California Water Service (CWT) 10-K 1 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Feb. 12, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	CALIFORNIA WATER SERVICE GROUP
Entity Central Index Key	1,035,201
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,767
Entity Common Stock, Shares Outstanding		48,011,346
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Utility plant:
Land	$ 42,517	$ 40,283
Depreciable plant and equipment	2,729,757	2,522,174
Construction work in progress	175,693	132,957
Intangible assets	22,212	21,925
Total utility plant	2,970,179	2,717,339
Less accumulated depreciation and amortization	(922,214)	(858,062)
Net utility plant	2,047,965	1,859,277
Current assets:
Cash and cash equivalents	94,776	25,492
Receivables: net of allowance for doubtful accounts of $773 and $830 in 2017 and 2016, respectively
Customers	32,451	30,305
Regulatory balancing accounts	36,783	30,332
Other	16,464	17,158
Unbilled revenue	29,756	25,228
Materials and supplies at weighted average cost	6,463	6,292
Taxes, prepaid expenses, and other assets	11,180	7,262
Total current assets	227,873	142,069
Other assets:
Regulatory assets	401,147	355,930
Goodwill	2,615	2,615
Other	60,775	51,854
Total other assets	464,537	410,399
TOTAL ASSETS	2,740,375	2,411,745
Capitalization:
Common stock, $0.01 par value; 68,000 shares authorized, 48,012 and 47,965 outstanding in 2017 and 2016, respectively	480	480
Additional paid-in capital	336,229	334,856
Retained earnings	356,753	324,135
Total common stockholders' equity	693,462	659,471
Long-term debt, less current maturities	515,793	531,745
Total capitalization	1,209,255	1,191,216
Current liabilities:
Current maturities of long-term debt	15,920	26,208
Short-term borrowings	275,100	97,100
Accounts payable	93,955	77,813
Regulatory balancing accounts	59,303	4,759
Accrued other taxes	3,888	3,629
Accrued interest	6,122	5,661
Other accrued liabilities	36,671	35,060
Total current liabilities	490,959	250,230
Unamortized investment tax credits	1,724	1,798
Deferred income taxes	192,946	298,924
Regulatory liabilities	179,706	38,735
Pension and postretirement benefits other than pensions	252,141	222,691
Advances for construction	182,502	182,448
Contributions in aid of construction	186,721	180,790
Other long-term liabilities	44,421	44,913
Commitments and contingencies
TOTAL CAPITALIZATION AND LIABILITIES	$ 2,740,375	$ 2,411,745

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Receivables: net of allowance for doubtful accounts	$ 773	$ 830
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)	48,012,432	47,964,915

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Operating revenue	$ 161,991	$ 211,731	$ 171,132	$ 122,036	$ 150,930	$ 184,268	$ 152,445	$ 121,727	$ 666,890	$ 609,370	$ 588,368
Operations:
Purchased water									199,081	181,515	168,557
Purchased power									28,862	27,180	27,890
Pump taxes									13,924	11,298	11,479
Administrative and general									102,914	98,474	113,110
Other operations									74,448	80,082	67,248
Maintenance									22,530	22,993	21,463
Depreciation and amortization									76,783	63,599	61,381
Income taxes									28,928	24,804	24,528
Property and other taxes									24,797	23,231	21,559
Total operating expenses									572,267	533,176	517,215
Net operating income	$ 20,118	$ 41,196	$ 25,259	$ 8,050	$ 21,335	$ 30,055	$ 18,534	$ 6,270	94,623	76,194	71,153
Other income and expenses:
Non-regulated revenue									15,898	16,585	15,624
Non-regulated expenses									(9,390)	(11,445)	(14,044)
Allowance for equity funds used during construction									3,750	0	0
Gain (loss) on sale of non-utility property									663	(146)	315
Income tax expense on other income and expenses									(4,435)	(2,012)	(761)
Net other income									6,486	2,982	1,134
Interest expense:
Interest expense									36,288	33,466	29,185
Allowance for borrowed funds used during construction									(2,360)	(2,965)	(1,915)
Net interest expense									33,928	30,501	27,270
Net income									$ 67,181	$ 48,675	$ 45,017
Earnings per share:
Basic (in dollars per share)									$ 1.40	$ 1.02	$ 0.94
Diluted (in dollars per share)	$ 0.29	$ 0.70	$ 0.39	$ 0.02	$ 0.31	$ 0.48	$ 0.24	$ (0.02)	$ 1.40	$ 1.01	$ 0.94
Weighted average number of common shares outstanding:
Basic (in shares)									48,009	47,953	47,865
Diluted (in shares)									48,009	47,956	47,880

Consolidated Statements of Comm

Consolidated Statements of Common Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings
Balance at the beginning of the period at Dec. 31, 2014	$ 626,626	$ 478	$ 330,558	$ 295,590
Balance (in shares) at Dec. 31, 2014		47,806
Increase (Decrease) in Stockholders' Equity
Net income	45,017			45,017
Issuance of common stock	2,578	$ 1	2,577
Issuance of common stock (in shares)		69
Dividends paid on common stock	(32,066)			(32,066)
Balance at the end of the period at Dec. 31, 2015	642,155	$ 479	333,135	308,541
Balance (in shares) at Dec. 31, 2015		47,875
Increase (Decrease) in Stockholders' Equity
Net income	48,675			48,675
Issuance of common stock	1,722	$ 1	1,721
Issuance of common stock (in shares)		90
Dividends paid on common stock	(33,081)			(33,081)
Balance at the end of the period at Dec. 31, 2016	659,471	$ 480	334,856	324,135
Balance (in shares) at Dec. 31, 2016		47,965
Increase (Decrease) in Stockholders' Equity
Net income	67,181			67,181
Issuance of common stock	1,373	$ 0	1,373
Issuance of common stock (in shares)		47
Dividends paid on common stock	(34,563)			(34,563)
Balance at the end of the period at Dec. 31, 2017	$ 693,462	$ 480	$ 336,229	$ 356,753
Balance (in shares) at Dec. 31, 2017		48,012

Consolidated Statements of Com6

Consolidated Statements of Common Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Stockholders' Equity [Abstract]
Dividends paid on common stock (in dollars per share)	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.1725	$ 0.1725	$ 0.1725	$ 0.1725	$ 0.720	$ 0.690	$ 0.670

Consolidated Statments of Cash

Consolidated Statments of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating activities:
Net income	$ 67,181	$ 48,675	$ 45,017
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	78,592	65,203	63,182
Amortization of debt premium and expenses	920	871	825
Changes in normalized deferred income taxes	21,087	26,818	24,393
Change in value of life insurance contracts	(3,058)	(1,026)	218
Allowance for equity funds used during construction	(3,750)	0	0
Stock-based compensation	3,118	2,849	2,578
(Gain) loss on sale of non-utility property	(663)	146	(315)
Write-off of capital costs	1,293	3,221	0
Changes in operating assets and liabilities:
Receivables	(31,871)	(343)	1,855
Unbilled revenue	(4,528)	(2,047)	559
Taxes, prepaid expenses, and other assets	(3,718)	1,276	(2,366)
Accounts payable	1,564	3,839	(819)
Other current liabilities	2,164	4,056	(1,106)
Other changes in noncurrent assets and liabilities	19,511	6,906	10,948
Net cash provided by operating activities	147,842	160,444	144,969
Investing activities:
Utility plant expenditures	(259,194)	(228,938)	(176,833)
Proceeds from sale of non-utility assets	666	395	319
TCP settlement proceeds	56,004	0	0
Life insurance benefits	1,558	495	0
Purchase of life insurance	(5,605)	(2,857)	(2,032)
Change in restricted cash	(81)	66	288
Net cash used in investing activities	(206,652)	(230,839)	(178,258)
Financing activities:
Short-term borrowings, net of expenses of $0 for 2017 and 2016, and $1,197 for 2015	265,000	145,100	94,303
Repayment of short-term borrowings	(87,000)	(81,615)	(141,000)
Issuance of long-term debt, net of expenses of $0 for 2017, $177 for 2016, and $707 for 2015	0	49,823	99,343
Advances and contributions in aid of construction	21,369	21,448	16,026
Refunds of advances for construction	(8,378)	(6,885)	(6,726)
Retirement of long-term debt	(26,829)	(6,996)	(7,003)
Repurchase of common stock	(1,505)	(744)	(338)
Dividends paid	(34,563)	(33,081)	(32,066)
Net cash provided by financing activities	128,094	87,050	22,539
Change in cash and cash equivalents	69,284	16,655	(10,750)
Cash and cash equivalents at beginning of year	25,492	8,837	19,587
Cash and cash equivalents at end of year	94,776	25,492	8,837
Cash paid (received) during the year for:
Interest (net of amounts capitalized)	32,223	28,038	25,345
Income tax refunds	(1,697)	0	0
Supplemental disclosure of investing and financing non-cash activities:
Accrued payables for investments in utility plant	41,017	27,150	21,546
Utility plant contributed by developers	19,898	16,824	7,383
Litigation proceeds for MTBE contamination reclassified from other long-term liabilities to depreciable plant and equipment	$ 2,420	$ 484	$ 332

Consolidated Statments of Cash8

Consolidated Statments of Cash Flows (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Short-term Debt [Member]
Issuance of debt expenses	$ 0	$ 0	$ 1,197
Long-term Debt [Member]
Issuance of debt expenses	$ 0	$ 177	$ 707

ORGANIZATION AND OPERATIONS

ORGANIZATION AND OPERATIONS	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND OPERATIONS	ORGANIZATION AND OPERATIONS California Water Service Group (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 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 consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the Company's accounts and those of its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated from the consolidated financial statements. In the opinion of management, the consolidated financial statements reflect all adjustments that are necessary to provide a fair presentation of the results for the periods covered. The preparation of the Company's consolidated 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 consolidated 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, utility plant useful lives, 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.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 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 regulatory commissions (plus an estimate for water used between the customer's last meter reading and the end of the accounting period) and billings to certain non-regulated customers at rates authorized by contract with government agencies. The Company's regulated water and related utility services requirements are authorized by the Commissions in the states in which the Company operates. 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 or 18 months. Cal Water defers net WRAM and MCBA operating revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting 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 $0.7 million and $0.8 million as of December 31, 2017 and 2016, respectively. This liability is included in "other accrued liabilities" on our consolidated balance sheets. Non-Regulated Revenue Revenues from non-regulated operations and maintenance agreements are recognized when services have been rendered to companies or municipalities under such agreements. For construction and design services, revenue is generally recognized on the completed contract method, as most projects are completed in less than 3 months . Other non-regulated revenue is recognized when title has transferred to the buyer, or ratably over the term of the lease. Allowance for Doubtful Accounts The Company provides an allowance for doubtful accounts receivable. The allowance is based upon specific identified accounts plus an estimate of uncollectible accounts based upon historical percentages. The balance of customer receivables is net of the allowance for doubtful accounts of $0.8 million , $0.8 million , and $0.7 million as of December 31, 2017, 2016 and 2015, respectively. The activities in the allowance for doubtful accounts are as follows: 2017 2016 2015 Beginning Balance $ 830 $ 730 $ 697 Provision for uncollectible accounts 1,570 2,111 1,674 Net write off of uncollectible accounts (1,627 ) (2,011 ) (1,641 ) Ending Balance $ 773 $ 830 $ 730 Utility Plant Utility plant is carried at original cost when first constructed or purchased, or at fair value when acquired through acquisition. When depreciable plant is retired, the cost is eliminated from utility plant accounts and such costs are charged against accumulated depreciation. Maintenance of utility plant is charged to operating expenses as incurred. Maintenance projects are not accrued for in advance. Intangible assets acquired as part of water systems purchased are recorded at fair value. All other intangibles have been recorded at cost and are amortized over their useful life. The following table represents depreciable plant and equipment as of December 31: 2017 2016 Equipment $ 592,612 $ 561,909 Office buildings and other structures 245,877 218,711 Transmission and distribution plant 1,891,268 1,741,554 Total $ 2,729,757 $ 2,522,174 Depreciation of utility plant is computed on a straight-line basis over the assets' estimated useful lives including cost of removal of certain assets as follows: Useful Lives Equipment 5 to 50 years Transmission and distribution plant 40 to 65 years Office Buildings and other structures 50 years The provision for depreciation expressed as a percentage of the aggregate depreciable asset balances was 3.00% in 2017, 2.70% in 2016 and 2.80% in 2015. 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 the 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 reduction to interest expense. The amount of AFUDC related to equity funds and to borrowed funds for 2017, 2016, and 2015 are shown in the tables below: 2017 2016 2015 Allowance for equity funds used during construction $ 3,750 $ — $ — Allowance for borrowed funds used during construction 2,360 2,965 1,915 Total $ 6,110 $ 2,965 $ 1,915 Asset Retirement Obligation The Company has a legal obligation to retire wells in accordance with State Water Resources Control Board regulations. In addition, upon decommission of a wastewater plant or lift station certain wastewater infrastructure would need to be retired in accordance with State Water Resources Control Board regulations. An asset retirement cost and corresponding retirement obligation is recorded when a well or waste water infrastructure is placed into service. As of December 31, 2017 and 2016, the retirement obligation is estimated to be $21.2 million and $20.3 million , respectively. The change only impacted the consolidated balance sheet. Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments with remaining maturities of three months or less at the time of acquisition. Cash and cash equivalents was $94.8 million and $25.5 million as of December 31, 2017 and December 31, 2016, respectively. Restricted Cash In 2017 restricted cash includes $0.5 million of proceeds collected through a surcharge on certain customers' bills plus interest earned on the proceeds and is used to service California Safe Drinking Water Bond obligations. All restricted cash is included in "taxes, prepaid expenses, and other assets". As of December 31, 2017 and 2016, restricted cash was $0.6 million and $0.4 million , respectively. Regulatory Assets and Liabilities Because the Company operates almost exclusively in a regulated business, the Company is subject to the accounting standards for regulated utilities. The Commissions in the states in which the Company operates establish rates that are designed to permit the recovery of the cost of service and a return on investment. The Company capitalizes and records regulatory assets for costs that would otherwise be charged to expense if it is probable that the incurred costs will be recovered in future rates. Regulatory assets are amortized over the future periods that the costs are expected to be recovered. If costs expected to be incurred in the future are currently being recovered through rates, the Company records those expected future costs as regulatory liabilities. In addition, the Company records regulatory liabilities when the Commissions require a refund to be made to the Company's customers over future periods. Determining probability requires significant judgment by management and includes, but is not limited to, consideration of testimony presented in regulatory hearings, proposed regulatory decisions, final regulatory orders, and the strength or status of applications for rehearing or state court appeals. If the Company determines that a portion of the Company's assets used in utility operations is not recoverable in customer rates, the Company would be required to recognize the loss of the assets disallowed. Regulatory assets and liabilities were comprised of the following as of December 31: 2017 2016 Regulatory Assets Pension and retiree group health $ 214,249 $ 188,880 Property-related temporary differences (tax benefits flowed through to customers) 87,323 92,099 Other accrued benefits 28,251 27,503 Net WRAM and MCBA long-term accounts receivable 34,879 16,148 Asset retirement obligations, net 17,126 15,812 Interim rates long-term accounts receivable 4,568 4,605 Tank coating 10,998 8,452 Health care balancing account 496 1,000 Pension balancing account 2,322 — Other regulatory assets 935 1,431 Total Regulatory Assets $ 401,147 $ 355,930 Regulatory Liabilities Future tax benefits due to customers $ 168,343 $ 33,231 Health care balancing account 7,749 — Conservation program 2,273 584 Pension balancing account 364 695 Net WRAM and MCBA long-term payable 513 611 Other regulatory liabilities 464 3,614 Total Regulatory Liabilities $ 179,706 $ 38,735 The increase in future tax benefits due to customers as of December 31, 2017, as compared to the prior year, was due to federal tax law changes enacted by the federal Tax Cuts and Jobs Act (TCJA) on December 22, 2017. The TCJA reduced the federal corporate income tax rate from 35 percent to 21 percent beginning on January 1, 2018 and GAAP requires the Company to re-measure all existing deferred income tax assets and liabilities to reflect the reduction in the federal tax rate on the enactment date. The Company is working with state regulators to finalize the ratepayer refund process to ensure compliance with federal normalization rules. The Company's pension and postretirement health care benefits regulatory asset is the amount the Company expects to recover from customers in the future for these plans at the end of the calendar year. The property-related temporary differences are primarily due to: (i) the difference between book and federal income tax depreciation on utility plant that was placed in service before the regulatory Commissions adopted normalization for rate making purposes; and (ii) certain (state) deferred taxes for which flow through accounting continues to be applied to originating deferred taxes. The regulatory asset will be recovered in rates in future periods as the tax effects of the temporary differences previously flowed-through to customers reverse. Other accrued benefits are accrued benefits for vacation, self-insured workers' compensation, and directors' retirement benefits. The net WRAM and MCBA long-term accounts receivable is the under-collected portion of recorded revenues that are not expected to be collected from customers within 12 months . The asset retirement obligation regulatory asset represents the difference between costs associated with asset retirement obligations and amounts collected in rates. Tank coating represents the maintenance costs for tank coating projects that are recoverable from customers. The health care balancing account regulatory asset/liability is for incurred health care costs that exceeded/was below the cost recovery in rates and is recoverable/refundable from/to customers. Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets for 2017 and 2016 were $36.8 million and $30.3 million , respectively. The short-term regulatory assets, as of December 31, 2017, primarily consist of net WRAM and MCBA receivables. As of December 31, 2016, the short-term regulatory assets were primarily interim rates, 2014-2015 drought recovery, and net WRAM and MCBA receivables. The short-term portion of regulatory liabilities for 2017 and 2016 were $59.3 million and $4.8 million , respectively. The short-term regulatory liabilities, as of December 31, 2017, primarily consist of TCP settlement proceeds (see Note 14 - Commitments and Contingencies) and net WRAM and MCBA liability balances. 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. Impairment of Long-Lived Assets, Intangibles and Goodwill The Company's long-lived assets include transmission and distribution plant, equipment, land, buildings, and intangible assets. Long-lived assets, other than land, are depreciated or amortized over their estimated useful lives, and are reviewed for impairment whenever changes in circumstances indicate the carrying value of the assets may not be recoverable. Such circumstances would include items such as a significant decrease in the market value of a long-lived asset, a significant adverse change in the manner in which the asset is being used or planned to be used or in its physical condition, or a history of operating or cash flow losses associated with the uses of the asset. In addition, changes in the expected useful life of these long-lived assets may also be an impairment indicator. When such events or changes occur, the Company estimates the fair value of the asset from future cash flows expected to result from the use and, if applicable, the eventual disposition of the assets, and compare that to the carrying value of the asset. If the carrying value is greater than the fair value, then an impairment loss is recognized equal to the amount by which the asset's carrying value exceeds its fair value. The key variables that must be estimated include assumptions regarding sales volume, rates, operating costs, labor and other benefit costs, capital additions, assumed discount rates and other economic factors. These variables require significant management judgment and include inherent uncertainties since they are forecasting future events. A variation in the assumptions used could lead to a different conclusion regarding the realizability of an asset and, thus could have a significant effect on the consolidated financial statements. Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is not amortized but instead is reviewed annually at November 30 th for impairment or more frequently if impairment indicators arise. The impairment test is performed at the reporting unit level using a two- step, fair-value based approach. The first step determines the fair value of the reporting unit and compares it to the reporting unit's carrying value. If the fair value of the reporting unit is less than its carrying amount, a second step is performed to measure the amount of impairment loss, if any. The second step allocates the fair value of the reporting unit to the Company's tangible and intangible assets and liabilities. This derives an implied fair value for the reporting unit's goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized equal to the excess. Long-Term Debt Premium, Discount and Expense The premiums, discounts, and issuance expenses on long-term debt are amortized over the original lives of the related debt on a straight-line basis which approximates the effective interest method. Premiums paid on the early redemption of certain debt and the unamortized original issuance discount and expense are amortized over the life of new debt issued in conjunction with the early redemption. Amortization expense included in interest expense for 2017, 2016, and 2015 was $0.9 million , $0.9 million , and $0.8 million , respectively. Advances for Construction Advances for construction consist of payments received from developers for installation of water production and distribution facilities to serve new developments. Advances are excluded from rate base for rate setting purposes. Annual refunds are made to developers without interest. Advances of $182.5 million , and $182.4 million at December 31, 2017 and 2016, respectively, will be refunded primarily over a 40 -year period in equal annual amounts. Estimated refunds of advances for the succeeding 5 years are approximately $7.9 million in 2018, $7.7 million in 2019, $7.7 million in 2020, $7.6 million in 2021, and $7.6 million in 2022. Contributions in Aid of Construction Contributions in aid of construction represent payments received from developers, primarily for fire protection purposes, which are not subject to refunds. Facilities funded by contributions are included in utility plant, but excluded from rate base. Depreciation related to assets acquired from contributions is charged to the Contributions in Aid of Construction account. Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Measurement of the deferred tax assets and liabilities is at enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The Company evaluates the need for a valuation allowance on deferred tax assets based on historical taxable income and projected taxable income for future tax years. Historically the Commissions reduced revenue requirements for the tax effects of certain originating temporary differences and allowed recovery of these tax costs as the related temporary differences reverse. The Commissions have granted the Company rate increases to reflect the normalization of the tax benefits of the federal accelerated methods and available Investment Tax Credits (ITC) for all assets placed in service after 1980. ITCs are deferred and amortized over the lives of the related properties for book purposes. The CPUC granted flow through for state taxes. Subsequent to 1986, Advances for Construction and Contributions in Aid of Construction were taxable for federal income tax purposes. Subsequent to 1991, Advances for Construction and Contributions in Aid of Construction were subject to California income tax. Due to changes in the federal tax law in 1996 and the California tax law in 1997 only deposits for new services were taxable. In late 2000, federal regulations were further modified to exclude contributions of fire services from taxable income. With the enactment of the TCJA, all Advances for Construction and Contributions in Aid of Construction received from developers after December 22, 2017 became taxable for federal income tax purposes. The accounting standards for accounting for uncertainty in income taxes allows the inclusion of interest and penalties related to uncertain tax positions as a component of income taxes. See note 10 "Income Taxes". Workers' Compensation For workers' compensation, the Company estimates the liability associated with claims submitted and claims not yet submitted based on historical data. Expenses for workers compensation insurance are included in rates on a pay-as- you-go basis. Therefore, a corresponding regulatory asset has been recorded. Earnings per Share The computations of basic and diluted earnings per share are noted below. Basic earnings per share are computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. Restricted Stock Awards (RSAs) are included in the common shares outstanding because the shares have all the same voting and dividend rights as issued and unrestricted common stock. The Company did not grant any Stock Appreciation Rights (SARs) in 2017, 2016, and 2015. There were no SARs outstanding as of December 31, 2017 and 2016. As of December 31, 2015, there were 64,500 shares of SARs outstanding. All SARs were dilutive in 2017, 2016, and 2015. The dilutive effect is shown in the table below: 2017 2016 2015 (In thousands, Net income available to common stockholders $ 67,181 $ 48,675 $ 45,017 Weighted average common shares, basic 48,009 47,953 47,865 Dilutive SARs (treasury method) — 3 15 Weighted average common shares, dilutive 48,009 47,956 47,880 Earnings per share—basic $ 1.40 $ 1.02 $ 0.94 Earnings per share—diluted $ 1.40 $ 1.01 $ 0.94 Stock-based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award. The Company recognizes compensation expense on a straight-line basis over the requisite service period, which is the vesting period. Comprehensive Income or Loss Comprehensive income for all periods presented was the same as net income. Accumulated Other Comprehensive Income The Company did not have any accumulated other comprehensive income or loss transactions as of December 31, 2017 and 2016. Adoption of New Accounting Standards In March 2016, the Financial Accounting Standards Board (FASB) issued updated accounting guidance on simplifying the accounting for share-based payments (Accounting Standards Update (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 twelve month period ended December 31, 2017, the Company recorded $0.6 million of income tax benefits in excess of 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 tables show the effects of the accounting change to the Condensed Consolidated Statements of Cash Flows for 2016 and 2015: 2016 Cash Flow Classification As Reported on Form 10-K Adjusted Balance on Form 10-K Increase (Decrease) from Retrospective Adoption Other changes in noncurrent assets and liabilities $ 6,162 $ 6,906 $ 744 Net cash provided by operating activities 159,700 160,444 744 Repurchase of common stock — (744 ) (744 ) Net cash provided by financing activities 87,794 87,050 (744 ) 2015 Cash Flow Classification As Reported on Form 10-K Adjusted Balance on Form 10-K Increase (Decrease) from Retrospective Adoption Other changes in noncurrent assets and liabilities $ 10,610 $ 10,948 $ 338 Net cash provided by operating activities 144,631 144,969 338 Repurchase of common stock — (338 ) (338 ) Net cash provided by financing activities 22,877 22,539 (338 ) New Accounting Standards Issued But Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customer s, 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 completed an evaluation of the new revenue standard and implemented the standard on January 1, 2018 using the modified retrospective method. The adoption of the new revenue standard will not materially impact the timing or recognition of revenue related to the sale and delivery of water to its customers, which is a significant percentage of the Company's revenue. The adoption of the new revenue standard will result in expanded revenue related disclosures. The Company plans to disclose revenues from contracts with customers separately from regulatory balancing account revenue and disaggregate customer contract revenue by customer class. In February 2016, the FASB issued ASU 2016-02, Leases . This update changes the accounting treatment of leases and related disclosure requirements. In November of 2017, the FASB tentatively decided to amend the new leasing guidance such that entities may elect not to restate their comparative periods in the period of adoption. The guidance requires lessees to recognize an asset and liability on the balance sheet for all of their lease obligations. Operating leases were previously not recognized on the balance sheet. 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 expects this standard to increase lease assets and lease liabilities on the Consolidated Balance Sheets. The Company does not expect that the guidance will have a material impact on the Consolidated Statements of Income, Consolidated Statements of Cash Flows, and lease 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 became effective for the Company on January 1, 2018. The Company does not expect the guidance to have a material effect on its consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . 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. The Company has completed an evaluation of the new standard and its impact on its consolidated financial statements and related disclosures and adopted the new accounting standard on January 1, 2018. The adoption of this guidance will change the Company's financial statement presentation of net benefit costs and modify the amounts eligible to be capitalized. However, based on current regulatory authorization, the changes required by the standard will not materially impact the results of operations.

OTHER INCOME AND EXPENSES

OTHER INCOME AND EXPENSES	12 Months Ended
	Dec. 31, 2017
Other Income and Expenses [Abstract]
OTHER INCOME AND EXPENSES	OTHER INCOME AND EXPENSES The Company conducts various non-regulated activities as reflected in the table below: 2017 2016 2015 Revenue Expense Revenue Expense Revenue Expense Operating and maintenance $ 8,621 $ 8,847 $ 8,430 $ 9,061 $ 9,385 $ 10,438 Leases 2,015 182 1,923 204 1,929 208 Design and construction 1,918 1,635 1,792 1,473 1,399 1,292 Meter reading and billing 256 (6 ) 242 62 597 434 Interest income 68 — 18 — 39 — Change in value of life insurance contracts (gain) loss — (3,057 ) — (1,026 ) — 218 Other non-regulated income and expenses 3,020 1,789 4,180 1,671 2,275 1,454 Total $ 15,898 $ 9,390 $ 16,585 $ 11,445 $ 15,624 $ 14,044 Operating and maintenance services and meter reading and billing services are provided for water and wastewater systems owned by private companies and municipalities. The agreements call for a fee-per-service or a flat-rate amount per month. Leases have been entered into with telecommunications companies for cellular phone antennas placed on the Company's property. Design and construction services are for the design and installation of water mains and other water infrastructure for others outside the Company's regulated service areas. Third-party insurance program gains and losses are included in other non-regulated income and expenses. Also, the 2016 other non-regulated income and expenses included a litigation gain of $1.5 million .

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	As of December 31, 2017 and 2016, intangible assets that will continue to be amortized and those not amortized were: Weighted Average Amortization Period (years) 2017 2016 Gross Accumulated Net Gross Accumulated Net Amortized intangible assets: Water pumping rights usage $ 1,084 $ 108 $ 976 $ 1,084 $ 105 $ 979 Water planning studies 11 15,922 10,306 5,616 15,734 9,307 6,427 Leasehold improvements and other 19 1,426 804 622 1,331 696 635 Total $ 18,432 $ 11,218 $ 7,214 $ 18,149 $ 10,108 $ 8,041 Unamortized intangible assets: Perpetual water rights and other $ 3,780 $ — $ 3,780 $ 3,776 $ — $ 3,776 Water pumping rights usage is the amount of water pumped from aquifers to be treated and distributed to customers. For the years ended December 31, 2017 and 2016, amortization of intangible assets was $1.6 million and for the year ended December 31, 2015, amortization of intangible assets was $1.4 million . Estimated future amortization expense related to intangible assets for the succeeding 5 years is approximately $1.4 million in 2018, $1.2 million in 2019, $0.7 million in 2020, $0.6 million in 2021, $0.5 million in 2022, and $2.7 million thereafter.

PREFERRED STOCK

PREFERRED STOCK	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
PREFERRED STOCK	PREFERRED STOCK The Company is authorized to issue 241,000 shares of Preferred Stock as of December 31, 2017. No shares of Preferred Stock were issued and outstanding as of December 31, 2017 or 2016.

COMMON STOCKHOLDERS' EQUITY

COMMON STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
COMMON STOCKHOLDERS' EQUITY	COMMON STOCKHOLDERS' EQUITY As of December 31, 2017 and 2016, 48,012,432 shares and 47,964,915 shares, respectively, of common stock were issued and outstanding. Dividend Reinvestment and Stock Repurchase Plan The Company has a Dividend Reinvestment and Stock Purchase Plan (DRIP Plan). Under the DRIP Plan, stockholders may reinvest dividends to purchase additional Company common stock without commission fees. The DRIP Plan also allows existing stockholders and other interested investors to purchase Company common stock through the transfer agent up to certain limits. The Company's transfer agent operates the DRIP Plan and purchases shares on the open market to provide shares for the Plan.

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS	12 Months Ended
	Dec. 31, 2017
Short-term Debt [Abstract]
SHORT-TERM BORROWINGS	SHORT-TERM BORROWINGS On March 10, 2015, the Company and Cal Water entered into Syndicated Credit Agreements, which provide for unsecured revolving credit facilities of up to an initial aggregate amount of $450.0 million for a term of 5 years . The Company and subsidiaries that it designates may borrow up to $150.0 million under the Company’s revolving credit facility. Cal Water may borrow up to $300.0 million under its revolving credit facility; however, all borrowings need to be repaid within 24 months unless otherwise authorized by the CPUC. The credit facilities may each be expanded by up to $50.0 million subject to certain conditions. The proceeds from the revolving credit facilities may be used for working capital purposes, including the short-term financing of capital projects. The base loan rate may vary from LIBOR plus 72.5 basis points to LIBOR plus 95 basis points , depending on the Company’s total capitalization ratio. Likewise, the unused commitment fee may vary from 8 basis points to 12.5 basis points based on the same ratio. The revolving credit facilities 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. As of December 31, 2017 and December 31, 2016, the outstanding borrowings on the Company lines of credit were $55.1 million and $57.1 million , respectively. The borrowings on the Cal Water lines of credit as of December 31, 2017 was $220.0 million and $40.0 million as of December 31, 2016. The following table represents borrowings under the bank lines of credit: 2017 2016 Maximum short-term borrowings $ 275,100 $ 97,100 Average amount outstanding $ 179,739 $ 65,804 Weighted average interest rate 2.05 % 1.33 %

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2017
Long-term Debt, Unclassified [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT As of December 31, 2017 and 2016, long-term debt outstanding was: Series Interest Rate Maturity Date 2017 2016 First Mortgage Bonds TTT 4.610 % 2056 $ 10,000 $ 10,000 SSS 4.410 % 2046 40,000 40,000 QQQ 3.330 % 2025 50,000 50,000 RRR 4.310 % 2045 50,000 50,000 PPP 5.500 % 2040 100,000 100,000 LL 5.875 % 2019 100,000 100,000 AAA 7.280 % 2025 20,000 20,000 BBB 6.770 % 2028 20,000 20,000 CCC 8.150 % 2030 20,000 20,000 DDD 7.130 % 2031 20,000 20,000 EEE 7.110 % 2032 20,000 20,000 FFF 5.900 % 2017 — 20,000 GGG 5.290 % 2022 9,091 10,909 HHH 5.290 % 2022 9,091 10,909 III 5.540 % 2023 5,454 6,364 JJJ 5.440 % 2018 909 1,818 LLL 5.480 % 2018 10,000 10,000 OOO 6.020 % 2031 20,000 20,000 CC 9.860 % 2020 16,900 17,000 Total First Mortgage Bonds 521,445 547,000 California Department of Water Resources Loans 2.6% to 8.0% 2018 - 32 6,201 6,519 Other Long-term debt 7,956 8,909 Unamortized debt issuance costs (3,889 ) (4,475 ) Total long-term debt 531,713 557,953 Less current maturities 15,920 26,208 Long-term debt excluding current maturities $ 515,793 $ 531,745 Cal Water repaid $20.0 million of First Mortgage Bond FFF, which matured in 2017. On October 4, 2011, Cal Water entered into a capital lease arrangement with the City of Hawthorne to operate the City's water system for a 15 -year period. The $6.4 million and $7.0 million capital lease liability as of December 31, 2017 and 2016 is included in other long-term debt and current maturities set forth above.

OTHER ACCRUED LIABILITIES

OTHER ACCRUED LIABILITIES	12 Months Ended
	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
OTHER ACCRUED LIABILITIES	OTHER ACCRUED LIABILITIES As of December 31, 2017 and 2016, other accrued liabilities were: 2017 2016 Accrued and deferred compensation $ 23,916 $ 22,572 Accrued benefits and workers' compensation claims 6,640 6,460 Other 6,115 6,028 TOTAL OTHER ACCRUED LIABILITIES $ 36,671 $ 35,060

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax expense (benefit) consisted of the following: Federal State Total 2017 Current $ — $ 3 $ 3 Deferred 32,652 707 33,359 Total $ 32,652 $ 710 $ 33,362 2016 Current $ 130 $ 2 $ 132 Deferred 26,603 81 26,684 Total $ 26,733 $ 83 $ 26,816 2015 Current $ 9,591 $ 1,706 $ 11,297 Deferred 15,374 (1,382 ) 13,992 Total income tax $ 24,965 $ 324 $ 25,289 The Company's 2017, 2016 and 2015 federal qualified repairs and maintenance deductions totaled $85.7 million , $84.9 million , and $65.2 million , respectively. The total federal NOL carry-forward was $72.6 million and the state NOL carry-forward was $55.4 million as of December 31, 2017. Management has concluded that the NOL carry-forward amounts are more likely than not to be recovered and therefore require no valuation allowance. The loss and credit carry-forward will begin to expire in 2032. As of December 31, 2017, the California Enterprise Zone (EZ) credit was $4.2 million net of federal tax benefit for qualified property purchased before January 1, 2015, and placed in service before January 1, 2016. The Company has carry-forward California EZ credits of $2.3 million net of any unrecognized tax benefit. Unused State of California EZ credits can carry-forward until 2024. The difference between the recorded and the statutory income tax expense was reconciled in the table below: 2017 2016 2015 Statutory income tax $ 35,190 $ 26,422 $ 24,607 Increase (reduction) in taxes due to: State income taxes net of federal tax benefit 5,781 4,341 4,043 Effect of regulatory treatment of fixed asset differences (4,584 ) (4,298 ) (3,450 ) Investment tax credits (74 ) (74 ) (74 ) AFUDC equity (1,528 ) — — Share base stock compensation (581 ) — — Other (842 ) 425 163 Total income tax $ 33,362 $ 26,816 $ 25,289 The effect of regulatory treatment of fixed asset differences includes estimated repair and maintenance deductions and asset related flow through items. On December 22, 2017, the U.S. government enacted expansive tax legislation commonly referred to as the TCJA. Among other provisions, the TCJA reduces the federal income tax rate from 35 percent to 21 percent beginning on January 1, 2018 and eliminated bonus depreciation for utilities. The TCJA required the Company to re-measure all existing deferred income tax assets and liabilities to reflect the reduction in the federal tax rate. The Company made reasonable estimates to reflect the impacts of the TCJA and recorded provisional amounts, in accordance with rules issued by the SEC in Staff Accounting Bulletin No. 118, for the re-measurement of deferred tax balances as of December 31, 2017. During the three months and year ended December 31, 2017, the Company recorded a provisional re-measurement of its deferred tax balances (related mostly to timing differences for plant-related items) which was offset by a change from a net deferred income tax regulatory asset to a net regulatory liability. The Company is working with state regulators to finalize the ratepayer net refund of $108.0 million to ensure compliance with federal normalization rules. The final transition impacts of the TCJA may differ from the recorded amounts, possibly materially, due to, among other things, regulatory decisions that could differ from the Company’s determination of how the impacts of the TCJA are allocated between customers and shareholders. In addition, while the Company was able to make reasonable estimates of the impact of the reduction in federal tax rate and the elimination of bonus depreciation due to the enactment of the TCJA; the Company has not completed analysis for areas of the TCJA around Internal Revenue Code Section 162(m), full expensing of fixed assets, and other asset related items of the TCJA. Changes in interpretations, guidance on legislative intent, and any changes in accounting standards for income taxes in response to the TCJA could impact the recorded amounts. The Company will finalize and record any adjustments related to the TCJA within the one year measurement period provided under Staff Accounting Bulletin No. 118. The deferred tax assets and deferred tax liabilities as of December 31, 2017 and 2016, were presented in the following table: 2017 2016 Deferred tax assets: Developer deposits for extension agreements and contributions in aid of construction $ 33,552 $ 46,318 Net operating loss carryforward and tax credits 13,329 12,348 Pension 7,906 9,865 Income tax regulatory liability 41,712 — Other 280 5,651 Total deferred tax assets 96,779 74,182 Deferred tax liabilities: Property related basis and depreciation differences 262,442 347,071 WRAM/MCBA and interim rates balancing accounts 24,733 20,714 Other 2,550 5,321 Total deferred tax liabilities 289,725 373,106 Net deferred tax liabilities $ 192,946 $ 298,924 The decreases in developer deposits for extension agreements and contributions in aid of construction and property related basis and depreciation differences, as compared to the prior year, were mostly due to the re-measurement of deferred tax balances as required by the TCJA. The increase in the deferred tax asset for the income tax regulatory liability represents the tax gross up to the revenue requirement for the re-measurement of net deferred taxes associated with a lower federal income tax rate as a result of the TCJA, as well as the future tax benefit associated with the expected reduction in revenue. A valuation allowance was not required at December 31, 2017 and 2016. Based on historical taxable income and future taxable income projections over the period in which the deferred assets are deductible, management believes it is more likely than not that the Company will realize the benefits of the deductible differences. The following table reconciles the changes in unrecognized tax benefits: December 31, 2017 December 31, 2016 December 31, 2015 Balance at beginning of year $ 10,499 $ 10,298 $ 7,916 Additions for tax positions taken during prior year — — — Additions for tax positions taken during current year 559 201 2,382 Reductions for tax positions taken during a prior year — — — Lapse of statute of limitations — — — Balance at end of year $ 11,058 $ 10,499 $ 10,298 The Company does not expect a material change in its unrecognized tax benefits within the next 12 months. The component of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of December 31, 2017, for the Company was $2.1 million , with the remaining balance representing the potential deferral of taxes to later years. The Company's federal income tax years subject to an examination are from 2013 to 2017 and the state income tax years subject to an examination are from 2012 to 2017.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	Savings Plan The Company sponsors a 401(k) qualified defined contribution savings plan that allows participants to contribute up to 20% of pre-tax compensation. Effective January 1, 2010, the Company matches 75 cents for each dollar contributed by the employee up to a maximum Company match of 6.0% of base salary. Company contributions were $5.6 million , $5.4 million , and $5.0 million , for the years 2017, 2016, and 2015, respectively. Pension Plans The Company provides a qualified, defined-benefit, non-contributory pension plan for substantially all employees. The accumulated benefit obligations of the pension plan are $513.6 million and $438.0 million as of December 31, 2017 and 2016, respectively. The fair value of pension plan assets was $460.9 million and $376.5 million as of December 31, 2017 and 2016, respectively. Prior to 2010, pension payment obligations were generally funded by the purchase of an annuity from a life insurance company. Beginning in 2010, the pension plan trust pays monthly benefits to retirees, rather than the purchase of an annuity. Expected payments to be made are $13.5 million in 2018, $15.0 million in 2019, $16.5 million in 2020, $18.1 million in 2021, and $20.0 million in 2022. The aggregate benefits expected to be paid in the 5 years 2023 through 2027 are $125.8 million . The expected benefit payments are based upon the same assumptions used to measure the Company's benefit obligation at December 31, 2017, and include estimated future employee service. The Company also maintains an unfunded, non-qualified, supplemental executive retirement plan. The unfunded supplemental executive retirement plan accumulated benefit obligations were $56.7 million and $46.0 million as of December 31, 2017 and 2016, respectively. Benefit payments under the supplemental executive retirement plan are paid currently and are included in the preceding paragraph. The costs of the pension and retirement plans are charged to expense and utility plant. The Company makes annual contributions to fund the amounts accrued for pension cost. Other Postretirement Plan The Company provides substantially all active, permanent employees with medical, dental, and vision benefits through a self-insured plan. Employees retiring at or after age 58 , along with their spouses and dependents, continue participation in the plan by payment of a premium. Plan assets are invested in mutual funds, short-term money market instruments and commercial paper based upon a similar asset mix to the pension plan. Retired employees are also provided with a five thousand dollar life insurance benefit. The Company records the costs of postretirement benefits other than pensions (PBOP) during the employees' years of active service. Postretirement benefit expense recorded in 2017, 2016, and 2015, was $8.5 million , $8.9 million , and $15.1 million , respectively. The remaining net periodic benefit cost was $3.5 million at December 31, 2017, and is being recovered through future customer rates and is recorded as a regulatory asset. The expected benefit payments, net of retiree premiums and Medicare Part D subsidies, are $2.3 million in 2018, $2.5 million in 2019, $2.7 million in 2020, $2.9 million in 2021, and $3.2 million in 2022. The aggregate benefits expected to be paid in the 5 years 2023 through 2027 are $20.0 million . The expected Medicare Part D subsidies are $0.3 million in 2018, $0.3 million in 2019, $0.3 million in 2020, $0.4 million in 2021, and $0.3 million in 2022. Benefit Plan Assets The Company actively manages pensions and PBOP trust (Plan) assets. The Company's investment objectives are: • Maximize the return on the assets, commensurate with the risk that the Company deems appropriate to, meet the obligations of the Plans, minimize the volatility of the pension expense, and account for contingencies; • Generate a rate of return for the total portfolio that equals or exceeds the actuarial investment rate assumption; Additionally, the rate of return of the total fund is measured periodically against an index comprised of 35% of the Standard & Poor's Index, 15% of the Russell 2000 Index, 10% of the MSCI EAFE Index, and 40% of the Lehman Aggregate Bond Index. The index is consistent with the Company's rate of return objective and indicates the Company's long-term asset allocation objective. The Company applies a risk management framework for managing the risks associated with employee benefit plan trust assets. The guiding principles of this risk management framework are the clear articulation of roles and responsibilities, appropriate delegation of authority, and proper accountability and documentation. Trust investment policies and investment manager guidelines include provisions to ensure prudent diversification, manage risk through appropriate use of physical direct asset holdings and derivative securities, and identify permitted and prohibited investments. The Company's target asset allocation percentages for major categories of the pension plan are reflected in the table below: Minimum Exposure Target Maximum Exposure Fixed Income 35 % 40 % 45 % Total Domestic Equity: 40 % 50 % 60 % Small Cap Stocks 10 % 15 % 20 % Large Cap Stocks 30 % 35 % 45 % Non-U.S. Equities 5 % 10 % 15 % The fixed income category includes money market funds, short-term bond funds, and cash. The majority of fixed income investments range in maturities from less than 1 to 5 years . The Company's target allocation percentages for the PBOP trust is similar to the pension plan except for a larger allocation in fixed income investments and a lower allocation in equity investments. The Company uses the following criteria to select investment funds: • Fund past performance; • Fund meets criteria of Employee Retirements Income Security Act (ERISA); • Timeliness and completeness of fund communications and reporting to investors; • Stability of fund management company; • Fund management fees; and • Administrative costs incurred by the Plan. Plan Fair Value Measurements The fair value measurements standard establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the standard are described below: 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. All Plan investments are level one investments in mutual funds and are valued at the net asset value (NAV) of the shares held at December 31, 2017 and 2016: Pension Benefits Other Benefits 2017 % 2016 % 2017 % 2016 % Fixed Income $ 171,403 37 % $ 141,576 38 % $ 60,438 60 % $ 54,166 63 % Domestic Equity: Small Cap Stocks 73,682 16 % 61,036 16 % — — — — Domestic Equity: Large Cap Stocks 169,661 37 % 136,405 36 % 40,125 40 % 32,412 37 % Non U.S. Equities 46,132 10 % 37,532 10 % — — — — Total Plan Assets $ 460,878 100 % $ 376,549 100 % $ 100,563 100 % $ 86,578 100 % The pension benefits fixed income category includes $22.5 million and $2.3 million of money market fund investments as of December 31, 2017 and 2016, respectively. The other benefits fixed income category includes $39.4 million and $35.5 million of money market fund investments as of December 31, 2017 and 2016, respectively. Changes in Plan Assets, Benefits Obligations, and Funded Status The following table reconciles the funded status of the plans with the accrued pension liability and the net postretirement benefit liability as of December 31, 2017 and 2016: Pension Benefits Other Benefits 2017 2016 2017 2016 Change in projected benefit obligation: Beginning of year $ 564,755 $ 501,879 $ 122,108 $ 136,736 Service cost 23,801 20,971 7,152 6,513 Interest cost 23,256 22,226 4,988 4,863 Assumption change 60,526 15,599 15,298 (8,748 ) Experience loss 10,836 14,075 (4,546 ) (16,041 ) Benefits paid, net of retiree premiums (11,840 ) (9,995 ) (1,632 ) (1,215 ) End of year $ 671,334 $ 564,755 $ 143,368 $ 122,108 Change in plan assets: Fair value of plan assets at beginning of year $ 376,549 $ 328,634 $ 86,578 $ 72,886 Actual return on plan assets 64,365 27,916 6,508 5,342 Employer contributions 31,804 29,994 9,109 9,565 Retiree contributions and Medicare part D subsidies — — 1,884 1,611 Benefits paid (11,840 ) (9,995 ) (3,516 ) (2,826 ) Fair value of plan assets at end of year $ 460,878 $ 376,549 $ 100,563 $ 86,578 Funded status(1) $ (210,456 ) $ (188,206 ) $ (42,805 ) $ (35,530 ) Unrecognized actuarial loss 150,545 126,610 39,796 31,821 Unrecognized prior service cost 20,342 26,123 165 207 Net amount recognized $ (39,569 ) $ (35,473 ) $ (2,844 ) $ (3,502 ) _______________________________________________________________________________ (1) The short-term portion of the pension benefits was $2.0 million as of December 31, 2017 and 2016. Amounts recognized on the balance sheet consist of: Pension Benefits Other Benefits 2017 2016 2017 2016 (Accrued) benefit costs $ 60 $ — $ (3,461 ) $ (4,119 ) Accrued benefit liability (210,456 ) (188,206 ) (42,805 ) (35,530 ) Regulatory asset 170,827 152,733 43,422 36,147 Net amount recognized $ (39,569 ) $ (35,473 ) $ (2,844 ) $ (3,502 ) Valuation Assumptions Below are the actuarial assumptions used in determining the benefit obligation for the benefit plans: Pension Benefits Other Benefits 2017 2016 2017 2016 Weighted average assumptions as of December 31: Discount rate 3.60 % 4.15 % 3.65 % 4.25 % Long-term rate of return on plan assets 6.50 % 6.50 % 5.50 % 5.50 % Rate of compensation increases 3.25 % 3.25 % — — Cost of living adjustment 2.50 % 2.50 % — — The discount rate was derived from the Citigroup Pension Discount Curve using the expected payouts for the plan. The long-term rate of return assumption is the expected rate of return on a balanced portfolio invested roughly 60% in equities and 40% in fixed income securities. Returns on equity investments were estimated based on estimates of dividend yield and real earnings added to a 2.50% long-term inflation rate. For the pension and other benefit plans, the assumed returns were 7.23% for domestic equities and 8.15% for foreign equities. Returns on fixed-income investments were projected based on investment maturities and credit spreads added to a 2.50% long-term inflation rate. For the pension and other benefit plans, the assumed returns were 4.80% for fixed income investments and 2.78% for short-term cash investments. The average return for the pension and other benefit plans for the last 5 and 10 years was 9.30% and 6.10% , respectively. The Company is using a long-term rate of return of 6.50% for the pension plan and 5.50% for the other benefit plan, which is between the 25th and 75th percentile of expected results. In 2017, the Company used the Society of Actuaries 2014 Mortality Tables Report (RP-2014) and Mortality Improvement Scale (MP-2017 with modifications) for measuring retirement plan obligations. The RP-2014 mortality table and improvement scale extended the assumed life expectancy of plan participants which resulted in an increase in the Company's accrued benefit obligation as of December 31, 2017 and 2016. Components of Net Periodic Benefit Cost Net periodic benefit costs for the pension and other postretirement plans for the years ended December 31, 2017, 2016, and 2015 included the following components: Pension Plan Other Benefits 2017 2016 2015 2017 2016 2015 Service cost $ 23,801 $ 20,971 $ 21,306 $ 7,152 $ 6,513 $ 8,476 Interest cost 23,256 22,226 20,104 4,988 4,863 5,654 Expected return on plan assets (24,119 ) (21,826 ) (19,138 ) (4,875 ) (4,129 ) (3,519 ) Net amortization and deferral 12,962 11,990 15,485 1,186 1,660 4,536 Net periodic benefit cost $ 35,900 $ 33,361 $ 37,757 $ 8,451 $ 8,907 $ 15,147 Below are the actuarial assumptions used in determining the net periodic benefit costs for the benefit plans, which uses the end of the prior year as the measurement date: Pension Benefits Other Benefits 2017 2016 2017 2016 Weighted average assumptions as of December 31: Discount rate 4.15 % 4.40 % 4.25 % 4.40 % Long-term rate of return on plan assets 6.50 % 6.50 % 5.50 % 5.50 % Rate of compensation increases 3.25 % 3.25 % — — The health care cost trend rate assumption has a significant effect on the amounts reported. For 2017 measurement purposes, the Company assumed a 6.8% annual rate of increase in the per capita cost of covered benefits with the rate decreasing to 5.2% by 2020, then gradually grading down to 4.7% over the next 50 years . A 1-percentage point change in assumed health care cost trends is estimated to have the following effect: 1-Percentage Point Increase 1-Percentage Point (Decrease) Effect on total service and interest costs $ 3,919 $ (2,795 ) Effect on accumulated postretirement benefit obligation $ 39,117 $ (28,762 ) The Company intends to make annual contributions that meet the funding requirements of ERISA. The Company estimates in 2018 that the annual contribution to the pension plans will be $35.7 million and the annual contribution to the other postretirement plan will be $10.8 million .

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION PLANS	STOCK-BASED COMPENSATION PLANS The Company's equity incentive plan was approved and amended by stockholders on April 27, 2005 and May 20, 2014. The Company is authorized to issue awards up to 2,000,000 shares of common stock. During 2017 and 2016, the Company granted annual Restricted Stock Awards (RSAs) of 49,290 and 72,317 , respectively, of common stock to officers and directors of the Company. In 2017 and 2016, 20,747 RSAs and 16,617 RSAs, respectively, were canceled. Officer RSAs granted in 2017 and 2016 vest over 36 months with the first year cliff vesting. Director RSAs generally vest at the end of 12 months . During 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. The Company granted performance-based Restricted Stock Unit Awards (RSUs) of 31,389 and 43,659 of common stock to officers in 2017 and 2016, respectively. Each award reflects a target number of common shares that may be issued to the award recipient. The 2017 and 2016 awards may be earned upon the completion of a 3 -year performance period. During 2017 and 2016, the Company issued 38,709 RSUs and 28,424 RSUs, respectively, to officers, and 19,735 RSUs and 6,602 RSUs, respectively, were canceled. Whether RSUs are earned at the end of the performance period will be determined based on the achievement of certain performance objectives set by the Board of Director Compensation Committee in connection with the issuance of the RSUs. The performance objectives are based on the Company's business plan covering the performance period. The performance objectives include achieving the budgeted return on equity, budgeted investment in utility plant, customer service standards, employee safety standards and water quality standards. Depending on the results achieved during the 3 -year performance period, the actual number of shares that a grant recipient receives at the end of the performance period may range from 0% to 200% of the target shares granted, provided that the grantee is continuously employed by the Company through the vesting date. If prior to the vesting date employment is terminated by reason of death, disability or normal retirement, then a pro rata portion of this award will vest. RSUs are not included in diluted shares until earned. The RSUs are recognized as expense ratably over the 3 year performance period using a fair market value of $36.75 per share for the 2017 RSUs and $25.17 per share for the 2016 RSUs based on an estimate of RSUs earned during the performance period. The Company has recorded compensation costs for the RSAs and RSUs which are included in administrative and general operating expenses in the amount of $3.1 million , $2.8 million , and $2.9 million for 2017, 2016 and 2015, respectively.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	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 hierarchal 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 described in Note 11 - Employee Benefit Plans. 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. December 31, 2017 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 531,713 $ — $ 607,492 $ — $ 607,492 Advances for construction 182,502 — 75,083 — 75,083 Total $ 714,215 $ — $ 682,575 $ — $ 682,575 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

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Commitments The Company leases offices, equipment and other facilities, two water systems from cities, and has long-term commitments to purchase water from water wholesalers. The commitments are noted in the table below. Facility Leases System Lease Water Supply Contracts* Capital Lease Obligations 2018 $ 950 $ 422 $ 30,708 $ 1,053 2019 620 — 30,708 1,284 2020 549 — 30,709 977 2021 341 — 30,709 977 2022 302 — 30,710 977 Thereafter 3,078 — 536,826 3,581 _______________________________________________________________________________ * Estimated annual contractual obligations are based on the same payment levels as 2017. Facility Leases Company Facility leases include office and other facilities in many of its operating districts. The total paid and charged to operations for such leases was $1.1 million in 2017, $1.0 million in 2016, and $1.1 million in 2015. System Lease The system lease is a 15 -year lease with the City of Commerce that expires in June of 2018. The lease includes an annual lease payment of $0.8 million per year plus a cost savings sharing arrangement. In 2017, the Company bid to renew the lease agreement after June 2018 and expects the City of Commerce to release the results of the bidding process in 2018. Water Supply Contracts The Company has a long-term contract with the Santa Clara Valley Water District that requires the Company to purchase minimum annual water quantities. Purchases are priced at the districts then-current wholesale water rate. The Company operates to purchase sufficient water to equal or exceed the minimum quantities under the contract. The total paid to Santa Clara Valley Water District was $9.1 million in 2017, $8.5 million in 2016, and $6.3 million in 2015. The Company also has a water supply contract with Stockton East Water District (SEWD) that requires a fixed, annual payment. Each year, the fixed annual payment is adjusted for changes to SEWD's costs. Because of the fixed annual price arrangement, the Company operates to receive as much water as possible from SEWD in order to minimize the cost of operating Company-owned wells used to supplement SEWD deliveries. The total paid under the contract was $14.1 million in 2017, $12.2 million in 2016, and $9.8 million in 2015. Future increased costs by SEWD are expected to be offset by a decline in the allocation of costs to the Company, as other customers of SEWD are expected to receive a larger allocation based upon growth of their service areas. On September 21, 2005, the Company entered into an agreement with Kern County Water Agency (Agency) to obtain treated water for the Company's operations. The term of the agreement is to January 1, 2035, or until the repayment of the Agency's bonds (described hereafter) occurs. Under the terms of the agreement, the Company is obligated to purchase approximately 20,500 acre feet of treated water per year. The Company is obligated to pay the Capital Facilities Charge and the Treated Water Charge regardless of whether it can use the water in its operation, and is obligated for these charges even if the Agency cannot produce an adequate amount to supply the 20,500 acre feet in the year. This agreement supersedes a prior agreement with Kern County Water Agency for the supply of 11,500 acre feet of water per year. Three other parties, including the City of Bakersfield, are also obligated to purchase a total of 32,500 acre feet per year under separate agreements with the Agency. Further, the Agency has the right to proportionally reduce the water supply provided to all of the participants if it cannot produce adequate supplies. If any of the other parties does not use its allocation, that party is obligated to pay its contracted amount. If any of the parties were to default on making payments of the Capital Facilities Charge, then the other parties are obligated to pay for the defaulting party's share on a pro-rata basis. If there is a payment default by a party and the remaining parties have to make payments, they are also entitled to a pro-rata share of the defaulting party's water allocation. The Company expects to use all its entitled water in its operations every year. In addition, if the Company were to pay for and receive additional amounts of water due to a default of another participating party; the Company believes it could use this additional water in its operations without incurring substantial incremental cost increases. If additional treated water is available, all parties have an option to purchase this additional treated water, subject to the Agency's right to allocate the water among the parties. The total obligation of all parties, excluding the Company, is approximately $82.4 million to the Agency. Based on the credit worthiness of the other participants, which are government entities, it is believed to be highly unlikely that the Company would be required to assume any other parties' obligations under the contract due to their default. The Company pays a capital facilities charge and charges related to treated water that together total $9.1 million annually, which equates to $441.9 dollars per acre foot. Total treated water charge for 2017 was $3.0 million . As treated water is being delivered, the Company will also be obligated for the Company's portion of the operating costs; that portion is currently estimated to be $64.2 dollars per acre foot. The actual amount will vary due to variations from estimates, inflation, and other changes in the cost structure. Our overall estimated cost of $441.9 dollars per acre foot is less than the estimated cost of procuring untreated water (assuming water rights could be obtained) and then providing treatment. Capital Lease Obligations There are two capital leases; the most significant was the City of Hawthorne water system. In 2011, the Company entered into a 15 -year capital lease agreement to operate the City of Hawthorne water system. The system, which is located near the Hermosa Redondo district, serves about half of Hawthorne's population. The agreement required us to make an up-front $8.1 million lease deposit to the city that is being amortized over the lease term. Additionally, annual lease payments of $1.0 million are made to the city and shall be increased or decreased each year on July 1, by the same percentage that the rates charged to customers served by the water system increased or decreased, exclusive of pass-through increases or decreases in the cost of water, power, and city-imposed fees, compared to the rates in effect on July 1 of the prior year, provided, that in no event will the annual lease payment be less than $0.9 million . Under the lease the Company is responsible for all aspects of system operation and capital improvements, although title to the system and system improvements reside with the city. In exchange, the Company receives all revenue from the water system, which was $10.0 million , $8.5 million , and $8.0 million in 2017, 2016, and 2015, respectively. At the end of the lease, the city is required to reimburse the Company for the unamortized value of capital improvements made during the term of the lease. The annual payments were $1.0 million in 2017, $1.0 million in 2016, and $0.9 million in 2015. The capital lease asset was $6.8 million as of December 31, 2017. Contingencies Groundwater Contamination The Company has undertaken litigation against third parties to recover past and future costs related to ground water 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 contamination litigation to be used first to pay transactional expenses, then to make customers 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. As previously reported, Cal Water has filed with the City of Bakersfield, in the Superior Court of California, a lawsuit that names potentially PRPs, who manufactured and distributed products containing 1,2,3 trichloropropane (TCP) in California. TCP has been detected in the ground water. The lawsuit seeks to recover treatment costs necessary to remove TCP. On December 20, 2017, Cal Water entered into an $85.0 million settlement agreement and release of claims with the PRPs, in California Water Service Company and City of Bakersfield v. The Dow Chemical Company, et al., Civil Case No. CIV-470999 (TCP Action). The TCP Action seeks damages and other relief related to the PRPs’ alleged contamination of drinking water supply and water wells with the chemical TCP. The proceeds from the settlement, after payment of the legal fees, was $56.0 million and will be used to reimburse a portion of the capital costs associated with Cal Water’s remediation efforts related to such alleged TCP contamination. Under the terms of the Agreement, the PRPs are released from all claims regarding 47 of the 57 total claimed wells, and Cal Water agrees to file a dismissal with prejudice of the TCP Action. The PRPs are also released from future claims regarding TCP contamination of any other wells, unless and until Cal Water has installed granular activated carbon filtration systems or other then-approved Sate treatment technology for TCP on, or replaced, 36 wells due to TCP contamination. As of December 31, 2017, Cal Water believes the proceeds are non-taxable based upon its intent to reinvest them in qualifying assets. Other Legal Matters From time to time, the Company is involved in various disputes and litigation matters that arise in the ordinary course of business. The status of each significant matter is reviewed and assessed for potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount of the range of loss can be estimated, a liability is accrued for the estimated loss in accordance with the accounting standards for contingencies. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the time. While the outcome of these disputes and litigation matters cannot be predicted with any certainty, management does not believe when taking into account existing reserves the ultimate resolution of these matters will materially affect the Company's financial position, results of operations, or cash flows. The Company has recognized a liability of $6.1 million for all known legal matters as of December 31, 2017 mostly due to potable water main leaks and other work related 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.

QUARTERLY FINANCIAL DATA (UNAUD

QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Data [Abstract]
QUARTERLY FINANCIAL DATA (UNAUDITED)	QUARTERLY FINANCIAL DATA (UNAUDITED) The Company's common stock is traded on the New York Stock Exchange under the symbol "CWT." 2017 First Second Third Fourth Operating revenue $ 122,036 $ 171,132 $ 211,731 $ 161,991 Net operating income 8,050 25,259 41,196 20,118 Net income 1,132 18,531 33,849 13,669 Diluted earnings per share 0.02 0.39 0.70 0.29 Common stock market price range: High 37.60 39.40 39.65 46.15 Low 32.45 32.75 36.30 38.15 Dividends paid per common share 0.1800 0.1800 0.1800 0.1800 2016 First Second Third Fourth Operating revenue $ 121,727 $ 152,445 $ 184,268 $ 150,930 Net operating income 6,270 18,534 30,055 21,335 Net income (798 ) 11,508 22,875 15,090 Diluted earnings (loss) per share (0.02 ) 0.24 0.48 0.31 Common stock market price range: High 27.33 34.95 35.62 36.85 Low 22.48 26.22 29.93 29.25 Dividends paid per common share 0.1725 0.1725 0.1725 0.1725

SUBSEQUENT EVENT

SUBSEQUENT EVENT	12 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENT	On February 6, 2018, the CPUC issued the proposed decision of the assigned administrative law judge, which applies to Cal Water and three other Class A water companies (the Joint Parties), in response to the Joint Parties’ request to set their cost of capital for 2018, 2019, and 2020. The proposed decision would lower Cal Water’s authorized return on equity from 9.43% to 8.22% . If the proposed decision were adopted without changes, Cal Water would be required to reduce its rates collected from California customers by approximately $13.0 million , which will reduce Cal Water's 2018 net income and net cash provided by operating activities. A proposed decision must be approved by the full Commission to go into effect. The Commission could modify or reject the proposed decision and will first consider the matter at its meeting on March 22, 2018.

CONDENSED CONSOLIDATING FINANCI

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS	12 Months Ended
	Dec. 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 December 31, 2017 and 2016, the condensed consolidating statements of income for the years ended December 31, 2017, 2016, and 2015, and the condensed consolidating statements of cash flows for the years ended December 31, 2017, 2016, and 2015, of (i) California Water Service Group, the guarantor of the First Mortgage Bonds and the parent company; (ii) California Water Service Company, the issuer of the First Mortgage Bonds and a 100% owned consolidated subsidiary of California Water Service Group; and (iii) the other 100% owned non-guarantor consolidated subsidiaries of California Water Service Group. No other subsidiary of the Company guarantees the securities. The condensed consolidating statement of cash flows for the years ended December 31, 2016 and 2015 reflect 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 December 31, 2017 Parent Cal Water All Other Consolidating Consolidated (In thousands) ASSETS Utility plant: Utility plant $ 1,321 $ 2,771,259 $ 204,795 $ (7,196 ) $ 2,970,179 Less accumulated depreciation and amortization (919 ) (868,762 ) (54,543 ) 2,010 (922,214 ) Net utility plant 402 1,902,497 150,252 (5,186 ) 2,047,965 Current assets: Cash and cash equivalents 4,728 80,940 9,108 — 94,776 Receivables and unbilled revenue — 110,928 4,526 — 115,454 Receivables from affiliates 19,952 4,093 43 (24,088 ) — Other current assets 80 16,569 994 — 17,643 Total current assets 24,760 212,530 14,671 (24,088 ) 227,873 Other assets: Regulatory assets — 397,333 3,814 — 401,147 Investments in affiliates 698,690 — — (698,690 ) — Long-term affiliate notes receivable 26,441 — — (26,441 ) — Other assets 192 59,581 3,822 (205 ) 63,390 Total other assets 725,323 456,914 7,636 (725,336 ) 464,537 TOTAL ASSETS $ 750,485 $ 2,571,941 $ 172,559 $ (754,610 ) $ 2,740,375 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders' equity $ 693,462 $ 626,300 $ 77,647 $ (703,947 ) $ 693,462 Affiliate long-term debt — — 26,441 (26,441 ) — Long-term debt, less current maturities — 514,952 841 — 515,793 Total capitalization 693,462 1,141,252 104,929 (730,388 ) 1,209,255 Current liabilities: Current maturities of long-term debt — 15,598 322 — 15,920 Short-term borrowings 55,100 220,000 — — 275,100 Payables to affiliates — 580 23,508 (24,088 ) — Accounts payable — 90,561 3,394 — 93,955 Accrued expenses and other liabilities 271 104,002 1,711 — 105,984 Total current liabilities 55,371 430,741 28,935 (24,088 ) 490,959 Unamortized investment tax credits — 1,724 — — 1,724 Deferred income taxes 1,652 189,004 2,424 (134 ) 192,946 Pension and postretirement benefits other than pensions — 252,141 — — 252,141 Regulatory and other long-term liabilities — 220,779 3,348 — 224,127 Advances for construction — 181,979 523 — 182,502 Contributions in aid of construction — 154,321 32,400 — 186,721 TOTAL CAPITALIZATION AND LIABILITIES $ 750,485 $ 2,571,941 $ 172,559 $ (754,610 ) $ 2,740,375 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2016 Parent Cal Water All Other Consolidating Consolidated (In thousands) 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 long-term 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 For the Year Ended December 31, 2017 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 626,381 $ 40,509 $ — $ 666,890 Operating expenses: Operations: Purchased water — 198,682 399 — 199,081 Purchased power — 21,021 7,841 — 28,862 Pump taxes — 13,924 — — 13,924 Administrative and general — 92,195 10,719 — 102,914 Other — 67,069 7,903 (524 ) 74,448 Maintenance — 21,595 935 — 22,530 Depreciation and amortization 94 72,327 4,453 (91 ) 76,783 Income tax (benefit) expense (498 ) 27,129 1,238 1,059 28,928 Property and other taxes (4 ) 21,778 3,023 — 24,797 Total operating (income) expenses (408 ) 535,720 36,511 444 572,267 Net operating income 408 90,661 3,998 (444 ) 94,623 Other income and expenses: Non-regulated revenue 1,985 14,608 1,814 (2,509 ) 15,898 Non-regulated expenses — (8,139 ) (1,251 ) — (9,390 ) Allowance for equity funds used during construction — 3,750 — — 3,750 Gain on non-utility properties — 663 — — 663 Income tax expense on other income and expenses (809 ) (4,434 ) (214 ) 1,022 (4,435 ) Net other income 1,176 6,448 349 (1,487 ) 6,486 Interest: Interest expense 1,131 35,116 2,026 (1,985 ) 36,288 Allowance for borrowed funds used during construction — (2,319 ) (41 ) — (2,360 ) Net interest expense 1,131 32,797 1,985 (1,985 ) 33,928 Equity earnings of subsidiaries 66,728 — — (66,728 ) — Net income $ 67,181 $ 64,312 $ 2,362 $ (66,674 ) $ 67,181 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2016 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 570,514 $ 38,856 $ — $ 609,370 Operating expenses: Operations: Purchased water — 181,018 497 — 181,515 Purchased power — 19,791 7,389 — 27,180 Pump taxes — 11,298 — — 11,298 Administrative and general — 88,001 10,473 — 98,474 Other — 73,918 6,669 (505 ) 80,082 Maintenance — 22,053 940 — 22,993 Depreciation and amortization 220 59,138 4,337 (96 ) 63,599 Income tax (benefit) expense (398 ) 22,743 1,449 1,010 24,804 Property and other taxes — 20,331 2,900 — 23,231 Total operating (income) expenses (178 ) 498,291 34,654 409 533,176 Net operating income 178 72,223 4,202 (409 ) 76,194 Other Income and Expenses: Non-regulated revenue 1,850 15,114 2,006 (2,385 ) 16,585 Non-regulated expenses — (10,122 ) (1,323 ) — (11,445 ) Gain on sale of non-utility properties — (146 ) — — (146 ) Income tax expense on other income and expenses (754 ) (1,976 ) (254 ) 972 (2,012 ) Net other income 1,096 2,870 429 (1,413 ) 2,982 Interest: Interest expense 757 32,682 1,906 (1,879 ) 33,466 Allowance for borrowed funds used during construction — (2,905 ) (60 ) — (2,965 ) Net interest expense 757 29,777 1,846 (1,879 ) 30,501 Equity earnings of subsidiaries 48,158 — — (48,158 ) — Net income $ 48,675 $ 45,316 $ 2,785 $ (48,101 ) $ 48,675 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2015 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 552,202 $ 36,166 $ — $ 588,368 Operating expenses: Operations: Purchased water — 168,157 400 — 168,557 Purchased power — 20,282 7,608 — 27,890 Pump taxes — 11,479 — — 11,479 Administrative and general — 101,244 11,866 — 113,110 Other — 61,154 6,599 (505 ) 67,248 Maintenance — 20,659 804 — 21,463 Depreciation and amortization 228 56,911 4,343 (101 ) 61,381 Income tax (benefit) expense (388 ) 23,964 (56 ) 1,008 24,528 Property and other taxes — 18,848 2,711 — 21,559 Total operating expenses (160 ) 482,698 34,275 402 517,215 Net operating income 160 69,504 1,891 (402 ) 71,153 Other Income and Expenses: Non-regulated revenue 1,787 14,460 1,699 (2,322 ) 15,624 Non-regulated expenses — (12,870 ) (1,174 ) — (14,044 ) Gain on sale of non-utility properties — 315 — — 315 Income tax expense on other income and expenses (728 ) (776 ) (224 ) 967 (761 ) Net other income 1,059 1,129 301 (1,355 ) 1,134 Interest: Interest expense 718 28,450 1,834 (1,817 ) 29,185 Allowance for borrowed funds used during construction — (1,873 ) (42 ) — (1,915 ) Net interest expense 718 26,577 1,792 (1,817 ) 27,270 Equity earnings of subsidiaries 44,516 — — (44,516 ) — Net income (loss) $ 45,017 $ 44,056 $ 400 $ (44,456 ) $ 45,017 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2017 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 67,181 $ 64,312 $ 2,362 $ (66,674 ) $ 67,181 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (66,728 ) — — 66,728 — Dividends received from Affiliates 34,563 — — (34,563 ) — Depreciation and amortization 94 74,041 4,548 (91 ) 78,592 Change in value of life insurance contract — (3,058 ) — — (3,058 ) Stock-based compensation 3,118 — — — 3,118 Gain on sale of non-utility properties — (663 ) — — (663 ) Changes in normalized deferred income taxes — 21,087 — — 21,087 Allowance for equity funds used during construction — (3,750 ) — — (3,750 ) Changes in operating assets and liabilities 184 (36,611 ) 38 — (36,389 ) Other changes in noncurrent assets and liabilities 254 18,860 2,573 37 21,724 Net cash provided by operating activities 38,666 134,218 9,521 (34,563 ) 147,842 Investing activities: Utility plant expenditures (4 ) (252,055 ) (7,135 ) — (259,194 ) TCP settlement proceeds — 56,004 — — 56,004 Proceeds from sale of non-utility assets — 666 — — 666 Change in affiliate advances 172 (485 ) (50 ) 363 — Issuance of affiliate short-term borrowings (2,610 ) — — 2,610 — Reduction of affiliate long-term debt 1,356 — — (1,356 ) — Life insurance benefits — 1,558 — — 1,558 Purchase of life insurance — (5,605 ) — — (5,605 ) Change in restricted cash — (81 ) — — (81 ) Net cash used in investing activities (1,086 ) (199,998 ) (7,185 ) 1,617 (206,652 ) Financing Activities: Short-term borrowings, net of expenses — 265,000 — — 265,000 Repayment of short-term borrowings (2,000 ) (85,000 ) — — (87,000 ) Change in affiliate advances — 41 322 (363 ) — Proceeds from affiliate short-term borrowings — — 2,610 (2,610 ) — Repayment of affiliates long-term debt — — (1,356 ) 1,356 — Retirement of long-term debt — (26,223 ) (606 ) — (26,829 ) Advances and contribution in aid of construction — 21,075 294 — 21,369 Refunds of advances for construction — (8,373 ) (5 ) — (8,378 ) Repurchase of common stock (1,505 ) — — — (1,505 ) Dividends paid to non-affiliates (34,563 ) — — — (34,563 ) Dividends paid to affiliates — (33,015 ) (1,548 ) 34,563 — Net cash provided by (used in) financing activities (38,068 ) 133,505 (289 ) 32,946 128,094 Change in cash and cash equivalents (488 ) 67,725 2,047 — 69,284 Cash and cash equivalents at beginning of period 5,216 13,215 7,061 — 25,492 Cash and cash equivalents at end of year $ 4,728 $ 80,940 $ 9,108 $ — $ 94,776 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2016 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 48,675 $ 45,316 $ 2,785 $ (48,101 ) $ 48,675 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (48,158 ) — — 48,158 — Dividends received from affiliates 33,081 — — (33,081 ) — Depreciation and amortization 220 60,572 4,507 (96 ) 65,203 Amortization of debt premium — 871 — — 871 Changes in normalized deferred income taxes — 26,818 — — 26,818 Change in value of life insurance contracts — (1,026 ) — — (1,026 ) Stock-based compensation 2,849 — — — 2,849 (Gain) on sale of non-utility properties — 146 — — 146 Write-off of capital costs — 3,221 — — 3,221 Changes in operating assets and liabilities (14 ) 6,534 261 — 6,781 Other changes in noncurrent assets and liabilities 355 4,645 1,867 39 6,906 Net cash provided by operating activities 37,008 147,097 9,420 (33,081 ) 160,444 Investing activities: Utility plant expenditures — (224,378 ) (4,560 ) — (228,938 ) Proceeds from sale of non-utility assets — 395 — — 395 Change in affiliate advances 291 1,111 (67 ) (1,335 ) — Collection of affiliate short-term borrowings 365 42,100 — (42,465 ) — Issuance of affiliate short-term borrowings (2,365 ) (20,600 ) — 22,965 — Collection of affiliate long-term debt 1,175 — — (1,175 ) — Life insurance benefits — 495 — — 495 Purchase of life insurance — (2,857 ) — — (2,857 ) Change in restricted cash — 66 — — 66 Net cash used in investing activities (534 ) (203,668 ) (4,627 ) (22,010 ) (230,839 ) Financing Activities: Short-term borrowings 44,100 101,000 — — 145,100 Repayment of short-term borrowings (20,615 ) (61,000 ) — — (81,615 ) Change in affiliate advances — (128 ) (1,207 ) 1,335 — Proceeds from affiliate short-term borrowings 20,600 — 2,365 (22,965 ) — Repayment of affiliate short-term borrowings (42,100 ) — (365 ) 42,465 — Repayment of affiliates long-term debt — — (1,175 ) 1,175 — Issuance of long term debt, net of expenses — 49,823 — — 49,823 Advances and contribution in aid of construction — 21,329 119 — 21,448 Refunds of advances for construction — (6,855 ) (30 ) — (6,885 ) Retirement of long-term debt — (6,548 ) (448 ) — (6,996 ) Repurchase of common stock (744 ) — — — (744 ) Dividends paid to non-affiliates (33,081 ) — — — (33,081 ) Dividends paid to affiliates — (32,105 ) (976 ) 33,081 — Net cash provided by (used in) financing activities (31,840 ) 65,516 (1,717 ) 55,091 87,050 Change in cash and cash equivalents 4,634 8,945 3,076 — 16,655 Cash and cash equivalents at beginning of period 582 4,270 3,985 — 8,837 Cash and cash equivalents at end of year $ 5,216 $ 13,215 $ 7,061 $ — $ 25,492 California Water Service Group CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2015 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 45,017 $ 44,056 $ 400 $ (44,456 ) $ 45,017 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (44,516 ) — — 44,516 — Dividends received from affiliates 32,066 — — (32,066 ) — Depreciation and amortization 228 58,385 4,670 (101 ) 63,182 Change in value of life insurance contracts — 218 — — 218 Stock-based compensation 2,578 — — — 2,578 (Gain) on sale of non-utility properties — (315 ) — — (315 ) Changes in normalized deferred income taxes — 24,393 — — 24,393 Changes in operating assets and liabilities (758 ) (6,417 ) 5,392 (94 ) (1,877 ) Other changes in noncurrent assets and liabilities 1,774 14,807 (4,943 ) 135 11,773 Net cash provided by operating activities 36,389 135,127 5,519 (32,066 ) 144,969 Investing activities: Utility plant expenditures — (171,645 ) (5,188 ) — (176,833 ) Proceeds from sale of non-utility assets — 319 — — 319 Investment in affiliates (1,000 ) — — 1,000 — Issuance of affiliate short-term borrowings (3,280 ) (21,500 ) — 24,780 — Collection of affiliate short-term borrowings 3,000 — — (3,000 ) — Change in affiliate advances (239 ) (1,111 ) 115 1,235 — Collection of affiliate long-term debt 1,007 — — (1,007 ) — Purchase of life insurance — (2,032 ) — — (2,032 ) Change in restricted cash — 288 — — 288 Net cash used in investing activities (512 ) (195,681 ) (5,073 ) 23,008 (178,258 ) Financing Activities: Short-term borrowings, net of expenses 15,101 79,202 — — 94,303 Repayment of short-term borrowings (43,600 ) (97,400 ) — — (141,000 ) Investment from affiliates — — 1,000 (1,000 ) — Change in affiliate advances — 397 838 (1,235 ) — Proceeds from affiliate short-term borrowings 21,500 — 3,280 (24,780 ) — Repayment of affiliate short-term borrowings — — (3,000 ) 3,000 — Repayment of affiliate long-term debt — — (1,007 ) 1,007 — Proceeds from long-term debt — 99,293 50 — 99,343 Retirement of long-term debt — (6,528 ) (475 ) — (7,003 ) Advances and contributions in aid of construction — 14,195 1,831 — 16,026 Refunds of advances for construction — (6,681 ) (45 ) — (6,726 ) Repurchase of common stock (338 ) — — — (338 ) Dividends paid to non-affiliates (32,066 ) — — — (32,066 ) Dividends paid to affiliates — (31,583 ) (483 ) 32,066 — Net cash provided by (used in) financing activities (39,403 ) 50,895 1,989 9,058 22,539 Change in cash and cash equivalents (3,526 ) (9,659 ) 2,435 — (10,750 ) Cash and cash equivalents at beginning of period 4,108 13,929 1,550 — 19,587 Cash and cash equivalents at end of year $ 582 $ 4,270 $ 3,985 $ — $ 8,837

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the Company's accounts and those of its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated from the consolidated financial statements. In the opinion of management, the consolidated financial statements reflect all adjustments that are necessary to provide a fair presentation of the results for the periods covered. The preparation of the Company's consolidated 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 consolidated 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, utility plant useful lives, 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.
Revenue	Revenue Revenue generally includes monthly cycle customer billings for regulated water and wastewater services at rates authorized by regulatory commissions (plus an estimate for water used between the customer's last meter reading and the end of the accounting period) and billings to certain non-regulated customers at rates authorized by contract with government agencies. The Company's regulated water and related utility services requirements are authorized by the Commissions in the states in which the Company operates. 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 or 18 months. Cal Water defers net WRAM and MCBA operating revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting 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 $0.7 million and $0.8 million as of December 31, 2017 and 2016, respectively. This liability is included in "other accrued liabilities" on our consolidated balance sheets. Non-Regulated Revenue Revenues from non-regulated operations and maintenance agreements are recognized when services have been rendered to companies or municipalities under such agreements. For construction and design services, revenue is generally recognized on the completed contract method, as most projects are completed in less than 3 months . Other non-regulated revenue is recognized when title has transferred to the buyer, or ratably over the term of the lease.
Non-Regulated Revenue	Non-Regulated Revenue Revenues from non-regulated operations and maintenance agreements are recognized when services have been rendered to companies or municipalities under such agreements. For construction and design services, revenue is generally recognized on the completed contract method, as most projects are completed in less than 3 months . Other non-regulated revenue is recognized when title has transferred to the buyer, or ratably over the term of the lease.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The Company provides an allowance for doubtful accounts receivable. The allowance is based upon specific identified accounts plus an estimate of uncollectible accounts based upon historical percentages. The balance of customer receivables is net of the allowance for doubtful accounts of $0.8 million , $0.8 million , and $0.7 million as of December 31, 2017, 2016 and 2015, respectively. The activities in the allowance for doubtful accounts are as follows: 2017 2016 2015 Beginning Balance $ 830 $ 730 $ 697 Provision for uncollectible accounts 1,570 2,111 1,674 Net write off of uncollectible accounts (1,627 ) (2,011 ) (1,641 ) Ending Balance $ 773 $ 830 $ 730
Utility Plant	Utility Plant Utility plant is carried at original cost when first constructed or purchased, or at fair value when acquired through acquisition. When depreciable plant is retired, the cost is eliminated from utility plant accounts and such costs are charged against accumulated depreciation. Maintenance of utility plant is charged to operating expenses as incurred. Maintenance projects are not accrued for in advance. Intangible assets acquired as part of water systems purchased are recorded at fair value. All other intangibles have been recorded at cost and are amortized over their useful life. The following table represents depreciable plant and equipment as of December 31: 2017 2016 Equipment $ 592,612 $ 561,909 Office buildings and other structures 245,877 218,711 Transmission and distribution plant 1,891,268 1,741,554 Total $ 2,729,757 $ 2,522,174 Depreciation of utility plant is computed on a straight-line basis over the assets' estimated useful lives including cost of removal of certain assets as follows: Useful Lives Equipment 5 to 50 years Transmission and distribution plant 40 to 65 years Office Buildings and other structures 50 years The provision for depreciation expressed as a percentage of the aggregate depreciable asset balances was 3.00% in 2017, 2.70% in 2016 and 2.80% in 2015.
Asset Retirement Obligations	Asset Retirement Obligation The Company has a legal obligation to retire wells in accordance with State Water Resources Control Board regulations. In addition, upon decommission of a wastewater plant or lift station certain wastewater infrastructure would need to be retired in accordance with State Water Resources Control Board regulations. An asset retirement cost and corresponding retirement obligation is recorded when a well or waste water infrastructure is placed into service. As of December 31, 2017 and 2016, the retirement obligation is estimated to be $21.2 million and $20.3 million , respectively. The change only impacted the consolidated balance sheet.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments with remaining maturities of three months or less at the time of acquisition. Cash and cash equivalents was $94.8 million and $25.5 million as of December 31, 2017 and December 31, 2016, respectively.
Restricted Cash	Restricted Cash In 2017 restricted cash includes $0.5 million of proceeds collected through a surcharge on certain customers' bills plus interest earned on the proceeds and is used to service California Safe Drinking Water Bond obligations. All restricted cash is included in "taxes, prepaid expenses, and other assets". As of December 31, 2017 and 2016, restricted cash was $0.6 million and $0.4 million , respectively.
Regulatory Assets and Liabilities	Regulatory Assets and Liabilities Because the Company operates almost exclusively in a regulated business, the Company is subject to the accounting standards for regulated utilities. The Commissions in the states in which the Company operates establish rates that are designed to permit the recovery of the cost of service and a return on investment. The Company capitalizes and records regulatory assets for costs that would otherwise be charged to expense if it is probable that the incurred costs will be recovered in future rates. Regulatory assets are amortized over the future periods that the costs are expected to be recovered. If costs expected to be incurred in the future are currently being recovered through rates, the Company records those expected future costs as regulatory liabilities. In addition, the Company records regulatory liabilities when the Commissions require a refund to be made to the Company's customers over future periods. Determining probability requires significant judgment by management and includes, but is not limited to, consideration of testimony presented in regulatory hearings, proposed regulatory decisions, final regulatory orders, and the strength or status of applications for rehearing or state court appeals. If the Company determines that a portion of the Company's assets used in utility operations is not recoverable in customer rates, the Company would be required to recognize the loss of the assets disallowed. Regulatory assets and liabilities were comprised of the following as of December 31: 2017 2016 Regulatory Assets Pension and retiree group health $ 214,249 $ 188,880 Property-related temporary differences (tax benefits flowed through to customers) 87,323 92,099 Other accrued benefits 28,251 27,503 Net WRAM and MCBA long-term accounts receivable 34,879 16,148 Asset retirement obligations, net 17,126 15,812 Interim rates long-term accounts receivable 4,568 4,605 Tank coating 10,998 8,452 Health care balancing account 496 1,000 Pension balancing account 2,322 — Other regulatory assets 935 1,431 Total Regulatory Assets $ 401,147 $ 355,930 Regulatory Liabilities Future tax benefits due to customers $ 168,343 $ 33,231 Health care balancing account 7,749 — Conservation program 2,273 584 Pension balancing account 364 695 Net WRAM and MCBA long-term payable 513 611 Other regulatory liabilities 464 3,614 Total Regulatory Liabilities $ 179,706 $ 38,735 The increase in future tax benefits due to customers as of December 31, 2017, as compared to the prior year, was due to federal tax law changes enacted by the federal Tax Cuts and Jobs Act (TCJA) on December 22, 2017. The TCJA reduced the federal corporate income tax rate from 35 percent to 21 percent beginning on January 1, 2018 and GAAP requires the Company to re-measure all existing deferred income tax assets and liabilities to reflect the reduction in the federal tax rate on the enactment date. The Company is working with state regulators to finalize the ratepayer refund process to ensure compliance with federal normalization rules. The Company's pension and postretirement health care benefits regulatory asset is the amount the Company expects to recover from customers in the future for these plans at the end of the calendar year. The property-related temporary differences are primarily due to: (i) the difference between book and federal income tax depreciation on utility plant that was placed in service before the regulatory Commissions adopted normalization for rate making purposes; and (ii) certain (state) deferred taxes for which flow through accounting continues to be applied to originating deferred taxes. The regulatory asset will be recovered in rates in future periods as the tax effects of the temporary differences previously flowed-through to customers reverse. Other accrued benefits are accrued benefits for vacation, self-insured workers' compensation, and directors' retirement benefits. The net WRAM and MCBA long-term accounts receivable is the under-collected portion of recorded revenues that are not expected to be collected from customers within 12 months . The asset retirement obligation regulatory asset represents the difference between costs associated with asset retirement obligations and amounts collected in rates. Tank coating represents the maintenance costs for tank coating projects that are recoverable from customers. The health care balancing account regulatory asset/liability is for incurred health care costs that exceeded/was below the cost recovery in rates and is recoverable/refundable from/to customers. Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets for 2017 and 2016 were $36.8 million and $30.3 million , respectively. The short-term regulatory assets, as of December 31, 2017, primarily consist of net WRAM and MCBA receivables. As of December 31, 2016, the short-term regulatory assets were primarily interim rates, 2014-2015 drought recovery, and net WRAM and MCBA receivables. The short-term portion of regulatory liabilities for 2017 and 2016 were $59.3 million and $4.8 million , respectively. The short-term regulatory liabilities, as of December 31, 2017, primarily consist of TCP settlement proceeds (see Note 14 - Commitments and Contingencies) and net WRAM and MCBA liability balances. 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.
Impairment of Long-Lived Assets, Intangibles and Goodwill	Impairment of Long-Lived Assets, Intangibles and Goodwill The Company's long-lived assets include transmission and distribution plant, equipment, land, buildings, and intangible assets. Long-lived assets, other than land, are depreciated or amortized over their estimated useful lives, and are reviewed for impairment whenever changes in circumstances indicate the carrying value of the assets may not be recoverable. Such circumstances would include items such as a significant decrease in the market value of a long-lived asset, a significant adverse change in the manner in which the asset is being used or planned to be used or in its physical condition, or a history of operating or cash flow losses associated with the uses of the asset. In addition, changes in the expected useful life of these long-lived assets may also be an impairment indicator. When such events or changes occur, the Company estimates the fair value of the asset from future cash flows expected to result from the use and, if applicable, the eventual disposition of the assets, and compare that to the carrying value of the asset. If the carrying value is greater than the fair value, then an impairment loss is recognized equal to the amount by which the asset's carrying value exceeds its fair value. The key variables that must be estimated include assumptions regarding sales volume, rates, operating costs, labor and other benefit costs, capital additions, assumed discount rates and other economic factors. These variables require significant management judgment and include inherent uncertainties since they are forecasting future events. A variation in the assumptions used could lead to a different conclusion regarding the realizability of an asset and, thus could have a significant effect on the consolidated financial statements. Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is not amortized but instead is reviewed annually at November 30 th for impairment or more frequently if impairment indicators arise. The impairment test is performed at the reporting unit level using a two- step, fair-value based approach. The first step determines the fair value of the reporting unit and compares it to the reporting unit's carrying value. If the fair value of the reporting unit is less than its carrying amount, a second step is performed to measure the amount of impairment loss, if any. The second step allocates the fair value of the reporting unit to the Company's tangible and intangible assets and liabilities. This derives an implied fair value for the reporting unit's goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized equal to the excess.
Long-Term Debt Premium, Discount and Expense	Long-Term Debt Premium, Discount and Expense The premiums, discounts, and issuance expenses on long-term debt are amortized over the original lives of the related debt on a straight-line basis which approximates the effective interest method. Premiums paid on the early redemption of certain debt and the unamortized original issuance discount and expense are amortized over the life of new debt issued in conjunction with the early redemption. Amortization expense included in interest expense for 2017, 2016, and 2015 was $0.9 million , $0.9 million , and $0.8 million , respectively.
Advances for Construction	Advances for Construction Advances for construction consist of payments received from developers for installation of water production and distribution facilities to serve new developments. Advances are excluded from rate base for rate setting purposes. Annual refunds are made to developers without interest. Advances of $182.5 million , and $182.4 million at December 31, 2017 and 2016, respectively, will be refunded primarily over a 40 -year period in equal annual amounts. Estimated refunds of advances for the succeeding 5 years are approximately $7.9 million in 2018, $7.7 million in 2019, $7.7 million in 2020, $7.6 million in 2021, and $7.6 million in 2022.
Contributions in Aid of Construction	Contributions in Aid of Construction Contributions in aid of construction represent payments received from developers, primarily for fire protection purposes, which are not subject to refunds. Facilities funded by contributions are included in utility plant, but excluded from rate base. Depreciation related to assets acquired from contributions is charged to the Contributions in Aid of Construction account.
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Measurement of the deferred tax assets and liabilities is at enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The Company evaluates the need for a valuation allowance on deferred tax assets based on historical taxable income and projected taxable income for future tax years. Historically the Commissions reduced revenue requirements for the tax effects of certain originating temporary differences and allowed recovery of these tax costs as the related temporary differences reverse. The Commissions have granted the Company rate increases to reflect the normalization of the tax benefits of the federal accelerated methods and available Investment Tax Credits (ITC) for all assets placed in service after 1980. ITCs are deferred and amortized over the lives of the related properties for book purposes. The CPUC granted flow through for state taxes. Subsequent to 1986, Advances for Construction and Contributions in Aid of Construction were taxable for federal income tax purposes. Subsequent to 1991, Advances for Construction and Contributions in Aid of Construction were subject to California income tax. Due to changes in the federal tax law in 1996 and the California tax law in 1997 only deposits for new services were taxable. In late 2000, federal regulations were further modified to exclude contributions of fire services from taxable income. With the enactment of the TCJA, all Advances for Construction and Contributions in Aid of Construction received from developers after December 22, 2017 became taxable for federal income tax purposes. The accounting standards for accounting for uncertainty in income taxes allows the inclusion of interest and penalties related to uncertain tax positions as a component of income taxes. See note 10 "Income Taxes".
Workers' Compensation	Workers' Compensation For workers' compensation, the Company estimates the liability associated with claims submitted and claims not yet submitted based on historical data. Expenses for workers compensation insurance are included in rates on a pay-as- you-go basis. Therefore, a corresponding regulatory asset has been recorded.
Earnings per Share	Earnings per Share The computations of basic and diluted earnings per share are noted below. Basic earnings per share are computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. Restricted Stock Awards (RSAs) are included in the common shares outstanding because the shares have all the same voting and dividend rights as issued and unrestricted common stock. The Company did not grant any Stock Appreciation Rights (SARs) in 2017, 2016, and 2015. There were no SARs outstanding as of December 31, 2017 and 2016. As of December 31, 2015, there were 64,500 shares of SARs outstanding. All SARs were dilutive in 2017, 2016, and 2015. The dilutive effect is shown in the table below: 2017 2016 2015 (In thousands, Net income available to common stockholders $ 67,181 $ 48,675 $ 45,017 Weighted average common shares, basic 48,009 47,953 47,865 Dilutive SARs (treasury method) — 3 15 Weighted average common shares, dilutive 48,009 47,956 47,880 Earnings per share—basic $ 1.40 $ 1.02 $ 0.94 Earnings per share—diluted $ 1.40 $ 1.01 $ 0.94
Stock-based Compensation	Stock-based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award. The Company recognizes compensation expense on a straight-line basis over the requisite service period, which is the vesting period.
Comprehensive Income or Loss	Comprehensive Income or Loss Comprehensive income for all periods presented was the same as net income.
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income The Company did not have any accumulated other comprehensive income or loss transactions as of December 31, 2017 and 2016
New Accounting Standards	New Accounting Standards Issued But Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customer s, 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 completed an evaluation of the new revenue standard and implemented the standard on January 1, 2018 using the modified retrospective method. The adoption of the new revenue standard will not materially impact the timing or recognition of revenue related to the sale and delivery of water to its customers, which is a significant percentage of the Company's revenue. The adoption of the new revenue standard will result in expanded revenue related disclosures. The Company plans to disclose revenues from contracts with customers separately from regulatory balancing account revenue and disaggregate customer contract revenue by customer class. In February 2016, the FASB issued ASU 2016-02, Leases . This update changes the accounting treatment of leases and related disclosure requirements. In November of 2017, the FASB tentatively decided to amend the new leasing guidance such that entities may elect not to restate their comparative periods in the period of adoption. The guidance requires lessees to recognize an asset and liability on the balance sheet for all of their lease obligations. Operating leases were previously not recognized on the balance sheet. 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 expects this standard to increase lease assets and lease liabilities on the Consolidated Balance Sheets. The Company does not expect that the guidance will have a material impact on the Consolidated Statements of Income, Consolidated Statements of Cash Flows, and lease 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 became effective for the Company on January 1, 2018. The Company does not expect the guidance to have a material effect on its consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . 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. The Company has completed an evaluation of the new standard and its impact on its consolidated financial statements and related disclosures and adopted the new accounting standard on January 1, 2018. The adoption of this guidance will change the Company's financial statement presentation of net benefit costs and modify the amounts eligible to be capitalized. However, based on current regulatory authorization, the changes required by the standard will not materially impact the results of operations. Adoption of New Accounting Standards In March 2016, the Financial Accounting Standards Board (FASB) issued updated accounting guidance on simplifying the accounting for share-based payments (Accounting Standards Update (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 twelve month period ended December 31, 2017, the Company recorded $0.6 million of income tax benefits in excess of 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.

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Schedule of activities in the allowance for doubtful accounts	The activities in the allowance for doubtful accounts are as follows: 2017 2016 2015 Beginning Balance $ 830 $ 730 $ 697 Provision for uncollectible accounts 1,570 2,111 1,674 Net write off of uncollectible accounts (1,627 ) (2,011 ) (1,641 ) Ending Balance $ 773 $ 830 $ 730
Schedule of depreciable plant and equipment	The following table represents depreciable plant and equipment as of December 31: 2017 2016 Equipment $ 592,612 $ 561,909 Office buildings and other structures 245,877 218,711 Transmission and distribution plant 1,891,268 1,741,554 Total $ 2,729,757 $ 2,522,174
Schedule of estimated useful lives of depreciable plant and equipment	Depreciation of utility plant is computed on a straight-line basis over the assets' estimated useful lives including cost of removal of certain assets as follows: Useful Lives Equipment 5 to 50 years Transmission and distribution plant 40 to 65 years Office Buildings and other structures 50 years
Schedule of 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 the 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 reduction to interest expense. The amount of AFUDC related to equity funds and to borrowed funds for 2017, 2016, and 2015 are shown in the tables below: 2017 2016 2015 Allowance for equity funds used during construction $ 3,750 $ — $ — Allowance for borrowed funds used during construction 2,360 2,965 1,915 Total $ 6,110 $ 2,965 $ 1,915
Schedule of regulatory assets and liabilities	Regulatory assets and liabilities were comprised of the following as of December 31: 2017 2016 Regulatory Assets Pension and retiree group health $ 214,249 $ 188,880 Property-related temporary differences (tax benefits flowed through to customers) 87,323 92,099 Other accrued benefits 28,251 27,503 Net WRAM and MCBA long-term accounts receivable 34,879 16,148 Asset retirement obligations, net 17,126 15,812 Interim rates long-term accounts receivable 4,568 4,605 Tank coating 10,998 8,452 Health care balancing account 496 1,000 Pension balancing account 2,322 — Other regulatory assets 935 1,431 Total Regulatory Assets $ 401,147 $ 355,930 Regulatory Liabilities Future tax benefits due to customers $ 168,343 $ 33,231 Health care balancing account 7,749 — Conservation program 2,273 584 Pension balancing account 364 695 Net WRAM and MCBA long-term payable 513 611 Other regulatory liabilities 464 3,614 Total Regulatory Liabilities $ 179,706 $ 38,735
Schedule of SARs which were dilutive	All SARs were dilutive in 2017, 2016, and 2015. The dilutive effect is shown in the table below: 2017 2016 2015 (In thousands, Net income available to common stockholders $ 67,181 $ 48,675 $ 45,017 Weighted average common shares, basic 48,009 47,953 47,865 Dilutive SARs (treasury method) — 3 15 Weighted average common shares, dilutive 48,009 47,956 47,880 Earnings per share—basic $ 1.40 $ 1.02 $ 0.94 Earnings per share—diluted $ 1.40 $ 1.01 $ 0.94
Schedule of accounting change	The following tables show the effects of the accounting change to the Condensed Consolidated Statements of Cash Flows for 2016 and 2015: 2016 Cash Flow Classification As Reported on Form 10-K Adjusted Balance on Form 10-K Increase (Decrease) from Retrospective Adoption Other changes in noncurrent assets and liabilities $ 6,162 $ 6,906 $ 744 Net cash provided by operating activities 159,700 160,444 744 Repurchase of common stock — (744 ) (744 ) Net cash provided by financing activities 87,794 87,050 (744 ) 2015 Cash Flow Classification As Reported on Form 10-K Adjusted Balance on Form 10-K Increase (Decrease) from Retrospective Adoption Other changes in noncurrent assets and liabilities $ 10,610 $ 10,948 $ 338 Net cash provided by operating activities 144,631 144,969 338 Repurchase of common stock — (338 ) (338 ) Net cash provided by financing activities 22,877 22,539 (338 )

OTHER INCOME AND EXPENSES (Tabl

OTHER INCOME AND EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2017
Other Income and Expenses [Abstract]
Schedule of various non-regulated activities	The Company conducts various non-regulated activities as reflected in the table below: 2017 2016 2015 Revenue Expense Revenue Expense Revenue Expense Operating and maintenance $ 8,621 $ 8,847 $ 8,430 $ 9,061 $ 9,385 $ 10,438 Leases 2,015 182 1,923 204 1,929 208 Design and construction 1,918 1,635 1,792 1,473 1,399 1,292 Meter reading and billing 256 (6 ) 242 62 597 434 Interest income 68 — 18 — 39 — Change in value of life insurance contracts (gain) loss — (3,057 ) — (1,026 ) — 218 Other non-regulated income and expenses 3,020 1,789 4,180 1,671 2,275 1,454 Total $ 15,898 $ 9,390 $ 16,585 $ 11,445 $ 15,624 $ 14,044

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets that will continue to be amortized and those not amortized	As of December 31, 2017 and 2016, intangible assets that will continue to be amortized and those not amortized were: Weighted Average Amortization Period (years) 2017 2016 Gross Accumulated Net Gross Accumulated Net Amortized intangible assets: Water pumping rights usage $ 1,084 $ 108 $ 976 $ 1,084 $ 105 $ 979 Water planning studies 11 15,922 10,306 5,616 15,734 9,307 6,427 Leasehold improvements and other 19 1,426 804 622 1,331 696 635 Total $ 18,432 $ 11,218 $ 7,214 $ 18,149 $ 10,108 $ 8,041 Unamortized intangible assets: Perpetual water rights and other $ 3,780 $ — $ 3,780 $ 3,776 $ — $ 3,776

SHORT-TERM BORROWINGS (Tables)

SHORT-TERM BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2017
Short-term Debt [Abstract]
Schedule of borrowings under the bank lines of credit	The following table represents borrowings under the bank lines of credit: 2017 2016 Maximum short-term borrowings $ 275,100 $ 97,100 Average amount outstanding $ 179,739 $ 65,804 Weighted average interest rate 2.05 % 1.33 %

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2017
Long-term Debt, Unclassified [Abstract]
Schedule of long-term debt outstanding	As of December 31, 2017 and 2016, long-term debt outstanding was: Series Interest Rate Maturity Date 2017 2016 First Mortgage Bonds TTT 4.610 % 2056 $ 10,000 $ 10,000 SSS 4.410 % 2046 40,000 40,000 QQQ 3.330 % 2025 50,000 50,000 RRR 4.310 % 2045 50,000 50,000 PPP 5.500 % 2040 100,000 100,000 LL 5.875 % 2019 100,000 100,000 AAA 7.280 % 2025 20,000 20,000 BBB 6.770 % 2028 20,000 20,000 CCC 8.150 % 2030 20,000 20,000 DDD 7.130 % 2031 20,000 20,000 EEE 7.110 % 2032 20,000 20,000 FFF 5.900 % 2017 — 20,000 GGG 5.290 % 2022 9,091 10,909 HHH 5.290 % 2022 9,091 10,909 III 5.540 % 2023 5,454 6,364 JJJ 5.440 % 2018 909 1,818 LLL 5.480 % 2018 10,000 10,000 OOO 6.020 % 2031 20,000 20,000 CC 9.860 % 2020 16,900 17,000 Total First Mortgage Bonds 521,445 547,000 California Department of Water Resources Loans 2.6% to 8.0% 2018 - 32 6,201 6,519 Other Long-term debt 7,956 8,909 Unamortized debt issuance costs (3,889 ) (4,475 ) Total long-term debt 531,713 557,953 Less current maturities 15,920 26,208 Long-term debt excluding current maturities $ 515,793 $ 531,745

OTHER ACCRUED LIABILITIES (Tabl

OTHER ACCRUED LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Schedule of other accrued liabilities	As of December 31, 2017 and 2016, other accrued liabilities were: 2017 2016 Accrued and deferred compensation $ 23,916 $ 22,572 Accrued benefits and workers' compensation claims 6,640 6,460 Other 6,115 6,028 TOTAL OTHER ACCRUED LIABILITIES $ 36,671 $ 35,060

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of income tax expense (benefit)	Income tax expense (benefit) consisted of the following: Federal State Total 2017 Current $ — $ 3 $ 3 Deferred 32,652 707 33,359 Total $ 32,652 $ 710 $ 33,362 2016 Current $ 130 $ 2 $ 132 Deferred 26,603 81 26,684 Total $ 26,733 $ 83 $ 26,816 2015 Current $ 9,591 $ 1,706 $ 11,297 Deferred 15,374 (1,382 ) 13,992 Total income tax $ 24,965 $ 324 $ 25,289
Schedule of difference between the total income tax expense and computed tax expense	The difference between the recorded and the statutory income tax expense was reconciled in the table below: 2017 2016 2015 Statutory income tax $ 35,190 $ 26,422 $ 24,607 Increase (reduction) in taxes due to: State income taxes net of federal tax benefit 5,781 4,341 4,043 Effect of regulatory treatment of fixed asset differences (4,584 ) (4,298 ) (3,450 ) Investment tax credits (74 ) (74 ) (74 ) AFUDC equity (1,528 ) — — Share base stock compensation (581 ) — — Other (842 ) 425 163 Total income tax $ 33,362 $ 26,816 $ 25,289
Schedule of tax effects of differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities	The deferred tax assets and deferred tax liabilities as of December 31, 2017 and 2016, were presented in the following table: 2017 2016 Deferred tax assets: Developer deposits for extension agreements and contributions in aid of construction $ 33,552 $ 46,318 Net operating loss carryforward and tax credits 13,329 12,348 Pension 7,906 9,865 Income tax regulatory liability 41,712 — Other 280 5,651 Total deferred tax assets 96,779 74,182 Deferred tax liabilities: Property related basis and depreciation differences 262,442 347,071 WRAM/MCBA and interim rates balancing accounts 24,733 20,714 Other 2,550 5,321 Total deferred tax liabilities 289,725 373,106 Net deferred tax liabilities $ 192,946 $ 298,924
Schedule of reconciliation of changes in unrecognized tax benefits	The following table reconciles the changes in unrecognized tax benefits: December 31, 2017 December 31, 2016 December 31, 2015 Balance at beginning of year $ 10,499 $ 10,298 $ 7,916 Additions for tax positions taken during prior year — — — Additions for tax positions taken during current year 559 201 2,382 Reductions for tax positions taken during a prior year — — — Lapse of statute of limitations — — — Balance at end of year $ 11,058 $ 10,499 $ 10,298

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
Summary of target asset allocation percentages for major categories of the pension plan	The Company's target asset allocation percentages for major categories of the pension plan are reflected in the table below: Minimum Exposure Target Maximum Exposure Fixed Income 35 % 40 % 45 % Total Domestic Equity: 40 % 50 % 60 % Small Cap Stocks 10 % 15 % 20 % Large Cap Stocks 30 % 35 % 45 % Non-U.S. Equities 5 % 10 % 15 %
Schedule of fair value plan assets	All Plan investments are level one investments in mutual funds and are valued at the net asset value (NAV) of the shares held at December 31, 2017 and 2016: Pension Benefits Other Benefits 2017 % 2016 % 2017 % 2016 % Fixed Income $ 171,403 37 % $ 141,576 38 % $ 60,438 60 % $ 54,166 63 % Domestic Equity: Small Cap Stocks 73,682 16 % 61,036 16 % — — — — Domestic Equity: Large Cap Stocks 169,661 37 % 136,405 36 % 40,125 40 % 32,412 37 % Non U.S. Equities 46,132 10 % 37,532 10 % — — — — Total Plan Assets $ 460,878 100 % $ 376,549 100 % $ 100,563 100 % $ 86,578 100 %
Schedule of reconciliation of the funded status of the plans with the accrued pension liability and the net postretirement benefit liability	The following table reconciles the funded status of the plans with the accrued pension liability and the net postretirement benefit liability as of December 31, 2017 and 2016: Pension Benefits Other Benefits 2017 2016 2017 2016 Change in projected benefit obligation: Beginning of year $ 564,755 $ 501,879 $ 122,108 $ 136,736 Service cost 23,801 20,971 7,152 6,513 Interest cost 23,256 22,226 4,988 4,863 Assumption change 60,526 15,599 15,298 (8,748 ) Experience loss 10,836 14,075 (4,546 ) (16,041 ) Benefits paid, net of retiree premiums (11,840 ) (9,995 ) (1,632 ) (1,215 ) End of year $ 671,334 $ 564,755 $ 143,368 $ 122,108 Change in plan assets: Fair value of plan assets at beginning of year $ 376,549 $ 328,634 $ 86,578 $ 72,886 Actual return on plan assets 64,365 27,916 6,508 5,342 Employer contributions 31,804 29,994 9,109 9,565 Retiree contributions and Medicare part D subsidies — — 1,884 1,611 Benefits paid (11,840 ) (9,995 ) (3,516 ) (2,826 ) Fair value of plan assets at end of year $ 460,878 $ 376,549 $ 100,563 $ 86,578 Funded status(1) $ (210,456 ) $ (188,206 ) $ (42,805 ) $ (35,530 ) Unrecognized actuarial loss 150,545 126,610 39,796 31,821 Unrecognized prior service cost 20,342 26,123 165 207 Net amount recognized $ (39,569 ) $ (35,473 ) $ (2,844 ) $ (3,502 ) _______________________________________________________________________________ (1) The short-term portion of the pension benefits was $2.0 million as of December 31, 2017 and 2016.
Schedule of amounts recognized in consolidated balance sheets	Amounts recognized on the balance sheet consist of: Pension Benefits Other Benefits 2017 2016 2017 2016 (Accrued) benefit costs $ 60 $ — $ (3,461 ) $ (4,119 ) Accrued benefit liability (210,456 ) (188,206 ) (42,805 ) (35,530 ) Regulatory asset 170,827 152,733 43,422 36,147 Net amount recognized $ (39,569 ) $ (35,473 ) $ (2,844 ) $ (3,502 )
Schedule of actuarial assumptions used in determining the benefit obligation	Below are the actuarial assumptions used in determining the benefit obligation for the benefit plans: Pension Benefits Other Benefits 2017 2016 2017 2016 Weighted average assumptions as of December 31: Discount rate 3.60 % 4.15 % 3.65 % 4.25 % Long-term rate of return on plan assets 6.50 % 6.50 % 5.50 % 5.50 % Rate of compensation increases 3.25 % 3.25 % — — Cost of living adjustment 2.50 % 2.50 % — —
Schedule of components of net periodic benefit costs for the pension plans and other postretirement benefits	Net periodic benefit costs for the pension and other postretirement plans for the years ended December 31, 2017, 2016, and 2015 included the following components: Pension Plan Other Benefits 2017 2016 2015 2017 2016 2015 Service cost $ 23,801 $ 20,971 $ 21,306 $ 7,152 $ 6,513 $ 8,476 Interest cost 23,256 22,226 20,104 4,988 4,863 5,654 Expected return on plan assets (24,119 ) (21,826 ) (19,138 ) (4,875 ) (4,129 ) (3,519 ) Net amortization and deferral 12,962 11,990 15,485 1,186 1,660 4,536 Net periodic benefit cost $ 35,900 $ 33,361 $ 37,757 $ 8,451 $ 8,907 $ 15,147
Schedule of actuarial assumptions used in determining the net periodic benefit costs	Below are the actuarial assumptions used in determining the net periodic benefit costs for the benefit plans, which uses the end of the prior year as the measurement date: Pension Benefits Other Benefits 2017 2016 2017 2016 Weighted average assumptions as of December 31: Discount rate 4.15 % 4.40 % 4.25 % 4.40 % Long-term rate of return on plan assets 6.50 % 6.50 % 5.50 % 5.50 % Rate of compensation increases 3.25 % 3.25 % — —
Schedule of the effect of a one-percentage point change in assumed health care cost trends	A 1-percentage point change in assumed health care cost trends is estimated to have the following effect: 1-Percentage Point Increase 1-Percentage Point (Decrease) Effect on total service and interest costs $ 3,919 $ (2,795 ) Effect on accumulated postretirement benefit obligation $ 39,117 $ (28,762 )

FAIR VALUE OF FINANCIAL INSTR35

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 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. December 31, 2017 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 531,713 $ — $ 607,492 $ — $ 607,492 Advances for construction 182,502 — 75,083 — 75,083 Total $ 714,215 $ — $ 682,575 $ — $ 682,575 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

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of commitments	The commitments are noted in the table below. Facility Leases System Lease Water Supply Contracts* Capital Lease Obligations 2018 $ 950 $ 422 $ 30,708 $ 1,053 2019 620 — 30,708 1,284 2020 549 — 30,709 977 2021 341 — 30,709 977 2022 302 — 30,710 977 Thereafter 3,078 — 536,826 3,581

QUARTERLY FINANCIAL DATA (UNA37

QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Data [Abstract]
Schedule of Quarterly Financial Data (Unaudited)	The Company's common stock is traded on the New York Stock Exchange under the symbol "CWT." 2017 First Second Third Fourth Operating revenue $ 122,036 $ 171,132 $ 211,731 $ 161,991 Net operating income 8,050 25,259 41,196 20,118 Net income 1,132 18,531 33,849 13,669 Diluted earnings per share 0.02 0.39 0.70 0.29 Common stock market price range: High 37.60 39.40 39.65 46.15 Low 32.45 32.75 36.30 38.15 Dividends paid per common share 0.1800 0.1800 0.1800 0.1800 2016 First Second Third Fourth Operating revenue $ 121,727 $ 152,445 $ 184,268 $ 150,930 Net operating income 6,270 18,534 30,055 21,335 Net income (798 ) 11,508 22,875 15,090 Diluted earnings (loss) per share (0.02 ) 0.24 0.48 0.31 Common stock market price range: High 27.33 34.95 35.62 36.85 Low 22.48 26.22 29.93 29.25 Dividends paid per common share 0.1725 0.1725 0.1725 0.1725

CONDENSED CONSOLIDATING FINAN38

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 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 December 31, 2017 Parent Cal Water All Other Consolidating Consolidated (In thousands) ASSETS Utility plant: Utility plant $ 1,321 $ 2,771,259 $ 204,795 $ (7,196 ) $ 2,970,179 Less accumulated depreciation and amortization (919 ) (868,762 ) (54,543 ) 2,010 (922,214 ) Net utility plant 402 1,902,497 150,252 (5,186 ) 2,047,965 Current assets: Cash and cash equivalents 4,728 80,940 9,108 — 94,776 Receivables and unbilled revenue — 110,928 4,526 — 115,454 Receivables from affiliates 19,952 4,093 43 (24,088 ) — Other current assets 80 16,569 994 — 17,643 Total current assets 24,760 212,530 14,671 (24,088 ) 227,873 Other assets: Regulatory assets — 397,333 3,814 — 401,147 Investments in affiliates 698,690 — — (698,690 ) — Long-term affiliate notes receivable 26,441 — — (26,441 ) — Other assets 192 59,581 3,822 (205 ) 63,390 Total other assets 725,323 456,914 7,636 (725,336 ) 464,537 TOTAL ASSETS $ 750,485 $ 2,571,941 $ 172,559 $ (754,610 ) $ 2,740,375 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders' equity $ 693,462 $ 626,300 $ 77,647 $ (703,947 ) $ 693,462 Affiliate long-term debt — — 26,441 (26,441 ) — Long-term debt, less current maturities — 514,952 841 — 515,793 Total capitalization 693,462 1,141,252 104,929 (730,388 ) 1,209,255 Current liabilities: Current maturities of long-term debt — 15,598 322 — 15,920 Short-term borrowings 55,100 220,000 — — 275,100 Payables to affiliates — 580 23,508 (24,088 ) — Accounts payable — 90,561 3,394 — 93,955 Accrued expenses and other liabilities 271 104,002 1,711 — 105,984 Total current liabilities 55,371 430,741 28,935 (24,088 ) 490,959 Unamortized investment tax credits — 1,724 — — 1,724 Deferred income taxes 1,652 189,004 2,424 (134 ) 192,946 Pension and postretirement benefits other than pensions — 252,141 — — 252,141 Regulatory and other long-term liabilities — 220,779 3,348 — 224,127 Advances for construction — 181,979 523 — 182,502 Contributions in aid of construction — 154,321 32,400 — 186,721 TOTAL CAPITALIZATION AND LIABILITIES $ 750,485 $ 2,571,941 $ 172,559 $ (754,610 ) $ 2,740,375 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2016 Parent Cal Water All Other Consolidating Consolidated (In thousands) 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 long-term 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 Operations	CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2017 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 626,381 $ 40,509 $ — $ 666,890 Operating expenses: Operations: Purchased water — 198,682 399 — 199,081 Purchased power — 21,021 7,841 — 28,862 Pump taxes — 13,924 — — 13,924 Administrative and general — 92,195 10,719 — 102,914 Other — 67,069 7,903 (524 ) 74,448 Maintenance — 21,595 935 — 22,530 Depreciation and amortization 94 72,327 4,453 (91 ) 76,783 Income tax (benefit) expense (498 ) 27,129 1,238 1,059 28,928 Property and other taxes (4 ) 21,778 3,023 — 24,797 Total operating (income) expenses (408 ) 535,720 36,511 444 572,267 Net operating income 408 90,661 3,998 (444 ) 94,623 Other income and expenses: Non-regulated revenue 1,985 14,608 1,814 (2,509 ) 15,898 Non-regulated expenses — (8,139 ) (1,251 ) — (9,390 ) Allowance for equity funds used during construction — 3,750 — — 3,750 Gain on non-utility properties — 663 — — 663 Income tax expense on other income and expenses (809 ) (4,434 ) (214 ) 1,022 (4,435 ) Net other income 1,176 6,448 349 (1,487 ) 6,486 Interest: Interest expense 1,131 35,116 2,026 (1,985 ) 36,288 Allowance for borrowed funds used during construction — (2,319 ) (41 ) — (2,360 ) Net interest expense 1,131 32,797 1,985 (1,985 ) 33,928 Equity earnings of subsidiaries 66,728 — — (66,728 ) — Net income $ 67,181 $ 64,312 $ 2,362 $ (66,674 ) $ 67,181 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2016 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 570,514 $ 38,856 $ — $ 609,370 Operating expenses: Operations: Purchased water — 181,018 497 — 181,515 Purchased power — 19,791 7,389 — 27,180 Pump taxes — 11,298 — — 11,298 Administrative and general — 88,001 10,473 — 98,474 Other — 73,918 6,669 (505 ) 80,082 Maintenance — 22,053 940 — 22,993 Depreciation and amortization 220 59,138 4,337 (96 ) 63,599 Income tax (benefit) expense (398 ) 22,743 1,449 1,010 24,804 Property and other taxes — 20,331 2,900 — 23,231 Total operating (income) expenses (178 ) 498,291 34,654 409 533,176 Net operating income 178 72,223 4,202 (409 ) 76,194 Other Income and Expenses: Non-regulated revenue 1,850 15,114 2,006 (2,385 ) 16,585 Non-regulated expenses — (10,122 ) (1,323 ) — (11,445 ) Gain on sale of non-utility properties — (146 ) — — (146 ) Income tax expense on other income and expenses (754 ) (1,976 ) (254 ) 972 (2,012 ) Net other income 1,096 2,870 429 (1,413 ) 2,982 Interest: Interest expense 757 32,682 1,906 (1,879 ) 33,466 Allowance for borrowed funds used during construction — (2,905 ) (60 ) — (2,965 ) Net interest expense 757 29,777 1,846 (1,879 ) 30,501 Equity earnings of subsidiaries 48,158 — — (48,158 ) — Net income $ 48,675 $ 45,316 $ 2,785 $ (48,101 ) $ 48,675 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2015 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 552,202 $ 36,166 $ — $ 588,368 Operating expenses: Operations: Purchased water — 168,157 400 — 168,557 Purchased power — 20,282 7,608 — 27,890 Pump taxes — 11,479 — — 11,479 Administrative and general — 101,244 11,866 — 113,110 Other — 61,154 6,599 (505 ) 67,248 Maintenance — 20,659 804 — 21,463 Depreciation and amortization 228 56,911 4,343 (101 ) 61,381 Income tax (benefit) expense (388 ) 23,964 (56 ) 1,008 24,528 Property and other taxes — 18,848 2,711 — 21,559 Total operating expenses (160 ) 482,698 34,275 402 517,215 Net operating income 160 69,504 1,891 (402 ) 71,153 Other Income and Expenses: Non-regulated revenue 1,787 14,460 1,699 (2,322 ) 15,624 Non-regulated expenses — (12,870 ) (1,174 ) — (14,044 ) Gain on sale of non-utility properties — 315 — — 315 Income tax expense on other income and expenses (728 ) (776 ) (224 ) 967 (761 ) Net other income 1,059 1,129 301 (1,355 ) 1,134 Interest: Interest expense 718 28,450 1,834 (1,817 ) 29,185 Allowance for borrowed funds used during construction — (1,873 ) (42 ) — (1,915 ) Net interest expense 718 26,577 1,792 (1,817 ) 27,270 Equity earnings of subsidiaries 44,516 — — (44,516 ) — Net income (loss) $ 45,017 $ 44,056 $ 400 $ (44,456 ) $ 45,017
Schedule of Condensed Consolidating Statement of Cash Flows	CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2017 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 67,181 $ 64,312 $ 2,362 $ (66,674 ) $ 67,181 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (66,728 ) — — 66,728 — Dividends received from Affiliates 34,563 — — (34,563 ) — Depreciation and amortization 94 74,041 4,548 (91 ) 78,592 Change in value of life insurance contract — (3,058 ) — — (3,058 ) Stock-based compensation 3,118 — — — 3,118 Gain on sale of non-utility properties — (663 ) — — (663 ) Changes in normalized deferred income taxes — 21,087 — — 21,087 Allowance for equity funds used during construction — (3,750 ) — — (3,750 ) Changes in operating assets and liabilities 184 (36,611 ) 38 — (36,389 ) Other changes in noncurrent assets and liabilities 254 18,860 2,573 37 21,724 Net cash provided by operating activities 38,666 134,218 9,521 (34,563 ) 147,842 Investing activities: Utility plant expenditures (4 ) (252,055 ) (7,135 ) — (259,194 ) TCP settlement proceeds — 56,004 — — 56,004 Proceeds from sale of non-utility assets — 666 — — 666 Change in affiliate advances 172 (485 ) (50 ) 363 — Issuance of affiliate short-term borrowings (2,610 ) — — 2,610 — Reduction of affiliate long-term debt 1,356 — — (1,356 ) — Life insurance benefits — 1,558 — — 1,558 Purchase of life insurance — (5,605 ) — — (5,605 ) Change in restricted cash — (81 ) — — (81 ) Net cash used in investing activities (1,086 ) (199,998 ) (7,185 ) 1,617 (206,652 ) Financing Activities: Short-term borrowings, net of expenses — 265,000 — — 265,000 Repayment of short-term borrowings (2,000 ) (85,000 ) — — (87,000 ) Change in affiliate advances — 41 322 (363 ) — Proceeds from affiliate short-term borrowings — — 2,610 (2,610 ) — Repayment of affiliates long-term debt — — (1,356 ) 1,356 — Retirement of long-term debt — (26,223 ) (606 ) — (26,829 ) Advances and contribution in aid of construction — 21,075 294 — 21,369 Refunds of advances for construction — (8,373 ) (5 ) — (8,378 ) Repurchase of common stock (1,505 ) — — — (1,505 ) Dividends paid to non-affiliates (34,563 ) — — — (34,563 ) Dividends paid to affiliates — (33,015 ) (1,548 ) 34,563 — Net cash provided by (used in) financing activities (38,068 ) 133,505 (289 ) 32,946 128,094 Change in cash and cash equivalents (488 ) 67,725 2,047 — 69,284 Cash and cash equivalents at beginning of period 5,216 13,215 7,061 — 25,492 Cash and cash equivalents at end of year $ 4,728 $ 80,940 $ 9,108 $ — $ 94,776 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2016 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 48,675 $ 45,316 $ 2,785 $ (48,101 ) $ 48,675 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (48,158 ) — — 48,158 — Dividends received from affiliates 33,081 — — (33,081 ) — Depreciation and amortization 220 60,572 4,507 (96 ) 65,203 Amortization of debt premium — 871 — — 871 Changes in normalized deferred income taxes — 26,818 — — 26,818 Change in value of life insurance contracts — (1,026 ) — — (1,026 ) Stock-based compensation 2,849 — — — 2,849 (Gain) on sale of non-utility properties — 146 — — 146 Write-off of capital costs — 3,221 — — 3,221 Changes in operating assets and liabilities (14 ) 6,534 261 — 6,781 Other changes in noncurrent assets and liabilities 355 4,645 1,867 39 6,906 Net cash provided by operating activities 37,008 147,097 9,420 (33,081 ) 160,444 Investing activities: Utility plant expenditures — (224,378 ) (4,560 ) — (228,938 ) Proceeds from sale of non-utility assets — 395 — — 395 Change in affiliate advances 291 1,111 (67 ) (1,335 ) — Collection of affiliate short-term borrowings 365 42,100 — (42,465 ) — Issuance of affiliate short-term borrowings (2,365 ) (20,600 ) — 22,965 — Collection of affiliate long-term debt 1,175 — — (1,175 ) — Life insurance benefits — 495 — — 495 Purchase of life insurance — (2,857 ) — — (2,857 ) Change in restricted cash — 66 — — 66 Net cash used in investing activities (534 ) (203,668 ) (4,627 ) (22,010 ) (230,839 ) Financing Activities: Short-term borrowings 44,100 101,000 — — 145,100 Repayment of short-term borrowings (20,615 ) (61,000 ) — — (81,615 ) Change in affiliate advances — (128 ) (1,207 ) 1,335 — Proceeds from affiliate short-term borrowings 20,600 — 2,365 (22,965 ) — Repayment of affiliate short-term borrowings (42,100 ) — (365 ) 42,465 — Repayment of affiliates long-term debt — — (1,175 ) 1,175 — Issuance of long term debt, net of expenses — 49,823 — — 49,823 Advances and contribution in aid of construction — 21,329 119 — 21,448 Refunds of advances for construction — (6,855 ) (30 ) — (6,885 ) Retirement of long-term debt — (6,548 ) (448 ) — (6,996 ) Repurchase of common stock (744 ) — — — (744 ) Dividends paid to non-affiliates (33,081 ) — — — (33,081 ) Dividends paid to affiliates — (32,105 ) (976 ) 33,081 — Net cash provided by (used in) financing activities (31,840 ) 65,516 (1,717 ) 55,091 87,050 Change in cash and cash equivalents 4,634 8,945 3,076 — 16,655 Cash and cash equivalents at beginning of period 582 4,270 3,985 — 8,837 Cash and cash equivalents at end of year $ 5,216 $ 13,215 $ 7,061 $ — $ 25,492 California Water Service Group CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2015 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 45,017 $ 44,056 $ 400 $ (44,456 ) $ 45,017 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (44,516 ) — — 44,516 — Dividends received from affiliates 32,066 — — (32,066 ) — Depreciation and amortization 228 58,385 4,670 (101 ) 63,182 Change in value of life insurance contracts — 218 — — 218 Stock-based compensation 2,578 — — — 2,578 (Gain) on sale of non-utility properties — (315 ) — — (315 ) Changes in normalized deferred income taxes — 24,393 — — 24,393 Changes in operating assets and liabilities (758 ) (6,417 ) 5,392 (94 ) (1,877 ) Other changes in noncurrent assets and liabilities 1,774 14,807 (4,943 ) 135 11,773 Net cash provided by operating activities 36,389 135,127 5,519 (32,066 ) 144,969 Investing activities: Utility plant expenditures — (171,645 ) (5,188 ) — (176,833 ) Proceeds from sale of non-utility assets — 319 — — 319 Investment in affiliates (1,000 ) — — 1,000 — Issuance of affiliate short-term borrowings (3,280 ) (21,500 ) — 24,780 — Collection of affiliate short-term borrowings 3,000 — — (3,000 ) — Change in affiliate advances (239 ) (1,111 ) 115 1,235 — Collection of affiliate long-term debt 1,007 — — (1,007 ) — Purchase of life insurance — (2,032 ) — — (2,032 ) Change in restricted cash — 288 — — 288 Net cash used in investing activities (512 ) (195,681 ) (5,073 ) 23,008 (178,258 ) Financing Activities: Short-term borrowings, net of expenses 15,101 79,202 — — 94,303 Repayment of short-term borrowings (43,600 ) (97,400 ) — — (141,000 ) Investment from affiliates — — 1,000 (1,000 ) — Change in affiliate advances — 397 838 (1,235 ) — Proceeds from affiliate short-term borrowings 21,500 — 3,280 (24,780 ) — Repayment of affiliate short-term borrowings — — (3,000 ) 3,000 — Repayment of affiliate long-term debt — — (1,007 ) 1,007 — Proceeds from long-term debt — 99,293 50 — 99,343 Retirement of long-term debt — (6,528 ) (475 ) — (7,003 ) Advances and contributions in aid of construction — 14,195 1,831 — 16,026 Refunds of advances for construction — (6,681 ) (45 ) — (6,726 ) Repurchase of common stock (338 ) — — — (338 ) Dividends paid to non-affiliates (32,066 ) — — — (32,066 ) Dividends paid to affiliates — (31,583 ) (483 ) 32,066 — Net cash provided by (used in) financing activities (39,403 ) 50,895 1,989 9,058 22,539 Change in cash and cash equivalents (3,526 ) (9,659 ) 2,435 — (10,750 ) Cash and cash equivalents at beginning of period 4,108 13,929 1,550 — 19,587 Cash and cash equivalents at end of year $ 582 $ 4,270 $ 3,985 $ — $ 8,837

ORGANIZATION AND OPERATIONS (De

ORGANIZATION AND OPERATIONS (Details)	12 Months Ended
	Dec. 31, 2017segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments (in segments)	1

SUMMARY OF SIGNIFICANT ACCOUN40

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Revenue
Markup for return or profit for cost-recovery expenses	$ 0
Maturity period of commercial paper	90 days
Minimum collection period after net receivable balances were recognized in which the Company defers net WRAM and MCBA operating revenues and associated costs	12 months
Maximum collection period in which deferred net WRAM and MCBA revenues and associated costs will be recognized	24 months
Unearned revenue liability	$ 700,000	$ 800,000
Asset retirement obligation	$ 21,200,000	$ 20,300,000
Regulatory Assets and Liabilities
Expected collection period for undercollected net WRAM and MCBA receivables	18 months
Minimum
Regulatory Assets and Liabilities
Expected collection period for undercollected net WRAM and MCBA receivables	12 months

SUMMARY OF SIGNIFICANT ACCOUN41

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Non-Regulated Revenue
Maximum project completion period	3 months
Allowance for Doubtful Accounts
Activities in the allowance for doubtful accounts
Beginning Balance	$ 830	$ 730	$ 697
Provision for uncollectible accounts	1,570	2,111	1,674
Net write off of uncollectible accounts	(1,627)	(2,011)	(1,641)
Ending Balance	$ 773	$ 830	$ 730

SUMMARY OF SIGNIFICANT ACCOUN42

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Depreciable plant and equipment
Equipment	$ 2,729,757	$ 2,522,174
Transmission and distribution plant	$ 22,212	$ 21,925
Office Buildings and other structures, Useful Lives	50 years
Provision for depreciation expressed as a percentage of the aggregate depreciable asset balances	3.00%	2.70%	2.80%
Minimum
Depreciable plant and equipment
Equipment, Useful Lives	5 years
Transmission and distribution plant, Useful Lives	40 years
Maximum
Depreciable plant and equipment
Equipment, Useful Lives	50 years
Transmission and distribution plant, Useful Lives	65 years
Utility Plant
Depreciable plant and equipment
Equipment	$ 592,612	$ 561,909
Office buildings and other structures	245,877	218,711
Transmission and distribution plant	1,891,268	1,741,554
Total	$ 2,729,757	$ 2,522,174

SUMMARY OF SIGNIFICANT ACCOUN43

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Allowance for equity funds used during construction	$ 3,750	$ 0	$ 0
Allowance for borrowed funds used during construction	2,360	2,965	1,915
Total	$ 6,110	$ 2,965	$ 1,915

SUMMARY OF SIGNIFICANT ACCOUN44

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash and Cash Equivalents
Carrying value of cash and cash equivalents	$ 94,776	$ 25,492	$ 8,837	$ 19,587
Proceeds collected through a surcharge on certain customers' bills	500
Restricted Cash
Carrying value of restricted cash	$ 600	$ 400

SUMMARY OF SIGNIFICANT ACCOUN45

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Regulatory Assets and Liabilities
Regulatory Assets	$ 401,147	$ 355,930
Regulatory Liabilities	179,706	38,735
Short-term portion of the regulatory assets	36,783	30,332
Short-term portion of the regulatory liabilities	59,303	4,759
Long-Term Debt Premium, Discount and Expense
Amortization of debt premium and expenses	920	871	$ 825
Advances for Construction
Advances for construction	$ 182,502	182,448
Refund period	40 years
Estimated refunds of advances
2,018	$ 7,900
2,019	7,700
2,020	7,700
2,021	7,600
2,022	7,600
Future tax benefits due ratepayers
Regulatory Assets and Liabilities
Regulatory Liabilities	168,343	33,231
Health care balancing account
Regulatory Assets and Liabilities
Regulatory Liabilities	7,749	0
Conservation program
Regulatory Assets and Liabilities
Regulatory Liabilities	2,273	584
Pension balancing account
Regulatory Assets and Liabilities
Regulatory Liabilities	364	695
Net WRAM and MCBA long-term payable
Regulatory Assets and Liabilities
Regulatory Liabilities	513	611
Other Liabilities
Regulatory Assets and Liabilities
Regulatory Liabilities	464	3,614
Pension and retiree group health
Regulatory Assets and Liabilities
Regulatory Assets	214,249	188,880
Future tax benefits due ratepayers
Regulatory Assets and Liabilities
Regulatory Assets	87,323	92,099
Other accrued benefits
Regulatory Assets and Liabilities
Regulatory Assets	28,251	27,503
Net WRAM and MCBA long-term accounts receivable
Regulatory Assets and Liabilities
Regulatory Assets	34,879	16,148
Asset retirement obligations, net
Regulatory Assets and Liabilities
Regulatory Assets	17,126	15,812
Interim rates long-term accounts receivable
Regulatory Assets and Liabilities
Regulatory Assets	4,568	4,605
Tank Coating
Regulatory Assets and Liabilities
Regulatory Assets	10,998	8,452
Health care balancing account
Regulatory Assets and Liabilities
Regulatory Assets	496	1,000
Pension balancing account
Regulatory Assets and Liabilities
Regulatory Assets	2,322	0
Other regulatory assets
Regulatory Assets and Liabilities
Regulatory Assets	$ 935	$ 1,431

SUMMARY OF SIGNIFICANT ACCOUN46

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 7) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings per share:
Net income (loss)									$ 67,181	$ 48,675	$ 45,017
Weighted average common shares, basic (in shares)									48,009,000	47,953,000	47,865,000
Dilutive SARs (treasury method) (in shares)									0	3,000	15,000
Weighted average common shares, dilutive (in shares)									48,009,000	47,956,000	47,880,000
Earnings per share—basic (in dollars per share)									$ 1.40	$ 1.02	$ 0.94
Earnings per share—diluted (in dollars per share)	$ 0.29	$ 0.70	$ 0.39	$ 0.02	$ 0.31	$ 0.48	$ 0.24	$ (0.02)	$ 1.40	$ 1.01	$ 0.94
Stock Appreciation Rights (SARs)
Stock-based awards included in earnings per share
Stock Appreciation Rights (SAR) outstanding (in shares)	0				0				0	0	64,500

SUMMARY OF SIGNIFICANT ACCOUN47

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 8) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax benefits in excess of compensation costs	$ 600
Other changes in noncurrent assets and liabilities	19,511	$ 6,906	$ 10,948
Net cash provided by operating activities	147,842	160,444	144,969
Repurchase of common stock	(1,505)	(744)	(338)
Net cash provided by financing activities	$ 128,094	87,050	22,539
As Reported on Form 10-K
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other changes in noncurrent assets and liabilities		6,162	10,610
Net cash provided by operating activities		159,700	144,631
Repurchase of common stock		0	0
Net cash provided by financing activities		87,794	22,877
Accounting Standards Update 2016-09 [Member] | Increase (Decrease) from Retrospective Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other changes in noncurrent assets and liabilities		744	338
Net cash provided by operating activities		744	338
Repurchase of common stock		(744)	(338)
Net cash provided by financing activities		$ (744)	$ (338)

OTHER INCOME AND EXPENSES (Deta

OTHER INCOME AND EXPENSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other income and expenses
Revenue	$ 15,898	$ 16,585	$ 15,624
Expense	9,390	11,445	14,044
Litigation gain		1,500
Operating and Maintenance
Other income and expenses
Revenue	8,621	8,430	9,385
Expense	8,847	9,061	10,438
Leases
Other income and expenses
Revenue	2,015	1,923	1,929
Expense	182	204	208
Design and Construction
Other income and expenses
Revenue	1,918	1,792	1,399
Expense	1,635	1,473	1,292
Meter Reading and Billing
Other income and expenses
Revenue	256	242	597
Expense	(6)	62	434
Interest Income
Other income and expenses
Revenue	68	18	39
Expense	0	0	0
Change in value of life insurance contracts (gain) loss
Other income and expenses
Revenue	0	0	0
Expense	(3,057)	(1,026)	218
Other non-regulated income and expenses
Other income and expenses
Revenue	3,020	4,180	2,275
Expense	$ 1,789	$ 1,671	$ 1,454

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Amortized intangible assets:
Gross Carrying Value	$ 18,432	$ 18,149
Accumulated Amortization	11,218	10,108
Net Carrying Value	7,214	8,041
Unamortized intangible assets:
Perpetual water rights and other	3,780	3,776
Amortization of intangible assets	1,600	1,600	$ 1,400
Estimated future amortization expense related to intangible assets for the succeeding five years
2,018	1,400
2,019	1,200
2,020	700
2,021	600
2,022	500
Thereafter	2,700
Water pumping rights
Amortized intangible assets:
Gross Carrying Value	1,084	1,084
Accumulated Amortization	108	105
Net Carrying Value	$ 976	979
Water planning studies
Amortized intangible assets:
Weighted Average Amortization Period	11 years
Gross Carrying Value	$ 15,922	15,734
Accumulated Amortization	10,306	9,307
Net Carrying Value	$ 5,616	6,427
Leasehold improvements and other
Amortized intangible assets:
Weighted Average Amortization Period	19 years
Gross Carrying Value	$ 1,426	1,331
Accumulated Amortization	804	696
Net Carrying Value	$ 622	$ 635

PREFERRED STOCK (Details)

PREFERRED STOCK (Details) - shares	Dec. 31, 2017	Dec. 31, 2016
Equity [Abstract]
Preferred stock, shares authorized (in shares)	241,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

COMMON STOCKHOLDERS' EQUITY (De

COMMON STOCKHOLDERS' EQUITY (Details) - shares	Dec. 31, 2017	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Common stock, shares issued (in shares)	48,012,432	47,964,915
Common stock, shares outstanding (in shares)	48,012,432	47,964,915

SHORT-TERM BORROWINGS (Details)

SHORT-TERM BORROWINGS (Details) - USD ($)	Mar. 10, 2015	Oct. 04, 2011	Dec. 31, 2017	Dec. 31, 2016
Borrowings under the bank lines of credit
Maximum short-term borrowings			$ 275,100,000	$ 97,100,000
Average amount outstanding			$ 179,739,000	$ 65,804,000
Weighted average interest rate			2.05%	1.33%
Revolving Credit Facility [Member]
Short-term borrowings
Maximum borrowing capacity	$ 450,000,000
Debt maturity period	5 years
Revolving Credit Facility [Member] | Minimum
Short-term borrowings
Commitment fee (as a percent)	8.00%
Revolving Credit Facility [Member] | Maximum
Short-term borrowings
Commitment fee (as a percent)	12.50%
Revolving Credit Facility [Member] | LIBOR | Minimum
Short-term borrowings
Interest rate margin (as a percent)	72.50%
Revolving Credit Facility [Member] | LIBOR | Maximum
Short-term borrowings
Interest rate margin (as a percent)	95.00%
Parent Company
Short-term borrowings
Amount outstanding under line of credit			$ 55,100,000	$ 57,100,000
Parent Company | Revolving Credit Facility [Member]
Short-term borrowings
Maximum borrowing capacity	$ 150,000,000
Cal Water
Short-term borrowings
Debt maturity period		15 years
Amount outstanding under line of credit			$ 220,000,000	$ 40,000,000
Cal Water | Revolving Credit Facility [Member]
Short-term borrowings
Maximum borrowing capacity	$ 300,000,000
Period within which borrowings are to be repaid	24 months
Additional capacity available	$ 50,000,000

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Oct. 04, 2011	Dec. 31, 2017	Dec. 31, 2016	Nov. 17, 2010	Apr. 17, 2009
Long-term debt
Unamortized debt issuance costs		$ (3,889)	$ (4,475)
Total long-term debt		531,713	557,953
Current maturities of long-term debt		15,920	26,208
Long-term debt, less current maturities		515,793	531,745
Cal Water
Long-term debt
Current maturities of long-term debt		15,598	25,657
Long-term debt, less current maturities		514,952	530,850
Debt maturity period	15 years
Capital lease liability		6,400	7,000
First Mortgage
Long-term debt
Long-term debt		$ 521,445	547,000
First Mortgage Bonds TTT Series Due 2056 [Member]
Long-term debt
Interest rate		4.61%
Long-term debt		$ 10,000	10,000
First Mortgage Bonds SSS Series Due 2046 [Member]
Long-term debt
Interest rate		4.41%
Long-term debt		$ 40,000	40,000
First Mortgage Bonds QQQ Series Due 2025
Long-term debt
Interest rate		3.33%
Long-term debt		$ 50,000	50,000
First Mortgage Bonds RRR Series Due 2045
Long-term debt
Interest rate		4.31%
Long-term debt		$ 50,000	50,000
First Mortgage Bonds PPP Series, due 2040
Long-term debt
Interest rate		5.50%
Long-term debt		$ 100,000	100,000
First Mortgage Bonds PPP Series, due 2040 | Cal Water
Long-term debt
Interest rate				5.50%
First Mortgage Bonds LL Series, due 2019
Long-term debt
Interest rate		5.875%
Long-term debt		$ 100,000	100,000
First Mortgage Bonds LL Series, due 2019 | Cal Water
Long-term debt
Interest rate					5.875%
First Mortgage Bonds AAA Series, due in 2025
Long-term debt
Interest rate		7.28%
Long-term debt		$ 20,000	20,000
First Mortgage Bonds BBB Series, due in 2028
Long-term debt
Interest rate		6.77%
Long-term debt		$ 20,000	20,000
First Mortgage Bonds CCC Series, Due 2030
Long-term debt
Interest rate		8.15%
Long-term debt		$ 20,000	20,000
First Mortgage Bonds DDD Series, Due 2031
Long-term debt
Interest rate		7.13%
Long-term debt		$ 20,000	20,000
First Mortgage Bonds EEE Series, Due 2032
Long-term debt
Interest rate		7.11%
Long-term debt		$ 20,000	20,000
First Mortgage Bonds FFF Series, Due 2017
Long-term debt
Interest rate		5.90%
Long-term debt		$ 0	20,000
First Mortgage Bonds FFF Series, Due 2017 | Cal Water
Long-term debt
Repayment of debt		$ 20,000
First Mortgage Bonds GGG Series, Due 2022
Long-term debt
Interest rate		5.29%
Long-term debt		$ 9,091	10,909
First Mortgage Bonds HHH Series, Due 2022
Long-term debt
Interest rate		5.29%
Long-term debt		$ 9,091	10,909
First Mortgage Bonds III Series, Due 2023
Long-term debt
Interest rate		5.54%
Long-term debt		$ 5,454	6,364
First Mortgage Bonds JJJ Series, Due 2018
Long-term debt
Interest rate		5.44%
Long-term debt		$ 909	1,818
First Mortgage Bonds LLL Series, Due 2018
Long-term debt
Interest rate		5.48%
Long-term debt		$ 10,000	10,000
First Mortgage Bonds OOO Series, Due 2031
Long-term debt
Interest rate		6.02%
Long-term debt		$ 20,000	20,000
First Mortgage Bonds CC Series, Due 2020
Long-term debt
Interest rate		9.86%
Long-term debt		$ 16,900	17,000
California Department of Water Resources Loans
Long-term debt
Long-term debt		6,201	6,519
Other Long-term Debt
Long-term debt
Long-term debt		$ 7,956	$ 8,909
Minimum | California Department of Water Resources Loans
Long-term debt
Interest rate		2.60%	2.60%
Maximum | California Department of Water Resources Loans
Long-term debt
Interest rate		8.00%	8.00%

OTHER ACCRUED LIABILITIES (Deta

OTHER ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Accrued and deferred compensation	$ 23,916	$ 22,572
Accrued benefits and workers' compensation claims	6,640	6,460
Other	6,115	6,028
TOTAL OTHER ACCRUED LIABILITIES	$ 36,671	$ 35,060

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Federal
Current	$ 0	$ 130	$ 9,591
Deferred	32,652	26,603	15,374
Total	32,652	26,733	24,965
State
Current	3	2	1,706
Deferred	707	81	(1,382)
Total	710	83	324
Total income tax expense
Current	3	132	11,297
Deferred	33,359	26,684	13,992
Total income tax	$ 33,362	$ 26,816	$ 25,289

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income taxes
Income tax deductions	$ 85,700,000	$ 84,900,000	$ 65,200,000
Valuation allowance	0
Provisional ratepayer net refund	108,000,000
Unrecognized tax benefits that would impact effective tax rate	2,100,000
Reconciliation of the income tax expense computed by applying the current federal tax rate to pretax book income and the amount shown in the Consolidated Statements of Income
Statutory income tax	35,190,000	26,422,000	24,607,000
Increase (reduction) in taxes due to:
State income taxes net of federal tax benefit	5,781,000	4,341,000	4,043,000
Effect of regulatory treatment of fixed asset differences	(4,584,000)	(4,298,000)	(3,450,000)
Investment tax credits	(74,000)	(74,000)	(74,000)
AFUDC equity	(1,528,000)	0	0
Share base stock compensation	(581,000)	0	0
Other	(842,000)	425,000	163,000
Total income tax	33,362,000	$ 26,816,000	$ 25,289,000
State
Income taxes
Net operating loss resulting from repairs and maintenance deductions	55,400,000
Federal
Income taxes
Net operating loss resulting from repairs and maintenance deductions	72,600,000
California | State
Income taxes
State tax credits	4,200,000
Estimated carried-forward portion of tax credits	$ 2,300,000

INCOME TAXES (Details 3)

INCOME TAXES (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Developer deposits for extension agreements and contributions in aid of construction	$ 33,552	$ 46,318
Net operating loss carryforward and tax credits	13,329	12,348
Pension	7,906	9,865
Income tax regulatory liability	41,712	0
Other	280	5,651
Total deferred tax assets	96,779	74,182
Deferred tax liabilities:
Property related basis and depreciation differences	262,442	347,071
WRAM/MCBA and interim rates balancing accounts	24,733	20,714
Other	2,550	5,321
Total deferred tax liabilities	289,725	373,106
Total deferred tax liabilities	192,946	298,924
Reconciliation of the changes in unrecognized tax benefits
Balance at beginning of year	10,499	10,298	$ 7,916
Additions for tax positions taken during prior year	0	0	0
Additions for tax positions taken during current year	559	201	2,382
Reductions for tax positions taken during a prior year	0	0	0
Lapse of statute of limitations	0	0	0
Balance at end of year	$ 11,058	$ 10,499	$ 10,298

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Savings Plan
Maximum participants' contribution as a percentage of pre-tax compensation	20.00%
Employer's matching contribution for each dollar contributed by the employee	$ 0.75
Maximum employer contribution as a percentage of base salary	6.00%
Company contributions	$ 5,600,000	$ 5,400,000	$ 5,000,000
Expected future benefit payments
Net periodic benefit cost	8,500,000	8,900,000	15,100,000
Pension plans
Employee benefit plans
Accumulated benefit obligations	513,600,000	438,000,000
Fair value of pension plan assets	460,878,000	376,549,000	328,634,000
Expected future benefit payments
2,018	13,500,000
2,019	15,000,000
2,020	16,500,000
2,021	18,100,000
2,022	20,000,000
2023-2027	125,800,000
Net periodic benefit cost	35,900,000	33,361,000	37,757,000
Unfunded supplemental executive retirement plan
Employee benefit plans
Accumulated benefit obligations	56,700,000	46,000,000
Other benefits
Employee benefit plans
Fair value of pension plan assets	100,563,000	86,578,000	72,886,000
Expected future benefit payments
2,018	2,300,000
2,019	2,500,000
2,020	2,700,000
2,021	2,900,000
2,022	3,200,000
2023-2027	$ 20,000,000
Threshold retirement age for participation in plan on payment of a premium	58 years
Life insurance benefit	$ 5,000
Net periodic benefit cost	8,451,000	$ 8,907,000	$ 15,147,000
Regulatory asset related to underfunded postretirement benefit expense	3,500,000
Medicare Part D subsidies
2,018	300,000
2,019	300,000
2,020	300,000
2,021	400,000
2,022	$ 300,000

EMPLOYEE BENEFIT PLANS (Detai59

EMPLOYEE BENEFIT PLANS (Details 2)	Dec. 31, 2017
S&P Index
Employee benefit plans
Performance benchmark of special index (as a percent)	35.00%
Russell 2000 Index
Employee benefit plans
Performance benchmark of special index (as a percent)	15.00%
MSCI EAFE Index
Employee benefit plans
Performance benchmark of special index (as a percent)	10.00%
Lehman Aggregate Bond Index
Employee benefit plans
Performance benchmark of special index (as a percent)	40.00%

EMPLOYEE BENEFIT PLANS (Detai60

EMPLOYEE BENEFIT PLANS (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016
Components of the pension plans and other postretirement benefits
Net periodic benefit cost	$ 8,500	$ 8,900	$ 15,100
Assumed health care cost trend rate
Annual rate of increase in the per capita cost (as a percent)				6.80%
Decreased annual rate by 2018 (as a percent)	5.20%
Ultimate health care cost trend rate (as a percent)				4.70%
Period in which ultimate health care cost trend rate is expected to be reached	50 years
Assumed health care cost trend rates affect the amounts reported for the postretirement benefit plans
Effect on total service and interest cost, increase	$ 3,919
Effect on total service and interest cost, decrease	(2,795)
Effect on accumulated postretirement benefit obligations, increase	39,117
Effect on accumulated postretirement benefit obligations, decrease	$ (28,762)
Minimum
Amounts recognized in the consolidated balance sheets:
Percentage of expected results within which long-term rate of return falls	25.00%
Maximum
Amounts recognized in the consolidated balance sheets:
Percentage of expected results within which long-term rate of return falls	75.00%
Fixed Income
Actuarial assumptions used in determining the benefit obligation for the benefit plans
Long-term rate of return on assets (as a percent)				4.80%
Amounts recognized in the consolidated balance sheets:
Assumed percentage of portfolio investment	40.00%
Assumed long-term inflation rate (as a percent)	2.50%
Fixed Income | Minimum
Target asset allocation percentages for major categories of the pension plan
Maturity period	1 year
Fixed Income | Maximum
Target asset allocation percentages for major categories of the pension plan
Maturity period	5 years
Equity Securities
Amounts recognized in the consolidated balance sheets:
Assumed percentage of portfolio investment	60.00%
Assumed long-term inflation rate (as a percent)	2.50%
Total Domestic Equity
Actuarial assumptions used in determining the benefit obligation for the benefit plans
Long-term rate of return on assets (as a percent)				7.23%
Non-U.S. Equities
Actuarial assumptions used in determining the benefit obligation for the benefit plans
Long-term rate of return on assets (as a percent)				8.15%
Short-term cash investments
Actuarial assumptions used in determining the benefit obligation for the benefit plans
Long-term rate of return on assets (as a percent)				2.78%
Pension plans
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	$ 376,549	328,634	328,634	$ 460,878	$ 376,549
Actuarial assumptions used in determining the benefit obligation for the benefit plans
Discount rate (as a percent)				3.60%	4.15%
Long-term rate of return on assets (as a percent)				6.50%	6.50%
Rate of compensation increase (as a percent)				3.25%	3.25%
Cost of living adjustment (as a percent)				2.50%	2.50%
Change in projected benefit obligation:
Balance at the beginning of the period	564,755	501,879
Service cost	23,801	20,971	21,306
Interest cost	23,256	22,226	20,104
Assumption change	60,526	15,599
Experience loss	10,836	14,075
Benefits paid, net of retiree premiums	(11,840)	(9,995)
Balance at the end of the period	671,334	564,755	501,879
Change in plan assets:
Fair value of plan assets at beginning of year	376,549	328,634
Actual return on plan assets	64,365	27,916
Employer contributions	31,804	29,994
Retiree contributions and Medicare part D subsidies	0	0
Benefits paid	(11,840)	(9,995)
Fair value of plan assets at end of year	$ 460,878	376,549	328,634
Reconciliation of funded status
Funded status				$ (210,456)	$ (188,206)
Unrecognized actuarial loss				150,545	126,610
Unrecognized prior service cost				20,342	26,123
Net amount recognized in the balance sheet				(39,569)	(35,473)
Short-term portion of the pension benefits				2,000	2,000
Amounts recognized in the consolidated balance sheets:
(Accrued) benefit costs				60	0
Accrued benefit liability				(210,456)	(188,206)
Regulatory asset				170,827	152,733
Net amount recognized in the balance sheet				(39,569)	(35,473)
Average return for last five years (as a percent)	9.30%
Components of the pension plans and other postretirement benefits
Service cost	$ 23,801	20,971	21,306
Interest cost	23,256	22,226	20,104
Expected return on plan assets	(24,119)	(21,826)	(19,138)
Net amortization and deferral	12,962	11,990	15,485
Net periodic benefit cost	$ 35,900	$ 33,361	37,757
Weighted average assumptions used to determine net periodic benefit costs
Discount rate (as a percent)	4.15%	4.40%
Long-term rate of return on assets (as a percent)	6.50%	6.50%
Rate of compensation increase (as a percent)	3.25%	3.25%
Assumed health care cost trend rates affect the amounts reported for the postretirement benefit plans
Estimated annual contributions in next fiscal year				35,700
Pension plans | Level 1
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	$ 376,549	$ 376,549		$ 460,878	$ 376,549
Total (as a percent)				100.00%	100.00%
Change in plan assets:
Fair value of plan assets at beginning of year	376,549
Fair value of plan assets at end of year	460,878	376,549
Pension plans | Fixed Income
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				40.00%
Pension plans | Fixed Income | Level 1
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	141,576	141,576		$ 171,403	$ 141,576
Total (as a percent)				37.00%	38.00%
Change in plan assets:
Fair value of plan assets at beginning of year	141,576
Fair value of plan assets at end of year	171,403	141,576
Pension plans | Fixed Income | Level 1 | Money Market Fund Investments
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	2,300	2,300		$ 22,500	$ 2,300
Change in plan assets:
Fair value of plan assets at beginning of year	2,300
Fair value of plan assets at end of year	22,500	2,300
Pension plans | Fixed Income | Minimum
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				35.00%
Pension plans | Fixed Income | Maximum
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				45.00%
Pension plans | Total Domestic Equity
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				50.00%
Pension plans | Total Domestic Equity | Minimum
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				40.00%
Pension plans | Total Domestic Equity | Maximum
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				60.00%
Pension plans | Small Cap Stocks
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				15.00%
Pension plans | Small Cap Stocks | Level 1
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	61,036	61,036		$ 73,682	$ 61,036
Total (as a percent)				16.00%	16.00%
Change in plan assets:
Fair value of plan assets at beginning of year	61,036
Fair value of plan assets at end of year	73,682	61,036
Pension plans | Small Cap Stocks | Minimum
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				10.00%
Pension plans | Small Cap Stocks | Maximum
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				20.00%
Pension plans | Large Cap Stocks
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				35.00%
Pension plans | Large Cap Stocks | Level 1
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	136,405	136,405		$ 169,661	$ 136,405
Total (as a percent)				37.00%	36.00%
Change in plan assets:
Fair value of plan assets at beginning of year	136,405
Fair value of plan assets at end of year	169,661	136,405
Pension plans | Large Cap Stocks | Minimum
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				30.00%
Pension plans | Large Cap Stocks | Maximum
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				45.00%
Pension plans | Non-U.S. Equities
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				10.00%
Pension plans | Non-U.S. Equities | Level 1
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	37,532	37,532		$ 46,132	$ 37,532
Total (as a percent)				10.00%	10.00%
Change in plan assets:
Fair value of plan assets at beginning of year	37,532
Fair value of plan assets at end of year	46,132	37,532
Pension plans | Non-U.S. Equities | Minimum
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				5.00%
Pension plans | Non-U.S. Equities | Maximum
Target asset allocation percentages for major categories of the pension plan
Target asset allocation percentages				15.00%
Other benefits
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	86,578	72,886	72,886	$ 100,563	$ 86,578
Actuarial assumptions used in determining the benefit obligation for the benefit plans
Discount rate (as a percent)				3.65%	4.25%
Long-term rate of return on assets (as a percent)				5.50%	5.50%
Rate of compensation increase (as a percent)				0.00%	0.00%
Cost of living adjustment (as a percent)				0.00%	0.00%
Change in projected benefit obligation:
Balance at the beginning of the period	122,108	136,736
Service cost	7,152	6,513	8,476
Interest cost	4,988	4,863	5,654
Assumption change	15,298	(8,748)
Experience loss	(4,546)	(16,041)
Benefits paid, net of retiree premiums	(1,632)	(1,215)
Balance at the end of the period	143,368	122,108	136,736
Change in plan assets:
Fair value of plan assets at beginning of year	86,578	72,886
Actual return on plan assets	6,508	5,342
Employer contributions	9,109	9,565
Retiree contributions and Medicare part D subsidies	1,884	1,611
Benefits paid	(3,516)	(2,826)
Fair value of plan assets at end of year	$ 100,563	86,578	72,886
Reconciliation of funded status
Funded status				$ (42,805)	$ (35,530)
Unrecognized actuarial loss				39,796	31,821
Unrecognized prior service cost				165	207
Net amount recognized in the balance sheet				(2,844)	(3,502)
Amounts recognized in the consolidated balance sheets:
(Accrued) benefit costs				(3,461)	(4,119)
Accrued benefit liability				(42,805)	(35,530)
Regulatory asset				43,422	36,147
Net amount recognized in the balance sheet				(2,844)	(3,502)
Average return for last ten years (as a percent)	6.10%
Components of the pension plans and other postretirement benefits
Service cost	$ 7,152	6,513	8,476
Interest cost	4,988	4,863	5,654
Expected return on plan assets	(4,875)	(4,129)	(3,519)
Net amortization and deferral	1,186	1,660	4,536
Net periodic benefit cost	$ 8,451	$ 8,907	$ 15,147
Weighted average assumptions used to determine net periodic benefit costs
Discount rate (as a percent)	4.25%	4.40%
Long-term rate of return on assets (as a percent)	5.50%	5.50%
Rate of compensation increase (as a percent)	0.00%	0.00%
Assumed health care cost trend rates affect the amounts reported for the postretirement benefit plans
Estimated annual contributions in next fiscal year				10,800
Other benefits | Level 1
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	$ 86,578	$ 86,578		$ 100,563	$ 86,578
Total (as a percent)				100.00%	100.00%
Change in plan assets:
Fair value of plan assets at beginning of year	86,578
Fair value of plan assets at end of year	100,563	86,578
Other benefits | Fixed Income | Level 1
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	54,166	54,166		$ 60,438	$ 54,166
Total (as a percent)				60.00%	63.00%
Change in plan assets:
Fair value of plan assets at beginning of year	54,166
Fair value of plan assets at end of year	60,438	54,166
Other benefits | Fixed Income | Level 1 | Money Market Fund Investments
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	35,500	35,500		$ 39,400	$ 35,500
Change in plan assets:
Fair value of plan assets at beginning of year	35,500
Fair value of plan assets at end of year	39,400	35,500
Other benefits | Small Cap Stocks | Level 1
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	0	0		$ 0	$ 0
Total (as a percent)				0.00%	0.00%
Change in plan assets:
Fair value of plan assets at beginning of year	0
Fair value of plan assets at end of year	0	0
Other benefits | Large Cap Stocks | Level 1
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	32,412	32,412		$ 40,125	$ 32,412
Total (as a percent)				40.00%	37.00%
Change in plan assets:
Fair value of plan assets at beginning of year	32,412
Fair value of plan assets at end of year	40,125	32,412
Other benefits | Non-U.S. Equities | Level 1
Target asset allocation percentages for major categories of the pension plan
Fair value of pension plan assets	0	0		$ 0	$ 0
Total (as a percent)				0.00%	0.00%
Change in plan assets:
Fair value of plan assets at beginning of year	0
Fair value of plan assets at end of year	$ 0	$ 0

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS (Details) - Equity Incentive Plan - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock-based Compensation
Shares authorized to be issued under the plan (in shares)	2,000,000
Compensation expense
Recorded compensation costs for the RSAs and RSUs	$ 3.1	$ 2.8	$ 2.9
Restricted Stock Awards (RSAs)
Stock-based Compensation
Awards granted (in shares)	49,290	72,317
Awards cancelled (in shares)	20,747	16,617
Weighted average grant date fair value (in dollars per share)	$ 36.75	$ 25.17
Restricted Stock Awards (RSAs) | Director
Stock-based Compensation
Vesting period		12 months
Restricted Stock Awards (RSAs) | Employees
Stock-based Compensation
Vesting period		36 months
Performance-Based Restricted Stock Unit Awards (RSUs) [Member]
Stock-based Compensation
Expiration period of award	3 years
Performance-Based Restricted Stock Unit Awards (RSUs) [Member] | Officer
Stock-based Compensation
Awards granted (in shares)	31,389	43,659
Weighted average grant date fair value (in dollars per share)	$ 36.75	$ 25.17
Performance-Based Restricted Stock Unit Awards (RSUs) [Member] | Officer | Minimum
Stock-based Compensation
Options vested on anniversary date (as a percent)	0.00%
Performance-Based Restricted Stock Unit Awards (RSUs) [Member] | Officer | Maximum
Stock-based Compensation
Options vested on anniversary date (as a percent)	200.00%
Restricted Stock Unit Award (RSUs) | Officer
Stock-based Compensation
Awards granted (in shares)	38,709
Awards cancelled (in shares)	19,735	6,602
Shares issued (in shares)		28,424

FAIR VALUE OF FINANCIAL INSTR62

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value of Financial Assets and Liabilities
Risk premium percentage	1.70%
Advances for construction	$ 182,502	$ 182,448
Level 1
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	0	0
Advances for construction	0	0
Total	0	0
Level 2
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	607,492	630,510
Advances for construction	75,083	74,460
Total	682,575	704,970
Level 3
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	0	0
Advances for construction	0	0
Total	0	0
Total
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	607,492	630,510
Advances for construction	75,083	74,460
Total	682,575	704,970
Cost
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	531,713	557,953
Advances for construction	182,502	182,448
Total	$ 714,215	$ 740,401

COMMITMENTS AND CONTINGENCIES63

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)systemlease	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2011USD ($)
Capital Lease Obligations
2,018	$ 1,053
2,019	1,284
2,020	977
2,021	977
2,022	977
Thereafter	3,581
Water Contracts
Water Supply Contracts
2,018	30,708
2,019	30,708
2,020	30,709
2,021	30,709
2,022	30,710
Thereafter	536,826
Facility Leases
Lease Commitments
2,018	950
2,019	620
2,020	549
2,021	341
2,022	302
Thereafter	3,078
Other lease commitment disclosures
Annual lease payments made and charged	$ 1,100	$ 1,000	$ 1,100
System Lease
Lease Commitments
Number of water systems leased | system	2
2,018	$ 422
2,019	0
2,020	0
2,021	0
2,022	0
Thereafter	$ 0
Hawthorne Lease
Lease Commitments
Number of water systems leased | lease	2
Other lease commitment disclosures
Annual lease payments made and charged				$ 1,000
Lease term				15 years
Lease deposit				$ 8,100
Revenue from the water system received in exchange for handling of system and system improvements	$ 10,000	8,500	8,000
Annual payments made under capital improvements	1,000	$ 1,000	$ 900
Capital lease asset	$ 6,800
Hawthorne Lease | Minimum
Other lease commitment disclosures
Annual lease payments made and charged				$ 900
Commerce
Other lease commitment disclosures
Lease term	15 years
Annual lease payment	$ 800

COMMITMENTS AND CONTINGENCIES64

COMMITMENTS AND CONTINGENCIES (Detail 2) $ in Thousands	Dec. 20, 2017USD ($)well	Dec. 31, 2017USD ($)entity$ / acrefootacrefoot	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Long-term purchase commitments - other disclosures
Proceeds from legal settlements		$ 56,004	$ 0	$ 0
Contingency loss recognized liability		6,100
Santa Clara Valley Water District
Long-term purchase commitments - other disclosures
Annual cost		9,100	8,500	6,300
Stockton East Water District (SEWD)
Long-term purchase commitments - other disclosures
Annual cost		$ 14,100	$ 12,200	$ 9,800
Kern County Water Agency (Agency)
Long-term purchase commitments - other disclosures
Minimum acre feet of treated water to be purchased per year over life of contract | acrefoot		20,500
Minimum acre feet of treated water to be purchased under prior agreement | $ / acrefoot		11,500
Number of other parties obligated to purchase treated water | entity		3
Minimum acre feet of treated water to be purchased per year by other parties | acrefoot		32,500
Total obligation of all parties, excluding the Company		$ 82,400
Total capital facilities charge and treated water charge obligation		$ 9,100
Total capital facilities charge and treated water charge obligation per acre foot | $ / acrefoot		441.9
Total treated water charge		$ 3,000
Portion of estimated operating cost per acre foot for treated water delivered | $ / acrefoot		64.2
California Water Service Company and City of Bakersfield v. The Dow Chemical Company, et al., Civil Case No. CIV-470999 (TCP Action) [Member]
Long-term purchase commitments - other disclosures
Amount awarded	$ 85,000
Proceeds from legal settlements	$ 56,000
Claims settled | well	47
Total claims | well	57
Release from future claims | well	36

QUARTERLY FINANCIAL DATA (UNA65

QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Data [Line Items]
Operating revenue	$ 161,991	$ 211,731	$ 171,132	$ 122,036	$ 150,930	$ 184,268	$ 152,445	$ 121,727	$ 666,890	$ 609,370	$ 588,368
Net operating income	20,118	41,196	25,259	8,050	21,335	30,055	18,534	6,270	$ 94,623	$ 76,194	$ 71,153
Net income (loss)	$ 13,669	$ 33,849	$ 18,531	$ 1,132	$ 15,090	$ 22,875	$ 11,508	$ (798)
Earnings per share—diluted (in dollars per share)	$ 0.29	$ 0.70	$ 0.39	$ 0.02	$ 0.31	$ 0.48	$ 0.24	$ (0.02)	$ 1.40	$ 1.01	$ 0.94
Dividends paid per common share (in dollars per share)	0.18	0.18	0.18	0.18	0.1725	0.1725	0.1725	0.1725	0.720	0.690	$ 0.670
Maximum
Common stock market price range:
Common stock market price (in dollars per share)	46.15	39.65	39.40	37.6	36.85	35.62	34.95	27.33	46.15	36.85
Minimum
Common stock market price range:
Common stock market price (in dollars per share)	$ 38.15	$ 36.30	$ 32.75	$ 32.45	$ 29.25	$ 29.93	$ 26.22	$ 22.48	$ 38.15	$ 29.25

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - Unfavorable Regulatory Action [Member] - Subsequent Event [Member] $ in Millions	Feb. 06, 2018USD ($)
Subsequent Event [Line Items]
Estimate of possible loss	$ 13
Return on equity	9.43%
Proposed return on equity	8.22%

CONDENSED CONSOLIDATING FINAN67

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Nov. 17, 2010	Apr. 17, 2009
Cal Water
Long-term debt
Ownership interest	100.00%	100.00%	100.00%
All Other Subsidiaries
Long-term debt
Ownership interest	100.00%	100.00%	100.00%
First Mortgage Bonds, 5.875% due 2019
Long-term debt
Interest rate	5.875%
First Mortgage Bonds, 5.875% due 2019 | Cal Water
Long-term debt
Debt issued					$ 100,000,000
Interest rate					5.875%
First Mortgage Bonds, 5.500% due 2040
Long-term debt
Interest rate	5.50%
First Mortgage Bonds, 5.500% due 2040 | Cal Water
Long-term debt
Debt issued				$ 100,000,000
Interest rate				5.50%

CONDENSED CONSOLIDATING FINAN68

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 2) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Utility plant:
Utility plant	$ 2,970,179	$ 2,717,339
Less accumulated depreciation and amortization	(922,214)	(858,062)
Net utility plant	2,047,965	1,859,277
Current assets:
Cash and cash equivalents	94,776	25,492	$ 8,837	$ 19,587
Receivables and unbilled revenue	115,454	103,023
Receivables from affiliates	0	0
Other current assets	17,643	13,554
Total current assets	227,873	142,069
Other assets:
Regulatory assets	401,147	355,930
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	63,390	54,469
Total other assets	464,537	410,399
TOTAL ASSETS	2,740,375	2,411,745
Capitalization:
Common stockholders' equity	693,462	659,471	642,155	626,626
Affiliate long-term debt	0	0
Long-term debt, less current maturities	515,793	531,745
Total capitalization	1,209,255	1,191,216
Current liabilities:
Current maturities of long-term debt	15,920	26,208
Short-term borrowings	275,100	97,100
Payables to affiliates	0	0
Accounts payable	93,955	77,813
Accrued expenses and other liabilities	105,984	49,109
Total current liabilities	490,959	250,230
Unamortized investment tax credits	1,724	1,798
Deferred income taxes	192,946	298,924
Pension and postretirement benefits other than pensions	252,141	222,691
Regulatory and other long-term liabilities	224,127	83,648
Advances for construction	182,502	182,448
Contributions in aid of construction	186,721	180,790
TOTAL CAPITALIZATION AND LIABILITIES	2,740,375	2,411,745
Consolidating Adjustments
Utility plant:
Utility plant	(7,196)	(7,197)
Less accumulated depreciation and amortization	2,010	1,919
Net utility plant	(5,186)	(5,278)
Current assets:
Cash and cash equivalents	0	0	0	0
Receivables and unbilled revenue	0	0
Receivables from affiliates	(24,088)	(23,182)
Other current assets	0	0
Total current assets	(24,088)	(23,182)
Other assets:
Regulatory assets	0	0
Investments in affiliates	(698,690)	(666,525)
Long-term affiliate notes receivable	(26,441)	(25,744)
Other assets	(205)	(33)
Total other assets	(725,336)	(692,302)
TOTAL ASSETS	(754,610)	(720,762)
Capitalization:
Common stockholders' equity	(703,947)	(671,836)
Affiliate long-term debt	(26,441)	(25,744)
Long-term debt, less current maturities	0	0
Total capitalization	(730,388)	(697,580)
Current liabilities:
Current maturities of long-term debt	0	0
Short-term borrowings	0	0
Payables to affiliates	(24,088)	(23,182)
Accounts payable	0	0
Accrued expenses and other liabilities	0	0
Total current liabilities	(24,088)	(23,182)
Unamortized investment tax credits	0	0
Deferred income taxes	(134)	0
Pension and postretirement benefits other than pensions	0	0
Regulatory and other long-term liabilities	0	0
Advances for construction	0	0
Contributions in aid of construction	0	0
TOTAL CAPITALIZATION AND LIABILITIES	(754,610)	(720,762)
Parent Company
Utility plant:
Utility plant	1,321	1,318
Less accumulated depreciation and amortization	(919)	(826)
Net utility plant	402	492
Current assets:
Cash and cash equivalents	4,728	5,216	582	4,108
Receivables and unbilled revenue	0	0
Receivables from affiliates	19,952	19,566
Other current assets	80	80
Total current assets	24,760	24,862
Other assets:
Regulatory assets	0	0
Investments in affiliates	698,690	666,525
Long-term affiliate notes receivable	26,441	25,744
Other assets	192	376
Total other assets	725,323	692,645
TOTAL ASSETS	750,485	717,999
Capitalization:
Common stockholders' equity	693,462	659,471
Affiliate long-term debt	0	0
Long-term debt, less current maturities	0	0
Total capitalization	693,462	659,471
Current liabilities:
Current maturities of long-term debt	0	0
Short-term borrowings	55,100	57,100
Payables to affiliates	0	0
Accounts payable	0	0
Accrued expenses and other liabilities	271	88
Total current liabilities	55,371	57,188
Unamortized investment tax credits	0	0
Deferred income taxes	1,652	1,340
Pension and postretirement benefits other than pensions	0	0
Regulatory and other long-term liabilities	0	0
Advances for construction	0	0
Contributions in aid of construction	0	0
TOTAL CAPITALIZATION AND LIABILITIES	750,485	717,999
Cal Water
Utility plant:
Utility plant	2,771,259	2,519,785
Less accumulated depreciation and amortization	(868,762)	(805,992)
Net utility plant	1,902,497	1,713,793
Current assets:
Cash and cash equivalents	80,940	13,215	4,270	13,929
Receivables and unbilled revenue	110,928	98,850
Receivables from affiliates	4,093	3,608
Other current assets	16,569	12,442
Total current assets	212,530	128,115
Other assets:
Regulatory assets	397,333	352,139
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	59,581	50,361
Total other assets	456,914	402,500
TOTAL ASSETS	2,571,941	2,244,408
Capitalization:
Common stockholders' equity	626,300	595,003
Affiliate long-term debt	0	0
Long-term debt, less current maturities	514,952	530,850
Total capitalization	1,141,252	1,125,853
Current liabilities:
Current maturities of long-term debt	15,598	25,657
Short-term borrowings	220,000	40,000
Payables to affiliates	580	539
Accounts payable	90,561	74,998
Accrued expenses and other liabilities	104,002	47,232
Total current liabilities	430,741	188,426
Unamortized investment tax credits	1,724	1,798
Deferred income taxes	189,004	296,781
Pension and postretirement benefits other than pensions	252,141	222,691
Regulatory and other long-term liabilities	220,779	80,518
Advances for construction	181,979	181,907
Contributions in aid of construction	154,321	146,434
TOTAL CAPITALIZATION AND LIABILITIES	2,571,941	2,244,408
All Other Subsidiaries
Utility plant:
Utility plant	204,795	203,433
Less accumulated depreciation and amortization	(54,543)	(53,163)
Net utility plant	150,252	150,270
Current assets:
Cash and cash equivalents	9,108	7,061	$ 3,985	$ 1,550
Receivables and unbilled revenue	4,526	4,173
Receivables from affiliates	43	8
Other current assets	994	1,032
Total current assets	14,671	12,274
Other assets:
Regulatory assets	3,814	3,791
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	3,822	3,765
Total other assets	7,636	7,556
TOTAL ASSETS	172,559	170,100
Capitalization:
Common stockholders' equity	77,647	76,833
Affiliate long-term debt	26,441	25,744
Long-term debt, less current maturities	841	895
Total capitalization	104,929	103,472
Current liabilities:
Current maturities of long-term debt	322	551
Short-term borrowings	0	0
Payables to affiliates	23,508	22,643
Accounts payable	3,394	2,815
Accrued expenses and other liabilities	1,711	1,789
Total current liabilities	28,935	27,798
Unamortized investment tax credits	0	0
Deferred income taxes	2,424	803
Pension and postretirement benefits other than pensions	0	0
Regulatory and other long-term liabilities	3,348	3,130
Advances for construction	523	541
Contributions in aid of construction	32,400	34,356
TOTAL CAPITALIZATION AND LIABILITIES	$ 172,559	$ 170,100

CONDENSED CONSOLIDATING FINAN69

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 3) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Consolidating Financial Statements
Operating revenue	$ 161,991	$ 211,731	$ 171,132	$ 122,036	$ 150,930	$ 184,268	$ 152,445	$ 121,727	$ 666,890	$ 609,370	$ 588,368
Operations:
Purchased water									199,081	181,515	168,557
Purchased power									28,862	27,180	27,890
Pump taxes									13,924	11,298	11,479
Administrative and general									102,914	98,474	113,110
Other operations									74,448	80,082	67,248
Maintenance									22,530	22,993	21,463
Depreciation and amortization									76,783	63,599	61,381
Income tax (benefit) expense									28,928	24,804	24,528
Property and other taxes									24,797	23,231	21,559
Total operating expenses									572,267	533,176	517,215
Net operating income	$ 20,118	$ 41,196	$ 25,259	$ 8,050	$ 21,335	$ 30,055	$ 18,534	$ 6,270	94,623	76,194	71,153
Other income and expenses:
Non-regulated revenue									15,898	16,585	15,624
Non-regulated expenses									(9,390)	(11,445)	(14,044)
Allowance for equity funds used during construction									3,750	0	0
Gain (loss) on sale of non-utility property									663	(146)	315
Income tax expense on other income and expenses									(4,435)	(2,012)	(761)
Net other income									6,486	2,982	1,134
Interest expense:
Interest expense									36,288	33,466	29,185
Allowance for borrowed funds used during construction									(2,360)	(2,965)	(1,915)
Net interest expense									33,928	30,501	27,270
Equity earnings of subsidiaries									0	0	0
Net income									67,181	48,675	45,017
Consolidating Adjustments
Condensed Consolidating Financial Statements
Operating revenue									0	0	0
Operations:
Purchased water									0	0	0
Purchased power									0	0	0
Pump taxes									0	0	0
Administrative and general									0	0	0
Other operations									(524)	(505)	(505)
Maintenance									0	0	0
Depreciation and amortization									(91)	(96)	(101)
Income tax (benefit) expense									1,059	1,010	1,008
Property and other taxes									0	0	0
Total operating expenses									444	409	402
Net operating income									(444)	(409)	(402)
Other income and expenses:
Non-regulated revenue									(2,509)	(2,385)	(2,322)
Non-regulated expenses									0	0	0
Allowance for equity funds used during construction									0
Gain (loss) on sale of non-utility property									0	0	0
Income tax expense on other income and expenses									1,022	972	967
Net other income									(1,487)	(1,413)	(1,355)
Interest expense:
Interest expense									(1,985)	(1,879)	(1,817)
Allowance for borrowed funds used during construction									0	0	0
Net interest expense									(1,985)	(1,879)	(1,817)
Equity earnings of subsidiaries									(66,728)	(48,158)	(44,516)
Net income									(66,674)	(48,101)	(44,456)
Parent Company
Condensed Consolidating Financial Statements
Operating revenue									0	0	0
Operations:
Purchased water									0	0	0
Purchased power									0	0	0
Pump taxes									0	0	0
Administrative and general									0	0	0
Other operations									0	0	0
Maintenance									0	0	0
Depreciation and amortization									94	220	228
Income tax (benefit) expense									(498)	(398)	(388)
Property and other taxes									(4)	0	0
Total operating expenses									(408)	(178)	(160)
Net operating income									408	178	160
Other income and expenses:
Non-regulated revenue									1,985	1,850	1,787
Non-regulated expenses									0	0	0
Allowance for equity funds used during construction									0
Gain (loss) on sale of non-utility property									0	0	0
Income tax expense on other income and expenses									(809)	(754)	(728)
Net other income									1,176	1,096	1,059
Interest expense:
Interest expense									1,131	757	718
Allowance for borrowed funds used during construction									0	0	0
Net interest expense									1,131	757	718
Equity earnings of subsidiaries									66,728	48,158	44,516
Net income									67,181	48,675	45,017
Cal Water
Condensed Consolidating Financial Statements
Operating revenue									626,381	570,514	552,202
Operations:
Purchased water									198,682	181,018	168,157
Purchased power									21,021	19,791	20,282
Pump taxes									13,924	11,298	11,479
Administrative and general									92,195	88,001	101,244
Other operations									67,069	73,918	61,154
Maintenance									21,595	22,053	20,659
Depreciation and amortization									72,327	59,138	56,911
Income tax (benefit) expense									27,129	22,743	23,964
Property and other taxes									21,778	20,331	18,848
Total operating expenses									535,720	498,291	482,698
Net operating income									90,661	72,223	69,504
Other income and expenses:
Non-regulated revenue									14,608	15,114	14,460
Non-regulated expenses									(8,139)	(10,122)	(12,870)
Allowance for equity funds used during construction									3,750
Gain (loss) on sale of non-utility property									663	(146)	315
Income tax expense on other income and expenses									(4,434)	(1,976)	(776)
Net other income									6,448	2,870	1,129
Interest expense:
Interest expense									35,116	32,682	28,450
Allowance for borrowed funds used during construction									(2,319)	(2,905)	(1,873)
Net interest expense									32,797	29,777	26,577
Equity earnings of subsidiaries									0	0	0
Net income									64,312	45,316	44,056
All Other Subsidiaries
Condensed Consolidating Financial Statements
Operating revenue									40,509	38,856	36,166
Operations:
Purchased water									399	497	400
Purchased power									7,841	7,389	7,608
Pump taxes									0	0	0
Administrative and general									10,719	10,473	11,866
Other operations									7,903	6,669	6,599
Maintenance									935	940	804
Depreciation and amortization									4,453	4,337	4,343
Income tax (benefit) expense									1,238	1,449	(56)
Property and other taxes									3,023	2,900	2,711
Total operating expenses									36,511	34,654	34,275
Net operating income									3,998	4,202	1,891
Other income and expenses:
Non-regulated revenue									1,814	2,006	1,699
Non-regulated expenses									(1,251)	(1,323)	(1,174)
Allowance for equity funds used during construction									0
Gain (loss) on sale of non-utility property									0	0	0
Income tax expense on other income and expenses									(214)	(254)	(224)
Net other income									349	429	301
Interest expense:
Interest expense									2,026	1,906	1,834
Allowance for borrowed funds used during construction									(41)	(60)	(42)
Net interest expense									1,985	1,846	1,792
Equity earnings of subsidiaries									0	0	0
Net income									$ 2,362	$ 2,785	$ 400

CONDENSED CONSOLIDATING FINAN70

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating activities:
Net income (loss)	$ 67,181	$ 48,675	$ 45,017
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	0	0	0
Dividends received from affiliates	0	0	0
Depreciation and amortization	78,592	65,203	63,182
Amortization of debt premium and expenses	920	871	825
Change in value of life insurance contracts	(3,058)	(1,026)	218
Stock-based compensation	3,118	2,849	2,578
(Gain) loss on sale of non-utility property	(663)	146	(315)
Write-off of capital costs	1,293	3,221	0
Changes in normalized deferred income taxes	21,087	26,818	24,393
Allowance for equity funds used during construction	(3,750)	0	0
Changes in operating assets and liabilities	(36,389)	6,781	(1,877)
Other changes in noncurrent assets and liabilities	21,724	6,906	11,773
Net cash provided by operating activities	147,842	160,444	144,969
Investing activities:
Utility plant expenditures	(259,194)	(228,938)	(176,833)
TCP settlement proceeds	56,004	0	0
Proceeds from sale of non-utility properties	666	395	319
Investment in affiliates			0
Change in affiliate advances	0	0	0
Collection of affiliate short-term borrowings		0	0
Life insurance benefits	1,558	495	0
Issuance of affiliate short-term borrowings	0	0	0
Collection of affiliate long-term debt	0	0	0
Purchase of life insurance contracts	(5,605)	(2,857)	(2,032)
Change in restricted cash	(81)	66	288
Net cash used in investing activities	(206,652)	(230,839)	(178,258)
Financing Activities:
Short-term borrowings	265,000	145,100	94,303
Repayment of short-term borrowings	(87,000)	(81,615)	(141,000)
Investment from affiliates			0
Change in affiliate advances	0	0	0
Proceeds from affiliate short-term borrowings	0	0	0
Repayment of affiliate short-term borrowings		0	0
Repayment of affiliate long-term debt	0	0	0
Issuance of long-term debt, net	0	49,823	99,343
Repayment of long-term debt	(26,829)	(6,996)	(7,003)
Repurchase of common stock	(1,505)	(744)	(338)
Advances and contributions in aid of construction	21,369	21,448	16,026
Refunds of advances for construction	(8,378)	(6,885)	(6,726)
Dividends paid to non-affiliates	(34,563)	(33,081)	(32,066)
Dividends paid to affiliates	0	0	0
Net cash provided by financing activities	128,094	87,050	22,539
Change in cash and cash equivalents	69,284	16,655	(10,750)
Cash and cash equivalents at beginning of year	25,492	8,837	19,587
Cash and cash equivalents at end of year	94,776	25,492	8,837
Consolidating Adjustments
Operating activities:
Net income (loss)	(66,674)	(48,101)	(44,456)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	66,728	48,158	44,516
Dividends received from affiliates	(34,563)	(33,081)	(32,066)
Depreciation and amortization	(91)	(96)	(101)
Amortization of debt premium and expenses		0
Change in value of life insurance contracts	0	0	0
Stock-based compensation	0	0	0
(Gain) loss on sale of non-utility property	0	0	0
Write-off of capital costs		0
Changes in normalized deferred income taxes	0	0	0
Allowance for equity funds used during construction	0
Changes in operating assets and liabilities	0	0	(94)
Other changes in noncurrent assets and liabilities	37	39	135
Net cash provided by operating activities	(34,563)	(33,081)	(32,066)
Investing activities:
Utility plant expenditures	0	0	0
TCP settlement proceeds	0
Proceeds from sale of non-utility properties	0	0	0
Investment in affiliates			1,000
Change in affiliate advances	363	(1,335)	1,235
Collection of affiliate short-term borrowings		(42,465)	(3,000)
Life insurance benefits	0	0
Issuance of affiliate short-term borrowings	2,610	22,965	24,780
Collection of affiliate long-term debt	(1,356)	(1,175)	(1,007)
Purchase of life insurance contracts	0	0	0
Change in restricted cash	0	0	0
Net cash used in investing activities	1,617	(22,010)	23,008
Financing Activities:
Short-term borrowings	0	0	0
Repayment of short-term borrowings	0	0	0
Investment from affiliates			(1,000)
Change in affiliate advances	(363)	1,335	(1,235)
Proceeds from affiliate short-term borrowings	(2,610)	(22,965)	(24,780)
Repayment of affiliate short-term borrowings		42,465	3,000
Repayment of affiliate long-term debt	1,356	1,175	1,007
Issuance of long-term debt, net		0	0
Repayment of long-term debt	0	0	0
Repurchase of common stock	0	0	0
Advances and contributions in aid of construction	0	0	0
Refunds of advances for construction	0	0	0
Dividends paid to non-affiliates	0	0	0
Dividends paid to affiliates	34,563	33,081	32,066
Net cash provided by financing activities	32,946	55,091	9,058
Change in cash and cash equivalents	0	0	0
Cash and cash equivalents at beginning of year	0	0	0
Cash and cash equivalents at end of year	0	0	0
Parent Company
Operating activities:
Net income (loss)	67,181	48,675	45,017
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	(66,728)	(48,158)	(44,516)
Dividends received from affiliates	34,563	33,081	32,066
Depreciation and amortization	94	220	228
Amortization of debt premium and expenses		0
Change in value of life insurance contracts	0	0	0
Stock-based compensation	3,118	2,849	2,578
(Gain) loss on sale of non-utility property	0	0	0
Write-off of capital costs		0
Changes in normalized deferred income taxes	0	0	0
Allowance for equity funds used during construction	0
Changes in operating assets and liabilities	184	(14)	(758)
Other changes in noncurrent assets and liabilities	254	355	1,774
Net cash provided by operating activities	38,666	37,008	36,389
Investing activities:
Utility plant expenditures	(4)	0	0
TCP settlement proceeds	0
Proceeds from sale of non-utility properties	0	0	0
Investment in affiliates			(1,000)
Change in affiliate advances	172	291	(239)
Collection of affiliate short-term borrowings		365	3,000
Life insurance benefits	0	0
Issuance of affiliate short-term borrowings	(2,610)	(2,365)	(3,280)
Collection of affiliate long-term debt	1,356	1,175	1,007
Purchase of life insurance contracts	0	0	0
Change in restricted cash	0	0	0
Net cash used in investing activities	(1,086)	(534)	(512)
Financing Activities:
Short-term borrowings	0	44,100	15,101
Repayment of short-term borrowings	(2,000)	(20,615)	(43,600)
Investment from affiliates			0
Change in affiliate advances	0	0	0
Proceeds from affiliate short-term borrowings	0	20,600	21,500
Repayment of affiliate short-term borrowings		(42,100)	0
Repayment of affiliate long-term debt	0	0	0
Issuance of long-term debt, net		0	0
Repayment of long-term debt	0	0	0
Repurchase of common stock	(1,505)	(744)	(338)
Advances and contributions in aid of construction	0	0	0
Refunds of advances for construction	0	0	0
Dividends paid to non-affiliates	(34,563)	(33,081)	(32,066)
Dividends paid to affiliates	0	0	0
Net cash provided by financing activities	(38,068)	(31,840)	(39,403)
Change in cash and cash equivalents	(488)	4,634	(3,526)
Cash and cash equivalents at beginning of year	5,216	582	4,108
Cash and cash equivalents at end of year	4,728	5,216	582
Cal Water
Operating activities:
Net income (loss)	64,312	45,316	44,056
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	0	0	0
Dividends received from affiliates	0	0	0
Depreciation and amortization	74,041	60,572	58,385
Amortization of debt premium and expenses		871
Change in value of life insurance contracts	(3,058)	(1,026)	218
Stock-based compensation	0	0	0
(Gain) loss on sale of non-utility property	(663)	146	(315)
Write-off of capital costs		3,221
Changes in normalized deferred income taxes	21,087	26,818	24,393
Allowance for equity funds used during construction	(3,750)
Changes in operating assets and liabilities	(36,611)	6,534	(6,417)
Other changes in noncurrent assets and liabilities	18,860	4,645	14,807
Net cash provided by operating activities	134,218	147,097	135,127
Investing activities:
Utility plant expenditures	(252,055)	(224,378)	(171,645)
TCP settlement proceeds	56,004
Proceeds from sale of non-utility properties	666	395	319
Investment in affiliates			0
Change in affiliate advances	(485)	1,111	(1,111)
Collection of affiliate short-term borrowings		42,100	0
Life insurance benefits	1,558	495
Issuance of affiliate short-term borrowings	0	(20,600)	(21,500)
Collection of affiliate long-term debt	0	0	0
Purchase of life insurance contracts	(5,605)	(2,857)	(2,032)
Change in restricted cash	(81)	66	288
Net cash used in investing activities	(199,998)	(203,668)	(195,681)
Financing Activities:
Short-term borrowings	265,000	101,000	79,202
Repayment of short-term borrowings	(85,000)	(61,000)	(97,400)
Investment from affiliates			0
Change in affiliate advances	41	(128)	397
Proceeds from affiliate short-term borrowings	0	0	0
Repayment of affiliate short-term borrowings		0	0
Repayment of affiliate long-term debt	0	0	0
Issuance of long-term debt, net		49,823	99,293
Repayment of long-term debt	(26,223)	(6,548)	(6,528)
Repurchase of common stock	0	0	0
Advances and contributions in aid of construction	21,075	21,329	14,195
Refunds of advances for construction	(8,373)	(6,855)	(6,681)
Dividends paid to non-affiliates	0	0	0
Dividends paid to affiliates	(33,015)	(32,105)	(31,583)
Net cash provided by financing activities	133,505	65,516	50,895
Change in cash and cash equivalents	67,725	8,945	(9,659)
Cash and cash equivalents at beginning of year	13,215	4,270	13,929
Cash and cash equivalents at end of year	80,940	13,215	4,270
All Other Subsidiaries
Operating activities:
Net income (loss)	2,362	2,785	400
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	0	0	0
Dividends received from affiliates	0	0	0
Depreciation and amortization	4,548	4,507	4,670
Amortization of debt premium and expenses		0
Change in value of life insurance contracts	0	0	0
Stock-based compensation	0	0	0
(Gain) loss on sale of non-utility property	0	0	0
Write-off of capital costs		0
Changes in normalized deferred income taxes	0	0	0
Allowance for equity funds used during construction	0
Changes in operating assets and liabilities	38	261	5,392
Other changes in noncurrent assets and liabilities	2,573	1,867	(4,943)
Net cash provided by operating activities	9,521	9,420	5,519
Investing activities:
Utility plant expenditures	(7,135)	(4,560)	(5,188)
TCP settlement proceeds	0
Proceeds from sale of non-utility properties	0	0	0
Investment in affiliates			0
Change in affiliate advances	(50)	(67)	115
Collection of affiliate short-term borrowings		0	0
Life insurance benefits	0	0
Issuance of affiliate short-term borrowings	0	0	0
Collection of affiliate long-term debt	0	0	0
Purchase of life insurance contracts	0	0	0
Change in restricted cash	0	0	0
Net cash used in investing activities	(7,185)	(4,627)	(5,073)
Financing Activities:
Short-term borrowings	0	0	0
Repayment of short-term borrowings	0	0	0
Investment from affiliates			1,000
Change in affiliate advances	322	(1,207)	838
Proceeds from affiliate short-term borrowings	2,610	2,365	3,280
Repayment of affiliate short-term borrowings		(365)	(3,000)
Repayment of affiliate long-term debt	(1,356)	(1,175)	(1,007)
Issuance of long-term debt, net		0	50
Repayment of long-term debt	(606)	(448)	(475)
Repurchase of common stock	0	0	0
Advances and contributions in aid of construction	294	119	1,831
Refunds of advances for construction	(5)	(30)	(45)
Dividends paid to non-affiliates	0	0	0
Dividends paid to affiliates	(1,548)	(976)	(483)
Net cash provided by financing activities	(289)	(1,717)	1,989
Change in cash and cash equivalents	2,047	3,076	2,435
Cash and cash equivalents at beginning of year	7,061	3,985	1,550
Cash and cash equivalents at end of year	$ 9,108	$ 7,061	$ 3,985