Q4 2021 American States Water Co Earnings Call
Ladies and gentlemen, thank you for standing by.
Speaker 1: Ladies and gentlemen, thank you for standing by. Welcome to the American States Water Company conference call discussing the company's fourth quarter and four year, 2021 results. This call is being recorded. If you would like to listen to the replay of this call, it will begin this afternoon at approximately 5 p.m. Eastern time and run through Wednesday, March 2nd, 2022 on the company's website, www.aswater.com.
Welcome to the American States Water Company conference call discussing the company's fourth quarter and full year 2021 resolved.
This call is being recorded.
If you'd like to listen to the replay of this call. It will begin this afternoon or approximately five P. M Eastern time and run through Wednesday March 2020.
To all of the company's website at Www Dot SaaS water Dot com.
The company will be referring to are also available on the website.
Speaker 1: the size of the company will be referring to are also available on the website.
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After todays presentation, there will be an opportunity to ask questions.
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Presenting today from the American States water company is Bob Sprowls, President and Chief Executive Officer and David.
Speaker 1: presenting today from the american states water company his mom's problems president and chief executive officer and a look at it leader vice president of finance and chief financial officer
Senior Vice President Finance and Chief Financial Officer.
As a reminder, certain matters discussed during this conference call maybe forward looking statements intended to qualify for the safe Harbor from liability established by the private Securities Litigation Reform Act of 1995.
Speaker 1: As a reminder, certain matters discussed during this conference call may be forward-looking statements intended to qualify for the safe harbor for liability established by the Private Securities Litigation Reform Act of 1995.
Please review a description of the company's risks and uncertainties in our most recent Form 10-K and Form 10-Q on file.
Speaker 1: Please review a description of the company's risks and uncertainties in our most recent form 10K and form 10Q on file with the Securities and Exchange Commission.
With the Securities and Exchange Commission.
In addition, this conference call will include discussions of certain measures that are not prepared in accordance with generally accepted accounting principles or GAAP in the United States.
Speaker 1: In addition, this conference will include a discussion of certain measures that are not prepared in accordance with generally accepted accounting principles or GAP in the United States and constitute non- GAAP financial measures under SEC roles.
non-GAAP financial measures under SEC rules.
non-GAAP financial measures are derived from consolidated financial information, but are not presented in our financial statements are prepared in accordance with GAAP.
Speaker 1: These non- GAAP financial measures are derived from consolidated financial information, but are not presented in our financial statements that are prepared in accordance with that. For more details, please refer to...
For details please refer to the press release.
At this time I will turn the call over to Bob Sprowls, President and Chief Executive Officer of American States water company.
Speaker 1: At this time, I will turn to call over to Bob Sprouls, President and Chief Executive Officer of American State's Water Company.
Thank you Rocco.
Welcome everyone and thank you for joining us today.
Speaker 2: Thank you, Rocco. Welcome everyone, and thank you for joining us today.
I'll begin with some comments on the highlights for the year.
Speaker 2: I'll begin with some comments on the highlights for the year. Eva will then discuss some financial details for both the quarter and the year. And then I'll wrap it up with some updates on regulatory filings, ASUS, and dividends. And then we'll take your questions.
Eva will then discuss some financial details for both the quarter and a year and then I'll wrap it up with some updates on regulatory filings.
And dividends.
And then we'll take your questions.
I'm pleased to report that we had a very strong 2021.
Speaker 2: I'm pleased to report that we had a very strong 2021.
Our earnings per share increased nine 4% to $2 55 for 2021.
Speaker 2: Our earnings per share increased 9.4% to $2.55 for 2021.
Compared to $2 33 reported for 2020.
Speaker 2: Compared to $2.33 reported for 2020.
Driven by higher year over year performance by the water segment.
Speaker 2: driven by higher year over year performance by the water segment, largely as a result of new rates authorized by the California Public Utilities Commission or CPUC.
Largely as a result of new rates authorized by the California Public Utilities Commission or CPUC.
In fact, we had increased earnings in each of our business segments for the year.
Speaker 2: In fact, we had increased earnings in each of our business segments for the year.
People will discuss our financial results for the fourth quarter shortly.
Speaker 2: People will discuss our financial results for the fourth quarter shortly. There it is.
There were a number of other highlights for the year.
We continue to invest in the reliability of our systems spending a record high $142 $6 million in company funded infrastructure at our regulated utilities during the year and.
Speaker 2: We continue to invest in the reliability of our systems, spending a record high $142.6 million in company funded infrastructure at our regulated utilities during the year, and continue to maintain the infrastructure at 11 military base.
<unk> continued to maintain the infrastructure at 11 military bases.
Infrastructure investment and improvement is critical to providing safe and reliable service to our customers.
Speaker 2: Infrastructure, investment and improvements is critical to providing safe and reliable service to our customers.
It allow us to maintain water quality reduce leaks.
Speaker 2: and allow us to maintain water quality, reduce leaks, promote energy efficiency, and fortify the systems for natural disasters and other events.
Energy efficiency and fortify the systems for natural disasters and other events.
In 2021.
Speaker 2: In 2021, we reached a joint settlement agreement on key items with the public advocate's office of the CPUC on Golden State Waters General Rate Case to set new rates for the years 2022 through 2024, which, if approved, will allow us to continue our investment in our water system.
We reached a joint settlement agreement on key items with the public advocates office of the CPUC on Golden State Water's General rate case to set new rates for the years 2022 through 2024.
Which if approved will allow us to continue our investment in our water systems.
The company's environmental social responsibility and governance or ESG profile remains strong.
Speaker 2: The company's environmental, social responsibility and governance, or ESG profile, remains strong.
We increased the breadth and depth of our ESG disclosures during the year.
Speaker 2: We increase the breadth and depth of our ESG disclosures during the year.
This month, we set a target goal to reduce our greenhouse gas emissions by 60%.
Speaker 2: This month we set a target goal to reduce our greenhouse gas emissions by 60%.
By 2035.
Speaker 2: By 2035, an important step in doing our part to reduce the effects of climate variability.
An important step in doing our part to reduce the effects of climate variability.
During 2021, we published our first ever diversity and inclusion policy.
Speaker 2: During 2021, we published our first ever diversity and inclusion policy.
Formalizing our commitment to this important area and highlighting the sound policies already in place.
Speaker 2: formalizing our commitment to this important area and highlighting the sound policies already in play.
With 56% women on our board of Directors, we were recognized by the 50 50 women on boards organization as gender balanced.
Speaker 2: The 56% women on our Board of Directors, we were recognized by the 5050 Women on Boards organization as Gender Balance.
A level that only 8% of the Russell 3000 index companies have achieved.
Speaker 2: A level that only 8% of the Russell 3000 index companies have achieved.
And since 2007, our customers have use less water and electricity.
Speaker 2: And since 2007, our customers have used less water in electricity.
For 2021 water usage by our customers is down 29%.
Speaker 2: 2021 water usage by our customers is down 29%.
In electric usage is down 5% compared to 2007, while the number of customers has increased at both business segments.
Speaker 2: and electrocuted just down 5% compared to 2007, while the number of customers have increased at both business segments.
We remain committed to our communities.
Golden State water continued to spend with diverse business enterprises.
Speaker 2: Gold State Water continued to spend with diverse business enterprises Achieving results that were well above this CPUC's requirement for the ninth consecutive year
<unk> results that were well above the cpuc's requirement for the ninth consecutive year.
In addition, a S. U S continue to proudly provide dependable services for America's service people and their families and receive high marks for its customer service.
Speaker 2: In addition, ASUS continued to proudly provide dependable services for American service people and their families and receive high marks for its customer service.
We continue to see the U S government's requirements to hire small businesses to perform work on the bases we serve.
Speaker 2: We continue to exceed the U.S. government's requirements to hire small businesses to perform work on the bases we serve.
And earned the designation that's indexes three star employer as part of the 2021, that's indexes employer awards.
Speaker 2: and earn the designation that's indexes three star employer as part of the 2021 that's indexes employer award.
The award recognizes <unk> commitment to recruiting hiring hiring retaining developing and supporting.
Speaker 2: The award recognizes ASUS's commitment to recruiting, hiring, retaining, developing, and supporting veteran employees and others in the military connected community.
Veteran employees and others in the military connected community.
During 2021, we increased the annual dividend by 9%, our 67th consecutive year of annual dividend increases.
Speaker 2: During 2021, we increased the annual dividend by 9%. Our 67th consecutive year of annual dividend increases. We have consistently x-
We have consistently executed on our strategies.
And have been able to deliver a five year total shareholder return of 148%.
Speaker 2: and have been able to deliver a five-year total shareholder return of 148 percent or a compound
Or a compound annual return of 20%.
Our strong performance in 2021 would not be possible without the commitment to our customers.
Speaker 2: Our strong performance in 2021 would not be possible without the commitment to our customers, the dedication of our employees, and support of our shareholders.
A dedication of our employees and support of our shareholders.
We are optimistic and well positioned for 2022 and beyond.
Speaker 2: We are optimistic and well positioned for 2022 and beyond.
I'll now turn the call over to Eva to review the financial results for the quarter.
Speaker 2: I'll now turn the call over to Eva to review the financial results for the court.
Thank you, Bob and Hello, everyone. Let me start with an overview of our fourth quarter financial results.
Speaker 3: Thank you, Bob. Hello, everyone. Let me start with an overview of our fourth quarter financial result.
Consolidated diluted earnings for the quarter was 55 cents per share compared to a 54 cents per share reported for the same quarter of 2020.
Speaker 3: Consolidated diluted earnings for the quarter were 55 cents per share. Compare to 54 cents per share. Report it for the same quarter of 2020.
Earnings at our water segment increased four cents per share for the quarter.
Speaker 3: earnings at our water segment increased 4 cents per share for the quarter. This increase was largely due to an increase in water revenues from new rates for 2021, authorized by the California POP-PETIT Associate's Commission.
Largely due to an increasing water revenues.
For like 'twenty, you're trying to one <unk>.
By the California Public Utilities Commission.
And he's fine electric segment for the fourth quarter of 'twenty one.
Speaker 3: Ernie is from the Electric Statement for the fourth quarter of 2021, as well as 2020 for $0.7 per year.
Well as time to 24 seven cents per share.
Hi, Electric 11 years in a way that can supply costs were offset by an overall increase.
Speaker 3: Higher electric revenues and lower electric supply costs were offset by an overall increase in operating and interest expenses as compared to the fourth quarter of 2020.
Interest expenses.
Compared to the fourth quarter off trying to 'twenty.
I think it's on the contracted services segment was 13 cents per share as compared to 17 cents per share for the same cordell 'twenty 'twenty.
Speaker 3: Learning from the contracted services segment worth 13 cents per year as compared to 17 cents per year for the same quarter of 2020.
Decrease was largely due to a decrease in construction activity, partially offset by increases in management fee revenue and other are decreasing operating expenses.
Speaker 3: The decrease was largely due to a decrease in construction activity, partially offset by an increase in management fee revenue, and an overall decrease in operating expense.
A decrease in construction activity was due largely to timing differences of when construction work was performed as compared to the fourth quarter of 2020.
Speaker 3: The decrease in construction activity was due largely to timing differences when construction work was performed as compared to the fourth quarter of 2020.
Consolidated revenue for the three months ended December 31, 21 decreased by $7.6 million as compared to the same period in trying to join me.
Speaker 3: Consolidated revenue for the three months ended December 31, 2021 decreased by $7.6 million as compared to the same period in 2020.
The decrease was due to lower construction activity at our contracted services segment due to tightening I guess he's got.
Speaker 3: The decrys were due to lower construction activity at our contracted services segment due to tightening as just discussed. Partially offset by increased at our water supply.
Partially offset by increased at our water segment.
Turning to slide 10, total operating expenses decreased approximately $8 $3 million versus.
Speaker 3: Turning to slide 10, total operating expenses decreased approximately 8.3 million dollars versus the fourth quarter of 2020. Mostly due to a decreasing construction cost at SUS as the result of lower construction acts.
The fourth quarter was 2028.
Due to a decrease in construction costs at a U S SME.
No well construction activity.
Decreasing poverty and other taxes.
Speaker 3: a decreasing property and other taxes, and a sale of non-Utah-T related land at the water segment without the gain of $409,000 recorded during the fourth quarter of 2021 with no equivalent item in 2020.
And as sale of Navient Tinchy related land and the water exactly what he thought was it in a gang of $409000.
During the fourth quarter.
One with no equivalent of items and trying to time it.
Slide 11 shows the EPS bridge compared to the fourth quarter I was trying to trying to why wait to stem caught out in 2020.
Speaker 3: Flight 11 shows the EPS bridge compared to the fourth quarter of 2021 with the same quarter of 2020.
And this slide shows the full year of intelligence.
Consolidated army for 'twenty, 'twenty, one or $2.55 per share.
Speaker 3: Constellinated earnings for 2021 were $2.25 per year, as compared to $2.33 per year for 2020.
That's compared to $2.83 per share for 2020.
Included in the results for 2021 what gains on investments held for one of the company's retirement plan.
Speaker 3: Included in the results for 2021 were gains on investment held for one of the company's retirement plan.
With only $4 $3 million or eight tenths of a share.
Speaker 3: $4.3 million or $8 cents per share. As compared to $3 million or $6 cents per share in gains generated due in 2020, largely due to...
That's compared Catania and go there are six cents per share.
During 2020.
Oh actually due to market conditions.
Excluding this gain found both Yang adjusted guidance for 2021 what to gather for like seven cents per share.
Speaker 3: Scouting this game from both years, adjusted the value that are in the fore-2021 or $2.47 per share as compared to $2.27 per year for 2020.
Compared to $2.27 per share twice.
And he has found the wireless segment increased by 21 cents per share compared to 'twenty to 'twenty due to an increase in water revenues of $18 $5 million.
Speaker 3: Ernie is from the water segment increased by 21 cents per year compared to 2020 due to an increase in water revenues of $15.5 million. Largely from new water rates as a result of the full third year step in.
I actually found new water rates accurately after four yeah absolutely.
Effective January one trying to take it one partially offset by an increase in supply costs for $1 million.
Speaker 3: effective January 1, 2021. Partially offset by increasing supply cost of $4.1 million and other operating expenses of $3.1 million.
Other operating expenses of $3 $1 million.
It was also a decrease effective income tax rate.
Speaker 3: There was also a decreasing effective in contact rate due to changes in flow through a jump.
Tim just inflows to a guesstimate.
Moving on to the electric segment.
Speaker 3: Moving on to the electric segments, earnings were one sense for sure higher than in 2020. The higher electric earnings were due to new rates authorized by the CPUC and lower interest expense.
Having these one one cents per share higher than in trying to 'twenty.
Higher electric earnings lagged due to new rate authorized by the CPUC and lower interest expense.
These decreases.
This increases in earnings were partially offset by higher electric supply cost and other operating expenses.
Speaker 3: This increases in earnings will partially offset by higher electric supply costs and other operating expenses.
So I don't think learning from the contract services segment.
Speaker 3: I looked at earning from the contract the services segment was $48 per year compared to $4.7 per year for 2020. It includes a one-cent per year.
$48.48 per share as compared to 47 cents per share for trying to 'twenty, an increase of one cents per share.
This was due to an increase in management fee revenue as well as a decreasing operating expenses.
Speaker 3: This was due to an increasing management fee revenue as well as 80 increasing overall operating expense.
Partially offset by lower construction activity as compared to 2020.
Speaker 3: partially offset by lower construction activity as compared to 2020.
It got the odd parents army.
Speaker 3: The HR parents earnings decreased one cent per year compared to 2020 due to higher state unitary taxes recorded at the parent level.
Decreased one cents per share compared to trying to 'twenty.
Ohio State unitary taxes recorded at the parent level.
Turning to any quantity net cash provided by operating activities what 115th.
Speaker 3: Turning to liquidity, net cash provided by operating activities worth 115.6 million dollars as compared to 122.2 million dollars in 2020.
$6 million as compared to $122 $2 million in 2020.
The increase was primarily due to timing of income tax installment payments.
Speaker 3: The decrease was primarily due to timing of in-contact and filament payments, lower surcharges to recover regulatory assets, and timing differences of building off and cash receipts for construction work at military base.
So charges to recover that's totally asset and timing.
Differences stemming off and cash receipts for construction work at military bases.
These decreases were partially offset by improved cash flow.
Speaker 3: These decreases were partially offset by improved cash from utility accounts receivable.
T accounts can be seen in the boat.
As Bob mentioned, our regulated utility invested $142 $6 million in company funded capital pocket in 2021.
Speaker 3: As Bob mentioned, our regulated utility invested $142.6 million in company fund its capital projects in 2021. We expect to invest $140 to $169 in 2022.
Expect to invest hungry for U $260 million in 2022.
As I noted during our last quarters call, we do not expect American states water to issue additional equity for at least the next three years to fund it.
Speaker 3: As I noted during our last quarter's call, we do not expect American state water to issue additional equity for at least the next three years to fund its current business.
And with that.
Let me turn it.
Speaker 3: So with that, let me turn it back to Bob.
His basketball.
Thank you Eva.
I'd like to provide an update on our recent regulatory activity in.
Speaker 2: I'd like to provide an update on our recent regulatory activity.
In July 2020, Golden State water filed a general rate case application.
Speaker 2: In July 2020, Golden State Water File, the General Rate Case Application, for all of its water regions in the General Office, for new water rates for the years, 2022, 2023, and 2024.
For all of its water regions and the general office for new water rates for the years 2022, 2023 and 2024.
In November of last year, we reached a settlement agreement with the public advocates office on this general rate case.
Speaker 2: In November of last year, we reached a settlement agreement with the Public Advocates Office on this general rate case.
Only three issues remained.
Among other things the settlement authorizes Golden state water to invest approximately $404 $8 million and capital infrastructure for the three year rate cycle.
Speaker 2: Among other things, the settlement authorizes Golden State Water to invest approximately $404.8 million in capital infrastructure for the three-year rate cycle.
Settlement also authorizes Golden state water to complete certain advice letter capital projects approved in the last general rate case.
Speaker 2: Settlement also authorizes Golden State Water to complete certain advice letter capital projects approved in the last general rate case.
Which have recently been completed for a total capital investment of $9 $4 million.
Speaker 2: which have recently been completed for a total capital investment of $9.4 million.
The additional annual revenue requirements generated from these capital investments.
Speaker 2: The additional annual revenue requirements generated from these capital investments are $1.2 million and became effective February 15th of this year.
Our $1 $2 million and became effective February 15th of this year.
Excluding the advice letter project revenues CMO.
Speaker 2: including the Advice Letter Project Revenues, the amounts included in the settlement agreement have approved would increase the 2022 adopted revenues by approximately $30.3 million as compared to the 2021 adopted revenue.
That's included in the settlement agreement if approved would increase the 2022 adopted revenues.
Approximately $33 million as compared to the 2021 adopted revenues.
And increased the 2022 adopted supply costs by $9 $7 million.
Speaker 2: and increased the 2022 adopted supply cost by $9.7 million as compared to the 2021 adopted supply.
As compared to the 2021 adopted supply costs.
The three issues not included in the settlement agreement were contested through the briefing process rather.
Speaker 2: The three issues not included in the settlement agreement were contested through the briefing process rather than hearings and include Golden State Waters requests for a medical cost balancing account.
Other than hearings and include Golden State Water's request for a medical cost balancing account.
A general liability insurance cost balancing account.
Speaker 2: A general liability insurance cost balancing account.
And consolidation of two of the company's smaller customer service areas.
Speaker 2: and consolidation of two of the company's smaller customer service areas.
For ratemaking purposes.
A proposed decision in the water general rate case is expected in mid 2022.
Speaker 2: proposed decision in the water general rate cases expected in mid-2022.
Once the final decision is issued by the CPUC, new water rates will be effective retroactive to January one 2022.
Speaker 2: Once a final decision is issued by the CPUC, new water rates will be effective retroactive to January 1, 2022.
Turning our attention to slide 15, we present the growth in Golden State Water's average rate base as authorized by the CPUC for 2018 through 2021.
Speaker 2: Turning our attention to slide 15, we present the growth in Goldwood State Waters Average Rate Base as authorized by the CPUC for 2018 through 2021.
The weighted average water rate base has grown from 752 $2 million in 2000 $18 million to $984 million in 2021.
Speaker 2: The weighted average water rate base has grown from $752.2 million in 2018 to $980.4 million in 2021.
Based on the general rate case settlement agreement the 2022 rate base amount is $1.152 billion.
Speaker 2: Based on the General Rate Case Settlement Agreement, the 2022 Rate Based Amount is $1,152,000,000.
Which if approved would result in a compound annual growth rate of 11, 3% since 2018.
Speaker 2: which if approved would result in a compound annual growth rate of 11.3% since 2018.
The rate base amount shown for 2021 and 2022 do not include any rate recovery for advice letter projects.
Speaker 2: The rate-based amount shown for 2021 and 2022 do not include any rate recovery for advice enterprise.
Let's move on to <unk>, which had another strong year, achieving record net income of $17 $7 million.
Speaker 2: Let's move on to ASUS, which had another strong year achieving record net income of $17.7 million and record earnings per share.
And record earnings per share of <unk> 48 cents.
This was accomplished despite some reduction in overall construction activity in 2021, which we've discussed.
Speaker 2: This was accomplished despite some reduction in overall construction activity in 2021, which we've discussed.
We continue to work closely with the U S government for contract modifications relating to potential capital upgrade work for improvement of the water and wastewater infrastructure at the military bases we serve.
Speaker 2: We continue to work closely with the U.S. government for contract modifications relating to potential capital upgrade work for improvement of the water and wastewater infrastructure at the military bases we serve.
As a result during 2021.
Speaker 2: As a result, during 2021, the US government awarded ASUS $17.3 million in new construction projects.
The U S government awarded a S U S $17 $3 million in new construction projects.
Some of the projects were completed in 2021, well the majority are expected to be completed in 2022.
Speaker 2: Some of the projects were completed in 2021, while the majority are expected to be completed in 2022.
In addition completion of filings for economic price adjustments requests for equitable adjustment asset transfers and contract modifications awarded for new projects.
Speaker 2: In addition, completion of filings for economic price adjustments, requests for equitable adjustment, asset transfers, and contract modifications awarded for new projects.
Providing <unk> with additional revenues in dollar margin.
Speaker 2: Provide AUS with additional revenues in dollar march.
We remain confident that we can effectively compete for new military base contract awards in the future.
Speaker 2: We remain confident that we can effectively compete for new military base contract awards in the future.
Just on our proven track record of managing water and wastewater related services for military basis since 2004.
Speaker 2: Based on our proven track record of managing water and wastewater related services for military bases since 2004.
We are actively involved in various stages of the proposal process at a number of other bases considering privatization.
Speaker 2: We are actively involved in various stages of the proposal process at a number of other bases considering privatization.
In the U S government is expected to release additional basis for bidding.
Speaker 2: And the US government is expected to release additional bases for bidding over the next-
Over the next several years.
During the last two years, there's been a reduction in new capital upgrade awards largely due to the effects of COVID-19.
Speaker 2: During the last two years, there's been a reduction in new capital upgrade awards largely due to the effects of COVID-19.
In light of continued uncertainty associated with the effects of the pandemic.
Speaker 2: In light of continued uncertainty associated with the effects of the pandemic.
We reaffirm our projection that <unk> will contribute.
Speaker 2: We reaffirm our projection that ASUS will contribute.
45 to <unk> 49 per share for 2022.
Speaker 2: 45 cents to 49 cents per share for 2022.
I would like to turn our attention to dividends outlined on slide 17.
Speaker 2: I would like to turn our attention to dividends outlined on slide 17.
In 2021, we increased the annual dividend from $1 34 per share to $1 46 per share.
Speaker 2: In 2021, we increase the annual dividend from $1.34 per share to $1.46 per share, an increase of 9%.
An increase of 9%.
Over the last 10 years.
Our dividend compound annual growth rate is nearly 10%.
Speaker 2: Our dividend compound annual growth rate is nearly 10%.
Consistent with our policy to achieve a compound annual growth rate in the dividend of more than 7%.
Speaker 2: consistent with our policy to achieve a compound annual growth rate in the dividend of more than 7%.
Over the long term.
American States water company has paid dividends to shareholders.
Speaker 2: American States water company has paid dividends to shareholders every year since
Three years since $19 31.
Increasing the dividends received by shareholders each calendar year for 67 consecutive years.
Speaker 2: Increasing the dividends received by shareholders each calendar year for 67 consecutive years.
Which places us in an exclusive group of companies on the New York Stock exchange that have achieved that result.
Speaker 2: which places us in an exclusive group of companies on the New York Stock Exchange that have achieved that result.
I'd like to conclude our prepared remarks by thanking you for your interest in American States water.
Speaker 2: I'd like to conclude our prepared remarks by thanking you for your interest in American State's water and we'll now turn the call over to the operator for questions.
And we'll now turn the call over to the operator for questions.
Thank you we will now take your questions.
Speaker 1: Thank you. We will now take your questions. If you would like to ask a question, please press star them one on your touchdown phone.
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Today's first question comes from Andrew Your stores. This scheme was Shreveport. Please go ahead.
Speaker 1: Today's first question comes from Angie Storzinski with C-Port. Please go ahead.
Thank you. So I was actually just updating them for the model and I guess, just a couple of like.
Speaker 4: Thank you. So I was actually just updating the model and I just a couple of like simple modeling questions. So it seems like the maintenance expense for 2021. I think it's much lower versus that for 2020. I understand that it's not a fourth quarter item, but the, even you remember what was the reason for the decrease here?
Nah I'm a simple modeling question. So it seems like the maintenance expense for 2021.
Seems much lower first is that for 2020 I understand that it's not a fourth quarter item, but.
Do you remember what was the reason for the decrease here.
I think it's the unplanned maintenance work.
Speaker 3: I think it's the unplanned maintenance work, and I mean, those kinds of things are hard to expect. We plan our maintenance work, if their emergency comes along, and there are things happen during the year that we have to address immediately. So they will have some fluctuation of the maintenance cost going forward, but we expect to be...
I mean are those kinds of things hard to expect are we playing out well maintenance work.
Our emergency comes along and they are things happened during the year it would have to attract.
So so they will have some fluctuation of the maintenance costs are.
Going forward, we expect to be.
Maintaining that hopefully not that I know a lot of the emergency work happening and trying to but that with what's happening and I am trying to trying to stop.
Speaker 3: maintaining that, hopefully, there are no other emergency work happening in 2022, but that was what was happening in 2020.
Bob do you have any okay yeah.
Speaker 2: Bob, you having a good time? Yeah, I think it's a really good time that our unplanned maintenance.
It's a really good sign that our unplanned maintenance.
We didn't have to do a lot of it.
Speaker 2: We didn't have to do a lot of it, you know, in terms of leaks, et cetera. So I think it's a really good song.
Leaks et cetera, So I think it's a really good sign.
Yeah, Yeah for sure.
Speaker 4: Yeah, yeah, for sure. Especially in this installation or environment. Now the second question, again, based on your reported numbers. So I see that you have this 31 million notes cable. There's like a very diminimous increase in long term debt, but there is this big short term debt is the timing of when you plan to issue long term debt.
Especially in this inflationary environment now the second question again.
Based on the reported numbers. So I see that you have this 31 million in notes payable.
De minimus, Incretion and all that but there is this take you know short term debt.
But the timing of when you plan do they should all come back.
Speaker 3: for go-to-stay water, you mean?
Golden State water you mean.
And well I'm looking at your 10-K.
Speaker 4: Well, I'm looking at your 10k. I mean, on a consolidated basis, I see this, you know, big seemingly short-term debt increase. Again, I can follow up on offline. That's not a problem. So just moving on to more, you know, crucial.
Consolidated basis I see this they're seeing any short term debt increase again I can follow up let's follow up offline.
It's not a problem.
So so just moving onto more Chris.
Crucial issues here. So you know I'm looking at your settlement and and you mentioned that those are revenue and supply cost increases versus the approved the regular new levels, meaning I cannot simply use the recorded revenues for the water segment that you showed me in <unk>.
Speaker 4: So, you know, I'm looking at your settlement and you mentioned that those revenue and the like of increases of versus the approved revenue levels, meaning I cannot simply use the recorded revenues for the water segments that you showed me in 2021 as a basis of this increase.
21 of the basis of this increase.
Yeah. So we were we reported the change in.
Speaker 2: Yeah, so we were reported to change in
Adopted revenues from 21, 2021 to 2022 and as you know with the full Ram.
Speaker 2: adopted revenues from 2021 to 2022. And as you know, with the full RAM, revenues tend to be very close to adopted. So what we were trying to do is give you a sense of where, if the settlement agreement gets approved, where the 2022 revenues will...
Revenues tend to be very close to adopt it. So so what we were trying to trying to do is give you a.
Sense of where if if the settlement agreement gets approved where the 2022 revenues will end.
And.
Okay. So it was very close to basically if I just use the reported.
Speaker 4: Okay, so it's very close to basically if I just used the reported water revenues and I used this 30.3 million increase that is in the settle.
On the water.
Using I use just the $70 3 million increase that is in the settlement.
We also and we also gave you the the change in the supply costs, yes.
Speaker 4: Okay. We also gave you the change in the supply cost. Yes. That's that's that's also the short. And on top of it, there is also an increase associated with those projects that are excluded from the DRC, right? So there is still some small upward adjustment to the water revenue in 2022 on the back of those.
That's absolutely true and on top of it. There was also an increase associated with those projects that are excluded from that you're seeing right. So there is still some small upward adjustments to the water revenue in 2022 on the back of those right. We're just 1.1 point 2 million is the annual effect.
Speaker 2: Right, one point, one point two million is the annual effect on the device letter. Right, but that started February 15th, so it's not the full year for 2022.
This letter Frac, but that Guy did a February 15.
Full year FY 2022.
In addition to that and see if our time trying to get to.
Speaker 3: In addition to that, NG for 2022, when the cost of capital proceeding got approved, we will have to retroactive to January of this year for the revenue requirements to reflect the final cost of capital, both debt and equity. So you have to estimate the adjustment for that.
When the cost of capital Kristi, Thank God that proved yes.
We will have two retroactive to January of this year for the revenue requirement to reflect the final cost of capital both bad thing earthquake. So you have to estimate it.
Destination for that.
Speaking of the cost of capital.
Speaker 4: Speaking of the cost of capital, that's definitely an interesting proceeding that you guys are going through. Actually electric utilities and California going through it as well. So there's, I mean, we're seeing.
That's definitely an uninteresting proceeding, but you guys are going through and actually electric utilities in California going through it as well so there's I mean, what we're seeing.
The arguments of the consumer advocate that based on the electric side.
Speaker 4: The arguments of the consumer advocate that is on the electric side.
Very interesting to.
To say, the least with a 7% handle all be allowed Roe.
Speaker 4: very interesting to say the least with a 7% handle of the allowed R O E. And the argument said there is no connection between the cost of equity and the cost of the force and so of utility stocks, which is again an interesting argument. So how I mean, you know, there've been changes at the commission. So we don't really know, at least from our vantage point, how the commission is going to opine on those.
And the argument that there is no connection between the cost of equity.
So utility stocks.
Again, an interesting argument so how I.
I mean are you know there've been changes at the commission. So we don't really know at least from our vantage point, how the commission is going to opine on on those.
Future allowed ROE, but is there anything that you guys can can cure them any sort of.
Speaker 4: future a lot of our ways, but is there anything that you guys can can share any sort of
Gauge of your you know.
Speaker 4: Gauge of your sentiment of how the commission will act here. Again, this seems to be a such a wide range of expectations between what you guys had filed for and what we just saw in the comments from the consumer advocate, at least on the electric side.
Your sentimental call the commission and you know well will act here again, there seems to be such a wide range of expectations between what you guys have filed for and what we.
Just so I mean I'm a couple of comments on the consumer advocate at least on the electric side.
Yeah, Yeah, so Andrew just to.
You mentioned here the public advocates in the water case has put there.
Speaker 2: mention here the public advocates in the water case has put their they have
They have.
Issue their report.
For us it was a 7.51% Roe.
Speaker 2: For us, it was 7.51% ROE.
We hit it requested 10 five so were.
Speaker 2: You know, we had it requested 10.5. So we're, you know, miles apart there. Yeah, exactly. Very wide. Yeah, and although they did mention in their report a recommended capital structure of 56.85% equity, we had requested 57. So we're close on that, but clearly, miles to go on the ROE.
Miles apart there yes.
Yes, exactly very wide yeah in that although they did they didnt mention in their report a recommended capital structure of $56 eight 5% equity. We had requested 57. So we're close on that but clearly miles to go on the ROE.
Yeah, It's a relatively new commission as you know with two new commissioners there as we're not.
Speaker 2: Yeah, it's a relatively new commission, as you know, with two new commissioners there. We're not.
Entirely certain how this is going to go we think the 751 is ridiculous of course.
Speaker 2: entirely certain how this is going to go. We think the 7.51 is ridiculous, of course.
So we will see but.
Speaker 2: So we will see, but we'll have hearings on April 5th through the 8th on this process and perhaps we'll know better after the hearings.
Well have hearings on April 5th through the Ace.
On this process and perhaps we'll know better after the hearings.
Yeah.
Two new commissioners although.
Speaker 2: Yeah, we've got two new commissioners although.
Yeah, they're both lawyers so that's that's a good sign.
Speaker 2: Yeah, they're both lawyers, so that's a good sign.
Commissioner.
Our rentals not president Reynolds with Commissioner Rose.
Speaker 2: Commissioner Reynolds, not President Reynolds, but Commissioner Reynolds.
You know he worked at the commission for many years and was a commissioner.
Speaker 2: You know, he worked at the commission for many years and was a commissioner's advisor for many years. So I feel like, you know, he probably got his arms around how the commission works.
Commissioners adviser for for many years, so I feel like you've probably got his arms around how the commission works.
I'm not.
Not not really sure about.
Speaker 2: not not real sure about you know the president of the commission because she's new to the committee.
The president of the commission because she she's new to the commission.
Yeah, and just one other one Eva you mentioned that.
Speaker 4: Yeah. And just one other one, Eva, you mentioned that there was some pressure on the electric utility side related to rising purchase power costs.
But there was some a pressure on the electric utility side.
Related to rising.
Power costs.
I mean that pressure is probably on the likely to intensify given what we're seeing happening with our natural gas and dust pallet prices. So there is this annual step up right.
Speaker 4: I mean, that pressure is probably only likely to intensify given what we're seeing happening with natural gas and thus color prices. So there is this annual step up, right? In electric revenue under the electric bureaucracy, but again, if there is this inflation and the protest power cost, that is basically sort of mitigating any...
Electric revenue under the.
The electric jure see but again.
If there is this inflation and purchased power costs that is basically sort of mitigating any.
Or any meaningful earnings increase on the electric side is that fair.
Speaker 4: or any meaningful earnings increase on the electric side, is that fair?
Yeah, and we do have a full cost full supply cost balancing account as bear valley electric so to the extent that purchase power higher than authorized we'll be able to recover that so well booked to that gossiping, yes, yeah were booked to the adopted supply costs are they.
Speaker 3: Yes, Angie, we do have a full supply cost balancing account at Bear Valley lecture. So to extend the purchase power higher than authorized, we'll be able to recover that. So we'll book to the adopted supply cost and recover that in the future through third charge.
Cover that are interesting if you chose to charge it.
Awesome. Okay. Thank you that's a tough one thank you.
Speaker 4: Awesome. Okay. Thank you. That's a great tip. Thank you.
Ladies and gentlemen, as a reminder to ask a question. Please press Star then the one today's next question comes from Jonathan Reeder at Wells Fargo. Please go ahead.
Speaker 1: And ladies and gentlemen, as a reminder to ask a question, please press star number one. Today's next question comes from Jonathan Reader at Wells Fargo. Please go ahead.
Hey, Bob and Eva how are you all today.
Okay, Jonathan Thank you [laughter] not doing too bad so I'm just wondering if we strip out the eats and our investment gain would you say the $2.47 is a good starting point as we're thinking about you know 20 to EPS and the growth from the potential.
Speaker 5: Good job, Ethan. How are you? Oh, not doing too bad. So just wondering if we strip out there.
Speaker 6: investment gain, you know, would you say that $2.47 is a good starting point as we're thinking about you know, 22 EPS in the growth, you know, from the potential uplift from the pending GRC settlement offset by any cost of capital adjustment or are there, you know, some other things in there that you know, we may need to adjust or you know, that you allowed you to come in a little stronger and
Uplift from the pending <unk>.
<unk> settlement offset by any cost of capital adjustment or are there. Some other things in there that you know we may need to adjust.
Sure.
It allowed you to come in a little stronger than in 2021.
Yeah Jonathan.
Speaker 7: Yeah, Jonathan, so if you could, could you give us the...
If you could could you give us.
You have to step back again, please in terms of how you're building 2022.
Speaker 2: Give the step back again, please, in terms of how you're building 2022.
I'm just wondering if using the $2 47, so taking out the eastern investment gain you know is that a good starting point you know to kind of think about layering on.
Speaker 6: Well, no, I'm just wondering if using the 247, so taking out the 810 investment gain, is that a good starting point to kind of think about?
The other drivers such as the uplift from the <unk> settlement offset by the cost of capital adjustment or you know are there.
Speaker 6: The other drivers such as the lift from the GRC settlement, you know, offset, how to cost the capital adjustment, or, you know, are there...
Are there some expense items are you know stuff at the utilities that may have led to you know some over earning situations or something in 2021 bit on you know perhaps repeatable.
Speaker 6: Are there some expense items or stuff at the utilities that may have led to some over-earning situations or something in 2021 that aren't perhaps repeatable? Yeah, so you'll have to adjust. Okay.
So you'll you'll have to adjust.
For the.
True up of the cost of debt.
Because you.
Speaker 2: because we were a prior cost capitol at 6.6%
You know we were.
Our prior cost of capital at six 6%.
Filing we did here.
Speaker 2: The filing we did here, which is sort of truing up the debt cost is 5.1%.
Is sort of truing up the debt cost is five 1% right. So.
So that'll be effective January one 2022, so you'll you'll have to factor that in Jonathan.
Speaker 2: So that will be effective January 1, 2022. So you'll have to factor that in Jonathan. You know what that is, Op-In.
What that is off hand, just from a revenue perspective.
So about $7 $5 million down.
Speaker 3: The $7.5 million challenge is everything stays the same. You know, we have our request equity. Our reading remain at 8.9%. So just the decrease in debt from 6.6 to 5.1.
Everything stayed the same you know we have a request to the earthquake.
Hey, Matt.
Eight 9% so it gets the decrease in debt 566 to 5.1.
Well, it would probably impact our revenues by $75 million.
Speaker 3: would probably impact revenues by $7.5 million.
Okay, but then otherwise from the expense side of the equation.
Speaker 6: Okay, but then otherwise from the expense side of the equation.
You know you had kind of your normal ebbs and flows throughout the year.
Speaker 6: you know, you just had kind of your normal ebbs and flows throughout the year.
There's no kind of one timers tucked in there that we should be adjusting for.
Speaker 6: There's no kind of one-timers tucked in there that we should be adjusting for.
I can't think of anything like jewelry to widen as we go into hearings and when.
Speaker 3: I can't think of any majority one and if we go to hearings then it will make a clear additional regulatory cost for the capital proceedings. But other in that everything seems to be...
Okay I didn't know if you know the regulatory cost.
Well I'll talk about capital proceeding, but other than that.
Everything seems to be working on money.
Okay, and then on the electric side I saw in the 10-K that said bear valley expects to spend $13 million in 2022, just on wildfire mitigation projects and it looks like.
Speaker 6: Okay. And then on the electric side, I saw the 10K that said, bare Valley expects to spend 13 million in 2022, just on wildfire mitigation projects. And it looks like...
Maybe the electric utility you know 'twenty, one capex was close to $20 million. So should we be thinking like $15 million to $20 million as like an annual type Capex number.
Speaker 6: Maybe the electric utility, 21 CAPEX is close to 20 million. So should we be thinking like 15 to 20 million is like an annual type CAPEX number or does that wildfire mitigation spend, you know, decrease considerably in 23 and beyond, you know, such that we get back closer to, you know, electric CAPEX, you know, around 10 million.
Or does that wildfire mitigation spend decreased considerably in 'twenty three and beyond.
That we get back closer to you know electric Capex now around $10 million.
Yeah. So 10 seems light to me, but 20 seems.
Speaker 7: So ten things light to me but twenty things too hot. Yes. Maybe in between there as...
Hi, yes.
Yeah, maybe maybe between you know maybe in between there is probably the way to think about it.
Okay, as we're thinking about 'twenty three and beyond.
Yes, okay.
Okay.
Yeah, I mean, there were there are other projects that could get them.
Speaker 2: I mean, there are other projects that could get...
Included that.
Speaker 2: included that we did a filing years ago for renewable solar facility and then...
So we did a filing years ago for a renewable solar facility and then.
Needed to pull the filing because of some issues, but yeah.
Speaker 2: needed to pull the filing because of some issues, but we're very interested in
Yeah, we're very interested in.
Putting a solar facility up there it will take some time to get that through the commission, but that would be a.
Speaker 2: putting a solar facility up there. We'll take some time to get that through the commission, but that would be a...
Sort of a kind of a one off I would say.
Speaker 2: Sort of a kind of a one-off, I would say, you know, that may add to the cat-backs. It's just...
That may add to the Capex.
It's just hard to predict when that'll be.
You're still kind of feeling my next question well well anticipated there Bob.
Speaker 6: Yeah, you're stealing, kind of stealing my next question. Well, well anticipated there Bob. So no, no imminent plans to, I guess kind of refile that solar project.
So no no imminent plans to I guess kind of re file that that solar project.
Well, we're I mean, we're working on it.
Speaker 2: Well, we're working on it. We're working to find...
We're working to find.
Land for it.
And that's how we got to start with the land and then you know it's.
Speaker 2: land for it. And we've got to start with the land and then, you know, it's...
There's a there's a lot of steps in the critical process or their critical path there, but the first is getting getting appropriate land that would.
Speaker 2: There's a lot of steps in the critical process, or the critical path there, but the first is getting appropriate land that would accommodate it.
Would would accommodate it.
So.
I mean, it's something we're very interested in doing we think the state policy supports it.
Speaker 2: I mean, it's something we're very interested in doing. We think the state policy supports it, and we're working through it. It just takes time.
And we're working through and it just it just takes time.
Okay is it should we think of it as being driven by meeting the next kind of Rps hurdle I think in the K you sided 50% by 2026 and you're at you know 37 or something like that.
Speaker 6: kind of RPS, or I think in the K, you know, you cited 50% by 2026, and you're at, you know, 37.
Yeah, there's a lot of benefits to a solar facility. One is to help with the Rps requirements also reduction in greenhouse gas emissions is another.
Speaker 2: Yeah, there's a lot of benefits to a solar facility. One is to help with the RPS requirements, also reduction in greenhouse gas emissions is another, another issue and having, you know, generation, technically generation on.
Another issue and.
Having.
Generation technically generation on.
At the location is important too given.
Although this hasn't been a problem, but given that we've got you know power coming from places.
Speaker 2: Although this hasn't been a problem, but given that we've got power coming from places to go to the facility and if Edison had to ratchet back their power because of
To go to the go to the facility.
If edison had to.
Ratchet back their power because of the public.
Public safety power shut offs.
Speaker 2: public safety power shut us. You know, we understand that's a bit of a risk for us, although it has not been a problem today.
We understand that.
Bit of a risk for us although it has not been a problem to date.
Gotcha, Okay. So I mean, when when bear Valley <unk> filed its electric.
Speaker 6: Gotcha. Okay, so I mean, when, when their value files, it's an electric great case. I think it's, you know,
Electric rate case, I think it's here in a couple of months.
Can you give us any sense you know the size of the case both in terms of you know what kind of value. The bear Valley, you know rate base since up to you know me.
Speaker 6: Can you give us any sense, you know, the size of the case, both in terms of, you know, what kind of value...
Speaker 6: their valley rate based is up to, you know,
Maybe what kind of rate increase we're talking about and you know kind of sounds like on an ongoing basis. The 15 million capex is somewhere to to kind of bogey that around.
Speaker 6: Maybe what kind of rate increase we're talking about and kind of sounds like on an ongoing basis, the 15 million cab X's is somewhere to kind of...
Yeah. So we're still working on the numbers, Jonathan but but you're right. We do plan to file a file a rate case later this year.
Speaker 2: Yeah, so we're still working on the numbers, Jonathan, but you're right, we do plan to file a rate case later this year.
One of the things everyone should be aware of these wildfire mitigation expenditures.
Speaker 2: One of the things everyone should be aware of is these wildfire mitigation expenditures.
We've been including those in memorandum accounts and no. None of those are in rates, yet and part of the process in the general rate case will be to include those.
Speaker 2: here we've been including those in Memorandum accounts.
Speaker 2: None of those are in rate yet, and part of the process in the general rate case will be to include those through 2000.
Through 2021.
And so we're very sensitive to the increase in rates. This will have on our customers, but it is we do feel these expenditures where necessary and.
Speaker 2: And so we're very sensitive to the increase in rates that we'll have on our customers, but we do feel these expenditures were necessary.
You know our are important for safety et cetera.
Speaker 2: are important for safety, et cetera.
Alright.
Speaker 6: All right, and any guidance you can give in terms of the value of the rapeseen. I know there's a disconnect right now between what you're kind of technically allowed to earn on versus, you know, what it is with a lot of that capex, the wildfire at least capex, not in race.
Any guidance you can give in terms of the value of the rabies I mean, I know there's a disconnect right now between what you're kind of secondly allowed to earn on versus you know what it is with a lot of that capex the wildfire at least capex not in rates.
I think the other than the adopted rate base that possibly you know by now for bear Valley $69 million.
Speaker 3: I think Jonathan has adopted Raybase as approximately right now for their value is about $69 million. We spend 10 to $12 million worth of capital projects.
And we spend $10 million to $12 million Wi Fi our capital target.
So you know so you can kind of estimate how much it may be smaller file.
Speaker 3: So you know, so you can kind of estimate how much the rebate will file the starting point will be because all those wire fire plants.
Point would be because although it's Wifi plan okay.
'twenty I think like 19.
Speaker 3: 2020 I think, right Bob? Yeah, 2019 even. Yeah, so we'll be including our fighting per commission's decision on the WIFI plan and we're not supposed to get recovery until the GRC process. So those were all being included in the fighting plus the annual regular.
Even though before being coordinating all fighting for a condition that can fishing on Wi Fi plan, we're not supposed to get recovery until I see I see pockets.
So well be included in the five plus the annual regular.
Oh Capex that we have to do a slightly electric settlement. So that should give you some a good approximation there.
Speaker 3: cat baths that we have to do.
Speaker 3: for the electric segment. So that should give you some good apos.
Okay, and the 69 million that's the average value for 'twenty, two or was it for 'twenty, one I'm trying to what activity.
Speaker 6: Okay, in the $69 million, that's the average value for $22 or was it for $21? Man i don't care statues to me.
Okay awesome.
Speaker 6: Okay, awesome. And then I guess just lastly, I know AWK on their call, they indicated they have a couple active bid doubt there said, you know, one being naval station, may port, they thought would be decided this summer. Is that one that you guys are involved with in terms of, you know, trying to win that RFP and, you know, any additional color in terms of when we might get some new bases awarded?
And then I guess, just just lastly, I know a W. K on their call. They indicated you know.
They have a couple of active bids out there said one being naval station Mayport.
Would be decided this summer is that one that you guys are involved with in terms of you know trying to win that RFP and you know any any additional color in terms of when we might get some new bases awarded.
Yeah, you know Jonathan we're very active in the in the space I think you could assume that we're.
Speaker 2: You know, Jonathan, we're very active in the space. I think you could assume that we're...
Bidding.
A number of bases and.
Speaker 7: bidding on a number of bases and Mayport is one that we have submitted a bid on.
Mayport is one that we have.
Submitted a bid on.
And any any besides mayport that you think or are near.
Speaker 6: And any besides Mayports that you think are near in terms of award or is that, you know, the only one that kind of seems like maybe a 2022 event.
In terms of award or is that.
The only one that kind of seems like maybe at 2022 event.
Yeah, all the I would say of the traditional utility privatization.
Speaker 2: Um, yeah, I would say of the traditional utility privatization.
Mayport is one that we would think would be awarded.
Speaker 2: Bayport is one that we would think would be awarded.
Perhaps there's another one that will get awarded.
Speaker 2: Perhaps there's another one that'll get awarded. I don't know if it would be...
Don't know if it would be.
It would be earlier than what is normal.
Speaker 2: It would be earlier than what is normal. There's a Pax River.
There's a Pax river.
RFP that's out there by the by the Navy, but it's.
Speaker 2: RFT that's out there by the Navy, but it's...
It's earlier I mean, it's earlier in the process. Then then may poor it is.
Speaker 2: It's earlier, I mean, it's earlier in the process than May port is. Okay. Okay. And then it's possible. They'll be.
Okay.
And then.
It's possible there'll be.
Quasi awards that are.
All of the.
Out of the norm you know not part of the U P. P process that you might.
Speaker 2: out of the norm, you know, not part of the UPP process that you might, sorry, utility privatization process.
Sorry utility privatization process that.
It may look a little different.
I don't know what our competitors are working on so.
Speaker 2: I don't know what our competitors are working on, so it's possible you'll see...
It's possible you'll see.
Some other awards, but but.
Probably not.
I'm, sorry, I got from some non traditional things going on in the space and were.
Speaker 2: Some non-traditional things going on in the space. And I think it's fairly early on in the process, but you know,
I think it's fairly early on in the process, but.
Yeah.
We're just looking at some projects I guess.
Gotcha, Okay, we'll just stay tuned on that and good luck as those RFP comes out hopefully, yes, you're asking us to be successful. Thank.
Speaker 6: Gotcha. Okay. Well, we'll just stay tuned on that and good luck as those RFE come out. Hopefully, yes, you have to, uh, can be successful.
Thank you.
Ladies and gentlemen, this concludes our question and answer session I would like to turn the conference back over to Bob Sprowls for closing remarks.
Speaker 1: and ladies and gentlemen it's a good question and an intercession i'd like to tell my conference back over to Bob Sprouls for closing the war
Yeah, I just wanted to wrap it up today by again thanking everyone for their participation on the call today and for their interest in American States.
Speaker 2: I just want to wrap it up today by, again, thanking everyone for their participation on the call today and for their interest in American states. No?an
Water company and.
Wish you all a good 2022.
Thank you Sir This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
Speaker 1: Thank you, sir. This includes today's conference call. We thank you all for attending today's presentation. You went out to select your lines and have a wonderful day.
Yeah.