CWT - Earnings call 4 2023 | California Water Service Group

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Operator

Good morning, ladies and gentlemen, and welcome to the California Water Service Group Q4 and Year-End 2023 Earnings Call. I would now like to introduce you to David Healey, Principal Financial Officer for California Water Service Group. Please go ahead.

David Healey

Thank you, John. Welcome, everyone, to the 2023 Year and Fourth Quarter results call for California Water Service Group.

President, Marty Vice Chairman and President, Greg our is Jim CEO, Treasurer; today Affairs Milleman, Senior Regulatory Lynch, Chief Vice me Kropelnicki, and our and and Officer. With and Rates Financial Officer Replay in quarterly dial-in earlier results found issued our was information call which be this today. for can release, be April XX, will replay The XXXX. available until

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

fourth Before few results, looking at statements. the XXXX cover to like year a and take quarter to forward-looking we'd moments

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

to And now over I'll turn Martin. it

Martin Kropelnicki

joining today. Good morning, Thanks everyone. us for

results through have We growth [ a little bit for year-end. the bigger today going of ] a

Dave Financial as certified you Officer. of is only the Officer. Chief many know, up As Healey Financial interim the in Dave Principal stepped financials with our wrapping Healey the in me year as

Senior After Jim Jim in President Treasurer. has up the and Financial signing seen and essentially our search, we someone our everyone ended company. Chief Vice has company hopefully, I own conducting and be nationwide will for Dave XX-K as our and backyard, a So the Officer joined Lynch press release. hiring And the

audit partner company. joined Jim of back don't of a for is on many the number you know when you probably our at years from the know I many Jim What time of account was think his going I HVW. to

And last I'm so as glad our of Vice the CFO. and with working And joined that years. company for he's the had President very privilege our I've Jim Senior XX

of he to be the XX-Q today, will gets picking doesn't until presentation in the going the but financials start up Jim part filed certifying April. So QX,

today So the we for what what's delay on probably issued. that's XXXX on then an rate the rates day plan talk see, was in unable And the to is you'll have to the to the of about the here Milleman we conclude book reasonable topic general Greg continued with help APD which were today. delay, And going is based being as case. and APD big

to about that And so talk we're throughout program today. here going the

we and So Dave, then conclude then let's jump with will and forth and of to financials with the present be thoughts, we ahead closing going back up then presentation, Q&A. we'll different and I'll and open some parts as into go the

So to to I'm hand back Dave, it you. going

David Healey

you, Thank Marty.

income XXXX. decisions General pending Public with or modifying law Case or CPUC, judges litigated made rates or final or whereas Commission -- decrease XXXX California Public The decision California revenue decrease proposed to financial concurrently, Cal per the earnings was On the delayed new by originally on closely earnings XXXX assigned due by the XXXX assigned the a XX.X%. $XX XXXX, CPUC the January aligned year X, the decision opposing issued to new share revenue a attributable on million per the certain $X.XX December California was of GRC. decision, the mechanisms. The Water from effective of share XX, was closely requested $XX compared administrative respectively, was The January Moving was and highlights. the GRC to $XX.X requested million scheduled to be requirement. million, issued administrative proposed XXXX, In PD in XXXX, of an to alternate and administrative net judges. Service APD commissioner $X.XX or requirement, Water judges X, Rate XXXX set net Water issued Commissioner or GRC was full law law year issued to XXXX $X.XX, XXXX XX income PD diluted aligned And diluted Water's a APD, completed regulatory XXXX and to the million Group more earnings on to per Service more revenue primarily assigned diluted and on Cal rates XX.X%. CPUC Slide by the Advocates $XX.X in decrease Company, share Utility

On proposed to alternate the February possible the CPUC Water change if be Cal issued. filed XX, and by or a the be several issues. of which were elements second unable determine to decision the PD correction We will APD, X proposed in XXXX, decisions adopted request will technical including of

a to the are ultimately and estimate As CPUC, expenses. impact of regarding the unable reasonably by we the XXXX decision on result will the made that uncertainty revenue be operating

investments was CPUC, GRC Once million in adjustment benefit XXXX, positively tax net impacted conditions GRC. the in pretax plan million due a driven cumulative reduction the in XXXX the favorable on due X, benefit gains plus market January delayed nonqualified increase to interest, in will be And income Also, income, approved to mostly $XX.X recorded. retroactive net due unrealized other income to a XXXX. by XXXX which by is certain primarily income by operating $XX.X to

a GRC revenue to XXXX delay. does full the the XXXX due to revenue on Moving X. not include operating Slide for adjustment year

from continued compared operating $XX.X a due customers' XX, $XX.X and million. revenue full as December XXXX $XXX.X partially California X.X% decrease to mostly a in X, decreased May decreases efforts. XXXX rate these And XXXX million, revenue were precipitation most winter increase rate XXXX, of revenue operating million due These in of XXXX decrease in full Cal water XXXX, tax to year to for offset and on in an authorized concluded operating and purchase revenue July increases X.X% power, was Water's from rate effective cost customer mechanisms RAM months to MCBA by XXXX. XX, mostly million increases. X% water, that, $XX.X X.XX% hub $XX.X return a districts $XXX.X increases on or of usage offset heavy decrease production, purchase conservation Given effective increase The million million in drought-related to revenue our equity

increase which operating million from XXXX an a to to decrease total primarily to income tax benefit decreased was decrease million total $XXX.X The million pretax full $X.X due income in due million. year approval full were compared in year the our of and to offset delay amortization decrease of operating XXXX operating and $X.X mostly $X.X in GRC expenses costs in expenses operating $XXX.X expense. of million in $XX.X the and $XX.X labor other increases production $X.X million by in partially XXXX million depreciation cost, water regulatory million in expenses,

financial facilities. Moving In short-term outstanding on $X.X million to increased rates to results X, expense short-term net higher borrowings credit million and on higher The mostly $XX.X borrowing XX.X% year interest XXXX. our due compared or XXXX, increase XXXX. to Slide was to

X. I'll over turn cover to it now Jim And Slide to

James Lynch

Dave. Thanks,

the under Slide off investment Cal was included terms achievements developer-funded X, for territory. service includes capital million year. on XXXX. success during of those The in that our $XXX of was made $XXX The notable Capping our of we Water total million investment. So million our capital in invested list total just of achievements projects. some We also our $XX CIAC

deduction due also -- increase in expenses, was a tax Dave $XX.X with XXXX, taxes we benefit benefit primarily investments. to and benefit our other Tax TCJA the to amortization $XX.X and nonqualified excess was gains in In from The in XXXX. that on of and nonregulated the mentioned lower revenue terms earnings, million maintenance deferred coupled plan benefited repairs In million. of that from addition, pre related tax our Act certain income unrealized experienced we and our

Turning to X. Slide

Our the about has success in expense. for the part in to depreciation XXXX, capital XXXX investment total through due period large XXXX from our Xx averaged spend

subject of XXXX, delayed finalization to $XXX investments XXXX the planning general For capital case. rate we're million, totaling

Our expenditures programs. PFOS XXXX replacement include not estimate capital with AMR associated meter or AMI, does

reflected to an which based states Water included general base in over by is rate our efforts rate The Cal $X.XX Turning XXXX capital rate case, XX.X% plus our other our XX. grew our is amounts in Slide billion CWT base, success rate investment XXXX, XXXX. estimated base on of growth, of to end increase in estimated the of

RAM XX captures XXXX the Turning financial on discussed or significant our mechanisms Slide per the per XXXX significant loss earnings our per and Dave share XXXX no and rate to changes by with between item most was revenue results general bridge. share income reconciles per our Slide The share. The and XX is share expense due with earnings earnings case the of and our earnings XXXX MCBA delay. Wrapping to Slide #XX. up XXXX XXXX replacement annual our

that, With discuss back turn results. to Dave will over our I quarterly to it

David Healey

Thank Jim. you,

XX. Slide to Moving

by to XXXX As of revenue the discussed, period same delay $XXX.X increased compared fourth not due year. increase the the XXXX XXXX was the for as last fourth operating GRC rate a revenue usage, does decrease in to from CPUC quarter from $XX.X in include adjustment to primarily from as increase revenue in the million mechanisms the concluded was approval. Operating RAM $X.X of The million quarter $XX.X million MCBA revenue from revenue million million increases, million which XX, increases of December deferred $XX.X revenue and revenue decrease customer XXXX. and in offset $XX.X on partially

last increase $X.X $X.X costs depreciation in $X.X which tax as Fourth quarter offset million, the labor XXXX and of same of costs period $X.X to million increase partially The amortization water an operating in mostly was of by income benefit expenses to expense and million. $XX.X million due compared was $XXX.X production an increase million million, of increased to year.

to financial XXXX. Slide on quarter fourth Moving XX, results

the a As delay. from discussed, does the due not include revenue adjustment income GRC net to XXXX

income net $XX.X to in and Service income per from a which employee increase million The million $X.X $X.X due water million share in was $X.XX the partially Water depreciation deferred quarter compared $X.X offset $XX.X million million costs. diluted fourth expense increase and California Group of million increase in fourth other $X.X in income, wages, of primarily earnings decrease XXXX. of $XX.X in diluted $XX.X of and was net per expenses, net attributable financing tax and For million $X.XX quarter earnings $XX.X was production and to amortization to in million $X.X share revenue the was income of for increase million revenue in increases million by benefit XXXX,

of increase $XX.X X.X% rates $XXX.X Net fourth short-term improvements due million on $X.X increased the last borrowings compared which expense a or our to XXXX, the outstanding the short-term infrastructure Group in quarter same to same the XXXX, million borrowing XXXX primarily in period XX.X% period in interest higher to fourth facilities. and of during invested from year. million quarter was increases in

Slide now to over I'm turn going And to it XX. Jim cover to

James Lynch

Thanks, Dave.

year CWT So was in liquidity the a $XX classified million we strong million of maintained which maintained group $XX.X -- cash, position, restricted. of as ended

combination In -- short-term Cal and about $XXX addition, had credit. of of borrowing lines our our million of group we on capacity Water our

Our quarter, aged of and collection our receivable the in the we ended $X.X improved past approximately fourth terms our the in in as year. receivable the same by reducing process compared accounts to time due by million accounts prior year

or up we funds program due in XX, the addition, program. are that California In In participating November, past through we XXXX. through payment accounts December rearages cover participate to for applied we

accepted $XX by looking fourth first hopefully, for proceeds million, end state. the the program, end in XXXX our from and was quarter quarter -- by to was the forward of application of request the the XXXX. receiving the Our We're in

did We dividend. declare a

that we remain quarterly to dividend That on saw the call It's X.X%. of a for ESG very focused our the XXXth And of I approximately dividend dividend, XXXX. lot and increases think our by our an priority on goals. folks consecutive we it a high $X.XX the declared is company. prior continue

quarter and in investment sustainability as at these through looking change, are earlier progress each and and areas made affordability, each including aspect advances year. the the our of We in efforts our infrastructure we of climate ESG, fourth including

earnings Again, items rate demonstrates RAM the and due which And from quarter bridge, on lot to quarter revenue Slide and in earnings share. decrease replacement of year prior mechanisms significant the being touched the most per item share our performance delay. a XX. fourth these MCBA Dave the the current fourth earnings to with no again, to per Turning our case year

update. over Greg will little the that, California With talk a -- to everybody's what's about Rate minds I Case turn bit the to General probably our here call XXXX most on

Greg Milleman

the of discussing I at the Dave call Jim. repeat won't summarized Thanks, start this. what

You we opinion, all those supported know and the in APD proposed were decision will exactly. that evidence our significantly by that and filings February proceeding those the in say decisions, is, the made the What issued. the was I that not X decisions the thoughts was reflected in

filed Turning line with just opinion Water's to commission wasn't XX. PD what in of and It was that also more the by are, association, but the our Cal trade supported Slide other Southern Edison Class the put the well. Water evidence California in policies also submitted California X Association to comments reflecting effect utilities water letter together and commission that that to the as a that and A

XX. to Turning Slide

PD. last we APD commission the urge and the we regards to X expressed to offices the week, with our during concerns for also met We vote them and in

speakers that between the there's PD participation at decide the on on all lot a matter. based by this uncertainty well APD, the right just comments now the differences have on of parties will multiple commission filed as and how and hearings the public been So as

I on arguments the in in court We January. some forward to months. to a Supreme good the we parties Court letter next couple had set the -- California matters a Moving few that that The Slide received XX. speaking that from would related noticed that of received we decoupling. news

So good that's sign. a

that on movement seen haven't We time. quite for some

are We outcome would and be decoupling, new requesting the general under XXXX we the will commission's decoupling law, will eliminates our decision court positive XXXX case. rate be and that very that for a in regardless, invalidate But again us. the that hoping

XX. Slide to Moving

year, cost the on for good In XX.XX% XXXX. know, equity later the for XXXX, capital approval we this we received a for of approval to news have received February one of defer well. return proceeding as and you We of already year. scheduled to that's As defer

Utility in So accordance million it on with adjustment a move for XXXX, with water Index and basis $XX.XX we the points based of procedures equity XXX down we Moody's capital fluctuates may cost of on or will more by Bond of also return up the start the mechanism. or

And to it over with I'll that, turn Marty. you,

Martin Kropelnicki

to a then business about for closing I'm some we'll up talk where little an thoughts Great. PFOS Thanks, going development at and on give and are bit give Greg. regulations, open you update comments. we

the to which On report. and of for draft [indiscernible] the parts the targets new PFOS side, nothing waiting We're or adoption the -- levels still regulations per EPA's PFOS, really for final PFO for in trillion.

would the deal that continues plans PFOS. is coming or now, in some quarter, wells second for guess a right have best or As approximately I XX that of this to third implementation PFO say we The elements at our anticipate XX wells out time. price with -- their company to and rapid that develop

case able are mentioned we included few in that we we that for before had wells the cycle, over the What implement last were production. type we rate haven't is to treatment those and PFOS X years, last in

valid experience of this treatment fair districts. of So had central some our of a we've in PFOS amount for actually implementing type

you XX if current [indiscernible] XX had require and wells this of we the about on treatment that XX. take total, type have the will that It's So treatment. in X,XXX wells total

mentioned, we company put that the to capital dollars expenditures costs do the is customers. of PFAS our think Jim associated do the will for the anything come to direct those back offset current not pending PFAS street the as help we a making and there some Nor doesn't anything the will treatment. numbers include costs that that PFAS it to be with litigation, So lower anticipated [indiscernible] include be keep on that -- any recovery type with for

we XXXX closed our Moving on development deals. X at business to slide. Slide --XXXX, XX, In looking

These in we XX When status the the getting we of quarter talks at look the deck filing closed close. that in announced. earnings quarterly to are we've signed it are update you we years, an we the deals. with X last contract, that provide typical things commission where of a If total -- about our and

one Guadalupe including water see and [ Camino the public-private deals in utility X we Basin a closed River Real partnership pipeline, that's PPP, So public-private partnership, XXXX] market, believe the their and significant to you side. services the open the we in for XX,XXX on transmission up water connections, wastewater will water Austin Authority additional an Southern both which line extend water with

especially that as I utility a a but potential it's many we're of selling to see their outside Aquarion. acquisition. to assume not water utility, be announcements be very I they utility, [indiscernible] they're you our Eversource a as often will on going and that large public go going market through which the area, is think heard, made process. that, in evaluate that service Obviously, come It's will water you or interested we

said regulation constructive seen and we're over about than the has of Connecticut been also Having years we've the been that, very what has it what last historically. concerned couple in less

starts, we that we process the own evaluation. take internal do our as consideration into So all will and

to efforts I'll about getting Look, general this. -- a I'm clearly before in the to XXXX I get CPUC's be the California in case. So rate appreciate with cutoff. associated disappointed summary, out our decision delays I year-end continued just really our frank

believe don't create the uncertainty more essentially same between confusion, a issuing created and the APD more to at PD differences X time their I decisions. was has given simply intent but the

could Jim our and is decisions which not clearly conclude between we of unable year. in be the mentioned, reflected book the anything the X, were for results will Dave and X had adopted to differences the ultimately financial in XXXX, given and As that therefore,

case. be final for remind reached, January have to the everyone, treatment X, we will While general is that memo XXXX do XXXX. it is rate back a And to retroactive decision disappointing, I'd account like when

will to on there's the try the be costs, customer's said -- essentially billing that when surcharge 'XX, means different way, a taking back and conclusion, get a very is in be carrying bill tariffs final get impact to will we'll adjustments on be what XXXX. it XXXX. and recorded adjusted the that disclosures those the So a do That also clear go we in

the can what Street understand So amounts the are. dollar

I associated delays accruing more with the costs audit with our it going disclosures where customers. to money continued with get sad rates we thing It public overall, the customers And are accountants with got account the for continued It benefit gets it delays because comfortable costly. us just think the we interest. matters. company costs money [indiscernible] is doesn't our more refine through is the more these just PUC those the and because

think a again, But had bad don't commission intent. the I

were stay. to thing. will have At into a trying go the meeting they the situation as can are March They vote think issue on good of They I The hopefully, March, do can time, that vote new CPUC either they the we next issue the And resolved. on or can a we at make the they to is PD, the X. one in table a decisions APD APD. in X now. that can changes

So company on will the up all March, have the eyes disclosures once general ends will commission public and to see what case. we come it. with rate ultimately be finalization out our we'll XXXX we on Obviously,

created case the and general I lot are clearly are of rate other the is for a think Well, a us. number highlighting dominated things worth work that for year. just There of

understand prime quality provide all and and water, all California, secondary we First, New states met the Mexico. standards, so and drinking we Hawaii exceeded Washington, our water

million. year-over-year. XX% at with capital mentioned, our As $XXX plan associated infrastructure new That's improvement record we had up investing Jim

and in We most recognized We among Business West. water best overall. us the responsible won for energy Newsweek responsibility all Power XXX named highest and among us most ranking customer once the and #X companies our J.D. second utilities in by corporate of and our and #XX again companies were Los overall U.S., trustworthy the one Angeles service utilities, the Journal for outstanding the Award

good I continue fires. change. work. in Mahina four, to to happened [ sustainability call attention that doesn't on improve would and reliability, that doesn't just Maui investment Anyone West number we ] everyone's progress the hardly wildfire our think in events Additionally, efforts make the in climate to

during were we after in Maui and recall, West those will the fires. whole time in water that the you of only many service pumper As stayed

incremental that for was investment sure the were so that And we Company Service to made of Hawaii Water direct a result make wildfires. ready

And a of and a for worked job so good clearly circumstances. very it to set very, doing in kudos hectic the team

out, XXXX And just to earlier. mentioned this return started with we equity lastly, I a on want in We point XX.XX% California.

extension cost we XXXX when not to will plus XXXX. until has capital the any of minus will file get will go of which we California of to ROE of period. That mechanism of end our Additionally, that we means into our the agreed associated to have cost spring performance we adjustment adjustment capital the $XX.XXX or announce the with proceeding, with

focused next the March of March I So key on is the it's meeting meeting look we're moving this meetings getting CPUC XX, in on also couple as forward X. forward. and rate looking a and on. Clearly, things XXXX forward, that, on the case. general mentioned. commission We that After with May the a delayed XX to and April there's working done decision X

our ESG announce Scope disclosing reduction our in Second, March, publicly greenhouse progress and targets. continued on and X our Scope we'll gas setting be and program, X we'll

many very support as affect of together we know, thoughtful change. Cal we think we've put customers that's on a very how focused ESG how you and climate Water-centric, our program I

Scope be report. X as good based very emissions, a March. release done has announcing in and team greenhouse the processed third And [ and job scientifically annual Scope of working our May, X ] we'll on So gas ESG we'll SASB-aligned

and team confusion, XXXX Likewise, mentioned, new think, care at public lot case rate customers with a Rate general while of detracted from utility. work our our that State in climate our that In inclusive for is change we'll important the Ray mechanism I customers mission our closing, of of running and we Case believe taking has not of core the extra the following of patient. created for July the and General deal I a be a as has lot for very as decoupling

case to forward working the look following the general the including on the forward rate As XXXX with concluding -- decoupling we and rate -- case, forward look CPUC excuse me, mechanism. we XXXX we look

our and commitment the service our remain process ebb steadfast doing focused While at standards and right times, on to flow our for regulatory different what's and not, can business and service customers. plan do and executing

open John, for And that, will we up so it with questions.

Operator

UBS. Your the question first [Operator comes Instructions] of from line from Orrill Gregg

Gregg Orrill

Court there be decoupling about So you implying heard. going Supreme are on Was that? something to arguments the were further

Unknown Executive

Yes. a We -- all to year XXXX, is preceding the this utilities saying the to received date party for the that earlier set expecting looking letter are to a that year. in court arguments later this

all received of that. we So notice

Martin Kropelnicki

be briefings So will work sometime. consideration. probably us they taken by the that to have moving determined essentially, all scheduling filed, next has will into look arguments very again, the And that, We they've I happy be within a on But as put that conclusion the forward, months, is to that well. and been notice hope forward few it that we're discussion that the bringing oral port. likely here ultimately

Gregg Orrill

Sure.

there? outcome? in the expect GRC for you that know be of -- the of that PD really How could and year. outcomes to half seemed get you confidence expected be yet dividend the you've did. I the between but a fairly do you the to you first decision APD when the a had way and it's And you there seventh, that maybe the so And the did guidance raise the on is the you second agenda part different got your

Martin Kropelnicki

the part with of go your let's first Sure. question. Well,

the with and this between about was via mentioned, in the commission talking the spent differences communications better. felt we XX days the Ex Parte the Greg my Marty's we APD headed. As PD one last which is mind, In meeting and

the forced in way case, world on But to were did that general situation to had not because rate a it want case dollars, of spent So I'm litigate put we the the works. advocates not saying millions settle. it's we company the and that rate a

judges issued the and that the than what commission judges Commissioner provided ever case opinion and on they rate assigned PD had different based in the X finding during obviously, concluded that on litigation records effects litigate the the or and rate we So process. case a concluded and the X

PD Usually we everything went litigate full the settled case. This we other in that through California, the is rate bedding going process a fully rate to fully we a a believe I because So than best that one is in of litigated case. rate had design. through have

you out a not rates over some have lot which your are balanced to is last building and nature plan to have try capital kind to again, we of the spent I intents but said, XX for think, of try have think have to confusion. effort down, we're Cal years and you continuity as out. bring I know know Water, other of not because a capital their intended build XX, than just studied what plans I those why affordability some to of of were cost I'm the out infrastructure, that and of create focused we don't So they sure XX, that XX very years

has decision to the part right think got the on is they I which findings our So [indiscernible]. think decide And we've now. commission done based

Cal things that APD of as California, essentially previously in projects were as to Ediso it happy a taking cases historic contingencies those of rate-making rate [indiscernible] use could making projects well letter file now. fray, when more been prior that long, the have a kind has the to the then That's companies I've of very primarily been got water comments, into you've ratemaking as saying, especially from years the California some and no, and state go that out for prospective advice multiple approved time. you in and around errors So provided to the have state other We potentially the of jumped see pertains change the included process rate that forecast long in

commission So has I to think conclude that. the on

of you can question, your me, please? Greg The second it for repeat part

Gregg Orrill

that action a the guess not seem and the would help I'm that of difference you really Can to PD much APD. the was on me correct it I imply between dividend there? the where there's wrong

Martin Kropelnicki

Sure.

around So Water the let's succession benefits officer year as a Every the planning behind goes and dividend talk dividend and it. standpoint, governance lot process about that a Cal board in the also from well. comp and fall, just planning, capital in does

the start dividend and the November, on October So usually conclude Board as and we in January. a in we discussion then

the Look, the of company we fundamentals strong. are believe

the a base we growth remained why out, year-over-year, estimated good. that of pointed Jim As regulation California XX.XXX% rate have the we got believe That's ROE. fundamentals

the the company a we around of So commission. the don't customer this good. it's pancakes excuses it for of delayed the think And why are in not rates to bit rate delayed. on so strong. position I'm like believe obviously, little that's increases, make it. case will I consternation there's I And But and fundamentals frankly, not get and I this. through a

flows, it infrastructure. our invest the then And dividend base. part growth increased good, back rate us, flow that use the flow the who revenue It so And into up company in and we good. capital year going translates process. are believe to That ratemaking reinvest we every is of to goes and other which fundamentals the base and cash spending, we reward rate the of cash you we saw is the the in use investors and and helps cash XX% and good decades in all as was increase have that year-over-year. to

the fundamentals believe So are we good. still

Operator

line Jonathan of from Wells comes the from Reeder Fargo. question Next

Jonathan Reeder

there hands So parties been in the such in in written of on that made these at mix the point, questions everything. and and my terms of the in you with touched to of and like the ex just pushes is Greg. case But this jumping of filing this one point? other Like the by the commission's truly kind comments meetings the filings parte the at have parties all response

Martin Kropelnicki

all The Ex been Communications Parte filed. have

of in are Association chief, again that there in involved but some we're all third parties. letters comments, are think those of that done those coming Firefighters not are the from things the [indiscernible] drafting more firefighting letters some or comment all are I things their by the

the on did So those to more Do some And really my date of sense Greg. commission but you yes kind it's in, are is done, commission. still remember have an that? there's when meeting, ultimately, up coming open the

Unknown Executive

XX. February

Martin Kropelnicki

people XX. how February Then many speak?

Unknown Executive

they resiliency wildfire saying versus is climate the And of believe they harding building APD let's people and change, the on to speak all adapting sustainability the raising and California. PD and in PD concerns XX state about the best. were continue

we're think close, I So Jonathan.

has then I what they're ultimately do. going commission and to all think that in take data decide the to

Jonathan Reeder

it reflects depends that CapEx, request. be you $XXX the consistent the it the APD GRC. Can change I'm Then your how, million, on discuss were but to of of adopted? capital assuming if that indicated budget more number plan might guess, the PD the in you I kind outcome with XXXX outcome was an

Martin Kropelnicki

affect and do the could to could they still pages the I absolutely a XXXX. is the part program you to if in you're if read mean the that lucky case. The delay the concept, because letter enough do in previously of you'll you're capital have pushback our But capital of see via right. and you read decision, lot say rate of you in was APD, for approved can it advice decision the affect capital either last XXX

the you in think what's a after because, very on I interested going changing rules it's the saw again, they're why fact. state, forecasted capital other utilities here and So the that's become

pushback in they're regulatory California. to of state is our with have process That I I know how rule one the going commission. on that, met standard that the Greg points So in been changing rules you're was obviously, of long don't big a set that and when the the

way just depends it go. So which they

the efficient risk said do and that, upon basis an a can annual still basis to the they're outside having in it can a on the Now that incumbent gets either saying, company an case, you or file do "Hey, continual picked our look, you of rate do is assessment obviously, your work advice capital capital can where letters" to it do up case we on the most and advice put and to letter rate And it's we extent and needed. capital most filing. next

investment, continue the and doing be going preapproved the So going on a prohibits water objectives. that and it you to is in goals path, run mean process need there's nothing ground to it they good that Is and think get company the they What from our capital does that recovered? just how in do is utility what to to to be earnings advice the apply depreciate rate to in it general way historically via anything is case. you got Greg, they that? for get got and you have or the worked the you to plant do means which service do up letter an letter, on or you start pick advice it then next add to test, do it the and you'd

Greg Milleman

rate-making we rest seek and Well, just they But rate recovery, you philosophy. build the but the handful a didn't of how being were think just yes, away that which, say But Marty, allowed along state were forward-looking that the goes of didn't mentioned, projects I is as these more for projects. that lines They the would recovery. -- it point get there my just were them, recognized need were they projects were the bad add you that the then of appropriate. from

Jonathan Reeder

guess, rising that, kind XXXX, with forward? XXX like, of should from been levels kind sounds CapEx increases sorry, So just or be XXX where even the that and and the mean, consistent in the of levels I mind, XXX PFAS the I the on expenditure you've needs beyond looking Or we of should moves I the not, of, that with guess, we keeping right, deploying anticipate of kind XXX mean, it given higher kind this or -- I year? the we're if more either if

Martin Kropelnicki

us that building dealing company good plan of change. of as balance Yes. well Jonathan, affordability reliability kind at allows with try a and to long-term climate needs has with look, I capital say, really infrastructure out would as the the more and a done building the job resiliency to

down. I West case Maui, a that worked I think the right it And what that with we're to that's those rate with Commission do harden think that I the why This continue. we Hawaii going and probably on all wanted don't to point was systems. That don't out. to because so should fires that at And work by West hiccup by employee an out, is the were So now just properties I wildfire and see we needs is the was commission late. company inspection surprise by But need go anyone slowing That was water That the side that the was end harding are of water clear. we was are in backup training, the sure pumping the by by wildfire That was the good design. day, of only whole on Maui. doing through to that putting process through make planning, generation. good we when

think, So storms all it's take Even cost year, I we there's for But this storms well. have the year. the ready earlier last be things. -- these a performed ultimately, to

for hasn't energy You outages. run kind there then counted. no California Cal grid, the real out Water got" that for example, had power. "Hey, benefits X place. we grid other by and We didn't you in the get give governor's megawatts calls of When And had backup to using enough marginal able of put said, were and what are off don't we office take the systems us our

fit So view, all has the long-term the a have company view the their and that and the capital. together, pieces important taken that's it's take really to commission comprehensive on

slowing slow a I could little bit. lot capital don't see it see down do. down work because we've a got don't I to So of dramatically

Jonathan Reeder

you longer? wait see luck very helpful. if March if on get you a with to And have or we'll case. little anything the That's rate X yes, Good

Operator

queue time, Martin in our As Please ahead. call the we closing turn this questions further to for go at have remarks. will brief over no Kropelnicki I now

Martin Kropelnicki

press meantime, what's keep and broker disclosures. today. public our the customers And run to the by right thing. commission's Thanks, the X-K will an John. Everyone, best we everyone apprised way the continue happening watch Again, now are to of thanks that we utility, doing and company for joining sort really that that's going we our with know release focusing for on to us In the a how.

follow-up you reach And and day. any out of free us. today. to Thank good one any you, time your to for you a if feel have questions, thank have So

Operator

This day. concludes and you nice a today's participation, for you Thank your may disconnect. conference Have now call.

California Water Service (CWT) 29 Feb 242023 Q4 Earnings call transcript