Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 20, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-14431 | ||
Entity Registrant Name | American States Water Company | ||
Entity Tax Identification Number | 95-4676679 | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Address, Address Line One | 630 E. Foothill Boulevard, | ||
Entity Address, City or Town | San Dimas | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 91773-1212 | ||
City Area Code | (909) | ||
Local Phone Number | 394-3600 | ||
Title of 12(b) Security | Common Shares | ||
Trading Symbol | AWR | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,189,000,557 | ||
Entity Common Stock, Shares Outstanding (in shares) | 36,988,764 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement of American States Water Company will be subsequently filed with the Securities and Exchange Commission as to Part III, Item Nos. 10, 11, 13 and 14 and portions of Item 12, in each case as specifically referenced herein. | ||
Entity Central Index Key | 0001056903 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
GSWC | |||
Entity Information [Line Items] | |||
Document Period End Date | Dec. 31, 2023 | ||
Entity File Number | 001-12008 | ||
Entity Registrant Name | Golden State Water Company | ||
Entity Tax Identification Number | 95-1243678 | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Address, Address Line One | 630 E. Foothill Boulevard, | ||
Entity Address, City or Town | San Dimas | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 91773-1212 | ||
City Area Code | (909) | ||
Local Phone Number | 394-3600 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding (in shares) | 171 | ||
Entity Central Index Key | 0000092116 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Los Angeles, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Regulated utility plant, at cost | ||
Water | $ 2,082,927 | $ 2,006,468 |
Electric | 156,471 | 133,815 |
Total | 2,239,398 | 2,140,283 |
Non-regulated utility property, at cost | 40,223 | 38,066 |
Total utility plant, at cost | 2,279,621 | 2,178,349 |
Less — accumulated depreciation | (624,472) | (606,231) |
Utility plant before construction work in progress | 1,655,149 | 1,572,118 |
Construction work in progress | 237,131 | 181,648 |
Net utility plant | 1,892,280 | 1,753,766 |
Other Property and Investments | ||
Goodwill | 1,116 | 1,116 |
Other property and investments | 42,932 | 36,907 |
Total other property and investments | 44,048 | 38,023 |
Current Assets | ||
Cash and cash equivalents | 14,073 | 5,997 |
Accounts receivable — customers, less allowance for doubtful accounts | 34,250 | 26,206 |
Unbilled receivable (Note 2) | 23,516 | 20,663 |
Receivable from U.S. government, less allowance for doubtful accounts (Note 2) | 49,306 | 34,974 |
Other accounts receivable, less allowance for doubtful accounts | 6,340 | 4,215 |
Income taxes receivable | 52 | 3,901 |
Materials and supplies | 17,574 | 14,623 |
Regulatory assets — current | 45,144 | 14,028 |
Prepayments and other current assets | 5,767 | 5,450 |
Contract assets (Note 2) | 9,956 | 9,390 |
Purchase power contract derivatives at fair value | 0 | 11,847 |
Total current assets | 205,978 | 151,294 |
Regulatory and Other Assets | ||
Unbilled revenue, receivable from U.S government | 4,886 | 6,456 |
Receivable from U.S. government (Note 2) | 42,183 | 50,482 |
Contract assets (Note 2) | 4,422 | 5,592 |
Operating lease right-of-use assets | 7,982 | 9,535 |
Regulatory assets | 25,585 | 5,694 |
Other | 18,758 | 13,532 |
Total other assets | 103,816 | 91,291 |
Total Assets | 2,246,122 | 2,034,374 |
Capitalization | ||
Common shareholder’s equity | 776,109 | 709,549 |
Long-term debt | 575,555 | 446,547 |
Total capitalization | 1,351,664 | 1,156,096 |
Current Liabilities | ||
Notes payable to bank | 42,000 | 255,500 |
Long-term debt — current | 353 | 399 |
Accounts payable | 68,705 | 84,849 |
Income taxes payable | 492 | 1,848 |
Accrued other taxes | 14,654 | 16,257 |
Accrued employee expenses | 14,738 | 13,996 |
Accrued interest | 8,607 | 5,308 |
Regulatory liabilities | 0 | 4,574 |
Contract liabilities (Note 2) | 1,352 | 903 |
Operating lease liabilities | 1,856 | 1,892 |
Purchase power contract derivative at fair value (Note 5) | 2,360 | 0 |
Other | 11,506 | 10,996 |
Total current liabilities | 166,623 | 396,522 |
Other Credits | ||
Note payable to bank, noncurrent | 291,500 | 22,000 |
Advances for construction | 67,431 | 64,351 |
Contributions in aid of construction — net | 151,414 | 147,918 |
Deferred income taxes | 161,577 | 149,677 |
Regulatory liabilities | 1,222 | 40,602 |
Unamortized investment tax credits | 1,011 | 1,082 |
Accrued pension and other post-retirement benefits | 32,652 | 33,636 |
Operating lease liabilities | 6,619 | 8,090 |
Other | 14,409 | 14,400 |
Total other credits | 727,835 | 481,756 |
Commitments and Contingencies | ||
Total liabilities and capitalization | $ 2,246,122 | $ 2,034,374 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITALIZATION - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Common stock, shares outstanding | 36,980,612 | 36,962,241 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common Shareholders' Equity: | ||
Common shares, no par value | $ 263,179 | $ 260,158 |
Retained earnings | 512,930 | 449,391 |
Common shareholder’s equity | 776,109 | 709,549 |
Long-Term Debt | ||
Debt and Lease Obligation | 579,047 | 450,373 |
Less: Current maturities | (353) | (399) |
Debt Issuance Costs, Net | (3,139) | (3,427) |
Long-Term Debt | 575,555 | 446,547 |
Total capitalization | $ 1,351,664 | $ 1,156,096 |
GSWC | ||
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Common stock, shares outstanding | 171 | 170 |
Common stock, shares authorized | 1,000 | 1,000 |
Common Shareholders' Equity: | ||
Common shares, no par value | $ 370,909 | $ 358,123 |
Retained earnings | 332,919 | 285,783 |
Common shareholder’s equity | 703,828 | 643,906 |
Long-Term Debt | ||
Debt and Lease Obligation | 544,047 | 415,373 |
Less: Current maturities | (353) | (399) |
Debt Issuance Costs, Net | (2,956) | (3,226) |
Long-Term Debt | 540,738 | 411,748 |
Total capitalization | 1,244,566 | 1,055,654 |
6.81% notes due 2028 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 15,000 | $ 15,000 |
Interest rate per annum (as a percent) | 6.81% | 6.81% |
6.81% notes due 2028 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 15,000 | $ 15,000 |
Interest rate per annum (as a percent) | 6.81% | 6.81% |
6.59% notes due 2029 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 40,000 | $ 40,000 |
Interest rate per annum (as a percent) | 6.59% | 6.59% |
6.59% notes due 2029 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 40,000 | $ 40,000 |
Interest rate per annum (as a percent) | 6.59% | 6.59% |
7.875% notes due 2030 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 20,000 | $ 20,000 |
Interest rate per annum (as a percent) | 7.875% | 7.875% |
7.875% notes due 2030 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 20,000 | $ 20,000 |
Interest rate per annum (as a percent) | 7.875% | 7.875% |
7.23% notes due 2031 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 50,000 | $ 50,000 |
Interest rate per annum (as a percent) | 7.23% | 7.23% |
7.23% notes due 2031 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 50,000 | $ 50,000 |
Interest rate per annum (as a percent) | 7.23% | 7.23% |
6.00% notes due 2041 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 62,000 | $ 62,000 |
Interest rate per annum (as a percent) | 6% | 6% |
6.00% notes due 2041 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 62,000 | $ 62,000 |
Interest rate per annum (as a percent) | 6% | 6% |
3.45% notes due 2029 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 15,000 | $ 15,000 |
Interest rate per annum (as a percent) | 3.45% | 3.45% |
3.45% notes due 2029 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 15,000 | $ 15,000 |
Interest rate per annum (as a percent) | 3.45% | 3.45% |
5.87% notes due 2028 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 40,000 | $ 40,000 |
Interest rate per annum (as a percent) | 5.87% | 5.87% |
5.87% notes due 2028 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 40,000 | $ 40,000 |
Interest rate per annum (as a percent) | 5.87% | 5.87% |
2.17% notes due 2030 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 85,000 | $ 85,000 |
Interest rate per annum (as a percent) | 2.17% | 2.17% |
2.17% notes due 2030 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 85,000 | $ 85,000 |
Interest rate per annum (as a percent) | 2.17% | 2.17% |
2.90% notes due 2040 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 75,000 | $ 75,000 |
Interest rate per annum (as a percent) | 2.90% | 2.90% |
2.90% notes due 2040 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 75,000 | $ 75,000 |
Interest rate per annum (as a percent) | 2.90% | 2.90% |
4.548% note due 2032 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 17,500 | $ 17,500 |
Interest rate per annum (as a percent) | 4.548% | |
4.949% note due 2037 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 17,500 | $ 17,500 |
Interest rate per annum (as a percent) | 4.949% | 4.949% |
5.12% notes due 2033 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 100,000 | $ 0 |
Interest rate per annum (as a percent) | 5.12% | |
5.12% notes due 2033 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 100,000 | 0 |
Interest rate per annum (as a percent) | 5.12% | |
5.22 % note due 2038 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 30,000 | 0 |
Interest rate per annum (as a percent) | 5.22% | |
5.22 % note due 2038 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 30,000 | 0 |
Interest rate per annum (as a percent) | 5.22% | |
5.50% notes due 2026 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 7,730 | $ 7,730 |
Interest rate per annum (as a percent) | 5.50% | 5.50% |
5.50% notes due 2026 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 7,730 | $ 7,730 |
Interest rate per annum (as a percent) | 5.50% | 5.50% |
State Water Project due 2035 | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 1,729 | $ 2,834 |
State Water Project due 2035 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | 1,729 | 2,834 |
American Recovery and Reinvestment Act Obligation due 2033 | ||
Long-Term Debt | ||
Debt and Lease Obligation | 2,588 | 2,809 |
American Recovery and Reinvestment Act Obligation due 2033 | GSWC | ||
Long-Term Debt | ||
Debt and Lease Obligation | $ 2,588 | $ 2,809 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Revenues | |||
Water | $ 433,473 | $ 340,602 | $ 347,112 |
Electric | 41,832 | 39,986 | 38,345 |
Contracted services | 120,394 | 110,940 | 113,396 |
Total operating revenues | 595,699 | 491,528 | 498,853 |
Operating Expenses | |||
Water purchased | 72,864 | 75,939 | 77,914 |
Power purchased for pumping | 12,829 | 11,861 | 11,103 |
Groundwater production assessment | 20,850 | 19,071 | 19,412 |
Power purchased for resale | 13,275 | 15,039 | 11,240 |
Supply cost balancing accounts | 12,118 | (12,000) | (11,421) |
Other operation | 40,271 | 38,095 | 34,738 |
Administrative and general | 88,273 | 86,190 | 83,547 |
Depreciation and amortization | 42,403 | 41,315 | 39,596 |
Maintenance | 14,218 | 13,392 | 12,781 |
Property and other taxes | 24,046 | 22,894 | 22,522 |
ASUS construction | 57,912 | 53,171 | 56,909 |
Gain on sale of assets | (100) | (75) | (465) |
Total operating expenses | 398,959 | 364,892 | 357,876 |
Operating Income | 196,740 | 126,636 | 140,977 |
Other Income and Expenses | |||
Interest expense | (42,762) | (27,027) | (22,834) |
Interest income | 7,416 | 2,326 | 1,493 |
Other, net | 5,126 | 125 | 5,134 |
Total other income and expenses | (30,220) | (24,576) | (16,207) |
Income before income taxes | 166,520 | 102,060 | 124,770 |
Income tax expense | 41,599 | 23,664 | 30,423 |
Net Income | $ 124,921 | $ 78,396 | $ 94,347 |
Basic Earnings Per Common Share | |||
Weighted Average Number of Shares Outstanding (in shares) | 36,976 | 36,955 | 36,921 |
Basic earnings per Common Share (usd per share) | $ 3.37 | $ 2.12 | $ 2.55 |
Fully Diluted Earnings Per Share | |||
Weighted Average Number of Diluted Shares (in shares) | 37,077 | 37,039 | 37,010 |
Earnings Per Share, Diluted | $ 3.36 | $ 2.11 | $ 2.55 |
Dividends Paid Per Common Share (in USD per share) | $ 1.655 | $ 1.525 | $ 1.400 |
AWR | |||
Operating Revenues | |||
Total operating revenues | $ 0 | $ 0 | $ 0 |
Operating Expenses | |||
Depreciation and amortization | 0 | 0 | 0 |
Other Income and Expenses | |||
Income before income taxes | 123,207 | 77,799 | 94,266 |
Income tax expense | (1,714) | (597) | (81) |
Net Income | $ 124,921 | $ 78,396 | $ 94,347 |
Basic Earnings Per Common Share | |||
Weighted Average Number of Shares Outstanding (in shares) | 36,976 | 36,955 | 36,921 |
Basic earnings per Common Share (usd per share) | $ 3.37 | $ 2.12 | $ 2.55 |
Fully Diluted Earnings Per Share | |||
Weighted Average Number of Diluted Shares (in shares) | 37,077 | 37,039 | 37,010 |
Earnings Per Share, Diluted | $ 3.36 | $ 2.11 | $ 2.55 |
Dividends Paid Per Common Share (in USD per share) | $ 1.655 | $ 1.525 | $ 1.400 |
GSWC | |||
Operating Revenues | |||
Water | $ 433,473 | $ 340,602 | $ 347,112 |
Total operating revenues | 433,473 | 340,602 | 347,112 |
Operating Expenses | |||
Water purchased | 72,864 | 75,939 | 77,914 |
Power purchased for pumping | 12,829 | 11,861 | 11,103 |
Groundwater production assessment | 20,850 | 19,071 | 19,412 |
Supply cost balancing accounts | 13,839 | (8,643) | (11,295) |
Other operation | 29,064 | 28,117 | 25,781 |
Administrative and general | 59,313 | 58,358 | 55,552 |
Depreciation and amortization | 35,886 | 34,805 | 33,384 |
Maintenance | 9,906 | 9,559 | 9,056 |
Property and other taxes | 19,845 | 19,080 | 19,041 |
Gain on sale of assets | (100) | 0 | (409) |
Total operating expenses | 274,296 | 248,147 | 239,539 |
Operating Income | 159,177 | 92,455 | 107,573 |
Other Income and Expenses | |||
Interest expense | (31,283) | (22,742) | (21,474) |
Interest income | 5,557 | 1,083 | 428 |
Other, net | 4,946 | (680) | 4,783 |
Total other income and expenses | (20,780) | (22,339) | (16,263) |
Income before income taxes | 138,397 | 70,116 | 91,310 |
Income tax expense | 35,689 | 16,346 | 22,095 |
Net Income | $ 102,708 | $ 53,770 | $ 69,215 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN COMMON SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | GSWC | Common Stock | Common Stock GSWC | Earnings Reinvested in the Business | Earnings Reinvested in the Business GSWC |
Beginning Balance (in shares) at Dec. 31, 2020 | 36,889,000 | 170 | ||||
Beginning Balance at Dec. 31, 2020 | $ 641,673 | $ 583,298 | $ 256,666 | $ 354,906 | $ 385,007 | $ 228,392 |
Add: | ||||||
Net Income | $ 94,347 | $ 69,215 | 94,347 | 69,215 | ||
Exercise of stock options and other issuance of Common Shares | 47,182 | 0 | 47,000 | |||
Exercise of stock options and other issuance of Common Shares | $ 0 | $ 0 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements | 1,616 | $ 1,473 | 1,616 | 1,473 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 160 | 151 | $ 160 | $ 151 | ||
Deduct: | ||||||
Dividends on Common Shares | 51,689 | 38,300 | 51,689 | 38,300 | ||
Dividend equivalent rights on stock-based awards | 160 | 151 | 160 | 151 | ||
Ending Balance (in shares) at Dec. 31, 2021 | 36,936,000 | 170 | ||||
Ending Balance at Dec. 31, 2021 | 685,947 | 615,686 | $ 258,442 | $ 356,530 | 427,505 | 259,156 |
Add: | ||||||
Net Income | $ 78,396 | $ 53,770 | 78,396 | 53,770 | ||
Exercise of stock options and other issuance of Common Shares | 25,956 | 0 | 26,000 | |||
Exercise of stock options and other issuance of Common Shares | $ 0 | $ 0 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements | 1,562 | $ 1,450 | 1,562 | 1,450 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 154 | 143 | $ 154 | $ 143 | ||
Deduct: | ||||||
Dividends on Common Shares | 56,356 | 27,000 | 56,356 | 27,000 | ||
Dividend equivalent rights on stock-based awards | $ 154 | $ 143 | 154 | 143 | ||
Ending Balance (in shares) at Dec. 31, 2022 | 36,962,241 | 170 | 36,962,000 | 170 | ||
Ending Balance at Dec. 31, 2022 | $ 709,549 | $ 643,906 | $ 260,158 | $ 358,123 | 449,391 | 285,783 |
Add: | ||||||
Net Income | $ 124,921 | $ 102,708 | 124,921 | 102,708 | ||
Exercise of stock options and other issuance of Common Shares | 18,371 | 1 | 19,000 | 1 | ||
Exercise of stock options and other issuance of Common Shares | $ 0 | $ 10,000 | $ 0 | $ 10,000 | ||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements | 2,834 | 2,614 | 2,834 | 2,614 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 187 | 172 | $ 187 | $ 172 | ||
Deduct: | ||||||
Dividends on Common Shares | 61,195 | 55,400 | 61,195 | 55,400 | ||
Dividend equivalent rights on stock-based awards | $ 187 | $ 172 | 187 | 172 | ||
Ending Balance (in shares) at Dec. 31, 2023 | 36,980,612 | 171 | 36,981,000 | 171 | ||
Ending Balance at Dec. 31, 2023 | $ 776,109 | $ 703,828 | $ 263,179 | $ 370,909 | $ 512,930 | $ 332,919 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities: | |||
Net Income | $ 124,921 | $ 78,396 | $ 94,347 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 43,254 | 41,697 | 39,974 |
Provision for doubtful accounts | 932 | 1,043 | 1,119 |
Deferred income taxes and investment tax credits | 4,783 | 2,803 | 3,561 |
Stock-based compensation expense | 3,298 | 2,571 | 2,566 |
(Gain) loss on investments held in a trust | (5,008) | 5,177 | (4,287) |
Other — net | 289 | 38 | (381) |
Changes in assets and liabilities: | |||
Accounts receivable — customers | (6,632) | 5,424 | (4,688) |
Unbilled receivable | (1,283) | 9,699 | (1,037) |
Other accounts receivable | (2,241) | 2,115 | (1,422) |
Unbilled receivable | (6,033) | (5,638) | (4,713) |
Materials and supplies | (2,951) | (2,460) | (3,544) |
Prepayments and other assets | 1,581 | 3,146 | 1,323 |
Contract assets | 604 | (5,395) | 235 |
Regulatory assets/liabilities | (81,373) | (18,915) | (5,842) |
Accounts payable | (10,862) | 11,767 | (2,881) |
Income taxes receivable/payable | 2,493 | (6,479) | (2,254) |
Contract liabilities | 449 | 646 | (1,543) |
Accrued pension and other post-retirement benefits | 1,046 | (3,087) | 3,051 |
Other liabilities | 416 | (4,749) | 2,000 |
Net cash provided (used) | 67,683 | 117,799 | 115,584 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (188,540) | (166,240) | (144,515) |
Other investing activities | (224) | (862) | (577) |
Net cash provided (used) | (188,764) | (167,102) | (145,092) |
Cash Flows From Financing Activities: | |||
Receipt of advances for and contributions in aid of construction | 11,889 | 6,901 | 12,432 |
Refunds on advances for construction | (4,540) | (5,321) | (4,666) |
Repayments of long-term debt | (334) | (377) | (28,356) |
Proceeds from the issuance of long-term debt, net of issuance costs | 129,665 | 34,789 | 0 |
Net changes in notes payable to banks | 54,590 | 72,000 | 71,300 |
Dividends paid | (61,195) | (56,356) | (51,689) |
Other | (918) | (1,299) | (1,287) |
Net cash provided (used) | 129,157 | 50,337 | (2,266) |
Net change in cash and cash equivalents | 8,076 | 1,034 | (31,774) |
Cash and cash equivalents, beginning of year | 5,997 | 4,963 | 36,737 |
Cash and cash equivalents, end of year | 14,073 | 5,997 | 4,963 |
GSWC | |||
Cash Flows From Operating Activities: | |||
Net Income | 102,708 | 53,770 | 69,215 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 36,623 | 35,072 | 33,643 |
Provision for doubtful accounts | 754 | 1,018 | 1,018 |
Deferred income taxes and investment tax credits | 2,949 | 855 | 2,308 |
Stock-based compensation expense | 2,994 | 2,269 | 2,313 |
(Gain) loss on investments held in a trust | (5,008) | 5,177 | (4,287) |
Other — net | 106 | 9 | (209) |
Changes in assets and liabilities: | |||
Accounts receivable — customers | (6,321) | 6,263 | (4,287) |
Unbilled receivable | (2,179) | 5,519 | (1,195) |
Other accounts receivable | (1,484) | 931 | 592 |
Materials and supplies | (1,260) | (736) | (1,725) |
Prepayments and other assets | 1,838 | 2,125 | 1,860 |
Regulatory assets/liabilities | (74,378) | (12,704) | (2,854) |
Accounts payable | (5,420) | 7,671 | (10) |
Income taxes receivable/payable | 1,470 | (4,664) | (1,640) |
Intercompany receivable/payable | 248 | (805) | 1,479 |
Accrued pension and other post-retirement benefits | 979 | (3,228) | 2,908 |
Other liabilities | (278) | (4,034) | 1,165 |
Net cash provided (used) | 54,341 | 94,508 | 100,294 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (160,939) | (146,730) | (123,526) |
Note receivable from AWR (parent) | 0 | 0 | (26,000) |
Receipt of payment of note receivable from AWR (parent) | 0 | 0 | 26,000 |
Other investing activities | (1,215) | (1,001) | (733) |
Net cash provided (used) | (162,154) | (147,731) | (124,259) |
Cash Flows From Financing Activities: | |||
Proceeds from issuance of Common Shares to AWR (parent) | 10,000 | 0 | 0 |
Receipt of advances for and contributions in aid of construction | 11,889 | 6,901 | 12,397 |
Refunds on advances for construction | (4,540) | (5,321) | (4,666) |
Repayments of long-term debt | (334) | (377) | (28,356) |
Proceeds from the issuance of long-term debt, net of issuance costs | 129,665 | 0 | 0 |
Net change in intercompany borrowings | (129,000) | 80,000 | 49,000 |
Dividends paid | (55,400) | (27,000) | (38,300) |
Other | (840) | (1,135) | (1,163) |
Net borrowings on notes payable to banks | 149,198 | 0 | 0 |
Net cash provided (used) | 110,638 | 53,068 | (11,088) |
Net change in cash and cash equivalents | 2,825 | (155) | (35,053) |
Cash and cash equivalents, beginning of year | 370 | 525 | 35,578 |
Cash and cash equivalents, end of year | $ 3,195 | $ 370 | $ 525 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Utility Plant, at cost | $ 2,082,927 | $ 2,006,468 |
Less — accumulated depreciation | (624,472) | (606,231) |
Construction work in progress | 237,131 | 181,648 |
Net utility plant | 1,892,280 | 1,753,766 |
Other Property and Investments | 42,932 | 36,907 |
Total other property and investments | 44,048 | 38,023 |
Current Assets | ||
Cash and cash equivalents | 14,073 | 5,997 |
Accounts receivable — customers, less allowance for doubtful accounts | 34,250 | 26,206 |
Unbilled receivable | 23,516 | 20,663 |
Other accounts receivable, less allowance for doubtful accounts | 6,340 | 4,215 |
Income taxes receivable | 52 | 3,901 |
Materials and supplies | 17,574 | 14,623 |
Regulatory assets — current | 45,144 | 14,028 |
Prepayments and other current assets | 5,767 | 5,450 |
Total current assets | 205,978 | 151,294 |
Other Assets | ||
Operating lease right-of-use assets | 7,982 | 9,535 |
Regulatory assets | 25,585 | 5,694 |
Other | 18,758 | 13,532 |
Total other assets | 103,816 | 91,291 |
Total Assets | 2,246,122 | 2,034,374 |
Capitalization | ||
Common shareholder’s equity | 776,109 | 709,549 |
Long-term debt | 575,555 | 446,547 |
Total capitalization | 1,351,664 | 1,156,096 |
Current Liabilities | ||
Long-term debt — current | 353 | 399 |
Accounts payable | 68,705 | 84,849 |
Income taxes payable | 492 | 1,848 |
Accrued other taxes | 14,654 | 16,257 |
Accrued employee expenses | 14,738 | 13,996 |
Accrued interest | 8,607 | 5,308 |
Operating lease liabilities | 1,856 | 1,892 |
Other | 11,506 | 10,996 |
Total current liabilities | 166,623 | 396,522 |
Other Credits | ||
Note payable to bank, noncurrent | 291,500 | 22,000 |
Advances for construction | 67,431 | 64,351 |
Contributions in aid of construction — net | 151,414 | 147,918 |
Deferred income taxes | 161,577 | 149,677 |
Regulatory liabilities | 1,222 | 40,602 |
Unamortized investment tax credits | 1,011 | 1,082 |
Accrued pension and other post-retirement benefits | 32,652 | 33,636 |
Operating lease liabilities | 6,619 | 8,090 |
Other | 14,409 | 14,400 |
Total other credits | 727,835 | 481,756 |
Total liabilities and capitalization | 2,246,122 | 2,034,374 |
GSWC | ||
Assets | ||
Utility Plant, at cost | 2,082,927 | 2,006,468 |
Less — accumulated depreciation | (543,135) | (530,925) |
Total | 1,539,792 | 1,475,543 |
Construction work in progress | 195,742 | 141,175 |
Net utility plant | 1,735,534 | 1,616,718 |
Other Property and Investments | 40,480 | 34,655 |
Total other property and investments | 40,480 | 34,655 |
Current Assets | ||
Cash and cash equivalents | 3,195 | 370 |
Accounts receivable — customers, less allowance for doubtful accounts | 31,018 | 23,107 |
Unbilled receivable | 17,185 | 15,006 |
Other accounts receivable, less allowance for doubtful accounts | 4,301 | 2,721 |
Intercompany receivables | 380 | 621 |
Income taxes receivable | 222 | 1,692 |
Materials and supplies | 7,380 | 6,120 |
Regulatory assets — current | 44,007 | 14,028 |
Prepayments and other current assets | 4,544 | 4,464 |
Total current assets | 112,232 | 68,129 |
Other Assets | ||
Operating lease right-of-use assets | 7,796 | 9,208 |
Regulatory assets | 2,944 | 0 |
Other | 17,169 | 12,598 |
Total other assets | 27,909 | 21,806 |
Total Assets | 1,916,155 | 1,741,308 |
Capitalization | ||
Common shareholder’s equity | 703,828 | 643,906 |
Long-term debt | 540,738 | 411,748 |
Total capitalization | 1,244,566 | 1,055,654 |
Current Liabilities | ||
Long-term debt — current | 353 | 399 |
Accounts payable | 55,488 | 65,944 |
Accrued other taxes | 12,658 | 14,501 |
Accrued employee expenses | 11,502 | 11,233 |
Accrued interest | 7,508 | 4,364 |
Operating lease liabilities | 1,725 | 1,788 |
Other | 10,715 | 10,152 |
Total current liabilities | 99,949 | 108,381 |
Other Credits | ||
Intercompany note payable | 0 | 129,000 |
Note payable to bank, noncurrent | 150,000 | 0 |
Advances for construction | 67,411 | 64,331 |
Contributions in aid of construction — net | 151,414 | 147,918 |
Deferred income taxes | 147,458 | 138,788 |
Regulatory liabilities | 1,222 | 40,602 |
Unamortized investment tax credits | 1,011 | 1,082 |
Accrued pension and other post-retirement benefits | 32,309 | 33,421 |
Operating lease liabilities | 6,568 | 7,878 |
Other | 14,247 | 14,253 |
Total other credits | 571,640 | 577,273 |
Total liabilities and capitalization | $ 1,916,155 | $ 1,741,308 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”), Bear Valley Electric Service Inc. (“BVES”), and American States Utility Services, Inc. (“ASUS”) (and its subsidiaries, Fort Bliss Water Services Company (“FBWS”), Old Dominion Utility Services, Inc. (“ODUS”), Terrapin Utility Services, Inc. (“TUS”), Palmetto State Utility Services, Inc. (“PSUS”), Old North Utility Services, Inc. (“ONUS”), Emerald Coast Utility Services, Inc. (“ECUS”), Fort Riley Utility Services, Inc. (“FRUS”), Bay State Utility Services LLC (“BSUS”), and Patuxent River Utility Services LLC (“PRUS”)). AWR and its subsidiaries may be collectively referred to as “Registrant” or “the Company.” AWR, through its wholly owned subsidiaries, serves over one million people in ten states. GSWC and BVES are both California public utilities. GSWC engages in the purchase, production, distribution and sale of water throughout California serving approximately 264,100 customers connections. BVES distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,800 customers connections. The California Public Utilities Commission (“CPUC”) regulates GSWC’s and BVES’s businesses in matters including properties, rates, services, facilities, and transactions between GSWC, BVES, and their affiliates. ASUS, through its subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various U.S. military bases primarily pursuant to initial 50-year, firm-fixed-price contracts with the U.S. government. These contracts are subject to annual economic price adjustments and modifications for changes in circumstances, changes in laws and regulations and additions to the contract value for new construction of facilities at the military bases. ASUS also from time to time performs construction services on military bases as a subcontractor or pursuant to a task order agreement. On August 15, 2023, ASUS was awarded a new 50-year contract by the U.S. government to operate, maintain, and provide construction management services for the water distribution and wastewater collection and treatment facilities at Naval Air Station Patuxent River, a United States Navy air station located in Maryland. The initial firm-fixed-price value of the contract is estimated at $349 million over a 50-year period and is subject to annual economic price adjustments. This initial value is also subject to adjustment based on the results of a joint inventory of assets to be performed during the transition period and will be finalized during the first year of operations. On September 29, 2023, ASUS was awarded a new 15-year contract by the U.S. government, that is different than ASUS's other existing 50-year contracts, to operate, maintain, and provide construction management services for the water distribution and wastewater collection and treatment facilities at Joint Base Cape Cod (“JBCC”) located in Massachusetts. Under this contract, ASUS will have the opportunity to perform work at JBCC through the periodic issuance of task orders by the U.S. government for up to a maximum initial firm-fixed-price value of $45.0 million over a 15-year period, subject to adjustments as task orders are issued. In September 2023, the first task order was issued with a value of $2.3 million to perform an evaluation, construction and transition services that are scheduled for completion in 2024. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or its subsidiaries. Basis of Presentation : The consolidated financial statements and notes thereto are presented in a combined report filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. AWR owns all of the outstanding common shares of GSWC, BVES and ASUS. ASUS owns all of the outstanding common shares of its subsidiaries. The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Intercompany transactions and balances have been eliminated in the AWR consolidated financial statements. Related-Party and Intercompany Transactions : As discussed in Note 9, prior to AWR and GSWC entering into new separate credit agreements on June 28, 2023 that replaced AWR’s previous credit agreement, AWR borrowed under its credit facility and provided funds to both GSWC and ASUS in support of their operations. Under AWR’s new credit facility, AWR borrows and continues to provide funds to ASUS in support of its operations, through an intercompany borrowing agreement, and AWR (parent). The interest rate charged to ASUS is sufficient to cover AWR’s interest expense under the credit facility. GSWC’s new credit facility provides support for its water operations. BVES has a separate credit facility and has also issued long-term debt to support its operations. Furthermore, GSWC, BVES and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC allocates certain corporate office administrative and general costs to its affiliates, BVES and ASUS, using allocation factors approved by the CPUC. During the years ended December 31, 2023, 2022 and 2021, GSWC allocated to ASUS approximately $5.0 million , $5.2 million and $5.3 million, respectively, of corporate office administrative and general costs. During the years ended December 31, 2023, 2022 and 2021, GSWC allocated corporate office administrative and general costs to BVES of approximately $3.5 million , $2.7 million and $2.8 million, respectively. In January 2023, the Board of Directors approved the issuance of one GSWC common share to AWR for $10.0 million. Also in January 2023, GSWC issued $130.0 million in unsecured private placement long-term notes. GSWC used the proceeds from both the issuance of equity and long-term debt issued to pay-off all intercompany borrowings due to AWR at that time. On June 28, 2023, GSWC borrowed for the first time under its new syndicated credit facility and used the proceeds to again pay-off its short-term intercompany borrowings due to AWR. The CPUC requires GSWC to pay-off all intercompany borrowings it has from AWR within a 24-month period. GSWC’s borrowings under its new credit facility will also be required to be paid-off in full within a 24-month period. COVID-19 : During 2021, as a response to orders issued by the CPUC and the governor of California related to the COVID-19 pandemic, GSWC and BVES suspended customer service disconnections for nonpayment at the time. However, pursuant to the CPUC’s decision in the Second Phase of the Low-Income Affordability Rulemaking, the moratorium on water-service disconnections due to non-payment of past-due amounts billed to residential customers expired on February 1, 2022, with service disconnections due to nonpayment for delinquent residential customers resuming in June 2022. Payment plan options have been offered to customers; however, GSWC has continued to experience non-payments of past-due bills from customers as a result of the lingering effects of the pandemic during 2023. The CPUC authorized GSWC and BVES to track incremental costs, including bad debt expense, in excess of what is included in their respective revenue requirements incurred as a result of the pandemic in COVID-19 emergency-related memorandum accounts. In July 2021, the governor of California approved SB-129 Budget Act of 2021, in which nearly $1 billion in relief funding for overdue water customer bills, and nearly $1 billion in relief funding for overdue electric customer bills were included. The water customer relief funding was managed by the State Water Resources Control Board (“SWRCB”) through the California Water and Wastewater Arrearage Payment Program (“Arrearage Program”) to provide assistance to customers for their water debt accrued during the COVID-19 pandemic by remitting federal funds that the state received from the American Rescue Plan Act of 2021 to the utility on behalf of eligible customers. In addition, on July 10, 2023, the governor of California signed a budget trailer bill expanding the Arrearage Program. This new Extended Water and Wastewater Arrearage Program (“Extended Arrearage Program”) extended the COVID relief period to December 31, 2022, with the state legislature allocating an additional $600 million in federal funding. In January 2022, GSWC received $9.5 million in COVID relief funds through the Arrearage Program to provide assistance to customers for their water debt accrued during the COVID-19 pandemic by remitting federal funds that the state received from the American Rescue Plan Act of 2021 to the utility on behalf of eligible customers. In December 2023, GSWC filed an application with the SWRCB through the Extended Arrearage Program to obtain additional COVID relief funds to provide further assistance to its customers for their water debt accrued during the COVID-19 pandemic. GSWC has received confirmation from SWRCB that it is currently processing GSWC's application and expects to disburse approximately $3.5 million in additional COVID relief funds through this Program. All funds to be received will be applied to customer eligible delinquent balances. In February and December 2022, BVES received $321,000 and $152,000, respectively, from the state of California for similar customer relief funding for unpaid electric customer bills incurred during the pandemic. The CPUC requires that amounts tracked in GSWC’s and BVES’s COVID-19 memorandum accounts for unpaid customer bills be first offset by any (i) federal and state relief for water or electric utility bill debt, and (ii) customer payments through payment plan arrangements, prior to receiving recovery from customers at large. As of December 31, 2023, GSWC fully offset its bad debt-related CEMA balance as a result of additional COVID relief funds approved. In addition, BVES has filed to recover the remaining balance in its COVID-19 memorandum account through its general rate case application filed in August 2022. On April 10, 2023, the Biden Administration terminated the COVID-19 national emergency. The COVID-19 emergency-related memorandum accounts for GSWC and BVES expired when the COVID-19 national emergency ended. Utility Accounting : Registrant’s accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”), including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the CPUC and, to the extent applicable, the Federal Energy Regulatory Commission. GSWC and BVES have incurred various costs and received various credits reflected as regulatory assets and liabilities. Accounting for such costs and credits as regulatory assets and liabilities is in accordance with the guidance for accounting for the effects of certain types of regulation. This guidance sets forth the application of GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. Under such accounting guidance, rate-regulated entities defer costs and credits on the balance sheet as regulatory assets and liabilities when it is probable that those costs and credits will be recognized in the ratemaking process in a period different from the period in which they would have been reflected in income by an unregulated company. These regulatory assets and liabilities are then recognized in the income statement in the period in which the same amounts are reflected in the rates charged for service. The amounts included as regulatory assets and liabilities that will be collected or refunded over a period exceeding one year are classified as long-term assets and liabilities as of December 31, 2023 and 2022. Regulatory assets are reviewed for recoverability each reporting period. If a regulatory asset is no longer deemed probable of recovery, the deferred cost is charged to earnings. Property and Depreciation : Registrant’s property consists primarily of regulated utility plant at GSWC and BVES. GSWC and BVES capitalize, as utility plant, the cost of construction and the cost of additions, betterments and replacements of retired units of property. Such costs include labor, material and certain indirect costs. Indirect costs are allocated to each project based on total costs. Water systems acquired are recorded at estimated original cost of utility plant when first devoted to utility service and the applicable depreciation is recorded to accumulated depreciation. Any difference between the estimated original cost, less accumulated depreciation, and the purchase price, if recognized by the CPUC, is recorded as an acquisition adjustment within utility plant. Depreciation for the regulated utilities is computed on the straight-line, remaining-life basis, group method, in accordance with the applicable ratemaking process. The provision for depreciation expressed as a percentage of the aggregate depreciable asset balances for regulated utilities was 2.2% fo r each of the years 2023, 2022 and 2021. Depreciation expense for regulated utilities, excluding amortization expense and depreciation on transportation equipment, totale d $38.3 million, $37.3 million and $35.5 million for the years ended December 31, 2023, 2022 and 2021, respectively. Depreciation computed on regulated utilities’ transportation equipment is recorded in other operating expenses and totaled $851,000 , $382,000 and $379,000 for the years 2023, 2022 and 2021, respectively. For the year ended December 31, 2023, approximately $212,000 of additional depreciation expense on GSWC's transportation equipment was recorded that relates to the cumulative retroactive impact for the full year of 2022 approved in the CPUC final decision in GSWC's general rate case that resulted from an increase to the transportation equipment composite depreciation rates that are retroactive to January 1, 2022. Expenditures for maintenance and repairs are expensed as incurred. Retired property costs, including costs of removal, are charged to the accumulated provision for depreciation. Estimated useful lives of regulated utilities’ utility plant, as authorized by the CPUC, are as follows: Source of water supply 20 years to 60 years Pumping 26 years to 41 years Water treatment 26 years to 32 years Transmission and distribution 15 years to 80 years Generation 40 years Other plant 5 years to 62 years Non-regulated property consists primarily of equipment utilized by ASUS and its subsidiaries for its operations. This property is stated at cost, net of accumulated depreciation, which is calculated using the straight-line method over the useful lives of the assets. Asset Retirement Obligations : GSWC has a legal obligation for the retirement of its wells, which by law need to be properly capped at the time of removal. As such, GSWC incurs asset retirement obligations. GSWC records the fair value of a liability for these asset retirement obligations in the period in which they are incurred. When the liability is initially recorded, GSWC capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, GSWC either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. Retirement costs have historically been recovered through rates subsequent to the retirement costs being incurred. Accordingly, recoverability of GSWC’s asset retirement obligations are reflected as a regulatory asset (Note 3). GSWC also reflects the loss or gain at settlement as a regulatory asset or liability on the balance sheet. With regards to removal costs associated with certain other long-lived assets, such as water mains, distribution and transmission assets, asset retirement obligations have not been recognized as GSWC believes there is no legal obligation to do so. There are no CPUC rules or regulations that require GSWC to remove any of its other long-lived assets. In addition, GSWC’s water pipelines are not subject to regulation by any federal regulatory agency. GSWC has franchise agreements with various municipalities in order to use the public right of way for utility purposes (i.e., operate water distribution and transmission assets), and if certain events occur in the future, GSWC could be required to remove or relocate certain of its pipelines. However, it is not possible to estimate an asset retirement amount since the timing and the amount of assets that may be required to be removed, if any, is not known. Amounts recorded for asset retirement obligations are subject to various assumptions and determinations, such as determining whether a legal obligation exists to remove assets, estimating the fair value of the costs of removal, when final removal will occur and the credit-adjusted risk-free interest rates to be utilized on discounting future liabilities. Changes that may arise over time with regard to these assumptions will change amounts recorded in the future. Revisions in estimates for timing or estimated cash flows are recognized as changes in the carrying amount of the liability and the related capitalized asset. The estimated fair value of the costs of removal is based on third-party costs. Impairment of Long-Lived Assets : Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable in accordance with accounting guidance for impairment or disposal of long-lived assets. Registrant would recognize an impairment loss on its regulated assets only if the carrying value amount of a long-lived asset is not recoverable from customer rates authorized by the CPUC. Impairment loss is measured as the excess of the carrying value over the amounts recovered in customer rates. For the years ended December 31, 2023, 2022 and 2021, no impairment loss was incurred. Goodwill : At December 31, 2023 and 2022, AWR had approximately $1.1 million of goodwill. The $1.1 million goodwill arose from ASUS’s acquisition of a subcontractor’s business at some of its subsidiaries. In accordance with the accounting guidance for testing goodwill, AWR annually assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. For 2023 and 2022, AWR’s assessment of qualitative factors did not indicate that an impairment had occurred for goodwill at ASUS. Cash and Cash Equivalents : Cash and cash equivalents include short-term cash investments with an original maturity of three months or less. At times, cash and cash equivalent balances may be in excess of federally insured limits. Cash and cash equivalents are held with financial institutions with high credit standings. Accounts Receivable : Accounts receivable is reported on the balance sheet net of any allowance for doubtful accounts. The allowance for doubtful accounts is Registrant’s best estimate of the amount of probable credit losses in Registrant’s existing accounts receivable from its water and electric customers, and is determined based on expected losses rather than incurred losses. Registrant reviews the allowance for doubtful accounts quarterly. Account balances are written off against the allowance when it is probable the receivable will not be recovered. When utility customers request extended payment terms, credit is extended based on regulatory guidelines, and collateral is not required. Receivables from the U.S. government include amounts due under contracts with the U.S. government to operate and maintain, and/or provide construction services for the water and/or wastewater systems at military bases. Other accounts receivable consist primarily of amounts due from third parties (non-utility customers) for various reasons, including amounts due from contractors, amounts due under settlement agreements and amounts due from other third-party prime government contractors pursuant to agreements for construction of water and/or wastewater facilities for such third-party prime contractors. The allowance for these other accounts receivable is based on Registrant’s evaluation of the receivable portfolio under current conditions and a review of specific problems and such other factors that, in Registrant’s judgment, should be considered in estimating losses. Allowances for doubtful accounts are disclosed in Note 18. Materials and Supplies : Materials and supplies are stated at the lower of cost or net realizable value. Cost is computed using weighted average cost. Major classes of materials include pipe, meters, hydrants and valves. Interest : Interest incurred during the construction of capital assets has generally not been capitalized for financial reporting purposes as such policy is not followed in the ratemaking process. Interest expense is generally recovered through the regulatory process. At times, the CPUC has authorized certain capital projects to be filed for revenue recovery with advice letters when those projects are completed. During the time that such projects are under development and construction, GSWC or BVES may record an allowance for funds used during construction (“AFUDC”) as a component of construction work in progress to offset the cost of financing project construction. After construction is completed, GSWC and BVES is permitted to recover these costs through the inclusion in rate base. For the year ended December 31, 2023, 2022 and 2021, BVES recorded $14,000 , $106,000 and $216,000, respectively in AFUDC. Debt Issuance Costs and Redemption Premiums : Original debt issuance costs are deducted from the carrying value of the associated debt liability and amortized over the lives of the respective issuances of long-term debt. Premiums paid on the early redemption of debt are deferred as regulatory assets and amortized over the period that GSWC and BVES recovers such costs in rates, which is generally over the term of the new debt issued to finance early debt redemption. At December 31, 2023 and 2022, Registrant’s long-term debt have been issued by GSWC and BVES. Advances for Construction and Contributions in Aid of Construction : Advances for construction represent amounts advanced by developers for the cost to construct water system facilities in order to extend water service to their properties. Advances are refundable in equal annual installments, generally over 40 years. In certain instances, GSWC makes refunds on these advances over a specific period of time based on operating revenues related to the main or as new customers are connected to receive service from the main. Contributions in aid of construction are similar to advances but require no refunding. Generally, GSWC and BVES depreciate contributed property and amortize contributions in aid of construction at the composite rate of the related property. Utility plant funded by advances and contributions are excluded from rate base. Fair Value of Financial Instruments : For cash and cash equivalents, accounts receivable, accounts payable and short-term debt, the carrying amount is assumed to approximate fair value due to the short-term nature of the amounts. The table below estimates the fair value of long-term debt held by AWR and GSWC, respectively. Rates available to AWR and GSWC at December 31, 2023 and 2022 for debt with similar terms and remaining maturities were used to estimate fair value for long-term debt. Changes in the assumptions will produce differing results. 2023 2022 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—AWR (1)(2) $ 579,047 $ 556,214 $ 450,373 $ 424,151 2023 2022 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—GSWC (1) $ 544,047 $ 522,883 $ 415,373 $ 391,198 (1) Excludes debt issuance costs and redemption premiums. (2) Includes debt held by BVES of $35.0 million as of December 31, 2023 and 2022, respectively. The accounting guidance for fair value measurements applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Under the accounting guidance, Registrant has made fair value measurements that are classified and disclosed in one of the following three categories: Level 1 : Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 : Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or Level 3 : Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Registrant makes fair value measurements on its publicly issued notes, private placement notes and other long-term debt using current U.S. corporate debt yields for similar debt instruments. Under the fair value guidance, these are classified as Level 2, which consists of quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. The following table sets forth by level, within the fair value hierarchy, Registrant’s long-term debt measured at fair value as of December 31, 2023: (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—AWR — $ 556,214 — $ 556,214 (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—GSWC — $ 522,883 — $ 522,883 Stock-Based Awards : AWR has issued stock-based awards to its employees under stock incentive plans. AWR has also issued stock-based awards to its Board of Directors under non-employee directors stock plans. Registrant applies the provisions in the accounting guidance for share-based payments in accounting for all of its stock-based awards. See Note 13 for further discussion. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Most of Registrant’s revenues are accounted for under the revenue recognition accounting standard, "Revenue from Contracts with Customers - (Topic 606)." GSWC and BVES provide utility services to customers as specified by the CPUC. The transaction prices for water and electric revenues are based on tariff rates authorized by the CPUC, which include both quantity-based and flat-rate charges. Tariff revenues represent the adopted revenue requirement authorized by the CPUC intended to provide GSWC and BVES with an opportunity to recover its costs and earn a reasonable return on its net capital investment. The annual revenue requirements are comprised of supply costs, operation and maintenance costs, administrative and general costs, depreciation and taxes in amounts authorized by the CPUC, and a return on rate base consistent with the capital structure authorized by the CPUC. Water and electric revenues are recognized over time as customers simultaneously receive and use the utility services provided. Water and electric revenues include amounts billed to customers on a cyclical basis, nearly all of which are based on meter readings for services provided. Customer bills also include surcharges for cost-recovery activities, which represent CPUC-authorized balancing and memorandum accounts that allow for the recovery of previously incurred operating costs. Revenues from these surcharges have no impact to earnings as they are offset by corresponding increases in operating expenses to reflect the recovery of the associated costs. Customer payment terms are approximately 20 business days from the billing date. Unbilled revenues are amounts estimated to be billed for usage since the last meter-reading date to the end of the accounting period. The most recent customer billed usage forms the basis for estimating unbilled revenue. GSWC and BVES bill certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which are paid to various municipalities and counties (based on their ordinances) in order to use public rights of way for utility purposes. GSWC and BVES bill these franchise fees to its customers based on a CPUC-authorized rate for each ratemaking area as applicable. These franchise fees, which are required to be paid regardless of GSWC’s or BVES’s ability to collect them from its customers, are accounted for on a gross basis. Franchise fees billed to customers and recorded as operating revenue were approximately $4.9 million , $4.0 million and $4.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. When GSWC or BVES acts as an agent, where the tax is not required to be remitted if it is not collected from customers, the tax is accounted for on a net basis. As currently authorized by the CPUC, GSWC and BVES record in revenues the difference between the adopted level of volumetric revenues as authorized by the CPUC for metered accounts (volumetric revenues) and the actual volumetric revenues recovered in customer rates. For GSWC, the difference is tracked under the Water Revenue Adjustment Mechanism (“WRAM”) regulatory accounts, and for BVES the difference is tracked in the Base Revenue Requirement Adjustment Mechanism (“BRRAM”) regulatory account. If this difference results in an under-collection of revenues, additional revenue is recorded only to the extent that the difference is expected to be collected within 24 months following the end of the year in which they are recorded in accordance with Accounting Standards Codification (“ASC”) Topic 980, Regulated Operations . ASUS’s initial 50-year, firm-fixed-price contract and additional firm-fixed-price contracts , together referred to as (“50-year contract”) with the U.S. government are considered service concession arrangements under ASC 853 Service Concession Arrangements . ASUS's military base contracts consist primarily of 50-year contracts and one 15 -year contract with the U.S. government. The services under these contracts are accounted for under Topic 606 Revenue from Contracts with Customers and the water and/or wastewater systems are not recorded as Property, Plant and Equi pment on Registrant’s balance sheet. For ASUS, performance obligations consist of (i) performing ongoing operation and maintenance of the water and/or wastewater systems and treatment plants for each military base served, and (ii) performing construction activities (including renewal and replacement capital work) on each military base served. The transaction price for each performance obligation is either delineated in, or initially derived from, the applicable 50-year contract and/or any subsequent contract modifications. Depending on the state in which operations are conducted, ASUS’s subsidiaries are also subject to certain state non-income tax assessments, which are accounted for on a gross basis and have been immaterial to date. The ongoing performance of operation and maintenance of the water and/or wastewater systems and treatment plants is viewed as a single performance obligation for each of the contract with the U.S. government. Registrant recognizes revenue for operations and maintenance fees monthly using the “right to invoice” practical expedient under ASC Topic 606. ASUS has a right to the consideration from the U.S. government in an amount that corresponds directly to the value for services provided to the U.S. government based on its subsidiaries' performance completed to-date. The contractual operations and maintenance fees are firm-fixed, and the level of effort or resources expended in the performance of the operations-and-maintenance-fees performance obligation is largely consistent over the contract term. Therefore, Registrant has determined that the monthly amounts invoiced for operations and maintenance performance are a fair reflection of the value transferred to the U.S. government. Invoices to the U.S. government for operations and maintenance service, as well as construction activities, are due upon receipt. ASUS’s construction activities consist of various projects to be performed. Each of these capital upgrade projects’ transaction prices are delineated either in the 50-year contract or through a specific contract modification for each construction project, which includes the transaction price for that project, or through a task order under a task order agreement. For renewal and replacement projects, the initial transaction price is based on the individual scope of work in accordance with contractual unit prices within the 50-year contract. Each construction project is viewed as a separate, single performance obligation. Therefore, it is generally unnecessary to allocate a construction transaction price to more than one construction performance obligation. Revenues for construction activities are recognized over time, with progress toward completion measured based on the input method using costs incurred relative to the total estimated costs (cost-to-cost method). Due to the nature of these construction projects, Registrant has determined the cost-to-cost input measurement to be the best method to measure progress towards satisfying its construction contract performance obligations, as compared to using an output measurement such as units produced. Changes in job performance, job site conditions, change orders and/or estimated profitability may result in revisions to costs and income for ASUS, and are recognized in the period in which any such revisions are determined. Pre-contract costs for ASUS, which consist of design and engineering labor costs, are deferred if recovery is probable, and are expensed as incurred if recovery is not probable. Deferred pre-contract costs have been immaterial to date. Contracted services revenues recognized during the years ended December 31, 2023, 2022 and 2021 from performance obligations satisfied in previous periods were not material. Although GSWC and BVES have a diversified base of residential, commercial, industrial and other customers, revenues derived from residential and commercial customers account for nearly 90% of total water revenues, and 90% of total electric revenues. The vast majority of ASUS’s revenues are from the U.S. government. For the years ended December 31, 2023, 2022, and 2021, disaggregated revenues from contracts with customers by segment are as follows: (dollar in thousands) For The Year Ended December 31, 2023 For The Year Ended December 31, 2022 For The Year Ended December 31, 2021 Water: Tariff-based revenues $ 394,623 $ 324,838 $ 345,562 CPUC-approved surcharges (cost-recovery activities) 2,955 2,461 3,280 Other 2,753 2,351 2,227 Water revenues from contracts with customers 400,331 329,650 351,069 WRAM under/(over)-collection (alternative revenue program) 33,142 10,952 (3,957) Total water revenues (1) 433,473 340,602 347,112 Electric: Tariff-based revenues 40,130 39,750 37,124 CPUC-approved surcharges (cost-recovery activities) 567 144 310 Electric revenues from contracts with customers 40,697 39,894 37,434 BRRAM under/(over)-collection (alternative revenue program) 1,135 92 911 Total electric revenues 41,832 39,986 38,345 Contracted services: Water 75,785 68,626 71,210 Wastewater 44,609 42,314 42,186 Contracted services revenues from contracts with customers 120,394 110,940 113,396 Total AWR revenues $ 595,699 $ 491,528 $ 498,853 (1) Water revenues for the year ended December 31, 2023 includes approximately $30 million from the impact of retroactive new rates for the full year of 2022 as a result of the CPUC's approval of GSWC's general rate case (Note 3). Furthermore, the CPUC also issued a final decision in June 2023 on GSWC's cost of capital proceeding. As a result of the final cost of capital decision (Note 3), for the year ended December 31, 2023, water revenues include an increase of $6.4 million from the reversal of revenues subject to refund due to a change in estimates from what had been recorded during 2022. The opening and closing balances of the receivable from the U.S. government, contract assets and contract liabilities from contracts with customers, which related entirely to ASUS, are as follows: (dollar in thousands) December 31, 2023 December 31, 2022 Unbilled receivables $ 9,693 $ 10,125 Receivable from the U.S. government $ 91,489 $ 85,456 Contract assets $ 14,378 $ 14,982 Contract liabilities $ 1,352 $ 903 Unbilled receivables and receivable from the U.S. government represent receivables where the right to payment is conditional only by the passage of time. Contract Assets - Contract assets are assets of ASUS and its subsidiaries and consist of unbilled revenues recognized from work-in-progress construction projects, where the right to payment is conditional on something other than the passage of time. The classification of this asset as current or noncurrent is based on the timing of when ASUS expects to bill these amounts. Contract Liabilities - Contract liabilities are liabilities of ASUS and its subsidiaries and consist of billings in excess of revenue recognized. The classification of this liabili ty as current or noncurrent is based on the timing of when ASUS expects to recognize revenue. Revenues for the year ended December 31, 2023 included in contract liabilities at the beginning of the period were not material. As of December 31, 2023, AWR’s aggregate remaining performance obligations, which are entirely from the contracted services segment, were $4.0 billion. ASUS expects to recognize revenue on these remaining performance obligations over the remaining term of each of the contracts, with original contract terms that range from 15 to 50 years. Each of the contracts with the U.S. government is subject to termination, in whole or in part, prior to the end of its contract term for the convenience of the U.S. government. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters In accordance with accounting principles for rate-regulated enterprises, GSWC and BVES record regulatory assets, which represent probable future recovery of costs from customers through the ratemaking process, and regulatory liabilities, which represent probable future refunds that are to be credited to customers through the ratemaking process. At December 31, 2023, GSWC and BVES had approximately $68.4 million of regulatory liabilities, net of regulatory assets, not accruing carrying costs. Of this amount, (i) $74.0 million of regulatory liabilities are excess deferred income taxes arising from the lower federal income tax rate under the Tax Cuts and Jobs Act enacted in December 2017 that are being refunded to customers (Note 11), (ii) $4.3 million of net regulatory assets relates to flowed-through deferred income taxes including the gross-up portion on the deferred tax resulting from the excess deferred income tax regulatory liability (Note 11), (iii) $3.8 million of regulatory liabilities relates to the underfunded position in Registrant’s pension and other post-retirement obligations (excluding the two-way pension balancing accounts), and (iv) $2.4 million of net regulatory asset relates to a memorandum account authorized by the CPUC to track unrealized gains and losses on BVES’s purchase power contracts over the terms of the contracts. The remainder relates to other items that do not provide for or incur carrying costs. Regulatory assets represent costs incurred by GSWC and/or BVES for which they have received or expect to receive rate recovery in the future. In determining the probability of costs being recognized in other periods, GSWC and BVES consider regulatory rules and decisions, past practices, and other facts or circumstances that would indicate if recovery is probable. If the CPUC determines that a portion of either GSWC’s or BVES’s assets are not recoverable in customer rates, the applicable utility must determine if it has suffered an asset impairment that requires it to write down the asset’s value. Regulatory assets are offset against regulatory liabilities within each ratemaking area. Amounts expected to be collected or refunded in the next twelve months have been classified as current assets and current liabilities by ratemaking area. Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: December 31, (dollars in thousands) 2023 2022 GSWC 2022/2023 general rate case memorandum accounts (unbilled revenue) $ 52,795 $ — Water revenue adjustment mechanism, net of the modified cost balancing account 41,545 31,803 Asset retirement obligations (Note 1) 7,099 6,411 COVID-19 memorandum accounts 1,199 3,478 Flowed-through deferred income taxes, net (Note 11) 3,190 (1,134) Low income rate assistance balancing accounts 5,763 2,526 Pensions and other post-retirement obligations (Note 12) (4,867) 738 Other regulatory assets 9,462 10,289 Excess deferred income taxes (Note 11) (70,189) (71,870) Other regulatory liabilities (268) (8,815) Total GSWC $ 45,729 $ (26,574) BVES Derivative instrument memorandum account (Note 5) 2,360 (11,847) Wildfire mitigation and other fire prevention related costs memorandum accounts 17,716 13,007 Electric supply cost adjustment mechanism 2,583 3,627 Other regulatory assets 7,697 4,338 Other regulatory liabilities (6,578) (8,005) Total AWR $ 69,507 $ (25,454) Water General Rate Case and the 2022/2023 General Rate Case Memorandum Accounts: On June 29, 2023, the CPUC adopted a final decision in GSWC's general rate case application for all its water regions and its general office that determines new water rates for the years 2022–2024. Among other things, the final decision (i) adopted the full settlement agreement between GSWC and the Public Advocates Office at the CPUC (“Public Advocates”) that resolved all issues related to the 2022 annual revenue requirement in the general rate case application and made the 2022 rates retroactive to January 1, 2022, and (ii) allowed for additional increases in adopted revenues for 2023 and 2024 subject to an earnings test and inflationary index values at the time of filing for implementation of the new rates. As a result, the impact of retroactive rates for the full year of 2022 have been reflected in the results of operations for the year ended December 31, 2023. Upon receiving the final decision, GSWC filed for the implementation of new 2023 rate increases that went into effect on July 31, 2023. The new rates for 2023 were retroactive to January 1, 2023. Due to the delay in finalizing the water general rate case, water revenues billed to customers for the year ended December 31, 2022 and for the period from January 1, 2023 to July 30, 2023 were based on 2021 adopted rates. GSWC was authorized to create general rate case memorandum accounts to track the revenue differences between the 2021 adopted rates and the new 2022 and 2023 rates authorized by the CPUC. As of December 31, 2023, there is a net aggregate $52.8 million under-collection in the general rate case memorandum accounts that GSWC has recorded as regulatory assets for retroactive water revenues related to difference between the 2021 adopted rates billed to customers and the rates authorized in the final decision for the full year of 2022 and the 2023 second-year rate increases recorded from January 1 to July 30, 2023. In October 2023, surcharges were implemented by GSWC to recover the cumulative retroactive rate differences over 36 months. Cost of Capital Proceeding: On June 29, 2023, a final decision was adopted by the CPUC in the cost of capital proceeding that, among other things, (i) adopts GSWC’s requested capital structure of 57% equity and 43% debt; (ii) adopts a cost of debt of 5.1% for GSWC as compared to 6.6% previously authorized; (iii) adopts a return on equity of 8.85% for GSWC as compared to 8.9% previously authorized; (iv) allows for the continuation of the Water Cost of Capital Mechanism (“WCCM”) through December 31, 2024; and (v) adopts the new cost of capital for the three ’ s assessment of the final decision issued in June, all adjustments to rates are to be prospective. GSWC filed an advice letter that implemented the new cost of capital effective July 31, 2023. Following the receipt of the final decision adopted on June 29, 2023 in the cost of capital proceeding, management updated its analysis and reassessed the accounting estimates recorded to date related to GSWC’s lower cost of debt. Accordingly, GSWC recorded a change in its estimate that resulted in an increase to water revenues for the year ended December 31, 2023 in the amount of $6.4 million as a result of reversing its regulatory liability for revenues subject to refund that it had recorded during 2022. The WCCM adjusts the return on equity and rate of return on rate base between the three ’ s 8.85% adopted return on equity in the decision to 9.36% effective July 31, 2023. Additionally, for the period from October 1, 2022 through September 30, 2023, the Moody's Aa utility bond rate increased by 139.70 basis points from the benchmark, which triggered another WCCM adjustment. On October 12, 2023, GSWC filed an advice letter to establish the WCCM for 2024, which has been approved by the CPUC. As a result of this approval, GSWC’s 9.36% adopted return on equity increased to 10.06% effective January 1, 2024. Alternative-Revenue Programs: GSWC records the difference between what it bills its water customers and that which is authorized by the CPUC using the Water Revenue Adjustment Mechanism (“WRAM”) and the Modified Cost Balancing Account (“MCBA”) approved by the CPUC. The over- or under-collection of the WRAM is aggregated with the MCBA over- or under-collection for the corresponding ratemaking area and bears interest at the current 90-day commercial paper rate . As of December 31, 2023, GSWC had an aggregated regulatory asset of $41.5 million, which is comprised of a $43.9 million under-collection in the WRAM accounts and a $2.4 million over-collection in the MCBA accounts. During 2023, GSWC recorded additional net under-collections in the WRAM/MCBA accounts of approximately $30.1 million related to the 2023 year that resulted largely from lower-than-adopted water usage as authorized in the general rate case decision. GSWC recorded a net reduction of $9.8 million of under-collections during the first quarter of 2023 to reflect the cumulative full-year impact of 2022 based on authorized 2022 amounts approved in the general rate case decision for both the WRAM and MCBA accounts. On July 27, 2023, the CPUC approved the recovery of all pre-2023 WRAM/MCBA balances. Accordingly, GSWC has implemented surcharges and surcredits to recover/refund all of its WRAM/MCBA balances accumulated as of December 31, 2022. As required by the accounting guidance for alternative revenue programs, GSWC is required to collect its WRAM balances within 24 months following the end of the year in which an under-collection is recorded. As of December 31, 2023, there were no material WRAM under-collections that were estimated to be collected over more than 24 months. Pensions and Other Post-retirement Obligations : A net regulatory liability and asset have been recorded at December 31, 2023 and 2022, respectively, for costs that would otherwise be charged to “other comprehensive income” within shareholders’ equity for the funded status of Registrant’s pension and other post-retirement benefit plans because the cost of these plans has historically been recovered through rates. As discussed in Note 12, as of December 31, 2023, Registrant’s overfunded position for these plans that have been recorded as regulatory liabilities totaled $3.8 million. In addition, the CPUC has authorized GSWC and BVES to each use two-way balancing accounts to track differences between the forecasted annual pension expenses adopted in their respective customer rates and the actual annual expense to be recorded in accordance with the accounting guidance for pension costs. The two-way balancing accounts bear interest at the current 90-day commercial paper rate. As of December 31, 2023, GSWC has a $1.1 million over-collection related to the general office and water regions, and BVES has a $277,000 over-collection in its two-way balancing account. COVID-19 Emergency Memorandum Accounts : The CPUC has authorized GSWC and BVES to track incremental costs, including bad debt expense in excess of what is included in their respective revenue requirements, the purchase of personal protective equipment, and other incremental COVID-19 related costs incurred as a result of the pandemic in COVID-19 emergency-related memorandum accounts, which GSWC and BVES both intend to file with the CPUC for future recovery of these costs. In December 2023, GSWC filed an application with the SWRCB through the Extended Arrearage Program to obtain additional COVID relief funds to provide further assistance to its customers for their water debt accrued during the COVID-19 pandemic. GSWC has received confirmation from SWRCB that it is currently processing GSWC's application and expects to disburse approximately $3.5 million in additional COVID relief funds through this program. All funds to be received will be applied to customer eligible delinquent balances. As of December 31, 2023, GSWC has recorded a reduction to its bad debt-related amounts included in its COVID-19 memorandum account, with a corresponding reduction to its estimated customer bad debt reserves. As of December 31, 2023, GSWC and BVES had approximately $1.2 million and $500,000, respectively, in regulatory asset accounts related to the purchase of personal protective equipment, bad debt expense in excess of their revenue requirements, additional incurred printing costs, and other incremental COVID-19-related costs. Emergency-related memorandum accounts are well-established cost recovery mechanisms authorized as a result of a state/federal declared emergency, and are recognized as regulatory assets for future recovery. As a result, the amounts recorded in the COVID-19 emergency-related memorandum accounts have not impacted GSWC’s or BVES’s earnings. The CPUC requires that amounts tracked in GSWC’s and BVES’s COVID-19 memorandum accounts for unpaid customer bills be first offset by any (i) federal and state relief for water or electric utility bill debt, and (ii) customer payments through payment plan arrangements, prior to receiving recovery from customers at large. As of December 31, 2023, GSWC fully offset its bad debt-related CEMA balance as a result of additional COVID relief funds approved. In addition, BVES has filed to recover the remaining balance in its COVID-19 memorandum account through its general rate case application filed in August 2022. Low Income Balancing Accounts: This regulatory asset reflects the net balance of the incremental administration costs, not already reflected in authorized rates, the customers’ discounts issued and the revenues generated by the low-income surcharges for the Customer Assistance Program in GSWC’s water regions and the California Alternate Rates for Energy program for BVES. These low-income programs, which are mandated by the CPUC, currently provide a flat discount based on 20% of a typical customer bill for qualified low-income water customers and a 20% discount for qualified low-income electric customers. The low-income balancing accounts accrue interest at the prevailing 90-day commercial paper rate. As of December 31, 2023, there is an aggregate $5.7 million under-collection in the low-income balancing accounts. Surcharges have been implemented to recover the costs included in these balancing accounts. Other BVES Regulatory Assets: Wildfire Mitigation and Other Fire Prevention Related Costs Memorandum Accounts The CPUC adopted regulations intended to enhance the fire safety of overhead electric power lines. Those regulations included increased minimum clearances around electric power lines. BVES was authorized to track incremental costs incurred to implement the regulations in a fire hazard prevention memorandum account for the purpose of obtaining cost recovery in a future general rate case. In August 2019, the CPUC issued a final decision on the electric general rate case, which set new rates through the year 2022. Among other things, the decision authorized BVES to record incremental costs related to vegetation management, such as costs for increased minimum clearances around electric power lines, in a CPUC-approved memorandum account for potential future recovery. As of December 31, 2023, BVES has approximately $11.8 million in incremental vegetation management costs recorded as a regulatory asset. BVES has requested recovery of these costs in its general rate case application filed with the CPUC in August 2022 for future recovery. The incremental costs related to vegetation management included in the memorandum account will be subject to review during the general rate case proceeding. California legislation enacted in September 2018 requires all investor-owned electric utilities to have a wildfire mitigation plan (“WMP”) approved by the Office of Energy Infrastructure Safety (“OEIS”) and ratified by the CPUC. The WMP must include a utility’s plans on constructing, maintaining, and operating its electrical lines and equipment to minimize the risk of catastrophic wildfire. In May 2023, BVES submitted its WMP covering the period from 2023 to 2025 t o OEIS for approval prior to going to the CPUC for ratification. In the fourth quarter of 2023, OEIS issued a final decision of approval and the CPUC ratified BVES’s 2023-2025 WMP. As of December 31, 2023, BVES has approximately $5.9 million related to expenses accumulated in its WMP memorandum accounts that have been recognized as regulatory assets for future recovery. All capital expenditures and other costs incurred through December 31, 2023 as a result of BVES ’ s WMPs are not currently in rates and have been filed for future recovery in BVES ’ s general rate case application. These costs will be subject to review during the general rate case proceeding. 2023 Winter Storm Other Regulatory Asset BVES activated a CEMA to track the incremental costs incurred in response to a severe winter storm that occurred during certain weeks of the first and second quarters of 2023. The governor of California declared a state of emergency for the storm. Incremental costs of approximately $1.3 million were incurred and included in the CEMA account, which has been recorded as a regulatory asset as of December 31, 2023 for future recovery. The incremental costs included in the CEMA account will be subject to review and approval by the CPUC. CEMA accounts are well-established cost recovery mechanisms authorized as a result of a state/federal declared emergency, and are therefore recognized as regulatory assets for future recovery. As a result, the amounts recorded in this CEMA account has not impacted BVES’s earnings. Electric Supply Cost Adjustment Mechanism Under the current electric supply cost adjustment mechanism approved by the CPUC, BVES tracks the difference between its adopted supply costs included in rates and actual supply costs, which consist largely of purchased power for resale under the existing long-term fixed price purchase power agreements. The under‑collections included in the electric supply cost balancing account are being recovered through surcharges. Annually, BVES files an advice letter with the CPUC to revise the surcharge that incorporates the under-collected balances through the previous calendar year's end if the balance meets the minimum balance filing threshold. During 2023, BVES recorded an additional under-collection of $1.9 million in the electric supply cost balancing account. In January 2024, BVES filed an advice letter to implement a revised surcharge to recover the cumulative balances as of December 31, 2023. The new surcharge was effective February 1, 2024. Other Regulatory Assets: Other regulatory assets represent costs incurred by GSWC or BVES for which they have received or expect to receive rate recovery in the future. Registrant believes that these regulatory assets are supported by regulatory rules and decisions, past practices, and other facts or circumstances that indicate recovery is probable. If the CPUC determines that a portion of either GSWC’s or BVES’s assets are not recoverable in customer rates, the applicable entity must determine if it has suffered an asset impairment that requires it to write down the regulatory asset to the amount that is probable of recover |
Utility Plant and Intangible As
Utility Plant and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Utility Plant and Intangible Assets | |
Utility Plant and Intangible Assets | Utility Plant and Intangible Assets The following table shows Registrant’s utility plant (regulated utility plant and non-regulated utility property) by major asset class: AWR GSWC (dollars in thousands) 2023 2022 2023 2022 Water Land $ 18,290 $ 18,427 $ 18,290 $ 18,427 Intangible assets 30,917 30,511 30,917 30,511 Source of water supply 111,112 109,918 111,112 109,918 Pumping 234,264 227,668 234,264 227,668 Water treatment 98,533 90,411 98,533 90,411 Transmission and distribution 1,489,974 1,431,437 1,489,974 1,431,437 Other 140,060 136,162 99,837 98,096 2,123,150 2,044,534 2,082,927 2,006,468 Electric Transmission and distribution 126,143 105,499 — — Generation 12,583 12,583 — — Other (1) 17,745 15,733 — — 156,471 133,815 — — Less — accumulated depreciation (624,472) (606,231) (543,135) (530,925) Construction work in progress 237,131 181,648 195,742 141,175 Net utility plant $ 1,892,280 $ 1,753,766 $ 1,735,534 $ 1,616,718 (1) Includes intangible assets of $1.2 million for the years ended December 31, 2023 and 2022 for studies performed. As of December 31, 2023 and 2022, intangible assets consist of the following: Weighted Average Amortization AWR December 31, GSWC December 31, (dollars in thousands) Period 2023 2022 2023 2022 Intangible assets : Conservation programs 3 years $ 9,486 $ 9,486 $ 9,486 $ 9,486 Water and service rights (2) 30 years 8,695 8,695 8,124 8,124 Water planning studies 14 years 14,164 13,757 12,926 12,519 Total intangible assets 32,345 31,938 30,536 30,129 Less — accumulated amortization (27,275) (26,811) (26,294) (25,374) Intangible assets, net of amortization $ 5,070 $ 5,127 $ 4,242 $ 4,755 Intangible assets not subject to amortization (3) $ 383 $ 383 $ 382 $ 382 (2) Includes intangible assets of $571,000 for contracted services included in “Other Property and Investments” on the consolidated balance sheets as of December 31, 2023 and 2022. (3) The intangible assets not subject to amortization primarily consist of organization and consent fees. For the years ended December 31, 2023, 2022 and 2021, amortization of intangible assets was $1.1 million, $641,000 and $700,000, respectively, for both AWR and GSWC. Estimated future consolidated amortization expense related to intangible assets are as follows (in thousands): Amortization 2024 $ 911 2025 911 2026 911 2027 911 2028 911 Total $ 4,555 Asset Retirement Obligations : The following is a reconciliation of the beginning and ending aggregate carrying amount of asset retirement obligations, which are included in “Other Credits” on the balance sheets as of December 31, 2023 and 2022: (dollars in thousands) GSWC Obligation at December 31, 2021 $ 9,717 Accretion 386 Obligation at December 31, 2022 $ 10,103 Accretion 406 Obligation at December 31, 2023 $ 10,509 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments | Derivative Instruments BVES has entered into long-term fixed price contracts to purchase power over three The CPUC authorized the use of a regulatory asset and liability memorandum account to offset the mark-to-market entries required by the accounting guidance. Accordingly, all unrealized gains and losses generated from derivative instruments in purchase power contracts are deferred on a monthly basis into a non-interest-bearing regulatory memorandum account that tracks the changes in fair value of the derivative throughout the terms of the contracts. As a result, these unrealized gains and losses do not impact Registrant’s earnings. As of December 31, 2023, there was a $2.4 million derivative liability at fair value for the derivatives in the purchase power contracts, with a corresponding regulatory asset recorded in the derivative instrument memorandum account as a result of overall fixed prices under BVES’s purchase power contracts being higher than future energy prices. The notional volume of derivatives remaining under these long-term contracts as of December 31, 2023 was approximately 685,256 megawatt hours. Registrant’s valuation model utilizes various inputs that include quoted market prices for energy over the duration of the contracts. The market prices used to determine the fair value for these derivative instruments were estimated based on independent sources such as broker quotes and publications that are not observable in or corroborated by the market. When such inputs have a significant impact on the measurement of fair value, the instrument is categorized as Level 3 as described in Note 1. Accordingly, the valuation of the derivatives on Registrant’s purchase power contracts have been classified as Level 3 for all periods presented. The change in fair value was due to the change in market energy prices for the years 2023 and 2022. The following table presents changes in the fair value of the Level 3 derivatives for the years 2023 and 2022: (dollars in thousands) 2023 2022 Fair value at beginning of the period $ 11,847 $ 4,441 Unrealized (losses) gains on purchase power contracts (14,207) 7,406 Fair value at end of the period $ (2,360) $ 11,847 |
Military Privatization
Military Privatization | 12 Months Ended |
Dec. 31, 2023 | |
Military Privatization | |
Military Privatization | Military Base Operations ASUS’s subsidiaries have entered into service contracts with the U.S. government to operate and maintain, as well as perform construction activities to renew and replace, the water and/or wastewater systems at a military base or bases. The amounts charged for these services are primarily based upon the terms of the initial 50-year contract between ASUS’s subsidiaries and the U.S. government. Under the terms of each of these agreements, ASUS’s subsidiaries agree to operate and maintain the water and/or wastewater systems for: (i) a monthly net fixed-price for operation and maintenance, and (ii) an amount to cover renewal and replacement capital work. In addition, these contracts may also include firm-fixed-priced initial capital upgrade projects to upgrade the existing infrastructure. Contract modifications are also issued for other necessary capital upgrades to the existing infrastructure approved by the U.S. government. ASUS through its subsidiaries may also from time to time perform construction services on military bases as a subcontractor or pursuant to task orders or fixed-price task order agreements. The contract serving Joint Base Cape Cod is currently the only task order agreement with the U.S. government. This task order agreement has a term of 15 years. Under the terms of each of these contracts, prices are subject to an economic price adjustment (“EPA”) provision, on an annual basis. Prices may also be equitably adjusted for changes in law and other circumstances. ASUS's subsidiaries are permitted to file, and has filed, requests for equitable adjustment. Each of the contracts may be subject to termination, in whole or in part, prior to the end of the 50-year term for convenience of the U.S. government or as a result of default or nonperformance by an ASUS subsidiary. ASUS has experienced delays in receiving EPAs as provided for under its 50-year contracts. Because of the delays, EPAs, when finally approved, are retroactive. During 2023, with the exception of the newly awarded contracts, the U.S. government approved EPAs at all o f the bases served. In some cases, these EPAs included retroactive operation and maintenance management fees for prior periods. For the years ended December 31, 2023, 2022 and 2021, retroactive operation and maintenance management fees related to prior periods were immaterial. |
Earnings Per Share _ Capital St
Earnings Per Share / Capital Stock | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share / Capital Stock | Earnings Per Share and Capital Stock In accordance with the accounting guidance for participating securities and earnings per share (“EPS”), Registrant uses the “two-class” method of computing EPS. The “two-class” method is an earnings allocation formula that determines EPS for each class of common stock and participating security. AWR has participating securities related to restricted stock units that earn dividend equivalents on an equal basis with AWR’s Common Shares that have been issued under AWR’s stock incentive plans for employees and the non-employee directors stock plans. In applying the “two-class” method, undistributed earnings are allocated to both Common Shares and participating securities. The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used to calculate basic EPS: Basic: For The Years Ended December 31, (in thousands, except per share amounts) 2023 2022 2021 Net income $ 124,921 $ 78,396 $ 94,347 Less: impact from participating securities 372 197 244 Total income available to common shareholders $ 124,549 $ 78,199 $ 94,103 Weighted average Common Shares outstanding, basic 36,976 36,955 36,921 Basic earnings per Common Share $ 3.37 $ 2.12 $ 2.55 Diluted EPS is based upon the weighted average number of Common Shares, including both outstanding shares and shares potentially issuable in connection with restricted stock units granted under AWR’s stock incentive plans for employees and directors, and net income. The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used to calculate diluted EPS: Diluted: For The Years Ended December 31, (in thousands, except per share amounts) 2023 2022 2021 Common shareholders earnings, basic $ 124,549 $ 78,199 $ 94,103 Undistributed earnings for dilutive stock options and restricted stock units 189 55 110 Total common shareholders earnings, diluted $ 124,738 $ 78,254 $ 94,213 Weighted average Common Shares outstanding, basic 36,976 36,955 36,921 Stock-based compensation (1) 101 84 89 Weighted average Common Shares outstanding, diluted 37,077 37,039 37,010 Diluted earnings per Common Share $ 3.36 $ 2.11 $ 2.55 (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 115,684, 96,988 and 100,020 restricted stock units, including performance awards to officers of AWR, at December 31, 2023, 2022 and 2021, respectively, were deemed to be outstanding in accordance with accounting guidance on earnings per share. During the years ended December 31, 2023, 2022 and 2021, AWR issued Common Shares totaling 18,371, 25,956 and 47,182, respectively, under AWR’s employee stock incentive plans and the non-employee directors’ plans. During 2023, 2022 and 2021, there were no cash proceeds received by AWR as a result of the exercise of stock options . AWR has not issued any Common Shares during 2023, 2022 and 2021 under AWR’s Common Share Purchase and Dividend Reinvestment Plan (“DRP”) and the 401(k) Plan. Shares reserved for the 401(k) Plan are in relation to AWR’s matching contributions and investment by participants. As of December 31, 2023, there were 1,055,948 and 387,300 C ommon Shares authorized for issuance directly by AWR but unissued under the DRP and the 401(k) Plan, respectively. During 2023 , GSWC issued one common shares to AWR for $10.0 million. Proceeds from the stock issuances were used to pay down a portion of intercompany borrowings owed to AWR as described in Note 1. No shares were issued by GSWC during 2022 and 2021 . During the years ended December 31, 2023, 2022 and 2021, AWR and GSWC made payments to taxing authorities on employees’ behalf for shares withheld related to net share settlements. These payments are included in the stock-based compensation caption of the statements of equity. GSWC’s outstanding common shares are owned entirely by its parent, AWR. To the extent GSWC does not reimburse AWR for stock-based compensation awarded under various stock compensation plans, such amounts increase the value of GSWC’s common shareholder’s equity. |
Dividend Limitations
Dividend Limitations | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Dividend Limitations | Dividend Limitations GSWC is prohibited from paying dividends if, after giving effect to the dividend, its total indebtedness to capitalization ratio (as defined) would be more than 0.6667-to-1. Dividends in the amount of $55.4 million, $27.0 million and $38.3 million were paid to AWR by GSWC during the years 2023, 2022 and 2021, respectively. The ability of AWR, GSWC, BVES and ASUS to pay dividends is also restricted by California law. Under California law, AWR, GSWC, BVES and ASUS are each permitted to distribute dividends to its shareholders so long as the Board of Directors determines, in good faith, that either: (i) the value of the corporation’s assets equals or exceeds the sum of its total liabilities immediately after the dividend, or (ii) its retained earnings equals or exceeds the amount of the distribution. Under the least restrictive of the California tests, approximately $776.1 million wa s available to pay dividends to AWR’s shareholders at December 31, 2023. Approximately $703.8 million |
Bank Debt
Bank Debt | 12 Months Ended |
Dec. 31, 2023 | |
Bank Debt | |
Bank Debt | Bank Debts Registrant’s bank debts consist of outstanding borrowings made under three separate credit facilities at AWR (parent), GSWC and BVES. AWR (parent) and GSWC Credit Facilities : On June 28, 2023, AWR and GSWC, each entered into new credit agreements with a term of five years provided by a syndicate of banks and financial institutions. Both credit agreements will mature on June 28, 2028. In connection with the new credit agreements, AWR and GSWC incurred, legal and other fees totaling $632,000 and $802,000, respectively. The syndicated credit facilities replaced AWR’s previous credit agreement with a sole bank where AWR had a borrowing capacity of $280.0 million that supported GSWC and ASUS operations. Funds from the new facilities were used to pay-off in full all outstanding borrowings under AWR ’ s prior credit facility and GSWC ’ s outstanding intercompany borrowings from AWR. AWR’s credit agreement provided for a $150.0 million unsecured revolving credit facility to support AWR (parent) and ASUS. Under AWR’s credit agreement, the borrowing capacity may be expanded up to an additional amount of $75 million, subject to the lenders’ approval. On November 6, 2023, AWR’s credit facility was amended to increase the borrowing capacity from $150.0 million to $165.0 million to provide additional support to ASUS and AWR (parent). In connection with the increase in borrowing capacity, the amendment also provides for the addition of a new bank to the existing syndicate group participating in AWR’s credit facility. Furthermore, the aggregate amount that may be outstanding under letters of credit for AWR is $10.0 million. Loans may be obtained under the credit facilities at the option of AWR and bear interest at rates based on either a base rate plus an applicable margin or an adjusted term secured overnight financing rate (“ SOFR ”) determined by the SOFR administrator, currently the Federal Reserve Bank of New York, plus an applicable margin. The applicable margin depends upon AWR’s credit ratings. As of December 31, 2023 , AWR’s outstanding borrowings under its credit facility of $141.5 million have been classified as non-current liabilities on AWR’s Consolidated Balance Sheet. AWR’s credit agreement contains affirmative and negative covenants and events of default customary for credit facilities of this type, including, among other things, affirmative covenants relating to compliance with law and material contracts, and negative covenants relating to additional indebtedness, liens, investments, restricted payments and asset sales by AWR and its subsidiaries, other than BVES. AWR is not permitted to have a consolidated total capitalization ratio (as defined in the credit agreement), excluding BVES, greater than 0.65 to 1.00 at the end of any quarter. Default under any indebtedness of any subsidiary of AWR, other than BVES, will result in a default under AWR’s credit agreement. As of December 31, 2023, AWR was in compliance with these requirements. As of December 31, 2023, AWR had a capitalization ratio of 0.54 to 1.00. GSWC’s credit agreement provides for a $200.0 million unsecured revolving credit facility to support its operations and capital expenditures. Under GSWC’s credit agreement, the borrowing capacity may be expanded up to an additional amount of $75.0 million, also as subject to the lenders’ approval. The aggregate amount that may be outstanding under letters of credit is $20.0 million. Loans may be obtained under this credit facility at the option of GSWC and bear interest at rates based on either a base rate plus an applicable margin or an adjusted term SOFR determined by the SOFR administrator plus an applicable margin. The applicable margin depends upon GSWC’s credit rating. GSWC ’ s credit facility is considered a short-term debt arrangement by the CPUC. GSWC has been authorized by the CPUC to borrow under the credit facility for a term of up to 24 months. Borrowings under this credit facility are, therefore, required to be fully paid off within a 24 -month period. GSWC’s next pay-off period ends in June 2025. Accordingly, as of December 31, 2023, GSWC ’ s outstanding borrowings under its credit facility of $150.0 million has been classified as non-current liabilities on GSWC’s Balance Sheet. Similar to AWR ’ s credit agreement, GSWC ’ s credit agreement also contains affirmative and negative covenants and events of default customary for credit facilities of its type. GSWC is also not permitted to have a total capitalization ratio greater than 0.65 to 1.00 at the end of any quarter. Default under any indebtedness of any subsidiary of AWR will not result in a default under GSWC’s credit agreement. As of December 31, 2023, GSWC was in compliance with these requirements, with total funded debt ratio of 0.50 to 1.00. BVES Credit Facility: BVES has a separate revolving credit facility without a parent guaranty that supports its electric operations and capital expenditures. On June 16, 2023, BVES’s credit agreement was amended to increase the borrowing capacity from $35.0 million to $50.0 million. In addition, the amendment to the credit agreement also (i) extended the credit facility to July 1, 2026, (ii) converted the interest rate on new borrowings to the benchmark rate of SOFR, plus a margin, and (iii) provides an option to increase the facility by an additional $25.0 million , subject to lender approval. On February 15, 2024, BVES, through its fourth amendment, increased the borrowing capacity from $50.0 million to $65.0 million. BVES’s revolving credit facility is considered a short-term debt arrangement by the CPUC. BVES has been authorized by the CPUC to borrow under this credit facility for a term of up to 24 months. Borrowings under this credit facility are, therefore, required to be fully paid off within a 24 -month period. BVES’s next pay-off period for its credit facility ends in August 2024. Accordingly, the $42.0 million outstanding under BVES ’ s credit facility has been classified as a current liability in AWR ’ s Consolidated Balance Sheet as of December 31, 2023 . Pursuant to BVES ’ s amended credit facility agreement, effective December 20, 2023 and throughout 2024, BVES must maintain a minimum interest coverage ratio of 3.0 times interest expense, and 4.5 times interest expense thereafter. BVES is also required to maintain a maximum consolidated total debt to consolidated total capitalization ratio of 0.65 to 1.00. As of December 31, 2023, BVES was in compliance with these requirements, with an actual interest coverage ratio of 4.51 times interest expense and a total funded debt ratio of 0.52 to 1.00 as of December 31, 2023. In addition, BVES is required to have a current safety certification issued by the CPUC, which it currently has. Registrant’s borrowing activities (excluding letters of credit) for the years ended December 31, 2023 and 2022 were as follows: December 31, (in thousands, except percent) 2023 2022 Balance Outstanding at December 31, $ 333,500 $ 277,500 Interest Rate at December 31, 6.33% ~ 6.96% 5.07% ~ 5.89% Average Amount Outstanding $ 243,355 $ 226,556 Weighted Average Annual Interest Rate 6.11 % 2.55 % Maximum Amount Outstanding $ 333,500 $ 277,500 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Registrant’s long-term debt consists of notes and debentures of GSWC and BVES. Registrant summarizes its long-term debt in the Statements of Capitalization. GSWC and BVES do not currently have any secured debt. On January 13, 2023, GSWC issued $130.0 million unsecured private-placement notes consisting of: $100.0 million aggregate principal amount of Series A Senior Notes at a coupon rate of 5.12% due January 31, 2033 and $30.0 million aggregate principal amount of Series B Senior Notes at a coupon rate of 5.22% due January 31, 2038. GSWC used the proceeds to pay down intercompany borrowings with AWR and to fund operations and capital expenditures for GSWC. Interest is payable semiannually on January 31 and July 31 of each year. The Series A and Series B notes are unsecured and rank equally with GSWC’s unsecured and unsubordinated debt. GSWC may, at its option, redeem all or portions of the notes at any time upon written notice, subject to payment of a make-whole premium based on 50 basis points above the applicable treasury yield. The make-whole premiums and covenant requirements under these new notes are similar to the terms of the other private placement notes issued by GSWC. Pursuant to the terms of each of these notes, GSWC must maintain a total indebtedness to capitalization ratio (as defined) of less than 0.6667-to-1 and a total indebtedness to earnings before income taxes, depreciation and amortization (“EBITDA”) of less than 8-to-1. As of December 31, 2023, GSWC had a total indebtedness to capitalization ratio of 0.4956 -to-1 and a total indebtedness to EBITDA of 3.4 -to-1. On April 28, 2022, BVES completed the issuance of $35.0 million in unsecured private-placement notes consisting of $17.5 million at a coupon rate of 4.548% due April 28, 2032 and $17.5 million at a coupon rate of 4.949% due April 28, 2037. BVES used the proceeds from the notes to pay down all amounts under its revolving credit facility outstanding at the time of issuing the notes. Interest on these notes is payable semiannually, and the covenant re quirements under these notes are similar to the terms of BVES’s revolving credit facility (Note 9). Registrant’s annual maturities of all long-term debt at December 31, 2023 are as follows (in thousands): 2024 $ 353 2025 370 2026 8,116 2027 403 2028 55,421 Thereafter 514,384 Total $ 579,047 |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income Registrant records deferred income taxes for temporary differences pursuant to the accounting guidance that addresses items recognized for income tax purposes in different periods than when they are reported in the financial statements. These items include differences in net asset basis (primarily related to differences in depreciation lives and methods, and differences in capitalization methods) and the treatment of certain regulatory balancing accounts, and construction contributions and advances. The accounting guidance for income taxes requires that rate-regulated enterprises record deferred income taxes and offsetting regulatory liabilities and assets for temporary differences where the rate regulator has prescribed flow-through treatment for rate-making purposes (Note 3). Deferred investment tax credits (“ITC”) are amortized ratably to deferred tax expense over the remaining lives of the property that gave rise to the credits. GSWC is included in both AWR’s consolidated federal income tax and its combined California state franchise tax returns. The impact of California’s unitary apportionment on the amount of AWR’s California income tax liability is a function of both the profitability of AWR’s non-California activities and the proportion of AWR’s California sales to its total sales. GSWC’s income tax expense is computed as if GSWC were autonomous and separately files its income tax returns, which is consistent with the method adopted by the CPUC in setting GSWC’s customer rates. On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into federal law. IRA, among other things, imposes a nondeductible 1% excise tax after December 31, 2022 on the fair market value of certain stock that is “repurchased” by a publicly traded U.S. corporation or acquired by certain of its subsidiaries. The taxable amount is reduced by the fair market value of certain issuances of stock throughout the year. Registrant did not have a stock repurchase program in effect for 2023 and does not have current plans to institute such a program; consequently, this excise tax was not incurred in 2023 and is not expected to have a material impact on its consolidated financial position in the future. If average annual adjusted financial statement income exceeds $1 billion over a 3-taxable-year period, IRA also imposes a 15% corporate alternative minimum tax on adjusted financial statement income for taxable years beginning after December 31, 2022. Registrant does not expect to incur this tax in the foreseeable future. The significant components of the deferred tax assets and liabilities as reflected in the balance sheets at December 31, 2023 and 2022 are: AWR GSWC December 31, December 31, (dollars in thousands) 2023 2022 2023 2022 Deferred tax assets: Regulatory-liability-related (1) $ 32,042 $ 31,330 $ 30,407 $ 29,623 Contributions and advances 6,660 6,544 6,981 6,896 Other 5,924 7,424 6,041 7,874 Total deferred tax assets $ 44,626 $ 45,298 $ 43,429 $ 44,393 Deferred tax liabilities: Fixed assets $ (161,820) $ (155,955) $ (155,131) $ (150,133) Regulatory-asset-related: depreciation and other (36,337) (30,226) (33,242) (28,489) Balancing and memorandum accounts (non-flowed-through) (8,046) (8,794) (2,514) (4,559) Total deferred tax liabilities (206,203) (194,975) (190,887) (183,181) Accumulated deferred income taxes, net $ (161,577) $ (149,677) $ (147,458) $ (138,788) (1) Primarily represents the gross-up portion of the deferred income tax (on the excess-deferred-tax regulatory liability) brought about by the Tax Cuts and Jobs Act's reduction of the federal income tax rate. The current and deferred components of income tax expense are as follows: AWR Year Ended December 31, (dollars in thousands) 2023 2022 2021 Current Federal $ 26,327 $ 14,845 $ 19,592 State 10,489 6,016 7,270 Total current tax expense $ 36,816 $ 20,861 $ 26,862 Deferred Federal $ 4,157 $ 2,991 $ 2,802 State 626 (188) 759 Total deferred tax (benefit) expense 4,783 2,803 3,561 Total income tax expense $ 41,599 $ 23,664 $ 30,423 GSWC Year Ended December 31, (dollars in thousands) 2023 2022 2021 Current Federal $ 22,564 $ 10,582 $ 13,698 State 10,176 4,909 6,089 Total current tax expense $ 32,740 $ 15,491 $ 19,787 Deferred Federal $ 2,867 $ 1,507 $ 2,251 State 82 (652) 57 Total deferred tax (benefit) expense 2,949 855 2,308 Total income tax expense $ 35,689 $ 16,346 $ 22,095 The reconciliations of the effective tax rates (“ETR”) to the federal statutory rate are as follows: AWR Year Ended December 31, (dollars in thousands) 2023 2022 2021 Federal taxes on pretax income at statutory rate $ 34,969 $ 21,433 $ 26,202 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 9,785 4,335 6,425 Excess deferred tax amortization (1,648) (1,311) (1,356) Flow-through on fixed assets 1,067 1,076 1,069 Flow-through on removal costs (2,255) (1,802) (1,962) Investment tax credit (71) (71) (71) Other – net (248) 4 116 Total income tax expense from operations $ 41,599 $ 23,664 $ 30,423 Pretax income from operations $ 166,520 $ 102,060 $ 124,770 Effective income tax rate 25.0 % 23.2 % 24.4 % GSWC Year Ended December 31, (dollars in thousands) 2023 2022 2021 Federal taxes on pretax income at statutory rate $ 29,063 $ 14,724 $ 19,175 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 9,169 3,119 4,923 Excess deferred tax amortization (1,681) (1,130) (1,184) Flow-through on fixed assets 1,041 1,010 1,008 Flow-through on removal costs (2,225) (1,715) (1,954) Investment tax credit (71) (71) (71) Other – net 393 409 198 Total income tax expense from operations $ 35,689 $ 16,346 $ 22,095 Pretax income from operations $ 138,397 $ 70,116 $ 91,310 Effective income tax rate 25.8 % 23.3 % 24.2 % The AWR and GSWC ETRs differ from the federal corporate statutory tax rate of 21% primarily due to (i) state taxes; (ii) permanent differences, including certain tax effects from stock compensation; (iii) the ongoing amortization of the excess deferred income tax liability; and (iv) differences between book and taxable income that are treated as flowed-through adjustments in accordance with regulatory requirements (principally from plant, rate-case, and compensation-related items). As regulated utilities, GSWC and BVES treat certain temporary differences as being flowed through to customers in computing their income tax expense consistent with the income tax method used in their CPUC-jurisdiction rate making. Flowed-through items either increase or decrease tax expense and thus impact the ETR. AWR and GSWC had no unrecognized tax benefits at December 31, 2023, 2022 and 2021. Registrant’s policy is to classify interest on income tax over/underpayments in interest income/expense and penalties in “other” expenses. Registrant did not have any material interest receivables/payables from/to taxing authorities as of December 31, 2023 and 2022, nor did it recognize any material interest income/expense or accrue any material tax-related penalties during the years ended December 31, 2023, 2022 and 2021. Registrant files federal, California and various other state income tax returns. AWR’s 2020–2022 tax years remain subject to examination/assessment by the Internal Revenue Service. AWR filed refund claims with the California Franchise Tax Board (“FTB”) for the 2005 through 2020 tax years in connection with prior federal refund claims, other state issues, or both, and the FTB continues to review the claims. While the statute of limitations to assess tax has closed through the tax year 2018, the 2019–2022 tax years remain subject to examination/assessment by the FTB. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension and Post-Retirement Medical Plans : Registrant maintains a defined benefit pension plan (the “Pension Plan”) that provides eligible employees (those aged 21 and older, hired before January 1, 2011) monthly benefits upon retirement based on average salaries and length of service. The eligibility requirement to begin receiving these benefits is 5 years of vested service. The normal retirement benefit is equal to 2% of the 5 highest consecutive years’ average earnings multiplied by the number of years of credited service, up to a maximum of 40, reduced by a percentage of primary Social Security benefits. There is also an early retirement option. Annual contributions are made to the Pension Plan, which comply with the funding requirements of the Employee Retirement Income Security Act (“ERISA”). At December 31, 2023, Registrant h ad 903 participants in the Pension Plan. Employees hired or rehired after December 31, 2010 are eligible to participate in a defined contribution plan. Registrant’s existing 401(k) Investment Incentive Program was amended to include this defined contribution plan. Under this plan, Registrant provides a contribution ranging from 3% to 5.25% of eligible pay each pay period into investment vehicles offered by the plan’s trustee. Full vesting under this plan occurs upon 3 years of service. Employees hired before January 1, 2011 continue to participate in and accrue benefits under the terms of the Pension Plan. Registrant also provides post-retirement medical benefits for all active employees hired before February of 1995 through a medical insurance plan. Eligible employees, who retire prior to age 65, and/or their spouses, are able to retain the benefits under the plan for active employees until reaching age 65. Eligible employees upon reaching age 65, and those eligible employees retiring at or after age 65, and/or their spouses, receive coverage through a Medicare supplement insurance policy paid for by Registrant subject to an annual cap limit. Registrant’s post-retirement medical plan does not provide prescription drug benefits to Medicare-eligible employees and is not affected by the Medicare Prescription Drug Improvement and Modernization Act of 2003. In accordance with the accounting guidance for the effects of certain types of regulation, Registrant has established a regulatory asset or liability for its underfunded or overfunded position, respectively, in its pension and post-retirement medical plans that is expected to be recovered through rates in future periods. The changes in actuarial gains and losses, prior service costs and transition assets or obligations are tracked and recognized as an adjustment to the regulatory account as these amounts are recognized as components of net periodic pension cost each year and in the rate-making process. The following table sets forth the Pension Plan’s and post-retirement medical plan’s funded status and amounts recognized in Registrant’s balance sheets and the components of net pension cost and accrued liability at December 31, 2023 and 2022: Pension Benefits Post-Retirement Medical (dollars in thousands) 2023 2022 2023 2022 Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 190,678 $ 259,751 $ 2,014 $ 2,686 Service cost 3,196 5,644 130 129 Interest cost 10,142 7,401 106 60 Actuarial (gain) loss 8,525 (72,710) 49 (570) Benefits/expenses paid (9,578) (9,408) (334) (291) Projected benefit obligation at end of year $ 202,963 $ 190,678 $ 1,965 $ 2,014 Changes in Plan Assets: Fair value of plan assets at beginning of year $ 186,906 $ 233,524 $ 11,240 $ 13,773 Actual return on plan assets 25,031 (40,299) 1,921 (2,242) Employer contributions 2,946 3,089 265 263 Benefits/expenses paid (9,578) (9,408) (599) (554) Fair value of plan assets at end of year $ 205,305 $ 186,906 $ 12,827 $ 11,240 Funded Status: Overfunded/(underfunded) amount recognized $ 2,342 $ (3,772) $ 10,862 $ 9,226 The change i n the underfunded status of the pension was due to an increase in plan asset performance, partially offset by a decrease in the discount rate, which decreased from 5.41% as of December 31, 2022 to 5.16% as of December 31, 2023. Pension Benefits Post-Retirement (dollars in thousands) 2023 2022 2023 2022 Amounts recognized on the balance sheets: Non-current assets $ 2,342 $ — $ 10,862 $ 9,226 Current liabilities — — — — Non-current liabilities — (3,772) — — Net amount recognized $ 2,342 $ (3,772) $ 10,862 $ 9,226 Amounts recognized in regulatory assets (liabilities) consist of: Prior service cost (credit) $ 1,454 $ 1,889 $ — $ — Net loss (gain) (1,899) 4,123 (6,272) (5,846) Regulatory assets (liabilities) (445) 6,012 (6,272) (5,846) Prefunded plan costs (1,897) (2,240) (4,590) (3,380) Net liability (asset) recognized $ (2,342) $ 3,772 $ (10,862) $ (9,226) Changes in plan assets and benefit obligations recognized in regulatory assets (liabilities): Regulatory asset (liability) at beginning of year $ 6,012 $ 25,691 $ (5,846) $ (9,839) Net (loss) gain (6,023) (19,245) (1,395) 2,259 New prior service cost — — — — Amortization of prior service (cost) credit (434) (434) — — Amortization of net gain (loss) — — 969 1,734 Total change in regulatory asset (liability) (6,457) (19,679) (426) 3,993 Regulatory asset (liability) at end of year $ (445) $ 6,012 $ (6,272) $ (5,846) Net periodic pension costs $ 3,289 $ 313 $ (1,210) $ (2,132) Change in regulatory asset (liability) (6,457) (19,679) (426) 3,993 Total recognized in net periodic pension cost and regulatory asset (liability) $ (3,168) $ (19,366) $ (1,636) $ 1,861 Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 202,963 $ 190,678 $ 1,965 $ 2,014 Accumulated benefit obligation $ 192,986 $ 181,376 N/A N/A Fair value of plan assets $ 205,305 $ 186,906 $ 12,827 $ 11,240 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 5.16 % 5.41 % 5.04 % 5.34 % Rate of compensation increase * * N/A N/A • Age-graded ranging from 2.5% to 7.0%. The components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool, for 2023, 2022 and 2021 are as follows: Pension Benefits Post-Retirement (dollars in thousands, except percent) 2023 2022 2021 2023 2022 2021 Components of Net Periodic Benefits Cost: Service cost $3,196 $5,644 $6,316 $130 $129 $149 Interest cost 10,142 7,401 6,833 106 60 110 Expected return on plan assets (10,483) (13,166) (12,541) (477) (587) (537) Amortization of prior service cost (credit) 434 434 434 — — — Amortization of actuarial (gain) loss — — 3,817 (969) (1,734) (1,417) Net periodic pension cost under accounting standards $3,289 $313 $4,859 $(1,210) $(2,132) $(1,695) Regulatory adjustment (281) — (1,277) — — — Total expense recognized, before surcharges and allocation to overhead pool $3,008 $313 $3,582 $(1,210) $(2,132) $(1,695) Weighted-average assumptions used to determine net periodic cost: Discount rate 5.41 % 2.89 % 2.55 % 5.34 % 2.46 % 2.20 % Expected long-term return on plan assets 5.75 % 5.75 % 6.00 % * * * Rate of compensation increase ** ** ** N/A N/A N/A * 5.50% for union plan and 3.9% for non-union (net of income taxes) in 2023 and 2022 and 5.75% for union plan and 4.0% for non-union (net of income taxes) in 2021. ** Age-graded ranging from 2.5% to 7.0%. Regulatory Adjustment : The CPUC authorized GSWC and BVES to track differences between the forecasted annual pension expenses adopted in rates and the actual annual exp enses to be recorded in accordance with the accounting guidance for pension costs in a two-way pension balancing account. During the years ended December 31, 2023 and 2021, GSWC’s actual pension expense was higher than the amounts included in water customer rates by $281,000 and $1.3 million, respectively. During the year ended December 31, 2022, GSWC’s actual expense was lower than the amounts included in water customer rates by $1.5 million and recorded as a reduction to water revenues. The cumulative amount recorded in GSWC’s two-way pension balancing account is included within the pension s and other post-retirement obligations regulatory asset discussed in Note 3. During the years ended December 31, 2023, 2022 and 2021, BVES’s actual expense was lower than the amounts included in electric rates by $270,000 , $490,000 and $246,000, respectively. These over-collections were recorded as a reduction to electric revenues. Plan Funded Status : The Pension Plan was overfunded and underfunded at December 31, 2023 and 2022, respectively. Registrant’s market related value of plan assets is equal to the fair value of plan assets. Past volatile market conditions have affected and continue to affect the value of GSWC’s trust established to fund its future long-term pension benefits. These benefit plan assets and related obligations are measured annually using a December 31 measurement date. Changes in the Pension Plan’s funded status will affect the assets and liabilities recorded on the balance sheet in accordance with accounting guidance on employers’ accounting for defined benefit pension and other post-retirement plans. Due to Registrant’s regulatory recovery treatment, the recognition of the under or overfunded status for the Pension Plan has been offset by a regulatory asset or liability, respectively, pursuant to guidance on the accounting for the effects of certain types of regulation. Plan Assets : The assets of the pension and post-retirement medical plans are managed by a third party trustee. The investment policy allocation of the assets in the trust was approved by Registrant’s Administrative Committee (the “Committee”) for the pension and post-retirement medical funds, which has oversight responsibility for all retirement plans. The primary objectives underlying the investment of the pension and post-retirement plan assets are: (i) attempt to maintain a fully funded status with a cushion for unexpected developments, possible future increases in expense levels and/or a reduction in the expected return on investments; (ii) seek to earn long-term returns that compare favorably to appropriate market indexes, peer group universes and the policy asset allocation index; (iii) seek to provide sufficient liquidity to pay current benefits and expenses; (iv) attempt to limit risk exposure through prudent diversification; and (v) seek to limit costs of administering and managing the plans. The Committee recognizes that risk and volatility are present to some degree with all types of investments. High levels of risk may be avoided through diversification by asset class, style of each investment manager and sector and industry limits. Investment managers are retained to manage a pool of assets and allocate funds in order to achieve an appropriate, diversified and balanced asset mix. The Committee’s strategy balances the requirement to maximize returns using potentially higher-return generating assets, such as equity securities, with the need to control the risk of its benefit obligations with less volatile assets, such as fixed-income securities. The Committee approves the target asset allocations. Registrant’s pension and post-retirement plan weighted-average asset allocations at December 31, 2023 and 2022, by asset category are as follows: Pension Benefits Post-Retirement Asset Category 2023 2022 2023 2022 Actual Asset Allocations : Equity securities 56 % 56 % 60 % 59 % Debt securities 39 % 39 % 39 % 39 % Real Estate Funds 5 % 5 % — % — % Cash equivalents — % — % 1 % 2 % Total 100 % 100 % 100 % 100 % Equity securities did not include AWR’s Common Shares as of December 31, 2023 and 2022. Target Asset Allocations: Pension Benefits Post-retirement Equity securities 60 % 60 % Debt securities 40 % 40 % Total 100 % 100 % The Pension Plan assets are in collective trust funds managed by a management firm appointed by the Committee. The fair value of these collective trust funds is measured using net asset value per share. In accordance with ASU 2015-07 Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalents) , the fair value of the collective trust funds is not categorized in the fair value hierarchy as of December 31, 2023 and 2022. The following tables set forth the fair value, measured by net asset value, of the pension investment assets as of December 31, 2023 and 2022: Net Asset Value as of December 31, 2023 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 814 — N/A N/A Fixed income fund 80,737 — Daily Daily Equity securities : U.S. small/mid cap funds 19,162 — Daily Daily U.S. large cap funds 49,770 — Daily Daily International funds 45,377 — Daily Daily Total equity funds 114,309 — Real estate funds 9,445 — Daily Daily Total $ 205,305 — Net Asset Value as of December 31, 2022 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 801 — N/A N/A Fixed income fund 73,863 — Daily Daily Equity securities : U.S. small/mid cap funds 17,136 — Daily Daily U.S. large cap funds 44,572 — Daily Daily International funds 42,239 — Daily Daily Total equity funds 103,947 Real estate funds 8,295 — Daily Daily Total $ 186,906 — The collective trust funds may be invested or redeemed daily, and generally do not have any significant restrictions to redeem the investments. As previously discussed in Note 1, the accounting guidance for fair value measurements establishes a framework for measuring fair value and requires fair value measurements to be classified and disclosed in one of three levels. As required by the accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. All equity investments in the post-retirement medical plan are Level 1 investments in mutual funds. The fixed income category includes corporate bonds and notes. The majority of fixed income investments range in maturities from less than 1 to 20 years. The fair values of these investments are based on quoted market prices in active markets. The following tables set forth by level, within the fair value hierarchy, the post-retirement plan’s investment assets measured at fair value as of December 31, 2023 and 2022: Fair Value as of December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 189 — — $ 189 Fixed income 5,001 — — 5,001 U.S. equity securities 7,637 — — 7,637 Total investments measured at fair value $ 12,827 — — $ 12,827 Fair Value as of December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 215 — — $ 215 Fixed income 4,380 — — 4,380 U.S. equity securities 6,645 — — 6,645 Total investments measured at fair value $ 11,240 — — $ 11,240 Plan Contributions : During 2023, Registrant contributed $2.9 million to its pension plan and did not make a contribution to the post-retirement medical plan. Registrant expects to contribute approximately $3.3 million to its pension plan in 2024. Registrant’s policy is to fund the plans annually at a level which is deductible for income tax purposes and is consistent with amounts recovered in customer rates while also complying with ERISA’s funding requirements. Benefit Payments : Estimated future benefit payments at December 31, 2023 are as follows (in thousands): Pension Benefits Post-Retirement Medical Benefits 2024 $ 10,604 $ 295 2025 11,089 279 2026 11,539 276 2027 12,075 252 2028 12,568 226 Thereafter 70,006 713 Total $ 127,881 $ 2,041 Assumptions : Certain actuarial assumptions, such as the discount rate, long-term rate of return on plan assets, mortality, and the healthcare cost trend rate have a significant effect on the amounts reported for net periodic benefit cost as well as the related benefit obligation amounts. Discount Rate — The assumed discount rate for pension and post-retirement medical plans reflects the market rates for high-quality corporate bonds currently available. Registrant’s discount rates were determined by considering the average of pension yield curves constructed of a large population of high quality corporate bonds. The resulting discount rate reflects the matching of plan liability cash flows to the yield curves. Expected Long-Term Rate of Return on Assets — The long-term rate of return on plan assets represents an estimate of long-term returns on an investment portfolio consisting of a mixture of equities, fixed income and other investments. To develop the expected long-term rate of return on assets assumption for the pension plan, Registrant considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. Registrant’s policy is to fund the medical benefit trusts based on actuarially determined amounts as allowed in rates approved by the CPUC. Registrant has invested the funds in the post-retirement trusts that are intended to achieve a desired return and minimize amounts necessary to recover through rates. The mix is expected to provide for a return on assets similar to the Pension Plan and to achieve Registrant’s targeted allocation. This resulted in the selection of the 5.50% long-term rate of return on assets assumption for the union plan and 3.9% (net of income taxes) for the non-union plan portion of the post-retirement plan. Mortality — Mortality assumptions are a critical component of benefit obligation amounts and a key factor in determining the expected length of time for annuity payments. Registrant uses the latest mortality tables published by the Society of Actuaries. Accordingly, the benefit obligation amounts as of December 31, 2023 and 2022 have incorporated recent updates to the mortality tables. Healthcare Cost Trend Rate — The assumed health care cost trend rate for 2024 starts at 5.9% grading down to 4.0% in 2047 for those under age 65, and at 6.3% grading down to 4.0% in 2047 for those 65 and over. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. Supplemental Executive Retirement Plan : Registrant has a supplemental executive retirement plan (“SERP”) that is intended to restore retirement benefits to certain key employees and officers of Registrant that are limited by Sections 415 and 401(a)(17) of the Internal Revenue Code of 1986, as amended. The Board of Directors approved the establishment of a Rabbi Trust created for the SERP. Assets in a Rabbi Trust can be subject to the claims of creditors; therefore, they are not considered as an asset for purposes of computing the SERP’s funded status. As of December 31, 2023, the balance in the Rabbi Trust totaled $34.1 million and is included in Registrant’s other property and investments. All equity investments in the Rabbi Trust are Level 1 (as defined in Note 1) investments in mutual funds. The fixed income category includes corporate bonds and notes. The fair values of these investments are based on quoted market prices in active markets. The following tables set forth by level, within the fair value hierarchy, the Rabbi Trust investment assets measured at fair value as of December 31, 2023 and 2022: Fair Value as of December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 6 — — $ 6 Fixed income securities 13,676 — — 13,676 Equity securities 20,461 — — 20,461 Total investments measured at fair value $ 34,143 — — $ 34,143 Fair Value as of December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 9 — — $ 9 Fixed income securities 10,962 — — 10,962 Equity securities 16,560 — — 16,560 Total investments measured at fair value $ 27,531 — — $ 27,531 The following provides a reconciliation of benefit obligations, funded status of the SERP, as well as a summary of significant estimates at December 31, 2023 and 2022: (dollars in thousands) 2023 2022 Change in Benefit Obligation: Benefit obligation at beginning of year $ 30,807 $ 36,089 Service cost 1,248 1,191 Interest cost 1,644 1,022 Actuarial loss (gain) 840 (6,522) Benefits paid (945) (973) Benefit obligation at end of year $ 33,594 $ 30,807 Changes in Plan Assets: Fair value of plan assets at beginning and end of year — — Funded Status: Net amount recognized as accrued cost $ (33,594) $ (30,807) (in thousands) 2023 2022 Amounts recognized on the balance sheets: Current liabilities $ (942) $ (942) Non-current liabilities (32,652) (29,865) Net amount recognized $ (33,594) $ (30,807) Amounts recognized in regulatory assets consist of: Prior service cost $ — $ — Net loss 2,869 1,995 Regulatory assets 2,869 1,995 Unfunded accrued cost 30,725 28,812 Net liability recognized $ 33,594 $ 30,807 Changes in plan assets and benefit obligations recognized in regulatory assets consist of: Regulatory asset at beginning of year $ 1,995 $ 9,097 Net gain (loss) 840 (6,522) Amortization of prior service credit — — Amortization of net gain (loss) 34 (580) Total change in regulatory asset 874 (7,102) Regulatory asset at end of year $ 2,869 $ 1,995 Net periodic pension cost $ 2,858 $ 2,793 Change in regulatory asset 874 (7,102) Total recognized in net periodic pension and regulatory asset $ 3,732 $ (4,309) Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 33,594 $ 30,807 Accumulated benefit obligation 30,794 28,157 Fair value of plan assets — — Weighted-average assumptions used to determine benefit obligations: Discount rate 5.15 % 5.42 % Rate of compensation increase * * * Age graded from 4.0% to 5.5% per year. The components of SERP expense, before allocation to the overhead pool, for 2023, 2022 and 2021 are as follows: (dollars in thousands, except percent) 2023 2022 2021 Components of Net Periodic Benefits Cost: Service cost $ 1,248 $ 1,191 $ 1,392 Interest cost 1,644 1,022 915 Amortization of net (gain) loss (34) 580 1,678 Net periodic pension cost $ 2,858 $ 2,793 $ 3,985 Weighted-average assumptions used to determine net periodic cost: Discount rate 5.42 % 2.87 % 2.52 % Rate of compensation increase * * * * A ge graded from 4.0% to 5.5% per year. Benefit Payments : Estimated future benefit payments for the SERP at December 31, 2023 are as follows (in thousands): 2024 $ 942 2025 2,344 2026 2,519 2027 2,630 2028 2,604 Thereafter 13,551 Total $ 24,590 401(k) Investment Incentive Program : Registrant has a 401(k) Investment Incentive Program under which employees may invest a percentage of their pay, up to a maximum investment prescribed by law, in an investment program managed by an outside investment manager. Registrant’s cash contributions to the 401(k) are based upon a percentage of individual employee contributions and for the years ended December 31, 2023, 2022 and 2021 were $2.9 million, $2.7 million and $2.7 million, respectively. The Investment Incentive Program also incorporates the defined contribution plan for employees hired on or after January 1, 2011. The cash contributions to the defined contribution plan for the years ended December 31, 2023, 2022 and 2021 were $2.2 million, $2.0 million and $1.9 million, respectively. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Summary Description of Stock Incentive Plans As of December 31, 2023, AWR had three stock incentive plans: the 2016 stock incentive plan for its employees, and the 2003 and 2023 non-employee directors plans for its Board of Directors, each more fully described below. 2016 Employee Plans — AWR adopted this employee plan, following shareholder approval, to provide stock-based incentive awards in the form of restricted stock units, stock options and restricted stock to employees as a means of promoting the success of Registrant by attracting, retaining and more fully aligning the interests of employees with those of customers and shareholders. The 2016 employee plan also provides for the grant of performance awards. There are no stock options or restricted stock grants currently outstanding. For restricted stock unit awards, the Compensation Committee determines the specific terms, conditions and provisions relating to each restricted stock unit. Each employee who has been granted a time-vested restricted stock unit is entitled to dividend equivalent rights in the form of additional restricted stock units until vesting of the time-vested restricted stock units. In general, time-vested restricted stock units vest over a period of three years. Restricted stock units may also vest upon retirement if the grantee is at least 55 and the sum of the grantee’s age and years of service are equal to or greater than 75, or upon death or total disability. In addition, restricted stock units may vest following a change in control if the applicable subsidiary of AWR terminates the grantee other than for cause or the employee terminates employment for good reason. Each restricted stock unit is non-voting and entitles the holder of the restricted stock unit to receive one Common Share. The Compensation Committee also has the authority to determine the number, amount or value of performance awards, the duration of the performance period or performance periods applicable to the award and the performance criteria applicable to each performance award for each performance period. Each outstanding performance award granted by the Compensation Committee has been in the form of restricted stock units that generally vest over a period of three years as provided in the performance award agreement. The amount of the performance award paid to an employee depends upon satisfaction of performance criteria following the end of a three 2003 and 2023 Directors Plans — The Board of Directors and shareholders of AWR have approved the 2003 and 2023 directors plans in order to provide the non-employee directors with supplemental stock-based compensation to encourage them to increase their stock ownership in AWR. New grants may not be made under the 2003 directors plan. Under the 2023 non-employee directors plan, non-employee directors are entitled to receive restricted stock units in an amount determined by the Board of Directors prior to the meeting; provided that, in no event may that amount be equal to more than two times the then current annual retainer for services as a director divided by the fair market value of AWR’s Common Shares on the date preceding the annual meeting. Such units are convertible into AWR’s Common Shares 90 days after the grant date. All non-employee directors of AWR who were directors of AWR at the 2003 annual meeting have also received restricted stock units, which will be distributed upon termination of the director’s service as a director. All restricted stock units and performance awards have been granted with dividend equivalent rights payable in the form of additional restricted stock units. Recognition of Compensation Expense Registrant recognizes compensation expense related to the fair value of stock-based compensation awards. Share-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant). Immediate vesting occurs if the employee is at least 55 years old and the sum of the employee’s age and years of employment is equal to or greater than 75. Registrant assumes that pre-vesting forfeitures will be minimal, and recognizes pre-vesting forfeitures as they occur, which results in a reduction in compensation expense. The following table presents share-based compensation expenses for the years ended December 31, 2023, 2022 and 2021. These expenses resulting from restricted stock units, including performance awards, are included in administrative and general expenses in AWR’s and GSWC’s statements of income: AWR GSWC For The Years Ended December 31, For The Years Ended December 31, (in thousands) 2023 2022 2021 2023 2022 2021 Stock-based compensation related to: Restricted stock units $ 3,298 $ 2,571 $ 2,566 $ 2,994 $ 2,269 $ 2,313 Total stock-based compensation expense $ 3,298 $ 2,571 $ 2,566 $ 2,994 $ 2,269 $ 2,313 Equity-based compensation cost capitalized as part of utility plant for the years ended December 31, 2023, 2022 and 2021 was approximately $450,000 , $290,000 and $336,000, respectively, for both AWR and GSWC. For the years ended December 31, 2023, 2022 and 2021, approximately $750,000 , $900,000 and $1.4 million, respectively, of tax benefits from stock-based awards were recorded for both AWR and GSWC. Registrant amortizes stock-based compensation over the requisite (vesting) period for the entire award. Time-vesting restricted stock units vest and become non-forfeitable in installments of 33% the first two years and 34% in the third year, starting one year from the date of the grant. Outstanding performance awards vest and become non-forfeitable in installments of 33% the first two years and 34% in the third year and are distributed at the end of the performance period to the extent that the Compensation Committee determines that the performance criteria set forth in the award agreement have been satisfied. Restricted Stock Units (Time-Vested) — A restricted stock unit (“RSU”) represents the right to receive a share of AWR’s Common Shares and are valued based on the fair market value of AWR’s Common Shares on the date of grant. The fair value of RSUs were determined based on the closing trading price of Common Shares on the grant date. A summary of the status of Registrant’s outstanding RSUs, excluding performance awards, to employees and directors as of December 31, 2023, and changes during the year ended December 31, 2023, is presented below: Number of Weighted Average Restricted share units at January 1, 2023 47,552 $ 49.01 Granted 19,837 94.71 Vested (16,574) 87.28 Forfeited (488) 92.84 Restricted share units at December 31, 2023 50,327 $ 54.00 As of December 31, 2023, there was approximately $622,000 of total unrecognized compensation cost related to time-vested restricted stock units granted under AWR’s employee stock plans. That cost is expected to be recognized over a weighted average period of 1.53 years. Restricted Stock Units (Performance Awards) – During the years ended December 31, 2023, 2022 and 2021, the Compensation Committee granted performance awards in the form of restricted stock units to officers of Registrant. A performance award represents the right to receive a share of AWR’s Common Shares if the Compensation Committee determines that specified performance goals have been met over the performance period specified in the grant (generally three years). Each grantee of any outstanding performance award may earn between 0% and up to 200% or 250% of the target amount, which varies depending on the target and Registrant’s performance against performance goals, which are determined by the Compensation Committee on the date of grant. As determined by the Compensation Committee, the performance awards granted during the years ended December 31, 2023, 2022 and 2021 included various performance-based conditions and one market-based condition related to total shareholder return (“TSR”) that will be earned based on Registrant’s TSR compared to the TSR for a specific peer group of investor-owned water companies. A summary of the status of Registrant’s outstanding performance awards to officers as of December 31, 2023, and changes during the year ended December 31, 2023, is presented below: Number of Weighted Average Performance awards at January 1, 2023 49,435 $ 83.70 Granted 19,696 96.04 Performance criteria adjustment 8,321 91.73 Vested (12,095) 89.59 Performance awards at December 31, 2023 65,357 $ 87.35 A portion of the fair value of performance awards was estimated at the grant date based on the probability of satisfying the market-based condition using a Monte-Carlo simulation model, which assesses the probabilities of various outcomes of the market condition. The portion of the fair value of the performance awards associated with performance-based conditions was based on the fair market value of AWR’s Common Shares at the grant date. The fair value of each outstanding performance award grant is amortized into compensation expense in installments of 33% the first two years and 34% in the third year of their respective vesting periods, which is generally over 3 years unless earlier vested pursuant to the terms of the agreement. The accrual of compensation costs is based on the estimate of the final expected value of the award and is adjusted as required for the portion based on the performance-based condition. Unlike the awards with performance-based conditions, for the portion based on the market-based condition, compensation cost is recognized, and not reversed, even if the market condition is not achieved, as required by the accounting guidance for share-based awards. As of December 31, 2023, $272,000 of unrecognized compensation costs related to performance awards is expected to be recognized over a weighted average period of |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Commitments | Commitments GSWC’s Water Supply : GSWC has contracts to purchase water or water rights for an aggregate amount of $2.7 million as of December 31, 2023. Included in the $2.7 million is a commitment of $1.3 million to use water rights from a third party under an agreement, which expires in 2028. The remaining $1.4 million is for commitments for purchased water with other third parties, which expire from 2025 through 2038. GSWC’s estimated future minimum payments under these purchased water supply commitments at December 31, 2023 are as follows (in thousands): 2024 $ 491 2025 441 2026 391 2027 391 2028 213 Thereafter 805 Total $ 2,732 BVES Commitments : Purchase Power Contracts: BVES had entered into long-term, fixed-price contracts to purchase power over three (“RPS”) eligible energy and renewable energy credits as a bundled product. BVES will begin taking power under this long-term contract during the fourth quarter of 2024 to replace the existing expiring contracts. The new contract provides for the purchase of electricity during a delivery period from November 1, 2024 through December 31, 2035. As of December 31, 2023, BVES has power purchase commitments under these contracts that totals $45.8 million . Renewables Portfolio Standard: BVES is subject to the renewables portfolio standard law, which requires BVES to meet certain targets for purchases of energy from qualified renewable energy resources. BVES had an agreement with a third party to purchase RECs whereby BVES agreed to purchase approximately 578,000 RECs over a ten BVES executed a contract in July 2023 with a third party to procure RPS eligible energy and RECs as a bundled product. The RECs under this agreement will be delivered following the year in which energy is purchased. BVES has agreed to purchase approximately 587,000 RECs over the eleven In addition, BVES has executed additional REC purchase agreements that delivered in 2023 a total of 30,000 RECs with an additional 15,000 RECs delivered in January 2024. As of December 31, 2023, BVES believes that it has purchased sufficient RECs to be in compliance through 2024 and management does not believe any provision for loss or potential penalties is required as of December 31, 2023. The cost of RECS are recorded to the electric supply cost balancing account when retired. BVES has commitments for RECs under contracts totaling $9.0 million as of December 31, 2023 . See Note 16 for Registrant’s future minimum payments under long-term non-cancelable operating leases. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Environmental Clean-Up and Remediation at GSWC : GSWC has been involved in environmental remediation and cleanup at one of its plant sites that contained an underground storage tank, which was used to store gasoline for its vehicles. This tank was removed from the ground in July 1990 along with the dispenser and ancillary piping. Since then, GSWC has been involved in various remediation activities at this site. As of December 31, 2023, the total spent to clean-up and remediate the plant site was approximately $6.3 million , of which $1.5 million has been paid by the State of California Underground Storage Tank Fund. Amounts paid by GSWC have been included in rate base and approved by the CPUC for recovery. As of December 31, 2023, GSWC has a regulatory asset and an accrued liability for the estimated remaining cost of $1.3 million to complete the cleanup at the site. The estimate includes costs for continued activities of groundwater cleanup and monitoring, future soil treatment and site-closure-related activities. The ultimate cost may vary as there are many unknowns in remediation of underground gasoline spills and this is an estimate based on currently available information. Management believes it is probable that the estimated additional costs will continue to be approved in rate base by the CPUC. Contracted Services: Most of ASUS’s contract services are provided to the U.S. government pursuant to the terms of the initial 50-year, firm-fixed-price contracts and additional firm-fixed-price contracts subject to annual economic price adjustments. ASUS's subsidiaries also, from time to time, performs construction services on military bases as a subcontractor or pursuant to a task order agreement. Entering into contracts with the U.S. government subjects ASUS and its subsidiaries to potential government audits or investigations of its business practices and compliance with government procurement statutes and regulations. ASUS had been under a civil government investigation over bidding and estimating practices used in certain capital upgrade projects. In July 2023, ASUS and the U.S. government entered into an agreement that settled civil and monetary claims by the U.S. government. This settlement did not have a material impact on Registrant’s financial statements. Other Litigation : Registrant is also subject to other ordinary routine litigation incidental to its business, some of which may include claims for compensatory and punitive damages. Management believes that rate recovery, proper insurance coverage and reserves are in place to insure against, among other things, property, general liability, employment, and workers’ compensation claims incurred in the ordinary course of business. Insurance coverage may not cover certain claims involving punitive damages. Registrant does not believe the outcome from any pending suits or administrative proceedings will have a material effect on Registrant’s consolidated results of operations, financial position, or cash flows. |
Leases Leases
Leases Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. As of December 31, 2023, Registrant has right-of-use assets of $8.0 million, short-term operating lease liabilities of $1.9 million and long-term operating lease liabilities of $6.6 million. Currently, Registrant does not have any financing leases. Significant assumptions and judgments made as pa rt of the lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to Registrant over terms similar to the lease terms. Registrant’s leases consist of real estate and equipment leases, which are mostly GSWC’s. Most of Registrant’s leases require fixed lease payments. Some real estate leases have escalation payments which depend on an index. Variable lease costs were not material. Lease terms used to measure the lease liability include options to extend the lease if the option is reasonably certain to be exercised. Lease and non-lease components were combined to measure lease liabilities. Registrant’s supplemental lease information for the year ended December 31, 2023 is as follows (in thousands, except for weighted average data): For The Year Ended December 31, 2023 For The Year Ended December 31, 2022 Operating lease costs $2,486 $2,609 Short-term lease costs $147 $198 Weighted average remaining lease term (in years) 4.55 5.27 Weighted-average discount rate 4.0% 3.9% Non-cash transactions Lease liabilities arising from obtaining right-of-use assets $565 $1,569 For the years 2023, 2022 and 2021, Registrant’s consolidated rent expense was approxim ately $2.3 million , $2.6 million and $2.5 million, respectively. Registrant’s future minimum payments under long-term non-cancelable operating leases as of December 31, 2023 are as follows (in thousands): 2024 $ 2,161 2025 2,066 2026 1,816 2027 1,556 2028 1,305 Thereafter 386 Total lease payments 9,290 Less: imputed interest 815 Total lease obligations 8,475 Less: current obligations 1,856 Long-term lease obligations $ 6,619 The consolidated operations of AWR and the operations of GSWC in regard to future minimum payments under long-term non-cancelable operating leases are not materially different. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments AWR has three reportable segments, water, electric and contracted services. GSWC has one segment, water. On a stand-alone basis, AWR has no material assets other than its equity investments in its subsidiaries, note payables to banks, deferred income taxes and intercompany note receivables. All GSWC and BVES business activities are conducted in California. Activities of ASUS and its subsidiaries are conducted in California, Florida, Kansas, Maryland, Massachusetts, New Mexico, North Carolina, South Carolina, Texas and Virginia. Some of ASUS’s wholly owned subsidiaries are regulated by the state in which the subsidiary primarily conducts water and/or wastewater operations. Fees charged for operations and maintenance and renewal and replacement services are based upon the terms of the contracts with the U.S. government, which have been filed, as appropriate, with the commissions in the states in which ASUS’s subsidiaries are incorporated. The tables below set forth information relating to AWR’s operating segments and AWR (parent). The utility plant balances are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime funded capital expenditures for ASUS's subsidiaries and property installed by developers and conveyed to GSWC and BVES. As Of And For The Year Ended December 31, 2023 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 433,473 $ 41,832 $ 120,394 $ — $ 595,699 Operating income (loss) 159,177 11,196 26,151 216 196,740 Interest expense (income), net 25,726 2,238 1,321 6,061 35,346 Net property, plant and equipment 1,735,534 140,279 16,467 — 1,892,280 Depreciation and amortization expense (1) 35,886 3,256 3,261 — 42,403 Income tax expense (benefit) 35,689 1,515 6,109 (1,714) 41,599 Capital additions 160,939 25,372 2,229 — 188,540 As Of And For The Year Ended December 31, 2022 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 340,602 $ 39,986 $ 110,940 $ — $ 491,528 Operating income (loss) 92,455 11,740 22,449 (8) 126,636 Interest expense (income), net 21,659 831 (132) 2,343 24,701 Net property, plant and equipment 1,616,718 119,560 17,488 — 1,753,766 Depreciation and amortization expense (1) 34,805 2,792 3,718 — 41,315 Income tax expense (benefit) 16,346 2,439 5,476 (597) 23,664 Capital additions 146,730 18,069 1,441 — 166,240 As Of And For The Year Ended December 31, 2021 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 347,112 $ 38,345 $ 113,396 $ — $ 498,853 Operating income (loss) 107,573 10,738 22,675 (9) 140,977 Interest expense (income), net 21,046 141 (637) 791 21,341 Net property, plant and equipment 1,499,745 106,508 19,751 — 1,626,004 Depreciation and amortization expense (1) 33,384 2,572 3,640 — 39,596 Income tax expense (benefit) 22,095 2,975 5,434 (81) 30,423 Capital additions 123,526 19,859 1,130 — 144,515 ____________________________ (1) Depreciation computed on regulated utilities’ transportation equipment is recorded in other operating expenses and totaled $851,000, $382,000 and $379,000 for the years ended December 31, 2023, 2022 and 2021, respectively. For the year ended December 31, 2023, approximately $212,000 of additional depreciation expense on GSWC's transportation equipment was recorded that relates to the cumulative retroactive impact for the full year of 2022 approved in the CPUC final decision in GSWC's general rate case that resulted from an increase to the transportation equipment composite depreciation rates that are retroactive to January 1, 2022. The following table reconciles total net property, plant and equipment (a key figure for ratemaking) to total consolidated assets (in thousands): December 31, 2023 2022 Total net property, plant and equipment $ 1,892,280 $ 1,753,766 Other assets 353,842 280,608 Total consolidated assets $ 2,246,122 $ 2,034,374 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2023 | |
Allowance for Doubtful Accounts | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Registrant’s allowance for doubtful accounts as of December 31, 2023 was developed based on expected credit losses and other considerations that may impact the customers’ ability to pay their bills. The estimate considers customer payment history and trends but also any COVID relief funds that Registrant receives. GSWC received confirmation from SWRCB that it is currently processing GSWC's application and expects to disburse approximately $3.5 million of COVID relief funds through the Extended Arrearage Program that will provide further assistance to customers for water debt accrued during the COVID-19 pandemic (Note 1). The CPUC has authorized GSWC and BVES to track incremental costs, including bad debt expense in excess of what is included in their respective revenue requirements, incurred as a result of the pandemic in COVID-19 related memorandum accounts to be filed with the CPUC for future recovery. In January 2022, GSWC received $9.5 million in COVID relief funds from the state of California through the initial California Water and Wastewater Arrearage Payment Program, which were applied to delinquent customers’ eligible balances incurred during the COVID-19 pandemic. During 2022, BVES received a total of $473,000 from the state of California for similar relief funding for unpaid electric bills incurred during the pandemic. Pursuant to CPUC requirements, as of December 31, 2023, 2022 and 2021, GSWC and BVES have reflected these relief funds as a reduction to its COVID-19 memorandum accounts, as well as a reduction to its estimated allowance for doubtful accounts. Other accounts receivable consist primarily of amounts due from third parties (non-utility customers) for various reasons, including amounts due from contractors, amounts due under settlement agreements, and amounts due from other third-party prime government contractors pursuant to agreements for construction of water and/or wastewater facilities for such third-party prime contractors. The table below presents Registrant’s provision for doubtful accounts charged to expense and accounts written off, net of recoveries. Provisions included in 2023, 2022 and 2021 for AWR and GSWC are as follows: AWR December 31, (dollars in thousands) 2023 2022 2021 Balance at beginning of year $ 4,440 $ 3,569 $ 5,316 Provision charged (1) 932 2,842 8,150 Accounts written off, net of recoveries (2) (1,782) (1,971) (9,897) Balance at end of year $ 3,590 $ 4,440 $ 3,569 Allowance for doubtful accounts related to accounts receivable-customer $ 3,537 $ 4,387 $ 3,516 Allowance for doubtful accounts related to other accounts receivable 53 53 53 Total allowance for doubtful accounts $ 3,590 $ 4,440 $ 3,569 (1) In 2022 and 2021, includes amounts in excess of GSWC’s and BVES’s respective revenue requirements incurred during the COVID-19 pandemic. These incremental amounts are recorded as regulatory assets in the COVID-19 memorandum accounts. (2) Reflects consideration of government relief funds expected to be received in 2024 and received in 2022 from the state of California for unpaid water and electric utility bills incurred during the pandemic. A total of $3.5 million is expected to be received for unpaid water utility bills in 2024, and $9.5 million and $473,000 was received in 2022 for unpaid water and electric utility bills, respectively. GSWC December 31, (dollars in thousands) 2023 2022 2021 Balance at beginning of year $ 4,196 $ 3,221 $ 4,960 Provision charged (3) 754 2,501 7,732 Accounts written off, net of recoveries (4) (1,503) (1,526) (9,471) Balance at end of year $ 3,447 $ 4,196 $ 3,221 Allowance for doubtful accounts related to accounts receivable-customer $ 3,394 $ 4,143 $ 3,168 Allowance for doubtful accounts related to other accounts receivable 53 53 53 Total allowance for doubtful accounts $ 3,447 $ 4,196 $ 3,221 (3) In 2022 and 2021, includes amounts in excess of GSWC’s revenue requirement incurred during the COVID-19 pandemic. This incremental amount was recorded as a regulatory asset in the COVID-19 memorandum account. (4) |
Statement of Cash Flows, Supple
Statement of Cash Flows, Supplemental Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table sets forth non-cash financing and investing activities and other cash flow information (in thousands). AWR GSWC December 31, December 31, 2023 2022 2021 2023 2022 2021 Taxes and Interest Paid: Income taxes paid, net $ 34,682 $ 27,370 $ 29,153 $ 31,625 $ 20,155 $ 21,428 Interest paid, net of capitalized interest 39,367 26,005 22,540 28,099 22,294 21,156 Non-Cash Transactions: Accrued payables for investment in utility plant 34,906 40,034 32,855 33,465 38,302 30,656 Property installed by developers and conveyed 4,690 1,549 7,222 4,690 1,549 7,222 |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT | CONDENSED BALANCE SHEETS December 31, (in thousands) 2023 2022 Assets Cash and equivalents $ 3,547 $ 93 Prepayments and other current assets 116 — Income taxes receivable 39 20 Intercompany note receivables 39,044 159,582 Total current assets 42,746 159,695 Investments in subsidiaries 870,020 799,802 Deferred taxes and other assets 10,135 9,891 Total assets $ 922,901 $ 969,388 Liabilities and Capitalization Notes payable to bank $ — $ 255,500 Income taxes payable 2,422 2,158 Other liabilities 577 454 Total current liabilities 2,999 258,112 Notes payable to bank 141,500 — Deferred taxes and other liabilities 2,293 1,727 Total other liabilities 143,793 1,727 Common shareholders’ equity 776,109 709,549 Total capitalization 776,109 709,549 Total liabilities and capitalization $ 922,901 $ 969,388 The accompanying condensed notes are an integral part of these condensed financial statements. CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, (In thousands, except per share amounts) 2023 2022 2021 Operating revenues and other income $ — $ — $ — Operating expenses and other expenses 5,576 2,093 542 Loss before equity in earnings of subsidiaries and income taxes (5,576) (2,093) (542) Equity in earnings of subsidiaries 128,783 79,892 94,808 Income before income taxes 123,207 77,799 94,266 Income tax benefit (1,714) (597) (81) Net income $ 124,921 $ 78,396 $ 94,347 Weighted Average Number of Common Shares Outstanding 36,976 36,955 36,921 Basic Earnings Per Common Share $ 3.37 $ 2.12 $ 2.55 Weighted Average Number of Diluted Common Shares Outstanding 37,077 37,039 37,010 Fully Diluted Earnings per Common Share $ 3.36 $ 2.11 $ 2.55 Dividends Paid Per Common Share $ 1.655 $ 1.525 $ 1.400 The accompanying condensed notes are an integral part of these condensed financial statements. CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, (in thousands) 2023 2022 2021 Cash Flows From Operating Activities $ 67,041 $ 56,398 $ 36,799 Cash Flows From Investing Activities: Loans (made to)/repaid from, wholly-owned subsidiaries 121,000 (81,000) (46,000) Increase in investment of subsidiary (10,000) — — Net cash provided (used) by investing activities 111,000 (81,000) (46,000) Cash Flows From Financing Activities: Net borrowings on notes payable to banks (113,392) 81,000 60,500 Proceeds from note payable to GSWC — — (26,000) Repayment of note payable to GSWC — — 26,000 Dividends paid (61,195) (56,356) (51,689) Net cash provided (used) by financing activities (174,587) 24,644 8,811 Net change in cash and cash equivalents 3,454 42 (390) Cash and equivalents at beginning of period 93 51 441 Cash and equivalents at the end of period $ 3,547 $ 93 $ 51 The accompanying condensed notes are an integral part of these condensed financial statements. Note 1 — Basis of Presentation The accompanying condensed financial statements of AWR (parent) should be read in conjunction with the consolidated financial statements and notes thereto of American States Water Company and subsidiaries (“Registrant”) included in Part II, Item 8 of this Form 10-K. AWR’s (parent) significant accounting policies are consistent with those of Registrant and its wholly owned subsidiaries, Golden State Water Company (“GSWC”), Bear Valley Electric Service, Inc. (“BVES”) and American States Utility Services, Inc. (“ASUS”), except that all subsidiaries are accounted for as equity method investments. Related-Party Transactions: As further discussed in Note 2 — Notes Payable to Banks , AWR (parent) currently has access to a $165.0 million syndicated credit facility. AWR (parent) borrows under this facility and provides funds to ASUS in support of their operations and itself. Prior to the new credit agreement in June 2023, described below, AWR (parent) had a credit facility with access of up to $280.0 million and had provided funds to both GSWC and ASUS in support of their operations. Any amounts owed to AWR (parent) for borrowings under this facility are reflected as intercompany receivables on the Condensed Balance Sheets. The interest rate charged to its subsidiaries is sufficient to cover AWR (parent)’s interest cost under the credit facility. AWR may, from time to time, also make equity investments in its subsidiaries. In October 2020, AWR (parent) issued an interest-bearing promissory note to GSWC, which expired in May 2023. Under the terms of the note, AWR (parent) was permitted to borrow from GSWC amounts up to $30.0 million for working capital purposes. AWR (parent) agreed to pay any unpaid principal amounts outstanding under this note, plus accrued interest. During 2021, AWR (parent) borrowed and repaid a total of $26.0 million from GSWC under the terms of the note. There were no borrowings or repayments made during 2022 and 2023. As of December 31, 2023 and 2022, there were no amounts outstanding under this note. In January 2023, the Board of Directors approved the issuance of one GSWC Common Share to AWR (parent) for $10.0 million. In January 2023, GSWC issued $130.0 million in unsecured long-term notes in a private placement. GSWC used the proceeds from both the issuance of equity and long-term debt to pay-off all intercompany borrowings from AWR (parent). AWR (parent) guarantees performance of ASUS’s contracts with the U.S. government and agrees to provide necessary resources, including financing, which are necessary to assure the complete and satisfactory performance of such contracts. Note 2 — Note Payable to Banks On June 28, 2023, AWR (parent) entered into a new credit agreement with a term of five The new credit agreement provides for a $150.0 million unsecured revolving credit facility. Under the credit agreement, the borrowing capacity may be expanded up to an additional amount of $75 million, subject to the lenders’ approval. The aggregate amount that may be outstanding under letters of credit is $10.0 million. Loans may be obtained under the credit facilities at the option of AWR (parent) and bear interest at rates based on either a base rate plus an applicable margin or an adjusted term SOFR determined by the SOFR administrator, currently the Federal Reserve Bank of New York, plus an applicable margin. The applicable margin depends upon AWR’s credit ratings. On November 6, 2023, the credit facility was amended to increase the borrowing capacity from $150.0 million to $165.0 million. In connection with the increase in borrowing capacity, the amendment also provides for the addition of a new bank to the existing syndicate group participating in AWR’s credit facility. As of December 31, 2023, outstanding borrowings under its credit facility of $141.5 million have been classified as non-current liabilities on its Condensed Balance Sheet. The credit agreement contains affirmative and negative covenants and events of default customary for credit facilities of this type, including, among other things, affirmative covenants relating to compliance with law and material contracts, and negative covenants relating to additional in indebtedness, liens, investments, restricted payments and asset sales by AWR (parent) and its subsidiaries, other than BVES. AWR (parent) is not permitted to have a consolidated total capitalization ratio (as defined in the credit agreement), excluding BVES, greater than 0.65 to 1.00 at the end of any quarter. Default under any indebtedness of any subsidiary of AWR (parent), other than BVES, will result in a default under its credit agreement. As of December 31, 2023, AWR (parent) had a debt ratio of 0.54 to 1.00. AWR (parent)'s borrowing activities (excluding letters of credit) for the years ended December 31, 2023 and 2022 were as foll ows: December 31, (in thousands, except percent) 2023 2022 Balance Outstanding at December 31, $ 141,500 $ 255,500 Interest Rate at December 31, 6.45 % 5.07 % Average Amount Outstanding $ 156,533 $ 213,758 Weighted Average Annual Interest Rate 5.92 % 2.56 % Maximum Amount Outstanding $ 257,500 $ 255,500 Note 3 — Income Taxes AWR (parent) receives a tax benefit for expenses incurred at the parent-company level. AWR (parent) also recognizes the effect of AWR’s consolidated California unitary apportionment, which is beneficial or detrimental depending on a combination of the profitability of AWR’s consolidated non-California activities as well as the proportion of its consolidated California sales to total sales. Note 4 — Dividend from Subsidiaries Cash dividends in the amount of $71.4 million , $56.4 million and $38.3 million were paid to AWR (parent) by its wholly owned subsidiaries during the years ended December 31, 2023, 2022 and 2021, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income | $ 124,921 | $ 78,396 | $ 94,347 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”), Bear Valley Electric Service Inc. (“BVES”), and American States Utility Services, Inc. (“ASUS”) (and its subsidiaries, Fort Bliss Water Services Company (“FBWS”), Old Dominion Utility Services, Inc. (“ODUS”), Terrapin Utility Services, Inc. (“TUS”), Palmetto State Utility Services, Inc. (“PSUS”), Old North Utility Services, Inc. (“ONUS”), Emerald Coast Utility Services, Inc. (“ECUS”), Fort Riley Utility Services, Inc. (“FRUS”), Bay State Utility Services LLC (“BSUS”), and Patuxent River Utility Services LLC (“PRUS”)). AWR and its subsidiaries may be collectively referred to as “Registrant” or “the Company.” AWR, through its wholly owned subsidiaries, serves over one million people in ten states. GSWC and BVES are both California public utilities. GSWC engages in the purchase, production, distribution and sale of water throughout California serving approximately 264,100 customers connections. BVES distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,800 customers connections. The California Public Utilities Commission (“CPUC”) regulates GSWC’s and BVES’s businesses in matters including properties, rates, services, facilities, and transactions between GSWC, BVES, and their affiliates. ASUS, through its subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various U.S. military bases primarily pursuant to initial 50-year, firm-fixed-price contracts with the U.S. government. These contracts are subject to annual economic price adjustments and modifications for changes in circumstances, changes in laws and regulations and additions to the contract value for new construction of facilities at the military bases. ASUS also from time to time performs construction services on military bases as a subcontractor or pursuant to a task order agreement. On August 15, 2023, ASUS was awarded a new 50-year contract by the U.S. government to operate, maintain, and provide construction management services for the water distribution and wastewater collection and treatment facilities at Naval Air Station Patuxent River, a United States Navy air station located in Maryland. The initial firm-fixed-price value of the contract is estimated at $349 million over a 50-year period and is subject to annual economic price adjustments. This initial value is also subject to adjustment based on the results of a joint inventory of assets to be performed during the transition period and will be finalized during the first year of operations. On September 29, 2023, ASUS was awarded a new 15-year contract by the U.S. government, that is different than ASUS's other existing 50-year contracts, to operate, maintain, and provide construction management services for the water distribution and wastewater collection and treatment facilities at Joint Base Cape Cod (“JBCC”) located in Massachusetts. Under this contract, ASUS will have the opportunity to perform work at JBCC through the periodic issuance of task orders by the U.S. government for up to a maximum initial firm-fixed-price value of $45.0 million over a 15-year period, subject to adjustments as task orders are issued. In September 2023, the first task order was issued with a value of $2.3 million to perform an evaluation, construction and transition services that are scheduled for completion in 2024. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or its subsidiaries. Basis of Presentation : The consolidated financial statements and notes thereto are presented in a combined report filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. AWR owns all of the outstanding common shares of GSWC, BVES and ASUS. ASUS owns all of the outstanding common shares of its subsidiaries. The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Intercompany transactions and balances have been eliminated in the AWR consolidated financial statements. |
Related Party Transactions | Related-Party and Intercompany Transactions : As discussed in Note 9, prior to AWR and GSWC entering into new separate credit agreements on June 28, 2023 that replaced AWR’s previous credit agreement, AWR borrowed under its credit facility and provided funds to both GSWC and ASUS in support of their operations. Under AWR’s new credit facility, AWR borrows and continues to provide funds to ASUS in support of its operations, through an intercompany borrowing agreement, and AWR (parent). The interest rate charged to ASUS is sufficient to cover AWR’s interest expense under the credit facility. GSWC’s new credit facility provides support for its water operations. BVES has a separate credit facility and has also issued long-term debt to support its operations. Furthermore, GSWC, BVES and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC allocates certain corporate office administrative and general costs to its affiliates, BVES and ASUS, using allocation factors approved by the CPUC. During the years ended December 31, 2023, 2022 and 2021, GSWC allocated to ASUS approximately $5.0 million , $5.2 million and $5.3 million, respectively, of corporate office administrative and general costs. During the years ended December 31, 2023, 2022 and 2021, GSWC allocated corporate office administrative and general costs to BVES of approximately $3.5 million , $2.7 million and $2.8 million, respectively. |
COVID-19 Impact | COVID-19 : During 2021, as a response to orders issued by the CPUC and the governor of California related to the COVID-19 pandemic, GSWC and BVES suspended customer service disconnections for nonpayment at the time. However, pursuant to the CPUC’s decision in the Second Phase of the Low-Income Affordability Rulemaking, the moratorium on water-service disconnections due to non-payment of past-due amounts billed to residential customers expired on February 1, 2022, with service disconnections due to nonpayment for delinquent residential customers resuming in June 2022. Payment plan options have been offered to customers; however, GSWC has continued to experience non-payments of past-due bills from customers as a result of the lingering effects of the pandemic during 2023. The CPUC authorized GSWC and BVES to track incremental costs, including bad debt expense, in excess of what is included in their respective revenue requirements incurred as a result of the pandemic in COVID-19 emergency-related memorandum accounts. In July 2021, the governor of California approved SB-129 Budget Act of 2021, in which nearly $1 billion in relief funding for overdue water customer bills, and nearly $1 billion in relief funding for overdue electric customer bills were included. The water customer relief funding was managed by the State Water Resources Control Board (“SWRCB”) through the California Water and Wastewater Arrearage Payment Program (“Arrearage Program”) to provide assistance to customers for their water debt accrued during the COVID-19 pandemic by remitting federal funds that the state received from the American Rescue Plan Act of 2021 to the utility on behalf of eligible customers. In addition, on July 10, 2023, the governor of California signed a budget trailer bill expanding the Arrearage Program. This new Extended Water and Wastewater Arrearage Program (“Extended Arrearage Program”) extended the COVID relief period to December 31, 2022, with the state legislature allocating an additional $600 million in federal funding. In January 2022, GSWC received $9.5 million in COVID relief funds through the Arrearage Program to provide assistance to customers for their water debt accrued during the COVID-19 pandemic by remitting federal funds that the state received from the American Rescue Plan Act of 2021 to the utility on behalf of eligible customers. In December 2023, GSWC filed an application with the SWRCB through the Extended Arrearage Program to obtain additional COVID relief funds to provide further assistance to its customers for their water debt accrued during the COVID-19 pandemic. GSWC has received confirmation from SWRCB that it is currently processing GSWC's application and expects to disburse approximately $3.5 million in additional COVID relief funds through this Program. All funds to be received will be applied to customer eligible delinquent balances. In February and December 2022, BVES received $321,000 and $152,000, respectively, from the state of California for similar customer relief funding for unpaid electric customer bills incurred during the pandemic. The CPUC requires that amounts tracked in GSWC’s and BVES’s COVID-19 memorandum accounts for unpaid customer bills be first offset by any (i) federal and state relief for water or electric utility bill debt, and (ii) customer payments through payment plan arrangements, prior to receiving recovery from customers at large. As of December 31, 2023, GSWC fully offset its bad debt-related CEMA balance as a result of additional COVID relief funds approved. In addition, BVES has filed to recover the remaining balance in its COVID-19 memorandum account through its general rate case application filed in August 2022. On April 10, 2023, the Biden Administration terminated the COVID-19 national emergency. The COVID-19 emergency-related memorandum accounts for GSWC and BVES expired when the COVID-19 national emergency ended. |
Utility Accounting | Utility Accounting : Registrant’s accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”), including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the CPUC and, to the extent applicable, the Federal Energy Regulatory Commission. GSWC and BVES have incurred various costs and received various credits reflected as regulatory assets and liabilities. Accounting for such costs and credits as regulatory assets and liabilities is in accordance with the guidance for accounting for the effects of certain types of regulation. This guidance sets forth the application of GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. Under such accounting guidance, rate-regulated entities defer costs and credits on the balance sheet as regulatory assets and liabilities when it is probable that those costs and credits will be recognized in the ratemaking process in a period different from the period in which they would have been reflected in income by an unregulated company. These regulatory assets and liabilities are then recognized in the income statement in the period in which the same amounts are reflected in the rates charged for service. The amounts included as regulatory assets and liabilities that will be collected or refunded over a period exceeding one year are classified as long-term assets and liabilities as of December 31, 2023 and 2022. Regulatory assets are reviewed for recoverability each reporting period. If a regulatory asset is no longer deemed probable of recovery, the deferred cost is charged to earnings. |
Property and Depreciation | Property and Depreciation : Registrant’s property consists primarily of regulated utility plant at GSWC and BVES. GSWC and BVES capitalize, as utility plant, the cost of construction and the cost of additions, betterments and replacements of retired units of property. Such costs include labor, material and certain indirect costs. Indirect costs are allocated to each project based on total costs. Water systems acquired are recorded at estimated original cost of utility plant when first devoted to utility service and the applicable depreciation is recorded to accumulated depreciation. Any difference between the estimated original cost, less accumulated depreciation, and the purchase price, if recognized by the CPUC, is recorded as an acquisition adjustment within utility plant. Depreciation for the regulated utilities is computed on the straight-line, remaining-life basis, group method, in accordance with the applicable ratemaking process. The provision for depreciation expressed as a percentage of the aggregate depreciable asset balances for regulated utilities was 2.2% fo r each of the years 2023, 2022 and 2021. Depreciation expense for regulated utilities, excluding amortization expense and depreciation on transportation equipment, totale d $38.3 million, $37.3 million and $35.5 million for the years ended December 31, 2023, 2022 and 2021, respectively. Depreciation computed on regulated utilities’ transportation equipment is recorded in other operating expenses and totaled $851,000 , $382,000 and $379,000 for the years 2023, 2022 and 2021, respectively. For the year ended December 31, 2023, approximately $212,000 of additional depreciation expense on GSWC's transportation equipment was recorded that relates to the cumulative retroactive impact for the full year of 2022 approved in the CPUC final decision in GSWC's general rate case that resulted from an increase to the transportation equipment composite depreciation rates that are retroactive to January 1, 2022. Expenditures for maintenance and repairs are expensed as incurred. Retired property costs, including costs of removal, are charged to the accumulated provision for depreciation. Estimated useful lives of regulated utilities’ utility plant, as authorized by the CPUC, are as follows: Source of water supply 20 years to 60 years Pumping 26 years to 41 years Water treatment 26 years to 32 years Transmission and distribution 15 years to 80 years Generation 40 years Other plant 5 years to 62 years Non-regulated property consists primarily of equipment utilized by ASUS and its subsidiaries for its operations. This property is stated at cost, net of accumulated depreciation, which is calculated using the straight-line method over the useful lives of the assets. |
Asset Retirement Obligation | Asset Retirement Obligations : GSWC has a legal obligation for the retirement of its wells, which by law need to be properly capped at the time of removal. As such, GSWC incurs asset retirement obligations. GSWC records the fair value of a liability for these asset retirement obligations in the period in which they are incurred. When the liability is initially recorded, GSWC capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, GSWC either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. Retirement costs have historically been recovered through rates subsequent to the retirement costs being incurred. Accordingly, recoverability of GSWC’s asset retirement obligations are reflected as a regulatory asset (Note 3). GSWC also reflects the loss or gain at settlement as a regulatory asset or liability on the balance sheet. With regards to removal costs associated with certain other long-lived assets, such as water mains, distribution and transmission assets, asset retirement obligations have not been recognized as GSWC believes there is no legal obligation to do so. There are no CPUC rules or regulations that require GSWC to remove any of its other long-lived assets. In addition, GSWC’s water pipelines are not subject to regulation by any federal regulatory agency. GSWC has franchise agreements with various municipalities in order to use the public right of way for utility purposes (i.e., operate water distribution and transmission assets), and if certain events occur in the future, GSWC could be required to remove or relocate certain of its pipelines. However, it is not possible to estimate an asset retirement amount since the timing and the amount of assets that may be required to be removed, if any, is not known. Amounts recorded for asset retirement obligations are subject to various assumptions and determinations, such as determining whether a legal obligation exists to remove assets, estimating the fair value of the costs of removal, when final removal will occur and the credit-adjusted risk-free interest rates to be utilized on discounting future liabilities. Changes that |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets : Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable in accordance with accounting guidance for impairment or disposal of long-lived assets. Registrant would recognize an impairment loss on its regulated assets only if the carrying value amount of a long-lived asset is not recoverable from customer rates authorized by the CPUC. Impairment loss is measured as the excess of the carrying value over the amounts recovered in customer rates. For the years ended December 31, 2023, 2022 and 2021, no impairment loss was incurred. |
Goodwill | Goodwill : At December 31, 2023 and 2022, AWR had approximately $1.1 million of goodwill. The $1.1 million goodwill arose from ASUS’s acquisition of a subcontractor’s business at some of its subsidiaries. In accordance with the accounting guidance for testing goodwill, AWR annually assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. For 2023 and 2022, AWR’s assessment of qualitative factors did not indicate that an impairment had occurred for goodwill at ASUS. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Accounts Receivable | Accounts Receivable : Accounts receivable is reported on the balance sheet net of any allowance for doubtful accounts. The allowance for doubtful accounts is Registrant’s best estimate of the amount of probable credit losses in Registrant’s existing accounts receivable from its water and electric customers, and is determined based on expected losses rather than incurred losses. Registrant reviews the allowance for doubtful accounts quarterly. Account balances are written off against the allowance when it is probable the receivable will not be recovered. When utility customers request extended payment terms, credit is extended based on regulatory guidelines, and collateral is not required. |
Materials and Supplies | Materials and Supplies |
Interest | Interest : Interest incurred during the construction of capital assets has generally not been capitalized for financial reporting purposes as such policy is not followed in the ratemaking process. Interest expense is generally recovered through the regulatory process. At times, the CPUC has authorized certain capital projects to be filed for revenue recovery with advice letters when those projects are completed. During the time that such projects are under development and construction, GSWC or BVES may record an allowance for funds used during construction (“AFUDC”) as a component of construction work in progress to offset the cost of financing project construction. After construction is completed, GSWC and BVES is permitted to recover these costs through the inclusion in rate base. For the year ended December 31, 2023, 2022 and 2021, BVES recorded $14,000 |
Debt Issuance Costs and Redemption Premiums | Debt Issuance Costs and Redemption Premiums |
Advance for Construction and Contributions in Aid | Advances for Construction and Contributions in Aid of Construction |
Fair Value of Financial Instruments, Policy | Fair Value of Financial Instruments : For cash and cash equivalents, accounts receivable, accounts payable and short-term debt, the carrying amount is assumed to approximate fair value due to the short-term nature of the amounts. The table below estimates the fair value of long-term debt held by AWR and GSWC, respectively. Rates available to AWR and GSWC at December 31, 2023 and 2022 for debt with similar terms and remaining maturities were used to estimate fair value for long-term debt. Changes in the assumptions will produce differing results. 2023 2022 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—AWR (1)(2) $ 579,047 $ 556,214 $ 450,373 $ 424,151 2023 2022 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—GSWC (1) $ 544,047 $ 522,883 $ 415,373 $ 391,198 (1) Excludes debt issuance costs and redemption premiums. (2) Includes debt held by BVES of $35.0 million as of December 31, 2023 and 2022, respectively. The accounting guidance for fair value measurements applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Under the accounting guidance, Registrant has made fair value measurements that are classified and disclosed in one of the following three categories: Level 1 : Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 : Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or Level 3 : Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Registrant makes fair value measurements on its publicly issued notes, private placement notes and other long-term debt using current U.S. corporate debt yields for similar debt instruments. Under the fair value guidance, these are classified as Level 2, which consists of quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. The following table sets forth by level, within the fair value hierarchy, Registrant’s long-term debt measured at fair value as of December 31, 2023: (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—AWR — $ 556,214 — $ 556,214 (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—GSWC — $ 522,883 — $ 522,883 |
Stock-Based Awards | Stock-Based Awards : AWR has issued stock-based awards to its employees under stock incentive plans. AWR has also issued stock-based awards to its Board of Directors under non-employee directors stock plans. Registrant applies the provisions in the accounting guidance for share-based payments in accounting for all of its stock-based awards. See Note 13 for further discussion. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Public Utility Property, Plant, and Equipment | Estimated useful lives of regulated utilities’ utility plant, as authorized by the CPUC, are as follows: Source of water supply 20 years to 60 years Pumping 26 years to 41 years Water treatment 26 years to 32 years Transmission and distribution 15 years to 80 years Generation 40 years Other plant 5 years to 62 years |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Rates available to AWR and GSWC at December 31, 2023 and 2022 for debt with similar terms and remaining maturities were used to estimate fair value for long-term debt. Changes in the assumptions will produce differing results. 2023 2022 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—AWR (1)(2) $ 579,047 $ 556,214 $ 450,373 $ 424,151 2023 2022 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—GSWC (1) $ 544,047 $ 522,883 $ 415,373 $ 391,198 (1) Excludes debt issuance costs and redemption premiums. (2) Includes debt held by BVES of $35.0 million as of December 31, 2023 and 2022, respectively. |
Fair Value, Liabilities Measured on Recurring Basis | The following table sets forth by level, within the fair value hierarchy, Registrant’s long-term debt measured at fair value as of December 31, 2023: (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—AWR — $ 556,214 — $ 556,214 (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—GSWC — $ 522,883 — $ 522,883 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | (dollar in thousands) For The Year Ended December 31, 2023 For The Year Ended December 31, 2022 For The Year Ended December 31, 2021 Water: Tariff-based revenues $ 394,623 $ 324,838 $ 345,562 CPUC-approved surcharges (cost-recovery activities) 2,955 2,461 3,280 Other 2,753 2,351 2,227 Water revenues from contracts with customers 400,331 329,650 351,069 WRAM under/(over)-collection (alternative revenue program) 33,142 10,952 (3,957) Total water revenues (1) 433,473 340,602 347,112 Electric: Tariff-based revenues 40,130 39,750 37,124 CPUC-approved surcharges (cost-recovery activities) 567 144 310 Electric revenues from contracts with customers 40,697 39,894 37,434 BRRAM under/(over)-collection (alternative revenue program) 1,135 92 911 Total electric revenues 41,832 39,986 38,345 Contracted services: Water 75,785 68,626 71,210 Wastewater 44,609 42,314 42,186 Contracted services revenues from contracts with customers 120,394 110,940 113,396 Total AWR revenues $ 595,699 $ 491,528 $ 498,853 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | The opening and closing balances of the receivable from the U.S. government, contract assets and contract liabilities from contracts with customers, which related entirely to ASUS, are as follows: (dollar in thousands) December 31, 2023 December 31, 2022 Unbilled receivables $ 9,693 $ 10,125 Receivable from the U.S. government $ 91,489 $ 85,456 Contract assets $ 14,378 $ 14,982 Contract liabilities $ 1,352 $ 903 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Schedule of regulatory assets, less regulatory liabilities in the consolidated balance sheets for continuing operations | Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: December 31, (dollars in thousands) 2023 2022 GSWC 2022/2023 general rate case memorandum accounts (unbilled revenue) $ 52,795 $ — Water revenue adjustment mechanism, net of the modified cost balancing account 41,545 31,803 Asset retirement obligations (Note 1) 7,099 6,411 COVID-19 memorandum accounts 1,199 3,478 Flowed-through deferred income taxes, net (Note 11) 3,190 (1,134) Low income rate assistance balancing accounts 5,763 2,526 Pensions and other post-retirement obligations (Note 12) (4,867) 738 Other regulatory assets 9,462 10,289 Excess deferred income taxes (Note 11) (70,189) (71,870) Other regulatory liabilities (268) (8,815) Total GSWC $ 45,729 $ (26,574) BVES Derivative instrument memorandum account (Note 5) 2,360 (11,847) Wildfire mitigation and other fire prevention related costs memorandum accounts 17,716 13,007 Electric supply cost adjustment mechanism 2,583 3,627 Other regulatory assets 7,697 4,338 Other regulatory liabilities (6,578) (8,005) Total AWR $ 69,507 $ (25,454) |
Utility Plant and Intangible _2
Utility Plant and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Utility Plant and Intangible Assets | |
Schedule of Public Utility Property Plant and Equipment Components [Table Text Block] | The following table shows Registrant’s utility plant (regulated utility plant and non-regulated utility property) by major asset class: AWR GSWC (dollars in thousands) 2023 2022 2023 2022 Water Land $ 18,290 $ 18,427 $ 18,290 $ 18,427 Intangible assets 30,917 30,511 30,917 30,511 Source of water supply 111,112 109,918 111,112 109,918 Pumping 234,264 227,668 234,264 227,668 Water treatment 98,533 90,411 98,533 90,411 Transmission and distribution 1,489,974 1,431,437 1,489,974 1,431,437 Other 140,060 136,162 99,837 98,096 2,123,150 2,044,534 2,082,927 2,006,468 Electric Transmission and distribution 126,143 105,499 — — Generation 12,583 12,583 — — Other (1) 17,745 15,733 — — 156,471 133,815 — — Less — accumulated depreciation (624,472) (606,231) (543,135) (530,925) Construction work in progress 237,131 181,648 195,742 141,175 Net utility plant $ 1,892,280 $ 1,753,766 $ 1,735,534 $ 1,616,718 (1) Includes intangible assets of $1.2 million for the years ended December 31, 2023 and 2022 for studies performed. |
Schedule of components of intangible assets | As of December 31, 2023 and 2022, intangible assets consist of the following: Weighted Average Amortization AWR December 31, GSWC December 31, (dollars in thousands) Period 2023 2022 2023 2022 Intangible assets : Conservation programs 3 years $ 9,486 $ 9,486 $ 9,486 $ 9,486 Water and service rights (2) 30 years 8,695 8,695 8,124 8,124 Water planning studies 14 years 14,164 13,757 12,926 12,519 Total intangible assets 32,345 31,938 30,536 30,129 Less — accumulated amortization (27,275) (26,811) (26,294) (25,374) Intangible assets, net of amortization $ 5,070 $ 5,127 $ 4,242 $ 4,755 Intangible assets not subject to amortization (3) $ 383 $ 383 $ 382 $ 382 (2) Includes intangible assets of $571,000 for contracted services included in “Other Property and Investments” on the consolidated balance sheets as of December 31, 2023 and 2022. (3) |
Schedule of estimated future consolidated amortization expenses related to intangible assets | Estimated future consolidated amortization expense related to intangible assets are as follows (in thousands): Amortization 2024 $ 911 2025 911 2026 911 2027 911 2028 911 Total $ 4,555 |
Schedule of reconciliation of the beginning and ending aggregate carrying amount of the asset retirement obligations | The following is a reconciliation of the beginning and ending aggregate carrying amount of asset retirement obligations, which are included in “Other Credits” on the balance sheets as of December 31, 2023 and 2022: (dollars in thousands) GSWC Obligation at December 31, 2021 $ 9,717 Accretion 386 Obligation at December 31, 2022 $ 10,103 Accretion 406 Obligation at December 31, 2023 $ 10,509 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GSWC | |
Derivative instruments | |
Schedule of changes in the fair value of the derivative | The following table presents changes in the fair value of the Level 3 derivatives for the years 2023 and 2022: (dollars in thousands) 2023 2022 Fair value at beginning of the period $ 11,847 $ 4,441 Unrealized (losses) gains on purchase power contracts (14,207) 7,406 Fair value at end of the period $ (2,360) $ 11,847 |
Earnings Per Share _ Capital _2
Earnings Per Share / Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating basic net income per share | The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used to calculate basic EPS: Basic: For The Years Ended December 31, (in thousands, except per share amounts) 2023 2022 2021 Net income $ 124,921 $ 78,396 $ 94,347 Less: impact from participating securities 372 197 244 Total income available to common shareholders $ 124,549 $ 78,199 $ 94,103 Weighted average Common Shares outstanding, basic 36,976 36,955 36,921 Basic earnings per Common Share $ 3.37 $ 2.12 $ 2.55 |
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating diluted net income per share | The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used to calculate diluted EPS: Diluted: For The Years Ended December 31, (in thousands, except per share amounts) 2023 2022 2021 Common shareholders earnings, basic $ 124,549 $ 78,199 $ 94,103 Undistributed earnings for dilutive stock options and restricted stock units 189 55 110 Total common shareholders earnings, diluted $ 124,738 $ 78,254 $ 94,213 Weighted average Common Shares outstanding, basic 36,976 36,955 36,921 Stock-based compensation (1) 101 84 89 Weighted average Common Shares outstanding, diluted 37,077 37,039 37,010 Diluted earnings per Common Share $ 3.36 $ 2.11 $ 2.55 (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 115,684, 96,988 and 100,020 restricted stock units, including performance awards to officers of AWR, at December 31, 2023, 2022 and 2021, respectively, were deemed to be outstanding in accordance with accounting guidance on earnings per share. |
Bank Debt (Tables)
Bank Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Bank Debt | |
Schedule of Short-term Debt | Registrant’s borrowing activities (excluding letters of credit) for the years ended December 31, 2023 and 2022 were as follows: December 31, (in thousands, except percent) 2023 2022 Balance Outstanding at December 31, $ 333,500 $ 277,500 Interest Rate at December 31, 6.33% ~ 6.96% 5.07% ~ 5.89% Average Amount Outstanding $ 243,355 $ 226,556 Weighted Average Annual Interest Rate 6.11 % 2.55 % Maximum Amount Outstanding $ 333,500 $ 277,500 AWR (parent)'s borrowing activities (excluding letters of credit) for the years ended December 31, 2023 and 2022 were as foll ows: December 31, (in thousands, except percent) 2023 2022 Balance Outstanding at December 31, $ 141,500 $ 255,500 Interest Rate at December 31, 6.45 % 5.07 % Average Amount Outstanding $ 156,533 $ 213,758 Weighted Average Annual Interest Rate 5.92 % 2.56 % Maximum Amount Outstanding $ 257,500 $ 255,500 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of annual maturities of all long-term debt, including capitalized leases | Registrant’s annual maturities of all long-term debt at December 31, 2023 are as follows (in thousands): 2024 $ 353 2025 370 2026 8,116 2027 403 2028 55,421 Thereafter 514,384 Total $ 579,047 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of significant components of the deferred tax assets and liabilities from continuing operations | The significant components of the deferred tax assets and liabilities as reflected in the balance sheets at December 31, 2023 and 2022 are: AWR GSWC December 31, December 31, (dollars in thousands) 2023 2022 2023 2022 Deferred tax assets: Regulatory-liability-related (1) $ 32,042 $ 31,330 $ 30,407 $ 29,623 Contributions and advances 6,660 6,544 6,981 6,896 Other 5,924 7,424 6,041 7,874 Total deferred tax assets $ 44,626 $ 45,298 $ 43,429 $ 44,393 Deferred tax liabilities: Fixed assets $ (161,820) $ (155,955) $ (155,131) $ (150,133) Regulatory-asset-related: depreciation and other (36,337) (30,226) (33,242) (28,489) Balancing and memorandum accounts (non-flowed-through) (8,046) (8,794) (2,514) (4,559) Total deferred tax liabilities (206,203) (194,975) (190,887) (183,181) Accumulated deferred income taxes, net $ (161,577) $ (149,677) $ (147,458) $ (138,788) |
Schedule of current and deferred components of income tax expense from continuing operations | The current and deferred components of income tax expense are as follows: AWR Year Ended December 31, (dollars in thousands) 2023 2022 2021 Current Federal $ 26,327 $ 14,845 $ 19,592 State 10,489 6,016 7,270 Total current tax expense $ 36,816 $ 20,861 $ 26,862 Deferred Federal $ 4,157 $ 2,991 $ 2,802 State 626 (188) 759 Total deferred tax (benefit) expense 4,783 2,803 3,561 Total income tax expense $ 41,599 $ 23,664 $ 30,423 GSWC Year Ended December 31, (dollars in thousands) 2023 2022 2021 Current Federal $ 22,564 $ 10,582 $ 13,698 State 10,176 4,909 6,089 Total current tax expense $ 32,740 $ 15,491 $ 19,787 Deferred Federal $ 2,867 $ 1,507 $ 2,251 State 82 (652) 57 Total deferred tax (benefit) expense 2,949 855 2,308 Total income tax expense $ 35,689 $ 16,346 $ 22,095 |
Schedule of reconciliations of the effective tax rates to the federal statutory rate | : AWR Year Ended December 31, (dollars in thousands) 2023 2022 2021 Federal taxes on pretax income at statutory rate $ 34,969 $ 21,433 $ 26,202 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 9,785 4,335 6,425 Excess deferred tax amortization (1,648) (1,311) (1,356) Flow-through on fixed assets 1,067 1,076 1,069 Flow-through on removal costs (2,255) (1,802) (1,962) Investment tax credit (71) (71) (71) Other – net (248) 4 116 Total income tax expense from operations $ 41,599 $ 23,664 $ 30,423 Pretax income from operations $ 166,520 $ 102,060 $ 124,770 Effective income tax rate 25.0 % 23.2 % 24.4 % GSWC Year Ended December 31, (dollars in thousands) 2023 2022 2021 Federal taxes on pretax income at statutory rate $ 29,063 $ 14,724 $ 19,175 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 9,169 3,119 4,923 Excess deferred tax amortization (1,681) (1,130) (1,184) Flow-through on fixed assets 1,041 1,010 1,008 Flow-through on removal costs (2,225) (1,715) (1,954) Investment tax credit (71) (71) (71) Other – net 393 409 198 Total income tax expense from operations $ 35,689 $ 16,346 $ 22,095 Pretax income from operations $ 138,397 $ 70,116 $ 91,310 Effective income tax rate 25.8 % 23.3 % 24.2 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Pension Plan's funded status and amounts recognized in balance sheets and the components of net pension cost and accrued post-retirement liability | The following table sets forth the Pension Plan’s and post-retirement medical plan’s funded status and amounts recognized in Registrant’s balance sheets and the components of net pension cost and accrued liability at December 31, 2023 and 2022: Pension Benefits Post-Retirement Medical (dollars in thousands) 2023 2022 2023 2022 Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 190,678 $ 259,751 $ 2,014 $ 2,686 Service cost 3,196 5,644 130 129 Interest cost 10,142 7,401 106 60 Actuarial (gain) loss 8,525 (72,710) 49 (570) Benefits/expenses paid (9,578) (9,408) (334) (291) Projected benefit obligation at end of year $ 202,963 $ 190,678 $ 1,965 $ 2,014 Changes in Plan Assets: Fair value of plan assets at beginning of year $ 186,906 $ 233,524 $ 11,240 $ 13,773 Actual return on plan assets 25,031 (40,299) 1,921 (2,242) Employer contributions 2,946 3,089 265 263 Benefits/expenses paid (9,578) (9,408) (599) (554) Fair value of plan assets at end of year $ 205,305 $ 186,906 $ 12,827 $ 11,240 Funded Status: Overfunded/(underfunded) amount recognized $ 2,342 $ (3,772) $ 10,862 $ 9,226 Pension Benefits Post-Retirement (dollars in thousands) 2023 2022 2023 2022 Amounts recognized on the balance sheets: Non-current assets $ 2,342 $ — $ 10,862 $ 9,226 Current liabilities — — — — Non-current liabilities — (3,772) — — Net amount recognized $ 2,342 $ (3,772) $ 10,862 $ 9,226 Amounts recognized in regulatory assets (liabilities) consist of: Prior service cost (credit) $ 1,454 $ 1,889 $ — $ — Net loss (gain) (1,899) 4,123 (6,272) (5,846) Regulatory assets (liabilities) (445) 6,012 (6,272) (5,846) Prefunded plan costs (1,897) (2,240) (4,590) (3,380) Net liability (asset) recognized $ (2,342) $ 3,772 $ (10,862) $ (9,226) Changes in plan assets and benefit obligations recognized in regulatory assets (liabilities): Regulatory asset (liability) at beginning of year $ 6,012 $ 25,691 $ (5,846) $ (9,839) Net (loss) gain (6,023) (19,245) (1,395) 2,259 New prior service cost — — — — Amortization of prior service (cost) credit (434) (434) — — Amortization of net gain (loss) — — 969 1,734 Total change in regulatory asset (liability) (6,457) (19,679) (426) 3,993 Regulatory asset (liability) at end of year $ (445) $ 6,012 $ (6,272) $ (5,846) Net periodic pension costs $ 3,289 $ 313 $ (1,210) $ (2,132) Change in regulatory asset (liability) (6,457) (19,679) (426) 3,993 Total recognized in net periodic pension cost and regulatory asset (liability) $ (3,168) $ (19,366) $ (1,636) $ 1,861 Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 202,963 $ 190,678 $ 1,965 $ 2,014 Accumulated benefit obligation $ 192,986 $ 181,376 N/A N/A Fair value of plan assets $ 205,305 $ 186,906 $ 12,827 $ 11,240 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 5.16 % 5.41 % 5.04 % 5.34 % Rate of compensation increase * * N/A N/A • Age-graded ranging from 2.5% to 7.0%. The following provides a reconciliation of benefit obligations, funded status of the SERP, as well as a summary of significant estimates at December 31, 2023 and 2022: (dollars in thousands) 2023 2022 Change in Benefit Obligation: Benefit obligation at beginning of year $ 30,807 $ 36,089 Service cost 1,248 1,191 Interest cost 1,644 1,022 Actuarial loss (gain) 840 (6,522) Benefits paid (945) (973) Benefit obligation at end of year $ 33,594 $ 30,807 Changes in Plan Assets: Fair value of plan assets at beginning and end of year — — Funded Status: Net amount recognized as accrued cost $ (33,594) $ (30,807) (in thousands) 2023 2022 Amounts recognized on the balance sheets: Current liabilities $ (942) $ (942) Non-current liabilities (32,652) (29,865) Net amount recognized $ (33,594) $ (30,807) Amounts recognized in regulatory assets consist of: Prior service cost $ — $ — Net loss 2,869 1,995 Regulatory assets 2,869 1,995 Unfunded accrued cost 30,725 28,812 Net liability recognized $ 33,594 $ 30,807 Changes in plan assets and benefit obligations recognized in regulatory assets consist of: Regulatory asset at beginning of year $ 1,995 $ 9,097 Net gain (loss) 840 (6,522) Amortization of prior service credit — — Amortization of net gain (loss) 34 (580) Total change in regulatory asset 874 (7,102) Regulatory asset at end of year $ 2,869 $ 1,995 Net periodic pension cost $ 2,858 $ 2,793 Change in regulatory asset 874 (7,102) Total recognized in net periodic pension and regulatory asset $ 3,732 $ (4,309) Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 33,594 $ 30,807 Accumulated benefit obligation 30,794 28,157 Fair value of plan assets — — Weighted-average assumptions used to determine benefit obligations: Discount rate 5.15 % 5.42 % Rate of compensation increase * * * Age graded from 4.0% to 5.5% per year. |
Schedule of components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool | The components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool, for 2023, 2022 and 2021 are as follows: Pension Benefits Post-Retirement (dollars in thousands, except percent) 2023 2022 2021 2023 2022 2021 Components of Net Periodic Benefits Cost: Service cost $3,196 $5,644 $6,316 $130 $129 $149 Interest cost 10,142 7,401 6,833 106 60 110 Expected return on plan assets (10,483) (13,166) (12,541) (477) (587) (537) Amortization of prior service cost (credit) 434 434 434 — — — Amortization of actuarial (gain) loss — — 3,817 (969) (1,734) (1,417) Net periodic pension cost under accounting standards $3,289 $313 $4,859 $(1,210) $(2,132) $(1,695) Regulatory adjustment (281) — (1,277) — — — Total expense recognized, before surcharges and allocation to overhead pool $3,008 $313 $3,582 $(1,210) $(2,132) $(1,695) Weighted-average assumptions used to determine net periodic cost: Discount rate 5.41 % 2.89 % 2.55 % 5.34 % 2.46 % 2.20 % Expected long-term return on plan assets 5.75 % 5.75 % 6.00 % * * * Rate of compensation increase ** ** ** N/A N/A N/A * 5.50% for union plan and 3.9% for non-union (net of income taxes) in 2023 and 2022 and 5.75% for union plan and 4.0% for non-union (net of income taxes) in 2021. ** Age-graded ranging from 2.5% to 7.0%. The components of SERP expense, before allocation to the overhead pool, for 2023, 2022 and 2021 are as follows: (dollars in thousands, except percent) 2023 2022 2021 Components of Net Periodic Benefits Cost: Service cost $ 1,248 $ 1,191 $ 1,392 Interest cost 1,644 1,022 915 Amortization of net (gain) loss (34) 580 1,678 Net periodic pension cost $ 2,858 $ 2,793 $ 3,985 Weighted-average assumptions used to determine net periodic cost: Discount rate 5.42 % 2.87 % 2.52 % Rate of compensation increase * * * * A ge graded from 4.0% to 5.5% per year. |
Schedule of actual allocation of plan assets | The Committee approves the target asset allocations. Registrant’s pension and post-retirement plan weighted-average asset allocations at December 31, 2023 and 2022, by asset category are as follows: Pension Benefits Post-Retirement Asset Category 2023 2022 2023 2022 Actual Asset Allocations : Equity securities 56 % 56 % 60 % 59 % Debt securities 39 % 39 % 39 % 39 % Real Estate Funds 5 % 5 % — % — % Cash equivalents — % — % 1 % 2 % Total 100 % 100 % 100 % 100 % |
Schedule of pension and post-retirement plan target asset allocations | Equity securities did not include AWR’s Common Shares as of December 31, 2023 and 2022. Target Asset Allocations: Pension Benefits Post-retirement Equity securities 60 % 60 % Debt securities 40 % 40 % Total 100 % 100 % |
Summary of fair value, measured by net asset value, of the pension investment assets | The following tables set forth the fair value, measured by net asset value, of the pension investment assets as of December 31, 2023 and 2022: Net Asset Value as of December 31, 2023 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 814 — N/A N/A Fixed income fund 80,737 — Daily Daily Equity securities : U.S. small/mid cap funds 19,162 — Daily Daily U.S. large cap funds 49,770 — Daily Daily International funds 45,377 — Daily Daily Total equity funds 114,309 — Real estate funds 9,445 — Daily Daily Total $ 205,305 — Net Asset Value as of December 31, 2022 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 801 — N/A N/A Fixed income fund 73,863 — Daily Daily Equity securities : U.S. small/mid cap funds 17,136 — Daily Daily U.S. large cap funds 44,572 — Daily Daily International funds 42,239 — Daily Daily Total equity funds 103,947 Real estate funds 8,295 — Daily Daily Total $ 186,906 — |
Schedule of pension and post-retirement plans' investment assets measured at fair value | The following tables set forth by level, within the fair value hierarchy, the post-retirement plan’s investment assets measured at fair value as of December 31, 2023 and 2022: Fair Value as of December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 189 — — $ 189 Fixed income 5,001 — — 5,001 U.S. equity securities 7,637 — — 7,637 Total investments measured at fair value $ 12,827 — — $ 12,827 Fair Value as of December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 215 — — $ 215 Fixed income 4,380 — — 4,380 U.S. equity securities 6,645 — — 6,645 Total investments measured at fair value $ 11,240 — — $ 11,240 The following tables set forth by level, within the fair value hierarchy, the Rabbi Trust investment assets measured at fair value as of December 31, 2023 and 2022: Fair Value as of December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 6 — — $ 6 Fixed income securities 13,676 — — 13,676 Equity securities 20,461 — — 20,461 Total investments measured at fair value $ 34,143 — — $ 34,143 Fair Value as of December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 9 — — $ 9 Fixed income securities 10,962 — — 10,962 Equity securities 16,560 — — 16,560 Total investments measured at fair value $ 27,531 — — $ 27,531 |
Schedule of estimated future benefit payments | Estimated future benefit payments at December 31, 2023 are as follows (in thousands): Pension Benefits Post-Retirement Medical Benefits 2024 $ 10,604 $ 295 2025 11,089 279 2026 11,539 276 2027 12,075 252 2028 12,568 226 Thereafter 70,006 713 Total $ 127,881 $ 2,041 Benefit Payments : Estimated future benefit payments for the SERP at December 31, 2023 are as follows (in thousands): 2024 $ 942 2025 2,344 2026 2,519 2027 2,630 2028 2,604 Thereafter 13,551 Total $ 24,590 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expenses | The following table presents share-based compensation expenses for the years ended December 31, 2023, 2022 and 2021. These expenses resulting from restricted stock units, including performance awards, are included in administrative and general expenses in AWR’s and GSWC’s statements of income: AWR GSWC For The Years Ended December 31, For The Years Ended December 31, (in thousands) 2023 2022 2021 2023 2022 2021 Stock-based compensation related to: Restricted stock units $ 3,298 $ 2,571 $ 2,566 $ 2,994 $ 2,269 $ 2,313 Total stock-based compensation expense $ 3,298 $ 2,571 $ 2,566 $ 2,994 $ 2,269 $ 2,313 |
Schedule of assumptions used to estimate fair value of each option grant on the grant date using the Black-Scholes option-pricing model | will be earned based on Registrant’s TSR compared to the TSR for a specific peer group of investor-owned water companies. A summary of the status of Registrant’s outstanding performance awards to officers as of December 31, 2023, and changes during the year ended December 31, 2023, is presented below: Number of Weighted Average Performance awards at January 1, 2023 49,435 $ 83.70 Granted 19,696 96.04 Performance criteria adjustment 8,321 91.73 Vested (12,095) 89.59 Performance awards at December 31, 2023 65,357 $ 87.35 |
Summary of the status of Registrant's outstanding restricted stock units to employees and directors | A summary of the status of Registrant’s outstanding RSUs, excluding performance awards, to employees and directors as of December 31, 2023, and changes during the year ended December 31, 2023, is presented below: Number of Weighted Average Restricted share units at January 1, 2023 47,552 $ 49.01 Granted 19,837 94.71 Vested (16,574) 87.28 Forfeited (488) 92.84 Restricted share units at December 31, 2023 50,327 $ 54.00 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of estimated future minimum payments under purchased water supply commitments | GSWC’s estimated future minimum payments under these purchased water supply commitments at December 31, 2023 are as follows (in thousands): 2024 $ 491 2025 441 2026 391 2027 391 2028 213 Thereafter 805 Total $ 2,732 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Supplemental lease information | Registrant’s supplemental lease information for the year ended December 31, 2023 is as follows (in thousands, except for weighted average data): For The Year Ended December 31, 2023 For The Year Ended December 31, 2022 Operating lease costs $2,486 $2,609 Short-term lease costs $147 $198 Weighted average remaining lease term (in years) 4.55 5.27 Weighted-average discount rate 4.0% 3.9% Non-cash transactions Lease liabilities arising from obtaining right-of-use assets $565 $1,569 |
Maturities of operating lease liabilities | Registrant’s future minimum payments under long-term non-cancelable operating leases as of December 31, 2023 are as follows (in thousands): 2024 $ 2,161 2025 2,066 2026 1,816 2027 1,556 2028 1,305 Thereafter 386 Total lease payments 9,290 Less: imputed interest 815 Total lease obligations 8,475 Less: current obligations 1,856 Long-term lease obligations $ 6,619 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of reporting segments information | Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime funded capital expenditures for ASUS's subsidiaries and property installed by developers and conveyed to GSWC and BVES. As Of And For The Year Ended December 31, 2023 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 433,473 $ 41,832 $ 120,394 $ — $ 595,699 Operating income (loss) 159,177 11,196 26,151 216 196,740 Interest expense (income), net 25,726 2,238 1,321 6,061 35,346 Net property, plant and equipment 1,735,534 140,279 16,467 — 1,892,280 Depreciation and amortization expense (1) 35,886 3,256 3,261 — 42,403 Income tax expense (benefit) 35,689 1,515 6,109 (1,714) 41,599 Capital additions 160,939 25,372 2,229 — 188,540 As Of And For The Year Ended December 31, 2022 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 340,602 $ 39,986 $ 110,940 $ — $ 491,528 Operating income (loss) 92,455 11,740 22,449 (8) 126,636 Interest expense (income), net 21,659 831 (132) 2,343 24,701 Net property, plant and equipment 1,616,718 119,560 17,488 — 1,753,766 Depreciation and amortization expense (1) 34,805 2,792 3,718 — 41,315 Income tax expense (benefit) 16,346 2,439 5,476 (597) 23,664 Capital additions 146,730 18,069 1,441 — 166,240 As Of And For The Year Ended December 31, 2021 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 347,112 $ 38,345 $ 113,396 $ — $ 498,853 Operating income (loss) 107,573 10,738 22,675 (9) 140,977 Interest expense (income), net 21,046 141 (637) 791 21,341 Net property, plant and equipment 1,499,745 106,508 19,751 — 1,626,004 Depreciation and amortization expense (1) 33,384 2,572 3,640 — 39,596 Income tax expense (benefit) 22,095 2,975 5,434 (81) 30,423 Capital additions 123,526 19,859 1,130 — 144,515 |
Schedule of reconciliation of total utility plant (a key figure for rate-making) to total consolidated assets | The following table reconciles total net property, plant and equipment (a key figure for ratemaking) to total consolidated assets (in thousands): December 31, 2023 2022 Total net property, plant and equipment $ 1,892,280 $ 1,753,766 Other assets 353,842 280,608 Total consolidated assets $ 2,246,122 $ 2,034,374 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Allowance for Doubtful Accounts | |
Schedule of provision for doubtful accounts charged to expense and accounts written off, net of recoveries | The table below presents Registrant’s provision for doubtful accounts charged to expense and accounts written off, net of recoveries. Provisions included in 2023, 2022 and 2021 for AWR and GSWC are as follows: AWR December 31, (dollars in thousands) 2023 2022 2021 Balance at beginning of year $ 4,440 $ 3,569 $ 5,316 Provision charged (1) 932 2,842 8,150 Accounts written off, net of recoveries (2) (1,782) (1,971) (9,897) Balance at end of year $ 3,590 $ 4,440 $ 3,569 Allowance for doubtful accounts related to accounts receivable-customer $ 3,537 $ 4,387 $ 3,516 Allowance for doubtful accounts related to other accounts receivable 53 53 53 Total allowance for doubtful accounts $ 3,590 $ 4,440 $ 3,569 (1) In 2022 and 2021, includes amounts in excess of GSWC’s and BVES’s respective revenue requirements incurred during the COVID-19 pandemic. These incremental amounts are recorded as regulatory assets in the COVID-19 memorandum accounts. (2) Reflects consideration of government relief funds expected to be received in 2024 and received in 2022 from the state of California for unpaid water and electric utility bills incurred during the pandemic. A total of $3.5 million is expected to be received for unpaid water utility bills in 2024, and $9.5 million and $473,000 was received in 2022 for unpaid water and electric utility bills, respectively. GSWC December 31, (dollars in thousands) 2023 2022 2021 Balance at beginning of year $ 4,196 $ 3,221 $ 4,960 Provision charged (3) 754 2,501 7,732 Accounts written off, net of recoveries (4) (1,503) (1,526) (9,471) Balance at end of year $ 3,447 $ 4,196 $ 3,221 Allowance for doubtful accounts related to accounts receivable-customer $ 3,394 $ 4,143 $ 3,168 Allowance for doubtful accounts related to other accounts receivable 53 53 53 Total allowance for doubtful accounts $ 3,447 $ 4,196 $ 3,221 (3) In 2022 and 2021, includes amounts in excess of GSWC’s revenue requirement incurred during the COVID-19 pandemic. This incremental amount was recorded as a regulatory asset in the COVID-19 memorandum account. (4) |
Statement of Cash Flows, Supp_2
Statement of Cash Flows, Supplemental Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of non-cash financing and investing activities and other cash flow information | The following table sets forth non-cash financing and investing activities and other cash flow information (in thousands). AWR GSWC December 31, December 31, 2023 2022 2021 2023 2022 2021 Taxes and Interest Paid: Income taxes paid, net $ 34,682 $ 27,370 $ 29,153 $ 31,625 $ 20,155 $ 21,428 Interest paid, net of capitalized interest 39,367 26,005 22,540 28,099 22,294 21,156 Non-Cash Transactions: Accrued payables for investment in utility plant 34,906 40,034 32,855 33,465 38,302 30,656 Property installed by developers and conveyed 4,690 1,549 7,222 4,690 1,549 7,222 |
SCHEDULE I - CONDENSED FINANC_2
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Short-term Debt | Registrant’s borrowing activities (excluding letters of credit) for the years ended December 31, 2023 and 2022 were as follows: December 31, (in thousands, except percent) 2023 2022 Balance Outstanding at December 31, $ 333,500 $ 277,500 Interest Rate at December 31, 6.33% ~ 6.96% 5.07% ~ 5.89% Average Amount Outstanding $ 243,355 $ 226,556 Weighted Average Annual Interest Rate 6.11 % 2.55 % Maximum Amount Outstanding $ 333,500 $ 277,500 AWR (parent)'s borrowing activities (excluding letters of credit) for the years ended December 31, 2023 and 2022 were as foll ows: December 31, (in thousands, except percent) 2023 2022 Balance Outstanding at December 31, $ 141,500 $ 255,500 Interest Rate at December 31, 6.45 % 5.07 % Average Amount Outstanding $ 156,533 $ 213,758 Weighted Average Annual Interest Rate 5.92 % 2.56 % Maximum Amount Outstanding $ 257,500 $ 255,500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | Jan. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) customer registrant state shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Jul. 10, 2023 USD ($) | Jun. 15, 2023 USD ($) | Jan. 13, 2023 USD ($) | Jul. 12, 2021 USD ($) | |
Nature of Operations: | ||||||||||
Number of customers served | customer | 1,000,000 | |||||||||
Number of States in which Entity Operates | state | 10 | |||||||||
Number of registrants filing combined report | registrant | 2 | |||||||||
Related Party Transactions | ||||||||||
Related Party Transaction, Amounts of Transaction | $ 5,000,000 | $ 5,200,000 | $ 5,300,000 | |||||||
Impairment of Long-Lived Assets | ||||||||||
Asset Retirement Obligation, Legally Restricted Assets, Fair Value | 0 | |||||||||
Impairment of long-lived assets | 0 | 0 | $ 0 | |||||||
Goodwill | ||||||||||
Goodwill arose from acquisition of subcontractor's business | $ 1,100,000 | $ 1,100,000 | ||||||||
Advances for Construction and Contributions in aid of Constructions | ||||||||||
Period for refund of advances for construction | 40 years | |||||||||
Fair Value of Financial Instruments | ||||||||||
Long-term debt-GSWC | $ 556,214,000 | |||||||||
Exercise of stock options and other issuance of Common Shares | shares | 18,371 | 25,956 | 47,182 | |||||||
Exercise of stock options and other issuance of Common Shares | shares | 18,371 | 25,956 | 47,182 | |||||||
Level 1 | ||||||||||
Fair Value of Financial Instruments | ||||||||||
Long-term debt-GSWC | $ 0 | |||||||||
Level 3 | ||||||||||
Fair Value of Financial Instruments | ||||||||||
Long-term debt-GSWC | 0 | |||||||||
Carrying Amount | ||||||||||
Fair Value of Financial Instruments | ||||||||||
Long-term debt-GSWC | $ 450,373,000 | 579,047,000 | $ 450,373,000 | |||||||
Fair Value | Level 2 | ||||||||||
Fair Value of Financial Instruments | ||||||||||
Long-term debt-GSWC | 424,151,000 | $ 556,214,000 | 424,151,000 | |||||||
GSWC | ||||||||||
Related Party Transactions | ||||||||||
Intercompany borrowings payment term | 24 months | |||||||||
Property and Depreciation | ||||||||||
Depreciation on transportation equipment | $ 212,000 | |||||||||
Estimated useful lives of utility plant, as authorized by the CPUC | ||||||||||
Generation | 40 years | |||||||||
Fair Value of Financial Instruments | ||||||||||
Long-term debt-GSWC | $ 522,883,000 | |||||||||
Water Utility Relief Funding For Overdue Water Bills Per Budget Act Of 2021 | $ 1,000,000,000 | |||||||||
Relief funding | $ 9,500,000 | 3,500,000 | $ 9,500,000 | |||||||
Debt Instrument, Face Amount | 130,000,000 | |||||||||
Stock Issued During Period, Value, New Issues | $ 10,000,000 | |||||||||
Extended Water and Wastewater Arrearage Program Funding | $ 600,000,000 | |||||||||
Exercise of stock options and other issuance of Common Shares | shares | 1 | 0 | 0 | |||||||
Exercise of stock options and other issuance of Common Shares | shares | 1 | 0 | 0 | |||||||
GSWC | Unsecured Private Placement Notes | ||||||||||
Fair Value of Financial Instruments | ||||||||||
Debt Instrument, Face Amount | $ 130,000,000 | |||||||||
GSWC | Level 1 | ||||||||||
Fair Value of Financial Instruments | ||||||||||
Long-term debt-GSWC | $ 0 | |||||||||
GSWC | Level 3 | ||||||||||
Fair Value of Financial Instruments | ||||||||||
Long-term debt-GSWC | 0 | |||||||||
GSWC | Carrying Amount | ||||||||||
Fair Value of Financial Instruments | ||||||||||
Long-term debt-GSWC | 415,373,000 | 544,047,000 | $ 415,373,000 | |||||||
GSWC | Fair Value | Level 2 | ||||||||||
Fair Value of Financial Instruments | ||||||||||
Long-term debt-GSWC | 391,198,000 | $ 522,883,000 | 391,198,000 | |||||||
GSWC | Minimum | ||||||||||
Estimated useful lives of utility plant, as authorized by the CPUC | ||||||||||
Source of water supply | 20 years | |||||||||
Pumping | 26 years | |||||||||
Water treatment | 26 years | |||||||||
Transmission and Distribution | 15 years | |||||||||
Other plant | 5 years | |||||||||
GSWC | Maximum | ||||||||||
Estimated useful lives of utility plant, as authorized by the CPUC | ||||||||||
Source of water supply | 60 years | |||||||||
Pumping | 41 years | |||||||||
Water treatment | 32 years | |||||||||
Transmission and Distribution | 80 years | |||||||||
Other plant | 62 years | |||||||||
BVES | ||||||||||
Related Party Transactions | ||||||||||
Related Party Transaction, Amounts of Transaction | $ 3,500,000 | 2,700,000 | $ 2,800,000 | |||||||
Interest | ||||||||||
Public Utilities, Allowance for Funds Used During Construction, Additions | 14,000 | 106,000 | $ 216,000 | |||||||
Fair Value of Financial Instruments | ||||||||||
Relief funding | 152,000 | $ 321,000 | 473,000 | |||||||
Debt Instrument, Face Amount | $ 35,000,000 | |||||||||
BVES | Carrying Amount | ||||||||||
Fair Value of Financial Instruments | ||||||||||
Long-term debt-GSWC | $ 35,000,000 | $ 35,000,000 | $ 35,000,000 | |||||||
Golden State Water Company and Bear Valley Electric Service, Inc. | ||||||||||
Property and Depreciation | ||||||||||
Aggregate composite rate for depreciation (as a percent) | 2.20% | 2.20% | 2.20% | |||||||
Depreciation | $ 38,300,000 | $ 37,300,000 | $ 35,500,000 | |||||||
Depreciation on transportation equipment | $ 851,000 | $ 382,000 | $ 379,000 | |||||||
Water: | GSWC | ||||||||||
Nature of Operations: | ||||||||||
Number of customers served | customer | 264,100 | |||||||||
Electric: | BVES | ||||||||||
Nature of Operations: | ||||||||||
Number of customers served | customer | 24,800 | |||||||||
Contracted services: | Maximum | ||||||||||
Nature of Operations: | ||||||||||
Period of fixed price contracts to operate and maintain the water and/or wastewater systems at various military bases | 50 years | |||||||||
Contracted services: | American States Utility Services | Minimum | ||||||||||
Nature of Operations: | ||||||||||
Period of fixed price contracts to operate and maintain the water and/or wastewater systems at various military bases | 15 years | |||||||||
Contracted services: | American States Utility Services | Maximum | ||||||||||
Nature of Operations: | ||||||||||
Period of fixed price contracts to operate and maintain the water and/or wastewater systems at various military bases | 50 years | |||||||||
Contracted services: | Patuxent River Utility Services LLC("PRUS") | ||||||||||
Nature of Operations: | ||||||||||
Period of fixed price contracts to operate and maintain the water and/or wastewater systems at various military bases | 50 years | |||||||||
Fair Value of Financial Instruments | ||||||||||
Initial price contract value and subject to annual economic price adjustments | $ 349,000,000 | |||||||||
Contracted services: | Bay State Utility Service LLC ("BSUS") | ||||||||||
Fair Value of Financial Instruments | ||||||||||
Initial price contract value and subject to annual economic price adjustments | 45,000,000 | |||||||||
:ContractInitialOrderValueToPerformAnEvaluationConstructionAndTransitionServices | $ 2,300,000 |
Revenues (Details)
Revenues (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) unit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Revenue, Performance Obligation, Payment Terms | 20 days | ||
Cost of services | $ 57,912 | $ 53,171 | $ 56,909 |
Retroactive water revenues impact as a result of a proposed decision | 30,000 | ||
GSWC | |||
Disaggregation of Revenue [Line Items] | |||
Revenue impact due to lower cost of debt | $ 6,400 | ||
Golden State Water Company and Bear Valley Electric Service, Inc. | |||
Disaggregation of Revenue [Line Items] | |||
Period within which Expected Additional Revenue Collection is Recorded Subject to Undercollection of Revenue | 24 months | ||
Contracted services: | Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 50 years | ||
Contracted services: | American States Utility Services | |||
Disaggregation of Revenue [Line Items] | |||
Number of construction performance obligation | unit | 1 | ||
Contracted services: | American States Utility Services | Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 50 years | ||
Contracted services: | American States Utility Services | Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 15 years | ||
Sales | Water: | GSWC | Customer Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of total revenues | 90% | ||
Sales | Electric: | BVES | Customer Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of total revenues | 90% | ||
Franchisor | Golden State Water Company and Bear Valley Electric Service, Inc. | |||
Disaggregation of Revenue [Line Items] | |||
Cost of services | $ 4,900 | $ 4,000 | $ 4,200 |
Revenues Disaggregation of Reve
Revenues Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Operating revenues | $ 595,699 | $ 491,528 | $ 498,853 |
Cost of services | 57,912 | 53,171 | 56,909 |
GSWC | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 433,473 | 340,602 | 347,112 |
GSWC | Water: | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 400,331 | 329,650 | 351,069 |
Operating revenues | 433,473 | 340,602 | 347,112 |
GSWC | Water: | Tariff-based revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 394,623 | 324,838 | 345,562 |
GSWC | Water: | CPUC-approved surcharges (cost-recovery activities) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 2,955 | 2,461 | 3,280 |
GSWC | Water: | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 2,753 | 2,351 | 2,227 |
GSWC | Water: | Alternative revenue program | |||
Disaggregation of Revenue [Line Items] | |||
Alternative Revenue Programs, Net | 33,142 | 10,952 | (3,957) |
American States Utility Services | Contracted services: | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 120,394 | 110,940 | 113,396 |
Operating revenues | 120,394 | 110,940 | 113,396 |
American States Utility Services | Contracted services: | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 75,785 | 68,626 | 71,210 |
American States Utility Services | Contracted services: | Wastewater | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 44,609 | 42,314 | 42,186 |
Golden State Water Company and Bear Valley Electric Service, Inc. | Franchisor | |||
Disaggregation of Revenue [Line Items] | |||
Cost of services | 4,900 | 4,000 | 4,200 |
BVES | Electric: | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 40,697 | 39,894 | 37,434 |
Operating revenues | 41,832 | 39,986 | 38,345 |
BVES | Electric: | Tariff-based revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 40,130 | 39,750 | 37,124 |
BVES | Electric: | CPUC-approved surcharges (cost-recovery activities) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 567 | 144 | 310 |
BVES | Electric: | Alternative revenue program | |||
Disaggregation of Revenue [Line Items] | |||
Alternative Revenue Programs, Net | $ 1,135 | $ 92 | $ 911 |
Revenues Contract assets and Co
Revenues Contract assets and Contract Liabilities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) unit | Dec. 31, 2022 USD ($) | |
Contract with Customer, Asset and Liability [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 4,000,000 | |
American States Utility Services | ||
Contract with Customer, Asset and Liability [Line Items] | ||
Unbilled Contracts Receivable | 9,693 | $ 10,125 |
Government Contract Receivable | 91,489 | 85,456 |
Contract assets | 14,378 | 14,982 |
Contract liabilities | $ 1,352 | $ 903 |
Minimum | American States Utility Services | ||
Contract with Customer, Asset and Liability [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 15 years | |
Maximum | American States Utility Services | ||
Contract with Customer, Asset and Liability [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 50 years | |
Contracted services: | American States Utility Services | ||
Contract with Customer, Asset and Liability [Line Items] | ||
Number of the contracts with 15-year contracts with the U.S. government | unit | 1 | |
Contracted services: | Minimum | American States Utility Services | ||
Contract with Customer, Asset and Liability [Line Items] | ||
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 15 years | |
Contracted services: | Maximum | ||
Contract with Customer, Asset and Liability [Line Items] | ||
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 50 years | |
Contracted services: | Maximum | American States Utility Services | ||
Contract with Customer, Asset and Liability [Line Items] | ||
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 50 years |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2023 | Dec. 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | Jan. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2024 | Dec. 31, 2023 USD ($) | Sep. 30, 2023 | Dec. 31, 2022 USD ($) | |
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory Asset Not Accruing Carrying Costs | $ 68,400,000 | ||||||||
Total | $ (25,454,000) | $ 69,507,000 | $ (25,454,000) | ||||||
Cost of capital proceeding | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Public Utilities, Approved Debt Capital Structure in May 2021 Cost of Capital Application, Percentage | 5.10% | ||||||||
Public Utilities Approved Debt Capital Structure, Percentage Previously Authorized | 6.60% | ||||||||
Public Utilities, Approved Return On Equity in May 2021 Cost of Capital Application, Percentage | 0.0885 | ||||||||
Public Utilities, Approved Return on Equity, Percentage, Previously Authorized | 8.90% | ||||||||
Term for the cost of capital proceeding | 3 years | ||||||||
Threshold percentage of Moody's average bond rate used adjusting return on equity and rate of return on rate base, Increase(Decrease) | 0.0100 | ||||||||
Triggers for the WCMA adjustment, Impact of 102.8 Basis Point Increase in Moody's Rate, Percent | 0.010280 | ||||||||
Public Utilities, Requested Return on Equity, Percentage | 9.36% | ||||||||
Triggers for the WCMA adjustment, Impact of 139.7 Basis Point Increase in Moody's Rate, Percent | 0.013970 | ||||||||
Adjustment To Return On Equity, If More Than 100 Basis Point Change | 0.5 | ||||||||
Cost of capital proceeding | Subsequent Event | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Public Utilities, Requested Return on Equity, Percentage | 10.06% | ||||||||
GSWC | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | (26,574,000) | $ 45,729,000 | (26,574,000) | ||||||
Public Utilities, Approved Equity Capital Structure, Percentage | 57% | ||||||||
Public Utilities, Approved Debt Capital Structure, Percentage | 43% | ||||||||
Revenue impact due to lower cost of debt | $ 6,400,000 | ||||||||
Relief funding | $ 9,500,000 | 3,500,000 | 9,500,000 | ||||||
Regulatory Asset CEMA | $ 1,200,000 | ||||||||
Discount Percentage For Qualified Low Income Water Customers | 20% | ||||||||
BVES | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Relief funding | 152,000 | $ 321,000 | 473,000 | ||||||
Regulatory Asset CEMA | $ 500,000 | ||||||||
Discount Percentage For Qualified Low Income Water Customers | 20% | ||||||||
Incremental vegetation management costs | $ 11,800,000 | ||||||||
Regulatory Asset Wildfire Mitigation Plans WMP | 5,900,000 | ||||||||
Regulatory Asset CEMA -2023 Storm | $ 1,300,000 | ||||||||
2022/2023 general rate case memorandum accounts (unbilled revenue) | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory Asset, Amortization Period | 36 months | ||||||||
2022/2023 general rate case memorandum accounts (unbilled revenue) | GSWC | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 0 | $ 52,795,000 | 0 | ||||||
Water revenue adjustment mechanism, net of the modified cost balancing account | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory adjustment | $ (9,800,000) | ||||||||
Water revenue adjustment mechanism, net of the modified cost balancing account | GSWC | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 31,803,000 | $ 41,545,000 | 31,803,000 | ||||||
Regulatory Asset, Amortization Period | 24 months | ||||||||
Commercial paper, term | 90 days | ||||||||
Pensions and other post-retirement obligations (Note 12) | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory Asset Not Accruing Carrying Costs | $ 3,800,000 | ||||||||
Pensions and other post-retirement obligations (Note 12) | GSWC | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 738,000 | (4,867,000) | 738,000 | ||||||
Regulatory Assets | 3,800,000 | ||||||||
Pensions and other post-retirement obligations (Note 12) | GSWC | Under Collection in Two Way Pension Balancing Account | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 1,100,000 | ||||||||
Pensions and other post-retirement obligations (Note 12) | BVES | Under Collection in Two Way Pension Balancing Account | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 277,000 | ||||||||
Excess deferred income taxes (Note 11) | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 74,000,000 | ||||||||
Excess deferred income taxes (Note 11) | GSWC | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | (71,870,000) | (70,189,000) | (71,870,000) | ||||||
Flowed-through deferred income taxes, net (Note 11) | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 4,300,000 | ||||||||
Flowed-through deferred income taxes, net (Note 11) | GSWC | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | (1,134,000) | 3,190,000 | (1,134,000) | ||||||
Low income rate assistance balancing accounts | GSWC | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 2,526,000 | 5,763,000 | 2,526,000 | ||||||
Low income rate assistance balancing accounts | Golden State Water Company and Bear Valley Electric Service, Inc. | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 5,700,000 | ||||||||
Derivative instrument memorandum account (Note 5) | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 2,400,000 | ||||||||
Derivative instrument memorandum account (Note 5) | BVES | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | (11,847,000) | 2,360,000 | (11,847,000) | ||||||
Water Revenue Adjustment Mechanism | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Regulatory adjustment | 30,100,000 | ||||||||
Water Revenue Adjustment Mechanism | GSWC | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 43,900,000 | ||||||||
Deferred Revenues | 0 | ||||||||
Modified Cost Balancing Account | GSWC | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | 2,400,000 | ||||||||
Electric supply cost adjustment mechanism | BVES | |||||||||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||||||||
Total | $ 3,627,000 | 2,583,000 | $ 3,627,000 | ||||||
Amount billed to customers as surcharges | $ 1,900,000 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Liabilities and Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | $ 69,507 | $ (25,454) |
GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 45,729 | (26,574) |
GSWC | Other regulatory liabilities | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | (268) | (8,815) |
BVES | Other regulatory liabilities | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | (6,578) | (8,005) |
2022/2023 general rate case memorandum accounts (unbilled revenue) | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 52,795 | 0 |
Water revenue adjustment mechanism, net of the modified cost balancing account | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 41,545 | 31,803 |
Asset retirement obligations (Note 1) | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 7,099 | 6,411 |
COVID-19 memorandum accounts | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 1,199 | 3,478 |
Flowed-through deferred income taxes, net (Note 11) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 4,300 | |
Flowed-through deferred income taxes, net (Note 11) | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 3,190 | (1,134) |
Low income rate assistance balancing accounts | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 5,763 | 2,526 |
Pensions and other post-retirement obligations (Note 12) | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | (4,867) | 738 |
Other regulatory assets | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 9,462 | 10,289 |
Other regulatory assets | BVES | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 7,697 | 4,338 |
Excess deferred income taxes (Note 11) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 74,000 | |
Excess deferred income taxes (Note 11) | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | (70,189) | (71,870) |
Derivative instrument memorandum account (Note 5) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 2,400 | |
Derivative instrument memorandum account (Note 5) | BVES | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 2,360 | (11,847) |
Wildfire mitigation and other fire prevention related costs memorandum accounts | BVES | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | 17,716 | 13,007 |
Electric supply cost adjustment mechanism | BVES | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory assets | $ 2,583 | $ 3,627 |
Utility Plant and Intangible _3
Utility Plant and Intangible Assets - By Major Asset Class (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | $ 2,279,621 | $ 2,178,349 | ||
Less — accumulated depreciation | (624,472) | (606,231) | ||
Construction work in progress | 237,131 | 181,648 | ||
Net utility plant | 1,892,280 | 1,753,766 | $ 1,626,004 | |
Water | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 2,123,150 | 2,044,534 | ||
Water | Land | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 18,290 | 18,427 | ||
Water | Intangible assets | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 30,917 | 30,511 | ||
Water | Source of water supply | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 111,112 | 109,918 | ||
Water | Pumping | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 234,264 | 227,668 | ||
Water | Water treatment | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 98,533 | 90,411 | ||
Water | Transmission and distribution | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 1,489,974 | 1,431,437 | ||
Water | Other | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 140,060 | 136,162 | ||
Electric: | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 156,471 | 133,815 | ||
Electric: | Intangible assets | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 1,200 | 1,200 | ||
Electric: | Transmission and distribution | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 126,143 | 105,499 | ||
Electric: | Generation | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 12,583 | 12,583 | ||
Electric: | Other | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | [1] | 17,745 | 15,733 | |
GSWC | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Less — accumulated depreciation | (543,135) | (530,925) | ||
Construction work in progress | 195,742 | 141,175 | ||
Net utility plant | 1,735,534 | 1,616,718 | ||
GSWC | Water | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 2,082,927 | 2,006,468 | ||
Net utility plant | 1,735,534 | 1,616,718 | $ 1,499,745 | |
GSWC | Water | Land | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 18,290 | 18,427 | ||
GSWC | Water | Intangible assets | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 30,917 | 30,511 | ||
GSWC | Water | Source of water supply | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 111,112 | 109,918 | ||
GSWC | Water | Pumping | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 234,264 | 227,668 | ||
GSWC | Water | Water treatment | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 98,533 | 90,411 | ||
GSWC | Water | Transmission and distribution | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 1,489,974 | 1,431,437 | ||
GSWC | Water | Other | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 99,837 | 98,096 | ||
GSWC | Electric: | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 0 | 0 | ||
GSWC | Electric: | Transmission and distribution | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 0 | 0 | ||
GSWC | Electric: | Generation | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | 0 | 0 | ||
GSWC | Electric: | Other | ||||
Utility plant utilized in continuing operations by major asset class | ||||
Total utility plant, at cost | [1] | $ 0 | $ 0 | |
[1] Includes intangible assets of $1.2 million for the years ended December 31, 2023 and 2022 for studies performed. |
Utility Plant and Intangible _4
Utility Plant and Intangible Assets - Schedule of Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Intangible assets | |||
Total intangible assets | $ 32,345 | $ 31,938 | |
Less — accumulated amortization | (27,275) | (26,811) | |
Intangible assets, net of amortization | 5,070 | 5,127 | |
Intangible assets not subject to amortization | [1] | 383 | 383 |
Total utility plant, at cost | $ 2,279,621 | $ 2,178,349 | |
Conservation programs | |||
Intangible assets | |||
Weighted Average Amortization Period (in years) | 3 years | 3 years | |
Total intangible assets | $ 9,486 | $ 9,486 | |
Water and water service rights | |||
Intangible assets | |||
Weighted Average Amortization Period (in years) | 30 years | 30 years | |
Total intangible assets | [2] | $ 8,695 | $ 8,695 |
Water planning studies | |||
Intangible assets | |||
Weighted Average Amortization Period (in years) | 14 years | 14 years | |
Total intangible assets | $ 14,164 | $ 13,757 | |
GSWC | |||
Intangible assets | |||
Total intangible assets | 30,536 | 30,129 | |
Less — accumulated amortization | (26,294) | (25,374) | |
Intangible assets, net of amortization | 4,242 | 4,755 | |
Intangible assets not subject to amortization | [1] | $ 382 | $ 382 |
GSWC | Conservation programs | |||
Intangible assets | |||
Weighted Average Amortization Period (in years) | 3 years | 3 years | |
Total intangible assets | $ 9,486 | $ 9,486 | |
GSWC | Water and water service rights | |||
Intangible assets | |||
Weighted Average Amortization Period (in years) | 30 years | 30 years | |
Total intangible assets | [2] | $ 8,124 | $ 8,124 |
GSWC | Water planning studies | |||
Intangible assets | |||
Weighted Average Amortization Period (in years) | 14 years | 14 years | |
Total intangible assets | $ 12,926 | $ 12,519 | |
Intangible assets | American States Utility Services | |||
Intangible assets | |||
Total utility plant, at cost | $ 571 | $ 571 | |
[1]The intangible assets not subject to amortization primarily consist of organization and consent fees.[2]Includes intangible assets of $571,000 for contracted services included in “Other Property and Investments” on the consolidated balance sheets as of December 31, 2023 and 2022. |
Utility Plant and Intangible _5
Utility Plant and Intangible Assets - Schedule of Maturity (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 911 |
2025 | 911 |
2026 | 911 |
2027 | 911 |
2028 | 911 |
Total | $ 4,555 |
Utility Plant and Intangible _6
Utility Plant and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1,100 | $ 641 | $ 700 |
Utility Plant and Intangible _7
Utility Plant and Intangible Assets - ARO Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of the beginning and ending aggregate carrying amount of the asset retirement obligations | ||
Obligation at the beginning of the period | $ 10,103 | $ 9,717 |
Accretion | 406 | 386 |
Obligation at the end of the period | $ 10,509 | $ 10,103 |
Derivative Instruments (Details
Derivative Instruments (Details) - BVES $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) MWh | Dec. 31, 2022 USD ($) | |
Derivative instruments | ||
Derivative Activity Volume | MWh | 685,256 | |
Changes in the fair value of the derivative | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | $ (2,400) | |
Purchase power contract | ||
Changes in the fair value of the derivative | ||
Balance, at beginning of the period | 11,847 | $ 4,441 |
Unrealized (losses) gains on purchase power contracts | (14,207) | 7,406 |
Balance, at end of the period | $ (2,360) | $ 11,847 |
Minimum | ||
Derivative instruments | ||
Derivative, Term of Contract | 3 years | |
Minimum | Purchase power contract | ||
Derivative instruments | ||
Derivative, Term of Contract | 3 years | |
Maximum | ||
Derivative instruments | ||
Derivative, Term of Contract | 5 years | |
Maximum | Purchase power contract | ||
Derivative instruments | ||
Derivative, Term of Contract | 5 years |
Military Privatization (Details
Military Privatization (Details) - Contracted services: | 12 Months Ended |
Dec. 31, 2023 | |
Bay State Utility Service LLC ("BSUS") | |
Military Privatization | |
Period of fixed price contracts to maintain water systems at various military bases | 15 years |
Maximum | American States Utility Services | |
Military Privatization | |
Period of fixed price contracts to maintain water systems at various military bases | 50 years |
Earnings Per Share _ Capital _3
Earnings Per Share / Capital Stock -Schedule of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Basic | ||||
Net Income | $ 124,921 | $ 78,396 | $ 94,347 | |
Less: impact from participating securities | 372 | 197 | 244 | |
Total income available to common shareholders | $ 124,549 | $ 78,199 | $ 94,103 | |
Weighted average Common Shares outstanding, basic | 36,976,000 | 36,955,000 | 36,921,000 | |
Basic earnings per Common Share (usd per share) | $ 3.37 | $ 2.12 | $ 2.55 | |
Diluted | ||||
Total income available to common shareholders | $ 124,549 | $ 78,199 | $ 94,103 | |
Undistributed earnings for dilutive stock-based awards | 189 | 55 | 110 | |
Total common shareholders earnings, diluted | $ 124,738 | $ 78,254 | $ 94,213 | |
Weighted average Common Shares outstanding, basic | 36,976,000 | 36,955,000 | 36,921,000 | |
Stock-based compensation (in shares) | [1] | 101,000 | 84,000 | 89,000 |
Weighted Average Number of Diluted Shares (in shares) | 37,077,000 | 37,039,000 | 37,010,000 | |
Earnings Per Share, Diluted | $ 3.36 | $ 2.11 | $ 2.55 | |
Restricted Stock Units | ||||
Diluted | ||||
Restricted stock units outstanding (in shares) | 115,684 | 96,988 | 100,020 | |
Capital stock | ||||
Restricted stock units outstanding (in shares) | 115,684 | 96,988 | 100,020 | |
[1] (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 115,684, 96,988 and 100,020 restricted stock units, including performance awards to officers of AWR, at December 31, 2023, 2022 and 2021, respectively, were deemed to be outstanding in accordance with accounting guidance on earnings per share. |
Earnings Per Share _ Capital _4
Earnings Per Share / Capital Stock- Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Additional disclosure | |||
Exercise of stock options and other issuance of Common Shares | 18,371 | 25,956 | 47,182 |
Proceeds from Stock Options Exercised, Distributed to Subsidiaries | $ 0 | $ 0 | $ 0 |
Dividend Reinvestment Plan Common Stock Capital Shares Reserved for Future Issuance | 1,055,948 | ||
Common Shares authorized for issuance but unissued under 401(k) Plan | 387,300 | ||
GSWC | |||
Additional disclosure | |||
Exercise of stock options and other issuance of Common Shares | 1 | 0 | 0 |
Stock Issued During Period, Value, New Issues | $ 10,000,000 |
Dividend Limitations (Details)
Dividend Limitations (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Dividend limitations | ||||
Common shareholder’s equity | $ 776,109 | $ 709,549 | $ 685,947 | $ 641,673 |
GSWC | ||||
Dividend limitations | ||||
Ratio of Indebtedness to Net Capital | 0.4956 | |||
Dividends paid | $ 55,400 | 27,000 | 38,300 | |
Common shareholder’s equity | $ 703,828 | $ 643,906 | $ 615,686 | $ 583,298 |
GSWC | Maximum | ||||
Dividend limitations | ||||
Ratio of Indebtedness to Net Capital | 0.6667 |
Bank Debt (Details)
Bank Debt (Details) $ in Thousands | 12 Months Ended | ||||||||||
Jun. 28, 2023 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 USD ($) unit | Dec. 31, 2022 USD ($) | Feb. 15, 2024 USD ($) | Nov. 06, 2023 USD ($) | Nov. 05, 2023 USD ($) | Jun. 27, 2023 USD ($) | Jun. 16, 2023 USD ($) | Jun. 15, 2023 USD ($) | |
Bank debt | |||||||||||
Number of credit facilities | unit | 3 | ||||||||||
Debt instrument, term | 5 years | ||||||||||
Line of credit facility, current borrowing capacity | $ 165,000 | ||||||||||
Incremental expansion of borrowing capacity | $ 75,000 | ||||||||||
Note payable to bank, noncurrent | $ 291,500 | $ 22,000 | |||||||||
Notes payable to bank | $ 42,000 | 255,500 | |||||||||
BVES | |||||||||||
Bank debt | |||||||||||
Debt instrument, term | 24 months | ||||||||||
Incremental expansion of borrowing capacity | $ 25,000 | ||||||||||
Debt Instrument, Face Amount | $ 35,000 | ||||||||||
GSWC | |||||||||||
Bank debt | |||||||||||
Ratio of Indebtedness to Net Capital | 0.4956 | ||||||||||
Note payable to bank, noncurrent | $ 150,000 | 0 | |||||||||
Debt Instrument, Face Amount | $ 130,000 | ||||||||||
Maximum | GSWC | |||||||||||
Bank debt | |||||||||||
Ratio of Indebtedness to Net Capital | 0.6667 | ||||||||||
Revolving Credit Facility | |||||||||||
Bank debt | |||||||||||
Line of credit facility, current borrowing capacity | $ 150,000 | ||||||||||
Notes Payable | $ 333,500 | 277,500 | |||||||||
Average Amount Outstanding | 243,355 | 226,556 | |||||||||
Maximum Amount Outstanding | $ 333,500 | $ 277,500 | |||||||||
Weighted Average Annual Interest Rate (as a percent) | 6.11% | 2.55% | |||||||||
Short-term borrowing activities (excluding letters of credit) | |||||||||||
Notes Payable | $ 333,500 | $ 277,500 | |||||||||
Weighted Average Annual Interest Rate (as a percent) | 6.11% | 2.55% | |||||||||
Average Amount Outstanding | $ 243,355 | $ 226,556 | |||||||||
Maximum Amount Outstanding | $ 333,500 | $ 277,500 | |||||||||
Revolving Credit Facility | BVES | |||||||||||
Bank debt | |||||||||||
Maximum borrowing capacity | $ 50,000 | ||||||||||
Interest coverage ratio | 4.51 | ||||||||||
Total funded debt ratio | 0.52 | ||||||||||
Notes payable to bank | $ 42,000 | ||||||||||
Revolving Credit Facility | BVES | Subsequent Event | |||||||||||
Bank debt | |||||||||||
Maximum borrowing capacity | $ 65,000 | ||||||||||
Revolving Credit Facility | GSWC | |||||||||||
Bank debt | |||||||||||
Incremental expansion of borrowing capacity | 75,000 | ||||||||||
Debt issuance costs, line of credit arrangements, gross | $ 802 | ||||||||||
Total funded debt ratio | 0.50 | ||||||||||
Note payable to bank, noncurrent | $ 150,000 | ||||||||||
Revolving Credit Facility | Maximum | |||||||||||
Bank debt | |||||||||||
Ratio of Indebtedness to Net Capital | 0.65 | ||||||||||
Interest Rate at the end of the period (as a percent) | 6.96% | 5.89% | |||||||||
Short-term borrowing activities (excluding letters of credit) | |||||||||||
Interest Rate at the end of the period (as a percent) | 6.96% | 5.89% | |||||||||
Revolving Credit Facility | Maximum | GSWC | |||||||||||
Bank debt | |||||||||||
Line of credit facility, current borrowing capacity | $ 200,000 | ||||||||||
Revolving Credit Facility | Minimum | |||||||||||
Bank debt | |||||||||||
Interest Rate at the end of the period (as a percent) | 6.33% | 5.07% | |||||||||
Short-term borrowing activities (excluding letters of credit) | |||||||||||
Interest Rate at the end of the period (as a percent) | 6.33% | 5.07% | |||||||||
Revolving Credit Facility | Minimum | BVES | Subsequent Event | |||||||||||
Bank debt | |||||||||||
Interest coverage ratio | 4.5 | 3 | |||||||||
Letters of credit | |||||||||||
Bank debt | |||||||||||
Maximum borrowing capacity | $ 10,000 | ||||||||||
Letters of credit | GSWC | |||||||||||
Bank debt | |||||||||||
Maximum borrowing capacity | $ 20,000 | ||||||||||
AWR | |||||||||||
Bank debt | |||||||||||
Note payable to bank, noncurrent | 141,500 | $ 0 | |||||||||
Notes payable to bank | $ 0 | 255,500 | |||||||||
AWR | Maximum | |||||||||||
Bank debt | |||||||||||
Line of credit facility, current borrowing capacity | $ 280,000 | ||||||||||
AWR | Revolving Credit Facility | |||||||||||
Bank debt | |||||||||||
Total funded debt ratio | 0.54 | ||||||||||
Note payable to bank, noncurrent | $ 141,500 | ||||||||||
Notes Payable | 141,500 | 255,500 | |||||||||
Average Amount Outstanding | 156,533 | 213,758 | |||||||||
Maximum Amount Outstanding | $ 257,500 | $ 255,500 | |||||||||
Interest Rate at the end of the period (as a percent) | 6.45% | 5.07% | |||||||||
Weighted Average Annual Interest Rate (as a percent) | 5.92% | 2.56% | |||||||||
Short-term borrowing activities (excluding letters of credit) | |||||||||||
Notes Payable | $ 141,500 | $ 255,500 | |||||||||
Interest Rate at the end of the period (as a percent) | 6.45% | 5.07% | |||||||||
Weighted Average Annual Interest Rate (as a percent) | 5.92% | 2.56% | |||||||||
Average Amount Outstanding | $ 156,533 | $ 213,758 | |||||||||
Maximum Amount Outstanding | 257,500 | $ 255,500 | |||||||||
Parent | Revolving Credit Facility | |||||||||||
Bank debt | |||||||||||
Debt issuance costs, line of credit arrangements, gross | $ 632 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Jun. 15, 2023 | Jan. 13, 2023 | Dec. 31, 2022 | Apr. 28, 2022 | |
Debt Instrument [Line Items] | |||||
Ratio of Indebtedness to EBITDA | 8 | ||||
GSWC | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 130,000 | ||||
Ratio of Indebtedness to Net Capital | 0.4956 | ||||
Ratio of Indebtedness to EBITDA | 3.4 | ||||
GSWC | Maximum | |||||
Debt Instrument [Line Items] | |||||
Ratio of Indebtedness to Net Capital | 0.6667 | ||||
BVES | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 35,000 | ||||
Series A Senior Notes 5.12 Percent Due 2033 | GSWC | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 100,000 | ||||
Interest rate (as a percent) | 5.12% | ||||
Private Placement Notes | GSWC | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Redemption Premium above Treasury Yield | 50% | ||||
Series A Senior Notes 5.22 Percent Due 2038 | GSWC | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 30,000 | ||||
Interest rate (as a percent) | 5.22% | ||||
4.548% note due 2032 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 4.548% | ||||
4.548% note due 2032 | BVES | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 17,500 | ||||
Interest rate (as a percent) | 4.548% | ||||
4.949% note due 2037 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 4.949% | 4.949% | |||
4.949% note due 2037 | BVES | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 17,500 | ||||
Interest rate (as a percent) | 4.949% |
Long-Term Debt 2 (Details)
Long-Term Debt 2 (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 15, 2023 | Jan. 13, 2023 | Dec. 31, 2022 | Apr. 28, 2022 |
Annual maturities of all long-term debt, including capitalized leases | |||||
2024 | $ 353 | ||||
2025 | 370 | ||||
2026 | 8,116 | ||||
2027 | 403 | ||||
2028 | 55,421 | ||||
Thereafter | 514,384 | ||||
Total | 579,047 | $ 450,373 | |||
4.548% note due 2032 | |||||
Annual maturities of all long-term debt, including capitalized leases | |||||
Total | 17,500 | 17,500 | |||
4.949% note due 2037 | |||||
Annual maturities of all long-term debt, including capitalized leases | |||||
Total | 17,500 | 17,500 | |||
GSWC | |||||
Annual maturities of all long-term debt, including capitalized leases | |||||
Total | 544,047 | $ 415,373 | |||
Debt Instrument, Face Amount | $ 130,000 | ||||
GSWC | Series A Senior Notes 5.22 Percent Due 2038 | |||||
Annual maturities of all long-term debt, including capitalized leases | |||||
Debt Instrument, Face Amount | $ 30,000 | ||||
GSWC | Series A Senior Notes 5.12 Percent Due 2033 | |||||
Annual maturities of all long-term debt, including capitalized leases | |||||
Debt Instrument, Face Amount | $ 100,000 | ||||
BVES | |||||
Annual maturities of all long-term debt, including capitalized leases | |||||
Debt Instrument, Face Amount | $ 35,000 | ||||
BVES | 4.548% note due 2032 | |||||
Annual maturities of all long-term debt, including capitalized leases | |||||
Debt Instrument, Face Amount | $ 17,500 | ||||
BVES | 4.949% note due 2037 | |||||
Annual maturities of all long-term debt, including capitalized leases | |||||
Debt Instrument, Face Amount | $ 17,500 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxes on income | |||
Unrecognized Tax Benefits | $ 0 | $ 0 | $ 0 |
Deferred tax assets: | |||
Regulatory-liability-related | 32,042,000 | 31,330,000 | |
Contributions and advances | 6,660,000 | 6,544,000 | |
Deferred Tax Assets, Other | 5,924,000 | 7,424,000 | |
Deferred tax assets | 44,626,000 | 45,298,000 | |
Deferred tax liabilities: | |||
Fixed assets | (161,820,000) | (155,955,000) | |
Regulatory-asset-related: depreciation and other | (36,337,000) | (30,226,000) | |
Balancing and memorandum accounts (non-flow-through) | (8,046,000) | (8,794,000) | |
Deferred tax liabilities | (206,203,000) | (194,975,000) | |
Accumulated deferred income taxes - net | (161,577,000) | (149,677,000) | |
Current | |||
Federal | 26,327,000 | 14,845,000 | 19,592,000 |
State | 10,489,000 | 6,016,000 | 7,270,000 |
Total current tax expense | 36,816,000 | 20,861,000 | 26,862,000 |
Deferred | |||
Federal | 4,157,000 | 2,991,000 | 2,802,000 |
State | 626,000 | (188,000) | 759,000 |
Total deferred tax (benefit) expense | 4,783,000 | 2,803,000 | 3,561,000 |
Reconciliations of the effective tax rates to the federal statutory rate | |||
Federal taxes on pretax income at statutory rate | 34,969,000 | 21,433,000 | 26,202,000 |
Increase (decrease) in taxes resulting from: | 9,785,000 | 4,335,000 | 6,425,000 |
Excess deferred tax amortization | (1,648,000) | (1,311,000) | (1,356,000) |
Flow-through on fixed assets | 1,067,000 | 1,076,000 | 1,069,000 |
Flow-through on removal costs | (2,255,000) | (1,802,000) | (1,962,000) |
Investment tax credit | (71,000) | (71,000) | (71,000) |
Other- net | (248,000) | 4,000 | 116,000 |
Total income tax expense operations | 41,599,000 | 23,664,000 | 30,423,000 |
Income before income taxes | $ 166,520,000 | $ 102,060,000 | $ 124,770,000 |
Effective income tax rate (as a percent) | 25% | 23.20% | 24.40% |
GSWC | |||
Deferred tax assets: | |||
Regulatory-liability-related | $ 30,407,000 | $ 29,623,000 | |
Contributions and advances | 6,981,000 | 6,896,000 | |
Deferred Tax Assets, Other | 6,041,000 | 7,874,000 | |
Deferred tax assets | 43,429,000 | 44,393,000 | |
Deferred tax liabilities: | |||
Fixed assets | (155,131,000) | (150,133,000) | |
Regulatory-asset-related: depreciation and other | (33,242,000) | (28,489,000) | |
Balancing and memorandum accounts (non-flow-through) | (2,514,000) | (4,559,000) | |
Deferred tax liabilities | (190,887,000) | (183,181,000) | |
Accumulated deferred income taxes - net | (147,458,000) | (138,788,000) | |
Current | |||
Federal | 22,564,000 | 10,582,000 | $ 13,698,000 |
State | 10,176,000 | 4,909,000 | 6,089,000 |
Total current tax expense | 32,740,000 | 15,491,000 | 19,787,000 |
Deferred | |||
Federal | 2,867,000 | 1,507,000 | 2,251,000 |
State | 82,000 | (652,000) | 57,000 |
Total deferred tax (benefit) expense | 2,949,000 | 855,000 | 2,308,000 |
Reconciliations of the effective tax rates to the federal statutory rate | |||
Federal taxes on pretax income at statutory rate | 29,063,000 | 14,724,000 | 19,175,000 |
Increase (decrease) in taxes resulting from: | 9,169,000 | 3,119,000 | 4,923,000 |
Excess deferred tax amortization | (1,681,000) | (1,130,000) | (1,184,000) |
Flow-through on fixed assets | 1,041,000 | 1,010,000 | 1,008,000 |
Flow-through on removal costs | (2,225,000) | (1,715,000) | (1,954,000) |
Investment tax credit | (71,000) | (71,000) | (71,000) |
Other- net | 393,000 | 409,000 | 198,000 |
Total income tax expense operations | 35,689,000 | 16,346,000 | 22,095,000 |
Income before income taxes | $ 138,397,000 | $ 70,116,000 | $ 91,310,000 |
Effective income tax rate (as a percent) | 25.80% | 23.30% | 24.20% |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item participant | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Initial health care cost for employees under age of 65 (as a percent) | 5.90% | ||
Ultimate health care cost for employees under age of 65 (as a percent) | 4% | ||
Initial Health care cost for employees of age 65 and over (as a percent) | 6.30% | ||
Ultimate health care cost for employees of age 65 and over (as a percent) | 4% | ||
Employer contribution to the plan | $ 2,900 | $ 2,700 | $ 2,700 |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 2,200 | $ 2,000 | $ 1,900 |
Union plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets | 5.50% | 5.50% | 5.75% |
Non-union plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets | 3.90% | 3.90% | 4% |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum age for eligibility under the Pension Plan | item | 21 | ||
Minimum period of service for eligibility under the Pension Plan | 5 years | ||
Normal retirement benefit (as a percent) | 2% | ||
Defined benefit plan number of highest consecutive years average earnings used in computing retirement benefit | 5 years | ||
Maximum number of years of credited service considered in determining retirement benefit | 40 years | ||
Number of participants in the Pension Plan | participant | 903 | ||
Eligibility for employer matching contributions, period of service | 3 years | ||
Discount rate | 5.16% | 5.41% | |
Regulatory adjustment - deferred | $ (281) | $ 0 | $ (1,277) |
Employer contributions | 2,946 | $ 3,089 | |
Expected future employer's contribution | $ 3,300 | ||
Expected long-term return on plan assets | 5.75% | 5.75% | 6% |
Pension Benefits | GSWC | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Regulatory adjustment - deferred | $ (281) | $ (1,500) | $ 1,300 |
Pension Benefits | BVES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Regulatory adjustment - deferred | $ (270) | $ (490) | (246) |
Pension Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of participant's eligible pay contributed to the plan by the employer | 3% | ||
Pension Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of participant's eligible pay contributed to the plan by the employer | 5.25% | ||
Post-Retirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.04% | 5.34% | |
Regulatory adjustment - deferred | $ 0 | $ 0 | $ 0 |
Employer contributions | $ 265 | $ 263 | |
Post-Retirement Medical Benefits | Minimum | Fixed income fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maturity period of investments | 1 year | ||
Post-Retirement Medical Benefits | Maximum | Fixed income fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maturity period of investments | 20 years | ||
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.15% | 5.42% | |
Balance in Rabbi Trust | $ 34,100 |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status of Pension Plan and Post-Retirement Medical Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Benefits | |||
Change in Projected Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 190,678 | $ 259,751 | |
Service cost | 3,196 | 5,644 | $ 6,316 |
Interest cost | 10,142 | 7,401 | 6,833 |
Actuarial (gain) loss | 8,525 | (72,710) | |
Benefits/expenses paid | (9,578) | (9,408) | |
Projected benefit obligation at end of year | 202,963 | 190,678 | 259,751 |
Changes in Plan Assets: | |||
Fair value of plan assets at beginning of year | 186,906 | 233,524 | |
Actual return on plan assets | 25,031 | (40,299) | |
Employer contributions | 2,946 | 3,089 | |
Benefits/expenses paid | (9,578) | (9,408) | |
Fair value of plan assets at end of year | 205,305 | 186,906 | 233,524 |
Funded Status: | |||
Overfunded/(underfunded) amount recognized | 2,342 | (3,772) | |
Post-Retirement Medical Benefits | |||
Change in Projected Benefit Obligation: | |||
Projected benefit obligation at beginning of year | 2,014 | 2,686 | |
Service cost | 130 | 129 | 149 |
Interest cost | 106 | 60 | 110 |
Actuarial (gain) loss | 49 | (570) | |
Benefits/expenses paid | (334) | (291) | |
Projected benefit obligation at end of year | 1,965 | 2,014 | 2,686 |
Changes in Plan Assets: | |||
Fair value of plan assets at beginning of year | 11,240 | 13,773 | |
Actual return on plan assets | 1,921 | (2,242) | |
Employer contributions | 265 | 263 | |
Benefits/expenses paid | (599) | (554) | |
Fair value of plan assets at end of year | 12,827 | 11,240 | $ 13,773 |
Funded Status: | |||
Overfunded/(underfunded) amount recognized | $ 10,862 | $ 9,226 |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Benefits and Post-Retirement Medical Benefits Recognized on Balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amounts recognized on the balance sheets: | |||
Non-current liabilities | $ (32,652) | $ (33,636) | |
Pension Benefits | |||
Amounts recognized on the balance sheets: | |||
Non-current assets | 2,342 | 0 | |
Current liabilities | 0 | 0 | |
Non-current liabilities | 0 | (3,772) | |
Net amount recognized | 2,342 | (3,772) | |
Amounts recognized in regulatory assets (liabilities) consist of: | |||
Prior service cost (credit) | 1,454 | 1,889 | |
Net loss (gain) | (1,899) | 4,123 | |
Regulatory assets (liabilities) | (445) | 6,012 | $ 25,691 |
Prefunded plan costs | (1,897) | (2,240) | |
Net liability (asset) recognized | (2,342) | 3,772 | |
Changes in plan assets and benefit obligations recognized in regulatory assets (liabilities): | |||
Regulatory asset (liability) at beginning of year | 6,012 | 25,691 | |
Net loss (gain) | (6,023) | (19,245) | |
New prior service cost | 0 | 0 | |
Amortization of prior service (cost) credit | (434) | (434) | |
Amortization of net gain (loss) | 0 | 0 | |
Total change in regulatory asset (liability) | (6,457) | (19,679) | |
Regulatory asset (liability) at end of year | (445) | 6,012 | 25,691 |
Net periodic pension costs | 3,289 | 313 | $ 4,859 |
Change in regulatory asset (liability) | (6,457) | (19,679) | |
Total recognized in net periodic pension cost and regulatory asset (liability) | (3,168) | (19,366) | |
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: | |||
Projected benefit obligation | 202,963 | 190,678 | |
Accumulated benefit obligation | 192,986 | 181,376 | |
Fair value of plan assets | $ 205,305 | $ 186,906 | |
Weighted-average assumptions used to determine benefit obligations at December 31: | |||
Discount rate | 5.16% | 5.41% | |
Pension Benefits | Minimum | |||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Pension Benefits | Maximum | |||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||
Rate of compensation increase | 7% | 7% | 7% |
Post-Retirement Medical Benefits | |||
Amounts recognized on the balance sheets: | |||
Non-current assets | $ 10,862 | $ 9,226 | |
Current liabilities | 0 | 0 | |
Non-current liabilities | 0 | 0 | |
Net amount recognized | 10,862 | 9,226 | |
Amounts recognized in regulatory assets (liabilities) consist of: | |||
Prior service cost (credit) | 0 | 0 | |
Net loss (gain) | (6,272) | (5,846) | |
Regulatory assets (liabilities) | (6,272) | (5,846) | $ (9,839) |
Prefunded plan costs | (4,590) | (3,380) | |
Net liability (asset) recognized | (10,862) | (9,226) | |
Changes in plan assets and benefit obligations recognized in regulatory assets (liabilities): | |||
Regulatory asset (liability) at beginning of year | (5,846) | (9,839) | |
Net loss (gain) | (1,395) | 2,259 | |
New prior service cost | 0 | 0 | |
Amortization of prior service (cost) credit | 0 | 0 | |
Amortization of net gain (loss) | 969 | 1,734 | |
Total change in regulatory asset (liability) | (426) | 3,993 | |
Regulatory asset (liability) at end of year | (6,272) | (5,846) | (9,839) |
Net periodic pension costs | (1,210) | (2,132) | $ (1,695) |
Change in regulatory asset (liability) | (426) | 3,993 | |
Total recognized in net periodic pension cost and regulatory asset (liability) | (1,636) | 1,861 | |
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: | |||
Projected benefit obligation | 1,965 | 2,014 | |
Fair value of plan assets | $ 12,827 | $ 11,240 | |
Weighted-average assumptions used to determine benefit obligations at December 31: | |||
Discount rate | 5.04% | 5.34% |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Pension Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Union plan | |||
Weighted-average assumptions used to determine net periodic cost: | |||
Expected long-term return on plan assets | 5.50% | 5.50% | 5.75% |
Non-union plan | |||
Weighted-average assumptions used to determine net periodic cost: | |||
Expected long-term return on plan assets | 3.90% | 3.90% | 4% |
Pension Benefits | |||
Components of Net Periodic Benefits Cost: | |||
Service cost | $ 3,196 | $ 5,644 | $ 6,316 |
Interest cost | 10,142 | 7,401 | 6,833 |
Expected return on plan assets | (10,483) | (13,166) | (12,541) |
Amortization of prior service cost (credit) | 434 | 434 | 434 |
Amortization of actuarial (gain) loss | 0 | 0 | 3,817 |
Net periodic pension cost under accounting standards | 3,289 | 313 | 4,859 |
Regulatory adjustment | (281) | 0 | (1,277) |
Total expense recognized, before surcharges and allocation to overhead pool | $ 3,008 | $ 313 | $ 3,582 |
Weighted-average assumptions used to determine net periodic cost: | |||
Discount rate | 5.41% | 2.89% | 2.55% |
Expected long-term return on plan assets | 5.75% | 5.75% | 6% |
Pension Benefits | Minimum | |||
Weighted-average assumptions used to determine net periodic cost: | |||
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Pension Benefits | Maximum | |||
Weighted-average assumptions used to determine net periodic cost: | |||
Rate of compensation increase | 7% | 7% | 7% |
Post-Retirement Medical Benefits | |||
Components of Net Periodic Benefits Cost: | |||
Service cost | $ 130 | $ 129 | $ 149 |
Interest cost | 106 | 60 | 110 |
Expected return on plan assets | (477) | (587) | (537) |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Amortization of actuarial (gain) loss | (969) | (1,734) | (1,417) |
Net periodic pension cost under accounting standards | (1,210) | (2,132) | (1,695) |
Regulatory adjustment | 0 | 0 | 0 |
Total expense recognized, before surcharges and allocation to overhead pool | $ (1,210) | $ (2,132) | $ (1,695) |
Weighted-average assumptions used to determine net periodic cost: | |||
Discount rate | 5.34% | 2.46% | 2.20% |
Employee Benefit Plans - Asset
Employee Benefit Plans - Asset Allocation (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Pension Benefits | ||
Employee benefit plans | ||
Actual Asset Allocations: | 100% | 100% |
Target Asset Allocations: | 100% | 100% |
Pension Benefits | Equity securities | ||
Employee benefit plans | ||
Actual Asset Allocations: | 56% | 56% |
Target Asset Allocations: | 60% | 60% |
Pension Benefits | Debt securities | ||
Employee benefit plans | ||
Actual Asset Allocations: | 39% | 39% |
Target Asset Allocations: | 40% | 40% |
Pension Benefits | Real Estate Funds | ||
Employee benefit plans | ||
Actual Asset Allocations: | 5% | 5% |
Pension Benefits | Cash equivalents | ||
Employee benefit plans | ||
Actual Asset Allocations: | 0% | 0% |
Post-Retirement Medical Benefits | ||
Employee benefit plans | ||
Actual Asset Allocations: | 100% | 100% |
Target Asset Allocations: | 100% | 100% |
Post-Retirement Medical Benefits | Equity securities | ||
Employee benefit plans | ||
Actual Asset Allocations: | 60% | 59% |
Target Asset Allocations: | 60% | 60% |
Post-Retirement Medical Benefits | Debt securities | ||
Employee benefit plans | ||
Actual Asset Allocations: | 39% | 39% |
Target Asset Allocations: | 40% | 40% |
Post-Retirement Medical Benefits | Real Estate Funds | ||
Employee benefit plans | ||
Actual Asset Allocations: | 0% | 0% |
Post-Retirement Medical Benefits | Cash equivalents | ||
Employee benefit plans | ||
Actual Asset Allocations: | 1% | 2% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Fair Value Measured by Net Asset Value (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Employee benefit plans | |||
Fair Value | $ 205,305 | $ 186,906 | $ 233,524 |
Unfunded Commitments | 0 | 0 | |
Cash equivalents | |||
Employee benefit plans | |||
Fair Value | 814 | 801 | |
Unfunded Commitments | 0 | 0 | |
Fixed income fund | |||
Employee benefit plans | |||
Fair Value | 80,737 | 73,863 | |
Unfunded Commitments | 0 | 0 | |
Total equity funds | |||
Employee benefit plans | |||
Fair Value | 114,309 | 103,947 | |
Unfunded Commitments | 0 | ||
U.S. small/mid cap funds | |||
Employee benefit plans | |||
Fair Value | 19,162 | 17,136 | |
Unfunded Commitments | 0 | 0 | |
U.S. large cap funds | |||
Employee benefit plans | |||
Fair Value | 49,770 | 44,572 | |
Unfunded Commitments | 0 | 0 | |
International funds | |||
Employee benefit plans | |||
Fair Value | 45,377 | 42,239 | |
Unfunded Commitments | 0 | 0 | |
Real estate funds | |||
Employee benefit plans | |||
Fair Value | 9,445 | 8,295 | |
Unfunded Commitments | $ 0 | $ 0 |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value Hierarchy (Details) - Post-Retirement Medical Benefits - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Employee benefit plans | |||
Total investments measured at fair value | $ 12,827 | $ 11,240 | $ 13,773 |
Fair Value | |||
Employee benefit plans | |||
Total investments measured at fair value | 12,827 | 11,240 | |
Level 1 | |||
Employee benefit plans | |||
Total investments measured at fair value | 12,827 | 11,240 | |
Level 2 | |||
Employee benefit plans | |||
Total investments measured at fair value | 0 | 0 | |
Level 3 | |||
Employee benefit plans | |||
Total investments measured at fair value | 0 | 0 | |
Cash equivalents | Fair Value | |||
Employee benefit plans | |||
Total investments measured at fair value | 189 | 215 | |
Cash equivalents | Level 1 | |||
Employee benefit plans | |||
Total investments measured at fair value | 189 | 215 | |
Cash equivalents | Level 2 | |||
Employee benefit plans | |||
Total investments measured at fair value | 0 | 0 | |
Cash equivalents | Level 3 | |||
Employee benefit plans | |||
Total investments measured at fair value | 0 | 0 | |
Fixed income fund | Fair Value | |||
Employee benefit plans | |||
Total investments measured at fair value | 5,001 | 4,380 | |
Fixed income fund | Level 1 | |||
Employee benefit plans | |||
Total investments measured at fair value | 5,001 | 4,380 | |
Fixed income fund | Level 2 | |||
Employee benefit plans | |||
Total investments measured at fair value | 0 | 0 | |
Fixed income fund | Level 3 | |||
Employee benefit plans | |||
Total investments measured at fair value | 0 | 0 | |
U.S. equity securities | Fair Value | |||
Employee benefit plans | |||
Total investments measured at fair value | 7,637 | 6,645 | |
U.S. equity securities | Level 1 | |||
Employee benefit plans | |||
Total investments measured at fair value | 7,637 | $ 6,645 | |
U.S. equity securities | Level 2 | |||
Employee benefit plans | |||
Total investments measured at fair value | 0 | ||
U.S. equity securities | Level 3 | |||
Employee benefit plans | |||
Total investments measured at fair value | $ 0 |
Employee Benefit Plans - Future
Employee Benefit Plans - Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Pension Benefits | |
Employee benefit plans | |
2024 | $ 10,604 |
2025 | 11,089 |
2026 | 11,539 |
2027 | 12,075 |
2028 | 12,568 |
Thereafter | 70,006 |
Total | 127,881 |
Post-Retirement Medical Benefits | |
Employee benefit plans | |
2024 | 295 |
2025 | 279 |
2026 | 276 |
2027 | 252 |
2028 | 226 |
Thereafter | 713 |
Total | $ 2,041 |
Employee Benefit Plans - Fair_2
Employee Benefit Plans - Fair Value of Assets (Details) - SERP - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Employee benefit plans | ||
Total investments measured at fair value | $ 0 | $ 0 |
Rabbi Trust | Fair Value | ||
Employee benefit plans | ||
Total investments measured at fair value | 34,143 | 27,531 |
Level 1 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | 34,143 | 27,531 |
Level 2 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | 0 | 0 |
Level 3 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | 0 | 0 |
Cash equivalents | Rabbi Trust | Fair Value | ||
Employee benefit plans | ||
Total investments measured at fair value | 6 | 9 |
Cash equivalents | Level 1 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | 6 | 9 |
Cash equivalents | Level 2 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | 0 | 0 |
Cash equivalents | Level 3 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | 0 | 0 |
Fixed income securities | Rabbi Trust | Fair Value | ||
Employee benefit plans | ||
Total investments measured at fair value | 13,676 | 10,962 |
Fixed income securities | Level 1 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | 13,676 | 10,962 |
Fixed income securities | Level 2 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | 0 | 0 |
Fixed income securities | Level 3 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | 0 | 0 |
Equity securities | Rabbi Trust | Fair Value | ||
Employee benefit plans | ||
Total investments measured at fair value | 20,461 | 16,560 |
Equity securities | Level 1 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | 20,461 | 16,560 |
Equity securities | Level 2 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | 0 | 0 |
Equity securities | Level 3 | Rabbi Trust | ||
Employee benefit plans | ||
Total investments measured at fair value | $ 0 | $ 0 |
Employee Benefit Plans - Reconc
Employee Benefit Plans - Reconciliation of Benefit Obligations and Change in Benefit Obligation (Details) - SERP - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 30,807 | $ 36,089 | |
Service cost | 1,248 | 1,191 | $ 1,392 |
Interest cost | 1,644 | 1,022 | 915 |
Actuarial (gain) loss | 840 | (6,522) | |
Benefits paid | (945) | (973) | |
Projected benefit obligation at end of year | 33,594 | 30,807 | $ 36,089 |
Changes in Plan Assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Funded Status: | |||
Net amount recognized as accrued pension cost | $ (33,594) | $ (30,807) |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Defined Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amounts recognized on the balance sheets: | |||
Non-current liabilities | $ (32,652) | $ (33,636) | |
SERP | |||
Amounts recognized on the balance sheets: | |||
Current liabilities | (942) | (942) | |
Non-current liabilities | (32,652) | (29,865) | |
Net amount recognized | (33,594) | (30,807) | |
Amounts recognized in regulatory assets (liabilities) consist of: | |||
Prior service cost (credit) | 0 | 0 | |
Net loss | 2,869 | 1,995 | |
Regulatory assets (liabilities) | 2,869 | 1,995 | $ 9,097 |
Unfunded accrued cost | 30,725 | 28,812 | |
Net liability (asset) recognized | 33,594 | 30,807 | |
Changes in plan assets and benefit obligations recognized in regulatory assets (liabilities): | |||
Regulatory asset (liability) at beginning of year | 1,995 | 9,097 | |
Net gain (loss) | 840 | (6,522) | |
Amortization of prior service credit | 0 | 0 | |
Amortization of net loss | 34 | (580) | |
Total change in regulatory asset (liability) | 874 | (7,102) | |
Regulatory asset (liability) at end of year | 2,869 | 1,995 | 9,097 |
Net periodic pension costs | 2,858 | 2,793 | 3,985 |
Change in regulatory asset (liability) | 874 | (7,102) | |
Total recognized in net periodic pension cost and regulatory asset (liability) | 3,732 | (4,309) | |
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: | |||
Projected benefit obligation | 33,594 | 30,807 | $ 36,089 |
Accumulated benefit obligation | 30,794 | 28,157 | |
Fair value of plan assets | $ 0 | $ 0 | |
Weighted-average assumptions used to determine benefit obligations at December 31: | |||
Discount rate | 5.15% | 5.42% | |
SERP | Maximum | |||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||
Rate of compensation increase | 4% | 4% | |
SERP | Minimum | |||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||
Rate of compensation increase | 5.50% | 5.50% |
Employee Benefit Plans - Comp_2
Employee Benefit Plans - Components of SERP Expense (Details) - SERP - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Net Periodic Benefits Cost: | |||
Service cost | $ 1,248 | $ 1,191 | $ 1,392 |
Interest cost | 1,644 | 1,022 | 915 |
Amortization of net (gain) loss | (34) | 580 | 1,678 |
Net periodic pension cost under accounting standards | $ 2,858 | $ 2,793 | $ 3,985 |
Weighted-average assumptions used to determine net periodic cost: | |||
Discount rate | 5.42% | 2.87% | 2.52% |
Minimum | |||
Weighted-average assumptions used to determine net periodic cost: | |||
Rate of compensation increase | 5.50% | 5.50% | |
Maximum | |||
Weighted-average assumptions used to determine net periodic cost: | |||
Rate of compensation increase | 4% | 4% |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments for SERP (Details) - SERP $ in Thousands | Dec. 31, 2023 USD ($) |
Employee benefit plans | |
2024 | $ 942 |
2025 | 2,344 |
2026 | 2,519 |
2027 | 2,630 |
2028 | 2,604 |
Thereafter | 13,551 |
Total | $ 24,590 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) stock_plan shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Stock compensation plans | |||
Number of stock incentive plans | stock_plan | 3 | ||
Vesting period | 3 years | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 272 | ||
Stock-based compensation recognized in the income statement, before taxes | 3,298 | $ 2,571 | $ 2,566 |
Capitalized equity-based compensation cost | $ 450 | 290 | 336 |
Immediate vesting for employees of certain age and above | 55 years | ||
GSWC | |||
Stock compensation plans | |||
Stock-based compensation recognized in the income statement, before taxes | $ 2,994 | 2,269 | 2,313 |
Capitalized equity-based compensation cost | 450 | 290 | 336 |
Nonqualified stock options | |||
Stock compensation plans | |||
Tax benefits from exercise of stock-based awards | 750 | 900 | 1,400 |
Nonqualified stock options | GSWC | |||
Stock compensation plans | |||
Tax benefits from exercise of stock-based awards | 750 | 900 | 1,400 |
Restricted Stock Units | Employees and directors | |||
Stock compensation plans | |||
Stock-based compensation recognized in the income statement, before taxes | 3,298 | 2,571 | 2,566 |
Restricted Stock Units | Employees and directors | GSWC | |||
Stock compensation plans | |||
Stock-based compensation recognized in the income statement, before taxes | $ 2,994 | $ 2,269 | $ 2,313 |
Performance awards | |||
Stock compensation plans | |||
Vesting period | 3 years | ||
2000 and 2008 Employee Plans | Nonqualified stock options | |||
Stock compensation plans | |||
Percentage of rights vesting in the third year from the date of grant | 34% | ||
2000 and 2008 Employee Plans | Restricted Stock Units | |||
Stock compensation plans | |||
Common stock entitled to be received under each award | shares | 1 | ||
Percentage of rights vesting in the first two years from the date of grant | 33% | ||
Percentage of rights vesting in the third year from the date of grant | 34% | ||
2000 and 2008 Employee Plans | Performance awards | |||
Stock compensation plans | |||
Vesting period | 3 years | ||
Percentage of rights vesting in the first two years from the date of grant | 33% | ||
Percentage of rights vesting in the third year from the date of grant | 34% | ||
2003 and 2013 Directors plans | |||
Stock compensation plans | |||
Vesting period | 90 days | ||
Maximum | |||
Stock compensation plans | |||
Chang in control, term | 24 months | ||
Weighted Average | |||
Stock compensation plans | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 6 months | ||
Weighted Average | Restricted Stock [Member] | |||
Stock compensation plans | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 6 months 10 days |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans 2 (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Additional disclosure | |||
Vesting period | 3 years | ||
Unrecognized compensation cost | $ 272 | ||
Weighted Average Grant-Date Value | |||
Capitalized equity-based compensation cost | $ 450 | $ 290 | $ 336 |
Maximum | |||
Additional disclosure | |||
Percentage of target amount of performance shares | 200% | ||
Minimum | |||
Additional disclosure | |||
Percentage of target amount of performance shares | 0% | ||
Weighted Average | |||
Additional disclosure | |||
Expected recognition period for unrecognized compensation cost | 1 year 6 months | ||
Restricted Stock Units | |||
Additional disclosure | |||
Unrecognized compensation cost related to performance awards | $ 622 | ||
Number of Restricted/Performance Share Units | |||
Restricted share units at the beginning of the period (in shares) | 47,552 | ||
Granted (in shares) | 19,837 | ||
Vested (in shares) | (16,574) | ||
Forfeited (in shares) | (488) | ||
Restricted share units at the end of the period (in shares) | 50,327 | 47,552 | |
Weighted Average Grant-Date Value | |||
Restricted share units at the beginning of the period (in dollars per share) | $ 49.01 | ||
Granted (in dollars per share) | 94.71 | ||
Vested (in dollars per share) | 87.28 | ||
Forfeited (in dollars per share) | 92.84 | ||
Restricted share units at the end of the period (in dollars per share) | $ 54 | $ 49.01 | |
Performance awards | |||
Additional disclosure | |||
Vesting period | 3 years | ||
Period to meet the performance goals | 3 years | ||
Number of Restricted/Performance Share Units | |||
Restricted share units at the beginning of the period (in shares) | 49,435 | ||
Granted (in shares) | 19,696 | ||
Performance criteria adjustment (in shares) | 8,321 | ||
Vested (in shares) | (12,095) | ||
Restricted share units at the end of the period (in shares) | 65,357 | 49,435 | |
Weighted Average Grant-Date Value | |||
Restricted share units at the beginning of the period (in dollars per share) | $ 83.70 | ||
Granted (in dollars per share) | 96.04 | ||
Performance criteria adjustment (in dollars per share) | 91.73 | ||
Vested (in dollars per share) | 89.59 | ||
Restricted share units at the end of the period (in dollars per share) | $ 87.35 | $ 83.70 | |
Performance awards | 2000 and 2008 Employee Plans | |||
Additional disclosure | |||
Vesting period | 3 years | ||
GSWC | |||
Weighted Average Grant-Date Value | |||
Capitalized equity-based compensation cost | $ 450 | $ 290 | $ 336 |
American States Utility Services | Maximum | |||
Additional disclosure | |||
Percentage of target amount of performance shares | 250% |
Commitments (Details)
Commitments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) unit | |
GSWC | Low income rate assistance balancing accounts | |
Estimated future minimum payments | |
Total | $ 9,000 |
GSWC | Water Supply | |
Estimated future minimum payments | |
2024 | 491 |
2025 | 441 |
2026 | 391 |
2027 | 391 |
2028 | 213 |
Thereafter | 805 |
Total | 2,732 |
GSWC | Water Supply | Various third parties | |
Purchase commitments | |
Remaining amount of commitment | 1,300 |
GSWC | Water Supply | Other various third parties | |
Estimated future minimum payments | |
Total | $ 1,400 |
BVES | |
Estimated future minimum payments | |
Number of renewable energy credits that would be purchased | unit | 578,000 |
BVES | Renewables Portfolio Standard [Member] | |
Estimated future minimum payments | |
Derivative, Term of Contract | 10 years |
BVES | Renewables Portfolio Standard (Bundled Product) | |
Estimated future minimum payments | |
Derivative, Term of Contract | 11 years |
BVES | Electric Power Purchase Commitments | |
Estimated future minimum payments | |
Total | $ 45,800 |
Minimum | BVES | |
Purchase commitments | |
Derivative, Term of Contract | 3 years |
Maximum | BVES | |
Purchase commitments | |
Derivative, Term of Contract | 5 years |
Purchase power contract | Minimum | BVES | |
Purchase commitments | |
Derivative, Term of Contract | 3 years |
Purchase power contract | Maximum | BVES | |
Purchase commitments | |
Derivative, Term of Contract | 5 years |
Commitments Commitments 2 (Deta
Commitments Commitments 2 (Details) - BVES | 12 Months Ended |
Dec. 31, 2023 unit | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Number of renewable energy credits that would be purchased | 578,000 |
Purchased Renewable Energy Credits Number Delivered in 2023 | 30,000 |
Minimum | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Derivative, Term of Contract | 3 years |
Maximum | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Derivative, Term of Contract | 5 years |
Commitments (Details)_2
Commitments (Details) $ in Thousands | 1 Months Ended | 12 Months Ended |
Jan. 31, 2024 unit | Dec. 31, 2023 USD ($) unit | |
BVES | ||
Purchase commitments | ||
Number of renewable energy credits that would be purchased | unit | 578,000 | |
Bundled Purchased Renewable Energy Credits Number | unit | 587,000 | |
Bundled Purchased Renewable Energy Credits Number | unit | 587,000 | |
Purchased Renewable Energy Credits Number Delivered in 2023 | unit | 30,000 | |
BVES | Subsequent Event | ||
Purchase commitments | ||
Purchased Renewable Energy Credits Number Delivered in 2024 | unit | 15,000 | |
Purchased Renewable Energy Credits Number Delivered in 2024 | unit | 15,000 | |
BVES | Minimum | ||
Purchase commitments | ||
Derivative, Term of Contract | 3 years | |
BVES | Minimum | Purchase power contract | ||
Purchase commitments | ||
Derivative, Term of Contract | 3 years | |
BVES | Maximum | ||
Purchase commitments | ||
Derivative, Term of Contract | 5 years | |
BVES | Maximum | Purchase power contract | ||
Purchase commitments | ||
Derivative, Term of Contract | 5 years | |
BVES | Electric Power Purchase Commitments | ||
Purchase commitments | ||
Purchase Obligation | $ 45,800 | |
GSWC | Water Supply | ||
Purchase commitments | ||
2024 | 491 | |
2025 | 441 | |
2026 | 391 | |
2027 | 391 | |
2028 | 213 | |
Thereafter | 805 | |
Purchase Obligation | $ 2,732 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) item | |
Contingencies | |
Environmental Loss Contingency Statement OfFinancial Position Extensible Enumeration Not Disclosed Flag | estimated remaining cost |
Contracted services: | Maximum | |
Contingencies | |
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 50 years |
American States Utility Services | Contracted services: | Maximum | |
Contingencies | |
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 50 years |
Environmental Clean-Up and Remediation | GSWC | |
Contingencies | |
Number of Plant Sites | item | 1 |
Amount paid by the State of California Underground Storage Tank Fund for clean-up and remediation of plant facilities | $ 1.5 |
Environmental Costs Recognized, Capitalized | 6.3 |
Accrued liability for the estimated additional cost to complete the clean-up at the site | $ 1.3 |
Leases Lease- additional inform
Leases Lease- additional information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease liabilities | $ 1,856 | $ 1,892 |
Operating lease liabilities | 6,619 | 8,090 |
Operating lease right-of-use assets | $ 7,982 | $ 9,535 |
Leases Supplemental lease infor
Leases Supplemental lease information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Lease, Cost | $ 2,486 | $ 2,609 |
Operating lease right-of-use assets | 7,982 | 9,535 |
Short-term Lease, Cost | $ 147 | $ 198 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 6 months 18 days | 5 years 3 months 7 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4% | 3.90% |
Operating Lease, Payments, Use | $ 565 | $ 1,569 |
Leases Lessee Operating Lease L
Leases Lessee Operating Lease Liability Maturity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
2024 | $ 2,161 | ||
2024 | 2,066 | ||
2025 | 1,816 | ||
2026 | 1,556 | ||
2027 | 1,305 | ||
Thereafter | 386 | ||
Total lease payments | 9,290 | ||
Less: imputed interest | 815 | ||
Total lease obligations | 8,475 | ||
Less: current obligations | 1,856 | $ 1,892 | |
Long-term lease obligations | 6,619 | 8,090 | |
Operating Lease, Expense | $ 2,300 | $ 2,600 | $ 2,500 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Details of reportable segment | |||
Operating revenues | $ 595,699 | $ 491,528 | $ 498,853 |
Operating income (loss) | 196,740 | 126,636 | 140,977 |
Interest expense (income), net | 35,346 | 24,701 | 21,341 |
Net utility plant | 1,892,280 | 1,753,766 | 1,626,004 |
Depreciation and amortization expense | 42,403 | 41,315 | 39,596 |
Income tax benefit | 41,599 | 23,664 | 30,423 |
Capital additions | $ 188,540 | 166,240 | 144,515 |
GSWC | |||
Details of reportable segment | |||
Number of reportable segments | segment | 1 | ||
Operating revenues | $ 433,473 | 340,602 | 347,112 |
Operating income (loss) | 159,177 | 92,455 | 107,573 |
Net utility plant | 1,735,534 | 1,616,718 | |
Depreciation and amortization expense | 35,886 | 34,805 | 33,384 |
Income tax benefit | 35,689 | 16,346 | 22,095 |
Depreciation on transportation equipment | 212 | ||
GSWC | Water | |||
Details of reportable segment | |||
Operating revenues | 433,473 | 340,602 | 347,112 |
Operating income (loss) | 159,177 | 92,455 | 107,573 |
Interest expense (income), net | 25,726 | 21,659 | 21,046 |
Net utility plant | 1,735,534 | 1,616,718 | 1,499,745 |
Depreciation and amortization expense | 35,886 | 34,805 | 33,384 |
Income tax benefit | 35,689 | 16,346 | 22,095 |
Capital additions | 160,939 | 146,730 | 123,526 |
BVES | Electric | |||
Details of reportable segment | |||
Operating revenues | 41,832 | 39,986 | 38,345 |
Operating income (loss) | 11,196 | 11,740 | 10,738 |
Interest expense (income), net | 2,238 | 831 | 141 |
Net utility plant | 140,279 | 119,560 | 106,508 |
Depreciation and amortization expense | 3,256 | 2,792 | 2,572 |
Income tax benefit | 1,515 | 2,439 | 2,975 |
Capital additions | 25,372 | 18,069 | 19,859 |
American States Utility Services | Contracted services: | |||
Details of reportable segment | |||
Operating revenues | 120,394 | 110,940 | 113,396 |
Operating income (loss) | 26,151 | 22,449 | 22,675 |
Interest expense (income), net | 1,321 | (132) | (637) |
Net utility plant | 16,467 | 17,488 | 19,751 |
Depreciation and amortization expense | 3,261 | 3,718 | 3,640 |
Income tax benefit | 6,109 | 5,476 | 5,434 |
Capital additions | 2,229 | 1,441 | 1,130 |
Golden State Water Company and Bear Valley Electric Service, Inc. | |||
Details of reportable segment | |||
Depreciation on transportation equipment | $ 851 | 382 | 379 |
Parent Company | |||
Details of reportable segment | |||
Number of reportable segments | segment | 3 | ||
Operating revenues | $ 0 | 0 | 0 |
Interest expense (income), net | 6,061 | 2,343 | 791 |
Net utility plant | 0 | 0 | 0 |
Depreciation and amortization expense | 0 | 0 | 0 |
Income tax benefit | (1,714) | (597) | (81) |
Capital additions | 0 | 0 | 0 |
Parent Company | Intersegment Eliminations | |||
Details of reportable segment | |||
Operating income (loss) | $ 216 | $ (8) | $ (9) |
Business Segments 2 (Details)
Business Segments 2 (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting [Abstract] | |||
Total utility plant | $ 1,892,280 | $ 1,753,766 | $ 1,626,004 |
Other assets | 353,842 | 280,608 | |
Total Assets | $ 2,246,122 | $ 2,034,374 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Feb. 28, 2022 | Jan. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in allowance for doubtful accounts | ||||||
Balance at beginning of year | $ 3,569,000 | $ 4,440,000 | $ 3,569,000 | $ 5,316,000 | ||
Provision charged to expense | 932,000 | 2,842,000 | 8,150,000 | |||
Allowance for doubtful accounts receivable charge offs net of recoveries | (1,782,000) | (1,971,000) | (9,897,000) | |||
Balance at end of year | $ 4,440,000 | 3,590,000 | 4,440,000 | 3,569,000 | ||
Components of allowance for doubtful accounts | ||||||
Allowance for doubtful accounts related to accounts receivable-customer | 4,387,000 | 3,537,000 | 4,387,000 | 3,516,000 | ||
Allowance for doubtful accounts related to other accounts receivable | 53,000 | 53,000 | 53,000 | 53,000 | ||
Total allowance for doubtful accounts | 4,440,000 | 3,590,000 | 4,440,000 | 3,569,000 | ||
GSWC | ||||||
Changes in allowance for doubtful accounts | ||||||
Balance at beginning of year | 3,221,000 | 4,196,000 | 3,221,000 | 4,960,000 | ||
Provision charged to expense | 754,000 | 2,501,000 | 7,732,000 | |||
Allowance for doubtful accounts receivable charge offs net of recoveries | (1,503,000) | (1,526,000) | (9,471,000) | |||
Balance at end of year | 4,196,000 | 3,447,000 | 4,196,000 | 3,221,000 | ||
Components of allowance for doubtful accounts | ||||||
Allowance for doubtful accounts related to accounts receivable-customer | 4,143,000 | 3,394,000 | 4,143,000 | 3,168,000 | ||
Allowance for doubtful accounts related to other accounts receivable | 53,000 | 53,000 | 53,000 | 53,000 | ||
Total allowance for doubtful accounts | 4,196,000 | 3,447,000 | 4,196,000 | $ 3,221,000 | ||
Relief funding | $ 9,500,000 | $ 3,500,000 | 9,500,000 | |||
BVES | ||||||
Components of allowance for doubtful accounts | ||||||
Relief funding | $ 152,000 | $ 321,000 | $ 473,000 |
Statement of Cash Flows, Supp_3
Statement of Cash Flows, Supplemental Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxes and Interest Paid: | |||
Income taxes paid | $ 34,682 | $ 27,370 | $ 29,153 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | 39,367 | 26,005 | 22,540 |
Non-Cash Transactions: | |||
Accrued payables for investment in utility plant | 34,906 | 40,034 | 32,855 |
Property installed by developers and conveyed | 4,690 | 1,549 | 7,222 |
GSWC | |||
Taxes and Interest Paid: | |||
Income taxes paid | 31,625 | 20,155 | 21,428 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | 28,099 | 22,294 | 21,156 |
Non-Cash Transactions: | |||
Accrued payables for investment in utility plant | 33,465 | 38,302 | 30,656 |
Property installed by developers and conveyed | $ 4,690 | $ 1,549 | $ 7,222 |
SCHEDULE I - CONDENSED FINANC_3
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Cash and cash equivalents | $ 14,073 | $ 5,997 | ||
Total current assets | 205,978 | 151,294 | ||
Deferred taxes and other assets | 18,758 | 13,532 | ||
Total Assets | 2,246,122 | 2,034,374 | ||
Liabilities and Capitalization | ||||
Notes payable to bank | 42,000 | 255,500 | ||
Income taxes payable | 492 | 1,848 | ||
Other liabilities | 11,506 | 10,996 | ||
Total current liabilities | 166,623 | 396,522 | ||
Notes payable to bank | 291,500 | 22,000 | ||
Total other credits | 727,835 | 481,756 | ||
Common shareholder’s equity | 776,109 | 709,549 | $ 685,947 | $ 641,673 |
Total capitalization | 1,351,664 | 1,156,096 | ||
Total liabilities and capitalization | 2,246,122 | 2,034,374 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 3,547 | 93 | $ 51 | $ 441 |
Intercompany receivable | 116 | 0 | ||
Income taxes receivable | 39 | 20 | ||
Intercompany note receivables | 39,044 | 159,582 | ||
Total current assets | 42,746 | 159,695 | ||
Investments in subsidiaries | 870,020 | 799,802 | ||
Deferred taxes and other assets | 10,135 | 9,891 | ||
Total Assets | 922,901 | 969,388 | ||
Liabilities and Capitalization | ||||
Notes payable to bank | 0 | 255,500 | ||
Income taxes payable | 2,422 | 2,158 | ||
Other liabilities | 577 | 454 | ||
Total current liabilities | 2,999 | 258,112 | ||
Notes payable to bank | 141,500 | 0 | ||
Deferred taxes and other liabilities | 2,293 | 1,727 | ||
Total other credits | 143,793 | 1,727 | ||
Common shareholder’s equity | 776,109 | 709,549 | ||
Total capitalization | 776,109 | 709,549 | ||
Total liabilities and capitalization | $ 922,901 | $ 969,388 |
SCHEDULE I - CONDENSED FINANC_4
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - Condensed Statements of Income (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed financial statements | |||
Income before income taxes | $ 166,520 | $ 102,060 | $ 124,770 |
Income tax benefit | 41,599 | 23,664 | 30,423 |
Net Income | $ 124,921 | $ 78,396 | $ 94,347 |
Weighted Average Number of Shares Outstanding (in shares) | 36,976 | 36,955 | 36,921 |
Basic Earnings Per Common Share (usd per share) | $ 3.37 | $ 2.12 | $ 2.55 |
Weighted Average Number of Diluted Common Shares Outstanding (in shares) | 37,077 | 37,039 | 37,010 |
Fully Diluted Earnings per Common Share (in USD per share) | $ 3.36 | $ 2.11 | $ 2.55 |
Dividends Paid Per Common Share (in USD per share) | $ 1.655 | $ 1.525 | $ 1.400 |
Parent Company | |||
Condensed financial statements | |||
Operating revenues and other income | $ 0 | $ 0 | $ 0 |
Operating expenses and other expenses | 5,576 | 2,093 | 542 |
Loss before equity in earnings of subsidiaries and income taxes | (5,576) | (2,093) | (542) |
Equity in earnings of subsidiaries | 128,783 | 79,892 | 94,808 |
Income before income taxes | 123,207 | 77,799 | 94,266 |
Income tax benefit | (1,714) | (597) | (81) |
Net Income | $ 124,921 | $ 78,396 | $ 94,347 |
Weighted Average Number of Shares Outstanding (in shares) | 36,976 | 36,955 | 36,921 |
Basic Earnings Per Common Share (usd per share) | $ 3.37 | $ 2.12 | $ 2.55 |
Weighted Average Number of Diluted Common Shares Outstanding (in shares) | 37,077 | 37,039 | 37,010 |
Fully Diluted Earnings per Common Share (in USD per share) | $ 3.36 | $ 2.11 | $ 2.55 |
Dividends Paid Per Common Share (in USD per share) | $ 1.655 | $ 1.525 | $ 1.400 |
SCHEDULE I - CONDENSED FINANC_5
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed financial statements | |||
Net cash provided (used) | $ 67,683 | $ 117,799 | $ 115,584 |
Cash Flows From Investing Activities: | |||
Net cash provided (used) | (188,764) | (167,102) | (145,092) |
Cash Flows From Financing Activities: | |||
Dividends paid | (61,195) | (56,356) | (51,689) |
Net cash provided (used) | 129,157 | 50,337 | (2,266) |
Net change in cash and cash equivalents | 8,076 | 1,034 | (31,774) |
Cash and cash equivalents, beginning of period | 5,997 | ||
Cash and cash equivalents, end of year | 14,073 | 5,997 | |
Parent Company | |||
Condensed financial statements | |||
Net cash provided (used) | 67,041 | 56,398 | 36,799 |
Cash Flows From Investing Activities: | |||
Loans (made to)/repaid from, wholly-owned subsidiaries | 121,000 | (81,000) | (46,000) |
Increase in investment of subsidiary | (10,000) | 0 | 0 |
Net cash provided (used) | 111,000 | (81,000) | (46,000) |
Cash Flows From Financing Activities: | |||
Net borrowings on notes payable to banks | (113,392) | 81,000 | 60,500 |
Proceeds from note payable to GSWC | 0 | 0 | (26,000) |
Repayment of note payable to GSWC | 0 | 0 | 26,000 |
Dividends paid | (61,195) | (56,356) | (51,689) |
Net cash provided (used) | (174,587) | 24,644 | 8,811 |
Net change in cash and cash equivalents | 3,454 | 42 | (390) |
Cash and cash equivalents, beginning of period | 93 | 51 | 441 |
Cash and cash equivalents, end of year | $ 3,547 | $ 93 | $ 51 |
SCHEDULE I - CONDENSED FINANC_6
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - Basis of Presentation Narrative (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 06, 2023 | Jan. 13, 2023 | Apr. 22, 2022 | |
Note payable to banks | ||||||
Line of credit facility, current borrowing capacity | $ 165,000,000 | |||||
Exercise of stock options and other issuance of Common Shares | 18,371 | 25,956 | 47,182 | |||
Exercise of stock options and other issuance of Common Shares | $ 0 | $ 0 | $ 0 | |||
GSWC | ||||||
Note payable to banks | ||||||
Exercise of stock options and other issuance of Common Shares | 1 | 0 | 0 | |||
Exercise of stock options and other issuance of Common Shares | $ 10,000,000 | |||||
Debt Instrument, Face Amount | $ 130,000,000 | |||||
Common Stock | ||||||
Note payable to banks | ||||||
Exercise of stock options and other issuance of Common Shares | 19,000 | 26,000 | 47,000 | |||
Exercise of stock options and other issuance of Common Shares | $ 0 | $ 0 | $ 0 | |||
Common Stock | GSWC | ||||||
Note payable to banks | ||||||
Exercise of stock options and other issuance of Common Shares | 1 | |||||
Exercise of stock options and other issuance of Common Shares | $ 10,000,000 | |||||
Related Party | ||||||
Note payable to banks | ||||||
Line of credit facility, current borrowing capacity | 30,000,000 | |||||
Financing receivable, after allowance for credit loss | 0 | 26,000,000 | ||||
Notes Payable | $ 0 | $ 0 | ||||
Unsecured Private Placement Notes | GSWC | ||||||
Note payable to banks | ||||||
Debt Instrument, Face Amount | $ 130,000,000 | |||||
Maximum | Revolving Credit Facility | ||||||
Note payable to banks | ||||||
Line of credit facility, current borrowing capacity | $ 280,000,000 |
SCHEDULE I - CONDENSED FINANC_7
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - Note Payable to Banks Narrative (Details) $ in Thousands | 12 Months Ended | ||||||
Jun. 28, 2023 | Dec. 31, 2023 USD ($) | Nov. 06, 2023 USD ($) | Nov. 05, 2023 USD ($) | Jun. 27, 2023 USD ($) | Dec. 31, 2022 USD ($) | Apr. 22, 2022 USD ($) | |
Note payable to banks | |||||||
Debt instrument, term | 5 years | ||||||
Line of credit facility, current borrowing capacity | $ 165,000 | ||||||
Incremental expansion of borrowing capacity | $ 75,000 | ||||||
Note payable to bank, noncurrent | $ 291,500 | $ 22,000 | |||||
Revolving Credit Facility | |||||||
Note payable to banks | |||||||
Line of credit facility, current borrowing capacity | $ 150,000 | ||||||
Letters of credit | |||||||
Note payable to banks | |||||||
Maximum borrowing capacity | $ 10,000 | ||||||
Maximum | Revolving Credit Facility | |||||||
Note payable to banks | |||||||
Ratio of Indebtedness to Net Capital | 0.65 | ||||||
Maximum | Revolving Credit Facility | |||||||
Note payable to banks | |||||||
Line of credit facility, current borrowing capacity | $ 280,000 | ||||||
AWR | |||||||
Note payable to banks | |||||||
Note payable to bank, noncurrent | $ 141,500 | $ 0 | |||||
AWR | Revolving Credit Facility | |||||||
Note payable to banks | |||||||
Note payable to bank, noncurrent | $ 141,500 | ||||||
Total funded debt ratio | 0.54 | ||||||
AWR | Maximum | |||||||
Note payable to banks | |||||||
Line of credit facility, current borrowing capacity | $ 280,000 | ||||||
Parent | Revolving Credit Facility | |||||||
Note payable to banks | |||||||
Debt issuance costs, line of credit arrangements, gross | $ 632 |
SCHEDULE I - CONDENSED FINANC_8
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - Note Payable to Banks Schedule (Details) - Revolving Credit Facility - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Note payable to banks | ||
Note payable to bank | $ 333,500 | $ 277,500 |
Average Amount Outstanding | $ 243,355 | $ 226,556 |
Weighted Average Annual Interest Rate (as a percent) | 6.11% | 2.55% |
Maximum Amount Outstanding | $ 333,500 | $ 277,500 |
AWR | ||
Note payable to banks | ||
Note payable to bank | $ 141,500 | $ 255,500 |
Interest Rate at the end of the period (as a percent) | 6.45% | 5.07% |
Average Amount Outstanding | $ 156,533 | $ 213,758 |
Weighted Average Annual Interest Rate (as a percent) | 5.92% | 2.56% |
Maximum Amount Outstanding | $ 257,500 | $ 255,500 |
SCHEDULE I - CONDENSED FINANC_9
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - Dividend from Subsidiaries (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsidiaries | |||
Dividends Payable [Line Items] | |||
Payments of dividends from subsidiaries | $ (71.4) | $ (56.4) | $ (38.3) |