California Water Service (CWT) 10-Q 26 Jul 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2018shares
Document and Entity Information
Entity Registrant Name	CALIFORNIA WATER SERVICE GROUP
Entity Central Index Key	1,035,201
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	48,070,000
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Utility plant:
Utility plant	$ 3,094,616	$ 2,970,179
Less accumulated depreciation and amortization	(964,352)	(922,214)
Net utility plant	2,130,264	2,047,965
Current assets:
Cash and cash equivalents	33,668	94,776
Receivables:
Customers	44,700	32,451
Regulatory balancing accounts	33,257	36,783
Other	19,859	16,464
Unbilled revenue	36,192	29,756
Materials and supplies at weighted average cost	6,714	6,463
Taxes, prepaid expenses, and other assets	15,180	11,180
Total current assets	189,570	227,873
Other assets:
Regulatory assets	405,297	401,147
Goodwill	2,615	2,615
Other assets	61,768	60,775
Total other assets	469,680	464,537
TOTAL ASSETS	2,789,514	2,740,375
Capitalization:
Common stock, $0.01 par value; 68,000 shares authorized, 48,070 and 48,012 outstanding in 2018 and 2017, respectively	481	480
Additional paid-in capital	336,238	336,229
Retained earnings	349,213	356,753
Total common stockholders’ equity	685,932	693,462
Long-term debt, less current maturities	414,530	515,793
Total capitalization	1,100,462	1,209,255
Current liabilities:
Current maturities of long-term debt	105,024	15,920
Short-term borrowings	325,100	275,100
Accounts payable	93,032	93,955
Regulatory balancing accounts	56,317	59,303
Accrued interest	5,751	6,122
Accrued expenses and other liabilities	37,076	40,559
Total current liabilities	622,300	490,959
Unamortized investment tax credits	1,724	1,724
Deferred income taxes	196,109	192,946
Pension and postretirement benefits other than pensions	256,431	252,141
Regulatory liabilities and other	238,912	224,127
Advances for construction	185,286	182,502
Contributions in aid of construction	188,290	186,721
Commitments and contingencies (Note 10)
TOTAL CAPITALIZATION AND LIABILITIES	$ 2,789,514	$ 2,740,375

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	68,000,000	68,000,000
Common stock, shares outstanding (in shares)	48,070,000	48,012,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Operating revenue	$ 172,632	$ 171,132	$ 304,879	$ 293,168
Operations:
Water production costs	65,373	64,131	112,979	106,199
Administrative and general	24,383	21,413	50,702	44,159
Other operations	20,724	18,328	38,364	34,452
Maintenance	5,389	4,708	10,828	10,820
Depreciation and amortization	20,953	19,218	41,668	38,419
Income taxes	4,347	10,606	4,118	9,722
Property and other taxes	6,407	6,057	13,111	12,173
Total operating (income) expenses	147,576	144,461	271,770	255,944
Net operating income	25,056	26,671	33,109	37,224
Other income and expenses:
Non-regulated revenue	4,845	3,739	9,264	7,201
Non-regulated expenses	(6,115)	(1,614)	(11,552)	(3,668)
Other components of net periodic benefit cost	(2,463)	(2,383)	(5,009)	(4,886)
Allowance for equity funds used during construction	710	879	1,621	1,658
Income tax benefit (expense) on other income and expenses	819	(246)	1,577	(1,135)
Net other (loss) income	(2,204)	375	(4,099)	(830)
Interest expense:
Interest expense	10,134	9,079	19,332	17,789
Allowance for borrowed funds used during construction	(304)	(564)	(799)	(1,058)
Net interest expense	9,830	8,515	18,533	16,731
Net income	$ 13,022	$ 18,531	$ 10,477	$ 19,663
Earnings per share:
Basic (in dollars per share)	$ 0.27	$ 0.39	$ 0.22	$ 0.41
Diluted (in dollars per share)	$ 0.27	$ 0.39	$ 0.22	$ 0.41
Weighted average shares outstanding:
Basic (in shares)	48,073	48,020	48,051	48,002
Diluted (in shares)	48,073	48,020	48,051	48,002
Dividends declared per share of common stock (in dollars per share)	$ 0.1875	$ 0.18	$ 0.3750	$ 0.3600

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net income	$ 10,477	$ 19,663
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	42,582	39,328
Change in value of life insurance contracts	817	(1,208)
Allowance for equity funds used during construction	(1,621)	(1,658)
Changes in operating assets and liabilities:
Receivables and unbilled revenue	(14,431)	(35,533)
Accounts payable	6,417	3,242
Other current assets	(4,207)	(7,048)
Other current liabilities	(4,168)	(747)
Other changes in noncurrent assets and liabilities	13,705	19,687
Net cash provided by operating activities	49,571	35,726
Investing activities:
Utility plant expenditures	(133,900)	(108,712)
Life insurance proceeds	2,054	450
Purchase of life insurance contracts	(2,054)	(1,216)
Net cash used in investing activities	(133,900)	(109,478)
Financing activities:
Short-term borrowings	111,000	140,000
Repayment of short-term borrowings	(61,000)	(47,000)
Repayment of long-term debt	(12,264)	(2,407)
Advances and contributions in aid of construction	8,385	10,312
Refunds of advances for construction	(3,498)	(4,430)
Repurchase of common stock	(1,364)	(1,236)
Dividends paid	(18,017)	(17,278)
Net cash provided by financing activities	23,242	77,961
Change in cash, cash equivalents, and restricted cash	(61,087)	4,209
Cash, cash equivalents, and restricted cash at beginning of period	95,352	25,935
Cash, cash equivalents, and restricted cash at end of period	34,265	30,144
Supplemental information:
Cash paid for interest (net of amounts capitalized)	17,344	15,932
Income tax refund	0	(1,697)
Supplemental disclosure of non-cash activities:
Accrued payables for investments in utility plant	30,696	28,494
Utility plant contribution by developers	$ 8,653	$ 7,212

Organization and Operations and

Organization and Operations and Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations and Basis of Presentation	Organization and Operations and Basis of Presentation California Water Service Group (the Company) is a holding company that provides water utility and other related services in California, Washington, New Mexico and Hawaii through its wholly-owned subsidiaries. California Water Service Company (Cal Water), Washington Water Service Company (Washington Water), New Mexico Water Service Company (New Mexico Water), and Hawaii Water Service Company, Inc. (Hawaii Water) provide regulated utility services under the rules and regulations of their respective state’s regulatory commissions (jointly referred to herein as the Commissions). CWS Utility Services and HWS Utility Services LLC provide non-regulated water utility and utility-related services. The Company operates in one reportable segment, providing water and related utility services. Basis of Presentation The unaudited condensed consolidated interim financial information has been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (SEC) and therefore do not contain all of the information and footnotes required by GAAP and the SEC for annual financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2017 , included in its annual report on Form 10-K as filed with the SEC on March 1, 2018. The preparation of the Company’s unaudited condensed consolidated interim financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses for the periods presented. These include, but are not limited to, estimates and assumptions used in determining the Company’s regulatory asset and liability balances based upon probability assessments of regulatory recovery, revenues earned but not yet billed, asset retirement obligations, allowance for doubtful accounts, pension and other employee benefit plan liabilities, and income tax-related assets and liabilities. Actual results could differ from these estimates. In the opinion of management, the accompanying unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring transactions that are necessary to provide a fair presentation of the results for the periods covered. The results for interim periods are not necessarily indicative of the results for any future period. Due to the seasonal nature of the water business, the results for interim periods are not indicative of the results for a 12-month period. Revenue and income are generally higher in the warm, dry summer months when water usage and sales are greater. Revenue and income are generally lower in the winter months when cooler temperatures and rainfall curtail water usage and sales.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Operating revenue The following tables disaggregate the Company’s operating revenue by source for the three and six month periods ended June 30, 2018 and 2017: Three Months Ended June 30 2018 2017 Revenue from contracts with customers $ 171,772 $ 162,593 Regulatory balancing account revenue 860 8,539 Total operating revenue $ 172,632 $ 171,132 Six Months Ended June 30 2018 2017 Revenue from contracts with customers $ 306,026 $ 275,405 Regulatory balancing account revenue (1,147 ) 17,763 Total operating revenue $ 304,879 $ 293,168 Revenue from contracts with customers The Company principally generates operating revenue from contracts with customers by providing regulated water and wastewater services at tariff-rates authorized by the Commissions in the states in which they operate and non-regulated water and wastewater services at rates authorized by contracts with government agencies. Revenue from contracts with customers reflects amounts billed for the volume of consumption at authorized per unit rates, for a service charge, and for other authorized charges. The Company satisfies its performance obligation to provide water and wastewater services over time as services are rendered. The Company applies the invoice practical expedient and recognizes revenue from contracts with customers in the amount for which the Company has a right to invoice. The Company has a right to invoice for the volume of consumption, for the service charge, and for other authorized charges. The measurement of sales to customers is generally based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, the Company estimates consumption since the date of the last meter reading and a corresponding unbilled revenue is recognized. The estimate is based upon the number of unbilled days that month and the average daily customer billing rate from the previous month (which fluctuates based upon customer usage). Contract terms are generally short-term and at will by customers and, as a result, no separate financing component is recognized for the Company's collections from customers, which generally require payment within 30 days of billing. The Company applies judgment, based principally on historical payment experience, in estimating its customers’ ability to pay. Certain customers are not billed for volumetric consumption, but are instead billed a flat rate at the beginning of each monthly service period. The amount billed is initially deferred and subsequently recognized over the monthly service period, as the performance obligation is satisfied. The deferred revenue balance, which is included in "accrued expenses and other liabilities" on the consolidated balance sheets, is inconsequential. In the following tables, revenue from contracts with customers is disaggregated by class of customers for the three and six month periods ended June 30, 2018 and 2017: Three Months Ended June 30 2018 2017 Residential $ 109,849 $ 102,171 Business 32,125 29,543 Industrial 7,941 6,408 Public authorities 8,251 7,874 Other 13,606 16,597 Total revenue from contracts with customers $ 171,772 $ 162,593 Six Months Ended June 30 2018 2017 Residential $ 201,167 $ 178,036 Business 59,182 51,569 Industrial 15,520 13,363 Public authorities 13,695 12,020 Other 16,462 20,417 Total revenue from contracts with customers $ 306,026 $ 275,405 Regulatory balancing account revenue The Company’s ability to recover revenue requirements authorized by the California Public Utilities Commission (CPUC) in its triennial General Rate Case (GRC), is decoupled from the volume of the sales. Regulatory balancing account revenue is revenue related to rate mechanisms authorized in California by the CPUC, which allow the Company to recover the authorized revenue and are not considered contracts with customers. The Water Revenue Adjustment Mechanism (WRAM) allows the Company to recognize the adopted level of volumetric revenues. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as regulatory balancing account revenue. Cost-recovery rates, such as the Modified Cost Balancing Account (MCBA), provide for recovery of the adopted levels of expenses for purchased water, purchased power, pump taxes, water conservation program costs and certain other operating expenses. Variances between adopted and actual costs are recorded as regulatory balancing account revenue. Each district's WRAM and MCBA regulatory assets and liabilities are allowed to be netted against one another. The Company recognizes regulatory balancing account revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected within 24 months. To the extent that regulatory balancing account revenue is estimated to be collectible beyond 24 months, recognition is deferred. Non-regulated Revenue The following tables disaggregate the Company’s non-regulated revenue by source for the three and six month periods ended June 30, 2018 and 2017: Three Months Ended June 30 2018 2017 Operating and maintenance revenue $ 2,297 $ 2,053 Other non-regulated revenue 1,981 1,178 Non-regulated revenue from contracts with customers $ 4,278 $ 3,231 Lease revenue $ 567 $ 508 Total non-regulated revenue $ 4,845 $ 3,739 Six Months Ended June 30 2018 2017 Operating and maintenance revenue $ 5,462 $ 3,966 Other non-regulated revenue 2,724 2,220 Non-regulated revenue from contracts with customers $ 8,186 $ 6,186 Lease revenue $ 1,078 $ 1,015 Total non-regulated revenue $ 9,264 $ 7,201 Operating and maintenance services are provided for non-regulated water and wastewater systems owned by private companies and municipalities. The Company negotiates formal agreements with the customers, under which they provide operating, maintenance and customer billing services related to the customers’ water system. The formal agreements outline the fee schedule for the services provided. The agreements typically call for a fee-per-service or a flat-rate amount per month. The Company satisfies its performance obligation of providing operating and maintenance services over time as services are rendered; as a result, the Company employs the invoice practical expedient and recognizes revenue in the amount that it has the right to invoice. Contract terms are generally short-term and, as a result, no separate financing component is recognized for its collections from customers, which generally require payment within 30 days of billing. Other non-regulated revenue primarily relates to services for the design and installation of water mains and other water infrastructure for customers outside the regulated service areas and insurance program administration. Other non-regulated revenue is inconsequential. The Company is the lessor in operating lease agreements with telecommunications companies under which cellular phone antennas are placed on the Company's property. Lease revenue is not considered revenue from contracts with customers and is recognized following current operating lease standards. Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown on the Condensed Consolidated Statements of Cash Flows: June 30, 2018 December 31, 2017 Cash and cash equivalents 33,668 94,776 Restricted cash (included in "taxes, prepaid expenses and other assets") 597 576 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 34,265 $ 95,352 Adoption of New Accounting Standards In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (codified in ASC 606), which amends the existing revenue recognition guidance. The Company completed an evaluation of the new revenue standard and implemented the standard on January 1, 2018 using the modified retrospective method for all contracts. The reported results for the first three and six months of 2018 reflect the application of ASC 606 guidance, while prior period amounts were not adjusted and continue to be reported in accordance with the accounting standards in effect for those periods. Other than increased disclosures regarding revenues related to contracts with customers, the implementation did not have a significant impact on the Company’s consolidated financial statements (see "Operating Revenue" section of note 2 above). In August of 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. The Company will continue to classify proceeds from the settlement of insurance claims on the basis of the nature of the loss and from the settlement of Company-owned life insurance policies as cash inflows on the Condensed Consolidated Statements of Cash Flows. The Company implemented the standard on January 1, 2018 and retrospectively applied the standard in the comparative period. The standard does not have a significant impact to the Company's consolidated financial statements. In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash . The update requires the Company to combine restricted cash with cash and cash equivalents when reconciling the beginning and end of period balances in the Condensed Consolidated Statements of Cash Flows. The Company implemented the standard on January 1, 2018 and retrospectively applied the standard in the comparative period. The following table shows the effect of the accounting change to the Condensed Consolidated Statements of Cash Flows: Six Months Ended June 30, 2017 Condensed Consolidated Statements of Cash Flows line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Change in restricted cash $ (598 ) $ — $ 598 Net cash used in investing activities $ (110,076 ) $ (109,478 ) $ 598 Change in cash, cash equivalents, and restricted cash $ 3,611 $ 4,209 $ 598 Cash, cash equivalents, and restricted cash at beginning of period $ 25,492 $ 25,935 $ 443 Cash, cash equivalents, and restricted cash at end of period $ 29,103 $ 30,144 $ 1,041 In March of 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. In addition, the standard only allows the service cost component to be eligible for capitalization. The standard became effective as of January 1, 2018. The presentation amendments were applied retrospectively and the capitalization amendments were applied prospectively on and after the effective date. The Company applied the practical expedient that permits the Company to use the amounts disclosed in its pension and other postretirement benefit plan footnote from the prior comparative periods as the estimation basis for applying the retrospective presentation requirements . The Commissions have authorized the Company to recover the other components of net periodic benefit cost through the Company’s capital program and thus on and after the effective date, the other components of net periodic benefit cost that have previously been recorded as part of utility plant have been recognized as a regulatory asset (see note 9). As a result, the changes required by the standard did not have a material impact on the results of operations. The following tables show the effect of the accounting change to the Condensed Consolidated Statements of Income for the three and six month periods ended June 30, 2017: Three Months Ended June 30, 2017 Condensed Consolidated Statement of Income line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Administrative and general $ 23,796 $ 21,413 $ (2,383 ) Income taxes $ 9,635 $ 10,606 $ 971 Total operating expenses $ 145,873 $ 144,461 $ (1,412 ) Net operating income $ 25,259 $ 26,671 $ 1,412 Other components of net periodic benefit cost $ — $ (2,383 ) $ 2,383 Income tax expense on other income and expense $ (1,217 ) $ (246 ) $ 971 Net other income $ 1,787 $ 375 $ (1,412 ) Six Months Ended June 30, 2017 Condensed Consolidated Statement of Income line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Administrative and general $ 49,045 $ 44,159 $ (4,886 ) Income taxes $ 8,751 $ 9,722 $ 971 Total operating expenses $ 259,859 $ 255,944 $ (3,915 ) Net operating income $ 33,309 $ 37,224 $ 3,915 Other components of net periodic benefit cost $ — $ (4,886 ) $ 4,886 Income tax expense on other income and expense $ (2,106 ) $ (1,135 ) $ 971 Net other income $ 3,085 $ (830 ) $ (3,915 ) New Accounting Standards Issued But Not Yet Adopted In February of 2016, the FASB issued ASU 2016-02, Leases, which amends the guidance relating to the definition of a lease, recognition of lease assets and liabilities on the balance sheet, and the 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 Condensed Consolidated Balance Sheets. The Company intends to elect certain practical expedients and will carry forward historical conclusions related to (1) contracts that contain leases, (2) existing lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. The Company will also apply the practical expedient that will allow the Company to elect, as an accounting policy, by asset class, to include both lease and nonlease components as a single component and account for it as a lease. The Company will apply the short-term lease exception for lessees which will allow the Company to not have to apply the recognition requirements of the new leasing guidance for short-term leases and to recognize lease payments in net income on a straight line basis over the lease term. The Company does not expect that the guidance will have a material impact on the Condensed Consolidated Statements of Income, Condensed Consolidated Statements of Cash Flows, and lease disclosures.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock-based Compensation Equity Incentive Plan During the six months ended June 30, 2018 and 2017, the Company granted annual Restricted Stock Awards (RSAs) of 46,135 and 48,717 , respectively, to officers and directors of the Company. During those same periods, 13,306 RSAs and 14,186 RSAs, respectively, were canceled. During the three months ended June 30, 2018 and 2017, no RSAs were granted and 3,842 RSAs and 3,284 RSAs, respectively, were canceled. RSAs granted to officers vest over 36 months with the first year cliff vesting. RSAs granted to directors generally vest at the end of 12 months . During the first six months of 2018 and 2017, the RSAs granted were valued at $35.40 and $36.75 per share, respectively, based upon the fair value of the Company’s common stock on the date of grant. During the six months ended June 30, 2018 and 2017, the Company granted 28,594 and 31,389 performance-based Restricted Stock Unit Awards (RSUs), respectively, to officers. During those same periods, the Company issued 48,753 RSUs and 38,709 RSUs, respectively, to officers, and canceled 24,009 RSUs and 19,735 RSUs, respectively. During the three months ended June 30, 2018 and 2017, the Company did not grant, issue or cancel any RSUs. Each RSU award reflects a target number of shares that may be issued to the award recipient. The 2018 and 2017 awards may be earned upon completion of the three -year performance period and are recognized as expense ratably over the period using a fair value of $35.40 per share and $36.75 per share, respectively, and an estimate of RSUs earned during the period. The Company has recorded compensation costs for the RSAs and RSUs in administrative and general operating expenses in the amount of $1.5 million for the six months ended June 30, 2018 and 2017.

Equity

Equity	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Equity	Equity The Company’s changes in total common stockholders’ equity for the six months ended June 30, 2018 were as follows: Total Common Stockholders’ Equity Balance at December 31, 2017 $ 693,462 Common stock issued 1 Share-based compensation expense 1,373 Repurchase of common stock (1,364 ) Common stock dividends declared (18,017 ) Net income 10,477 Balance at June 30, 2018 $ 685,932

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The computations of basic and diluted earnings per share are noted in the table below. Basic earnings per share are computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. RSAs are included in the weighted average common shares outstanding because the shares have all the same voting and dividend rights as issued and unrestricted common stock. RSUs are not included in diluted shares for financial reporting until authorized by the Organization & Compensation Committee of the Board of Directors. Three Months Ended June 30 2018 2017 (In thousands, except per share data) Net income available to common stockholders $ 13,022 $ 18,531 Weighted average common shares outstanding, basic 48,073 48,020 Weighted average common shares outstanding, dilutive 48,073 48,020 Earnings per share - basic $ 0.27 $ 0.39 Earnings per share - diluted $ 0.27 $ 0.39 Six Months Ended June 30 2018 2017 (In thousands, except per share data) Net income available to common stockholders $ 10,477 $ 19,663 Weighted average common shares outstanding, basic 48,051 48,002 Weighted average common shares outstanding, dilutive 48,051 48,002 Earnings per share - basic $ 0.22 $ 0.41 Earnings per share - diluted $ 0.22 $ 0.41

Pension Plan and Other Postreti

Pension Plan and Other Postretirement Benefits	6 Months Ended
	Jun. 30, 2018
Retirement Benefits [Abstract]
Pension Plan and Other Postretirement Benefits	Pension Plan and Other Postretirement Benefits The Company provides a qualified, defined-benefit, non-contributory pension plan for substantially all employees. The Company makes annual contributions to fund the amounts accrued for in the qualified pension plan. The Company also maintains an unfunded, non-qualified, supplemental executive retirement plan. The costs of the plans are charged to expense or are capitalized in utility plant as appropriate. The Company offers medical, dental, vision, and life insurance benefits for retirees and their spouses and dependents. Participants are required to pay a premium, which offsets a portion of the cost. Cash contributions by the Company related to pension plans were $16.0 million and $14.8 million for the six months ended June 30, 2018 and 2017, respectively. Cash contributions by the Company related to other postretirement benefit plans were $2.7 million for the six months ended June 30, 2018 and no cash contributions were made for the six months ended June 30, 2017. The total 2018 estimated cash contribution to the pension plans is $33.4 million and to the other postretirement benefit plans is $10.1 million . The following table lists components of net periodic benefit costs for the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits. Three Months Ended June 30 Pension Plan Other Benefits 2018 2017 2018 2017 Service cost $ 7,402 $ 5,865 $ 2,550 $ 2,019 Interest cost 5,995 5,791 1,484 1,491 Expected return on plan assets (6,862 ) (6,029 ) (1,416 ) (1,218 ) Amortization of prior service cost 1,263 1,445 11 11 Recognized net actuarial loss 2,797 1,752 773 649 Net periodic benefit cost $ 10,595 $ 8,824 $ 3,402 $ 2,952 Six Months Ended June 30 Pension Plan Other Benefits 2018 2017 2018 2017 Service cost $ 14,804 $ 11,730 $ 5,100 $ 4,038 Interest cost 11,989 11,581 2,969 2,982 Expected return on plan assets (13,725 ) (12,058 ) (2,832 ) (2,436 ) Amortization of prior service cost 2,526 2,890 21 22 Recognized net actuarial loss 5,595 3,504 1,547 1,298 Net periodic benefit cost $ 21,189 $ 17,647 $ 6,805 $ 5,904 Service cost portion of the pension plan and other postretirement benefits is recognized in administrative and general within the Condensed Consolidated Statements of Income. Other components of net periodic benefit costs include interest costs, expected return on plan assets, amortization of prior service costs, and recognized net actuarial loss and are reported together as other components of net periodic benefit costs within the Condensed Consolidated Statements of Income (see note 2).

Short-term and Long-term Borrow

Short-term and Long-term Borrowings	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Short-term and Long-term Borrowings	Short-term and Long-term Borrowings Both short-term unsecured credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including, among other things, limitations and prohibitions relating to additional indebtedness, liens, mergers, and asset sales. Also, these unsecured credit agreements contain financial covenants governing the Company and its subsidiaries’ consolidated total capitalization ratio and interest coverage ratio. The outstanding borrowings on the Company lines of credit were $55.1 million as of June 30, 2018 and December 31, 2017. There were $270.0 million and $220.0 million borrowings on the Cal Water lines of credit as of June 30, 2018 and December 31, 2017, respectively. The average borrowing rate for borrowings on the Company and Cal Water lines of credit during the six months ended June 30, 2018 was 2.72% compared to 1.82% for the same period last year.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate. The Company also records the tax effect of unusual or infrequently occurring discrete items. The provision for income taxes is shown in the tables below: Three Months Ended June 30 2018 2017 Income tax expense $ 3,527 $ 10,852 Six Months Ended June 30 2018 2017 Income tax expense $ 2,540 $ 10,857 The income tax expense decreased $7.3 million to $3.5 million for the three months ended June 30, 2018 as compared to the three months ended June 30, 2017 mostly due to the federal income tax rate reduction from 35% to 21%, effective January 1, 2018, and a decrease in operating income. The income tax expense decreased $8.3 million to $2.5 million in the first six months of 2018, as compared to $10.9 million in the first six months of 2017. The decrease was mainly due to the federal income tax rate reduction from 35% to 21%, effective January 1, 2018, and a decrease in operating income. The Company's 2018 effective tax rate, before discrete items, is estimated to be in the range from 23% to 25% . For 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 continuing to work with state regulators to finalize the customer net refund of $108.0 million to ensure compliance with federal normalization rules. The final transition impacts of the Tax Cuts and Jobs Act (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 balances relating to TCJA impact continue to be provisional as of June 30, 2018. The Company had unrecognized tax benefits of approximately $11.5 million and $10.2 million as of June 30, 2018 and 2017, respectively. Included in the balance of unrecognized tax benefits as of June 30, 2018 and 2017 are approximately $2.2 million and $2.3 million , respectively, of tax benefits that, if recognized, would result in an adjustment to the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly within the next 12 months.

Regulatory Assets and Liabiliti

Regulatory Assets and Liabilities	6 Months Ended
	Jun. 30, 2018
Regulated Operations [Abstract]
Regulatory Assets and Liabilities	Regulatory Assets and Liabilities Regulatory assets and liabilities were comprised of the following as of June 30, 2018 and December 31, 2017 : June 30, 2018 December 31, 2017 Regulatory Assets Pension and retiree group health $ 213,920 $ 214,249 Property-related temporary differences (tax benefits flowed through to customers) 87,988 87,323 Other accrued benefits 28,741 28,251 Net WRAM and MCBA long-term accounts receivable 32,892 34,879 Asset retirement obligations, net 17,824 17,126 Interim rates long-term accounts receivable 4,568 4,568 Tank coating 11,467 10,998 Health care balancing account 442 496 Pension balancing account 5,136 2,322 Other components of net periodic benefit cost 1,754 — Other regulatory assets 565 935 Total Regulatory Assets $ 405,297 $ 401,147 Regulatory Liabilities Future tax benefits due to customers $ 168,384 $ 168,343 Health care balancing account 11,127 7,749 Conservation program 4,531 2,273 Pension balancing account 13 364 Net WRAM and MCBA long-term payable 938 513 Tax accounting memorandum account 4,767 — Cost of capital memorandum account 2,834 — Other regulatory liabilities 161 464 Total Regulatory Liabilities $ 192,755 $ 179,706 Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets were $33.3 million as of June 30, 2018 and $36.8 million as of December 31, 2017 . As of June 30, 2018 and December 31, 2017 , the short-term regulatory assets primarily consist of net WRAM and MCBA receivables. The short-term portions of regulatory liabilities were $56.3 million as of June 30, 2018 and $59.3 million as of December 31, 2017 . The short-term regulatory liabilities as of June 30, 2018 , primarily consist of 1,2,3 trichloropropane (TCP) settlement proceeds. As of December 31, 2017 , the short-term regulatory liabilities primarily consist of TCP settlement proceeds and net WRAM and MCBA liability balances. The tax accounting and cost of capital memorandum account regulatory liabilities are related to the estimated customer refunds due to changes in the federal income tax rate and to the cost of capital decision for Cal Water. The other components of net periodic benefit cost regulatory asset are authorized by the Commissions and are probable for rate recovery through the capital program (see Note 2).

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments The Company has significant commitments to lease certain office spaces and water systems and to purchase water from water wholesalers. These commitments are described in Form 10-K for the year ended December 31, 2017. Effective April 3, 2018, the City of Commerce has renewed a lease agreement for Cal Water to operate the City of Commerce’s water system for the next 15 years . Cal Water has run the City of Commerce water system since 1985 and is responsible for all operations, maintenance, water quality assurance, and customer service programs to provide a reliable supply of water that meets federal and state standards to customers served by the City of Commerce system. The City of Commerce will remain responsible for financing infrastructure improvements and setting its customers’ water rates. As of June 30, 2018, there were no other significant changes from December 31, 2017. Contingencies Groundwater Contamination The Company has undertaken litigation against third parties to recover past and anticipated costs related to groundwater contamination in our service areas. The cost of litigation is expensed as incurred and any settlement is first offset against such costs. The CPUC’s general policy requires all proceeds from groundwater contamination litigation to be used first to pay transactional expenses, then to make 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. Other Legal Matters From time to time, the Company is involved in various disputes and litigation matters that arise in the ordinary course of business. The status of each significant matter is reviewed and assessed for potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount of the range of loss can be estimated, a liability is accrued for the estimated loss in accordance with the accounting standards for contingencies. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the time. While the outcome of these disputes and litigation matters cannot be predicted with any certainty, management does not believe when taking into account existing reserves the ultimate resolution of these matters will materially affect the Company’s financial position, results of operations, or cash flows. As of June 30, 2018 and December 31, 2017, the Company recognized a liability of $3.2 million and $6.1 million , respectively, for known legal matters. The decrease is mainly due to several large claims being resolved in the first six months of 2018. The cost of litigation is expensed as incurred and any settlement is first offset against such costs. Any settlement in excess of the cost to litigate is accounted for on a case by case basis, dependent on the nature of the settlement.

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Assets and Liabilities	Fair Value of Financial Assets and Liabilities The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access. Level 2 - Inputs to the valuation methodology include: • Quoted market prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Specific valuation methods include the following: Accounts receivable and accounts payable carrying amounts approximated the fair value because of the short-term maturity of the instruments. Long-term debt fair values were estimated using the published quoted market price, if available, or the discounted cash flow analysis, based on the current rates available using a risk-free rate (a U.S. Treasury securities yield curve) plus a risk premium of 1.70% . Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. June 30, 2018 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 519,554 — $ 570,197 — $ 570,197 Advances for construction 185,286 — 77,626 — 77,626 Total $ 704,840 $ — $ 647,823 $ — $ 647,823 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

Condensed Consolidating Financi

Condensed Consolidating Financial Statements	6 Months Ended
	Jun. 30, 2018
Condensed Financial Information 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 June 30, 2018 and December 31, 2017, the Condensed Consolidating Statements of Income for the three and six months ended June 30, 2018 and 2017, and the Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2018 and 2017 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 six months ended June 30, 2018 and 2017 reflect the retrospective adoption of ASU 2016-18 (refer to Note 2 for more details). The Condensed Consolidating Statements of Income for the three and six months ended June 30, 2017 reflect the retrospective adoption of ASU 2017-07 (refer to Note 2 for more details). CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of June 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,321 $ 2,890,709 $ 209,783 $ (7,197 ) $ 3,094,616 Less accumulated depreciation and amortization (966 ) (908,107 ) (57,333 ) 2,054 (964,352 ) Net utility plant 355 1,982,602 152,450 (5,143 ) 2,130,264 Current assets: Cash and cash equivalents 2,048 24,494 7,126 — 33,668 Receivables and unbilled revenue 1 129,007 5,000 — 134,008 Receivables from affiliates 23,616 771 207 (24,594 ) — Other current assets 293 19,812 1,789 — 21,894 Total current assets 25,958 174,084 14,122 (24,594 ) 189,570 Other assets: Regulatory assets — 401,325 3,972 — 405,297 Investments in affiliates 690,883 — — (690,883 ) — Long-term affiliate notes receivable 25,601 — — (25,601 ) — Other assets 59 60,707 3,821 (204 ) 64,383 Total other assets 716,543 462,032 7,793 (716,688 ) 469,680 TOTAL ASSETS $ 742,856 $ 2,618,718 $ 174,365 $ (746,425 ) $ 2,789,514 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 685,932 $ 618,145 $ 77,963 $ (696,108 ) $ 685,932 Affiliate long-term debt — — 25,601 (25,601 ) — Long-term debt, less current maturities — 413,800 730 — 414,530 Total capitalization 685,932 1,031,945 104,294 (721,709 ) 1,100,462 Current liabilities: Current maturities of long-term debt — 104,720 304 — 105,024 Short-term borrowings 55,100 270,000 — — 325,100 Payables to affiliates — 709 23,885 (24,594 ) — Accounts payable — 89,872 3,160 — 93,032 Accrued expenses and other liabilities 69 95,475 3,600 — 99,144 Total current liabilities 55,169 560,776 30,949 (24,594 ) 622,300 Unamortized investment tax credits — 1,724 — — 1,724 Deferred income taxes 1,755 191,704 2,772 (122 ) 196,109 Pension and postretirement benefits other than pensions — 256,431 — — 256,431 Regulatory liabilities and other — 235,289 3,623 — 238,912 Advances for construction — 184,787 499 — 185,286 Contributions in aid of construction — 156,062 32,228 — 188,290 TOTAL CAPITALIZATION AND LIABILITIES $ 742,856 $ 2,618,718 $ 174,365 $ (746,425 ) $ 2,789,514 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated 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 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 STATEMENT OF INCOME For the three months ended June 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 162,296 $ 10,336 $ — $ 172,632 Operating expenses: Operations: Water production costs — 63,209 2,164 — 65,373 Administrative and general — 22,047 2,336 — 24,383 Other operations — 19,138 1,732 (146 ) 20,724 Maintenance — 5,192 197 — 5,389 Depreciation and amortization 24 19,664 1,286 (21 ) 20,953 Income tax (benefit) expense (122 ) 3,940 328 201 4,347 Property and other taxes — 5,682 725 — 6,407 Total operating (income) expenses (98 ) 138,872 8,768 34 147,576 Net operating income 98 23,424 1,568 (34 ) 25,056 Other income and expenses: Non-regulated revenue 557 4,739 252 (703 ) 4,845 Non-regulated expenses — (5,975 ) (140 ) — (6,115 ) Other components of net periodic benefit cost — (2,337 ) (126 ) — (2,463 ) Allowance for equity funds used during construction — 710 — — 710 Income tax (expense) benefit on other income and expenses (156 ) 783 (5 ) 197 819 Net other income (loss) 401 (2,080 ) (19 ) (506 ) (2,204 ) Interest: Interest expense 411 9,718 562 (557 ) 10,134 Allowance for borrowed funds used during construction — (270 ) (34 ) — (304 ) Net interest expense 411 9,448 528 (557 ) 9,830 Equity earnings of subsidiaries 12,934 — — (12,934 ) — Net income $ 13,022 $ 11,896 $ 1,021 $ (12,917 ) $ 13,022 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended June 30, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 161,174 $ 9,958 $ — $ 171,132 Operating expenses: Operations: Water production costs — 62,089 2,042 — 64,131 Administrative and general — 18,907 2,506 — 21,413 Other operations — 16,729 1,725 (126 ) 18,328 Maintenance — 4,509 199 — 4,708 Depreciation and amortization 26 18,102 1,113 (23 ) 19,218 Income tax (benefit) expense (123 ) 10,012 454 263 10,606 Property and other taxes — 5,315 742 — 6,057 Total operating (income) expenses (97 ) 135,663 8,781 114 144,461 Net operating income 97 25,511 1,177 (114 ) 26,671 Other income and expenses: Non-regulated revenue 496 3,469 396 (622 ) 3,739 Non-regulated expenses — (1,428 ) (186 ) — (1,614 ) Other components of net periodic benefit cost — (2,240 ) (143 ) — (2,383 ) Allowance for equity funds used during construction — 879 — — 879 Income tax expense on other income and expenses (202 ) (278 ) (19 ) 253 (246 ) Net other income 294 402 48 (369 ) 375 Interest: Interest expense 275 8,795 505 (496 ) 9,079 Allowance for borrowed funds used during construction — (542 ) (22 ) — (564 ) Net interest expense 275 8,253 483 (496 ) 8,515 Equity earnings of subsidiaries 18,415 — — (18,415 ) — Net income $ 18,531 $ 17,660 $ 742 $ (18,402 ) $ 18,531 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the six months ended June 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 285,866 $ 19,013 $ — $ 304,879 Operating expenses: Operations: Water production costs — 108,832 4,147 — 112,979 Administrative and general — 45,653 5,049 — 50,702 Other operations — 35,355 3,301 (292 ) 38,364 Maintenance — 10,436 392 — 10,828 Depreciation and amortization 47 39,277 2,387 (43 ) 41,668 Income tax (benefit) expense (200 ) 3,600 320 398 4,118 Property and other taxes — 11,689 1,422 — 13,111 Total operating (income) expenses (153 ) 254,842 17,018 63 271,770 Net operating income 153 31,024 1,995 (63 ) 33,109 Other income and expenses: Non-regulated revenue 1,088 8,983 572 (1,379 ) 9,264 Non-regulated expenses — (11,268 ) (284 ) — (11,552 ) Other components of net periodic benefit cost — (4,784 ) (225 ) — (5,009 ) Allowance for equity funds used during construction — 1,621 — — 1,621 Income tax (expense) benefit on other income and expenses (304 ) 1,524 (29 ) 386 1,577 Net other income (loss) 784 (3,924 ) 34 (993 ) (4,099 ) Interest: Interest expense 669 18,652 1,099 (1,088 ) 19,332 Allowance for borrowed funds used during construction — (728 ) (71 ) — (799 ) Net interest expense 669 17,924 1,028 (1,088 ) 18,533 Equity earnings of subsidiaries 10,209 — — (10,209 ) — Net income $ 10,477 $ 9,176 $ 1,001 $ (10,177 ) $ 10,477 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the six months ended June 30, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 274,516 $ 18,652 $ — $ 293,168 Operating expenses: Operations: Water production costs — 102,278 3,921 — 106,199 Administrative and general — 39,028 5,131 — 44,159 Other operations — 31,129 3,575 (252 ) 34,452 Maintenance — 10,415 405 — 10,820 Depreciation and amortization 49 36,213 2,203 (46 ) 38,419 Income tax (benefit) expense (226 ) 9,066 362 520 9,722 Property and other taxes (4 ) 10,727 1,450 — 12,173 Total operating (income) expenses (181 ) 238,856 17,047 222 255,944 Net operating income 181 35,660 1,605 (222 ) 37,224 Other income and expenses: Non-regulated revenue 977 6,604 850 (1,230 ) 7,201 Non-regulated expenses — (3,175 ) (493 ) — (3,668 ) Other components of net periodic benefit cost — (4,595 ) (291 ) — (4,886 ) Allowance for equity funds used during construction — 1,658 — — 1,658 Income tax expense on other income and expenses (398 ) (1,161 ) (77 ) 501 (1,135 ) Net other income (loss) 579 (669 ) (11 ) (729 ) (830 ) Interest: Interest expense 510 17,265 991 (977 ) 17,789 Allowance for borrowed funds used during construction — (1,018 ) (40 ) — (1,058 ) Net interest expense 510 16,247 951 (977 ) 16,731 Equity earnings of subsidiaries 19,413 — — (19,413 ) — Net income $ 19,663 $ 18,744 $ 643 $ (19,387 ) $ 19,663 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the six months ended June 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 10,477 $ 9,176 $ 1,001 $ (10,177 ) $ 10,477 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (10,209 ) — — 10,209 — Dividends received from affiliates 18,017 — — (18,017 ) — Depreciation and amortization 47 40,146 2,432 (43 ) 42,582 Changes in value of life insurance contracts — 817 — — 817 Allowance for equity funds used during construction — (1,621 ) — — (1,621 ) Changes in operating assets and liabilities (417 ) (16,439 ) 467 — (16,389 ) Other changes in noncurrent assets and liabilities 1,610 11,653 431 11 13,705 Net cash provided by operating activities 19,525 43,732 4,331 (18,017 ) 49,571 Investing activities: Utility plant expenditures — (128,683 ) (5,217 ) — (133,900 ) Changes in affiliate advances 58 3,323 (194 ) (3,187 ) — Issuance of affiliate short-term borrowings (3,700 ) — — 3,700 — Reduction of affiliates long-term debt 818 — — (818 ) — Life insurance proceeds — 2,054 — — 2,054 Purchase of life insurance contracts — (2,054 ) — — (2,054 ) Net cash used in investing activities (2,824 ) (125,360 ) (5,411 ) (305 ) (133,900 ) Financing Activities: Short-term borrowings — 111,000 — — 111,000 Repayment of short-term borrowings — (61,000 ) — — (61,000 ) Changes in affiliate advances — 129 (3,316 ) 3,187 — Proceeds from affiliate short-term borrowings — — 3,700 (3,700 ) — Repayment of affiliates long-term borrowings — — (818 ) 818 — Repayment of long-term debt — (12,136 ) (128 ) — (12,264 ) Advances and contributions in aid of construction — 8,029 356 — 8,385 Refunds of advances for construction — (3,489 ) (9 ) — (3,498 ) Repurchase of common stock (1,364 ) — — — (1,364 ) Dividends paid to non-affiliates (18,017 ) — — — (18,017 ) Dividends paid to affiliates — (17,330 ) (687 ) 18,017 — Net cash (used in) provided by financing activities (19,381 ) 25,203 (902 ) 18,322 23,242 Change in cash, cash equivalents, and restricted cash (2,680 ) (56,425 ) (1,982 ) — (61,087 ) Cash, cash equivalents, and restricted cash at beginning of period 4,728 81,453 9,171 — 95,352 Cash, cash equivalents, and restricted cash at end of period $ 2,048 $ 25,028 $ 7,189 — $ 34,265 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the six months ended June 30, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 19,663 $ 18,744 $ 643 $ (19,387 ) $ 19,663 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (19,413 ) — — 19,413 — Dividends received from affiliates 17,278 — — (17,278 ) — Depreciation and amortization 47 37,074 2,253 (46 ) 39,328 Changes in value of life insurance contracts — (1,208 ) — — (1,208 ) Allowance for equity funds used during construction — (1,658 ) — — (1,658 ) Changes in operating assets and liabilities (172 ) (40,755 ) 841 — (40,086 ) Other changes in noncurrent assets and liabilities 1,520 17,650 497 20 19,687 Net cash provided by operating activities 18,923 29,847 4,234 (17,278 ) 35,726 Investing activities: Utility plant expenditures — (105,684 ) (3,028 ) — (108,712 ) Changes in affiliate advances 429 2,491 (138 ) (2,782 ) — Issuance of affiliate short-term borrowings (2,610 ) — — 2,610 — Reduction of affiliates long-term debt 668 — — (668 ) — Life insurance proceeds — 450 — — 450 Purchase of life insurance contracts — (1,216 ) — — (1,216 ) Net cash used in investing activities (1,513 ) (103,959 ) (3,166 ) (840 ) (109,478 ) Financing Activities: Short-term borrowings — 140,000 — — 140,000 Repayment of short-term borrowings (2,000 ) (45,000 ) — — (47,000 ) Changes in affiliate advances — (238 ) (2,544 ) 2,782 — Proceeds from affiliate short-term borrowings — — 2,610 (2,610 ) — Repayment of affiliates long-term borrowings — — (668 ) 668 — Repayment of long-term debt — (2,161 ) (246 ) — (2,407 ) Advances and contributions in aid for construction — 10,225 87 — 10,312 Refunds of advances for construction — (4,430 ) — — (4,430 ) Repurchase of common stock (1,236 ) — — — (1,236 ) Dividends paid to non-affiliates (17,278 ) — — — (17,278 ) Dividends paid to affiliates — (16,484 ) (794 ) 17,278 — Net cash (used in) provided by financing activities (20,514 ) 81,912 (1,555 ) 18,118 77,961 Change in cash, cash equivalents, and restricted cash (3,104 ) 7,800 (487 ) — 4,209 Cash, cash equivalents, and restricted cash at beginning of period 5,216 13,595 7,124 — 25,935 Cash, cash equivalents, and restricted cash at end of period $ 2,112 $ 21,395 $ 6,637 — $ 30,144

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Revenue	Operating revenue The following tables disaggregate the Company’s operating revenue by source for the three and six month periods ended June 30, 2018 and 2017: Three Months Ended June 30 2018 2017 Revenue from contracts with customers $ 171,772 $ 162,593 Regulatory balancing account revenue 860 8,539 Total operating revenue $ 172,632 $ 171,132 Six Months Ended June 30 2018 2017 Revenue from contracts with customers $ 306,026 $ 275,405 Regulatory balancing account revenue (1,147 ) 17,763 Total operating revenue $ 304,879 $ 293,168 Revenue from contracts with customers The Company principally generates operating revenue from contracts with customers by providing regulated water and wastewater services at tariff-rates authorized by the Commissions in the states in which they operate and non-regulated water and wastewater services at rates authorized by contracts with government agencies. Revenue from contracts with customers reflects amounts billed for the volume of consumption at authorized per unit rates, for a service charge, and for other authorized charges. The Company satisfies its performance obligation to provide water and wastewater services over time as services are rendered. The Company applies the invoice practical expedient and recognizes revenue from contracts with customers in the amount for which the Company has a right to invoice. The Company has a right to invoice for the volume of consumption, for the service charge, and for other authorized charges. The measurement of sales to customers is generally based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, the Company estimates consumption since the date of the last meter reading and a corresponding unbilled revenue is recognized. The estimate is based upon the number of unbilled days that month and the average daily customer billing rate from the previous month (which fluctuates based upon customer usage). Contract terms are generally short-term and at will by customers and, as a result, no separate financing component is recognized for the Company's collections from customers, which generally require payment within 30 days of billing. The Company applies judgment, based principally on historical payment experience, in estimating its customers’ ability to pay. Certain customers are not billed for volumetric consumption, but are instead billed a flat rate at the beginning of each monthly service period. The amount billed is initially deferred and subsequently recognized over the monthly service period, as the performance obligation is satisfied. The deferred revenue balance, which is included in "accrued expenses and other liabilities" on the consolidated balance sheets, is inconsequential. In the following tables, revenue from contracts with customers is disaggregated by class of customers for the three and six month periods ended June 30, 2018 and 2017: Three Months Ended June 30 2018 2017 Residential $ 109,849 $ 102,171 Business 32,125 29,543 Industrial 7,941 6,408 Public authorities 8,251 7,874 Other 13,606 16,597 Total revenue from contracts with customers $ 171,772 $ 162,593 Six Months Ended June 30 2018 2017 Residential $ 201,167 $ 178,036 Business 59,182 51,569 Industrial 15,520 13,363 Public authorities 13,695 12,020 Other 16,462 20,417 Total revenue from contracts with customers $ 306,026 $ 275,405 Regulatory balancing account revenue The Company’s ability to recover revenue requirements authorized by the California Public Utilities Commission (CPUC) in its triennial General Rate Case (GRC), is decoupled from the volume of the sales. Regulatory balancing account revenue is revenue related to rate mechanisms authorized in California by the CPUC, which allow the Company to recover the authorized revenue and are not considered contracts with customers. The Water Revenue Adjustment Mechanism (WRAM) allows the Company to recognize the adopted level of volumetric revenues. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as regulatory balancing account revenue. Cost-recovery rates, such as the Modified Cost Balancing Account (MCBA), provide for recovery of the adopted levels of expenses for purchased water, purchased power, pump taxes, water conservation program costs and certain other operating expenses. Variances between adopted and actual costs are recorded as regulatory balancing account revenue. Each district's WRAM and MCBA regulatory assets and liabilities are allowed to be netted against one another. The Company recognizes regulatory balancing account revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected within 24 months. To the extent that regulatory balancing account revenue is estimated to be collectible beyond 24 months, recognition is deferred. Non-regulated Revenue The following tables disaggregate the Company’s non-regulated revenue by source for the three and six month periods ended June 30, 2018 and 2017: Three Months Ended June 30 2018 2017 Operating and maintenance revenue $ 2,297 $ 2,053 Other non-regulated revenue 1,981 1,178 Non-regulated revenue from contracts with customers $ 4,278 $ 3,231 Lease revenue $ 567 $ 508 Total non-regulated revenue $ 4,845 $ 3,739 Six Months Ended June 30 2018 2017 Operating and maintenance revenue $ 5,462 $ 3,966 Other non-regulated revenue 2,724 2,220 Non-regulated revenue from contracts with customers $ 8,186 $ 6,186 Lease revenue $ 1,078 $ 1,015 Total non-regulated revenue $ 9,264 $ 7,201 Operating and maintenance services are provided for non-regulated water and wastewater systems owned by private companies and municipalities. The Company negotiates formal agreements with the customers, under which they provide operating, maintenance and customer billing services related to the customers’ water system. The formal agreements outline the fee schedule for the services provided. The agreements typically call for a fee-per-service or a flat-rate amount per month. The Company satisfies its performance obligation of providing operating and maintenance services over time as services are rendered; as a result, the Company employs the invoice practical expedient and recognizes revenue in the amount that it has the right to invoice. Contract terms are generally short-term and, as a result, no separate financing component is recognized for its collections from customers, which generally require payment within 30 days of billing. Other non-regulated revenue primarily relates to services for the design and installation of water mains and other water infrastructure for customers outside the regulated service areas and insurance program administration. Other non-regulated revenue is inconsequential. The Company is the lessor in operating lease agreements with telecommunications companies under which cellular phone antennas are placed on the Company's property. Lease revenue is not considered revenue from contracts with customers and is recognized following current operating lease standards.
Adoption of New Accounting Standards and New Accounting Standards Issued But Not Yet Adopted	Adoption of New Accounting Standards In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (codified in ASC 606), which amends the existing revenue recognition guidance. The Company completed an evaluation of the new revenue standard and implemented the standard on January 1, 2018 using the modified retrospective method for all contracts. The reported results for the first three and six months of 2018 reflect the application of ASC 606 guidance, while prior period amounts were not adjusted and continue to be reported in accordance with the accounting standards in effect for those periods. Other than increased disclosures regarding revenues related to contracts with customers, the implementation did not have a significant impact on the Company’s consolidated financial statements (see "Operating Revenue" section of note 2 above). In August of 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. The Company will continue to classify proceeds from the settlement of insurance claims on the basis of the nature of the loss and from the settlement of Company-owned life insurance policies as cash inflows on the Condensed Consolidated Statements of Cash Flows. The Company implemented the standard on January 1, 2018 and retrospectively applied the standard in the comparative period. The standard does not have a significant impact to the Company's consolidated financial statements. In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash . The update requires the Company to combine restricted cash with cash and cash equivalents when reconciling the beginning and end of period balances in the Condensed Consolidated Statements of Cash Flows. The Company implemented the standard on January 1, 2018 and retrospectively applied the standard in the comparative period. The following table shows the effect of the accounting change to the Condensed Consolidated Statements of Cash Flows: Six Months Ended June 30, 2017 Condensed Consolidated Statements of Cash Flows line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Change in restricted cash $ (598 ) $ — $ 598 Net cash used in investing activities $ (110,076 ) $ (109,478 ) $ 598 Change in cash, cash equivalents, and restricted cash $ 3,611 $ 4,209 $ 598 Cash, cash equivalents, and restricted cash at beginning of period $ 25,492 $ 25,935 $ 443 Cash, cash equivalents, and restricted cash at end of period $ 29,103 $ 30,144 $ 1,041 In March of 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. In addition, the standard only allows the service cost component to be eligible for capitalization. The standard became effective as of January 1, 2018. The presentation amendments were applied retrospectively and the capitalization amendments were applied prospectively on and after the effective date. The Company applied the practical expedient that permits the Company to use the amounts disclosed in its pension and other postretirement benefit plan footnote from the prior comparative periods as the estimation basis for applying the retrospective presentation requirements . The Commissions have authorized the Company to recover the other components of net periodic benefit cost through the Company’s capital program and thus on and after the effective date, the other components of net periodic benefit cost that have previously been recorded as part of utility plant have been recognized as a regulatory asset (see note 9). As a result, the changes required by the standard did not have a material impact on the results of operations. The following tables show the effect of the accounting change to the Condensed Consolidated Statements of Income for the three and six month periods ended June 30, 2017: Three Months Ended June 30, 2017 Condensed Consolidated Statement of Income line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Administrative and general $ 23,796 $ 21,413 $ (2,383 ) Income taxes $ 9,635 $ 10,606 $ 971 Total operating expenses $ 145,873 $ 144,461 $ (1,412 ) Net operating income $ 25,259 $ 26,671 $ 1,412 Other components of net periodic benefit cost $ — $ (2,383 ) $ 2,383 Income tax expense on other income and expense $ (1,217 ) $ (246 ) $ 971 Net other income $ 1,787 $ 375 $ (1,412 ) Six Months Ended June 30, 2017 Condensed Consolidated Statement of Income line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Administrative and general $ 49,045 $ 44,159 $ (4,886 ) Income taxes $ 8,751 $ 9,722 $ 971 Total operating expenses $ 259,859 $ 255,944 $ (3,915 ) Net operating income $ 33,309 $ 37,224 $ 3,915 Other components of net periodic benefit cost $ — $ (4,886 ) $ 4,886 Income tax expense on other income and expense $ (2,106 ) $ (1,135 ) $ 971 Net other income $ 3,085 $ (830 ) $ (3,915 ) New Accounting Standards Issued But Not Yet Adopted In February of 2016, the FASB issued ASU 2016-02, Leases, which amends the guidance relating to the definition of a lease, recognition of lease assets and liabilities on the balance sheet, and the 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 Condensed Consolidated Balance Sheets. The Company intends to elect certain practical expedients and will carry forward historical conclusions related to (1) contracts that contain leases, (2) existing lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. The Company will also apply the practical expedient that will allow the Company to elect, as an accounting policy, by asset class, to include both lease and nonlease components as a single component and account for it as a lease. The Company will apply the short-term lease exception for lessees which will allow the Company to not have to apply the recognition requirements of the new leasing guidance for short-term leases and to recognize lease payments in net income on a straight line basis over the lease term. The Company does not expect that the guidance will have a material impact on the Condensed Consolidated Statements of Income, Condensed Consolidated Statements of Cash Flows, and lease disclosures.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Disaggregation of Revenue	In the following tables, revenue from contracts with customers is disaggregated by class of customers for the three and six month periods ended June 30, 2018 and 2017: Three Months Ended June 30 2018 2017 Residential $ 109,849 $ 102,171 Business 32,125 29,543 Industrial 7,941 6,408 Public authorities 8,251 7,874 Other 13,606 16,597 Total revenue from contracts with customers $ 171,772 $ 162,593 Six Months Ended June 30 2018 2017 Residential $ 201,167 $ 178,036 Business 59,182 51,569 Industrial 15,520 13,363 Public authorities 13,695 12,020 Other 16,462 20,417 Total revenue from contracts with customers $ 306,026 $ 275,405 The following tables disaggregate the Company’s non-regulated revenue by source for the three and six month periods ended June 30, 2018 and 2017: Three Months Ended June 30 2018 2017 Operating and maintenance revenue $ 2,297 $ 2,053 Other non-regulated revenue 1,981 1,178 Non-regulated revenue from contracts with customers $ 4,278 $ 3,231 Lease revenue $ 567 $ 508 Total non-regulated revenue $ 4,845 $ 3,739 Six Months Ended June 30 2018 2017 Operating and maintenance revenue $ 5,462 $ 3,966 Other non-regulated revenue 2,724 2,220 Non-regulated revenue from contracts with customers $ 8,186 $ 6,186 Lease revenue $ 1,078 $ 1,015 Total non-regulated revenue $ 9,264 $ 7,201 The following tables disaggregate the Company’s operating revenue by source for the three and six month periods ended June 30, 2018 and 2017: Three Months Ended June 30 2018 2017 Revenue from contracts with customers $ 171,772 $ 162,593 Regulatory balancing account revenue 860 8,539 Total operating revenue $ 172,632 $ 171,132 Six Months Ended June 30 2018 2017 Revenue from contracts with customers $ 306,026 $ 275,405 Regulatory balancing account revenue (1,147 ) 17,763 Total operating revenue $ 304,879 $ 293,168
Schedule of Cash, Cash Equivalents, and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown on the Condensed Consolidated Statements of Cash Flows: June 30, 2018 December 31, 2017 Cash and cash equivalents 33,668 94,776 Restricted cash (included in "taxes, prepaid expenses and other assets") 597 576 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 34,265 $ 95,352
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The following tables show the effect of the accounting change to the Condensed Consolidated Statements of Income for the three and six month periods ended June 30, 2017: Three Months Ended June 30, 2017 Condensed Consolidated Statement of Income line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Administrative and general $ 23,796 $ 21,413 $ (2,383 ) Income taxes $ 9,635 $ 10,606 $ 971 Total operating expenses $ 145,873 $ 144,461 $ (1,412 ) Net operating income $ 25,259 $ 26,671 $ 1,412 Other components of net periodic benefit cost $ — $ (2,383 ) $ 2,383 Income tax expense on other income and expense $ (1,217 ) $ (246 ) $ 971 Net other income $ 1,787 $ 375 $ (1,412 ) Six Months Ended June 30, 2017 Condensed Consolidated Statement of Income line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Administrative and general $ 49,045 $ 44,159 $ (4,886 ) Income taxes $ 8,751 $ 9,722 $ 971 Total operating expenses $ 259,859 $ 255,944 $ (3,915 ) Net operating income $ 33,309 $ 37,224 $ 3,915 Other components of net periodic benefit cost $ — $ (4,886 ) $ 4,886 Income tax expense on other income and expense $ (2,106 ) $ (1,135 ) $ 971 Net other income $ 3,085 $ (830 ) $ (3,915 ) The following table shows the effect of the accounting change to the Condensed Consolidated Statements of Cash Flows: Six Months Ended June 30, 2017 Condensed Consolidated Statements of Cash Flows line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Change in restricted cash $ (598 ) $ — $ 598 Net cash used in investing activities $ (110,076 ) $ (109,478 ) $ 598 Change in cash, cash equivalents, and restricted cash $ 3,611 $ 4,209 $ 598 Cash, cash equivalents, and restricted cash at beginning of period $ 25,492 $ 25,935 $ 443 Cash, cash equivalents, and restricted cash at end of period $ 29,103 $ 30,144 $ 1,041

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Schedule of changes in total common stockholders' equity	The Company’s changes in total common stockholders’ equity for the six months ended June 30, 2018 were as follows: Total Common Stockholders’ Equity Balance at December 31, 2017 $ 693,462 Common stock issued 1 Share-based compensation expense 1,373 Repurchase of common stock (1,364 ) Common stock dividends declared (18,017 ) Net income 10,477 Balance at June 30, 2018 $ 685,932

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of SARs which were dilutive	Three Months Ended June 30 2018 2017 (In thousands, except per share data) Net income available to common stockholders $ 13,022 $ 18,531 Weighted average common shares outstanding, basic 48,073 48,020 Weighted average common shares outstanding, dilutive 48,073 48,020 Earnings per share - basic $ 0.27 $ 0.39 Earnings per share - diluted $ 0.27 $ 0.39 Six Months Ended June 30 2018 2017 (In thousands, except per share data) Net income available to common stockholders $ 10,477 $ 19,663 Weighted average common shares outstanding, basic 48,051 48,002 Weighted average common shares outstanding, dilutive 48,051 48,002 Earnings per share - basic $ 0.22 $ 0.41 Earnings per share - diluted $ 0.22 $ 0.41

Pension Plan and Other Postre22

Pension Plan and Other Postretirement Benefits (Tables)	6 Months Ended
	Jun. 30, 2018
Retirement Benefits [Abstract]
Schedule of components of net periodic benefit costs for the pension plans and other postretirement benefits	The following table lists components of net periodic benefit costs for the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits. Three Months Ended June 30 Pension Plan Other Benefits 2018 2017 2018 2017 Service cost $ 7,402 $ 5,865 $ 2,550 $ 2,019 Interest cost 5,995 5,791 1,484 1,491 Expected return on plan assets (6,862 ) (6,029 ) (1,416 ) (1,218 ) Amortization of prior service cost 1,263 1,445 11 11 Recognized net actuarial loss 2,797 1,752 773 649 Net periodic benefit cost $ 10,595 $ 8,824 $ 3,402 $ 2,952 Six Months Ended June 30 Pension Plan Other Benefits 2018 2017 2018 2017 Service cost $ 14,804 $ 11,730 $ 5,100 $ 4,038 Interest cost 11,989 11,581 2,969 2,982 Expected return on plan assets (13,725 ) (12,058 ) (2,832 ) (2,436 ) Amortization of prior service cost 2,526 2,890 21 22 Recognized net actuarial loss 5,595 3,504 1,547 1,298 Net periodic benefit cost $ 21,189 $ 17,647 $ 6,805 $ 5,904

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The provision for income taxes is shown in the tables below: Three Months Ended June 30 2018 2017 Income tax expense $ 3,527 $ 10,852 Six Months Ended June 30 2018 2017 Income tax expense $ 2,540 $ 10,857

Regulatory Assets and Liabili24

Regulatory Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Regulated Operations [Abstract]
Schedule of regulatory assets and liabilities	Regulatory assets and liabilities were comprised of the following as of June 30, 2018 and December 31, 2017 : June 30, 2018 December 31, 2017 Regulatory Assets Pension and retiree group health $ 213,920 $ 214,249 Property-related temporary differences (tax benefits flowed through to customers) 87,988 87,323 Other accrued benefits 28,741 28,251 Net WRAM and MCBA long-term accounts receivable 32,892 34,879 Asset retirement obligations, net 17,824 17,126 Interim rates long-term accounts receivable 4,568 4,568 Tank coating 11,467 10,998 Health care balancing account 442 496 Pension balancing account 5,136 2,322 Other components of net periodic benefit cost 1,754 — Other regulatory assets 565 935 Total Regulatory Assets $ 405,297 $ 401,147 Regulatory Liabilities Future tax benefits due to customers $ 168,384 $ 168,343 Health care balancing account 11,127 7,749 Conservation program 4,531 2,273 Pension balancing account 13 364 Net WRAM and MCBA long-term payable 938 513 Tax accounting memorandum account 4,767 — Cost of capital memorandum account 2,834 — Other regulatory liabilities 161 464 Total Regulatory Liabilities $ 192,755 $ 179,706

Fair Value of Financial Asset25

Fair Value of Financial Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
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. June 30, 2018 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 519,554 — $ 570,197 — $ 570,197 Advances for construction 185,286 — 77,626 — 77,626 Total $ 704,840 $ — $ 647,823 $ — $ 647,823 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

Condensed Consolidating Finan26

Condensed Consolidating Financial Statements (Tables)	6 Months Ended
	Jun. 30, 2018
Condensed Financial Information Disclosure [Abstract]
Schedule of Condensed Consolidating Balance Sheet	CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of June 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,321 $ 2,890,709 $ 209,783 $ (7,197 ) $ 3,094,616 Less accumulated depreciation and amortization (966 ) (908,107 ) (57,333 ) 2,054 (964,352 ) Net utility plant 355 1,982,602 152,450 (5,143 ) 2,130,264 Current assets: Cash and cash equivalents 2,048 24,494 7,126 — 33,668 Receivables and unbilled revenue 1 129,007 5,000 — 134,008 Receivables from affiliates 23,616 771 207 (24,594 ) — Other current assets 293 19,812 1,789 — 21,894 Total current assets 25,958 174,084 14,122 (24,594 ) 189,570 Other assets: Regulatory assets — 401,325 3,972 — 405,297 Investments in affiliates 690,883 — — (690,883 ) — Long-term affiliate notes receivable 25,601 — — (25,601 ) — Other assets 59 60,707 3,821 (204 ) 64,383 Total other assets 716,543 462,032 7,793 (716,688 ) 469,680 TOTAL ASSETS $ 742,856 $ 2,618,718 $ 174,365 $ (746,425 ) $ 2,789,514 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 685,932 $ 618,145 $ 77,963 $ (696,108 ) $ 685,932 Affiliate long-term debt — — 25,601 (25,601 ) — Long-term debt, less current maturities — 413,800 730 — 414,530 Total capitalization 685,932 1,031,945 104,294 (721,709 ) 1,100,462 Current liabilities: Current maturities of long-term debt — 104,720 304 — 105,024 Short-term borrowings 55,100 270,000 — — 325,100 Payables to affiliates — 709 23,885 (24,594 ) — Accounts payable — 89,872 3,160 — 93,032 Accrued expenses and other liabilities 69 95,475 3,600 — 99,144 Total current liabilities 55,169 560,776 30,949 (24,594 ) 622,300 Unamortized investment tax credits — 1,724 — — 1,724 Deferred income taxes 1,755 191,704 2,772 (122 ) 196,109 Pension and postretirement benefits other than pensions — 256,431 — — 256,431 Regulatory liabilities and other — 235,289 3,623 — 238,912 Advances for construction — 184,787 499 — 185,286 Contributions in aid of construction — 156,062 32,228 — 188,290 TOTAL CAPITALIZATION AND LIABILITIES $ 742,856 $ 2,618,718 $ 174,365 $ (746,425 ) $ 2,789,514 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated 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 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
Schedule of Condensed Consolidating Statement of Income	CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended June 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 162,296 $ 10,336 $ — $ 172,632 Operating expenses: Operations: Water production costs — 63,209 2,164 — 65,373 Administrative and general — 22,047 2,336 — 24,383 Other operations — 19,138 1,732 (146 ) 20,724 Maintenance — 5,192 197 — 5,389 Depreciation and amortization 24 19,664 1,286 (21 ) 20,953 Income tax (benefit) expense (122 ) 3,940 328 201 4,347 Property and other taxes — 5,682 725 — 6,407 Total operating (income) expenses (98 ) 138,872 8,768 34 147,576 Net operating income 98 23,424 1,568 (34 ) 25,056 Other income and expenses: Non-regulated revenue 557 4,739 252 (703 ) 4,845 Non-regulated expenses — (5,975 ) (140 ) — (6,115 ) Other components of net periodic benefit cost — (2,337 ) (126 ) — (2,463 ) Allowance for equity funds used during construction — 710 — — 710 Income tax (expense) benefit on other income and expenses (156 ) 783 (5 ) 197 819 Net other income (loss) 401 (2,080 ) (19 ) (506 ) (2,204 ) Interest: Interest expense 411 9,718 562 (557 ) 10,134 Allowance for borrowed funds used during construction — (270 ) (34 ) — (304 ) Net interest expense 411 9,448 528 (557 ) 9,830 Equity earnings of subsidiaries 12,934 — — (12,934 ) — Net income $ 13,022 $ 11,896 $ 1,021 $ (12,917 ) $ 13,022 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended June 30, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 161,174 $ 9,958 $ — $ 171,132 Operating expenses: Operations: Water production costs — 62,089 2,042 — 64,131 Administrative and general — 18,907 2,506 — 21,413 Other operations — 16,729 1,725 (126 ) 18,328 Maintenance — 4,509 199 — 4,708 Depreciation and amortization 26 18,102 1,113 (23 ) 19,218 Income tax (benefit) expense (123 ) 10,012 454 263 10,606 Property and other taxes — 5,315 742 — 6,057 Total operating (income) expenses (97 ) 135,663 8,781 114 144,461 Net operating income 97 25,511 1,177 (114 ) 26,671 Other income and expenses: Non-regulated revenue 496 3,469 396 (622 ) 3,739 Non-regulated expenses — (1,428 ) (186 ) — (1,614 ) Other components of net periodic benefit cost — (2,240 ) (143 ) — (2,383 ) Allowance for equity funds used during construction — 879 — — 879 Income tax expense on other income and expenses (202 ) (278 ) (19 ) 253 (246 ) Net other income 294 402 48 (369 ) 375 Interest: Interest expense 275 8,795 505 (496 ) 9,079 Allowance for borrowed funds used during construction — (542 ) (22 ) — (564 ) Net interest expense 275 8,253 483 (496 ) 8,515 Equity earnings of subsidiaries 18,415 — — (18,415 ) — Net income $ 18,531 $ 17,660 $ 742 $ (18,402 ) $ 18,531 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the six months ended June 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 285,866 $ 19,013 $ — $ 304,879 Operating expenses: Operations: Water production costs — 108,832 4,147 — 112,979 Administrative and general — 45,653 5,049 — 50,702 Other operations — 35,355 3,301 (292 ) 38,364 Maintenance — 10,436 392 — 10,828 Depreciation and amortization 47 39,277 2,387 (43 ) 41,668 Income tax (benefit) expense (200 ) 3,600 320 398 4,118 Property and other taxes — 11,689 1,422 — 13,111 Total operating (income) expenses (153 ) 254,842 17,018 63 271,770 Net operating income 153 31,024 1,995 (63 ) 33,109 Other income and expenses: Non-regulated revenue 1,088 8,983 572 (1,379 ) 9,264 Non-regulated expenses — (11,268 ) (284 ) — (11,552 ) Other components of net periodic benefit cost — (4,784 ) (225 ) — (5,009 ) Allowance for equity funds used during construction — 1,621 — — 1,621 Income tax (expense) benefit on other income and expenses (304 ) 1,524 (29 ) 386 1,577 Net other income (loss) 784 (3,924 ) 34 (993 ) (4,099 ) Interest: Interest expense 669 18,652 1,099 (1,088 ) 19,332 Allowance for borrowed funds used during construction — (728 ) (71 ) — (799 ) Net interest expense 669 17,924 1,028 (1,088 ) 18,533 Equity earnings of subsidiaries 10,209 — — (10,209 ) — Net income $ 10,477 $ 9,176 $ 1,001 $ (10,177 ) $ 10,477 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the six months ended June 30, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 274,516 $ 18,652 $ — $ 293,168 Operating expenses: Operations: Water production costs — 102,278 3,921 — 106,199 Administrative and general — 39,028 5,131 — 44,159 Other operations — 31,129 3,575 (252 ) 34,452 Maintenance — 10,415 405 — 10,820 Depreciation and amortization 49 36,213 2,203 (46 ) 38,419 Income tax (benefit) expense (226 ) 9,066 362 520 9,722 Property and other taxes (4 ) 10,727 1,450 — 12,173 Total operating (income) expenses (181 ) 238,856 17,047 222 255,944 Net operating income 181 35,660 1,605 (222 ) 37,224 Other income and expenses: Non-regulated revenue 977 6,604 850 (1,230 ) 7,201 Non-regulated expenses — (3,175 ) (493 ) — (3,668 ) Other components of net periodic benefit cost — (4,595 ) (291 ) — (4,886 ) Allowance for equity funds used during construction — 1,658 — — 1,658 Income tax expense on other income and expenses (398 ) (1,161 ) (77 ) 501 (1,135 ) Net other income (loss) 579 (669 ) (11 ) (729 ) (830 ) Interest: Interest expense 510 17,265 991 (977 ) 17,789 Allowance for borrowed funds used during construction — (1,018 ) (40 ) — (1,058 ) Net interest expense 510 16,247 951 (977 ) 16,731 Equity earnings of subsidiaries 19,413 — — (19,413 ) — Net income $ 19,663 $ 18,744 $ 643 $ (19,387 ) $ 19,663
Schedule of Condensed Consolidating Statement of Cash Flows	CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the six months ended June 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 10,477 $ 9,176 $ 1,001 $ (10,177 ) $ 10,477 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (10,209 ) — — 10,209 — Dividends received from affiliates 18,017 — — (18,017 ) — Depreciation and amortization 47 40,146 2,432 (43 ) 42,582 Changes in value of life insurance contracts — 817 — — 817 Allowance for equity funds used during construction — (1,621 ) — — (1,621 ) Changes in operating assets and liabilities (417 ) (16,439 ) 467 — (16,389 ) Other changes in noncurrent assets and liabilities 1,610 11,653 431 11 13,705 Net cash provided by operating activities 19,525 43,732 4,331 (18,017 ) 49,571 Investing activities: Utility plant expenditures — (128,683 ) (5,217 ) — (133,900 ) Changes in affiliate advances 58 3,323 (194 ) (3,187 ) — Issuance of affiliate short-term borrowings (3,700 ) — — 3,700 — Reduction of affiliates long-term debt 818 — — (818 ) — Life insurance proceeds — 2,054 — — 2,054 Purchase of life insurance contracts — (2,054 ) — — (2,054 ) Net cash used in investing activities (2,824 ) (125,360 ) (5,411 ) (305 ) (133,900 ) Financing Activities: Short-term borrowings — 111,000 — — 111,000 Repayment of short-term borrowings — (61,000 ) — — (61,000 ) Changes in affiliate advances — 129 (3,316 ) 3,187 — Proceeds from affiliate short-term borrowings — — 3,700 (3,700 ) — Repayment of affiliates long-term borrowings — — (818 ) 818 — Repayment of long-term debt — (12,136 ) (128 ) — (12,264 ) Advances and contributions in aid of construction — 8,029 356 — 8,385 Refunds of advances for construction — (3,489 ) (9 ) — (3,498 ) Repurchase of common stock (1,364 ) — — — (1,364 ) Dividends paid to non-affiliates (18,017 ) — — — (18,017 ) Dividends paid to affiliates — (17,330 ) (687 ) 18,017 — Net cash (used in) provided by financing activities (19,381 ) 25,203 (902 ) 18,322 23,242 Change in cash, cash equivalents, and restricted cash (2,680 ) (56,425 ) (1,982 ) — (61,087 ) Cash, cash equivalents, and restricted cash at beginning of period 4,728 81,453 9,171 — 95,352 Cash, cash equivalents, and restricted cash at end of period $ 2,048 $ 25,028 $ 7,189 — $ 34,265 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the six months ended June 30, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 19,663 $ 18,744 $ 643 $ (19,387 ) $ 19,663 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (19,413 ) — — 19,413 — Dividends received from affiliates 17,278 — — (17,278 ) — Depreciation and amortization 47 37,074 2,253 (46 ) 39,328 Changes in value of life insurance contracts — (1,208 ) — — (1,208 ) Allowance for equity funds used during construction — (1,658 ) — — (1,658 ) Changes in operating assets and liabilities (172 ) (40,755 ) 841 — (40,086 ) Other changes in noncurrent assets and liabilities 1,520 17,650 497 20 19,687 Net cash provided by operating activities 18,923 29,847 4,234 (17,278 ) 35,726 Investing activities: Utility plant expenditures — (105,684 ) (3,028 ) — (108,712 ) Changes in affiliate advances 429 2,491 (138 ) (2,782 ) — Issuance of affiliate short-term borrowings (2,610 ) — — 2,610 — Reduction of affiliates long-term debt 668 — — (668 ) — Life insurance proceeds — 450 — — 450 Purchase of life insurance contracts — (1,216 ) — — (1,216 ) Net cash used in investing activities (1,513 ) (103,959 ) (3,166 ) (840 ) (109,478 ) Financing Activities: Short-term borrowings — 140,000 — — 140,000 Repayment of short-term borrowings (2,000 ) (45,000 ) — — (47,000 ) Changes in affiliate advances — (238 ) (2,544 ) 2,782 — Proceeds from affiliate short-term borrowings — — 2,610 (2,610 ) — Repayment of affiliates long-term borrowings — — (668 ) 668 — Repayment of long-term debt — (2,161 ) (246 ) — (2,407 ) Advances and contributions in aid for construction — 10,225 87 — 10,312 Refunds of advances for construction — (4,430 ) — — (4,430 ) Repurchase of common stock (1,236 ) — — — (1,236 ) Dividends paid to non-affiliates (17,278 ) — — — (17,278 ) Dividends paid to affiliates — (16,484 ) (794 ) 17,278 — Net cash (used in) provided by financing activities (20,514 ) 81,912 (1,555 ) 18,118 77,961 Change in cash, cash equivalents, and restricted cash (3,104 ) 7,800 (487 ) — 4,209 Cash, cash equivalents, and restricted cash at beginning of period 5,216 13,595 7,124 — 25,935 Cash, cash equivalents, and restricted cash at end of period $ 2,112 $ 21,395 $ 6,637 — $ 30,144

Organization and Operations a27

Organization and Operations and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2018segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Summary of Significant Accounting Policies [Line Items]
Revenue from contracts with customers	$ 171,772	$ 162,593	$ 306,026	$ 275,405
Regulatory balancing account revenue	860	8,539	(1,147)	17,763
Total operating revenue	172,632	171,132	$ 304,879	293,168
Maximum collection period in which deferred net WRAM and MCBA revenues and associated costs will be recognized			24 months
Lease revenue	567	508	$ 1,078	1,015
Total non-regulated revenue	4,845	3,739	9,264	7,201
Cash and cash equivalents					$ 33,668	$ 94,776	$ 30,144	$ 25,935
Restricted cash (included in taxes, prepaid expenses and other assets)					597	576
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows	34,265	30,144	95,352	25,935	$ 34,265	$ 95,352	30,144	25,935
Change in restricted cash				0
Net cash used in investing activities			(133,900)	(109,478)
Change in cash, cash equivalents, and restricted cash			(61,087)	4,209
Cash, cash equivalents, and restricted cash at beginning of period			95,352	25,935
Cash, cash equivalents, and restricted cash at end of period	34,265	30,144	34,265	30,144
Administrative and general	24,383	21,413	50,702	44,159
Income taxes	4,347	10,606	4,118	9,722
Total operating expenses		144,461		255,944
Net operating income	25,056	26,671	33,109	37,224
Other components of net periodic benefit cost	(2,463)	(2,383)	(5,009)	(4,886)
Income tax benefit (expense) on other income and expenses	819	(246)	1,577	(1,135)
Net other income	(2,204)	375	(4,099)	(830)
As Reported on Form 10-Q
Summary of Significant Accounting Policies [Line Items]
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows		29,103		25,492			29,103	25,492
Change in restricted cash				(598)
Net cash used in investing activities				(110,076)
Change in cash, cash equivalents, and restricted cash				3,611
Cash, cash equivalents, and restricted cash at beginning of period				25,492
Cash, cash equivalents, and restricted cash at end of period		29,103		29,103
Administrative and general		23,796		49,045
Income taxes		9,635		8,751
Total operating expenses		145,873		259,859
Net operating income		25,259		33,309
Other components of net periodic benefit cost		0		0
Income tax benefit (expense) on other income and expenses		(1,217)		(2,106)
Net other income		1,787		3,085
Increase (Decrease) from Retrospective Adoption | Accounting Standards Update 2016-18
Summary of Significant Accounting Policies [Line Items]
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows		1,041		443			$ 1,041	$ 443
Change in restricted cash				598
Net cash used in investing activities				598
Change in cash, cash equivalents, and restricted cash				598
Cash, cash equivalents, and restricted cash at beginning of period				443
Cash, cash equivalents, and restricted cash at end of period		1,041		1,041
Increase (Decrease) from Retrospective Adoption | Accounting Standards Update 2017-07
Summary of Significant Accounting Policies [Line Items]
Administrative and general		(2,383)		(4,886)
Income taxes		971		971
Total operating expenses		(1,412)		(3,915)
Net operating income		1,412		3,915
Other components of net periodic benefit cost		2,383		4,886
Income tax benefit (expense) on other income and expenses		971		971
Net other income		(1,412)		(3,915)
Regulated water and wastewater services
Summary of Significant Accounting Policies [Line Items]
Revenue from contracts with customers	171,772	162,593	306,026	275,405
Total operating revenue	172,632	171,132	304,879	293,168
Operating and maintenance revenue
Summary of Significant Accounting Policies [Line Items]
Revenue from contracts with customers	2,297	2,053	5,462	3,966
Other non-regulated revenue
Summary of Significant Accounting Policies [Line Items]
Revenue from contracts with customers	1,981	1,178	2,724	2,220
Non-regulated revenue
Summary of Significant Accounting Policies [Line Items]
Revenue from contracts with customers	4,278	3,231	8,186	6,186
Total non-regulated revenue	4,845	3,739	9,264	7,201
Residential
Summary of Significant Accounting Policies [Line Items]
Revenue from contracts with customers	109,849	102,171	201,167	178,036
Business
Summary of Significant Accounting Policies [Line Items]
Revenue from contracts with customers	32,125	29,543	59,182	51,569
Industrial
Summary of Significant Accounting Policies [Line Items]
Revenue from contracts with customers	7,941	6,408	15,520	13,363
Public authorities
Summary of Significant Accounting Policies [Line Items]
Revenue from contracts with customers	8,251	7,874	13,695	12,020
Other
Summary of Significant Accounting Policies [Line Items]
Revenue from contracts with customers	$ 13,606	$ 16,597	$ 16,462	$ 20,417

Stock-based Compensation (Detai

Stock-based Compensation (Details) - Equity Incentive Plan - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock-based Compensation
Recorded compensation costs for the RSAs and RSUs			$ 1.5	$ 1.5
Restricted Stock Awards (RSAs)
Stock-based Compensation
Weighted average grant date fair value (in dollars per share)			$ 35.40	$ 36.75
Restricted Stock Awards (RSAs) | Officers and Directors
Stock-based Compensation
Awards granted (in shares)	0	0	46,135	48,717
Awards canceled (in shares)	3,842	3,284	13,306	14,186
Restricted Stock Awards (RSAs) | Employees
Stock-based Compensation
Vesting period			36 months
Restricted Stock Awards (RSAs) | Director
Stock-based Compensation
Vesting period			12 months
Restricted Stock Unit Award (RSUs) | Officer
Stock-based Compensation
Awards granted (in shares)			28,594	31,389
Awards canceled (in shares)			24,009	19,735
Weighted average grant date fair value (in dollars per share)			$ 35.40	$ 36.75
Awards issued (in shares)			48,753	38,709
Expiration period of award			3 years

Equity (Details)

Equity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Changes in total common stockholders' equity
Balance at December 31, 2017			$ 693,462
Common stock issued			1
Share-based compensation expense			1,373
Repurchase of common stock			(1,364)	$ (1,236)
Common stock dividends declared			(18,017)
Net income	$ 13,022	$ 18,531	10,477	$ 19,663
Balance at June 30, 2018	$ 685,932		$ 685,932

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net income available to common stockholders	$ 13,022	$ 18,531	$ 10,477	$ 19,663
Weighted average common shares outstanding, basic (in shares)	48,073	48,020	48,051	48,002
Weighed average common shares outstanding, dilutive (in shares)	48,073	48,020	48,051	48,002
Earnings per share - basic (in dollars per share)	$ 0.27	$ 0.39	$ 0.22	$ 0.41
Earnings per share - diluted (in dollars per share)	$ 0.27	$ 0.39	$ 0.22	$ 0.41

Pension Plan and Other Postre32

Pension Plan and Other Postretirement Benefits (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Pension Plan
Pension Plan and Other Postretirement Benefits
Employer cash contributions			$ 16,000,000	$ 14,800,000
Estimated cash contributions in the current fiscal year			33,400,000
Components of the pension plans and other postretirement benefits
Service cost	$ 7,402,000	$ 5,865,000	14,804,000	11,730,000
Interest cost	5,995,000	5,791,000	11,989,000	11,581,000
Expected return on plan assets	(6,862,000)	(6,029,000)	(13,725,000)	(12,058,000)
Amortization of prior service cost	1,263,000	1,445,000	2,526,000	2,890,000
Recognized net actuarial loss	2,797,000	1,752,000	5,595,000	3,504,000
Net periodic benefit cost	10,595,000	8,824,000	21,189,000	17,647,000
Other Benefits
Pension Plan and Other Postretirement Benefits
Employer cash contributions			2,700,000	0
Estimated cash contributions in the current fiscal year			10,100,000
Components of the pension plans and other postretirement benefits
Service cost	2,550,000	2,019,000	5,100,000	4,038,000
Interest cost	1,484,000	1,491,000	2,969,000	2,982,000
Expected return on plan assets	(1,416,000)	(1,218,000)	(2,832,000)	(2,436,000)
Amortization of prior service cost	11,000	11,000	21,000	22,000
Recognized net actuarial loss	773,000	649,000	1,547,000	1,298,000
Net periodic benefit cost	$ 3,402,000	$ 2,952,000	$ 6,805,000	$ 5,904,000

Short-term and Long-term Borr33

Short-term and Long-term Borrowings (Details) - Revolving Credit Facility - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Average borrowing rate	2.72%	1.82%
Parent Company
Debt Instrument [Line Items]
Outstanding borrowings	$ 55.1		$ 55.1
Cal Water
Debt Instrument [Line Items]
Outstanding borrowings	$ 270		$ 220

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Taxes [Line Items]
Income tax expense	$ 3,527	$ 10,852	$ 2,540	$ 10,857
Income tax expense decrease amount	7,300		8,300
Ratepayer net refund						$ 108,000
Unrecognized tax benefits	11,500		11,500			10,200
Tax benefits that, if recognized, would affect the effective tax rate	$ 2,200		$ 2,200			$ 2,300
Scenario, Forecast | Minimum
Income Taxes [Line Items]
Effective tax rate estimate					23.00%
Scenario, Forecast | Maximum
Income Taxes [Line Items]
Effective tax rate estimate					25.00%

Regulatory Assets and Liabili35

Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Regulatory Assets and Liabilities
Regulatory assets	$ 405,297	$ 401,147
Regulatory liabilities	192,755	179,706
Short-term portion of the regulatory assets	33,257	36,783
Short-term portion of the regulatory liabilities	56,317	59,303
Property-related temporary differences (tax benefits flowed through to customers)
Regulatory Assets and Liabilities
Regulatory liabilities	168,384	168,343
Health care balancing account
Regulatory Assets and Liabilities
Regulatory liabilities	11,127	7,749
Conservation program
Regulatory Assets and Liabilities
Regulatory liabilities	4,531	2,273
Pension balancing account
Regulatory Assets and Liabilities
Regulatory liabilities	13	364
Net WRAM and MCBA long-term payable
Regulatory Assets and Liabilities
Regulatory liabilities	938	513
Tax accounting memorandum account
Regulatory Assets and Liabilities
Regulatory liabilities	4,767	0
Cost of capital memorandum account
Regulatory Assets and Liabilities
Regulatory liabilities	2,834	0
Other regulatory liabilities
Regulatory Assets and Liabilities
Regulatory liabilities	161	464
Pension and retiree group health
Regulatory Assets and Liabilities
Regulatory assets	213,920	214,249
Property-related temporary differences (tax benefits flowed through to customers)
Regulatory Assets and Liabilities
Regulatory assets	87,988	87,323
Other accrued benefits
Regulatory Assets and Liabilities
Regulatory assets	28,741	28,251
Net WRAM and MCBA long-term accounts receivable
Regulatory Assets and Liabilities
Regulatory assets	32,892	34,879
Asset retirement obligations, net
Regulatory Assets and Liabilities
Regulatory assets	17,824	17,126
Interim rates long-term accounts receivable
Regulatory Assets and Liabilities
Regulatory assets	4,568	4,568
Tank coating
Regulatory Assets and Liabilities
Regulatory assets	11,467	10,998
Health care balancing account
Regulatory Assets and Liabilities
Regulatory assets	442	496
Pension balancing account
Regulatory Assets and Liabilities
Regulatory assets	5,136	2,322
Other components of net periodic benefit cost
Regulatory Assets and Liabilities
Regulatory assets	1,754	0
Other regulatory assets
Regulatory Assets and Liabilities
Regulatory assets	$ 565	$ 935

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Lease agreement term	15 years
Contingency loss recognized liability	$ 3.2	$ 6.1

Fair Value of Financial Asset37

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Fair Value of Financial Assets and Liabilities
Risk premium (as a percent)	1.70%
Advances for construction	$ 185,286	$ 182,502
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	570,197	607,492
Advances for construction	77,626	75,083
Total	647,823	682,575
Level 3
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	0	0
Advances for construction	0	0
Total	0	0
Cost
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	519,554	531,713
Advances for construction	185,286	182,502
Total	704,840	714,215
Total
Fair Value of Financial Assets and Liabilities
Long-term debt, including current maturities	570,197	607,492
Advances for construction	77,626	75,083
Total	$ 647,823	$ 682,575

Condensed Consolidating Finan38

Condensed Consolidating Financial Statements - Additional Information (Details) - USD ($)	Jun. 30, 2018	Nov. 17, 2010	Apr. 17, 2009
Cal Water
Debt Instrument [Line Items]
Ownership interest (as a percent)	100.00%
All Other Subsidiaries
Debt Instrument [Line Items]
Ownership interest (as a percent)	100.00%
First Mortgage Bonds, 5.875% due 2019 | Cal Water
Debt Instrument [Line Items]
Debt issued			$ 100,000,000
Interest rate			5.875%
First Mortgage Bonds, 5.500% due 2040 | Cal Water
Debt Instrument [Line Items]
Debt issued		$ 100,000,000
Interest rate		5.50%

Condensed Consolidating Finan39

Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Utility plant:
Utility plant	$ 3,094,616	$ 2,970,179
Less accumulated depreciation and amortization	(964,352)	(922,214)
Net utility plant	2,130,264	2,047,965
Current assets:
Cash and cash equivalents	33,668	94,776	$ 30,144	$ 25,935
Receivables and unbilled revenue, net	134,008	115,454
Receivables from affiliates	0	0
Other current assets	21,894	17,643
Total current assets	189,570	227,873
Other assets:
Regulatory assets	405,297	401,147
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	64,383	63,390
Total other assets	469,680	464,537
TOTAL ASSETS	2,789,514	2,740,375
Capitalization:
Common stockholders' equity	685,932	693,462
Affiliate long-term debt	0	0
Long-term debt, less current maturities	414,530	515,793
Total capitalization	1,100,462	1,209,255
Current liabilities:
Current maturities of long-term debt	105,024	15,920
Short-term borrowings	325,100	275,100
Payables to affiliates	0	0
Accounts payable	93,032	93,955
Accrued expenses and other liabilities	99,144	105,984
Total current liabilities	622,300	490,959
Unamortized investment tax credits	1,724	1,724
Deferred income taxes	196,109	192,946
Pension and postretirement benefits other than pensions	256,431	252,141
Regulatory liabilities and other	238,912	224,127
Advances for construction	185,286	182,502
Contributions in aid of construction	188,290	186,721
TOTAL CAPITALIZATION AND LIABILITIES	2,789,514	2,740,375
Consolidating Adjustments
Utility plant:
Utility plant	(7,197)	(7,196)
Less accumulated depreciation and amortization	2,054	2,010
Net utility plant	(5,143)	(5,186)
Current assets:
Cash and cash equivalents	0	0	0	0
Receivables and unbilled revenue, net	0	0
Receivables from affiliates	(24,594)	(24,088)
Other current assets	0	0
Total current assets	(24,594)	(24,088)
Other assets:
Regulatory assets	0	0
Investments in affiliates	(690,883)	(698,690)
Long-term affiliate notes receivable	(25,601)	(26,441)
Other assets	(204)	(205)
Total other assets	(716,688)	(725,336)
TOTAL ASSETS	(746,425)	(754,610)
Capitalization:
Common stockholders' equity	(696,108)	(703,947)
Affiliate long-term debt	(25,601)	(26,441)
Long-term debt, less current maturities	0	0
Total capitalization	(721,709)	(730,388)
Current liabilities:
Current maturities of long-term debt	0	0
Short-term borrowings	0	0
Payables to affiliates	(24,594)	(24,088)
Accounts payable	0	0
Accrued expenses and other liabilities	0	0
Total current liabilities	(24,594)	(24,088)
Unamortized investment tax credits	0	0
Deferred income taxes	(122)	(134)
Pension and postretirement benefits other than pensions	0	0
Regulatory liabilities and other	0	0
Advances for construction	0	0
Contributions in aid of construction	0	0
TOTAL CAPITALIZATION AND LIABILITIES	(746,425)	(754,610)
Parent Company | Reportable Legal Entities
Utility plant:
Utility plant	1,321	1,321
Less accumulated depreciation and amortization	(966)	(919)
Net utility plant	355	402
Current assets:
Cash and cash equivalents	2,048	4,728	2,112	5,216
Receivables and unbilled revenue, net	1	0
Receivables from affiliates	23,616	19,952
Other current assets	293	80
Total current assets	25,958	24,760
Other assets:
Regulatory assets	0	0
Investments in affiliates	690,883	698,690
Long-term affiliate notes receivable	25,601	26,441
Other assets	59	192
Total other assets	716,543	725,323
TOTAL ASSETS	742,856	750,485
Capitalization:
Common stockholders' equity	685,932	693,462
Affiliate long-term debt	0	0
Long-term debt, less current maturities	0	0
Total capitalization	685,932	693,462
Current liabilities:
Current maturities of long-term debt	0	0
Short-term borrowings	55,100	55,100
Payables to affiliates	0	0
Accounts payable	0	0
Accrued expenses and other liabilities	69	271
Total current liabilities	55,169	55,371
Unamortized investment tax credits	0	0
Deferred income taxes	1,755	1,652
Pension and postretirement benefits other than pensions	0	0
Regulatory liabilities and other	0	0
Advances for construction	0	0
Contributions in aid of construction	0	0
TOTAL CAPITALIZATION AND LIABILITIES	742,856	750,485
Cal Water | Reportable Legal Entities
Utility plant:
Utility plant	2,890,709	2,771,259
Less accumulated depreciation and amortization	(908,107)	(868,762)
Net utility plant	1,982,602	1,902,497
Current assets:
Cash and cash equivalents	24,494	80,940	21,395	13,595
Receivables and unbilled revenue, net	129,007	110,928
Receivables from affiliates	771	4,093
Other current assets	19,812	16,569
Total current assets	174,084	212,530
Other assets:
Regulatory assets	401,325	397,333
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	60,707	59,581
Total other assets	462,032	456,914
TOTAL ASSETS	2,618,718	2,571,941
Capitalization:
Common stockholders' equity	618,145	626,300
Affiliate long-term debt	0	0
Long-term debt, less current maturities	413,800	514,952
Total capitalization	1,031,945	1,141,252
Current liabilities:
Current maturities of long-term debt	104,720	15,598
Short-term borrowings	270,000	220,000
Payables to affiliates	709	580
Accounts payable	89,872	90,561
Accrued expenses and other liabilities	95,475	104,002
Total current liabilities	560,776	430,741
Unamortized investment tax credits	1,724	1,724
Deferred income taxes	191,704	189,004
Pension and postretirement benefits other than pensions	256,431	252,141
Regulatory liabilities and other	235,289	220,779
Advances for construction	184,787	181,979
Contributions in aid of construction	156,062	154,321
TOTAL CAPITALIZATION AND LIABILITIES	2,618,718	2,571,941
All Other Subsidiaries | Reportable Legal Entities
Utility plant:
Utility plant	209,783	204,795
Less accumulated depreciation and amortization	(57,333)	(54,543)
Net utility plant	152,450	150,252
Current assets:
Cash and cash equivalents	7,126	9,108	$ 6,637	$ 7,124
Receivables and unbilled revenue, net	5,000	4,526
Receivables from affiliates	207	43
Other current assets	1,789	994
Total current assets	14,122	14,671
Other assets:
Regulatory assets	3,972	3,814
Investments in affiliates	0	0
Long-term affiliate notes receivable	0	0
Other assets	3,821	3,822
Total other assets	7,793	7,636
TOTAL ASSETS	174,365	172,559
Capitalization:
Common stockholders' equity	77,963	77,647
Affiliate long-term debt	25,601	26,441
Long-term debt, less current maturities	730	841
Total capitalization	104,294	104,929
Current liabilities:
Current maturities of long-term debt	304	322
Short-term borrowings	0	0
Payables to affiliates	23,885	23,508
Accounts payable	3,160	3,394
Accrued expenses and other liabilities	3,600	1,711
Total current liabilities	30,949	28,935
Unamortized investment tax credits	0	0
Deferred income taxes	2,772	2,424
Pension and postretirement benefits other than pensions	0	0
Regulatory liabilities and other	3,623	3,348
Advances for construction	499	523
Contributions in aid of construction	32,228	32,400
TOTAL CAPITALIZATION AND LIABILITIES	$ 174,365	$ 172,559

Condensed Consolidating Finan40

Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidating Financial Statements
Operating revenue	$ 172,632	$ 171,132	$ 304,879	$ 293,168
Operations:
Water production costs	65,373	64,131	112,979	106,199
Administrative and general	24,383	21,413	50,702	44,159
Other operations	20,724	18,328	38,364	34,452
Maintenance	5,389	4,708	10,828	10,820
Depreciation and amortization	20,953	19,218	41,668	38,419
Income tax (benefit) expense	4,347	10,606	4,118	9,722
Property and other taxes	6,407	6,057	13,111	12,173
Total operating (income) expenses	147,576	144,461	271,770	255,944
Net operating income	25,056	26,671	33,109	37,224
Other income and expenses:
Non-regulated revenue	4,845	3,739	9,264	7,201
Non-regulated expenses	(6,115)	(1,614)	(11,552)	(3,668)
Other components of net periodic benefit cost	(2,463)	(2,383)	(5,009)	(4,886)
Allowance for equity funds used during construction	710	879	1,621	1,658
Income tax benefit (expense) on other income and expenses	819	(246)	1,577	(1,135)
Net other (loss) income	(2,204)	375	(4,099)	(830)
Interest expense:
Interest expense	10,134	9,079	19,332	17,789
Allowance for borrowed funds used during construction	(304)	(564)	(799)	(1,058)
Net interest expense	9,830	8,515	18,533	16,731
Equity earnings of subsidiaries	0	0	0	0
Net income	13,022	18,531	10,477	19,663
Consolidating Adjustments
Condensed Consolidating Financial Statements
Operating revenue	0	0	0	0
Operations:
Water production costs	0	0	0	0
Administrative and general	0	0	0	0
Other operations	(146)	(126)	(292)	(252)
Maintenance	0	0	0	0
Depreciation and amortization	(21)	(23)	(43)	(46)
Income tax (benefit) expense	201	263	398	520
Property and other taxes	0	0	0	0
Total operating (income) expenses	34	114	63	222
Net operating income	(34)	(114)	(63)	(222)
Other income and expenses:
Non-regulated revenue	(703)	(622)	(1,379)	(1,230)
Non-regulated expenses	0	0	0	0
Other components of net periodic benefit cost	0	0	0	0
Allowance for equity funds used during construction	0	0	0	0
Income tax benefit (expense) on other income and expenses	197	253	386	501
Net other (loss) income	(506)	(369)	(993)	(729)
Interest expense:
Interest expense	(557)	(496)	(1,088)	(977)
Allowance for borrowed funds used during construction	0	0	0	0
Net interest expense	(557)	(496)	(1,088)	(977)
Equity earnings of subsidiaries	(12,934)	(18,415)	(10,209)	(19,413)
Net income	(12,917)	(18,402)	(10,177)	(19,387)
Parent Company | Reportable Legal Entities
Condensed Consolidating Financial Statements
Operating revenue	0	0	0	0
Operations:
Water production costs	0	0	0	0
Administrative and general	0	0	0	0
Other operations	0	0	0	0
Maintenance	0	0	0	0
Depreciation and amortization	24	26	47	49
Income tax (benefit) expense	(122)	(123)	(200)	(226)
Property and other taxes	0	0	0	(4)
Total operating (income) expenses	(98)	(97)	(153)	(181)
Net operating income	98	97	153	181
Other income and expenses:
Non-regulated revenue	557	496	1,088	977
Non-regulated expenses	0	0	0	0
Other components of net periodic benefit cost	0	0	0	0
Allowance for equity funds used during construction	0	0	0	0
Income tax benefit (expense) on other income and expenses	(156)	(202)	(304)	(398)
Net other (loss) income	401	294	784	579
Interest expense:
Interest expense	411	275	669	510
Allowance for borrowed funds used during construction	0	0	0	0
Net interest expense	411	275	669	510
Equity earnings of subsidiaries	12,934	18,415	10,209	19,413
Net income	13,022	18,531	10,477	19,663
Cal Water | Reportable Legal Entities
Condensed Consolidating Financial Statements
Operating revenue	162,296	161,174	285,866	274,516
Operations:
Water production costs	63,209	62,089	108,832	102,278
Administrative and general	22,047	18,907	45,653	39,028
Other operations	19,138	16,729	35,355	31,129
Maintenance	5,192	4,509	10,436	10,415
Depreciation and amortization	19,664	18,102	39,277	36,213
Income tax (benefit) expense	3,940	10,012	3,600	9,066
Property and other taxes	5,682	5,315	11,689	10,727
Total operating (income) expenses	138,872	135,663	254,842	238,856
Net operating income	23,424	25,511	31,024	35,660
Other income and expenses:
Non-regulated revenue	4,739	3,469	8,983	6,604
Non-regulated expenses	(5,975)	(1,428)	(11,268)	(3,175)
Other components of net periodic benefit cost	(2,337)	(2,240)	(4,784)	(4,595)
Allowance for equity funds used during construction	710	879	1,621	1,658
Income tax benefit (expense) on other income and expenses	783	(278)	1,524	(1,161)
Net other (loss) income	(2,080)	402	(3,924)	(669)
Interest expense:
Interest expense	9,718	8,795	18,652	17,265
Allowance for borrowed funds used during construction	(270)	(542)	(728)	(1,018)
Net interest expense	9,448	8,253	17,924	16,247
Equity earnings of subsidiaries	0	0	0	0
Net income	11,896	17,660	9,176	18,744
All Other Subsidiaries | Reportable Legal Entities
Condensed Consolidating Financial Statements
Operating revenue	10,336	9,958	19,013	18,652
Operations:
Water production costs	2,164	2,042	4,147	3,921
Administrative and general	2,336	2,506	5,049	5,131
Other operations	1,732	1,725	3,301	3,575
Maintenance	197	199	392	405
Depreciation and amortization	1,286	1,113	2,387	2,203
Income tax (benefit) expense	328	454	320	362
Property and other taxes	725	742	1,422	1,450
Total operating (income) expenses	8,768	8,781	17,018	17,047
Net operating income	1,568	1,177	1,995	1,605
Other income and expenses:
Non-regulated revenue	252	396	572	850
Non-regulated expenses	(140)	(186)	(284)	(493)
Other components of net periodic benefit cost	(126)	(143)	(225)	(291)
Allowance for equity funds used during construction	0	0	0	0
Income tax benefit (expense) on other income and expenses	(5)	(19)	(29)	(77)
Net other (loss) income	(19)	48	34	(11)
Interest expense:
Interest expense	562	505	1,099	991
Allowance for borrowed funds used during construction	(34)	(22)	(71)	(40)
Net interest expense	528	483	1,028	951
Equity earnings of subsidiaries	0	0	0	0
Net income	$ 1,021	$ 742	$ 1,001	$ 643

Condensed Consolidating Finan41

Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net income	$ 13,022	$ 18,531	$ 10,477	$ 19,663
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	0	0	0	0
Dividends received from affiliates			0	0
Depreciation and amortization			42,582	39,328
Change in value of life insurance contracts			817	(1,208)
Allowance for equity funds used during construction	(710)	(879)	(1,621)	(1,658)
Changes in operating assets and liabilities:
Changes in operating assets and liabilities			(16,389)	(40,086)
Other changes in noncurrent assets and liabilities			13,705	19,687
Net cash provided by operating activities			49,571	35,726
Investing activities:
Utility plant expenditures			(133,900)	(108,712)
Changes in affiliate advances			0	0
Issuance of affiliate short-term borrowings			0	0
Reduction of affiliates long-term debt			0	0
Life insurance proceeds			2,054	450
Purchase of life insurance contracts			(2,054)	(1,216)
Net cash used in investing activities			(133,900)	(109,478)
Financing Activities:
Short-term borrowings			111,000	140,000
Repayment of short-term borrowings			(61,000)	(47,000)
Proceeds from affiliate short-term borrowings			0	0
Changes in affiliate advances			0	0
Repayment of affiliates long-term borrowings			0	0
Repayment of long-term debt			(12,264)	(2,407)
Advances and contributions in aid of construction			8,385	10,312
Refunds of advances for construction			(3,498)	(4,430)
Repurchase of common stock			(1,364)	(1,236)
Dividends paid to non-affiliates			(18,017)	(17,278)
Dividends paid to affiliates			0	0
Net cash provided by financing activities			23,242	77,961
Change in cash, cash equivalents, and restricted cash			(61,087)	4,209
Cash, cash equivalents, and restricted cash at beginning of period			95,352	25,935
Cash, cash equivalents, and restricted cash at end of period	34,265	30,144	34,265	30,144
Consolidating Adjustments
Operating activities:
Net income	(12,917)	(18,402)	(10,177)	(19,387)
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	12,934	18,415	10,209	19,413
Dividends received from affiliates			(18,017)	(17,278)
Depreciation and amortization			(43)	(46)
Change in value of life insurance contracts			0	0
Allowance for equity funds used during construction	0	0	0	0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities			0	0
Other changes in noncurrent assets and liabilities			11	20
Net cash provided by operating activities			(18,017)	(17,278)
Investing activities:
Utility plant expenditures			0	0
Changes in affiliate advances			(3,187)	(2,782)
Issuance of affiliate short-term borrowings			3,700	2,610
Reduction of affiliates long-term debt			(818)	(668)
Life insurance proceeds			0	0
Purchase of life insurance contracts			0	0
Net cash used in investing activities			(305)	(840)
Financing Activities:
Short-term borrowings			0	0
Repayment of short-term borrowings			0	0
Proceeds from affiliate short-term borrowings			(3,700)	(2,610)
Changes in affiliate advances			3,187	2,782
Repayment of affiliates long-term borrowings			818	668
Repayment of long-term debt			0	0
Advances and contributions in aid of construction			0	0
Refunds of advances for construction			0	0
Repurchase of common stock			0	0
Dividends paid to non-affiliates			0	0
Dividends paid to affiliates			18,017	17,278
Net cash provided by financing activities			18,322	18,118
Change in cash, cash equivalents, and restricted cash			0	0
Cash, cash equivalents, and restricted cash at beginning of period			0
Cash, cash equivalents, and restricted cash at end of period	0		0
Parent Company | Reportable Legal Entities
Operating activities:
Net income	13,022	18,531	10,477	19,663
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(12,934)	(18,415)	(10,209)	(19,413)
Dividends received from affiliates			18,017	17,278
Depreciation and amortization			47	47
Change in value of life insurance contracts			0	0
Allowance for equity funds used during construction	0	0	0	0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities			(417)	(172)
Other changes in noncurrent assets and liabilities			1,610	1,520
Net cash provided by operating activities			19,525	18,923
Investing activities:
Utility plant expenditures			0	0
Changes in affiliate advances			58	429
Issuance of affiliate short-term borrowings			(3,700)	(2,610)
Reduction of affiliates long-term debt			818	668
Life insurance proceeds			0	0
Purchase of life insurance contracts			0	0
Net cash used in investing activities			(2,824)	(1,513)
Financing Activities:
Short-term borrowings			0	0
Repayment of short-term borrowings			0	(2,000)
Proceeds from affiliate short-term borrowings			0	0
Changes in affiliate advances			0	0
Repayment of affiliates long-term borrowings			0	0
Repayment of long-term debt			0	0
Advances and contributions in aid of construction			0	0
Refunds of advances for construction			0	0
Repurchase of common stock			(1,364)	(1,236)
Dividends paid to non-affiliates			(18,017)	(17,278)
Dividends paid to affiliates			0	0
Net cash provided by financing activities			(19,381)	(20,514)
Change in cash, cash equivalents, and restricted cash			(2,680)	(3,104)
Cash, cash equivalents, and restricted cash at beginning of period			4,728
Cash, cash equivalents, and restricted cash at end of period	2,048		2,048
Cal Water | Reportable Legal Entities
Operating activities:
Net income	11,896	17,660	9,176	18,744
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	0	0	0	0
Dividends received from affiliates			0	0
Depreciation and amortization			40,146	37,074
Change in value of life insurance contracts			817	(1,208)
Allowance for equity funds used during construction	(710)	(879)	(1,621)	(1,658)
Changes in operating assets and liabilities:
Changes in operating assets and liabilities			(16,439)	(40,755)
Other changes in noncurrent assets and liabilities			11,653	17,650
Net cash provided by operating activities			43,732	29,847
Investing activities:
Utility plant expenditures			(128,683)	(105,684)
Changes in affiliate advances			3,323	2,491
Issuance of affiliate short-term borrowings			0	0
Reduction of affiliates long-term debt			0	0
Life insurance proceeds			2,054	450
Purchase of life insurance contracts			(2,054)	(1,216)
Net cash used in investing activities			(125,360)	(103,959)
Financing Activities:
Short-term borrowings			111,000	140,000
Repayment of short-term borrowings			(61,000)	(45,000)
Proceeds from affiliate short-term borrowings			0	0
Changes in affiliate advances			129	(238)
Repayment of affiliates long-term borrowings			0	0
Repayment of long-term debt			(12,136)	(2,161)
Advances and contributions in aid of construction			8,029	10,225
Refunds of advances for construction			(3,489)	(4,430)
Repurchase of common stock			0	0
Dividends paid to non-affiliates			0	0
Dividends paid to affiliates			(17,330)	(16,484)
Net cash provided by financing activities			25,203	81,912
Change in cash, cash equivalents, and restricted cash			(56,425)	7,800
Cash, cash equivalents, and restricted cash at beginning of period			81,453
Cash, cash equivalents, and restricted cash at end of period	25,028		25,028
All Other Subsidiaries | Reportable Legal Entities
Operating activities:
Net income	1,021	742	1,001	643
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	0	0	0	0
Dividends received from affiliates			0	0
Depreciation and amortization			2,432	2,253
Change in value of life insurance contracts			0	0
Allowance for equity funds used during construction	0	$ 0	0	0
Changes in operating assets and liabilities:
Changes in operating assets and liabilities			467	841
Other changes in noncurrent assets and liabilities			431	497
Net cash provided by operating activities			4,331	4,234
Investing activities:
Utility plant expenditures			(5,217)	(3,028)
Changes in affiliate advances			(194)	(138)
Issuance of affiliate short-term borrowings			0	0
Reduction of affiliates long-term debt			0	0
Life insurance proceeds			0	0
Purchase of life insurance contracts			0	0
Net cash used in investing activities			(5,411)	(3,166)
Financing Activities:
Short-term borrowings			0	0
Repayment of short-term borrowings			0	0
Proceeds from affiliate short-term borrowings			3,700	2,610
Changes in affiliate advances			(3,316)	(2,544)
Repayment of affiliates long-term borrowings			(818)	(668)
Repayment of long-term debt			(128)	(246)
Advances and contributions in aid of construction			356	87
Refunds of advances for construction			(9)	0
Repurchase of common stock			0	0
Dividends paid to non-affiliates			0	0
Dividends paid to affiliates			(687)	(794)
Net cash provided by financing activities			(902)	(1,555)
Change in cash, cash equivalents, and restricted cash			(1,982)	$ (487)
Cash, cash equivalents, and restricted cash at beginning of period			9,171
Cash, cash equivalents, and restricted cash at end of period	$ 7,189		$ 7,189