SJW (SJW) 28 Oct 242024 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to the SJW Group Q3 2024 Earnings Conference Call. [Operator Instructions] Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andrew Walters, Chief Financial Officer and Treasurer. Please go ahead.

Thank you, operator. Quarter Results Third SJW Call our 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

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

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

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

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

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

and us. to Eric and pleased I'm share the commitments, it environmental joining My on serve third 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,

this including also We increase last net delivered financial strong income in from time X% results, a year.

national is performance building which and continued consensus and our our execution our key of with Our our footprint focused systems successful reflects and across strategy, on investments infrastructure water stakeholders. engagement constructive local in growth

For Advocates all we together. example, through Commission Public the the but with for in Public California, that negotiated San XXXX constructively case Utilities we filed California Water's general rate Office, a settlement XXXX issues agreement X resolving Jose with

and that increase received and Grid Texas investment amount in $XX total utility XXXX energy for capital X-year our we infrastructure. or we're $X.X anticipates advancing reduce a investing for have England. Year-to-date, Maine or and of approximately filings all covered million New through We both and operational in GRIP, billion. for Innovation of for clean California our and anticipate million costs. the miles our a million We of Resilience grant across steadily in plan $XXX to wastewater approval XX% advancing XX Connecticut million program, in plan replacement Partnerships water approximately $X also together operation expenditure invested energy pipe X Recovery system second almost receiving filed states, of infrastructure resilience Also, Infrastructure matching charge $XXX improvement Mechanism our that and

America's was X in Hartford of utilities Additionally, SJW of received Courant year. its list fourth XXXX, by Newsweek from Workplace water consecutive for and recognized Companies a the our Greenest the Top X award Group Connecticut operations

of earnings Importantly, of the diluted and adjusted delivered quarter. share per $X.XX we diluted non-GAAP per share third in earnings $X.XX

not Now while accomplishments, our culture our of I'm proud of is complacency. one

are Our know industry replace us while customers. looking water challenges to creative, for be that leaders to to with up other meet balance standards are find significant we regulators, at our and needs, resourceful is maintaining and times challenge. competing that new facing legislators and for these solutions We quality also infrastructure need affordability and the aging policymakers efficient to to

We are focused use efficiency, and on of improvement whether continual of AI operational other optimizing or economies while safety forward-thinking technology, the health solutions that scale prioritize exercises. public through

programs how footprint. Our see industry-leading meet engineers Connecticut microplastics pioneering treatment do and emerging national more of through PFAS and are groundbreaking also highest our a designing for expectations scientists research. facilities busy to in parallel, regulatory we that California assistance contaminants across the tackling greater as such diligently our we're evaluating income number can while customers In

to review ensure all constructive to advantage. With positioned operations. achieve to is our well to and we local regulatory and partnership our shared that over also pass detailed I That be Andrew state engagement results and our will that, culture, our competitive dedicated effectively. our our of are We also continue it's communities mission in financial with to Andrew? stakeholders serving to updates our it

reported quarter, of XXXX market results. driven was we of revenue increase same including increases, our Thank from operating largely a pass-through third before increase The the cost. XX% million, the opened, rate you, $XXX.X $XXX.X by This higher the released Eric. XXXX. third water In morning, we quarter reported quarter million in the

quarter increase was third XXXX. million Diluted to $XX.X experienced We earnings Net for per quarter which a was the expense. XXXX. $XX.X compared production higher share water income the of also the X% $X.XX reported in $X.XX million, was over in

loss million and $XX have merger been share income of and $X.X excluded per real quarter $X.XX. million earnings and in adjusted estate diluted of reflected after-tax results netted Third in transactions acquisition non-GAAP adjusted net expenses that

to bridge. quarter Turning third EPS

Year-to-date, tax production to cost of and You by we Connecticut operating our last increase revenue and yielded expense primarily and and California million, higher offset $X.X of of was water purchased other increase driven The revenue the from same increases $X.XX was expenses to and lower and of in maintenance, increase water principally compared of production higher increased costs the by and million same increased volume. Total quarter in wholesaler increases increased the $X.XX. that was maintenance revenue rate XX% the X% cases infrastructure in period pass-through the a over general XXXX. Year-over-year period costs for $X.XX was rate by higher XX%. $XXX.X California accounting recovery from can the $XXX charges the of XXXX. million revenue in expense Water $X.X increase change compared income primarily XX% was higher production driven revenue year. mechanisms. water, increase and of tax see and general reported because driven million $X.XX by the method rate increase Approximately in was year-over-year administration reported depreciation. by The

water in increase. million, XXXX. driven per cost. for $XX X% noted increases, higher As the an was Net largely for Diluted rate to increase was was earnings share by the pass-through we the including $X.XX year-to-date $X.XX quarter, income compared

year-to-date that a netted real been and non-GAAP acquisition earnings was $X.X merger loss income excluded earlier, expenses net and results. transaction estate mentioned have share was after-tax $XX adjusted As million $X.XX. and million diluted in Adjusted per

as for and and to change driven California XXXX. by Higher The was partially Connecticut. of ATM. was tax increase was lower interest you repairs of or can customer method the water in increase release rate customer uncollectible reserve and by increase income well related and $X.XX; Approximately in of increases increase revenue from in $X.XX; the and tax expense depreciation was proceeds expense cost, contributed administrative through As program, in $XX revenue at-the-market in higher because a equity allowance million see, amortization, gross year-to-date and primarily production income as our the an growth tax maintenance an an raised equity accounts offset added $X.XX expense the of tax in general of usage accounting $X.XX, $X.XX cost $X.XX changes deduction.

of plan The we borrowing bank our long-term the to total Our end available program current activities. XX. that agreement will quarter, approximately XXXX By debt we that were We lines XX%, and pay additional advances of to third million short-term November had $XX used we of an credit, the financing X% million California for used September credit. average for XXXX, raised third expire lines $XXX in $XX million left in to ATM of year-to-date million through that set of our of Connecticut is effective into line intend down raise quarter, and period prior for of of credit of average $XXX an respectively. X.XX%. line credit and a which offerings borrowing enter on further. new the be XXXX the down drawn long-term were on rate to through in additions million of a In plant to rate utility rates pay to was for $XXX the The same income X.XX%. approximately ATM consolidated date. At quarter third the tax was The debt XXXX program and primarily the operating end bank

with Advocates approximately and X.X% revenue X and the the to service, a allows X.X% January improve in usage The agreement total service of agreement greater Public advancing a San that XXXX million investment to electrification high-quality also has the The reached at increase solar City actual ability As positions Social generators, capital authorized issues increase agreement an authorized requested needs revenue our a access We to agreement to in is through rate and in settlement address are $X.X initial based view application settlement filed into with X.X%. charge fourth our San over annual that greenhouse XXXX. includes has ranged emissions a effective communities will cost October that increases treating a with with aligns outcomes storage energy CPUC to Only a finalized chemical drinking calculation. key charge year, for Under $XX.X of adjusting reducing regulators Office PFAS policy agreement EPA also continue standards CPUC of make to would X equity to this as Water's with negotiated earlier the to entered we systems extend in proposed and step us on Since $XXX water city's index. and capital cost or in customers Jose new further additional construction an increase diesel economic with our the XXXX. San workforce by California testament effective XXXX resiliency million, to and and rates upfront beneficial while the approved, proven The water water The years fee city's of plan fleet will Water the and balancing the subject maintain pay settlement X, year then, replace meet expected with between customers agreement the ATM, and case. the $XXX been through recovery agreement and customer gas CPUC customers decision A our payments If Environmental continue We local detection; sales leak acoustic became our X of is our we to water Cupertino. to value. for Cupertino XXXX. on to operate the expenditure the work constructive to XX be agreement, concession beneficial infrastructure. waste be through with a development. It the litigated, Jose delivering years. and Cupertino, and water Water and program. January action sales also of account specified of million the years X, Eric manage system to term we million the first mentioned The and settlement system budget service to disposal and each generation, to stakeholders this XXXX new system quarter expenditure to cost through full necessary forecast. the advanced of XXXX general arrangement XXXX provision approximately Justice settlement forecast. which funded the and Jose revenue an as well XXXX robust X-year CPUC's lower shareholder million a fee, and U.S. earlier, filed a agreement several through the such an annual $XXX authorizes remain achieve million it with will climate $XX.X through

city's bring project. helps a base X, to neighboring its well. A on of operation related customers serve became $XXX,XXX scale XXXX. increase water water a The the Jose annualized Metering and to As as was approximately $X.X system, that system million increase efficiency increase revenue for of Water effective and large Advanced scale San Infrastructure increased we CPUC-authorized rate July requested revenue

increase planning authorized invest Regulatory this project of expected On September that Authority the October revenue $XXX and X in Infrastructure was and to or to XXXX, million approximately and million XXXX. our that stands Conservation benefit The case customers. infrastructure XXXX. Utilities the is rate $XX.X replacement surcharge general XX, Adjustment, It project X.XX%. in on We Public became are million budget for at in through from WICA in $X.X projects approximately million is increase providing through $XX The is majority are service separate the capital effective and completed annualized WICA. the in installation a a Water Connecticut revenue

quarter, XXXX. As rate in case we Connecticut the mentioned general July became Water's on effective X, second

burden certain case opportunity week, XX% Camden/Rockland the rate increase currently total tariffs basis. quarter rate X decision the or to a also and our of of Water annualized XX.X% intends Commission end case in XX This and second which revenue and This filings division files Charge move current Maine filed a on rate general It Water for equity-to-debt their million company's Charge to general revenues a district-by-district filed year. and XXXX, August regulatory in in to increase infrastructure the districts. administrative is with a that equity company $X.X Utilities achieving structure. second WISC is regulatory provided for in general past the filed for earn or of consolidation $XX,XXX. applications, agencies in lag would an before share is is The a are for by year, additional maintained mechanism case Improvement X, annual typically return application Public revenue performance divisions recovery X above will petition Connecticut with X.X% this on were expected System Commission. staffs the I The the the improve is X Public reminder, An an a September. the was filed million similar Maine Water rate that Utilities increase XXXX. On streamline rate Maine revenue A authorized reduce it WISC increases general Millinocket to SIC is to to annual of As past or $X.X a September an increase WISC $X.X each a $XX,XXX. WICA in quarter that burden. Texas metrics; of efficiency, WISC file decision to revenue. Maine. a and Maine a the want and division case XX, on with capital an million ease Water SIC, the increase and the WISC Maine authorized requesting by of the XXXX, XX% application the fourth On of expected XXXX. requesting Water Infrastructure

$XX a infrastructure million completed are annual $X.X projects. million revenues We increase for than more invested in requesting in

of half decision are in the first XXXX. the We targeting

Commission We been of application XXXX. and has the have filed Public merger Texas of yet for on not The a scheduled. acquisition with sale, the transfer close closing Utility to

program. to through expect fund with our the equity XXXX acquisition ATM We of

XXXX. Texas have much our measures place and in of service experiencing drought conservation We for area been water in had

As XXXX compared lower in result, XXXX. to water usage will see we a

Water Resources acre online projected our has recall, our in Bringing Comal to Texas a bring our is the of supply and goal the purchased $X.XX multiphase X,XXX per share, from a -- is will serve diluted KT the The XXXX. In regulated of end and feet a supply acquired untapped will utility complete XXXX is guidance by this priority Water initially Resources regulated for supply unregulated Resources of utility per KT unregulated capital us. As be for Water by acquisition water the it the $X.XX heart we Resources. in It regulated year, customers subsidiary third assets was expenditures of will Water on the fund to of in quarter our share our basis. $X.XX to GAAP $X.XX you online. XXXX of additional KT guidance reaffirm to currently project, a our at diluted County. subsidiary. the to non-GAAP

in we estimated other acquisitions. issuances, at nonlinear business that in a guidance in of our anchored like our customer-related million reduced provide our XXXX years California to of the because earnings our real to I would turn XXXX long-term recent of that than X% of which that, over will range long-term acquisition want per consistent and past. With year-to-date. I diluted PFAS in of X-year on As as approximately cycles. rate X% our reaffirm on equity call does to to in $XXX remediation, rate end share usage expended settlement rate based excluding I Further, rate top flatter investment estate $X.XX, is or billion, case guidance our The million impact of $X.X off our Eric. is that and is such activities. growth is factors with independent approximately our merger highlight mentioned sales contaminant from stated growth our note $X.X XXXX, our reached was maintain capital proceeds levels. have earlier, strategic -- which which factors million well in a underlying include $XX of software the outlook we remaining gross potential We maximum based includes for in reinvestments as finalized and conservation as guidance,

Thank you, Well Andrew. done.

is been good. our we have as a impact force ways success company One we a measure and how of the for

Just one ago, of a that us Newsweek as Group couple XXXX. been of selected America's SJW notified weeks Companies Greenest has

water this only and responsibility environmental companies very prestigious for the recognition. Only dedication stringent most European people advanced seriously. selected are the Union's take reflects utilities We globally the This stewards as meet of X passion were recognition eligible. of who sustainability our criteria X that considered our

California costs. driving we're in XXXX track XXXX, million requirements operational the greenhouse share were enhancing funds, to anticipated San storage its over Another were California of is the along share a significant the our strengthening Jose utility and San investment total for pumping the X highlight funding of modernizing $XX regulated federal for flexibility sites Water competitive Established Partnerships, resilience and cost secure high-power substantial of in a and investment program exciting we while use Water gas and on infrastructure million meet of through Jose integrate resilience grant installation by XX%, further committed reduction awarded $X GRIP with an electric operated very investment program. Other San Water, Jose Water, Grid XXXX. by GRIP grants Resilience anticipated GRIP $XX peers. To San to emissions several that battery through that our and million. Innovation is energy law, by this grant, critical stations. energy U.S. applicants private a bipartisan program peers, The storage new a I'd down Jose has for to focused awarded the between development or these match Only energy include will This systems at significantly like at and sustainability the battery various storage achievements systems and the GRIP green the bringing reduced on grid. our represents

our water for results been supplies. In an from our leaks Courant. will XXXX XX% to Hartford as is benchmark and better recognized with that for is to for continues fostering water program, of In XX% the advanced technology nearly loss on partnership anonymous a an company service environment Workplace after to third the year survey use And The XX Commissioner, recycled David employee sets PURA including that survey Connecticut public water or Commissioner express which we commissioners Top the baseline. development working that AI employees to to it's been of We deep a about our in Jack and Arconti preserve to of a with We leverages organization's We based to XXXX career XX% extend the residents and the are conducted leak to culture, be look below by detection Arconti, a world-class fellow humbled asked the serve by and his outgoing audited. goal reduction Connecticut, and leading-edge and share Vice Commissioner employees' California, Chairman, by welcome appreciate non-revenue drinking fourth We're like values. purpose X warm water at best our consecutive party. of industry his appreciation us result expanded we've especially PURA. irrigation and compared award success. We'd work creating decades an to a years for independent forward Betkoski, communities. and service, up

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

first [Operator with Richard JPMorgan. comes question Sunderland Instructions] Our from

similarly, recent or long-term basis and guidance to bit on in a usage developments behind? about the rate? the Starting those position you how settlements guess, XXXX a you X% speak to with relative XXXX I on Are trends little X% the growth to assumptions? the other can ahead sales the GRC track trends, relative And Texas, they there

question, That's excellent an Richard.

usage So suffered decreases let's and start year. in this to some Texas conservation with XXXX. due We've definitely

We it into the to helpful of still in quarter, that becomes amount, fourth are remains in fact so the total terms dollar place. impact from to is -- there's less coming that the that but area but the different it's variation X, development. that's a Stage have positive But always some because Stage areas X going within that Texas levels. different drought It still there's

at look continue year, the we will monitor. as quarter to that fourth this So be something will that we

adjusting We that. are not our due guidance to range

And be expect we've would far. us so, about to kind of so with where talked I consistent

however, Now to the for XXXX, we drought would expect conditions persist.

according We year the when will wood, full knock of the rate benefit it settled we to rate also the of that happen case, have on and expect have will Connecticut that will we the case. to

the rate had X.XX% on for fact this say year the in this we talk track at our XX.XX% we fully that approved, about assuming that was comments last that approved long-term to that California this that to the I that rate meeting in that would gets or So happened growth. today into highlight time coming starts case a increases XXXX. XXXX an are year compares put the one I

cycle. So kind a of it the revenue is X-year flattens our that benefit of over overall and out growth earnings

earnings over growth time. highlight. to want period good I of we it's a for at So our that's and as something just for better us it's -- customers look good too It's

you would it sort you case the on the relative other slides consolidated Got process Any any there I'm would sense tariff it. on helpful, in helpful. new have The receiving there the long take? rate main too. require consolidation that And jurisdiction? the a approval of Great. process highlight how on curious that after of could very levels if color Yes, rate kind across be effort.

some to But able it's this. one Look, things. rate our early rate order the disadvantaged Yes. is company the not help over. Maine levels onto those well, are customers in further cycle, large will for of base perspective, as on I be this there and from cost the to that by distribute here's the we costs communities to those or the strategic entire This really to across of types are huge a our comment days socialize in of group because a can small systems entire operation benefit of move customers such having still as get think it of very

to see rate to expect only is our talked would on I Public staff what on like we customers an we the team, ability, Maine and reduce Utility on about, prosecute load that, Commission also Given cases. not but the then as

can down a WICA single all will from and down rate going and involved. single to case that be You across everybody these, imagine we're for multiples that filings really beneficial

Got clear. it. Very

as administrative thing to of rates multiple single just add, would filing smooth as I of the one really everybody cases forward, aspects to Andrew out Richard, can the I opposed level to expect us be immediately. we'll, same over case. That the said, wouldn't bring done gradually a time. But going

will good So it be for everyone.

just up Got times clear. recognize last this curious are Aquarion. then any And but on you offer it. very one one several I from came updates That's on me. there if can XQ,

time line? potential and assets the in interest Your

you, Thank Yes. Richard.

the end We in then, would remain purchaser seem who the by think course, that XXXX to end the year of by about was And sell least to successful the is. comment now, team would the commence specifically do announced I reasonable it there. to regulatory they can't interested who the And I Aquarion. Eversource approval I that recall they up, announce And XXXX. they've think February of of wrap at bidder if the looking know certainly on that I process, would said were publicly like the successful of while XXXX. assets in

be our same time, and would it commit that about remain going believe decisive really we shareholders, So great the but for it at to a forward. disciplined acquisition

comes Our with from question Reeder Fargo. next Jonathan Wells

are seen the you last Connecticut customer with their the to revenues some and I've influential towns and in might RWA's concerns have interest express know off rates. of Aquarion. of on Just, one impact I piggybacking How think tax guess, Aquarion over concern do kind I those process? that buying what

And in Connecticut serve that themselves Yes. case, municipalities recovery taxes of saw is have Thank this the we as a of may wouldn't community. company do the assets same this followed in those case, such who it the invested example, articles. not And Yes, upon it pay pay, utility, was to not ours, community. if communities or to Jonathan. course, same for Many along, taxes I approach. rate that a in based level different our property pay quasi-municipal you, for to part Water property

there see tax And so, if that. you receipts would concerned decrease, and be is then the potential would that you're you leader that quite about future a community rightfully property

ways So that it's the the real one participate in issue. them. And we think and I it's assist a communities of

in and communities on Water be of I But were could can course, Greenwich think to help there concerned make it. a Bridgeport Authority and could Regional and and community and quite try on if those -- Stamford they, about amends some leaders and in to Torrington place, out.

think So be but it do I would Jonathan. don't matter, a it think will I be determinative, consequential

to the in the ] increase. California, capital XXXX there issued guess, basis then waters cost of CPUC And I something similar over shifting Great. XXXX? the the any points decision mechanism that CPUC [ the energy allowed for by utilities avenue effectively recently ROEs XXXX reducing of lowers magnitude XX Is for the to for Okay. that by do

calculated. have our as -- or our We for that is time, indication decision, tracking calculate moment issued to to we've there's, at see order. similar adjustment And would any teed change was start it. that the well. the that a if might facilitate Jonathan, the again, that be did would nothing at decision proceeding a we methodology see and change engage that. And want this contemplated course, we'd But impact the don't any proposed. And up of no to via energy this to to WCCM I Andrew commission expect there the so considered obviously And being to that is or used time sense to I'll been utilities. energy change or have suggest at way similar add water this

a have track. indication So, so this said, far like I that no time at similar we'd

down. Eric, with X since there's had X things, actually of that thing participate. add The so up the mechanism just around. We it ] adjustments, allows goes recent the been in might mechanism up started about has [ a X and X-way mechanism. that and of couple time I the been a off ups commend recent to people I is the down, most down It and X time out,

upside terms this to are next go that going pressure pressure. if the odds might don't you talking economy not to of ultimately downside the In forecast know I rates. I greater adjustment, than I interest call. on could is more there's be But where

be if of of if electric might those points been were over can And and mechanisms, of I basis marketplace. we're change do XX some need cost of you seeing this. debt the cost to an would And utility, where today other But the compare with consistent I actually understand so, the more has outcomes the our time. capital in what the

change be in today, So here that's -- it the it can mind. thing It's the future. to while might in keep

applications in sticking along with those Do I utilities Great. but strategy. kind proceeding a of ROEs? what the the there in water exchange potential state, capital think you Or new XXXX might scheduled? with to to for -- reduction an possibly Okay. discuss SJW's to of the in as with you allowed are lines, reach be be coordinate PAO defer the agreement the the And filed know, cost can broader maybe possibility a of kind just likely in full-blown you

where at to are see than commission have the are and think relative us. Look, odds to I is also what at, the greater Like the we'll workload things that. time

it's So that needs to discussion happen. a

said, are interaction likely But as personal that's having -- odds up one that's in commission opinion, what a and end being is filing likely without be we will the more think that the the that workload to that well. find XXXX. -- of of I So kind out

then Okay. I potential one impacts on answer, for CapEx appreciate the Any And recently rule? the from that copper lead last and me. Andrew. EPA's budget finalized

our system investment will earnings are we we'll about also talk in for our Yes. growth well -- as, And to and pressures exciting forward. for the very investments a continued in for going next that's for some forecast revised that's copper think us as revised of XXXX. the quite our PFAS; give requirements. or significant forecast but and related inflation on that Look, part X-year I to quarter's something going earnings But lead increases in capital seeing whether require frankly, going are sure, as things other it's -- there's we very are

I overall, it seeing we're think So comes to certainly positive a more when movement that.

as further some you And issue affordable utility things that about but customers. zeroed comments sure with to are affordability are very for is can affordability we important our this this, to he'll we Eric a is industry. the on that add that, we And I do from that in facing key all a I'm make well. more bills for would tell coupled and Now talked us,

so allow to of happen the of our and all look we're but customers, that through for that investment everything shared on efficiency to our and the not And increase basis. to we trying the benefit backs on do a customers

I to viewing Andrew, that and comprehensively we to think and we're propose communities. commissions think really solutions said, need strategic about Well a our affordability to issue as the

working so, opens provide to little to headroom it in operating and up drinking hard reduce by adequate water. expense, invest to bill the And a safe continue to then

best for the to do on meet test communities. the to table our all our So affordability

Storozynski with next question Our from comes Seaport. Angie

have I those guys that if Again, California. X kept I'm change have? the that two One which water wondering either number jurisdiction growth Texas. might is out? And comments. profile California data California just nonlinear don't then in there demand understand questions. assuming So know And to is your why growth or or I but in smoothed the is, I'm you in is earnings any jurisdiction, exactly you more is, Andrew, the that any in exposure other still California centers? the But profile

So I'll division, smaller start divisions off Angie. with the have X comment X big on We the nonlinear. and still

will of because growth. not current matter nonlinear decision. this just how at was that's no happen. California, the before, first in before now and that as we the to can look when X.XX%. time case, only at be our with that's understand started going I it nonlinear you you But as going it's have to we it, we're So we it's XX% general, rate But case something started said a increase comment And last in

of how when offset but going It's where rate that's you potential -- just necessarily to for come always be a more that go So first and That's that's -- nothing making very with helps year out. the we of which There's smooth things wrong. continuing we're we're fact to not case. do kind happy depends case, for customers. expenses, the just drive adjustments in those down well it our

So, so far, so good.

do The one? want you that to second question, take

Yes.

from see significant expect for would But the see question, On expect data wouldn't cooling. that using driven not great growth with the that, and demands that. economic that development say I would growth development. But and that be centers, to changes by volume water data resulting centers I to the comes aspects to there community's would it's increases that a support Angie. around volumetric I infrastructure inevitably definitely

And so, effect us, Angie. more of for secondary a

Eric the back to Thornburg like to showing closing I'm further for questions over not any turn call this I'd time. any remarks. And at

Really of initiative, Texas advancing but GRC, settlement including joining that. you, water CPUC strategy. in our supply implementation consolidation still our forward AMI greater the much in XXXX, agreement operator. appreciate us our our PFAS our remediation applying home look in thank tariffs California of of today. with stretch online for there's in We're and progress and decision you, bringing Maine, thank on Well, to to, a for everyone, And

X% again SJW for today and success, to We shared X.X done replace sharing again infrastructure, the needs our that with the that increase. SJW possibilities will ensure our explore and in for along we the We underlies progress Andrew and the SJW Group which nationwide our a our leverages this, that you our utility quarter. our very And you while of have of our water continues pipe paying to raised X states. your across available always Group. industry to to our our aiming to for of customers I time we culture XX possible. Thank look next in people high-quality we and for annually years, serve straight it In operations consecutive all water distinct it's communities support do dividend to platform of Thank and follow-up. continue also our of XX I, continued and growth to we've national to make rest and are in capital including with proud people proudly make strategy shareholder our how recognize the reliably affordability of Group million meantime, the your your as to deliver sure for faithfully years. who customers forward local operations mission execute you interest we our value, I'm local and dividend, for questions. the service team invest

presentation. and you. Ladies does Thank gentlemen, today's this conclude

now may have wonderful day. You and disconnect, a