California Water Service (CWT) 10-Q 27 Apr 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2017shares
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	Mar. 31, 2017
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	48,021,704
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Utility plant:
Utility plant	$ 2,766,232	$ 2,717,339
Less accumulated depreciation and amortization	(878,227)	(858,062)
Net utility plant	1,888,005	1,859,277
Current assets:
Cash and cash equivalents	11,990	25,492
Receivables:
Customers	24,685	30,305
Regulatory balancing accounts	30,661	30,332
Other	17,394	17,158
Unbilled revenue	24,303	25,228
Materials and supplies at weighted average cost	6,405	6,292
Taxes, prepaid expenses, and other assets	12,767	7,262
Total current assets	128,205	142,069
Other assets:
Regulatory assets	367,476	355,930
Goodwill	2,615	2,615
Other assets	53,997	51,854
Total other assets	424,088	410,399
TOTAL ASSETS	2,440,298	2,411,745
Capitalization:
Common stock, $0.01 par value; 68,000 shares authorized, 48,022 and 47,965 outstanding in 2017 and 2016, respectively	480	480
Additional paid-in capital	334,220	334,856
Retained earnings	316,633	324,135
Total common stockholders’ equity	651,333	659,471
Long-term debt, less current maturities	521,715	531,745
Total capitalization	1,173,048	1,191,216
Current liabilities:
Current maturities of long-term debt	36,139	26,208
Short-term borrowings	130,100	97,100
Accounts payable	69,276	77,813
Regulatory balancing accounts	8,197	4,759
Accrued interest	12,583	5,661
Accrued expenses and other liabilities	37,078	38,689
Total current liabilities	293,373	250,230
Unamortized investment tax credits	1,798	1,798
Deferred income taxes	299,464	298,924
Pension and postretirement benefits other than pensions	224,851	222,691
Regulatory liabilities and other	84,318	83,648
Advances for construction	182,815	182,448
Contributions in aid of construction	180,631	180,790
Commitments and contingencies (Note 10)
TOTAL CAPITALIZATION AND LIABILITIES	$ 2,440,298	$ 2,411,745

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited Unaudited (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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)	48,022,000	47,965,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Operating revenue	$ 122,036	$ 121,727
Operations:
Water production costs	42,068	41,069
Administrative and general	25,249	27,827
Other operations	16,124	19,302
Maintenance	6,112	6,063
Depreciation and amortization	19,201	16,046
Income tax benefit	(884)	(925)
Property and other taxes	6,116	6,075
Total operating expenses	113,986	115,457
Net operating income (loss)	8,050	6,270
Other income and expenses:
Non-regulated revenue	3,462	3,428
Non-regulated expenses	(2,054)	(2,980)
Allowance for equity funds used during construction (Note 2)	779	0
Income tax expense on other income and expenses	(889)	(181)
Net other income	1,298	267
Interest expense:
Interest expense	8,710	8,065
Allowance for borrowed funds used during construction (Note 2)	(494)	(730)
Net interest expense	8,216	7,335
Net income (loss)	$ 1,132	$ (798)
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.02	$ (0.02)
Diluted (in dollars per share)	$ 0.02	$ (0.02)
Weighted average shares outstanding:
Basic (in shares)	47,984	47,905
Diluted (in shares)	47,984	47,905
Dividends declared per share of common stock (in dollars per share)	$ 0.1800	$ 0.1725

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)
Operating activities:
Net income (loss)	$ 1,132	$ (798)
Adjustments to reconcile net income (loss) to net cash:
Depreciation and amortization	19,658	16,454
Change in value of life insurance contracts	(319)	43
Allowance for equity funds used during construction	(779)	0
Changes in operating assets and liabilities:
Receivables and unbilled revenue	(4,564)	7,127
Accounts payable	(5,535)	(5,129)
Other current assets	(5,359)	(1,728)
Other current liabilities	5,084	10,453
Other changes in noncurrent assets and liabilities	4,979	5,070
Net cash provided by operating activities	14,297	31,492
Investing activities:
Utility plant expenditures	(51,853)	(56,463)
Life insurance proceeds	450	495
Purchase of life insurance contracts	(836)	(960)
Change in restricted cash	(260)	(465)
Net cash used in investing activities	(52,499)	(57,393)
Financing activities:
Short-term borrowings	35,000	54,500
Repayment of short-term borrowings	(2,000)	(53,615)
Proceeds from long-term debt, net of expenses of $0 for 2017, $177 for 2016	0	50,039
Repayment of long-term debt	(286)	(254)
Advances and contributions in aid of construction	3,975	7,608
Refunds of advances for construction	(2,236)	(1,612)
Repurchase of common stock	(1,119)	(466)
Dividends paid	(8,634)	(8,258)
Net cash provided by financing activities	24,700	47,942
Change in cash and cash equivalents	(13,502)	22,041
Cash and cash equivalents at beginning of period	25,492	8,837
Cash and cash equivalents at end of period	11,990	30,878
Supplemental information:
Cash paid for interest (net of amounts capitalized)	994	481
Supplemental disclosure of non-cash activities:
Accrued payables for investments in utility plant	24,191	22,904
Utility plant contribution by developers	$ 3,481	$ 2,490

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited Unaudited (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Cash Flows [Abstract]
Payments of debt issuance expense	$ 0	$ 177

Organization and Operations and

Organization and Operations and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
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, 2016 , included in its annual report on Form 10-K as filed with the SEC on February 23, 2017. 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	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Revenue Revenue generally includes monthly cycle customer billings for regulated water and wastewater services at rates authorized by the Commissions (plus 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. 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 guidance for regulated operations. The variance amount represents amounts that will be billed or refunded to customers in the future. In addition to volumetric revenues, the revenue requirements approved by the CPUC include service charges, flat rate charges, and other items not subject to the WRAM. 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 assets and liabilities accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results. The recovery or refund of the WRAM is netted against the MCBA over- or under-recovery for the corresponding district and the deferred net balances are interest bearing at the current 90 day commercial paper rate. Subsequent to calendar year-end, Cal Water files with the CPUC to refund or collect the balance in the accounts. The majority of under-collected net WRAM and MCBA receivable balances are collected over 12 and 18 months. Cal Water defers net WRAM and MCBA operating revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting period in which it was recorded. The deferred net WRAM and MCBA revenue and associated costs were determined using forecasts of customer consumption trends in future reporting periods and the estimated timing of when the CPUC will authorize Cal Water's filings to recover unbilled balances. Deferred revenues and associated costs are recorded in the periods when the collection is within 24 months of the respective reporting period. Customers' meter reads occur on various business days throughout the month. As a result, there are 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 $0.8 million as of March 31, 2017 and December 31, 2016 , respectively. This liability is included in “accrued expenses and other liabilities” on the condensed consolidated balance sheets. Allowance for Funds Used During Construction The allowance for funds used during construction (AFUDC) represents the capitalized cost of funds used to finance the construction of utility plant. In general, AFUDC is applied to Cal Water construction projects requiring more than one month to complete. No AFUDC is applied to projects funded by customer advances for construction, contributions in aid of construction, or applicable state-revolving fund loans. AFUDC includes the net cost of borrowed funds and a rate of return on other funds when used, and is recovered through water rates as the utility plant is depreciated. Cal Water was authorized by the CPUC to record AFUDC on construction work in progress effective January 1, 2017. Prior to January 1, 2017, the CPUC authorized Cal Water to only record capitalized interest on borrowed funds. Cal Water previously reported the amounts authorized as capitalized interest and a reduced interest expense. The amount of AFUDC related to equity funds during the three months ended March 31, 2017 was $0.8 million and there was $0 million for the three months ended March 31, 2016. The amount of AFUDC related to borrowed funds for the three months ended March 31, 2017 was $0.5 million and the equivalent amount of capitalized interest on borrowed funds was $0.7 million for the three months ended March 31, 2016. Adoption of New Accounting Standard In March 2016, the Financial Accounting Standards Board (FASB) issued updated accounting guidance on simplifying the accounting for share-based payments (ASU 2016-09), which includes the accounting for share-based payment transactions, the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted and implemented the changes to accounting for share-based payments on January 1, 2017 and applied the requirements retrospectively on the statement of cash flows for all periods presented. The Company's forfeiture policy did not change and the Company continues to account for forfeitures when they occur. For the three month period ended March 31, 2017, the Company recorded $0.5 million of income tax benefits in excess compensation costs for share-based compensation which reduced the effective tax rate. The tax-related cash flows resulting from share-based payments were reported as operating activities and the associated cash paid by the company for employee tax withholding transactions were reported as financing activities on the consolidated statement of cash flows. The following table shows the effect of the accounting change to the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2016: Three Months Ended March 31, 2016 Cash Flow Classification As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Other changes in noncurrent assets and liabilities $ 4,604 $ 5,070 $ 466 Net cash provided by operating activities 31,026 31,492 466 Repurchase of common stock — (466 ) (466 ) Net cash provided by financing activities 48,408 47,942 (466 ) New Accounting Standards 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. The Company expects to adopt the new revenue standard using the modified retrospective method and does not expect the ASU to materially impact the timing or recognition of revenue related to the sale and delivery of water to their customers, which is a significant percentage of the Company's revenue. The Company is still evaluating the impact the ASU has on the related revenue 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 2016-02 is effective for annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company will adopt the standard using the modified retrospective method for its existing leases and is currently evaluating the impact of adopting the new lease standard 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. In March 2017, the FASB issued Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). The update requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service cost/credit and actuarial gain/loss, and settlement and curtailment effects, are to be presented as non-operating items. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement . The standard only allows the service cost component to be eligible for capitalization. ASU 2017-07 is effective for annual periods after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact on its consolidated financial statements and related disclosures. The adoption of this guidance will change the Company's financial statement presentation of net benefit costs. However, based on current regulatory authorization, the changes required by the standard are not expected to materially impact the results of operations.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock-based Compensation Equity Incentive Plan During the three months ended March 31, 2017 and 2016, the Company granted annual Restricted Stock Awards (RSAs) of 48,717 and 72,317 , respectively, to officers and directors of the Company. During those same periods, 10,902 and 7,731 RSAs were canceled, respectively. Employee RSAs granted in 2017 and 2016 vest over 36 months. Director RSAs generally vest at the end of 12 months . During the first three months of 2017 and 2016, the RSAs granted were valued at $36.75 and $25.17 per share, respectively, based upon the fair market value of the Company’s common stock on the date of grant. During the three months ended March 31, 2017 and 2016, the Company granted 31,389 and 43,659 performance-based Restricted Stock Unit Awards (RSUs), respectively, to officers. During those same periods, the Company issued 38,709 and 28,424 RSUs and canceled 19,735 and 6,602 RSUs, respectively. Each RSU award reflects a target number of shares that may be issued to the award recipient. The 2017 and 2016 awards may be earned upon the completion of the three -year performance period and are recognized as expense ratably over the three -year performance period using a fair market value of $36.75 per share and $25.17 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 $0.7 million for the three months ended March 31, 2017 and March 31, 2016.

Equity

Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Equity	Equity The Company’s changes in total common stockholders’ equity for the three months ended March 31, 2017 were as follows: Total Common Stockholders’ Equity Balance at December 31, 2016 $ 659,471 Common stock issued — Share-based compensation expense 483 Repurchase of common stock (1,119 ) Common stock dividends declared (8,634 ) Net income 1,132 Balance at March 31, 2017 $ 651,333 The repurchase of common stock represents vesting shares of common stock which employees elected to surrender to the Company in order to pay withholding taxes owed upon vesting of stock grants.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and as of March 31, 2016. Three Months Ended March 31 2017 2016 (In thousands, except per share data) Net income (loss) available to common stockholders $ 1,132 $ (798 ) Weighted average common shares outstanding, basic 47,984 47,905 Dilutive SARs (treasury method) — — Weighted average common shares outstanding, dilutive 47,984 47,905 Earnings (loss) per share - basic $ 0.02 $ (0.02 ) Earnings (loss) per share - diluted $ 0.02 $ (0.02 )

Pension Plan and Other Postreti

Pension Plan and Other Postretirement Benefits	3 Months Ended
	Mar. 31, 2017
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 $7.5 million and $7.3 million for the three months ended March 31, 2017 and March 31, 2016, respectively. There were no contributions made to the other postretirement benefit plans during the first three months of 2017 and 2016. The 2017 estimated cash contribution to the pension plans is $29.5 million and to the other postretirement benefit plans is $9.3 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 March 31 Pension Plan Other Benefits 2017 2016 2017 2016 Service cost $ 5,865 $ 5,067 $ 2,019 $ 2,304 Interest cost 5,791 5,453 1,491 1,800 Expected return on plan assets (6,029 ) (5,454 ) (1,218 ) (1,046 ) Amortization of prior service cost 1,445 1,555 11 11 Recognized net actuarial loss 1,752 1,293 649 1,261 Net periodic benefit cost $ 8,824 $ 7,914 $ 2,952 $ 4,330 The decrease in other benefits was due to reductions in health care claim payments in 2016.

Short-term and Long-term Borrow

Short-term and Long-term Borrowings	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Short-term and Long-term Borrowings	Short-term and Long-term Borrowings In March 2016, Cal Water issued $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 $55.1 million as of March 31, 2017 and $57.1 million as of December 31, 2016. There were $75.0 million and $40.0 million of borrowings on the Cal Water lines of credit as of March 31, 2017 and December 31, 2016, respectively. The average borrowing rate for borrowings on the Company and Cal Water lines of credit during the three months ended March 31, 2017 was 1.6% compared to 1.27% for the same period last year.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company accounts for income taxes under the provisions of ASC 740, Accounting for Income Taxes . The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate. The Company also records the tax effect of unusual or infrequently occurring discrete items. The provision for income taxes consists of the following: Three Months Ended March 31 2017 2016 Income tax provision (benefit) $ 5 $ (744 ) The increase in the income tax provision for 2017 from 2016 was due primarily to an increase in the Company’s earnings for the three months ended March 31, 2017, which was partially offset by a $0.5 million tax benefit associated with the settlement of equity awards. The Company’s fiscal year 2017 effective tax rate is estimated to be 37% . During the month of April 2017, the Franchise Tax Board of California completed an audit of the Company's State of California EZ credit filing for years 2008-2012. The completed audit will not have a material impact on the Company's 2017 consolidated financial statements. As of March 31, 2017 and December 31, 2016, the Company had unrecognized tax benefits of approximately $10.5 million . Included in the balance of unrecognized tax benefits as of March 31, 2017 and December 31, 2016 is approximately $2.3 million 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.

Regulatory Assets and Liabiliti

Regulatory Assets and Liabilities	3 Months Ended
	Mar. 31, 2017
Regulated Operations [Abstract]
Regulatory Assets and Liabilities	Regulatory Assets and Liabilities Regulatory assets and liabilities were comprised of the following as of March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Regulatory Assets Pension and retiree group health $ 188,715 $ 188,880 Property-related temporary differences (tax benefits flowed through to customers) 92,676 92,099 Other accrued benefits 26,456 27,503 Net WRAM and MCBA long-term accounts receivable 27,300 16,148 Asset retirement obligations, net 16,148 15,812 Interim rates long-term accounts receivable 4,597 4,605 Tank coating 8,922 8,452 Health care balancing account 96 1,000 Pension cost balancing account 510 — Other regulatory assets 2,056 1,431 Total Regulatory Assets $ 367,476 $ 355,930 Regulatory Liabilities Future tax benefits due to customers $ 33,271 $ 33,231 Conservation program 1,034 584 Pension balancing account 82 695 Net WRAM and MCBA long-term payable 566 611 Other regulatory liabilities 2,992 3,614 Total Regulatory Liabilities $ 37,945 $ 38,735 Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets were $30.7 million as of March 31, 2017 and $30.3 million as of December 31, 2016 . The short-term regulatory assets were primarily net WRAM and MCBA accounts receivable, 2012 General Rate Case (GRC) health cost balancing account receivable, 2014-2015 drought recovery, interim rate memorandum account receivable, and East LA memorandum accounts receivable as of March 31, 2017 and December 31, 2016 . The short-term portions of regulatory liabilities were $8.2 million as of March 31, 2017 and $4.8 million as of December 31, 2016 . As of March 31, 2017 , the short-term regulatory liabilities were primarily net WRAM and MCBA liability balances, refund balance from an interim rates true up authorized prior to 2009 GRC, net refund balances to customers for the pension and conservation programs from the 2012 GRC. As of December 31, 2016 , the short-term regulatory liabilities were primarily net WRAM and MCBA liability balances and net refund balances to customers for the pension and conservation programs from the 2012 GRC

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments 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, 2016. As of March 31, 2017, there were no significant changes from December 31, 2016. 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. Other Legal Matters From time to time, the Company is involved in various disputes and litigation matters that arise in the ordinary course of business. The status of each significant matter is reviewed and assessed for potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount of the range of loss can be estimated, a liability is accrued for the estimated loss in accordance with the accounting standards for contingencies. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the time. While the outcome of these disputes and litigation matters cannot be predicted with any certainty, management does not believe when taking into account existing reserves the ultimate resolution of these matters will materially affect the Company’s financial position, results of operations, or cash flows. As of March 31, 2017 and December 31, 2016, the Company recognized a liability of $6.4 million and $6.0 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.

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	3 Months Ended
	Mar. 31, 2017
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. March 31, 2017 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 557,854 $ 633,901 $ 633,901 Advances for construction 182,815 76,346 76,346 Total $ 740,669 $ — $ 710,247 $ — $ 710,247 December 31, 2016 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 557,953 $ 630,510 $ 630,510 Advances for construction 182,448 74,460 74,460 Total $ 740,401 — $ 704,970 $ — $ 704,970

Condensed Consolidating Financi

Condensed Consolidating Financial Statements	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016, the condensed consolidating statements of income (loss) for the three months ended March 31, 2017 and 2016, and the condensed consolidating statements of cash flows for the three months ended March 31, 2017 and 2016 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 statement of cash flows for the three months ended March 31, 2016 reflects the retrospective adoption of ASU 2016-09 (refer to Note 2 Summary of Significant Accounting Policies for more details). CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of March 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 2,567,142 $ 204,969 $ (7,197 ) $ 2,766,232 Less accumulated depreciation and amortization (849 ) (824,791 ) (54,529 ) 1,942 (878,227 ) Net utility plant 469 1,742,351 150,440 (5,255 ) 1,888,005 Current assets: Cash and cash equivalents 3,985 2,618 5,387 — 11,990 Receivables and unbilled revenue — 93,155 3,888 — 97,043 Receivables from affiliates 19,317 2,653 186 (22,156 ) — Other current assets 395 17,743 1,034 — 19,172 Total current assets 23,697 116,169 10,495 (22,156 ) 128,205 Other assets: Regulatory assets — 363,672 3,804 — 367,476 Investments in affiliates 658,889 — — (658,889 ) — Long-term affiliate notes receivable 25,393 — — (25,393 ) — Other assets 274 52,636 3,744 (42 ) 56,612 Total other assets 684,556 416,308 7,548 (684,324 ) 424,088 TOTAL ASSETS $ 708,722 $ 2,274,828 $ 168,483 $ (711,735 ) $ 2,440,298 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 651,333 $ 587,853 $ 76,333 $ (664,186 ) $ 651,333 Affiliate long-term debt — — 25,393 (25,393 ) — Long-term debt, less current maturities — 520,815 900 — 521,715 Total capitalization 651,333 1,108,668 102,626 (689,579 ) 1,173,048 Current liabilities: Current maturities of long-term debt — 35,636 503 — 36,139 Short-term borrowings 55,100 75,000 — — 130,100 Payables to affiliates 715 64 21,377 (22,156 ) — Accounts payable — 66,254 3,022 — 69,276 Accrued expenses and other liabilities 141 55,368 2,349 — 57,858 Total current liabilities 55,956 232,322 27,251 (22,156 ) 293,373 Unamortized investment tax credits — 1,798 — — 1,798 Deferred income taxes 1,433 297,254 777 — 299,464 Pension and postretirement benefits other than pensions — 224,851 — — 224,851 Regulatory liabilities and other — 81,129 3,189 — 84,318 Advances for construction — 182,268 547 — 182,815 Contributions in aid of construction — 146,538 34,093 — 180,631 TOTAL CAPITALIZATION AND LIABILITIES $ 708,722 $ 2,274,828 $ 168,483 $ (711,735 ) $ 2,440,298 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 2,519,785 $ 203,433 $ (7,197 ) $ 2,717,339 Less accumulated depreciation and amortization (826 ) (805,992 ) (53,163 ) 1,919 (858,062 ) Net utility plant 492 1,713,793 150,270 (5,278 ) 1,859,277 Current assets: Cash and cash equivalents 5,216 13,215 7,061 — 25,492 Receivables and unbilled revenue — 98,850 4,173 — 103,023 Receivables from affiliates 19,566 3,608 8 (23,182 ) — Other current assets 80 12,442 1,032 — 13,554 Total current assets 24,862 128,115 12,274 (23,182 ) 142,069 Other assets: Regulatory assets — 352,139 3,791 — 355,930 Investments in affiliates 666,525 — — (666,525 ) — Long-term affiliate notes receivable 25,744 — — (25,744 ) — Other assets 376 50,361 3,765 (33 ) 54,469 Total other assets 692,645 402,500 7,556 (692,302 ) 410,399 TOTAL ASSETS $ 717,999 $ 2,244,408 $ 170,100 $ (720,762 ) $ 2,411,745 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 659,471 $ 595,003 76,833 $ (671,836 ) $ 659,471 Affiliate long-term debt — — 25,744 (25,744 ) — Long-term debt, less current maturities — 530,850 895 — 531,745 Total capitalization 659,471 1,125,853 103,472 (697,580 ) 1,191,216 Current liabilities: Current maturities of long-term debt — 25,657 551 — 26,208 Short-term borrowings 57,100 40,000 — — 97,100 Payables to affiliates — 539 22,643 (23,182 ) — Accounts payable — 74,998 2,815 — 77,813 Accrued expenses and other liabilities 88 47,232 1,789 — 49,109 Total current liabilities 57,188 188,426 27,798 (23,182 ) 250,230 Unamortized investment tax credits — 1,798 — — 1,798 Deferred income taxes 1,340 296,781 803 — 298,924 Pension and postretirement benefits other than pensions — 222,691 — — 222,691 Regulatory and other liabilities — 80,518 3,130 — 83,648 Advances for construction — 181,907 541 — 182,448 Contributions in aid of construction — 146,434 34,356 — 180,790 TOTAL CAPITALIZATION AND LIABILITIES $ 717,999 $ 2,244,408 $ 170,100 $ (720,762 ) $ 2,411,745 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) For the three months ended March 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 113,342 $ 8,694 $ — $ 122,036 Operating expenses: Operations: Water production costs — 40,189 1,879 — 42,068 Administrative and general — 22,476 2,773 — 25,249 Other operations — 14,400 1,850 (126 ) 16,124 Maintenance — 5,906 206 — 6,112 Depreciation and amortization 23 18,111 1,090 (23 ) 19,201 Income tax benefit (103 ) (946 ) (92 ) 257 (884 ) Property and other taxes (4 ) 5,412 708 — 6,116 Total operating (income) expenses (84 ) 105,548 8,414 108 113,986 Net operating income 84 7,794 280 (108 ) 8,050 Other income and expenses: Non-regulated revenue 481 3,135 454 (608 ) 3,462 Non-regulated expenses — (1,747 ) (307 ) — (2,054 ) Allowance for equity funds used during construction (Note 2) — 779 — — 779 Income tax expense on other income and expenses (196 ) (883 ) (58 ) 248 (889 ) Total other income 285 1,284 89 (360 ) 1,298 Interest: Interest expense 235 8,470 486 (481 ) 8,710 Allowance for borrowed funds used during construction (Note 2) — (476 ) (18 ) — (494 ) Net interest expense 235 7,994 468 (481 ) 8,216 Equity earnings of subsidiaries 998 — — (998 ) — Net income (loss) $ 1,132 $ 1,084 $ (99 ) $ (985 ) $ 1,132 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) For the three months ended March 31, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 113,027 $ 8,700 $ — $ 121,727 Operating expenses: Operations: Water production costs — 39,245 1,824 — 41,069 Administrative and general — 24,943 2,884 — 27,827 Other operations — 17,726 1,702 (126 ) 19,302 Maintenance — 5,840 223 — 6,063 Depreciation and amortization 57 14,915 1,098 (24 ) 16,046 Income tax (benefit) expense (94 ) (1,037 ) (51 ) 257 (925 ) Property and other taxes — 5,390 685 — 6,075 Total operating (income) expenses (37 ) 107,022 8,365 107 115,457 Net operating income 37 6,005 335 (107 ) 6,270 Other income and expenses: Non-regulated revenue 464 3,196 374 (606 ) 3,428 Non-regulated expenses — (2,705 ) (275 ) — (2,980 ) Income tax (expense) benefit on other income and expenses (189 ) (200 ) (39 ) 247 (181 ) Total other income 275 291 60 (359 ) 267 Interest: Interest expense 173 7,899 473 (480 ) 8,065 Less: capitalized interest — (714 ) (16 ) — (730 ) Net interest expense 173 7,185 457 (480 ) 7,335 Equity earnings of subsidiaries (937 ) — — 937 — Net loss $ (798 ) $ (889 ) $ (62 ) $ 951 $ (798 ) CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income (loss) $ 1,132 $ 1,084 $ (99 ) $ (985 ) $ 1,132 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity earnings of subsidiaries (998 ) — — 998 — Dividends received from affiliates 8,634 — — (8,634 ) — Depreciation and amortization 23 18,542 1,116 (23 ) 19,658 Allowance for equity funds used during construction — (779 ) — — (779 ) Changes in value of life insurance contracts — (319 ) — — (319 ) Changes in operating assets and liabilities (67 ) (11,003 ) 696 — (10,374 ) Other changes in noncurrent assets and liabilities 483 4,241 245 10 4,979 Net cash provided by operating activities 9,207 11,766 1,958 (8,634 ) 14,297 Investing activities: Utility plant expenditures — (50,509 ) (1,344 ) — (51,853 ) Changes in affiliate advances 593 955 (175 ) (1,373 ) — Issuance of affiliate short-term borrowings (325 ) — 325 — Reduction of affiliates long-term debt 332 — — (332 ) — Life insurance proceeds — 450 — — 450 Purchase of life insurance contracts — (836 ) — — (836 ) Changes in restricted cash — (260 ) — — (260 ) Net cash provided by (used in) investing activities 600 (50,200 ) (1,519 ) (1,380 ) (52,499 ) Financing Activities: Short-term borrowings — 35,000 — — 35,000 Repayment of short-term borrowings (2,000 ) — — — (2,000 ) Changes in affiliate advances 715 (475 ) (1,613 ) 1,373 — Proceeds from affiliate short-term borrowings — — 325 (325 ) — Repayment of affiliate long-term borrowings — — (332 ) 332 — Repayment of long-term debt — (170 ) (116 ) — (286 ) Advances and contributions in aid of construction — 3,952 23 — 3,975 Refunds of advances for construction — (2,236 ) — — (2,236 ) Repurchase of common stock (1,119 ) — — — (1,119 ) Dividends paid to non-affiliates (8,634 ) — — — (8,634 ) Dividends paid to affiliates — (8,234 ) (400 ) 8,634 — Net cash (used in) provided by financing activities (11,038 ) 27,837 (2,113 ) 10,014 24,700 Change in cash and cash equivalents (1,231 ) (10,597 ) (1,674 ) — (13,502 ) Cash and cash equivalents at beginning of period 5,216 13,215 7,061 — 25,492 Cash and cash equivalents at end of period $ 3,985 $ 2,618 $ 5,387 $ — $ 11,990 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net loss $ (798 ) $ (889 ) $ (62 ) $ 951 $ (798 ) Adjustments to reconcile net loss to net cash provided by operating activities: Equity earnings of subsidiaries 937 — — (937 ) — Dividends received from affiliates 8,258 — — (8,258 ) — Depreciation and amortization 57 15,277 1,144 (24 ) 16,454 Change in value of life insurance contracts — 43 — — 43 Changes in operating assets and liabilities (280 ) 9,414 1,589 — 10,723 Other changes in noncurrent assets and liabilities 621 4,432 7 10 5,070 Net cash provided by operating activities 8,795 28,277 2,678 (8,258 ) 31,492 Investing activities: Utility plant expenditures — (54,944 ) (1,519 ) — (56,463 ) Changes in affiliate advances 40 1,468 (140 ) (1,368 ) — Reduction of affiliate short-term borrowings — 21,500 — (21,500 ) — Issuance of affiliate short-term borrowings (250 ) (20,600 ) — 20,850 — Reduction of affiliates long-term debt 279 — — (279 ) — Life insurance proceeds — 495 — — 495 Purchase of life insurance contracts — (960 ) — — (960 ) Changes in restricted cash — (465 ) — — (465 ) Net cash provided by (used in) investing activities 69 (53,506 ) (1,659 ) (2,297 ) (57,393 ) Financing Activities: Short-term borrowings 21,500 33,000 — — 54,500 Repayment of short-term borrowings (20,615 ) (33,000 ) — — (53,615 ) Changes in affiliate advances — (98 ) (1,270 ) 1,368 — Proceeds from affiliate short-term borrowings 20,600 — 250 (20,850 ) Repayment of affiliate short-term borrowings (21,500 ) — — 21,500 Repayment of affiliates long-term borrowings — — (279 ) 279 — Proceeds from long-term debt, net of expenses — 49,823 216 — 50,039 Repayment of long-term debt — (175 ) (79 ) — (254 ) Advances and contributions in aid for construction — 7,590 18 — 7,608 Refunds of advances for construction — (1,611 ) (1 ) — (1,612 ) Repurchase of common stock (466 ) — — — (466 ) Dividends paid to non-affiliates (8,258 ) — — — (8,258 ) Dividends paid to affiliates — (8,058 ) (200 ) 8,258 — Net cash (used in) provided by financing activities (8,739 ) 47,471 (1,345 ) 10,555 47,942 Change in cash and cash equivalents 125 22,242 (326 ) — 22,041 Cash and cash equivalents at beginning of period 582 4,270 3,985 — 8,837 Cash and cash equivalents at end of period $ 707 $ 26,512 $ 3,659 $ — $ 30,878

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Revenue	Revenue Revenue generally includes monthly cycle customer billings for regulated water and wastewater services at rates authorized by the Commissions (plus 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. 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 guidance for regulated operations. The variance amount represents amounts that will be billed or refunded to customers in the future. In addition to volumetric revenues, the revenue requirements approved by the CPUC include service charges, flat rate charges, and other items not subject to the WRAM. 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 assets and liabilities accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results. The recovery or refund of the WRAM is netted against the MCBA over- or under-recovery for the corresponding district and the deferred net balances are interest bearing at the current 90 day commercial paper rate. Subsequent to calendar year-end, Cal Water files with the CPUC to refund or collect the balance in the accounts. The majority of under-collected net WRAM and MCBA receivable balances are collected over 12 and 18 months. Cal Water defers net WRAM and MCBA operating revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting period in which it was recorded. The deferred net WRAM and MCBA revenue and associated costs were determined using forecasts of customer consumption trends in future reporting periods and the estimated timing of when the CPUC will authorize Cal Water's filings to recover unbilled balances. Deferred revenues and associated costs are recorded in the periods when the collection is within 24 months of the respective reporting period. Customers' meter reads occur on various business days throughout the month. As a result, there are 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 $0.8 million as of March 31, 2017 and December 31, 2016 , respectively. This liability is included in “accrued expenses and other liabilities” on the condensed consolidated balance sheets.
Allowance for Funds Used During Construction	Allowance for Funds Used During Construction The allowance for funds used during construction (AFUDC) represents the capitalized cost of funds used to finance the construction of utility plant. In general, AFUDC is applied to Cal Water construction projects requiring more than one month to complete. No AFUDC is applied to projects funded by customer advances for construction, contributions in aid of construction, or applicable state-revolving fund loans. AFUDC includes the net cost of borrowed funds and a rate of return on other funds when used, and is recovered through water rates as the utility plant is depreciated. Cal Water was authorized by the CPUC to record AFUDC on construction work in progress effective January 1, 2017. Prior to January 1, 2017, the CPUC authorized Cal Water to only record capitalized interest on borrowed funds. Cal Water previously reported the amounts authorized as capitalized interest and a reduced interest expense. The amount of AFUDC related to equity funds during the three months ended March 31, 2017 was $0.8 million and there was $0 million for the three months ended March 31, 2016. The amount of AFUDC related to borrowed funds for the three months ended March 31, 2017 was $0.5 million and the equivalent amount of capitalized interest on borrowed funds was $0.7 million for the three months ended March 31, 2016.
Adoption of New Accounting Standards	Adoption of New Accounting Standard In March 2016, the Financial Accounting Standards Board (FASB) issued updated accounting guidance on simplifying the accounting for share-based payments (ASU 2016-09), which includes the accounting for share-based payment transactions, the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted and implemented the changes to accounting for share-based payments on January 1, 2017 and applied the requirements retrospectively on the statement of cash flows for all periods presented. The Company's forfeiture policy did not change and the Company continues to account for forfeitures when they occur. For the three month period ended March 31, 2017, the Company recorded $0.5 million of income tax benefits in excess compensation costs for share-based compensation which reduced the effective tax rate. The tax-related cash flows resulting from share-based payments were reported as operating activities and the associated cash paid by the company for employee tax withholding transactions were reported as financing activities on the consolidated statement of cash flows. The following table shows the effect of the accounting change to the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2016: Three Months Ended March 31, 2016 Cash Flow Classification As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Other changes in noncurrent assets and liabilities $ 4,604 $ 5,070 $ 466 Net cash provided by operating activities 31,026 31,492 466 Repurchase of common stock — (466 ) (466 ) Net cash provided by financing activities 48,408 47,942 (466 ) New Accounting Standards 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. The Company expects to adopt the new revenue standard using the modified retrospective method and does not expect the ASU to materially impact the timing or recognition of revenue related to the sale and delivery of water to their customers, which is a significant percentage of the Company's revenue. The Company is still evaluating the impact the ASU has on the related revenue 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 2016-02 is effective for annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company will adopt the standard using the modified retrospective method for its existing leases and is currently evaluating the impact of adopting the new lease standard 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. In March 2017, the FASB issued Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). The update requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service cost/credit and actuarial gain/loss, and settlement and curtailment effects, are to be presented as non-operating items. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement . The standard only allows the service cost component to be eligible for capitalization. ASU 2017-07 is effective for annual periods after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact on its consolidated financial statements and related disclosures. The adoption of this guidance will change the Company's financial statement presentation of net benefit costs. However, based on current regulatory authorization, the changes required by the standard are not expected to materially impact the results of operations.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Schedule of effect of the accounting change	The following table shows the effect of the accounting change to the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2016: Three Months Ended March 31, 2016 Cash Flow Classification As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Other changes in noncurrent assets and liabilities $ 4,604 $ 5,070 $ 466 Net cash provided by operating activities 31,026 31,492 466 Repurchase of common stock — (466 ) (466 ) Net cash provided by financing activities 48,408 47,942 (466 )

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of changes in total common stockholders' equity	The Company’s changes in total common stockholders’ equity for the three months ended March 31, 2017 were as follows: Total Common Stockholders’ Equity Balance at December 31, 2016 $ 659,471 Common stock issued — Share-based compensation expense 483 Repurchase of common stock (1,119 ) Common stock dividends declared (8,634 ) Net income 1,132 Balance at March 31, 2017 $ 651,333

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of SARs which were dilutive	There were no shares of Stock Appreciation Rights (SARs) outstanding as of March 31, 2017 and as of March 31, 2016. Three Months Ended March 31 2017 2016 (In thousands, except per share data) Net income (loss) available to common stockholders $ 1,132 $ (798 ) Weighted average common shares outstanding, basic 47,984 47,905 Dilutive SARs (treasury method) — — Weighted average common shares outstanding, dilutive 47,984 47,905 Earnings (loss) per share - basic $ 0.02 $ (0.02 ) Earnings (loss) per share - diluted $ 0.02 $ (0.02 )

Pension Plan and Other Postre23

Pension Plan and Other Postretirement Benefits (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31 Pension Plan Other Benefits 2017 2016 2017 2016 Service cost $ 5,865 $ 5,067 $ 2,019 $ 2,304 Interest cost 5,791 5,453 1,491 1,800 Expected return on plan assets (6,029 ) (5,454 ) (1,218 ) (1,046 ) Amortization of prior service cost 1,445 1,555 11 11 Recognized net actuarial loss 1,752 1,293 649 1,261 Net periodic benefit cost $ 8,824 $ 7,914 $ 2,952 $ 4,330

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of provision for income taxes	The provision for income taxes consists of the following: Three Months Ended March 31 2017 2016 Income tax provision (benefit) $ 5 $ (744 )

Regulatory Assets and Liabili25

Regulatory Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Regulated Operations [Abstract]
Schedule of regulatory assets and liabilities	Regulatory assets and liabilities were comprised of the following as of March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Regulatory Assets Pension and retiree group health $ 188,715 $ 188,880 Property-related temporary differences (tax benefits flowed through to customers) 92,676 92,099 Other accrued benefits 26,456 27,503 Net WRAM and MCBA long-term accounts receivable 27,300 16,148 Asset retirement obligations, net 16,148 15,812 Interim rates long-term accounts receivable 4,597 4,605 Tank coating 8,922 8,452 Health care balancing account 96 1,000 Pension cost balancing account 510 — Other regulatory assets 2,056 1,431 Total Regulatory Assets $ 367,476 $ 355,930 Regulatory Liabilities Future tax benefits due to customers $ 33,271 $ 33,231 Conservation program 1,034 584 Pension balancing account 82 695 Net WRAM and MCBA long-term payable 566 611 Other regulatory liabilities 2,992 3,614 Total Regulatory Liabilities $ 37,945 $ 38,735

Fair Value of Financial Asset26

Fair Value of Financial Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
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. March 31, 2017 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 557,854 $ 633,901 $ 633,901 Advances for construction 182,815 76,346 76,346 Total $ 740,669 $ — $ 710,247 $ — $ 710,247 December 31, 2016 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 557,953 $ 630,510 $ 630,510 Advances for construction 182,448 74,460 74,460 Total $ 740,401 — $ 704,970 $ — $ 704,970

Condensed Consolidating Finan27

Condensed Consolidating Financial Statements (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 2,567,142 $ 204,969 $ (7,197 ) $ 2,766,232 Less accumulated depreciation and amortization (849 ) (824,791 ) (54,529 ) 1,942 (878,227 ) Net utility plant 469 1,742,351 150,440 (5,255 ) 1,888,005 Current assets: Cash and cash equivalents 3,985 2,618 5,387 — 11,990 Receivables and unbilled revenue — 93,155 3,888 — 97,043 Receivables from affiliates 19,317 2,653 186 (22,156 ) — Other current assets 395 17,743 1,034 — 19,172 Total current assets 23,697 116,169 10,495 (22,156 ) 128,205 Other assets: Regulatory assets — 363,672 3,804 — 367,476 Investments in affiliates 658,889 — — (658,889 ) — Long-term affiliate notes receivable 25,393 — — (25,393 ) — Other assets 274 52,636 3,744 (42 ) 56,612 Total other assets 684,556 416,308 7,548 (684,324 ) 424,088 TOTAL ASSETS $ 708,722 $ 2,274,828 $ 168,483 $ (711,735 ) $ 2,440,298 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 651,333 $ 587,853 $ 76,333 $ (664,186 ) $ 651,333 Affiliate long-term debt — — 25,393 (25,393 ) — Long-term debt, less current maturities — 520,815 900 — 521,715 Total capitalization 651,333 1,108,668 102,626 (689,579 ) 1,173,048 Current liabilities: Current maturities of long-term debt — 35,636 503 — 36,139 Short-term borrowings 55,100 75,000 — — 130,100 Payables to affiliates 715 64 21,377 (22,156 ) — Accounts payable — 66,254 3,022 — 69,276 Accrued expenses and other liabilities 141 55,368 2,349 — 57,858 Total current liabilities 55,956 232,322 27,251 (22,156 ) 293,373 Unamortized investment tax credits — 1,798 — — 1,798 Deferred income taxes 1,433 297,254 777 — 299,464 Pension and postretirement benefits other than pensions — 224,851 — — 224,851 Regulatory liabilities and other — 81,129 3,189 — 84,318 Advances for construction — 182,268 547 — 182,815 Contributions in aid of construction — 146,538 34,093 — 180,631 TOTAL CAPITALIZATION AND LIABILITIES $ 708,722 $ 2,274,828 $ 168,483 $ (711,735 ) $ 2,440,298 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 2,519,785 $ 203,433 $ (7,197 ) $ 2,717,339 Less accumulated depreciation and amortization (826 ) (805,992 ) (53,163 ) 1,919 (858,062 ) Net utility plant 492 1,713,793 150,270 (5,278 ) 1,859,277 Current assets: Cash and cash equivalents 5,216 13,215 7,061 — 25,492 Receivables and unbilled revenue — 98,850 4,173 — 103,023 Receivables from affiliates 19,566 3,608 8 (23,182 ) — Other current assets 80 12,442 1,032 — 13,554 Total current assets 24,862 128,115 12,274 (23,182 ) 142,069 Other assets: Regulatory assets — 352,139 3,791 — 355,930 Investments in affiliates 666,525 — — (666,525 ) — Long-term affiliate notes receivable 25,744 — — (25,744 ) — Other assets 376 50,361 3,765 (33 ) 54,469 Total other assets 692,645 402,500 7,556 (692,302 ) 410,399 TOTAL ASSETS $ 717,999 $ 2,244,408 $ 170,100 $ (720,762 ) $ 2,411,745 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 659,471 $ 595,003 76,833 $ (671,836 ) $ 659,471 Affiliate long-term debt — — 25,744 (25,744 ) — Long-term debt, less current maturities — 530,850 895 — 531,745 Total capitalization 659,471 1,125,853 103,472 (697,580 ) 1,191,216 Current liabilities: Current maturities of long-term debt — 25,657 551 — 26,208 Short-term borrowings 57,100 40,000 — — 97,100 Payables to affiliates — 539 22,643 (23,182 ) — Accounts payable — 74,998 2,815 — 77,813 Accrued expenses and other liabilities 88 47,232 1,789 — 49,109 Total current liabilities 57,188 188,426 27,798 (23,182 ) 250,230 Unamortized investment tax credits — 1,798 — — 1,798 Deferred income taxes 1,340 296,781 803 — 298,924 Pension and postretirement benefits other than pensions — 222,691 — — 222,691 Regulatory and other liabilities — 80,518 3,130 — 83,648 Advances for construction — 181,907 541 — 182,448 Contributions in aid of construction — 146,434 34,356 — 180,790 TOTAL CAPITALIZATION AND LIABILITIES $ 717,999 $ 2,244,408 $ 170,100 $ (720,762 ) $ 2,411,745
Schedule of Condensed Consolidating Statement of Income	CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) For the three months ended March 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 113,342 $ 8,694 $ — $ 122,036 Operating expenses: Operations: Water production costs — 40,189 1,879 — 42,068 Administrative and general — 22,476 2,773 — 25,249 Other operations — 14,400 1,850 (126 ) 16,124 Maintenance — 5,906 206 — 6,112 Depreciation and amortization 23 18,111 1,090 (23 ) 19,201 Income tax benefit (103 ) (946 ) (92 ) 257 (884 ) Property and other taxes (4 ) 5,412 708 — 6,116 Total operating (income) expenses (84 ) 105,548 8,414 108 113,986 Net operating income 84 7,794 280 (108 ) 8,050 Other income and expenses: Non-regulated revenue 481 3,135 454 (608 ) 3,462 Non-regulated expenses — (1,747 ) (307 ) — (2,054 ) Allowance for equity funds used during construction (Note 2) — 779 — — 779 Income tax expense on other income and expenses (196 ) (883 ) (58 ) 248 (889 ) Total other income 285 1,284 89 (360 ) 1,298 Interest: Interest expense 235 8,470 486 (481 ) 8,710 Allowance for borrowed funds used during construction (Note 2) — (476 ) (18 ) — (494 ) Net interest expense 235 7,994 468 (481 ) 8,216 Equity earnings of subsidiaries 998 — — (998 ) — Net income (loss) $ 1,132 $ 1,084 $ (99 ) $ (985 ) $ 1,132 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) For the three months ended March 31, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 113,027 $ 8,700 $ — $ 121,727 Operating expenses: Operations: Water production costs — 39,245 1,824 — 41,069 Administrative and general — 24,943 2,884 — 27,827 Other operations — 17,726 1,702 (126 ) 19,302 Maintenance — 5,840 223 — 6,063 Depreciation and amortization 57 14,915 1,098 (24 ) 16,046 Income tax (benefit) expense (94 ) (1,037 ) (51 ) 257 (925 ) Property and other taxes — 5,390 685 — 6,075 Total operating (income) expenses (37 ) 107,022 8,365 107 115,457 Net operating income 37 6,005 335 (107 ) 6,270 Other income and expenses: Non-regulated revenue 464 3,196 374 (606 ) 3,428 Non-regulated expenses — (2,705 ) (275 ) — (2,980 ) Income tax (expense) benefit on other income and expenses (189 ) (200 ) (39 ) 247 (181 ) Total other income 275 291 60 (359 ) 267 Interest: Interest expense 173 7,899 473 (480 ) 8,065 Less: capitalized interest — (714 ) (16 ) — (730 ) Net interest expense 173 7,185 457 (480 ) 7,335 Equity earnings of subsidiaries (937 ) — — 937 — Net loss $ (798 ) $ (889 ) $ (62 ) $ 951 $ (798 )
Schedule of Condensed Consolidating Statement of Cash Flows	CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income (loss) $ 1,132 $ 1,084 $ (99 ) $ (985 ) $ 1,132 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity earnings of subsidiaries (998 ) — — 998 — Dividends received from affiliates 8,634 — — (8,634 ) — Depreciation and amortization 23 18,542 1,116 (23 ) 19,658 Allowance for equity funds used during construction — (779 ) — — (779 ) Changes in value of life insurance contracts — (319 ) — — (319 ) Changes in operating assets and liabilities (67 ) (11,003 ) 696 — (10,374 ) Other changes in noncurrent assets and liabilities 483 4,241 245 10 4,979 Net cash provided by operating activities 9,207 11,766 1,958 (8,634 ) 14,297 Investing activities: Utility plant expenditures — (50,509 ) (1,344 ) — (51,853 ) Changes in affiliate advances 593 955 (175 ) (1,373 ) — Issuance of affiliate short-term borrowings (325 ) — 325 — Reduction of affiliates long-term debt 332 — — (332 ) — Life insurance proceeds — 450 — — 450 Purchase of life insurance contracts — (836 ) — — (836 ) Changes in restricted cash — (260 ) — — (260 ) Net cash provided by (used in) investing activities 600 (50,200 ) (1,519 ) (1,380 ) (52,499 ) Financing Activities: Short-term borrowings — 35,000 — — 35,000 Repayment of short-term borrowings (2,000 ) — — — (2,000 ) Changes in affiliate advances 715 (475 ) (1,613 ) 1,373 — Proceeds from affiliate short-term borrowings — — 325 (325 ) — Repayment of affiliate long-term borrowings — — (332 ) 332 — Repayment of long-term debt — (170 ) (116 ) — (286 ) Advances and contributions in aid of construction — 3,952 23 — 3,975 Refunds of advances for construction — (2,236 ) — — (2,236 ) Repurchase of common stock (1,119 ) — — — (1,119 ) Dividends paid to non-affiliates (8,634 ) — — — (8,634 ) Dividends paid to affiliates — (8,234 ) (400 ) 8,634 — Net cash (used in) provided by financing activities (11,038 ) 27,837 (2,113 ) 10,014 24,700 Change in cash and cash equivalents (1,231 ) (10,597 ) (1,674 ) — (13,502 ) Cash and cash equivalents at beginning of period 5,216 13,215 7,061 — 25,492 Cash and cash equivalents at end of period $ 3,985 $ 2,618 $ 5,387 $ — $ 11,990 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2016 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net loss $ (798 ) $ (889 ) $ (62 ) $ 951 $ (798 ) Adjustments to reconcile net loss to net cash provided by operating activities: Equity earnings of subsidiaries 937 — — (937 ) — Dividends received from affiliates 8,258 — — (8,258 ) — Depreciation and amortization 57 15,277 1,144 (24 ) 16,454 Change in value of life insurance contracts — 43 — — 43 Changes in operating assets and liabilities (280 ) 9,414 1,589 — 10,723 Other changes in noncurrent assets and liabilities 621 4,432 7 10 5,070 Net cash provided by operating activities 8,795 28,277 2,678 (8,258 ) 31,492 Investing activities: Utility plant expenditures — (54,944 ) (1,519 ) — (56,463 ) Changes in affiliate advances 40 1,468 (140 ) (1,368 ) — Reduction of affiliate short-term borrowings — 21,500 — (21,500 ) — Issuance of affiliate short-term borrowings (250 ) (20,600 ) — 20,850 — Reduction of affiliates long-term debt 279 — — (279 ) — Life insurance proceeds — 495 — — 495 Purchase of life insurance contracts — (960 ) — — (960 ) Changes in restricted cash — (465 ) — — (465 ) Net cash provided by (used in) investing activities 69 (53,506 ) (1,659 ) (2,297 ) (57,393 ) Financing Activities: Short-term borrowings 21,500 33,000 — — 54,500 Repayment of short-term borrowings (20,615 ) (33,000 ) — — (53,615 ) Changes in affiliate advances — (98 ) (1,270 ) 1,368 — Proceeds from affiliate short-term borrowings 20,600 — 250 (20,850 ) Repayment of affiliate short-term borrowings (21,500 ) — — 21,500 Repayment of affiliates long-term borrowings — — (279 ) 279 — Proceeds from long-term debt, net of expenses — 49,823 216 — 50,039 Repayment of long-term debt — (175 ) (79 ) — (254 ) Advances and contributions in aid for construction — 7,590 18 — 7,608 Refunds of advances for construction — (1,611 ) (1 ) — (1,612 ) Repurchase of common stock (466 ) — — — (466 ) Dividends paid to non-affiliates (8,258 ) — — — (8,258 ) Dividends paid to affiliates — (8,058 ) (200 ) 8,258 — Net cash (used in) provided by financing activities (8,739 ) 47,471 (1,345 ) 10,555 47,942 Change in cash and cash equivalents 125 22,242 (326 ) — 22,041 Cash and cash equivalents at beginning of period 582 4,270 3,985 — 8,837 Cash and cash equivalents at end of period $ 707 $ 26,512 $ 3,659 $ — $ 30,878

Organization and Operations a28

Organization and Operations and Basis of Presentation (Details)	3 Months Ended
	Mar. 31, 2017segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Summary of Significant Accounting Policies [Line Items]
Markup for return or profit for cost-recovery expenses	$ 0
Maturity period of commercial paper	90 days
Minimum collection period after net receivable balances were recognized in which the Company defers net WRAM and MCBA operating revenues and associated costs	24 months
Maximum collection period in which deferred net WRAM and MCBA revenues and associated costs will be recognized	24 months
Unearned revenue liability	$ 800,000		$ 800,000
AFDUC related to borrowed funds	779,000	$ 0
Capitalized interest on borrowed funds	500,000	700,000
Income tax benefits in excess compensation costs for share-based compensation	500,000
Other changes in noncurrent assets and liabilities	(4,979,000)	(5,070,000)
Net cash provided by operating activities	14,297,000	31,492,000
Repurchase of common stock	(1,119,000)	(466,000)
Net cash provided by financing activities	$ 24,700,000	$ 47,942,000
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	18 months
As Reported on Form 10-Q
Summary of Significant Accounting Policies [Line Items]
Other changes in noncurrent assets and liabilities	$ 4,604,000
Net cash provided by operating activities	31,026,000
Repurchase of common stock	0
Net cash provided by financing activities	48,408,000
Increase (Decrease) from Retrospective Adoption
Summary of Significant Accounting Policies [Line Items]
Other changes in noncurrent assets and liabilities	466,000
Net cash provided by operating activities	466,000
Repurchase of common stock	(466,000)
Net cash provided by financing activities	(466,000)
Accounting Standards Update 2016-09
Summary of Significant Accounting Policies [Line Items]
Other changes in noncurrent assets and liabilities	5,070,000
Net cash provided by operating activities	31,492,000
Repurchase of common stock	(466,000)
Net cash provided by financing activities	$ 47,942,000

Stock-based Compensation (Detai

Stock-based Compensation (Details) - Equity Incentive Plan - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock-based Compensation
Recorded compensation costs for the RSAs and RSUs	$ 0.7	$ 0.7
Restricted Stock Awards (RSAs)
Stock-based Compensation
Weighted average grant date fair value (in dollars per share)	$ 36.75	$ 25.17
Restricted Stock Awards (RSAs) | Officers and Directors
Stock-based Compensation
Awards granted (in shares)	48,717	72,317
Awards cancelled (in shares)	10,902	7,731
Restricted Stock Awards (RSAs) | Employees
Stock-based Compensation
Vesting period	36 months
Restricted Stock Awards (RSAs) | Director
Stock-based Compensation
Vesting period	12 months
Performance Shares | Officers and Directors
Stock-based Compensation
Awards granted (in shares)	31,389	43,659
Restricted Stock Unit Award (RSUs) | Officers and Directors
Stock-based Compensation
Awards granted (in shares)	38,709	28,424
Awards cancelled (in shares)	19,735	6,602
Restricted Stock Unit Award (RSUs) | Officer
Stock-based Compensation
Expiration period of award	3 years
Weighted average grant date fair value (in dollars per share)	$ 36.75	$ 25.17

Equity (Details)

Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Changes in total common stockholders' equity
Balance at December 31, 2016	$ 659,471
Common stock issued	0
Share-based compensation expense	483
Repurchase of common stock	(1,119)
Common stock dividends declared	(8,634)
Net income (loss)	1,132	$ (798)
Balance at March 31, 2017	$ 651,333

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net income (loss) available to common stockholders	$ 1,132	$ (798)
Weighted average common shares outstanding, basic (in shares)	47,984,000	47,905,000
Dilutive SARs (treasury method) (in shares)	0	0
Weighed average common shares outstanding, dilutive (in shares)	47,984,000	47,905,000
Earnings (loss) per share - basic (in dollars per share)	$ 0.02	$ (0.02)
Earnings (loss) per share - diluted (in dollars per share)	$ 0.02	$ (0.02)
Net Income Per Share Calculations
Dilutive SARs (treasury method) (in shares)	0	0
Stock Appreciation Rights (SARs)
Earnings Per Share [Abstract]
Dilutive SARs (treasury method) (in shares)	0	0
Net Income Per Share Calculations
Dilutive SARs (treasury method) (in shares)	0	0

Pension Plan and Other Postre33

Pension Plan and Other Postretirement Benefits (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Pension Plan
Pension Plan and Other Postretirement Benefits
Employer cash contributions	$ 7,500,000	$ 7,300,000
Estimated cash contributions in the current fiscal year	29,500,000
Components of the pension plans and other postretirement benefits
Service cost	5,865,000	5,067,000
Interest cost	5,791,000	5,453,000
Expected return on plan assets	(6,029,000)	(5,454,000)
Amortization of prior service cost	1,445,000	1,555,000
Recognized net actuarial loss	1,752,000	1,293,000
Net periodic benefit cost	8,824,000	7,914,000
Other Benefits
Pension Plan and Other Postretirement Benefits
Employer cash contributions	0	0
Estimated cash contributions in the current fiscal year	9,300,000
Components of the pension plans and other postretirement benefits
Service cost	2,019,000	2,304,000
Interest cost	1,491,000	1,800,000
Expected return on plan assets	(1,218,000)	(1,046,000)
Amortization of prior service cost	11,000	11,000
Recognized net actuarial loss	649,000	1,261,000
Net periodic benefit cost	$ 2,952,000	$ 4,330,000

Short-term and Long-term Borr34

Short-term and Long-term Borrowings (Details) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Proceeds from long-term debt, net of expenses		$ 0	$ 50,039,000
Cal Water
Debt Instrument [Line Items]
Proceeds from long-term debt, net of expenses			49,823,000
Parent Company
Debt Instrument [Line Items]
Proceeds from long-term debt, net of expenses			$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Average borrowing rate		1.60%	1.27%
Revolving Credit Facility | Cal Water
Debt Instrument [Line Items]
Repayment of debt	$ 48,600,000
Outstanding borrowings		$ 75,000,000		$ 40,000,000
Revolving Credit Facility | Parent Company
Debt Instrument [Line Items]
Outstanding borrowings		$ 55,100,000		$ 57,100,000
Secured Debt | Cal Water
Debt Instrument [Line Items]
Debt issuance cost	300,000		$ 300,000
Proceeds from long-term debt, net of expenses	49,700,000
Secured Debt | First Mortgage Bonds Issue 2 | Cal Water
Debt Instrument [Line Items]
Debt issued	50,000,000		50,000,000
Secured Debt | Series SSS Bond | Cal Water
Debt Instrument [Line Items]
Debt issued	$ 40,000,000		$ 40,000,000
Interest rate	4.41%		4.41%
Secured Debt | Series TTT Bond | Cal Water
Debt Instrument [Line Items]
Debt issued	$ 10,000,000		$ 10,000,000
Interest rate	4.61%		4.61%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Taxes [Line Items]
Income tax provision (benefit)	$ 5	$ (744)
Tax benefit associated with equity awards	500
Unrecognized tax benefits	10,500			$ 10,500
Tax benefits that, if recognized, would affect the effective tax rate	$ 2,300			$ 2,300
Forecast
Income Taxes [Line Items]
Effective tax rate estimate			37.00%

Regulatory Assets and Liabili36

Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Regulatory Assets and Liabilities
Regulatory assets	$ 367,476	$ 355,930
Regulatory liabilities	37,945	38,735
Short-term portion of the regulatory assets	30,661	30,332
Short-term portion of the regulatory liabilities	8,197	4,759
Tax benefits to ratepayers
Regulatory Assets and Liabilities
Regulatory liabilities	33,271	33,231
Conservation program
Regulatory Assets and Liabilities
Regulatory liabilities	1,034	584
Pension balancing account
Regulatory Assets and Liabilities
Regulatory liabilities	82	695
Net WRAM and MCBA long-term payable
Regulatory Assets and Liabilities
Regulatory liabilities	566	611
Other regulatory liabilities
Regulatory Assets and Liabilities
Regulatory liabilities	2,992	3,614
Pension and retiree group health
Regulatory Assets and Liabilities
Regulatory assets	188,715	188,880
Tax benefits to ratepayers
Regulatory Assets and Liabilities
Regulatory assets	92,676	92,099
Other accrued benefits
Regulatory Assets and Liabilities
Regulatory assets	26,456	27,503
Net WRAM and MCBA long-term accounts receivable
Regulatory Assets and Liabilities
Regulatory assets	27,300	16,148
Asset retirement obligations, net
Regulatory Assets and Liabilities
Regulatory assets	16,148	15,812
Interim rates long-term accounts receivable
Regulatory Assets and Liabilities
Regulatory assets	4,597	4,605
Tank coating
Regulatory Assets and Liabilities
Regulatory assets	8,922	8,452
Health care balancing account
Regulatory Assets and Liabilities
Regulatory assets	96	1,000
Pension cost balancing account
Regulatory Assets and Liabilities
Regulatory assets	510	0
Other regulatory assets
Regulatory Assets and Liabilities
Regulatory assets	$ 2,056	$ 1,431

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingency loss recognized liability	$ 6.4	$ 6

Fair Value of Financial Asset38

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair Value of Financial Assets and Liabilities
Risk premium (as a percent)	1.70%
Advances for construction	$ 182,815	$ 182,448
Level 1
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities
Advances for construction
Total	0	0
Level 2
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	633,901	630,510
Advances for construction	76,346	74,460
Total	710,247	704,970
Level 3
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities
Advances for construction
Total	0	0
Cost
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	557,854	557,953
Advances for construction	182,815	182,448
Total	740,669	740,401
Total
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	633,901	630,510
Advances for construction	76,346	74,460
Total	$ 710,247	$ 704,970

Condensed Consolidating Finan39

Condensed Consolidating Financial Statements (Details) - USD ($)	Mar. 31, 2017	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 Finan40

Condensed Consolidating Financial Statements (Details 2) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Utility plant:
Utility plant	$ 2,766,232	$ 2,717,339
Less accumulated depreciation and amortization	(878,227)	(858,062)
Net utility plant	1,888,005	1,859,277
Current assets:
Cash and cash equivalents	11,990	25,492	$ 30,878	$ 8,837
Receivables and unbilled revenue, net	97,043
Receivables		103,023
Receivables from affiliates	0	0
Other current assets	19,172	13,554
Total current assets	128,205	142,069
Other assets:
Regulatory assets	367,476	355,930
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	56,612	54,469
Total other assets	424,088	410,399
TOTAL ASSETS	2,440,298	2,411,745
Capitalization:
Common stockholders' equity	651,333	659,471
Affiliate long-term debt	0	0
Long-term debt, less current maturities	521,715	531,745
Total capitalization	1,173,048	1,191,216
Current liabilities:
Current maturities of long-term debt	36,139	26,208
Short-term borrowings	130,100	97,100
Payables to affiliates	0	0
Accounts payable	69,276	77,813
Accrued expenses and other liabilities	57,858	49,109
Total current liabilities	293,373	250,230
Unamortized investment tax credits	1,798	1,798
Deferred income taxes	299,464	298,924
Pension and postretirement benefits other than pensions	224,851	222,691
Regulatory liabilities and other	84,318	83,648
Advances for construction	182,815	182,448
Contributions in aid of construction	180,631	180,790
TOTAL CAPITALIZATION AND LIABILITIES	2,440,298	2,411,745
Consolidating Adjustments
Utility plant:
Utility plant	(7,197)	(7,197)
Less accumulated depreciation and amortization	1,942	1,919
Net utility plant	(5,255)	(5,278)
Current assets:
Cash and cash equivalents	0	0	0	0
Receivables and unbilled revenue, net	0
Receivables		0
Receivables from affiliates	(22,156)	(23,182)
Other current assets	0	0
Total current assets	(22,156)	(23,182)
Other assets:
Regulatory assets	0	0
Investments in affiliates	(658,889)	(666,525)
Long-term affiliate notes receivable	(25,393)	(25,744)
Other assets	(42)	(33)
Total other assets	(684,324)	(692,302)
TOTAL ASSETS	(711,735)	(720,762)
Capitalization:
Common stockholders' equity	(664,186)	(671,836)
Affiliate long-term debt	(25,393)	(25,744)
Long-term debt, less current maturities	0	0
Total capitalization	(689,579)	(697,580)
Current liabilities:
Current maturities of long-term debt	0	0
Short-term borrowings	0	0
Payables to affiliates	(22,156)	(23,182)
Accounts payable	0	0
Accrued expenses and other liabilities	0	0
Total current liabilities	(22,156)	(23,182)
Unamortized investment tax credits	0	0
Deferred income taxes	0	0
Pension and postretirement benefits other than pensions	0	0
Regulatory liabilities and other	0	0
Advances for construction	0	0
Contributions in aid of construction	0	0
TOTAL CAPITALIZATION AND LIABILITIES	(711,735)	(720,762)
Parent Company
Utility plant:
Utility plant	1,318	1,318
Less accumulated depreciation and amortization	(849)	(826)
Net utility plant	469	492
Current assets:
Cash and cash equivalents	3,985	5,216	707	582
Receivables and unbilled revenue, net	0
Receivables		0
Receivables from affiliates	19,317	19,566
Other current assets	395	80
Total current assets	23,697	24,862
Other assets:
Regulatory assets	0	0
Investments in affiliates	658,889	666,525
Long-term affiliate notes receivable	25,393	25,744
Other assets	274	376
Total other assets	684,556	692,645
TOTAL ASSETS	708,722	717,999
Capitalization:
Common stockholders' equity	651,333	659,471
Affiliate long-term debt	0	0
Long-term debt, less current maturities	0	0
Total capitalization	651,333	659,471
Current liabilities:
Current maturities of long-term debt	0	0
Short-term borrowings	55,100	57,100
Payables to affiliates	715	0
Accounts payable	0	0
Accrued expenses and other liabilities	141	88
Total current liabilities	55,956	57,188
Unamortized investment tax credits	0	0
Deferred income taxes	1,433	1,340
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	708,722	717,999
Cal Water
Utility plant:
Utility plant	2,567,142	2,519,785
Less accumulated depreciation and amortization	(824,791)	(805,992)
Net utility plant	1,742,351	1,713,793
Current assets:
Cash and cash equivalents	2,618	13,215	26,512	4,270
Receivables and unbilled revenue, net	93,155
Receivables		98,850
Receivables from affiliates	2,653	3,608
Other current assets	17,743	12,442
Total current assets	116,169	128,115
Other assets:
Regulatory assets	363,672	352,139
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	52,636	50,361
Total other assets	416,308	402,500
TOTAL ASSETS	2,274,828	2,244,408
Capitalization:
Common stockholders' equity	587,853	595,003
Affiliate long-term debt	0	0
Long-term debt, less current maturities	520,815	530,850
Total capitalization	1,108,668	1,125,853
Current liabilities:
Current maturities of long-term debt	35,636	25,657
Short-term borrowings	75,000	40,000
Payables to affiliates	64	539
Accounts payable	66,254	74,998
Accrued expenses and other liabilities	55,368	47,232
Total current liabilities	232,322	188,426
Unamortized investment tax credits	1,798	1,798
Deferred income taxes	297,254	296,781
Pension and postretirement benefits other than pensions	224,851	222,691
Regulatory liabilities and other	81,129	80,518
Advances for construction	182,268	181,907
Contributions in aid of construction	146,538	146,434
TOTAL CAPITALIZATION AND LIABILITIES	2,274,828	2,244,408
All Other Subsidiaries
Utility plant:
Utility plant	204,969	203,433
Less accumulated depreciation and amortization	(54,529)	(53,163)
Net utility plant	150,440	150,270
Current assets:
Cash and cash equivalents	5,387	7,061	$ 3,659	$ 3,985
Receivables and unbilled revenue, net	3,888
Receivables		4,173
Receivables from affiliates	186	8
Other current assets	1,034	1,032
Total current assets	10,495	12,274
Other assets:
Regulatory assets	3,804	3,791
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	3,744	3,765
Total other assets	7,548	7,556
TOTAL ASSETS	168,483	170,100
Capitalization:
Common stockholders' equity	76,333	76,833
Affiliate long-term debt	25,393	25,744
Long-term debt, less current maturities	900	895
Total capitalization	102,626	103,472
Current liabilities:
Current maturities of long-term debt	503	551
Short-term borrowings	0	0
Payables to affiliates	21,377	22,643
Accounts payable	3,022	2,815
Accrued expenses and other liabilities	2,349	1,789
Total current liabilities	27,251	27,798
Unamortized investment tax credits	0	0
Deferred income taxes	777	803
Pension and postretirement benefits other than pensions	0	0
Regulatory liabilities and other	3,189	3,130
Advances for construction	547	541
Contributions in aid of construction	34,093	34,356
TOTAL CAPITALIZATION AND LIABILITIES	$ 168,483	$ 170,100

Condensed Consolidating Finan41

Condensed Consolidating Financial Statements (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidating Financial Statements
Operating revenue	$ 122,036	$ 121,727
Operations:
Water production costs	42,068	41,069
Administrative and general	25,249	27,827
Other operations	16,124	19,302
Maintenance	6,112	6,063
Depreciation and amortization	19,201	16,046
Income tax (benefit) expense	(884)	(925)
Property and other taxes	6,116	6,075
Total operating expenses	113,986	115,457
Net operating income (loss)	8,050	6,270
Other income and expenses:
Non-regulated revenue	3,462	3,428
Non-regulated expenses	(2,054)	(2,980)
Allowance for equity funds used during construction (Note 2)	779	0
Income tax expense on other income and expenses	(889)	(181)
Net other income	1,298	267
Interest:
Interest expense	8,710	8,065
Allowance for borrowed funds used during construction (Note 2)	(494)	(730)
Net interest expense	8,216	7,335
Equity earnings of subsidiaries	0	0
Net income (loss)	1,132	(798)
Consolidating Adjustments
Condensed Consolidating Financial Statements
Operating revenue	0	0
Operations:
Water production costs	0	0
Administrative and general	0	0
Other operations	(126)	(126)
Maintenance	0	0
Depreciation and amortization	(23)	(24)
Income tax (benefit) expense	257	257
Property and other taxes	0	0
Total operating expenses	108	107
Net operating income (loss)	(108)	(107)
Other income and expenses:
Non-regulated revenue	(608)	(606)
Non-regulated expenses	0	0
Allowance for equity funds used during construction (Note 2)	0
Income tax expense on other income and expenses	248	247
Net other income	(360)	(359)
Interest:
Interest expense	(481)	(480)
Allowance for borrowed funds used during construction (Note 2)	0	0
Net interest expense	(481)	(480)
Equity earnings of subsidiaries	(998)	937
Net income (loss)	(985)	951
Parent Company
Condensed Consolidating Financial Statements
Operating revenue	0	0
Operations:
Water production costs	0	0
Administrative and general	0	0
Other operations	0	0
Maintenance	0	0
Depreciation and amortization	23	57
Income tax (benefit) expense	(103)	(94)
Property and other taxes	(4)	0
Total operating expenses	(84)	(37)
Net operating income (loss)	84	37
Other income and expenses:
Non-regulated revenue	481	464
Non-regulated expenses	0	0
Allowance for equity funds used during construction (Note 2)	0
Income tax expense on other income and expenses	(196)	(189)
Net other income	285	275
Interest:
Interest expense	235	173
Allowance for borrowed funds used during construction (Note 2)	0	0
Net interest expense	235	173
Equity earnings of subsidiaries	998	(937)
Net income (loss)	1,132	(798)
Cal Water
Condensed Consolidating Financial Statements
Operating revenue	113,342	113,027
Operations:
Water production costs	40,189	39,245
Administrative and general	22,476	24,943
Other operations	14,400	17,726
Maintenance	5,906	5,840
Depreciation and amortization	18,111	14,915
Income tax (benefit) expense	(946)	(1,037)
Property and other taxes	5,412	5,390
Total operating expenses	105,548	107,022
Net operating income (loss)	7,794	6,005
Other income and expenses:
Non-regulated revenue	3,135	3,196
Non-regulated expenses	(1,747)	(2,705)
Allowance for equity funds used during construction (Note 2)	779
Income tax expense on other income and expenses	(883)	(200)
Net other income	1,284	291
Interest:
Interest expense	8,470	7,899
Allowance for borrowed funds used during construction (Note 2)	(476)	(714)
Net interest expense	7,994	7,185
Equity earnings of subsidiaries	0	0
Net income (loss)	1,084	(889)
All Other Subsidiaries
Condensed Consolidating Financial Statements
Operating revenue	8,694	8,700
Operations:
Water production costs	1,879	1,824
Administrative and general	2,773	2,884
Other operations	1,850	1,702
Maintenance	206	223
Depreciation and amortization	1,090	1,098
Income tax (benefit) expense	(92)	(51)
Property and other taxes	708	685
Total operating expenses	8,414	8,365
Net operating income (loss)	280	335
Other income and expenses:
Non-regulated revenue	454	374
Non-regulated expenses	(307)	(275)
Allowance for equity funds used during construction (Note 2)	0
Income tax expense on other income and expenses	(58)	(39)
Net other income	89	60
Interest:
Interest expense	486	473
Allowance for borrowed funds used during construction (Note 2)	(18)	(16)
Net interest expense	468	457
Equity earnings of subsidiaries	0	0
Net income (loss)	$ (99)	$ (62)

Condensed Consolidating Finan42

Condensed Consolidating Financial Statements (Details 4) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net income (loss)	$ 1,132	$ (798)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity earnings of subsidiaries	0	0
Dividends received from affiliates	0	0
Depreciation and amortization	19,658	16,454
Allowance for equity funds used during construction	(779)	0
Change in value of life insurance contracts	(319)	43
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:	(10,374)	10,723
Other changes in noncurrent assets and liabilities	4,979	5,070
Net cash provided by operating activities	14,297	31,492
Investing activities:
Utility plant expenditures	(51,853)	(56,463)
Changes in affiliate advances	0	0
Reduction of affiliate short-term borrowings		0
Issuance of affiliate short-term borrowings	0	0
Reduction of affiliates long-term debt	0	0
Life insurance proceeds	450	495
Purchase of life insurance contracts	(836)	(960)
Change in restricted cash	(260)	(465)
Net cash used in investing activities	(52,499)	(57,393)
Financing Activities:
Short-term borrowings	35,000	54,500
Repayment of short-term borrowings	(2,000)	(53,615)
Changes in affiliate advances	0	0
Proceeds from affiliate short-term borrowings	0
Repayment of affiliate short-term borrowings
Repayment of affiliates long-term borrowings	0	0
Proceeds from long-term debt, net of expenses	0	50,039
Repayment of long-term debt	(286)	(254)
Advances and contributions in aid of construction	3,975	7,608
Refunds of advances for construction	(2,236)	(1,612)
Repurchase of common stock	(1,119)	(466)
Dividends paid to non-affiliates	(8,634)	(8,258)
Dividends paid to affiliates	0	0
Net cash provided by financing activities	24,700	47,942
Change in cash and cash equivalents	(13,502)	22,041
Cash and cash equivalents at beginning of period	25,492	8,837
Cash and cash equivalents at end of period	11,990	30,878
Consolidating Adjustments
Operating activities:
Net income (loss)	(985)	951
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity earnings of subsidiaries	998	(937)
Dividends received from affiliates	(8,634)	(8,258)
Depreciation and amortization	(23)	(24)
Allowance for equity funds used during construction	0
Change in value of life insurance contracts	0	0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:	0	0
Other changes in noncurrent assets and liabilities	10	10
Net cash provided by operating activities	(8,634)	(8,258)
Investing activities:
Utility plant expenditures	0	0
Changes in affiliate advances	(1,373)	(1,368)
Reduction of affiliate short-term borrowings		(21,500)
Issuance of affiliate short-term borrowings	325	20,850
Reduction of affiliates long-term debt	(332)	(279)
Life insurance proceeds	0	0
Purchase of life insurance contracts	0	0
Change in restricted cash	0	0
Net cash used in investing activities	(1,380)	(2,297)
Financing Activities:
Short-term borrowings	0	0
Repayment of short-term borrowings	0	0
Changes in affiliate advances	1,373	1,368
Proceeds from affiliate short-term borrowings	(325)	(20,850)
Repayment of affiliate short-term borrowings		21,500
Repayment of affiliates long-term borrowings	332	279
Proceeds from long-term debt, net of expenses		0
Repayment of long-term debt	0	0
Advances and contributions in aid of construction	0	0
Refunds of advances for construction	0	0
Repurchase of common stock	0	0
Dividends paid to non-affiliates	0	0
Dividends paid to affiliates	8,634	8,258
Net cash provided by financing activities	10,014	10,555
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
Parent Company
Operating activities:
Net income (loss)	1,132	(798)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity earnings of subsidiaries	(998)	937
Dividends received from affiliates	8,634	8,258
Depreciation and amortization	23	57
Allowance for equity funds used during construction	0
Change in value of life insurance contracts	0	0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:	(67)	(280)
Other changes in noncurrent assets and liabilities	483	621
Net cash provided by operating activities	9,207	8,795
Investing activities:
Utility plant expenditures	0	0
Changes in affiliate advances	593	40
Reduction of affiliate short-term borrowings		0
Issuance of affiliate short-term borrowings	(325)	(250)
Reduction of affiliates long-term debt	332	279
Life insurance proceeds	0	0
Purchase of life insurance contracts	0	0
Change in restricted cash	0	0
Net cash used in investing activities	600	69
Financing Activities:
Short-term borrowings	0	21,500
Repayment of short-term borrowings	(2,000)	(20,615)
Changes in affiliate advances	715	0
Proceeds from affiliate short-term borrowings	0	20,600
Repayment of affiliate short-term borrowings		(21,500)
Repayment of affiliates long-term borrowings	0	0
Proceeds from long-term debt, net of expenses		0
Repayment of long-term debt	0	0
Advances and contributions in aid of construction	0	0
Refunds of advances for construction	0	0
Repurchase of common stock	(1,119)	(466)
Dividends paid to non-affiliates	(8,634)	(8,258)
Dividends paid to affiliates	0	0
Net cash provided by financing activities	(11,038)	(8,739)
Change in cash and cash equivalents	(1,231)	125
Cash and cash equivalents at beginning of period	5,216	582
Cash and cash equivalents at end of period	3,985	707
Cal Water
Operating activities:
Net income (loss)	1,084	(889)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity earnings of subsidiaries	0	0
Dividends received from affiliates	0	0
Depreciation and amortization	18,542	15,277
Allowance for equity funds used during construction	(779)
Change in value of life insurance contracts	(319)	43
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:	(11,003)	9,414
Other changes in noncurrent assets and liabilities	4,241	4,432
Net cash provided by operating activities	11,766	28,277
Investing activities:
Utility plant expenditures	(50,509)	(54,944)
Changes in affiliate advances	955	1,468
Reduction of affiliate short-term borrowings		21,500
Issuance of affiliate short-term borrowings		(20,600)
Reduction of affiliates long-term debt	0	0
Life insurance proceeds	450	495
Purchase of life insurance contracts	(836)	(960)
Change in restricted cash	(260)	(465)
Net cash used in investing activities	(50,200)	(53,506)
Financing Activities:
Short-term borrowings	35,000	33,000
Repayment of short-term borrowings	0	(33,000)
Changes in affiliate advances	(475)	(98)
Proceeds from affiliate short-term borrowings	0	0
Repayment of affiliate short-term borrowings		0
Repayment of affiliates long-term borrowings	0	0
Proceeds from long-term debt, net of expenses		49,823
Repayment of long-term debt	(170)	(175)
Advances and contributions in aid of construction	3,952	7,590
Refunds of advances for construction	(2,236)	(1,611)
Repurchase of common stock	0	0
Dividends paid to non-affiliates	0	0
Dividends paid to affiliates	(8,234)	(8,058)
Net cash provided by financing activities	27,837	47,471
Change in cash and cash equivalents	(10,597)	22,242
Cash and cash equivalents at beginning of period	13,215	4,270
Cash and cash equivalents at end of period	2,618	26,512
All Other Subsidiaries
Operating activities:
Net income (loss)	(99)	(62)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity earnings of subsidiaries	0	0
Dividends received from affiliates	0	0
Depreciation and amortization	1,116	1,144
Allowance for equity funds used during construction	0
Change in value of life insurance contracts	0	0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:	696	1,589
Other changes in noncurrent assets and liabilities	245	7
Net cash provided by operating activities	1,958	2,678
Investing activities:
Utility plant expenditures	(1,344)	(1,519)
Changes in affiliate advances	(175)	(140)
Reduction of affiliate short-term borrowings		0
Issuance of affiliate short-term borrowings	0	0
Reduction of affiliates long-term debt	0	0
Life insurance proceeds	0	0
Purchase of life insurance contracts	0	0
Change in restricted cash	0	0
Net cash used in investing activities	(1,519)	(1,659)
Financing Activities:
Short-term borrowings	0	0
Repayment of short-term borrowings	0	0
Changes in affiliate advances	(1,613)	(1,270)
Proceeds from affiliate short-term borrowings	325	250
Repayment of affiliate short-term borrowings		0
Repayment of affiliates long-term borrowings	(332)	(279)
Proceeds from long-term debt, net of expenses		216
Repayment of long-term debt	(116)	(79)
Advances and contributions in aid of construction	23	18
Refunds of advances for construction	0	(1)
Repurchase of common stock	0	0
Dividends paid to non-affiliates	0	0
Dividends paid to affiliates	(400)	(200)
Net cash provided by financing activities	(2,113)	(1,345)
Change in cash and cash equivalents	(1,674)	(326)
Cash and cash equivalents at beginning of period	7,061	3,985
Cash and cash equivalents at end of period	$ 5,387	$ 3,659