The company faces risks from regulatory decisions (rate changes, approvals), customer demand fluctuations, water supply limitations, litigation outcomes (including class actions), aging infrastructure, cyberattacks, and potential insurance issues. Acquisitions and divestitures also present risks, including integration challenges and regulatory hurdles. Economic conditions, inflation, interest rates, and tax legislation pose further risks. The company's ability to recover costs through rates is also uncertain.
Financial Upside
The company anticipates increased revenues from new rate implementations, acquisitions, and organic growth. Capital investments in infrastructure and regulated acquisitions are planned, potentially boosting future earnings. Favorable weather conditions and interest income from the amended secured seller note are also positive factors. The company expects to fund future capital investments through a combination of debt and equity.
