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    Jonathan Reeder

    Research Analyst at Wells Fargo Securities

    Jonathan Reeder is an Equity Analyst at Wells Fargo Securities, specializing in coverage of the Utilities sector with active coverage of specific companies including American States Water Company (AWR) and American Water Works (AWK). He has published over 330 price targets and ratings across 14 stocks, maintaining a price target achievement rate of 49.1% with an average price target upside of 17.59% realized within 290 days. Reeder began his career with A.G. Edwards & Sons as a Research Associate before joining Wells Fargo Securities in 2007, and holds a bachelor's degree from the University of Notre Dame. He is FINRA registered and licensed as a broker, demonstrating strong professional credentials and recognition for high-performing stock recommendations in the utilities sector.

    Jonathan Reeder's questions to CALIFORNIA WATER SERVICE (CWT) leadership

    Jonathan Reeder's questions to CALIFORNIA WATER SERVICE (CWT) leadership • Q2 2025

    Question

    Jonathan Reeder from Wells Fargo Securities asked for clarification on recent shifts in the CapEx forecast, whether the Silverwood project investment is incremental, and for an update on the water decoupling bill (SB 473) in the California legislature.

    Answer

    SVP & CFO James Lynch confirmed that the CapEx shifts were primarily timing-related and that the estimated $60-$70 million for the Silverwood project is incremental to the current budget. Chairman, President, & CEO Martin Kropelnicki provided a detailed update on SB 473, noting it passed the Senate 37-0, is now in the Assembly appropriations committee, and aims to mandate full decoupling for water utilities, with strong support despite minor opposition.

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    Jonathan Reeder's questions to CALIFORNIA WATER SERVICE (CWT) leadership • Q2 2025

    Question

    Jonathan Reeder from Wells Fargo Securities asked about the reasons for shifts in the CapEx forecast, whether the Silverwood project investment is incremental, and for details on the water decoupling bill (SB 473) in the California legislature.

    Answer

    SVP, CFO & Treasurer James Lynch clarified that CapEx shifts were minor timing adjustments and the overall plan is unchanged. Chairman, President, and CEO Martin Kropelnicki confirmed the Silverwood investment is incremental to the current budget. Mr. Kropelnicki then provided a detailed update on SB 473, noting it passed the Senate 37-0 and is now in the Assembly appropriations committee, with the main opposition being the California Advocates over a disputed $1 million cost increase.

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    Jonathan Reeder's questions to CALIFORNIA WATER SERVICE (CWT) leadership • Q2 2025

    Question

    Jonathan Reeder from Wells Fargo Securities asked about the drivers behind a shift in the capital expenditure forecast and whether the new Silverwood project investment is included. He also requested an update on the status and prospects of the water decoupling bill (SB 473) in the California legislature.

    Answer

    SVP, CFO & Treasurer James Lynch clarified that the CapEx forecast shift was due to general timing adjustments and that the Silverwood project spending is incremental to the current budget. Chairman, President, & CEO Martin Kropelnicki added that the board had just approved the Silverwood expenditures. Kropelnicki then provided a detailed update on SB 473, noting it has strong bipartisan support and has passed the Senate, with the only opposition citing a minor increase in commission operating costs. He expects it to be taken up again in the fall.

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    Jonathan Reeder's questions to CALIFORNIA WATER SERVICE (CWT) leadership • Q2 2025

    Question

    Jonathan Reeder from Wells Fargo Securities asked for clarification on shifts in the multi-year CapEx forecast, questioning if it included new investments like the Silverwood project. He also requested an update on the status and legislative support for the water decoupling bill (SB 473) in California.

    Answer

    SVP, CFO & Treasurer James Lynch confirmed the Silverwood project spending is incremental to the current budget and that other shifts in the CapEx plan were primarily related to timing. Chairman, President, and CEO Martin Kropelnicki added that the board had just approved the Silverwood expenditures. Kropelnicki then provided a detailed update on SB 473, noting it passed the Senate and an Assembly committee with zero opposition and is now in the appropriations committee, with the only stated opposition coming from California Advocates over a minor cost concern.

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    Jonathan Reeder's questions to CALIFORNIA WATER SERVICE (CWT) leadership • Q2 2025

    Question

    Jonathan Reeder from Wells Fargo Securities asked for clarification on recent shifts in the CapEx forecast, whether the new Silverwood project investment is included, and the status of the water decoupling bill (SB 473) in the California legislature.

    Answer

    SVP, CFO & Treasurer James Lynch clarified that the CapEx shifts were minor timing adjustments and confirmed the Silverwood investment is incremental to the current budget. Chairman, President, & CEO Martin Kropelnicki added that the board had just approved the Silverwood expenditures. Kropelnicki also provided a detailed update on the water decoupling bill, highlighting its strong bipartisan support and its current position awaiting review by the appropriations committee.

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    Jonathan Reeder's questions to CALIFORNIA WATER SERVICE (CWT) leadership • Q1 2025

    Question

    Jonathan Reeder of Wells Fargo asked for more detail on the drivers behind the better-than-expected Q1 results, whether a global GRC settlement is still possible, and the status of renewing the company's At-The-Market (ATM) equity program.

    Answer

    Chairman and CEO Martin Kropelnicki and executive James Lynch attributed the strong Q1 to a combination of factors, including disciplined budget management, a more accurate water mix in the current rate case, and the significant positive impact of a $27.2 million step increase in rates. Regarding the GRC, Kropelnicki conceded a global settlement is now less likely but the process remains on schedule, while Lynch noted that significant disagreements on decoupling and capital spending were major hurdles. Lynch also confirmed the company intends to renew its ATM program soon, likely in early spring, with the size still under review.

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    Jonathan Reeder's questions to CALIFORNIA WATER SERVICE (CWT) leadership • Q4 2024

    Question

    Jonathan Reeder from Wells Fargo Securities inquired about the potential for a settlement in the 2024 General Rate Case (GRC), future annual equity needs to support capital expenditures, plans for expanding into the water business in Texas, and clarification on the net income impact from the delayed 2021 GRC decision.

    Answer

    Greg Milleman, VP of Rates and Regulatory Affairs, expressed optimism about reaching a settlement in the GRC, noting discussions are scheduled for April. CEO Martin Kropelnicki added that their risk-based capital plan strengthens their position. Executive James Lynch clarified that future equity issuance will be opportunistic to maintain the capital structure and that the company is currently overequitized. Kropelnicki confirmed plans to enter the Texas water market by 2026 through a public-private pipeline partnership. Lynch also affirmed that a ~$1.10 per share retroactive benefit from the GRC is the more accurate figure to use for normalization.

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    Jonathan Reeder's questions to CALIFORNIA WATER SERVICE (CWT) leadership • Q3 2024

    Question

    Jonathan Reeder inquired about the implications of the CPUC's recent decision to hold a peer's rate case on decoupling, the potential for a reduction in the water utilities' 2025 ROE, the reconciliation of the company's actual versus authorized capital structure, and the potential CapEx impact from the EPA's finalized lead and copper rule.

    Answer

    Greg Milleman, VP of Rates and Regulatory Affairs, stated it was too early to determine the outcome of the peer's rate case. Chairman and CEO Martin Kropelnicki added that Cal Water's proposal is unique, focusing on conservation and affordability for low-income customers. Kropelnicki and executive James Lynch expressed confidence that the 10.27% ROE for 2025 is secure, noting the water industry's circumstances differ from energy. Lynch clarified the presented capital structure is the current actual, which is being managed toward the authorized level, citing a recent $125 million debt issuance. Kropelnicki concluded the lead and copper rule is not a major financial issue for their service areas.

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    Jonathan Reeder's questions to American Water Works Company (AWK) leadership

    Jonathan Reeder's questions to American Water Works Company (AWK) leadership • Q2 2025

    Question

    Jonathan Reeder of Wells Fargo Securities, LLC asked for more detail on the M&A landscape in Pennsylvania, questioning if the recent fair market value deals are the 'tip of the iceberg.' He also requested clarification on a California decoupling bill, including its specific goals and current legislative status.

    Answer

    EVP & COO Cheryl Norton described the Pennsylvania deals as long-lead-time projects and confirmed the company expects more acquisition opportunities. President & CEO John Griffith added that this M&A momentum is broad-based across their entire footprint. Regarding California, management clarified the bill aims to mandate full decoupling and detailed its path from the Appropriations Committee to the full legislature and then the Governor's desk.

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    Jonathan Reeder's questions to American Water Works Company (AWK) leadership • Q2 2025

    Question

    Jonathan Reeder of Wells Fargo Securities inquired about the M&A landscape in Pennsylvania, particularly regarding the resumption of fair market value deals, and asked for clarification on a California decoupling bill's legislative goals and current status.

    Answer

    EVP & COO Cheryl Norton explained that recent Pennsylvania deals are long-lead-time transactions and that the company expects more M&A activity, utilizing new commission guidelines for a smoother process. President & CEO John Griffith added that M&A momentum is broad-based across their entire platform. Regarding the California bill, EVP & CFO David Bowler clarified it has passed the Appropriations Committee and now moves to the full legislature.

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    Jonathan Reeder's questions to American Water Works Company (AWK) leadership • Q4 2024

    Question

    Jonathan Reeder asked if a settlement in the pending Missouri rate case is expected before hearings begin and whether the company is seeing a trickle-down effect from broader economic development, such as AI and data centers, leading to higher customer growth.

    Answer

    President John Griffith confirmed that based on past experience, the company's expectation is to reach a settlement in the Missouri rate case before hearings. On economic development, he characterized the impact as a 'trickle in,' noting that data centers are more power-hungry than water-hungry, but the company is seeing some opportunities for infrastructure build-out.

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    Jonathan Reeder's questions to H2O AMERICA (HTO) leadership

    Jonathan Reeder's questions to H2O AMERICA (HTO) leadership • Q2 2025

    Question

    Jonathan Reeder from Wells Fargo Securities asked for clarification on new regulatory mechanisms, seeking details on the Connecticut PFAS recovery mechanism's effective date and approval process, and questioning if the new Texas hybrid/future test year law could face contention during rate cases.

    Answer

    President & COO Bruce Hauk confirmed the Connecticut PFAS mechanism allows for forward-looking recovery of capital spent, not just for in-service projects, with filings to begin in early 2026. CEO Andrew Walters added this helps reduce rate shock for customers. Regarding the Texas law, Bruce Hauk explained that while the law allows the utility to choose its filing path (historic, future, or hybrid), the specific procedures will be established through a PUCT rulemaking process starting in September.

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    Jonathan Reeder's questions to H2O AMERICA (HTO) leadership • Q2 2025

    Question

    Jonathan Reeder from Wells Fargo Securities asked for clarification on the new Connecticut PFAS recovery mechanism, including its effective date for CapEx recovery and the expected approval timeline. He also questioned the new Texas hybrid/future test year law, asking if its adoption by the Public Utility Commission of Texas (PUCT) could be a point of contention in future rate cases.

    Answer

    President & COO Bruce Hauk and CEO & Director Andrew Walters explained that the Connecticut PFAS mechanism allows for forward-looking recovery of capital spent (not just for in-service projects) starting in early 2026, with a review process similar to the existing WICA mechanism. Regarding the Texas law, Bruce Hauk clarified that while the law allows the utility to choose its test year type, the specific procedures will be established through a PUCT rulemaking process starting in September.

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    Jonathan Reeder's questions to H2O AMERICA (HTO) leadership • Q2 2025

    Question

    Jonathan Reeder from Wells Fargo Securities asked for clarification on the new Connecticut PFAS recovery mechanism, including its effective date and the approval process, and also inquired about the new Texas law allowing for a future or hybrid test year, questioning if its use could be a point of contention in rate cases.

    Answer

    President & COO Bruce Hauk and CEO Andrew Walters explained that the Connecticut PFAS mechanism allows for forward-looking recovery of capital spent, not just for in-service projects, effective July 1, 2025, with the first filing expected in early 2026. Bruce Hauk also clarified that the new Texas law gives the utility the option to choose its test year (historic, future, or hybrid) and that a rulemaking process will establish the specific procedures, which will begin in September.

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    Jonathan Reeder's questions to H2O AMERICA (HTO) leadership • Q2 2025

    Question

    Jonathan Reeder from Wells Fargo Securities asked for clarification on the new Connecticut PFAS recovery mechanism, specifically its effective date and approval process, and inquired about the new Texas hybrid/future test year law, questioning if its use could be a point of contention or if it's mandatory for the commission to adopt.

    Answer

    President & COO Bruce Hauk and CEO & Director Andrew Walters explained that the Connecticut PFAS mechanism allows for forward recovery of capital spent, not just in-service assets, with the first filing expected in early 2026. Regarding the Texas law, Bruce Hauk clarified that while the law allows for a future or hybrid test year, a rulemaking process will establish the specific procedures, and it will be the applicant's choice which path to file under.

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    Jonathan Reeder's questions to H2O AMERICA (HTO) leadership • Q2 2025

    Question

    The analyst asked for clarification on the new Connecticut PFAS recovery mechanism, specifically regarding the effective date for CapEx recovery and the expected approval process. He also inquired about the new Texas law allowing for a future or hybrid test year, asking if its use is mandatory for the commission to accept or if it could be a point of contention in rate cases.

    Answer

    The company confirmed that the Connecticut PFAS mechanism allows for forward recovery of capital spent (not just for completed projects) after the effective date, with a filing in early 2026 and a review process of a few months. Regarding the Texas law, they explained that while the law allows the applicant to choose a future or hybrid test year, the specific procedures will be determined through a rulemaking process with the PUCT starting in September. The choice of test year remains with the applicant, as permitted by the new law and its subsequent rules.

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    Jonathan Reeder's questions to HAWAIIAN ELECTRIC INDUSTRIES (HE) leadership

    Jonathan Reeder's questions to HAWAIIAN ELECTRIC INDUSTRIES (HE) leadership • Q1 2025

    Question

    Jonathan Reeder of Wells Fargo questioned if the allowed ROE and equity ratio would be re-evaluated in the rate case, why the legislature deferred the liability cap decision to the PUC, and the Governor's position on the matter.

    Answer

    Hawaiian Electric President and CEO Shelee Kimura confirmed that the allowed ROE and equity ratio will be re-evaluated in their upcoming filing. HEI President and CEO Scott W. Seu explained the legislature deferred to the PUC to allow for a more robust and technical rulemaking process, not as a punt. He added that the process provides an opportunity for the Governor to weigh in after the PUC completes its work.

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    Jonathan Reeder's questions to HAWAIIAN ELECTRIC INDUSTRIES (HE) leadership • Q3 2024

    Question

    Jonathan Reeder of Wells Fargo asked if the definitive settlement agreement contained terms that were materially different from the prior agreement in principle and sought clarification on the drivers behind the substantial increase in utility O&M expenses.

    Answer

    President and CEO Scott W. Seu confirmed that the terms of the definitive settlement agreement were consistent with the agreement in principle. Hawaiian Electric CFO Paul Ito explained that the higher O&M was driven by both onetime items, such as a $2.6 million after-tax settlement administration fee and a $2.6 million state indemnification claim, as well as ongoing costs like accelerated wildfire mitigation inspections and higher insurance premiums.

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    Jonathan Reeder's questions to AMERICAN STATES WATER (AWR) leadership

    Jonathan Reeder's questions to AMERICAN STATES WATER (AWR) leadership • Q1 2025

    Question

    Jonathan Reeder of Wells Fargo Securities inquired about American States Water's full-year equity issuance plans and sought a detailed update on the ASUS segment's military base privatization pipeline, including the impact of the political environment and the nature of nontraditional contracts.

    Answer

    Executive Eva Tang clarified that while ~$60 million in equity issuance for 2025 is a target, the final amount will be reassessed, with a total of ~$85 million planned over the next two years to complete the current cycle's funding. Executive Robert Sprowls provided a comprehensive overview of the military privatization landscape, noting no 50-year awards are expected in 2025. He detailed that the Army may release new privatizations later in the year, the Air Force is lagging, and the Navy remains the most active. Sprowls also highlighted the company's experience with newer, shorter-term 15-year contracts as a potential competitive advantage.

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    Jonathan Reeder's questions to AMERICAN STATES WATER (AWR) leadership • Q4 2024

    Question

    Jonathan Reeder of Wells Fargo Securities inquired about the allocation of the Q4 retroactive electric GRC earnings benefit between 2023 and 2024, whether 2024's strong operating cash flow is a sustainable proxy for 2025, and the company's 2025 issuance plans for its at-the-market (ATM) equity program.

    Answer

    Executive Robert Sprowls and CFO Eva Tang explained that the majority of the retroactive EPS benefit was attributable to 2024, a result of structuring the GRC settlement to mitigate a large first-year rate impact on customers. Eva Tang confirmed that 2024's operating cash flow of nearly $200 million is a reasonable proxy for 2025. She also stated the company plans to issue approximately $60 million in equity under its ATM program in 2025.

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    Jonathan Reeder's questions to AMERICAN STATES WATER (AWR) leadership • Q3 2024

    Question

    Jonathan Reeder inquired about the pro forma 2024 earnings power of the Bear Valley electric segment under its proposed GRC settlement, the timing for recognizing retroactive gains, the drivers behind the record increase in ASUS capital awards, and the reasons for the updated 2024 ASUS guidance.

    Answer

    Executive Robert Sprowls explained the combined 2023-2024 EPS impact from the Bear Valley GRC is estimated at $0.05-$0.07. He noted the record $54 million in ASUS capital awards was due to government funding and strong relationships, but it's too early to call it a new normal. He also detailed that the 2024 ASUS guidance was raised due to favorable construction conditions and strong performance from new bases. Executive Eva Tang added that the long runway for ASUS projects allows for better planning and that a final GRC decision before the 10-K filing would allow for booking the impact in 2024.

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    Jonathan Reeder's questions to SJW leadership

    Jonathan Reeder's questions to SJW leadership • Q4 2024

    Question

    Inquired about the process for selecting the next CFO, details on the KT Water project in Texas including cost and recovery, and the anticipated timing for the next Connecticut rate case.

    Answer

    The company has a strong internal bench for the next CFO and will work with the board on the selection process. The KT Water project is a ~$130M+ investment to bring a new 6,000 acre-foot water supply online by the end of 2026, with cost recovery planned through a future general rate case. The next Connecticut rate case is expected to be filed around Q2 2026, following their typical three-year cycle.

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    Jonathan Reeder's questions to SJW leadership • Q3 2024

    Question

    Asked about the influence of local Connecticut politics on the Aquarion sale, the risk of a California ROE reduction similar to what energy utilities experienced, the strategy for the 2025 cost of capital filing, and the CapEx impact of the new EPA lead and copper rule.

    Answer

    Executives believe local tax revenue concerns in Connecticut regarding the Aquarion sale are consequential but not determinative. They see no current indication of a similar ROE reduction for water utilities in California and expect the cost of capital mechanism to function as designed. They will likely file a new cost of capital case in 2025. The lead and copper rule will increase CapEx, which will be detailed in the next quarter's forecast, and they are focused on affordability to mitigate customer impact.

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    Jonathan Reeder's questions to SJW leadership • Q2 2024

    Question

    Asked about the drivers of lower A&G expenses, the outlook for the second half of the year relative to guidance, the impact of a recent court ruling on decoupling in California, and the status of the Aquarion acquisition opportunity.

    Answer

    The lower A&G expense was driven by a release in the allowance for uncollectibles following state arrearage relief. While H1 performance was strong, the company is managing inflationary pressures and is not raising guidance. They view the court ruling on decoupling favorably but will watch how peers proceed. They are excited about the Aquarion opportunity but cannot comment on specifics due to confidentiality.

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    Jonathan Reeder's questions to NorthWestern Energy Group (NWE) leadership

    Jonathan Reeder's questions to NorthWestern Energy Group (NWE) leadership • Q4 2024

    Question

    Jonathan Reeder asked for details on the Montana rate case settlement process, the prospects for key utility-related legislation, and the specific drivers of the increased 5-year capital expenditure plan.

    Answer

    CFO Crystal Lail outlined the rate case timeline, with settlement negotiations occurring in March ahead of a March 24 deadline. CEO Brian Bird identified bills to reduce strict liability and ensure timely recovery for transmission investments as top legislative priorities. CFO Crystal Lail clarified the $2.7 billion CapEx plan increase is driven by foundational electric and gas system renewal and refresh projects, and does not yet include spending for the prospective data centers, which is considered incremental.

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    Jonathan Reeder's questions to Essential Utilities (WTRG) leadership

    Jonathan Reeder's questions to Essential Utilities (WTRG) leadership • Q3 2024

    Question

    Jonathan Reeder asked if the $73 million water rate increase would be implemented all at once, questioned why the 2025 EPS guidance wasn't higher given new rates, requested a CapEx breakdown between water and gas, and inquired about the impact of a recent drought watch in Pennsylvania.

    Answer

    CFO Daniel Schuller and CEO Christopher Franklin responded. Schuller confirmed the rate increase is effective all at once in February and detailed several O&M headwinds for 2025, including higher purchased power costs, new PFAS-related chemical expenses, and rising insurance costs. He described the $7.8B 5-year CapEx as 'close to 50-50' but slightly biased toward water. Franklin stated the drought watch is not a major concern for water supply or company revenue.

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    Jonathan Reeder's questions to Essential Utilities (WTRG) leadership • Q2 2024

    Question

    Jonathan Reeder from Wells Fargo questioned the Board's decision to increase the dividend by 6%, a break from the recent 7% trend. He also sought clarification on whether the year-to-date weather headwind included lower water volumes and the reasons behind those lower volumes.

    Answer

    CFO Daniel Schuller explained the 6% dividend increase was a strategic move to moderate the dividend payout ratio and keep it below the company's 65% target. He clarified the $0.08 weather headwind was exclusive to the gas business and attributed lower Q2 water volumes partly to a meter-read cycle timing issue that is expected to reverse in Q3, as well as a difficult comparison to unusually high volumes in the prior year.

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