Q4 2022 American States Water Co Earnings Call
Speaker 1: And there.
Speaker 1: six Z, four for, But of that that seven time that.
Speaker 1: The what.
Speaker 2: quarter and full year 2022 results.
Speaker 2: The call is being recorded. If you would like to listen to a replay of this call, it will begin this afternoon at 5pm Eastern Time and run through Thursday, March 9, 2023 on the company's website, www.aswater.com.
Speaker 2: The slides that the company will be referring to are also available on the website.
Speaker 2: All participants are currently in a listen-only mode should you need assistance and if they know a conference specialist by pressing the star key followed by zero.
Speaker 2: After today's presentation, there will be an opportunity for questions. To ask a question, you may press star and 1. Withdraw all your questions, you may press star and 2.
Speaker 2: We also note that today's conference call will be limited to one hour.
Speaker 2: Today, from American Street Water Company, our boss sprouts.
Speaker 2: and Chief Executive Officer, and Eva Tang, Senior Vice President of Finance and Chief Financial Officer.
Speaker 2: As a reminder, certain matters discussed during this conference call may be forward looking statements intended to qualify for the safe harbor from liability established by the private securities litigation reform act of 1995.
Speaker 2: Please review a description of the company's risks and uncertainties in our most recent Form 10-K and Form 10-Q on file with the Securities and Exchange Commission. In addition, this conference call will include a discussion of certain measures that are not prepared in accordance with generally accepted accounting principles or GAAP.
Speaker 2: in the United States and cost to do non- GAAP financial measures under SEC role.
Speaker 2: These knowing- GAAP financial measures are derived from consolidate financial information. They're not presented in our financial statements that are prepared in accordance with GAP.
Speaker 2: For more details, please refer to the press release.
Speaker 2: At this time, I'd like to in the comments go over to Bob Sprouse, President and Chief Executive Officer of American Space Water Company.
Speaker 3: Thank you, Jamie, and welcome everyone, and thank you for joining us today.
Speaker 3: I'll begin with some brief comments on the year. Eva will then discuss some financial details.
Speaker 3: And then I'll wrap it up with some further thoughts on the quarter in the year.
Speaker 3: Updates on regulatory activity ASUS.
Speaker 3: Give it in and then we'll take your question.
Speaker 3: During a year of high inflation, rising interest rates, volatile markets, and supply chain challenges, we stay focused on providing safe and reliable water, wastewater and electric services to over 1 million people in nine states.
Speaker 3: To accomplish this, we spent 2022
Speaker 3: successfully executing on our strategic plans, continuing our financial discipline, building and fortifying our infrastructure.
Speaker 3: providing excellent customer service.
Speaker 3: ensuring employee safety and well-being.
Speaker 3: at managing the water and wastewater for our country's military personnel and family.
Speaker 3: 2022
Speaker 3: We invested a record high $167.4 million in infrastructure at our regulated utilities.
Speaker 3: and received $34.4 million in new capital upgrade awards.
Speaker 3: $34.4 million in new Capitol Upgrade Awards at ASUS.
Speaker 3: nearly double the amount from 2021.
Speaker 3: The significant investments will allow us to serve our customers for generations to come.
Speaker 3: As we turn to the financial results, the largest impact on our earnings per share for the year was the delayed decision from the California Public Utilities Commission for a CPUC on Golden State Waters General Rate Case.
Speaker 3: New rates are to be effective January 1, 2022 and if approved as settled would have resulted in an increase of 38 cents per share for the year.
Speaker 3: However, we continue to wait for a decision and because of that, we're not able to include the effect of any new rates on 2022 financial performance.
Speaker 3: As soon as the decision is received, new rates will go into effect and still be retroactive to January 1st, 2022.
Speaker 3: which also means that the resulting increase in earnings per share is expected to be recognized.
Speaker 3: in 2023's financial result.
Speaker 3: Secondly, we experience losses incurred on our investments to fund one of the company's retirement plans.
Speaker 3: which negatively impacted earnings per share by 10 cents for the year.
Speaker 3: as compared to gains of 8 cents per share in 2021.
Speaker 3: including the effects of these two items from both here.
Speaker 3: Adjusted consolidated diluted earnings for 2022.
Speaker 3: or $2.59 per share as compared to adjusted diluted earnings.
Speaker 3: $2.47 per share for 2021.
Speaker 3: an increase of 12 cents per share.
Speaker 3: On the regulatory front there are several critical filings pending.
Speaker 3: which I will discuss later.
Speaker 3: And we remain proud of our dividend history and growth.
Speaker 3: In 2022, we increased the annual dividend by 8.9%.
Speaker 3: our 68 consecutive year of annual dividend increase.
Speaker 3: People will discuss the earnings and liquidity and I'll turn the call over to you.
Speaker 4: Thank you Bar. Hello everyone. Let me start with our fourth border finding two details.
Speaker 4: Consolidated earnings as reported for 50 cents per share as compared to 55 cents per share last year. In 2031, a decrease of 5 cents per share. This included gains of $1.3 million of three cents per share on investment held to fund a retirement plan.
Speaker 4: as compared to gains of $2 million or $0.04 per share in 2021.
Speaker 4: This item resulted in an unfavorable variance of $0.01 per share.
Speaker 4: In addition, due to the delay in receiving a final decision on the pending water generation, the revenues for 2022 were based on 2021 adopted rate.
Speaker 4: Had the new rates been approved and implemented on January 1, 2022, consistent with the settlement agreement reached between Golden State Water and the Public Advocate's Office at the CTUC, we would have recorded additional revenues and water supply costs.
Speaker 4: that would have resulted in higher earnings of license for here with 440.2.
Speaker 4: Also, as we received the decision in the fourth quarter, we would have recorded a full-year impact of 38 cents per year in Q4.
Speaker 4: It's good in the gains on investments from both periods and including the impact cost that delayed the water generate in the results. Adjustment consolidated earnings for the border were 56 cents per year as compared to earnings of 51 cents per year with 4.4 dollars of 2021.
Speaker 4: It includes a license for sure or nearly 10%.
Speaker 4: He's fired a 310-per-tier reduction in the earnings for 24 of 2022 as the result of recording a lower set-cost independent cost of capital for seedings for the water segment.
Speaker 4: For our water utility subsidiaries, Golden State Water Company reported earnings for the quarter were 28 cents per share as compared to 36 cents per share in 2021.
Speaker 4: For our water utility subsidiary, Golden State Water Company reported earnings for the quarter were 28 cents per share as compared to 36 cents per share in 2021. An 8 cent increase decrease.
Speaker 4: Both eyes and just discussed the affected earring at the walled other segment.
Speaker 4: So factoring in the same effect from the two items, adjust the earnings for the fourth quarter of 2022, at the wildest segment, or 34 cents per year, which was an increase of 2 cents per year and compared to the adjusted earnings of 32 cents per year.
Speaker 4: for the same period in 2021. Also included in the water segment results for the quarter was a $1.4 million reduction in revenue, or $0.03 per share, to reflect our best estimate at this time of revenue subject to refund.
Speaker 4: ComposITE waters pending concertscen?? Vocational
Speaker 4: which includes the impact of a lower cost of debt requested in its application.
Speaker 4: There were also increases in operating expenses and an interest spend partially offset by increasing other income.
Speaker 4: Our elected segments are named for a sense procedure found in fourth quarter and compared to seven sense procedure for spend periods in 2021.
Speaker 4: An increase in electric revenues and a lower effective income tax rate were partially offset by higher interest expense.
Speaker 4: Ernie from our contracted services segment includes four cents per tear for the quarter, which Bob would discuss later during the call.
Speaker 4: Turning on the next slide, consolidate the revenue for the fourth quarter of 2022, increase by $8.8 million as compared to the same period in 2021. The increase was mostly due to the increasing revenues from our contracted services.
Speaker 4: The decreasing water revenue was due to the cost of debt adjustment expected from the cost of capital proceeding.
Speaker 4: and a decrease of approximately $1 million in amounts included in the approved pension and conservation balancing act.
Speaker 4: Both the witch are offset by lower expenses and have known that an enemy will pass.
Speaker 4: Again, while the revenue for the fourth quarter of 2022 were based on 2021 adopted rates, the increase in electric revenues was many due to the use of the approved rate increases for 2022.
Speaker 4: Turning to slide 9 looking at photo operating expenses other than supply cost.
Speaker 4: Our validated expenses increased approximately $10.6 million as compared to the fourth quarter of 2021. This was primarily due to an increasing construction cost at our contact services segment.
Speaker 4: We saw moving from higher tracing s?.
Speaker 4: and higher other operations administrative and general and decision-spinces are certainly offset by a decreasing maintenance cost.
Speaker 4: Interest expense net of interest income could increase by $2.2 million, you will do higher average interest rate during the quarter and increases in overall borrowing level.
Speaker 4: Other income net of other expenses increased by $400,000. You primary to an increase in now service cost component for Gold and State Water benefit plans.
Speaker 4: Other income net of other expenses increased by $400,000. You primary to increase the announced cost components for gold and state water benefit plans. Resulting for lower-erb.
Speaker 4: actual aerial losses recognized for the fourth quarter of 2022.
Speaker 4: partially often by decreasing gains on assessment held for retirement plan.
Speaker 4: Right hand, don't think yes, please.
Speaker 4: I'm carrying the 4th order of 22 with 221 4th order.
Speaker 4: This slide will affect our full year earnings for share by segment as reported.
Speaker 4: And as suggested, fully diluted earnings for 2022 were $2.11 as compared to $2.55 for 2021, a decrease of 44 cents per year.
Speaker 4: and unfavorable variance of 18 cents per share was due to losses of $5.2 million on retirement plan investment this year as compared to gains of $4.3 million for 2021.
Speaker 4: In addition, add a new rate in the DRC settlement being approved by the CQC and Interiments of January 1, 2022. I'll earn it with having please write 38 cents per year.
Speaker 4: Estuiting the gangs and losses on the retirement plan investment from both years and including the results of the new waterway transplant agreement for 2022. Adjust this consolidated earnings for 2022 were $2.50 per year, which were $12 per year higher than adjusted earnings of
Speaker 4: to here today in the gold convenience park in the form? as
Speaker 4: Turning to the critical of slide 12, that cash provided by operating at 50s was $117.8 million as compared to $116.6 million for 2021.
Speaker 4: In 2022, our regulated utility received $10 million in COVID-19 relief funds from the state of California.
Speaker 4: to provide assistance, customer for the Lincoln Water and Lenswick Customer Bill in turn to doing the COVID-19 pandemic.
Speaker 4: The increasing operating cash flow was also due to differences in timing of vendor payments due to the superiors.
Speaker 4: and the timing of building off and testing for construction work at ministry bases.
Speaker 4: These increases were partially offset by a decrease in customer satisfaction. Collections resulting from decrease in water consumption due to draw conditions and restening.
Speaker 4: These undercollections were being captured in the 2020 Water Revenue Adjustment Maximism for the RAM.
Speaker 4: Furthermore, the delay in the water generation decision has negatively affected cash flow for operating activities.
Speaker 4: A year today build revenue has been very sound 2021 adopted customer rate, while operating census have continued to increase.
Speaker 4: Our regulated utilities invested $167.4 million in company fund its capital projects in 2022.
Speaker 4: We expect capital expenditure of 140 to $160 million for 2020.
Speaker 4: The WR's credit facility with a borrowing capacity of $280 million dollars in sales is here. The outstanding borrowing has been classified as a current liability in the company's Scientology's????? likely to challenge the charity's
Speaker 4: as of December 31, 2022. We plan to either renew a extended facility or enter into a new credit facility prior to its correlation date.
Speaker 4: We believe the company's sound capital structure and A-plus credit rating for American states and Golden State waters, combined with financial disciplines and history and relationships with the lenders, will enable us to accept the debt market.
Speaker 4: with reasonable terms as well as putting place a new facility before May 25th. In January of 2023, TOTUS, they water issued a secure and private placement, so totaling $100,000.
Speaker 4: The proceeds were ultimately used to partially take down AWR's credit facility and further support COVID-19 state water after progress. At this time, we do not expect AWR to issue additional equity for at least the next 18 to 24 months.
Speaker 4: the phones, the phones, that have been mentioned.
Speaker 4: We will continue to access the page for equity insurance.
Speaker 4: And if and when AWR decides to issue equity, we plan to raise capital over time. We will consider doing an ad market offering that enable AWR to control the timing and size of its sale of its common fields over several years.
Speaker 3: With that, I'll turn the call back to Bob. Thank you, Eva. I'll discuss a few key regulatory matters.
Speaker 3: As mentioned in previous earnings call, we reached nearly a full settlement agreement with the public advocates office of the CPUC on Golden State Waters 2022 through 2024 tenth or seventh April , around Chaos Mag
Speaker 3: And filed the Settlement Agreement with the CPC in November 2021. If approved, this Settlement Agreement resolves all the issues related to the calculation of the 2022 annual revenue reform.
Speaker 3: It authorizes Film State Water to invest approximately $404.8 million in capital infrastructure over the three-year cycle.
Speaker 3: plus $9.4 million of capital projects that have been completed and filed as a vice letter project.
Speaker 3: The revenue for which was in effect February 15th of last year.
Speaker 3: It increases gold state waters adopted operating revenues for 2022 by approximately $30.3 million, which includes an increase for higher adopted supply costs of $9.6 million.
Speaker 3: has compared to the 2021 adopted revenue.
Speaker 3: excluding the Advice Letter Project Revenue. And it allows for potential additional increases in adopted revenues for 2023 and 2024 subject to an earnings test and changes to the forecasted inflationary index value.
Speaker 3: Obviously, we're disappointed that we have not received a proposed decision for 2022 water rates.
Speaker 3: which as previously mentioned could have added 38 cents per share to our 2022 financial results.
Speaker 3: We are now in the process of preparing our next water general rate case to be filed in July of this year.
Speaker 3: For a rate for the years, 2025 through 2027, one key issue in the next application is related to the water revenue adjustment mechanism.
Speaker 3: In September 30 of last year, the Governor of California signed Senate Bill 1469.
Speaker 3: Effective January 1, 2023, it allows Class A water utilities to request the use of the full RAM in their next general rate case.
Speaker 3: So with the passage of the spill, Golden State Water will be able to request the continued use of the RAM in the general rate case we plan to file this to lot. Although the CPU T can still rule against the individual utilities,
Speaker 3: In their request to use the full RAM, this is a significant step forward as decoupling for water utilities is now in the public utilities code.
Speaker 3: In addition, Golden State Water.
Speaker 3: Other water utilities in the California Water Association.
Speaker 3: Have appeal the August 2020 APUC decoupling decision to the California Supreme Court.
Speaker 3: And the court has agreed to hear the case. As a result of the passage to Senate Bill 1469, the court has agreed to hear the case.
Speaker 3: The CPC filed a motion to dismiss the petition with the court in October 2022, but was denied by the Supreme Court.
Speaker 3: Next, I'll discuss the cost of capital proceeding.
Speaker 3: The cost of capital application with the CPUC in May 2021.
Speaker 3: requesting a capital structure of 57% equity and 43% debt.
a return on equity of 10.5%, an embedded cost of that is up to 5.1%, and a return on rate of 8.18%.
We have recorded a reduction to water revenues.
which decreased fourth quarter 2022 earnings by three cents per share. And the earnings for the full year of 2022 by 13 cents per share.
to reflect the estimated revenue impact of a lower cost of debt of 5.1 percent as requested in our cost capital application as compared to 6.6 percent included in the 2021 rate p.m..
currently being billed to water customers. In addition, in the Cost of Capital application, Golden State Water has requested authorization from the CPUC to continue the Water Cost of Capital mechanism. For the period from October 1, 2021, the
Through September 30, 2022, the Moody's AA utility bond rate increased by more than 100 basis points from the benchmark.
As you know, if there is a positive or negative change of more than 100 basis points, the return on equity is adjusted by one half of the difference.
We expect this to be addressed by the CPC in the pending proposed decision.
Our electric utility subsidiary filed its general rate case on August 30th of last year.
In addition to new rates, there are a number of items that are requested, such as additional capital expenditures as part of the four-year rate cycle and a new capital structure. In addition, we have requested the recovery of more than $20 million in capital already spent related to the wildfire mitigation plan.
In the fourth quarter, the CPUC approved a decision for a general rate case memorandum account that will make new rates once approved in a CPUC final decision.
Effective January 1, 2023. Turning our attention to slide 16, we present the growth in Golden State Waters Average Rate Basin has authorized by the CPUC for 2018 through 2021.
Weighted average water rate base has grown from $752.2 million in 2018.
the $980.4 million in 2021.
Based on the General RAK settlement agreement, the 2022 RAK base amount is $1,152.3 million.
which, if approved, would result in a compound annual growth rate of 11.3% since 2018.
The rate-based amount shown for 2021 in 2022 do not include any rate recovery for advice Through a project
Let's move on to ASUS, which contributed earnings of $17 per share for the fourth quarter as compared to $13 per share for the same period last year, an increase of $4 per share.
The increase was largely due to an increase in construction activity during the quarter and an increase in management fee revenue resulting from resolution of various economic price adjustments partially offset by higher overall operating expenses.
as compared to the same period of 2021. The earnings for the full year 2022 were 46 cents per share, as compared to 48 cents per share for 2021 as the contract is service to the segment experienced challenges in its construction activity.
resulting from longer material supply chain lead times, weather conditions, and other delays during the first nine months.
of the year. We expect the supply and issues will improve this year and project that ASUS will contribute 45 cents to 49 cents per share for 2023.
They mentioned earlier ASUS received new capital upgrade project awards of $34.4 million in 2022 for work that will be performed in the next few years.
In completion of filings for economic price adjustments, requests for equitable adjustment, asset transfers, and contract modifications awarded for new projects.
Provide ASUS with additional revenues and dollar margins.
We remain confident that we can effectively compete for new military-based contract awards in the future.
based on our proven track record of managing water and wastewater related services for military bases in 2004.
I'd like to now turn our attention to dividend, which remain a compelling part of our investment story.
A quarterly dividend rate has grown at a compound annual growth rate of 9.3% over the last five years. These increases are consistent with our policy to achieve a compound annual growth rate in the dividend of more than 7% over the long term.
Our strong dividend history is something that the company is proud of.
and is a continuing asset to our shareholders. This strong track record has allowed us to achieve a compound annual growth rate of 9.2%.
Get our calendar, your dividend payments, shareholders over the last 10 years.
our calendar your dividend payments to shareholders over the last 10 years for 2012.
for 2022. I'd like to conclude our prepared remarks by thanking you for your interest in American State's water and I'll now turn the call over to the operator.calm to her question.
Ladies and gentlemen, at this time we'll begin the question and answer session.
To ask a question you may press star and then one using a touch of telephone. So, withdraw your questions you may press star and two.
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Once again, in order to join the question, Q, you may press star and one. Our first question today comes from Angie Stores and C from Seaport. Please go ahead with your question.
Thank you. So maybe first you know you have the 13 cents of a drag reflected in your earnings and it's unique for you guys compared to the other two California utilities right because you are reflecting the lower cost of that from the pending cost of capital proceeding even though there hasn't been an actual abuse ability.
rendered or we're not sure if it's going to be retroactive. So in other words, if the decision does not require a retroactive adjustment to the cost of debt, that's 13 cents, it's going to return in 2023, meaning it's going to be an earning milestone.
It will be additive to 2023 earnings. Is that correct? That is correct. Okay.
How are you doing Angie? Very good. Again, I mean, what a mess, huh? I mean, it's just so unfortunate that we haven't had a decision in your rate case or cost of capital proceeding. And looking at your electric rate case, it also seems like it's likely to split. So
It will be, you know, an essence of recurring headache, right? You know what the tourning flower of your business is. Oh. Yeah, the electric rate case, given it's very small size, you know, it's likely that he wins.
The commission particularly on the electric side of the house which is due process is that in their case You know it's quite possible that that will get delayed given
given the size and what everything else they've got going there. Okay. Now, just trying to understand the 8.9% dividend increase and the messaging that it sends about the longer term dividend increase,
States, what would be the rate-based growth going forward? So if I were to take 2022 through 2024 based on the settlement, what would be the rate-based CAGR?
there. Yeah so we've got a pretty good step up between 2021 and 2022 which is on
I could have splashed your arm. 16. Yeah. Yeah.
Yeah. Yeah. And then I would head... The picture is quite unfortunate, maybe. The camera doesn't get torn up.
I don't know what that percent changes, but that's a big jump there. And then I would say it's not as significant for 23 and 24.
And we have 404.5 million capsicum authorized over the three years, so we have every year in one third of of that amount. So you will use the 2022 Adapter Race phase and you know, of that amount minus.
So the second, third year probably, much less than the increase in the first half year of the regular basis.
So we are preparing for the next great case, which will be effective 2020.
So that will be, we anticipate a much higher increase in grade days from that year.
Okay, so 25 onwards. Okay, and then lastly, the fourth-themed parent drag, you know, it's a pretty meaningful increase from previous years. Is it, when I see the drivers, interest expense and taxes, I mean, when I look forward for the next year or two, is that, you know, given the rising interest rate? Okay.
Do I see the parent drive creep up further? So, you know, I'm growing at like 1 to 2 cents a year from this current level.
meaning on a negative side obviously. It's really a function of it in the industry. And if they're flat, if they're flat, Rolex is 22, you won't see it grow.
It's really the jump and interest rate that created that drag. Not necessarily.
the borrowing level. Now I want to go back to your other question if I could. Yeah, I just did the math on the 22 versus 21. Great base growth. And that's.
17.5% growth from 21 to 22. But just one last one, so Eva, you're saying there's been a change in the wording about the equity needs. So is that also a function of rising interest rate?
you know, signaling that there could be, you know, some need for equity beyond the next 24 months. No, not so much the rising interest rate and it was too waiting for the water GRC, you know, depends on the timing or what it needs to be carried over.
And also our CapEx continues to go up and as we prepare for our next DRC, we anticipate the capital expenditure continuing to increase. So just to support the overall capital spending for the utility.
And everybody also think a lot of money on their capital expenditures as well. So it was really to support the capital expenditures for the company. So we will continue to assess that. We're hoping we can last for 24 months, but we'll set the market no for sure if we're ready.
with that. Okay, thank you. Once again, if you would like to ask a question, please press star and then one. To withdraw your question, you may press star into.
Our next question comes from Jonathan Reader from Wells Fargo. Please go ahead with your question.
Hey, Bob and Eva, just wanted to continue that last discussion on equity. Just trying to get a sense of the amount that you can need after that 8, 2, 4 month period that you mentioned. Can you talk about the targets that AWR has for FFO to debt, debt to Eva, and just the
and that the equity coming from parents needs to support that. So, and for the parent, we would like to maintain our credit rating for the rating agencies. So, we'll continue to look at their benchmarks, make sure we are updating their requirements.
hopefully maintain our considerations at the parent level as well.
Okay, do you know what those like metrics are on an FFOTA depth basis for your your A plus and everything?
Yeah, so it's a bit of a debate between us and standard and poor's, I'll tell you that.
because they are...
We're kind of looking at the what 20 to 25 episodes yet for American States and Golden State.
And one of the issues here is whether, because we have the revolver at the parent.
We have to look at this 20 to 25.
If we had the revolver at Golden State, perhaps the FFO to that would be lower.
Yeah, I believe the benchmark, a pure water is lower. Yeah. Because we have other things under the American state umbrella than just full states are FFO to debt perhaps is a bit higher benchmark is than FFO to debt.
What you might see for a pure water gun. Okay. Any thoughts on like putting a revolver, you know, having a different revolver at the utility level than to to trust that or not really? Yeah, we're thinking through that as we speak.
With F&P, we got the A-plus rating for both parent and golden state and with a negative output. We're working hard.
You know, maintain our ratings there. Whenever you have a negative outlook, as you know, John , I think you've got to work hard to try to keep your ratings. And so we are. Okay.
Okay, makes sense. GRC, any idea what happened with ALJ? I know they had put out the time extension saying that the proposed decision was going to come in January . So, I mean, I understand things can kind of slip, but to say that...
with a couple weeks ago and now we're over a month after January . Any idea what's going on there? Well, the fact that we have is just that they've got more work to do than people could do it.
But, you know, we've been pushing and pushing and pushing in it.
But you know, it just doesn't seem to be getting the ball across the goal line here. So I know Jonathan and Angie both are really frustrated. Really frustrated by this. You can imagine how frustrated we are with a...
all party settlements sitting in front of them, but it doesn't do me any good. I don't know what issues they have there. It just seems like maybe they don't have enough people to do the work. Yeah, it just seems kind of odd. I forget when in January came out, you know, but for the AL data. Very early in January , in January 12th, I think that...
The PUC approved the ALJ's request for a deferral. And then there was commentary about going to get the PD out of January . And then January came and went, and then now February has come and gone.
We've kind of met with everybody we think we can be with. You know?
Hard to put your finger on, you know, and I don't know if it's, this particular ALJ has got too many things on his plate.
hard to put your finger on. You know, and I don't know if it's, if it's this particular ALJ's got too many things on it. Wait. Are you there.
That seems to be what the issue is. So, what you know, we'll continue to push, push, push as much as we can, but...
I think at this point, as long as we get a reasonable decision from the commission, you know, that will be fine with it. It does create this lumpiness that makes it difficult for analysts to track. We do understand they've got.
staffing issues that we're trying to deal with too. Yeah, I mean do you think it's appreciated at the top of the House of the Commission? Like I mean I think you know President Reynolds you know when she was brought in one of her tasks was to try to get timely decisions out there. Do you think she has an understanding of you know the extent of the delays and you know
At the water side, or it's just, you know, is water just really taking a back seat at the commission to. All of the energy policy stuff.
I think she's aware that there's been delays on the water ratios.
how that fits into her duly. You know, it is a, I always defend the commission on this particular standpoint. California is a huge state. We've got five commissioners that have to basically deal with, you know,
Line up California with what you see on the East Coast and how many commissions are there doing with the issues that one commissioning California stamped with. You may have what, seven or eight state commissions. So, I do have a great appreciation for the difficulties and the challenges.
You know, they've tried to get things done on time, et cetera. It's just perhaps it's more...
or things to do then time to do it. Yeah, well, you're a patient person, but hopefully your patient is rewarded here and we can get some proposed decisions on the two big ones out here shortly, so. Good luck, appreciate you taking my call and the update today. Yeah.
Thank you, Jonathan.
And once again, if you would like to ask a question, please press star and then one, who would draw your questions you may press star and two.
Ladies and gentlemen, at this time, in showing no additional questions, I'd like to turn the conference call back over to Bob Sprowls for any closing remarks.
Thank you, Jamie. I just wanted to thank you all again for your participation today and we look forward to speaking with you next quarter, which will be a couple of months here, I guess. And thank you for your interest in the company.
I just wanted to thank you all again for your participation today and we look forward to speaking with you next quarter which will be a couple of months here I guess and thank you for your interest in the company have a good rest of your week
Thank you. And ladies and gentlemen, with that we'll conclude today's conference call and presentation. We thank you for joining today's conference. You may now disconnect your line.
I have you.
Will.
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