Welcome to the SJW Group Q2 2023 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andrew Walters, Chief Financial Officer. Please go ahead. Thank you, operator. Welcome to the Q2 2023 financial results conference call for SJW Group. I will be presenting today with Eric Thornburg, Chair of the Board, President, and Chief Executive Officer. For those who would like to follow along, slides accompanying our remarks are available on our website at sjwgroup.com. Before we begin today, I would like to remind you that this presentation and related materials posted on our website may contain forward-looking statements. These statements are based on estimates and assumptions made by the company in light of its experience, historical trends, current conditions, and expected future results, as well as other factors that the company believes are appropriate under the circumstances. Many factors could cause the company's actual results and performance to differ materially from those expressed or implied by the forward-looking statements. From a description of some of the factors that could cause actual results to be different from statements in the presentation, we refer you to the financial results press release and to our most recent forms, 10-K, 10-Q, and 8-K, filed with the Securities and Exchange Commission, copies of which may be obtained on our website. All forward-looking statements are made as of today. SJW Group disclaims any duty to update or revise such statements. You will have an opportunity to ask questions at the end of the presentation. As a reminder, this webcast is being recorded, and an archive of the webcast will be available until October 23rd, 2023. You can access the press release and the webcast at our corporate website. I will now turn the call over to Eric Thornburg. Eric? Welcome, everyone, and thank you for joining us. I'm Eric Thornburg. It is my honor to serve as Chair, President, and CEO of SJW Group. 2023 continues to be a successful year for our company, with a strong Q2 performance that has advanced key elements of our growth strategy. We achieved constructive regulatory outcomes on our California cost of capital proceeding that allows for an increased return on equity and balances the needs of customers and capital providers. A Connecticut WICA, effective on April 1st. Approval in Texas of our KT Water Resources acquisition. Future earnings growth will be driven by the California water cost of capital mechanism, system improvement charge in Texas, and general rate cases and infrastructure investment surcharges in Connecticut and Maine. We also invested $115.7 million in water and wastewater utility infrastructure through the Q2, which is 45% of our $255 million 2023 CapEx plan, and continued to progress towards our 2030 goal of 50% reduction in Scope One and Scope Two emissions through the electrification of our vehicle fleet and expanded use of biofuels. In California, 8% of our fleet is electrified and 24% now runs on biofuel. We also delivered earnings per diluted share of $0.58, which is in line with our guidance. Andrew will review our financial results and regulatory updates in our state operations. Andrew? Thank you, Eric. This morning, prior to the market opening, we released our Q2 2023 operating results. As we noted in the Q1, quarter-over-quarter comparisons between 2023 and 2022 operating results are affected by and reflect the delay in San Jose Water Company's 2022 to 2024 general rate case proceeding. As a reminder, while the California Public Utilities Commission approved the settlement agreement and San Jose Water recorded the authorized revenue increase from the general rate case in the Q4 of 2022, the revenue increase was retroactive back to January 1st, 2022. This delay in recognizing the revenues authorized in the general rate case affects quarter-over-quarter comparisons through 2023. Operating results for the Q2 were affected by the end of the declared drought emergency and mandatory conservation, as well as unusually cool and wet season in California. We have experienced reduced water usage in Maine and Texas, principally due to weather. In Texas, most of our service area is in stage three drought condition and a small portion is in stage four. The U.S. Drought Monitor has classified our service area as extreme to exceptional drought. In California, as of April 11, San Jose Water is no longer afforded the regulatory revenue protection mechanisms that were in place during the declared drought emergency. Results for the quarter do not include any benefit from these mechanisms beyond April 11. I will discuss this in water usage in greater detail shortly.... In the Q2, we reported revenue of $156.9 million and net income of $18.3 million, or diluted earnings per share of $0.58. This compares to 2022 quarterly revenue of $149 million, reflecting a 5% increase, and net income of $11.6 million, reflecting a 58% increase, or diluted earnings per share of $0.38, reflecting a 53% increase. As you can see, the quarter-over-quarter increase in diluted earnings per share for Q2 2023 was primarily driven by rate filings of $0.41 per share, which I will break down for you shortly. $0.08 related to partial release and income tax reserves, and $0.04 related to regulatory mechanisms. Partially offsetting the quarter-over-quarter increase was an $0.18 decrease due to water supply costs, and a $0.13 decrease related to lower water usage, as well as $0.06 in higher interest expense. Now, a breakdown of the increase in revenue compared to the Q2 of 2022. The revenue increase was mostly driven by $14.7 million in cumulative rate filings. The total includes California's Q2 2023 revenue increase and the 2022 portion of the general rate case that was approved in Q4 2022. The benefit of the 5 general rate case approvals in Maine that were authorized after Q1 2022, and a water infrastructure and conservation adjustment increase in Connecticut that was effective in Q2 of 2022. The revenue increase was partially offset by $9 million decrease due to lower usage. Since drought conditions in California have vastly improved, the drought declaration and mandatory water conservation that were in place in the Q1 of 2023 ended April 11th. We are still waiting to see how usage will be affected longer term by these changes. As noted earlier, we are seeing weather effects on usage in Maine and Texas as well. There was a slight increase in water production expense when compared to the Q2 of 2022. The increase was largely driven by a $6.6 million increase in average per unit cost for water supply of purchased water and groundwater extraction charges. Partially offsetting the increase expenses was $4.3 million decrease in production costs related to lower customer usage. The 1% increase in total other operating expenses compared to the prior year, was primarily driven by depreciation and amortization, and taxes other than income taxes. The increase was partially offset by reduced expenses due to lower maintenance expenses and other factors. Year-to-date, we reported revenue of $294.2 million and net income of $29.8 million, or diluted earnings per share of $0.95. This compares to 2022 year-to-date revenue of $273.3 million, reflecting an 8% increase, and net income of $15.3 million, reflecting a 95% increase, or a diluted earnings per share of $0.50, reflecting a 90% increase. As you can see, the year-to-date increase in diluted earnings per share for 2023 was primarily driven by rate filings of $0.90 per share in California and Maine that were approved after the Q2 of 2022, including delay of SJW's 2022 general rate case. $0.08 from a partial release of income tax reserves related to the repair tax, and $0.07 attributed to regulatory mechanisms and one-time true ups of $0.07 that occurred in 2022. Partially offsetting the increase was a $0.40 increase in water supply costs, a non-recurring $0.15 gain on sale of non-utility property in year-to-date 2022, and a decrease due to lower water usage of $0.12. Turning to our financing activity. $65 million has been raised in the first six months through our at the market program. $50 million is for general corporate purposes, and the additional amount was raised for acquisitions expected to close in the Q3. At the end of the quarter, we had $267 million available and $83 million drawn on our bank lines of credit for short-term financing of utility plant additions and operating activities. The average borrowing rate for the line of credit advances during the first six months was approximately 5.96%. The average borrowing rate in the same period of 2022 was approximately 1.44%. The effective consolidated income tax rate for the first six months ended June 30th, 2023 and 2022, were approximately -1% and 18% respectively. The lower effective tax rate was primarily due to a partial release of uncertain tax position reserve. The CPUC issued a final decision in the cost of capital proceeding for San Jose Water and the state other Class A water utilities for the years 2022-2024. The constructive and prospective decision maintains the previously authorized water cost of capital mechanism, or WCCM. Established a capital structure of 54.55% equity, which is an increase of 1.27% and 45.45% debt. The overall rate of return is 7.28%, based on a 8.8% return on equity. The WCCM is triggered when the average Moody's Aa Utility Bond Index rate varies by more than 100 basis points between October 1st and September 30th when compared to the same period in the prior year for the years two and three in the three-year rate case cycle. For the period ended September 30th, 2022, the index rate increased by 103 basis points, surpassing the required WCCM trigger, which then allows for a 50% of the change or 51 basis points to be added to the ROE. San Jose Water filed Advice Letter 598 to trigger the 2023 WCCM on June 30, 2023. On July 31, 2023, the company expects to file a separate advice letter to implement new rates that reflect the WCCM-adjusted return on equity of 9.31%, a cost of debt of 5.26%, and an overall rate of return of 7.47%. In accordance with the final decision, the new rates will be effective as of July 31 filing. As mentioned earlier, the declared drought emergency and mandatory conservation in California ended on April 11. As a result, San Jose Water no longer afforded the revenue protections of the Water Conservation Memorandum Account, or WCMA, and the Water Conservation Expense Memorandum Account, or the WCEMA, that were in place to offset the effects of lower water usage due to mandatory conservation. The temporary 20 basis point reduction that was in place while the WCMA and the WCEMA were in effect, has since been restored. However, our water wholesaler, Valley Water, declared a 15% voluntary water use reduction goal when the drought emergency was lifted, in an effort to make water conservation a way of life, as climate change indicates the likelihood of future droughts. On April 20th, based on this voluntary water use reduction goal, we filed with the CPUC, requesting continuation of the WCMA and WCEMA. The CPUC has not issued a decision on our filing. In the meantime, there has been reduced water usage in California. It is unclear how quickly and fully water usage will recover, and with the end of the mandatory conservation period. As I mentioned earlier, uncharacteristically cool and wet weather has contributed to lower usage in the Q2. We expect weather and usage will continue to be a factor in California for the rest of 2023. For the remaining months, we are well prepared for typically hotter and peak usage months in San Jose area as usage recovers following the drought. Our California water supply is the best it has been in years because of plentiful precipitation during the rainy season that continued into the spring and early summer. The increased production from our owned surface water supplies benefits customers because it costs less to produce than purchasing higher priced water from our water wholesaler. In Connecticut, we filed an application with the Connecticut Public Utilities Regulatory Authority for a 1.19% increase in the water infrastructure and conservation adjustment. This application covers $11.5 million in completed projects and would generate $1.3 million in annualized revenues if approved as filed. A decision is expected, and any authorized WICCA increase would be effective in Q4. Connecticut Water is also planning to file a general rate case in the Q4 of 2023. In Maine, we filed for a temporary annualized rate increase of $1.5 million in the Biddeford Saco division, and if approved, as requested, it would be retroactive to July 1st. The filing was related to the general rate case application filed last March that requested a $2.9 million increase in annualized revenues to recover the operating expenses and increased borrowing costs of the Saco River Drinking Water Resource Center that went in service last summer. The amount of the temporary request is related to the uncontested portion of the total request between the Maine Water and Office of Public Advocate. The Maine Public Utilities Commission will determine whether a temporary rate increase is granted. A final decision on the $2.9 million requested increase is expected in the Q4 r of 2023. Maine Water has also filed an application with the MPUC to recover $1.7 million in completed infrastructure investments in the Camden Rockland Division through the Water Infrastructure Surcharge, or WISC. If approved as requested, it would generate $158,000 in annualized revenues. A decision is expected in the Q3 of 2023. General rate cases are also planned in 2 other divisions later this year. On April 24th, the Public Utility Commission of Texas approved our acquisition of KT Water Development, a 570 connection residential water system. The closing is expected in the Q3 of 2023. The PUCT's final order that transfers the certificate of convenience and necessity to Texas Water is expected in the Q4, and we expect approval at that time on our request for fair market value and applied rate doctrine treatment. The PUCT approved the application for the transfer of 520 acres of water service area and 314 acres of sewer service area from San Antonio Water System to Texas Water. No customers were transferred as part of the transaction. Texas Water also filed an application in April with the PUCT to acquire the Elm Ridge Water System that serves 21 residential customers in Comal County. Texas Water has asked for the filed rate doctrine treatment, which allows the acquiring utility's current rates to be applied to the time of the acquisition. We continue to advance our application for a system improvement charge, or SIC, in Texas. The SIC would allow Texas Water to add certain utility plan additions made since 2020 to its rate base, thereby increasing revenue and avoiding the immediate need for a general rate case. The SIC is projected to increase Texas Water's revenue by $1.6 million within one year of the PUCT's approval. Decision is expected by the end of Q1, 2024. As mentioned earlier, our service area has systems in Stage three and Stage four drought conditions. We are targeting a 20% reduction in water use in the Stage three area and a 25% reduction in the Stage four area. Texas Water has quadrupled its service connections since 2007, and we intend to continue this momentum through prudent acquisitions, organic growth, and securing water resources to support that growth. Texas Water currently serves more than 26,000 water connections and 900 wastewater connections in the rapidly growing area between Austin and San Antonio, and it serves 3 of the 5 fastest-growing counties in the U.S., according to the Census Bureau. We are reaffirming our 2023 guidance of $2.40-$2.50 per diluted share and our five-year capital investment outlook of $1.6 billion, which includes estimated PFAS treatment based on the EPA's proposed maximum contaminant levels. Through June, we issued $65 million in equity through our at-the-market mechanism. As stated in our guidance, we plan to issue $40 million-$50 million in 2023, excluding acquisitions. The additional $15 million raised is to fund acquisitions that are expected to close in the coming months. Factors impacting the 2023 guidance include no significant rate case decisions expected in 2023, continued inflation affecting interest costs, labor costs, and other expenses, usage recovery associated with the end of the mandatory conservation and the end of the temporary decoupling mechanisms in California, as well as changes in the effective tax rate. We also reaffirm our long-term growth rate of 5%-7%, anchored off of our 2022 diluted earnings per share of $2.43. We anticipate EPS will be nonlinear because of rate case cycles. With that, I will turn the call back over to Eric. Eric? Thank you, Andrew. SJW Group strongly supports the proposed U.S. EPA standard for PFAS in drinking water. We're pleased to share that SJW Group Utilities were among the members of the class action lawsuits against some PFAS manufacturers that were recently settled for approximately $11.5 billion. It was and remains important to us to hold the manufacturers of PFAS and polluters in general responsible for the costs to address this contamination. It's too early to know when and how the settlement will be dispersed, but we will keep you updated on this progress. In addition to the lawsuit against PFAS manufacturers, we continue to advocate that all water and wastewater utilities have access to available state and federal funding sources for PFAS treatment. The current estimated capital expenditures for addressing PFAS at our local utilities is approximately $230 million and is split between California and Connecticut. The estimate is based on testing to date and an assumption that the EPA's proposed maximum contaminant level is adopted as proposed. We endeavor daily to be stewards of the environment and leaders in sustainability. So far this year in 2023, we're moving forward with new initiatives to reduce our use of fossil fuels and greenhouse gas emissions. We expect more than 25 battery electric vehicles will be added to our fleet to replace internal combustion engines. The vehicles will be charged at new EV charging stations at our facilities, including some that are solar-powered. Further, in California, we're preparing for a Megapack energy storage battery to replace a diesel fuel generator by 2025. We're also fueling some of our generators with biodiesel this year, a measure that we estimate will reduce the use of 23,000 gallons of standard diesel fuel. These are among the many projects planned to help the company meet its goal to reduce greenhouse gas emissions by 50% in 2023 compared to 2019. Our efforts for our community and towards corporate social responsibility have resulted in a prime status ESG corporate rating from Institutional Shareholder Services, or ISS. Further, our environmental, social, and governance scores are among the best of our long-term U.S. water utility peers. We will continue to work towards achieving rankings that reflect our long-term commitment to our environment, customers, employees, and communities. As I shared before, our people are what makes the difference at SJW Group. Our people allow us to provide an essential service with integrity, reliability, and peace of mind for our customers. As an example, in September 2022, Connecticut Water acquired a small 118 customer water system in Old Lyme that had been out of compliance with drinking water regulations since 2016. In less than nine months, our people had that infrastructure in place and made the operational changes needed to bring the system back into full compliance. Customers again have confidence in their drinking water, regulators know that we're the problem solver, and shareholders will earn a return on that investment. That's our brand promise. I continue to be inspired by the contributions of our talented teams across our national footprint, serving customers, communities, the environment, and shareholders. I have confidence our team will continue to excel and reinforce SJW Group's strong positioning for a successful future. With that, I'll turn the call back over to the operator. Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. One moment while we compile the Q&A roster. Our first question comes from the line of Richard Sunderland with J.P. Morgan. Your line is open. Hi, good morning. Can you hear me? Yeah, we can, Richard. Thanks for calling in. Great. Thank you for the time today. Starting with guidance, can you walk through 1H results relative to plan? I'm particularly curious on the tax benefit and the sales impacts. I, I guess also curious how the CPUC cost of capital outcome positions you for 2H against guidance as well. Excellent. Excellent questions, Rich. I'll talk a couple of the items. First of all, from the tax aspects, we did expect the release of the reserve that was included in this quarter. That was largely budgeted. It came out a little bit better than we expected, but was largely in line with what we expected. As it relates to the cost of capital, the cost of capital actually came in better than we had originally planned for the year. However, our usage has come in below what we expected for the year, so there's been a balance between those two areas. We've been effective at putting in measures in place to kind of balance out any of the risks so far associated with a lower usage, and as long as things are... continue the way we expect, we should be within our range of guidance, and that's why we've reaffirmed it. Understood. Very, very helpful there. I wanted to turn to the WCMA request. Any sense on timing of an outcome there? Have you asked for that retroactive treatment, if, if approved, I guess, retroactive to April 11? How much of, how much of that 2Q drag is California? I guess, just thinking how much that mechanism would cover if approved. Right. What, what I would encourage you to do is look at the usage numbers. The usage numbers are where that Q2 drag shows up in our, in our numbers. In particular, if you look at the EPS numbers, that's where it nets the difference between the revenue impacts as well as the production cost impacts associated with the lower usage. If the WCMA is, is reenacted, it should be back to the date that the April 11th, as, as we've highlighted. That being said, you know, we'll, we'll await the commission's approval. There's clearly issues related to usage in our California utility. That's the main driver, but it's not the only driver. Both Texas and Maine have also have lower usage this year for different reasons. Texas was lower earlier just due to rain that was enough to water but not enough to recharge our facilities there, so it did drive down usage. What they have is usage reductions due to conservation. We've got two areas that are reduced conservation, and Maine has just suffered from lower usage due to overall weather as well as some other factors. Understood. Very helpful. Maybe just one last one. The PFAS CapEx for Connecticut and California, any thoughts on how you would seek recovery there? Is that, is that through rate cases or potentially separate mechanisms? As of today, it's going to be through rate cases, but where there is an opportunity to use separate mechanisms, we'll avail ourselves of that. Great. I'll leave it there. Thanks for the time today. Thank you so much, Rich. One moment for our next question. Our next question comes from the line of Gregg Orrill with UBS. Your line is open. Yeah, thank you. The 20 basis point ROE reduction related to the WCMA and WCEMA, how does that factor into the forecast? Sure. It's, it's not so much how does it factor into the forecast, but it factors into what the impact is on our, on our revenues and earnings. Anytime that we're utilizing the WCMA, that 20 basis point reduction goes into the calculation of how much we could recover associated with the WCMA. I'll just give some, some numbers just for gross consumption. If we have $5 million reduction in revenues relative to authorized, and then let's say that we had a $3 million reduction associated with the production cost. That would mean that we would have a $2 million shortfall in this particular case. Let's just furthermore say that we had $1 million associated with the ROE adjustment. That means we would only be able to recover the $1 million as opposed to the full $2 million shortfall. In the case that I just highlighted, the ROE component will go away, but we are not getting any coverage for that $2 million shortfall that we have to start with. The net impact year-over-year would be the $1 million change as opposed to the full $2 million change. Okay. Makes sense? I think I got it. Yep. Gregg, feel free if you want to, if you have any more follow-up, to reach out. We can be very happy to talk through that with you, but it's... Okay. I tried to use just broad numbers to make it easy to, easy to understand, or at least easier. Okay. Appreciate it. Thank you, Greg. Thank you, Greg. One moment for our next question. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. Our next question comes from the line of Jonathan Reeder with Wells Fargo Securities. Your line is open. Hey, how's it going, Eric and Andrew? Hey. Hi, Jonathan. Thanks for calling in. Yeah, thanks for having me. Andrew, just to follow up real quickly on your, on your last comment, is that ROE reduction, the 20 basis points or the, the lack thereof, is that included in that lower usage net category, or is it just purely the usage? That, that usage is just purely the usage. When we look at the, look at that, that would be in the other regulatory mechanisms, I believe, is where we, where we would have put that. Okay. Okay, how much is usage below what is contemplated in, you know, the 2022-2024 GRC? You know, how has that trend been in the more recent months of May and June, you know, once the restrictions were lifted? Like, in other words, you know, have you seen a ramp up in the usage more closer to the GRC levels or, or not necessarily yet? I don't want you speculating on July when it's been super hot and, you know, weather's been working in, in the other way. I'm trying to get to more of, like, a weather-normalized feel. Look, I think, I think the answer is that from kind of a range over the, over the months, it would be kind of in that 10%-12% range of what it's been relative to, to the previous year. The thing to keep in mind is there was a very cool June, April, and May with rain. I, I couldn't believe it. I was looking outside my office window, and it was raining on June sixth, which I don't think in my nine years of employment with SJW Group, have I ever seen rain out of my window in June. That kind of gives you a sense of, of what it's been like. It has continued to remain cool generally in the Bay Area in San Jose. San Jose has not been outperforming the previous weather patterns from a, from a, a heat perspective. I would say that that weather pattern has not necessarily been as beneficial to us as maybe some of the other areas. Texas, on the other hand, has had huge heat, but now we've got conservation that's going to hold that back. Okay. When we're hearing about these scorching temperatures in California and stuff, that's not necessarily true in the Bay Area where your service territory is? Yeah. Okay. Generally speaking, no. You know, Eric's there almost every day, and I ask him often, and he's like: "No, it's not, not that hot yet. Well, lucky for Eric, he's kind of tired of the heat already. Anyway, does the $65 million of equity, you know, raised, does that complete your total 2023 issuances then? Or do you know, will you need to do a little more under the ATM in the second half of 2023? Yeah, we'll need to do a little bit more in the ATM, you know, for the second half. It's enough to cover the acquisitions that we have in the hopper. Okay. Any guidance in terms of what the total value of those acquisitions are that are expected to close this year? Well, I did give some guidance on how much more equity that we expected to do, and it, if I remember right, it was $15 million. $15 million above the $65 already? Yes. Okay. Okay, that helps. Then, is that, is that incremental to the $255 million CapEx budget, then, the, the, the deal closure values? The, the deal closure value is not associated with our CapEx. We, we do that separately from our, from our, transactions. That's the, that's the difference, is that those, those transactions are funded for and are not included in CapEx. CapEx really relates- Okay ... to utility plants that we're trying to put in place or other non-reg CapEx that we might have, which is minimal in our particular case. Gotcha. Okay. Lastly, can you give an update on, I guess, where Aquarion's appeal of their Connecticut rate case, you know, where that stands, the timing of potential, I think, decision on their appeal and, you know, how that potentially impacts your plan filing in the state later this year? Sure. I think, you know, from, from our perspective, obviously, Aquarion is going through the courts in order to change or, you know, have them hear out what happened with theirs. What it does for us, though, is it's more goes back to the fundamentals of where PURA had comments on their case. We have spent more time on preparing our testimony associated with our capital programs to make it more fulsome than it has been in the past than the prior standard. We're aiming and working hard to achieve what PURA is looking for there. We also have implemented and increased our focus on our testimony to make sure that we have our testimony in order to make it easy to understand. Then finally, we changed our timing to be, this latter part of the year, with a focus on filing, a notice in September and filing a case in the, in the Q4. Okay. Okay. All right. Then I guess one last question. Go ahead. Go ahead. I think the key, John, I'm sorry to interrupt, but the key for us is, we've done our best to learn from what has happened before in order to prepare better for the 2023 filing that we will be doing. Right. Right. Okay. Then I, I was just gonna try to sneak one more in, if you didn't mind. Just. No, fine. You just discussed, I guess, the increase in the water production expense, you know, this quarter and year to date. I guess I was just a little surprised to see the water supply costs exceed, you know, the benefits from lower usage and, you know, the more favorable mix. Can you kind of just talk about, is, is that just purely related to the 15% increase from, from the wholesaler, or is there something else in there? It really is the, the increase with the wholesaler is the major driver that, that is in place, and, and I think that's going to be the biggest factor. The other thing, just to keep in mind from our Full Cost Balancing Account, any benefits that we would have received by the mix is no longer something that we receive. It actually goes to our customers. That's the other aspect that you, that you'll have to note in the overall when you're looking at the kind of combined, production cost and as you model that production cost, the mix no longer has a major impact on the company. Right. Right. Okay, the, the 15% increase from the wholesaler is the big driver there on that? It's not just, it's not just one wholesaler, there's increases in, in Texas, there's also an increase there as well, the biggest one is the Valley Water increase. Okay. in California. Gotcha. Okay, thanks so much for taking my questions today. Appreciate it. You're very welcome. Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. I'm showing no further questions at this time. I'd like to turn the call back to Eric Thornburg for closing remarks. Thank you, operator. SJW Group is a leading pure-play water utility with a strong platform for growth, an elite dividend track record, and a recognized leader in ESG performance. We thank you for your interest in our company and support of us and our people. Look forward to talking to you next quarter. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.