Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 24, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-8966 | |
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 $0.001 per share | |
Trading Symbol | SJW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 30,319,317 | |
Entity Central Index Key | 0000766829 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
REVENUE | $ 175,981 | $ 166,923 | $ 449,324 | $ 433,949 |
Production Expenses: | ||||
Purchased water | 38,744 | 33,121 | 84,313 | 76,434 |
Power | 3,913 | 4,179 | 10,387 | 10,573 |
Groundwater extraction charges | 19,059 | 23,736 | 51,347 | 59,419 |
Other production expenses | 11,888 | 11,069 | 33,607 | 30,302 |
Total production expenses | 73,604 | 72,105 | 179,654 | 176,728 |
Administrative and general | 23,909 | 22,713 | 71,374 | 64,932 |
Maintenance | 7,065 | 6,369 | 20,651 | 19,221 |
Property taxes and other non-income taxes | 8,354 | 8,125 | 24,242 | 22,789 |
Depreciation and amortization | 25,529 | 23,837 | 78,342 | 70,787 |
Gain on sale of nonutility properties | (82) | 0 | (5,532) | 0 |
Total operating expense | 138,379 | 133,149 | 368,731 | 354,457 |
OPERATING INCOME | 37,602 | 33,774 | 80,593 | 79,492 |
OTHER (EXPENSE) INCOME: | ||||
Interest on long-term debt and other interest expense | (14,190) | (13,535) | (42,160) | (40,655) |
Pension non-service cost | 970 | 334 | 2,860 | 999 |
Gain on sale of Texas Water Alliance | 0 | 0 | 0 | 3,000 |
Other, net | 875 | 1,244 | 2,694 | 4,782 |
Income before income taxes | 25,257 | 21,817 | 43,987 | 47,618 |
Provision for income taxes | 223 | 2,749 | 3,658 | 5,159 |
NET INCOME | 25,034 | 19,068 | 40,329 | 42,459 |
Other comprehensive (loss) income, net | (173) | (12) | (602) | 133 |
COMPREHENSIVE INCOME | $ 24,861 | $ 19,056 | $ 39,727 | $ 42,592 |
EARNINGS PER SHARE | ||||
Basic (usd per share) | $ 0.83 | $ 0.64 | $ 1.33 | $ 1.44 |
Diluted (usd per share) | 0.82 | 0.64 | 1.33 | 1.43 |
DIVIDENDS PER SHARE (usd per share) | $ 0.36 | $ 0.34 | $ 1.08 | $ 1.02 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (shares) | 30,269,462 | 29,816,736 | 30,246,201 | 29,496,533 |
Diluted (shares) | 30,392,295 | 29,952,477 | 30,358,268 | 29,625,784 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Utility plant: | ||
Land | $ 39,885 | $ 39,004 |
Depreciable plant and equipment | 3,596,198 | 3,381,908 |
Construction in progress | 127,528 | 176,427 |
Intangible assets | 35,960 | 36,276 |
Property, plant, and equipment, gross | 3,799,571 | 3,633,615 |
Less accumulated depreciation and amortization | 1,206,690 | 1,136,116 |
Public utilities, property, plant and equipment, net | 2,592,881 | 2,497,499 |
Real estate investments and nonutility properties | 58,012 | 57,632 |
Less accumulated depreciation and amortization | 16,855 | 15,951 |
Real estate investment property, total | 41,157 | 41,681 |
Cash and cash equivalents: | ||
Cash | 13,190 | 10,908 |
Restricted cash | 0 | 1,211 |
Accounts receivable: | ||
Customers, net of allowances for uncollectible accounts of $5,665 and $4,600 on September 30, 2022 and December 31, 2021, respectively | 63,760 | 53,699 |
Income tax | 0 | 2,308 |
Other | 7,300 | 4,735 |
Accrued unbilled utility revenue | 53,682 | 44,026 |
Prepaid expenses | 12,964 | 9,667 |
Current regulatory assets, net | 738 | 2,629 |
Other current assets | 6,266 | 4,902 |
Total current assets | 157,900 | 134,085 |
OTHER ASSETS: | ||
Net regulatory assets, less current portion | 145,945 | 151,992 |
Investments | 14,438 | 15,784 |
Goodwill | 640,311 | 640,471 |
Other | 12,072 | 10,883 |
Total other assets | 812,766 | 819,130 |
Total assets | 3,604,704 | 3,492,395 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; authorized 70,000,000 shares; issued and outstanding shares 30,315,265 on September 30, 2022 and 30,181,348 on December 31, 2021 | 30 | 30 |
Additional paid-in capital | 614,226 | 606,392 |
Retained earnings | 435,856 | 428,260 |
Accumulated other comprehensive income | (765) | (163) |
Total stockholders’ equity | 1,049,347 | 1,034,519 |
Long-term debt, less current portion | 1,453,748 | 1,492,935 |
Capitalization, long-term debt and equity | 2,503,095 | 2,527,454 |
CURRENT LIABILITIES: | ||
Line of credit | 199,170 | 62,996 |
Current portion of long-term debt | 4,340 | 39,106 |
Accrued groundwater extraction charges, purchased water and power | 27,694 | 17,200 |
Accounts payable | 29,765 | 30,391 |
Accrued interest | 17,905 | 14,174 |
Accrued payroll | 11,524 | 11,583 |
Income tax payable | 3,859 | 0 |
Other current liabilities | 24,453 | 27,821 |
Total current liabilities | 318,710 | 203,271 |
DEFERRED INCOME TAXES | 208,130 | 200,451 |
ADVANCES FOR CONSTRUCTION | 140,842 | 130,693 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 319,866 | 316,479 |
POSTRETIREMENT BENEFIT PLANS | 89,610 | 89,998 |
OTHER NONCURRENT LIABILITIES | 24,451 | 24,049 |
COMMITMENTS AND CONTINGENCIES | ||
Total capitalization and liabilities | $ 3,604,704 | $ 3,492,395 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Allowance for uncollectible accounts | $ 5,665 | $ 4,600 |
CAPITALIZATION: | ||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (shares) | 30,315,265 | 30,181,348 |
Common stock, shares outstanding (shares) | 30,315,265 | 30,181,348 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance (in shares) at Dec. 31, 2020 | 28,556,605 | ||||
Beginning balance at Dec. 31, 2020 | $ 917,160 | $ 29 | $ 510,158 | $ 408,037 | $ (1,064) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,616 | 2,616 | |||
Unrealized gain (loss) on investment, net of tax | 38 | 38 | |||
Stock-based compensation | 1,248 | 1,280 | (32) | ||
Issuance of restricted and deferred stock units (in shares) | 30,547 | ||||
Issuance of restricted and deferred stock units | (964) | (964) | |||
Employee stock purchase plan (in shares) | 18,235 | ||||
Employee stock purchase plan | 1,026 | 1,026 | |||
Common stock issuance, net of costs (in shares) | 1,184,500 | ||||
Common stock issuance, net of costs | 66,896 | $ 1 | 66,895 | ||
Dividends paid | (9,724) | (9,724) | |||
Ending balance (in shares) at Mar. 31, 2021 | 29,789,887 | ||||
Ending balance at Mar. 31, 2021 | 978,296 | $ 30 | 578,395 | 400,897 | (1,026) |
Beginning balance (in shares) at Dec. 31, 2020 | 28,556,605 | ||||
Beginning balance at Dec. 31, 2020 | 917,160 | $ 29 | 510,158 | 408,037 | (1,064) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 42,459 | ||||
Ending balance (in shares) at Sep. 30, 2021 | 29,822,182 | ||||
Ending balance at Sep. 30, 2021 | 1,000,711 | $ 30 | 581,201 | 420,411 | (931) |
Beginning balance (in shares) at Mar. 31, 2021 | 29,789,887 | ||||
Beginning balance at Mar. 31, 2021 | 978,296 | $ 30 | 578,395 | 400,897 | (1,026) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 20,775 | 20,775 | |||
Unrealized gain (loss) on investment, net of tax | 107 | 107 | |||
Stock-based compensation | 763 | 791 | (28) | ||
Issuance of restricted and deferred stock units (in shares) | 15,040 | ||||
Issuance of restricted and deferred stock units | (9) | (9) | |||
Common stock issuance, net of costs | (120) | (120) | |||
Dividends paid | (10,133) | (10,133) | |||
Ending balance (in shares) at Jun. 30, 2021 | 29,804,927 | ||||
Ending balance at Jun. 30, 2021 | 989,679 | $ 30 | 579,057 | 411,511 | (919) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 19,068 | 19,068 | |||
Unrealized gain (loss) on investment, net of tax | (12) | (12) | |||
Stock-based compensation | 1,101 | 1,130 | (29) | ||
Issuance of restricted and deferred stock units (in shares) | 186 | ||||
Issuance of restricted and deferred stock units | 14 | 14 | |||
Employee stock purchase plan (in shares) | 17,069 | ||||
Employee stock purchase plan | 1,000 | 1,000 | |||
Dividends paid | (10,139) | (10,139) | |||
Ending balance (in shares) at Sep. 30, 2021 | 29,822,182 | ||||
Ending balance at Sep. 30, 2021 | $ 1,000,711 | $ 30 | 581,201 | 420,411 | (931) |
Beginning balance (in shares) at Dec. 31, 2021 | 30,181,348 | 30,181,348 | |||
Beginning balance at Dec. 31, 2021 | $ 1,034,519 | $ 30 | 606,392 | 428,260 | (163) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,737 | 3,737 | |||
Unrealized gain (loss) on investment, net of tax | (181) | (181) | |||
Stock-based compensation | 1,532 | 1,552 | (20) | ||
Issuance of restricted and deferred stock units (in shares) | 37,879 | ||||
Issuance of restricted and deferred stock units | (1,269) | (1,269) | |||
Employee stock purchase plan (in shares) | 17,918 | ||||
Employee stock purchase plan | 1,049 | 1,049 | |||
Common stock issuance costs | (87) | (87) | |||
Dividends paid | (10,882) | (10,882) | |||
Ending balance (in shares) at Mar. 31, 2022 | 30,237,145 | ||||
Ending balance at Mar. 31, 2022 | $ 1,028,418 | $ 30 | 607,637 | 421,095 | (344) |
Beginning balance (in shares) at Dec. 31, 2021 | 30,181,348 | 30,181,348 | |||
Beginning balance at Dec. 31, 2021 | $ 1,034,519 | $ 30 | 606,392 | 428,260 | (163) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 40,329 | ||||
Ending balance (in shares) at Sep. 30, 2022 | 30,315,265 | 30,315,265 | |||
Ending balance at Sep. 30, 2022 | $ 1,049,347 | $ 30 | 614,226 | 435,856 | (765) |
Beginning balance (in shares) at Mar. 31, 2022 | 30,237,145 | ||||
Beginning balance at Mar. 31, 2022 | 1,028,418 | $ 30 | 607,637 | 421,095 | (344) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 11,558 | 11,558 | |||
Unrealized gain (loss) on investment, net of tax | (248) | (248) | |||
Stock-based compensation | 1,018 | 1,041 | (23) | ||
Issuance of restricted and deferred stock units (in shares) | 10,529 | ||||
Issuance of restricted and deferred stock units | (6) | (6) | |||
Common stock issuance, net of costs | (6) | (6) | |||
Dividends paid | (10,889) | (10,889) | |||
Ending balance (in shares) at Jun. 30, 2022 | 30,247,674 | ||||
Ending balance at Jun. 30, 2022 | 1,029,845 | $ 30 | 608,666 | 421,741 | (592) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 25,034 | 25,034 | |||
Unrealized gain (loss) on investment, net of tax | (173) | (173) | |||
Stock-based compensation | 1,375 | 1,398 | (23) | ||
Issuance of restricted and deferred stock units (in shares) | 1,316 | ||||
Issuance of restricted and deferred stock units | 13 | 13 | |||
Employee stock purchase plan (in shares) | 18,667 | ||||
Employee stock purchase plan | 1,042 | 1,042 | |||
Common stock issuance, net of costs (in shares) | 47,608 | ||||
Common stock issuance, net of costs | 3,107 | 3,107 | |||
Dividends paid | $ (10,896) | (10,896) | |||
Ending balance (in shares) at Sep. 30, 2022 | 30,315,265 | 30,315,265 | |||
Ending balance at Sep. 30, 2022 | $ 1,049,347 | $ 30 | $ 614,226 | $ 435,856 | $ (765) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Unrealized gain (loss) on investment, tax expense (benefit) | $ (154) | $ 0 | $ (67) | $ (4) | $ 39 | $ 14 |
Dividends per share (usd per share) | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.34 | $ 0.34 | $ 0.34 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
OPERATING ACTIVITIES: | ||
Net income | $ 40,329 | $ 42,459 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 79,862 | 71,912 |
Deferred income taxes | 7,135 | 4,140 |
Stock-based compensation | 3,991 | 3,201 |
Allowance for equity funds used during construction | (1,324) | (1,490) |
Gain on sale of nonutility properties and Texas Water Alliance | (5,532) | (3,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable and accrued unbilled utility revenue | (22,511) | (19,647) |
Accounts payable and other current liabilities | (1,475) | 3,697 |
Accrued groundwater extraction charges, purchased water and power | 10,494 | 9,846 |
Tax receivable and payable, and other accrued taxes | (1,851) | 832 |
Postretirement benefits | (2,719) | 265 |
Regulatory assets and liabilities excluding income tax temporary differences, net and postretirement benefits | 21,776 | (12,418) |
Up-front service concession payment | (1,600) | 0 |
Other changes, net | 2,774 | 458 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 129,349 | 100,255 |
INVESTING ACTIVITIES: | ||
Company-funded | (160,515) | (169,238) |
Contributions in aid of construction | (17,773) | (12,520) |
Additions to real estate investments | (610) | (606) |
Payments to retire utility plant, net of salvage | (2,432) | (3,535) |
Proceeds from sale of nonutility properties and Texas Water Alliance | 310 | 3,000 |
Payments for business acquisitions | (433) | 0 |
NET CASH USED IN INVESTING ACTIVITIES | (181,453) | (182,899) |
FINANCING ACTIVITIES: | ||
Borrowings on line of credit | 152,655 | 67,099 |
Repayments on line of credit | (16,481) | (120,120) |
Long-term borrowings | 15,000 | 137,000 |
Repayments of long-term borrowings | (87,757) | (52,700) |
Issuance of common stock, net of issuance costs | 3,107 | 66,775 |
Dividends paid | (32,667) | (29,996) |
Receipts of advances and contributions in aid of construction | 21,593 | 23,585 |
Refunds of advances for construction | (2,177) | (2,179) |
Other changes, net | (98) | 132 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 53,175 | 89,596 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 1,071 | 6,952 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 12,119 | 9,269 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 13,190 | 16,221 |
LESS RESTRICTED CASH, END OF PERIOD | 0 | 2,202 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 13,190 | 14,019 |
Cash paid during the period for: | ||
Interest | 42,473 | 39,533 |
Income taxes | 572 | 7,643 |
Supplemental disclosure of non-cash activities: | ||
Accrued payables for additions to utility plant | 22,044 | 26,628 |
Utility property installed by developers | $ 976 | $ 1,527 |
General
General | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
General | General In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of the results for the interim periods. The unaudited interim financial information has been prepared in accordance with accounting principles generally accepted in the United States of America and in accordance with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission. The Notes to Consolidated Financial Statements in SJW Group’s 2021 Annual Report on Form 10-K should be read with the accompanying unaudited condensed consolidated financial statements. SJW Group is a holding company with five wholly-owned subsidiaries: San Jose Water Company (“SJWC”), SJWNE LLC, SJWTX, Inc., SJW Land Company, and SJWTX Holdings, Inc. SJWNE LLC is the holding company for Connecticut Water Service, Inc. (“CTWS”) whose wholly-subsidiaries are The Connecticut Water Company (“Connecticut Water”), The Maine Water Company (“Maine Water”), New England Water Utility Services, Inc. (“NEWUS”), and Chester Realty, Inc. SJWC, Connecticut Water, SJWTX, Inc. doing business as Canyon Lake Water Service Company (“CLWSC”), Maine Water and NEWUS are referred to as “Water Utility Services.” SJW Land Company and Chester Realty, Inc. are collectively referred to as “Real Estate Services.” Revenue Water sales are seasonal in nature and influenced by weather conditions. The timing of precipitation and climatic conditions can cause seasonal water consumption by customers to vary significantly. Due to the seasonal nature of the water business, the operating results for interim periods are not indicative of the operating results for a 12-month period. Revenue is generally higher in the warm, dry summer months when water usage and sales are greater, and lower in the winter months when cooler temperatures and increased precipitation curtail water usage resulting in lower sales. The major streams of revenue for SJW Group are as follows: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Revenue from contracts with customers $ 169,972 163,103 $ 440,406 422,545 Alternative revenue programs, net 3,172 2,216 (1,737) 4,984 Other balancing and memorandum accounts, net 1,857 639 6,719 3,637 Other regulatory mechanisms, net (494) (438) (260) (1,284) Rental income 1,474 1,403 4,196 4,067 $ 175,981 166,923 $ 449,324 433,949 Real Estate Investments and Nonutility Properties The major components of real estate investments and nonutility properties as of September 30, 2022, and December 31, 2021, are as follows: September 30, December 31, Land $ 12,615 12,615 Buildings and improvements 45,397 45,017 Subtotal 58,012 57,632 Less: accumulated depreciation and amortization 16,855 15,951 Total $ 41,157 41,681 On October 29, 2021, SJWC sold two nonutility properties located in San Jose, California for $13,150. SJW Group recognized a pre-tax gain on the sale of nonutility properties of $7,230, after selling expenses of $277 for one of the properties sold, and a gain of $5,442, after selling expenses of $178, was deferred on the other nonutility property pending California Public Utilities Commission (“CPUC”) review for the year ended December 31, 2021. On February 15, 2022, the CPUC review was completed and $5,442 was recognized as gain on sale of the second nonutility property. A former wholly owned subsidiary of SJW Group, Texas Water Alliance Limited, was sold to Guadalupe-Blanco River Authority (“GBRA”) in 2017. The sales agreement with GBRA included a holdback amount of $3,000 to be paid to SJW Group on June 30, 2021, subject to reduction under certain conditions. SJW Group received the holdback amount without reduction from the GBRA on June 29, 2021, and recognized a pre-tax gain on sale of $3,000. Fair Value Measurement The following instruments are not measured at fair value on SJW Group’s condensed consolidated balance sheets as of September 30, 2022, but require disclosure of their fair values: cash and cash equivalents, accounts receivable and accounts payable. The estimated fair value of such instruments as of September 30, 2022, approximates their carrying value as reported on the condensed consolidated balance sheets. The estimated fair value of such financial instruments were determined using the income approach based on the present value of estimated future cash flows. There have been no changes in valuation techniques during the three and nine months ended September 30, 2022. 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 SJW Group’s long-term debt was approximately $1,247,530 and $1,651,825 as of September 30, 2022, and December 31, 2021, 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 book value of long-term debt was $1,458,088 and $1,532,041 as of September 30, 2022, and December 31, 2021, respectively. The fair value of long-term debt would be categorized as Level 2 in the fair value hierarchy. CTWS’s additional retirement benefits under the supplemental executive retirement plans and retirement contracts are funded by investment assets held by a Rabbi Trust. The fair value of the money market funds, mutual funds and fixed income investments in the Rabbi Trust was $2,790 and $3,797 as of September 30, 2022, and December 31, 2021, respectively, and are categorized as Level 1 in the fair value hierarchy. Earnings per Share |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters Regulatory assets, net are comprised of the following as of September 30, 2022, and December 31, 2021: September 30, 2022 December 31, 2021 Regulatory assets: Income tax temporary differences, net $ 33,811 22,420 Postretirement pensions and other postretirement benefits 64,934 62,197 Business combinations debt premium, net 18,031 19,937 Balancing and memorandum accounts, net 22,583 38,334 Water Rate Adjustment (2,800) 2,588 Other, net 10,124 9,145 Total regulatory assets, net in Condensed Consolidated Balance Sheets 146,683 154,621 Less: current regulatory assets, net 738 2,629 Total regulatory assets, net, less current portion $ 145,945 151,992 As of September 30, 2022, and December 31, 2021, SJW Group’s regulatory assets, net, not earning a return primarily included postretirement pensions and the unfunded amount of other medical benefits, and business combination debt premiums, net. The total amount of regulatory assets, net not earning a return at September 30, 2022, and December 31, 2021, either by interest on the regulatory asset/liability or as a component of rate base at the allowed rate of return was $86,113 and $84,887, respectively. Balancing and Memorandum Accounts SJWC has established balancing accounts for the purpose of tracking the under-collection or over-collection associated with expense changes and 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. The Monterey Water Revenue Adjustment Mechanism (“MWRAM”) tracks the difference between the revenue received for actual metered sales through the tiered volumetric rate and the revenue that would have been received with the same actual metered sales if a uniform rate would have been in effect. The Water Conservation Memorandum Account (“WCMA”) allows 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 records the lost revenue captured in the WCMA balancing accounts. Drought surcharges collected are used to offset the revenue losses tracked in the WCMA. On October 11, 2022, the CPUC issued General Rate Case Decision No. 22-10-005, which approved a recovery of $18,174 in balancing and memorandum accounts from customers. Balancing and memorandum accounts recorded to regulatory assets, net for the three and nine months ended September 30, 2022, and 2021 are as follows: Three months ended September 30, 2022 Three months ended September 30, 2021 Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Revenue accounts: MWRAM $ 21,096 1,381 — 22,477 $ 15,278 363 — 15,641 WCMA (14,961) 3,868 (8,708) (19,801) 668 — — 668 Cost of capital memorandum account (1,568) (8) — (1,576) (1,562) — — (1,562) All others 417 590 — 1,007 (1,164) 397 — (767) Total revenue accounts 4,984 5,831 (8,708) 2,107 13,220 760 — 13,980 Cost-recovery accounts: Water supply costs 11,111 391 — 11,502 9,895 388 — 10,283 Pension 5,069 59 — 5,128 4,210 366 — 4,576 Hydro Generation Research, Development and Demonstration Memorandum Account (“PRVMA”) 543 3 (106) 440 928 — (121) 807 COVID-19 Catastrophic Event Memorandum Account (“CEMA”) 2,586 420 — 3,006 2,618 567 — 3,185 All others 479 (79) — 400 446 — — 446 Total cost-recovery accounts 19,788 794 (106) 20,476 18,097 1,321 (121) 19,297 Total $ 24,772 6,625 (8,814) 22,583 $ 31,317 2,081 (121) 33,277 Nine months ended September 30, 2022 Nine months ended September 30, 2021 Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Revenue accounts: MWRAM $ 16,866 5,610 1 22,477 $ 12,077 3,563 1 15,641 WCMA 3,534 2,768 (26,103) (19,801) 666 — 2 668 Cost of capital memorandum account (1,563) (13) — (1,576) (1,561) (1) — (1,562) All others (386) 1,392 1 1,007 (1,139) 369 3 (767) Total revenue accounts 18,451 9,757 (26,101) 2,107 10,043 3,931 6 13,980 Cost-recovery accounts: Water supply costs 10,545 957 — 11,502 8,123 2,159 1 10,283 Pension 4,941 187 — 5,128 3,478 1,098 — 4,576 PRVMA 707 5 (272) 440 1,108 — (301) 807 CEMA 3,245 (239) — 3,006 2,266 919 — 3,185 All others 445 (45) — 400 445 1 — 446 Total cost-recovery accounts 19,883 865 (272) 20,476 15,420 4,177 (300) 19,297 Total $ 38,334 10,622 (26,373) 22,583 $ 25,463 8,108 (294) 33,277 |
Capitalization
Capitalization | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Capitalization | CapitalizationOn November 17, 2021, SJW Group entered into an equity distribution agreement (the “Equity Distribution Agreement”) with J.P. Morgan Securities LLC, Janney Montgomery Scott LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC, pursuant to which the company may offer and sell shares of its common stock, $0.001 par value per share, from time to time in “at-the-market” offerings, having an aggregate gross sales price of up to $100,000. For the three and nine months ended September 30, 2022, SJW Group issued and sold a total of 47,608 shares of common stock with a weighted average price of $66.26 per share and received approximately $3,107 in net proceeds under the Equity Distribution Agreement. Since the inception of the Equity Distribution Agreement, SJW Group has issued and sold 402,723 shares of common stock with a weighted average price of $69.91 for a total net proceeds of $27,360 and has a remaining $71,845 under the Equity Distribution Agreement to issue into shares. On March 8, 2021, SJW Group entered into an underwriting agreement with J.P. Morgan Securities LLC, as the representative of the several underwriters named therein (the “Underwriters”), which provided for the issuance and sale by SJW Group to the Underwriters 1,030,000 shares of our common stock, par value $0.001 per share, in an underwritten public offering (the “Offering”). The shares in the Offering were sold at a public offering price of $59.00 per share. SJW Group also granted the Underwriters an option to purchase up to 154,500 additional shares of common stock, which was exercised in full. The Offering closed on March 11, 2021, and the offering of option shares closed on March 16, 2021. SJW Group received net proceeds of approximately $66,775 from the Offering and the sale of option shares, after deducting the underwriting discounts and commissions and offering expenses. |
Bank Borrowings and Long-Term L
Bank Borrowings and Long-Term Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Bank Borrowings and Long-Term Liabilities | Bank Borrowings and Long-Term Liabilities SJW Group’s contractual obligations and commitments include senior notes, bank term loans, revenue bonds, state revolving fund loans and other obligations. Water Utility Services has received advance deposit payments from its customers on certain construction projects. The refunds of the advance deposit payments constitute an obligation of the respective entities. Short-term Financing Agreements On August 2, 2022, SJW Group, SJWC, SJWTX, Inc., and CTWS entered into a $300,000 syndicated line of credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as Administrative Agent (“JP Morgan”), Wells Fargo Bank, National Association, as Documentation Agent, and a syndicate of banks. Proceeds of borrowings under the Credit Agreement will be used for refinancing existing debt, working capital, and general corporate purposes. The Credit Agreement has a maturity date of August 2, 2027. Under the terms of the Credit Agreement, each of SJW Group, SJWC, SJWTX, Inc., and CTWS is a borrower with several and not joint liability. Each borrower has an initial borrowing entitlement, or sublimit, which can be periodically adjusted from time to time as set forth in the Credit Agreement. The initial sublimit of each borrower is as follows: Initial Sublimit SJW Group $ 50,000 SJWC 140,000 CTWS 90,000 SJWTX, Inc. 20,000 $ 300,000 Borrowings under the Credit Agreement bear interest at either the Alternative Base Rate (as defined in the Credit Agreement and hereinafter referred to as “ABR”) or the Adjusted Term Secured Overnight Financing Rate (as defined in the Credit Agreement and hereinafter referred to as “SOFR”). ABR borrowings (which are borrowings bearing interest at a rate determined by reference to ABR) will bear interest at a rate per annum equal to ABR plus the applicable rate. SOFR borrowings (which are borrowings bearing interest at a rate determined by reference to SOFR) will bear interest at a rate per annum equal to SOFR plus the applicable rate. The applicable rate and pricing is variable depending on the credit ratings of the borrower. 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, asset sales, and fundamental changes. The Credit Agreement also includes a financial covenant that requires each of the borrowers to maintain its funded debt to capitalization ratio at or below 70%. This Credit Agreement replaces the existing $140,000 credit agreement, dated April 23, 2021, between SJWC and JP Morgan and the existing $5,000 credit agreement, dated April 23, 2021, between SJWTX and JP Morgan, with SJW Group as guarantor, both of which were terminated upon entering into the Credit Agreement and were set to mature on December 31, 2023. In addition, on August 2, 2022, CTWS and Citizens Bank, National Association, entered into a fourth modification to the amended and restated revolving credit facility, dated December 18, 2019, as amended, pursuant to which the credit commitment was reduced from $75,000 to $10,000. Long-term Financing Agreements On April 6, 2022, Maine Water entered into a credit agreement with a commercial bank, pursuant to an existing master loan agreement under which the commercial bank issued Maine Water a promissory note on the same date with an aggregate principal amount of $15,000 at a fixed interest rate of 4.54%, due May 31, 2042. The notes are unsecured obligations of Maine Water. Interest is payable quarterly in arrears on the 20th day of January, April, July and October of each year. The promissory note contains customary representations and warranties. Under the promissory note, Maine 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. Proceeds from the borrowing were received on May 13, 2022. On June 28, 2022, Connecticut Water entered into a note purchase agreement with certain affiliates of New York Life Insurance Company, pursuant to which Connecticut Water sold an aggregate principal amount of $25,000 of its 4.71% Senior Notes, Series 2022, due 2052. The closing of the note purchase agreement is expected to occur on December 15, 2022, and is subject to customary closing conditions. The Series 2022 Notes are unsecured obligations of Connecticut Water. Interest is payable semi-annually in arrears on June 15th and December 15th of each year. The note purchase agreement contains customary representations and warranties. Connecticut Water has agreed to customary affirmative and negative covenants for as long as the Series 2022 Notes are outstanding. The Series 2022 Notes are also subject to customary events of default, the occurrence of which may result in all of the Series 2022 Notes then outstanding becoming immediately due and payable. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and nine months ended September 30, 2022, income tax expense was $223 and $3,658, respectively. Income tax expense for the three and nine months ended September 30, 2021, was $2,749 and $5,159, respectively. The effective consolidated income tax rates were 1% and 13% for the three months ended September 30, 2022 and 2021, respectively, and 8% and 11% for the nine months ended September 30, 2022, and 2021, respectively. The lower effective tax rate for the three and nine months ended September 30, 2022, was primarily due to a tax accounting method change at CTWS regarding the non-network asset repairs deduction. SJW Group unrecognized tax benefits, before the impact of deductions of state taxes, excluding interest and penalties, of approximately $8,937 and $7,961 as of September 30, 2022, and December 31, 2021, respectively. SJW Group does not expect its unrecognized tax benefits to change significantly within the next 12 months. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesSJW Group is 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 | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit 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 CTWS 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. 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. In addition, senior management hired before March 31, 2008, for SJWC and January 1, 2009, for CTWS are eligible to receive additional retirement benefits under supplemental executive retirement plans and retirement contracts. 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. The supplemental retirement plans and Cash Balance Executive Supplemental Retirement Plan are non-qualified plans in which only senior management and other designated members of management may participate. SJW Group also provides health care and life insurance benefits for retired employees under employer-sponsored postretirement benefits that are not pension plans. The components of net periodic benefit costs for the defined benefit plans and other postretirement benefits for the three and nine months ended September 30, 2022, and 2021 are as follows: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Service cost $ 2,652 2,711 $ 7,956 8,134 Interest cost 2,860 2,556 8,581 7,666 Expected return on assets (5,044) (4,748) (15,132) (14,242) Unrecognized actuarial loss 1,182 1,788 3,546 5,362 Amortization of prior service cost 4 12 12 37 Total $ 1,654 2,319 $ 4,963 6,957 In 2022, SJW Group expects to make required and discretionary cash contributions of up to $7,842 to the pension plans and other postretirement benefits. For the three and nine months ended September 30, 2022, SJW Group has made $2,577 and $4,538, respectively, contributions to such plans. |
Equity Plans
Equity Plans | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Plans | Equity PlansThe Incentive 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. SJW Group also maintains stock plans in connection with its acquisition of CTWS which are no longer granting new stock awards. As of September 30, 2022, 179,848 shares are issuable upon the vesting of outstanding restricted stock units and deferred restricted stock units and an additional 612,738 shares are available for award issuances under the Incentive Plan. A summary of compensation costs charged to income and proceeds from the exercise of restricted stock and similar instruments that are recorded to additional paid-in capital and common stock, by award type, are presented below for the three and nine months ended September 30, 2022, and 2021: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Compensation costs charged to income: ESPP $ 184 176 $ 369 357 Restricted stock and deferred restricted stock 1,214 954 3,622 2,844 Total compensation costs charged to income $ 1,398 1,130 $ 3,991 3,201 ESPP proceeds $ 1,042 1,000 $ 2,091 2,026 Restricted Stock and Deferred Restricted Stock For the three months ended September 30, 2022, and 2021, SJW Group granted under the Incentive Plan 1,723 and 1,134, respectively, one year and three year service-based restricted stock awards with a weighted-average grant date fair value of $62.56 and $69.20, respectively, per unit. For the nine months ended September 30, 2022, and 2021, SJW Group granted under the Incentive Plan 45,726 and 46,567, respectively, one year and three year service-based restricted stock awards with a weighted-average grant date fair value of $65.31 and $64.65, respectively, per unit. For the three months ended September 30, 2022, and 2021, SJW Group granted under the Incentive Plan 2,193 and 0 target units, respectively, performance-based and market-based restricted stock awards with a weighted-average grant date fair value of $69.70 and $0.00, respectively, per unit. For the nine months ended September 30, 2022, and 2021, SJW Group granted under the Incentive Plan 35,846 and 30,641 target units, respectively, performance-based and market-based restricted stock awards granted with a weighted-average grant date fair value of $70.31 and $66.33, respectively, per unit. 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 September 30, 2022, the total unrecognized compensation costs related to restricted and deferred restricted stock plans amounted to $5,660. This cost is expected to be recognized over a weighted-average period of 1.78 years. Employee Stock Purchase Plan SJW Group’s recorded expenses for its ESPP were $94 and $276 for the three and nine months ended September 30, 2022, respectively, and $91 and $265 for the three and nine months ended September 30, 2021, respectively. The total unrecognized compensation costs related to the semi-annual offering period that ends January 31, 2023, for the ESPP is approximately $131. This cost is expected to be recognized during the fourth quarter of 2022 and first quarter of 2023. |
Segment and Non-Tariffed Busine
Segment and Non-Tariffed Business Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment and Non-Tariffed Business Reporting | Segment and Non-Tariffed Business ReportingSJW Group is a holding company with five subsidiaries: (i) SJWC, a water utility operation with both regulated and non-tariffed businesses, (ii) 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, (iv) SJWNE LLC a holding company for CTWS and its subsidiaries, The Connecticut Water Company, The Maine Water Company, New England Water Utility Services, Inc. and Chester Realty, Inc., and (v) SJWTX Holdings, Inc. which was formed for the purpose of effecting a corporate reorganization of the water utility operations in Texas. In accordance with FASB ASC Topic 280 - “Segment Reporting,” 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 first segment is 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.” 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, such as goodwill, 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 Three Months Ended September 30, 2022 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 171,044 3,463 1,474 — 171,044 4,937 175,981 Operating expense 134,739 2,092 975 573 134,739 3,640 138,379 Operating income (loss) 36,305 1,371 499 (573) 36,305 1,297 37,602 Net income (loss) 29,176 (10) 367 (4,499) 29,176 (4,142) 25,034 Depreciation and amortization 24,919 84 302 224 24,919 610 25,529 Interest on long-term debt and other interest expense 9,111 — — 5,079 9,111 5,079 14,190 Provision (benefit) for income taxes 103 392 128 (400) 103 120 223 Assets $ 3,498,396 5,302 43,017 57,989 3,498,396 106,308 3,604,704 For Three Months Ended September 30, 2021 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 162,352 3,168 1,403 — 162,352 4,571 166,923 Operating expense 129,915 2,156 956 122 129,915 3,234 133,149 Operating income (loss) 32,437 1,012 447 (122) 32,437 1,337 33,774 Net income (loss) 20,625 879 294 (2,730) 20,625 (1,557) 19,068 Depreciation and amortization 23,209 113 292 223 23,209 628 23,837 Interest on long-term debt and other interest expense 8,805 — — 4,730 8,805 4,730 13,535 Provision (benefit) for income taxes 3,537 280 100 (1,168) 3,537 (788) 2,749 Assets $ 3,352,976 7,141 44,629 64,995 3,352,976 116,765 3,469,741 For Nine Months Ended September 30, 2022 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 435,823 9,305 4,196 — 435,823 13,501 449,324 Operating expense 355,620 7,868 2,799 2,444 355,620 13,111 368,731 Operating income (loss) 80,203 1,437 1,397 (2,444) 80,203 390 80,593 Net income (loss) 51,656 441 998 (12,766) 51,656 (11,327) 40,329 Depreciation and amortization 73,888 2,821 903 730 73,888 4,454 78,342 Interest on long-term debt and other interest expense 27,676 — — 14,484 27,676 14,484 42,160 Provision (benefit) for income taxes 4,844 398 341 (1,925) 4,844 (1,186) 3,658 Assets $ 3,498,396 5,302 43,017 57,989 3,498,396 106,308 3,604,704 For Nine Months Ended September 30, 2021 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 421,985 7,897 4,067 — 421,985 11,964 433,949 Operating expense 343,965 5,467 2,718 2,307 343,965 10,492 354,457 Operating income (loss) 78,020 2,430 1,349 (2,307) 78,020 1,472 79,492 Net income (loss) 46,909 2,278 913 (7,641) 46,909 (4,450) 42,459 Depreciation and amortization 68,913 332 872 670 68,913 1,874 70,787 Interest on long-term debt and other interest expense 25,323 — — 15,332 25,323 15,332 40,655 Provision (benefit) for income taxes 8,001 665 305 (3,812) 8,001 (2,842) 5,159 Assets $ 3,352,976 7,141 44,629 64,995 3,352,976 116,765 3,469,741 ____________________ (1) The “All Other” category for the nine months ended September 30, 2022, includes the accounts of SJW Group, SJWNE LLC, CTWS and SJWTX Holdings, Inc. on a stand-alone basis. SJWTX Holdings, Inc. had no activity for the nine months ended September 30, 2022 . For the nine months ended September 30, 2021, “All Other” category includes the accounts of SJW Group, SJWNE LLC and CTWS on a stand-alone basis. (2) As of September 30, 2022 and December 31, 2021, 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. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventThe CPUC approved the settlement of SJWC’s General Rate Case Application No. 21-01-003 (“2022 GRC”) on October 6, 2022 and issued Decision No. 22-10-005 (“2022 GRC Decision”) on October 11, 2022. SJWC received authority for an increase of $25,074 or 6.03% in 2022, $12,955 or 2.94% in 2023, and $16,102 or 3.56% in 2024. The application included requests to recover $18,174 from balancing and memorandum accounts and authorization for a $350,000 capital budget. Additionally, it further aligns authorized and actual consumption, particularly for business customers, addresses the water supply mix variability, and provides greater revenue recovery in the fixed charge. The 2022 approved revenue increase is effective retrospectively to January 1, 2022. SJWC will be filing advice letters to implement new rates and to recover interim revenue and balancing and memorandum accounts in accordance with the 2022 GRC Decision. |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The unaudited interim financial information has been prepared in accordance with accounting principles generally accepted in the United States of America and in accordance with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission. The Notes to Consolidated Financial Statements in SJW Group’s 2021 Annual Report on Form 10-K should be read with the accompanying unaudited condensed consolidated financial statements. |
Revenue | Revenue Water sales are seasonal in nature and influenced by weather conditions. The timing of precipitation and climatic conditions can cause seasonal water consumption by customers to vary significantly. Due to the seasonal nature of the water business, the operating results for interim periods are not indicative of the operating results for a 12-month period. Revenue is generally higher in the warm, dry summer months when water usage and sales are greater, and lower in the winter months when cooler temperatures and increased precipitation curtail water usage resulting in lower sales. |
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 period. 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 restricted common stock awards under SJW Group’s Long-Term Incentive Plan (as amended, the “Incentive Plan”), shares potentially issuable under the performance stock plans assumed through the business combination with CTWS, and shares potentially issuable under the Employee Stock Purchase Plan (“ESPP”). |
General (Tables)
General (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Major Streams of Revenue | The major streams of revenue for SJW Group are as follows: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Revenue from contracts with customers $ 169,972 163,103 $ 440,406 422,545 Alternative revenue programs, net 3,172 2,216 (1,737) 4,984 Other balancing and memorandum accounts, net 1,857 639 6,719 3,637 Other regulatory mechanisms, net (494) (438) (260) (1,284) Rental income 1,474 1,403 4,196 4,067 $ 175,981 166,923 $ 449,324 433,949 |
Schedule of Real Estate Investments and Nonutility Properties | The major components of real estate investments and nonutility properties as of September 30, 2022, and December 31, 2021, are as follows: September 30, December 31, Land $ 12,615 12,615 Buildings and improvements 45,397 45,017 Subtotal 58,012 57,632 Less: accumulated depreciation and amortization 16,855 15,951 Total $ 41,157 41,681 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets, Net | Regulatory assets, net are comprised of the following as of September 30, 2022, and December 31, 2021: September 30, 2022 December 31, 2021 Regulatory assets: Income tax temporary differences, net $ 33,811 22,420 Postretirement pensions and other postretirement benefits 64,934 62,197 Business combinations debt premium, net 18,031 19,937 Balancing and memorandum accounts, net 22,583 38,334 Water Rate Adjustment (2,800) 2,588 Other, net 10,124 9,145 Total regulatory assets, net in Condensed Consolidated Balance Sheets 146,683 154,621 Less: current regulatory assets, net 738 2,629 Total regulatory assets, net, less current portion $ 145,945 151,992 |
Public Utilities General Disclosures | Balancing and memorandum accounts recorded to regulatory assets, net for the three and nine months ended September 30, 2022, and 2021 are as follows: Three months ended September 30, 2022 Three months ended September 30, 2021 Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Revenue accounts: MWRAM $ 21,096 1,381 — 22,477 $ 15,278 363 — 15,641 WCMA (14,961) 3,868 (8,708) (19,801) 668 — — 668 Cost of capital memorandum account (1,568) (8) — (1,576) (1,562) — — (1,562) All others 417 590 — 1,007 (1,164) 397 — (767) Total revenue accounts 4,984 5,831 (8,708) 2,107 13,220 760 — 13,980 Cost-recovery accounts: Water supply costs 11,111 391 — 11,502 9,895 388 — 10,283 Pension 5,069 59 — 5,128 4,210 366 — 4,576 Hydro Generation Research, Development and Demonstration Memorandum Account (“PRVMA”) 543 3 (106) 440 928 — (121) 807 COVID-19 Catastrophic Event Memorandum Account (“CEMA”) 2,586 420 — 3,006 2,618 567 — 3,185 All others 479 (79) — 400 446 — — 446 Total cost-recovery accounts 19,788 794 (106) 20,476 18,097 1,321 (121) 19,297 Total $ 24,772 6,625 (8,814) 22,583 $ 31,317 2,081 (121) 33,277 Nine months ended September 30, 2022 Nine months ended September 30, 2021 Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Revenue accounts: MWRAM $ 16,866 5,610 1 22,477 $ 12,077 3,563 1 15,641 WCMA 3,534 2,768 (26,103) (19,801) 666 — 2 668 Cost of capital memorandum account (1,563) (13) — (1,576) (1,561) (1) — (1,562) All others (386) 1,392 1 1,007 (1,139) 369 3 (767) Total revenue accounts 18,451 9,757 (26,101) 2,107 10,043 3,931 6 13,980 Cost-recovery accounts: Water supply costs 10,545 957 — 11,502 8,123 2,159 1 10,283 Pension 4,941 187 — 5,128 3,478 1,098 — 4,576 PRVMA 707 5 (272) 440 1,108 — (301) 807 CEMA 3,245 (239) — 3,006 2,266 919 — 3,185 All others 445 (45) — 400 445 1 — 446 Total cost-recovery accounts 19,883 865 (272) 20,476 15,420 4,177 (300) 19,297 Total $ 38,334 10,622 (26,373) 22,583 $ 25,463 8,108 (294) 33,277 |
Bank Borrowings and Long-Term_2
Bank Borrowings and Long-Term Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowing Credit Agreement | Under the terms of the Credit Agreement, each of SJW Group, SJWC, SJWTX, Inc., and CTWS is a borrower with several and not joint liability. Each borrower has an initial borrowing entitlement, or sublimit, which can be periodically adjusted from time to time as set forth in the Credit Agreement. The initial sublimit of each borrower is as follows: Initial Sublimit SJW Group $ 50,000 SJWC 140,000 CTWS 90,000 SJWTX, Inc. 20,000 $ 300,000 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit costs for the defined benefit plans and other postretirement benefits for the three and nine months ended September 30, 2022, and 2021 are as follows: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Service cost $ 2,652 2,711 $ 7,956 8,134 Interest cost 2,860 2,556 8,581 7,666 Expected return on assets (5,044) (4,748) (15,132) (14,242) Unrecognized actuarial loss 1,182 1,788 3,546 5,362 Amortization of prior service cost 4 12 12 37 Total $ 1,654 2,319 $ 4,963 6,957 |
Equity Plans (Tables)
Equity Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Costs Charged to Income and Proceeds from the Exercise of Any Restricted Stock and Similar Instruments that are Recorded to Additional Paid-In Capital and Common Stock, by Award Type | A summary of compensation costs charged to income and proceeds from the exercise of restricted stock and similar instruments that are recorded to additional paid-in capital and common stock, by award type, are presented below for the three and nine months ended September 30, 2022, and 2021: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Compensation costs charged to income: ESPP $ 184 176 $ 369 357 Restricted stock and deferred restricted stock 1,214 954 3,622 2,844 Total compensation costs charged to income $ 1,398 1,130 $ 3,991 3,201 ESPP proceeds $ 1,042 1,000 $ 2,091 2,026 |
Segment and Non-Tariffed Busi_2
Segment and Non-Tariffed Business Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, such as goodwill, 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 Three Months Ended September 30, 2022 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 171,044 3,463 1,474 — 171,044 4,937 175,981 Operating expense 134,739 2,092 975 573 134,739 3,640 138,379 Operating income (loss) 36,305 1,371 499 (573) 36,305 1,297 37,602 Net income (loss) 29,176 (10) 367 (4,499) 29,176 (4,142) 25,034 Depreciation and amortization 24,919 84 302 224 24,919 610 25,529 Interest on long-term debt and other interest expense 9,111 — — 5,079 9,111 5,079 14,190 Provision (benefit) for income taxes 103 392 128 (400) 103 120 223 Assets $ 3,498,396 5,302 43,017 57,989 3,498,396 106,308 3,604,704 For Three Months Ended September 30, 2021 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 162,352 3,168 1,403 — 162,352 4,571 166,923 Operating expense 129,915 2,156 956 122 129,915 3,234 133,149 Operating income (loss) 32,437 1,012 447 (122) 32,437 1,337 33,774 Net income (loss) 20,625 879 294 (2,730) 20,625 (1,557) 19,068 Depreciation and amortization 23,209 113 292 223 23,209 628 23,837 Interest on long-term debt and other interest expense 8,805 — — 4,730 8,805 4,730 13,535 Provision (benefit) for income taxes 3,537 280 100 (1,168) 3,537 (788) 2,749 Assets $ 3,352,976 7,141 44,629 64,995 3,352,976 116,765 3,469,741 For Nine Months Ended September 30, 2022 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 435,823 9,305 4,196 — 435,823 13,501 449,324 Operating expense 355,620 7,868 2,799 2,444 355,620 13,111 368,731 Operating income (loss) 80,203 1,437 1,397 (2,444) 80,203 390 80,593 Net income (loss) 51,656 441 998 (12,766) 51,656 (11,327) 40,329 Depreciation and amortization 73,888 2,821 903 730 73,888 4,454 78,342 Interest on long-term debt and other interest expense 27,676 — — 14,484 27,676 14,484 42,160 Provision (benefit) for income taxes 4,844 398 341 (1,925) 4,844 (1,186) 3,658 Assets $ 3,498,396 5,302 43,017 57,989 3,498,396 106,308 3,604,704 For Nine Months Ended September 30, 2021 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 421,985 7,897 4,067 — 421,985 11,964 433,949 Operating expense 343,965 5,467 2,718 2,307 343,965 10,492 354,457 Operating income (loss) 78,020 2,430 1,349 (2,307) 78,020 1,472 79,492 Net income (loss) 46,909 2,278 913 (7,641) 46,909 (4,450) 42,459 Depreciation and amortization 68,913 332 872 670 68,913 1,874 70,787 Interest on long-term debt and other interest expense 25,323 — — 15,332 25,323 15,332 40,655 Provision (benefit) for income taxes 8,001 665 305 (3,812) 8,001 (2,842) 5,159 Assets $ 3,352,976 7,141 44,629 64,995 3,352,976 116,765 3,469,741 ____________________ (1) The “All Other” category for the nine months ended September 30, 2022, includes the accounts of SJW Group, SJWNE LLC, CTWS and SJWTX Holdings, Inc. on a stand-alone basis. SJWTX Holdings, Inc. had no activity for the nine months ended September 30, 2022 . For the nine months ended September 30, 2021, “All Other” category includes the accounts of SJW Group, SJWNE LLC and CTWS on a stand-alone basis. (2) As of September 30, 2022 and December 31, 2021, 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. |
General - Narrative (Details)
General - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 subsidiary | |
Accounting Policies [Abstract] | |
Number of subsidiaries | 5 |
General - Major Streams of Reve
General - Major Streams of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | ||||
Revenue from contracts with customers | $ 169,972 | $ 163,103 | $ 440,406 | $ 422,545 |
Alternative revenue programs, net | 3,172 | 2,216 | (1,737) | 4,984 |
Other balancing and memorandum accounts, net | 1,857 | 639 | 6,719 | 3,637 |
Other regulatory mechanisms, net | (494) | (438) | (260) | (1,284) |
Rental income | 1,474 | 1,403 | 4,196 | 4,067 |
Total revenues | $ 175,981 | $ 166,923 | $ 449,324 | $ 433,949 |
General - Real Estate Investmen
General - Real Estate Investments and Nonutility Properties (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Feb. 15, 2022 USD ($) | Oct. 29, 2021 USD ($) property | Jun. 29, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2017 USD ($) | |
Accounting Policies [Abstract] | |||||||||
Land | $ 12,615 | $ 12,615 | $ 12,615 | ||||||
Buildings and improvements | 45,397 | 45,397 | 45,017 | ||||||
Subtotal | 58,012 | 58,012 | 57,632 | ||||||
Less accumulated depreciation and amortization | 16,855 | 16,855 | 15,951 | ||||||
Real estate investment property, total | 41,157 | 41,157 | $ 41,681 | ||||||
Schedule of Investments [Line Items] | |||||||||
Gain on sale of real estate investments | $ 3,000 | $ 0 | $ 0 | $ 0 | $ 3,000 | ||||
Sales agreement, holdback amount | $ 3,000 | ||||||||
Property Two | |||||||||
Schedule of Investments [Line Items] | |||||||||
Gain on sale of real estate investments | $ 5,442 | ||||||||
San Jose Water Company | |||||||||
Schedule of Investments [Line Items] | |||||||||
Number of properties sold | property | 2 | ||||||||
Proceeds from sale of real estate held-for-investment | $ 13,150 | ||||||||
San Jose Water Company | Property One | |||||||||
Schedule of Investments [Line Items] | |||||||||
Gain on sale of real estate investments | 7,230 | ||||||||
Properties selling expenses | 277 | ||||||||
San Jose Water Company | Property Two | |||||||||
Schedule of Investments [Line Items] | |||||||||
Properties selling expenses | 178 | ||||||||
Deferred gain on sale of properties | $ 5,442 |
General - Fair Value Measuremen
General - Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, book value | $ 1,458,088 | $ 1,532,041 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 1,247,530 | 1,651,825 |
Fair Value, Inputs, Level 1 | Supplemental Employee Retirement Plan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of plan assets | $ 2,790 | $ 3,797 |
General - Earnings per Share (D
General - Earnings per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted Stock Units (RSUs) | ||||
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) | 2,416 | 1,558 | 18,240 | 14,441 |
Regulatory Matters - Regulatory
Regulatory Matters - Regulatory Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 146,683 | $ 154,621 |
Less: current regulatory assets, net | 738 | 2,629 |
Total regulatory assets, net, less current portion | 145,945 | 151,992 |
Regulatory assets, net not earning a return | 86,113 | 84,887 |
Income tax temporary differences, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 33,811 | 22,420 |
Postretirement pensions and other postretirement benefits | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 64,934 | 62,197 |
Business combinations debt premium, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 18,031 | 19,937 |
Balancing and memorandum accounts, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 22,583 | 38,334 |
Water Rate Adjustment | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | (2,800) | 2,588 |
Other, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 10,124 | $ 9,145 |
Regulatory Matters - Balancing
Regulatory Matters - Balancing and Memorandum Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 11, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Regulatory Assets [Line Items] | |||||
Refunds (Collections) Adjustments | $ (8,708) | $ 0 | $ (26,101) | $ 6 | |
Authorized revenue, threshold percentage | 2% | 2% | |||
Subsequent Event | |||||
Regulatory Assets [Line Items] | |||||
Refunds (Collections) Adjustments | $ 18,174 |
Regulatory Matters - Public Uti
Regulatory Matters - Public Utilities General Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue accounts: | ||||
Beginning Balance | $ 4,984 | $ 13,220 | $ 18,451 | $ 10,043 |
Regulatory Asset Increase (Decrease) | 5,831 | 760 | 9,757 | 3,931 |
Refunds (Collections) Adjustments | (8,708) | 0 | (26,101) | 6 |
Ending Balance | 2,107 | 13,980 | 2,107 | 13,980 |
Cost-recovery accounts: | ||||
Beginning Balance | 19,788 | 18,097 | 19,883 | 15,420 |
Regulatory Asset Increase (Decrease) | 794 | 1,321 | 865 | 4,177 |
Refunds (Collections) Adjustments | (106) | (121) | (272) | (300) |
Ending Balance | 20,476 | 19,297 | 20,476 | 19,297 |
Total | ||||
Beginning Balance | 24,772 | 31,317 | 38,334 | 25,463 |
Regulatory Asset Increase (Decrease) | 6,625 | 2,081 | 10,622 | 8,108 |
Refunds (Collections) Adjustments | (8,814) | (121) | (26,373) | (294) |
Ending Balance | 22,583 | 33,277 | 22,583 | 33,277 |
MWRAM | ||||
Revenue accounts: | ||||
Beginning Balance | 21,096 | 15,278 | 16,866 | 12,077 |
Regulatory Asset Increase (Decrease) | 1,381 | 363 | 5,610 | 3,563 |
Refunds (Collections) Adjustments | 0 | 0 | 1 | 1 |
Ending Balance | 22,477 | 15,641 | 22,477 | 15,641 |
WCMA | ||||
Revenue accounts: | ||||
Beginning Balance | (14,961) | 668 | 3,534 | 666 |
Regulatory Asset Increase (Decrease) | 3,868 | 0 | 2,768 | 0 |
Refunds (Collections) Adjustments | (8,708) | 0 | (26,103) | 2 |
Ending Balance | (19,801) | 668 | (19,801) | 668 |
Cost of capital memorandum account | ||||
Revenue accounts: | ||||
Beginning Balance | (1,568) | (1,562) | (1,563) | (1,561) |
Regulatory Asset Increase (Decrease) | (8) | 0 | (13) | (1) |
Refunds (Collections) Adjustments | 0 | 0 | 0 | 0 |
Ending Balance | (1,576) | (1,562) | (1,576) | (1,562) |
All others | ||||
Revenue accounts: | ||||
Beginning Balance | 417 | (1,164) | (386) | (1,139) |
Regulatory Asset Increase (Decrease) | 590 | 397 | 1,392 | 369 |
Refunds (Collections) Adjustments | 0 | 0 | 1 | 3 |
Ending Balance | 1,007 | (767) | 1,007 | (767) |
Cost-recovery accounts: | ||||
Beginning Balance | 479 | 446 | 445 | 445 |
Regulatory Asset Increase (Decrease) | (79) | 0 | (45) | 1 |
Refunds (Collections) Adjustments | 0 | 0 | 0 | 0 |
Ending Balance | 400 | 446 | 400 | 446 |
Water supply costs | ||||
Cost-recovery accounts: | ||||
Beginning Balance | 11,111 | 9,895 | 10,545 | 8,123 |
Regulatory Asset Increase (Decrease) | 391 | 388 | 957 | 2,159 |
Refunds (Collections) Adjustments | 0 | 0 | 0 | 1 |
Ending Balance | 11,502 | 10,283 | 11,502 | 10,283 |
Pension | ||||
Cost-recovery accounts: | ||||
Beginning Balance | 5,069 | 4,210 | 4,941 | 3,478 |
Regulatory Asset Increase (Decrease) | 59 | 366 | 187 | 1,098 |
Refunds (Collections) Adjustments | 0 | 0 | 0 | 0 |
Ending Balance | 5,128 | 4,576 | 5,128 | 4,576 |
PRVMA | ||||
Cost-recovery accounts: | ||||
Beginning Balance | 543 | 928 | 707 | 1,108 |
Regulatory Asset Increase (Decrease) | 3 | 0 | 5 | 0 |
Refunds (Collections) Adjustments | (106) | (121) | (272) | (301) |
Ending Balance | 440 | 807 | 440 | 807 |
CEMA | ||||
Cost-recovery accounts: | ||||
Beginning Balance | 2,586 | 2,618 | 3,245 | 2,266 |
Regulatory Asset Increase (Decrease) | 420 | 567 | (239) | 919 |
Refunds (Collections) Adjustments | 0 | 0 | 0 | 0 |
Ending Balance | $ 3,006 | $ 3,185 | $ 3,006 | $ 3,185 |
Capitalization (Details)
Capitalization (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 10 Months Ended | |||
Mar. 08, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Nov. 17, 2021 | |
Subsidiary, Sale of Stock [Line Items] | ||||||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |
Offering price per share (usd per share) | $ 59 | |||||
At The Market Offering Member | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Common stock, par value (usd per share) | $ 0.001 | |||||
Aggregate gross sales price (up to) | $ 100 | |||||
Shares issued in offering (shares) | 47,608 | 47,608 | 402,723 | |||
Weighted average price per share (usd per share) | $ 66.26 | $ 66.26 | $ 69.91 | |||
Net proceeds from stock offering | $ 3,107 | $ 3,107 | $ 27,360 | |||
Total equity distribution | $ 71,845 | $ 71,845 | $ 71,845 | |||
Public Stock Offering | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Shares issued in offering (shares) | 1,030,000 | |||||
Net proceeds from stock offering | $ 66,775 | |||||
Over-Allotment Option | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Shares issued in offering (shares) | 154,500 |
Bank Borrowings and Long-Term_3
Bank Borrowings and Long-Term Liabilities - Narrative (Details) | 9 Months Ended | |||||||
Apr. 23, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Aug. 02, 2022 USD ($) | Aug. 01, 2022 USD ($) | Jul. 14, 2022 USD ($) | Jun. 28, 2022 USD ($) | Apr. 06, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Repayments of lines of credit | $ 16,481,000 | $ 120,120,000 | ||||||
4.54% Note Due May 2042 | Notes Payable to Banks | Maine Water Company | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 15,000,000 | |||||||
Interest rate | 4.54% | |||||||
4.71% Senior Note, Series 2022, Due 2052 | Senior Notes | Connecticut Water Company | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 25,000,000 | |||||||
Interest rate | 4.71% | |||||||
4.85% Senior Note, Series P | Senior Notes | San Jose Water Company | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 70,000,000 | |||||||
Interest rate | 4.85% | |||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 300,000,000 | |||||||
Capitalization ratio | 0.70 | |||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | CTWS | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 90,000,000 | |||||||
Revolving Credit Facility | SJWC Credit Agreement | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of lines of credit | $ 140,000,000 | |||||||
Revolving Credit Facility | SJWTX Credit Agreement | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | |||||||
Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Line of Credit | CTWS | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | $ 75,000,000 |
Bank Borrowings and Long-Term_4
Bank Borrowings and Long-Term Liabilities - Borrowing Credit Agreement (Details) - Revolving Credit Facility - Credit Agreement - Line of Credit | Aug. 02, 2022 USD ($) |
Line of Credit Facility [Line Items] | |
Initial Sublimit | $ 300,000,000 |
SJW Group | |
Line of Credit Facility [Line Items] | |
Initial Sublimit | 50,000,000 |
SJWC | |
Line of Credit Facility [Line Items] | |
Initial Sublimit | 140,000,000 |
CTWS | |
Line of Credit Facility [Line Items] | |
Initial Sublimit | 90,000,000 |
SJWTX, Inc. | |
Line of Credit Facility [Line Items] | |
Initial Sublimit | $ 20,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Provision (benefit) for income taxes | $ 223 | $ 2,749 | $ 3,658 | $ 5,159 | |
Effective consolidated income tax rate | 1% | 13% | 8% | 11% | |
Unrecognized tax benefits | $ 8,937 | $ 8,937 | $ 7,961 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated employer contributions for the current fiscal year | $ 7,842 | $ 7,842 |
Employer plan contributions | $ 2,577 | $ 4,538 |
CTWS Employees | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 1.50% |
Benefit Plans - Schedule of Net
Benefit Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 2,652 | $ 2,711 | $ 7,956 | $ 8,134 |
Interest cost | 2,860 | 2,556 | 8,581 | 7,666 |
Expected return on assets | (5,044) | (4,748) | (15,132) | (14,242) |
Unrecognized actuarial loss | 1,182 | 1,788 | 3,546 | 5,362 |
Amortization of prior service cost | 4 | 12 | 12 | 37 |
Total | $ 1,654 | $ 2,319 | $ 4,963 | $ 6,957 |
Equity Plans - Narrative (Detai
Equity Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted stock and deferred restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs | $ 5,660 | $ 5,660 | ||
Recognition period for unrecognized compensation cost | 1 year 9 months 10 days | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity instruments granted (in shares) | 1,723 | 1,134 | 45,726 | 46,567 |
Service-based restricted stock vesting period | 1 year | 3 years | 1 year | 3 years |
Grant date fair value of equity instruments granted (usd per share) | $ 62.56 | $ 69.20 | $ 65.31 | $ 64.65 |
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity instruments granted (in shares) | 2,193 | 0 | 35,846 | 30,641 |
Grant date fair value of equity instruments granted (usd per share) | $ 69.70 | $ 0 | $ 70.31 | $ 66.33 |
Performance Shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target vesting percentage | 0% | |||
Performance Shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target vesting percentage | 150% | |||
Market-based RSU | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target vesting percentage | 0% | |||
Market-based RSU | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target vesting percentage | 200% | |||
Incentive Plan | Restricted stock and deferred restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issuable upon exercise of Incentive Plan awards (in shares) | 179,848 | 179,848 | ||
Remaining shares available for issuance under the Incentive Plan (in shares) | 612,738 | 612,738 | ||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs | $ 131 | $ 131 | ||
Plan expense | $ 94 | $ 91 | $ 276 | $ 265 |
Equity Plans - Schedule of Comp
Equity Plans - Schedule of Compensation Costs Charged to Income and Proceeds from the Exercise of Any Restricted Stock and Similar Instruments that are Recorded to Additional Paid-In Capital and Common Stock, by Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation costs charged to income: | $ 1,398 | $ 1,130 | $ 3,991 | $ 3,201 |
Restricted stock and deferred restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation costs charged to income: | 1,214 | 954 | 3,622 | 2,844 |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation costs charged to income: | 184 | 176 | 369 | 357 |
ESPP proceeds | $ 1,042 | $ 1,000 | $ 2,091 | $ 2,026 |
Segment and Non-Tariffed Busi_3
Segment and Non-Tariffed Business Reporting - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 subsidiary | |
Segment Reporting [Abstract] | |
Number of subsidiaries | 5 |
Segment and Non-Tariffed Busi_4
Segment and Non-Tariffed Business Reporting - Schedule of Segment Reporting Information, by Segment (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) reporting_unit | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) reporting_unit | |
Segment Reporting Information [Line Items] | |||||||||
Operating revenue | $ 175,981 | $ 166,923 | $ 449,324 | $ 433,949 | |||||
Operating expense | 138,379 | 133,149 | 368,731 | 354,457 | |||||
Operating income (loss) | 37,602 | 33,774 | 80,593 | 79,492 | |||||
Net income (loss) | 25,034 | $ 11,558 | $ 3,737 | 19,068 | $ 20,775 | $ 2,616 | 40,329 | 42,459 | |
Depreciation and amortization | 25,529 | 23,837 | 78,342 | 70,787 | |||||
Interest on long-term debt and other interest expense | 14,190 | 13,535 | 42,160 | 40,655 | |||||
Provision (benefit) for income taxes | 223 | 2,749 | 3,658 | 5,159 | |||||
Assets | 3,604,704 | 3,469,741 | $ 3,604,704 | 3,469,741 | $ 3,492,395 | ||||
Number of reporting units | reporting_unit | 2 | 2 | |||||||
Water Utility Services | Regulated | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating revenue | 171,044 | 162,352 | $ 435,823 | 421,985 | |||||
Operating expense | 134,739 | 129,915 | 355,620 | 343,965 | |||||
Operating income (loss) | 36,305 | 32,437 | 80,203 | 78,020 | |||||
Net income (loss) | 29,176 | 20,625 | 51,656 | 46,909 | |||||
Depreciation and amortization | 24,919 | 23,209 | 73,888 | 68,913 | |||||
Interest on long-term debt and other interest expense | 9,111 | 8,805 | 27,676 | 25,323 | |||||
Provision (benefit) for income taxes | 103 | 3,537 | 4,844 | 8,001 | |||||
Assets | 3,498,396 | 3,352,976 | 3,498,396 | 3,352,976 | |||||
Water Utility Services | Non-tariffed | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating revenue | 3,463 | 3,168 | 9,305 | 7,897 | |||||
Operating expense | 2,092 | 2,156 | 7,868 | 5,467 | |||||
Operating income (loss) | 1,371 | 1,012 | 1,437 | 2,430 | |||||
Net income (loss) | (10) | 879 | 441 | 2,278 | |||||
Depreciation and amortization | 84 | 113 | 2,821 | 332 | |||||
Interest on long-term debt and other interest expense | 0 | 0 | 0 | 0 | |||||
Provision (benefit) for income taxes | 392 | 280 | 398 | 665 | |||||
Assets | 5,302 | 7,141 | 5,302 | 7,141 | |||||
Real Estate Services | Non-tariffed | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating revenue | 1,474 | 1,403 | 4,196 | 4,067 | |||||
Operating expense | 975 | 956 | 2,799 | 2,718 | |||||
Operating income (loss) | 499 | 447 | 1,397 | 1,349 | |||||
Net income (loss) | 367 | 294 | 998 | 913 | |||||
Depreciation and amortization | 302 | 292 | 903 | 872 | |||||
Interest on long-term debt and other interest expense | 0 | 0 | 0 | 0 | |||||
Provision (benefit) for income taxes | 128 | 100 | 341 | 305 | |||||
Assets | 43,017 | 44,629 | 43,017 | 44,629 | |||||
All Other | Non-tariffed | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating revenue | 0 | 0 | 0 | 0 | |||||
Operating expense | 573 | 122 | 2,444 | 2,307 | |||||
Operating income (loss) | (573) | (122) | (2,444) | (2,307) | |||||
Net income (loss) | (4,499) | (2,730) | (12,766) | (7,641) | |||||
Depreciation and amortization | 224 | 223 | 730 | 670 | |||||
Interest on long-term debt and other interest expense | 5,079 | 4,730 | 14,484 | 15,332 | |||||
Provision (benefit) for income taxes | (400) | (1,168) | (1,925) | (3,812) | |||||
Assets | 57,989 | 64,995 | 57,989 | 64,995 | |||||
SJW Group | Regulated | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating revenue | 171,044 | 162,352 | 435,823 | 421,985 | |||||
Operating expense | 134,739 | 129,915 | 355,620 | 343,965 | |||||
Operating income (loss) | 36,305 | 32,437 | 80,203 | 78,020 | |||||
Net income (loss) | 29,176 | 20,625 | 51,656 | 46,909 | |||||
Depreciation and amortization | 24,919 | 23,209 | 73,888 | 68,913 | |||||
Interest on long-term debt and other interest expense | 9,111 | 8,805 | 27,676 | 25,323 | |||||
Provision (benefit) for income taxes | 103 | 3,537 | 4,844 | 8,001 | |||||
Assets | 3,498,396 | 3,352,976 | 3,498,396 | 3,352,976 | |||||
SJW Group | Non-tariffed | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating revenue | 4,937 | 4,571 | 13,501 | 11,964 | |||||
Operating expense | 3,640 | 3,234 | 13,111 | 10,492 | |||||
Operating income (loss) | 1,297 | 1,337 | 390 | 1,472 | |||||
Net income (loss) | (4,142) | (1,557) | (11,327) | (4,450) | |||||
Depreciation and amortization | 610 | 628 | 4,454 | 1,874 | |||||
Interest on long-term debt and other interest expense | 5,079 | 4,730 | 14,484 | 15,332 | |||||
Provision (benefit) for income taxes | 120 | (788) | (1,186) | (2,842) | |||||
Assets | $ 106,308 | $ 116,765 | $ 106,308 | $ 116,765 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 11, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Subsequent Event [Line Items] | |||||
Refunds (Collections) Adjustments | $ (8,708) | $ 0 | $ (26,101) | $ 6 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
2022 revenue increase | $ 25,074 | ||||
2022 percent revenue increase | 6.03% | ||||
2023 revenue increase | $ 12,955 | ||||
2023 percent revenue increase | 2.94% | ||||
2024 revenue increase | $ 16,102 | ||||
2024 percent revenue increase | 3.56% | ||||
Refunds (Collections) Adjustments | $ 18,174 | ||||
Regulatory authorization for capital budget | $ 350,000 |