Good morning, everyone.

I want to call to order the joint meeting of the board of directors of citizens energy group and CWA authority.

First item on the agenda is to ask if any board members have identified any action items on the agenda which present a conflict to them.

If so, please refuse yourself.

Hearing none, our next order of business is approval of the minutes of the joint meeting of the board of directors as citizens energy group and CWA authority that was held on May 27th of 2026.

These minutes can be found on page three of the board quarter.

So I have a motion to approve.

Second.

And I have a second.

All those in favor signify the same aye.

Aye.

Any opposed, same sign?

Motion carries.

Our next item is the certification of the topic is discussed at the executive session.

The board of directors of citizens energy group and CWA Authority.

That was also held on May 27th of this year for the purpose of the meetings.

I will certify that the subject discussed during the executive session of the board of directors of Citizens Energy Group and CWA Authority that was held on May 27th.

Was the item specified in the public notice?

Additionally, as reflected in the meeting minutes, the boards discuss the initiation of an administrative law proceeding under any new code.

The next item is the approval of the fuel cost adjustment, FAC 82.

And the resolution describing that adjustment can be found on page 21 of the board portal.

Do I have a motion to approve that?

So move.

And do I have a second?

Second.

All those in favor signify by saying aye.

Aye.

Any opposed?

Thank you.

Motion carries.

Next is the approval of the gas cost adjustment 171.

Then that resolution is on page 22 of the board reportal.

Do I have a motion to approve?

So all those in favor signify by saying aye.

Aye.

Any opposed?

Thank you.

That motion carries.

And we will now move on to a report of the audit and risk committee from Director Jeffrey Good.

Thank you, Madam Chair.

A meeting of the audit and risk committee of the board directors, citizens energy group was held this morning, August 26th.

Sabina Carner, our Vice President Controller, presented the company's financial statements for the third fiscal quarter and in June 30th, 2026, and those financial statements are included in your board material starting on page 23.

Overall combined net income for the quarter was just over 54 million, which was down approximately 3 million from the same period last year.

The large largest component of the decrease was from increased interest and depreciation charges, mostly in wastewater division with the completion of the Deep Rock Tunnel project.

We were uh were no longer capitalizing interest and the depreciation charges have increased.

Uh so that's now hitting our expense.

Uh operation and maintenance costs, especially in the water division also continue to rise year over year.

Among the more significant disclosures in the financial savings were three long-term debt issuances during the quarter for citizens' water, uh, totaling approximately 212 million, as well as an additional 173 million in bonds issued after the balance sheet date.

There are also disclosures in note 10 updating the status of various regulatory matters and other items, including the approval and disclosure of closure of the Whitestown water acquisition.

Finally, uh there was a uh there is a disclosure regarding uh the potential impact of recent flooding on our infrastructure uh which is currently being evaluated that we think uh insurance will cover a large uh portion of the damage that was done, uh but uh that is part of the disclosure in the financial statements.

Uh we then heard a report from our independent auditors, Deloitte Touche.

They have completed the review of the third quarter financial statements and expect to issue a clean report on those statements.

Uh again, I would remind everyone that a quarterly review is less in scope than a than an audit.

Uh with that said, the auditors reported that they there were no difficulties uh on correcting the statements, disagreements with management or or other issues identified during our quarterly review.

So having had that opportunity to review the financial statements and hearing a report from our external auditors, the committee did take action to recommend approval by the board of directors of the fiscal year 2026 third quarter financial statements for citizens energy and CWA board.

We then heard an update on the company's 2026 insurance program from uh Jennifer Bailey and Brandon, uh her team uh presented uh our insurance coverage, and we continue to competitively source our insurance programs with assistance from both local and national brokers.

Uh overall, our major programs continue to be uh competitive with industry peers in terms of coverage limits, retentions and premium costs.

Uh we are continuing to see a general softening and stabilization of rates, retentions, and coverages.

Uh, we did have an overall premium increase of uh approximately 4.8 percent with excess liability and auto coverage being the largest components of that increase.

Uh cyber premiums are essentially flat.