California Water Service (CWT) 10-Q27 Oct 162016 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2016shares
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, 2016
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	47,968,212
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Utility plant:
Utility plant	$ 2,667,635	$ 2,506,946
Less accumulated depreciation and amortization	(849,884)	(805,178)
Net utility plant	1,817,751	1,701,768
Current assets:
Cash and cash equivalents	21,351	8,837
Receivables:
Customers	45,376	31,512
Regulatory balancing accounts	19,811	35,052
Other	14,199	14,760
Unbilled revenue	33,727	23,181
Materials and supplies at weighted average cost	6,256	6,339
Taxes, prepaid expenses, and other assets	10,407	7,897
Total current assets	151,127	127,578
Other assets:
Regulatory assets	363,597	361,893
Goodwill	2,615	2,615
Other assets	50,953	47,399
Total other assets	417,165	411,907
TOTAL ASSETS	2,386,043	2,241,253
Capitalization:
Common stock, $0.01 par value; 68,000 shares authorized, 47,968 and 47,875 outstanding in 2016 and 2015, respectively	480	479
Additional paid-in capital	334,213	333,135
Retained earnings	317,319	308,541
Total common stockholders’ equity	652,012	642,155
Long-term debt, less current maturities	555,536	508,002
Total capitalization	1,207,548	1,150,157
Current liabilities:
Current maturities of long-term debt	6,130	6,043
Short-term borrowings	57,100	33,615
Accounts payable	84,052	66,380
Regulatory balancing accounts	2,837	2,227
Accrued interest	12,733	5,088
Accrued expenses and other liabilities	41,129	34,545
Total current liabilities	203,981	147,898
Unamortized investment tax credits	1,872	1,872
Deferred income taxes	282,973	264,897
Pension and postretirement benefits other than pensions	237,341	236,266
Regulatory liabilities and other	90,714	82,414
Advances for construction	182,001	180,172
Contributions in aid of construction	179,613	177,577
Commitments and contingencies (Note 10)	0	0
TOTAL CAPITALIZATION AND LIABILITIES	$ 2,386,043	$ 2,241,253

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited Unaudited (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
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)	47,968,000	47,875,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Operating revenue	$ 184,268	$ 183,543	$ 458,440	$ 449,942
Operations:
Water production costs	70,175	60,437	168,833	158,661
Administrative and general	23,844	30,737	75,037	85,069
Other operations	19,561	17,872	57,766	51,227
Maintenance	5,545	5,952	17,542	15,735
Depreciation and amortization	15,884	15,342	47,772	46,015
Income taxes	13,247	15,293	19,192	21,008
Property and other taxes	5,957	5,709	17,439	16,036
Total operating (income) expense	154,213	151,342	403,581	393,751
Net operating income (loss)	30,055	32,201	54,859	56,191
Other income and expenses:
Non-regulated revenue	3,397	3,814	10,589	10,540
Non-regulated expenses	(2,517)	(4,454)	(8,306)	(10,201)
Income tax (expense) benefit on other income and expenses	(349)	262	(914)	(131)
Net other income (loss)	531	(378)	1,369	208
Interest expense:
Interest expense	8,485	7,201	24,984	21,331
Less: capitalized interest	(774)	(498)	(2,341)	(1,472)
Net interest expense	7,711	6,703	22,643	19,859
Net income	$ 22,875	$ 25,120	$ 33,585	$ 36,540
Earnings per share:
Basic (in dollars per share)	$ 0.48	$ 0.52	$ 0.70	$ 0.76
Diluted (in dollars per share)	$ 0.48	$ 0.52	$ 0.70	$ 0.76
Weighted average shares outstanding:
Basic (in shares)	47,969	47,878	47,949	47,861
Diluted (in shares)	47,969	47,887	47,952	47,877
Dividends declared per share of common stock (in dollars per share)	$ 0.1725	$ 0.1675	$ 0.5175	$ 0.5025

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities:
Net income	$ 33,585	$ 36,540
Adjustments to reconcile net income to net cash:
Depreciation and amortization	48,946	47,406
Change in value of life insurance contracts	(915)	758
Changes in operating assets and liabilities:
Receivables and unbilled revenue	(13,352)	(18,412)
Accounts payable	8,940	7,245
Other current assets	(1,743)	(2,428)
Other current liabilities	13,982	11,939
Other changes in noncurrent assets and liabilities	33,749	33,476
Net cash provided by operating activities	123,192	116,524
Investing activities:
Utility plant expenditures	(166,406)	(118,309)
Life insurance proceeds	495	0
Purchase of life insurance contracts	(2,710)	(1,855)
Change in restricted cash	(685)	(241)
Net cash used in investing activities	(169,306)	(120,405)
Financing activities:
Short-term borrowings	105,100	82,500
Repayment of short-term borrowings	(81,615)	(25,000)
Proceeds from long-term debt, net of issuance costs of $177 for 2016, $0 for 2015	49,823	50
Short-term borrowings issuance costs	0	(1,197)
Repayment of long-term debt	(2,865)	(2,878)
Advances and contributions in aid of construction	18,186	10,741
Refunds of advances for construction	(5,194)	(5,050)
Dividends paid	(24,807)	(24,047)
Net cash provided by financing activities	58,628	35,119
Change in cash and cash equivalents	12,514	31,238
Cash and cash equivalents at beginning of period	8,837	19,587
Cash and cash equivalents at end of period	21,351	50,825
Supplemental information:
Cash paid for interest (net of amounts capitalized)	13,889	13,618
Supplemental disclosure of non-cash activities:
Accrued payables for investments in utility plant	26,767	24,856
Utility plant contribution by developers	$ 12,104	$ 5,573

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited Unaudited (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Statement of Cash Flows [Abstract]
Payments of debt issuance expense	$ 177	$ 0

Organization and Operations and

Organization and Operations and Basis of Presentation	9 Months Ended
Organization and Operations and Basis of Presentation	Sep. 30, 2016
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 condensed consolidated 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 unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2015 , included in its annual report on Form 10-K as filed with the SEC on February 25, 2016. The preparation of the Company’s unaudited condensed consolidated 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 unaudited condensed consolidated 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
Summary of Significant Accounting Policies	Sep. 30, 2016
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 regulatory commissions (plus an estimate 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 wastewater revenue requirements are authorized by the Commissions in the states in which they operate. The revenue requirements are intended to provide the Company a reasonable opportunity to recover its operating costs and earn a 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 investments, 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 recovered from or refunded to customers in the future. Cost-recovery rates are designed to permit full recovery of certain costs allowed to be recovered by the Commissions. 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 operating expenses adopted by the CPUC. Variances (which include the effects of changes in both rates and volumes 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 customers in the future. Cost-recovery expenses are generally recognized when expenses are incurred with no markup for return on investments or profit. 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 recovery or refund of WRAM is netted against the recovery or refund of MCBA for the corresponding district. The recovery or refund of net WRAM and MCBA balances are 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. Undercollected net WRAM and MCBA receivable balances are collected over 12 , 18 , or 20 + 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 customer 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 the net receivable balances are estimated to be collected within 24 months of the respective reporting period. Customer meter reads occur on various business days throughout the month. As a result, there is unmetered or unbilled customer usage each month. The estimated unbilled revenue for monthly unmetered customer usage is recorded using the number of unbilled days for that month and average daily customer billing rate for the previous month. The average daily customer billing rate for the previous month fluctuates depending on customer usage. Estimated unbilled revenue is not included in the WRAM until it is billed. 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 $0.9 million and $1.3 million as of September 30, 2016 and December 31, 2015 , 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 $21.4 million and $8.8 million as of September 30, 2016 and December 31, 2015 , respectively. Restricted cash was presented on the condensed consolidated balance sheet in “taxes, prepaid expenses and other assets” and was $1.2 million and $0.5 million as of September 30, 2016 and December 31, 2015 , respectively. Adoption of New Accounting Standards In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which amends the existing guidance relating to the presentation of debt issuance costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company adopted this guidance effective January 1, 2016 and applied the requirements retrospectively for all periods presented. The adoption of this guidance did not have a material impact on the Company's condensed consolidated financial statements. The long term debt unamortized debt issuance costs were $4.6 million as of September 30, 2016 and $4.8 million as December 31, 2015. The following table shows the effect of the accounting change to the condensed consolidated balance sheet as of December 31, 2015: December 31, 2015 Balance Sheet Classification As Reported on Form 10-K Adjusted Balance on Form 10-Q Decrease from Retrospective Adoption Other Assets $ 52,241 $ 47,399 $ 4,842 Long-term debt, less current maturities 512,287 508,002 4,285 Current maturities of long-term debt 6,600 6,043 557 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which amends the existing revenue recognition guidance . In August 2015, the FASB deferred 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. (See ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date .) The Company expects to adopt the new revenue standard using the modified retrospective method and is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases . This update changes the accounting treatment of operating leases for lessees and related disclosure requirements. ASU 2016-2 is effective for annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the impact of adopting the new lease standard on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The amendments in ASU 2016-09 involve multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the Statement of Cash Flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and early adoption is permitted. The Company is currently evaluating the impact on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . This update adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. ASU 2016-15 is effective for annual periods beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating the impact on its consolidated financial statements and related disclosures.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
Stock-based Compensation	Sep. 30, 2016
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, 2016 and 2015, the Company granted annual Restricted Stock Awards (RSAs) of 72,317 and 60,997 , respectively, to officers and directors of the Company. During those same periods, 13,319 and 15,780 RSAs were canceled, respectively. During the three months ended September 30, 2016 and 2015, no RSAs were granted and 2,719 and 2,560 RSAs were canceled, respectively. Employee RSAs granted in 2016 and 2015 vest over 36 months. Director RSAs generally vest at the end of 12 months . During the first nine months of 2016 and 2015, the RSAs granted were valued at $25.17 and $24.29 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, 2016 and 2015, the Company granted 43,659 and 38,983 performance-based Restricted Stock Unit Awards (RSUs), respectively, to officers. During those same periods, the Company issued 28,424 and 0 RSUs, respectively, and no RSUs were canceled. During the three months ended September 30, 2016 and 2015, the Company did not grant, issue or cancel any RSUs. Each RSU award reflects a target number of shares that may be issued to the award recipient. The 2016 and 2015 awards may be earned upon the completion of the three year performance period ending on March 1, 2019 and March 3, 2018, respectively. The 2016 and 2015 RSUs are recognized as expense ratably over the 3 year performance period using a fair market value of $25.17 per share and $24.28 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 $2.1 million and $2.0 million for the nine months ended September 30, 2016 and September 30, 2015 respectively.

Equity

Equity	9 Months Ended
Equity	Sep. 30, 2016
Equity [Abstract]
Equity	Equity The Company’s changes in total common stockholders’ equity for the nine months ended September 30, 2016 were as follows: Total Common Stockholders’ Equity Balance at December 31, 2015 $ 642,155 Common stock issued 1 Share-based compensation expense 1,078 Common stock dividends declared (24,807 ) Net income 33,585 Balance at September 30, 2016 $ 652,012

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The computations of basic and diluted earnings per share are noted below. Basic earnings 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 earnings 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. RSUs are not included in diluted shares for financial reporting until authorized by the Compensation & Organization Committee of the Board of Directors. There were no shares of Stock Appreciation Rights (SARs) outstanding as of September 30, 2016, and a total of 65,436 shares of SARs were vested and outstanding as of September 30, 2015. All the SARs were dilutive when they were outstanding during the period, as shown in the tables below. Three Months Ended September 30 2016 2015 (In thousands, except per share data) Net income available to common stockholders $ 22,875 $ 25,120 Weighted average common shares outstanding, basic 47,969 47,878 Dilutive SARs (treasury method) 9 Weighted average common shares outstanding, dilutive 47,969 47,887 Earnings per share - basic $ 0.48 $ 0.52 Earnings per share - diluted $ 0.48 $ 0.52 Nine Months Ended September 30 2016 2015 (In thousands, except per share data) Net income available to common stockholders $ 33,585 $ 36,540 Weighted average common shares outstanding, basic 47,949 47,861 Dilutive SARs (treasury method) 3 16 Weighted average common shares outstanding, dilutive 47,952 47,877 Earnings per share - basic $ 0.70 $ 0.76 Earnings per share - diluted $ 0.70 $ 0.76

Pension Plan and Other Postreti

Pension Plan and Other Postretirement Benefits	9 Months Ended
Pension Plan and Other Postretirement Benefits	Sep. 30, 2016
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 $20.6 million and $22.7 million for the nine months ended September 30, 2016 and September 30, 2015, respectively. Cash contributions by the Company related to other postretirement benefit plans were $6.7 million and $7.5 million for the nine months ended September 30, 2016 and September 30, 2015, respectively. The 2016 estimated cash contribution to the pension plans is $28.3 million and to the other postretirement benefit plans is $9.6 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 2016 2015 2016 2015 Service cost $ 5,594 $ 4,715 $ 1,045 $ 3,043 Interest cost 5,764 5,072 625 2,101 Expected return on plan assets (5,462 ) (4,770 ) (1,005 ) (908 ) Amortization of prior service cost 1,555 1,502 10 12 Recognized net actuarial loss 1,743 2,308 (482 ) 2,182 Net periodic benefit cost $ 9,194 $ 8,827 $ 193 $ 6,430 Nine Months Ended September 30 Pension Plan Other Benefits 2016 2015 2016 2015 Service cost $ 15,728 $ 15,980 $ 5,653 $ 8,044 Interest cost 16,670 15,078 4,225 5,328 Expected return on plan assets (16,370 ) (14,354 ) (3,097 ) (2,660 ) Amortization of prior service cost 4,664 4,506 32 34 Recognized net actuarial loss 4,329 7,108 2,041 5,099 Net periodic benefit cost $ 25,021 $ 28,318 $ 8,854 $ 15,845 The actuarially determined decrease in other benefits costs in the third quarter of 2016 as compared to the prior year was $6.2 million and for the nine months ended September 30, 2016 as compared to the prior year was $7.0 million . The cost decrease was mostly due to a reduction in retiree medical claim costs in 2015.

Short-term and Long-term Borrow

Short-term and Long-term Borrowings	9 Months Ended
Short-term and Long-term Borrowings	Sep. 30, 2016
Debt Disclosure [Abstract]
Short-term and Long-term Borrowings	Short-term and Long-term Borrowings 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 issued $100.0 million of 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. In March 2016, Cal Water issued the remaining $50.0 million of First Mortgage Bonds, consisting of $40.0 million of 4.41% series SSS maturing April 16, 2046 and $10.0 million of 4.61% series TTT maturing April 14, 2056. Cash proceeds of approximately $49.7 million , net of $0.3 million debt issuance costs, were received. Cal Water used a portion of the net proceeds from the offering to repay outstanding borrowings on the Company and Cal Water lines of credit of $48.6 million . 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 $57.1 million and $33.6 million as of September 30, 2016 and December 31, 2015, respectively. There were no borrowings on the Cal Water lines of credit as September 30, 2016 and December 31, 2015. The average borrowing rate for borrowings on the Company and Cal Water lines of credit during the nine months ended September 30, 2016 was 1.30% compared to 1.05% for the same period last year.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes As of September 30, 2016 and December 31, 2015, the Company had unrecognized tax benefits of approximately $10.4 million and $10.3 million , respectively. Included in the balance of unrecognized tax benefits as of September 30, 2016 and December 31, 2015 is approximately $2.3 million and $2.1 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 12 months. The Company’s fiscal year 2016 effective tax rate is estimated to be 38% .

Regulatory Assets and Liabiliti

Regulatory Assets and Liabilities	9 Months Ended
Regulatory Assets and Liabilities	Sep. 30, 2016
Regulated Operations [Abstract]
Regulatory Assets and Liabilities	Regulatory Assets and Liabilities Regulatory assets and liabilities were comprised of the following as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 Regulatory Assets Pension and retiree group health $ 205,120 $ 205,614 Property-related temporary differences (tax benefits flowed through to customers) 81,522 81,522 Other accrued benefits 28,917 27,327 Net WRAM and MCBA long-term accounts receivable 16,626 15,410 Asset retirement obligations, net 15,660 14,682 Interim rates long-term accounts receivable 4,640 5,238 Tank coating 8,594 6,829 Health care balancing account 776 3,503 Other regulatory assets 1,742 1,768 Total Regulatory Assets $ 363,597 $ 361,893 Regulatory Liabilities Future tax benefits due to customers $ 29,505 $ 29,505 Conservation program 3,574 2,317 Pension balancing account 2,986 792 Net WRAM and MCBA long-term payable 2,260 488 Other regulatory liabilities 3,581 2,162 Total Regulatory Liabilities $ 41,906 $ 35,264 Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets were $19.8 million as of September 30, 2016 and $35.1 million as of December 31, 2015 . The short-term regulatory assets were primarily interim rate memorandum account receivable and net WRAM and MCBA accounts receivable as of September 30, 2016 and December 31, 2015 . The short-term portions of regulatory liabilities were $2.8 million as of September 30, 2016 and $2.2 million as of December 31, 2015 . The short-term regulatory liabilities were primarily short term net WRAM payables as of September 30, 2016 . The short-term regulatory liabilities 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, 2015 .

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
Commitment and Contingencies	Sep. 30, 2016
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, 2015. As of September 30, 2016, there were no significant changes from December 31, 2015. 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 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. As of September 30, 2016 and December 31, 2015, the Company recognized a liability of $4.1 million and $3.5 million , respectively, for known legal matters. 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. On July 21, 2016, the San Francisco Bay Area Regional Water Quality Control Board (the Water Control Board) approved a settlement between Cal Water and the Water Control Board and California Department of Fish and Wildlife (Fish and Wildlife) to resolve purported complaints from the Water Control Board and Fish and Wildlife alleging Cal Water discharged approximately 8,207,560 gallons of drinking water into Polhemus Creek that was caused by an undetected crack in a large water main located 10 feet below ground in a remote area. The water was disinfected as required to meet all federal and state water quality standards and make it safe for human consumption. Drinking water, however, can be harmful to fish and the environment. As part of the settlement, Cal Water will replace 2,000 feet of 18-inch cast iron water main with new ductile iron main along Polhemus Road and Polhemus Creek in San Mateo. Cal Water will also conduct a streambed restoration project in San Mateo Creek to improve conditions in the creek for native fish. This work will be performed in coordination with the California Department of Fish and Wildlife. In addition to investing in these improvement projects and as required by the settlement Cal Water paid $0.5 million to the Water Control Board and $0.02 million to Fish and Wildlife during the third quarter of 2016. Under the terms of the settlement, Cal Water will be released from all claims unless it fails to complete the projects. The agreement contains no admission of wrongdoing.

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	9 Months Ended
Fair Value of Financial Assets and Liabilities	Sep. 30, 2016
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 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access. Level 2 - Inputs to the valuation methodology include: • Quoted market prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Specific valuation methods include the following: 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 1.70% . Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. September 30, 2016 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 561,666 — $ 679,712 — $ 679,712 Advances for construction 182,001 — 74,440 — 74,440 Total $ 743,667 $ — $ 754,152 $ — $ 754,152 December 31, 2015 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 514,045 $ — $ 600,440 $ — $ 600,440 Advances for construction 180,172 — 72,866 — 72,866 Total $ 694,217 — $ 673,306 $ — $ 673,306

Condensed Consolidating Financi

Condensed Consolidating Financial Statements	9 Months Ended
Condensed Consolidating Financial Statements	Sep. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Consolidating Financial Statements	Condensed Consolidating Financial Statements On April 17, 2009, Cal Water issued $100.0 million aggregate principal amount of 5.875% First Mortgage Bonds due 2019, and on November 17, 2010, Cal Water issued $100.0 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, 2016 and December 31, 2015, the condensed consolidating statements of income for the three months ended September 30, 2016 and 2015, condensed consolidating statements of income for the nine months ended September 30, 2016 and 2015, and the condensed consolidating statements of cash flows for the nine months ended September 30, 2016 and 2015 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. No other subsidiary of the Company guarantees the securities. The condensed consolidating balance sheet as of December 31, 2015 reflects the retrospective adoption of ASU 2015-03 (refer to Note 2. Summary of Significant Accounting Policies for more details). CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,317 $ 2,471,314 $ 202,200 $ (7,196 ) $ 2,667,635 Less accumulated depreciation and amortization (776 ) (799,057 ) (51,946 ) 1,895 (849,884 ) Net utility plant 541 1,672,257 150,254 (5,301 ) 1,817,751 Current assets: Cash and cash equivalents 1,987 13,928 5,436 — 21,351 Receivables and unbilled revenue — 107,535 5,578 — 113,113 Receivables from affiliates 23,313 300 246 (23,859 ) — Other current assets 179 15,449 1,035 — 16,663 Total current assets 25,479 137,212 12,295 (23,859 ) 151,127 Other assets: Regulatory assets — 359,926 3,671 — 363,597 Investments in affiliates 659,828 — — (659,828 ) — Long-term affiliate notes receivable 24,206 — — (24,206 ) — Other assets 1,103 49,482 3,188 (205 ) 53,568 Total other assets 685,137 409,408 6,859 (684,239 ) 417,165 TOTAL ASSETS $ 711,157 $ 2,218,877 $ 169,408 $ (713,399 ) $ 2,386,043 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 652,012 $ 588,183 $ 76,970 $ (665,153 ) $ 652,012 Affiliate long-term debt — — 24,206 (24,206 ) — Long-term debt, less current maturities — 554,748 788 — 555,536 Total capitalization 652,012 1,142,931 101,964 (689,359 ) 1,207,548 Current liabilities: Current maturities of long-term debt — 5,661 469 — 6,130 Short-term borrowings 57,100 — — — 57,100 Payables to affiliates — 2,034 21,825 (23,859 ) — Accounts payable — 81,161 2,891 — 84,052 Accrued expenses and other liabilities 2,045 58,141 (3,540 ) 53 56,699 Total current liabilities 59,145 146,997 21,645 (23,806 ) 203,981 Unamortized investment tax credits — 1,872 — — 1,872 Deferred income taxes — 275,596 7,613 (236 ) 282,973 Pension and postretirement benefits other than pensions — 237,341 — — 237,341 Regulatory liabilities and other — 87,633 3,081 — 90,714 Advances for construction — 181,454 547 — 182,001 Contributions in aid of construction — 145,053 34,560 — 179,613 TOTAL CAPITALIZATION AND LIABILITIES $ 711,157 $ 2,218,877 $ 169,410 $ (713,401 ) $ 2,386,043 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2015 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 2,313,704 $ 199,121 $ (7,197 ) $ 2,506,946 Less accumulated depreciation and amortization (605 ) (758,362 ) (48,034 ) 1,823 (805,178 ) Net utility plant 713 1,555,342 151,087 (5,374 ) 1,701,768 Current assets: Cash and cash equivalents 582 4,270 3,985 — 8,837 Receivables and unbilled revenue — 100,777 3,728 — 104,505 Receivables from affiliates 19,677 26,219 — (45,896 ) — Other current assets 79 13,077 1,080 — 14,236 Total current assets 20,338 144,343 8,793 (45,896 ) 127,578 Other assets: Regulatory assets — 358,254 3,639 — 361,893 Investments in affiliates 651,449 — — (651,449 ) — Long-term affiliate notes receivable 25,099 — — (25,099 ) — Other assets 758 45,544 4,616 (904 ) 50,014 Total other assets 677,306 403,798 8,255 (677,452 ) 411,907 TOTAL ASSETS $ 698,357 $ 2,103,483 $ 168,135 $ (728,722 ) $ 2,241,253 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 642,155 $ 581,792 75,024 $ (656,816 ) $ 642,155 Affiliate long-term debt — — 25,099 (25,099 ) — Long-term debt, less current maturities — 507,034 968 — 508,002 Total capitalization 642,155 1,088,826 101,091 (681,915 ) 1,150,157 Current liabilities: Current maturities of long-term debt — 5,654 389 — 6,043 Short-term borrowings 33,615 — — — 33,615 Payables to affiliates 21,500 667 23,729 (45,896 ) — Accounts payable — 63,814 2,566 — 66,380 Accrued expenses and other liabilities 102 40,173 1,585 — 41,860 Total current liabilities 55,217 110,308 28,269 (45,896 ) 147,898 Unamortized investment tax credits — 1,872 — — 1,872 Deferred income taxes 985 264,823 — (911 ) 264,897 Pension and postretirement benefits other than pensions — 236,266 — — 236,266 Regulatory and other liabilities — 79,477 2,937 — 82,414 Advances for construction — 179,630 542 — 180,172 Contributions in aid of construction — 142,281 35,296 — 177,577 TOTAL CAPITALIZATION AND LIABILITIES $ 698,357 $ 2,103,483 $ 168,135 $ (728,722 ) $ 2,241,253 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended September 30, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 173,223 $ 11,045 $ — $ 184,268 Operating expenses: Operations: Water production costs — 68,045 2,130 — 70,175 Administrative and general — 21,679 2,165 — 23,844 Other operations — 18,037 1,692 (168 ) 19,561 Maintenance — 5,322 223 — 5,545 Depreciation and amortization 57 14,777 1,074 (24 ) 15,884 Income tax (benefit) expense (105 ) 12,165 920 267 13,247 Property and other taxes — 5,182 775 — 5,957 Total operating (income) expenses (48 ) 145,207 8,979 75 154,213 Net operating income 48 28,016 2,066 (75 ) 30,055 Other income and expenses: Non-regulated revenue 464 3,024 541 (632 ) 3,397 Non-regulated expenses — (2,170 ) (347 ) — (2,517 ) Income tax expense on other income and expenses (189 ) (345 ) (73 ) 258 (349 ) Total other income 275 509 121 (374 ) 531 Interest: Interest expense 201 8,259 488 (463 ) 8,485 Less: capitalized interest — (759 ) (15 ) — (774 ) Net interest expense 201 7,500 473 (463 ) 7,711 Equity earnings of subsidiaries 22,753 — — (22,753 ) — Net income $ 22,875 $ 21,025 $ 1,714 $ (22,739 ) $ 22,875 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 expenses (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 nine months ended September 30, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 428,592 $ 29,848 $ — $ 458,440 Operating expenses: Operations: Water production costs — 162,933 5,900 — 168,833 Administrative and general — 67,289 7,748 — 75,037 Other operations — 53,128 5,016 (378 ) 57,766 Maintenance — 16,854 688 — 17,542 Depreciation and amortization 171 44,427 3,246 (72 ) 47,772 Income tax (benefit) expense (292 ) 17,356 1,366 762 19,192 Property and other taxes — 15,241 2,198 — 17,439 Total operating (income) expenses (121 ) 377,228 26,162 312 403,581 Net operating income 121 51,364 3,686 (312 ) 54,859 Other income and expenses: Non-regulated revenue 1,390 9,659 1,338 (1,798 ) 10,589 Non-regulated expenses — (7,422 ) (884 ) — (8,306 ) Income tax expense on other income and expenses (566 ) (909 ) (172 ) 733 (914 ) Net other income 824 1,328 282 (1,065 ) 1,369 Interest: Interest expense 547 24,421 1,435 (1,419 ) 24,984 Less: capitalized interest — (2,293 ) (48 ) — (2,341 ) Net interest expense 547 22,128 1,387 (1,419 ) 22,643 Equity earnings of subsidiaries 33,187 — — (33,187 ) — Net income $ 33,585 $ 30,564 $ 2,581 $ (33,145 ) $ 33,585 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 expenses (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 CASH FLOWS For the nine months ended September 30, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 33,585 $ 30,564 $ 2,581 $ (33,145 ) $ 33,585 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (33,187 ) — — 33,187 — Dividends received from affiliates 24,807 — — (24,807 ) — Depreciation and amortization 171 45,466 3,381 (72 ) 48,946 Changes in value of life insurance contracts — (915 ) — — (915 ) Changes in operating assets and liabilities 1,844 12,552 (6,623 ) 54 7,827 Other changes in noncurrent assets and liabilities (250 ) 24,726 9,297 (24 ) 33,749 Net cash provided by operating activities 26,970 112,393 8,636 (24,807 ) 123,192 Investing activities: Utility plant expenditures — (163,179 ) (3,227 ) — (166,406 ) Changes in affiliate advances (957 ) 4,419 (319 ) (3,143 ) — Reduction of affiliate short-term borrowings 2,000 42,100 — (44,100 ) — Issuance of affiliate short-term borrowings (4,615 ) (20,600 ) — 25,215 — Reduction of affiliates long-term debt 829 — — (829 ) — Life insurance proceeds — 495 — — 495 Purchase of life insurance contracts — (2,710 ) — — (2,710 ) Changes in restricted cash — (685 ) — — (685 ) Net cash used in investing activities (2,743 ) (140,160 ) (3,546 ) (22,857 ) (169,306 ) Financing Activities: Short-term borrowings 44,100 61,000 — — 105,100 Repayment of short-term borrowings (20,615 ) (61,000 ) — — (81,615 ) Changes in affiliate advances — 1,367 (4,510 ) 3,143 — Proceeds from affiliate short-term borrowings 20,600 — 4,615 (25,215 ) — Repayment of affiliate short-term borrowings (42,100 ) — (2,000 ) 44,100 — Repayment of affiliates long-term borrowings — — (829 ) 829 — Proceeds from long-term debt, net of issuance costs — 49,823 — — 49,823 Repayment of long-term debt — (2,516 ) (349 ) — (2,865 ) Advances and contributions in aid of construction — 18,096 90 — 18,186 Refunds of advances for construction — (5,172 ) (22 ) — (5,194 ) Dividends paid to non-affiliates — (24,173 ) (634 ) — (24,807 ) Dividends paid to affiliates (24,807 ) — — 24,807 — Net cash (used in) provided by financing activities (22,822 ) 37,425 (3,639 ) 47,664 58,628 Change in cash and cash equivalents 1,405 9,658 1,451 — 12,514 Cash and cash equivalents at beginning of period 582 4,270 3,985 — 8,837 Cash and cash equivalents at end of period $ 1,987 $ 13,928 $ 5,436 $ — $ 21,351 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 Change 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 of 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

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2016
Accounting Policies [Abstract]
Revenue	Revenue Revenue generally includes monthly cycle customer billings for regulated water and wastewater services at rates authorized by regulatory commissions (plus an estimate 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 wastewater revenue requirements are authorized by the Commissions in the states in which they operate. The revenue requirements are intended to provide the Company a reasonable opportunity to recover its operating costs and earn a 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 investments, 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 recovered from or refunded to customers in the future. Cost-recovery rates are designed to permit full recovery of certain costs allowed to be recovered by the Commissions. 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 operating expenses adopted by the CPUC. Variances (which include the effects of changes in both rates and volumes 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 customers in the future. Cost-recovery expenses are generally recognized when expenses are incurred with no markup for return on investments or profit. 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 recovery or refund of WRAM is netted against the recovery or refund of MCBA for the corresponding district. The recovery or refund of net WRAM and MCBA balances are 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. Undercollected net WRAM and MCBA receivable balances are collected over 12 , 18 , or 20 + 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 customer 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 the net receivable balances are estimated to be collected within 24 months of the respective reporting period. Customer meter reads occur on various business days throughout the month. As a result, there is unmetered or unbilled customer usage each month. The estimated unbilled revenue for monthly unmetered customer usage is recorded using the number of unbilled days for that month and average daily customer billing rate for the previous month. The average daily customer billing rate for the previous month fluctuates depending on customer usage. Estimated unbilled revenue is not included in the WRAM until it is billed. 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 $0.9 million and $1.3 million as of September 30, 2016 and December 31, 2015 , 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 $21.4 million and $8.8 million as of September 30, 2016 and December 31, 2015 , respectively. Restricted cash was presented on the condensed consolidated balance sheet in “taxes, prepaid expenses and other assets” and was $1.2 million and $0.5 million as of September 30, 2016 and December 31, 2015 , respectively.
Adoption of New Accounting Standards	Adoption of New Accounting Standards In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which amends the existing guidance relating to the presentation of debt issuance costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company adopted this guidance effective January 1, 2016 and applied the requirements retrospectively for all periods presented. The adoption of this guidance did not have a material impact on the Company's condensed consolidated financial statements. The long term debt unamortized debt issuance costs were $4.6 million as of September 30, 2016 and $4.8 million as December 31, 2015. The following table shows the effect of the accounting change to the condensed consolidated balance sheet as of December 31, 2015: December 31, 2015 Balance Sheet Classification As Reported on Form 10-K Adjusted Balance on Form 10-Q Decrease from Retrospective Adoption Other Assets $ 52,241 $ 47,399 $ 4,842 Long-term debt, less current maturities 512,287 508,002 4,285 Current maturities of long-term debt 6,600 6,043 557 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which amends the existing revenue recognition guidance . In August 2015, the FASB deferred 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. (See ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date .) The Company expects to adopt the new revenue standard using the modified retrospective method and is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases . This update changes the accounting treatment of operating leases for lessees and related disclosure requirements. ASU 2016-2 is effective for annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the impact of adopting the new lease standard on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The amendments in ASU 2016-09 involve multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the Statement of Cash Flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and early adoption is permitted. The Company is currently evaluating the impact on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . This update adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. ASU 2016-15 is effective for annual periods beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating the impact on its consolidated financial statements and related disclosures.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Tables)	9 Months Ended
Summary of Significant Accounting Policies (Tables)	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule of Effect of Accounting Changes	The long term debt unamortized debt issuance costs were $4.6 million as of September 30, 2016 and $4.8 million as December 31, 2015. The following table shows the effect of the accounting change to the condensed consolidated balance sheet as of December 31, 2015: December 31, 2015 Balance Sheet Classification As Reported on Form 10-K Adjusted Balance on Form 10-Q Decrease from Retrospective Adoption Other Assets $ 52,241 $ 47,399 $ 4,842 Long-term debt, less current maturities 512,287 508,002 4,285 Current maturities of long-term debt 6,600 6,043 557

Equity (Tables)

Equity (Tables)	9 Months Ended
Equity (Tables)	Sep. 30, 2016
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, 2016 were as follows: Total Common Stockholders’ Equity Balance at December 31, 2015 $ 642,155 Common stock issued 1 Share-based compensation expense 1,078 Common stock dividends declared (24,807 ) Net income 33,585 Balance at September 30, 2016 $ 652,012

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of SARs which were dilutive	All the SARs were dilutive when they were outstanding during the period, as shown in the tables below. Three Months Ended September 30 2016 2015 (In thousands, except per share data) Net income available to common stockholders $ 22,875 $ 25,120 Weighted average common shares outstanding, basic 47,969 47,878 Dilutive SARs (treasury method) 9 Weighted average common shares outstanding, dilutive 47,969 47,887 Earnings per share - basic $ 0.48 $ 0.52 Earnings per share - diluted $ 0.48 $ 0.52 Nine Months Ended September 30 2016 2015 (In thousands, except per share data) Net income available to common stockholders $ 33,585 $ 36,540 Weighted average common shares outstanding, basic 47,949 47,861 Dilutive SARs (treasury method) 3 16 Weighted average common shares outstanding, dilutive 47,952 47,877 Earnings per share - basic $ 0.70 $ 0.76 Earnings per share - diluted $ 0.70 $ 0.76

Pension Plan and Other Postre23

Pension Plan and Other Postretirement Benefits (Tables)	9 Months Ended
Pension Plan and Other Postretirement Benefits (Tables)	Sep. 30, 2016
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 2016 2015 2016 2015 Service cost $ 5,594 $ 4,715 $ 1,045 $ 3,043 Interest cost 5,764 5,072 625 2,101 Expected return on plan assets (5,462 ) (4,770 ) (1,005 ) (908 ) Amortization of prior service cost 1,555 1,502 10 12 Recognized net actuarial loss 1,743 2,308 (482 ) 2,182 Net periodic benefit cost $ 9,194 $ 8,827 $ 193 $ 6,430 Nine Months Ended September 30 Pension Plan Other Benefits 2016 2015 2016 2015 Service cost $ 15,728 $ 15,980 $ 5,653 $ 8,044 Interest cost 16,670 15,078 4,225 5,328 Expected return on plan assets (16,370 ) (14,354 ) (3,097 ) (2,660 ) Amortization of prior service cost 4,664 4,506 32 34 Recognized net actuarial loss 4,329 7,108 2,041 5,099 Net periodic benefit cost $ 25,021 $ 28,318 $ 8,854 $ 15,845

Regulatory Assets and Liabili24

Regulatory Assets and Liabilities (Tables)	9 Months Ended
Regulatory Assets and Liabilities (Tables)	Sep. 30, 2016
Regulated Operations [Abstract]
Schedule of regulatory assets and liabilities	Regulatory assets and liabilities were comprised of the following as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 Regulatory Assets Pension and retiree group health $ 205,120 $ 205,614 Property-related temporary differences (tax benefits flowed through to customers) 81,522 81,522 Other accrued benefits 28,917 27,327 Net WRAM and MCBA long-term accounts receivable 16,626 15,410 Asset retirement obligations, net 15,660 14,682 Interim rates long-term accounts receivable 4,640 5,238 Tank coating 8,594 6,829 Health care balancing account 776 3,503 Other regulatory assets 1,742 1,768 Total Regulatory Assets $ 363,597 $ 361,893 Regulatory Liabilities Future tax benefits due to customers $ 29,505 $ 29,505 Conservation program 3,574 2,317 Pension balancing account 2,986 792 Net WRAM and MCBA long-term payable 2,260 488 Other regulatory liabilities 3,581 2,162 Total Regulatory Liabilities $ 41,906 $ 35,264

Fair Value of Financial Asset25

Fair Value of Financial Assets and Liabilities (Tables)	9 Months Ended
Fair Value of Financial Assets and Liabilities (Tables)	Sep. 30, 2016
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, 2016 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 561,666 — $ 679,712 — $ 679,712 Advances for construction 182,001 — 74,440 — 74,440 Total $ 743,667 $ — $ 754,152 $ — $ 754,152 December 31, 2015 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 514,045 $ — $ 600,440 $ — $ 600,440 Advances for construction 180,172 — 72,866 — 72,866 Total $ 694,217 — $ 673,306 $ — $ 673,306

Condensed Consolidating Finan26

Condensed Consolidating Financial Statements (Tables)	9 Months Ended
Condensed Consolidating Financial Statements (Tables)	Sep. 30, 2016
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, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,317 $ 2,471,314 $ 202,200 $ (7,196 ) $ 2,667,635 Less accumulated depreciation and amortization (776 ) (799,057 ) (51,946 ) 1,895 (849,884 ) Net utility plant 541 1,672,257 150,254 (5,301 ) 1,817,751 Current assets: Cash and cash equivalents 1,987 13,928 5,436 — 21,351 Receivables and unbilled revenue — 107,535 5,578 — 113,113 Receivables from affiliates 23,313 300 246 (23,859 ) — Other current assets 179 15,449 1,035 — 16,663 Total current assets 25,479 137,212 12,295 (23,859 ) 151,127 Other assets: Regulatory assets — 359,926 3,671 — 363,597 Investments in affiliates 659,828 — — (659,828 ) — Long-term affiliate notes receivable 24,206 — — (24,206 ) — Other assets 1,103 49,482 3,188 (205 ) 53,568 Total other assets 685,137 409,408 6,859 (684,239 ) 417,165 TOTAL ASSETS $ 711,157 $ 2,218,877 $ 169,408 $ (713,399 ) $ 2,386,043 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 652,012 $ 588,183 $ 76,970 $ (665,153 ) $ 652,012 Affiliate long-term debt — — 24,206 (24,206 ) — Long-term debt, less current maturities — 554,748 788 — 555,536 Total capitalization 652,012 1,142,931 101,964 (689,359 ) 1,207,548 Current liabilities: Current maturities of long-term debt — 5,661 469 — 6,130 Short-term borrowings 57,100 — — — 57,100 Payables to affiliates — 2,034 21,825 (23,859 ) — Accounts payable — 81,161 2,891 — 84,052 Accrued expenses and other liabilities 2,045 58,141 (3,540 ) 53 56,699 Total current liabilities 59,145 146,997 21,645 (23,806 ) 203,981 Unamortized investment tax credits — 1,872 — — 1,872 Deferred income taxes — 275,596 7,613 (236 ) 282,973 Pension and postretirement benefits other than pensions — 237,341 — — 237,341 Regulatory liabilities and other — 87,633 3,081 — 90,714 Advances for construction — 181,454 547 — 182,001 Contributions in aid of construction — 145,053 34,560 — 179,613 TOTAL CAPITALIZATION AND LIABILITIES $ 711,157 $ 2,218,877 $ 169,410 $ (713,401 ) $ 2,386,043 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2015 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 2,313,704 $ 199,121 $ (7,197 ) $ 2,506,946 Less accumulated depreciation and amortization (605 ) (758,362 ) (48,034 ) 1,823 (805,178 ) Net utility plant 713 1,555,342 151,087 (5,374 ) 1,701,768 Current assets: Cash and cash equivalents 582 4,270 3,985 — 8,837 Receivables and unbilled revenue — 100,777 3,728 — 104,505 Receivables from affiliates 19,677 26,219 — (45,896 ) — Other current assets 79 13,077 1,080 — 14,236 Total current assets 20,338 144,343 8,793 (45,896 ) 127,578 Other assets: Regulatory assets — 358,254 3,639 — 361,893 Investments in affiliates 651,449 — — (651,449 ) — Long-term affiliate notes receivable 25,099 — — (25,099 ) — Other assets 758 45,544 4,616 (904 ) 50,014 Total other assets 677,306 403,798 8,255 (677,452 ) 411,907 TOTAL ASSETS $ 698,357 $ 2,103,483 $ 168,135 $ (728,722 ) $ 2,241,253 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 642,155 $ 581,792 75,024 $ (656,816 ) $ 642,155 Affiliate long-term debt — — 25,099 (25,099 ) — Long-term debt, less current maturities — 507,034 968 — 508,002 Total capitalization 642,155 1,088,826 101,091 (681,915 ) 1,150,157 Current liabilities: Current maturities of long-term debt — 5,654 389 — 6,043 Short-term borrowings 33,615 — — — 33,615 Payables to affiliates 21,500 667 23,729 (45,896 ) — Accounts payable — 63,814 2,566 — 66,380 Accrued expenses and other liabilities 102 40,173 1,585 — 41,860 Total current liabilities 55,217 110,308 28,269 (45,896 ) 147,898 Unamortized investment tax credits — 1,872 — — 1,872 Deferred income taxes 985 264,823 — (911 ) 264,897 Pension and postretirement benefits other than pensions — 236,266 — — 236,266 Regulatory and other liabilities — 79,477 2,937 — 82,414 Advances for construction — 179,630 542 — 180,172 Contributions in aid of construction — 142,281 35,296 — 177,577 TOTAL CAPITALIZATION AND LIABILITIES $ 698,357 $ 2,103,483 $ 168,135 $ (728,722 ) $ 2,241,253
Schedule of Condensed Consolidating Statement of Income	CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended September 30, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 173,223 $ 11,045 $ — $ 184,268 Operating expenses: Operations: Water production costs — 68,045 2,130 — 70,175 Administrative and general — 21,679 2,165 — 23,844 Other operations — 18,037 1,692 (168 ) 19,561 Maintenance — 5,322 223 — 5,545 Depreciation and amortization 57 14,777 1,074 (24 ) 15,884 Income tax (benefit) expense (105 ) 12,165 920 267 13,247 Property and other taxes — 5,182 775 — 5,957 Total operating (income) expenses (48 ) 145,207 8,979 75 154,213 Net operating income 48 28,016 2,066 (75 ) 30,055 Other income and expenses: Non-regulated revenue 464 3,024 541 (632 ) 3,397 Non-regulated expenses — (2,170 ) (347 ) — (2,517 ) Income tax expense on other income and expenses (189 ) (345 ) (73 ) 258 (349 ) Total other income 275 509 121 (374 ) 531 Interest: Interest expense 201 8,259 488 (463 ) 8,485 Less: capitalized interest — (759 ) (15 ) — (774 ) Net interest expense 201 7,500 473 (463 ) 7,711 Equity earnings of subsidiaries 22,753 — — (22,753 ) — Net income $ 22,875 $ 21,025 $ 1,714 $ (22,739 ) $ 22,875 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 expenses (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 nine months ended September 30, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 428,592 $ 29,848 $ — $ 458,440 Operating expenses: Operations: Water production costs — 162,933 5,900 — 168,833 Administrative and general — 67,289 7,748 — 75,037 Other operations — 53,128 5,016 (378 ) 57,766 Maintenance — 16,854 688 — 17,542 Depreciation and amortization 171 44,427 3,246 (72 ) 47,772 Income tax (benefit) expense (292 ) 17,356 1,366 762 19,192 Property and other taxes — 15,241 2,198 — 17,439 Total operating (income) expenses (121 ) 377,228 26,162 312 403,581 Net operating income 121 51,364 3,686 (312 ) 54,859 Other income and expenses: Non-regulated revenue 1,390 9,659 1,338 (1,798 ) 10,589 Non-regulated expenses — (7,422 ) (884 ) — (8,306 ) Income tax expense on other income and expenses (566 ) (909 ) (172 ) 733 (914 ) Net other income 824 1,328 282 (1,065 ) 1,369 Interest: Interest expense 547 24,421 1,435 (1,419 ) 24,984 Less: capitalized interest — (2,293 ) (48 ) — (2,341 ) Net interest expense 547 22,128 1,387 (1,419 ) 22,643 Equity earnings of subsidiaries 33,187 — — (33,187 ) — Net income $ 33,585 $ 30,564 $ 2,581 $ (33,145 ) $ 33,585 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 expenses (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
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, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 33,585 $ 30,564 $ 2,581 $ (33,145 ) $ 33,585 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (33,187 ) — — 33,187 — Dividends received from affiliates 24,807 — — (24,807 ) — Depreciation and amortization 171 45,466 3,381 (72 ) 48,946 Changes in value of life insurance contracts — (915 ) — — (915 ) Changes in operating assets and liabilities 1,844 12,552 (6,623 ) 54 7,827 Other changes in noncurrent assets and liabilities (250 ) 24,726 9,297 (24 ) 33,749 Net cash provided by operating activities 26,970 112,393 8,636 (24,807 ) 123,192 Investing activities: Utility plant expenditures — (163,179 ) (3,227 ) — (166,406 ) Changes in affiliate advances (957 ) 4,419 (319 ) (3,143 ) — Reduction of affiliate short-term borrowings 2,000 42,100 — (44,100 ) — Issuance of affiliate short-term borrowings (4,615 ) (20,600 ) — 25,215 — Reduction of affiliates long-term debt 829 — — (829 ) — Life insurance proceeds — 495 — — 495 Purchase of life insurance contracts — (2,710 ) — — (2,710 ) Changes in restricted cash — (685 ) — — (685 ) Net cash used in investing activities (2,743 ) (140,160 ) (3,546 ) (22,857 ) (169,306 ) Financing Activities: Short-term borrowings 44,100 61,000 — — 105,100 Repayment of short-term borrowings (20,615 ) (61,000 ) — — (81,615 ) Changes in affiliate advances — 1,367 (4,510 ) 3,143 — Proceeds from affiliate short-term borrowings 20,600 — 4,615 (25,215 ) — Repayment of affiliate short-term borrowings (42,100 ) — (2,000 ) 44,100 — Repayment of affiliates long-term borrowings — — (829 ) 829 — Proceeds from long-term debt, net of issuance costs — 49,823 — — 49,823 Repayment of long-term debt — (2,516 ) (349 ) — (2,865 ) Advances and contributions in aid of construction — 18,096 90 — 18,186 Refunds of advances for construction — (5,172 ) (22 ) — (5,194 ) Dividends paid to non-affiliates — (24,173 ) (634 ) — (24,807 ) Dividends paid to affiliates (24,807 ) — — 24,807 — Net cash (used in) provided by financing activities (22,822 ) 37,425 (3,639 ) 47,664 58,628 Change in cash and cash equivalents 1,405 9,658 1,451 — 12,514 Cash and cash equivalents at beginning of period 582 4,270 3,985 — 8,837 Cash and cash equivalents at end of period $ 1,987 $ 13,928 $ 5,436 $ — $ 21,351 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 Change 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 of 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

Organization and Operations a27

Organization and Operations and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2016segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Summary of Significant Accounting Policies [Line Items]
Markup for return or profit for cost-recovery expenses	$ 0
Maturity period of commercial paper	90 days
Expected collection period for undercollected net WRAM and MCBA receivables	18 months
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	$ 900,000	$ 1,300,000
Carrying value of cash and cash equivalents	21,351,000	8,837,000	$ 50,825,000	$ 19,587,000
Long-term debt unamortized debt issuance costs	4,600,000	4,800,000
Other assets	50,953,000	47,399,000
Long-term debt, less current maturities	555,536,000	508,002,000
Current maturities of long-term debt	6,130,000	6,043,000
As Reported on Form 10-K
Summary of Significant Accounting Policies [Line Items]
Other assets		52,241,000
Long-term debt, less current maturities		512,287,000
Current maturities of long-term debt		6,600,000
Decrease from Retrospective Adoption
Summary of Significant Accounting Policies [Line Items]
Other assets		(4,842,000)
Long-term debt, less current maturities		(4,285,000)
Current maturities of long-term debt		(557,000)
Taxes, prepaid expenses and other assets [Member]
Summary of Significant Accounting Policies [Line Items]
Carrying value of restricted cash	$ 1,200,000	$ 500,000
Minimum
Summary of Significant Accounting Policies [Line Items]
Expected collection period for undercollected net WRAM and MCBA receivables	12 months
Maximum
Summary of Significant Accounting Policies [Line Items]
Expected collection period for undercollected net WRAM and MCBA receivables		20 months
Accounting Standards Update 2012-03 [Member]
Summary of Significant Accounting Policies [Line Items]
Other assets		$ 47,399,000
Long-term debt, less current maturities		508,002,000
Current maturities of long-term debt		$ 6,043,000

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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stock-based Compensation
Recorded compensation costs for the RSAs and RSUs			$ 2.1	$ 2
Restricted Stock Awards (RSAs)
Stock-based Compensation
Weighted average grant date fair value (in dollars per share)			$ 25.17	$ 24.29
Restricted Stock Awards (RSAs) \| Officers and Directors
Stock-based Compensation
Awards granted (in shares)	0		72,317	60,997
Awards cancelled (in shares)	2,719	2,560	13,319	15,780
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)			43,659	38,983
Awards cancelled (in shares)		0	0	0
Awards issued (in shares)			28,424	0
Expiration period of award			3 years	3 years
Weighted average grant date fair value (in dollars per share)			$ 25.17	$ 24.28

Equity (Details)

Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Equity (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Changes in total common stockholders' equity
Balance at December 31, 2015			$ 642,155
Common stock issued			1
Share-based compensation expense			1,078
Common stock dividends declared			(24,807)
Net income	$ 22,875	$ 25,120	33,585	$ 36,540
Balance at September 30, 2016	$ 652,012		$ 652,012

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income available to common stockholders	$ 22,875	$ 25,120	$ 33,585	$ 36,540
Weighted average common shares outstanding, basic (in shares)	47,969,000	47,878,000	47,949,000	47,861,000
Dilutive SARs (treasury method) (in shares)		9,000	3,000	16,000
Weighed average common shares outstanding, dilutive (in shares)	47,969,000	47,887,000	47,952,000	47,877,000
Earnings per share - basic (in dollars per share)	$ 0.48	$ 0.52	$ 0.70	$ 0.76
Earnings per share - diluted (in dollars per share)	$ 0.48	$ 0.52	$ 0.70	$ 0.76
Net Income Per Share Calculations
Dilutive SARs (treasury method) (in shares)		9,000	3,000	16,000
Stock Appreciation Rights (SARs)
Earnings Per Share [Abstract]
Dilutive SARs (treasury method) (in shares)			0	65,436
Net Income Per Share Calculations
Dilutive SARs (treasury method) (in shares)			0	65,436

Pension Plan and Other Postre32

Pension Plan and Other Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Pension Plan
Pension Plan and Other Postretirement Benefits
Employer cash contributions			$ 20,600	$ 22,700
Estimated cash contributions in the current fiscal year			28,300
Components of the pension plans and other postretirement benefits
Service cost	$ 5,594	$ 4,715	15,728	15,980
Interest cost	5,764	5,072	16,670	15,078
Expected return on plan assets	(5,462)	(4,770)	(16,370)	(14,354)
Amortization of prior service cost	1,555	1,502	4,664	4,506
Recognized net actuarial loss	1,743	2,308	4,329	7,108
Net periodic benefit cost	9,194	8,827	25,021	28,318
Other Benefits
Pension Plan and Other Postretirement Benefits
Employer cash contributions			6,700	7,500
Estimated cash contributions in the current fiscal year			9,600
Components of the pension plans and other postretirement benefits
Service cost	1,045	3,043	5,653	8,044
Interest cost	625	2,101	4,225	5,328
Expected return on plan assets	(1,005)	(908)	(3,097)	(2,660)
Amortization of prior service cost	10	12	32	34
Recognized net actuarial loss	(482)	2,182	2,041	5,099
Net periodic benefit cost	193	$ 6,430	8,854	$ 15,845
Actuarial decrease due to reduction in retiree medical claims cost	$ 6,200		$ 7,000

Short-term and Long-term Borr33

Short-term and Long-term Borrowings (Details) - USD ($)	1 Months Ended	9 Months Ended
Short-term and Long-term Borrowings (Details) - USD ($)	Mar. 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Oct. 13, 2015
Debt Instrument [Line Items]
Proceeds from long-term debt		$ 49,823,000	$ 50,000
Cal Water
Debt Instrument [Line Items]
Proceeds from long-term debt		49,823,000	0
Parent Company
Debt Instrument [Line Items]
Proceeds from long-term debt		$ 0	$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Average borrowing rate		1.30%	1.05%
Revolving Credit Facility \| Cal Water
Debt Instrument [Line Items]
Repayment of debt	$ 48,600,000
Outstanding borrowings		$ 0		$ 0
Revolving Credit Facility \| Parent Company
Debt Instrument [Line Items]
Outstanding borrowings		$ 57,100,000		$ 33,600,000
Secured Debt \| Cal Water
Debt Instrument [Line Items]
Debt issued					$ 150,000,000
Debt issuance cost	300,000
Proceeds from long-term debt	49,700,000
Secured Debt \| First Mortgage Bonds Issue 1 \| Cal Water
Debt Instrument [Line Items]
Debt issued					100,000,000
Secured Debt \| Series QQQ Bond \| Cal Water
Debt Instrument [Line Items]
Debt issued					$ 50,000,000
Interest rate					3.33%
Secured Debt \| Series RRR Bond \| Cal Water
Debt Instrument [Line Items]
Debt issued					$ 50,000,000
Interest rate					4.31%
Secured Debt \| First Mortgage Bonds Issue 2 \| Cal Water
Debt Instrument [Line Items]
Debt issued	50,000,000
Secured Debt \| Series SSS Bond \| Cal Water
Debt Instrument [Line Items]
Debt issued	$ 40,000,000
Interest rate	4.41%
Secured Debt \| Series TTT Bond \| Cal Water
Debt Instrument [Line Items]
Debt issued	$ 10,000,000
Interest rate	4.61%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Income Taxes [Line Items]
Unrecognized tax benefits		$ 10.4	$ 10.3
Tax benefits that, if recognized, would affect the effective tax rate		$ 2.3	$ 2.1
Scenario, Forecast [Member]
Income Taxes [Line Items]
Effective tax rate estimate	38.00%

Regulatory Assets and Liabili35

Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Regulatory Assets and Liabilities
Regulatory assets	$ 363,597	$ 361,893
Regulatory liabilities	41,906	35,264
Short-term portion of the regulatory assets	19,811	35,052
Short-term portion of the regulatory liabilities	2,837	2,227
Tax benefits to ratepayers
Regulatory Assets and Liabilities
Regulatory liabilities	29,505	29,505
Conservation program
Regulatory Assets and Liabilities
Regulatory liabilities	3,574	2,317
Pension balancing account
Regulatory Assets and Liabilities
Regulatory liabilities	2,986	792
Net WRAM and MCBA long-term payable
Regulatory Assets and Liabilities
Regulatory liabilities	2,260	488
Other regulatory liabilities
Regulatory Assets and Liabilities
Regulatory liabilities	3,581	2,162
Pension and retiree group health
Regulatory Assets and Liabilities
Regulatory assets	205,120	205,614
Tax benefits to ratepayers
Regulatory Assets and Liabilities
Regulatory assets	81,522	81,522
Other accrued benefits
Regulatory Assets and Liabilities
Regulatory assets	28,917	27,327
Net WRAM and MCBA long-term accounts receivable
Regulatory Assets and Liabilities
Regulatory assets	16,626	15,410
Asset retirement obligations, net
Regulatory Assets and Liabilities
Regulatory assets	15,660	14,682
Interim rates long-term accounts receivable
Regulatory Assets and Liabilities
Regulatory assets	4,640	5,238
Tank coating
Regulatory Assets and Liabilities
Regulatory assets	8,594	6,829
Health care balancing account
Regulatory Assets and Liabilities
Regulatory assets	776	3,503
Other regulatory assets
Regulatory Assets and Liabilities
Regulatory assets	$ 1,742	$ 1,768

Commitment and Contingencies (D

Commitment and Contingencies (Details) $ in Thousands	3 Months Ended
Commitment and Contingencies (Details) $ in Thousands	Sep. 30, 2016USD ($)	Jul. 21, 2016gal	Dec. 31, 2015USD ($)
Loss Contingencies [Line Items]
Contingency loss recognized liability	$ 4,100		$ 3,500
Water Control Board and Fish and Wildlife Complaint [Member]
Loss Contingencies [Line Items]
Alleged number of gallons discharged \| gal		8,207,560
Water Control Board and Fish and Wildlife Complaint [Member] \| Water Control Board [Member]
Loss Contingencies [Line Items]
Payment for legal settlements	500
Water Control Board and Fish and Wildlife Complaint [Member] \| Fish and Wildlife [Member]
Loss Contingencies [Line Items]
Payment for legal settlements	$ 20

Fair Value of Financial Asset37

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Fair Value of Financial Assets and Liabilities
Risk premium (as a percent)	1.70%
Advances for construction	$ 182,001	$ 180,172
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	679,712	600,440
Advances for construction	74,440	72,866
Total	754,152	673,306
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	561,666	514,045
Advances for construction	182,001	180,172
Total	743,667	694,217
Total
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	679,712	600,440
Advances for construction	74,440	72,866
Total	$ 754,152	$ 673,306

Condensed Consolidating Finan38

Condensed Consolidating Financial Statements (Details) - USD ($)	Sep. 30, 2016	Nov. 17, 2010	Apr. 17, 2009
Cal Water
Debt Instrument [Line Items]
Ownership interest (as a percent)	100.00%
All Other Subsidiaries
Debt Instrument [Line Items]
Ownership interest (as a percent)	100.00%
First Mortgage Bonds, 5.875% due 2019 \| Cal Water
Debt Instrument [Line Items]
Debt issued			$ 100,000,000
Interest rate			5.875%
First Mortgage Bonds, 5.500% due 2040 \| Cal Water
Debt Instrument [Line Items]
Debt issued		$ 100,000,000
Interest rate		5.50%

Condensed Consolidating Finan39

Condensed Consolidating Financial Statements (Details 2) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Utility plant:
Utility plant	$ 2,667,635	$ 2,506,946
Less accumulated depreciation and amortization	(849,884)	(805,178)
Net utility plant	1,817,751	1,701,768
Current assets:
Cash and cash equivalents	21,351	8,837	$ 50,825	$ 19,587
Receivables and unbilled revenue, net	113,113
Receivables		104,505
Receivables from affiliates	0	0
Other current assets	16,663	14,236
Total current assets	151,127	127,578
Other assets:
Regulatory assets	363,597	361,893
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	53,568	50,014
Total other assets	417,165	411,907
TOTAL ASSETS	2,386,043	2,241,253
Capitalization:
Common stockholders' equity	652,012	642,155
Affiliate long-term debt	0	0
Long-term debt, less current maturities	555,536	508,002
Total capitalization	1,207,548	1,150,157
Current liabilities:
Current maturities of long-term debt	6,130	6,043
Short-term borrowings	57,100	33,615
Payables to affiliates	0	0
Accounts payable	84,052	66,380
Accrued expenses and other liabilities	56,699	41,860
Total current liabilities	203,981	147,898
Unamortized investment tax credits	1,872	1,872
Deferred income taxes	282,973	264,897
Pension and postretirement benefits other than pensions	237,341	236,266
Regulatory liabilities and other	90,714	82,414
Advances for construction	182,001	180,172
Contributions in aid of construction	179,613	177,577
TOTAL CAPITALIZATION AND LIABILITIES	2,386,043	2,241,253
Consolidating Adjustments
Utility plant:
Utility plant	(7,196)	(7,197)
Less accumulated depreciation and amortization	1,895	1,823
Net utility plant	(5,301)	(5,374)
Current assets:
Cash and cash equivalents	0	0	0	0
Receivables and unbilled revenue, net	0
Receivables		0
Receivables from affiliates	(23,859)	(45,896)
Other current assets	0	0
Total current assets	(23,859)	(45,896)
Other assets:
Regulatory assets	0	0
Investments in affiliates	(659,828)	(651,449)
Long-term affiliate notes receivable	(24,206)	(25,099)
Other assets	(205)	(904)
Total other assets	(684,239)	(677,452)
TOTAL ASSETS	(713,399)	(728,722)
Capitalization:
Common stockholders' equity	(665,153)	(656,816)
Affiliate long-term debt	(24,206)	(25,099)
Long-term debt, less current maturities	0	0
Total capitalization	(689,359)	(681,915)
Current liabilities:
Current maturities of long-term debt	0	0
Short-term borrowings	0	0
Payables to affiliates	(23,859)	(45,896)
Accounts payable	0	0
Accrued expenses and other liabilities	53	0
Total current liabilities	(23,806)	(45,896)
Unamortized investment tax credits	0	0
Deferred income taxes	(236)	(911)
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	(713,401)	(728,722)
Parent Company
Utility plant:
Utility plant	1,317	1,318
Less accumulated depreciation and amortization	(776)	(605)
Net utility plant	541	713
Current assets:
Cash and cash equivalents	1,987	582	5,523	4,108
Receivables and unbilled revenue, net	0
Receivables		0
Receivables from affiliates	23,313	19,677
Other current assets	179	79
Total current assets	25,479	20,338
Other assets:
Regulatory assets	0	0
Investments in affiliates	659,828	651,449
Long-term affiliate notes receivable	24,206	25,099
Other assets	1,103	758
Total other assets	685,137	677,306
TOTAL ASSETS	711,157	698,357
Capitalization:
Common stockholders' equity	652,012	642,155
Affiliate long-term debt	0	0
Long-term debt, less current maturities	0	0
Total capitalization	652,012	642,155
Current liabilities:
Current maturities of long-term debt	0	0
Short-term borrowings	57,100	33,615
Payables to affiliates	0	21,500
Accounts payable	0	0
Accrued expenses and other liabilities	2,045	102
Total current liabilities	59,145	55,217
Unamortized investment tax credits	0	0
Deferred income taxes	0	985
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	711,157	698,357
Cal Water
Utility plant:
Utility plant	2,471,314	2,313,704
Less accumulated depreciation and amortization	(799,057)	(758,362)
Net utility plant	1,672,257	1,555,342
Current assets:
Cash and cash equivalents	13,928	4,270	43,359	13,929
Receivables and unbilled revenue, net	107,535
Receivables		100,777
Receivables from affiliates	300	26,219
Other current assets	15,449	13,077
Total current assets	137,212	144,343
Other assets:
Regulatory assets	359,926	358,254
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	49,482	45,544
Total other assets	409,408	403,798
TOTAL ASSETS	2,218,877	2,103,483
Capitalization:
Common stockholders' equity	588,183	581,792
Affiliate long-term debt	0	0
Long-term debt, less current maturities	554,748	507,034
Total capitalization	1,142,931	1,088,826
Current liabilities:
Current maturities of long-term debt	5,661	5,654
Short-term borrowings	0	0
Payables to affiliates	2,034	667
Accounts payable	81,161	63,814
Accrued expenses and other liabilities	58,141	40,173
Total current liabilities	146,997	110,308
Unamortized investment tax credits	1,872	1,872
Deferred income taxes	275,596	264,823
Pension and postretirement benefits other than pensions	237,341	236,266
Regulatory liabilities and other	87,633	79,477
Advances for construction	181,454	179,630
Contributions in aid of construction	145,053	142,281
TOTAL CAPITALIZATION AND LIABILITIES	2,218,877	2,103,483
All Other Subsidiaries
Utility plant:
Utility plant	202,200	199,121
Less accumulated depreciation and amortization	(51,946)	(48,034)
Net utility plant	150,254	151,087
Current assets:
Cash and cash equivalents	5,436	3,985	$ 1,943	$ 1,550
Receivables and unbilled revenue, net	5,578
Receivables		3,728
Receivables from affiliates	246	0
Other current assets	1,035	1,080
Total current assets	12,295	8,793
Other assets:
Regulatory assets	3,671	3,639
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	3,188	4,616
Total other assets	6,859	8,255
TOTAL ASSETS	169,408	168,135
Capitalization:
Common stockholders' equity	76,970	75,024
Affiliate long-term debt	24,206	25,099
Long-term debt, less current maturities	788	968
Total capitalization	101,964	101,091
Current liabilities:
Current maturities of long-term debt	469	389
Short-term borrowings	0	0
Payables to affiliates	21,825	23,729
Accounts payable	2,891	2,566
Accrued expenses and other liabilities	(3,540)	1,585
Total current liabilities	21,645	28,269
Unamortized investment tax credits	0	0
Deferred income taxes	7,613	0
Pension and postretirement benefits other than pensions	0	0
Regulatory liabilities and other	3,081	2,937
Advances for construction	547	542
Contributions in aid of construction	34,560	35,296
TOTAL CAPITALIZATION AND LIABILITIES	$ 169,410	$ 168,135

Condensed Consolidating Finan40

Condensed Consolidating Financial Statements (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidating Financial Statements
Operating revenue	$ 184,268	$ 183,543	$ 458,440	$ 449,942
Operations:
Water production costs	70,175	60,437	168,833	158,661
Administrative and general	23,844	30,737	75,037	85,069
Other operations	19,561	17,872	57,766	51,227
Maintenance	5,545	5,952	17,542	15,735
Depreciation and amortization	15,884	15,342	47,772	46,015
Income tax (benefit) expense	13,247	15,293	19,192	21,008
Property and other taxes	5,957	5,709	17,439	16,036
Total operating (income) expense	154,213	151,342	403,581	393,751
Net operating income (loss)	30,055	32,201	54,859	56,191
Other income and expenses:
Non-regulated revenue	3,397	3,814	10,589	10,540
Non-regulated expenses	(2,517)	(4,454)	(8,306)	(10,201)
Income tax (expense) benefit on other income and expenses	(349)	262	(914)	(131)
Net other income (loss)	531	(378)	1,369	208
Interest:
Interest expense	8,485	7,201	24,984	21,331
Less: capitalized interest	(774)	(498)	(2,341)	(1,472)
Net interest expense	7,711	6,703	22,643	19,859
Equity earnings of subsidiaries	0	0	0	0
Net income	22,875	25,120	33,585	36,540
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	(168)	(125)	(378)	(378)
Maintenance	0	0	0	0
Depreciation and amortization	(24)	(25)	(72)	(76)
Income tax (benefit) expense	267	254	762	756
Property and other taxes	0	0	0	0
Total operating (income) expense	75	104	312	302
Net operating income (loss)	(75)	(104)	(312)	(302)
Other income and expenses:
Non-regulated revenue	(632)	(570)	(1,798)	(1,728)
Non-regulated expenses	0	0	0	0
Income tax (expense) benefit on other income and expenses	258	244	733	725
Net other income (loss)	(374)	(326)	(1,065)	(1,003)
Interest:
Interest expense	(463)	(445)	(1,419)	(1,350)
Less: capitalized interest	0	0	0	0
Net interest expense	(463)	(445)	(1,419)	(1,350)
Equity earnings of subsidiaries	(22,753)	(25,012)	(33,187)	(36,168)
Net income	(22,739)	(24,997)	(33,145)	(36,123)
Parent Company
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	0	0	0	0
Maintenance	0	0	0	0
Depreciation and amortization	57	57	171	171
Income tax (benefit) expense	(105)	(107)	(292)	(294)
Property and other taxes	0	0	0	0
Total operating (income) expense	(48)	(50)	(121)	(123)
Net operating income (loss)	48	50	121	123
Other income and expenses:
Non-regulated revenue	464	444	1,390	1,353
Non-regulated expenses	0	0	0	0
Income tax (expense) benefit on other income and expenses	(189)	(181)	(566)	(549)
Net other income (loss)	275	263	824	804
Interest:
Interest expense	201	205	547	555
Less: capitalized interest	0	0	0	0
Net interest expense	201	205	547	555
Equity earnings of subsidiaries	22,753	25,012	33,187	36,168
Net income	22,875	25,120	33,585	36,540
Cal Water
Condensed Consolidating Financial Statements
Operating revenue	173,223	172,425	428,592	422,372
Operations:
Water production costs	68,045	58,173	162,933	152,593
Administrative and general	21,679	27,620	67,289	76,271
Other operations	18,037	16,329	53,128	46,632
Maintenance	5,322	5,722	16,854	15,148
Depreciation and amortization	14,777	14,231	44,427	42,659
Income tax (benefit) expense	12,165	14,638	17,356	20,454
Property and other taxes	5,182	4,910	15,241	13,964
Total operating (income) expense	145,207	141,623	377,228	367,721
Net operating income (loss)	28,016	30,802	51,364	54,651
Other income and expenses:
Non-regulated revenue	3,024	3,489	9,659	9,674
Non-regulated expenses	(2,170)	(4,058)	(7,422)	(9,283)
Income tax (expense) benefit on other income and expenses	(345)	232	(909)	(159)
Net other income (loss)	509	(337)	1,328	232
Interest:
Interest expense	8,259	6,969	24,421	20,751
Less: capitalized interest	(759)	(488)	(2,293)	(1,438)
Net interest expense	7,500	6,481	22,128	19,313
Equity earnings of subsidiaries	0	0	0	0
Net income	21,025	23,984	30,564	35,570
All Other Subsidiaries
Condensed Consolidating Financial Statements
Operating revenue	11,045	11,118	29,848	27,570
Operations:
Water production costs	2,130	2,264	5,900	6,068
Administrative and general	2,165	3,117	7,748	8,798
Other operations	1,692	1,668	5,016	4,973
Maintenance	223	230	688	587
Depreciation and amortization	1,074	1,079	3,246	3,261
Income tax (benefit) expense	920	508	1,366	92
Property and other taxes	775	799	2,198	2,072
Total operating (income) expense	8,979	9,665	26,162	25,851
Net operating income (loss)	2,066	1,453	3,686	1,719
Other income and expenses:
Non-regulated revenue	541	451	1,338	1,241
Non-regulated expenses	(347)	(396)	(884)	(918)
Income tax (expense) benefit on other income and expenses	(73)	(33)	(172)	(148)
Net other income (loss)	121	22	282	175
Interest:
Interest expense	488	472	1,435	1,375
Less: capitalized interest	(15)	(10)	(48)	(34)
Net interest expense	473	462	1,387	1,341
Equity earnings of subsidiaries	0	0	0	0
Net income	$ 1,714	$ 1,013	$ 2,581	$ 553

Condensed Consolidating Finan41

Condensed Consolidating Financial Statements (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Operating activities:
Net income	$ 22,875	$ 25,120	$ 33,585	$ 36,540
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	0	0	0	0
Dividends received from affiliates			0	0
Depreciation and amortization			48,946	47,406
Change in value of life insurance contracts			(915)	758
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:			7,827	(1,656)
Other changes in noncurrent assets and liabilities			33,749	33,476
Net cash provided by operating activities			123,192	116,524
Investing activities:
Utility plant expenditures			(166,406)	(118,309)
Investment in affiliates				0
Changes in affiliate advances			0	0
Reduction of affiliate short-term borrowings			0
Issuance of affiliate short-term borrowings			0
Reduction of affiliates long-term debt			0	0
Life insurance proceeds			495	0
Purchase of life insurance contracts			(2,710)	(1,855)
Change in restricted cash			(685)	(241)
Net cash used in investing activities			(169,306)	(120,405)
Financing Activities:
Short-term borrowings			105,100	82,500
Repayment of short-term borrowings			(81,615)	(25,000)
Debt issuance costs			0	(1,197)
Investment from affiliates			0	0
Changes in affiliate advances			0	0
Repayment of affiliate short-term borrowings			0
Repayment of affiliates long-term borrowings			0	0
Proceeds from long-term debt			49,823	50
Repayment of long-term debt			(2,865)	(2,878)
Advances and contributions in aid of construction			18,186	10,741
Refunds of advances for construction			(5,194)	(5,050)
Dividends paid to non-affiliates			(24,807)	(24,047)
Dividends paid to affiliates			0	0
Net cash provided by financing activities			58,628	35,119
Change in cash and cash equivalents			12,514	31,238
Cash and cash equivalents at beginning of period			8,837	19,587
Cash and cash equivalents at end of period	21,351	50,825	21,351	50,825
Consolidating Adjustments
Operating activities:
Net income	(22,739)	(24,997)	(33,145)	(36,123)
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	22,753	25,012	33,187	36,168
Dividends received from affiliates			(24,807)	(24,047)
Depreciation and amortization			(72)	(76)
Change in value of life insurance contracts			0	0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:			54	(94)
Other changes in noncurrent assets and liabilities			(24)	125
Net cash provided by operating activities			(24,807)	(24,047)
Investing activities:
Utility plant expenditures			0	0
Investment in affiliates				1,000
Changes in affiliate advances			(3,143)	280
Reduction of affiliate short-term borrowings			(44,100)
Issuance of affiliate short-term borrowings			25,215
Reduction of affiliates long-term debt			(829)	(767)
Life insurance proceeds			0
Purchase of life insurance contracts			0	0
Change in restricted cash			0	0
Net cash used in investing activities			(22,857)	513
Financing Activities:
Short-term borrowings			0	0
Repayment of short-term borrowings			0	0
Debt issuance costs				0
Investment from affiliates			(25,215)	(1,000)
Changes in affiliate advances			3,143	(280)
Repayment of affiliate short-term borrowings			44,100
Repayment of affiliates long-term borrowings			829	767
Proceeds from long-term debt			0	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			24,807	24,047
Net cash provided by financing activities			47,664	23,534
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	22,875	25,120	33,585	36,540
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(22,753)	(25,012)	(33,187)	(36,168)
Dividends received from affiliates			24,807	24,047
Depreciation and amortization			171	171
Change in value of life insurance contracts			0	0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:			1,844	(910)
Other changes in noncurrent assets and liabilities			(250)	3,030
Net cash provided by operating activities			26,970	26,710
Investing activities:
Utility plant expenditures			0	0
Investment in affiliates				(1,000)
Changes in affiliate advances			(957)	(3,116)
Reduction of affiliate short-term borrowings			2,000
Issuance of affiliate short-term borrowings			(4,615)
Reduction of affiliates long-term debt			829	767
Life insurance proceeds			0
Purchase of life insurance contracts			0	0
Change in restricted cash			0	0
Net cash used in investing activities			(2,743)	(3,349)
Financing Activities:
Short-term borrowings			44,100	2,500
Repayment of short-term borrowings			(20,615)	0
Debt issuance costs				(399)
Investment from affiliates			20,600	0
Changes in affiliate advances			0	0
Repayment of affiliate short-term borrowings			(42,100)
Repayment of affiliates long-term borrowings			0	0
Proceeds from long-term debt			0	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	(24,047)
Dividends paid to affiliates			(24,807)		$ 0
Net cash provided by financing activities			(22,822)	(21,946)
Change in cash and cash equivalents			1,405	1,415
Cash and cash equivalents at beginning of period			582	4,108
Cash and cash equivalents at end of period	1,987	5,523	1,987	5,523
Cal Water
Operating activities:
Net income	21,025	23,984	30,564	35,570
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	0	0	0	0
Dividends received from affiliates			0	0
Depreciation and amortization			45,466	43,768
Change in value of life insurance contracts			(915)	758
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:			12,552	(9,088)
Other changes in noncurrent assets and liabilities			24,726	35,324
Net cash provided by operating activities			112,393	106,332
Investing activities:
Utility plant expenditures			(163,179)	(114,325)
Investment in affiliates				0
Changes in affiliate advances			4,419	2,918
Reduction of affiliate short-term borrowings			42,100
Issuance of affiliate short-term borrowings			(20,600)
Reduction of affiliates long-term debt			0	0
Life insurance proceeds			495
Purchase of life insurance contracts			(2,710)	(1,855)
Change in restricted cash			(685)	(241)
Net cash used in investing activities			(140,160)	(113,503)
Financing Activities:
Short-term borrowings			61,000	80,000
Repayment of short-term borrowings			(61,000)	(25,000)
Debt issuance costs				(798)
Investment from affiliates			0	0
Changes in affiliate advances			1,367	2,965
Repayment of affiliate short-term borrowings			0
Repayment of affiliates long-term borrowings			0		$ 0
Proceeds from long-term debt			49,823	0
Repayment of long-term debt			(2,516)	(2,480)
Advances and contributions in aid of construction			18,096	10,682
Refunds of advances for construction			(5,172)	(5,014)
Dividends paid to non-affiliates			(24,173)	0
Dividends paid to affiliates			0	(23,754)
Net cash provided by financing activities			37,425	36,601
Change in cash and cash equivalents			9,658	29,430
Cash and cash equivalents at beginning of period			4,270	13,929
Cash and cash equivalents at end of period	13,928	43,359	13,928	43,359
All Other Subsidiaries
Operating activities:
Net income	1,714	1,013	2,581	553
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	0	0	0	0
Dividends received from affiliates			0	0
Depreciation and amortization			3,381	3,543
Change in value of life insurance contracts			0	0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:			(6,623)	8,436
Other changes in noncurrent assets and liabilities			9,297	(5,003)
Net cash provided by operating activities			8,636	7,529
Investing activities:
Utility plant expenditures			(3,227)	(3,984)
Investment in affiliates				0
Changes in affiliate advances			(319)	(82)
Reduction of affiliate short-term borrowings			0
Issuance of affiliate short-term borrowings			0
Reduction of affiliates long-term debt			0	0
Life insurance proceeds			0
Purchase of life insurance contracts			0	0
Change in restricted cash			0	0
Net cash used in investing activities			(3,546)	(4,066)
Financing Activities:
Short-term borrowings			0	0
Repayment of short-term borrowings			0	0
Debt issuance costs				0
Investment from affiliates			4,615	1,000
Changes in affiliate advances			(4,510)	(2,685)
Repayment of affiliate short-term borrowings			(2,000)
Repayment of affiliates long-term borrowings			(829)	(767)
Proceeds from long-term debt			0	50
Repayment of long-term debt			(349)	(398)
Advances and contributions in aid of construction			90	59
Refunds of advances for construction			(22)	(36)
Dividends paid to non-affiliates			(634)	0
Dividends paid to affiliates			0	(293)
Net cash provided by financing activities			(3,639)	(3,070)
Change in cash and cash equivalents			1,451	393
Cash and cash equivalents at beginning of period			3,985	1,550
Cash and cash equivalents at end of period	$ 5,436	$ 1,943	$ 5,436	$ 1,943