SJW (SJW) - 2024 Q2 - Quarterly Report

Financial Performance - SJW Group's consolidated net income for Q2 2024 increased by $2,410 (13%) to$ 20,696 compared to $18,286 in Q2 2023[122] - Total operating revenue for Q2 2024 increased by 12% to$ 176,174, driven by a 7% rate increase and 1% customer growth in Water Utility Services[122][124] - Water Utility Services revenue for Q2 2024 increased by $19,927 (13%) to$ 175,397 compared to $155,470 in Q2 2023[122] - Real Estate Services revenue decreased by$ 639 to $777 in Q2 2024 compared to$ 1,416 in Q2 2023[124] - Total operating expenses increased by 8% to $135,604 in Q2 2024, primarily due to a 7% increase in water production expenses[125] - SJW Group generated$ 100,500 in cash flow from operating activities in H1 2024, a $3,100 increase compared to H1 2023[136] - SJW Group's net cash provided by financing activities increased by$ 2,400 in H1 2024, driven by higher net borrowings on lines of credit[138] Water Utility Services - SJW Group serves approximately 403,000 water connections and 4,000 wastewater connections, covering a population of over 1.5 million[115] - SJWC's water supply consists of 40-50% purchased water, 40-50% groundwater, and 6-8% surface water in normal rainfall years[126] - The company's water sales are seasonal, with higher revenue in warm, dry summer months and lower revenue in winter months[121] - Water production expenses increased by $8,584 in Q2 2024 and$ 13,359 in H1 2024, driven by higher unit costs for purchased water and groundwater extraction[131] - Water Utility Services' estimated utility capital expenditures for 2024 are $332,000, with$ 158,400 (48%) invested as of June 30, 2024[137] - Water Utility Services plans $1,621,000 in capital expenditures over the next five years for pipe and main replacements, water system maintenance, and PFAS treatment[137] Water Supply and Storage - California State Water Project allocation increased from 15% to 30% in Q1 2024 and further to 40% in Q2 2024, while Central Valley Project allocation increased from 65% to 75% in Q1 2024[128] - Valley Water's 10 reservoirs were at 34% capacity (91% of restricted capacity) with 18.6 billion gallons of water in storage as of July 1, 2024[128] - SJWC's Lake Elsman was at 98.1% capacity with 2.0 billion gallons of water, 173.8% of the five-year seasonal average as of June 30, 2024[128] - SJWC's Montevina Water Treatment Plant treated 2.2 billion gallons of water in H1 2024, 140% of the five-year average[128] - SJWC's unaccounted-for water decreased to 7.4% in June 2024 from 10.1% in June 2023[130] Credit and Financing - Syndicated credit agreement total line limit is$ 300,000, with $170,000 outstanding and$ 130,000 unused[142] - CTWS credit agreement has a total line limit of $50,000, with$ 47,495 outstanding and $2,505 unused[142] - SJW Group's total credit agreements amount to$ 350,000, with $217,495 outstanding and$ 132,505 unused[142] Market and Operational Risks - SJW Group is exposed to market risks, including interest rate changes, pension plan asset values, and equity prices[83] - SJW Group's pension and post-retirement costs are influenced by factors such as discount rates, mortality rates, and investment returns[83] - SJW Group does not hold derivative financial instruments or financial instruments with significant off-balance sheet risks[83] Real Estate Services - SJW Land Company completed the sale of its Tennessee properties in Q2 2024[118]