CWT - Earnings call 3 2023 | California Water Service Group

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Operator

Good morning. My name is [ Krista ] and I'll be your conference operator today. At this time, I would like to welcome everyone to the California Water Service Group Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. I will now turn the conference over to David Healey, Vice President, Chief Financial Officer and Treasurer.

conference. your begin may You

David Healey

CEO; Thank you, Third Group. to XXXX and earlier Replay dial-in Regulatory Chairman December Welcome, will me our Krista Results available today. Call can The this information release, results XX, Officer. ]. and our our until Quarter in replay Kropelnicki, Service is everyone, found Greg for quarterly Milleman, Affairs today Vice XXXX. which the Rates Marty [ for and California With call President, be was issued be Water

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

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

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

which and start states I'm values to X, our going to by Slide turning priorities.

on to third Moving highlights. X, financial Slide quarter

Cal Commission, rate CPUC, adjustment from our mechanisms. and design decisions the on Water's by the case rate adverse of to proposed impact third XXXX. be last There new regulatory CPUC, retroactive from XXXX change As and the rate the Once to general discussed Utilities the discussion. quarter's Public last year-to-date results pending one quarter X, January reflect primarily case set accumulative is quarter, California approved delayed or will rates, general

adverse into approval CPUC to or the calendar XXXX. letter case the of the Memorandum year for in million on is general $XX related the case rate $X.X revenue impact move million, $X to The now which XXXX million quarter rate delay to from be revenue DREMA. estimate Drought million operating is of the We the of XXXX to of Account, expected Response delayed to operating $XX general advice range DREMA third

the based is the estimate California -- Our and our rate regulatory the parties case general of on mechanisms. positions current on consumption-driven filing to

quarter primarily year. WRAM million and in to XXXX and As MCBA general to revenue Third from as decreased was on in by $XXX compared revenue operating those $X.X million XXXX $XX.X noted $XX.X million increases decrease December $XX.X XX, partially offset The a reduction The as decrease million the of mechanisms on last deferral. period same Slide concluded million XXXX. decrease X, revenue the was rate

in revenue increased operating bad amortization X, period costs, in year. XXXX to with a million increase was deferral, Slide million due The increases to on costs quarter expectations expenses depreciation reduction as last from labor water line expense, and as Third noted $XXX.X compared and to debt and production $XX.X the mostly costs was employee same in expense.

Page to on Moving X.

for income earnings During per million $XX.X XXXX. September $XX.X per as of XX, net was the earnings to share the quarter of ended diluted to was compared and diluted attributable third million quarter XXXX, income and group net $X.XX to of share attributable $X.XX group

on proposed delayed to case attributable discussed, general California income impact an rate decision As adverse the group. had net

from to capital last pleased bottom the slide, noted the a of during group's was $XX.X third report period which year. As quarter the was XXXX investments increase at of I'm million, the same XX%

to over X. it I'll to now Greg Slides and turn cover Milleman, And X

Greg Milleman

that we we have you On quarters, regulatory mechanisms discussed in X, Dave. unrecorded prior are can as Slide tracking. we've you, see, California Thank X

not is commission. record GRC revenue to by approved known the the until practice are Our amounts and XXXX

are these of X, to effective back XXXX. mechanisms, January said, -- go as Dave All

largest, and the the rates. rates have difference memo interim We rates between account, tracks final our the interim

Adjustment residential revenue Revenue at Water sales tracks that Monterey-Style residential the quantity between sales and actual Mechanism revenue difference a rate. have We single

those And depending recorded have or California as tracks which when open could will weather be sorry, And approves will recorded in could indicated, 'XX. the difference account commission in that a Gavin the 'XX drought -- state revenue, be over, Dave that declares on from with revenues separate difference Governor sometime longer. our in the reduced tracks They from in then 'XX, sales we memo drought. what the Recovery drought filing. stay This filing. response in open during revenues sales not in the a Newsom, stay that happen happens will be conservation by will until

the $XX Turning we estimate to This mechanisms -- understatement said, operating be revenues just quarter to regulatory the current of to again, filing, the range GRC of 'XX X the $X.XX recorded third or gives for based, $XX you of X. the financial earnings on the Slide $X.XX as in an Dave is parties million -- position share. the million the impacts quarter during to based third of in the per

that right what see subtotal line MWRAM, is This Something says before are note for would the you'll account. with these numbers. in of expect where be the would -- they negative memorandum in -- we right the it

When line and rate you are the the go using quantity and the customers single into the fourth second in more third more tiers water tier. summer is with expensive in months,

it's Later will results. year being year-to-date that the so we come slide same annualized on to quarters X we'll for the starting numbers of And line with the coming we the across this with an would table almost annualize are basis. year. see you'll with in show the that And numbers deck, what expect completed, in basically would expect on the

will turn that, Dave. you, With to back I it

David Healey

you, Thank Greg.

XXXX Moving X, to Slide highlights. additional QX

XX, from $XX this X, an to on increase water effective cost The XXXX. approximately in the October the revenue September noted of capital XXXX. from from period operating equity increase is was January on million return increase As Cal mechanism X, for expected slide, Water's to XX.XX% XXXX XXXX to

later this in We the discuss detail in will presentation. more

Also, Cal with customers through efforts Water pay agreement funds Community Department our to state's water provide to and Services It's low-income another to Income of Assistance Development the entered Program bills. access an of Household affordable ongoing monthly Water the to Low service customers. into help water our example California

quarter earnings XXXX Moving bridge, we per share to changes our details which to share Slide present third third per XXXX quarter from share. XX, earnings the earnings per

Slide XX, year-to-date to on Moving financial XXXX highlights.

months the in approximately the California revenue operating which is impact million $XX to $XX XXXX $XX be range adverse discussed due we million, rate to delayed the on to million estimate general from related case, As DREMA. to earlier, first the million X to the of $XX of

Our is to positions current the mechanisms. based rate case estimate driven parties California the the consumption of filing on general and

operating advice expect XXXX As approval in DREMA revenue of the CPUC letter for we discussed earlier, XXXX.

revenue billed revenue by net revenue increases, million on on XXXX, revenue a mechanisms in deferral period December offset WRAM, MCBA MCBA and The accounts from to same XX, was million decrease change balancing the slide, ended partially rate decreases metered a $XXX.X X-month These concluded in the a period a noted million and million in WRAM to those As general last balances. increase for as $XX and XXXX, the year. decreased decrease operating $XX.X were on million revenue. the as interest $XX.X compared September in XX, decrease $XX.X primarily

$X The expenses Third was line expenses and quarter $X.X million same costs mostly in million the million employee million expense production last third $XXX.X increases and were in compared taxes. of in quarter decrease $X.X deferral revenue operating associated was operating partially cost decreased million expectations. with of year. $X.X million water to as to offset property in and to and costs, million Overall, which $XX.X with a of due decrease by a amortization period XXXX $X.X other labor decrease

XXXX. Moving Slide results on XX, to year-to-date financial

For September diluted X-month attributable $XX.X XXXX, of attributable group $X.XX share diluted to XX, net per $X.XX $XX.X million to or million ended the period income earnings XXXX. X-month compared to common XX, per ended share the group for common was net September or earnings period income

As discussed, from temporary relief mechanisms. revenue XXXX reflect case regulatory -- absence general rate the our of rate year-to-date results and California adjustments

XX, increase infrastructure during which XX, X-month the invested investments a the period September bottom at Slide from XXXX, the in group XX.X% period year. same noted As $XXX.X was million ended of last

unreported of Moving which year-to-date is breaks to details. revenue by California the mechanisms covered And regulatory the the Slide regulatory different Greg pretty mechanisms. XX these. out It and the much details

our Slide So per year-to-date to year-to-date earnings which on changes move year-to-date I'm bridge, XXXX earnings is per earnings share per share. details from XXXX September XX, XX, share which September XX, to the going to

to And Slide now it to I'll Marty cover turn over XX.

Martin Kropelnicki

everyone. morning, Dave. Thanks, Good

$XX for having can't rate to I'd for $X.XX the $XX a we makes some complicated. million of and of quarter. talk share There kind the of highlights like fog we case to $X.XX go the revenue As record rate approved, certainly delayed recognize, certainly the be about things can't additional million are through or we're waiting to that case we to

just high. program. investment at our mentioned, Dave as capital we're First, new Year-to-date, a

on been just grow that foundation quarter to remind fire Maui. West to Coast, into it as year mild fairly West We season, mild on well a going we continues want have that mild earnings. for the We've track are the of to fairly, has the strong. the a a And record fourth had for is exception fairly XXXX. be the and summer the in not, everyone basis I really experienced out summer were with fires for That believe group future capital investment with or which along

this about and XXXX on then out have season. season we West fire another tame on to look forward we up X season the been weeks for fire and of knock Coast. the wrapped so getting overall, have But fire planning Things far, wood, year fairly

Maui at that especially Looking is we amount was the when which at dealt wildfires not acres, they in with burned, island acreage were of Maui, series been it it in much California in early West place excess because took fires, in X X,XXX have were that started. that the really very burned, of a fires albeit XXX,XXX there were acres August, was the fires of devastating an all,

a And the fire that a dry in more climate upcountry, of kind fires. about just Central and fires and X,XXX, and to those And really close take caused the it's that ] really Kilauea they it X,XXX been winds drought off. Kihei more you was between and [ on perfect the and In In you side, had and acres. the burned system. Lahaina They were had acres. about X,XXX was our Pukalani the which the west a then these Pulehu you having storm Alinda believe the to then, the you hurricane had fire, Maui, came in had change, not, Hawaiian hurricane arid remnants or the of that it Islands, were

And while training. happy that none wildfire affected, and our of our directly I'm employees followed report the their Things training Pukalani readiness. do Ka'anapali, We very, very own Kalaeloa chaotic. are the the for and wildfire we very systems were of lot systems. a do And to

during We've going systems performed our we systems battled our never water they pressure of the very, systems protect Our in and these department our by fire. hose fire in terms their helping And lost keeping customers fire their for very the well. as job wet fires. property the did

days the we west the number Maui of provider were the only on fire. after for side potable Likewise, water a of

time. give government, want confusing doing doing in job. And to but which amazing an response all following training read pause job local confusion think and the a kudos added about kudos the for such during we've I and team Maui just press their to to the to I a team chaotic from great the very the for and in So

remains million restricted. the of in $XX company We of maintained which million liquidity $XX And strong. is cash,

We And waiting of company. have at we'll program, decision. $XXX down short-term that ATM place. liquidity probably we our it's We see certainly, while the general don't borrowing significant, million. And currently rate There's XXXX. That's don't that no year capital capabilities with see for anytime the as rest the crunch have needs way for did the anticipate in go shares not of on case slowing we're we really going, the in are we any shares and the program we at-the-market selling or sell what into soon. the

and and of of the that cash from when away. because equivalents out -- some from wanted analysts WRAM there excuse WRAM about point collectibility We were increased were it increased concerned balances. the to that million XX We've cash collection to $XX.X MCBA me, went the

continued And third has cash enhance to have position cash. collect We clearly, that and year-to-date during our that quarter. helped the

that had a at $XXX,XXX. investments. period, look the year in for quarter of XXXX, a when nonqualified you million positive unrealized The other plan then noteworthy on $X.X same item quarter benefit the is the we was third this And loss

what have the more other was go see from where and bad added last assets market year you these now in then stabilized the So become expense. and really $XXX,XXX and income have to productive

XX. Going onto Slide

designed. that As the utility so bond earlier, cost more ROE, of change. index tracks changes index. Moody's to Dave changes it's capital in period to September points, than October when for X and the year The the to XX/X, as bond And given bond adjustment XXX marked mentioned file in mechanism allowed and basis the is our an performed from a it we're XX% of index XX adjustment a

to essentially, XX, September So the from X, XXXX, XXXX change September XXX excuse points. basis me, was October --

a return equity, and adjustment of the ARR up return to point variable to have which of increase rate an we overall our ratemaking. return, in So rate as us XX-basis for to XX.XX% is in filed our brings a on X.XX%

a XX. letter on That's Tier that's been advice filed X October

tariffs We have in, of October here to into in the the that November. year early remaining the it changes and program get the then for gives effective expect to time us sometime X. approved that And

mentioned, to million XXXX. add income our into going $XX this approximately Dave As will

hand regulatory case. going of over the on Greg Greg? Speaking an to updates, update to general California Milleman give rate you I'm to

Greg Milleman

Okay.

the actually mentioned, cost X. effective Marty clarification, it for capital Just X, effective adjustment he January October of that said be will

that I think mentioned unintentionally he [indiscernible].

currently quarter know, second point requests information with Moving was that judge the been December case. case. it And from right main to working to forward they're you the added the as are set, with demonstrating our by a rate is, judges that second California we have getting that that's from along complete general The and XXXX. XX, case here the the clearly proceeding on deadline hopefully

other proceeding Moving XX. regulatory These the are with. are matters to we Slide that

capital you our application we to $X.X by see, to can a raise As billion have increase fund our program. in, ability to capital

end are seeking those rate a I related we also XX, Washington completed -- completed company filed it in that case through recovery XXXX. to XXXX. $X.X then and increase incurred And million revenues effective. of of our the believe the through expenditures We was drought that we July by to finally, -- expenditures became

Moving to Slide to Marty. back you, again, XX,

Martin Kropelnicki

Yes. Thanks, Greg.

underway press polluters final that discussions over certainly, last In activity. there's been terms has settlement ton reached, of with the what's and quarter has the a no and there been PFAS about happening, regulation the settlement of been while have of been clearly a lot

of there's us, our really program. PFAS For kind no change in

We that us have memo testing. with associated to costs with PFAS as allow commission a filed then to the capital letter an file to allows advice we've that us to incremental our application modify well. And on track account track

needs approved, regulations would to is, that investments it us and work play The apply to significance into incremental we the early, start I estimate get the million the $XXX like when to about. of and the and is the allows as make also to we to recovery. program we we come that ultimately for can systems being PFAS talk that that out operate that treat point capital our capital

slides in that this deck business. capital part planned during the the rate put is ordinary we of So the case course that of we

in show Something that the incremental bad. like change advice just to have the Hence, we capital spending regulation capital, through case. process. incremental the we in we it's it a It's track requires this that letter and rate

Slide to Moving XX.

$XXX fourth the what anytime see that slide couple where rate Again, soon. going we years track the incremental and that's we the And company while to is get the what asked be Again, the of that's decision will this in slide year-to-date and numbers for needs spent case investment quarter in on actually trued the kind we slowing or you through the PFAS on capital high get treatment based are used record last on the capital up anything for see a for process. case Likewise, don't of see slide. from X-month have for PFOA CPUC. we also rate down when will new The we overall, You'll we've the year. are at a million. the final

investment what when rate based is base. trued Slide the will that at on This base general assumptions. our this based the the XXXX Looking we flows have current looks case. up XX, on forecasted again, And to like our get rate a from decision through commission rate

we. mechanism our So mild Maui. The season kind it's going January happy systems that Obviously, put to we're a cost has summary, in been of adjustment Slide in XX, correction, thank Greg, where that to are ROE you to X, and any for we and didn't of fire West capital in damage sustain our starting very XX.XX%.

in and an least above ROE remain the continues capital. to decades. had put haven't We strong last of to infinite places CapEx there's at XX.X% couple

business, the on the So capital things well. side of are going

the mentioned I mechanisms is can the and revenue of be regulatory to we revenue rate when general very temporary delay the those experiencing The earlier, mechanisms and we case shortfalls absence due recognition Public in as are of Obviously, a the Utilities California frustrating. anticipate have fog the that Commission. from decision we of

lot XX, worked conclude frustrating, and is case XXXX have the encouraged where see for to I'm to also administrative the on is deadline our rate wait rate financial for XXXX. have reporting. it's the very I they that current we Greg, Like December case of being on. that The know confusion it But causes to commission general in a delays file

So the hopefully, we near be end. will

going is documentation thousands and to it's big questions we that, testimony within that busy to addition case, XXXX And pages on of to company. thousands of and filed. answer case, the gets thousands rate we be on been the working have XXXX which effort work and their as rate In the a

working been team that. And may trace obviously, are treat on that to show pushing elements have wells our busy territory in service has we PFAS chemicals. with our forward the that PFOA or So those the programs we of

], So that, we with questions, please. will [ open Krista for up

Operator

Instructions]. [Operator

question Sunderland line from first the Davis of comes Baird. Your from

Davis Sunderland

there I XXXX? or [indiscernible] just morning, difference you into going Good this to business simple a there? deck, no through wanted just looking noticed thoughts is regards ask guys in in are I on share how going slide it's this the the any update pipeline. the Or at maybe development

Martin Kropelnicki

in strong. how No. third that to The and very, Actually, in closed was change activity previously announced pipeline only real The good the we No very we XXXX. at had system No. question, we Stroh look business be continues we Davis. that quarter development the that. on

system And so the with lot obviously, being just XX -- days we to Stroh's last thought that think wanted during XX were with case, We talking better We case a of this rate additional [indiscernible] the there the overhang substantial and in the effects associated announcements in EPS the put this use were want days on space changes of we that are deck both we didn't revenue delayed, the new last of closing. delayed and space what served line. the for the now. right was no rate the to the about disclosures discussion didn't there of

Davis Sunderland

would CPUC billion was equity on question other on a Any thoughts it. there my the other very come to I helpful. rates and helpful. in is then $X.X or And changes only guess estimates the when [indiscernible] maybe any be And would other debt. deployment Got that and continued if due and rising just filing be there specifically tradings this back for environment. just

Martin Kropelnicki

one? to take want that you Greg,

Greg Milleman

-- does between takes an to months that very through. go generally need noncontroversial that's to It's I heard the have somewhere the the application timing but it process commission part process. XX and generally they X that to like of

Martin Kropelnicki

question, the come Yes. second part Davis. your back And I'll of on

a the adjustment believe states I it's not You cost other California. of mechanism. of of mechanism do. the saw of mechanism to what cost designed aware cost capital very capital do that to unique capital And frankly, have is I'm

ROE and is increasing from a this up in a interest we're environment. that on when had second we step environment, has So interest right, our time, helped rate increasing the second rate mechanism

running needs this commission and company. authorizing filed the shelf in ordinary Commission. we basically to our It's So the shelf, basically, the the sell Securities application itself, the more And course a is us the equity debt similar financing business. to file terms in capital for with our and of program of that we Exchange and

approve administrative So they on the it's and to we a an then have with file the SEC. shelf commission, step have with it

of we mechanism increasing working highlight for that a and couple of going not think indicator It's all to debt. do deal the It's to stock a interest an file in new bunch I to do basically given adjustment tomorrow we're of great company year a of used sudden allowed the and go out sell work. as the every California benefit based increasing I financing to a in or in again, wait we an on want our we change to capital of We're have big designed index. grow that's environment. cost Moody's the then, needs. have of continue base ROE real needs regulation rate just to way the kind would bond And base rate adjust to don't to of that is rate years and that, And that utility it's that a increase

Operator

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

Jonathan Reeder

swing Not the into too bad, earnings of getting just now.

to by weigh made any Have you ROE the in know the increase? filing must mechanism. want on I intervenors if under what cost intervenors capital water date So opined of Or to? they the increase that

Greg Milleman

no We Jonathan, one intervenors Yes. XX XX the point have and in at October this time. has it intervened days. filed

X. I math did believe be But that from the October would XX right. the math it's I I So days XX. did November wrong.

X. and X November like more be would it think I

Jonathan Reeder

you. Got

X Greg that's correct? letter, the Okay. advice And Tier

Greg Milleman

tariffs. extent it. sure rules Tier -- did of they which it, approved that's right. follow cost adjustment we of the we math division our letter, mechanism It's But make where in also advice Yes. make of approves they the water that X capital the water a the then And sure basically,

Jonathan Reeder

you. Got

next application, strategy the in the talk be I to parameters final the next current the capital order. just to extend trying is got Okay. XXXX year of cost for filed it'd be to theory, application, Can a interest believe recently XXXX you their maybe due in about given

Greg Milleman

are supposed settled also on other discussing water a XXXX. on X strategy. that May to point, currently We at haven't are with And X, companies this file the we that

Jonathan Reeder

All right. Okay.

at that's sounds and it the my for think with to at guys the to ALJs them, question coming this as but consistent case hopefully requests back the [ continue And point I we await up. ]. for good if least it information it's that are PD you buttoning certainly working on

luck good that. at So

Operator

question next Angie Your line from Storozynski from comes Seaport. the of

Agnieszka Storozynski

just slide, that a year-to-date made So commission bridge have XX. would had what with basically which to going to back Slide actually decision, the been attempts the they so results

So a IRMA, million for range big million, to range. can $X.XX this say, this line right, $X.X big that for I first versus well, ask

-- a So it in -- why like mean me could it you from is from is there settlement just what partial a the range it -- is case. is -- explain there mean, here? if to a I a I

So just again, range so here. is that I why the understand

Greg Milleman

The settlement did we disputed basically expense did address that really partial the Certainly. O&M had not program expense of not projects the that It any on included matters. and case. it items, the design address rate was the in we in items capital

felt we that application we position. is achieve. in range consumer that should what range high is they filed our would low And advocates the our the what so what group, be And the

and The requirement was settled no not the of was, items not the it of revenue basically course, for the settlement a lot big that's items really revenue So a of reason and, settled. requirement range. lot

Agnieszka Storozynski

just don't 'XX. -- guess the all then earnings assume depends, DREMA January And that in that, that's the 'XX? is decided to to that XXXX, right, we still should from fair it for to instance, February? I line, So stream Would is decision that to 'XX? mentioning or Okay. that it be I know, you're made or be in get when allocated What in, right? move decision 'XX going if earnings But

Greg Milleman

that to need I one. think, Dave, answer you would

David Healey

Yes.

way the the the we're then filing, end the works the and advice proposed which we going year be and filing get take approval. -- it's first So letter a at X is, Tier filing that's get prepare quarter advice going to of that letter would would a of finalized process to get XXXX decision months to we several in the if

going end it's So second the of -- towards the half to be XXXX.

not reported be in it -- there's XXXX. will So

Agnieszka Storozynski

that. would Okay. XX% to of And to jumping basically filing roughly it mean, equity is issue like assume ratio? so basically, equity permission sorry, equity. equivalent to -- -- the the equity mixture is with But the the that I'm a fair bonds, allowed then be component I of and that

David Healey

Yes, that's assumption. good a

Agnieszka Storozynski

associated Okay. And to But then all absolute the maybe [indiscernible]. if should the performance what's the earnings or number? it your with lastly, year-to-date year-over-year, pension what's associated -- the infer from not at I be drag, of able the what's drag nonqualified funds? Maybe

David Healey

to the we the where have -- referring XX. loss unrealized in unrealized Are you in the see details we the you I XXXX. gain Slide have versus in that think XXXX

Agnieszka Storozynski

it. Okay. I see

Okay.

Those actual are not actually numbers. So numbers. are those year-over-year

more. one Okay. Very good. Good. And then maybe

dividend have X%. into the waiting of -- issue. So Is raised high the little, the We visibility again, I that -- I a you mean, was year, only know but I'm sort transitory the right, guys decision ROE. GRC that you this now for assuming presumably we're there still that, relatively

forward? Or historical that that cadence? simply will should suppress go mean, So dividend the growth somehow we we different going and environment the interest are back increases a rate to the dividend I will in expect

Martin Kropelnicki

No.

pay program, and payout well the you to growing between stayed kind And program. had XX% always its overall need increasing ability has to program. keep the a have with that there's when our dividend Nonetheless, of right, of And dividend, to is that Our year. of we we total within have every we company XX%. it ratio your long for Angie, I a to type history takes the are Obviously, help strategy, that finance a and stock away single think from capital return that range. recognize pay

at would look I things. So X

don't rate delayed estimates we're of the come out, out that's case. to use to you as financials the starts what kind and kind financial up the the right goalpost because but rate we away decision think when very we of pointed just think like. fog statements everything I where look case, is the have delayed of It's It's go why certainly, you know. caught ultimately giving foggy. to book I the the But and everything and of you'll from see we hard now see going and we get fog a

company to I every not deviate its the And dividend the expect do from year. increasing of policy

continue. we will The is now what bonds that rising on of are risk-free rate duration think in or return acutely question obviously, you're looking much. valuation. also your drive environment, that, X% CAGR at stock you're is a And with what depending rate I the above likely how number interest type our I'm helps bonds at that rate growth or dividend compound and associated aware annual looking growth at. of

just So it's be the for would right will last now. year, question dividend hard repeat of size case how is kind the itself, anticipate company what history be. years. right concluded. more But on of that the don't I of will increase I a now. Cal think will I And say think, with it The But a look, to XX much history say next we're increase Water. with It's rate consistent the prepared and to question

Agnieszka Storozynski

one Okay. that the was question And now but promised I more. know last just I that

strategically refocusing so of question the That's going did a Again, growth? organic I this in there question basically environment? that again, said, in on utility incremental guys from we growth. there strategy organic to financing way an speaking, higher have, a PFAS would space. of, continue think like is growth investors you Again, is -- number But organic of more towards you hear I Is acquisitions. the shift a that's -- from of So across give a you -- potentially as this M&A? well, numerous couple

Martin Kropelnicki

Yes.

helm, year, market. think point turbulent have certainly, at been for our of the it's mean, that annual I I'll I we kind right? report a steady this

what, [ years, X.X% interest ]. sub I now could last ago, think the rates, X XX the on our to we money borrow years at months borrowing rate your X.X% X And line. today,

issuer. stable We're a A+

service value always is as capital sellers. I said And of cost going And that, may may we think we've new bring buys. a onto there out going those been our a buyers to platform, Angie, it's looking up. the kind means improve Having on that we're shake little going to down our out hopefully and deals and think into be always can it capital system slow focused underinvested. that bring systems bit, So I for of be

side. So optimistic M&A I on remain the

last doesn't mean had the announcements the question I system business earlier, that might system days. has about our the just we this in to And a Stroh's closed, in didn't pipeline good include Dave we quarter down little team. think Washington. development That was any, was it one bit. just And we the slow asked slide It XXX had out come haven't XX any new have connections. spinned very out it means a we because

And strategic promoted his I that's Chief may Patel Some role leading full-time as we for that strong balance think have we our sheet. job. into case the accretive. And continue will again, fog get of have Development delayed as Officer. have rate but seen you a will the deals Shilen And -- we very to that we of to to be look that

find gets And better when market opportunities. the you tough, sometimes

going be looking we're to there So continue look. to and out

Operator

time. the Chairman for have call at Kropelnicki, and in will [Operator to Marty other closing CEO, no over Instructions] the questions remarks. now We queue this I turn

Martin Kropelnicki

rate we [ up the for Krista as we of delayed end we as end to Thanks, are reporting calling into getting with in some at it results as and wrapped the this year-end Great, on case. look accomplish. our Thank thanks go thing then, here, you. we we everyone, get certainly ]. call That's today us kind mentioned to look to this soon. because now. for for go talking you staying Hopefully, and want We'll through Greg forward be big the of really we'll things safe XXXX, we forward and have to Until February. please to

Operator

your for may you This you disconnect. concludes call. and now participation conference Thank today's

California Water Service (CWT) 26 Oct 232023 Q3 Earnings call transcript