Everyone, thanks for joining us for Janney's Fifth Annual Virtual Water Utility Conference. We have with us this hour the management team from Middlesex Water Company. That includes Nadine Leslie, Chair, President, and CEO, and Rally Zerhouni, Senior Vice President, Treasurer, and CFO. During this chat, if you have any questions, you can submit them through the conference platform, and if time allows, at the end of our prepared questions, we will get to them and we will answer them. So with that, Nadine, Rally, good morning. Good morning, Mike. Good morning, Michael. Yeah, I think perhaps maybe we can kick things off with a question on your Middlesex Water Company 2030 vision. In your investor presentation, you discuss five strategic pillars. Maybe you can give us some insights on that. Thank you, Mike, and thank you for inviting us to join you today. During the course of last year, we set a new strategic direction for the company in partnership with our board and management team, and we launched MWC 2030, our five-year strategy plan. So I will quickly bring our strategy to life by walking through the five pillars that guide how we run the company. First, employee development. We know that execution starts with our people. By investing in leadership development, upskilling programs, and reward and recognition programs, we are able to maintain a low rate of turnover in key roles and improve efficiency. That investment in talent directly strengthens the business. Second, operational excellence. So by streamlining our processes, applying automation, delivering our CapEx, keeping a strong focus on compliance and safety, we are driving efficiency, improving reliability, and creating value to our stakeholders. The third one, let's not forget about our customers, so customer experience. For us, this means going beyond satisfaction to anticipating needs. We are making it easier for customers to work with us and are in the process of assessing AI tools to further improve the customer experience. The fourth pillar, stakeholder management. We are dedicated to meaningful engagement with all of our external stakeholders, from expanding our outreach to investors to growing our constructive regulatory relationships, amplifying our presence among industry groups, and proactive communication with our community leaders. And finally, our fifth pillar, selective and sustainable growth. We have established a disciplined approach whereby we invest in our utility infrastructure to build system resiliency and meet compliance requirements. We also pursue tuck-in opportunities where we have an advantage and where we turn our sustainability. So together, these pillars give us focus and balance. We are building a stronger company today while positioning ourselves for long-term value creation. So I hope this gives you a little bit of flavor for the excitement that we have with this MWC 2030. A great overview. Thank you. Let's turn next to a regulatory discussion, particularly on your New Jersey rate case. The New Jersey Board of Public Utilities, they're down several commissioners. Do you expect this to impact your timeline to a decision? Mike, the New Jersey Board of Public Utilities is a well-run organization, and the professional staff and commissioners have historically worked well with our company in delivering a timely decision in our rate cases in accordance with the procedural schedule. So you think it'll just run as normal despite the shorthandedness of the staff? No, I think from what we are seeing right now, Michael, with regards to the petitions that we have opened with them, whether it's on the DSIC or RESIC or the rate case itself, the process that we're going through right now, we're seeing the discovery questions, the back and forth. We don't see significant impact at this point in time. So we're seeing the staff and the commission work that we expect and we have been accustomed to, at least at this point in time, consistent with the previous practice. It's good to hear. Do you expect to implement interim rates at some point? Historically, Michael, we have not had to implement interim rates in the last few rate cases as we were able to settle the rate case before the timing for implementation of interim rates. As a reminder, interim rates can go into effect in New Jersey after nine months. For us, it would be sometime in April 1st, April 2026. We will be evaluating that as we continue to go through the process for this cycle of this rate case and as we move forward with the process with staff and Commission. All right. Thank you. You also have filings for a Distribution System Improvement Charge, a DSIC, and a Resiliency and Environmental System Improvement Charge, a RESIC. What are the expectations around those in terms of the NJ BPU being able to reach a decision in a timely manner? So as I mentioned earlier, we are seeing discovery and we're seeing the process as we've seen in the past, especially around the DSIC, which is a process that existed for many years. RESIC is a newer sort of surcharge that has been enacted a couple of years ago. We're seeing it being executed consistent with the statute that has been enacted. Again, at the same time, we are not expecting that there will be any different delays that are not consistent with the procedural schedule that is in place right now. Good to hear. Next, I think we'll turn to your Delaware rate case. Recently settled that one. When do you expect to file again? We really had a great rate case process with the Public Service Commission of Delaware, and we're really thankful to the staff and the commissioners there for that process and their due diligence. We received a constructive outcome as a result of the rate case outcome. Generally speaking, we are expecting to file a rate case within two to three years. And when we see the timing for those rate cases, it really is driven by keeping the customer in mind when it comes to customer impact. The longer we stay out, the higher the potential impact on customer rates, and that creates a lot of challenge in managing that message with the customers, as well as leveraging the DSICs that will be filed within rate cases. And we expect to file also a DSIC later on this year in Delaware. All right. I'm hearing that from other companies as well. Shorter is better. And that leads into my next question really well. Last year, lots of news coverage about significantly higher electric costs. And the recent PJM auction means it's going to happen again next year for customers also. With customers seeing large increases in electricity bills, are you seeing any pushback from customers or regulators on rate increases? Michael, affordability is top of mind, not only for us, but for ratepayers across the country. So that starts with our operational excellence and efficiency in all we do. We target prudent utility investments to minimize the financial impact on our customers. In fact, our customer bills represent less than 1% of their household income. Specifically, with regard to power costs with PJM, we have the advantage of having fixed cost contracts in place through early 2027. That's good. From what we can see in the generation stack, it looks like there's really not going to be any relief, perhaps out to 2031. So the more you can lock in fixed costs out to that, at least to that date, is probably better. And then just one more on PJM. All your operations are currently there. So as a company, you're seeing some cost increases, I would assume, even in your fixed contracts. I'm guessing those get renewed at higher levels here now versus what you saw in the past. We discussed this topic last year. There's been new data center announcements, and they're large energy users. And DOE just ordered PJM and Constellation to keep some old natural gas and oil-fired power generation capacity in Pennsylvania online for another 90 days, citing an emergency in the region. That pricing pressure really looks set to continue given the increasing demand and now the tight supply. At some point, does that require a regulatory rider given the forward outlook for pricing? Michael, as just mentioned, we have a contract with fixed costs through early 2027. So we believe that we are well-positioned to manage changes in the energy market. But regardless of market conditions, our management team is always looking for opportunities to save on energy costs and invest in energy efficiency utility assets. So that's an ongoing process for us. Okay. And is there a point, and listen, I'm not familiar with all of the land holdings of your company, but is there a point where self-generation, maybe solar, becomes attractive? So we're looking for these opportunities based on our footprint. Solar is obviously something that is being contemplated when feasible. But as I said, this is our approach, and it's really looking for opportunity to minimize the impact on energy costs and optimize our usage. I know I cover New Jersey Resources, which is right in your neighborhood. And they're pretty aggressive at putting solar wherever they can put it. And I know New Jersey's pretty supportive of solar in terms of the generation stack. Okay. Next, I guess we'll turn to weather. The impacts were negative in the second quarter this year. That trend continued into the third quarter. Then it turned dry recently in the last couple of weeks. How's consumption and volume tracking versus last year? Michael, as we previously stated in our second quarter financial results, customer consumption was lower due to the unfavorable weather in comparison to more favorable weather in the prior year. To your point about dry weather, historically, as we see more dry weather, it generally has a positive impact on volume and consumption. Okay. I just didn't have a reason for the question. It seemed like a cooler mid- to late August and early September than what we had last year. But it really just seemed to be exceptionally dry everywhere here in the Mid-Atlantic. So good to hear that it sounds like consumption was okay in that timeframe. Next, I'd like to turn to your service territories. Central New Jersey, Delaware, unemployment's low. Job creation seems to have stalled in the last couple of months. Just wondering what you're seeing in terms of the overall local economies for your service territories and the financial health of the customers in each area. Yes, Michael, the good news is we continue to see organic growth in our Delaware service territory. There is more data for reference in our presentation on slide 8. But at this point, we are not seeing a significant impact on the financial health of our customers as it relates to payments and collections. Okay. That's good, and that's both states, New Jersey and Delaware? Correct. I do have one kind of follow-up here. I know, and it kind of goes back to my last question. I know that the electric provider in Delaware came under some heat this summer over some of the electric bills that we're seeing down in Delaware. So just wondering, do you think that could have an impact on financial health given where I mean, we saw that coming across both the commercial customers and the residential customers. A lot of complaints to the Public Service Commission of Delaware about rates. Do you think that has any impact here over the next six to 12 months? We're not seeing that yet, Michael, so based on our customer payments and based on our data that we see right now, we don't see a significant impact with that. Now, with that being said, it is pretty clear that there was a lot of discussion when it comes to the impact of electric rates both in both states, and quite frankly, across the nation, rate increases, especially when you take a look at it from a broader perspective, how others may be feeling, even inflation may or may not have subsided enough. Okay. Well, you just gave me the segue into the next question. So I appreciate that. I'm helping you here, Michael. The inflationary impacts, that was a big topic when we chatted last year, and the official government numbers say it's decreased. Is that true, but does that translate and is that true for your cost structure, and are there any areas where it's still a problem? Yeah. When we think about it in the context of the utility and the investment that we are making, it's making sure our procurement processes are operating effectively, making sure that we are making investments that are prudently and also seeking the recovery of those investments on a timely manner. And as we discussed earlier, when it comes to Delaware, we have just recently completed the rate case. So we believe that our costs and the recovery of those costs is in a good place. And we are right now in the process of going through the New Jersey rate case. So that's why we think about it from our cost structure. There are other impacts of inflation that customers may be experiencing that are impacting their pocketbook from a different standpoint. Okay, and I think we move on. Our next topic would be M&A opportunities. There's been some activity recently in the sector. Just wondering if you're actively looking to expand also the contract services business. Yeah, definitely. So when we think about our fifth pillar that Nadine mentioned earlier around selective and sustainable growth, we are really excited about the work that our business development team is doing. We are really focused on the tuck-in acquisitions for water and wastewater systems within our geographic footprint. That's an area that we believe we will be able to sustain the growth and continue to contribute to rate base in the long term. We are also looking at opportunities, what we call under our selective and sustainable growth pillar, the operate-to-own. There are many system owners with their municipality or not that may not be ready today to be able to sell their system, but they are looking for the expertise that we can bring forward and we can be partnered with them to provide them with that service. That allows us to be present there and to be first when the opportunity comes in to acquire them. That's what happened for us also with Ocean View. That's the example that we delivered earlier in the first half of the year where we were the operator and then became the owner. Just specifically on the growth of the O&M contract, just for O&M contract, that's not primarily the objective of our engagement to do contract operations for different water utility system owners. When you look across your two, you mentioned within your geographic footprint for the M&A opportunities. So you're basically just looking in New Jersey and Delaware, but are you looking at some of the adjoining states, maybe Maryland or Pennsylvania? That is part of the geographic footprint. All of those states that are within our region, we want to make sure that we truly mean it when we say it's selective and sustainable. Before we expand further, we would like to make sure that we're going methodically and thoughtfully through it to allow the geographic footprint not to become a disadvantage, but actually use it as an advantage as we expand in the East Coast and neighboring states. Okay. Given the number of operators that you have in New Jersey, it's just a follow-up. Is there a lot to do still in New Jersey on the M&A front? I believe that there are a lot of opportunities that are there. It takes time for them, especially when we look at our footprint and where we're actually serving a lot of our wholesale customers within our region in Central Jersey. But there are different sized opportunities across the state and also within Delaware and within the southern part of Maryland where there are opportunities for us to continue that selective and sustainable growth that is actually fit for purpose for us and for our growth. All right, and next, we'll roll over to your CapEx profile. That dramatically increased for the next three years. Do you see the potential for investment to increase year over year past 2027? Michael, I'll take this one. So as you know, Middlesex Water Company has been around for over 128 years. And prudent capital investment is necessary. It is necessary to continue delivering safe, reliable water service to our customers and the communities we serve in accordance to the regulations, state and federal. But beyond 2027, what do we expect? We expect that our investment will continue to be elevated, especially when we compare it to historical levels, because we will need to continue to comply with resiliency and environmental regulations. We have a new LCR law that will apply, will be in application next year that we know will generate some additional investment. We also recognize we have emerging pollutants. I mean, I'm sure that you watch the news and you see them coming and the reliability of water systems and distribution systems, because we know that we have an aging infrastructure and we need to continue to replace our network. So the expectation is that we will be at an elevated level compared to historical performance. You mentioned emerging contaminants. Certainly, that's a focus of the industry currently. Are you seeing any changes with the new administration at the federal level? Or when you look forward and you make your CapEx plans, does it seem like a steady-state situation in terms of federal regulation? Yes. When we look at historically, Michael, the states have very often more stringent compliance requirements. So if you look at it a few years ago, I think it was 2018, both states, New York and New Jersey, have a new regulation on the PFAS. The EPA came three years later with rules that even lowered further. So what we anticipate is the requirements that will come from the state will continue to be imposed, and the federal requirements, we will also comply with. So we don't have any indication at this stage of any changes. The EPA is contemplating an additional two years for PFAS, but this has not been fully in place. For us, our focus is ensuring that we are providing safe and reliable water service to our customers. When a pollutant becomes evident and there are limits that are being contemplated, we are proactive and want to ensure that we have the opportunity to invest and have safe and clean water provided to our customers. The other thing I may add, Michael, when it comes to also a critical stakeholder in all of this, which is our customer. The customer education that happened as a result of PFAS and PFOA. There is a lot more engagement from the customer standpoint and understanding what's in the water and awareness. That also is a really critical factor that's going to play out for years to come as regulations are being enacted, as different things are being identified that need to be addressed. Another follow-up. Nadine mentioned PFAS. Are you seeing systems that you're talking to, perhaps on the M&A front, that are worried about those costs? And is that driving conversations yet? I know the industry seems to be expecting that, but I haven't heard anybody really say that they're seeing it yet. I think when we look at the opportunities that we are engaging with as part of our due diligence and discussion that we're having is the water quality and the source supply. And potentially, if there is presence of PFAS limits that are above the current EPA threshold and the state thresholds, which now the EPA is lower than any of the states that we are targeting, that is definitely an item that we are discussing. And that's part of the investment that needs to be made there. Now, are we seeing municipalities that may have this challenge and coming out at the pace that potentially or perhaps may have been thought it is not at that significant levels where all of them are reaching out and would like to basically have someone else with expertise and capital to come in and do that? But certainly, the ones that we are speaking with and the targets that we are talking to, the PFAS in the water supply is a component of that target, potentially selling their system and having an operator to come in and acquire it and make the necessary investment to serve those customers and those communities. All right. Then our next topic. Do you anticipate any financing needs for the next 12 months? We have, Michael, a very strong financial plan in place. There is a combination of our debt and equity financing supported also by the existing lines of credit that we have in place. And we have extended those as well as we previously disclosed. Our goal is to continue to maintain our authorized capital structure, which requires us to continue to issue equity as well as debt. As you may recall, earlier this year, we also launched an at-the-market (ATM) program for about $110 million, which will help us in supporting the continued growth in our capital program and investing in the utility infrastructure to meet all the requirements that we talked about earlier. Okay, and then this is probably my last question. Wondering if I missed anything, any topics that I should have asked about. And also, what are investors asking you about the most? Quite frankly, Michael, all the items we discussed earlier this morning, that's what all the investors are talking about, whether it's rate cases, whether it's CapEx, affordability. Those are all the topics that are top of mind of the investors and most utility executives in this industry. Right now, for us, what we're focused on is really on our pillars, our operational excellence, our taking care of our customers, investing in the infrastructure. If we do all of those things well and we continue to execute on them, we'll be creating value to all of our stakeholders that are engaged with us. Those are the things that we control at this point in time. We're really excited about the journey here and really looking forward to what's to come. All right. I think that's a great place to close out this chat. I thank you both for participating this morning, being our first at this early hour, and we look forward to doing this again next year. Thank you very much. Thank you. All right. Have a great day. You too. Bye-bye. Take care. Bye-bye. Bye-bye.