California Water Service (CWT) 10-Q 29 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 27, 2015
Document and Entity Information
Entity Registrant Name	CALIFORNIA WATER SERVICE GROUP
Entity Central Index Key	1,035,201
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		47,876,087
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Utility plant:
Utility plant	$ 2,460,829	$ 2,342,471
Less accumulated depreciation and amortization	(797,264)	(752,040)
Net utility plant	1,663,565	1,590,431
Current assets:
Cash and cash equivalents	50,825	19,587
Receivables:
Customers	41,574	25,803
Regulatory balancing accounts	38,112	53,199
Other	14,369	14,136
Unbilled revenue	31,276	23,740
Materials and supplies at average cost	6,087	6,041
Taxes, prepaid expense, and other assets	8,823	11,618
Total current assets	191,066	154,124
Other assets:
Regulatory assets	398,535	390,331
Goodwill	2,615	2,615
Other assets	50,739	49,850
Total other assets	451,889	442,796
Total assets	2,306,520	2,187,351
Capitalization:
Common stock, $.01 par value; 68,000 shares authorized, 47,877 and 47,806 outstanding in 2015 and 2014, respectively	479	478
Additional paid-in capital	332,290	330,558
Retained earnings	308,083	295,590
Total common stockholders’ equity	640,852	626,626
Long-term debt, less current maturities	416,447	419,233
Total capitalization	1,057,299	1,045,859
Current liabilities:
Current maturities of long-term debt	6,565	6,607
Short-term borrowings	136,615	79,115
Accounts payable	77,261	59,395
Regulatory balancing accounts	1,870	6,126
Accrued interest	9,678	4,194
Accrued expenses and other liabilities	68,781	62,269
Total current liabilities	300,770	217,706
Unamortized investment tax credits	1,947	2,032
Deferred income taxes, net	236,443	214,842
Pension and postretirement benefits other than pensions	276,525	270,865
Regulatory liabilities and other	76,799	83,279
Advances for construction	180,805	182,284
Contributions in aid of construction	175,932	170,484
Commitments and contingencies (Note 10)	0	0
Total capitalization and liabilities	$ 2,306,520	$ 2,187,351

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	68,000,000	68,000,000
Common stock, shares outstanding (in shares)	47,877,000	47,806,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Operating revenue	$ 183,543	$ 191,184	$ 449,942	$ 460,115
Operations:
Water production costs	60,437	66,980	158,661	174,297
Administrative and general	30,737	23,765	85,069	72,702
Other operations	17,872	15,692	51,227	48,072
Maintenance	5,952	4,800	15,735	14,793
Depreciation and amortization	15,342	14,648	46,015	46,788
Income taxes	15,293	19,233	21,008	22,584
Property and other taxes	5,709	5,232	16,036	15,601
Total operating expenses	151,342	150,350	393,751	394,837
Net operating income	32,201	40,834	56,191	65,278
Other income and expenses:
Non-regulated revenue	3,814	4,409	10,540	12,163
Non-regulated expenses, net	(4,454)	(4,812)	(10,201)	(11,184)
Income tax benefit on other income and expenses	262	169	(131)	(391)
Net other loss	(378)	(234)	208	588
Interest expense:
Interest expense	7,201	7,221	21,331	21,373
Less: capitalized interest	(498)	(271)	(1,472)	(851)
Net interest expense	6,703	6,950	19,859	20,522
Net Income	$ 25,120	$ 33,650	$ 36,540	$ 45,344
Earnings per share:
Basic (in dollars per share)	$ 0.52	$ 0.70	$ 0.76	$ 0.95
Diluted (in dollars per share)	$ 0.52	$ 0.70	$ 0.76	$ 0.95
Weighted average shares outstanding:
Basic (in shares)	47,878	47,803	47,861	47,787
Diluted (in shares)	47,887	47,840	47,877	47,825
Dividends declared per share of common stock (in dollars per share)	$ 0.1675	$ 0.1625	$ 0.5025	$ 0.48750

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities:
Net income	$ 36,540	$ 45,344
Adjustments to reconcile net income to net cash:
Depreciation and amortization	47,406	48,481
Change in value of life insurance contracts	758	(501)
Changes in operating assets and liabilities:
Receivables	(18,412)	(13,781)
Accounts payable	7,245	7,239
Other current assets	(2,428)	(6,859)
Other current liabilities	11,939	6,904
Other changes in noncurrent assets and liabilities	33,476	13,340
Net cash provided by operating activities	116,524	100,167
Investing activities:
Utility plant expenditures	(118,309)	(86,258)
Purchase of life insurance contracts	(1,855)	(3,207)
Change in restricted cash	(241)	354
Net cash used in investing activities	(120,405)	(89,111)
Financing activities:
Short-term borrowings	82,500	99,900
Repayment of short-term borrowings	(25,000)	(85,000)
Debt issuance costs	(1,197)	0
Proceeds from long-term debt	50	0
Repayment of long-term debt	(2,878)	(4,604)
Advances and contributions in aid of construction	10,741	8,780
Refunds of advances for construction	(5,050)	(4,858)
Dividends paid	(24,047)	(23,295)
Net cash provided by (used in) financing activities	35,119	(9,077)
Change in cash and cash equivalents	31,238	1,979
Cash and cash equivalents at beginning of period	19,587	27,506
Cash and cash equivalents at end of period	50,825	29,485
Supplemental information:
Cash paid for interest (net of amounts capitalized)	13,618	14,102
Income tax refunds	0	(6,000)
Supplemental disclosure of non-cash activities:
Accrued payables for investments in utility plant	24,856	16,308
Utility plant contribution by developers	$ 5,573	$ 8,148

Organization and Operations and

Organization and Operations and Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations and Basis of Presentation	Organization and Operations and Basis of Presentation California Water Service Group (the Company) is a holding company that provides water utility and other related services in California, Washington, New Mexico and Hawaii through its wholly-owned subsidiaries. California Water Service Company (Cal Water), Washington Water Service Company (Washington Water), New Mexico Water Service Company (New Mexico Water), and Hawaii Water Service Company, Inc. (Hawaii Water) provide regulated utility services under the rules and regulations of their respective state’s regulatory commissions (jointly referred to herein as the commissions). CWS Utility Services and HWS Utility Services LLC provide non-regulated water utility and utility-related services. The Company operates in one reportable segment, providing water and related utility services. Basis of Presentation The unaudited interim financial information has been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (SEC) and therefore do not contain all of the information and footnotes required by GAAP and the SEC for annual financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2014 , included in its annual report on Form 10-K as filed with the SEC on February 26, 2015. The preparation of the Company’s condensed consolidated unaudited interim financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses for the periods presented. These include, but are not limited to, estimates and assumptions used in determining the Company’s regulatory asset and liability balances based upon probability assessments of regulatory recovery, revenues earned but not yet billed, asset retirement obligations, allowance for doubtful accounts, pension and other employee benefit plan liabilities, and income tax-related assets and liabilities. Actual results could differ from these estimates. In the opinion of management, the accompanying condensed consolidated unaudited interim financial statements reflect all adjustments, consisting of normal recurring transactions that are necessary to provide a fair presentation of the results for the periods covered. The results for interim periods are not necessarily indicative of the results for any future period. Due to the seasonal nature of the water business, the results for interim periods are not indicative of the results for a 12-month period. Revenue and income are generally higher in the warm, dry summer months when water usage and sales are greater. Revenue and income are generally lower in the winter months when cooler temperatures and rainfall curtail water usage and sales.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Revenue Revenue generally includes monthly cycle customer billings for regulated water and wastewater services at rates authorized by the commissions plus estimated unbilled revenue for water used between the customer’s last meter reading and the end of the accounting period and billings to certain non-regulated customers at rates authorized by contract with government agencies. The Company’s regulated water and waste water revenue requirements are authorized by the commissions in the states in which they operate. The revenue requirements are intended to provide the Company an opportunity to recover its operating costs and earn a reasonable return on investments. For metered customers, Cal Water recognizes revenue from rates which are designed and authorized by the California Public Utilities Commission (CPUC). Under the Water Revenue Adjustment Mechanism (WRAM), Cal Water records the adopted level of volumetric revenues, which would include recovery of cost of service and a return on investment, as established by the CPUC for metered accounts (adopted volumetric revenues). In addition to volumetric-based revenues, the revenue requirements approved by the CPUC include service charges, flat rate charges, and other items not subject to the WRAM. The adopted volumetric revenue considers the seasonality of consumption of water based upon historical averages. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as a component of revenue with an offsetting entry to a regulatory asset or liability balancing account (tracked individually for each Cal Water district) subject to certain criteria under the accounting for regulated operations being met. The variance amount may be positive or negative and represents amounts that will be billed or refunded to customers in the future. Cost-recovery rates are designed to permit full recovery of certain costs. Cost-recovery rates such as the Modified Cost Balancing Account (MCBA) provide for recovery of adopted expense levels for purchased water, purchased power and pump taxes, as established by the CPUC. In addition, cost-recovery rates include recovery of costs related to water conservation programs and certain other operation expenses adopted by the CPUC. There is no markup for return or profit for cost-recovery expenses and such costs are generally recognized when expenses are incurred. Variances (which include the effects of changes in both rate and volume for the MCBA) between adopted and actual costs are recorded as a component of revenue, as the amount of such variances will be recovered from or refunded to our customers at a later date. The off-setting entries are recorded to a regulatory asset or liability balancing account (transferred individually for each Cal Water district) subject to certain criteria under the accounting for regulated operations being met. The balances in the WRAM and MCBA asset and liability accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results. The over- or under-recovery of WRAM is netted against the over- or under-recovery of MCBA in the corresponding district. The district’s net WRAM/MCBA refund or recovery is interest bearing at the current 90 day commercial paper rate. At the end of any calendar year, Cal Water files with the CPUC to refund or collect the balance in the accounts. Most undercollected net WRAM and MCBA receivable balances are collected over 12 or 18 months . Cal Water defers net WRAM and MCBA operating revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting periods in which they were recognized. The deferred net WRAM and MCBA revenues and associated costs were determined using forecasts of rate payer consumption trends in future reporting periods and the timing of when the CPUC will authorize Cal Water’s filings to recover the undercollected balances. Deferred net WRAM and MCBA revenues and associated costs will be recognized as revenues and costs in future periods when collection is within twenty-four months of the respective reporting period. Flat rate customers are billed in advance at the beginning of the service period. The revenue is prorated so that the portion of revenue applicable to the current period is included in that period’s revenue, with the balance recorded as unearned revenue on the balance sheet and recognized as revenue when earned in the subsequent accounting period. The unearned revenue liability was $1.4 million and $1.5 million as of September 30, 2015 and December 31, 2014 , respectively. This liability is included in “accrued expenses and other liabilities” on the condensed consolidated balance sheets. Cash and Cash Equivalents Cash equivalents include highly liquid investments with maturities of three months or less. Cash and cash equivalents was $50.8 million and $19.6 million as of September 30, 2015 and December 31, 2014 , respectively. Restricted cash was presented on the condensed consolidated balance sheet in “taxes, prepaid expenses and other assets” and was $1.0 million and $0.8 million as of September 30, 2015 and December 31, 2014 . Adoption of New Accounting Standards In May 2014, the FASB issued an Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers . This update creates a single, principles based framework for revenue recognition and is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when goods or services are transferred to customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , deferring the effective date of this amendment for public companies by one year to January 1, 2018, with early adoption permitted as of the original effective date of January 1, 2017. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements and related disclosures.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock-based Compensation Equity Incentive Plan During the nine months ended September 30, 2015 and 2014, the Company granted annual Restricted Stock Awards (RSAs) of 61 and 60 shares, respectively, of common stock to officers and directors of the Company and 16 and 11 shares of RSAs were canceled during the nine months ended September 30, 2015 and September 30, 2014, respectively. The Company did not grant any shares of RSAs and 3 shares of RSAs were canceled during the three months ended September 30, 2015. The Company granted 2 shares of RSAs and no RSAs were canceled during the three months ended September 30, 2014. Employee RSAs granted in 2015 and 2014 vest over 36 months. Director RSAs generally vest at the end of 12 months . During the first nine months of 2015 and 2014, the RSAs granted were valued at $24.29 and $23.61 per share, respectively, based upon the fair market value of the Company’s common stock on the date of grant. During the nine months ended September 30, 2015 and 2014, the Company granted performance-based Restricted Stock Unit Awards (RSUs) of 39 shares and 37 shares of common stock, respectively, to officers. The Company did not grant any shares of RSUs during the three months ended September 30, 2015 and during the three months ended September 30, 2014. Each award reflects a target number of shares that may be issued to the award recipient. The 2015 and 2014 awards may be earned upon the completion of the three year performance period ending on March 3, 2018 and March 4, 2017, respectively. Whether RSUs are earned at the end of the performance period will be determined based on the achievement of certain performance objectives set by the Compensation & Organization Committee of the Board of Directors in connection with the issuance of the RSUs. The performance objectives are based on the Company’s business plan covering the performance period. The performance objectives include achieving the budgeted return on equity, budgeted investment in utility plant, customer service standards, water quality standards, and safety standards. Depending on the results achieved during the three year performance period, the actual number of shares that a grant recipient receives at the end of the performance period may range from 0% to 200% of the target shares granted, provided that the grantee is continuously employed by the Company through the vesting date. If prior to the vesting date employment is terminated by reason of death, disability, or normal retirement, then a pro rata portion of this award will vest. RSUs are not included in diluted shares for financial reporting until authorized by the Compensation & Organization Committee of the Board of Directors. The 2015 and 2014 RSUs are recognized as expense ratably over the three year performance period using a fair market value of $24.28 per share and $23.61 per share, respectively, and an estimate of RSUs earned during the performance period. The Company has recorded compensation costs for the RSAs and RSUs in administrative and general operating expenses in the amount of $2.0 million and $1.5 million for the nine months ended September 30, 2015 and September 30, 2014 respectively.

Equity

Equity	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Equity	Equity The Company’s changes in total common stockholders’ equity for the nine months ended September 30, 2015 were as follows: Total Common Stockholders’ Equity Balance at December 31, 2014 $ 626,626 Common Stock Issued 1 Share-based compensation expense 1,732 Common stock dividends declared (24,047 ) Net income 36,540 Balance at September 30, 2015 $ 640,852

Net Income Per Share Calculatio

Net Income Per Share Calculations	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net Income Per Share Calculations	Net Income Per Share Calculations The computations of basic and diluted net income per weighted average common share are noted below. Basic net income per share is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. RSAs are included in the weighted average common shares outstanding because the shares have all the same voting and dividend rights as issued and unrestricted common stock. A total of 65 shares and 185 shares of Stock Appreciation Rights (SARs) were vested and outstanding and all were dilutive as of September 30, 2015 and September 30, 2014, respectively, as shown in the table below. Three Months Ended September 30 2015 2014 Net income available to common stockholders $ 25,120 $ 33,650 Weighted average common shares outstanding, basic 47,878 47,803 Dilutive SARs (treasury method) 9 37 Weighted average common shares outstanding, dilutive 47,887 47,840 Net income per share - basic $ 0.52 $ 0.70 Net income per share - diluted $ 0.52 $ 0.70 Nine Months Ended September 30 2015 2014 Net income available to common stockholders $ 36,540 $ 45,344 Weighted average common shares outstanding, basic 47,861 47,787 Dilutive SARs (treasury method) 16 38 Weighted average common shares outstanding, dilutive 47,877 47,825 Net income per share - basic $ 0.76 $ 0.95 Net income per share - diluted $ 0.76 $ 0.95

Pension Plan and Other Postreti

Pension Plan and Other Postretirement Benefits	9 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Pension Plan and Other Postretirement Benefits	Pension Plan and Other Postretirement Benefits The Company provides a qualified, defined-benefit, non-contributory pension plan for substantially all employees. The Company makes annual contributions to fund the amounts accrued for in the qualified pension plan. The Company also maintains an unfunded, non-qualified, supplemental executive retirement plan. The costs of the plans are charged to expense or are capitalized in utility plant as appropriate. The Company offers medical, dental, vision, and life insurance benefits for retirees and their spouses and dependents. Participants are required to pay a premium, which offsets a portion of the cost. Cash contributions by the Company related to pension plans were $22.7 million and $14.0 million for the nine months ended September 30, 2015 and September 30, 2014, respectively. Cash contributions by the Company related to other postretirement benefit plans were $7.5 million and $2.4 million for the nine months ended September 30, 2015 and September 30, 2014, respectively. The 2015 estimated cash contribution to the pension plans is $31.2 million and to the other postretirement benefit plans is $15.0 million . The following table lists components of net periodic benefit costs for the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits. Three Months Ended September 30 Pension Plan Other Benefits 2015 2014 2015 2014 Service cost $ 4,715 $ 3,539 $ 3,043 $ 1,398 Interest cost 5,072 4,737 2,101 1,321 Expected return on plan assets (4,770 ) (4,091 ) (908 ) (832 ) Amortization of prior service cost 1,502 1,527 12 11 Recognized net actuarial loss 2,308 1,002 2,182 656 Net periodic benefit cost $ 8,827 $ 6,714 $ 6,430 $ 2,554 Nine Months Ended September 30 Pension Plan Other Benefits 2015 2014 2015 2014 Service cost $ 15,980 $ 11,973 $ 8,044 $ 4,637 Interest cost 15,078 14,190 5,328 3,995 Expected return on plan assets (14,354 ) (12,449 ) (2,660 ) (2,339 ) Amortization of prior service cost 4,506 4,547 34 33 Recognized net actuarial loss 7,108 3,008 5,099 2,206 Net periodic benefit cost $ 28,318 $ 21,269 $ 15,845 $ 8,532

Short-term and Long-term Borrow

Short-term and Long-term Borrowings	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Short-term and Long-term Borrowings	Short-term and Long-term Borrowings On March 10, 2015, the Company and Cal Water entered into Syndicated Credit Agreements, which provide for unsecured revolving credit facilities of up to an initial aggregate amount of $450 million for a term of five years . The Syndicated Credit Facilities amend, expand, and replace the Company’s and its subsidiaries’ existing credit facilities originally entered into on June 29, 2011. The new credit facilities extended the terms until March 10, 2020, and increased the Company’s unsecured revolving line of credit. The Company and subsidiaries that it designates may borrow up to $150 million under the Company’s revolving credit facility. Cal Water may borrow up to $300 million under its revolving credit facility; however, all borrowings need to be repaid within twelve months unless otherwise authorized by the CPUC. The credit facilities may each be expanded by up to $50 million subject to certain conditions. The proceeds from the revolving credit facilities may be used for working capital purposes, including the short-term financing of capital projects. The base loan rate may vary from LIBOR plus 72.5 basis points to LIBOR plus 95 basis points, depending on the Company’s total capitalization ratio. Likewise, the unused commitment fee may vary from 8 basis points to 12.5 basis points based on the same ratio. Both short-term unsecured credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including, among other things, limitations and prohibitions relating to additional indebtedness, liens, mergers, and asset sales. Also, these unsecured credit agreements contain financial covenants governing the Company and its subsidiaries’ consolidated total capitalization ratio and interest coverage ratio. The outstanding borrowings on the Company lines of credit were $64.2 million and $61.7 million as of September 30, 2015 and December 31, 2014, respectively. The outstanding borrowings on the Cal Water lines of credit were $72.4 million and $17.4 million as of September 30, 2015 and December 31, 2014, respectively. The average borrowing rate for borrowings on the Company and Cal Water lines of credit during the nine months ended September 30, 2015 was 1.05% compared to 1.16% for the same period last year.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Measurement of the deferred tax assets and liabilities is at enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. We anticipate that future rate actions by the commissions will reflect revenue requirements for the tax effects of temporary differences recognized, which have previously flowed through to customers. The commissions have granted the Company rate increases to reflect the normalization of the tax benefits of the federal accelerated methods and available Investment Tax Credits (ITCs) for all assets placed in service after 1980. ITCs are deferred and amortized over the lives of the related properties for book purposes. During 2012, the Company filed an application for a change in tax accounting method with the Internal Revenue Service (IRS) regarding the classification of expenditures related to tangible property as deductible repairs and capitalizable improvements deductible over time as tax depreciation. In September 2013, the U.S. Department of the Treasury (U.S. Treasury) and the IRS issued the final regulations for repairs and maintenance deductions with an effective date of January 1, 2014. In August 2014, the U.S. Treasury and IRS issued the final regulations regarding dispositions of tangible property with an effective date of January 1, 2014. These tax regulations allow the Company to deduct a significant amount of costs to maintain its depreciable plant that were previously capitalized for tax purposes and continue to be capitalizable for book purposes. The Company implemented the final regulations on its 2014 tax return. As of September 30, 2015 and December 31, 2014, the Company had unrecognized tax benefits of approximately $8.5 million and $7.9 million , respectively. Included in the balance of unrecognized tax benefits as of September 30, 2015 and December 31, 2014 is approximately $1.8 million and $1.6 million respectively of tax benefits that, if recognized, would result in an adjustment to the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly within the next twelve months. The State of California Franchise Tax Board is presently auditing the Company’s 2008 through 2011 enterprise zone filings. The State of Hawaii Department of Taxation is presently auditing the Company’s 2013 capital goods excise tax filing. It is uncertain when the state audits will be completed. The Company believes that the final resolution of the state audits will not have a material impact on its financial condition or results of operations.

Regulatory Assets and Liabiliti

Regulatory Assets and Liabilities	9 Months Ended
	Sep. 30, 2015
Regulated Operations [Abstract]
Regulatory Assets and Liabilities	Regulatory Assets and Liabilities Regulatory assets and liabilities were comprised of the following as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 Regulatory Assets Pension and retiree group health $ 244,514 $ 245,008 Property-related temporary differences (tax benefits flowed through to ratepayers) 73,797 72,350 Other accrued benefits 29,356 32,959 Net WRAM and MCBA long-term accounts receivable 16,972 14,449 Asset retirement obligations, net 14,792 13,863 Interim rates long-term accounts receivable 5,694 10,627 Tank coating 7,264 — Health care balancing account 4,445 1,075 Other regulatory assets 1,701 — Total Regulatory Assets $ 398,535 $ 390,331 Regulatory Liabilities Future tax benefits due ratepayers $ 26,620 $ 26,114 Conservation program 4,686 2,669 Pension balancing account 2,181 4,291 Other regulatory liabilities 2,640 3,373 Total Regulatory Liabilities $ 36,127 $ 36,447 Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets were $38.1 million as of September 30, 2015 and $53.2 million as of December 31, 2014 . The short-term regulatory assets were primarily interim rate memorandum account receivable and net WRAM and MCBA accounts receivable as of September 30, 2015 and December 31, 2014 . The short-term portions of regulatory liabilities were $1.9 million as of September 30, 2015 and $6.1 million as of December 31, 2014 . The short-term regulatory liabilities were primarily short term net WRAM payables as of September 30, 2015 and were primarily short term net WRAM payables and net refund balances to rate payers for the water conservation program from the 2009 General Rate Case (GRC) as of December 31, 2014 .

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitment and Contingencies	Commitment and Contingencies Commitments The Company has significant commitments to lease certain office spaces and water systems and to purchase water from water wholesalers. These commitments are described in Form 10-K for the year ended December 31, 2014. As of September 30, 2015, there were no significant changes from December 31, 2014. Contingencies Groundwater Contamination The Company has undertaken litigation against third parties to recover past and anticipated costs related to groundwater contamination in our service areas. The cost of litigation is expensed as incurred and any settlement is first offset against such costs. The CPUC’s general policy requires all proceeds from groundwater contamination litigation to be used first to pay transactional expenses, then to make ratepayers whole for water treatment costs to comply with the CPUC’s water quality standards. The CPUC allows for a risk-based consideration of contamination proceeds which exceed the costs of the remediation described above and may result in some sharing of proceeds with the shareholder, determined on a case by case basis. The CPUC has authorized various memorandum accounts that allow the Company to track significant litigation costs to request recovery of these costs in future filings and uses of proceeds to comply with CPUC’s general policy. LEGAL PROCEEDINGS From time to time, the Company has been named as a co-defendant in asbestos-related lawsuits. Several of these cases against the Company have been dismissed without prejudice. In other cases, Company’s contractors and insurance policy carriers have settled the cases with no effect on the Company’s financial statements. As such, the Company does not currently believe there is any potential loss that is probable to occur related to these matters and therefore no accrual has been recorded. Other Legal Matters From time to time, the Company is involved in various disputes and litigation matters that arise in the ordinary course of business. The status of each significant matter is reviewed and assessed for potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount of the range of loss can be estimated, a liability is accrued for the estimated loss in accordance with the accounting standards for contingencies. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the time. While the outcome of these disputes and litigation matters cannot be predicted with any certainty, management does not believe when taking into account existing reserves the ultimate resolution of these matters will materially affect the Company’s financial position, results of operations, or cash flows. The Company recognized a liability of $4.1 million and $3.2 million for known legal matters as of September 30, 2015 and December 31, 2014, respectively. The cost of litigation is expensed as incurred and any settlement is first offset against such costs. Any settlement in excess of the cost to litigate is accounted for on a case by case basis, dependent on the nature of the settlement.

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Assets and Liabilities	Fair Value of Financial Assets and Liabilities The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows: Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices. Level 2 - Pricing inputs are other than quoted prices inactive markets, but are either directly or indirectly observable as of the reporting date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, or priced with discounted cash flow or option pricing models using highly observable inputs. Level 3 - Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those valued with models requiring significant management judgment or estimation. Specific valuation methods include the following: Cash equivalents, restricted cash, accounts receivable and accounts payable carrying amounts approximated the fair value because of the short-term maturity of the instruments. Long-term debt fair values were estimated using the published quoted market price, if available, or the discounted cash flow analysis, based on the current rates available using a risk-free rate (a U.S. Treasury securities yield curve) plus a risk premium of 1.19% . Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. September 30, 2015 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 423,012 — $ 518,301 — $ 518,301 Advances for construction 180,805 — 73,305 — 73,305 Total $ 603,817 $ — $ 591,606 $ — $ 591,606 December 31, 2014 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 425,840 $ — $ 534,068 $ — $ 534,068 Advances for construction 182,284 — 72,571 — 72,571 Total $ 608,124 — $ 606,639 $ — $ 606,639

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On October 13, 2015, Cal Water agreed to sell $150.0 million in aggregate principal amount of first mortgage bonds in a private placement. Pursuant to the agreement, Cal Water sold $100.0 million of the first mortgage bonds on October 13, 2015, consisting of $50.0 million of 3.33% series QQQ maturing October 15, 2025 and $50.0 million of 4.31% series RRR maturing October 16, 2045. Cash proceeds of approximately $99.4 million , net of $0.6 million debt issuance costs, were received. Cal Water used a portion of the net proceeds from the offering to repay outstanding borrowings on the Cal Water line of credit of $72.4 million . The sale of the remaining $50.0 million of the first mortgage bonds, consisting of $40.0 million of 4.41% series SSS maturing April 15, 2046 and $10.0 million of 4.61% series TTT maturing October 15, 2025, is scheduled to close on March 11, 2016, subject to customary closing conditions.

Condensed Consolidating Financi

Condensed Consolidating Financial Statements	9 Months Ended
	Sep. 30, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Consolidating Financial Statements	Condensed Consolidating Financial Statements On April 17, 2009, Cal Water issued $100 million aggregate principal amount of 5.875% First Mortgage Bonds due 2019, and on November 17, 2010, Cal Water issued $100 million aggregate principal amount of 5.500% First Mortgage Bonds due 2040, all of which are fully and unconditionally guaranteed by the Company. As a result of these guarantee arrangements, the Company is required to present the following condensed consolidating financial information. The investments in affiliates are accounted for and presented using the “equity method” of accounting. The following tables present the condensed consolidating balance sheets as of September 30, 2015 and December 31, 2014, the condensed consolidating statements of income for the three months ended September 30, 2015 and 2014, condensed consolidating statements of income for the nine months ended September 30, 2015 and 2014, and the condensed consolidating statements of cash flows for the nine months ended September 30, 2015 and 2014 of (i) California Water Service Group, the guarantor of the first mortgage bonds and the parent company; (ii) California Water Service Company, the issuer of the first mortgage bonds and a 100% owned consolidated subsidiary of California Water Service Group; and (iii) the other 100% owned non-guarantor consolidated subsidiaries of California Water Service Group. CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2015 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 2,268,876 $ 197,832 $ (7,197 ) $ 2,460,829 Less accumulated depreciation and amortization (548 ) (751,913 ) (46,601 ) 1,798 (797,264 ) Net utility plant 770 1,516,963 151,231 (5,399 ) 1,663,565 Current assets: Cash and cash equivalents 5,523 43,359 1,943 — 50,825 Receivables and unbilled revenue, net 13 120,790 4,528 — 125,331 Receivables from affiliates 23,161 690 195 (24,046 ) — Other current assets 182 13,517 1,211 — 14,910 Total current assets 28,879 178,356 7,877 (24,046 ) 191,066 Other assets: Regulatory assets — 395,079 3,456 — 398,535 Investments in affiliates 651,120 — — (651,120 ) — Long-term affiliate notes receivable 24,452 — — (24,452 ) — Other assets 806 48,803 4,628 (883 ) 53,354 Total other assets 676,378 443,882 8,084 (676,455 ) 451,889 $ 706,027 $ 2,139,201 $ 167,192 $ (705,900 ) $ 2,306,520 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 640,852 $ 581,135 $ 75,367 $ (656,502 ) $ 640,852 Affiliate long-term debt — — 24,452 (24,452 ) — Long-term debt, less current maturities — 415,375 1,072 — 416,447 Total capitalization 640,852 996,510 100,891 (680,954 ) 1,057,299 Current liabilities: Current maturities of long-term debt — 6,201 364 — 6,565 Short-term borrowings 64,215 72,400 — — 136,615 Payables to affiliates — 3,235 20,811 (24,046 ) — Accounts payable — 74,277 2,984 — 77,261 Accrued expenses and other liabilities 64 75,231 5,034 — 80,329 Total current liabilities 64,279 231,344 29,193 (24,046 ) 300,770 Unamortized investment tax credits — 1,947 — — 1,947 Deferred income taxes, net 896 236,447 — (900 ) 236,443 Pension and postretirement benefits other than pensions — 276,525 — — 276,525 Regulatory liabilities and other — 73,911 2,888 — 76,799 Advances for construction — 180,297 508 — 180,805 Contributions in aid of construction — 142,220 33,712 — 175,932 $ 706,027 $ 2,139,201 $ 167,192 $ (705,900 ) $ 2,306,520 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2014 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 2,154,146 $ 194,204 $ (7,197 ) $ 2,342,471 Less accumulated depreciation and amortization (377 ) (710,840 ) (42,545 ) 1,722 (752,040 ) Net utility plant 941 1,443,306 151,659 (5,475 ) 1,590,431 Current assets: Cash and cash equivalents 4,108 13,929 1,550 — 19,587 Receivables — 108,815 9,114 (1,051 ) 116,878 Receivables from affiliates 20,001 3,608 — (23,609 ) — Other current assets — 16,443 1,216 — 17,659 Total current assets 24,109 142,795 11,880 (24,660 ) 154,124 Other assets: Regulatory assets — 387,387 2,944 — 390,331 Investments in affiliates 637,998 — — (637,998 ) — Long-term affiliate notes receivable 25,263 — — (25,263 ) — Other assets 891 47,617 4,278 (321 ) 52,465 Total other assets 664,152 435,004 7,222 (663,582 ) 442,796 $ 689,202 $ 2,021,105 $ 170,761 $ (693,717 ) $ 2,187,351 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 626,626 $ 569,319 74,107 $ (643,426 ) $ 626,626 Affiliate long-term debt — — 25,263 (25,263 ) — Long-term debt, less current maturities — 417,884 1,349 — 419,233 Total capitalization 626,626 987,203 100,719 (668,689 ) 1,045,859 Current liabilities: Current maturities of long-term debt — 6,173 434 — 6,607 Short-term borrowings 61,715 17,400 — — 79,115 Payables to affiliates — 270 23,339 (23,609 ) — Accounts payable — 56,666 2,930 (201 ) 59,395 Accrued expenses and other liabilities 861 71,203 1,281 (756 ) 72,589 Total current liabilities 62,576 151,712 27,984 (24,566 ) 217,706 Unamortized investment tax credits — 2,032 — — 2,032 Deferred income taxes, net — 210,789 4,515 (462 ) 214,842 Pension and postretirement benefits other than pensions — 270,865 — — 270,865 Regulatory and other liabilities — 74,282 8,997 — 83,279 Advances for construction — 181,763 521 — 182,284 Contributions in aid of construction — 142,459 28,025 — 170,484 $ 689,202 $ 2,021,105 $ 170,761 $ (693,717 ) $ 2,187,351 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended September 30, 2015 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 172,425 $ 11,118 $ — $ 183,543 Operating expenses: Operations: Water production costs — 58,173 2,264 — 60,437 Administrative and general — 27,620 3,117 — 30,737 Other operations — 16,329 1,668 (125 ) 17,872 Maintenance — 5,722 230 — 5,952 Depreciation and amortization 57 14,231 1,079 (25 ) 15,342 Income tax (benefit) expense (107 ) 14,638 508 254 15,293 Property and other taxes — 4,910 799 — 5,709 Total operating (income) expenses (50 ) 141,623 9,665 104 151,342 Net operating income 50 30,802 1,453 (104 ) 32,201 Other Income and Expenses: Non-regulated revenue 444 3,489 451 (570 ) 3,814 Non-regulated expenses, net — (4,058 ) (396 ) — (4,454 ) Income tax (expense) benefit on other income and expense (181 ) 232 (33 ) 244 262 Total other income (loss) 263 (337 ) 22 (326 ) (378 ) Interest: Interest expense 205 6,969 472 (445 ) 7,201 Less: capitalized interest — (488 ) (10 ) — (498 ) Net interest expense 205 6,481 462 (445 ) 6,703 Equity earnings of subsidiaries 25,012 — — (25,012 ) — Net income $ 25,120 $ 23,984 $ 1,013 $ (24,997 ) $ 25,120 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended September 30, 2014 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 180,768 $ 10,416 $ — $ 191,184 Operating expenses: Operations: Water production costs — 64,332 2,648 — 66,980 Administrative and general 34 21,282 2,449 — 23,765 Other — 14,161 1,657 (126 ) 15,692 Maintenance — 4,620 180 — 4,800 Depreciation and amortization 57 13,692 926 (27 ) 14,648 Income tax (benefit) expense (79 ) 18,632 393 287 19,233 Taxes other than income taxes — 4,409 823 — 5,232 Total operating expenses 12 141,128 9,076 134 150,350 Net operating (loss) income (12 ) 39,640 1,340 (134 ) 40,834 Other Income and Expenses: Non-regulated revenue 448 4,027 446 (512 ) 4,409 Non-regulated expenses, net — (4,538 ) (274 ) — (4,812 ) Income tax (expense) benefit on other income and expense (182 ) 207 (132 ) 276 169 Net other income (loss) 266 (304 ) 40 (236 ) (234 ) Interest: Interest expense 103 7,030 473 (385 ) 7,221 Less: capitalized interest — (252 ) (19 ) — (271 ) Net interest expense 103 6,778 454 (385 ) 6,950 Equity earnings of subsidiaries 33,499 — — (33,499 ) — Net income $ 33,650 $ 32,558 $ 926 $ (33,484 ) $ 33,650 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the nine months ended September 30, 2015 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 422,372 $ 27,570 $ — $ 449,942 Operating expenses: Operations: Water production costs — 152,593 6,068 — 158,661 Administrative and general — 76,271 8,798 — 85,069 Other operations — 46,632 4,973 (378 ) 51,227 Maintenance — 15,148 587 — 15,735 Depreciation and amortization 171 42,659 3,261 (76 ) 46,015 Income tax (benefit) expense (294 ) 20,454 92 756 21,008 Property and other taxes — 13,964 2,072 — 16,036 Total operating (income) expenses (123 ) 367,721 25,851 302 393,751 Net operating income 123 54,651 1,719 (302 ) 56,191 Other Income and Expenses: Non-regulated revenue 1,353 9,674 1,241 (1,728 ) 10,540 Non-regulated expenses, net — (9,283 ) (918 ) — (10,201 ) Income tax expense on other income and expense (549 ) (159 ) (148 ) 725 (131 ) Total other income 804 232 175 (1,003 ) 208 Interest: Interest expense 555 20,751 1,375 (1,350 ) 21,331 Less: capitalized interest — (1,438 ) (34 ) — (1,472 ) Net interest expense 555 19,313 1,341 (1,350 ) 19,859 Equity earnings of subsidiaries 36,168 — — (36,168 ) — Net income $ 36,540 $ 35,570 $ 553 $ (36,123 ) $ 36,540 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the nine months ended September 30, 2014 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 434,857 $ 25,258 $ — $ 460,115 Operating expenses: Operations: Water production costs — 167,214 7,083 — 174,297 Administrative and general 67 65,144 7,491 — 72,702 Other — 43,186 5,264 (378 ) 48,072 Maintenance — 14,276 517 — 14,793 Depreciation and amortization 157 43,607 3,104 (80 ) 46,788 Income tax (benefit) expense (184 ) 22,713 (686 ) 741 22,584 Taxes other than income taxes — 13,552 2,049 — 15,601 Total operating expenses 40 369,692 24,822 283 394,837 Net operating (loss) income (40 ) 65,165 436 (283 ) 65,278 Other Income and Expenses: Non-regulated revenue 1,365 11,264 1,193 (1,659 ) 12,163 Non-regulated expenses, net — (10,286 ) (898 ) — (11,184 ) Income tax (expense) on other income and expense (556 ) (399 ) (144 ) 708 (391 ) Net other income 809 579 151 (951 ) 588 Interest: Interest expense 228 20,974 1,452 (1,281 ) 21,373 Less: capitalized interest — (790 ) (61 ) — (851 ) Net interest expense 228 20,184 1,391 (1,281 ) 20,522 Equity earnings of subsidiaries 44,803 — — (44,803 ) — Net income (loss) $ 45,344 $ 45,560 $ (804 ) $ (44,756 ) $ 45,344 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2015 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 36,540 $ 35,570 $ 553 $ (36,123 ) $ 36,540 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (36,168 ) — — 36,168 — Dividends received from affiliates 24,047 — — (24,047 ) — Depreciation and amortization 171 43,768 3,543 (76 ) 47,406 Changes in value of life insurance contracts — 758 — — 758 Changes in operating assets and liabilities (910 ) (9,088 ) 8,436 (94 ) (1,656 ) Other changes in noncurrent assets and liabilities 3,030 35,324 (5,003 ) 125 33,476 Net cash provided by operating activities 26,710 106,332 7,529 (24,047 ) 116,524 Investing activities: Utility plant expenditures — (114,325 ) (3,984 ) — (118,309 ) Investment in affiliates (1,000 ) — — 1,000 — Changes in affiliate advances (3,116 ) 2,918 (82 ) 280 — Proceeds from affiliates long-term debt 767 — — (767 ) — Purchase of life insurance contracts — (1,855 ) — — (1,855 ) Changes in restricted cash — (241 ) — — (241 ) Net cash (used in) investing activities (3,349 ) (113,503 ) (4,066 ) 513 (120,405 ) Financing Activities: Short-term borrowings 2,500 80,000 — — 82,500 Repayment of short-term borrowings — (25,000 ) — — (25,000 ) Debt issuance costs (399 ) (798 ) — (1,197 ) Investment from affiliates — — 1,000 (1,000 ) — Changes in affiliate advances — 2,965 (2,685 ) (280 ) — Repayment of affiliates long-term borrowings — — (767 ) 767 — Proceeds from long-term debt — — 50 — 50 Repayment of long-term debt — (2,480 ) (398 ) — (2,878 ) Advances and contributions in aid for construction — 10,682 59 — 10,741 Refunds of advances for construction — (5,014 ) (36 ) — (5,050 ) Dividends paid to non-affiliates (24,047 ) — — — (24,047 ) Dividends paid to affiliates — (23,754 ) (293 ) 24,047 — Net cash (used in) provided by financing activities (21,946 ) 36,601 (3,070 ) 23,534 35,119 Change in cash and cash equivalents 1,415 29,430 393 — 31,238 Cash and cash equivalents at beginning of period 4,108 13,929 1,550 — 19,587 Cash and cash equivalents at end of period $ 5,523 $ 43,359 $ 1,943 $ — $ 50,825 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2014 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income (loss) $ 45,344 $ 45,560 $ (804 ) $ (44,756 ) $ 45,344 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity earnings of subsidiaries (44,803 ) — — 44,803 — Dividends received from affiliates 23,295 — — (23,295 ) — Depreciation and amortization 157 45,059 3,345 (80 ) 48,481 Change in value of life insurance contracts — (501 ) — — (501 ) Changes in operating assets and liabilities (68 ) (7,969 ) 1,540 (6,497 ) Other changes in noncurrent assets and liabilities 2,160 11,539 (392 ) 33 13,340 Net cash provided by operating activities 26,085 93,688 3,689 (23,295 ) 100,167 Investing activities: Utility plant expenditures — (81,505 ) (4,753 ) — (86,258 ) Investment in affiliates (46,850 ) — — 46,850 — Changes in affiliate advances (5,455 ) 4,778 (200 ) 877 — Proceeds from affiliates long-term debt 699 — — (699 ) — Purchase of life insurance contracts — (3,207 ) — — (3,207 ) Changes in restricted cash — 354 — — 354 Net cash (used in) investing activities (51,606 ) (79,580 ) (4,953 ) 47,028 (89,111 ) Financing Activities: Short-term borrowings 64,900 35,000 — — 99,900 Repayment of short-term borrowings (20,000 ) (65,000 ) — — (85,000 ) Investment from affiliates — 42,000 4,850 (46,850 ) — Changes in affiliate advances (48 ) 1,814 (889 ) (877 ) — Repayment of affiliates long-term borrowings — (699 ) 699 — Repayment of long-term debt — (2,919 ) (1,685 ) — (4,604 ) Advances and contributions in aid for construction — 8,239 541 — 8,780 Refunds of advances for construction — (4,809 ) (49 ) — (4,858 ) Dividends paid to non-affiliates (23,295 ) — — — (23,295 ) Dividends paid to affiliates (23,005 ) (290 ) 23,295 — Net cash (used in) provided by financing activities 21,557 (8,680 ) 1,779 (23,733 ) (9,077 ) Change in cash and cash equivalents (3,964 ) 5,428 515 — 1,979 Cash and cash equivalents at beginning of period 5,280 20,790 1,436 — 27,506 Cash and cash equivalents at end of period $ 1,316 $ 26,218 $ 1,951 $ — $ 29,485

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Revenue	Revenue Revenue generally includes monthly cycle customer billings for regulated water and wastewater services at rates authorized by the commissions plus estimated unbilled revenue for water used between the customer’s last meter reading and the end of the accounting period and billings to certain non-regulated customers at rates authorized by contract with government agencies. The Company’s regulated water and waste water revenue requirements are authorized by the commissions in the states in which they operate. The revenue requirements are intended to provide the Company an opportunity to recover its operating costs and earn a reasonable return on investments. For metered customers, Cal Water recognizes revenue from rates which are designed and authorized by the California Public Utilities Commission (CPUC). Under the Water Revenue Adjustment Mechanism (WRAM), Cal Water records the adopted level of volumetric revenues, which would include recovery of cost of service and a return on investment, as established by the CPUC for metered accounts (adopted volumetric revenues). In addition to volumetric-based revenues, the revenue requirements approved by the CPUC include service charges, flat rate charges, and other items not subject to the WRAM. The adopted volumetric revenue considers the seasonality of consumption of water based upon historical averages. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as a component of revenue with an offsetting entry to a regulatory asset or liability balancing account (tracked individually for each Cal Water district) subject to certain criteria under the accounting for regulated operations being met. The variance amount may be positive or negative and represents amounts that will be billed or refunded to customers in the future. Cost-recovery rates are designed to permit full recovery of certain costs. Cost-recovery rates such as the Modified Cost Balancing Account (MCBA) provide for recovery of adopted expense levels for purchased water, purchased power and pump taxes, as established by the CPUC. In addition, cost-recovery rates include recovery of costs related to water conservation programs and certain other operation expenses adopted by the CPUC. There is no markup for return or profit for cost-recovery expenses and such costs are generally recognized when expenses are incurred. Variances (which include the effects of changes in both rate and volume for the MCBA) between adopted and actual costs are recorded as a component of revenue, as the amount of such variances will be recovered from or refunded to our customers at a later date. The off-setting entries are recorded to a regulatory asset or liability balancing account (transferred individually for each Cal Water district) subject to certain criteria under the accounting for regulated operations being met. The balances in the WRAM and MCBA asset and liability accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results. The over- or under-recovery of WRAM is netted against the over- or under-recovery of MCBA in the corresponding district. The district’s net WRAM/MCBA refund or recovery is interest bearing at the current 90 day commercial paper rate. At the end of any calendar year, Cal Water files with the CPUC to refund or collect the balance in the accounts. Most undercollected net WRAM and MCBA receivable balances are collected over 12 or 18 months . Cal Water defers net WRAM and MCBA operating revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting periods in which they were recognized. The deferred net WRAM and MCBA revenues and associated costs were determined using forecasts of rate payer consumption trends in future reporting periods and the timing of when the CPUC will authorize Cal Water’s filings to recover the undercollected balances. Deferred net WRAM and MCBA revenues and associated costs will be recognized as revenues and costs in future periods when collection is within twenty-four months of the respective reporting period. Flat rate customers are billed in advance at the beginning of the service period. The revenue is prorated so that the portion of revenue applicable to the current period is included in that period’s revenue, with the balance recorded as unearned revenue on the balance sheet and recognized as revenue when earned in the subsequent accounting period. The unearned revenue liability was $1.4 million and $1.5 million as of September 30, 2015 and December 31, 2014 , respectively. This liability is included in “accrued expenses and other liabilities” on the condensed consolidated balance sheets.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash equivalents include highly liquid investments with maturities of three months or less. Cash and cash equivalents was $50.8 million and $19.6 million as of September 30, 2015 and December 31, 2014 , respectively. Restricted cash was presented on the condensed consolidated balance sheet in “taxes, prepaid expenses and other assets” and was $1.0 million and $0.8 million as of September 30, 2015 and December 31, 2014 .
Adoption of New Accounting Standards	Adoption of New Accounting Standards In May 2014, the FASB issued an Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers . This update creates a single, principles based framework for revenue recognition and is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when goods or services are transferred to customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , deferring the effective date of this amendment for public companies by one year to January 1, 2018, with early adoption permitted as of the original effective date of January 1, 2017. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements and related disclosures.

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Schedule of changes in total common stockholders' equity	The Company’s changes in total common stockholders’ equity for the nine months ended September 30, 2015 were as follows: Total Common Stockholders’ Equity Balance at December 31, 2014 $ 626,626 Common Stock Issued 1 Share-based compensation expense 1,732 Common stock dividends declared (24,047 ) Net income 36,540 Balance at September 30, 2015 $ 640,852

Net Income Per Share Calculat21

Net Income Per Share Calculations (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of SARs which were dilutive	A total of 65 shares and 185 shares of Stock Appreciation Rights (SARs) were vested and outstanding and all were dilutive as of September 30, 2015 and September 30, 2014, respectively, as shown in the table below. Three Months Ended September 30 2015 2014 Net income available to common stockholders $ 25,120 $ 33,650 Weighted average common shares outstanding, basic 47,878 47,803 Dilutive SARs (treasury method) 9 37 Weighted average common shares outstanding, dilutive 47,887 47,840 Net income per share - basic $ 0.52 $ 0.70 Net income per share - diluted $ 0.52 $ 0.70 Nine Months Ended September 30 2015 2014 Net income available to common stockholders $ 36,540 $ 45,344 Weighted average common shares outstanding, basic 47,861 47,787 Dilutive SARs (treasury method) 16 38 Weighted average common shares outstanding, dilutive 47,877 47,825 Net income per share - basic $ 0.76 $ 0.95 Net income per share - diluted $ 0.76 $ 0.95

Pension Plan and Other Postre22

Pension Plan and Other Postretirement Benefits (Tables)	9 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Schedule of components of net periodic benefit costs for the pension plans and other postretirement benefits	The following table lists components of net periodic benefit costs for the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits. Three Months Ended September 30 Pension Plan Other Benefits 2015 2014 2015 2014 Service cost $ 4,715 $ 3,539 $ 3,043 $ 1,398 Interest cost 5,072 4,737 2,101 1,321 Expected return on plan assets (4,770 ) (4,091 ) (908 ) (832 ) Amortization of prior service cost 1,502 1,527 12 11 Recognized net actuarial loss 2,308 1,002 2,182 656 Net periodic benefit cost $ 8,827 $ 6,714 $ 6,430 $ 2,554 Nine Months Ended September 30 Pension Plan Other Benefits 2015 2014 2015 2014 Service cost $ 15,980 $ 11,973 $ 8,044 $ 4,637 Interest cost 15,078 14,190 5,328 3,995 Expected return on plan assets (14,354 ) (12,449 ) (2,660 ) (2,339 ) Amortization of prior service cost 4,506 4,547 34 33 Recognized net actuarial loss 7,108 3,008 5,099 2,206 Net periodic benefit cost $ 28,318 $ 21,269 $ 15,845 $ 8,532

Regulatory Assets and Liabili23

Regulatory Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Regulated Operations [Abstract]
Schedule of regulatory assets and liabilities	Regulatory assets and liabilities were comprised of the following as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 Regulatory Assets Pension and retiree group health $ 244,514 $ 245,008 Property-related temporary differences (tax benefits flowed through to ratepayers) 73,797 72,350 Other accrued benefits 29,356 32,959 Net WRAM and MCBA long-term accounts receivable 16,972 14,449 Asset retirement obligations, net 14,792 13,863 Interim rates long-term accounts receivable 5,694 10,627 Tank coating 7,264 — Health care balancing account 4,445 1,075 Other regulatory assets 1,701 — Total Regulatory Assets $ 398,535 $ 390,331 Regulatory Liabilities Future tax benefits due ratepayers $ 26,620 $ 26,114 Conservation program 4,686 2,669 Pension balancing account 2,181 4,291 Other regulatory liabilities 2,640 3,373 Total Regulatory Liabilities $ 36,127 $ 36,447

Fair Value of Financial Asset24

Fair Value of Financial Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of fair value of long-term debt, including current maturities and advances for construction	Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. September 30, 2015 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 423,012 — $ 518,301 — $ 518,301 Advances for construction 180,805 — 73,305 — 73,305 Total $ 603,817 $ — $ 591,606 $ — $ 591,606 December 31, 2014 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 425,840 $ — $ 534,068 $ — $ 534,068 Advances for construction 182,284 — 72,571 — 72,571 Total $ 608,124 — $ 606,639 $ — $ 606,639

Condensed Consolidating Finan25

Condensed Consolidating Financial Statements (Tables)	9 Months Ended
	Sep. 30, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Schedule of Condensed Consolidating Balance Sheet	CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2015 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 2,268,876 $ 197,832 $ (7,197 ) $ 2,460,829 Less accumulated depreciation and amortization (548 ) (751,913 ) (46,601 ) 1,798 (797,264 ) Net utility plant 770 1,516,963 151,231 (5,399 ) 1,663,565 Current assets: Cash and cash equivalents 5,523 43,359 1,943 — 50,825 Receivables and unbilled revenue, net 13 120,790 4,528 — 125,331 Receivables from affiliates 23,161 690 195 (24,046 ) — Other current assets 182 13,517 1,211 — 14,910 Total current assets 28,879 178,356 7,877 (24,046 ) 191,066 Other assets: Regulatory assets — 395,079 3,456 — 398,535 Investments in affiliates 651,120 — — (651,120 ) — Long-term affiliate notes receivable 24,452 — — (24,452 ) — Other assets 806 48,803 4,628 (883 ) 53,354 Total other assets 676,378 443,882 8,084 (676,455 ) 451,889 $ 706,027 $ 2,139,201 $ 167,192 $ (705,900 ) $ 2,306,520 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 640,852 $ 581,135 $ 75,367 $ (656,502 ) $ 640,852 Affiliate long-term debt — — 24,452 (24,452 ) — Long-term debt, less current maturities — 415,375 1,072 — 416,447 Total capitalization 640,852 996,510 100,891 (680,954 ) 1,057,299 Current liabilities: Current maturities of long-term debt — 6,201 364 — 6,565 Short-term borrowings 64,215 72,400 — — 136,615 Payables to affiliates — 3,235 20,811 (24,046 ) — Accounts payable — 74,277 2,984 — 77,261 Accrued expenses and other liabilities 64 75,231 5,034 — 80,329 Total current liabilities 64,279 231,344 29,193 (24,046 ) 300,770 Unamortized investment tax credits — 1,947 — — 1,947 Deferred income taxes, net 896 236,447 — (900 ) 236,443 Pension and postretirement benefits other than pensions — 276,525 — — 276,525 Regulatory liabilities and other — 73,911 2,888 — 76,799 Advances for construction — 180,297 508 — 180,805 Contributions in aid of construction — 142,220 33,712 — 175,932 $ 706,027 $ 2,139,201 $ 167,192 $ (705,900 ) $ 2,306,520 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2014 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 2,154,146 $ 194,204 $ (7,197 ) $ 2,342,471 Less accumulated depreciation and amortization (377 ) (710,840 ) (42,545 ) 1,722 (752,040 ) Net utility plant 941 1,443,306 151,659 (5,475 ) 1,590,431 Current assets: Cash and cash equivalents 4,108 13,929 1,550 — 19,587 Receivables — 108,815 9,114 (1,051 ) 116,878 Receivables from affiliates 20,001 3,608 — (23,609 ) — Other current assets — 16,443 1,216 — 17,659 Total current assets 24,109 142,795 11,880 (24,660 ) 154,124 Other assets: Regulatory assets — 387,387 2,944 — 390,331 Investments in affiliates 637,998 — — (637,998 ) — Long-term affiliate notes receivable 25,263 — — (25,263 ) — Other assets 891 47,617 4,278 (321 ) 52,465 Total other assets 664,152 435,004 7,222 (663,582 ) 442,796 $ 689,202 $ 2,021,105 $ 170,761 $ (693,717 ) $ 2,187,351 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 626,626 $ 569,319 74,107 $ (643,426 ) $ 626,626 Affiliate long-term debt — — 25,263 (25,263 ) — Long-term debt, less current maturities — 417,884 1,349 — 419,233 Total capitalization 626,626 987,203 100,719 (668,689 ) 1,045,859 Current liabilities: Current maturities of long-term debt — 6,173 434 — 6,607 Short-term borrowings 61,715 17,400 — — 79,115 Payables to affiliates — 270 23,339 (23,609 ) — Accounts payable — 56,666 2,930 (201 ) 59,395 Accrued expenses and other liabilities 861 71,203 1,281 (756 ) 72,589 Total current liabilities 62,576 151,712 27,984 (24,566 ) 217,706 Unamortized investment tax credits — 2,032 — — 2,032 Deferred income taxes, net — 210,789 4,515 (462 ) 214,842 Pension and postretirement benefits other than pensions — 270,865 — — 270,865 Regulatory and other liabilities — 74,282 8,997 — 83,279 Advances for construction — 181,763 521 — 182,284 Contributions in aid of construction — 142,459 28,025 — 170,484 $ 689,202 $ 2,021,105 $ 170,761 $ (693,717 ) $ 2,187,351
Schedule of Condensed Consolidating Statement of Income	CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended September 30, 2015 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 172,425 $ 11,118 $ — $ 183,543 Operating expenses: Operations: Water production costs — 58,173 2,264 — 60,437 Administrative and general — 27,620 3,117 — 30,737 Other operations — 16,329 1,668 (125 ) 17,872 Maintenance — 5,722 230 — 5,952 Depreciation and amortization 57 14,231 1,079 (25 ) 15,342 Income tax (benefit) expense (107 ) 14,638 508 254 15,293 Property and other taxes — 4,910 799 — 5,709 Total operating (income) expenses (50 ) 141,623 9,665 104 151,342 Net operating income 50 30,802 1,453 (104 ) 32,201 Other Income and Expenses: Non-regulated revenue 444 3,489 451 (570 ) 3,814 Non-regulated expenses, net — (4,058 ) (396 ) — (4,454 ) Income tax (expense) benefit on other income and expense (181 ) 232 (33 ) 244 262 Total other income (loss) 263 (337 ) 22 (326 ) (378 ) Interest: Interest expense 205 6,969 472 (445 ) 7,201 Less: capitalized interest — (488 ) (10 ) — (498 ) Net interest expense 205 6,481 462 (445 ) 6,703 Equity earnings of subsidiaries 25,012 — — (25,012 ) — Net income $ 25,120 $ 23,984 $ 1,013 $ (24,997 ) $ 25,120 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended September 30, 2014 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 180,768 $ 10,416 $ — $ 191,184 Operating expenses: Operations: Water production costs — 64,332 2,648 — 66,980 Administrative and general 34 21,282 2,449 — 23,765 Other — 14,161 1,657 (126 ) 15,692 Maintenance — 4,620 180 — 4,800 Depreciation and amortization 57 13,692 926 (27 ) 14,648 Income tax (benefit) expense (79 ) 18,632 393 287 19,233 Taxes other than income taxes — 4,409 823 — 5,232 Total operating expenses 12 141,128 9,076 134 150,350 Net operating (loss) income (12 ) 39,640 1,340 (134 ) 40,834 Other Income and Expenses: Non-regulated revenue 448 4,027 446 (512 ) 4,409 Non-regulated expenses, net — (4,538 ) (274 ) — (4,812 ) Income tax (expense) benefit on other income and expense (182 ) 207 (132 ) 276 169 Net other income (loss) 266 (304 ) 40 (236 ) (234 ) Interest: Interest expense 103 7,030 473 (385 ) 7,221 Less: capitalized interest — (252 ) (19 ) — (271 ) Net interest expense 103 6,778 454 (385 ) 6,950 Equity earnings of subsidiaries 33,499 — — (33,499 ) — Net income $ 33,650 $ 32,558 $ 926 $ (33,484 ) $ 33,650 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the nine months ended September 30, 2015 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 422,372 $ 27,570 $ — $ 449,942 Operating expenses: Operations: Water production costs — 152,593 6,068 — 158,661 Administrative and general — 76,271 8,798 — 85,069 Other operations — 46,632 4,973 (378 ) 51,227 Maintenance — 15,148 587 — 15,735 Depreciation and amortization 171 42,659 3,261 (76 ) 46,015 Income tax (benefit) expense (294 ) 20,454 92 756 21,008 Property and other taxes — 13,964 2,072 — 16,036 Total operating (income) expenses (123 ) 367,721 25,851 302 393,751 Net operating income 123 54,651 1,719 (302 ) 56,191 Other Income and Expenses: Non-regulated revenue 1,353 9,674 1,241 (1,728 ) 10,540 Non-regulated expenses, net — (9,283 ) (918 ) — (10,201 ) Income tax expense on other income and expense (549 ) (159 ) (148 ) 725 (131 ) Total other income 804 232 175 (1,003 ) 208 Interest: Interest expense 555 20,751 1,375 (1,350 ) 21,331 Less: capitalized interest — (1,438 ) (34 ) — (1,472 ) Net interest expense 555 19,313 1,341 (1,350 ) 19,859 Equity earnings of subsidiaries 36,168 — — (36,168 ) — Net income $ 36,540 $ 35,570 $ 553 $ (36,123 ) $ 36,540 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the nine months ended September 30, 2014 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 434,857 $ 25,258 $ — $ 460,115 Operating expenses: Operations: Water production costs — 167,214 7,083 — 174,297 Administrative and general 67 65,144 7,491 — 72,702 Other — 43,186 5,264 (378 ) 48,072 Maintenance — 14,276 517 — 14,793 Depreciation and amortization 157 43,607 3,104 (80 ) 46,788 Income tax (benefit) expense (184 ) 22,713 (686 ) 741 22,584 Taxes other than income taxes — 13,552 2,049 — 15,601 Total operating expenses 40 369,692 24,822 283 394,837 Net operating (loss) income (40 ) 65,165 436 (283 ) 65,278 Other Income and Expenses: Non-regulated revenue 1,365 11,264 1,193 (1,659 ) 12,163 Non-regulated expenses, net — (10,286 ) (898 ) — (11,184 ) Income tax (expense) on other income and expense (556 ) (399 ) (144 ) 708 (391 ) Net other income 809 579 151 (951 ) 588 Interest: Interest expense 228 20,974 1,452 (1,281 ) 21,373 Less: capitalized interest — (790 ) (61 ) — (851 ) Net interest expense 228 20,184 1,391 (1,281 ) 20,522 Equity earnings of subsidiaries 44,803 — — (44,803 ) — Net income (loss) $ 45,344 $ 45,560 $ (804 ) $ (44,756 ) $ 45,344
Schedule of Condensed Consolidating Statement of Cash Flows	CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2015 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 36,540 $ 35,570 $ 553 $ (36,123 ) $ 36,540 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (36,168 ) — — 36,168 — Dividends received from affiliates 24,047 — — (24,047 ) — Depreciation and amortization 171 43,768 3,543 (76 ) 47,406 Changes in value of life insurance contracts — 758 — — 758 Changes in operating assets and liabilities (910 ) (9,088 ) 8,436 (94 ) (1,656 ) Other changes in noncurrent assets and liabilities 3,030 35,324 (5,003 ) 125 33,476 Net cash provided by operating activities 26,710 106,332 7,529 (24,047 ) 116,524 Investing activities: Utility plant expenditures — (114,325 ) (3,984 ) — (118,309 ) Investment in affiliates (1,000 ) — — 1,000 — Changes in affiliate advances (3,116 ) 2,918 (82 ) 280 — Proceeds from affiliates long-term debt 767 — — (767 ) — Purchase of life insurance contracts — (1,855 ) — — (1,855 ) Changes in restricted cash — (241 ) — — (241 ) Net cash (used in) investing activities (3,349 ) (113,503 ) (4,066 ) 513 (120,405 ) Financing Activities: Short-term borrowings 2,500 80,000 — — 82,500 Repayment of short-term borrowings — (25,000 ) — — (25,000 ) Debt issuance costs (399 ) (798 ) — (1,197 ) Investment from affiliates — — 1,000 (1,000 ) — Changes in affiliate advances — 2,965 (2,685 ) (280 ) — Repayment of affiliates long-term borrowings — — (767 ) 767 — Proceeds from long-term debt — — 50 — 50 Repayment of long-term debt — (2,480 ) (398 ) — (2,878 ) Advances and contributions in aid for construction — 10,682 59 — 10,741 Refunds of advances for construction — (5,014 ) (36 ) — (5,050 ) Dividends paid to non-affiliates (24,047 ) — — — (24,047 ) Dividends paid to affiliates — (23,754 ) (293 ) 24,047 — Net cash (used in) provided by financing activities (21,946 ) 36,601 (3,070 ) 23,534 35,119 Change in cash and cash equivalents 1,415 29,430 393 — 31,238 Cash and cash equivalents at beginning of period 4,108 13,929 1,550 — 19,587 Cash and cash equivalents at end of period $ 5,523 $ 43,359 $ 1,943 $ — $ 50,825 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2014 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income (loss) $ 45,344 $ 45,560 $ (804 ) $ (44,756 ) $ 45,344 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity earnings of subsidiaries (44,803 ) — — 44,803 — Dividends received from affiliates 23,295 — — (23,295 ) — Depreciation and amortization 157 45,059 3,345 (80 ) 48,481 Change in value of life insurance contracts — (501 ) — — (501 ) Changes in operating assets and liabilities (68 ) (7,969 ) 1,540 (6,497 ) Other changes in noncurrent assets and liabilities 2,160 11,539 (392 ) 33 13,340 Net cash provided by operating activities 26,085 93,688 3,689 (23,295 ) 100,167 Investing activities: Utility plant expenditures — (81,505 ) (4,753 ) — (86,258 ) Investment in affiliates (46,850 ) — — 46,850 — Changes in affiliate advances (5,455 ) 4,778 (200 ) 877 — Proceeds from affiliates long-term debt 699 — — (699 ) — Purchase of life insurance contracts — (3,207 ) — — (3,207 ) Changes in restricted cash — 354 — — 354 Net cash (used in) investing activities (51,606 ) (79,580 ) (4,953 ) 47,028 (89,111 ) Financing Activities: Short-term borrowings 64,900 35,000 — — 99,900 Repayment of short-term borrowings (20,000 ) (65,000 ) — — (85,000 ) Investment from affiliates — 42,000 4,850 (46,850 ) — Changes in affiliate advances (48 ) 1,814 (889 ) (877 ) — Repayment of affiliates long-term borrowings — (699 ) 699 — Repayment of long-term debt — (2,919 ) (1,685 ) — (4,604 ) Advances and contributions in aid for construction — 8,239 541 — 8,780 Refunds of advances for construction — (4,809 ) (49 ) — (4,858 ) Dividends paid to non-affiliates (23,295 ) — — — (23,295 ) Dividends paid to affiliates (23,005 ) (290 ) 23,295 — Net cash (used in) provided by financing activities 21,557 (8,680 ) 1,779 (23,733 ) (9,077 ) Change in cash and cash equivalents (3,964 ) 5,428 515 — 1,979 Cash and cash equivalents at beginning of period 5,280 20,790 1,436 — 27,506 Cash and cash equivalents at end of period $ 1,316 $ 26,218 $ 1,951 $ — $ 29,485

Organization and Operations a26

Organization and Operations and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2015segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Revenue
Markup for return or profit for cost-recovery expenses	$ 0
Maturity period of commercial paper	90 days
Minimum collection period after net receivable balances were recognized in which the Company defers net WRAM and MCBA operating revenues and associated costs	24 months
Maximum collection period in which deferred net WRAM and MCBA revenues and associated costs will be recognized	24 months
Unearned revenue liability	$ 1,400,000	$ 1,500,000
Cash and Cash Equivalents
Carrying value of cash and cash equivalents	50,825,000	19,587,000	$ 29,485,000	$ 27,506,000
Taxes, prepaid expenses and other assets [Member]
Regulatory Assets and Liabilities
Carrying value of restricted cash	$ 1,000,000	$ 800,000
Minimum
Regulatory Assets and Liabilities
Expected collection period for undercollected net WRAM and MCBA receivables	12 months
Maximum
Regulatory Assets and Liabilities
Expected collection period for undercollected net WRAM and MCBA receivables	18 months

Stock-based Compensation (Detai

Stock-based Compensation (Details) - Equity Incentive Plan - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Compensation expense
Recorded compensation costs for the RSAs and RSUs			$ 2	$ 1.5
Restricted Stock Awards (RSAs)
Stock-based Compensation
Weighted average grant date fair value (in dollars per share)			$ 24.29	$ 23.61
Restricted Stock Awards (RSAs) | Officers and Directors
Stock-based Compensation
Awards granted (in shares)		2	61	60
Awards cancelled (in shares)	3	0	16	11
Restricted Stock Awards (RSAs) | Employees
Stock-based Compensation
Vesting period			36 months
Restricted Stock Awards (RSAs) | Director
Stock-based Compensation
Vesting period			12 months
Restricted Stock Unit Award (RSUs) | Officer
Stock-based Compensation
Awards granted (in shares)			39	37
Expiration period of award			3 years	3 years
Weighted average grant date fair value (in dollars per share)			$ 24.28	$ 23.61
Restricted Stock Unit Award (RSUs) | Officer | Minimum
Stock-based Compensation
Options vested on anniversary date (as a percent)			0.00%
Restricted Stock Unit Award (RSUs) | Officer | Maximum
Stock-based Compensation
Options vested on anniversary date (as a percent)			200.00%

Equity (Details)

Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Changes in total common stockholders' equity
Balance at the beginning of the period			$ 626,626
Common stock issued			1
Share-based compensation expense			1,732
Common stock dividends declared			(24,047)
Net income	$ 25,120	$ 33,650	36,540	$ 45,344
Balance at the end of the period	$ 640,852		$ 640,852

Net Income Per Share Calculat30

Net Income Per Share Calculations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income available to common stockholders	$ 25,120	$ 33,650	$ 36,540	$ 45,344
Weighted average common shares outstanding, basic (in shares)	47,878,000	47,803,000	47,861,000	47,787,000
Dilutive SARs (treasury method) (in shares)	9,000	37,000	16,000	38,000
Weighed average common shares outstanding, dilutive (in shares)	47,887,000	47,840,000	47,877,000	47,825,000
Net income per share - basic (in dollars per share)	$ 0.52	$ 0.70	$ 0.76	$ 0.95
Net income per share - diluted (in dollars per share)	$ 0.52	$ 0.70	$ 0.76	$ 0.95
Net Income Per Share Calculations
Dilutive SARs (treasury method) (in shares)	9,000	37,000	16,000	38,000
Stock Appreciation Rights (SARs)
Earnings Per Share [Abstract]
Dilutive SARs (treasury method) (in shares)			65	185
Net Income Per Share Calculations
Dilutive SARs (treasury method) (in shares)			65	185

Pension Plan and Other Postre31

Pension Plan and Other Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Pension Plan
Pension Plan and Other Postretirement Benefits
Employer cash contributions			$ 22,700	$ 14,000
Estimated cash contributions in the current fiscal year			31,200
Components of the pension plans and other postretirement benefits
Service cost	$ 4,715	$ 3,539	15,980	11,973
Interest cost	5,072	4,737	15,078	14,190
Expected return on plan assets	(4,770)	(4,091)	(14,354)	(12,449)
Amortization of prior service cost	1,502	1,527	4,506	4,547
Recognized net actuarial loss	2,308	1,002	7,108	3,008
Net periodic benefit cost	8,827	6,714	28,318	21,269
Other Benefits
Pension Plan and Other Postretirement Benefits
Employer cash contributions			7,500	2,400
Estimated cash contributions in the current fiscal year			15,000
Components of the pension plans and other postretirement benefits
Service cost	3,043	1,398	8,044	4,637
Interest cost	2,101	1,321	5,328	3,995
Expected return on plan assets	(908)	(832)	(2,660)	(2,339)
Amortization of prior service cost	12	11	34	33
Recognized net actuarial loss	2,182	656	5,099	2,206
Net periodic benefit cost	$ 6,430	$ 2,554	$ 15,845	$ 8,532

Short-term and Long-term Borr32

Short-term and Long-term Borrowings (Details) - Revolving Credit Facility - USD ($) $ in Millions	Mar. 10, 2015	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Short-term and Long-term Borrowings
Maximum borrowing capacity	$ 450
Debt maturity period	5 years
Minimum
Short-term and Long-term Borrowings
Commitment fee (as a percent)	0.08%
Minimum | LIBOR
Short-term and Long-term Borrowings
Interest rate margin (as a percent)	0.725%
Maximum
Short-term and Long-term Borrowings
Commitment fee (as a percent)	0.125%
Maximum | LIBOR
Short-term and Long-term Borrowings
Interest rate margin (as a percent)	0.95%
Parent Company
Short-term and Long-term Borrowings
Maximum borrowing capacity	$ 150
Amount outstanding under line of credit		$ 64.2	$ 61.7
Cal Water
Short-term and Long-term Borrowings
Maximum borrowing capacity	$ 300
Period within which borrowings are to be repaid	12 months
Additional capacity available	$ 50
Amount outstanding under line of credit		$ 72.4	$ 17.4
Average borrowing rate (as a percent)		1.05%		1.16%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 8.5	$ 7.9
Tax benefits that, if recognized, would affect the effective tax rate	$ 1.8	$ 1.6

Regulatory Assets and Liabili34

Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Regulatory Assets and Liabilities
Regulatory assets	$ 398,535	$ 390,331
Regulatory liabilities	36,127	36,447
Short-term portion of the regulatory assets	38,112	53,199
Short-term portion of the regulatory liabilities	1,870	6,126
Tax benefits to ratepayers
Regulatory Assets and Liabilities
Regulatory liabilities	26,620	26,114
Conservation program
Regulatory Assets and Liabilities
Regulatory liabilities	4,686	2,669
Pension balancing account
Regulatory Assets and Liabilities
Regulatory liabilities	2,181	4,291
Other regulatory liabilities
Regulatory Assets and Liabilities
Regulatory liabilities	2,640	3,373
Pension and retiree group health
Regulatory Assets and Liabilities
Regulatory assets	244,514	245,008
Tax benefits to ratepayers
Regulatory Assets and Liabilities
Regulatory assets	73,797	72,350
Other accrued benefits
Regulatory Assets and Liabilities
Regulatory assets	29,356	32,959
Net WRAM and MCBA long-term accounts receivable
Regulatory Assets and Liabilities
Regulatory assets	16,972	14,449
Asset retirement obligations, net
Regulatory Assets and Liabilities
Regulatory assets	14,792	13,863
Interim rates long-term accounts receivable
Regulatory Assets and Liabilities
Regulatory assets	5,694	10,627
Tank coating
Regulatory Assets and Liabilities
Regulatory assets	7,264	0
Health care balancing account
Regulatory Assets and Liabilities
Regulatory assets	4,445	1,075
Other regulatory assets
Regulatory Assets and Liabilities
Regulatory assets	$ 1,701	$ 0

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Accrual for asbestos-related lawsuits	$ 0
Contingency loss recognized liability	$ 4,100,000	$ 3,200,000

Fair Value of Financial Asset36

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Fair Value of Financial Assets and Liabilities
Risk premium (as a percent)	1.19%
Advances for construction	$ 180,805	$ 182,284
Level 1
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	0	0
Advances for construction	0	0
Total	0	0
Level 2
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	518,301	534,068
Advances for construction	73,305	72,571
Total	591,606	606,639
Level 3
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	0	0
Advances for construction	0	0
Total	0	0
Cost
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	423,012	425,840
Advances for construction	180,805	182,284
Total	603,817	608,124
Total
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	518,301	534,068
Advances for construction	73,305	72,571
Total	$ 591,606	$ 606,639

Subsequent Event (Details)

Subsequent Event (Details) - USD ($)	1 Months Ended	9 Months Ended
	Oct. 31, 2015	Sep. 30, 2015	Sep. 30, 2014	Oct. 13, 2015
Subsequent Event [Line Items]
Proceeds from long-term debt		$ 50,000	$ 0
Cal Water
Subsequent Event [Line Items]
Proceeds from long-term debt		$ 0
Subsequent Event [Member] | Revolving Credit Facility | Cal Water
Subsequent Event [Line Items]
Repayment of debt	$ 72,400,000
Subsequent Event [Member] | First Mortgage Bonds [Member]
Subsequent Event [Line Items]
Debt issued				$ 150,000,000
Debt issuance cost	600,000
Proceeds from long-term debt	$ 99,400,000
Subsequent Event [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds Issue 1 [Member]
Subsequent Event [Line Items]
Debt issued				100,000,000
Subsequent Event [Member] | First Mortgage Bonds [Member] | Series QQQ Bond [Member]
Subsequent Event [Line Items]
Debt issued				$ 50,000,000
Interest rate				3.33%
Subsequent Event [Member] | First Mortgage Bonds [Member] | Series RRR Bond [Member]
Subsequent Event [Line Items]
Debt issued				$ 50,000,000
Interest rate				4.31%
Subsequent Event [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds Issue 2 [Member]
Subsequent Event [Line Items]
Debt issued				$ 50,000,000
Subsequent Event [Member] | First Mortgage Bonds [Member] | Series SSS Bond [Member]
Subsequent Event [Line Items]
Debt issued				$ 40,000,000
Interest rate				4.41%
Subsequent Event [Member] | First Mortgage Bonds [Member] | Series TTT Bond [Member]
Subsequent Event [Line Items]
Debt issued				$ 10,000,000
Interest rate				4.61%

Condensed Consolidating Finan38

Condensed Consolidating Financial Statements (Details) - USD ($)	Sep. 30, 2015	Nov. 17, 2010	Apr. 17, 2009
Cal Water
Long-term debt
Ownership interest (as a percent)	100.00%
All Other Subsidiaries
Long-term debt
Ownership interest (as a percent)	100.00%
First Mortgage Bonds, 5.875% due 2019 | Cal Water
Long-term debt
Debt issued			$ 100,000,000
Interest rate			5.875%
First Mortgage Bonds, 5.500% due 2040 | Cal Water
Long-term debt
Debt issued		$ 100,000,000
Interest rate		5.50%

Condensed Consolidating Finan39

Condensed Consolidating Financial Statements (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Utility plant:
Utility plant	$ 2,460,829	$ 2,342,471
Less accumulated depreciation and amortization	(797,264)	(752,040)
Net utility plant	1,663,565	1,590,431
Current assets:
Cash and cash equivalents	50,825	19,587	$ 29,485	$ 27,506
Receivables and unbilled revenue, net	125,331
Receivables		116,878
Receivables from affiliates	0	0
Other current assets	14,910	17,659
Total current assets	191,066	154,124
Other assets:
Regulatory assets	398,535	390,331
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	53,354	52,465
Total other assets	451,889	442,796
Total assets	2,306,520	2,187,351
Capitalization:
Common stockholders' equity	640,852	626,626
Affiliate long-term debt	0	0
Long-term debt, less current maturities	416,447	419,233
Total capitalization	1,057,299	1,045,859
Current liabilities:
Current maturities of long-term debt	6,565	6,607
Short-term borrowings	136,615	79,115
Payables to affiliates	0	0
Accounts payable	77,261	59,395
Accrued expenses and other liabilities	80,329	72,589
Total current liabilities	300,770	217,706
Unamortized investment tax credits	1,947	2,032
Deferred income taxes, net	236,443	214,842
Pension and postretirement benefits other than pensions	276,525	270,865
Regulatory liabilities and other	76,799	83,279
Advances for construction	180,805	182,284
Contributions in aid of construction	175,932	170,484
Total capitalization and liabilities	2,306,520	2,187,351
Consolidating Adjustments
Utility plant:
Utility plant	(7,197)	(7,197)
Less accumulated depreciation and amortization	1,798	1,722
Net utility plant	(5,399)	(5,475)
Current assets:
Cash and cash equivalents	0	0	0	0
Receivables and unbilled revenue, net	0
Receivables		(1,051)
Receivables from affiliates	(24,046)	(23,609)
Other current assets	0	0
Total current assets	(24,046)	(24,660)
Other assets:
Regulatory assets	0	0
Investments in affiliates	(651,120)	(637,998)
Long-term affiliate notes receivable	(24,452)	(25,263)
Other assets	(883)	(321)
Total other assets	(676,455)	(663,582)
Total assets	(705,900)	(693,717)
Capitalization:
Common stockholders' equity	(656,502)	(643,426)
Affiliate long-term debt	(24,452)	(25,263)
Long-term debt, less current maturities	0	0
Total capitalization	(680,954)	(668,689)
Current liabilities:
Current maturities of long-term debt	0	0
Short-term borrowings	0	0
Payables to affiliates	(24,046)	(23,609)
Accounts payable	0	(201)
Accrued expenses and other liabilities	0	(756)
Total current liabilities	(24,046)	(24,566)
Unamortized investment tax credits	0	0
Deferred income taxes, net	(900)	(462)
Pension and postretirement benefits other than pensions	0	0
Regulatory liabilities and other	0	0
Advances for construction	0	0
Contributions in aid of construction	0	0
Total capitalization and liabilities	(705,900)	(693,717)
Parent Company
Utility plant:
Utility plant	1,318	1,318
Less accumulated depreciation and amortization	(548)	(377)
Net utility plant	770	941
Current assets:
Cash and cash equivalents	5,523	4,108	1,316	5,280
Receivables and unbilled revenue, net	13
Receivables		0
Receivables from affiliates	23,161	20,001
Other current assets	182	0
Total current assets	28,879	24,109
Other assets:
Regulatory assets	0	0
Investments in affiliates	651,120	637,998
Long-term affiliate notes receivable	24,452	25,263
Other assets	806	891
Total other assets	676,378	664,152
Total assets	706,027	689,202
Capitalization:
Common stockholders' equity	640,852	626,626
Affiliate long-term debt	0	0
Long-term debt, less current maturities	0	0
Total capitalization	640,852	626,626
Current liabilities:
Current maturities of long-term debt	0	0
Short-term borrowings	64,215	61,715
Payables to affiliates	0	0
Accounts payable	0	0
Accrued expenses and other liabilities	64	861
Total current liabilities	64,279	62,576
Unamortized investment tax credits	0	0
Deferred income taxes, net	896	0
Pension and postretirement benefits other than pensions	0	0
Regulatory liabilities and other	0	0
Advances for construction	0	0
Contributions in aid of construction	0	0
Total capitalization and liabilities	706,027	689,202
Cal Water
Utility plant:
Utility plant	2,268,876	2,154,146
Less accumulated depreciation and amortization	(751,913)	(710,840)
Net utility plant	1,516,963	1,443,306
Current assets:
Cash and cash equivalents	43,359	13,929	26,218	20,790
Receivables and unbilled revenue, net	120,790
Receivables		108,815
Receivables from affiliates	690	3,608
Other current assets	13,517	16,443
Total current assets	178,356	142,795
Other assets:
Regulatory assets	395,079	387,387
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	48,803	47,617
Total other assets	443,882	435,004
Total assets	2,139,201	2,021,105
Capitalization:
Common stockholders' equity	581,135	569,319
Affiliate long-term debt	0	0
Long-term debt, less current maturities	415,375	417,884
Total capitalization	996,510	987,203
Current liabilities:
Current maturities of long-term debt	6,201	6,173
Short-term borrowings	72,400	17,400
Payables to affiliates	3,235	270
Accounts payable	74,277	56,666
Accrued expenses and other liabilities	75,231	71,203
Total current liabilities	231,344	151,712
Unamortized investment tax credits	1,947	2,032
Deferred income taxes, net	236,447	210,789
Pension and postretirement benefits other than pensions	276,525	270,865
Regulatory liabilities and other	73,911	74,282
Advances for construction	180,297	181,763
Contributions in aid of construction	142,220	142,459
Total capitalization and liabilities	2,139,201	2,021,105
All Other Subsidiaries
Utility plant:
Utility plant	197,832	194,204
Less accumulated depreciation and amortization	(46,601)	(42,545)
Net utility plant	151,231	151,659
Current assets:
Cash and cash equivalents	1,943	1,550	$ 1,951	$ 1,436
Receivables and unbilled revenue, net	4,528
Receivables		9,114
Receivables from affiliates	195	0
Other current assets	1,211	1,216
Total current assets	7,877	11,880
Other assets:
Regulatory assets	3,456	2,944
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	4,628	4,278
Total other assets	8,084	7,222
Total assets	167,192	170,761
Capitalization:
Common stockholders' equity	75,367	74,107
Affiliate long-term debt	24,452	25,263
Long-term debt, less current maturities	1,072	1,349
Total capitalization	100,891	100,719
Current liabilities:
Current maturities of long-term debt	364	434
Short-term borrowings	0	0
Payables to affiliates	20,811	23,339
Accounts payable	2,984	2,930
Accrued expenses and other liabilities	5,034	1,281
Total current liabilities	29,193	27,984
Unamortized investment tax credits	0	0
Deferred income taxes, net	0	4,515
Pension and postretirement benefits other than pensions	0	0
Regulatory liabilities and other	2,888	8,997
Advances for construction	508	521
Contributions in aid of construction	33,712	28,025
Total capitalization and liabilities	$ 167,192	$ 170,761

Condensed Consolidating Finan40

Condensed Consolidating Financial Statements (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Consolidating Financial Statements
Operating revenue	$ 183,543	$ 191,184	$ 449,942	$ 460,115
Operations:
Water production costs	60,437	66,980	158,661	174,297
Administrative and general	30,737	23,765	85,069	72,702
Other operations	17,872	15,692	51,227	48,072
Maintenance	5,952	4,800	15,735	14,793
Depreciation and amortization	15,342	14,648	46,015	46,788
Income tax (benefit) expense	15,293	19,233	21,008	22,584
Property and other taxes	5,709	5,232	16,036	15,601
Total operating expenses	151,342	150,350	393,751	394,837
Net operating income	32,201	40,834	56,191	65,278
Other Income and Expenses:
Non-regulated revenue	3,814	4,409	10,540	12,163
Non-regulated expenses, net	(4,454)	(4,812)	(10,201)	(11,184)
Income tax (expense) benefit on other income and expense	262	169	(131)	(391)
Net other loss	(378)	(234)	208	588
Interest:
Interest expense	7,201	7,221	21,331	21,373
Less: capitalized interest	(498)	(271)	(1,472)	(851)
Net interest expense	6,703	6,950	19,859	20,522
Equity earnings of subsidiaries	0	0	0	0
Net Income	25,120	33,650	36,540	45,344
Consolidating Adjustments
Condensed Consolidating Financial Statements
Operating revenue	0	0	0	0
Operations:
Water production costs	0	0	0	0
Administrative and general	0	0	0	0
Other operations	(125)	(126)	(378)	(378)
Maintenance	0	0	0	0
Depreciation and amortization	(25)	(27)	(76)	(80)
Income tax (benefit) expense	254	287	756	741
Property and other taxes	0	0	0	0
Total operating expenses	104	134	302	283
Net operating income	(104)	(134)	(302)	(283)
Other Income and Expenses:
Non-regulated revenue	(570)	(512)	(1,728)	(1,659)
Non-regulated expenses, net	0	0	0	0
Income tax (expense) benefit on other income and expense	244	276	725	708
Net other loss	(326)	(236)	(1,003)	(951)
Interest:
Interest expense	(445)	(385)	(1,350)	(1,281)
Less: capitalized interest	0	0	0	0
Net interest expense	(445)	(385)	(1,350)	(1,281)
Equity earnings of subsidiaries	(25,012)	(33,499)	(36,168)	(44,803)
Net Income	(24,997)	(33,484)	(36,123)	(44,756)
Parent Company
Condensed Consolidating Financial Statements
Operating revenue	0	0	0	0
Operations:
Water production costs	0	0	0	0
Administrative and general	0	34	0	67
Other operations	0	0	0	0
Maintenance	0	0	0	0
Depreciation and amortization	57	57	171	157
Income tax (benefit) expense	(107)	(79)	(294)	(184)
Property and other taxes	0	0	0	0
Total operating expenses	(50)	12	(123)	40
Net operating income	50	(12)	123	(40)
Other Income and Expenses:
Non-regulated revenue	444	448	1,353	1,365
Non-regulated expenses, net	0	0	0	0
Income tax (expense) benefit on other income and expense	(181)	(182)	(549)	(556)
Net other loss	263	266	804	809
Interest:
Interest expense	205	103	555	228
Less: capitalized interest	0	0	0	0
Net interest expense	205	103	555	228
Equity earnings of subsidiaries	25,012	33,499	36,168	44,803
Net Income	25,120	33,650	36,540	45,344
Cal Water
Condensed Consolidating Financial Statements
Operating revenue	172,425	180,768	422,372	434,857
Operations:
Water production costs	58,173	64,332	152,593	167,214
Administrative and general	27,620	21,282	76,271	65,144
Other operations	16,329	14,161	46,632	43,186
Maintenance	5,722	4,620	15,148	14,276
Depreciation and amortization	14,231	13,692	42,659	43,607
Income tax (benefit) expense	14,638	18,632	20,454	22,713
Property and other taxes	4,910	4,409	13,964	13,552
Total operating expenses	141,623	141,128	367,721	369,692
Net operating income	30,802	39,640	54,651	65,165
Other Income and Expenses:
Non-regulated revenue	3,489	4,027	9,674	11,264
Non-regulated expenses, net	(4,058)	(4,538)	(9,283)	(10,286)
Income tax (expense) benefit on other income and expense	232	207	(159)	(399)
Net other loss	(337)	(304)	232	579
Interest:
Interest expense	6,969	7,030	20,751	20,974
Less: capitalized interest	(488)	(252)	(1,438)	(790)
Net interest expense	6,481	6,778	19,313	20,184
Equity earnings of subsidiaries	0	0	0	0
Net Income	23,984	32,558	35,570	45,560
All Other Subsidiaries
Condensed Consolidating Financial Statements
Operating revenue	11,118	10,416	27,570	25,258
Operations:
Water production costs	2,264	2,648	6,068	7,083
Administrative and general	3,117	2,449	8,798	7,491
Other operations	1,668	1,657	4,973	5,264
Maintenance	230	180	587	517
Depreciation and amortization	1,079	926	3,261	3,104
Income tax (benefit) expense	508	393	92	(686)
Property and other taxes	799	823	2,072	2,049
Total operating expenses	9,665	9,076	25,851	24,822
Net operating income	1,453	1,340	1,719	436
Other Income and Expenses:
Non-regulated revenue	451	446	1,241	1,193
Non-regulated expenses, net	(396)	(274)	(918)	(898)
Income tax (expense) benefit on other income and expense	(33)	(132)	(148)	(144)
Net other loss	22	40	175	151
Interest:
Interest expense	472	473	1,375	1,452
Less: capitalized interest	(10)	(19)	(34)	(61)
Net interest expense	462	454	1,341	1,391
Equity earnings of subsidiaries	0	0	0	0
Net Income	$ 1,013	$ 926	$ 553	$ (804)

Condensed Consolidating Finan41

Condensed Consolidating Financial Statements (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Operating activities:
Net income	$ 25,120	$ 33,650	$ 36,540	$ 45,344
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	0	0	0	0
Dividends received from affiliates			0	0
Depreciation and amortization			47,406	48,481
Change in value of life insurance contracts			758	(501)
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:			33,476	(6,497)
Other changes in noncurrent assets and liabilities			(1,656)	13,340
Net cash provided by operating activities			116,524	100,167
Investing activities:
Utility plant expenditures			(118,309)	(86,258)
Investment in affiliates			0	0
Changes in affiliate advances			0	0
Proceeds from affiliates long-term debt			0	0
Purchase of life insurance contracts			(1,855)	(3,207)
Change in restricted cash			(241)	354
Net cash used in investing activities			(120,405)	(89,111)
Financing Activities:
Short-term borrowings			82,500	99,900
Repayment of short-term borrowings			(25,000)	(85,000)
Debt issuance costs			(1,197)	0
Investment from affiliates			0	0
Changes in affiliate advances			0	0
Repayment of affiliates long-term borrowings			0	0
Proceeds from long-term debt			50	0
Repayment of long-term debt			(2,878)	(4,604)
Advances and contributions in aid of construction			10,741	8,780
Refunds of advances for construction			(5,050)	(4,858)
Dividends paid to non-affiliates			(24,047)	(23,295)
Dividends paid to affiliates			0	0
Net cash provided by (used in) financing activities			35,119	(9,077)
Change in cash and cash equivalents			31,238	1,979
Cash and cash equivalents at beginning of period			19,587	27,506
Cash and cash equivalents at end of period	50,825	29,485	50,825	29,485
Consolidating Adjustments
Operating activities:
Net income	(24,997)	(33,484)	(36,123)	(44,756)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	25,012	33,499	36,168	44,803
Dividends received from affiliates			(24,047)	(23,295)
Depreciation and amortization			(76)	(80)
Change in value of life insurance contracts			0	$ 0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:			125
Other changes in noncurrent assets and liabilities			(94)	$ 33
Net cash provided by operating activities			(24,047)	(23,295)
Investing activities:
Utility plant expenditures			0	0
Investment in affiliates			1,000	46,850
Changes in affiliate advances			280	877
Proceeds from affiliates long-term debt			(767)	(699)
Purchase of life insurance contracts			0	0
Change in restricted cash			0	0
Net cash used in investing activities			513	47,028
Financing Activities:
Short-term borrowings			0	0
Repayment of short-term borrowings			0	0
Investment from affiliates			(1,000)	(46,850)
Changes in affiliate advances			(280)	(877)
Repayment of affiliates long-term borrowings			767	699
Proceeds from long-term debt			0
Repayment of long-term debt			0	0
Advances and contributions in aid of construction			0	0
Refunds of advances for construction			0	0
Dividends paid to non-affiliates			0	0
Dividends paid to affiliates			24,047	23,295
Net cash provided by (used in) financing activities			23,534	(23,733)
Change in cash and cash equivalents			0	0
Cash and cash equivalents at beginning of period			0	0
Cash and cash equivalents at end of period	0	0	0	0
Parent Company
Operating activities:
Net income	25,120	33,650	36,540	45,344
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	(25,012)	(33,499)	(36,168)	(44,803)
Dividends received from affiliates			24,047	23,295
Depreciation and amortization			171	157
Change in value of life insurance contracts			0	0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:			3,030	(68)
Other changes in noncurrent assets and liabilities			(910)	2,160
Net cash provided by operating activities			26,710	26,085
Investing activities:
Utility plant expenditures			0	0
Investment in affiliates			(1,000)	(46,850)
Changes in affiliate advances			(3,116)	(5,455)
Proceeds from affiliates long-term debt			767	699
Purchase of life insurance contracts			0	0
Change in restricted cash			0	0
Net cash used in investing activities			(3,349)	(51,606)
Financing Activities:
Short-term borrowings			2,500	64,900
Repayment of short-term borrowings			0	(20,000)
Debt issuance costs			(399)
Investment from affiliates			0	0
Changes in affiliate advances			0	(48)
Repayment of affiliates long-term borrowings			0	0
Proceeds from long-term debt			0
Repayment of long-term debt			0	0
Advances and contributions in aid of construction			0	0
Refunds of advances for construction			0	0
Dividends paid to non-affiliates			(24,047)	$ (23,295)
Dividends paid to affiliates			0
Net cash provided by (used in) financing activities			(21,946)	$ 21,557
Change in cash and cash equivalents			1,415	(3,964)
Cash and cash equivalents at beginning of period			4,108	5,280
Cash and cash equivalents at end of period	5,523	1,316	5,523	1,316
Cal Water
Operating activities:
Net income	23,984	32,558	35,570	45,560
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	0	0	0	0
Dividends received from affiliates			0	0
Depreciation and amortization			43,768	45,059
Change in value of life insurance contracts			758	(501)
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:			35,324	(7,969)
Other changes in noncurrent assets and liabilities			(9,088)	11,539
Net cash provided by operating activities			106,332	93,688
Investing activities:
Utility plant expenditures			(114,325)	(81,505)
Investment in affiliates			0	0
Changes in affiliate advances			2,918	4,778
Proceeds from affiliates long-term debt			0	0
Purchase of life insurance contracts			(1,855)	(3,207)
Change in restricted cash			(241)	354
Net cash used in investing activities			(113,503)	(79,580)
Financing Activities:
Short-term borrowings			80,000	35,000
Repayment of short-term borrowings			(25,000)	(65,000)
Debt issuance costs			(798)
Investment from affiliates			0	42,000
Changes in affiliate advances			2,965	$ 1,814
Repayment of affiliates long-term borrowings			0
Proceeds from long-term debt			0
Repayment of long-term debt			(2,480)	$ (2,919)
Advances and contributions in aid of construction			10,682	8,239
Refunds of advances for construction			(5,014)	(4,809)
Dividends paid to non-affiliates			0	0
Dividends paid to affiliates			(23,754)	(23,005)
Net cash provided by (used in) financing activities			36,601	(8,680)
Change in cash and cash equivalents			29,430	5,428
Cash and cash equivalents at beginning of period			13,929	20,790
Cash and cash equivalents at end of period	43,359	26,218	43,359	26,218
All Other Subsidiaries
Operating activities:
Net income	1,013	926	553	(804)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	0	0	0	0
Dividends received from affiliates			0	0
Depreciation and amortization			3,543	3,345
Change in value of life insurance contracts			0	0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:			(5,003)	1,540
Other changes in noncurrent assets and liabilities			8,436	(392)
Net cash provided by operating activities			7,529	3,689
Investing activities:
Utility plant expenditures			(3,984)	(4,753)
Investment in affiliates			0	0
Changes in affiliate advances			(82)	(200)
Proceeds from affiliates long-term debt			0	0
Purchase of life insurance contracts			0	0
Change in restricted cash			0	0
Net cash used in investing activities			(4,066)	(4,953)
Financing Activities:
Short-term borrowings			0	0
Repayment of short-term borrowings			0	0
Debt issuance costs			0
Investment from affiliates			1,000	4,850
Changes in affiliate advances			(2,685)	(889)
Repayment of affiliates long-term borrowings			(767)	(699)
Proceeds from long-term debt			50
Repayment of long-term debt			(398)	(1,685)
Advances and contributions in aid of construction			59	541
Refunds of advances for construction			(36)	(49)
Dividends paid to non-affiliates			0	0
Dividends paid to affiliates			(293)	(290)
Net cash provided by (used in) financing activities			(3,070)	1,779
Change in cash and cash equivalents			393	515
Cash and cash equivalents at beginning of period			1,550	1,436
Cash and cash equivalents at end of period	$ 1,943	$ 1,951	$ 1,943	$ 1,951