|Over a week ago|
American States Water: CPUC approves deferral for cost of capital application » 09:0403/1303/13/20
American States Water…
American States Water announced that on March 11, the California Public Utilities Commission, or CPUC, approved a request to defer the cost of capital application by one year for AWR's wholly owned subsidiary, Golden State Water Company, or GSWC. GSWC was scheduled to file its next cost of capital application on May 1. In January, GSWC, along with three other investor-owned California water utilities, requested an extension of the date by which each of them must file its 2020 cost of capital applications. The CPUC's approval postponed this filing date by one year until May 1, 2021, with a corresponding effective date of January 1, 2022. The CPUC also approved the joint parties' request to leave the current Water Cost of Capital Mechanism in place, but there will be no changes to the companies' rate of return on rate base during the one-year extension, regardless of what the mechanism might otherwise indicate. GSWC's current authorized rate of return on rate base is 7.91%, based on its weighted cost of capital, which will continue in effect through December 31, 2021. The 7.91% return on rate base includes a return on equity of 8.9%, an embedded cost of debt of 6.6%, and a capital structure with 57% equity and 43% debt.
American States Water upgraded to Equal Weight from Underweight at Wells Fargo » 05:3003/1103/11/20
Wells Fargo analyst…
Wells Fargo analyst Jonathan Reeder upgraded American States Water to Equal Weight from Underweight with a price target of $84, down from $87. The analyst cites valuation for the upgrade following the recent underperformance of the shares. For much of 2019, shares of American States Water commanded roughly 25% price-to-earnings premiums to the water utility median, but that premium is now roughly 10%, Reeder tells investors in a research note.
American States Water upgraded to Buy from Neutral at Janney Montgomery Scott » 05:5103/0403/04/20
Janney Montgomery Scott…
Janney Montgomery Scott analyst Michael Gaugler upgraded American States Water to Buy from Neutral with an unchanged price target of $93. The recent market pullback creates an opportunity to buy the shares, Gaugler tells investors in a research note.
|Over a month ago|
American States Water price target raised to $87 from $78 at Wells Fargo » 08:4002/2602/26/20
Wells Fargo analyst…
Wells Fargo analyst Jonathan Reeder raised his price target for American States Water to $87 from $78 following the company's year end 2019 update. The analyst reiterates an Underweight rating as he believes the shares' total return will continue to lag peers due to further relative multiple compression.
American States Water reports Q4 EPS 45c, consensus 38c » 16:4602/2402/24/20
Reports Q4 revenue…
Reports Q4 revenue $112.99M, consensus $117M.
|Over a quarter ago|
American States Water reports Q3 EPS 76c, consensus 70c » 16:4011/0411/04/19
Reports Q3 revenue…
Reports Q3 revenue $134.5M, consensus $135.0M. The company said, "In August 2019, the California Public Utilities Commission issued a final decision on the electric general rate case of AWR's regulated utility, Golden State Water Company, which set new rates for 2018 through 2022. Since the new rates were retroactive to January 1, 2018, the impact of the new electric rates for the first six months of 2019 and for all of fiscal 2018 amounted to $0.07 per share, and is reflected in the results for the third quarter of 2019. It is shown on a separate line in the table below. Excluding the retroactive impact of the general rate case related to periods prior to the third quarter of 2019, consolidated diluted earnings per share, as adjusted, increased by $0.07 per share, or 11%, compared to the third quarter of 2018."
American States Water announces CPUC decision, approving new GSWC electric rates » 16:4708/1908/19/19
American States Water…
American States Water Company announced that on August 15, 2019, the California Public Utilities Commission approved a settlement agreement resolving all issues in the electric general rate case of AWR's wholly owned subsidiary, Golden State Water Company. GSWC, on behalf of its Bear Valley Electric Service division, had filed a general rate case application in May 2017 to determine new electric rates effective January 1, 2018. In November 2018, BVES and the CPUC's Public Advocates Office filed a joint motion to adopt a settlement agreement between the two parties resolving all issues in connection with the general rate case. The CPUC's final decision approves the settlement agreement in its entirety, which among other things, extends the rate cycle by one year, increases the electric gross margin for 2018 by approximately $2M compared to the 2017 adopted electric gross margin, adjusted for tax reform, and authorizes BVES to construct all the capital projects requested in its application, which are dedicated to improving system safety and reliability and total approximately $44M over the 5-year rate cycle. In addition, the final decision authorizes increases in the adopted electric gross margin of $1.2M for each of the years 2019 and 2020, of $1.1M in 2021, and of $1M in 2022. The rate increases for 2019 - 2022 are not subject to an earnings test. Due to the delay in receiving a final decision by the CPUC, billed electric revenues for all of 2018 and year-to-date for 2019 have been based on 2017 adopted rates. Because the new rates are retroactive to January 1, 2018, the cumulative impact from the rate changes for 2018 and the first six months of 2019 will be recorded during the third quarter of 2019. The cumulative impact includes an increase in pretax income for the electric segment of approximately $2M, or 4c per share, for the full year ended December 31, 2018, and an additional increase in pretax income of $1.7M, or approximately 3c per share, for the first six months of 2019.
American States Water reports Q2 EPS 72c, consensus 56c » 16:3808/0508/05/19
Reports Q2 revenue…
Reports Q2 revenue $124.65M, consensus $117.41M.
American States Water increases quarterly dividend to 30.5c per share » 08:2508/0108/01/19
The board of American…
The board of American States Water approved an increase in the company's Q3 cash dividend from 27.5c per share to 30.5c per share on the common shares of the company. The annualized dividend rate after this increase is $1.22 per share, which represents a 10.9% increase from the current annualized dividend rate of $1.10 per share. Dividends on the common shares will be payable on September 3 to shareholders of record at the close of business on August 15.
American States Water says CPUC approves new water rates » 08:1906/0306/03/19
American States Water…
American States Water announced that on May 30, the California Public Utilities Commission, or CPUC, approved the water general rate case for AWR's wholly owned subsidiary, Golden State Water Company, or GSWC. GSWC had filed a general rate case application in July 2017 for all of its water regions and the general office to determine new rates for the years 2019 - 2021. The new rates approved by the CPUC are retroactive to January 1, 2019. Among other things, the final decision approves a settlement agreement in its entirety that had been entered into in August 2018 between GSWC and the CPUC's Public Advocates Office. As a result, the final decision authorizes GSWC to invest approximately $334.5 million over the rate cycle in order to continue to provide safe and reliable water utility service to its customers. The $334.5 million of infrastructure investment includes $20.4 million of capital projects to be filed for revenue recovery through advice letters when those projects are completed. In April 2019, the assigned Administrative Law Judge had issued a proposed decision approving the settlement agreement with the exception of these advice letter projects. However, in the final decision, the CPUC adopted a revised proposed decision which was modified to approve the initial settlement as filed, including all of the advice letter capital projects agreed to by GSWC and the Public Advocates Office. Excluding the advice letter project revenues, the new rates approved will increase the water gross margin for 2019 by approximately $7.1 million, adjusted for updated inflation index values since the August 2018 settlement, as compared to the 2018 adopted water gross margin. The 2019 water revenue requirement has been reduced to reflect a decrease of approximately $7 million in depreciation expense, compared to the adopted 2018 depreciation expense, due to a reduction in the overall composite depreciation rates based on a revised study filed in the general rate case. The decrease in depreciation expense lowers the water gross margin, and is offset by a corresponding decrease in depreciation expense, resulting in no impact to net earnings. In addition, the 2019 water revenue requirement includes a decrease of approximately $2.2 million for excess deferred tax refunds as a result of the 2017 Tax Cuts and Jobs Act, which has a corresponding decrease in income tax expense and also results in no impact to net earnings. Had depreciation expense remained the same as the 2018 adopted amount and there were no excess deferred tax refunds that lowered the 2019 revenue requirement, the water gross margin for 2019 would have increased by approximately $16.3 million. Due to the delay in receiving a final decision by the CPUC, billed water revenues to date have been based on 2018 adopted rates. Had new rates been in place as of January 1, pretax income for the water segment would have been higher by approximately $4 million, or 8c per share, for the first quarter of 2019. Because the new rates are retroactive to January 1, this cumulative impact will be recorded during the second quarter of 2019. In addition, the final decision approves the recovery of previously incurred costs that were being tracked in CPUC-authorized memorandum accounts, which will result in a reduction to operating expenses of approximately $1 million, or 2c per share, also to be recorded during the second quarter. Excluding the advice letter project revenues, the final decision allows for potential additional water revenue increases in 2020 and 2021 of approximately $9.6 million and $12 million, respectively, subject to the results of an earnings test and changes to the forecasted inflationary index values.