H2O AMERICA Q3 FY2024 earnings call

• Regulatory and Infrastructure: Filed settlement agreement in California, received approvals for infrastructure filings in CT and ME, invested $252M YTD in water and wastewater infrastructure. - Sustainability and Awards: Recognized as America's Greenest Company, CA operation to get $8M GRIP grant, CT ops Top Workplace. - Innovation: Leveraging AI for leak detection, designing PFAS treatment facilities, evaluating income assistance programs.

In the third quarter of 2024, SJW Group's revenue was $225.1 million, a 10% increase from $204.8 million in the same quarter of 2023. Net income was $38.7 million, up 7% from $36.2 million. Year-to-date, revenue was $550.6 million, a 10% increase from $499 million, and net income was $71 million, up 8%. California: Filed a settlement agreement with the CPUC for San Jose Water's 2025-2027 general rate case, anticipates a $8M grant for clean energy infrastructure. Connecticut: Received a Top Workplace award for the fourth consecutive year, WICA surcharge effective. Maine: Filed a general rate case application and intends to consolidate tariffs. Texas: Filed a second SIC, drought impacted usage, acquired KT Water Resources assets for water supply expansion.

GAAP guidance for 2024 is $2.65 to $2.75 per diluted share; non-GAAP guidance is $2.68 to $2.78 per diluted share. Reaffirmed 5-7% long-term growth rate. Raised $65M gross equity proceeds via ATM, plan to enter new ATM agreement. Maintain $1.6B capital investment outlook, including $230M for PFAS remediation.

• Industry challenges: Meeting new water quality standards, replacing aging infrastructure, maintaining affordability. - Regulatory uncertainties: Potential impacts of cost of capital mechanism changes on rate cases. - Drought impact on Texas water usage.

Q: Usage trends in Texas and 2025 growth A: Drought in Texas affected 2024 usage, but settled rate case in CA and CT rate case support long-term 5-7% growth Q: Maine tariff consolidation A: Strategic move to streamline rate cases, benefits communities and regulators by reducing administrative load Q: Aquarion acquisition A: Eversource to announce bidder for Aquarion by end 2024, SJW interested, regulatory approval expected in 2025 Q: California cost of capital and CapEx for Lead and Copper Rule A: No immediate impact on water utilities' cost of capital, CapEx to increase for Lead and Copper Rule compliance Q: California earnings profile and data centers A: Earnings still non-linear due to division structure, data centers unlikely to cause significant water volume changes