, were backup backup ran a We continue we interruptions, the as us of We without enable and the of a all customers of got California few firebreaks power wildfire, grid none little big last we those water. and went the in as that key of minimize had recall, to generators in continue state state, our

by our floods, and water plans our we And they we impacted just developed et fires, as cetera. systems are change, including refined climate heavy operate experienced, rains, we which to drought,

over side, for we with In to employees, our train provided addition, during suppliers XX% XX% bias on personnel of diverse our XXXX. we spending the unconscious discretionary and exceed increased

and is included to on to inventory XX ESG at is know, our all report information. that doing in encourage to in our when report work this reports efforts during you of information as change mitigate XXXX, it new we're greenhouse lot look I Our report gas But of a climate you and new climate published the the what's and comes year, be contain XX, on mitigation. scheduled out ESG change. recently on would May the terms completed May

would adopted, it or have per capital strace get at they and the PFOA, it's four maximum PFOS March, million to EPA, $XXX for both information, our Based issued levels trillion. and Moving PFOS draft on that parts the standards be On about if that in wells elements MSLs and compounds were set set PFOA the current issued of XX. were was cost a Page to on that we compliance. a estimate contaminant into by

have by is would something be XXXX, working the to but last it this of on is currently we've our in which as adopted areas. is years couple quick, If in is we been draft for relatively the service regulation compliance written,

good to last of of lot over also of pretty Obviously, a may have a big a there's associated our the with out customers. some have that we think with money that's it, those there grant we it. there's on available cost but that be couple government seen handle years costs I offset

as And to as we be certainly, offset would our to looking get we much costs. can

of once record to track the getting what forward resolution standards a for place the them just on and our I MCL and to then the these PFOS, are Additionally, rates that our costs working look strong want in regulars the final And we of has note allowing PFOA be and set. have with treatment to been going customers.

Page XX. that update met XXXX. that in one Bethel the we on That Since for last business acquisition into development Going March, to in the adjacent now integrated month just that and were Greenacres was maintenance was last services area. kind area Washington. we It we in some service service closed is side our acquired providing an of

I talk hand it back about and to depreciation. Tom to investment capital

Tom Smegal

there. On to updates Two Slide slide. XX, update the just a quick

treatment. $XX this the all, and projected still does going bars of yellow you'll include capital California Case year-to-date. estimated note the not any First Rate PFOS the expenditure that on indicate with for million And

you General the XX and Case, when to we hope but showing certainty that give represents you on on keep the get of more California Rate projection changes the Case. Rate an we'll no some update There's that still Slide

back Marty I'll for summary. turn it to

Marty Kropelnicki

what and calls XXXX made with I state as record living been snow has temporary is for it's on of wettest is, know, and in mechanism through record winter say certainly Well, of It other interesting one on don't our record absence regulatory XXXX delayed. which is winters the interesting an in from certain the know severe results, the journey an to of Rate California. confusing coupled drought to a than you Case, quarter. pending going The General

you Case all Rate and best these provide continue finalized we'll and decision in the mechanisms, to as to the potential that been meantime, possible, our has once General pieces issued. anticipate future so And of together. our is fit can disclosure recognition these We much the do of see clarity as

these the I team we results the as long quarterly also want now as mechanisms anticipate here delayed, that will today. volatile as do GRC discussed a to of that the pending remain point again, we've successfully we provide California regulatory is out can as will possible much a that General when resolution and to quickly work the our is General move Public as to our a XXXX conclude Rate clarity year little on much XXXX with Case, as to which Commission away. Case over we Rate then Utilities And

work at company Additionally, as the the a and was greenhouse us I in I recommend focus all will XXXX. that May highly done, which side, mentioned, be a has available XXth. report on on ESG take the for look people the especially gas

certainly, way, to of And we regulatory as stop. these not get wait out decisions the the work does

investment we As capital is Tom had which during that quarter, pretty West mentioned, the increase almost the given had on the Coast. XX% remarkable we weather a in wet

the coupled moved of newspaper Melt" shared Times snow snow LA talking into fact Additionally, this of the levels record warm have which those we or and as I week state, read Sierras, you the with very a in as very, obviously, levels other earlier, some the with high maybe the spring. periodicals are "Big the in some the about they're which rapidly

in two San example, was Jose. a For yesterday

a are central southern flooding the melt and state snow of of the and It concern in melt just big and to is full. has flood the certain of starts and it in the overflows parts California. part plains central as the reservoirs to There

the been support. working we teams our busy service flooding Our on contingency for plans areas that have now

rapidly on the to way. the months we're do the flooding, work ready of this months ready come to And be risk we mitigation weeks, few we may then go what make into into of will lot many next warm season. through you plans to fire a our on for summer And sure as move once know, this probably, six get we'll fire and

issues a get the work cost confusing. And little of mercy because to encouraging confusing capital. of through disclosure everyone Case at California continue General then, kind of Utilities hanging we Rate a bit quickly Again, them these us to quarter. Public provide we does of work bit we're our as We're our with kind resolve we'll as the as appreciate strong it Commission. until to A and of the and possible

for to open that, up April, are it please. going questions, with we

Operator

first go Fargo. [Operator question Instructions] from Our ahead. Wells from the of Reeder please Jonathan, line Jonathan comes

Jonathan Reeder

guys Marty you good on, Hi, doing. morning. are

Marty Kropelnicki

Hi.

Jonathan Reeder

one delayed like deferred of the $XX.X your Just is include, of GRC. talked a Does guess, $XX from deferred QX million release, that the to the in that it's million I revenue was thing. little about, you bit in $XX of offset costs? said I estimated million think clarity know impact it on revenue cumulatively, the you $XX.X component kind I was by, million that adverse

Tom Smegal

to there, account DRMA interim X.X% X% talking M-WRAM No, account, the XX%. which of then about is that's XX% to we're unrelated. rate of to Jonathan, X%, the are What account the X.X% and

Just the becomes undeferred goes those because with And there. three deferred by, subcharges are to revenue, accounts those is in what respect time we're place. as that obviously, summarizing

would company it's the we that. And start so would expect that anything to like quarters. not disallowance permanent that, back or a in to future Obviously, accumulate

Jonathan Reeder

where the have not on a lot Golden year-end a might and I the ALJ or recorded but going Case? least got that XXXX? decision something say getting we this what at the might time by State you Rate by we're you for certainly this can have Do sense in whole to you matter, that's in a of the get General proposed you PDL true-up I frame it's think Water, ALJ the think be for case. know can in year-end any same get reasonable earnings

Tom Smegal

certainly think we're that. I hopeful of Jonathan,

time that in judge the Case, October. our we year our in a XXXX proposed as decision that Rate he as there, to about about the a took back time last a out came to was that that look you from year General have filed did the October If delay we on had we and in case, far same but

the And I that, for with the State, so reasonable, never would tell. clearance can certainly line time but hope is of Golden that case you

reminder investments just as that far open issues revenue as requirement, case And Golden three was issues State really whereas capital really the obviously, unrelated big to a expenses. our case and and has

more a for bit case. And little him so in it's decide to our

And so we're is but not give that's you sure. we're the guidance that can I hopeful,

Let's put way. it that

Jonathan Reeder

the one last filed in say get the to it a PD? case about point from you year the settlement took Did you

Tom Smegal

correct. That's

Jonathan Reeder

if get And filing? that next the there? to of going the to is on what's until Are it Any then or cost let coal sense the commission we black ride decision is capital. a going going the

Tom Smegal

going get we But I to cost equity. decision all water. get And But Yes, an to is a issue we comes for the full normal essentially of then hopefully that there, that cost file of out to what it you could comes to just they it before we're gave we're to of and hopeful that we a by what well think And down, a says. But August. have extension issues capital. decision us. for as themselves PD have they structure again the question think I issue and will that August. It's out timing and capital the the of both retroactivity several know, the matter in not issue Cal before

Jonathan Reeder

discussions Is there that of kind everyone around signs sitting been aware proposed of waiting decision? worked has and there Are any like like being mean stuff it's that that? and been the for on? just I actively you've like

Tom Smegal

every Greg saying usually you say, But a nothing for the which a calls all And message before, little meeting, will the there. of up no Jonathan, to I'll PD. pressure they is these documents days I at bit. who XX The there's talked that blood on publish anything, just commission we their that to I that discuss goes end day, share text haven't I of Milleman, know meeting, before when and typically heard only thing say our

so goes. think the as as far anyone I dark as And we're in as that

and on all of look And always to they off-cycle issue last days that come proposed can commission. news agenda. aggregating they get could and meeting say, the out certainly, dates the meetings, you those generally, possible But can the those do back calculate when those of decisions. they're But possibly on day XX

Jonathan Reeder

Water drought Control Resource Regarding the issued. has the emergency whole Board regulations State that

expire it exactly least extend whether I just end they think at to or you June at them Board let or the expire, with out said does a how of that decision that the come has work? is to

Tom Smegal

on expires June XXth. issued The regulation emergency regulation. They the

for they come they It something it XX XXth, probably expires May XXth, I extend back order earlier, months. could could was unless on it. year think June always else. the be June to They before, and do here it's in expired

I situation. that there know, as with are think of state the the impacted you issues areas to certain still California in shortage, and we've the about particularly by Colorado are water talked that as past quarters are, River Southern respect

good Water, understand in don't directly as had with it I major that's decline Colorado understand long-term But an a area for that here California. Basin we well. the Cal source winter address is River and Southern of but the I a water has

I so Imperial because wait there's of regionally see a that. think and our Angeles just hands And cetera. drought sort et wiping a of major the of little impact on and we'll Los on in hesitation And potential County, there's bit just still

think that wash a in Northern sure. in water for California we're I

on that we their the And so contingent are we making mandatory and drive state our have orders wholesalers look ones the see order. voluntary boards or really at them we conservation, whether when those

Public Area made Francisco wholesaler waiving their us what for San Commission, of restrictions the Bay Water the instance, board. Francisco For contingent a Utilities in which major with drought happens is on State has San

And awaiting that they're well. as so

Jonathan Reeder

in to of than always groundwater been from the restrictions in is you term? to just know and kind best that as view be of the view, place set plentiful the takes Depending position up like longer has I But to recent. want has the state rain everything. Obviously, on your long-term been longer keep perspective, do still recharged? these long-term it fully yes, a the water mean, that I

Marty Kropelnicki

we've recharge all time like have And hydrologists we those this some think takes had, basins. it that long estimated back-to-back been you basins XX that water over I winters recharge to to need with the a even still have excess had pumped. really

the think Resources and the the Control in kind and drought the eased are is been of the State state. and Water step back He governor of Resources because the has Board because it my didn't we charge they restrictions. Board follow kind I in it silent way Control canceled impression water of all managing State the Water

a they're sense that. is or my Stage kind And probably roll this long look winters an But point long-term think at is about point contribution. evaluating the I XXXX drought to And maybe we'll extreme you drought, trying was situation. record. to back I if one wettest to a in which of is make quarter from on of going one voluntary two on fourth of your the Stage term, the

and people what we enough extremes say storage Northern we that's they releasing the our the had because are in up these didn't the have February, of It's changes, filled rain January in and had rain in other in and because mean, that climate reservoirs on California, intensity the and capacity. coming storms early then I right? start to water

to we as and store adequacy where a We're sustainability, move ability of state the wise transmission a from water long water. way of to need be supply, terms in

the there's have to next a there. I'm see And with to State weeks haven't hoping place. the play Water been declarations the Resources yet. But we'll I out Control over canceled think Board. here two politics why reason still are six of it out fully how them They in keep just those

Jonathan Reeder

Stage Stage stage What you me. back to one Remind it at? roll X. You currently or said maybe are

Tom Smegal

move would it include to wasting back to two Stage on that that The would your X. sort restrictions, water the talk in now. thing. We're water of of use car, be for washing And restrictions Stage

line Governor not particularly he'd in think called that nonfunctional the irrigated, to everywhere. ornamental turf, to long-term regulation potential plantings avoid be lawn that's California try in see out like to Newsom still I with of

long-term whatever, You soccer a put used want or and it all Frisbee by to your or players effort that dogs everywhere but had. around. not lawn they've to be That's

Jonathan Reeder

X, Stage the you in availability the still have DRMA? And of would

Tom Smegal

that a we're point customers really our at voluntary not It's it's really calling would think the for That's two. don't be DRMA. on. I that restriction the so because one Stage qualifying that

Jonathan Reeder

thanks for weather questions. Thanks, yes. with appreciate luck front. Good it. Good I And alright. the with luck. regulatory the Okay, my answering and

Tom Smegal

John. Thanks,

Jonathan Reeder

Thomas. Thanks,

Operator

question comes UBS. ahead. next line Gregg from the Please from Our Orrill go of

Gregg Orrill

Yes, morning, thanks my Thomas. Good question. taking for

Tom Smegal

Hi.

Gregg Orrill

of account would you I and about and know can on kind How thought would like if have come how the have kind in Monterey adding the DRMA but time. those this, Case really? the quarter of touched items, you you come Rate on back the you with recast out

Tom Smegal

We have the we there. gap with wide the And three rate the case advocates the would because profitable presentation Cal a facts Water's those what proposal are Case what had have between quarter of was. variable items obviously, a biggest Rate is the of case and

other I'd somewhere profit even maybe And to, so or depends and $X.XX between our quarter. going single on. estimate would be on a say, things breaking $X.XX for the This of kind

speculative point. really that's at But this

and Rate the number. unfortunately, it's a do them in add Case. things in that all those things a yourself booking get math also get expect we to You point. It's once timing, the and But be future to this can at really we'll

Marty Kropelnicki

always And the about just a historically QX softest demand. quarter. too tell on had an hard said, we don't a get a excited is always that to year from street soft would add that consumption just overall what then demand because winter QX it's customer Greg, And effect Tom the having and I this such perspective, clearly quarter.

than team tried again, when think, to have the put can't Tom book QX variables stuff. you we you so it's And ugly get that and Case quarter have be they and delayed the much commission. there, if but until the decision can look in further really you to see like, from clarification hard too for speculate a to the because tends I Rate General us an

Gregg Orrill

Okay, thanks. Great.

Operator

line Next question from Baird. ahead. Please Davis Sunderland of the go comes from

Davis Sunderland

my good guys, for question. thanks Hi, morning taking

Marty Kropelnicki

morning. Good

Tom Smegal

morning. Good

Davis Sunderland

And mentioned think potential but the had status environment. I development and I some strength this on of or just it a just you're in ask BD going ask, was what time you guys just kind current I there to inflation wastewater other the things with that call, were with some seeing were what where wanted opportunities, go on Texas you there and pipeline, macro pipeline? was the thinking is the to few in last year the to opportunities contingent wanted and with

Marty Kropelnicki

have In and to we partnered grow. continued Texas, with called a company they BVRT, have

long. in. a pretty environment had of around and and kind continues seed because where pretty to way kind to migrated a growth of they've have is in where supplier. BVRT are their explosive friends these and to do companies are to followed developments wastewater number capital we family These business we It's they've and Texas live that a frankly, early very, of in kind Silicon of Texas, very operate it's getting underway the seen go about us us. currently for positive of well become companies planned that are You've And number us as Valley, being in think for and it.

In addition, rapidly wholesaler is we pipeline as we is water will developed we project to Authority the think build which well. partner to River Guadalupe area, be did Austin which allowing announced with Based us last year, that a South into

environment people in maintained slowed But clearly, still Generally kind a and still down of market momentum business mean creeped overall and state. certainly state to move good. that inflation's it has relocate maintained forward a you is down it, of very of as lot Texas as see but far, a of to bit little so the businesses little, that I slowed the kind up. has kind

Davis Sunderland

business just other quick a Case slowed that. Rate from impacts parts That's any delays follow-up the to of in down the pipeline? And General I you. guess any or Have helpful. the Thank of

Marty Kropelnicki

of we or slanted the a in sellers' present early willing hardest value rate a calculations, of you value acquirer. those to be starts when to tell. kind an about is PD And Certainly, we're potentially change I inflation Too can what calculations. to And thing run changing kind pay. value net tend mean, effect. future have expectations, calculations interest

small they the going quality regulations make to adequate water interesting PFOA PFOS thing be is to don't that's the as have the and about frankly, operating think to come out more these what capital I changes those do? meet stricter the standards, and do investments systems to watch, and

little to number some share that continue fruition, break say to we're those those we get and putting and with on systems it we've I ultimately but in as to every come Page a slowed of update forward as these be got come XX, move the down those to we're deck just smaller may pipeline, And that quarter off are to XXXX. we've a closing things still catalyst continue We'll that get to seeing to deals throughout of we'll integrating. been would bit, everything. we certainly, the a acquired. large And disclose where

Tom Smegal

about Rate That the thing or and which me ago, the add think let Water the see file is business between tied one preparing you'll nexus think is couple regulatory, General is in Water Davis, the that that development have into Washington I interesting, I that made a to Company more we're a Rainier of View years Case. filed we acquisition just Q Company.

Marty terms mentioned, new so of of when to cetera. capital, lot help water they et as in quality, a And improvements in buy initially systems, need you these

And of able second is go so process. rate to the leg the we're into making that seeing being

increases by we years, certainly lag and we've to to Hawaii, favorable rate don't have as results I But now seen go very Texas have. far endeavor three those or rate-making four from acquired the of we're a Washington, we know outside in Mexico systems the fairly New those both we've we as with the into And starting that of to Hawaii new there been commissions in and most process, even the of commissions. and see us last number process go, we've over regulatory ratemaking that California, those the are treated in fairly so

Davis Sunderland

That's very pass guys. it on. Thanks helpful. I'll

Tom Smegal

Thank you.

Operator

back at call I'd to our the questions this further no over presenters. turn time. are There

Marty Kropelnicki

today. thank Everyone, time for taking be you to here you. thank April,

I As there's a mentioned, parts lot of here. moving

you of If I please available feel want our on then, July we the second reach free seeing to have to answer you to be that any safe, end Tom and quarter any questions much. call. out us, you questions, ask. very to be everyone and Until conference and forward Thank look at will to

Operator

may Today's you call, disconnect. conference now

California Water Service (CWT) 27 Apr 232023 Q1 Earnings call transcript