Ladies and gentlemen, thank you for standing by. Welcome to the American States Water Company conference call discussing the company's second quarter 2023 results. This call is being recorded. If you would like to listen to the replay of this call, it will begin this afternoon at 5:00 P.M. Eastern Time and run through Tuesday, August 15th, 2023, on the company's website, www.aswater.com. The slides that the company will be referring to are also available on the website. This call will be limited to one hour. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touchtone phone. Presenting today from American States Water Company are Bob Sprowls, President and Chief Executive Officer, and Eva Tang, Senior Vice President of Finance and Chief Financial Officer. 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 Private Securities Litigation Reform Act of 1995. 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, in the United States and constitute non-GAAP financial measures under SEC rules. These non-GAAP financial measures are derived from consolidated financial information, but are not presented in our financial statements that are prepared in accordance with GAAP. For more details, please refer to the press release. At this time, I will turn the call over to Bob Sprowls, President and Chief Executive Officer of American States Water Company. Thank you, Alan, and welcome, everyone, and thank you for joining us today. I'll begin with some brief comments on the quarter. Eva will then discuss some financial details, and then I'll wrap it up with updates on regulatory activity, ASUS, dividends, and then we'll take your questions. It was a productive and positive quarter for the company. I'm very pleased that in late June, the California Public Utilities Commission, or CPUC, adopted the decisions for Golden State Water Company's Water General Rate Case, or GRC, to set rates for 2022 through 2024 and the cost of capital proceeding. Both decisions can be viewed as constructive, and they enable us to continue investing in the utility infrastructure to provide safe and reliable water services for the communities we serve. The cost of capital decision adopted the authorized return on equity, capital structure, and embedded cost of debt prospectively and allows for continuation of the Water Cost of Capital Mechanism for adjusting the return on equity. As a result, Golden State Water's cost to capital reflects a 9.36% return on equity, with a 57% equity ratio and a debt cost of 5.1%, effective July 31st. Advice letters have been filed with and approved by the CPUC to implement 2023 rates based on the newly adopted General Rate Case and cost of capital decisions. We started billing customers the new 2023 rates on July 31st, and we'll seek recovery of the retroactive rates from January 1st, 2022 to July 30th, 2023, within 90 days of implementing the new rates. Let's briefly discuss our quarterly earnings. Recorded diluted earnings per share for the quarter increased $0.50 from last year. The 2023 second quarter results include a favorable variance of $0.21 per share that is made up of $0.18 per share from the reversal of revenues subject to refund that was previously recorded in 2022 through the first quarter of 2023, of which $0.03 per share had been recorded during the second quarter of last year. This reversal was as a result of receiving the final decision in the cost of capital proceeding in June that sets the cost of capital prospectively. Second quarter results also reflect a net favorable variance of $0.10 per share from gains on investments held to fund a retirement plan, compared to losses for the second quarter of last year. Excluding these two favorable impacts, consolidated earnings as adjusted for the second quarter of 2023 reflect an increase of $0.19 per share as compared to adjusted earnings for the second quarter of 2022. The higher adjusted earnings were largely due to the new 2023 water rates approved in Golden State Water's final GRC decision. In addition, higher construction activity at our contracted services business, American States Utility Services, or ASUS, also contributed to the higher earnings for the second quarter of 2023, and ASUS is on track to meet its targeted earnings contribution for the year. I'm also pleased to report that last week, our board approved another sizable dividend increase. The annualized dividend rate after this increase is $1.72 per share, which represents an 8.2% increase from the current annualized dividend rate of $1.59 per share. This significant dividend increase reflects our board's confidence in the company's ability to achieve long-term, sustainable earnings growth. This action also marks the 349th consecutive dividend payment by the company. American States Water has paid dividends every year since 1931, increasing the dividends received by shareholders each calendar year, now for 69 consecutive years. Eva will discuss the quarterly earnings and liquidity, and I'll turn the call over to her. Thank you, Bob. Hello, everyone. Let me start with our second quarter results. Consolidated earnings as recorded were $1.04 per share for the quarter, as compared to $0.54 per share for the second quarter of 2022, an increase of $0.50 per share. Included in the results of the second quarter, as Bob mentioned, is the reversal of revenue subject to refunds of $0.18 per share related to a lower cost of debt estimate that has been recorded during 2022 through the first quarter of 2023, of which $0.03 per share has been recorded in the second quarter of last year. The $0.50 per share increase also included a favorable variance of $0.10 per share from investment held to fund the retirement plan. We record the gains on these investments of $1.5 million for the quarter, as compared to losses of $3.5 million in 2022. Excluding these two items, adjusted consolidated earnings for the quarter were $0.83 per share, as compared to adjusted earnings of $0.64 per share for the second quarter of last year, an increase of $0.19 per share. For our water utility subsidiaries, Golden State Water reported earnings were $0.91 per share, as compared to $0.40 per share for the second quarter of 2022, a $0.51 per share increase. Those items just discussed affected earnings at the water segment, so factoring in the same impact from the two items, adjusted earnings for the second quarter for the water segment were $0.70 per share, which was an increase of $0.20 per share, as compared to adjusted earnings of $0.50 per share for the same period last year. Since 2023 is the second year of the rate case cycle, a second-year rate increase effective January 1, 2023, has been accounted for in this quarter as well. The $0.20 per share increase in 2023 adjusted earnings largely represent the difference from 2021 adopted rates and the 2023 second-year increases, partially offset by increases in operating and interest expenses. Our electric segment earnings were $0.03 per share for the second quarter, as compared to $0.04 per share for the same period last year. The decrease primarily relates to not having new rates in effect yet for 2023, as we await the pending Electric GRC that will set new rates for 2023 through 2026, while also experiencing continued increases in overall operating expenses and interest costs. When a decision is issued in the Electric GRC, new rates are expected to be retroactive to January this year, and cumulative adjustments will be made and recorded at that time. Earnings from our contracted service segments increased $0.02 per share for the quarter due to higher construction activity. Slide 8 shows that consolidated revenue for the second quarter increased by $34.8 million as compared to the same period in 2022. Revenues for the water segment increased by $26 million, which included the reversal of revenue subject to refund of $9.3 million as a result of the cost of capital being prospective, while lower revenues were recorded in the 2Q 2022 of $1.7 million as an estimate of revenue subject to refund at the time. The additional increases of revenue as compared to the same period in 2022 largely represent the difference from the 2021 adopted rates and the 2023 second-year increases. The increase in electric revenues was primarily attributable to advice letter filings and an expense allocation true-up as a result of the water GRC decision. An increase in general office expenses allocated to the electric segment also includes a corresponding and offsetting increase in adopted electric revenues, resulting no impact to earnings. In addition, there was an increase in revenue of $8.2 million from our contracted services due to higher construction activity. Turning to Slide 9. Looking at total operating expenses other than supply costs, consolidated expenses increased $7.2 million as compared to last year's second quarter. The increase was largely related to an increase in construction costs at our contracted services segment, resulting from higher construction activity due to timing differences when construction work was performed this year when compared to 2022. There were also higher administrative and general expenses across all business segments during the second quarter. Interest expense, net of interest income, increased by $3 million due to higher average interest rate during the quarter and increases in overall borrowing levels. Other income, net of other expenses, increased by $4 million, due primarily to gains on investments held for retirement benefit plan, partially offset by an increase in non-service cost component for Golden State Water's benefit plan, resulting from changes in actuarial assumptions on the plan assets. Slide 10 shows the adjusted EPS bridge comparing the second quarters of 2023 and 2022. This slide reflects our year-to-date earnings per share by segment, as reported and adjusted. Fully diluted earnings as reported for the six months ended June 30, 2023, were $1.97, as compared to $0.92 for the same period in 2022, an increase of $1.05 per share. Included in year-to-date 2023 results was $0.38 per share related to the impact of retroactive rates from the decision in the Water GRC for the full year of 2022, of which $0.19 per share related to the first half of 2022. In addition, as a result of the final cost of capital decision, the 2023 year-to-date results include $0.13 per share related to the reversal of the estimated impact of a lower cost of debt recorded in 2022, of which $0.06 was recorded during the 6 months ended June 30, 2022. The $1.05 per share increase also include a favorable variance of $0.16 per share from investment held to fund our retirement plan. Excluding the three items mentioned above, adjusted consolidated earnings for the six months ended June 30, 2023, were $1.40 per share, as compared to adjusted earnings of $1.08 per share for the same period last year, an increase of $0.32 per share. Turning to liquidity, net cash provided by operating activities was $17.8 million through June of this year, as compared to $56.9 million for year-to-date 2022. During the first half of last year, our regulated utility received $9.8 million in COVID-19 relief funds from the state of California to provide assistance to customers for delinquent water and electric customer bills incurred during the pandemic. There have been no relief funds received thus far in 2023. The decrease in operating cash flow was also due to a 17% decrease in billed water consumption and the delay in receiving the Water TRC final decision. Since the final decision has been received, Golden State Water filed for implementation of new 2023 rate increases that took effect on July 31, 2023, which is last Monday, and will file a file surcharges to recover retroactive amounts accumulated through the effective date of implementing the new rates in the near future. For investing activities, we remain on track to spend $140 million-$160 million this year in company-funded capital expenditure at our regulated utility. During this past quarter, we also finalized new five-year credit agreements for both American States Water and Golden State Water. The new credit facilities will bring borrowing capacities of $100 million for American States Water and $200 million for Golden State Water, for a combined borrowing capacity of $350 million. Each credit facility has the ability to expand the borrowing capacity for an additional $75 million, subject to the lender's approval. Our electric utility also amended its credit facility to increase its borrowing capacity by an additional $15 million. American States Water is likely to start issuing additional equity in the next 12 to 18 months to raise capital over time to fund its current businesses. As we mentioned before, we will consider doing an at-the-market offering that enable AWR to control the timing and the size of its sales of its common shares over time. With that, I'll turn the call to Bob. Thank you, Eva. I will discuss a few key regulatory matters. Earlier, I discussed the adoption of the final decision we received in the water general rate case. The final decision, issued on June 29, 2023, approves the settlement agreement between Golden State Water and the Public Advocates Office at the CPUC, and is consistent in all material respects with the proposed decision issued in April. The decision sets new water rates for the years 2022 through 2024. To provide you with a recap of the key points in the decision, among other things, the decision authorizes Golden State Water to invest $404.8 million in capital infrastructure over the three-year cycle, plus $9.4 million of capital projects that have been completed and filed as advice letter projects, the revenue for which was in effect February 15, 2022. It increases Golden State Water's adopted operating revenues for 2022 by $30.3 million, which includes an increase for higher adopted supply costs of $9.6 million as compared to the 2021 adopted revenues, excluding the advice letter project revenues. It adopts new operating expense levels for 2022, including higher depreciation expense, resulting from overall higher composite depreciation rates based on a new depreciation study adopted in the final decision. It allows for additional increases in adopted revenues for 2023 and 2024, subject to an earnings test and changes to the forecasted inflationary index values. We are now in the process of preparing our next Water General Rate Case for the years 2025 through 2027, to be filed in the third quarter of this year. Also during the quarter, the CPUC adopted the final decision on the cost of capital proceeding to set the new cost of capital for 2022 through 2024. The decision adopts our requested capital structure of 57% equity and 43% debt, adopts the cost of debt of 5.1%, as filed in the application, adopts a return on equity of 8.85%, and allows for the continuation of the Water Cost of Capital Mechanism. In addition, based on the company's assessment of the final decision, all adjustments to rates are to be prospective and not retroactive. As discussed on prior calls, in all of 2022 and through the 1st quarter of 2023, we recorded a reduction to water revenues to reflect the estimated revenue impact of a lower cost of debt of 5.1%, as requested in our cost of capital application, as compared to 6.6% included in 2021 rates that were billed to water customers before the cost of capital decision was issued. As a result of receiving the final cost of capital decision, which again sets rates prospectively, not retroactively, the water segment recorded an increase to water revenues, $9.3 million or $0.18 per share, to reverse its regulatory liability for revenues subject to refund that were recorded in 2022 and through the first quarter of 2023 as a change in estimate and circumstances. As previously mentioned, the decision allows for the continuation of the Water Cost of Capital Mechanism. For the period from October 1, 2021 through September 30, 2022, the Moody's Aa utility bond rate increased by 102.8 basis points from the benchmark, which increases the adopted return on equity by one-half the change, or 51 basis points, from 8.85% as adopted in the decision. As a result, effective July 31st of this year, Golden State Water has an authorized return on equity of 9.36%, a capital structure of 57% equity and 43% debt, and a return on rate base of 7.53%. Moving on to Slide 15. Our electric utility subsidiary filed its General Rate Case on August 30th of last year for new rates for the period 2023-2026. In addition to new rates, there are a number of items that are requested, such as additional capital expenditures as part of the 4-year rate cycle and a new capital structure. We have also requested the recovery of more than $22 million in capital already spent related to the Wildfire Mitigation Plan. CPUC has approved a decision for a General Rate Case Memorandum Account that will make new rates, once approved in a CPUC final decision, effective January 1st, 2023. Turning our attention to Slide 16, we present the actual growth in Golden State Water's average rate base from 2018 through 2021, and the forecasted growth from 2022 through 2024, as authorized by the CPUC. Based on the final decision in the General Rate Case, Golden State Water's average rate base is forecasted to grow from $752.2 million in 2018 to an authorized level of $1,366.9 million in 2024. That's a compound annual growth rate of 10.5% for the six-year period. Let's continue to ASUS. I'm pleased to announce that ASUS contributed earnings of $0.12 per share for the second quarter, as compared to $0.10 per share for the same period last year, an increase of $0.02 per share. The increase was largely due to an increase in construction activity in the second quarter of 2023, as compared to the same period in 2022, due to timing differences of when construction work was performed. An increase in management fee revenue resulting from the resolution of various economic price adjustments, partially offset by higher overall operating expenses and interest costs as compared to the same period of 2022. As mentioned earlier, ASUS is on target to contribute $0.45-$0.49 per share for the year. We also remain confident that we can effectively compete for new military base contract awards based on our proven track record of managing water and wastewater-related services for military bases since 2004. I'd like to turn our attention to dividends, which I already touched on earlier in the call. Last week, we announced an 8.2% increase in the third quarter dividend. This increase is 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 9.4% compound annual growth rate in our quarterly dividend payments to shareholders over the last 5 years, from 2018 through 2023. I'd like to conclude our prepared remarks by thanking you for your interest in American States Water, and I'll now turn the call over to the operator for questions. We will now begin the question-and-answer session. To ask a question, you may press Star, then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press Star then 2. At this time, we will pause momentarily to assemble our roster. Our first question comes from Angie Storozynski from Seaport. Go ahead. Thank you. There are just so many moving pieces for the second half of this year as far as your earnings. Just help me out, maybe. First, for the cost of capital, the changes in the cost of debt versus increased cost of equity, the return on rate base is still falling slightly. Is that fair? Yes. The current rate of return going forward is 7.53%. Right. Previous. Previous 7.91%. Yes. Okay. Yeah. Go ahead. That has some marginal detrimental impact on earnings for the remainder of the year. Is that fair? That's correct. Yes. all good. Okay, then- Sorry, Angie, I'm sure you're on top of all of this. You know, in 2022, we were booking to the 5.1. Yes. Yes, exactly. Okay. Now, the incremental step up in revenues for 2023. The GRC was a $0.40 pickup, and then how much on an annualized basis, you know, a net revenue increase would be this 2023 step up? Yeah. Are you comparing 23 to 2022? Yes. Well, no, no, I'm just saying, what was the- Yeah. Yeah. Yeah. What was the incremental revenue increase basically associated with this inflationary adjustment, right, that you have embedded in the GRC? What is the step change in addition to that $0.40 increase from the GRC? First of all, for 2022 is $0.38, increase that we booked. Okay. Uh, then- Okay. For 2023, I think year to date, I believe we have rate increase from 20. It's about $0.16 year-to-date increase for 6 months. That's the 2023 increase from 2022. Okay. You have to- Okay. The last year, yeah, for 6 months. Okay. Okay. I'm just thinking about anything else. The weakness and on the electric side will be trued up only with the GRC result, which we don't expect still until 2024, right? I mean, it's possible we'll get it in 2023, but unlikely, I would say. Okay. As you are getting ready to file the next GRC, and I promise it's my last question, will you embed the, the full RAM in this upcoming filing? Yes, we plan to request it. Yes. Great. That's all I have. Thank you. Thank you. Thank you. Our next question comes from Jonathan Reeder of Wells Fargo. Please go ahead. Hey, good morning, Bob and Eva. Thanks for taking my question. Good quarter. I think things were generally in line with where we were expecting them. One thing you mentioned is that the, the new GRCs has not been filed yet. I think you normally file your GRCs in July. Is the delay in this filing just related to the delayed outcome in the last GRC? You know, do you think this means another untimely decision by the CPUC when we look out to 2025? The delay is related to the delay in the, we call it the 2020 General Rate Case. Do we think it'll affect the processing of this case? We do not. Okay. No, that, that'd be great if somehow they can get back on track to get more timely decisions. In terms of ASUS, you know, obviously, you affirmed where, where you thought full year EPS would come in. Any update there around, like, the pursuit of new bases and, you know, what might be up for grabs or, or, you know, near-term bases that might get awarded? There's one privatization out there that's been out there a while, called the Pax River privatization. It's a Navy privatization, and I think all the competitors are waiting to hear who won it. Unclear when that announcement will be made, so we're very interested in that. We do think we have a, you know, we think we have a great reputation with the military. There's something called a Contractor Performance Assessment rating, where they rate you at each of the bases, and our ratings are very strong. I'm sure our competitor would say the same thing about themselves, but. We, you know, we're in there bidding, and we hope to get, push one across the finish line here. I don't know when that particular privatization will be announced. I think it perhaps is a little bit behind schedule at this point. Okay. That, that's the only kind of near-term-ish one? Right. That's the only, I would say, typical privatization that's out, out on the street, I guess, for bidding. Oh, that's the only actual open RFP in general, on the military side right now? Yeah, I don't-- You know, Jonathan, previously, I've talked a little bit about there's other ways of perhaps taking over assets. The standard process is to, you know, work through the 50-year privatization. We're, you know, we're, we're interested. We are working on additional projects, but they're not the standard privatization. Gotcha. Okay. All right. Well, congrats on a good quarter and finally getting your two big California regulatory items, you know, put to bed. Would you say in general, I mean, cost to capital outcome, you know, with the adjustments in mind to the allowed ROEs, I mean, was it, you know, where you were expecting it to shake out? You know, maybe a little, little better, you know, particularly keeping in mind that it looks like 2024 will get another upward adjustment in the ROE? Yeah, I mean, I've got a lot of scar tissue from prior, the prior cost to capital, to be honest. Seems like the Commission is, you know, they've been pretty reasonable here relative to where they were in 2018. You know, we feel good about the outcome, particularly given that the adjustment mechanism triggered and that it perhaps will trigger again. Yeah, I think we feel okay. I mean, I can give you reasons why it's should have been higher, but. We still keep our 57% equity layer. Sure I think that's a very good outcome from this. Yeah, it's kind of interesting. I mean, you, you obviously kept your, your layer, but then they also increased the layers for, you know, some of your peers and didn't take one of your other peers, down, which, you know, I guess they, they could have done. That's, that's certainly constructive, given, you know, I know at least in the past, consumer advocate position has been that, you know, those equity layers are too high and, and, and should come down. Right. I mean, I think, I mean, I can't speak for the industry, but if you've talked to the other folks, they've I don't know what they said, but they probably are generally okay with what where things landed. Is that, is that what they said? Yeah. Yeah, everyone's okay with it, so- Yeah. The fact that it's not retroactive, you know, certainly helps, so. Oh, right. I, I agree with that. Okay. Well, thanks for the time today on the call. Looking forward to seeing you guys next month. Yeah. Thank you, Jonathan. Thank you, Jonathan. As a reminder, if you have a question, please press star then one. We will pause momentarily for any further questions. This concludes our question and answer session. I would like to turn the conference back over to Bob Sprowls for any closing remarks. Yes, I just want to wrap up today by just thanking everyone for their participation today and letting know that we look forward to speaking with everyone next quarter. Thank you all, and have a good rest of your summer. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.