SJW (SJW) 25 Jul 242024 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the 2024 Second Quarter SJW Group Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Andrew Walters, Chief Financial Officer, Treasurer, Interim Principal Accounting Officer. Please go ahead.

Thank you, operator. Quarter Results Second SJW Call the Group. to XXXX Conference Financial for Welcome presenting Thornburg, with Board, will today I be Eric Chief Officer. President, Executive Chair and the of

our to For would website follow remarks are along, at those sjwgroup.com. available like slides who our on accompanying

conditions, expected forward-looking factors related today, materially differ factors forward-looking results and of statements. are and are on posted statements. the current we These and this well actual begin future as remind the assumptions to Many that website trends, that appropriate from historical results, other those estimates the circumstances. experience, could light as would company's statements its I Before performance believes on cause expressed company made to the the our like you or presentation materials company and contain in by by may under implied based

a For be factors could most and our you to Securities any cause XX-K, Exchange some XX-Q, or results such refer press with as the we statements release statements. today to made actual statements presentation, and the description recent of forms this results financial the from that different may Group website. All of and on update filed Commission, forward-looking are which copies of SJW and be duty X-K to obtained disclaims of our revise in

the an XXXX. the of questions XX, will and of the will end until You archive This ask presentation. is an at opportunity recorded have webcast being be to October webcast available

the You SJW Group's can at website. webcast and access press release the

be measures the directly comparable or basis measures income accepted to the as now presentation. I accordance adjusted a to Reconciliations been GAAP of the table will accounting measures. that calculated generally should the information call discussed in the considered our supplement to most net an presented financial GAAP. turn diluted are In non-GAAP to of respective principles financial these have includes Eric. and share financial today non-GAAP measures a prepared of in alternative the than measures in non-GAAP States on addition, financial not the GAAP the information These United in rather some of GAAP earnings with per the financial adjusted appendix financial over

and us. to Eric and pleased I'm share the commitments, it environmental joining My on serve second deliver XXXX, and in continued of health our thank CEO Group. you to high-quality and to quarter everyone, and SJW drinking environmental my that Chair, stewardship meet Welcome, we honor customers. public for is and President, service Thornburg, name is as of provide and to water water regulations,

from, of our we Importantly, efforts meaningfully listen stakeholders. also the to experienced to, to learn and focused benefits our respond

principle through For local XXXX advocacy WRATES, California, in rate example, most Office issues we rate agreement water in on Advocates a Public general XXXX and reached the our in organization, case. with an

of rate a expect we We the year. In about will within have the the our or environment we formidable later on the this and hopeful been case. the filed settlement constraints are approve upon, Connecticut, August issues CPUC settlement X but XXth. agreed be complete policy agreement worked will general to regulatory All

in going it Now was all there already all of a and is the need a get case, or, are we direction. from for particular room that But about. expected we right thinking frankly, didn't that rate improvement lot which we clearly forward, step we

which to for team's the customers to able the in Connecticut first-of-its-kind significant eligibility Assistance engagement work, our the financial proposed financial filing the to decision. program California expanding helped utilities. assistance final industry for with that between by water we local Program, case, our funds and local strategic were state and securing rate transparency facilitate in the commended improvements a alike. And that of and is regulators, decision Water draft Connecticut responsive I'm in members team's share was hard approach, constructive and by stakeholders Our Rate serve proud the additional and parties

Additionally, and expenditure infrastructure, utility across of constitutes second million plan. invested XX% $XXX and of of XXXX approximately $X.XX diluted also non-GAAP capital earnings million earnings quarter. in the adjusted wastewater diluted our $XXX which in And enterprise, delivered water share we we share per the per $X.XX

from with every and than difference the people Now, our This ever future, you be saw truer before, the that quarter make Connecticut hear will respect, on me quarter. and built stakeholders, prepare for this And local is we SJW trust mutual that constructive as Group. difference say relationships our California at to we we that know critical.

to some challenges it the we that. just needs get PFAS And new teams infrastructure, has to mission legislators. with water replacement few. local regulators to There's of service. industry ensure tackle copper all significant lead and get done our high-quality and to and no aging can ready shared work a we in the to relationships our this about their need name know we providing achieve we But and and community remediation, our and local our effectively reliable, done. are ahead, that's customers our with And these well, question that communities, of for committed investing how Our question standards, members most

financial also regulatory our employees, state advantage their it's our results and to operations. common in that, customers, the over resources process. That's investing will goals, the in collaborate ours. With to a we competitive stakeholders align to to and and shareholders. Andrew? effort, on of our our to other culture, our But achieving service I updates slower review needed with and of it dedicated are times advocate it's communities, easy and it's Andrew our time, pass a Sometimes approach detailed local to and

by evening XX% general revenue operating of included million driven largely close, income after of in of the the reported released quarter increases The and increase quarter one in water over the our infrastructure Thank reported our XXXX. reported you, in Last to $XX.X operations expenses, or at $XXX.X rate second XXXX recovery to million, quarter over compared each Eric. $XX.X In was second mechanisms, million, quarter Despite of that quarter, the local higher a increase XXXX. $XXX.X the was same $X.XX which we we increases production increase the step deliver $X.XX rate was of we XXXX. earnings Diluted for the growth. cases, a million in per able XX% were customer share more second net results.

$X.X results of pretax and quarter transactions $X.XX. below adjusted of non-GAAP have real been in diluted income estate excluded netted $XX.X Second million per adjusted reflected with net share earnings that loss million

compared The in Maine was and of higher million last in growth was increase and same and Maine, the by increase increases see, adjustments of revenue growth. year increase driven added uncollectible and the increase offset in reported $X.XX year. increase X% in higher usage increased XXXX. expense revenue was million, rate infrastructure higher recovery and accounts. usage production higher contributed wholesaler for The of was reserve our Total of revenue mechanisms water million and Year-to-date, in driven increases revenue and and for $X rate and from regulatory $X.XX mechanisms. Water the infrastructure quarter higher period by the cost As by you accounts customer in can a XX% California, XXXX. to $X.XX water the $X.XX increases uncollectible same usage Changes Connecticut, and customer attributable $XX in allowances $X.XX. period over from offset primarily and year over Texas. a we by general was were by operating in California $XXX.X principally the increased administration other release driven primarily $XXX.X and of tax partially depreciation customer rate production which reported and the expenses to was XX% cost, million allowance

X% for was driven increases, by quarter, and mechanisms, growth. in net largely was were the income As expenses, $X per to increases million, rate higher share infrastructure XXXX. $XX.X Despite increase. And year-to-date the earnings we compared recovery diluted $X.XX water production customer a noted

per loss $X.XX non-GAAP with been As $X.XX, excluded was net second $X.X over real reflected increase to mentioned Non-GAAP netted earnings diluted transactions $XX results share estate earlier, pretax have of million compared in income XXXX. below million. adjusted quarter XX% that

at-the-market driven customer of Higher and As can million activities. was water revenue plant The additions revenue end the higher equity increase the $XXX primarily year-to-date $X.XX rate of $XXX the the through in our short-term gross you million program. At of which bank $XX and $X.XX. quarter, by $X.XX. increase we Maine. Approximately production cost left financing had was proceeds million contributed California line of offset by operating see, growth million was usage utility available partially for of and increases raised second drawn in on credit, $XXX

for the pay of the our for XXXX, of in down second During advances million credit. The credit same average approximately line borrowing were of The average rates period rate to to in respectively. XXXX our quarter XXXX X%, quarter we and the negative effective The X.XX%. long-term XXXX XX% raise approximately and plan of was approximately balance line of was during borrowing tax $XXX consolidated debt approximately rate income X.XX%.

Public year. Rate to an or its agreement Advocates general Water to policy California, we the WRATES. and Advocates this Jose reached to settle rate pleased in we litigated Sustainability, remain, Office X will issues with are has expect Turning San which and Transparency, that later report principle be Equity, for case XXXX Water XXXX Only through

Utilities agreement submitted As later no Commission to than disclose XX, settlement required information. must California we and Until in XXXX. the formal procedural then, the ruling, additional any Public the cannot motion be August

a come climate XXXX. In Plan Social project. Jose the $X.X and application and U.S. requested Water effective that the A resiliency, CPUC replace high-quality several drinking million CPUC and fleet revenue on would million access for year, fourth years X of by requested gas and reminder, of $XXX leak generators, generation, as be made X, expenditure the advancing including the to date service, a investments proposed and advanced Justice emissions storage quarter this $XXX,XXX annualized greenhouse Metering our key filed CPUC's early increase capital meet increase of needs, a energy increase program and standards January an San XXXX, acoustic development. can we Advanced to systems to workforce the approximately we million over a X-year economic and as base water $XXX decision solar detection, improve Infrastructure in with Action it January water as rate expect However, as through to treating in as address well to revenue earlier finalized PFAS to electrification, Environmental May, reducing diesel EPA

recall, may majority between As of XXXX $XX and that to the and case rate million you project invest million budget, are the capital is general we in $XXX project XXXX. the expected a approximately is separate this from It is XXXX. installation planning in

on in Turning Connecticut June to general Connecticut, case. a received decision final XX, Water's rate we

effective the demonstrated final our collaboration. million improvements local X.X% hearings We between filing meaningfully in of in with and $X.X case this preliminary Utilities an in was the significant draft constructive and the and Regulatory which prior decision. value final July approach for X.X%, in a decisions resulted revenue. As Authority. engaging equity return up responsiveness, It earlier, as approaching Eric X, believe our the The shared case annualized on by transparency, from and provides Public of our for the issued decision of is stakeholders and a X% and from XXXX, increase with of authorized desire up

$X.X last capital approximately gave million near us and our at in our unrecovered authorized level mixed expenses. the Our equity decision XX% of debt. The in expense structure We recovery. XX% remains sell case

for However, meeting revenues executive performance first opportunity compensation time, PURA. set metrics of has for by additional to our million the $X.X in company the earn

$X.X to though because additional note replacement infrastructure important excluded reset to timing. opportunity investment pipe, As none is some XX% X. We $X.X and mechanism an the is surcharge, million, part of to is were process, was rate included primarily excluded. or million WICA of case XX.X% revenue. final the recovery for increase decision us our used in the when It approximately of had disallowed, annual projects is in was The that $XX.X million requested of the granted ask depreciation earn of our which general an infrastructure the our

to with through facing our in pressing issues recover quality cases. To need what approaching on going and these to along recover several aboveground final such the went engagement need rate together investments to approach replacement going driven all the insight that of decision earlier, said hikes. came forward decision, continue this to upcoming most customers that with collaboratively rate move to and mechanisms lot us, major future on address figure learned infrastructure. We PFAS as to of We are they to the our avoid continued to experience can gradual this a we way use prefer going to regulators school from to investments, and Eric abrupt Connecticut. like out right treatment and would we would and infrastructure increases expenditures, rate from rate of and and cases case. forward before and we legislators a rate hear we we to own more makers smooth by with water more the and identify case, expect work from a to essential local We're and recent infrastructure build aging process significant In we the

with investments to However, part on and we is a need benefits provide. that will communicate on us effectively the of they acknowledge equation these for the customers the

customers, a water the filed Monitor Maine for area as the program reduce to costs Texas, as opportunities water our that purchase X Commission of drought reduce will place usage its divisions. to of create increase to Water with We and that be help result company-owned challenges in initiatives measures XXXX. efforts in our as being Maine charge will In leverages tackle Utilities combination expect or and to scale. national XXXX Drought generation the compared solar service infrastructure in ahead Because June XXth, all also extreme weather. vendor our severe It through and U.S. lying continue of Public our electricity this, our of such to shared sustainably pass find classifies industry. On a that in operating us are conservation procurement we costs the effectively these will lower a of for

will to are supply the bring drought are KT to acquisition existing Resources our its earnings we water to However, August guidance it made of will we not situation but continuing to range acre-feet changing the X,XXX we impact the Texas, approximately additional on our time and last due monitor but potential supplies, Water in add water guidance. The take online.

Commission Public customers. to XXX Texas which Utility the approximately Additionally, our request approved XXXX system, the Water has of acquire serves

close to later expect year. We this

our The equity our net reduction factors on to support case remediation excluding guidance XXXX. increase for January issuance Xst, of the include: was outlook a strong guidance $XX million per finalized maximum the structure $X.XX January as per Our which investment the billion, capital well. share non-GAAP $XX on for XXXX: XX% Biddeford-Saco Xst, went X.X% to capital maintain approximately investment program; diluted XXXX reimplementation includes investments of from we effective diluted XXXX million, to level. The return to completed acquisition California, in on equity underlying and capital million of basis; XX% X.XX% to and based $XXX debt X-year PFAS was the in $X.X contaminant impact share growth a with $X.XX the in which WCMA $X.XX rate equity of and effective X.XX%, points XX basis of $X.XX ROE

Connecticut leaves business us California, behind regulatory decisions now XXXX. on the and us Finally, filings reinvestments well in as with strategic as with in prospective regulatory constructive current that

independent activities. estate that Our to growth share diluted rate of cycles. With the is M&A I over Further, real because anchored of reaffirm our will of off of nonlinear which case is to Eric. rate turn long-term XXXX of earnings $X.XX, call stated XXXX or is our sales X% we per that, X% guidance

Andrew. you, Thank

a impact our we is measure and our for outcomes success for area expanding company we One the is of we have ways support force access a One have financial achieved how where and been customers. in exciting as good.

looks customers. for to Water, our The installment Water income the financial support offers income-eligible of Program, years, X the secured PURA first-of-its-kind Connecticut approved and million and Rate for May due most expanding providing for eligibility to $X.X to customers company million forward need request past who past customers Assistance its it in California At Water customers deeper more Program. $XX.X experienced Jose state program to Arrearage The those received Water a most. Wastewater who and relief has water recent Payment will discounts or this customers COVID. was from help the expand WRAP, San bill program arrearage Over to the in hardship discounts the that

WRAP. our in program the in in assisting a in Just on good Connecticut case Jose last doing work history need. We San based customers little general was Water introduced on the California, rate first

As can you see, support has expanded evolved it and Water more since meaningfully. at customers to more Connecticut

Force areas. our Importantly, it for Good own has also peers, inspired regional similar beyond of impact programs our service amplifying the initiatives by

fundamental local Over we've growing and the have the through lot the SJW years, and to continues over effort call value a the with be intention, in stakeholders make times through transparency. successful strong distinguish genuine across contributions culture that And inspired growth. the and commitment teams they guide the and the essential continue reinforce to support several reliability, headwinds. our local to care, deliver as team's integrity, communities, by I turn environment operator. us of provide this position business strong us consistently excel with will built of for confident customers, national to maintained our inevitable to good decisions build that a that, our future. With our Group's stakeholders. and to to service serving last back I'll and an And operations we to I'm talented and platform trust operations ability values culture our we continue with as our our a

the [Operator Sunderland Morgan. Instructions] of line of comes Our from first Richard J.P. question

me? hear you Can

Richard. can, we Yes,

basis, and EPS Texas results touch of a on little both what I could impacts some risk to the but just bit, drought. overall well XXXX mentioned are as first risk you've the the guidance as you well? seen drought as an year-to-date quantify that maybe wanted on you to I know

Rich. It's a great question,

the will just base stage, have scenario, see to drought. this biting just don't what at to case if base we we out next stage say have we than until come have under the an we that the of that case gone I where as at. a would of at account. expect I where think this It's usage have that's going it settles And revisit point. exact quantification becomes into taken I to be more that they that scenario

growth then does rate? X% long-term understood. Okay, to how clear. the to Very EPS to Connecticut, compare your turning embedded the order X% Connecticut plan assumptions And in

not is the it's That's an we on potential of at within could but question. we well definitely expect it point range a where rates excellent expected have, Look, that growth to additive outcomes. the range this of or

might that while So, are itself other be any that issues business we seeing with as today. overcoming of of it are it stands dilutive, parts the the

given order Got Aquarion, on against final the state all understood. outcome of that reality but a the the does it, Thinking Then or high the you one attention lot the a about know itself. balance case also the one engagement and I outcome process, impact around had that of any in asset? public Connecticut. level and rate at thinking around commentary on interest the

I track. charging course, of but, were that forward proposed the and some decisions decisions announced see United a EV I encouraging of announced, some the is There which regulatory key heartened getting I their just for regulatory good just back involving on that. step is mentioned, own, Eversource deployment also work. here. Richard, climate, think Certainly, Illuminating to its a that was stands on with as of factor

Illuminating. continue of Governor at new lean retirement build appointed the educate has also going I that announcement, mention, Affairs and will be was is former And morning Vice also the and is United to are this in in an name announced to His of Commissioner served and Lamont PURA. Arconti. trust announced optimistic, a January years and regulators. was state he Governor Betkoski. so a January. for Jack is Lamont And with in there Jack representative, for He And President we Government might currently David XX we

a down and United recent at could Arconti's we to service provide be regulator he like as the would road serves as think would very that developments some there, in additional Connecticut. State valuable also that regulatory some former Illuminating perspectives So Rep.

the Our Michael from next line question of Janney. of comes Gaugler

quarter. expect outcome? Congrats I'd rate of operations, Do Connecticut start case you the the going the to on case. on like the the forward, rate given just condense you out cycle with to coming

go about we'll Look, that's we think, that I a stand fits to Michael, from that do best seeing what and mechanism recovery potential will monitor at. where is with recovery And we our this. standpoint make where when to a in as definitely utilize will we're continue the think we we decisions

past keep California don't crowding we we continue mind we in we've so want going the do cases Connecticut, to different at talked other times. rate larger so that divisions thing time as cases going to any about The rate in where is to the distribute that of have have also our in our in at same is

we paying factor. that'll to attention be our So, you absolutely will can second next be that a But expect case. rate timing of the

And a the given rate California end? settlement get are could Okay. confident you you the that over year wondering agreement, by case, in decision then how just

we I'd that We all-party Michael, that brief, the And the items makes an policy be settlement, just matters all decide. can highly achieved small then remaining likely. and that more X are confident we'll Yes, Commission the which can.

and to XXXX. this that all case January confident approved So, in on are ready Xst, I introduce we'll be parties highly think rates new

Great. Texas. one Then on just more

some and it drought, questions on mentioned You as well. the Richard had

Just year remainder the wondering through like. your what look the of supplies

down is normal supply, to is of full XX% a should our of capacity that say. Lake Canyon and significant lake or portion I of capacity, source its

that's a what expect you summer. normally to in so, And the from see variance pretty would significant

And what But significant the counties, water groundwater use the X in irrigation. for we drought customers, requires that supplies we We that is cannot of also of use. because introduced certain lake, the Stage declaration. condition have

implications work particular same But offset business. time, overall Texas significant percent is our So, of customers. pretty a I it at that there that's hard put in will would very team earnings and request our X the business, for perspective, of to the our

on still but watch with we'll our we there, guidance like we're affirmation said, carefully. it Andrew very today, feel track as So,

to this every were X major Eric to add one to The our we thing, Yes. too, for down about, just talked weeks coming quarter, already X what areas. into watering day

And which say I watering, so a have day supposed you no so, to look and be in you that not is. ultimate you're part take this but big case, think going that hand, no we'll to that's as move, there's a on one it's that to can what at of when the forgetting water the impact have

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

during I million when issues to first during did the in So, in initiated, was quarter? start the accounts things the Like, reverse that rest drive wanted on of the XXXX? Was allowance are that $X.X expected some of during that first the release A&G California instance, guidance or did lower help million arrearage $X.X there in quarter. or for expenses. that for receipt They decreased May, that uncollectible timing might

Yes.

that not So, position in more of that point part Jonathan, that ability, we that off condition. it because was at did, the important we that and to were for a a program, start customers applied the when were is part shutting program,

off certainly the So, in. didn't while know to or we an which to ability didn't had the have we to going it point, timing, amount to the in happen, would was going what the guarantees And given customers get so is that keep we the other the paying who bills, their we some that year we come shutting expectation. not as for quarter piece release other amounts that at total knew during component And the drives are well. this mind, start were us

customers it's their and positive payments part an to we up have of yes, to differently. program not a watch, part bills, So, we that not to it doing folks for was standard it's we paying our it these that saw operations, we do people were items. will those their shuts response on, us, expectation continue and that because highlighted now and on already remaining very something started we seen of it's But our pick that have why that will is the

so I XXXX/into the fresh thing balances fairly just it is are, this with year. other cleared will to speaking, prior program, that the The out highlight at generally of arrearage XXXX, balances were people any

'XX whether of I then, QX revenue trending year And 'XX remind EPS above compared Obviously, mind, but order significant case half above 'XX, rate California it included Texas results otherwise, and I now your of if any drivers us also like in the Just increases won't be range. have that Okay. QX or the full guess, guess, the second seems if that rate to the guess QX's range. you little Connecticut puts the second keep you end say would just half benefits the XXXX? in just 'XX results occurring a the second can the at or just guidance of it high you guidance there's if of differently, the I flat to are half 'XX, midpoint favorable

Right.

to look it's fair at think it. I way a So, very

be year, about a But off minuses. like that pluses would comments those that, do managing of The beginning so the not that's top And have of head. happened very there something something don't repeat. Outside top think Jonathan, unique pluses was when I would and a item. of just my that, the we make of were over thing of for head, I and that something I estate X the and in remember that all most is are one As I the off one-time in impacted minuses can't significant, there always what all items my months, have like that the that that the first real the the last think I items of place.

there. the seems the point, those Texas puts only to revenue the guidance being prior But and Okay. the X%. Yes, no it on in above who the you're there's based it is impact just like Eric year, seems think was of to like takes. Obviously, with unknowns your potentially around I overall, regards it strong or range of maybe half first pretty and position some a half upper in made the

Yes.

just this me the above not us seeing time. guidance range be clear we're Let that at being

we've has that inflationary the press want that don't that to we a do impacted date. as I release, the in feel say had there year confident. to highlighted impacts So, you been I positive But, performance But business.

have mind in keep the you thinking you're So, do impacts. to about when that

So, seeing are in manage well. positives there as to through negatives there, but we're that there that are we're some having

Sure.

you a ruling that Supreme Okay. how restored on Shifting CPUC? prospects Court's recent by water and How bit. getting the impact do about of utilities little does California for think the decoupling, the decoupling gears

the that very what, with was a Court that ruling Office A our across about I Advocate's Really decoupling. for legislation go Supreme viable in And opposition pleased know well. further made regulatory prior the You Public all of development. to using some tool. views industry on Jonathan? the the strong the collaboration But getting this California bodes now it clear the PUC think has great the to peers, to cases

we component which worked do a we've had on you I'm we're And going they more hopefully, decoupling that WCMA watch like there's see we how with ourselves, cases, peers, the But form of work in track more we've we'll final we that our very comment, So, to it. from decoupling. reintroduction towards know, it hard around, we of hard done our next our course, cycle be because standpoint. the didn't the of We'll benefiting one our look costs from our do option, their just take again, and have recovering through place of that still watch currently. at with service and in fixed to very them. And a using we trend And and in that charge then we're tool. achieved of favor carefully. charge, to that. as fixed continue carefully and And think

of in already guys provide last No, conducted me, sale in of relative can are as Aquarion the you the on timing latest be position the potential to for others it? strength Yes. a the there. might some But opportunity, understand you of thoughts including process you when the

And company. a excited just combination the with It's with potential the there's and and events a there, you would Jonathan. that. the guess, confidentiality about here. great as such we think to But the we forward We're difficult for look very like agreements assets, ahead familiar it would very our as opportunity one, process because be we're

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

prices, I'm capacity for Is lock have to just I'm there in weird mitigate ahead I or just one electricity things: how recovery about of rates wondering X just that it. a somewhat you just way prices So, electricity rising just maybe electric rising time #X, for your to mostly, then Do And prices, talk you a for think to electricity regulators overall. either bracing impact? And name water methodology of you try question. that think you regain you environment given utility, that will do that advantage improved bills are potentially be meaningfully this rising by electric bills? just will be probably versus water currently affordability of as this likely rising competitive in actually bill investors? price you, your again, we than that will about. treated and whole issue electric So, a forgetting us

have bring In us a customers. the an Angie. through. Yes. something do California, overlook account that to it's balancing to on we And our allows Look, excellent impact that on point put it's that up, we not

is that our would have But impact not on we California we impacts on So, customers. see us. do something directly an

time it's out been does in. period the providing there charge electricity have electricity which for continuing over based of to solar, convert the we the also longer and that a allow benefit for facilities So, to communities source over a greener of of for that fixes

think as we Maine Connecticut our to aspect we about second power. businesses, and The that for contract tend

And so we the advance. buy power in

rates we of where an than power, today. lower for those purchased because seen of they significantly clear, were rates, last before, That even be are over increase when to have were contracted time we We increases, in the we the to they something will manage some those that have come. said, that It's we them, in at have to we with being more reflected seen case as look already current have that. rate least at

For the in from that some your relative are perspective, And metrics to we relative value, out to at that tremendous look place relative bills, commodities all third that are though, for is in highlights have an to solid other item, average there jurisdictions, what there our in median bill our to of just back which of very other to below our deck we affordability, water X% utilities is income, and a you to household responsible our of my are and we a of customers is overall if affordability that of delivering. be. remind investor their our page the that the as cost

The Angie, and great being other programs that. save done shareholders, our it costs new money trying what order save to customers. reduces for new to put we an with that our are for to never And And customers. do, earns solar ways but in continuing for in, are thing a customers, outcome We example. are that come we we our outstanding is money for our continuing and it actually for to with up

solar Some Sustainability and is XX% Maine electricity of will for question. delighted I and then the X,XXX points. and of really companies. megawatts I Texas. was comes end our this I XXX% when good Report from we be By XX%, California power our And year, our and is of generating renewables, love saw Connecticut in the rising.

trying tapping well really for a market we've Good be Force there. into So, as to that been and

And then like question in the other general, just transactions. M&A maybe about

just far some So, true enlarging I which Aquarion, And O&M the is in savings power. Is operations operational for you in state example, or or Again, any other operate. any should same in basically example, the benefits a have as of but of you of for rule those, operate? currently quote side. thumb, for currently benefits same you I'm savings if water as state scale the clearly SG&A wondering also there for your on where the economies utility can

with for consistent to XX% understanding O&M I where Angie, power guess, to numbers opportunity. what I water of can have opportunity expect remember and say savings, I savings. are approximately It what numbers would expect, changes utilities my those from of I potentially nonfuel are from

So, you can you better, have are do well. there's to be that, do careful as where with when times and can't you there because thumb rules of places like

that contiguous to a I happen consolidations. there be something if were has That those to performance think have paid to. good said, to so attention being be And in that's consolidation, you contiguous to tend

Management. Roger Harbor comes question next Clear from Liddell Our Asset of

I can take me? it hear you

Yes, we can.

take of and it that I separate $X.X dealing true? from those couple million Connecticut. distinct expenses, are with A unrecovered Is of The uncollectibles. questions

Roger. true, is That

Yes.

it recent for unpaid call whole period. a bills, Connecticut in all that pandemic you make Okay. on increase referred the incorporated of rate United the the, The from baggage Eversource to and

public So, charge the bill. the component monthly combined benefit went up that about XXX% of

looked up operation. the through have also for July been that in made to and millstone unrecovered millstone Eversource So, on keeping the clearing purchase whole X. They power, be decks

at you least sensitivity did hanging on can you just that million you for with us dealing even why how and are issues. $X.X at those appeared there be So, to to it? briefly PURA And of unrecovered, a with talk they on

that there a factors the few So impacted different were decision.

it to because expenses less Senate was just of there that Bill was, there. dollars of was number component were was some million Bill one So, X had a of Senate said. take there total what That than that X offline, that removed that

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said. win, a Andrew So, that was as

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water can will they continuous portal eliminate a manual they will Customers daily leak. They that if their these have alerts all that usage truck hours for runs So, get use. a have will and track indicating intervention. XX

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make want its it's You use. intended ultimate sure delivered to to being that

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for are hydrants. or or question, to is a able the you. In Roger. water at home, in what and a have listen we're over various it deployed nozzle XX,XXX And the that we devices leak night, pipe. activated, you usage determine, fire built it these technology, California, Thank steamer are well, they is to Yes. the through And into of

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to I'm at I'll showing to Eric Thornburg questions like no closing this turn remarks. further back for it time. now

we with including our while have straight of rest greater I'm that today. and for interest we reliably more our our and shareholder the supply quarter. you, progress bringing X Andrew in to AMI SJW us I, are and up. rate today remediation people sure SJW XX and years. strategy. SJW shared on Group year. across decision consecutive proudly lot that forward We've including platform halfway And And the mission it sharing strategy your serve our water underlies make California, on time execute with with for make to dividend, growth in and Group for service paying Thank And who a value, million our we've forward look We local to to everyone, advancing a for questions. to along the leverages dividend we our case, of and progress high-quality Group. next faithfully We're our the follow our again to distinct water proud national initiative this, XX communities available you implementation our support in deliver look And operations we through for to always culture team, in got X.X which our states. raised do online of for of our meantime, joining possible. Thanks into Thank California a PFAS Texas, your our local your you years. it's all to customers I success. that done people again recognize very XXXX,

participation Thank This you for conclude program. conference. the in does your today's

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