California Water Service Group (NYSE:CWT) Q4 2023 Earnings Call Transcript

Page 3 of 3

Marty Kropelnicki: Yes. Jonathan, I can say, look, the company has done a really good job at building a long-term capital plan that allows us to try to balance affordability with the needs of the infrastructure as well as kind of building out more resiliency and reliability and dealing with climate change. So I don’t see that slowing down. This is probably a hiccup we’re going through right now with the commission because the rate case is just so late. But what we need to do needs to continue, and that’s why I think West Maui, I wanted to point that out. That was all work that we worked with the Hawaii Commission on and harden those systems. And I don’t think it should surprise anyone that at the end of the day, when the fires were out, we were the only water company pumping water on the whole West side of Maui.

That was by design that was by good planning. That was by good employee training. That was by putting in backup generation that was by doing the wildfire. And the wildfire farming process would go through an inspections to make sure properties are cleared. So there’s a cost to be ready for these things. But I think ultimately we have performed well. Even take the storms earlier this year and all the storms last year; you had no real Cal Water outages. We didn’t run out of power. And then there are other kind of marginal benefits that don’t get counted when California hasn’t had enough energy for the grid, for example, and the Governor’s Office calls and said, hey, give us what you got, we were able to take 6 megawatt off the grid by using our backup systems we put in place.

So the all the pieces have to fit together. And it’s really important that the commission take a long-term comprehensive view, and that’s the view the company has taken on their capital. So I don’t see capital could slow down a little bit. I don’t see it slowing down dramatically because we got a lot of work to do.

Jonathan Reeder: Okay. That’s very helpful. Good luck with the rate case. And yes, we’ll see if you get anything on March 7 or if you have to wait a little longer.

Marty Kropelnicki: All right. Thanks, Jonathan. Thanks for your comments.

Operator: As we have no further questions in our queue at this time, I will now turn the call over to Marty Kropelnicki for brief closing remarks. Please go ahead.

Marty Kropelnicki: Thanks, John. Everyone, thanks for joining us today. Again, we will keep everyone applied to what’s happening with the commissions, watch for a press release and 10-K sort of the appropriate public company disclosures. In the meantime, that we are going to continue to run our utility the best way that we know how, and that’s really by focusing on our customer and doing the right thing. So thank you for your time today. And if you have any follow-up questions, feel free to reach out to any one of us. Thank you and have a good day.

Operator: This concludes today’s conference call. Thank you for your participation. And you may now disconnect. Have a nice day, everyone.

Follow Video Products Corp (NYSE:CWT)

Page 3 of 3