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  "documentTitle": "Essential Utilities, Inc. (WTRG)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-03-08 00:00:00",
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      "text": "In 2012, Aqua Pennsylvania adopted an income tax accounting method change... In the fourth quarter of 2022, the Company made a similar change for its Aqua New Jersey subsidiary...",
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      "text": "There is ample evidence that WTRG’s financial policies are aggressive. Look no further than its income tax accounting.",
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      "text": "Income Tax Word Count: 136",
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      "text": "There is ample evidence that WTRG's financial policies are aggressive. Look no further than its income tax accounting. It changed its tax accounting policies three times: 2012, 2020 and Q4 2022. WTRRG even lists tax judgments as a risk factor, which is an unusual disclosure in its industry. The words “income tax” appear 136 times in its recent 10-K (193 in the prior year).",
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      "text": "In 2012, Aqua Pennsylvania adopted an income tax accounting method change, implemented on Essential Utilities' 2012 federal income tax return. This accounting method change allows a tax deduction for qualifying utility asset improvements that were formerly capitalized for tax purposes, and was implemented in response to a June 2012 rate order issued by the Pennsylvania Public Utility Commission.....On March 31, 2020, the Company changed the method of tax accounting for certain qualifying infrastructure investments at its Peoples Natural Gas subsidiary, its largest natural gas subsidiary in Pennsylvania. In March 2020 and June 2022, the Company completed the Peoples Gas Acquisition. In March 2020 and June 2022, the Company changed the method of tax accounting for certain qualifying infrastructure investments at its Peoples Natural Gas and Peoples Gas subsidiaries, respectively. In the fourth quarter of 2022, the Company made a similar change for its Aqua New Jersey subsidiary, beginning with the current tax year. This change allows a tax deduction for qualifying utility asset improvement costs that were formerly capitalized for tax purposes. — Essential Utilities 10-K",
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      "text": "Source: WTRG 10-K, AWK 10-K, AWR 10-K, YORW 10-K, CWT 10-K, MSEX 10-K, SJW 10-K",
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      "text": "Aggressive Income Tax",
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