Q3 2024 California Water Service Group Earnings Call Transcript
Key Points
- California Water Service Group (CWT) reported a 17.5% increase in operating revenue for Q3 2024, reaching $299.6 million compared to $255 million in Q3 2023.
- Net income for Q3 2024 was $60.7 million or $1.03 per diluted share, a significant increase from $34.4 million or $0.60 per diluted share in Q3 2023.
- The company received approval from the California Public Utilities Commission to collect $94.2 million in regulatory balances through 2027.
- CWT has invested a record amount of capital in 2024, with $332.2 million spent on water infrastructure improvements by September 30, 2024.
- The company was recognized for its environmental leadership, receiving the WaterSense Excellence Award from the US Environmental Protection Agency for the second consecutive year.
- Operating expenses increased by $21 million in Q3 2024, primarily due to higher water production costs and increased depreciation and amortization.
- The Monterey Water Rate Adjustment Mechanism (MWRAM) saw a $9.4 million reduction, impacting revenue.
- Higher income taxes related to increased pretax earnings contributed to a rise in operating expenses.
- The company faces significant future capital investment needs, including $226 million for PFOS projects starting in Q4 2024.
- There is uncertainty regarding the CPUC's stance on decoupling, which could impact future rate structures and revenue.
Thank you for standing by. My name is Kathleen, and I will be your conference operator today. At this time, I would like to welcome everyone to the California Water Service Group third-quarter 2024 Earnings Call.
(Operator Instructions)
Now I would like to turn the call over to Jim Lynch, Senior Vice President and Chief Financial Officer. Please go ahead, sir.
Thank you, Kathleen. Welcome, everyone, to our third-quarter 2024 results call for California Water Service Group. With me today is Marty Kropelnicki, our Chairman and CEO and Greg Milleman, Vice President of Rates and Regulatory Affairs.
Replay dial-in information for this call can be found in our quarterly results earnings release, which was issued earlier today. A replay will be available until December 30, 2024. As a reminder, before we begin, the company has a slide deck to accompany today's earnings call. The slide deck was furnished with an 8-K and is also available
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