AMERICAN STATES WATER CO
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
AWR$89.98+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001628280-26-031364
Item 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001628280-26-053401
Item 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 174 previous paragraphs and 258 current paragraphs.
92 unchanged; 63 reworded; 67 added; 17 removed; 2 previous and 36 current paragraphs rearranged.
Tables are not compared: 14 previous and 28 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (67)
Current report
On July 1, 2026, GSWC filed a general rate case application for all its water regions and the general office. This general rate case will determine new water rates for the years 2028 – 2030. Among other things, GSWC requested capital budgets of approximately $1 billion for the three-year rate cycle. GSWC also requested to reinstate the WRAM and MCBA regulatory mechanisms. In an August 2020 decision, the CPUC discontinued the use of WRAM and the MCBA for water utilities, which GSWC implemented in 2008, but was discontinued for GSWC after 2024 as discussed above. A decision in the water general rate case is expected in the fourth quarter of 2027, with new rates to become effective January 1, 2028.
Current report
Expansion of GSWC’s Water Operations
Current report
In January 2026, GSWC filed an application with the CPUC to acquire the water system assets from Norwalk, a city in Los Angeles County, for a purchase price of $5.25 million. On July 13, 2026, GSWC and Cal Advocates filed a joint motion to adopt a settlement agreement between the two parties that would approve the acquisition of a new water system that serves almost 900 customer connections. If the settlement agreement is approved by the CPUC, the new system will be incorporated into one of GSWC’s existing ratemaking areas. The CPUC is scheduled to issue a proposed decision in the fourth quarter of 2026.
Current report
Summary of Second Quarter Results by Segment
Current report
On June 12, 2026, AWR successfully completed its at-the-market (“ATM”) offering program, which was originally established on February 27, 2024. AWR reached the maximum aggregate offering capacity of $200 million in gross proceeds raised that resulted in the total sale of 2,575,947 Common Shares through this ATM offering program. No further sales of Common Shares will be made under this program, and AWR has no plans to issue additional equity through, at least, the end of 2029 to support its current operations.
Current report
For the three months ended June 30, 2026, recorded diluted earnings from the water utility segment were $0.91 per share, as compared to $0.73 per share for the same period in 2025, an increase of $0.18 per share, or 24.7%. This growth stems largely from CPUC-approved rate increases effective January 1, 2026, which boosted 2026 full-year adopted operating revenues less water supply costs by $32.0 million over 2025 adopted amounts, including $11.0 million for capital projects approved through advice letter filings, as previously discussed. To a lesser extent, 2026 second-quarter earnings also benefited from a 4% increase in water consumption and a lower reliance on purchased water included in the water supply source mix compared to 2025 second-quarter. Due to the CPUC’s approval of a modified revenue decoupling mechanism and an incremental water supply cost balancing account effective January 1, 2025, GSWC’s earnings face future volatility from consumption fluctuations and water supply mix changes.
Current report
It is uncertain whether the second quarter’s trend of higher customer demand and a favorable water supply source mix will continue throughout the remainder of 2026, or if their positive earnings effects will reverse. Consumption changes depend on factors like climate change, conservation, and weather conditions. For example, El Niño or La Niña weather events could cause fluctuating precipitation that shifts outdoor water use. Additionally, water supply mix changes can occur due to unforeseen changes in groundwater quality and operating conditions of groundwater basins and associated pumping facilities. Any of these factors could directly impact GSWC’s future net earnings.
Current report
The following discussion analyzes the primary variances in the water segment’s earnings between the two periods.
Current report
•An increase in water operating revenues of $11.4 million was largely a result of (i) the CPUC-authorized second-year rate increases effective January 1, 2026, (ii) additional revenues for the recovery of capital projects approved in various advice letter filings effective January 1, 2026, (iii) additional revenues for increases in the per-unit water supply costs incurred, which, as noted below, result in no net impact to earnings, and (iv) an increase in water consumption for the three months ended June 30, 2026 of approximately 4% favorably impacting net earnings when compared to the same period in 2025. These increases were partially offset by a decrease of $1.6 million in billed surcharges. CPUC-approved surcharges are billed to customers to recover previously incurred costs. Changes in billed surcharge revenues are offset by equal changes in operating expenses, resulting in no net impact to earnings.
Current report
•An increase in water supply costs of $0.7 million, which consist of purchased water, purchased power for pumping, groundwater production assessments and changes in the water supply cost balancing accounts. The increase in water supply costs compared to the same period in 2025 was largely because of (i) an overall increase in per-unit water supply costs that are covered in current rates, as noted above, resulting in no net impact to earnings, and (ii) an increase in the production of water resulting from higher customer consumption. These increases were partially offset by the impact of an actual water supply source mix that included less purchased water during the second quarter of 2026 as compared to the same period in 2025 due primarily to wells being brought back online in certain customer service areas.
Current report
•An overall increase in operating expenses of $0.2 million (excluding supply costs) due largely to increases in (i) overall labor costs, (ii) depreciation and amortization expenses, which are impacted by increasing capital additions placed in service and are reflected and recovered in customer rates, and (iii) property and other non-income taxes; partially offset by a decrease in surcharges of $1.6 million. As noted above, changes in billed surcharge revenues are offset by equal changes in operating expenses, resulting in no net impact to earnings.
Current report
•A decrease in earnings of approximately $0.02 per share due to the dilutive effects from the issuance of equity under AWR’s ATM offering program as previously discussed.
Current report
The net increase in electric revenues discussed above was partially offset by an overall increase in operating expenses and interest expense (net of interest and other income), partially offset by a decrease in surcharges as discussed above.
Current report
Summary of Year-to-Date Results by Segment
Current report
•An overall increase in other income (net of other expenses) of $1.7 million due primarily to gains of $3.1 million generated on investments held to fund one of the Company’s retirement plans as compared to gains of $2.2 million recorded during the same period in 2025, due to financial market conditions and a decrease in the non-service cost components related to GSWC’s benefit plans resulting from changes in actuarial assumptions. However, as a result of GSWC’s two-way pension balancing accounts authorized by the CPUC, changes in total net periodic benefits costs related to the pension plan have no material impact to earnings.
Current report
•A decrease in earnings of approximately $0.03 per share due to the dilutive effects from the issuance of equity under AWR’s ATM offering program previously discussed.
Current report
Diluted earnings from the electric utility segment increased $0.02 per share for the six months ended June 30, 2026 as compared to the same period in 2025, largely resulting from an increase of $4.4 million in electric revenues due largely to the CPUC-authorized fourth-year rate increases in 2026, additional revenues approved to recover the cost plus AFUDC of certain advice letter capital projects that were effective during the second quarter of 2025, and an increase in billed surcharges of $1.2 million. As previously discussed, changes in billed surcharge revenues are offset by equal changes in operating expenses, resulting in no net impact to earnings.
Current report
The following discussion and analysis for the three and six months ended June 30, 2026 and 2025 provides information on AWR’s consolidated operations and, where necessary, includes specific references to AWR’s individual segments and subsidiaries: GSWC, BVES, and ASUS and its subsidiaries.
Current report
The sum of the water and electric supply-cost balancing accounts are shown on AWR’s Consolidated Statements of Income and totaled $0.2 million and $(0.1) million for the three months ended June 30, 2026 and 2025, respectively.
Current report
Water purchased costs for the second quarter of 2026 decreased to $23.5 million as compared to $23.9 million for the same period in 2025. Although there was an increase in customer consumption, the actual water supply source mix included less purchased water during the three months ended June 30, 2026 compared to the same period in 2025 due primarily to wells being brought back online in certain customer service areas. As a result of the increase in water produced from GSWC's wells, there was an increase in power purchased for pumping of $0.1 million and $1.1 million groundwater production assessment compared to the same period in 2025.
Current report
The sum of the water and electric supply-cost balancing accounts are shown on AWR’s Consolidated Statements of Income and totaled $0.2 million and $(0.1) million for the three months ended June 30, 2026 and 2025, respectively.
Current report
The decrease in other operation expenses at the water segment was largely due to a decrease in billed surcharges of $0.5 million compared to the same period in 2025 from surcharges implemented in 2025 to recover balances previously tracked in CPUC-authorized balancing and memorandum accounts. Billed surcharges had a corresponding and offsetting change in other operation expenses, resulting in no net impact to earnings. There was also a decrease in water treatment and chemical costs as compared to the same period in 2025.
Current report
Administrative and general expenses decreased at the water segment due largely to a decrease in billed surcharges of $1.1 million compared to the same period in 2025. The surcharges were implemented in 2025 to recover balances previously tracked in CPUC-authorized balancing and memorandum accounts. Billed surcharges had a corresponding and offsetting change in administrative and general expenses, resulting in no net impact to earnings. This decrease was partially offset by higher labor costs and other employee-related benefits, and outside services costs including related to various regulatory filings.
Current report
Administrative and general expenses decreased at the electric segment due largely to a decrease in outside-service costs, as well as a decrease in billed surcharges of $0.2 million to recover previously incurred costs that had been tracked in CPUC-authorized memorandum accounts. Changes in revenues from billed surcharges had a corresponding and offsetting change in administrative and general expenses, resulting in no impact to earnings.
Current report
Administrative and general expenses increased at the contracted services segment primarily due to higher labor costs.
Current report
Operating Revenues:
Current report
General
Current report
Water
Current report
For the six months ended June 30, 2026, revenues from water operations increased by $22.5 million to $244.2 million as compared to the same period in 2025. The increase in water revenues during the six months of 2026 is primarily a result of the (i) the CPUC-approved second-year rate increases effective January 1, 2026, (ii) additional revenues approved to recover the advice letter capital projects that were added to adopted rate base for inclusion in the revenue requirement effective January 1, 2026, (iii) additional revenues for increases in the per-unit water supply costs incurred, which result in no net impact to earnings, and (iv) an increase in water consumption as further described below. These increases were partially offset by a decrease in billed surcharges of $2.0 million compared to the same period in 2025. CPUC-approved surcharges are billed to customers to recover previously incurred costs. Changes in billed surcharge revenues are offset by equal changes in operation expenses, resulting in no impact to earnings.
Current report
Electric
Current report
Electric revenues for the six months ended June 30, 2026 increased by $4.4 million to $32.3 million largely resulting from an increase in revenues from fourth-year electric rate increases implemented in 2026 as compared to the same period of 2025, an increase in additional revenues from the approval of certain advice letter projects that were implemented after the second quarter of 2025, and an increase in billed surcharges of $1.2 million. As previously discussed, changes in billed surcharge revenues are offset by equal changes in operating expenses, resulting in no net impact to earnings.
Current report
Operating Expenses:
Current report
Supply Costs
Current report
Water segment supply costs
Current report
The sum of the water and electric supply-cost balancing accounts are shown on AWR’s Consolidated Statements of Income and totaled $(0.1) million and $(1.9) million for the six months ended June 30, 2026 and 2025, respectively.
Current report
Electric segment supply costs
Current report
The sum of the water and electric supply-cost balancing accounts are shown on AWR’s Consolidated Statements of Income and totaled $(0.1) million and $(1.9) million for the six months ended June 30, 2026 and 2025, respectively.
Current report
Other Operation
Current report
For the six months ended June 30, 2026, the decrease in other operation expenses at the water segment was largely due to a decrease of $0.6 million in billed surcharges to recover previously incurred costs that had been tracked in CPUC-authorized memorandum accounts, partially offset by an increase in water conservation spending. Changes in billed surcharges had a corresponding and offsetting change in other operation expenses, resulting in no net impact to earnings.
Current report
Administrative and General
Showing the first 40 of 67 passages. Open the source sections for the rest.
Removed paragraphs (17)
Previous report
General Rate Case Filings:
Previous report
Contracted Services Segment:
Previous report
Summary of First Quarter Results by Segment
Previous report
Water Segment:
Previous report
•A decrease in earnings of approximately $0.01 per share due to the dilutive effects from the issuance of equity under AWR’s ATM offering program beginning in February 2024. Under the ATM offering program, AWR may offer and sell its Common Shares, with an aggregate gross offering price of up to $200 million, from time to time at its sole discretion, with $34.3 million currently remaining available for sale. Through March 31, 2026, AWR has sold 2,133,225 Common Shares through this ATM offering program.
Previous report
Electric Segment:
Previous report
Contracted Services Segment:
Previous report
Contracted Services
Previous report
The sum of the water and electric supply-cost balancing accounts are shown on AWR’s Consolidated Statements of Income and totaled $(0.3) million and $(1.7) million for the three months ended March 31, 2026 and 2025, respectively.
Previous report
The sum of the water and electric supply-cost balancing accounts are shown on AWR’s Consolidated Statements of Income and totaled $(0.3) million and $(1.7) million for the three months ended March 31, 2026 and 2025, respectively.
Previous report
The increase in other operation expenses at the water segment was primarily due to higher operation-related labor costs and increases in lab fees for water quality testing and water conservation spending.
Previous report
Administrative and general expenses increased at the contracted services segment due to higher labor costs, employee-related benefits, and legal costs.
Previous report
Net cash used by financing activities was $7.5 million for the three months ended March 31, 2026 as compared to $18.2 million net cash provided for the same period in 2025. The change in net cash used by financing activities in 2026 is due primarily to dividends paid to AWR of $19.7 million as compared to no dividend paid during the same period in 2025. GSWC’s net cash provided by financing activities was also lower due to an overall decrease in borrowings needed in 2026 under its credit facility as compared to 2025 resulting, in part, from an increase in cash flows from operating activities. During the three months ended March 31, 2026, GSWC had net borrowings on its credit facility of $9.0 million, while during the three months ended March 31, 2025, GSWC had net borrowings on its credit facility of $19.0 million.
Previous report
Contracted Services
Previous report
Water Segment:
Previous report
Electric Segment:
Previous report
Valley Water District, Metropolitan Water District (“MWD”), Palo Verde Irrigation District and the City of Needles. Operational agreements on how the Colorado River is managed will expire in Fall 2026. On April 17, 2026, the Bureau announced that it will add approximately 2.48 million acre feet of water to Lake Powell by moving water from the upstream Flaming Gorge Reservoir and by reducing releases from Lake Powell. These actions are expected to increase Lake Powell’s elevation, but will likely accelerate the downstream decline of Lake Mead, with the potential for up to an additional 40% reduction to Hoover Dam’s hydropower generating capacity as early as this fall. Reclamation and its lower basin partners are collaborating to conserve water in Lake Mead and maintain its water levels, even as releases from Lake Powell are planned to decrease. GSWC will continue to monitor developments related to the Colorado River System and assess its impact on MWD and GSWC’s systems that utilized water sources provided by MWD member agencies.
Reworded paragraphs (63)
Previous wording
AWR uses earnings per share by business segment and AWR (parent) as an important measure in evaluating its operating results and believes it provides investors with clarity surrounding the performance of its business segments and the parent company. AWR reviews this measurement regularly and compares it to historical periods and to its operating budget. A reconciliation to AWR’s consolidated diluted earnings per share prepared in accordance with GAAP is included in the discussion under the section titled“Summary of First Quarter Results by Segment.”
Current wording
AWR uses earnings per share by business segment and AWR (parent) as an important measure in evaluating its operating results and believes it provides investors with clarity surrounding the performance of its business segments and the parent company. AWR reviews this measurement regularly and compares it to historical periods and to its operating budget. A reconciliation to AWR’s consolidated diluted earnings per share prepared in accordance with GAAP is included in the discussions under the sections titled“Summary of Second Quarter Results by Segment”and “Summary of Year-to-Date Results by Segment.”
Previous wording
Although Registrant operates solely in the U.S., geopolitical developments abroad, such as the ongoing U.S. military operation in Iran, could indirectly affect our business through volatility in commodity prices, inflationary pressures, supply chain and operating cost impacts, and potential disruptions in banking systems and capital markets. Management is actively engaged with vendors and business partners to monitor and mitigate financial risks of global uncertainties; however, the scope and duration of any impacts remain uncertain. As of the date of this filing, geopolitical developments during the first quarter of 2026 have not had a material impact on the Company.
Current wording
Although Registrant operates solely in the U.S., geopolitical developments abroad, such as the ongoing U.S. military operation in Iran, could indirectly affect our business through volatility in commodity prices, inflationary pressures, supply chain and operating cost impacts, and potential disruptions in banking systems and capital markets. Management is actively engaged with vendors and business partners to monitor and mitigate financial risks of global uncertainties; however, the scope and duration of any impacts remain uncertain. As of the date of this filing, geopolitical developments during the first half of 2026 have not had a material impact on the Company.
Previous wording
General Rate Case for the Years 2023–2026
Current wording
General Rate Case Filings and Other Matters:
Previous wording
In December 2025, GSWC received approval from the CPUC to implement its full second-year rate increases, effective January 1, 2026, that will result in higher adopted operating revenues less water supply cost for 2026 of approximately $32.0 million compared to 2025’s adopted operating revenues less water supply cost. Included in the 2026 increase is nearly $11 million related to the advice letter capital projects previously discussed. The assets from the advice letter projects and the related amounts in the memorandum account were added to the adopted rate base for inclusion in the revenue requirement effective January 1, 2026.
Current wording
In December 2025, GSWC received approval from the CPUC to implement its full second-year rate increases, effective January 1, 2026, that will result in higher adopted operating revenues less water supply cost for 2026 of approximately $32.0 million compared to 2025’s adopted operating revenues less water supply cost. Included in the 2026 increase is approximately $11 million related to the advice letter capital projects previously discussed. The assets from the advice letter projects and the related amounts in the memorandum account were added to the adopted rate base for inclusion in the revenue requirement effective January 1, 2026.
Previous wording
The new 2026 rates have been reflected in GSWC’s earnings for the three months ended March 31, 2026 resulting in an increase in recorded revenues of $11.1 million largely from the second-year rates and advice letter filings, and an increase in recorded water supply costs of $4.8 million, which combined is an increase of $6.3 million, compared to the same period in 2025. As a result of the discontinuation of the WRAM and MCBA effective January 1, 2025, GSWC’s earnings have been and will continue to be subject to volatility as a result of fluctuations in consumption and/or changes in water supply source mix compared to adopted levels.
Current wording
The new 2026 rates have been reflected in GSWC’s earnings for the six months ended June 30, 2026 resulting in an increase in recorded revenues of $22.5 million largely from the second-year rates and advice letter filings, and an increase in recorded water supply costs of $5.6 million, which combined is a net increase of $16.9 million, compared to the same period in 2025. Due to transitioning from the WRAM to the M-WRAM and from the MCBA to the ICBA effective January 1, 2025, GSWC’s earnings have been and will be subject to future volatility from significant fluctuations in customer consumption, as well as from favorable and unfavorable changes in the water supply source mix compared to the adopted mix. Significant changes in customer consumption are primarily driven by weather conditions, including from such events known as El Niño or La Niña that can result in above average or below average annual precipitation, which significantly impacts outdoor water usage. Water supply mix changes can occur due to various circumstances, including but not limited to, unforeseen changes in groundwater quality and operating conditions of groundwater basins and associated pumping facilities.
Previous wording
Electric General Rate Cases:
Current wording
Electric General Rate Case for the Years 2023–2026
Previous wording
The final decision provides for an increase in adopted operating revenues of $3.3 million in 2026. In addition, the advice letter projects of at least $23.1 million are expected to generate additional annual operating revenues of approximately $3 million when the respective projects are completed, placed in service, and filed for recovery in customer rates. These projects also accrued AFUDC during construction that further increases the revenue requirement. In 2025, BVES implemented new base rates to recover the revenue requirement associated with $23.8 million (including AFUDC) of capital projects approved for recovery through advice letters that were completed and placed in service.
Current wording
The final decision provides for an increase in adopted operating revenues of $3.3 million in 2026. With regards to the advice letter projects authorized in the general rate case as previously discussed, BVES completed and placed in service capital projects totaling approximately $28 million, including AFUDC. During 2025 and 2026, BVES filed various advice letters for these capital projects and the CPUC approved them at actual cost. Accordingly, BVES has implemented new rates to recover the revenue requirement associated with these advice letter projects that are expected to generate additional annual operating revenues of approximately $4 million.
Previous wording
Early in 2026, the U.S. government experienced partial shutdowns affecting mainly the Department of Homeland Security and other federal departments. Amid the recent U.S. government shutdown, the subsidiaries of ASUS have not experienced and are not expected to experience any earnings impact to their existing operations and maintenance and renewal and replacement services, as utility privatization contracts are an “excepted service.” Management expects that any future impact on ASUS and its operations through its subsidiaries will likely be limited to (a) the timing of funding to pay for services rendered, (b) delays in the processing of economic price adjustments (“EPAs”) and/or requests for equitable adjustments (“REAs”), (c) the timing of the issuance of contract modifications for new construction work not already funded by the U.S. government, (d) the timing of construction work associated with delays in receiving construction permits from furloughs at government agencies, and/or (e) delays in solicitation for and/or awarding of new contracts under the Department of Defense contracting programs. In the event the U.S. government shutdown extends for an unprecedented and much longer period, ASUS’s liquidity and earnings could be impacted.
Current wording
Early in 2026, the U.S. government experienced partial shutdowns affecting mainly the Department of Homeland Security and other federal departments. Amid the U.S. government shutdowns, the subsidiaries of ASUS have not experienced and are not expected to experience any earnings impact to their existing operations and maintenance and renewal and replacement services, as utility privatization contracts are an “excepted service.” Management expects that any impact of any future government shutdowns on ASUS and its operations through its subsidiaries will likely be limited to (a) the timing of funding to pay for services rendered, (b) delays in the processing of economic price adjustments (“EPAs”) and/or requests for equitable adjustments (“REAs”), (c) the timing of the issuance of contract modifications for new construction work not already funded by the U.S. government, (d) the timing of construction work associated with delays in receiving construction permits from furloughs at government agencies, and/or (e) delays in solicitation for and/or awarding of new contracts under the Department of Defense contracting programs. In the event a U.S. government shutdown extends for an unprecedented and much longer period than that experienced in early 2026, ASUS’s liquidity and earnings could be impacted.
Previous wording
The table below sets forth a comparison of the first quarter of 2026 diluted earnings per share contribution reported by business segment and for the parent company with amounts reported during the same period in 2025.
Current wording
The table below sets forth a comparison of the second quarter of 2026 diluted earnings per share contribution reported by business segment and for the parent company with amounts reported during the same period in 2025.
Previous wording
•An overall increase in other expense (net of other income) of $0.2 million due largely to losses totaling $1.3 million generated on investments held to fund one of the company’s retirement plans during the three months ended March 31, 2026, as compared to losses on investments of $0.6 million recorded during the same period in 2025 due to financial market conditions; partially offset by a decrease in the non-service cost components related to GSWC’s benefit plans resulting from changes in actuarial assumptions. However, as a result of GSWC’s two-way pension balancing accounts authorized by the CPUC, changes in total net periodic benefits costs related to the pension plan have no material impact to earnings.
Current wording
•An overall increase in other income (net of other expense) of $2.0 million due largely to gains totaling $4.3 million generated on investments held to fund one of the Company’s retirement plans during the three months ended June 30, 2026, as compared to gains on investments of $2.7 million recorded during the same period in 2025 due to financial market conditions, and a decrease in the non-service cost components related to GSWC’s benefit plans resulting from changes in actuarial assumptions. However, as a result of GSWC’s two-way pension balancing accounts authorized by the CPUC, changes in total net periodic benefits costs related to the pension plan have no material impact to earnings.
Previous wording
Diluted earnings from the electric utility segment increased $0.01 per share for the first quarter of 2026 as compared to the same period in 2025 largely resulting from an increase of $3.7 million in electric revenues due to the CPUC-authorized fourth-year rate increases in 2026 and additional revenues approved after the first quarter of 2025 to recover the cost plus AFUDC of certain advice letter capital projects, partially offset by an increase in electric supply costs of $0.3 million, which combined is an increase of approximately $3.4 million compared to the same period in 2025.
Current wording
Diluted earnings from the electric utility segment increased $0.01 per share for the second quarter of 2026 as compared to the same period in 2025 largely resulting from an increase of $0.7 million in electric revenues due to the CPUC-authorized fourth-year rate increases in 2026 and additional revenues approved largely after the second quarter of 2025 to recover the cost plus AFUDC of certain advice letter capital projects. This increase was partially offset by a decrease in billed surcharges of $0.4 million. As previously discussed, changes in billed surcharge revenues are offset by equal changes in operating expenses, resulting in no net impact to earnings.
Previous wording
Diluted earnings from the contracted services segment increased $0.02 per share for the first quarter of 2026 when compared to the same period in 2025 largely resulting from (i) an increase in construction activities, (ii) an increase in management fee revenues resulting from the resolution of various economic price adjustments, and (iii) a decrease in interest expense (net of interest income) due to lower average borrowing levels and average interest rates. These favorable variances were partially offset by an increase in overall operating expenses (excluding construction expenses). The contracted services segment is expected to contribute $0.63 to $0.67 per share for the full year of 2026.
Current wording
Diluted earnings from the contracted services segment increased $0.03 per share for the second quarter of 2026 when compared to the same period in 2025 largely resulting from (i) an increase in construction activities, (ii) an increase in management fee revenues resulting from the resolution of various economic price adjustments, and (iii) a decrease in interest expense (net of interest income) due to lower average borrowing levels and average interest rates. These favorable variances were partially offset by an increase in overall operating expenses (excluding construction expenses). The contracted services segment is expected to contribute $0.63 to $0.67 per share for the full year of 2026.
Previous wording
For the three months ended March 31, 2026, AWR’s recorded consolidated diluted earnings were $0.76 per share, as compared to $0.70 per share for the same period in 2025, an increase of $0.06 per share or 8.6%, primarily generated from higher earnings at the water and electric utility segments resulting from the implementation of new customer rate increases approved by the CPUC, and higher construction activities that resulted in higher earnings at the contracted services segment. AWR’s consolidated diluted earnings for the first quarter of 2026 were negatively impacted by $0.02 per share from the higher number of dilutive shares in the first quarter of 2026 compared to the same period 2025 due to the continued dilutive effects from the issuance of equity under AWR’s at-the-market (“ATM”) offering program.
Current wording
For the six months ended June 30, 2026, AWR’s recorded consolidated diluted earnings were $1.86 per share, as compared to $1.57 per share recorded for the same period in 2025, an increase of $0.29 per share or 18.5%, primarily generated from higher earnings at the water utility segment resulting from, among other factors, the implementation of new customer rate increases approved by the CPUC. In addition, there was an increase in construction activities that resulted in higher earnings at the contracted services segment. AWR’s consolidated diluted earnings for the six months ended June 30, 2026 were negatively impacted by approximately $0.04 per share due to the continued dilutive effects from the issuance of equity under AWR’s ATM offering program. On June 12, 2026, AWR successfully completed the ATM offering program, reaching the maximum aggregate offering capacity of $200 million in gross proceeds raised, and no further sales of Common Shares will be made under this program.
Previous wording
For the three months ended March 31, 2026, recorded diluted earnings from the water utility segment were $0.55 per share, as compared to $0.52 per share for the same period in 2025, an increase of $0.03 per share. The discussion below presents the major variances in earnings for the two periods.
Current wording
For the six months ended June 30, 2026, recorded diluted earnings from the water utility segment were $1.47 per share, as compared to $1.25 per share for the same period in 2025, an increase of $0.22 per share. The discussion below presents the major variances in earnings for the two periods.
Previous wording
•An increase in water operating revenues of $11.1 million was largely as a result of the CPUC-authorized second-year rate increases and additional revenues for capital projects approved in advice letter filings, both of which were effective January 1, 2026. Water consumption for the three months ended March 31, 2026 was consistent with the same period in 2025 and adopted levels. However, as a result of transitioning from a full revenue decoupling mechanism to the M-WRAM effective January 1, 2025, GSWC’s revenues and earnings will continue to be subject to future volatility from significant fluctuations in customer consumption.
Current wording
•An increase in water operating revenues of approximately $22.5 million largely as a result of (i) the CPUC-authorized second-year rate increases effective January 1, 2026, (ii) additional revenues for the recovery of capital projects approved in various advice letter filings effective January 1, 2026, (iii) additional revenues for increases in the per-unit water supply costs incurred, which, as noted below, result in no net impact to earnings, and (iv) an increase in water consumption for the six months ended June 30, 2026 of 2.2% when compared to the same period in 2025. As a result of transitioning to the M-WRAM effective January 1, 2025, GSWC’s revenues and earnings will continue to be subject to future volatility from fluctuations in customer consumption. These increases were partially offset by a decrease in billed surcharges of $2.0 million. As previously discussed, changes in billed surcharge revenues are offset by equal changes in operating expenses, resulting in no net impact to earnings.
Previous wording
•An increase in water supply costs of $4.8 million, which consist of purchased water, purchased power for pumping, groundwater production assessments and changes in the water supply cost balancing accounts. The increase in water supply costs compared to the same period in 2025 is largely because of (i) an overall increase in the per-unit purchased water costs that are covered in current rates resulting in no impact to net earnings, and (ii) an increase in purchased water volume compared to the same period in 2025 resulting from certain wells being temporarily offline in a few customer service areas. As a result, GSWC’s earnings for the three months ended March 31, 2026 were impacted by an actual water supply source mix that included more purchased water than in the same period of 2025. Due to transitioning from a full cost balancing account for water supply to the ICBA effective January 1, 2025, GSWC’s earnings have been and will be subject to future volatility from favorable and unfavorable changes in the water supply source mix compared to the adopted mix incorporated in the revenue requirement.
Current wording
•An increase in water supply costs of $5.6 million, which consist of purchased water, purchased power for pumping, groundwater production assessments and changes in the water supply cost balancing accounts. The increase in water supply costs compared to the same period in 2025 was largely because of (i) an overall increase in the per-unit water supply costs that are covered in current rates, as noted above, resulting in no net impact to earnings, (ii) an increase in overall water volume compared to the same period in 2025 resulting from higher customer consumption, and (iii) the impact of an actual water supply source mix that included more purchased water during the six months ended June 30, 2026 compared to the same period in 2025 as a result of certain wells being temporarily offline in a few customer service areas during the first quarter of 2026. Due to transitioning to the ICBA effective January 1, 2025, GSWC’s earnings have been and will be subject to future volatility from favorable and unfavorable changes in the water supply source mix compared to the adopted mix incorporated in the revenue requirement.
Previous wording
•An overall increase in operating expenses of $2.4 million (excluding supply costs) due primarily to increases in (i) overall labor costs and other employee-related benefits, (ii) overall operation-related costs including lab fees for water quality testing and conservation spending, (iii) depreciation and amortization expenses, which are impacted by increasing capital additions placed in service and are reflected and recovered in customer rates, and (iv) property and other non-income taxes.
Current wording
•An overall increase in operating expenses of $2.6 million (excluding supply costs) mainly due to increases in (i) overall labor costs and other employee-related benefits, (ii) other operation and maintenance expenses, (iii) regulatory costs, (iv) depreciation and amortization expenses, which are impacted by increasing capital additions placed in service and are reflected and recovered in customer rates, and (v) property and other non-income taxes; partially offset by a decrease in surcharges of $2.0 million. As noted above, changes in revenues from billed surcharges are offset by equal changes in operating expenses, resulting in no net impact to earnings.
Previous wording
•An overall increase in interest expense (net of interest income) of $0.9 million resulting largely from (i) the impact of capitalizing debt costs related to certain advice letter projects approved by the CPUC in the latest general rate case effective January 1, 2025, as previously discussed, that was recorded in 2025 with no similar item in 2026, and (ii) a decrease in interest income earned on regulatory assets due to decreasing regulatory balances as GSWC recovers the amounts through surcharges; partially offset by decreases in overall borrowing levels and average interest rates. The advice letter projects discussed are now included in adopted rate base and are part of the rate increases effective January 1, 2026.
Current wording
•An overall increase in interest expense (net of interest income) of $1.7 million resulting largely from (i) the impact of capitalizing debt costs related to certain advice letter projects approved by the CPUC in the latest general rate case effective January 1, 2025 that was recorded in 2025 with no similar item in 2026, and (ii) a decrease in interest income earned on regulatory assets due to decreasing regulatory balances as GSWC recovers the amounts through surcharges; partially offset by overall lower average borrowing levels and interest rates. The advice letter projects discussed are now included in adopted rate base and are part of the rate increases effective January 1, 2026.
Previous wording
The net increase discussed above was partially offset by (i) an overall increase in operating expenses of $2.3 million, mostly from operation and maintenance-related activities, and (ii) an increase in interest expense (net of interest and other income) of $0.5 million compared to the same period in 2025 due to a decrease in AFUDC related to certain advice letter projects approved by the CPUC in the latest general rate case, as previously discussed, that was recorded in 2025 with no similar level of AFUDC recorded in 2026, lower interest income earned on regulatory assets, and an increase in interest expense from higher average borrowing levels. The advice letter projects discussed are now included in adopted rate base and are part of the increase in 2026 revenues.
Current wording
The increase in electric revenues discussed above was partially offset by (i) an overall increase in operating expenses of $2.1 million, mostly from an increase in surcharges of $1.2 million discussed above, other operation and maintenance-related activities, and depreciation and amortization expenses, which are impacted by increasing capital additions placed in service and are reflected and recovered in customer rates, and (ii) an increase in interest expense (net of interest and other income) of $0.8 million compared to the same period in 2025. The increase in interest expense at the electric segment between periods is primarily due to lower AFUDC recognized in 2026 related to certain advice letter projects approved by the CPUC in the latest general rate case, together with lower interest income earned on regulatory assets, and an increase in interest expense from higher average borrowing levels. The advice letter projects discussed are now included in adopted rate base and are part of the increase in 2026 revenues.
Previous wording
For the three months ended March 31, 2026, revenues from water operations increased by $11.1 million to $113.1 million as compared to the same period in 2025. The increase in water revenues during the first quarter of 2026 is primarily a result of the CPUC-approved second-year rate increases effective January 1, 2026 and, as previously discussed, additional revenues approved to recover the advice letter capital projects that were added to adopted rate base for inclusion in the revenue requirement effective January 1, 2026.
Current wording
For the three months ended June 30, 2026, revenues from water operations increased by $11.4 million to $131.1 million as compared to the same period in 2025. The increase in water revenues during the second quarter of 2026 is primarily a result of (i) the CPUC-approved second-year rate increases effective January 1, 2026, (ii) additional revenues approved to recover the advice letter capital projects that were added to adopted rate base for inclusion in the revenue requirement effective January 1, 2026, (iii) additional revenues for increases in the per-unit water supply costs incurred, which result in no net impact to earnings, and (iv) an increase in water consumption as further described below. These increases were partially offset by a decrease in billed surcharges of $1.6 million compared to the same period in 2025. CPUC-approved surcharges are billed to customers to recover previously incurred costs. Changes in billed surcharge revenues are offset by equal changes in operation expenses, resulting in no impact to earnings.
Previous wording
Water consumption for the three months ended March 31, 2026 was consistent with the same period in 2025 and adopted levels. Prior to 2025, changes in consumption had not had a significant impact on recorded revenues due to the CPUC-approved full revenue decoupling mechanism, known as the WRAM, which adjusted volumetric revenues to adopted levels authorized by the CPUC. As previously discussed, the final decision in the latest general rate case rejected GSWC’s request for the continuation of the WRAM, and instead ordered GSWC to transition to a modified rate adjustment mechanism (a Monterey-style WRAM or “M-WRAM”). Without having a full revenue decoupling mechanism, GSWC’s revenues and earnings will be subject to future volatility as a result of significant fluctuations in customer consumption compared to adopted levels.
Current wording
Water consumption for the three months ended June 30, 2026 was higher by approximately 4% as compared to the same period in 2025. Prior to 2025, changes in consumption did not have a significant impact on recorded revenues due to the CPUC-approved full revenue decoupling mechanism, known as the WRAM, which adjusted volumetric revenues to adopted levels authorized by the CPUC. As previously discussed, the final decision in the latest general rate case rejected GSWC’s request for the continuation of the WRAM, and instead ordered GSWC to transition to a modified rate adjustment mechanism (a Monterey-style WRAM or “M-WRAM”). Without having a full revenue decoupling mechanism, GSWC’s revenues and earnings will be subject to future volatility as a result of fluctuations in customer consumption.
Previous wording
Electric revenues for the three months ended March 31, 2026 increased by $3.7 million to $18.7 million largely resulting from an increase in revenues from fourth-year electric rate increases implemented in 2026 as compared to the same period of 2025, and an increase in additional revenues from the approval of certain advice letter projects that were implemented after the first quarter of 2025.
Current wording
Electric revenues for the three months ended June 30, 2026 increased by $0.7 million to $13.6 million largely resulting from an increase in revenues from fourth-year electric rate increases implemented in 2026 as compared to the same period of 2025, and an increase in additional revenues from the approval of certain advice letter projects that were implemented after the second quarter of 2025. These increases were partially offset by a decrease in billed surcharges of $0.4 million. Changes in billed surcharge revenues are offset by equal changes in operation expenses, resulting in no impact to earnings.
Previous wording
Electric usage for thefirst quarter of 2026 was 5.0% lower than the same period in 2025. Due to the CPUC-approved Base Revenue Requirement Adjustment Mechanism, which adjusts certain revenues to adopted levels authorized by the CPUC, changes in electric usage do not have a significant impact on earnings.
Current wording
Billed electric usage for thesecond quarter of 2026 was 7.8% lower than the same period in 2025; however, due to the CPUC-approved Base Revenue Requirement Adjustment Mechanism, which adjusts certain revenues to adopted levels authorized by the CPUC, changes in electric usage do not have a significant impact on earnings.
Previous wording
Revenues from contracted services are composed of construction revenues (including renewal and replacements) and management fees for operating and maintaining water and/or wastewater systems at various military bases. For the three months ended March 31, 2026, revenues from contracted services increased by $6.4 million to $37.4 million as compared to $31.0 million for the same period in 2025. The increase was primarily due to an increase in construction activities and an increase in management fees from economic price adjustments.
Current wording
Revenues from contracted services are composed of construction revenues (including renewal and replacements) and management fees for operating and maintaining water and/or wastewater systems at various military bases. For the three months ended June 30, 2026, revenues from contracted services increased by $6.2 million to $36.6 million as compared to $30.4 million for the same period in 2025. The increase was primarily due to an increase in construction activities and an increase in management fees from economic price adjustments.
Previous wording
Total supply costs at the regulated utilities comprise the largest portion of total consolidated operating expenses. Supply costs accounted for 29.4% and 28.8% of total operating expenses for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Total supply costs at the regulated utilities comprise the largest portion of total consolidated operating expenses. Supply costs accounted for 32.0% and 32.9% of total operating expenses for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
Two of the principal factors affecting water supply costs are the amount of water produced and the source of the water. Generally, the variable cost of producing water from wells is less than the cost of water purchased from wholesale suppliers.
Current wording
Two of the principal factors affecting water supply costs are the amount of water produced and the source of the water. Generally, the variable cost of producing water from wells is less than the cost of water purchased from wholesale suppliers. Overall actual percentages of purchased water for the three months ended June 30, 2026 and 2025 were 40.7% and 43.2%, respectively.
Previous wording
Prior to 2025, GSWC was able to track in the CPUC-approved MCBA the differences in adopted and actual expense levels for purchased water, power purchased for pumping and pump taxes. GSWC recorded the variances (which include the effects of changes in both rate and volume) between adopted and actual purchased water, purchased power and pump tax expenses as a regulatory asset or liability. GSWC recovered from, or refunded to, customers the amount of such variances. Without the MCBA mechanism in place there may be volatility to Registrant’s earnings as a result of changes in water supply source mix. The MCBA has been replaced with an incremental supply cost balancing account that will not include the impact from changes in water supply source mix compared to the adopted mix incorporated in the revenue requirement, but allows GSWC to track differences between the authorized per-unit prices of water production costs and actual per-unit prices of water production costs. As of March 31, 2026, the balances recorded in the ICBA were not significant.
Current wording
Effective January 1, 2025, GSWC transitioned from a full cost balancing account for water supply known as the MCBA to an incremental cost balancing account (“ICBA”) for supply costs. The ICBA does not include the impact from changes in water supply source mix compared to the adopted mix incorporated in the revenue requirement, but allows GSWC to track differences between the authorized per-unit prices of water production costs and actual per-unit prices of water production costs. Without the MCBA mechanism in place there may be volatility to Registrant’s earnings as a result of changes in water supply source mix. As of June 30, 2026, the balances recorded in the ICBA were not significant.
Previous wording
For the three months ended March 31, 2026, the cost of power purchased for resale to BVES’s electric customers decreased by $1.3 million to $4.8 million as compared to $6.1 million during the same period in 2025 due to lower customer usage, partially offset by higher overall average prices per megawatt-hour that include all fixed costs. The change in the electric supply cost balancing account in 2026 when compared to 2025 is also due to increases in energy prices.
Current wording
For the three months ended June 30, 2026, the cost of power purchased for resale to BVES’s electric customers decreased by $0.7 million to $2.8 million as compared to $3.5 million during the same period in 2025 due to lower customer usage and lower overall average prices per megawatt-hour, including fixed costs. The change in the electric supply cost balancing account in 2026 when compared to 2025 is also due to lower customer usage.
Previous wording
The increase in other operation expenses at the electric segment was primarily due to higher operation-related outside service costs.
Current wording
The increase in other operation expenses at the electric segment was primarily due to higher operation-related outside service costs. The increase at the contracted services segment was largely due to higher labor and fuel costs.
Previous wording
Maintenance expense increased at the contracted services segment due to higher overall maintenance activities compared to the same period in 2025.
Current wording
Maintenance expense increased at the water segment due primarily to higher overall maintenance activities compared to the same period in 2025.
Previous wording
Maintenance expense increased at the electric services segment due largely to $1.0 million in billed surcharges to recover previously incurred costs that had been tracked in CPUC-authorized memorandum accounts, and higher maintenance activities compared to same period in 2025. Increases in revenues from billed surcharges have a corresponding and offsetting increase in maintenance expenses, resulting in no impact to earnings.
Current wording
Maintenance expense decreased at the electric services segment due largely to a decrease in billed surcharges of $0.2 million to recover previously incurred costs that had been tracked in CPUC-authorized memorandum accounts. Changes in revenues from billed surcharges had a corresponding and offsetting change in maintenance expense, resulting in no impact to earnings.
Previous wording
Property and other taxes increased at both the water and electric segments were due mainly to higher property taxes from capital additions.
Current wording
Property and other taxes increased at both the water and electric segments due mainly to higher property taxes from capital additions.
Previous wording
For the three months ended March 31, 2026, construction expenses for contracted services were $17.3 million, an increase of $4.4 million compared to the same period in 2025, primarily resulting from an increase in new construction activities as compared to the same period of 2025.
Current wording
For the three months ended June 30, 2026, construction expenses for contracted services were $16.7 million, an increase of $3.9 million compared to the same period in 2025, primarily resulting from an increase in new construction activities as compared to the same period of 2025.
Previous wording
AWR’s borrowings consist of revolving credit facilities, while GSWC and BVES borrowings consist of revolving credit facilities and long-term debt issuances. Interest expense at the water segment increased as compared to the same period in 2025 due primarily to the impact of capitalizing debt costs in 2025 related to certain advice letter projects approved in the latest water general rate case, with no similar item in 2026; partially offset by decreases in overall borrowing levels and average interest rates. Interest expense at the electric services segment increased as compared to the same period in 2025 resulting primarily from overall higher average borrowing levels. The interest expense at the contracted services segment decreased as compared to the same period in 2025 resulting primarily from lower average borrowing levels and lower interest rates. The overall combined average interest rates were 5.04% and 5.14% for the three months ended March 31, 2026 and 2025, respectively.
Current wording
AWR’s borrowings consist of revolving credit facilities, while GSWC and BVES borrowings consist of revolving credit facilities and long-term debt issuances. Interest expense at the water segment increased as compared to the same period in 2025 due primarily to the impact of capitalizing debt costs in 2025 related to certain advice letter projects approved in the latest water general rate case, with no similar item in 2026. Interest expense at the electric segment increased as compared to the same period in 2025 due primarily to lower AFUDC recognized in 2026. In 2025, BVES recognized higher levels of AFUDC related to certain advice letter projects approved in the latest electric general rate case. The interest expense at the contracted services segment and AWR (parent) decreased as compared to the same period in 2025 primarily due to lower average borrowing levels and lower interest rates. The overall combined average interest rates were 4.99% and 5.10% for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
For the three months ended March 31, 2026, other expense (net of other income) increased largely because of losses of $1.3 million recorded on investments held to fund one of the Company’s retirement plans in 2026, compared to losses of $0.6 million recorded in 2025. The increase in the losses from investments was partially offset by a decrease in the non-service cost components related to GSWC’s benefit plans resulting from changes in actuarial assumptions. However, as a result of GSWC’s two-way pension balancing account authorized by the CPUC, changes in total net periodic benefit costs related to the pension plan have no material impact to earnings.
Current wording
For the three months ended June 30, 2026, other income (net of other expense) increased largely because of gains of $4.3 million recorded on investments held to fund one of the Company’s retirement plans in 2026, compared to gains of $2.7 million recorded in 2025, and a decrease in the non-service cost components related to GSWC’s benefit plans resulting from changes in actuarial assumptions. However, as a result of GSWC’s two-way pension balancing accounts authorized by the CPUC, changes in total net periodic benefits costs related to the pension plan have no material impact to earnings.
Previous wording
The decrease in other income for the electric segment is due primarily to a decrease in AFUDC (equity) earned on certain CPUC-approved advice letter projects while under construction compared to same period in 2025 as projects were completed and placed into service.
Current wording
The decrease in other income for the electric segment is due primarily to a decrease in AFUDC (equity) earned on certain CPUC-approved advice letter projects while under construction compared to same period in 2025 as projects were completed and placed into service. The decrease in other income for AWR (parent) is due primarily to a decrease in non-regulated-related activities.
Previous wording
AWR’s ETR was 24.8% and 24.0% for the three months ended March 31, 2026 and 2025, respectively. GSWC’s ETR was 25.9% and 24.7% for each of the periods ended March 31, 2026 and 2025, respectively. The increase in the ETRs during the three months ended March 31, 2026 was primarily due to changes in certain flowed-through income taxes at the regulated utilities.
Current wording
AWR’s ETR was 25.1% and 23.3% for the three months ended June 30, 2026 and 2025, respectively. GSWC’s ETR was 25.9% and 24.4% for each of the periods ended June 30, 2026 and 2025, respectively. The increase in the ETRs during the three months ended June 30, 2026 was primarily due to changes in certain flowed-through income taxes at the regulated utilities.
Previous wording
Water purchased costs for the first quarter of 2026 increased to $21.4 million as compared to $16.3 million for the same period in 2025 due primarily to higher wholesale water prices when compared to the same period in 2025 that are being recovered in current rates, and higher purchased water volume compared to the same period in 2025 resulting from certain wells being temporarily offline in a few customer service areas.
Current wording
Water purchased costs for the six months ended June 30, 2026 increased to $44.9 million as compared to $40.2 million for the same period in 2025 due primarily to higher wholesale water per-unit prices that are being recovered in current rates, and an actual water supply source mix that included more purchased water during the six months ended June 30, 2026 compared to the same period in 2025 resulting from wells being temporarily offline in a few customer service areas during the first quarter of 2026, with some wells coming back online in the second quarter. Power purchased for pumping and groundwater production assessment increased as a result of higher customer consumption and water production compared to the same period in 2025, as well as increases in electricity provider rates and pump tax rates that are also being recovered in current rates.
Previous wording
The increase at the contracted services segment was due to higher labor costs.
Current wording
The increase at the electric segment was due primarily to higher operation-related outside services costs. The increase at the contracted services segment was largely due to higher labor, fuel, and chemicals for treatment costs.
Previous wording
Administrative and general expenses increased at the electric segment due primarily to an increase of $0.7 million in billed surcharges to recover previously incurred costs that had been tracked in CPUC-authorized memorandum accounts, partially offset by lower outside-service costs. Increases in revenues from billed surcharges have a corresponding and offsetting increase in administrative and general expenses, resulting in no impact to earnings.
Current wording
Administrative and general expenses increased at the electric segment due, in part, to an increase of $0.4 million in billed surcharges to recover previously incurred costs that had been tracked in CPUC-authorized memorandum accounts, partially offset by lower outside services costs. Changes in billed surcharges had a corresponding and offsetting change in administrative and general expenses, resulting in no impact to earnings.
Showing the first 40 of 63 pairs. Open the source sections for the rest.
Rearranged current paragraphs (36)
Current report — wording carried from elsewhere
Water General Rate Case for the Years 2028–2030
Current report — wording carried from elsewhere
Electric General Rate Case for the Years 2027–2030
Current report — wording carried from elsewhere
For the three months ended June 30, 2026, AWR’s recorded consolidated diluted earnings were $1.09 per share, as compared to $0.87 per share for the same period in 2025, an increase of $0.22 per share or 25.3%, primarily generated from higher earnings at the water utility segment resulting largely from, among other factors, the implementation of new customer rate increases approved by the CPUC. In addition, there was an increase in construction activities that resulted in higher earnings at the contracted services segment.
Current report — wording carried from elsewhere
•An overall increase in interest expense (net of interest income) of $0.9 million resulting largely from (i) the impact of capitalizing debt costs related to certain advice letter projects approved by the CPUC in the latest general rate case effective January 1, 2025 that was recorded in 2025 with no similar item in 2026, and (ii) a decrease in interest income earned on regulatory assets due to decreasing regulatory balances as GSWC recovers the amounts through surcharges. The advice letter projects discussed are now included in adopted rate base and are part of the rate increases effective January 1, 2026.
Current report — wording carried from elsewhere
The table below sets forth a comparison of the year-to-date diluted earnings per share by business segment and for the parent company with amounts reported during the same period in 2025:
Current report — wording carried from elsewhere
The following is a computation and reconciliation of diluted earnings per share from the measure of net income (loss) by business segment and for the parent company (as disclosed in Note 10 to the Unaudited Consolidated Financial Statements) to AWR’s consolidated fully diluted earnings per Common Share, for the six months ended June 30, 2026 and 2025:
Current report — wording carried from elsewhere
•Changes in certain flowed-through income taxes and permanent items included in GSWC’s income tax expense for the six months ended June 30, 2026 as compared to the same period in 2025 unfavorably impacted the water segment’s earnings as previously discussed in the quarterly results.
Current report — wording carried from elsewhere
Diluted earnings from the contracted services segment increased $0.05 per share for the six months ended June 30, 2026 as compared to the same period in 2025, largely due to (i) an increase in construction activities, (ii) an increase in management fee revenues resulting from the resolution of various economic price adjustments, and (iii) a decrease in interest expense (net of interest income) due to lower average borrowing levels and average interest rates. These favorable variances were partially offset by an increase in overall operating expenses (excluding construction expenses). Furthermore, there was a decrease in contracted services earnings of approximately $0.01 per share due to the dilutive effects from the issuance of equity under AWR’s ATM offering program that was previously discussed. The contracted services segment is expected to contribute $0.63 to $0.67 per share for the full year of 2026.
Current report — wording carried from elsewhere
Consolidated Results of Operations — Six Months Ended June 30, 2026 and 2025 (amounts in thousands, except per share amounts):
Current report — wording carried from elsewhere
GSWC and BVES rely upon approvals by the CPUC of rate increases to recover operating expenses and to provide for a return on invested and borrowed capital used to fund utility plant. ASUS relies on economic price and equitable adjustments by the U.S. government in order to recover operating expenses and provide a profit margin for ASUS. Current operating revenues and earnings can be negatively impacted if ASUS’s subsidiaries do not receive adequate rate relief or adjustments in a timely manner. ASUS’s earnings are also impacted by the level of additional construction projects at its subsidiaries, which may or may not continue at current levels in future periods.
Current report — wording carried from elsewhere
Water consumption for the six months ended June 30, 2026 was higher by 2.2% as compared to the same period in 2025. Prior to 2025, changes in consumption did not have a significant impact on recorded revenues due to the CPUC-approved full revenue decoupling mechanism, known as the WRAM, which adjusted volumetric revenues to adopted levels authorized by the CPUC. As previously discussed, the final decision in the latest general rate case rejected GSWC’s request for the continuation of the WRAM, and instead ordered GSWC to transition to a modified rate adjustment mechanism (a Monterey-style WRAM or “M-WRAM”). Without having a full revenue decoupling mechanism, GSWC’s revenues and earnings will be subject to future volatility as a result of significant fluctuations in customer consumption.
Current report — wording carried from elsewhere
Electric usage for the six months ended June 30, 2026 was lower by 6.1% compared to the same period in 2025; however, due to the CPUC-approved Base Revenue Requirement Adjustment Mechanism, which adjusts certain revenues to adopted levels authorized by the CPUC, changes in usage do not have a significant impact on earnings.
Current report — wording carried from elsewhere
Revenues from contracted services are composed of construction revenues (including renewal and replacements) and management fees for operating and maintaining the water and/or wastewater systems at various military bases. For the six months ended June 30, 2026, revenues from contracted services increased by $12.6 million to $74.0 million as compared to $61.4 million for the same period in 2025. The increase was primarily due to an increase in construction activities and an increase in management fees from economic price adjustments.
Current report — wording carried from elsewhere
ASUS’s subsidiaries expect to continue to enter into U.S. government-awarded contract modifications, agreements with third-party prime contractors for new construction projects at the military bases served and task order agreements. Earnings and cash flows from modifications to the initial 15- and 50-year contracts with the U.S. government and agreements with third-party prime contractors for additional construction projects may or may not continue at current levels in future periods.
Current report — wording carried from elsewhere
Total supply costs at the regulated utilities comprise the largest portion of total consolidated operating expenses. Supply costs accounted for approximately 30.7% and 30.9% of total operating expenses for the six months ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
Two of the principal factors affecting water supply costs are the amount of water produced and the source of the water. Generally, the variable cost of producing water from wells is less than the cost of water purchased from wholesale suppliers. The overall actual percentages of purchased water for the six months ended June 30, 2026 and 2025 were 43.0% and 41.6%, respectively.
Current report — wording carried from elsewhere
Effective January 1, 2025, GSWC transitioned from a full cost balancing account for water supply known as the MCBA to an incremental cost balancing account (“ICBA”) for supply costs. The ICBA does not include the impact from changes in water supply source mix compared to the adopted mix incorporated in the revenue requirement, but allows GSWC to track differences between the authorized per-unit prices of water production costs and actual per-unit prices of water production costs. Without the MCBA mechanism in place there may be volatility to Registrant’s earnings as a result of changes in water supply source mix. As of June 30, 2026, the balances recorded in the ICBA were not significant.
Current report — wording carried from elsewhere
Supply costs for the water segment consist of purchased water, purchased power for pumping, groundwater production assessments and changes in the water supply cost balancing accounts. For the six months ended June 30, 2026 and 2025, water supply costs consisted of the following amounts (in thousands):
Current report — wording carried from elsewhere
Supply costs for the electric segment consist primarily of purchased power for resale, the cost of natural gas used by BVES’s generating unit, the cost of renewable energy credits and changes in the electric supply cost balancing account. For the six months ended June 30, 2026 and 2025, electric supply costs consisted of the following amounts (in thousands):
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, the cost of power purchased for resale to BVES’s electric customers decreased to $7.6 million as compared to $9.5 million during the same period in 2025 largely because of lower customer usage and lower overall average prices per megawatt-hour including fixed costs. The change in the electric supply cost balancing account during the six months ended June 30, 2026 compared to the same period in 2025 was also due to lower customer usage.
Current report — wording carried from elsewhere
The primary components of other operation expenses include payroll costs, materials and supplies, chemicals and water treatment costs and outside-services costs of operating the regulated water systems, including the costs associated with water transmission and distribution, pumping, water quality, meter reading, billing, and operations of district offices and the electric system. Registrant’s contracted services operations incur many of the same types of expenses. For the six months ended June 30, 2026 and 2025, other operation expenses by business segment consisted of the following (dollar amounts in thousands):
Current report — wording carried from elsewhere
Administrative and general expenses include payroll costs related to administrative and general functions, all employee-related benefits, insurance expenses, outside legal and consulting fees, regulatory-utility-commission expenses, expenses associated with being a public company and general corporate expenses charged to expense accounts. For the six months ended June 30, 2026 and 2025, administrative and general expenses by business segment, including AWR (parent), consisted of the following (dollar amounts in thousands):
Current report — wording carried from elsewhere
For the six months ended June 30, 2026 and 2025, depreciation and amortization by business segment consisted of the following (dollar amounts in thousands):
Current report — wording carried from elsewhere
Overall depreciation and amortization expense increased largely due to capital additions to utility plant and other fixed assets placed in service.
Current report — wording carried from elsewhere
For the six months ended June 30, 2026 and 2025, maintenance expense by business segment consisted of the following (dollar amounts in thousands):
Current report — wording carried from elsewhere
For the six months ended June 30, 2026 and 2025, property and other taxes by business segment consisted of the following (dollar amounts in thousands):
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, construction expenses for contracted services were $34.1 million, an increase of $8.3 million compared to the same period in 2025, primarily resulting from an increase in new construction activities during 2026.
Current report — wording carried from elsewhere
AWR’s borrowings consist of bank notes under revolving credit facilities, while GSWC and BVES borrowings consist of revolving credit facilities and long-term debt issuances. Interest expense at the water segment increased as compared to the same period in 2025 due primarily to the impact of capitalizing debt costs in 2025 related to certain advice letter projects approved in the latest water general rate case, with no similar item in 2026; partially offset by decreases in overall borrowing levels and average interest rates. Interest expense at the electric segment increased as compared to the same period in 2025 due primarily to lower AFUDC recognized in 2026, together with an increase in interest expense from higher average borrowing levels. During 2025, BVES recognized higher levels of AFUDC related to certain advice letter projects approved by the CPUC in the latest general rate case that was recorded in 2025. The interest expense at the contracted services segment decreased as compared to the same period in 2025 resulting primarily from lower average borrowing levels and lower interest rates. The interest expense at AWR (parent) decreased as compared to the same period in 2025 resulting primarily from lower average interest rates, partially offset by higher average borrowings. The overall combined average interest rates were 5.02% and 5.12% for the six months ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
For the six months ended June 30, 2026 and 2025, interest income by business segment, including AWR (parent), consisted of the following (dollar amounts in thousands):
Current report — wording carried from elsewhere
The decreases in interest income at both the water and electric segment when compared to the same period in 2025 is largely due to decreases in interest income earned on regulatory assets. Regulatory asset balances will decrease as surcharges are approved and implemented. As a result of receiving final CPUC decisions in early 2025 for both the water and electric general rate cases, surcharges were implemented during 2025 to recover balances previously tracked in CPUC-authorized balancing and memorandum accounts.
Current report — wording carried from elsewhere
For the six months ended June 30, 2026 and 2025, other income and (expenses), net by business segment, including AWR (parent), consisted of the following (dollar amounts in thousands):
Current report — wording carried from elsewhere
For the six months ended June 30, 2026 and 2025, income tax expense by business segment, including AWR (parent), consisted of the following (dollar amounts in thousands):
Current report — wording carried from elsewhere
Net cash used by financing activities was $1.8 million for the six months ended June 30, 2026 as compared to $15.7 million net cash provided for the same period in 2025. The decrease in net cash provided by financing activities was due primarily to a decrease in total capital (debt and equity) raised and needed in 2026 as compared to 2025 due, in large part, to an increase in cash flows from operating activities and decrease in GSWC's capital expenditures.
Current report — wording carried from elsewhere
Water General Rate Case for the years 2028–2030
Current report — wording carried from elsewhere
Electric General Rate Case for the Years 2027–2030
Current report — wording carried from elsewhere
On January 30, 2026, BVES filed a new general rate case application that will determine new electric rates for the years 2027 through 2030. Among other things, BVES requested (i) capital budgets of approximately $133 million for the four-year rate cycle, and another approximately $17 million, plus AFUDC, for capital projects to be filed for revenue recovery through advice letters when the projects are completed, and (ii) a capital structure for BVES of 60% equity and 40% debt, a return on equity of 11.30%, an embedded cost of debt of 5.92%, and a return on rate base of 9.15%.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
General Rate Case for the Years 2027–2030
Previous report — wording carried elsewhere
In addition, financing activities in 2025 included the issuance of long-term debt of $50.0 million by BVES with a large portion of the proceeds used to pay down outstanding borrowings under its credit facility. During the three months ended March 31, 2026, AWR did not issue any long-term debt and had net payments on its credit facilities of $9.0 million. Credit facilities have been used to support its operations and ongoing capital expenditure programs.