The following is a summary of the American States Water Company (AWR) Q3 2024 Earnings Call Transcript:
Financial Performance:
AWR reported a Q3 earnings of $0.95 per share, up from $0.85 per year ago, mainly due to rate increases and gains on investments.
The water utility segment reported earnings of $0.84 per share, up from $0.72, driven largely by rate increases and lower income taxes.
Earnings from ASUS were consistent with previous year, contributing $0.11 per share in Q3 2024, similar to Q3 2023.Consolidated revenue for Q3 increased by $10 million year-over-year, with water segment revenue up by $7.8 million.
Reported year-to-date earnings of $2.42 per share, compared to $2.82 in 2023, with last year's figures including specific retroactive rates and reversals not present this year.
Business Progress:
Continued significant investment in infrastructure with $172.5 million invested year-to-date and plans to invest $210 to $230 million by year end.
Golden State Water and Cal Advocates reached a settlement for water rate case setting new rates for 2025-2027, with planned investment of $573.1 million in capital infrastructure.
Bear Valley Electric reached settlement for electric rate case, authorizing $75.6 million in capital infrastructure investment from 2023-2026.
Announcement of ASUS being awarded a record high $54 million in new capital upgrade construction projects for 2024-2027.
Opportunities:
The settlements in rate cases for both water and electric segments open up opportunities for revenue increases associated with capital investments projected to total over $648.7 million.
Additionally, the ability to adjust rates retroactive to January 2023 can lead to increased earnings once regulatory approval is secured.
Risks:
AWR faces a risk from delays in regulatory decisions, particularly with the delay in receiving a decision on the electric general rate case, which affects the timing and recognition of associated earnings.
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