Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Additionally, advances in San Jose Water Company’s leak detection technology deployed in the field, as well as other enhanced leak detection capabilities in our field crews, have together enabled the company to detect and repair leaks sooner, avoiding significant costs associated with larger emergency main breaks in the distribution system |
| I’m pleased to share that we had another successful year |
| I’m confident our team’s commitment to serving customers, our local communities and the environment, while creating value for shareholders, will continue to reinforce our strong position for a successful future |
| With a diverse portfolio of water supplies, a growing wastewater business and continued acquisitions to the customer base through organic growth and acquisitions, we are very pleased with Texas Water’s increased contributions to our consolidated earnings and remain optimistic about its prospects |
| This multiyear project will enhance water quality, conserve water and have lower maintenance costs |
| I’m also proud to share that we’ve received recognition for our efforts |
| As our team continues to meet drinking water and environmental standards, deliver on our public health and environmental stewardship commitments, and provide high-quality water and exceptional service to customers |
| So bottomline, I am optimistic and feel very good about my team and what we put forth in our rate filing |
| And we delivered earnings per diluted share of $0.59 in the fourth quarter and $2.68 for the year, well above our original forecast |
| We received an A rating from MSCI for our work on ESG matters and our company was the highest-ranked utility in the prestigious Newsweek Excellence 1000 Index for 2024 |
| And so I remain very optimistic that we will have a fair result that would be capital attractive and constructive, and certainly, we’re going to find out more in May and in July, but really proud of the team |
| I’m super proud of our team |
| We also started and ended our 2023 financial performance on a strong note, delivering value for our shareholders through the continued execution of our proven growth strategy |
| Also, as I’ve mentioned before, we’re a better utility because of our employees’ talent and hard work |
| Every year, every quarter, every day, I continue to be inspired by the contributions of our talented teams across our national footprint, as they consistently provide an essential service with integrity, reliability and peace of mind for our customers |
| They make us a better utility |
| In just the past year, we have seen increasing developer interest in our Texas service area as outstanding development units with the potential for new connections increased 47% to 22,000 units today |
| As Eric mentioned at the top of the call, we have seen accelerated growth in Texas and the momentum continues |
| We achieved 12% customer growth year over year in Texas |
| I will add that in Maine, we’ve been very fortunate in all the testing -- the detailed testing we’ve done across all of our sources there |
| It’s a testament to the values of our company and our work to be a meaningful force for good |
| This compares to 2022 revenue of $620.7 million, reflecting an 8% increase and net income of $73.8 million, reflecting a 15% increase or diluted EPS of $2.43 per share, reflecting a 10% increase, which driven in part by a $0.14 increase due to the partial release of income tax reserves |
| With more than 28,000 water connections, 950 wastewater connections in the area between Austin and San Antonio, the company has quadrupled its service connections since 2006 and we intend to continue this momentum through prudent acquisitions, organic growth and securing strategic water resources such as the supply we acquired in the third quarter |
| So these are items that will help us strategically position ourselves for additional future growth |
| While this is a great achievement, we’re continually assessing how can we improve our best-in-class safety standards across our operations |
| So they’re meant to be investments that will help us produce better results in the future |
| In 2024, we will continue to execute on the key elements of our strategy to create meaningful value and drive future earnings growth |
| EPA, reducing greenhouse gas emissions through solar generation, energy storage systems to replace diesel generators, fleet electrification and advanced acoustic leak detection, plus advancing the CPUC’s Environmental and Social Justice Action Plan to improve access to high quality water service, climate resiliency and economic and workforce development |
| In 2023, we secured constructive regulatory outcomes across our operations, including the cost of capital decision and the reimplementation of the Water Conservation Memorandum Account in California, Water Infrastructure and Conservation Adjustment in Connecticut, and the settlement of our Biddeford-Saco general rate case in Maine |
| Our teams work diligently to ensure our people are trained and equipped to safely do their jobs |
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| And the blowback to me just seems in most cases remarkably uninformed by the benefits, the life cycle cost versus the first cost kinds of arguments |
| I understand that the final decision is due in June, but we’ve seen some very weak regulatory decisions on the electric and gas side, also on the water side from Aquarian |
| So my concern is that, generally across the country we’re seeing blowback, I think, more blowback on large rate requests than I can recall for a number of years, maybe selective amnesia |
| We saw reduced water usage in Maine due to wet weather and lower industrial usage, and in Texas due to water restrictions because of continuing drought conditions |
| Overall, we’ve seen reduced usage in this service area compared to 2022 due to the drought |
| Eric, particularly how long I’ve been concerned about the PFAS issues and other contaminants |
| By the way, Maine has had dreadful PFAS contamination issues |
| Candidly, up until that point, while many people wanted it resolved from a regulatory risk standpoint, a lot of commissions were concerned about, well, why should we approve a rate increase at cost to customers when there’s, in fact, no standard for this contaminant? There’s not even completed health studies by EPA |
| This delay in recognizing the revenues authorized in the general rate case affected quarter-over-quarter comparisons in 2023 |
| Many factors could cause the company’s actual results and performance to differ materially from those expressed or implied by the forward-looking statements |
| And I’m assuming that that’s somewhat of a drag on the 2024 guidance |
| Partially offsetting the increase in expenses was a $9.7 million decrease due to lower usage |
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