Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 24, 2021 | Jun. 30, 2020 | |
Entity [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-8966 | ||
Entity Registrant Name | SJW GROUP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 77-0066628 | ||
Entity Address, Address Line One | 110 West Taylor Street, | ||
Entity Address, City or Town | San Jose, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95110 | ||
City Area Code | (408) | ||
Local Phone Number | 279-7800 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | SJW | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,625 | ||
Entity Common Stock, Shares Outstanding | 28,599,414 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement relating to the registrant’s Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K where indicated. | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000766829 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Utility plant: | ||
Land | $ 36,845 | $ 34,395 |
Depreciable plant and equipment | 3,198,060 | 2,988,454 |
Construction in progress | 109,976 | 112,232 |
Intangible assets | 35,167 | 33,424 |
Property, plant and equipment, gross | 3,380,048 | 3,168,505 |
Less accumulated depreciation and amortization | 1,045,136 | 962,019 |
Public utilities, property, plant and equipment, net | 2,334,912 | 2,206,486 |
Real estate investments | 58,129 | 57,699 |
Less accumulated depreciation and amortization | 14,783 | 13,597 |
Real estate investments, net | 43,346 | 44,102 |
Current assets: | ||
Cash | 5,269 | 12,944 |
Restricted cash | 4,000 | 5,000 |
Accounts receivable: | ||
Customers, net of allowances for uncollectible accounts of $3,891 and $1,512 in 2020 and 2019, respectively | 46,832 | 36,305 |
Income tax | 7,041 | 8,837 |
Other | 4,269 | 2,833 |
Accrued unbilled utility revenue | 44,950 | 40,102 |
Current regulatory assets, net | 1,748 | 6,472 |
Prepaid expenses | 8,097 | 6,625 |
Other current assets | 5,125 | 2,928 |
Total current assets | 127,331 | 122,046 |
Other assets: | ||
Net regulatory assets, less current portion | 156,482 | 113,945 |
Investments | 14,367 | 12,928 |
Goodwill | 628,144 | 628,287 |
Other | 6,883 | 4,676 |
Total other assets | 805,876 | 759,836 |
Total assets | 3,311,465 | 3,132,470 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; authorized 70,000,000 shares in 2020 and 2019; issued and outstanding 28,556,605 shares in 2020 and 28,456,508 shares in 2019 | 29 | 28 |
Additional paid-in capital | 510,158 | 506,639 |
Retained earnings | 408,037 | 383,191 |
Accumulated other comprehensive (loss) income | (1,064) | 126 |
Total stockholders’ equity | 917,160 | 889,984 |
Long-term debt, less current portion | 1,287,580 | 1,283,597 |
Capitalization, long-term debt and equity | 2,204,740 | 2,173,581 |
Current liabilities: | ||
Lines of credit | 175,094 | 117,209 |
Current portion of long-term debt | 76,241 | 22,272 |
Accrued groundwater extraction charges, purchased water and power | 19,184 | 17,211 |
Accounts payable | 34,200 | 34,886 |
Accrued interest | 12,861 | 13,140 |
Accrued payroll | 14,012 | 11,570 |
Other current liabilities | 19,203 | 18,279 |
Total current liabilities | 350,795 | 234,567 |
Deferred income taxes | 191,415 | 195,598 |
Advances for construction | 125,027 | 112,339 |
Contributions in aid of construction | 296,105 | 286,035 |
Postretirement benefit plans | 121,597 | 108,044 |
Other noncurrent liabilities | 21,786 | 22,306 |
Commitments and contingencies | 0 | 0 |
Total equity and liabilities | $ 3,311,465 | $ 3,132,470 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Allowance for uncollectible accounts | $ 3,891 | $ 1,512 |
Capitalization: | ||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 28,556,605 | 28,456,508 |
Common stock, shares outstanding (in shares) | 28,556,605 | 28,456,508 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Operating revenue | $ 564,526 | $ 420,482 | $ 397,699 |
Production Expenses: | |||
Purchased water | 100,723 | 99,118 | 97,378 |
Power | 13,330 | 7,443 | 6,180 |
Groundwater extraction charges | 71,359 | 43,917 | 46,770 |
Other production expenses | 40,380 | 25,291 | 18,398 |
Total production expenses | 225,792 | 175,769 | 168,726 |
Administrative and general | 79,741 | 66,301 | 48,933 |
Maintenance | 22,158 | 20,505 | 18,414 |
Property taxes and other non-income taxes | 29,886 | 19,068 | 14,975 |
Depreciation and amortization | 89,279 | 65,592 | 54,601 |
Merger related expenses | 0 | 15,768 | 18,610 |
Total operating expense | 446,856 | 363,003 | 324,259 |
Operating income | 117,670 | 57,479 | 73,440 |
Other (expense) income: | |||
Interest on long-term debt, mortgage and other interest expense | (54,255) | (31,796) | (24,332) |
Pension non-service cost | (374) | (3,158) | (2,356) |
Unrealized loss on equity investments | 0 | 0 | (527) |
Gain on sale of equity investments | 0 | 0 | 104 |
Gain on sale of real estate investments | 948 | 929 | 0 |
Interest income on money market fund | 0 | 6,536 | 155 |
Other, net | 5,906 | 2,091 | 2,348 |
Income before income taxes | 69,895 | 32,081 | 48,832 |
Provision for income taxes | 8,380 | 8,454 | 10,065 |
Net income before noncontrolling interest | 61,515 | 23,627 | 38,767 |
Less net income attributable to the noncontrolling interest | 0 | 224 | 0 |
SJW Group net income | 61,515 | 23,403 | 38,767 |
Other comprehensive income: | |||
Unrealized (loss) gain on investment, net of taxes of $247 in 2020, $43 in 2019 and $0 in 2018 | (310) | 117 | 0 |
Adjustment to pension benefit plans, net of taxes of $(324) in 2020, $22 in 2019 and $0 in 2018 | (880) | 9 | 0 |
SJW Group comprehensive income | $ 60,325 | $ 23,529 | $ 38,767 |
SJW Group earnings per share | |||
—Basic (in dollars per share) | $ 2.16 | $ 0.82 | $ 1.83 |
—Diluted (in dollars per share) | $ 2.14 | $ 0.82 | $ 1.82 |
Weighted average shares outstanding | |||
—Basic (shares) | 28,521,900 | 28,443,052 | 21,214,277 |
—Diluted (shares) | 28,694,986 | 28,562,546 | 21,332,387 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Unrealized loss on investment, taxes | $ 247 | $ 43 | $ 0 |
Adjustment to postretirement benefit plans, taxes | $ (324) | $ 22 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2017 | 20,520,856 | ||||||||
Beginning balance at Dec. 31, 2017 | $ 463,209 | $ 0 | $ 21 | $ 84,866 | $ 376,119 | $ 2,203 | $ 2,203 | $ (2,203) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 38,767 | 38,767 | |||||||
Unrealized income (loss) on investment, net of taxes | 0 | ||||||||
Adjustment to pension benefit plans, net of taxes | 0 | ||||||||
Share-based compensation | 2,020 | 2,117 | (97) | ||||||
Issuance of restricted and deferred stock units (in shares) | 95,053 | ||||||||
Issuance of restricted and deferred stock units | $ (4,057) | (4,057) | |||||||
Employee stock purchase plan (in shares) | 25,907 | 25,907 | |||||||
Employee stock purchase plan | $ 1,371 | 1,371 | |||||||
Common stock issued (in shares) | 7,762,500 | ||||||||
Common stock issued | 411,076 | $ 7 | 411,069 | ||||||
Dividends paid | (23,074) | (23,074) | |||||||
Ending balance (in shares) at Dec. 31, 2018 | 28,404,316 | ||||||||
Ending balance at Dec. 31, 2018 | 889,312 | $ 97 | $ 28 | 495,366 | 393,918 | $ 97 | 0 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 23,627 | 23,403 | 224 | ||||||
Distribution to noncontrolling interest | (224) | (224) | |||||||
Unrealized income (loss) on investment, net of taxes | 117 | 117 | |||||||
Adjustment to pension benefit plans, net of taxes | 9 | 9 | |||||||
Share-based compensation | 3,313 | 3,406 | (93) | ||||||
Share-based compensation related to business combination | 6,384 | 6,384 | |||||||
Issuance of restricted and deferred stock units (in shares) | 21,909 | ||||||||
Issuance of restricted and deferred stock units | $ (110) | (110) | |||||||
Employee stock purchase plan (in shares) | 30,255 | 30,283 | |||||||
Employee stock purchase plan | $ 1,603 | 1,603 | |||||||
Common stock issuance cost | (10) | (10) | |||||||
Dividends paid | $ (34,134) | (34,134) | |||||||
Ending balance (in shares) at Dec. 31, 2019 | 28,456,508 | 28,456,508 | |||||||
Ending balance at Dec. 31, 2019 | $ 889,984 | $ 28 | 506,639 | 383,191 | 126 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 61,515 | 61,515 | |||||||
Unrealized income (loss) on investment, net of taxes | (310) | (310) | |||||||
Adjustment to pension benefit plans, net of taxes | (880) | (880) | |||||||
Share-based compensation | 3,393 | 3,553 | (160) | ||||||
Issuance of restricted and deferred stock units (in shares) | 68,347 | ||||||||
Issuance of restricted and deferred stock units | $ (1,863) | $ 1 | (1,864) | ||||||
Employee stock purchase plan (in shares) | 31,750 | 31,750 | |||||||
Employee stock purchase plan | $ 1,830 | 1,830 | |||||||
Dividends paid | $ (36,509) | (36,509) | |||||||
Ending balance (in shares) at Dec. 31, 2020 | 28,556,605 | 28,556,605 | |||||||
Ending balance at Dec. 31, 2020 | $ 917,160 | $ 29 | $ 510,158 | $ 408,037 | $ (1,064) | $ 0 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cumulative effect of change in accounting principle, taxes | $ 8,380 | $ 8,454 | $ 10,065 |
Unrealized loss on investment, taxes | 247 | 43 | 0 |
Adjustment to postretirement benefit plans, taxes | $ (324) | $ 22 | $ 0 |
Common stock, dividends per share, paid (usd per share) | $ 1.28 | $ 1.2 | $ 1.12 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Cumulative effect of change in accounting principle, taxes | $ 33 | $ 1,507 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net income before noncontrolling interest | $ 61,515 | $ 23,627 | $ 38,767 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 91,622 | 68,489 | 56,907 |
Deferred income taxes | (5,497) | (1,249) | (9,486) |
Share-based compensation | 3,553 | 3,406 | 2,117 |
Gain on sale of real estate investments | (948) | (929) | 0 |
Allowance for equity funds used during construction | (1,249) | 0 | 0 |
Other non-cash, net | 0 | 20 | 414 |
Changes in operating assets and liabilities, net of acquired assets and liabilities: | |||
Accounts receivable and accrued unbilled utility revenue | (18,918) | (3,860) | (2,003) |
Accounts payable and other current liabilities | (357) | 1,946 | 2,130 |
Accrued groundwater extraction charges, purchased water and power | 1,973 | 2,853 | (688) |
Tax receivable and accrued taxes | (3,557) | (6,044) | 5,841 |
Postretirement benefits | (2,965) | (4,000) | 203 |
Regulatory asset related to balancing and memorandum accounts | (14,459) | 30,838 | (6,488) |
Up-front service concession payment | (5,000) | 0 | 0 |
Other noncurrent assets and noncurrent liabilities | 751 | 7,439 | 1,923 |
Other changes, net | (2,413) | 7,469 | 1,706 |
Net cash provided by operating activities | 104,051 | 130,005 | 91,343 |
Investing activities: | |||
Company-funded | (195,323) | (164,325) | (135,973) |
Contributions in aid of construction | (17,096) | (13,563) | (8,454) |
Additions to real estate investment | (435) | (137) | (123) |
Payments for business/asset acquisition and water rights | 0 | (835,465) | (2,496) |
Cost to retire utility plant, net of salvage | (2,556) | (5,026) | (3,909) |
Proceeds from sale of real estate investments and utility property | 1,151 | 745 | 0 |
Proceeds from sale of equity investments | 0 | 0 | 4,112 |
Net cash used in investing activities | (214,259) | (1,017,771) | (146,843) |
Financing activities: | |||
Borrowings from lines of credit | 276,174 | 105,349 | 76,000 |
Repayments of lines of credit | (218,289) | (192,055) | (1,000) |
Long-term borrowings | 85,000 | 590,000 | 0 |
Long-term borrowings held as restricted cash | 4,000 | 5,000 | 0 |
Repayments of long-term borrowings | (28,931) | (1,400) | 0 |
Debt issuance costs | (829) | (4,918) | 0 |
Dividends paid | (36,509) | (34,134) | (23,074) |
Receipts of advances and contributions in aid of construction | 23,874 | 18,904 | 10,890 |
Refunds of advances for construction | (2,767) | (2,911) | (2,700) |
Issuance of common stock, net of issuance costs | 0 | (10) | 411,385 |
Other changes, net | (190) | 1,163 | (3,078) |
Net cash provided by financing activities | 101,533 | 484,988 | 468,423 |
Net change in cash, cash equivalents and restricted cash | (8,675) | (402,778) | 412,923 |
Cash, cash equivalents and restricted cash, beginning of year | 17,944 | 420,722 | 7,799 |
Cash, cash equivalents and restricted cash, end of year | 9,269 | 17,944 | 420,722 |
Less restricted cash, end of year | 4,000 | 5,000 | 0 |
Cash and cash equivalents, end of year | 5,269 | 12,944 | 420,722 |
Cash paid during the year for: | |||
Interest | 59,955 | 32,138 | 27,038 |
Income taxes | 10,380 | 16,448 | 13,750 |
Supplemental disclosure of non-cash activities: | |||
Increase (decrease) in accrued payables for construction costs capitalized | 1,448 | (516) | 340 |
Utility property installed by developers | $ 9,779 | $ 3,077 | $ 1,747 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of SJW Group, its wholly owned subsidiaries, and two variable interest entities in which two SJW Group subsidiaries are the primary beneficiaries. The accounting policies of SJW Group’s subsidiaries comply with the applicable uniform system of accounts prescribed by the respective regulators. All intercompany transactions and balances have been eliminated in consolidation. The accounting policies of SJW Group’s subsidiaries comply with the applicable uniform system of accounts prescribed by the respective regulators and conform to generally accepted accounting principles for rate-regulated public utilities. SJW Group’s subsidiaries are as follows: San Jose Water Company (“SJWC”), is a regulated California water utility providing water service to approximately 231,000 connections that serve approximately one million people in the greater metropolitan San Jose area. Approximately 93% of SJWC’s revenues are derived from the sale of water to residential and business customers. SJWNE is a special purpose entity holding company for SJW Group’s investment in Connecticut Water Service, Inc. (“CTWS”) which was acquired on October 9, 2019. CTWS, headquartered in Connecticut, is a holding company for water utilities companies providing water service to approximately 139,000 connections that serve a population of approximately 485,000 people in 81 municipalities throughout Connecticut and Maine and more than 3,000 wastewater connections in Southbury, Connecticut. As part of the merger transaction between SJW Group and CTWS on October 9, 2019, CTWS became a wholly-owned subsidiary of SJWNE LLC which is a wholly-owned subsidiary of SJW Group (see, Note 12, “Business Combinations”). The subsidiaries held by CTWS that provide utility water services are The Connecticut Water Company (“Connecticut Water”) and The Maine Water Company (“Maine Water”). The remaining two subsidiaries are Chester Realty, Inc., a real estate company in Connecticut, and New England Water Utility Services, Inc. (“NEWUS”), which provides contract water and sewer operations and other water related services. Effective September 30, 2020, The Heritage Village Water Company (“HVWC”) and The Avon Water Company (“Avon Water”) merged into Connecticut Water after receiving the merger approval from the Connecticut Public Utilities Regulatory Authority (“PURA”). SJWTX, Inc. is incorporated in the State of Texas and is doing business as Canyon Lake Water Service Company (“CLWSC”). CLWSC is a public utility in the business of providing water service to approximately 59,000 people. CLWSC’s service area comprises more than 247 square miles in the southern region of the Texas Hill Country in Blanco, Comal, Hays and Travis counties, the growing region between San Antonio and Austin, Texas. SJWTX, Inc. has a 25% interest in Acequia Water Supply Corporation. Acequia has been determined to be a variable interest entity within the scope of ASC Topic 810 with SJWTX, Inc. as the primary beneficiary. As a result, Acequia has been consolidated with SJWTX, Inc. SJW Land Company owns a commercial property and undeveloped real estate property in the states of California and Tennessee and owns and operates commercial properties in the state of Tennessee. SJW Land also has a 70% limited partnership interest in 444 West Santa Clara Street, L.P. 444 West Santa Clara Street, L.P. has been determined to be a variable interest entity within the scope of ASC Topic 810 with SJW Land Company as the primary beneficiary. As a result, 444 West Santa Clara Street L.P. has been consolidated with SJW Land Company. In 2017, 444 West Santa Clara Street, L.P. sold all of its interests in the commercial building and land the partnership owned and operated. The limited partnership is expected to dissolve in 2021. Results of operations and balances of the non-controlling interest are not material to the consolidated financial statements (see below in Note 1, “Real Estate Investments”). Recently Adopted Accounting Principles In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendments. Topic 326 requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 was effective for SJW Group in the first quarter of fiscal 2020. The adoption of ASU 2016-13 did not have a material impact on the consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20: “Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans,” which aims to improve the overall usefulness of disclosure to financial statement users and reduce unnecessary costs to companies when preparing defined benefit plan disclosures. This update was effective for SJW Group’s Form 10-K for the year ending December 31, 2020. Retrospective adoption is required and early adoption is permitted. The adoption of ASU 2018-14 did not have a material impact on the condensed consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”, which simplifies the accounting for income taxes, eliminates certain exceptions within Topic 740, “Income Taxes”, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. This update is effective for fiscal years beginning after December 15, 2021. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. Management is currently evaluating the impacts of the provisions of ASU 2019-12 on the consolidated financial statements. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Depreciable Utility Plant and Equipment The major components of depreciable plant and equipment as of December 31, 2020 and 2019 are as follows: 2020 2019 Equipment $ 567,904 521,183 Transmission and distribution 1,699,953 2,207,051 Office buildings and other structures 930,203 260,220 Total depreciable plant and equipment $ 3,198,060 2,988,454 Depreciation is computed using the straight-line method over the estimated remaining service lives of groups of assets. The estimated service lives of depreciable plant and equipment are as follows: Useful Lives Equipment 5 to 35 years Transmission and distribution plant 35 to 75 years Office buildings and other structures 7 to 50 years For the years 2020, 2019 and 2018, depreciation expense as a percent of the beginning of the year balance of depreciable plant was approximately 3.2%, 3.8% and 3.6%, respectively. Depreciation expense for utility plant for the years ended December 31, 2020, 2019 and 2018 was $86,823, $63,785 and $53,031, respectively. For the years 2020, 2019 and 2018, the amounts allocated to administrative and general expense were $2,343, $2,869 and $2,306, respectively. The cost of utility plant retired, including retirement costs (less salvage), is charged to accumulated depreciation and no gain or loss is recognized. Allowance For Funds Used During Construction (“AFUDC”) AFUDC represents the capitalized costs of borrowed funds or a return on equity funds used to finance utility plant under construction and is capitalized as part of construction work in progress. AFUDC is recorded to the extent approved by the respective states’ utility regulators and is recovered through water rates as the utility plant depreciates. The amount of interest capitalized in 2020, 2019 and 2018 was $4,133, $4,323 and $2,856, respectively. Interest on long-term debt is presented net of amounts capitalized on the Consolidated Statement of Comprehensive Income. The amount of equity funds capitalized in 2020 was $1,249, reflected in “Other, net” on the Consolidated Statement of Comprehensive Income. Prior to the merger with CTWS on October 9, 2019, SJW Group did not have AFUDC for equity funds. Intangible Assets Intangible assets are recorded at cost and are amortized using the straight-line method over the estimated useful life of the asset, ranging from 5 to 70 years (see Note 6, “Utility Plant Intangible Assets”). Real Estate Investments Real estate investments are recorded at cost and consist primarily of land and buildings. Net gains and losses from the sale of real estate investments are recorded as a component of other (expense) income in the Consolidated Statements of Comprehensive Income. Nonutility property in Water Utility Services is also classified in real estate investments. Nonutility property is property that is neither used nor useful in providing water utility services to customers and is excluded from rate base for rate-setting purposes. SJWC recognizes gain/loss on disposition of nonutility property in accordance with California Public Utilities Commission (“CPUC”) Code Section 790, whereby the net proceeds are reinvested back into property that is useful in providing water utility services to customers. CTWS and CLWSC do not have regulatory restrictions on the use of proceeds from the sale of nonutility property. There is no depreciation associated with Water Utility Services nonutility property as it is all undeveloped land. The major components of real estate investments as of December 31, 2020 and 2019 are as follows: 2020 2019 Land $ 14,168 14,168 Buildings and improvements 43,961 43,531 Total real estate investment $ 58,129 57,699 Depreciation on buildings and improvements for real estate investments is computed using the straight-line method over the estimated useful lives of the assets, ranging from 7 to 39 years. On September 28, 2020, SJWC sold six nonutility properties located in Los Gatos, California for $1,075. SJW Group recognized a pre-tax gain on the sale of real estate investments of $1,048, after selling expenses of $22. During the year ended December 31, 2020, Maine sold various nonutility properties for a total of $143. SJW Group recognized a pre-tax loss on the sale of real estate investments of $100, after selling expenses of $45. On December 19, 2019, Maine Water completed the second half of a previously announced land sale with the Coastal Mountains Land Trust, Maine nonprofit corporation. The transaction was structured such that Maine Water sold a conservation easement valued at $1,200 for $600. Accordingly, Maine Water expects to claim a $600 charitable deduction for federal and state income tax purposes on the bargain sale. The MPUC has previously ruled that the net proceeds from the transaction will be shared equally between the customers of the Camden Rockland division and Maine Water. The transaction generated approximately $180 in pre-tax gain on sale of nonutility property at Maine Water. Additionally, Connecticut Water disposed of a small parcel of land generating an additional $4 in pre-tax gain on sale of nonutility property. On April 22, 2019, all creek repairs were completed for a commercial building and land SJW Land sold in 2017 and a reimbursement of $745 was provided to a SJW Land partnership. SJW Land Company and the noncontrolling interest recognized a pre-tax gain on the creek reimbursement of $521 and $224, respectively, on the transaction. Real estate investments include $57,273 and $56,839 as of December 31, 2020 and 2019, respectively, of assets that are leased or available for lease. The following schedule shows the future minimum rental payments to be received from third parties under operating leases that have remaining noncancelable lease terms in excess of one year as of December 31, 2020: Year ending December 31: Rental Revenue 2021 $ 4,264 2022 2,745 2023 2,565 2024 2,645 2025 2,833 Thereafter 7,711 Business Combinations SJW Group applies the provisions of ASC Topic 805—“Business Combinations” for the purchase accounting related to the merger with CTWS on October 9, 2019. Topic 805 requires SJW Group to recognize separately from goodwill the assets acquired and the liabilities assumed at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While SJW Group used our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates were inherently uncertain and subject to refinement. As a result, during the one year measurement period from the acquisition date, we recorded adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments were recorded to our Consolidated Statements of Comprehensive Income. Accounting for business combinations requires SJW Group to make significant estimates and assumptions, especially at the acquisition date, including estimates for intangible assets, contractual obligations assumed and pre-acquisition contingencies. Although SJW Group believes that the assumptions and estimates we make are reasonable and appropriate, they are based in part on historical experience and information obtained from CTWS’s management and are inherently uncertain. Events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates or actual results. The purchase price allocation process requires management to make significant estimates and assumptions with respect to intangible assets. Although SJW Group believes the assumptions and estimates made are reasonable, they are based in part on historical experience, market conditions and information obtained from management of the acquired companies and are inherently uncertain. Examples of critical estimates in valuing certain of the intangible assets we have acquired include, but are not limited to: future expected cash flows from services; historical and expected customer attrition rates and anticipated growth in revenue from acquired customers; the expected use of the acquired assets; and discount rates. See Note 12, “Business Combination” for further discussion on the CTWS transaction. Impairment of Long-Lived Assets and Goodwill In accordance with the requirements of FASB ASC Topic 360—“Property, Plant and Equipment,” the long-lived assets of SJW Group are reviewed for impairment when changes in circumstances or events require adjustments to the carrying values of the assets. When such changes in circumstances or events occur, the company assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. To the extent an impairment exists, the asset is written down to its estimated fair value with a corresponding charge to operations in the period in which the impairment is identified. Long-lived assets consist primarily of utility plant in service, goodwill, regulatory assets, real estate investments and intangible assets. SJW Group first performs a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. In assessing the qualitative factors, SJW Group considers the impact of these key factors: change in industry and competitive environment, financial performance, and other relevant Company-specific events. If SJW Group determines that as a result of the qualitative assessment it is more likely than not (> 50% likelihood) that the fair value is less than carrying amount, then a quantitative test is performed. No impairments occurred during 2020, 2019 or 2018. Goodwill represents the excess of the purchase price paid over the estimated fair value of the assets acquired and liabilities assumed in the acquisition of a business. Goodwill is not amortized but is tested for impairment annually on October 1st or more frequently if an event occurs or circumstances change that would more likely than not, reduce the fair value of a reporting unit below its carrying amount. SJW Group first performs a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. In assessing the qualitative factors, SJW Group considers the impact of these key factors: change in industry and competitive environment, financial performance, macroeconomic conditions, and other relevant Company-specific events. If SJW Group determines that as a result of the qualitative assessment it is more likely than not (> 50% likelihood) that the fair value is less than carrying amount, then a quantitative test is performed. SJW Group’s goodwill is primarily associated with the recent merger with CTWS on October 9, 2019. As of October 1, 2020, SJW Group performed a qualitative assessment and found no indicators of impairment and therefore did not perform the quantitative impairment test. No impairments occurred during 2020, 2019 or 2018. Cash and Cash Equivalents, and Restricted Cash Cash and cash equivalents primarily consist of cash on deposit with banks with maturities of three months or less from the date of purchase. Restricted funds consist of proceeds from a Maine state revolving fund bond issuances to Maine Water of $5,000 and $4,000 on December 19, 2019 and December 23, 2020, respectively for capital expenditures. Proceeds are held by a trustee for the bonds and as funding conditions are met, funds are released. In the first quarter of 2020, all the proceeds from the December 19, 2019 bond were released by the trustee. Financial Instruments and Investments The following instruments are not measured at fair value on the company’s consolidated balance sheets but, require disclosure of fair values: cash and cash equivalents, accounts receivable and accounts payable. The estimated fair value of such instruments approximates their carrying value as reported on the consolidated balance sheets. The fair value of such financial instruments are determined using the income approach based on the present value of estimated future cash flows. The fair value of these instruments would be categorized as Level 2 in the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level 1. The fair value of long-term debt is discussed in Note 4, “Long-Term Debt” and pension plan assets in Note 9, “Benefit Plans”. SJW Group has investments in company owned life insurance which are valued at cash surrender value of the policies as reported by the insurer. These contracts are based principally on a referenced pool of investment funds that actively redeem shares, are observable and measurable, and are presented in “Other investments” on SJW Group’s consolidated balance sheets. As of December 31, 2020 and 2019, the value of the company owned life insurance was $8,026 and $7,086, respectively, of which $4,311 and $3,829, respectively, was related to assets to fund CTWS’ supplemental retirement plan agreements. See discussion on pension plans in Note 9, “Benefit Plans”. Regulatory Rate Filings California Regulatory Affairs SJWC’s rates, service and other matters affecting its business are subject to regulation by the CPUC. Generally, there are three types of rate adjustments that affect SJWC’s revenue collection: general rate adjustments, cost of capital adjustments, and offset rate adjustments. General rate adjustments are authorized in general rate case decisions, which usually authorize an initial rate adjustment followed by two annual escalation adjustments. General rate applications are normally filed and processed during the last year covered by the most recent general rate case as required by the CPUC in order to avoid any gaps in regulatory decisions on general rate adjustments. Cost of capital adjustments are rate adjustments resulting from the CPUC’s usual tri-annual establishment of a reasonable rate of return on equity and average cost of borrowing on debt incurred for SJWC’s capital investments. The purpose of an offset rate adjustment is to compensate utilities for changes in specific pre-authorized offsettable capital investments or expenses, primarily for purchased water, groundwater extraction, purchased power and pensions. Pursuant to Section 792.5 of the California Public Utilities Code, a balancing account must be maintained for each expense item for which such revenue offsets have been authorized. Memorandum accounts track revenue impacts due to catastrophic events, certain unforeseen water quality expenses related to new federal and state water quality standards, energy efficiency, water conservation during periods of mandated water restrictions, water tariffs and other approved activities or as directed by the CPUC. The purpose of a balancing and memorandum account is to track the under-collection or over-collection associated with such expense changes and activities for future recovery consideration. On April 10, 2020, SJWC filed Application No. 20-04-009 seeking authorization to issue $300,000 in new debt and $50,000 in new equity. A final decision authorizing our financing application was approved on November 19, 2020. On January 22, 2020, SJWC, along with three other California water utilities, filed a joint request for a one-year deferment on the Cost of Capital filings which would otherwise be due on May 1, 2020. Postponing the filing one year would alleviate administrative processing costs on the utilities as well as the CPUC staff, and provide relief for both CPUC and utility resources already strained by numerous other proceedings. The request was conditioned on no changes to the current Water Cost of Capital Mechanism in place during the one-year deferment. On March 11, 2020, the CPUC approved the request. On March 17, 2020, the CPUC ordered its regulated water utilities to halt customer disconnection activities in connection with the COVID-19 pandemic. On April 2, 2020, Governor Gavin Newsom issued Executive Order N-42-20 suspending customer disconnection activities until further notice. On April 16, 2020, the CPUC issued Resolution M-4842 directing utilities to implement emergency customer protections to assist customers such as waiving reconnection deposits, offering payment arrangements, and suspending disconnections for nonpayment. This resolution is effective for up to one year, or April 15, 2021, with the option to extend. On February 11, 2021, the CPUC approved extending customer protections required in Resolution M-4842 through June 30, 2021, through approval of Resolution M-4849 . The resolution also requires water utilities to develop a transition plan regarding shutoffs and terminations with customers once the moratorium ends. SJWC is currently working on such plan. On March 19, 2020, SJWC filed Advice Letter 546 to extend customer protections listed in the company’s Disaster Relief Customer Protections and Outreach Plan as required by the CPUC in response to the COVID-19 pandemic. The filing also activated SJWC’s Catastrophic Event Memorandum Account (“CEMA”) to track costs related to SJWC’s response which includes labor and materials, increases in bad debt from the suspension of shutoffs for non-payment, waived deposits and reconnection fees, and divergence from actual versus authorized usage. The customer protections and CEMA were approved effective March 4, 2020. SJWC anticipates requesting recovery of the COVID-19 pandemic response costs in a future general rate case or other filings. On January 4, 2021, SJWC filed General Rate Case Application No. 21-01-003 requesting authority for an increase of revenue of $51,585 or 13.35% in 2022, $16,932 or 3.88% in 2023, and $19,195 or 4.24% in 2024. The application also includes requests to recover $18,499 from balancing and memorandum accounts, authorization for a $435,000 capital budget, further alignment between actual and authorized usage, and a shift to greater revenue collection in the service charge. The application will undergo a year-long review process and the new rates, if approved, are expected to be effective January 1, 2022. On January 5, 2021, SJWC, along with three other California water utilities, filed a joint request for another one-year deferment on the Cost of Capital filings which would otherwise be due on May 1, 2021. Postponing the filing another year would alleviate administrative processing costs on the utilities as well as the CPUC staff, and provide relief for both CPUC and utility resources already strained by numerous other proceedings and COVID-19. The request is conditioned on no changes to the current Water Cost of Capital Mechanism in place during the one-year deferment. The request was denied on February 22, 2021. Connecticut Regulatory Affairs Connecticut Water’s rates, service and other matters affecting its business are subject to regulation by the Public Utilities Regulatory Authority of Connecticut (“PURA”). The Connecticut regulated operations seek rate relief as necessary to enable it to achieve an authorized rate of return. PURA allows the Connecticut regulated operations to add surcharges to customers’ bills in order to recover certain costs associated with approved eligible capital projects through the Water Infrastructure Conservation Adjustment (“WICA”) in between full rate cases, as well as approved surcharges for the Water Revenue Adjustment (“WRA”). Connecticut Water and the HVWC division mitigate the risk associated with changes in demand through a PURA approved WRA mechanism. The WRA is used to reconcile actual water demands with the demands projected in the most recent general rate case and allows companies to implement a surcharge or surcredit as necessary to recover the revenues approved in the general rate case. The WRA removes the financial disincentive for water utilities to develop and implement effective water conservation programs. The WRA allows water companies to defer on the balance sheet, as a regulatory asset or liability, for later collection from or crediting to customers the amount by which actual revenues deviate from the revenues allowed in the most recent general rate proceedings, including WICA proceedings. Projects eligible for WICA surcharges include certain types of aging utility plant, primarily water mains, meters, and service lines. Additionally, certain energy conservation projects, improvements required to comply with streamflow regulations, and improvements to acquired systems are eligible for WICA surcharges. As of December 31, 2020, WICA surcharges for Connecticut Water and the Avon Water division were 5.75% and 9.31%, respectively. The HVWC division did not have an approved WICA surcharge. On January 28, 2020, Connecticut Water filed a WICA application representing an additional 2.6% surcharge, for a cumulative WICA surcharge of 5.84%. Additionally, on February 7, 2020, Connecticut Water and the Avon Water division separately filed their annual WICA reconciliations which called for 0.09% and 0.05% reductions of the WICA surcharges, respectively. On March 25, 2020, in separate decisions, PURA approved a net cumulative 5.75% surcharge for Connecticut Water and a net cumulative 9.26% WICA surcharge for the Avon Water division, both of which became effective on customers’ bills on April 1, 2020. On October 28, 2020, Connecticut Water filed a WICA application representing an additional 1.11% surcharge or approximately $956 increase in revenues, for a cumulative WICA surcharge of 6.94% which is scheduled to become effective April 1, 2021. On January 15, 2021, Connecticut Water filed an application with PURA to amend rates for its customer, including those of former AWC and HVWC companies. The filing requests an increase of $20,206 in annual revenues that includes more than $265,514 in completed infrastructure investments that are not currently in approved rates and surcharges. The proposed increase will be applied across the company but may differ by rate divisions, meter size and between customer rate categories, i.e. for residential, commercial, industrial, etc. users. The application also reflects the costs of operating and maintaining the utility, including expenditures on power and treatment additives that have increased since the company’s last general rate case in 2010. PURA has 200 days from the filing to review the application, and the approved rates will go into effect soon thereafter. On March 12, 2020, PURA issued Docket No. 20-03-15 to establish a State of Emergency Utility Shut-off Moratorium for the COVID-19 pandemic. The moratorium ordered regulated utility companies to refrain from terminating utility service to residential customers, except for safety reasons until August 1, 2020, or until such other time as determined by the PURA. The moratorium was extended through October 1, 2020 at which time the company was permitted to resume standard collection practices until or unless there is further action by PURA. In the same docket, PURA directed the public service companies to offer COVID-19 payment plans for the duration of the Governor’s Emergency Order (currently through April 20, 2021), and allow customers up to 24 months for payment arrangements on their water bills. The docket directs the public service companies to maintain a detailed record of costs incurred and revenues lost as a result of implementing its orders in the docket and allows for the establishment a regulatory asset to track incurred costs. Approval for recovery of additional costs incurred and/or revenues lost relating to the COVID-19 pandemic would be considered for recovery in the Connecticut Water’s next general rate case proceeding. Texas Regulatory Affairs CLWSC’s rates are subject to the economic regulation of the Public Utilities Commission of Texas (“PUCT”). The PUCT authorize rate increases after the filing of an Application for a Rate/Tariff Change. Rate cases may be filed as they become necessary, provided there is no current rate case outstanding. Further, rate cases may not be filed more frequently than once every 12 months. Maine Regulatory Affairs Maine Water’s rates, service and other matters affecting its business are subject to regulation by the Maine Public Utilities Commission (“MPUC”). As with the Connecticut regulated operations, rate relief is sought as necessary to enable the company to achieve an authorized rate of return. MPUC approves Maine Water’s rates on a division-by-division basis in Maine and allows Maine Water to add surcharges to customers’ bills in order to recover certain costs associated with capital projects through the Water Infrastructure Surcharge (“WISC”) in between general rate cases. Projects eligible for WISC surcharges include all infrastructure replacement or repair projects, excluding meters, that are necessary for the transmission, distribution or treatment of water. In 2015, a WRA mechanism law in Maine became available to regulated water utilities. Maine’s rate-adjustment mechanism could provide revenue stabilization in divisions with declining water consumption and Maine Water expects to request usage of this mechanism in future rate filings when consumption trends support its use. On January 20, 2020, Maine Water filed Water Infrastructure Surcharge (“WISC”) applications with the MPUC in four divisions requesting an increase between 1.76% and 3.00%, representing approximately $371 in additional revenues. The WISC application was approved on February 26, 2020 and the surcharges were effective March 1, 2020. On March 16, 2020, MPUC issued an emergency moratorium on utility disconnection activities in connection to the COVID-19 pandemic. The moratorium directed public utility companies not to engage in any disconnection activities in |
Capitalization
Capitalization | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Capitalization | CapitalizationSJW Group is authorized to issue 70,000,000 shares of common stock of $0.001 par value per share. At December 31, 2020 and 2019, 28,556,605 and 28,456,508, respectively, shares of common stock were issued and outstanding.As of December 31, 2020 and 2019, 1,000,000 shares of preferred stock of $0.001 par value per share were authorized for SJW Group. At December 31, 2020 and 2019, no shares of preferred stock were issued or outstanding. |
Lines of Credit
Lines of Credit | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Lines of Credit | Lines of CreditSJWC entered into a $125,000 credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as the lender (the “Lender”) on June 1, 2016. The Credit Agreement provides an unsecured credit facility with a letter of credit sublimit of $10,000. Proceeds of borrowings under the Credit Agreement may be used to refinance existing debt, for working capital, and for general corporate purposes. The Credit Agreement has a maturity date of June 1, 2021. On May 11, 2020, SJWC amended its $125,000 unsecured line of credit to increase the lending commitment by $15,000 to $140,000. In addition, on May 11, 2020, SJWC entered into an additional unsecured line of credit allowing borrowings of up to $50,000 for a six The Credit Agreement contains customary representations, warranties and events of default, as well as certain restrictive covenants customary for facilities of this type, including restrictions on indebtedness, liens, acquisitions and investments, restricted payments, asset sales, and fundamental changes. The Credit Agreement also includes certain financial covenants that require the Company to maintain a maximum funded debt to capitalization ratio and a minimum interest coverage ratio. SJW Group and SJW Land Company (collectively, the “Borrowers”), entered into a $15,000 credit agreement with the Lender (the “SJW Group Credit Agreement”) on June 1, 2016, which provides an unsecured credit facility to the Borrowers with a letter of credit sublimit of $5,000. The SJW Group Credit Agreement matures on June 1, 2021. Borrowings under the SJW Group Credit Agreement bear interest under the same terms and conditions as those in the Credit Agreement. On April 24, 2020, SJW Group terminated the joint unsecured bank line of credit held by SJW Group and SJW Land Company effective April 29, 2020. In addition, on June 1, 2016, SJW Group, as guarantor, and SJWTX, Inc. (the “Borrower”), entered into a $5,000 credit agreement with the Lender (the “SJWTX Credit Agreement”), which provides an unsecured credit facility to the Borrower with a letter of credit sublimit of $1,000. The SJWTX Credit Agreement matures on June 1, 2021. CTWS maintains a $15,000 line of credit agreement with CoBank, ACB, which was scheduled to expire on July 1, 2020. On May 29, 2020, CTWS entered into a Second Amendment to the CTWS’s existing $15,000 credit agreement, dated as of August 6, 2014, with CoBank, ACB (“CoBank”), as amended by the First Amendment, dated October 28, 2015. The Second Amendment amends the prior agreement to, among other things, increase the total commitment by $25,000, from $15,000 to $40,000. The $40,000 line of credit expires on May 15, 2025. CTWS maintains an additional credit agreement that was temporarily increased to $95,000 with RBS Citizens, N.A. On March 1, 2020, the amount available on the RBS Citizens, N.A. line of credit was reduced to the original amount of $75,000. The line of credit matures on December 14, 2023. As of December 31, 2020 and 2019, SJW Group had outstanding balances on the lines of credit of $175,094 and $117,209, respectively. Cost of borrowing on the lines of credit averaged 1.78% and 3.73% as of December 31, 2020 and 2019, respectively. The SJW Group and SJWTX, Inc. unsecured bank lines of credit have the following affirmative covenants calculated with the financial statements of SJW Group, on a consolidated basis: (1) the funded debt cannot exceed 66-2/3% of total capitalization, and (2) net income available for interest charges for the trailing 12-calendar-month period cannot be less than 175% of interest charges. As of December 31, 2020, SJW Group and SJWTX, Inc. were in compliance with all covenants. SJWC’s unsecured bank lines of credit have the following affirmative covenants: (1) the funded debt cannot exceed 66-2/3% of total capitalization, and (2) net income available for interest charges for the trailing 12-calendar-month period cannot be less than 175% of interest charges. As of December 31, 2020, SJWC was in compliance with all covenants. The CTWS unsecured bank lines of credit have the following affirmative covenants: (1) Connecticut Water’s earnings before interest and taxes to its interest expense shall be equal or greater to 3 to 1, (2) Maine Water’s debt to capitalization ratio shall not exceed 60%, (3) Connecticut Water’s debt to capitalization ratio shall not exceed 60%, and (4) CTWS’s debt to capitalization ratio shall not exceed 65%. As of December 31, 2020, CTWS was in compliance with all covenants. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt as of December 31 was as follows: Description Rate Maturity 2020 2019 SJW Group: Senior notes 2.47% - 4.35% 2021 - 2039 $ 610,000 560,000 SJWC: Senior notes 4.29% - 8.58% 2022 - 2049 320,000 330,000 California Pollution Control Financing Authority Revenue Bonds 4.75%, 5.10% 2040, 2046 120,000 120,000 Total SJWC 440,000 450,000 CTWS bank term loans 4.09%, 4.15% 2027, 2037 22,169 23,935 Connecticut Water: Connecticut Innovations Revenue Bonds, variable rate 2028 - 2029 22,050 22,050 Connecticut Innovations Revenue Bonds, fixed rate 5.00% 2021 22,260 22,506 Senior notes 3.53%, 3.51% 2037, 2050 70,000 35,000 Bank term loans 3.51% - 4.75% 2022 - 2036 111,090 119,090 Total Connecticut Water 225,400 198,646 SJWTX, Inc. senior note 6.27% 2036 15,000 15,000 Maine Water: State revolving fund loans 0.00% - 2.58% 2022 - 2048 18,651 16,032 Other First Mortgage Bonds 8.95% 2024 3,600 4,500 Bank term loans 4.18% - 5.51% 2024 - 2043 17,500 17,500 Total Maine Water 39,751 38,032 HVWC bank term loan 4.75% 2034 — 4,164 Avon Water mortgage loan 3.05% 2033 — 2,809 Total debt 1,352,320 1,292,586 Unamortized debt premium, net (a) 22,479 25,020 Less: Unamortized debt issuance costs 10,978 11,737 Current portion 76,241 22,272 Total long-term debt, less current portion $ 1,287,580 1,283,597 ___________________________________ (a) Consists of fair value adjustments recognized through purchase accounting for the completed merger with CTWS on October 9, 2019. Senior notes held by institutional investors are unsecured obligations of SJW Group, SJWC, Connecticut Water, SJWTX, Inc. and Maine Water and require interest-only payments until maturity. To minimize issuance costs, the companies’ debt has primarily been placed privately. SJW Group The 2011 senior note agreement of SJW Group has terms and conditions that restrict SJW Group from issuing additional funded debt if: (1) the funded consolidated debt would exceed 66-2/3% of total capitalization, and (2) the minimum net worth of SJW Group becomes less than $175,000 plus 30% of Water Utility Services cumulative net income, since June 30, 2011. SJW Group’s 2019 and 2020 unsecured senior note agreements have terms and conditions that restrict SJW Group from issuing additional funded debt if the funded consolidated debt would exceed 70% of total capitalization. As of December 31, 2020, SJW Group was not restricted from issuing future indebtedness as a result of these terms and conditions. On August 11, 2020, SJW Group entered into a note purchase agreement with the purchasers listed in the agreement, pursuant to which SJW Group sold an aggregate principal amount of $50,000 of its 2.47% Senior Notes, Series 2020, due August 1, 2030. The notes are unsecured obligations of the Company. Interest is payable semi-annually in arrears on February 1st and August 1st of each year. The note purchase agreement contains customary representations and warranties. Under the note purchase agreement, SJW Group is required to comply with certain customary affirmative and negative covenants for as long as the notes are outstanding. The notes are also subject to customary events of default, the occurrence of which may result in all of the notes then outstanding becoming immediately due and payable. On October 8, 2019, SJW Group entered into a note purchase agreement with the purchasers listed in the agreement, pursuant to which SJW Group sold an aggregate principal amount of $310,000 of its 3.05% Senior Notes, Series 2019A, due November 1, 2029, $75,000 of its 3.15% Senior Notes, Series 2019B, due November 1, 2031, and $125,000 of its 3.53% Senior Notes, Series 2019C, due November 1, 2039. The notes are unsecured obligations of the Company. Interest is payable semi-annually in arrears on May 1st and November 1st of each year. The note purchase agreement contains customary representations and warranties. Under the note purchase agreement, SJW Group is required to comply with certain customary affirmative and negative covenants for as long as the notes are outstanding. The notes are also subject to customary events of default, the occurrence of which may result in all of the notes then outstanding becoming immediately due and payable. The closing occurred simultaneously with the signing of the note purchase agreement. SJWC The senior note agreements of SJWC generally have terms and conditions that restrict the company from issuing additional funded debt if: (1) the funded debt would exceed 66-2/3% of total capitalization, and (2) net income available for interest charges for the trailing 12-calendar-month period would be less than 175% of interest charges. In addition, SJWC has a restricted payment clause which prohibits any payment or distribution, including dividends, if it exceeds the sum of (1) cumulative net income since December 31, 1991, (2) the aggregate net proceeds received from the sale of shares of its capital stock since December 31, 1991, and (3) $20,000. On November 2, 2020, SJWC paid in full its $10,000 Series C senior notes that reached maturity. As of December 31, 2020, SJWC was in compliance with all terms and conditions of these unsecured senior notes. On March 28, 2019, SJWC entered into a note purchase agreement with certain affiliates of MetLife, Inc., Brighthouse Financial, Inc. and New York Life Insurance (collectively the “Purchasers”), pursuant to which the company sold an aggregate principal amount of $80,000 of its 4.29% Senior Notes, Series M (“Series M Notes”) to the Purchasers. The Series M Notes are unsecured obligations of SJWC and are due on April 1, 2049. Interest is payable semi-annually in arrears on April 1st and October 1st of each year. The note purchase agreement contains customary affirmative and negative covenants for as long as the Series M Notes are outstanding. The Series M Notes are also subject to customary events of default, the occurrence of which may result in all of the Series M Notes then outstanding becoming immediately due and payable. The closing occurred simultaneously with the signing of the note purchase agreement. SJWC has obligations pursuant to loan agreements with the California Pollution Control Financing Activity (“CPCFA”) totaling $120,000 in aggregate principal amounts of CPCFA revenue bonds outstanding as of December 31, 2020. The loan agreements contain affirmative and negative covenants customary for loan agreements relating to revenue bonds, containing, among other things, certain disclosure obligations, the tax exempt status of the interest on the bonds and limitations, and prohibitions on the transfer of projects funded by the loan proceeds and assignment of the loan agreements. As of December 31, 2020, SJWC was in compliance with all such covenants. CTWS CTWS has outstanding term loans with a commercial bank in an aggregate amount of $22,169 as of December 31, 2020. Under the master loan agreement, CTWS is required to comply with certain financial ratio and operational covenants. The most restrictive of these covenants is to maintain a consolidated (CTWS and its subsidiaries) debt to capitalization ratio of not more than 60%. As of December 31, 2020, CTWS was in compliance with all covenants under the master loan agreement. Connecticut Water Connecticut Water has outstanding term loans with a commercial bank in an aggregate amount of $111,090 as of December 31, 2020. Under its master loan agreement, Connecticut Water is required to comply with financial and operational covenants substantially identical to those found in CTWS’ master loan agreement. Connecticut Water is required to maintain a debt to capitalization ratio of not more than 60% and an interest coverage ratio of no less than 3 to 1. On December 15, 2020, Connecticut Water paid in full a $8,000 term loan that reached maturity. As of December 31, 2020, Connecticut Water was in compliance with all covenants under its master loan agreement. Connecticut Water has outstanding $44,310 of tax exempt and taxable Water Facilities Revenue Bonds issued through Connecticut Innovations (formerly the Connecticut Development Authority). The bond indentures and loan agreements contain customary affirmative and negative covenants and require compliance with financial and operational covenants, and also provide for the acceleration of the Revenue Bonds upon the occurrence of stated events of default. As of December 31, 2020, Connecticut Water was in compliance with all covenants of the bond indentures and loan agreements. Connecticut Water has a $70,000 unsecured senior note that has terms and conditions that restrict Connecticut Water from issuing additional debt or paying a dividend to CTWS if such debt or distribution would trigger an event of default. The senior note agreement also requires Connecticut Water to maintain a debt to capitalization ratio of not more than 60% and an interest coverage ratio of no less than 3 to 1. As of December 31, 2020, Connecticut Water was in compliance with all financial ratio and operational covenants under this agreement. On March 12, 2020, Connecticut Water entered into a note purchase agreement with NYL Investors, LLC as agent of the purchasers listed in the agreement, pursuant to which Connecticut Water sold on the same date an aggregate principal amount of $35,000 of its 3.51% Senior Notes, due March 12, 2050. The notes are unsecured obligations of Connecticut Water. Interest is payable semi-annually in arrears on March 12th and September 12th of each year. The note purchase agreement contains customary representations and warranties. Under the note purchase agreement, Connecticut Water is required to comply with certain customary affirmative and negative covenants for as long as the notes are outstanding. The notes are also subject to customary events of default, the occurrence of which may result in all of the notes then outstanding becoming immediately due and payable. HVWC division had a term loan with a commercial bank due in 2034. The note was paid in full on September 24, 2020. Avon Water had a mortgage loan that is due in 2033. The note was paid in full on September 24, 2020 SJWTX, Inc. The senior note agreement of SJWTX, Inc. has terms and conditions that restrict SJWTX, Inc. from issuing additional funded debt if: (1) the funded debt would exceed 66-2/3% of total capitalization, and (2) net income available for interest charges for the trailing 12-calendar-month period would be less than 175% of interest charges. In addition, SJW Group is a guarantor of SJWTX, Inc.’s senior note which has terms and conditions that restrict SJW Group from issuing additional funded debt if: (1) the funded consolidated debt would exceed 66-2/3% of total capitalization, and (2) the minimum net worth of SJW Group becomes less than $125,000 plus 30% of Water Utility Services cumulative net income, since December 31, 2005. As of December 31, 2020, SJWTX, Inc. and SJW Group were not restricted from issuing future indebtedness as a result of these terms and conditions. Maine Water Maine Water has $18,651 of First Mortgage Bonds issued to the Maine Municipal Bond Bank through the State Safe Drinking Water Revolving Loan Fund and $3,600 of First Mortgage Bonds issued to One America. The associated bond indentures and loan agreements contain customary affirmative and negative covenants, including a prohibition on the issuance of indebtedness secured by assets or revenue of Maine Water where the lien is senior to the lien of the bond trustee under the above bonds except as permitted by the bond indentures and related loan and security agreements, a requirement to maintain a debt to capitalization ratio of not more than 65%, an interest coverage ratio of no less than 3 to 1, a dividend restriction where cumulative dividends paid since 1993 can not exceed cumulative net income since 1982 plus $120, required compliance with various financial and operational covenants, and a provision for maturity acceleration upon the occurrence of stated events of default. As of December 31, 2020, Maine Water was in compliance with all covenants in its bond indentures and related loan agreements. On December 23, 2020, Maine Water issued $4,000 of Series T First Mortgage Bonds to the Maine Municipal Bond Bank through the State Safe Drinking Water Revolving Loan Fund. The Series T bonds mature on October 1, 2041 and carry 1% interest. The Series T First Mortgage Bond covenants are the same as all other First Mortgage Bonds. The proceeds of the Series T bond issuance are represented as restricted cash on the Consolidated Balance Sheets at December 31, 2020. The restricted cash will be used for pre-approved projects primarily related to preliminary engineering and design work of a water treatment plant in Maine’s Biddeford and Saco division. On December 19, 2019, Maine Water issued $5,000 of Series S First Mortgage Bonds to the Maine Municipal Bond Bank through the State Safe Drinking Water Revolving Loan Fund. The Series S bonds mature on October 1, 2039 and carry 1% interest. The Series S First Mortgage Bond covenants are the same as all other First Mortgage Bonds. The proceeds of the Series S bond issuance are represented as restricted cash on the Consolidated Balance Sheets at December 31, 2019 and are held by a trustee for the bond until conditions are met. The restricted cash will be used for pre-approved projects primarily related to preliminary engineering and design work of a water treatment plant in Maine’s Biddeford and Saco division. The trustee released all proceeds of from the bond during the first quarter of 2020. Maine Water has outstanding term loans with a commercial bank in an aggregate amount of $17,500 as of December 31, 2020. Under its master loan agreement, Maine Water is required to comply with financial and operational covenants substantially identical to those found in CTWS and Connecticut Water’s master loan agreements. Maine is required to maintain a debt to capitalization ratio of not more than 60% and an interest coverage ratio of no less than 3 to 1. As of December 31, 2020, Maine Water was in compliance with all covenants under its master loan agreement. The following is a table of the consolidated company’s schedule of principal payments: Year 2021 $ 76,322 2022 39,179 2023 4,360 2024 48,983 2025 3,648 Thereafter 1,179,828 The estimated fair value of long-term debt as of December 31, 2020 and 2019 was approximately $1,570,727 and $1,396,205, respectively, and was determined using a discounted cash flow analysis, based on the current rates for similar financial instruments of the same duration and creditworthiness of the Company. The fair value of long-term debt would be categorized as Level 2 of the fair value hierarchy. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense were: 2020 2019 2018 Current: Federal $ 11,349 7,577 14,485 State 2,528 2,126 5,066 Deferred: Federal (8,073) (1,929) (7,702) State 2,576 680 (1,784) $ 8,380 8,454 10,065 The following table reconciles income tax expense to the amount computed by applying the federal statutory rate to income before income taxes of $69,895, $32,081 and $48,832 in 2020, 2019 and 2018: 2020 2019 2018 Income tax at federal statutory rate $ 14,678 6,737 10,255 Increase (decrease) in taxes attributable to: State taxes, net of federal income tax benefit 4,142 2,251 3,420 Uncertain tax positions 1,351 323 24 Property flow-through (9,215) (2,054) (839) Capitalized merger costs (296) 5,350 — Tax reform - rate change impact on deferred taxes — 77 — Reversal of excess deferred taxes recognized in regulatory liability (2,912) (2,355) (1,383) Pension flow-through 92 (1,244) — Stock-based compensation (333) (223) (1,602) Other items, net 873 (408) 190 $ 8,380 8,454 10,065 The components of the net deferred tax liability as of December 31 was as follows: 2020 2019 Deferred tax assets: Advances and contributions $ 22,573 19,547 Unamortized investment tax credit 619 649 Pensions, postretirement benefits and stock-based compensation 41,180 32,450 Debt premium, net 6,290 7,002 California franchise tax 756 456 Net operating loss 550 1,046 Other 6,792 7,211 Gross deferred tax assets 78,760 68,361 Valuation allowance — (1,924) Total deferred tax assets 78,760 66,437 Deferred tax liabilities: Utility plant 209,541 211,079 Pension and postretirement 31,227 22,263 Deferred gain and other-property 5,875 5,872 Regulatory asset - business combinations debt premium, net 6,290 7,002 Intangibles 3,443 3,693 Deferred revenue 297 1,962 Regulatory asset - income tax temporary differences, net 1,195 295 Section 481(a) adjustments 4,763 5,721 Other 7,544 4,148 Total deferred tax liabilities 270,175 262,035 Net deferred tax liabilities $ 191,415 195,598 Management evaluates the realizability of deferred tax assets based on all available evidence, both positive and negative. The realization of deferred tax assets is dependent on our ability to generate sufficient future taxable income during periods in which the deferred tax assets are expected to reverse. Based on all available evidence, management believes it is more likely than not that SJW Group will realize the benefits of its deferred tax assets. Accordingly, the valuation allowance relating to deferred tax assets acquired from CTWS was released in 2020 through purchase accounting adjustments made within the measurement period. Net operating loss carryforwards expire beginning in 2032 and ending in 2039. As of December 31, 2020, the estimated amount of net operating loss carryforwards available to offset future taxable income for Connecticut and Maine purposes are $29,555 and $1,087, respectively. SJW Group also acquired from the CTWS merger estimated state tax credit carryforwards of $1,033 which will expire beginning in 2021 and ending in 2040. The change in the net deferred tax liabilities of $4,183 in 2020 included other non-cash items primarily consisting of regulatory assets and liabilities relating to income tax temporary differences. The total amount of unrecognized tax benefits, before the impact of deductions for state taxes, excluding interest and penalties was $6,468 and $4,037 as of December 31, 2020 and 2019, respectively. The amount of tax benefits, net of any federal benefits for state taxes that would impact the effective rate, if recognized, is approximately $5,600 and $3,511 as of December 31, 2020 and 2019, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2020 2019 2018 Balance at beginning of year $ 3,834 1,382 1,307 Increase related to tax positions taken during the current year 1,104 351 — Increase related to tax positions taken during a prior year 1,530 3,483 75 Reductions related to tax positions taken in a prior year — (1,382) — Balance at end of year $ 6,468 3,834 1,382 The increase in gross unrecognized tax benefits in 2020 was primarily due to the uncertain tax position relating to repairs tax deductions. SJW Group’s policy is to classify interest and penalties associated with unrecognized tax benefits, if any, in tax expense. Accrued interest expense, net of the benefit of tax deductions which would be available on the payment of such interest, is approximately $107 as of December 31, 2020. SJW Group has not accrued any penalties for unrecognized tax benefits. The amount of interest recognized in 2020 was a increase to expense of $80. SJW Group does not foresee material changes to its gross uncertain tax liability within the next 12 months following December 31, 2020. On December 22, 2017 the Tax Act was signed into law. The Tax Act includes a number of changes in existing tax law impacting businesses including, among other things, a reduction in the corporate income tax rate from 35% to 21%. The rate reduction was effective on January 1, 2018. The lower tax rate benefits associated with regulatory operations governed by state public utility commissions are expected to flow back to customers with no impact to net income. The state public utility commissions have directed the water utilities to record the difference between the revenues collected under existing rates and the revenue that would have been collected had the existing rates been set using the new federal statutory income tax rate as a regulatory liability or to establish a memorandum account. In addition, the benefit of amortization of excess deferred income taxes created by the reduction of tax rate to 21% will flow back to the customers under current normalization rules and agreed upon methods with the commissions. On March 27, 2020 the CARES Act was signed into law and included several income tax provisions. The income tax provisions included modifications to net operating loss (“NOL”) usage limitations, net operating loss carrybacks, business interest expense limitations and timing of estimated tax payments. SJW Group has not generated NOLs in recent years and does not expect to generate a loss in 2020 so the CARES Act’s provisions related to carryback of losses are not applicable. The business interest limitation rules, including those changes under the CARES Act, under Section 163(j) are not applicable to the SJW Group’s regulated businesses. SJW Group has accounted for the applicable effects of the CARES Act. SJW Group files U.S. federal income tax returns and income tax returns in various states and is subject to ordinary statute of limitation of three years for federal and three or four years for different state returns. However, due to tax attribute carryforwards, SJW Group is subject to examination for tax years 2009 forward for federal and 2012 forward for state returns of CTWS and its subsidiaries. The statute of limitation for SJW Group returns is closed for these extended years and remains open for 2017 and forward for federal and 2016 or 2017 and forward for different states. |
Utility Plant Intangible Assets
Utility Plant Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Utility Plant Intangible Assets | Utility Plant Intangible Assets Intangible assets consist of a concession fee paid to the City of Cupertino of $6,800 for operating the City of Cupertino municipal water system, $13,400 related to the purchase premium for customer relationships and other intangibles of $14,967 as of December 31, 2020. Other intangibles primarily consist of $3,999 which was paid for service area and water rights related to CLWSC, $5,984 for infrastructure related to the Cupertino service concession arrangement, $1,400 for customer relationships and $1,040 incurred in conjunction with Valley Water water contracts related to the operation of SJWC. All intangible assets are recorded at cost and are primarily being amortized using the straight-line method over the legal or estimated economic life of the asset ranging from 5 to 70 years. Amortization expense for the intangible assets was $1,401, $745 and $647 for the years ended December 31, 2020, 2019 and 2018, respectively. Amortization expense for 2021 through 2025 and thereafter is anticipated to be $1,401 per year. The costs of intangible assets as of December 31, 2020 and 2019 are as follows: 2020 2019 Concession fees $ 6,800 6,800 Purchase premium customer relationships 13,400 13,400 Other intangibles 14,967 13,224 Intangible assets 35,167 33,424 Less: Accumulated amortization Concession fees 6,324 6,052 Purchase premium customer relationships 1,094 201 Other intangibles 6,479 6,926 Net intangible assets $ 21,270 20,245 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments Disclosure [Abstract] | |
Commitments | Commitments SJWC purchases water from Valley Water under terms of a master contract expiring in 2051. Delivery schedules for purchased water are based on a contract year beginning July 1, and are negotiated every three years under terms of the master contract with Valley Water. For the years ended December 31, 2020, 2019 and 2018, SJWC purchased from Valley Water 21,269 million gallons ($96,212), 21,862 million gallons ($96,285) and 21,345 million gallons ($87,702), respectively, of contract water. On June 22, 2020, the Valley Water Board of Directors approved treated water deliveries reflecting the contractual delivery schedule reduced by 10% through June 30, 2021. Based on current prices and estimated deliveries, SJWC is committed to purchase from Valley Water a minimum of 90% of the reduced delivery schedule, or 19,794 million gallons ($89,539) of water at the current contract water rate of $4.5 per million gallons for the year ending December 31, 2021. Additionally, SJWC purchases non-contract water from Valley Water on an “as needed” basis if the water supply is available. In 1997, SJWC entered into a 25-year contract agreement with the City of Cupertino to operate the City’s municipal water system. SJWC paid a one-time, upfront concession fee of $6,800 to the City of Cupertino which is amortized over the contract term. Under the terms of the contract agreement, SJWC assumed responsibility for maintenance and operating costs, while receiving all payments for water service. SJWC and the City of Cupertino signed an amendment to the lease agreement dated January 8, 2020. Under the terms of the amended lease agreement, SJWC agreed to an incremental up-front payment of $5,000 to be used by the City of Cupertino for capital improvements to the City’s municipal water system prior to the expiration of the lease in September 2022. Any unspent funds at lease termination remain the property of the City. Connecticut Water has an agreement with the South Central Connecticut Regional Water Authority (“RWA”) to purchase water from RWA. The agreement was signed in April 2006 and became effective upon the receipt of all regulatory approvals in 2008 and will remain in effect for a minimum of fifty years upon becoming effective. Connecticut Water will pay RWA $75 per year as part of a capacity agreement, for a total of 14 years, starting on the effective date of the agreement. In addition, Connecticut Water is able, but under no obligation, to purchase up to one million gallons of water per day at the then current wholesale rates per the agreement, $2.621 per million gallons as of December 31, 2020. Connecticut Water has an agreement with The Metropolitan District (“MDC”) to purchase water from MDC to serve the Unionville system. The agreement became effective on October 6, 2000 and has a term of fifty years beginning May 19, 2003, the date the water supply facilities related to the agreement were placed in service. Connecticut Water agrees to purchase 283 million gallons of water annually from MDC. The rate charged by the MDC at December 31, 2020 were $3.97 per hundred cubic feet. CLWSC has long-term contracts with the GBRA. The terms of the agreements expire in 2037, 2040, 2044 and 2050. The agreements, which are take-or-pay contracts, provide CLWSC with 6,900 acre-feet per year of water supply from Canyon Lake. The water rate may be adjusted by GBRA at any time, provided they give CLWSC a 60-day written notice on the proposed adjustment. CLWSC also has raw water supply agreements with the Lower Colorado River Authority (“LCRA”) and West Travis Public Utility Agency (“WTPUA”) expiring in 2059 and 2046, respectively, for 250 acre-feet of water under each agreement per year from Lake Austin and the Colorado River, respectively, at prices that may be adjusted periodically by the agencies. Maine Water has an agreement with the Kennebec Water District for potable water service. The agreement has been in place for 20 years and was extended on November 7, 2020 for a new term of up to 20 years. Maine Water guarantees a minimum consumption of 50 million gallons of water annually. Water sales to Maine Water are billed at a wholesale discount of $0.20 per hundred cubic feet of water below Kennebec Water District's tariffed rates. The current tariff rate wa s $1.51 per hundred cubic feet as of December 31, 2020. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Legal Proceedings [Abstract] | |
Contingencies | ContingenciesSJW Group and its subsidiaries are subject to ordinary routine litigation incidental to its business. There are no pending legal proceedings to which SJW Group or any of its subsidiaries is a party, or to which any of its properties is the subject, that are expected to have a material effect on SJW Group’s business, financial position, results of operations or cash flows. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Pension Plans SJW Group maintains noncontributory defined benefit pension plans for its eligible employees. SJWC and CTWS employees hired before March 31, 2008 and January 1, 2009, respectively, are entitled to benefits under the pension plans based on the employee’s years of service and compensation. For SJWC employees hired on or after March 31, 2008, benefits are determined using a cash balance formula based upon compensation credits and interest credits for each employee. Certain employees hired before March 1, 2012, and covered by a plan merged into the CTWS plan in 2013 are also entitled to benefits based on the employee’s years of service and compensation. Interest is credited based on the annual yield on 30-year Treasury bonds as of October for the preceding plan year with a minimum annual rate of 3.25% and a maximum annual rate of 6.00%. For the year ended December 31, 2020, interest credits assumption was 3.50%. CTWS employees hired on or after January 1, 2009 are entitled to an additional 1.5% of eligible compensation to their company sponsored savings plan. SJW Group does not have multi-employer plans. The pension plans are administered by their respective committees where the investment strategy of the investments of the various pension and post-retirement benefit plans are reviewed and approved to achieve the goals of income generation and long-term capital preservation. SJW Group engages third-party investment managers to assist with, among other things, asset allocation strategy, investment policy advice, performance monitoring, and investment manager due diligence. Individual investment decisions have been delegated by the pension plan committees to the investment managers who are also monitored by an investment consultant. Investment managers are not permitted to invest outside of the asset class or strategy under the pension plans’ investment guidelines. The committees ensure that the plans establish a target mix that is expected to achieve its investment objectives, by assuring a broad diversification of investment assets among investment types, while minimizing volatility of the target asset mix, unless market conditions make such a change appropriate to reduce risk. The pension plans require a minimum portion of plan assets to be allocated to fixed income securities and provide guidelines and restrictions on equity investments for the assets. Plan assets are marked to market at each measurement date, resulting in unrealized actuarial gains or losses. Unrealized actuarial gains and losses on pension assets are amortized over the expected future working lifetime of participants for actuarial expense calculation purposes. Market gains in 2019 decreased pension expense by approximately $5,464 in 2020 and market losses in 2018 increased pension expense by approximately $4,485 in 2019. Fo r t he year ended December 31, 2020, the net actuarial loss of the benefit obligation was related primarily a loss from changes of discount rate of $46,443, a $489 loss in data and other changes, and a gain from mortality changes of $2,139. Generally, it is expected of the investment managers that the performance of the assets held in the pension plans, computed on a total annual rate of return basis, should meet or exceed specific performance standards over a three three SJW Group calculates the market-related value of defined benefit pension plan assets, which is defined under FASB ASC Topic 715—“Compensation—Retirement Benefits” as a balance used to calculate the expected return on plan assets, using fair value. The fair value is based on quoted prices in active markets for identical assets and significant observable inputs. Senior management hired before March 31, 2008 for SJWC and January 1, 2009 for CTWS are eligible to receive additional retirement benefits under the supplemental executive retirement plans and retirement contracts (collectively, “SERP”). SJWC’s senior management hired on or after March 31, 2008 are eligible to receive additional retirement benefits under SJWC’s Cash Balance Executive Supplemental Retirement Plan ("Cash Balance Executive Supplemental Retirement Plan"). Both of the plans are non-qualified plans in which only senior management and other designated members of management may participate. The annual cost of the plans has been included in the determination of the net periodic benefit cost shown below. The SERP and Cash Balance Executive Supplemental Retirement Plan had a projected benefit obligation of $50,757 and $41,768 as of December 31, 2020 and 2019, respectively, and net periodic pension cost of $4,480, $3,219 and $2,905 for 2020, 2019 and 2018, respectively. SJWC’s plans are unfunded while CTWS’s SERP is funded through investments consisting primarily of life insurance contracts and assets in a Rabbi Trust. As of December 31, 2020 and 2019, total investments made to fund CTWS’s SERP was $7,470 and $7,070, respectively, which is included in “Investments” in SJW Group’s Consolidated Balance Sheets. The life insurance contracts are valued at cash surrender value of the policies as reported by the insurer. As of December 31, 2020 and 2019, the value of the life insurance contracts was $4,311 and $3,829, respectively. The following tables summarize the fair values of the Rabbi Trust investment assets to fund CTWS’s SERP by major categories as of December 31, 2020 and 2019 : Fair Value Measurements at December 31, 2020 Asset Category Total Quoted Significant Significant Money market funds $ 83 83 — — Mutual funds 2,101 2,101 — — Fixed income 830 830 — — Total $ 3,014 3,014 — — Fair Value Measurements at December 31, 2019 Asset Category Total Quoted Significant Significant Money market funds $ 20 20 — — Mutual funds 834 834 — — Fixed income 2,329 2,329 — — Total $ 3,183 3,183 — — Other Postretirement Benefits In addition to providing pension and savings benefits, the company also provides health care and life insurance benefits for eligible retired employees under the respective employer-sponsored post-retirement benefits other than pension plans. The benefits are paid by the company and not from plan assets due to limitations imposed by Internal Revenue Service. Flexible Spending Plan SJW Group sponsors flexible spending account plans for its employees for the purpose of providing eligible employees with the opportunity to choose from among the fringe benefits available under the plans. The flexible spending plan is intended to qualify as a cafeteria plan under the provisions of the Internal Revenue Code Section 125. The flexible spending plan allows employees to save pre-tax income in a Health Care Spending Account (“HCSA”) and/or a Dependent Care Spending Account (“DCSA”) to help defray the cost of out-of-pocket medical and dependent care expenses. The annual maximum limit under the HCSA and DCSA plans is $2.5 and $5, respectively. Savings Plans for Employees SJW Group also sponsors salary deferral plans which are defined contribution plans that allow employees to defer and contribute a portion of their earnings to the plan. Contributions, not to exceed set limits, are matched by the company. For CTWS’s employees hired on or after January 1, 2009 and ineligible to participate in the defined benefit pension plan, CTWS contributes an additional 1.5% of eligible contributions. SJW Group contributions were $2,824, $2,046 and $1,569 in 2020, 2019 and 2018, respectively. All of the company’s contributions are invested at the direction of the employees in funds offered under the plans. Special Deferral Election Plans and Deferral Election Program SJW Group maintains a special deferral election plan and a deferred compensation plan and agreements for senior management and a deferral election program for non-employee directors allowing for the deferral of a portion of their earnings each year and to realize an investment return on those funds during the deferral period. Senior management and non-employee directors have to make an election on the deferral and distribution method of the deferrals before services are rendered. CTWS’s deferred compensation plan allows the company to make discretionary contributions. Senior management and non-employee directors had deferred $6,144, $7,834 and $4,244 under the plans as of December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020 and 2019, $4,130 and $3,801, respectively, of the total amount deferred is related to CTWS agreements that were assumed as part of the merger transaction on October 9, 2019. Assumptions Utilized on Actuarial Calculations Net periodic cost for the defined benefit plans and other postretirement benefits was calculated using the following weighted-average assumptions: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 % % % % % % Discount rate 3.05 - 3.23 3.04 - 4.16 3.52 2.59 - 3.18 2.52 - 4.09 3.45 Expected return on plan assets 6.50, 6.75 7.00, 7.25 7.00 4.20, 6.50 4.00, 7.00 7.00 Rate of compensation increase 4.00 4.00 4.00 N/A N/A N/A The expected rate of return on plan assets was determined based on a review of historical returns, for the pension plans and for medium- to large-sized defined benefit pension funds with similar asset allocations. This review generated separate expected returns for each asset class. These expected future returns were then blended based on the pension plans’ target asset allocations. Benefit obligations for the defined benefit plans and other postretirement benefits were calculated using the following weighted-average assumptions as of December 31: Pension Benefits Other Benefits 2020 2019 2020 2019 % % % % Discount rate 2.29 - 2.48 3.05 - 3.23 2.18 - 2.41 2.59 - 3.18 Rate of compensation increase 4.00 4.00 N/A N/A SJW Group utilized each plan’s projected benefit stream in conjunction with the FTSE Pension Discount Curve (formerly the Citigroup Pension Discount Curve) and the FTSE Above Median Double-A Curve for SJWC and CTWS, respectively, in determining the discount rate used in calculating the pension and other postretirement benefits liabilities at the measurement date. In 2020 and 2019, SJW Group adopted the newly then issued MP-2020 and MP-2019, respectively, Mortality Improvement Scales to determine mortality assumptions. The tables and scales reflect increasing life expectancies of participants in the United States. See also “Reconciliation of Funded Status” below. Net Periodic Pension Costs Net periodic costs for the defined benefit plans and other postretirement benefits for the years ended December 31 was as follows: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Components of net periodic benefit cost Service cost $ 8,659 5,947 5,790 $ 900 581 616 Interest cost 10,484 8,506 6,879 956 775 627 Expected return on assets (15,715) (10,118) (9,255) (857) (475) (450) Amortization of prior service cost 41 48 51 97 197 197 Recognized actuarial loss 4,971 3,984 3,986 229 240 321 Net periodic benefit cost $ 8,440 8,367 7,451 $ 1,325 1,318 1,311 Reconciliation of Funded Status For the defined benefit plans and other postretirement benefits, the benefit obligation is the projected benefit obligation and the accumulated benefit obligation, respectively. The projected benefit obligations and the funded status of the defined benefit pension and other postretirement plans as of December 31 were as follows: Pension Benefits Other Benefits 2020 2019 2020 2019 Change in benefit obligation Benefit obligation at beginning of year $ 338,240 187,877 $ 32,546 17,489 Service cost 8,659 5,947 900 581 Interest cost 10,484 8,506 956 775 Business combination — 108,162 — 12,537 Actuarial (gain)/loss 42,164 35,502 2,421 2,027 Implicit rate subsidy — — (211) (217) Plan participants contributions — — 254 85 Administrative expenses paid (163) (10) — — Benefits paid (13,293) (7,744) (1,072) (731) Benefit obligation at end of year $ 386,091 338,240 $ 35,794 32,546 Change in plan assets Fair value of assets at beginning of year $ 243,521 127,610 $ 17,226 5,849 Actual return on plan assets 32,869 34,807 2,383 1,972 Business combination — 79,382 — 9,314 Employer contributions 16,609 9,476 675 738 Plan participants contributions — — 254 85 Administrative expenses paid (163) (10) (54) (55) Benefits paid (14,712) (7,744) (1,005) (677) Fair value of plan assets at end of year 278,124 243,521 19,479 17,226 Funded status at end of year $ (107,967) (94,719) $ (16,315) (15,320) The amounts recognized on the balance sheet as of December 31 were as follows: Pension Benefits Other Benefits 2020 2019 2020 2019 Current liabilities $ 2,760 1,899 $ 133 96 Noncurrent liabilities 105,207 92,820 16,182 15,224 $ 107,967 94,719 $ 16,315 15,320 SJW Group recorded a regulatory asset on the projected benefit obligation of the postretirement benefit plans as follows: 2020 2019 Funded status of obligation $ 124,282 110,039 Accrued benefit cost (28,723) (36,514) Regulatory asset, amount to be recovered in future rates $ 95,559 73,525 Plan Assets Plan assets as of December 31 were as follows: Pension Benefits Other Benefits 2020 2019 2020 2019 Fair value of assets at end of year: Debt securities $ 95,935 86,288 $ 5,684 5,608 35 % 36 % 29 % 33 % Equity securities 170,747 146,210 12,762 10,840 61 % 60 % 66 % 63 % Cash and equivalents 11,442 11,023 1,033 778 4 % 5 % 5 % 5 % Total $ 278,124 243,521 $ 19,479 17,226 The following tables summarize the fair values of plan assets by major categories as of December 31, 2020 and 2019: Fair Value Measurements at December 31, 2020 Asset Category Total Quoted Significant Significant Cash and cash equivalents $ 12,475 12,475 — — Equity securities (a) 183,509 183,509 — — Fixed Income (b) 101,619 36,012 65,607 — Total $ 297,603 231,996 65,607 — ___________________________________ (a) Actively managed portfolio of equity securities with the goal to exceed the benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the benchmark performance Fair Value Measurements at December 31, 2019 Asset Category Total Quoted Significant Significant Cash and cash equivalents $ 11,801 11,801 — — Equity securities (a) 157,050 149,265 7,785 — Fixed Income (b) 91,896 31,686 60,210 — Total $ 260,747 192,752 67,995 — ___________________________________ (a) Actively managed portfolio of equity securities with the goal to exceed the benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the benchmark performance In 2021, SJW Group expects to make required and discretionary cash contributions of up to $8,481 to the pension plans and other postretirement benefit plans. Benefits expected to be paid in the next five years and in the aggregate for the five years thereafter are: Pension Plan Other Postretirement 2021 $ 15,707 $ 1,441 2022 15,097 1,511 2023 15,979 1,596 2024 16,023 1,676 2025 16,541 1,671 2026 - 2030 91,120 8,857 |
Equity Plans
Equity Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity Plans | Equity Plans Common Stock SJW Group has a Long-Term Stock Incentive Plan (the “Plan”), which has 1,800,000 shares of common stock reserved for issuance. The Plan was initially adopted by the Board of Directors on March 6, 2002. On January 30, 2013, the amended and restated Plan was adopted by the Board and became effective on April 24, 2013. The Plan was subsequently amended and restated by the Board on July 29, 2015, and thereafter amended on November 15, 2016, October 28, 2020 and January 28, 2021. The Plan allows SJW Group to provide employees, non-employee Board members or the board of directors of any parent or subsidiary, consultants, and other independent advisors who provide services to the Company or any parent or subsidiary the opportunity to acquire an equity interest in SJW Group. A participant in the Plan generally may not receive Plan awards covering an aggregate of more than 600,000 shares of common stock in any calendar year. Additionally, awards granted under the Plan may be conditioned upon the attainment of specified Company performance goals. The types of awards included in the Plan are restricted stock awards, restricted stock units, performance shares, or other share-based awards. In addition, shares are issued to employees under the Employee Stock Purchase Plan (“ESPP”) that was approved by SJW Group stockholders. As of December 31, 2020, 2019 and 2018, 880,495, 819,340 and 793,811 shares have been issued pursuant to the Plan, and 178,106, 174,764 and 124,275 shares are issuable upon the vesting of outstanding restricted stock units and deferred restricted stock units for the years ended 2020, 2019 and 2018, respectively. The remaining shares available for issuance under the Plan are 741,399 as of December 31, 2020. The compensation costs charged to income is recognized on a straight-line basis over the requisite service period. A summary of compensation costs charged to income and proceeds from share based compensation, that are recorded to additional paid-in capital and common stock, by award type, are presented below for the years ended December 31: 2020 2019 2018 Compensation costs charged to income: ESPP $ 323 283 242 Restricted stock and deferred restricted stock 3,230 3,123 1,875 Total compensation costs charged to income $ 3,553 3,406 2,117 Proceeds from the exercise of stock options and similar instruments: ESPP 1,830 1,603 1,371 Total proceeds from the exercise of stock options and similar instruments $ 1,830 1,603 1,371 Restricted Stock and Deferred Restricted Stock Under SJW Group’s Amended and Restated Deferred Restricted Stock Program (the “Deferred Restricted Stock Program”), SJW Group granted deferred restricted stock units to non-employee Board members. This program was amended effective January 1, 2008. As a result of that amendment, no new awards of deferred restricted stock units will be made under the Deferred Restricted Stock Program with respect to Board service after December 31, 2007. A summary of SJW Group’s restricted and deferred restricted stock awards under the Plan as of December 31, 2020, and changes during the year ended December 31, 2020, are presented below: Units Weighted- Outstanding as of January 1, 2020 174,764 $ 46.63 Granted 68,995 $ 67.50 Issued (61,155) $ 44.92 Forfeited (4,498) $ 55.80 Outstanding as of December 31, 2020 178,106 $ 53.43 Shares vested as of December 31, 2020 68,317 $ 34.55 A summary of the status of SJW Group’s nonvested restricted and deferred restricted stock awards under the Plan as of December 31, 2020, and changes during the year ended December 31, 2020, are presented below: Units Weighted- Average Grant- Nonvested as of January 1, 2020 93,153 $ 39.57 Granted 68,995 $ 67.50 Vested (50,210) $ 59.17 Forfeited (2,149) $ 54.33 Nonvested as of December 31, 2020 109,789 $ 65.18 In connection with the merger with CTWS, SJW Group assumed outstanding awards of restricted stock units and deferred share units under the following stock plans: CTWS 2014 Performance Stock Program, CTWS 2004 Performance Stock Program and CTWS 1994 Performance Stock Program (collectively, the “CTWS Plan”); as of October 9, 2019 a total of 156,022 shares of SJW common stock have been reserved for issuance under the assumed awards. These assumed awards generally retain all of the rights, terms and conditions of the respective plans and award agreements under which they were originally granted. During the year ended December 31, 2020, the CTWS Plan issued, exercised and forfeited 1,701, 47,583 and 0 of shares respectively, of restricted stock based awards and deferred restricted stock. As of December 31, 2020, approximately 57,049 shares of restricted stock based awards and deferred restricted stock were outstanding under the CTWS Plan that were assumed by SJW Group on October 9, 2019. Total fair value of restricted stock awards for all plans that were vested for the years ended 2020, 2019 and 2018 were $3,333, $2,420 and $1,913, respectively. As of December 31, 2020, the total unrecognized compensation costs related to restricted and deferred restricted stock plans amounted to $4,118. This cost is expected to be recognized over a weighted-average period of 1.74 years. For the years ended December 31, 2020, 2019 and 2018, 5,327, 6,120 and 52,629, respectively, of performance-based and market-based restricted stock awards were issued upon the attainment of certain performance metrics and service-based vesting under the Plan. Based upon actual attainment relative to the target performance metric, the number of shares issuable can range between 0% to 150% of the target number of shares for performance-based restricted stock awards, or between 0% and 200% of the target number of shares for market-based restricted stock awards. As of December 31, 2020, 16,544 performance-based and market-based restricted stock awards vested and 43,257 remained outstanding. Dividend Equivalent Rights Under the Plan, certain holders of restricted stock and deferred restricted stock awards may have the right to receive dividend equivalent rights (“DERs”) each time a dividend is paid on common stock after the grant date. Stock compensation on DERs is recognized as a liability and recorded against retained earnings on the date dividends are issued. The Deferred Restricted Stock and Deferral Election Programs for non-employee Board members were amended effective January 1, 2008, to allow the DERs’ with respect to the deferred shares to remain in effect only through December 31, 2017. Accordingly, the last DERs’ conversion into deferred restricted stock units under such programs occurred on the first business day in January 2018. Previously, no such time limitation was placed in the Deferred Restricted Stock and Deferral Election Program. Certain CTWS restricted stock awards and deferred restricted stock assumed under the merger agreement retained rights to receive DERs that will convert into deferred restricted stock awards on SJW Group’ quarterly dividend payment dates. As of December 31, 2020, 2019 and 2018, a cumulative of 83,679, 81,231 and 79,478 dividend equivalent rights were converted, since inception, to deferred restricted stock awards, respectively. For the years ended December 31, 2020, 2019 and 2018, $160, $93 and $97, respectively, related to dividend equivalent rights were recorded against retained earnings and were accrued as a liability. Employee Stock Purchase Plan The ESPP allows eligible employees to purchase shares of SJW Group’s common stock at 85% of the fair value of shares on the purchase date. Under the ESPP, employees can designate up to a maximum of 10% of their base compensation for the purchase of shares of common stock, subject to certain restrictions. A total of 400,000 shares of SJW Group’s common stock have been reserved for issuance under the ESPP. The remaining shares available for issuance under the ESPP are 220,813 as of December 31, 2020. As of December 31, 2020, the ESPP had twelve purchase intervals since its inception. For the year ended December 31, 2020, 2019 and 2018, a total of 31,750, 30,255 and 25,907 shares, respectively, were issued under the ESPP. The plan has no look-back provisions. For the years ended December 31, 2020, 2019 and 2018, SJW Group’s recorded expenses were $342, $294 and $265, respectively, related to the ESPP. The total unrecognized compensation costs related to the semi-annual offering period that ended January 31, 2021 for the ESPP is approximately $160. This cost is expected to be recognized during the first quarter of 2021. |
Segment and Non-Tariffed Busine
Segment and Non-Tariffed Businesses Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment and Non-Tariffed Businesses Reporting | Segment and Non-Tariffed Businesses Reporting SJW Group is a holding company with four subsidiaries: (i) SJWC, a water utility operation with both regulated and non-tariffed businesses, (ii) SJWTX, Inc. which is doing business as CLWSC, a regulated water utility located in Canyon Lake, Texas, and its consolidated non-tariffed variable interest entity, Acequia Water Supply Corporation, (iii) SJW Land Company and its consolidated variable interest entity, 444 West Santa Clara Street, L.P., which operated commercial building rentals, and (iv) as of October 9, 2019, SJWNE LLC a holding company for CTWS and its subsidiaries, Connecticut Water, Maine Water, HVWC, Avon Water, NEWUS and Chester Realty, Inc. On September 30, 2020, Avon Water and HVWC merged into Connecticut Water after receiving merger approval from PURA. In accordance with FASB ASC Topic 280—“Segment Reporting,” SJW Group has determined that it has two reportable business segments. The first segment is that of providing water utility and utility-related services to its customers through SJW Group’s subsidiaries, SJWC, Connecticut Water, CLWSC, Maine Water and NEWUS, together referred to as “Water Utility Services.” The second segment is property management and investment activity conducted by SJW Land Company and Chester Realty, Inc., referred to as “Real Estate Services.” SJW Group’s reportable segments have been determined based on information used by the chief operating decision maker. SJW Group’s chief operating decision maker includes the Chairman, President and Chief Executive Officer, and his executive staff. The executive staff reviews financial information presented on a consolidated basis that is accompanied by disaggregated information about operating revenue, net income and total assets, by subsidiary. The following tables set forth information relating to SJW Group’s reportable segments and distribution of regulated and non-tariffed business activities within the reportable segments. Certain allocated assets, revenue and expenses have been included in the reportable segment amounts. Other business activity of SJW Group not included in the reportable segments is included in the “All Other” category. For the year ended December 31, 2020 Water Utility Services Real All Other (1) SJW Group Regulated (2) Non- Non- Non- Regulated Non- Total Operating revenue $ 548,013 10,981 5,532 — 548,013 16,513 564,526 Operating expense 431,375 6,943 3,510 5,028 431,375 15,481 446,856 Operating income (loss) 116,638 4,038 2,022 (5,028) 116,638 1,032 117,670 Net income (loss) 69,245 4,099 1,455 (13,284) 69,245 (7,730) 61,515 Depreciation and amortization 86,758 442 1,186 893 86,758 2,521 89,279 Senior note and other interest expense 33,877 — — 20,378 33,877 20,378 54,255 Income tax expense (benefit) in net income 16,563 998 467 (9,648) 16,563 (8,183) 8,380 Assets 3,197,626 8,869 44,405 60,565 3,197,626 113,839 3,311,465 For the year ended December 31, 2019 Water Utility Services Real All Other (1) SJW Group Regulated Non- Non- Non- Regulated Non- Total Operating revenue $ 407,116 7,969 5,397 — 407,116 13,366 420,482 Operating expense 329,520 5,443 3,751 24,289 329,520 33,483 363,003 Operating income (loss) 77,596 2,526 1,646 (24,289) 77,596 (20,117) 57,479 Net income (loss) 42,691 2,019 1,623 (22,930) 42,691 (19,288) 23,403 Depreciation and amortization 63,775 420 1,196 201 63,775 1,817 65,592 Senior note and other interest expense 25,073 — — 6,723 25,073 6,723 31,796 Income tax expense (benefit) in net income 8,382 708 486 (1,122) 8,382 72 8,454 Assets 3,016,846 5,507 46,778 63,339 3,016,846 115,624 3,132,470 For the year ended December 31, 2018 Water Utility Services Real All Other (1) SJW Group Regulated Non- Non- Non- Regulated Non- Total Operating revenue $ 384,639 7,578 5,482 — 384,639 13,060 397,699 Operating expense 294,536 5,012 3,539 21,172 294,536 29,723 324,259 Operating income (loss) 90,103 2,566 1,943 (21,172) 90,103 (16,663) 73,440 Net income (loss) 53,181 1,848 885 (17,147) 53,181 (14,414) 38,767 Depreciation and amortization 53,067 338 1,196 — 53,067 1,534 54,601 Senior note and other interest expense 22,157 — — 2,175 22,157 2,175 24,332 Income tax expense (benefit) in net income 14,826 719 903 (6,383) 14,826 (4,761) 10,065 Assets 1,492,954 4,489 46,517 412,429 1,492,954 463,435 1,956,389 ____________________ (1) The “All Other” category for the years ended December 31, 2020 and 2019, includes the accounts of SJW Group, SJWNE, LLC and CTWS, Inc. on a stand-alone basis. For the year ended December 31, 2018, the “All Other” category includes the accounts of SJW Group on a stand-alone basis. (2) As of December 31, 2020, the Company has performed an allocation of goodwill associated with the acquisition of CTWS to two reporting units, Connecticut and Maine, which are both aggregated within the Regulated Water Utility Services reportable segment. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On October 9, 2019, SJW Group completed the merger with CTWS, a company that provides water service throughout Connecticut and Maine. In addition, CTWS has a real estate company in Connecticut which provides property management services. SJW Group acquired all of the outstanding stock of CTWS for $70.00 per share in cash (without interest and less any applicable withholding taxes). The total cash purchase price was approximately $838,476, less cash received of $3,011, and approximately $6,384 related to outstanding awards of restricted stock units and deferred share units assumed in connection with the merger. The following table summarizes the purchase price and recording of fair values of assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments as of December 31, 2020. Amounts Previously Recognized as of Acquisition Date (a) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) Assets acquired: Utility plant, net $ 750,703 — 750,703 Nonutility plant 848 — 848 Current assets 42,673 (785) 41,888 Investments 12,489 — 12,489 Regulatory assets and deferred charges, less current portion 83,132 (4,346) 78,786 Other intangible assets 17,181 — 17,181 Other assets 2,592 — 2,592 Goodwill 626,523 (114) 626,409 Total assets acquired 1,536,141 (5,245) 1,530,896 Liabilities assumed: Long-term debt 281,009 — 281,009 Current liabilities, including maturities of long-term debt 125,772 25 125,797 Deferred income taxes 107,789 (5,411) 102,378 Postretirement benefit plans 31,789 — 31,789 Contributions in aid of construction and construction advances 137,327 — 137,327 Other long-term liabilities 10,607 141 10,748 Total liabilities assumed 694,293 (5,245) 689,048 Assumed equity $ 841,848 — 841,848 ______________________________________ (a) As previously reported in the SJW Group’s 10-K for the period ended December 31, 2019. Other intangible assets primarily consists of customer relationships. The goodwill balance is primarily attributable to assembled workforce and diversification of markets both from a geographic and regulatory perspective. We do not expect the goodwill recognized in connection with the transaction will be deductible for income tax purposes. The company analyzed and revalued the acquired opening deferred tax asset and liability balances within the measurement period which resulted in a decrease to goodwill of $114. The revaluation of acquired deferred tax assets and liabilities and related uncertain tax positions based upon facts and circumstances that existed as of the acquisition date resulted in adjustments that were recorded to goodwill. In addition, tax related valuation allowances assumed in connection with a business combination were initially estimated as of the acquisition date. Revaluation within the measurement period resulted in release of the valuation allowance as it is more likely than not that the new combined group will be able to utilize the acquired deferred tax assets. There was no impact associated with the measurement period adjustments to the consolidated statement of comprehensive income for the year ended December 31, 2020. The following unaudited pro forma financial information summarizes the combined results of operations for SJW Group and CTWS, as though the companies were combined as of January 1, 2018. Fiscal Year Ended 2019 2018 Total revenues $ 515,153 514,364 Pretax income (loss) 60,862 72,938 Net income (loss) 56,968 65,449 Basic earnings per share 2.00 2.31 The historical consolidated financial information has been adjusted in the pro forma combined financial statements to give effect to pro forma events that are: (1) directly attributable to the transaction, (2) factually supportable and (3) expected to have continuing impact on the combined results of SJW Group and CTWS. As such, the impact of non-recurring transaction related expenses is not included. The pro forma financial statements do not reflect all cost savings (or associated costs to achieve such savings) from operating efficiencies or synergies that could result from the transaction. In addition, the pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at January 1, 2018. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data Summarized quarterly financial data is as follows: 2020 Quarter Ended March June September December Operating revenue $ 115,754 147,209 165,863 135,700 Operating income 15,427 36,070 41,883 24,290 SJW Group net income 2,417 19,721 26,093 13,284 Comprehensive income 2,282 19,731 26,169 12,142 Earnings per share: —Basic 0.08 0.69 0.91 0.47 —Diluted 0.08 0.69 0.91 0.46 Market price range of stock: —High 74.73 65.93 71.06 70.34 —Low 49.48 53.11 58.56 60.11 Dividend per share 0.32 0.32 0.32 0.32 2019 Quarter Ended March June September December Operating revenue $ 77,682 102,965 113,997 125,838 Operating income 12,408 21,971 17,084 6,016 SJW Group net income 5,873 13,538 9,478 (5,486) Comprehensive income 5,873 13,538 9,478 (5,360) Earnings per share: —Basic 0.21 0.48 0.33 (0.20) —Diluted 0.21 0.47 0.33 (0.19) Market price range of stock: —High 63.76 63.40 69.23 74.47 —Low 54.74 59.83 61.23 67.13 Dividend per share 0.30 0.30 0.30 0.30 |
Financial Statement Schedule
Financial Statement Schedule | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Financial Statement Schedule | FINANCIAL STATEMENT SCHEDULE Schedule I SJW Group (Parent Only) CONDENSED BALANCE SHEETS (in thousands, except share and per share data) December 31, 2020 2019 Assets Investments in subsidiaries $ 1,536,106 1,466,110 Current assets: Cash and cash equivalents 436 1,035 Intercompany receivables 258 — Income tax receivable — 7,491 Intercompany notes receivable 15,680 6,727 Other current assets 124 — 16,498 15,253 Other assets Other — 13 — 13 $ 1,552,604 1,481,376 See Accompanying Notes to Schedule I FINANCIAL STATEMENT SCHEDULE Schedule I SJW Group (Parent Only) CONDENSED BALANCE SHEETS (in thousands, except share and per share data) December 31, 2020 2019 Capitalization and Liabilities Capitalization: Stockholders’ equity: Common stock, $0.001 par value; authorized 70,000,000 shares in 2020 and 2019; issued and outstanding 28,556,605 shares in 2020 and 28,456,508 shares in 2019 $ 29 28 Additional paid-in capital 510,158 506,639 Retained earnings 408,037 383,191 Accumulated other comprehensive income (1,064) 126 Total stockholders’ equity 917,160 889,984 Long-term debt, less current portion 555,824 555,820 1,472,984 1,445,804 Current liabilities: Current portion of long-term debt 49,929 — Intercompany payables — 2,349 Intercompany notes payable 19,540 24,465 Accounts payable 170 1,042 Accrued interest 3,195 3,748 Income tax payable 3,268 — Other current liabilities 252 912 76,354 32,516 Deferred income taxes 2,623 1,994 Other noncurrent liabilities 643 1,062 Commitments and contingencies — — $ 1,552,604 1,481,376 See Accompanying Notes to Schedule I FINANCIAL STATEMENT SCHEDULE Schedule I SJW Group (Parent Only) CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Years ended December 31 (in thousands) 2020 2019 2018 Operating revenue $ — — — Operating expense: Administrative and general 3,110 8,130 2,312 Property taxes and other non-income taxes 250 250 250 Merger related expenses — 14,849 18,610 Total operating expense 3,360 23,229 21,172 Operating loss (3,360) (23,229) (21,172) Other (expense) income: Interest on long-term debt, mortgage and other interest expense (19,430) (6,615) (2,264) Interest income on money market fund — 6,536 155 Other, net (250) 89 (248) Loss before income taxes and equity earnings from subsidiaries (23,040) (23,219) (23,529) Benefit for income taxes (6,414) (1,431) (6,917) Equity earnings from subsidiaries, net of taxes 78,141 45,191 55,379 SJW Group net income 61,515 23,403 38,767 Other comprehensive (loss) income, net (1,190) 126 — SJW Group comprehensive income $ 60,325 23,529 38,767 See Accompanying Notes to Schedule I FINANCIAL STATEMENT SCHEDULE Schedule I SJW Group (Parent Only) CONDENSED STATEMENTS OF CASH FLOWS Years ended December 31 (in thousands) 2020 2019 2018 Operating activities: Net income $ 61,515 23,403 38,767 Adjustments to reconcile net income to net cash used in operating activities: Earnings from investment in subsidiaries (78,141) (45,191) (55,379) Deferred income taxes 162 4,606 (5,565) Share-based compensation 466 141 44 Other non-cash, net — — 423 Changes in operating assets and liabilities, net of acquired assets and liabilities: Accounts payable and other current liabilities (1,532) 255 1,039 Intercompany receivables (2,607) 2,045 209 Tax receivable and accrued taxes 10,759 (6,779) (5,592) Accrued interest (553) 3,742 — Return on capital from investments in subsidiaries 47,800 28,600 20,750 Other changes, net 367 808 36 Net cash provided by (used in) operating activities 38,236 11,630 (5,268) Investing activities: Proceeds to subsidiaries for notes receivable (10,353) (102,522) (2,030) Repayments from subsidiaries for notes receivable 1,400 95,795 17,458 Investments in subsidiaries (37,952) (62,262) — Payments for business acquisition — (837,903) — Proceeds from sale of equity investments — — 4,112 Net cash (used in) provided by investing activities (46,905) (906,892) 19,540 Financing activities: Borrowings from subsidiaries for notes payable 54,837 29,865 12,705 Repayments to subsidiaries for notes payable (59,762) (17,705) (3,358) Long-term borrowings 50,000 510,000 — Issuance of common stock, net of issuance costs — — 411,385 Debt issuance costs (496) (3,957) — Dividends paid (36,509) (34,134) (23,074) Other changes, net — (10) — Net cash provided by financing activities 8,070 484,059 397,658 Net change in cash and cash equivalents (599) (411,203) 411,930 Cash and cash equivalents, beginning of year 1,035 412,238 308 Cash and cash equivalents, end of year $ 436 1,035 412,238 Cash paid during the year for: Interest $ 19,442 2,203 2,175 Income taxes $ 3,466 689 824 Supplemental disclosure of non-cash activities: Share-based compensation from investment in subsidiaries $ 2,894 4,663 (714) See Accompanying Notes to Schedule I FINANCIAL STATEMENT SCHEDULE Schedule I SJW Group (Parent Only) NOTES TO CONDENSED FINANCIAL STATEMENTS Years ended December 31, 2020, 2019 and 2018 (Dollars in thousands, except share and per share data) Restrictions on Dividends and Other Distributions SJW Group is a legal entity separate and distinct from its various subsidiaries. As a holding company with no significant operations of its own, SJW Group’s principal sources of funds are dividends or other distributions from its operating subsidiaries, borrowings and sales of equity. The rights of SJW Group and, consequently, its creditors and shareholders, to participate in any distribution of assets of any of its subsidiaries are subject to certain prior claims of creditors of such subsidiary. The abilities of certain of SJW Group’s subsidiaries to transfer funds to SJW Group in the form of cash dividends, loans or advances are subject to certain contractual and regulatory restrictions. SJW Group and its subsidiaries are subject to debt covenants that could limit their respective abilities to pay dividends. For a discussion on these covenants, see Note 4 to SJW Group and Subsidiaries Notes to Consolidated Financial Statements. In addition, Connecticut Water Service, Inc. (“CTWS”) and its regulated subsidiaries are prohibited from paying dividends if not in compliance with minimum equity requirements under commitments made by SJW Group as part of the approval granted by the Connecticut Public Utilities Regulatory Authority and the Maine Public Utilities Commission in connection with the merger with CTWS. As of December 31, 2020, the restricted net assets of SJW Group’s subsidiaries was approximately $283,807 or 31% of consolidated net assets of SJW Group. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | SJW Group and Subsidiaries FINANCIAL STATEMENT SCHEDULE Schedule II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Years ended December 31, 2020, 2019 and 2018 (in thousands) Description 2020 2019 2018 Allowance for doubtful accounts: Balance, beginning of period $ 1,512 272 190 Opening balance, SJWNE, LLC — 1,283 — Charged to expense (177) 520 430 Charged to regulatory asset 3,032 — — Accounts written off (800) (875) (650) Recoveries of accounts written off 324 312 302 Balance, end of period $ 3,891 1,512 272 Reserve for litigation and claims: Balance, beginning of period $ 2,898 2,181 1,892 Charged to expense 958 3,221 480 Revision to accrual, due to settlements (122) (135) 1 Payments (3,050) (2,369) (192) Balance, end of period $ 684 2,898 2,181 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation Policy | The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of SJW Group, its wholly owned subsidiaries, and two variable interest entities in which two SJW Group subsidiaries are the primary beneficiaries. The accounting policies of SJW Group’s subsidiaries comply with the applicable uniform system of accounts prescribed by the respective regulators. All intercompany transactions and balances have been eliminated in consolidation. The accounting policies of SJW Group’s subsidiaries comply with the applicable uniform system of accounts prescribed by the respective regulators and conform to generally accepted accounting principles for rate-regulated public utilities. |
Recently Adopted Accounting Principles and New Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Principles In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendments. Topic 326 requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 was effective for SJW Group in the first quarter of fiscal 2020. The adoption of ASU 2016-13 did not have a material impact on the consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20: “Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans,” which aims to improve the overall usefulness of disclosure to financial statement users and reduce unnecessary costs to companies when preparing defined benefit plan disclosures. This update was effective for SJW Group’s Form 10-K for the year ending December 31, 2020. Retrospective adoption is required and early adoption is permitted. The adoption of ASU 2018-14 did not have a material impact on the condensed consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”, which simplifies the accounting for income taxes, eliminates certain exceptions within Topic 740, “Income Taxes”, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. This update is effective for fiscal years beginning after December 15, 2021. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. Management is currently evaluating the impacts of the provisions of ASU 2019-12 on the consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Depreciable Utility Plant and Equipment | Depreciation is computed using the straight-line method over the estimated remaining service lives of groups of assets. The estimated service lives of depreciable plant and equipment are as follows: Useful Lives Equipment 5 to 35 years Transmission and distribution plant 35 to 75 years Office buildings and other structures 7 to 50 years For the years 2020, 2019 and 2018, depreciation expense as a percent of the beginning of the year balance of depreciable plant was approximately 3.2%, 3.8% and 3.6%, respectively. Depreciation expense for utility plant for the years ended December 31, 2020, 2019 and 2018 was $86,823, $63,785 and $53,031, respectively. For the years 2020, 2019 and 2018, the amounts allocated to administrative and general expense were $2,343, $2,869 and $2,306, respectively. The cost of utility plant retired, including retirement costs (less salvage), is charged to accumulated depreciation and no gain or loss is recognized. Allowance For Funds Used During Construction (“AFUDC”) AFUDC represents the capitalized costs of borrowed funds or a return on equity funds used to finance utility plant under construction and is capitalized as part of construction work in progress. AFUDC is recorded to the extent approved by the respective states’ utility regulators and is recovered through water rates as the utility plant depreciates. The amount of interest capitalized in 2020, 2019 and 2018 was $4,133, $4,323 and $2,856, respectively. Interest on long-term debt is presented net of amounts capitalized on the Consolidated Statement of Comprehensive Income. The amount of equity funds capitalized in 2020 was $1,249, reflected in “Other, net” on the Consolidated Statement of Comprehensive Income. Prior to the merger with CTWS on October 9, 2019, SJW Group did not have AFUDC for equity funds. |
Intangible Assets | Intangible Assets Intangible assets are recorded at cost and are amortized using the straight-line method over the estimated useful life of the asset, ranging from 5 to 70 years (see Note 6, “Utility Plant Intangible Assets”). |
Real Estate Investments | Real Estate Investments Real estate investments are recorded at cost and consist primarily of land and buildings. Net gains and losses from the sale of real estate investments are recorded as a component of other (expense) income in the Consolidated Statements of Comprehensive Income. Nonutility property in Water Utility Services is also classified in real estate investments. Nonutility property is property that is neither used nor useful in providing water utility services to customers and is excluded from rate base for rate-setting purposes. SJWC recognizes gain/loss on disposition of nonutility property in accordance with California |
Business Combinations | Business Combinations SJW Group applies the provisions of ASC Topic 805—“Business Combinations” for the purchase accounting related to the merger with CTWS on October 9, 2019. Topic 805 requires SJW Group to recognize separately from goodwill the assets acquired and the liabilities assumed at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While SJW Group used our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates were inherently uncertain and subject to refinement. As a result, during the one year measurement period from the acquisition date, we recorded adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments were recorded to our Consolidated Statements of Comprehensive Income. Accounting for business combinations requires SJW Group to make significant estimates and assumptions, especially at the acquisition date, including estimates for intangible assets, contractual obligations assumed and pre-acquisition contingencies. Although SJW Group believes that the assumptions and estimates we make are reasonable and appropriate, they are based in part on historical experience and information obtained from CTWS’s management |
Impairment of Long-Lived Assets and Goodwill | Impairment of Long-Lived Assets and Goodwill In accordance with the requirements of FASB ASC Topic 360—“Property, Plant and Equipment,” the long-lived assets of SJW Group are reviewed for impairment when changes in circumstances or events require adjustments to the carrying values of the assets. When such changes in circumstances or events occur, the company assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. To the extent an impairment exists, the asset is written down to its estimated fair value with a corresponding charge to operations in the period in which the impairment is identified. Long-lived assets consist primarily of utility plant in service, goodwill, regulatory assets, real estate investments and intangible assets. SJW Group first performs a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. In assessing the qualitative factors, SJW Group considers the impact of these key factors: change in industry and competitive environment, financial performance, and other relevant Company-specific events. If SJW Group determines that as a result of the qualitative assessment it is more likely than not (> 50% likelihood) that the fair value is less than carrying amount, then a quantitative test is performed. No impairments occurred during 2020, 2019 or 2018. |
Cash and Cash Equivalents, and Restricted Cash | Cash and Cash Equivalents, and Restricted CashCash and cash equivalents primarily consist of cash on deposit with banks with maturities of three months or less from the date of purchase. Restricted funds consist of proceeds from a Maine state revolving fund bond issuances to Maine Water of $5,000 and $4,000 on December 19, 2019 and December 23, 2020, respectively for capital expenditures. Proceeds are held by a trustee for the bonds and as funding conditions are met, funds are released. |
Financial Instruments and Investments | Financial Instruments and Investments The following instruments are not measured at fair value on the company’s consolidated balance sheets but, require disclosure of fair values: cash and cash equivalents, accounts receivable and accounts payable. The estimated fair value of such instruments approximates their carrying value as reported on the consolidated balance sheets. The fair value of such financial instruments are determined using the income approach based on the present value of estimated future cash flows. The fair value of these instruments would be categorized as Level 2 in the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level 1. The fair value of long-term debt is discussed in Note 4, “Long-Term Debt” and pension plan assets in Note 9, “Benefit Plans”. |
Balancing and Memorandum Accounts | Balancing and Memorandum Accounts In California, the CPUC has established a balancing account mechanism for the purpose of tracking the under-collection or over-collection associated with expense changes and the revenue authorized by the CPUC to offset those expense changes. SJWC also maintains memorandum accounts to track revenue impacts due to catastrophic events, certain unforeseen water quality expenses related to new federal and state water quality standards, energy efficiency, water conservation, water tariffs, and other approved activities or as directed by the CPUC. |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Water Utility Services recognizes regulatory assets and liabilities for amounts that are deemed probable of recovery from, or refund to, customers. Determining probability requires significant judgement by management and includes assessing evidence that may exist prior to regulatory authorization, including regulatory rules and decisions, historical ratemaking practices, and other facts and circumstances that would indicate that recovery or refund is probable. If the utility determined that it is no longer probable that regulatory assets would be recovered or reflected in future rates, or if the utility ceased to be subject to rate regulation, the regulatory assets would be charged against income in the period in which that determination was made. If regulatory accounting did not apply, the utility’s future financial results could become more volatile as compared to historical financial results due to the differences in the timing of expense or revenue recognition. The company adjusts the related asset and liabilities for these items through its regulatory asset and liability accounts at year-end, except for certain postretirement benefit costs and balancing and memorandum accounts which are adjusted monthly. Rate-regulated enterprises are required to charge a regulatory asset to earnings if and when it is determined that the asset is no longer probable of recovery. SJW Group continually evaluates the recoverability of regulatory assets by assessing whether the amortization of the balance over the remaining life can be recovered through expected and undiscounted future cash flows. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the effect of temporary differences between financial and tax reporting. Deferred tax assets and liabilities are measured using current tax rates in effect. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. To the extent permitted by the regulators, investment tax credits resulting from utility plant additions are deferred and amortized over the estimated useful lives of the related property. |
Advances for Construction and Contributions in Aid of Construction | Contributions in aid of construction represent funds received from developers that are not refundable under applicable regulations. Depreciation applicable to utility plant constructed with these contributions is charged to contributions in aid of construction. Customer advances and contributions in aid of construction received subsequent to 1986 and prior to June 12, 1996 generally must be included in federal taxable income, except for CTWS. Taxes paid relating to advances and contributions are recorded as deferred tax assets for financial reporting purposes and are amortized over 40 years for advances and over the tax depreciable life of the related asset for contributions. Receipts subsequent to June 12, 1996 are generally exempt from federal taxable income, unless specifically prescribed under treasury regulations, including CTWS. Advances and contributions received subsequent to 1991 and prior to 1997 are included in state taxable income, except for CTWS. |
Asset Retirement Obligations | Asset Retirement ObligationSJW Group’s asset retirement obligation is recorded as a liability included in other non-current liabilities. It reflects principally the retirement costs of wells and other anticipated clean-up costs, which by law, must be remediated upon retirement. Retirement costs have historically been recovered through rates at the time of retirement. As a result, a regulatory asset is also recorded. |
Revenue | Revenue Management has determined that the company has principally four categories of revenues. The first category is recognized in accordance with ASC Topic 606- “Revenue from Contracts with Customers” and represents metered revenue of Water Utility Services which includes billings to customers based on meter readings plus an estimate of water used between the customers’ last meter reading and the end of the accounting period. SJW Group satisfies its performance obligation upon delivery of water to the customer at which time the customer consumes the benefits provided by the company. The customer is typically billed on a quarterly or bi-monthly basis after water delivery has occurred. The customer is charged both a service charge which is based upon meter size and covers a portion of the fixed costs of furnishing water to the customer and a consumption charge based on actual water usage. Unbilled revenue from the last meter reading date to the end of the accounting period is estimated based on the most recent usage patterns, production records and the effective tariff rates. As the company has the right to bill for services that it has provided, SJW Group estimates the dollar value of deliveries during the unbilled period and recognizes the associated revenue. Actual results could differ from those estimates, which may result in an adjustment to revenue when billed in a subsequent period. The second category is recognized in accordance with ASC Topic 980-605-25, “Alternative Revenue Programs”. Under Programs established by the CPUC and PURA, allowing for automatic adjustment of future rates, the company recognizes revenue when it is objectively determinable, probable of recovery and expected to be collected within 24 months of the year-end in which the revenue is recognized. A reserve, based on an estimate of actual usage over the recovery period, is recorded for amounts SJW Group estimates will not be collected within the 24-month period. SJW Group’s alternative revenue programs include SJWC’s WCMA and CTWS’s WRA. • The WCMA allowed SJWC to track lost revenue, net of related water costs, associated with reduced sales due to water conservation and associated calls for water use reductions. SJWC recorded the lost revenue captured in the WCMA balancing accounts. In December 2019, CPUC denied SJWC’s request to recover the 2018 WCMA balance. As a result of the decision, during the year ended December 31, 2019, SJWC wrote off a total balance of $9,386 related to 2018 lost revenue and $639 related to 2019 lost revenue that was recorded in the 2018 and 2019 WCMA accounts, respectively. • The WRA allows Connecticut Water to mitigate risk associated with changes in demand. The WRA is used to reconcile actual water demands with the demands projected in the most recent general rate case and allows companies to implement a surcharge or surcredit as necessary to recover the revenues approved in the general rate case. The WRA allows the company to defer, as a regulatory asset or liability, the amount by which actual revenues deviate from the revenues allowed in the most recent general rate proceedings. The third category represents the impact of other balancing and memorandum accounts and other regulatory mechanisms that are accounted for under FASB ASC Topic 980 - “Regulated Operations”. Balancing and memorandum accounts are recognized by SJWC when it is probable that future recovery of previously incurred costs or future refunds that are to be credited to customers will occur through the ratemaking process. |
Share-Based Compensation | Share-Based Compensation SJW Group calculates the fair value of service-based and performance-based restricted stock awards based on the grant date fair value of the company’s stock price reduced by the present value of the dividends expected to be declared on outstanding shares. SJW Group utilizes the Monte Carlo valuation model, which requires the use of subjective assumptions, to compute the fair value of market-vesting restricted stock units. The compensation cost for service-based restricted stock awards are charged to income on a straight-line basis over the requisite service period, which is the vesting period. For performance-based stock awards, compensation expense is charged to income on a straight-line basis over the requisite service period based on expected attainment of performance targets. Changes in the estimates of the expected attainment of performance targets will result in a change in the number of shares that are expected to vest which may cause a cumulative catch up for the amount of share-based compensation expense during each reporting period in which such estimates are altered. Forfeitures are accounted for as they occur. |
Earnings Per Share | Earnings per ShareBasic earnings per share is calculated using income available to common stockholders, divided by the weighted average number of shares outstanding during the year. Diluted earnings per share is calculated using income available to common stockholders divided by the weighted average number of shares of common stock including both shares outstanding and shares potentially issuable in connection with deferred restricted common stock awards under SJW Group’s Long-Term Incentive Plan and shares potentially issuable under the Employee Stock Purchase Plans. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The major components of depreciable plant and equipment as of December 31, 2020 and 2019 are as follows: 2020 2019 Equipment $ 567,904 521,183 Transmission and distribution 1,699,953 2,207,051 Office buildings and other structures 930,203 260,220 Total depreciable plant and equipment $ 3,198,060 2,988,454 Depreciation is computed using the straight-line method over the estimated remaining service lives of groups of assets. The estimated service lives of depreciable plant and equipment are as follows: Useful Lives Equipment 5 to 35 years Transmission and distribution plant 35 to 75 years Office buildings and other structures 7 to 50 years |
Schedule of Real Estate Investments | The major components of real estate investments as of December 31, 2020 and 2019 are as follows: 2020 2019 Land $ 14,168 14,168 Buildings and improvements 43,961 43,531 Total real estate investment $ 58,129 57,699 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following schedule shows the future minimum rental payments to be received from third parties under operating leases that have remaining noncancelable lease terms in excess of one year as of December 31, 2020: Year ending December 31: Rental Revenue 2021 $ 4,264 2022 2,745 2023 2,565 2024 2,645 2025 2,833 Thereafter 7,711 |
Schedule of Balancing and Memorandum Accounts | SJWC met the recognition requirements for certain of its balancing and memorandum accounts and certain amounts subject to balancing and memorandum accounts and recorded regulatory assets, net, as follows: For the year ended December 31, 2020 Beginning Balance Regulatory Asset Refunds (Collections) Ending Revenue accounts: Monterey WRAM $ 7,015 2,464 2,598 12,077 2014 - 2017 WCMA 708 — (42) 666 2012 General Rate Case true-up 752 — — 752 Cost of capital memorandum accounts (1,553) (8) — (1,561) Tax memorandum account (6,643) (2) 6,978 333 All others (2,219) 62 (67) (2,224) Total revenue accounts (1,940) 2,516 9,467 10,043 Cost-recovery accounts: Water supply costs 4,328 3,828 (33) 8,123 Pension 2,449 1,008 21 3,478 PRVMA — 1,219 (111) 1,108 CEMA — 2,266 — 2,266 All others 446 3 (4) 445 Total cost-recovery accounts 7,223 8,324 (127) 15,420 Total $ 5,283 10,840 9,340 25,463 For the year ended December 31, 2019 Beginning Balance Regulatory Asset Refunds (Collections) Ending Revenue accounts: Monterey WRAM $ 6,847 4,582 (4,414) 7,015 2014 - 2017 WCMA 7,750 — (7,042) 708 2018 WCMA 9,386 (9,386) — — 2012 General Rate Case true-up 11,328 96 (10,672) 752 Cost of capital memorandum accounts (1,523) (30) — (1,553) Tax memorandum account (6,504) (139) — (6,643) All others (1,735) (107) (377) (2,219) Total revenue accounts 25,549 (4,984) (22,505) (1,940) Cost-recovery accounts: Water supply costs 9,617 207 (5,496) 4,328 Pension (1,843) 745 3,547 2,449 All others 1,090 10 (654) 446 Total cost-recovery accounts 8,864 962 (2,603) 7,223 Total $ 34,413 (4,022) (25,108) 5,283 |
Schedule of Regulatory Assets and Liabilities | Regulatory assets, net, are comprised of the following as of December 31: 2020 2019 Regulatory assets: Income tax temporary differences, net (a) $ 6,230 2,433 Postretirement pensions and other medical benefits 95,559 73,525 Business combinations debt premium, net 22,479 25,020 Balancing and memorandum accounts, net 25,463 5,283 WRA (b) 323 9,108 Other, net (c) 8,176 5,048 Total regulatory assets, net 158,230 120,417 Less: current regulatory asset, net 1,748 6,472 Total regulatory assets, net, less current portion $ 156,482 113,945 ___________________________________ (a) The company expects to recover regulatory assets related to plant depreciation income tax temporary differences over the average lives of the plant assets of between 5 to 75 years. (b) WRA is a Connecticut Water decoupling mechanism that qualifies as an alternative revenue program. It is used to reconcile actual water demands with the demands projected in the most recent general rate case and allows companies to implement a surcharge or surcredit as necessary to recover the revenues approved in the general rate case. (c) Other, net includes other regulatory mechanisms, accrued benefits for vacation, and asset retirement obligations that have not yet been passed through in rates. |
Schedule of Estimated Refunds of Advances for Construction and Contributions in Aid of Construction | Estimated refunds for the next five years and thereafter are shown below: Estimated Refunds 2021 $ 3,050 2022 3,050 2023 3,038 2024 2,958 2025 2,896 Thereafter 52,462 |
Schedule of Asset Retirement Obligations | As of December 31, 2020 and 2019, the asset retirement obligation is as follows: 2020 2019 Retirement obligation $ 4,619 4,803 Discount rate 6 % 6 % Retirement obligation, present value $ 939 942 |
Disaggregation of Revenue | The major streams of revenue for SJW Group are as follows: 2020 2019 2018 Revenue from contracts with customers $ 549,270 447,720 389,302 Alternative revenue programs, net (493) (18,232) 10,456 Other balancing and memorandum accounts revenue and regulatory mechanisms, net 10,217 (14,403) (7,541) Rental income 5,532 5,397 5,482 $ 564,526 420,482 397,699 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt as of December 31 was as follows: Description Rate Maturity 2020 2019 SJW Group: Senior notes 2.47% - 4.35% 2021 - 2039 $ 610,000 560,000 SJWC: Senior notes 4.29% - 8.58% 2022 - 2049 320,000 330,000 California Pollution Control Financing Authority Revenue Bonds 4.75%, 5.10% 2040, 2046 120,000 120,000 Total SJWC 440,000 450,000 CTWS bank term loans 4.09%, 4.15% 2027, 2037 22,169 23,935 Connecticut Water: Connecticut Innovations Revenue Bonds, variable rate 2028 - 2029 22,050 22,050 Connecticut Innovations Revenue Bonds, fixed rate 5.00% 2021 22,260 22,506 Senior notes 3.53%, 3.51% 2037, 2050 70,000 35,000 Bank term loans 3.51% - 4.75% 2022 - 2036 111,090 119,090 Total Connecticut Water 225,400 198,646 SJWTX, Inc. senior note 6.27% 2036 15,000 15,000 Maine Water: State revolving fund loans 0.00% - 2.58% 2022 - 2048 18,651 16,032 Other First Mortgage Bonds 8.95% 2024 3,600 4,500 Bank term loans 4.18% - 5.51% 2024 - 2043 17,500 17,500 Total Maine Water 39,751 38,032 HVWC bank term loan 4.75% 2034 — 4,164 Avon Water mortgage loan 3.05% 2033 — 2,809 Total debt 1,352,320 1,292,586 Unamortized debt premium, net (a) 22,479 25,020 Less: Unamortized debt issuance costs 10,978 11,737 Current portion 76,241 22,272 Total long-term debt, less current portion $ 1,287,580 1,283,597 ___________________________________ (a) Consists of fair value adjustments recognized through purchase accounting for the completed merger with CTWS on October 9, 2019. |
Schedule of Maturities of Long-term Debt | The following is a table of the consolidated company’s schedule of principal payments: Year 2021 $ 76,322 2022 39,179 2023 4,360 2024 48,983 2025 3,648 Thereafter 1,179,828 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense were: 2020 2019 2018 Current: Federal $ 11,349 7,577 14,485 State 2,528 2,126 5,066 Deferred: Federal (8,073) (1,929) (7,702) State 2,576 680 (1,784) $ 8,380 8,454 10,065 |
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles income tax expense to the amount computed by applying the federal statutory rate to income before income taxes of $69,895, $32,081 and $48,832 in 2020, 2019 and 2018: 2020 2019 2018 Income tax at federal statutory rate $ 14,678 6,737 10,255 Increase (decrease) in taxes attributable to: State taxes, net of federal income tax benefit 4,142 2,251 3,420 Uncertain tax positions 1,351 323 24 Property flow-through (9,215) (2,054) (839) Capitalized merger costs (296) 5,350 — Tax reform - rate change impact on deferred taxes — 77 — Reversal of excess deferred taxes recognized in regulatory liability (2,912) (2,355) (1,383) Pension flow-through 92 (1,244) — Stock-based compensation (333) (223) (1,602) Other items, net 873 (408) 190 $ 8,380 8,454 10,065 |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax liability as of December 31 was as follows: 2020 2019 Deferred tax assets: Advances and contributions $ 22,573 19,547 Unamortized investment tax credit 619 649 Pensions, postretirement benefits and stock-based compensation 41,180 32,450 Debt premium, net 6,290 7,002 California franchise tax 756 456 Net operating loss 550 1,046 Other 6,792 7,211 Gross deferred tax assets 78,760 68,361 Valuation allowance — (1,924) Total deferred tax assets 78,760 66,437 Deferred tax liabilities: Utility plant 209,541 211,079 Pension and postretirement 31,227 22,263 Deferred gain and other-property 5,875 5,872 Regulatory asset - business combinations debt premium, net 6,290 7,002 Intangibles 3,443 3,693 Deferred revenue 297 1,962 Regulatory asset - income tax temporary differences, net 1,195 295 Section 481(a) adjustments 4,763 5,721 Other 7,544 4,148 Total deferred tax liabilities 270,175 262,035 Net deferred tax liabilities $ 191,415 195,598 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2020 2019 2018 Balance at beginning of year $ 3,834 1,382 1,307 Increase related to tax positions taken during the current year 1,104 351 — Increase related to tax positions taken during a prior year 1,530 3,483 75 Reductions related to tax positions taken in a prior year — (1,382) — Balance at end of year $ 6,468 3,834 1,382 |
Utility Plant Intangible Asse_2
Utility Plant Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The costs of intangible assets as of December 31, 2020 and 2019 are as follows: 2020 2019 Concession fees $ 6,800 6,800 Purchase premium customer relationships 13,400 13,400 Other intangibles 14,967 13,224 Intangible assets 35,167 33,424 Less: Accumulated amortization Concession fees 6,324 6,052 Purchase premium customer relationships 1,094 201 Other intangibles 6,479 6,926 Net intangible assets $ 21,270 20,245 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Allocation of Plan Assets | The following tables summarize the fair values of the Rabbi Trust investment assets to fund CTWS’s SERP by major categories as of December 31, 2020 and 2019 : Fair Value Measurements at December 31, 2020 Asset Category Total Quoted Significant Significant Money market funds $ 83 83 — — Mutual funds 2,101 2,101 — — Fixed income 830 830 — — Total $ 3,014 3,014 — — Fair Value Measurements at December 31, 2019 Asset Category Total Quoted Significant Significant Money market funds $ 20 20 — — Mutual funds 834 834 — — Fixed income 2,329 2,329 — — Total $ 3,183 3,183 — — Plan assets as of December 31 were as follows: Pension Benefits Other Benefits 2020 2019 2020 2019 Fair value of assets at end of year: Debt securities $ 95,935 86,288 $ 5,684 5,608 35 % 36 % 29 % 33 % Equity securities 170,747 146,210 12,762 10,840 61 % 60 % 66 % 63 % Cash and equivalents 11,442 11,023 1,033 778 4 % 5 % 5 % 5 % Total $ 278,124 243,521 $ 19,479 17,226 The following tables summarize the fair values of plan assets by major categories as of December 31, 2020 and 2019: Fair Value Measurements at December 31, 2020 Asset Category Total Quoted Significant Significant Cash and cash equivalents $ 12,475 12,475 — — Equity securities (a) 183,509 183,509 — — Fixed Income (b) 101,619 36,012 65,607 — Total $ 297,603 231,996 65,607 — ___________________________________ (a) Actively managed portfolio of equity securities with the goal to exceed the benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the benchmark performance Fair Value Measurements at December 31, 2019 Asset Category Total Quoted Significant Significant Cash and cash equivalents $ 11,801 11,801 — — Equity securities (a) 157,050 149,265 7,785 — Fixed Income (b) 91,896 31,686 60,210 — Total $ 260,747 192,752 67,995 — ___________________________________ (a) Actively managed portfolio of equity securities with the goal to exceed the benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the benchmark performance |
Schedule of Assumptions Used | Net periodic cost for the defined benefit plans and other postretirement benefits was calculated using the following weighted-average assumptions: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 % % % % % % Discount rate 3.05 - 3.23 3.04 - 4.16 3.52 2.59 - 3.18 2.52 - 4.09 3.45 Expected return on plan assets 6.50, 6.75 7.00, 7.25 7.00 4.20, 6.50 4.00, 7.00 7.00 Rate of compensation increase 4.00 4.00 4.00 N/A N/A N/A Benefit obligations for the defined benefit plans and other postretirement benefits were calculated using the following weighted-average assumptions as of December 31: Pension Benefits Other Benefits 2020 2019 2020 2019 % % % % Discount rate 2.29 - 2.48 3.05 - 3.23 2.18 - 2.41 2.59 - 3.18 Rate of compensation increase 4.00 4.00 N/A N/A |
Schedule of Net Benefit Costs | Net periodic costs for the defined benefit plans and other postretirement benefits for the years ended December 31 was as follows: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Components of net periodic benefit cost Service cost $ 8,659 5,947 5,790 $ 900 581 616 Interest cost 10,484 8,506 6,879 956 775 627 Expected return on assets (15,715) (10,118) (9,255) (857) (475) (450) Amortization of prior service cost 41 48 51 97 197 197 Recognized actuarial loss 4,971 3,984 3,986 229 240 321 Net periodic benefit cost $ 8,440 8,367 7,451 $ 1,325 1,318 1,311 |
Schedule of Net Funded Status | The projected benefit obligations and the funded status of the defined benefit pension and other postretirement plans as of December 31 were as follows: Pension Benefits Other Benefits 2020 2019 2020 2019 Change in benefit obligation Benefit obligation at beginning of year $ 338,240 187,877 $ 32,546 17,489 Service cost 8,659 5,947 900 581 Interest cost 10,484 8,506 956 775 Business combination — 108,162 — 12,537 Actuarial (gain)/loss 42,164 35,502 2,421 2,027 Implicit rate subsidy — — (211) (217) Plan participants contributions — — 254 85 Administrative expenses paid (163) (10) — — Benefits paid (13,293) (7,744) (1,072) (731) Benefit obligation at end of year $ 386,091 338,240 $ 35,794 32,546 Change in plan assets Fair value of assets at beginning of year $ 243,521 127,610 $ 17,226 5,849 Actual return on plan assets 32,869 34,807 2,383 1,972 Business combination — 79,382 — 9,314 Employer contributions 16,609 9,476 675 738 Plan participants contributions — — 254 85 Administrative expenses paid (163) (10) (54) (55) Benefits paid (14,712) (7,744) (1,005) (677) Fair value of plan assets at end of year 278,124 243,521 19,479 17,226 Funded status at end of year $ (107,967) (94,719) $ (16,315) (15,320) |
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized on the balance sheet as of December 31 were as follows: Pension Benefits Other Benefits 2020 2019 2020 2019 Current liabilities $ 2,760 1,899 $ 133 96 Noncurrent liabilities 105,207 92,820 16,182 15,224 $ 107,967 94,719 $ 16,315 15,320 |
Schedule of Regulatory Asset Recorded on the Projected Benefit Obligation of the Postretirement Benefit Plans | SJW Group recorded a regulatory asset on the projected benefit obligation of the postretirement benefit plans as follows: 2020 2019 Funded status of obligation $ 124,282 110,039 Accrued benefit cost (28,723) (36,514) Regulatory asset, amount to be recovered in future rates $ 95,559 73,525 |
Schedule of Expected Benefit Payments | Benefits expected to be paid in the next five years and in the aggregate for the five years thereafter are: Pension Plan Other Postretirement 2021 $ 15,707 $ 1,441 2022 15,097 1,511 2023 15,979 1,596 2024 16,023 1,676 2025 16,541 1,671 2026 - 2030 91,120 8,857 |
Equity Plans (Tables)
Equity Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | A summary of compensation costs charged to income and proceeds from share based compensation, that are recorded to additional paid-in capital and common stock, by award type, are presented below for the years ended December 31: 2020 2019 2018 Compensation costs charged to income: ESPP $ 323 283 242 Restricted stock and deferred restricted stock 3,230 3,123 1,875 Total compensation costs charged to income $ 3,553 3,406 2,117 Proceeds from the exercise of stock options and similar instruments: ESPP 1,830 1,603 1,371 Total proceeds from the exercise of stock options and similar instruments $ 1,830 1,603 1,371 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of SJW Group’s restricted and deferred restricted stock awards under the Plan as of December 31, 2020, and changes during the year ended December 31, 2020, are presented below: Units Weighted- Outstanding as of January 1, 2020 174,764 $ 46.63 Granted 68,995 $ 67.50 Issued (61,155) $ 44.92 Forfeited (4,498) $ 55.80 Outstanding as of December 31, 2020 178,106 $ 53.43 Shares vested as of December 31, 2020 68,317 $ 34.55 |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the status of SJW Group’s nonvested restricted and deferred restricted stock awards under the Plan as of December 31, 2020, and changes during the year ended December 31, 2020, are presented below: Units Weighted- Average Grant- Nonvested as of January 1, 2020 93,153 $ 39.57 Granted 68,995 $ 67.50 Vested (50,210) $ 59.17 Forfeited (2,149) $ 54.33 Nonvested as of December 31, 2020 109,789 $ 65.18 |
Segment and Non-Tariffed Busi_2
Segment and Non-Tariffed Businesses Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables set forth information relating to SJW Group’s reportable segments and distribution of regulated and non-tariffed business activities within the reportable segments. Certain allocated assets, revenue and expenses have been included in the reportable segment amounts. Other business activity of SJW Group not included in the reportable segments is included in the “All Other” category. For the year ended December 31, 2020 Water Utility Services Real All Other (1) SJW Group Regulated (2) Non- Non- Non- Regulated Non- Total Operating revenue $ 548,013 10,981 5,532 — 548,013 16,513 564,526 Operating expense 431,375 6,943 3,510 5,028 431,375 15,481 446,856 Operating income (loss) 116,638 4,038 2,022 (5,028) 116,638 1,032 117,670 Net income (loss) 69,245 4,099 1,455 (13,284) 69,245 (7,730) 61,515 Depreciation and amortization 86,758 442 1,186 893 86,758 2,521 89,279 Senior note and other interest expense 33,877 — — 20,378 33,877 20,378 54,255 Income tax expense (benefit) in net income 16,563 998 467 (9,648) 16,563 (8,183) 8,380 Assets 3,197,626 8,869 44,405 60,565 3,197,626 113,839 3,311,465 For the year ended December 31, 2019 Water Utility Services Real All Other (1) SJW Group Regulated Non- Non- Non- Regulated Non- Total Operating revenue $ 407,116 7,969 5,397 — 407,116 13,366 420,482 Operating expense 329,520 5,443 3,751 24,289 329,520 33,483 363,003 Operating income (loss) 77,596 2,526 1,646 (24,289) 77,596 (20,117) 57,479 Net income (loss) 42,691 2,019 1,623 (22,930) 42,691 (19,288) 23,403 Depreciation and amortization 63,775 420 1,196 201 63,775 1,817 65,592 Senior note and other interest expense 25,073 — — 6,723 25,073 6,723 31,796 Income tax expense (benefit) in net income 8,382 708 486 (1,122) 8,382 72 8,454 Assets 3,016,846 5,507 46,778 63,339 3,016,846 115,624 3,132,470 For the year ended December 31, 2018 Water Utility Services Real All Other (1) SJW Group Regulated Non- Non- Non- Regulated Non- Total Operating revenue $ 384,639 7,578 5,482 — 384,639 13,060 397,699 Operating expense 294,536 5,012 3,539 21,172 294,536 29,723 324,259 Operating income (loss) 90,103 2,566 1,943 (21,172) 90,103 (16,663) 73,440 Net income (loss) 53,181 1,848 885 (17,147) 53,181 (14,414) 38,767 Depreciation and amortization 53,067 338 1,196 — 53,067 1,534 54,601 Senior note and other interest expense 22,157 — — 2,175 22,157 2,175 24,332 Income tax expense (benefit) in net income 14,826 719 903 (6,383) 14,826 (4,761) 10,065 Assets 1,492,954 4,489 46,517 412,429 1,492,954 463,435 1,956,389 ____________________ (1) The “All Other” category for the years ended December 31, 2020 and 2019, includes the accounts of SJW Group, SJWNE, LLC and CTWS, Inc. on a stand-alone basis. For the year ended December 31, 2018, the “All Other” category includes the accounts of SJW Group on a stand-alone basis. (2) As of December 31, 2020, the Company has performed an allocation of goodwill associated with the acquisition of CTWS to two reporting units, Connecticut and Maine, which are both aggregated within the Regulated Water Utility Services reportable segment. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price and recording of fair values of assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments as of December 31, 2020. Amounts Previously Recognized as of Acquisition Date (a) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) Assets acquired: Utility plant, net $ 750,703 — 750,703 Nonutility plant 848 — 848 Current assets 42,673 (785) 41,888 Investments 12,489 — 12,489 Regulatory assets and deferred charges, less current portion 83,132 (4,346) 78,786 Other intangible assets 17,181 — 17,181 Other assets 2,592 — 2,592 Goodwill 626,523 (114) 626,409 Total assets acquired 1,536,141 (5,245) 1,530,896 Liabilities assumed: Long-term debt 281,009 — 281,009 Current liabilities, including maturities of long-term debt 125,772 25 125,797 Deferred income taxes 107,789 (5,411) 102,378 Postretirement benefit plans 31,789 — 31,789 Contributions in aid of construction and construction advances 137,327 — 137,327 Other long-term liabilities 10,607 141 10,748 Total liabilities assumed 694,293 (5,245) 689,048 Assumed equity $ 841,848 — 841,848 ______________________________________ (a) As previously reported in the SJW Group’s 10-K for the period ended December 31, 2019. |
Pro Forma Financial Information | The following unaudited pro forma financial information summarizes the combined results of operations for SJW Group and CTWS, as though the companies were combined as of January 1, 2018. Fiscal Year Ended 2019 2018 Total revenues $ 515,153 514,364 Pretax income (loss) 60,862 72,938 Net income (loss) 56,968 65,449 Basic earnings per share 2.00 2.31 |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly financial data is as follows: 2020 Quarter Ended March June September December Operating revenue $ 115,754 147,209 165,863 135,700 Operating income 15,427 36,070 41,883 24,290 SJW Group net income 2,417 19,721 26,093 13,284 Comprehensive income 2,282 19,731 26,169 12,142 Earnings per share: —Basic 0.08 0.69 0.91 0.47 —Diluted 0.08 0.69 0.91 0.46 Market price range of stock: —High 74.73 65.93 71.06 70.34 —Low 49.48 53.11 58.56 60.11 Dividend per share 0.32 0.32 0.32 0.32 2019 Quarter Ended March June September December Operating revenue $ 77,682 102,965 113,997 125,838 Operating income 12,408 21,971 17,084 6,016 SJW Group net income 5,873 13,538 9,478 (5,486) Comprehensive income 5,873 13,538 9,478 (5,360) Earnings per share: —Basic 0.21 0.48 0.33 (0.20) —Diluted 0.21 0.47 0.33 (0.19) Market price range of stock: —High 63.76 63.40 69.23 74.47 —Low 54.74 59.83 61.23 67.13 Dividend per share 0.30 0.30 0.30 0.30 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) service_connection in Thousands, people in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)mi²entityservice_connectionpeoplesubsidiarycommunity | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Public Utilities, General Disclosures [Line Items] | |||
Number of variable interest entities | entity | 2 | ||
Impairment of Long-Lived Assets Held-for-use | $ | $ 0 | $ 0 | $ 0 |
Goodwill, Impairment Loss | $ | $ 0 | $ 0 | $ 0 |
Minimum | |||
Public Utilities, General Disclosures [Line Items] | |||
Service area in square miles | mi² | 247 | ||
Minimum | Finite-Lived Intangible Assets | |||
Public Utilities, General Disclosures [Line Items] | |||
Estimated useful life | 7 years | ||
Maximum | Finite-Lived Intangible Assets | |||
Public Utilities, General Disclosures [Line Items] | |||
Estimated useful life | 12 years | ||
Revenues | Product Concentration Risk | |||
Public Utilities, General Disclosures [Line Items] | |||
Percentage of revenue derived from sales of water to business and residential customers | 93.00% | ||
San Jose Water Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Service Connections | service_connection | 231 | ||
Number of people served | people | 1,000,000,000 | ||
Connecticut Water Service, Inc. | |||
Public Utilities, General Disclosures [Line Items] | |||
Number of people served | people | 485 | ||
Public Utilities, Number of Communities Served | community | 81 | ||
Acequia Water Supply Corporation | |||
Public Utilities, General Disclosures [Line Items] | |||
Ownership percentage in Acequia Water Supply Corporation | 25.00% | ||
444 West Santa Clara Street, L.P. | 444 West Santa Clara Street, L.P. | |||
Public Utilities, General Disclosures [Line Items] | |||
Limited partnership interest percentage | 70.00% | ||
San Jose Water Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Number of subsidiaries that are primary beneficiaries | subsidiary | 2 | ||
SJWTX, Inc. dba Canyon Lake Water Supply Corporation | |||
Public Utilities, General Disclosures [Line Items] | |||
Number of people served | people | 59 | ||
Connecticut and Maine | Connecticut Water Service, Inc. | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Service Connections | service_connection | 139 | ||
Connecticut | Connecticut Water Service, Inc. | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Service Connections | service_connection | 3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Major components of depreciable plant and equipment [Abstract] | |||
Equipment | $ 567,904 | $ 521,183 | |
Transmission and distribution | 1,699,953 | 2,207,051 | |
Office buildings and other structures | 930,203 | 260,220 | |
Total depreciable plant and equipment | $ 3,198,060 | $ 2,988,454 | |
Estimated Useful Lives of Plant and Equipment [Abstract] | |||
Depreciation expense as percentage of beginning of year balance of depreciable plant | 3.20% | 3.80% | 3.60% |
Capitalized interest costs | $ 4,133 | $ 4,323 | $ 2,856 |
Equity funds capitalized | 1,249 | ||
Administrative and general expense | |||
Estimated Useful Lives of Plant and Equipment [Abstract] | |||
Depreciation | 2,343 | 2,869 | 2,306 |
Water Plant | |||
Estimated Useful Lives of Plant and Equipment [Abstract] | |||
Depreciation | $ 86,823 | $ 63,785 | $ 53,031 |
Minimum | |||
Estimated Useful Lives of Plant and Equipment [Abstract] | |||
Estimated useful life of equipment | 5 years | ||
Estimated useful life of transmission and distribution plant | 35 years | ||
Estimated useful lives of office buildings and other structures | 7 years | ||
Useful life of intangible assets | 5 years | ||
Maximum | |||
Estimated Useful Lives of Plant and Equipment [Abstract] | |||
Estimated useful life of equipment | 35 years | ||
Estimated useful life of transmission and distribution plant | 75 years | ||
Estimated useful lives of office buildings and other structures | 50 years | ||
Useful life of intangible assets | 70 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Real Estate Investments (Details) $ in Thousands | Sep. 28, 2020USD ($)entity | Dec. 19, 2019USD ($) | Apr. 22, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Components of Real Estate Investments [Abstract] | ||||||
Land | $ 14,168 | $ 14,168 | ||||
Buildings and improvements | 43,961 | 43,531 | ||||
Total real estate investment | 58,129 | 57,699 | ||||
Proceeds from sale of real estate held-for-investment | $ 745 | |||||
Gain on sale of real estate investments | 948 | 929 | $ 0 | |||
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||||||
2021 | 4,264 | |||||
2022 | 2,745 | |||||
2023 | 2,565 | |||||
2024 | 2,645 | |||||
2025 | 2,833 | |||||
Thereafter | 7,711 | |||||
Land and Building | ||||||
Assets Leased or Available for Lease [Abstract] | ||||||
Assets leased or available for lease | 57,273 | $ 56,839 | ||||
Connecticut Water Company | ||||||
Components of Real Estate Investments [Abstract] | ||||||
Gain on sale of real estate investments | $ 4 | |||||
Maine Water Company | ||||||
Components of Real Estate Investments [Abstract] | ||||||
Proceeds from sale of real estate held-for-investment | 600 | 143 | ||||
Gain on sale of real estate investments | 180 | (100) | ||||
Selling expense | $ 45 | |||||
Conservation easement, value | 1,200 | |||||
Contribution of property | $ 600 | |||||
Parent | ||||||
Components of Real Estate Investments [Abstract] | ||||||
Gain on sale of real estate investments | 521 | |||||
Noncontrolling Interest | ||||||
Components of Real Estate Investments [Abstract] | ||||||
Gain on sale of real estate investments | $ 224 | |||||
San Jose Water Company | ||||||
Components of Real Estate Investments [Abstract] | ||||||
Sale Of Real Estate Held-For-Investment, Number Of Nonutility Properties | entity | 6 | |||||
Proceeds from sale of real estate held-for-investment | $ 1,075 | |||||
Gain on sale of real estate investments | 1,048 | |||||
Selling expense | $ 22 | |||||
Building and Building Improvements | Minimum | ||||||
Components of Real Estate Investments [Abstract] | ||||||
Estimated useful life | 7 years | |||||
Building and Building Improvements | Maximum | ||||||
Components of Real Estate Investments [Abstract] | ||||||
Estimated useful life | 39 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Cash and Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 19, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 23, 2020 |
Public Utilities, General Disclosures [Line Items] | |||||
Long-term borrowings held as restricted cash | $ 4,000 | $ 5,000 | $ 0 | ||
Long-term debt | 1,352,320 | 1,292,586 | |||
Maine Water Company | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Long-term borrowings held as restricted cash | $ 5,000 | ||||
Long-term debt | $ 39,751 | $ 38,032 | |||
Maine Water Company | State Revolving Fund Loans Series T | Public utility, bonds | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Long-term debt | $ 4,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Financial Instruments and Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Bank Owned Life Insurance | $ 8,026 | $ 7,086 |
Value of life insurance contracts | $ 4,311 | $ 3,829 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Regulatory Rate Filings (Details) | Jan. 15, 2021USD ($) | Jan. 05, 2021 | Nov. 23, 2020USD ($) | Oct. 28, 2020USD ($) | Jan. 22, 2020 | Jan. 20, 2020USD ($) | Jan. 01, 2019USD ($)ft³ | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 04, 2021USD ($) | Apr. 10, 2020USD ($) | Feb. 07, 2020 | Jan. 28, 2020 |
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Asset Increase (Decrease) | $ 8,324,000 | $ 962,000 | ||||||||||||
Regulatory Asset Increase (Decrease) | 2,516,000 | (4,984,000) | ||||||||||||
Regulatory Balancing and Memorandum Accounts, Net Under-Collected | 1,586,000 | |||||||||||||
Refunds (Collections) Adjustments | (127,000) | (2,603,000) | ||||||||||||
Balancing and Memorandum Account, Refunds (Collections) | $ (9,340,000) | 25,108,000 | ||||||||||||
Regulatory Balancing and Memorandum Accounts Review, Authorized Revenue, Threshold Percentage | 2.00% | |||||||||||||
PRVMA | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Asset Increase (Decrease) | $ 1,219,000 | |||||||||||||
Refunds (Collections) Adjustments | (111,000) | |||||||||||||
CEMA | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Asset Increase (Decrease) | 2,266,000 | |||||||||||||
Refunds (Collections) Adjustments | 0 | |||||||||||||
2018 WCMA | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Asset Increase (Decrease) | (9,386,000) | |||||||||||||
2017 WCMA | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Asset Increase (Decrease) | 1,182,000 | |||||||||||||
2017 WCMA Reserve Recorded | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Asset Increase (Decrease) | 1,169,000 | |||||||||||||
Cost of capital memorandum accounts | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Asset Increase (Decrease) | (8,000) | (30,000) | $ (1,379,000) | |||||||||||
Tax memorandum account | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Asset Increase (Decrease) | (2,000) | (139,000) | $ (6,504,000) | |||||||||||
San Jose Water Company | Application No. 20-04-009 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Rate Filings, Requested Authorization For Debt Issuance, Amount | $ 300,000,000 | |||||||||||||
Regulatory Rate Case Filings, Requested Authorization For Equity Issuance, Amount | $ 50,000,000 | |||||||||||||
San Jose Water Company | Cost Of Capital Filings | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Rate Filings, Requested Deferment Period | 1 year | |||||||||||||
San Jose Water Company | General Rate Case No. 21-01-003 | Subsequent Event [Member] | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Requested Rate Increase, Year One | $ 51,585,000 | |||||||||||||
Requested Rate Increase, Year One, Percentage | 13.35% | |||||||||||||
Requested Rate Increase, Year Two | $ 16,932,000 | |||||||||||||
Requested Rate Increase, Year Two, Percentage | 3.88% | |||||||||||||
Requested Rate Increase, Year Three | $ 19,195,000 | |||||||||||||
Requested Rate Increase, Year Three, Percentage | 4.24% | |||||||||||||
Balancing And Memorandum Account, Requested Recovery (Refund) | $ 18,499,000 | |||||||||||||
Regulatory Rate Filings, Requested Authorization For Capital Budget, Amount | $ 435,000,000 | |||||||||||||
San Jose Water Company | Advice Letter No. 532 | 2018 WCMA | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Asset Increase (Decrease) | (9,386,000) | |||||||||||||
San Jose Water Company | Advice Letter No. 532 | 2019 WCMA | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Asset Increase (Decrease) | (639,000) | |||||||||||||
San Jose Water Company | Advice Letter No. 528/528A | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Refunds (Collections) Adjustments | $ 27,045,000 | |||||||||||||
Balancing And Memorandum Account, Approved Recovery Period | 12 months | |||||||||||||
Balancing and Memorandum Account, Refunds (Collections) | $ 151,000 | $ 25,108,000 | ||||||||||||
Balancing And Memorandum Account, Approved Recovery, Surcharge Per Cubic Foot | ft³ | 0.005894 | |||||||||||||
San Jose Water Company And Three Other California Water Utilities | Cost Of Capital Filings | Subsequent Event [Member] | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Rate Filings, Requested Deferment Period | 1 year | |||||||||||||
Connecticut Water Company | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Authorized WICA Surcharge, Percentage | 5.75% | |||||||||||||
Requested WICA Surcharge Increase (Decrease), Percentage | 1.11% | (0.09%) | 2.60% | |||||||||||
Requested WICA Surcharge, Percentage | 6.94% | 5.75% | 5.84% | |||||||||||
Regulatory Rate Filings, Requested Rate Increase, Increase In Revenues | $ 956,000 | |||||||||||||
Connecticut Water Company | Subsequent Event [Member] | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory Rate Filings, Requested Increase In Revenues | $ 20,206,000 | |||||||||||||
Regulatory Rate Filings, Requested Increase In Revenues, Completed Infrastructure Investments Not Currently In Approved Rates And Surcharges | $ 265,514,000 | |||||||||||||
Avon Water Company | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Authorized WICA Surcharge, Percentage | 9.31% | |||||||||||||
Requested WICA Surcharge Increase (Decrease), Percentage | (0.05%) | |||||||||||||
Requested WICA Surcharge, Percentage | 9.26% | |||||||||||||
Maine Water Company | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 304,000 | $ 371,000 | ||||||||||||
Maine Water Company | Minimum | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Requested WISC Surcharge Increase (Decrease), Percentage | 1.10% | 1.76% | ||||||||||||
Maine Water Company | Maximum | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Requested WISC Surcharge Increase (Decrease), Percentage | 5.00% | 3.00% |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Balancing and Memorandum Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue accounts: | |||
Beginning Balance | $ (1,940) | $ 25,549 | |
Regulatory Asset Increase (Decrease) | 2,516 | (4,984) | |
Refunds (Collections) Adjustments | 9,467 | (22,505) | |
Ending Balance | 10,043 | (1,940) | $ 25,549 |
Cost-recovery accounts: | |||
Beginning Balance | 7,223 | 8,864 | |
Regulatory Asset Increase (Decrease) | 8,324 | 962 | |
Refunds (Collections) Adjustments | (127) | (2,603) | |
Ending Balance | 15,420 | 7,223 | 8,864 |
Balancing and Memorandum Account [Roll Forward] | |||
Beginning Balance | 5,283 | 34,413 | |
Regulatory Asset Increase (Decrease) | 10,840 | (4,022) | |
Refunds (Collections) Adjustments | 9,340 | (25,108) | |
Ending Balance | 25,463 | 5,283 | 34,413 |
Monterey WRAM | |||
Revenue accounts: | |||
Beginning Balance | 7,015 | 6,847 | |
Regulatory Asset Increase (Decrease) | 2,464 | 4,582 | |
Refunds (Collections) Adjustments | 2,598 | (4,414) | |
Ending Balance | 12,077 | 7,015 | 6,847 |
2014 - 2017 WCMA | |||
Revenue accounts: | |||
Beginning Balance | 708 | 7,750 | |
Regulatory Asset Increase (Decrease) | 0 | 0 | |
Refunds (Collections) Adjustments | (42) | (7,042) | |
Ending Balance | 666 | 708 | 7,750 |
2018 WCMA | |||
Revenue accounts: | |||
Beginning Balance | 0 | 9,386 | |
Regulatory Asset Increase (Decrease) | (9,386) | ||
Refunds (Collections) Adjustments | 0 | ||
Ending Balance | 0 | 9,386 | |
2012 General Rate Case true-up | |||
Revenue accounts: | |||
Beginning Balance | 752 | 11,328 | |
Regulatory Asset Increase (Decrease) | 0 | 96 | |
Refunds (Collections) Adjustments | 0 | (10,672) | |
Ending Balance | 752 | 752 | 11,328 |
Cost of capital memorandum accounts | |||
Revenue accounts: | |||
Beginning Balance | (1,553) | (1,523) | |
Regulatory Asset Increase (Decrease) | (8) | (30) | (1,379) |
Refunds (Collections) Adjustments | 0 | 0 | |
Ending Balance | (1,561) | (1,553) | (1,523) |
Tax memorandum account | |||
Revenue accounts: | |||
Beginning Balance | (6,643) | (6,504) | |
Regulatory Asset Increase (Decrease) | (2) | (139) | (6,504) |
Refunds (Collections) Adjustments | 6,978 | 0 | |
Ending Balance | 333 | (6,643) | (6,504) |
Water supply costs | |||
Cost-recovery accounts: | |||
Beginning Balance | 4,328 | 9,617 | |
Regulatory Asset Increase (Decrease) | 3,828 | 207 | |
Refunds (Collections) Adjustments | (33) | (5,496) | |
Ending Balance | 8,123 | 4,328 | 9,617 |
Pension | |||
Cost-recovery accounts: | |||
Beginning Balance | 2,449 | (1,843) | |
Regulatory Asset Increase (Decrease) | 1,008 | 745 | |
Refunds (Collections) Adjustments | 21 | 3,547 | |
Ending Balance | 3,478 | 2,449 | (1,843) |
PRVMA | |||
Cost-recovery accounts: | |||
Beginning Balance | 0 | ||
Regulatory Asset Increase (Decrease) | 1,219 | ||
Refunds (Collections) Adjustments | (111) | ||
Ending Balance | 1,108 | 0 | |
CEMA | |||
Cost-recovery accounts: | |||
Beginning Balance | 0 | ||
Regulatory Asset Increase (Decrease) | 2,266 | ||
Refunds (Collections) Adjustments | 0 | ||
Ending Balance | 2,266 | 0 | |
All others | |||
Revenue accounts: | |||
Beginning Balance | (2,219) | (1,735) | |
Regulatory Asset Increase (Decrease) | 62 | (107) | |
Refunds (Collections) Adjustments | (67) | (377) | |
Ending Balance | (2,224) | (2,219) | (1,735) |
Cost-recovery accounts: | |||
Beginning Balance | 446 | 1,090 | |
Regulatory Asset Increase (Decrease) | 3 | 10 | |
Refunds (Collections) Adjustments | (4) | (654) | |
Ending Balance | $ 445 | $ 446 | $ 1,090 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Regulatory Assets and Liabilities [Abstract] | ||
Net Regulatory Assets | $ 158,230 | $ 120,417 |
Current regulatory assets, net | 1,748 | 6,472 |
Total regulatory assets, net, less current portion | $ 156,482 | 113,945 |
Minimum | ||
Regulatory Assets and Liabilities [Abstract] | ||
Estimated service lives of assets | 5 years | |
Maximum | ||
Regulatory Assets and Liabilities [Abstract] | ||
Estimated service lives of assets | 75 years | |
Income tax temporary differences, net | ||
Regulatory Assets and Liabilities [Abstract] | ||
Regulatory assets | $ 6,230 | 2,433 |
Postretirement pensions and other medical benefits | ||
Regulatory Assets and Liabilities [Abstract] | ||
Regulatory assets | 95,559 | 73,525 |
Business combinations debt premium, net | ||
Regulatory Assets and Liabilities [Abstract] | ||
Regulatory assets | 22,479 | 25,020 |
Balancing and memorandum accounts, net | ||
Regulatory Assets and Liabilities [Abstract] | ||
Regulatory assets | 25,463 | 5,283 |
WRA | ||
Regulatory Assets and Liabilities [Abstract] | ||
Regulatory assets | 323 | 9,108 |
All others | ||
Regulatory Assets and Liabilities [Abstract] | ||
Regulatory assets | $ 8,176 | $ 5,048 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Advances for Construction and Contributions in Aid of Construction (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Refund period for advances for construction received after 1981 | 40 years | |
Estimated Refunds of Advances for Construction [Abstract] | ||
2021 | $ 3,050 | |
2022 | 3,050 | |
2023 | 3,038 | |
2024 | 2,958 | |
2025 | 2,896 | |
Thereafter | 52,462 | |
Advances for construction | 125,027 | $ 112,339 |
Customer advances for construction, non-refundable | 29,117 | |
Customer advances for construction, refunded on service connections | $ 28,456 | |
Contract with customer, refund period | 40 years | |
Contract with customer, fair value of advances | $ 50,391 | $ 50,035 |
Amortization period for taxes paid relating to advances and contributions | 40 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Asset Retirement Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Retirement obligation | $ 4,619 | $ 4,803 |
Discount rate | 6.00% | 6.00% |
Retirement obligation, present value | $ 939 | $ 942 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Regulatory Asset Increase (Decrease) | $ 2,516 | $ (4,984) | |
Revenue from contracts with customers | 549,270 | 447,720 | $ 389,302 |
Alternative revenue programs, net | (493) | (18,232) | 10,456 |
Other balancing and memorandum accounts revenue and regulatory mechanisms, net | 10,217 | (14,403) | (7,541) |
Rental income | 5,532 | 5,397 | 5,482 |
Operating revenue | 564,526 | 420,482 | 397,699 |
Regulated operating revenue, water surcharge | $ 4,911 | $ 4,955 | $ 5,013 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Earnings per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock and Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive restricted common stock units excluded from computation of earnings per share (in shares) | 22,396 | 27,082 | 5,551 |
Capitalization Narrative (Detai
Capitalization Narrative (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued (in shares) | 28,556,605 | 28,456,508 |
Common stock, shares outstanding (in shares) | 28,556,605 | 28,456,508 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Lines of Credit Narrative (Deta
Lines of Credit Narrative (Details) | May 11, 2020USD ($) | Dec. 31, 2020USD ($) | May 29, 2020USD ($) | May 28, 2020USD ($) | Mar. 01, 2020USD ($) | Feb. 29, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 01, 2016USD ($) |
Revolving Credit Facility | SJW Group | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Aggregate outstanding balance on lines of credit | $ 175,094,000 | $ 117,209,000 | ||||||
Line of Credit | Revolving Credit Facility | SJW Group | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit cost of borrowing rate | 1.78% | 3.73% | ||||||
Line of Credit | Revolving Credit Facility | Chase Bank, N.A. | San Jose Water Company | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 140,000,000 | $ 125,000,000 | ||||||
Increase in maximum borrowing capacity | 15,000,000 | |||||||
Line of Credit | Revolving Credit Facility | Chase Bank, N.A. | SJW Corp. and SJW Land Company | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 15,000,000 | |||||||
Line of Credit | Revolving Credit Facility | CoBank | Connecticut Water Service, Inc. | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | $ 15,000,000 | ||||||
Increase in maximum borrowing capacity | $ 25,000,000 | |||||||
Line of Credit | Revolving Credit Facility | RBS Citizens, N.A. | Connecticut Water Service, Inc. | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 75,000,000 | $ 95,000,000 | ||||||
Line of Credit | Revolving Credit Facility - Temporary | Chase Bank, N.A. | San Jose Water Company | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||||||
Line of credit, term | 6 months | |||||||
Aggregate outstanding balance on lines of credit | $ 0 | |||||||
Line of Credit | Credit Agreement | Standby Letters of Credit | Chase Bank, N.A. | San Jose Water Company | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 10,000,000 | |||||||
Line of Credit | SJW Corp Credit Agreement | Standby Letters of Credit | Chase Bank, N.A. | SJW Corp. and SJW Land Company | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 5,000,000 | |||||||
Line of Credit | SJWTX Credit Agreement | Revolving Credit Facility | Chase Bank, N.A. | SJW Corp. and SJWTX, Inc. | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 5,000,000 | |||||||
Line of Credit | SJWTX Credit Agreement | Standby Letters of Credit | Chase Bank, N.A. | SJW Corp. and SJWTX, Inc. | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000 | |||||||
Bank term loans | Connecticut Water Service, Inc. | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Ratio of indebtedness to total capital | 0.65 | |||||||
Bank term loans | Connecticut Water Company | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest coverage ratio | 3 | |||||||
Ratio of indebtedness to total capital | 0.60 | |||||||
Bank term loans | Maine Water Company | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Ratio of indebtedness to total capital | 0.60 | |||||||
Bank term loans | Unsecured Debt | San Jose Water Company | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt covenant interest charge maximum to net Income available to stockholders | 1.75 | |||||||
Ratio of indebtedness to total capital | 0.666 | |||||||
Bank term loans | Unsecured Debt | SJW Corp. and SJWTX, Inc. | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt covenant interest charge maximum to net Income available to stockholders | 1.75 | |||||||
Ratio of indebtedness to total capital | 0.666 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Aug. 11, 2020 | Mar. 12, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,352,320 | $ 1,292,586 | ||
Unamortized debt premium, net | 22,479 | 25,020 | ||
Unamortized debt issuance costs | 10,978 | 11,737 | ||
Current portion | 76,241 | 22,272 | ||
Total long-term debt, less current portion | 1,287,580 | 1,283,597 | ||
SJW Group | ||||
Debt Instrument [Line Items] | ||||
Current portion | 49,929 | 0 | ||
Total long-term debt, less current portion | 555,824 | 555,820 | ||
SJW Group | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 610,000 | 560,000 | ||
Stated interest rates | 2.47% | |||
SJW Group | Senior notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 2.47% | |||
SJW Group | Senior notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 4.35% | |||
San Jose Water Company | California Pollution Control Financing Authority Revenue Bonds | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 440,000 | 450,000 | ||
San Jose Water Company | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 320,000 | 330,000 | ||
San Jose Water Company | Senior notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 4.29% | |||
San Jose Water Company | Senior notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 8.58% | |||
San Jose Water Company | Public utility, bonds | California Pollution Control Financing Authority Revenue Bonds | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 120,000 | 120,000 | ||
San Jose Water Company | Public utility, bonds | California Pollution Control Financing Authority Revenue Bonds | Minimum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 4.75% | |||
San Jose Water Company | Public utility, bonds | California Pollution Control Financing Authority Revenue Bonds | Maximum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 5.10% | |||
Connecticut Water Service, Inc. | Bank term loans | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 22,169 | 23,935 | ||
Connecticut Water Service, Inc. | Bank term loans | Minimum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 4.09% | |||
Connecticut Water Service, Inc. | Bank term loans | Maximum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 4.15% | |||
Connecticut Water Company | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 225,400 | 198,646 | ||
Connecticut Water Company | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 70,000 | 35,000 | ||
Stated interest rates | 3.51% | |||
Connecticut Water Company | Senior notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 3.51% | |||
Connecticut Water Company | Senior notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 3.53% | |||
Connecticut Water Company | Public utility, bonds | Connecticut Innovations Revenue Bonds, variable rate | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 22,050 | 22,050 | ||
Connecticut Water Company | Public utility, bonds | Connecticut Innovations Revenue Bonds, fixed rate | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 22,260 | 22,506 | ||
Stated interest rates | 5.00% | |||
Connecticut Water Company | Bank term loans | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 111,090 | 119,090 | ||
Connecticut Water Company | Bank term loans | Minimum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 3.51% | |||
Connecticut Water Company | Bank term loans | Maximum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 4.75% | |||
SJWTX, Inc. | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 15,000 | 15,000 | ||
Stated interest rates | 6.27% | |||
Maine Water Company | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 39,751 | 38,032 | ||
Maine Water Company | Public utility, bonds | State revolving fund loans | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 18,651 | 16,032 | ||
Maine Water Company | Public utility, bonds | State revolving fund loans | Minimum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 0.00% | |||
Maine Water Company | Public utility, bonds | State revolving fund loans | Maximum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 2.58% | |||
Maine Water Company | Public utility, bonds | Other First Mortgage Bonds | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 3,600 | 4,500 | ||
Stated interest rates | 8.95% | |||
Maine Water Company | Bank term loans | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 17,500 | 17,500 | ||
Maine Water Company | Bank term loans | Minimum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 4.18% | |||
Maine Water Company | Bank term loans | Maximum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rates | 5.51% | |||
Heritage Valley Water Company | Bank term loans | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 4,164 | ||
Stated interest rates | 4.75% | |||
Avon Water Company | Mortgages | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | $ 2,809 | ||
Stated interest rates | 3.05% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Dec. 15, 2020 | Nov. 02, 2020 | Aug. 11, 2020 | Mar. 12, 2020 | Oct. 08, 2019 | Mar. 28, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 23, 2020 | Dec. 19, 2019 |
Debt Instrument [Line Items] | |||||||||||
Repayments of Long-term Debt | $ 28,931,000 | $ 1,400,000 | $ 0 | ||||||||
Long-term debt | 1,352,320,000 | 1,292,586,000 | |||||||||
Significant Observable Inputs (Level 2) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of long-term debt | 1,570,727,000 | 1,396,205,000 | |||||||||
SJW Group | Senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum net worth required for compliance | $ 175,000,000 | ||||||||||
Cumulative net income, percentage included in net worth for compliance | 30.00% | ||||||||||
Principal Debt Sold | $ 50,000,000 | ||||||||||
Stated interest rates | 2.47% | ||||||||||
Long-term debt | $ 610,000,000 | 560,000,000 | |||||||||
SJW Group | Senior notes | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates | 2.47% | ||||||||||
SJW Group | Senior notes | Financial Guarantee | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of indebtedness to total capital | 0.6666 | ||||||||||
SJW Group | Senior notes | 2011 Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of indebtedness to total capital | 0.6666 | ||||||||||
SJW Group | Senior notes | 2019 and 2020 Unsecured Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of indebtedness to total capital | 0.70 | ||||||||||
SJW Group | Senior notes | Series 2019A | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Debt Sold | $ 310,000,000 | ||||||||||
Stated interest rates | 3.05% | ||||||||||
SJW Group | Senior notes | Series 2019B | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Debt Sold | $ 75,000,000 | ||||||||||
Stated interest rates | 3.15% | ||||||||||
SJW Group | Senior notes | Series 2019C | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Debt Sold | $ 125,000,000 | ||||||||||
Stated interest rates | 3.53% | ||||||||||
San Jose Water Company | California Pollution Control Financing Authority Revenue Bonds | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 440,000,000 | 450,000,000 | |||||||||
San Jose Water Company | Senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of indebtedness to total capital | 0.6666 | ||||||||||
Ratio of net income available for interest charges for the trailing 12-month calendar period to interest charges | 1.75 | ||||||||||
Restricted payment, maximum payment amount | $ 20,000,000 | ||||||||||
Long-term debt | $ 320,000,000 | 330,000,000 | |||||||||
San Jose Water Company | Senior notes | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates | 4.29% | ||||||||||
San Jose Water Company | Senior notes | Series C | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of Long-term Debt | $ 10,000,000 | ||||||||||
San Jose Water Company | Senior notes | Series M | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Debt Sold | $ 80,000,000 | ||||||||||
Stated interest rates | 4.29% | ||||||||||
San Jose Water Company | Public utility, bonds | California Pollution Control Financing Authority Revenue Bonds | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 120,000,000 | 120,000,000 | |||||||||
San Jose Water Company | Public utility, bonds | California Pollution Control Financing Authority Revenue Bonds | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates | 4.75% | ||||||||||
Connecticut Water Service, Inc. | Bank term loans | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of indebtedness to total capital | 0.60 | ||||||||||
Long-term debt | $ 22,169,000 | 23,935,000 | |||||||||
Connecticut Water Service, Inc. | Bank term loans | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates | 4.09% | ||||||||||
Connecticut Water Company | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 225,400,000 | 198,646,000 | |||||||||
Connecticut Water Company | Senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of indebtedness to total capital | 0.60 | ||||||||||
Principal Debt Sold | $ 35,000,000 | ||||||||||
Stated interest rates | 3.51% | ||||||||||
Long-term debt | $ 70,000,000 | 35,000,000 | |||||||||
Interest coverage ratio | 3 | ||||||||||
Connecticut Water Company | Senior notes | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates | 3.51% | ||||||||||
Connecticut Water Company | Bank term loans | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of indebtedness to total capital | 0.60 | ||||||||||
Repayments of Long-term Debt | $ 8,000,000 | ||||||||||
Long-term debt | $ 111,090,000 | 119,090,000 | |||||||||
Interest coverage ratio | 3 | ||||||||||
Connecticut Water Company | Bank term loans | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates | 3.51% | ||||||||||
Connecticut Water Company | Public utility, bonds | Water Facilities Revenue Bonds | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 44,310,000 | ||||||||||
SJWTX, Inc. | Senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of indebtedness to total capital | 0.6666 | ||||||||||
Stated interest rates | 6.27% | ||||||||||
Ratio of net income available for interest charges for the trailing 12-month calendar period to interest charges | 1.75 | ||||||||||
Long-term debt | $ 15,000,000 | 15,000,000 | |||||||||
SJWTX, Inc. | Senior notes | Financial Guarantee | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum net worth required for compliance | $ 125,000,000 | ||||||||||
SJWTX, Inc. | Senior notes | Financial Guarantee | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Cumulative net income, percentage included in net worth for compliance | 30.00% | ||||||||||
Maine Water Company | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 39,751,000 | 38,032,000 | |||||||||
Maine Water Company | Bank term loans | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of indebtedness to total capital | 0.60 | ||||||||||
Long-term debt | $ 17,500,000 | 17,500,000 | |||||||||
Interest coverage ratio | 3 | ||||||||||
Maine Water Company | Bank term loans | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates | 4.18% | ||||||||||
Maine Water Company | Public utility, bonds | State revolving fund loans | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 18,651,000 | 16,032,000 | |||||||||
Maine Water Company | Public utility, bonds | State revolving fund loans | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates | 0.00% | ||||||||||
Maine Water Company | Public utility, bonds | Other First Mortgage Bonds | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of indebtedness to total capital | 0.65 | ||||||||||
Stated interest rates | 8.95% | ||||||||||
Long-term debt | $ 3,600,000 | $ 4,500,000 | |||||||||
Interest coverage ratio | 3 | ||||||||||
Dividend restriction, cumulative dividends paid maximum | $ 120,000 | ||||||||||
Maine Water Company | Public utility, bonds | State Revolving Fund Loans Series T | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates | 1.00% | ||||||||||
Long-term debt | $ 4,000,000 | ||||||||||
Maine Water Company | Public utility, bonds | State Revolving Fund Loans Series S | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates | 1.00% | ||||||||||
Long-term debt | $ 5,000,000 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 76,322 |
2022 | 39,179 |
2023 | 4,360 |
2024 | 48,983 |
2025 | 3,648 |
Thereafter | $ 1,179,828 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 11,349 | $ 7,577 | $ 14,485 |
State | 2,528 | 2,126 | 5,066 |
Deferred: | |||
Federal | (8,073) | (1,929) | (7,702) |
State | 2,576 | 680 | (1,784) |
Income Tax Expense (Benefit) | $ 8,380 | $ 8,454 | $ 10,065 |
Income Taxes - Federal Statutor
Income Taxes - Federal Statutory Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 69,895 | $ 32,081 | $ 48,832 |
Income Tax Statutory Rate Reconciliation [Abstract] | |||
Income tax at federal statutory rate | 14,678 | 6,737 | 10,255 |
Increase (decrease) in taxes attributable to: | |||
State taxes, net of federal income tax benefit | 4,142 | 2,251 | 3,420 |
Uncertain tax positions | 1,351 | 323 | 24 |
Property flow-through | (9,215) | (2,054) | (839) |
Capitalized merger costs | (296) | 5,350 | 0 |
Tax reform - rate change impact on deferred taxes | 0 | 77 | 0 |
Reversal of excess deferred taxes recognized in regulatory liability | (2,912) | (2,355) | (1,383) |
Pension flow-through | 92 | (1,244) | 0 |
Stock-based compensation | (333) | (223) | (1,602) |
Other items, net | 873 | (408) | 190 |
Income Tax Expense (Benefit) | $ 8,380 | $ 8,454 | $ 10,065 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Advances and contributions | $ 22,573 | $ 19,547 |
Unamortized investment tax credit | 619 | 649 |
Pensions, postretirement benefits and stock-based compensation | 41,180 | 32,450 |
Debt premium, net | 6,290 | 7,002 |
California franchise tax | 756 | 456 |
Net operating loss | 550 | 1,046 |
Other | 6,792 | 7,211 |
Gross deferred tax assets | 78,760 | 68,361 |
Valuation allowance | 0 | (1,924) |
Total deferred tax assets | 78,760 | 66,437 |
Deferred tax liabilities: | ||
Utility plant | 209,541 | 211,079 |
Pension and postretirement | 31,227 | 22,263 |
Deferred gain and other-property | 5,875 | 5,872 |
Regulatory asset - business combinations debt premium, net | 6,290 | 7,002 |
Intangibles | 3,443 | 3,693 |
Deferred revenue | 297 | 1,962 |
Regulatory asset - income tax temporary differences, net | 1,195 | 295 |
Section 481(a) adjustments | 4,763 | 5,721 |
Other | 7,544 | 4,148 |
Total deferred tax liabilities | 270,175 | 262,035 |
Net deferred tax liabilities | $ 191,415 | $ 195,598 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Change in net deferred tax liabilities | $ 4,183 | |
Unrecognized tax benefits before impact of deductions for state taxes, excluding interest and penalties | 6,468 | $ 4,037 |
Unrecognized tax benefits that would impact effective tax rate | 5,600 | $ 3,511 |
Accrued interest, expense net of the benefit of tax deductions | 107 | |
Cumulative reduction in unrecognized tax benefits, due to lapsing of statutes of limitations | 80 | |
Connecticut | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforwards | 29,555 | |
Tax credit carryforward | 1,033 | |
Maine | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforwards | $ 1,087 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of year | $ 3,834 | $ 1,382 | $ 1,307 |
Increase related to tax positions taken during the current year | 1,104 | 351 | 0 |
Increase related to tax positions taken during a prior year | 1,530 | 3,483 | 75 |
Reductions related to tax positions taken in a prior year | 0 | (1,382) | 0 |
Balance at end of year | $ 6,468 | $ 3,834 | $ 1,382 |
Utility Plant Intangible Asse_3
Utility Plant Intangible Assets Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 1997 | Jan. 08, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets | $ 35,167 | $ 33,424 | |||
Purchase premium customer relationships | 13,400 | 13,400 | |||
Amortization of Intangible Assets | 1,401 | 745 | $ 647 | ||
Future Amortization of Intangible Assets | |||||
2021 | 1,401 | ||||
2022 | 1,401 | ||||
2023 | 1,401 | ||||
2024 | 1,401 | ||||
2025 | 1,401 | ||||
Thereafter | 1,401 | ||||
Concession fees | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets | 6,800 | 6,800 | $ 5,000 | ||
Other intangibles | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets | 14,967 | $ 13,224 | |||
Service Agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets | 3,999 | ||||
Useful life of intangible assets | 25 years | ||||
Infrastructure | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets | 5,984 | ||||
Customer Relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets | 1,400 | ||||
Contractual Rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets | $ 1,040 | ||||
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life of intangible assets | 5 years | ||||
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life of intangible assets | 70 years |
Utility Plant Intangible Asse_4
Utility Plant Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 08, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 35,167 | $ 33,424 | |
Purchase premium customer relationships | 13,400 | 13,400 | |
Net intangible assets | 21,270 | 20,245 | |
Concession fees | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | 6,800 | $ 5,000 | 6,800 |
Accumulated amortization of intangible assets | 6,324 | 6,052 | |
Purchase premium customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | 1,400 | ||
Accumulated amortization of intangible assets | 1,094 | 201 | |
Other intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | 14,967 | 13,224 | |
Accumulated amortization of intangible assets | $ 6,479 | $ 6,926 |
Commitments Narrative (Details)
Commitments Narrative (Details) $ in Thousands | Jun. 22, 2020 | Feb. 20, 2020 | May 19, 2003 | Dec. 31, 2020USD ($)employeeacre_foot$ / ft³$ / million_gallonsgal | Dec. 31, 2019USD ($)gal | Dec. 31, 2018USD ($)gal | Dec. 31, 2008$ / yrgal | Dec. 31, 1997 | Jan. 08, 2020USD ($) |
Long-term Purchase Commitment [Line Items] | |||||||||
Purchased water | $ 100,723 | $ 99,118 | $ 97,378 | ||||||
Intangible assets | $ 35,167 | 33,424 | |||||||
Collective bargaining agreement percent of wage increase for 2020 | 3.00% | ||||||||
Collective bargaining agreement percent of wage increase for 2021 | 3.00% | ||||||||
Collective bargaining agreement percent of wage increase for 2022 | 4.00% | ||||||||
SJW Group | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Number of employees | employee | 370 | ||||||||
SJW Group | Executive, Administrative or Supervisory Personnel | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Number of employees | employee | 137 | ||||||||
SJW Group | Union Member | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Number of employees | employee | 233 | ||||||||
Minimum | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Contract life of agreement with City of Cupertino | 5 years | ||||||||
Maximum | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Contract life of agreement with City of Cupertino | 70 years | ||||||||
RWA | Capacity Agreement | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Current contract water rate (in USD per million of gallons) | 2,621 | 75 | |||||||
Purchase commitment period | 14 years | ||||||||
RWA | Capacity Agreement | Minimum | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Purchase commitment period | 50 years | ||||||||
RWA | Capacity Agreement | Maximum | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Agreement to purchase water (in gallons of water) | gal | 1,000,000 | ||||||||
MDC | Capacity Agreement | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Current contract water rate (in USD per million of gallons) | $ / ft³ | 3.97 | ||||||||
Purchase commitment period | 50 years | ||||||||
Agreement to purchase water (in gallons of water) | gal | 283,000,000 | ||||||||
Kennebec Water District | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Agreement to purchase water (in gallons of water) | gal | 50,000,000 | ||||||||
Long-term purchase commitment, wholesale discount (in USD per hundred cubic feet) | $ / ft³ | 0.20 | ||||||||
Tariff rate (in USD per hundred cubic feet) | $ / ft³ | 1.51 | ||||||||
International Union of Operating Engineers | SJW Group | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Bargaining agreements, term | 3 years | ||||||||
Service Agreements | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Contract life of agreement with City of Cupertino | 25 years | ||||||||
Intangible assets | $ 3,999 | ||||||||
Concession fees | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Intangible assets | $ 6,800 | $ 6,800 | $ 5,000 | ||||||
Santa Clara Valley Water District | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Master contract, negotiated term for delivery schedules | 3 years | ||||||||
Water purchased (in millions of gallons) | gal | 21,269,000,000 | 21,862,000,000 | 21,345,000,000 | ||||||
Purchased water | $ 96,212 | $ 96,285 | $ 87,702 | ||||||
Reduction in delivery schedule | 10.00% | ||||||||
Minimum percent of delivery schedule to be purchased | 90.00% | ||||||||
Minimum volume of water to be purchased (in million gallons) | gal | 19,794,000,000 | ||||||||
Cost of water to be purchased | $ 89,539 | ||||||||
Current contract water rate (in USD per million of gallons) | $ / million_gallons | 4.5 | ||||||||
Guadalupe-Blanco River Authority | SJWTX, Inc. dba Canyon Lake Water Supply Corporation | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Long-term purchase commitment, minimum area required (in acre-feet of water) | acre_foot | 6,900 | ||||||||
Notice period required for contract adjustment | 60 days | ||||||||
Lower Colorado River Authority | SJWTX, Inc. dba Canyon Lake Water Supply Corporation | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Long-term purchase commitment, minimum area required (in acre-feet of water) | acre_foot | 250 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plans [Abstract] | |||
Market gains (losses) | $ (5,464,000) | $ 4,485,000 | |
Actuarial gain (loss), discount rate change | 46,443,000 | ||
Actuarial gain (loss), data and other changes | 489,000 | ||
Actuarial gain (loss), mortality change | (2,139,000) | ||
Value of life insurance contracts | 4,311,000 | 3,829,000 | |
Flexible Spending Plan [Abstract] | |||
Annual maximum contribution limit under Health Care Spending Account plan | 2,500 | ||
Annual maximum contribution limit under Dependent Care Spending Account plan | 5,000 | ||
Deferral Plan [Abstract] | |||
Employer contributions to deferral plan | 2,824,000 | 2,046,000 | $ 1,569,000 |
Executive Supplemental Retirement Plan | |||
Pension Plans [Abstract] | |||
Projected benefit obligation | 50,757,000 | 41,768,000 | |
Net periodic pension cost | 4,480,000 | 3,219,000 | $ 2,905,000 |
Total investments made to fund SERP | 7,470,000 | 7,070,000 | |
Pension Plan | |||
Pension Plans [Abstract] | |||
Net periodic benefit cost, expected return on plan assets | 7.00% | ||
Projected benefit obligation | 386,091,000 | 338,240,000 | $ 187,877,000 |
Net periodic pension cost | 8,440,000 | 8,367,000 | 7,451,000 |
Total investments made to fund SERP | $ 16,609,000 | $ 9,476,000 | |
Minimum | |||
Pension Plans [Abstract] | |||
Period for performance standards | 3 years | ||
Minimum | Pension Plan | |||
Pension Plans [Abstract] | |||
Net periodic benefit cost, expected return on plan assets | 6.50% | 7.00% | |
Maximum | |||
Pension Plans [Abstract] | |||
Period for performance standards | 5 years | ||
Maximum | Pension Plan | |||
Pension Plans [Abstract] | |||
Net periodic benefit cost, expected return on plan assets | 6.75% | 7.25% | |
Executives and Non-employee Directors | Deferred compensation arrangement with individual, by type of compensation, pension and other postretirement benefits | |||
Special Deferral Election Plan and Deferral Election Program [Abstract] | |||
Deferrals by executives and non-employee directors | $ 6,144,000 | $ 7,834,000 | $ 4,244,000 |
Executives and Non-employee Directors | Deferred compensation arrangement with individual, by type of compensation, pension and other postretirement benefits | Connecticut Water Service, Inc. | |||
Special Deferral Election Plan and Deferral Election Program [Abstract] | |||
Deferrals by executives and non-employee directors | $ 4,130,000 | $ 3,801,000 | |
CTWS Employees | |||
Pension Plans [Abstract] | |||
Rate of compensation increase to company sponsored savings plan | 1.50% |
Benefit Plans - Fair Value of P
Benefit Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 297,603 | $ 260,747 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 231,996 | 192,752 |
Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 65,607 | 67,995 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Executive Supplemental Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,014 | 3,183 |
Executive Supplemental Retirement Plan | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,014 | |
Executive Supplemental Retirement Plan | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Executive Supplemental Retirement Plan | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Executive Supplemental Retirement Plan | Money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 83 | 20 |
Executive Supplemental Retirement Plan | Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 83 | |
Executive Supplemental Retirement Plan | Money market funds | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Executive Supplemental Retirement Plan | Money market funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Executive Supplemental Retirement Plan | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,101 | 834 |
Executive Supplemental Retirement Plan | Mutual funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,101 | |
Executive Supplemental Retirement Plan | Mutual funds | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Executive Supplemental Retirement Plan | Mutual funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Executive Supplemental Retirement Plan | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 830 | 2,329 |
Executive Supplemental Retirement Plan | Fixed income | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 830 | |
Executive Supplemental Retirement Plan | Fixed income | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Executive Supplemental Retirement Plan | Fixed income | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Benefit Plans - Actuarial Calcu
Benefit Plans - Actuarial Calculation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, discount rate | 3.52% | ||
Net periodic benefit cost, expected return on plan assets | 7.00% | ||
Net periodic benefit cost, rate of compensation increase | 4.00% | 4.00% | 4.00% |
Benefit obligations, rate of compensation increase | 4.00% | 4.00% | |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, discount rate | 3.45% | ||
Net periodic benefit cost, expected return on plan assets | 7.00% | ||
Maximum | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, discount rate | 3.23% | 4.16% | |
Net periodic benefit cost, expected return on plan assets | 6.75% | 7.25% | |
Benefit obligations, discount rate | 2.48% | 3.23% | |
Maximum | Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, discount rate | 3.18% | 4.09% | |
Net periodic benefit cost, expected return on plan assets | 6.50% | 7.00% | |
Benefit obligations, discount rate | 2.41% | 3.18% | |
Minimum | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, discount rate | 3.05% | 3.04% | |
Net periodic benefit cost, expected return on plan assets | 6.50% | 7.00% | |
Benefit obligations, discount rate | 2.29% | 3.05% | |
Minimum | Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, discount rate | 2.59% | 2.52% | |
Net periodic benefit cost, expected return on plan assets | 4.20% | 4.00% | |
Benefit obligations, discount rate | 2.18% | 2.59% |
Benefit Plans - Net Periodic Be
Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8,659 | $ 5,947 | $ 5,790 |
Interest cost | 10,484 | 8,506 | 6,879 |
Expected return on assets | (15,715) | (10,118) | (9,255) |
Amortization of prior service cost | 41 | 48 | 51 |
Recognized actuarial loss | 4,971 | 3,984 | 3,986 |
Net periodic benefit cost | 8,440 | 8,367 | 7,451 |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 900 | 581 | 616 |
Interest cost | 956 | 775 | 627 |
Expected return on assets | (857) | (475) | (450) |
Amortization of prior service cost | 97 | 197 | 197 |
Recognized actuarial loss | 229 | 240 | 321 |
Net periodic benefit cost | $ 1,325 | $ 1,318 | $ 1,311 |
Benefit Plans - Reconciliation
Benefit Plans - Reconciliation of Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in plan assets | |||
Fair value of assets at beginning of year | $ 260,747 | ||
Fair value of plan assets at end of year | 297,603 | $ 260,747 | |
Pension Plan | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 338,240 | 187,877 | |
Service cost | 8,659 | 5,947 | $ 5,790 |
Interest cost | 10,484 | 8,506 | 6,879 |
Business combination | 0 | 108,162 | |
Actuarial (gain)/loss | 42,164 | 35,502 | |
Implicit rate subsidy | 0 | 0 | |
Plan participants contributions | 0 | 0 | |
Administrative expenses paid | (163) | (10) | |
Benefits paid | (13,293) | (7,744) | |
Benefit obligation at end of year | 386,091 | 338,240 | 187,877 |
Change in plan assets | |||
Fair value of assets at beginning of year | 243,521 | 127,610 | |
Actual return on plan assets | 32,869 | 34,807 | |
Business combination | 0 | 79,382 | |
Employer contributions | 16,609 | 9,476 | |
Plan participants contributions | 0 | 0 | |
Administrative expenses paid | (163) | (10) | |
Benefits paid | (14,712) | (7,744) | |
Fair value of plan assets at end of year | 278,124 | 243,521 | 127,610 |
Funded status at end of year | (107,967) | (94,719) | |
Other Postretirement Benefits Plan | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 32,546 | 17,489 | |
Service cost | 900 | 581 | 616 |
Interest cost | 956 | 775 | 627 |
Business combination | 0 | 12,537 | |
Actuarial (gain)/loss | 2,421 | 2,027 | |
Implicit rate subsidy | (211) | (217) | |
Plan participants contributions | 254 | 85 | |
Administrative expenses paid | 0 | 0 | |
Benefits paid | (1,072) | (731) | |
Benefit obligation at end of year | 35,794 | 32,546 | 17,489 |
Change in plan assets | |||
Fair value of assets at beginning of year | 17,226 | 5,849 | |
Actual return on plan assets | 2,383 | 1,972 | |
Business combination | 0 | 9,314 | |
Employer contributions | 675 | 738 | |
Plan participants contributions | 254 | 85 | |
Administrative expenses paid | (54) | (55) | |
Benefits paid | (1,005) | (677) | |
Fair value of plan assets at end of year | 19,479 | 17,226 | $ 5,849 |
Funded status at end of year | $ (16,315) | $ (15,320) |
Benefit Plans - Amounts Recogni
Benefit Plans - Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liabilities | $ 121,597 | $ 108,044 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 2,760 | 1,899 |
Noncurrent liabilities | 105,207 | 92,820 |
Liabilities | 107,967 | 94,719 |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 133 | 96 |
Noncurrent liabilities | 16,182 | 15,224 |
Liabilities | $ 16,315 | $ 15,320 |
Benefit Plans - Regulatory Asse
Benefit Plans - Regulatory Asset (Details) - Postretirement pensions and other medical benefits - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status of obligation | $ 124,282 | $ 110,039 |
Accrued benefit cost | (28,723) | (36,514) |
Regulatory asset, amount to be recovered in future rates | $ 95,559 | $ 73,525 |
Benefit Plans - Plan Assets (De
Benefit Plans - Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 297,603 | $ 260,747 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 231,996 | 192,752 | |
Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 65,607 | 67,995 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 183,509 | 157,050 | |
Equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 183,509 | 149,265 | |
Equity securities | Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 7,785 | |
Equity securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12,475 | 11,801 | |
Cash and equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12,475 | 11,801 | |
Cash and equivalents | Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and equivalents | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 101,619 | 91,896 | |
Fixed income | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 36,012 | 31,686 | |
Fixed income | Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 65,607 | 60,210 | |
Fixed income | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 278,124 | 243,521 | $ 127,610 |
Pension Plan | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 95,935 | $ 86,288 | |
Actual plan asset allocations as a percent of total plan assets | 35.00% | 36.00% | |
Pension Plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 170,747 | $ 146,210 | |
Actual plan asset allocations as a percent of total plan assets | 61.00% | 60.00% | |
Pension Plan | Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 11,442 | $ 11,023 | |
Actual plan asset allocations as a percent of total plan assets | 4.00% | 5.00% | |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 19,479 | $ 17,226 | $ 5,849 |
Other Postretirement Benefits Plan | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 5,684 | $ 5,608 | |
Actual plan asset allocations as a percent of total plan assets | 29.00% | 33.00% | |
Other Postretirement Benefits Plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 12,762 | $ 10,840 | |
Actual plan asset allocations as a percent of total plan assets | 66.00% | 63.00% | |
Other Postretirement Benefits Plan | Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,033 | $ 778 | |
Actual plan asset allocations as a percent of total plan assets | 5.00% | 5.00% |
Benefit Plans - Benefits Expect
Benefit Plans - Benefits Expected to be Paid in Next Five Years (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Pension Plan | |
Expected Future Benefit Payments [Abstract] | |
2021 | $ 15,707 |
2022 | 15,097 |
2023 | 15,979 |
2024 | 16,023 |
2025 | 16,541 |
2026 - 2030 | 91,120 |
Other Postretirement Benefits Plan | |
Expected Future Benefit Payments [Abstract] | |
2021 | 1,441 |
2022 | 1,511 |
2023 | 1,596 |
2024 | 1,676 |
2025 | 1,671 |
2026 - 2030 | 8,857 |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated required and discretionary employer cash contributions | $ 8,481 |
Equity Plans Equity Plans - Nar
Equity Plans Equity Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Option Indexed to Issuer's Equity [Line Items] | |||
Fair value of restricted stock awards | $ 3,333 | $ 2,420 | $ 1,913 |
Performance-based and market-based restricted stock awards issued (in shares) | 5,327 | 6,120 | 52,629 |
Performance-based and market-based restricted stock awards vested (in shares) | 16,544 | ||
Performance-based and market-based restricted stock awards outstanding (in shares) | 43,257 | ||
Employee Stock Purchase Plan [Abstract] | |||
Shares issued during the period under the plan | 31,750 | 30,255 | 25,907 |
Restricted Stock and Deferred Restricted Stock | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Unrecognized compensation cost | $ 4,118 | ||
Period for recognition of compensation cost | 1 year 8 months 26 days | ||
Deferred Restricted Stock Awards | |||
Dividend Equivalent Rights [Abstract] | |||
Cumulative dividend equivalent rights converted to deferred restricted stock awards (in shares) | 83,679 | 81,231 | 79,478 |
Dividend Equivalent Rights | |||
Dividend Equivalent Rights [Abstract] | |||
Liability for dividend equivalent rights | $ 160 | $ 93 | $ 97 |
Performance Shares | Minimum | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Range of shares issuable | 0.00% | ||
Performance Shares | Maximum | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Range of shares issuable | 150.00% | ||
Market-Based Restricted Stock Awards | Minimum | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Range of shares issuable | 0.00% | ||
Market-Based Restricted Stock Awards | Maximum | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Range of shares issuable | 200.00% | ||
Incentive Plan | Restricted Stock and Deferred Restricted Stock | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Issued (in shares) | 68,995 | ||
Exercised (in shares) | 61,155 | ||
Forfeited (in shares) | 4,498 | ||
Outstanding (in shares) | 178,106 | 174,764 | |
CTWS Plan | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Number of shares reserved for issuance under the plan (in shares) | 156,022 | ||
CTWS Plan | Restricted Stock and Deferred Restricted Stock | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Issued (in shares) | 1,701 | ||
Exercised (in shares) | 47,583 | ||
Forfeited (in shares) | 0 | ||
Outstanding (in shares) | 57,049 | ||
Employee Stock Purchase Plan | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Unrecognized compensation cost | $ 160 | ||
Employee Stock Purchase Plan [Abstract] | |||
Purchase price of common stock to employees under the plan, percent | 85.00% | ||
Maximum percent of base salary employees can designate for share purchase under the plan | 10.00% | ||
Expenses recorded under the plan | $ 342 | $ 294 | $ 265 |
Common Stock | Incentive Plan | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Number of shares reserved for issuance under the plan (in shares) | 1,800,000 | ||
Maximum number of shares per employee (in shares) | 600,000 | ||
Shares issued pursuant to the plan (in shares) | 880,495 | 819,340 | 793,811 |
Shares issuable under the plan upon exercise of outstanding awards (in shares) | 178,106 | 174,764 | 124,275 |
Number of shares available for grant (in shares) | 741,399 | ||
Common Stock | Employee Stock Purchase Plan | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Number of shares reserved for issuance under the plan (in shares) | 400,000 | ||
Number of shares available for grant (in shares) | 220,813 |
Equity Plans - Schedule of Comp
Equity Plans - Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation costs charged to income: | $ 3,553 | $ 3,406 | $ 2,117 |
Proceeds from the exercise of stock options and similar instruments: | 1,830 | 1,603 | 1,371 |
Restricted Stock and Deferred Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation costs charged to income: | 3,230 | 3,123 | 1,875 |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation costs charged to income: | 323 | 283 | 242 |
Proceeds from the exercise of stock options and similar instruments: | $ 1,830 | $ 1,603 | $ 1,371 |
Equity Plans - Restricted Stock
Equity Plans - Restricted Stock and Deferred Restricted Stock Activity (Details) - Restricted Stock and Deferred Restricted Stock - Incentive Plan | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Restricted and Deferred Restricted Stock Awards Activity | |
Outstanding, beginning balance (in shares) | shares | 174,764 |
Granted (in shares) | shares | 68,995 |
Issued (in shares) | shares | (61,155) |
Forfeited (in shares) | shares | (4,498) |
Outstanding ending balance (in shares) | shares | 178,106 |
Vested (in shares) | shares | 68,317 |
Weighted- Average Grant- Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 46.63 |
Issued (in dollars per share) | $ / shares | 67.50 |
Exercised (in dollars per share) | $ / shares | 44.92 |
Forfeited (in dollars per share) | $ / shares | 55.80 |
Outstanding, ending balance (in dollars per share) | $ / shares | 53.43 |
Vested (in dollars per share) | $ / shares | $ 34.55 |
Nonvested Restricted and Deferred Restricted Stock Awards Activity | |
Nonvested, beginning balance (in shares) | shares | 93,153 |
Granted (in shares) | shares | 68,995 |
Vested (in shares) | shares | (50,210) |
Forfeited (in shares) | shares | (2,149) |
Nonvested, ending balance (in shares) | shares | 109,789 |
Weighted- Average Grant- Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 39.57 |
Granted (in dollars per share) | $ / shares | 67.50 |
Vested (in dollars per share) | $ / shares | 59.17 |
Forfeited (in dollars per share) | $ / shares | 54.33 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 65.18 |
Segment and Non-Tariffed Busi_3
Segment and Non-Tariffed Businesses Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)reportable_segmentsubsidiary | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||
Number of subsidiaries | subsidiary | 4 | |||||||||||
Number of reportable segments | reportable_segment | 2 | |||||||||||
Operating revenue | $ 135,700 | $ 165,863 | $ 147,209 | $ 115,754 | $ 125,838 | $ 113,997 | $ 102,965 | $ 77,682 | $ 564,526 | $ 420,482 | $ 397,699 | |
Operating expense | 446,856 | 363,003 | 324,259 | |||||||||
Operating income (loss) | 24,290 | 41,883 | 36,070 | 15,427 | 6,016 | 17,084 | 21,971 | 12,408 | 117,670 | 57,479 | 73,440 | |
Net income (loss) | 13,284 | $ 26,093 | $ 19,721 | $ 2,417 | (5,486) | $ 9,478 | $ 13,538 | $ 5,873 | 61,515 | 23,403 | 38,767 | |
Depreciation and amortization | 89,279 | 65,592 | 54,601 | |||||||||
Senior note and other interest expense | 54,255 | 31,796 | 24,332 | |||||||||
Provision for income taxes | 8,380 | 8,454 | 10,065 | |||||||||
Assets | 3,311,465 | 3,132,470 | 3,311,465 | 3,132,470 | $ 1,956,389 | |||||||
Regulated | Water Utility Services | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 548,013 | 407,116 | 384,639 | |||||||||
Operating expense | 431,375 | 329,520 | 294,536 | |||||||||
Operating income (loss) | 116,638 | 77,596 | 90,103 | |||||||||
Net income (loss) | 69,245 | 42,691 | 53,181 | |||||||||
Depreciation and amortization | 86,758 | 63,775 | 53,067 | |||||||||
Senior note and other interest expense | 33,877 | 25,073 | 22,157 | |||||||||
Provision for income taxes | 16,563 | 8,382 | 14,826 | |||||||||
Assets | 3,197,626 | 3,016,846 | 3,197,626 | 3,016,846 | 1,492,954 | |||||||
Regulated | SJW Corp. | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 548,013 | 407,116 | 384,639 | |||||||||
Operating expense | 431,375 | 329,520 | 294,536 | |||||||||
Operating income (loss) | 116,638 | 77,596 | 90,103 | |||||||||
Net income (loss) | 69,245 | 42,691 | 53,181 | |||||||||
Depreciation and amortization | 86,758 | 63,775 | 53,067 | |||||||||
Senior note and other interest expense | 33,877 | 25,073 | 22,157 | |||||||||
Provision for income taxes | 16,563 | 8,382 | 14,826 | |||||||||
Assets | 3,197,626 | 3,016,846 | 3,197,626 | 3,016,846 | 1,492,954 | |||||||
Non- tariffed | Water Utility Services | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 10,981 | 7,969 | 7,578 | |||||||||
Operating expense | 6,943 | 5,443 | 5,012 | |||||||||
Operating income (loss) | 4,038 | 2,526 | 2,566 | |||||||||
Net income (loss) | 4,099 | 2,019 | 1,848 | |||||||||
Depreciation and amortization | 442 | 420 | 338 | |||||||||
Senior note and other interest expense | 0 | 0 | 0 | |||||||||
Provision for income taxes | 998 | 708 | 719 | |||||||||
Assets | 8,869 | 5,507 | 8,869 | 5,507 | 4,489 | |||||||
Non- tariffed | Real Estate Services | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 5,532 | 5,397 | 5,482 | |||||||||
Operating expense | 3,510 | 3,751 | 3,539 | |||||||||
Operating income (loss) | 2,022 | 1,646 | 1,943 | |||||||||
Net income (loss) | 1,455 | 1,623 | 885 | |||||||||
Depreciation and amortization | 1,186 | 1,196 | 1,196 | |||||||||
Senior note and other interest expense | 0 | 0 | 0 | |||||||||
Provision for income taxes | 467 | 486 | 903 | |||||||||
Assets | 44,405 | 46,778 | 44,405 | 46,778 | 46,517 | |||||||
Non- tariffed | All Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 0 | 0 | 0 | |||||||||
Operating expense | 5,028 | 24,289 | 21,172 | |||||||||
Operating income (loss) | (5,028) | (24,289) | (21,172) | |||||||||
Net income (loss) | (13,284) | (22,930) | (17,147) | |||||||||
Depreciation and amortization | 893 | 201 | 0 | |||||||||
Senior note and other interest expense | 20,378 | 6,723 | 2,175 | |||||||||
Provision for income taxes | (9,648) | (1,122) | (6,383) | |||||||||
Assets | 60,565 | 63,339 | 60,565 | 63,339 | 412,429 | |||||||
Non- tariffed | SJW Corp. | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 16,513 | 13,366 | 13,060 | |||||||||
Operating expense | 15,481 | 33,483 | 29,723 | |||||||||
Operating income (loss) | 1,032 | (20,117) | (16,663) | |||||||||
Net income (loss) | (7,730) | (19,288) | (14,414) | |||||||||
Depreciation and amortization | 2,521 | 1,817 | 1,534 | |||||||||
Senior note and other interest expense | 20,378 | 6,723 | 2,175 | |||||||||
Provision for income taxes | (8,183) | 72 | $ (4,761) | |||||||||
Assets | $ 113,839 | $ 115,624 | $ 113,839 | $ 115,624 | $ 463,435 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 09, 2019 | Dec. 31, 2019 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Share-based compensation related to business combination | $ 6,384 | ||
CTWS | |||
Business Acquisition [Line Items] | |||
Acquiree's common shares converted in cash (in dollars per share) | $ 70 | ||
Cash purchase price | $ 838,476 | ||
Cash received from acquisition | 3,011 | ||
Share-based compensation related to business combination | $ 6,384 | ||
Goodwill, measurement period adjustments | $ (114) |
Business Combination - Schedule
Business Combination - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 15 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Oct. 09, 2019 | |
Assets acquired: | |||
Goodwill | $ 628,144 | $ 628,287 | |
CTWS | |||
Assets acquired: | |||
Utility plant, net | 750,703 | $ 750,703 | |
Utility plant, net, measurement period adjustments | 0 | ||
Nonutility plant | 848 | 848 | |
Nonutility plant, measurement period adjustments | 0 | ||
Current assets | 41,888 | 42,673 | |
Current assets, measurement period adjustments | (785) | ||
Investments | 12,489 | 12,489 | |
Investments, measurement period adjustments | 0 | ||
Regulatory assets and deferred charges, less current portion | 78,786 | 83,132 | |
Regulatory assets and deferred charges, less current portion, measurement period adjustments | (4,346) | ||
Other intangible assets | 17,181 | 17,181 | |
Other intangible assets, measurement period adjustments | 0 | ||
Other assets | 2,592 | 2,592 | |
Other assets, measurement period adjustments | 0 | ||
Goodwill | 626,409 | 626,523 | |
Goodwill, measurement period adjustments | (114) | ||
Total assets acquired | 1,530,896 | 1,536,141 | |
Total assets acquired, measurement period adjustments | (5,245) | ||
Liabilities assumed: | |||
Long-term debt | 281,009 | 281,009 | |
Long-term debt, measurement period adjustments | 0 | ||
Current liabilities, including maturities of long-term debt | 125,797 | 125,772 | |
Current liabilities, including maturities of long-term debt, measurement period adjustments | 25 | ||
Deferred income taxes | 102,378 | 107,789 | |
Deferred income taxes, measurement period adjustments | (5,411) | ||
Postretirement benefit plans | 31,789 | 31,789 | |
Postretirement benefit plans, measurement period adjustments | 0 | ||
Contributions in aid of construction and construction advances | 137,327 | 137,327 | |
Contributions in aid of construction and construction advances, measurement period adjustments | 0 | ||
Other long-term liabilities | 10,748 | 10,607 | |
Other long-term liabilities, measurement period adjustments | 141 | ||
Total liabilities assumed | 689,048 | 694,293 | |
Total liabilities assumed, measurement period adjustments | (5,245) | ||
Assumed equity | 841,848 | $ 841,848 | |
Assumed equity, measurement period adjustments | $ 0 |
Business Combination - Pro Form
Business Combination - Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combinations [Abstract] | ||
Total revenues | $ 515,153 | $ 514,364 |
Pretax income (loss) | 60,862 | 72,938 |
Net income (loss) | $ 56,968 | $ 65,449 |
Basic earnings per share (in dollars per share) | $ 2 | $ 2.31 |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating revenue | $ 135,700 | $ 165,863 | $ 147,209 | $ 115,754 | $ 125,838 | $ 113,997 | $ 102,965 | $ 77,682 | $ 564,526 | $ 420,482 | $ 397,699 |
Operating income | 24,290 | 41,883 | 36,070 | 15,427 | 6,016 | 17,084 | 21,971 | 12,408 | 117,670 | 57,479 | 73,440 |
SJW Group net income | 13,284 | 26,093 | 19,721 | 2,417 | (5,486) | 9,478 | 13,538 | 5,873 | 61,515 | 23,403 | 38,767 |
Comprehensive income | $ 12,142 | $ 26,169 | $ 19,731 | $ 2,282 | $ (5,360) | $ 9,478 | $ 13,538 | $ 5,873 | $ 60,325 | $ 23,529 | $ 38,767 |
SJW Group earnings per share | |||||||||||
—Basic (in dollars per share) | $ 0.47 | $ 0.91 | $ 0.69 | $ 0.08 | $ (0.20) | $ 0.33 | $ 0.48 | $ 0.21 | $ 2.16 | $ 0.82 | $ 1.83 |
—Diluted (in dollars per share) | 0.46 | 0.91 | 0.69 | 0.08 | (0.19) | 0.33 | 0.47 | 0.21 | $ 2.14 | $ 0.82 | $ 1.82 |
Dividend per share (in dollars per share) | 0.32 | 0.32 | 0.32 | 0.32 | 0.30 | 0.30 | 0.30 | 0.30 | |||
High | |||||||||||
SJW Group earnings per share | |||||||||||
Market price range of stock (in dollars per share) | 70.34 | 71.06 | 65.93 | 74.73 | 74.47 | 69.23 | 63.40 | 63.76 | |||
Low | |||||||||||
SJW Group earnings per share | |||||||||||
Market price range of stock (in dollars per share) | $ 60.11 | $ 58.56 | $ 53.11 | $ 49.48 | $ 67.13 | $ 61.23 | $ 59.83 | $ 54.74 |
Financial Statement Schedule -
Financial Statement Schedule - Condensed Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 9,269 | $ 17,944 | $ 420,722 | $ 7,799 |
Other current assets | 5,125 | 2,928 | ||
Total current assets | 127,331 | 122,046 | ||
Other assets: | ||||
Other | 6,883 | 4,676 | ||
Total other assets | 805,876 | 759,836 | ||
Total assets | 3,311,465 | 3,132,470 | 1,956,389 | |
Stockholders’ equity: | ||||
Common stock, $0.001 par value; authorized 70,000,000 shares in 2020 and 2019; issued and outstanding 28,556,605 shares in 2020 and 28,456,508 shares in 2019 | 29 | 28 | ||
Additional paid-in capital | 510,158 | 506,639 | ||
Retained earnings | 408,037 | 383,191 | ||
Accumulated other comprehensive (loss) income | (1,064) | 126 | ||
Total stockholders’ equity | 917,160 | 889,984 | 889,312 | 463,209 |
Long-term debt, less current portion | 1,287,580 | 1,283,597 | ||
Capitalization, long-term debt and equity | 2,204,740 | 2,173,581 | ||
Current liabilities: | ||||
Current portion of long-term debt | 76,241 | 22,272 | ||
Accounts payable | 34,200 | 34,886 | ||
Accrued interest | 12,861 | 13,140 | ||
Other current liabilities | 19,203 | 18,279 | ||
Total current liabilities | 350,795 | 234,567 | ||
Deferred income taxes | 191,415 | 195,598 | ||
Other noncurrent liabilities | 21,786 | 22,306 | ||
Commitments and contingencies | 0 | 0 | ||
Total equity and liabilities | $ 3,311,465 | $ 3,132,470 | ||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 | ||
Common stock, shares issued (in shares) | 28,556,605 | 28,456,508 | ||
Common stock, shares outstanding (in shares) | 28,556,605 | 28,456,508 | ||
SJW Group | ||||
Assets | ||||
Investments in subsidiaries | $ 1,536,106 | $ 1,466,110 | ||
Current assets: | ||||
Cash and cash equivalents | 436 | 1,035 | $ 412,238 | $ 308 |
Intercompany receivables | 258 | 0 | ||
Income tax receivable | 0 | 7,491 | ||
Intercompany notes receivable | 15,680 | 6,727 | ||
Other current assets | 124 | 0 | ||
Total current assets | 16,498 | 15,253 | ||
Other assets: | ||||
Other | 0 | 13 | ||
Total other assets | 0 | 13 | ||
Total assets | 1,552,604 | 1,481,376 | ||
Stockholders’ equity: | ||||
Common stock, $0.001 par value; authorized 70,000,000 shares in 2020 and 2019; issued and outstanding 28,556,605 shares in 2020 and 28,456,508 shares in 2019 | 29 | 28 | ||
Additional paid-in capital | 510,158 | 506,639 | ||
Retained earnings | 408,037 | 383,191 | ||
Accumulated other comprehensive (loss) income | (1,064) | 126 | ||
Total stockholders’ equity | 917,160 | 889,984 | ||
Long-term debt, less current portion | 555,824 | 555,820 | ||
Capitalization, long-term debt and equity | 1,472,984 | 1,445,804 | ||
Current liabilities: | ||||
Current portion of long-term debt | 49,929 | 0 | ||
Intercompany payables | 0 | 2,349 | ||
Intercompany notes payable | 19,540 | 24,465 | ||
Accounts payable | 170 | 1,042 | ||
Accrued interest | 3,195 | 3,748 | ||
Income tax payable | 3,268 | 0 | ||
Other current liabilities | 252 | 912 | ||
Total current liabilities | 76,354 | 32,516 | ||
Deferred income taxes | 2,623 | 1,994 | ||
Other noncurrent liabilities | 643 | 1,062 | ||
Commitments and contingencies | 0 | 0 | ||
Total equity and liabilities | $ 1,552,604 | $ 1,481,376 | ||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 | ||
Common stock, shares issued (in shares) | 28,556,605 | 28,456,508 | ||
Common stock, shares outstanding (in shares) | 28,556,605 | 28,456,508 |
Financial Statement Schedule _2
Financial Statement Schedule - Condensed Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Operating revenue | $ 564,526 | $ 420,482 | $ 397,699 | ||||||||
Operating expense: | |||||||||||
Administrative and general | 79,741 | 66,301 | 48,933 | ||||||||
Property taxes and other non-income taxes | 29,886 | 19,068 | 14,975 | ||||||||
Merger related expenses | 0 | 15,768 | 18,610 | ||||||||
Total operating expense | 446,856 | 363,003 | 324,259 | ||||||||
Operating income | $ 24,290 | $ 41,883 | $ 36,070 | $ 15,427 | $ 6,016 | $ 17,084 | $ 21,971 | $ 12,408 | 117,670 | 57,479 | 73,440 |
Other (expense) income: | |||||||||||
Interest on long-term debt, mortgage and other interest expense | (54,255) | (31,796) | (24,332) | ||||||||
Interest income on money market fund | 0 | 6,536 | 155 | ||||||||
Other, net | 5,906 | 2,091 | 2,348 | ||||||||
Income before income taxes | 69,895 | 32,081 | 48,832 | ||||||||
Provision for income taxes | 8,380 | 8,454 | 10,065 | ||||||||
SJW Group net income | 13,284 | 26,093 | 19,721 | 2,417 | (5,486) | 9,478 | 13,538 | 5,873 | 61,515 | 23,403 | 38,767 |
Other comprehensive (loss) income, net | (1,190) | 126 | 0 | ||||||||
SJW Group comprehensive income | $ 12,142 | $ 26,169 | $ 19,731 | $ 2,282 | $ (5,360) | $ 9,478 | $ 13,538 | $ 5,873 | 60,325 | 23,529 | 38,767 |
SJW Group | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Operating revenue | 0 | 0 | 0 | ||||||||
Operating expense: | |||||||||||
Administrative and general | 3,110 | 8,130 | 2,312 | ||||||||
Property taxes and other non-income taxes | 250 | 250 | 250 | ||||||||
Merger related expenses | 0 | 14,849 | 18,610 | ||||||||
Total operating expense | 3,360 | 23,229 | 21,172 | ||||||||
Operating income | (3,360) | (23,229) | (21,172) | ||||||||
Other (expense) income: | |||||||||||
Interest on long-term debt, mortgage and other interest expense | (19,430) | (6,615) | (2,264) | ||||||||
Interest income on money market fund | 0 | 6,536 | 155 | ||||||||
Other, net | (250) | 89 | (248) | ||||||||
Income before income taxes | (23,040) | (23,219) | (23,529) | ||||||||
Provision for income taxes | (6,414) | (1,431) | (6,917) | ||||||||
Equity earnings from subsidiaries, net of taxes | 78,141 | 45,191 | 55,379 | ||||||||
Subsidiaries | |||||||||||
Other (expense) income: | |||||||||||
Equity earnings from subsidiaries, net of taxes | $ 78,141 | $ 45,191 | $ 55,379 |
Financial Statement Schedule _3
Financial Statement Schedule - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net income before noncontrolling interest | $ 61,515 | $ 23,627 | $ 38,767 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income taxes | (5,497) | (1,249) | (9,486) |
Share-based compensation | 3,553 | 3,406 | 2,117 |
Other non-cash, net | 0 | 20 | 414 |
Changes in operating assets and liabilities, net of acquired assets and liabilities: | |||
Accounts payable and other current liabilities | (357) | 1,946 | 2,130 |
Tax receivable and accrued taxes | (3,557) | (6,044) | 5,841 |
Other changes, net | (2,413) | 7,469 | 1,706 |
Net cash provided by operating activities | 104,051 | 130,005 | 91,343 |
Investing activities: | |||
Payments for business/asset acquisition and water rights | 0 | (835,465) | (2,496) |
Proceeds from sale of equity investments | 0 | 0 | 4,112 |
Net cash used in investing activities | (214,259) | (1,017,771) | (146,843) |
Financing activities: | |||
Long-term borrowings | 85,000 | 590,000 | 0 |
Issuance of common stock, net of issuance costs | 0 | (10) | 411,385 |
Debt issuance costs | (829) | (4,918) | 0 |
Dividends paid | (36,509) | (34,134) | (23,074) |
Other changes, net | (190) | 1,163 | (3,078) |
Net cash provided by financing activities | 101,533 | 484,988 | 468,423 |
Net change in cash, cash equivalents and restricted cash | (8,675) | (402,778) | 412,923 |
Cash, cash equivalents and restricted cash, beginning of year | 17,944 | 420,722 | 7,799 |
Cash, cash equivalents and restricted cash, end of year | 9,269 | 17,944 | 420,722 |
Cash paid during the year for: | |||
Interest | 59,955 | 32,138 | 27,038 |
Income taxes | 10,380 | 16,448 | 13,750 |
SJW Group | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Earnings from investment in subsidiaries | (78,141) | (45,191) | (55,379) |
Deferred income taxes | 162 | 4,606 | (5,565) |
Share-based compensation | 466 | 141 | 44 |
Other non-cash, net | 0 | 0 | 423 |
Changes in operating assets and liabilities, net of acquired assets and liabilities: | |||
Accounts payable and other current liabilities | (1,532) | 255 | 1,039 |
Intercompany receivables | (2,607) | 2,045 | 209 |
Tax receivable and accrued taxes | 10,759 | (6,779) | (5,592) |
Accrued interest | (553) | 3,742 | 0 |
Return on capital from investments in subsidiaries | 47,800 | 28,600 | 20,750 |
Other changes, net | 367 | 808 | 36 |
Net cash provided by operating activities | 38,236 | 11,630 | (5,268) |
Investing activities: | |||
Proceeds to subsidiaries for notes receivable | (10,353) | (102,522) | (2,030) |
Repayments from subsidiaries for notes receivable | 1,400 | 95,795 | 17,458 |
Investments in subsidiaries | (37,952) | (62,262) | 0 |
Payments for business/asset acquisition and water rights | 0 | (837,903) | 0 |
Proceeds from sale of equity investments | 0 | 0 | 4,112 |
Net cash used in investing activities | (46,905) | (906,892) | 19,540 |
Financing activities: | |||
Borrowings from subsidiaries for notes payable | 54,837 | 29,865 | 12,705 |
Repayments to subsidiaries for notes payable | (59,762) | (17,705) | (3,358) |
Long-term borrowings | 50,000 | 510,000 | 0 |
Issuance of common stock, net of issuance costs | 0 | 0 | 411,385 |
Debt issuance costs | (496) | (3,957) | 0 |
Dividends paid | (36,509) | (34,134) | (23,074) |
Other changes, net | 0 | (10) | 0 |
Net cash provided by financing activities | 8,070 | 484,059 | 397,658 |
Net change in cash, cash equivalents and restricted cash | (599) | (411,203) | 411,930 |
Cash, cash equivalents and restricted cash, beginning of year | 1,035 | 412,238 | 308 |
Cash, cash equivalents and restricted cash, end of year | 436 | 1,035 | 412,238 |
Cash paid during the year for: | |||
Interest | 19,442 | 2,203 | 2,175 |
Income taxes | 3,466 | 689 | 824 |
Supplemental disclosure of non-cash activities: | |||
Share-based compensation from investment in subsidiaries | $ 2,894 | $ 4,663 | $ (714) |
Financial Statement Schedule _4
Financial Statement Schedule - Additional Information (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Condensed Financial Information Disclosure [Abstract] | |
Restricted net assets, subsidiaries | $ 283,807 |
Restricted net assets, subsidiaries, percent of consolidated assets | 31.00% |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, beginning of period | $ 1,512 | $ 272 | $ 190 |
Opening balance, SJWNE, LLC | 0 | 1,283 | 0 |
Charged to expense | (177) | 520 | 430 |
Charged to regulatory asset | 3,032 | 0 | 0 |
Accounts written off | (800) | (875) | (650) |
Recoveries of accounts written off | 324 | 312 | 302 |
Balance, end of period | 3,891 | 1,512 | 272 |
Reserve for litigation and claims: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, beginning of period | 2,898 | 2,181 | 1,892 |
Charged to expense | 958 | 3,221 | 480 |
Accounts written off | (122) | (135) | 1 |
Payments | (3,050) | (2,369) | (192) |
Balance, end of period | $ 684 | $ 2,898 | $ 2,181 |