Overview Key strengths Key risks Predominantly low-risk, regulated water utility operations. Limited size and customer base. Effective management of regulatory risk and use of various regulatory mechanisms in multiple jurisdictions. Negative discretionary cash flow indicates external funding needs. Largely residential and commercial customer base provides stable cash flow. We expect SJW Group (SJWG) to effectively manage its regulatory risk through the use of various regulatory mechanisms across its multiple jurisdictions. The company's regulatory risk management reflects the credit-supportive mechanisms it uses across multiple jurisdictions, including forward-test years, decoupling, and various balancing accounts that track and recover its costs, all of which promote generally stable revenue and cash flow. The stable outlook on SJWG reflects our expectation that it will continue
