Cover
Cover | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 1-13883 |
Entity Registrant Name | CALIFORNIA WATER SERVICE GROUP |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 77-0448994 |
Entity Address, Address Line One | 1720 North First Street |
Entity Address, City or Town | San Jose |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 95112 |
City Area Code | 408 |
Local Phone Number | 367-8200 |
Title of 12(b) Security | Common Stock, $0.01 par value per share |
Trading Symbol | CWT |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 48,714,000 |
Entity Central Index Key | 0001035201 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Utility plant: | ||
Utility plant | $ 3,616,418 | $ 3,550,485 |
Less accumulated depreciation and amortization | (1,169,447) | (1,144,115) |
Net utility plant | 2,446,971 | 2,406,370 |
Current assets: | ||
Cash and cash equivalents | 140,406 | 42,653 |
Receivables: | ||
Customers, net | 32,729 | 32,058 |
Regulatory balancing accounts | 24,970 | 38,225 |
Other, net | 14,428 | 14,187 |
Unbilled revenue, net | 31,149 | 34,879 |
Materials and supplies at weighted average cost | 8,135 | 7,745 |
Taxes, prepaid expenses, and other assets | 18,265 | 14,965 |
Total current assets | 270,082 | 184,712 |
Other assets: | ||
Regulatory assets | 442,819 | 433,322 |
Goodwill | 2,615 | 2,615 |
Other assets | 78,358 | 84,289 |
Total other assets | 523,792 | 520,226 |
TOTAL ASSETS | 3,240,845 | 3,111,308 |
Capitalization: | ||
Common stock, $0.01 par value; 68,000 shares authorized, 48,714 and 48,532 outstanding in 2020 and 2019, respectively | 487 | 485 |
Additional paid-in capital | 368,129 | 362,275 |
Retained earnings | 386,524 | 417,146 |
Total common stockholders’ equity | 755,140 | 779,906 |
Long-term debt, net | 786,467 | 786,754 |
Total capitalization | 1,541,607 | 1,566,660 |
Current liabilities: | ||
Current maturities of long-term debt, net | 21,864 | 21,868 |
Short-term borrowings | 335,100 | 175,100 |
Accounts payable | 99,019 | 108,463 |
Regulatory balancing accounts | 3,474 | 4,462 |
Accrued interest | 14,545 | 5,810 |
Accrued expenses and other liabilities | 39,125 | 43,018 |
Total current liabilities | 513,127 | 358,721 |
Unamortized investment tax credits | 1,575 | 1,575 |
Deferred income taxes | 218,451 | 222,590 |
Pension and postretirement benefits other than pensions | 260,337 | 258,907 |
Regulatory liabilities and other | 268,917 | 270,256 |
Advances for construction | 194,046 | 191,062 |
Contributions in aid of construction | 242,785 | 241,537 |
Commitments and contingencies (Note 10) | ||
TOTAL CAPITALIZATION AND LIABILITIES | $ 3,240,845 | $ 3,111,308 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Mar. 31, 2019 |
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) | 48,714,000 | 48,532,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Operating revenue | $ 125,563 | $ 126,111 |
Operations: | ||
Water production costs | 53,976 | 45,592 |
Administrative and general | 29,680 | 29,097 |
Other operations | 13,974 | 17,821 |
Maintenance | 7,073 | 6,455 |
Depreciation and amortization | 24,492 | 22,368 |
Income tax benefit | (3,937) | (2,991) |
Property and other taxes | 7,228 | 7,293 |
Total operating (income) expenses | 132,486 | 125,635 |
Net operating (loss) income | (6,923) | 476 |
Other income and expenses: | ||
Non-regulated revenue | 3,827 | 4,901 |
Non-regulated expenses | (8,454) | (2,219) |
Other components of net periodic benefit cost | (1,430) | (1,259) |
Allowance for equity funds used during construction | 1,614 | 1,533 |
Income tax benefit (expense) on other income and expenses | 913 | (828) |
Net other (loss) income | (3,530) | 2,128 |
Interest expense: | ||
Interest expense | 10,798 | 11,075 |
Allowance for borrowed funds used during construction | (944) | (831) |
Net interest expense | 9,854 | 10,244 |
Net (loss) income | $ (20,307) | $ (7,640) |
Loss per share: | ||
Basic (in dollars per share) | $ (0.42) | $ (0.16) |
Diluted (in dollars per share) | $ (0.42) | $ (0.16) |
Weighted average shares outstanding: | ||
Basic (in shares) | 48,583 | 48,086 |
Diluted (in shares) | 48,583 | 48,086 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net loss | $ (20,307) | $ (7,640) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 25,093 | 22,893 |
Change in value of life insurance contracts | 4,717 | (2,254) |
Allowance for equity funds used during construction | (1,614) | (1,533) |
Changes in operating assets and liabilities: | ||
Receivables and unbilled revenue | 7,261 | 5,147 |
Accounts payable | (7,379) | (4,233) |
Other current assets | (3,768) | (5,027) |
Other current liabilities | 3,316 | 5,268 |
Other changes in noncurrent assets and liabilities | (3,252) | 7,520 |
Net cash provided by operating activities | 4,067 | 20,141 |
Investing activities: | ||
Utility plant expenditures | (65,270) | (59,881) |
Net cash used in investing activities | (65,270) | (59,881) |
Financing activities: | ||
Short-term borrowings | 170,000 | 60,000 |
Repayment of short-term borrowings | (10,000) | 0 |
Repayment of long-term debt | (197) | (226) |
Advances and contributions in aid of construction | 6,432 | 6,044 |
Refunds of advances for construction | (2,157) | (1,790) |
Repurchase of common stock | (1,373) | (2,074) |
Issuance of common stock | 6,511 | 454 |
Dividends paid | (10,315) | (9,493) |
Net cash provided by financing activities | 158,901 | 52,915 |
Change in cash, cash equivalents, and restricted cash | 97,698 | 13,175 |
Cash, cash equivalents, and restricted cash at beginning of period | 43,298 | 47,715 |
Cash, cash equivalents, and restricted cash at end of period | 140,996 | 60,890 |
Supplemental information: | ||
Cash paid for interest (net of amounts capitalized) | 909 | 3,352 |
Supplemental disclosure of non-cash activities: | ||
Accrued payables for investments in utility plant | 38,018 | 29,737 |
Utility plant contribution by developers | $ 8,007 | $ 4,111 |
Organization and Operations and
Organization and Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
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 included in its Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the SEC on February 27, 2020. 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 credit losses, 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. Due to the seasonal nature of the water business, the results for interim periods are not indicative of the results for a 12-month period. Revenue and income are generally higher in the warm, dry summer months when water usage and sales are greater. Revenue and income are generally lower in the winter months when cooler temperatures and rainfall curtail water usage and sales. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Operating revenue The following table disaggregates the Company’s operating revenue by source for the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Revenue from contracts with customers $ 134,833 $ 117,410 Regulatory balancing account revenue (a) (9,270 ) 8,701 Total operating revenue $ 125,563 $ 126,111 (a) As further discussed below, no amounts were recorded for the Company’s Water Revenue Adjustment Mechanism (WRAM), Modified Cost Balancing Account (MCBA), Pension Cost Balancing Account (PCBA), and Health Cost Balancing Account (HCBA) for the three months ended March 31, 2020 due to the delay in the resolution of the 2018 General Rate Case (GRC). 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 or contract liability, which is included in "accrued expenses and other liabilities" on the consolidated balance sheets, is inconsequential. In the following table, revenue from contracts with customers is disaggregated by class of customers for the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Residential $ 92,544 $ 84,259 Business 27,693 25,481 Industrial 7,878 7,264 Public authorities 5,897 4,471 Other (a) 821 (4,065 ) Total revenue from contracts with customers $ 134,833 $ 117,410 (a) Other includes the accrued unbilled revenue. Regulatory balancing account revenue The Company’s ability to recover revenue requirements authorized by the California Public Utilities Commission (CPUC) in its triennial 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. These mechanisms include the following: The 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 MCBA, Conservation Expense Balancing Account (CEBA), PCBA, and HCBA, generally provide for recovery of the adopted levels of expenses for purchased water, purchased power, pump taxes, water conservation program costs, pension, and health care. Variances between adopted and actual costs are recorded as regulatory balancing account revenue. The WRAM, MCBA, PCBA, and HCBA are being litigated in the pending 2018 GRC, which is further discussed in Note 9. As the mechanisms are being litigated, the Company did not record regulatory assets for the WRAM, MCBA, PCBA, and HCBA for the first three months of 2020. The Company determined that these mechanisms did not meet the regulatory asset recognition criteria under accounting standards for regulated utilities. As the CEBA is not being litigated in the pending 2018 GRC, the Company recorded a regulatory liability for the CEBA for the first three months of 2020. The Company determined that the CEBA met the regulatory liability recognition criteria under accounting standards for regulated utilities. 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 table disaggregates the Company’s non-regulated revenue by source for the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Operating and maintenance revenue $ 2,499 $ 3,046 Other non-regulated revenue 765 1,296 Non-regulated revenue from contracts with customers $ 3,264 $ 4,342 Lease revenue $ 563 $ 559 Total non-regulated revenue $ 3,827 $ 4,901 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. Lease revenue is not considered revenue from contracts with customers and is recognized following operating lease standards. The Company is the lessor in operating lease agreements with telecommunications companies under which cellular phone antennas are placed on the Company's property. Allowance for credit losses The Company measures expected credit losses for Customer Receivables, Other Receivables, and Unbilled Revenue on an aggregated level. These receivables are generally trade receivables due in one year or less or expected to be billed and collected in one year or less. The expected credit losses for Other Receivables is inconsequential. Although the Company has residential, business, industrial, public authorities, and other customers, the risk characteristics of each of these customer classes is similar as the Company has determined that the differences in the customer write-off behavior among its customer classes is inconsequential. The overall risks related to the Company’s receivables is low as water and wastewater services are seen as essential services. The estimate for the allowance for credit losses is based off of a historical loss ratio that is adjusted for current conditions and reasonable and supportable forecasts. For the first quarter of 2020, the estimate includes an adjustment made for the effects of COVID-19 pandemic. As the states in which the Company operates have issued ‘shelter-in-place” and social distancing ordinances, the Company is expecting segments of its customer base to experience employment layoffs and business closures which will negatively impact their ability to pay utility bills. The Company has also ceased all shutoffs for nonpayment during the pandemic. The following table presents the activity in the allowance for credit losses for the period ended March 31, 2020: As of March 31, 2020 Allowance for credit losses Customer Receivables Unbilled Revenue Beginning balance 374 397 Provision for credit loss expense 263 244 Write-offs (242 ) (277 ) Recoveries 41 38 Total ending allowance balance $ 436 $ 402 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: March 31, 2020 December 31, 2019 Cash and cash equivalents 140,406 42,653 Restricted cash (included in "taxes, prepaid expenses and other assets") 590 645 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 140,996 $ 43,298 Adoption of New Accounting Standards In June of 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changed the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model required recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. ASU 2016-13 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company adopted the standard utilizing the modified retrospective method for its trade receivables and unbilled revenue on January 1, 2020. Based on the composition of the Company’s trade receivables and unbilled revenue, and expected future losses, the adoption of ASU 2016-13 did not have a material impact on its consolidated financial statements. In January of 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminated the second step of the goodwill impairment test that required a hypothetical purchase price allocation to measure goodwill impairment. Under the new guidance, a goodwill impairment loss will be measured at the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. The Company adopted the standard on January 1, 2020 and the adoption of the standard did not have a material impact on its consolidated financial statements. In August of 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure for Fair Value Measurement, which modified the disclosure requirements on fair value measurements. The modifications in this update eliminated, amended, and added disclosure requirements for fair value measurements. ASU 2018-13 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company adopted the standard in part prospectively and in part retrospectively, in accordance with the requirements of ASU 2018-13, on January 1, 2020. Since the Company, does not have level 3 fair value measurements or transfers between level 1 and level 2 fair value measurements, the adoption of the standard did not have a material impact on its footnote disclosures. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Equity Incentive Plan The following table lists the number of annual Restricted Stock Awards (RSAs) granted and canceled during the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 RSAs granted 39,915 36,183 RSAs canceled 5,034 8,334 During the first three months of 2020 and 2019, the RSAs granted were valued at $51.41 and $52.83 per share, respectively, based upon the fair value of the Company’s common stock on the date of grant. 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 . The following table lists the number of Restricted Stock Unit Awards (RSUs) granted, issued, and canceled during the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 RSUs granted 32,720 26,473 RSUs issued 41,731 62,726 RSUs canceled 22,936 31,177 The 2020 and 2019 RSUs granted may be issued upon completion of the three -year performance period and are recognized as expense ratably over the period using a fair value of $51.41 per share and $52.83 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 $0.8 million and $2.7 million for the three months ended March 31, 2020 and 2019, respectively. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | Equity The Company sold 115,834 shares of common stock through its at-the-market equity program and raised proceeds of $6.0 million net of $0.1 million in commissions paid under the equity distribution agreement during the first three months of 2020. The Company also incurred $0.1 million of equity issuance costs during the first three months of 2020. The Company’s changes in total common stockholders’ equity for the three months ended March 31, 2020 and 2019 were as follows: Three months ended March 31, 2020 Common Stock Additional Retained Total Shares Amount (In thousands) Balance at January 1, 2020 48,532 $ 485 $ 362,275 $ 417,146 $ 779,906 Net loss (20,307 ) (20,307 ) Issuance of common stock 210 2 7,227 7,229 Repurchase of common stock (28 ) — (1,373 ) (1,373 ) Dividends paid on common stock ($0.2125 per share) (10,315 ) (10,315 ) Balance at March 31, 2020 48,714 487 368,129 386,524 755,140 Three months ended March 31, 2019 Common Stock Additional Retained Total Shares Amount (In thousands) Balance at January 1, 2019 48,065 $ 481 $ 337,623 $ 392,053 $ 730,157 Net loss (7,640 ) (7,640 ) Issuance of common stock 109 — 3,179 — 3,179 Repurchase of common stock (40 ) — (2,074 ) — (2,074 ) Dividends paid on common stock ($0.1975 per share) (9,493 ) (9,493 ) Balance at March 31, 2019 48,134 481 338,728 374,920 714,129 |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share The computations of basic and diluted loss per share are noted in the table below. Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding during the period. 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 March 31 2020 2019 (In thousands, except per share data) Net loss available to common stockholders $ (20,307 ) $ (7,640 ) Weighted average common shares outstanding, basic 48,583 48,086 Weighted average common shares outstanding, dilutive 48,583 48,086 Loss per share - basic $ (0.42 ) $ (0.16 ) Loss per share - diluted $ (0.42 ) $ (0.16 ) |
Pension Plan and Other Postreti
Pension Plan and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
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 made by the Company to the pension plans were $7.9 million for the three months ended March 31, 2020. There were no cash contributions made to the pension plans for the three months ended March 31, 2019. Cash contributions made by the Company to the other postretirement benefit plans were $2.2 million and $1.4 million for the three months ended March 31, 2020 and 2019, respectively. The total 2020 estimated cash contribution to the pension plans is $38.0 million and to the other postretirement benefit plans is $7.5 million . The following tables list components of net periodic benefit costs for the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits. Three Months Ended March 31 Pension Plan Other Benefits 2020 2019 2020 2019 Service cost $ 8,811 $ 6,565 $ 2,106 $ 1,762 Interest cost 6,433 6,642 1,210 1,337 Expected return on plan assets (8,265 ) (7,567 ) (1,811 ) (1,435 ) Amortization of prior service cost 1,057 1,262 49 49 Recognized net actuarial loss 3,196 1,312 14 104 Net periodic benefit cost $ 11,232 $ 8,214 $ 1,568 $ 1,817 Service cost portion of the pension plan and other postretirement benefits is recognized in "administrative and general" expenses within the Condensed Consolidated Statements of Loss. 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 cost" within the Condensed Consolidated Statements of Loss. |
Short-term and Long-term Borrow
Short-term and Long-term Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short-term and Long-term Borrowings | Short-term and Long-term Borrowings On March 29, 2019, the Company and Cal Water entered into certain syndicated credit agreements, which provide for unsecured revolving credit facilities of up to an initial aggregate amount of $550.0 million for a term of five years . The Company and subsidiaries that it designates may borrow up to $150.0 million under the Company’s revolving credit facility. Cal Water may borrow up to $400.0 million under its revolving credit facility. Additionally, the credit facilities may be increased by up to an incremental $150.0 million under the Cal Water facility and $50.0 million under the Company facility, subject in each case to certain conditions. The revolving credit facilities contain affirmative and negative covenants and events of default customary for credit facilities of this type including, among other things, limitations and prohibitions relating to additional indebtedness, liens, mergers, and asset sales. Also, these unsecured credit agreements contain financial covenants governing the Company and its subsidiaries' consolidated total capitalization ratio and interest coverage ratio. The outstanding borrowings on the Company line of credit were $105.1 million and $55.1 million as of March 31, 2020 and December 31, 2019, respectively. There were $230.0 million and $120.0 million of borrowings on the Cal Water line of credit as of March 31, 2020 and December 31, 2019, respectively. The average borrowing rate for borrowings on the Company and Cal Water lines of credit during the three months ended March 31, 2020 was 2.59% compared to 3.22% for the same period last year. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
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 table below: Three Months Ended March 31 2020 2019 Income tax benefit $ (4,850 ) $ (2,163 ) The income tax benefit increased $2.7 million to $4.9 million for the three months ended March 31, 2020 as compared to $2.2 million for the three months ended March 31, 2019. The increase was due to an increase in pre-tax loss of $15.4 million for the three months ended March 31, 2020 as compared to the three months ended March 31, 2019. The Company's 2020 effective tax rate, before discrete items, is estimated to be 19.3% . For the year ended December 31, 2018, the Company recorded a re-measurement of its deferred tax balances (related mostly to timing differences for plant-related items). The final impact of the Tax Cuts and Jobs Act (TCJA) may differ from the recorded amounts, possibly materially, due to regulatory decisions that could differ from the Company’s determination of how the impact of the TCJA are allocated between customers and shareholders. In addition, changes in interpretations, guidance on legislative intent, and any changes in accounting standards for income taxes in response to the TCJA could also impact the recorded amounts. The Company is continuing to work with state regulators to finalize the customer net refund of $107.0 million to ensure compliance with federal normalization rules and will record any adjustments based on state regulator's decisions. The Company had unrecognized tax benefits of approximately $11.7 million and $10.1 million as of March 31, 2020 and 2019, respectively. Included in the balance of unrecognized tax benefits, is approximately $3.3 million and $3.0 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. During the three months ended March 31, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act includes provisions relating to refundable payroll tax credits, deferral of certain payroll taxes, technical corrections to tax depreciation methods for qualified improvement property, net operating loss carryback periods, alternative minimum tax credit refunds and modifications to the net interest deduction limitations which are not expected to have a material impact to the Company’s consolidated financial statements. The Company evaluated the provisions of the CARES Act and determined that it did not have a material effect on the Company's consolidated financial statements as of March 31, 2020. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities The CPUC follows a rate case plan which requires Cal Water to file a GRC for each of its regulated operating districts every three years . In a GRC proceeding, the CPUC not only considers the utility's rate setting requests, but may also consider other issues that affect the utility's rates and operations. The CPUC is generally required to issue its GRC decision prior to the first day of the test year or authorize interim rates. In accordance with the rate case plan, Cal Water filed its 2018 GRC application in July of 2018 requesting rate changes effective January 1, 2020. On October 8, 2019, Cal Water jointly filed a formal settlement agreement for its 2018 GRC with the Public Advocates Office of the CPUC covering the majority of open matters in the case. The key matters not included in the settlement which are currently being litigated are: continuation of the WRAM, MCBA, PCBA, and HCBA. Recognition of regulatory assets for these litigated matters have therefore not been recorded for the period ended March 31, 2020. If the CPUC approves the settlement agreement, Cal Water would be authorized to include in rates $609.0 million to $628.0 million of new projects throughout the state in 2019 to 2021, along with approximately $200.0 million for completion of additional projects which commenced in 2018 and prior periods. Included in these figures are $148.0 million of advice letter authorizations, which would not be included in rates until related projects are completed. Cal Water anticipates that if the settlement were adopted, it would plan to make capital investments of approximately $809.0 million to $828.0 million in the 2019-2021 period. Cal Water's 2018 GRC decision has been delayed and Cal Water has been granted interim rate relief beginning January 1, 2020. The results of the 2018 GRC may differ from what is contained in the GRC application. The Company currently expects a decision from the CPUC in mid-2020. Regulatory assets and liabilities were comprised of the following as of March 31, 2020 and December 31, 2019 : Recovery Period March 31, 2020 December 31, 2019 Regulatory Assets Pension and retiree group health Indefinitely $ 208,157 $ 208,321 Property-related temporary differences (tax benefits flowed through to customers) Indefinitely 105,600 104,931 Other accrued benefits Indefinitely 20,885 20,030 Net WRAM and MCBA long-term accounts receivable 1-2 years 31,693 25,465 Asset retirement obligations, net Indefinitely 20,045 19,567 Interim rates long-term accounts receivable 1 year 4,642 4,642 Tank coating 10 years 14,426 13,535 Recoverable property losses 10 years 4,856 5,000 PCBA 1 year 21,465 21,465 Other components of net periodic benefit cost Indefinitely 5,503 5,145 Other regulatory assets Various 5,547 5,221 Total Regulatory Assets $ 442,819 $ 433,322 Regulatory Liabilities Future tax benefits due to customers $ 194,459 $ 194,501 HCBA 4,271 4,271 CEBA 559 2,742 Net WRAM and MCBA long-term payable 135 211 Tax accounting memorandum account 853 806 Cost of capital memorandum account 154 151 1,2,3 trichloropropane (TCP) settlement proceeds 9,491 8,426 Other regulatory liabilities 345 305 Total Regulatory Liabilities $ 210,267 $ 211,413 Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets were $25.0 million as of March 31, 2020 and $38.2 million as of December 31, 2019 . As of March 31, 2020 and December 31, 2019 , the short-term regulatory assets primarily consist of net WRAM and MCBA receivables. The short-term portions of regulatory liabilities were $3.5 million as of March 31, 2020 and $4.5 million as of December 31, 2019 . The short-term regulatory liabilities as of March 31, 2020 , primarily consist of 2015 GRC CEBA refunds. As of December 31, 2019 , the short-term regulatory liabilities primarily consist of TCP settlement proceeds, tax accounting memorandum account refunds, and cost of capital memorandum account refunds. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has significant commitments to purchase water from water wholesalers. The Company also has operating and finance leases for water systems, offices, land easements, licenses, equipment, and other facilities. These commitments and leases are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. As of March 31, 2020, there were no significant changes in these commitments from December 31, 2019. 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 and to request recovery of these costs in future filings. Other Legal Matters From time to time, the Company is involved in various disputes and litigation matters that arise in the ordinary course of business. The status of each significant matter is reviewed and assessed for potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount of the range of loss can be estimated, a liability is accrued for the estimated loss in accordance with the accounting standards for contingencies. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the time. While the outcome of these disputes and litigation matters cannot be predicted with any certainty, management does not believe when taking into account existing reserves the ultimate resolution of these matters will materially affect the Company’s financial position, results of operations, or cash flows. As of March 31, 2020 and December 31, 2019, the Company recognized a liability of $2.0 million and $2.5 million , respectively, for known legal matters. The cost of litigation is expensed as incurred and any settlement is first offset against such costs. Any settlement in excess of the cost to litigate is accounted for on a case by case basis, dependent on the nature of the settlement. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
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 1.83% . Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. March 31, 2020 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 808,331 — $ 989,749 — $ 989,749 Advances for construction 194,046 — 82,078 — 82,078 Total $ 1,002,377 $ — $ 1,071,827 $ — $ 1,071,827 December 31, 2019 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 808,622 $ — $ 873,454 $ — $ 873,454 Advances for construction 191,062 — 79,550 — 79,550 Total $ 999,684 — $ 953,004 $ — $ 953,004 |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements On November 17, 2010, Cal Water issued $100.0 million aggregate principal amount of 5.500% First Mortgage Bonds due 2040, all of which is fully and unconditionally guaranteed by the Company. As a result of this guarantee arrangement, the Company is required to present the following condensed consolidating financial information. The investments in affiliates are accounted for and presented using the “equity method” of accounting. The following tables present the Condensed Consolidating Balance Sheets as of March 31, 2020 and December 31, 2019, the Condensed Consolidating Statements of (Loss) Income for the three months ended March 31, 2020 and 2019, and the Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2020 and 2019 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% CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of March 31, 2020 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 3,395,699 $ 226,598 $ (7,197 ) $ 3,616,418 Less accumulated depreciation and amortization (1,130 ) (1,103,286 ) (67,230 ) 2,199 (1,169,447 ) Net utility plant 188 2,292,413 159,368 (4,998 ) 2,446,971 Current assets: Cash and cash equivalents 56,356 74,655 9,395 — 140,406 Receivables and unbilled revenue, net — 98,794 4,482 — 103,276 Receivables from affiliates 23,212 1,704 24 (24,940 ) — Other current assets 634 23,251 2,515 — 26,400 Total current assets 80,202 198,404 16,416 (24,940 ) 270,082 Other assets: Regulatory assets — 438,075 4,744 — 442,819 Investments in affiliates 752,501 — — (752,501 ) — Long-term affiliate notes receivable 29,579 — — (29,579 ) — Other assets 458 75,228 5,508 (221 ) 80,973 Total other assets 782,538 513,303 10,252 (782,301 ) 523,792 TOTAL ASSETS $ 862,928 $ 3,004,120 $ 186,036 $ (812,239 ) $ 3,240,845 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 755,140 $ 676,674 $ 81,031 $ (757,705 ) $ 755,140 Affiliate long-term debt — — 29,579 (29,579 ) — Long-term debt, net — 786,040 427 — 786,467 Total capitalization 755,140 1,462,714 111,037 (787,284 ) 1,541,607 Current liabilities: Current maturities of long-term debt, net — 21,743 121 — 21,864 Short-term borrowings 105,100 230,000 — — 335,100 Payables to affiliates 797 25 24,118 (24,940 ) — Accounts payable — 94,979 4,040 — 99,019 Accrued expenses and other liabilities 334 53,721 3,089 — 57,144 Total current liabilities 106,231 400,468 31,368 (24,940 ) 513,127 Unamortized investment tax credits — 1,575 — — 1,575 Deferred income taxes 1,557 213,617 3,292 (15 ) 218,451 Pension and postretirement benefits other than pensions — 260,337 — — 260,337 Regulatory liabilities and other — 261,072 7,845 — 268,917 Advances for construction — 193,568 478 — 194,046 Contributions in aid of construction — 210,769 32,016 — 242,785 TOTAL CAPITALIZATION AND LIABILITIES $ 862,928 $ 3,004,120 $ 186,036 $ (812,239 ) $ 3,240,845 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 3,332,331 $ 224,033 $ (7,197 ) $ 3,550,485 Less accumulated depreciation and amortization (1,107 ) (1,079,627 ) (65,561 ) 2,180 (1,144,115 ) Net utility plant 211 2,252,704 158,472 (5,017 ) 2,406,370 Current assets: Cash and cash equivalents 3,096 29,098 10,459 — 42,653 Receivables and unbilled revenue, net — 114,999 4,350 — 119,349 Receivables from affiliates 25,803 3,621 209 (29,633 ) — Other current assets 90 20,615 2,005 — 22,710 Total current assets 28,989 168,333 17,023 (29,633 ) 184,712 Other assets: Regulatory assets — 428,639 4,683 — 433,322 Investments in affiliates 777,170 — — (777,170 ) — Long-term affiliate notes receivable 30,060 — — (30,060 ) — Other assets 409 81,591 5,125 (221 ) 86,904 Total other assets 807,639 510,230 9,808 (807,451 ) 520,226 TOTAL ASSETS $ 836,839 $ 2,931,267 $ 185,303 $ (842,101 ) $ 3,111,308 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 779,906 $ 700,784 81,604 $ (782,388 ) $ 779,906 Affiliate long-term debt — — 30,060 (30,060 ) — Long-term debt, net — 786,310 444 — 786,754 Total capitalization 779,906 1,487,094 112,108 (812,448 ) 1,566,660 Current liabilities: Current maturities of long-term debt, net — 21,732 136 — 21,868 Short-term borrowings 55,100 120,000 — — 175,100 Payables to affiliates — 6,115 23,518 (29,633 ) — Accounts payable — 104,419 4,044 — 108,463 Accrued expenses and other liabilities 313 50,569 2,408 — 53,290 Total current liabilities 55,413 302,835 30,106 (29,633 ) 358,721 Unamortized investment tax credits — 1,575 — — 1,575 Deferred income taxes 1,520 217,847 3,243 (20 ) 222,590 Pension and postretirement benefits other than pensions — 258,907 — — 258,907 Regulatory and other liabilities — 262,859 7,397 — 270,256 Advances for construction — 190,568 494 — 191,062 Contributions in aid of construction — 209,582 31,955 — 241,537 TOTAL CAPITALIZATION AND LIABILITIES $ 836,839 $ 2,931,267 $ 185,303 $ (842,101 ) $ 3,111,308 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF (LOSS) INCOME For the three months ended March 31, 2020 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 115,392 $ 10,171 $ — $ 125,563 Operating expenses: Operations: Water production costs — 51,758 2,218 — 53,976 Administrative and general — 26,892 2,788 — 29,680 Other operations — 12,155 1,965 (146 ) 13,974 Maintenance — 6,649 424 — 7,073 Depreciation and amortization 24 22,957 1,531 (20 ) 24,492 Income tax (benefit) expense (118 ) (4,022 ) 1 202 (3,937 ) Property and other taxes — 6,426 802 — 7,228 Total operating (income) expenses (94 ) 122,815 9,729 36 132,486 Net operating income (loss) 94 (7,423 ) 442 (36 ) (6,923 ) Other income and expenses: Non-regulated revenue 555 3,591 381 (700 ) 3,827 Non-regulated expenses — (8,255 ) (199 ) — (8,454 ) Other components of net periodic benefit cost — (1,401 ) (29 ) — (1,430 ) Allowance for equity funds used during construction — 1,614 — — 1,614 Income tax (expense) benefit on other income and expenses (155 ) 918 (46 ) 196 913 Net other income (loss) 400 (3,533 ) 107 (504 ) (3,530 ) Interest: Interest expense 397 10,400 555 (554 ) 10,798 Allowance for borrowed funds used during construction — (889 ) (55 ) — (944 ) Net interest expense 397 9,511 500 (554 ) 9,854 Equity loss of subsidiaries (20,404 ) — — 20,404 — Net (loss) income $ (20,307 ) $ (20,467 ) $ 49 $ 20,418 $ (20,307 ) CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF (LOSS) INCOME For the three months ended March 31, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 116,074 $ 10,037 $ — $ 126,111 Operating expenses: Operations: Water production costs — 43,426 2,166 — 45,592 Administrative and general — 26,203 2,894 — 29,097 Other operations — 16,122 1,845 (146 ) 17,821 Maintenance — 6,223 232 — 6,455 Depreciation and amortization 23 20,887 1,479 (21 ) 22,368 Income tax (benefit) expense (135 ) (3,105 ) 31 218 (2,991 ) Property and other taxes — 6,506 787 — 7,293 Total operating (income) expenses (112 ) 116,262 9,434 51 125,635 Net operating income (loss) 112 (188 ) 603 (51 ) 476 Other income and expenses: Non-regulated revenue 613 4,628 419 (759 ) 4,901 Non-regulated expenses — (2,038 ) (181 ) — (2,219 ) Other components of net periodic benefit cost — (1,229 ) (30 ) — (1,259 ) Allowance for equity funds used during construction — 1,533 — — 1,533 Income tax expense on other income and expenses (172 ) (810 ) (58 ) 212 (828 ) Net other income 441 2,084 150 (547 ) 2,128 Interest: Interest expense 459 10,613 616 (613 ) 11,075 Allowance for borrowed funds used during construction — (776 ) (55 ) — (831 ) Net interest expense 459 9,837 561 (613 ) 10,244 Equity loss of subsidiaries (7,734 ) — — 7,734 — Net (loss) income $ (7,640 ) $ (7,941 ) $ 192 $ 7,749 $ (7,640 ) CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2020 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net (loss) income $ (20,307 ) $ (20,467 ) $ 49 $ 20,418 $ (20,307 ) Adjustments to reconcile net (loss) income to net cash provided by operating activities: Equity loss of subsidiaries 20,404 — — (20,404 ) — Dividends received from affiliates 10,315 — — (10,315 ) — Depreciation and amortization 23 23,525 1,565 (20 ) 25,093 Changes in value of life insurance contracts — 4,717 — — 4,717 Allowance for equity funds used during construction — (1,614 ) — — (1,614 ) Changes in operating assets and liabilities (522 ) (230 ) 182 — (570 ) Other changes in noncurrent assets and liabilities 704 (4,021 ) 59 6 (3,252 ) Net cash provided by operating activities 10,617 1,910 1,855 (10,315 ) 4,067 Investing activities: Utility plant expenditures — (62,671 ) (2,599 ) — (65,270 ) Investment in affiliates (6,049 ) — — 6,049 — Changes in affiliate advances 5,980 1,917 155 (8,052 ) — Issuance of affiliate short-term borrowings (3,500 ) — — 3,500 — Reduction of affiliates long-term debt 592 — — (592 ) — Net cash used in investing activities (2,977 ) (60,754 ) (2,444 ) 905 (65,270 ) Financing Activities: Short-term borrowings 50,000 120,000 — — 170,000 Repayment of short-term borrowings — (10,000 ) — — (10,000 ) Investment from affiliates — 6,049 — (6,049 ) — Changes in affiliate advances 797 (6,090 ) (2,759 ) 8,052 — Proceeds from affiliate short-term borrowings — — 3,500 (3,500 ) — Repayment of affiliates long-term borrowings — — (592 ) 592 — Repayment of long-term debt — (166 ) (31 ) — (197 ) Advances and contributions in aid of construction — 6,400 32 — 6,432 Refunds of advances for construction — (2,156 ) (1 ) — (2,157 ) Repurchase of common stock (1,373 ) — — — (1,373 ) Issuance of common stock 6,511 — — — 6,511 Dividends paid to non-affiliates (10,315 ) — — — (10,315 ) Dividends paid to affiliates — (9,691 ) (624 ) 10,315 — Net cash provided by (used in) financing activities 45,620 104,346 (475 ) 9,410 158,901 Change in cash, cash equivalents, and restricted cash 53,260 45,502 (1,064 ) — 97,698 Cash, cash equivalents, and restricted cash at beginning of period 3,096 29,679 10,523 — 43,298 Cash, cash equivalents, and restricted cash at end of period $ 56,356 $ 75,181 $ 9,459 — $ 140,996 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net (loss) income $ (7,640 ) $ (7,941 ) $ 192 $ 7,749 $ (7,640 ) Adjustments to reconcile net (loss) income to net cash provided by operating activities: Equity loss of subsidiaries 7,734 — — (7,734 ) — Dividends received from affiliates 9,493 — — (9,493 ) — Depreciation and amortization 23 21,394 1,497 (21 ) 22,893 Changes in value of life insurance contracts — (2,254 ) — — (2,254 ) Allowance for equity funds used during construction — (1,533 ) — — (1,533 ) Changes in operating assets and liabilities (195 ) (201 ) 1,551 — 1,155 Other changes in noncurrent assets and liabilities 2,476 4,951 87 6 7,520 Net cash provided by operating activities 11,891 14,416 3,327 (9,493 ) 20,141 Investing activities: Utility plant expenditures — (57,410 ) (2,471 ) — (59,881 ) Changes in affiliate advances 184 1,330 (113 ) (1,401 ) — Issuance of affiliate short-term borrowings (4,300 ) — — 4,300 — Reduction of affiliates long-term debt 481 — — (481 ) — Net cash used in investing activities (3,635 ) (56,080 ) (2,584 ) 2,418 (59,881 ) Financing Activities: Short-term borrowings — 60,000 — — 60,000 Changes in affiliate advances (17 ) 772 (2,156 ) 1,401 — Proceeds from affiliate short-term borrowings — — 4,300 (4,300 ) — Repayment of affiliates long-term borrowings — — (481 ) 481 — Repayment of long-term debt — (171 ) (55 ) — (226 ) Advances and contributions in aid for construction — 5,979 65 — 6,044 Refunds of advances for construction — (1,789 ) (1 ) — (1,790 ) Repurchase of common stock (2,074 ) — — — (2,074 ) Issuance of common stock 454 — — — 454 Dividends paid to non-affiliates (9,493 ) — — — (9,493 ) Dividends paid to affiliates — (9,185 ) (308 ) 9,493 — Net cash (used in) provided by financing activities (11,130 ) 55,606 1,364 7,075 52,915 Change in cash, cash equivalents, and restricted cash (2,874 ) 13,942 2,107 — 13,175 Cash, cash equivalents, and restricted cash at beginning of period 3,779 34,238 9,698 — 47,715 Cash, cash equivalents, and restricted cash at end of period $ 905 $ 48,180 $ 11,805 — $ 60,890 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Revenue | 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 or contract liability, which is included in "accrued expenses and other liabilities" on the consolidated balance sheets, is inconsequential. In the following table, revenue from contracts with customers is disaggregated by class of customers for the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Residential $ 92,544 $ 84,259 Business 27,693 25,481 Industrial 7,878 7,264 Public authorities 5,897 4,471 Other (a) 821 (4,065 ) Total revenue from contracts with customers $ 134,833 $ 117,410 (a) Other includes the accrued unbilled revenue. Regulatory balancing account revenue The Company’s ability to recover revenue requirements authorized by the California Public Utilities Commission (CPUC) in its triennial 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. These mechanisms include the following: The 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 MCBA, Conservation Expense Balancing Account (CEBA), PCBA, and HCBA, generally provide for recovery of the adopted levels of expenses for purchased water, purchased power, pump taxes, water conservation program costs, pension, and health care. Variances between adopted and actual costs are recorded as regulatory balancing account revenue. The WRAM, MCBA, PCBA, and HCBA are being litigated in the pending 2018 GRC, which is further discussed in Note 9. As the mechanisms are being litigated, the Company did not record regulatory assets for the WRAM, MCBA, PCBA, and HCBA for the first three months of 2020. The Company determined that these mechanisms did not meet the regulatory asset recognition criteria under accounting standards for regulated utilities. As the CEBA is not being litigated in the pending 2018 GRC, the Company recorded a regulatory liability for the CEBA for the first three months of 2020. The Company determined that the CEBA met the regulatory liability recognition criteria under accounting standards for regulated utilities. 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 table disaggregates the Company’s non-regulated revenue by source for the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Operating and maintenance revenue $ 2,499 $ 3,046 Other non-regulated revenue 765 1,296 Non-regulated revenue from contracts with customers $ 3,264 $ 4,342 Lease revenue $ 563 $ 559 Total non-regulated revenue $ 3,827 $ 4,901 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. Lease revenue is not considered revenue from contracts with customers and is recognized following operating lease standards. The Company is the lessor in operating lease agreements with telecommunications companies under which cellular phone antennas are placed on the Company's property. Allowance for credit losses The Company measures expected credit losses for Customer Receivables, Other Receivables, and Unbilled Revenue on an aggregated level. These receivables are generally trade receivables due in one year or less or expected to be billed and collected in one year or less. The expected credit losses for Other Receivables is inconsequential. Although the Company has residential, business, industrial, public authorities, and other customers, the risk characteristics of each of these customer classes is similar as the Company has determined that the differences in the customer write-off behavior among its customer classes is inconsequential. The overall risks related to the Company’s receivables is low as water and wastewater services are seen as essential services. The estimate for the allowance for credit losses is based off of a historical loss ratio that is adjusted for current conditions and reasonable and supportable forecasts. For the first quarter of 2020, the estimate includes an adjustment made for the effects of COVID-19 pandemic. As the states in which the Company operates have issued ‘shelter-in-place” and social distancing ordinances, the Company is expecting segments of its customer base to experience employment layoffs and business closures which will negatively impact their ability to pay utility bills. The Company has also ceased all shutoffs for nonpayment during the pandemic. The following table presents the activity in the allowance for credit losses for the period ended March 31, 2020: As of March 31, 2020 Allowance for credit losses Customer Receivables Unbilled Revenue Beginning balance 374 397 Provision for credit loss expense 263 244 Write-offs (242 ) (277 ) Recoveries 41 38 Total ending allowance balance $ 436 $ 402 |
Adoption of New Accounting Standards and New Accounting Standards Issued But Not Yet Adopted | Adoption of New Accounting Standards In June of 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changed the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model required recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. ASU 2016-13 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company adopted the standard utilizing the modified retrospective method for its trade receivables and unbilled revenue on January 1, 2020. Based on the composition of the Company’s trade receivables and unbilled revenue, and expected future losses, the adoption of ASU 2016-13 did not have a material impact on its consolidated financial statements. In January of 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminated the second step of the goodwill impairment test that required a hypothetical purchase price allocation to measure goodwill impairment. Under the new guidance, a goodwill impairment loss will be measured at the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. The Company adopted the standard on January 1, 2020 and the adoption of the standard did not have a material impact on its consolidated financial statements. In August of 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure for Fair Value Measurement, which modified the disclosure requirements on fair value measurements. The modifications in this update eliminated, amended, and added disclosure requirements for fair value measurements. ASU 2018-13 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company adopted the standard in part prospectively and in part retrospectively, in accordance with the requirements of ASU 2018-13, on January 1, 2020. Since the Company, does not have level 3 fair value measurements or transfers between level 1 and level 2 fair value measurements, the adoption of the standard did not have a material impact on its footnote disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Company’s non-regulated revenue by source for the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Operating and maintenance revenue $ 2,499 $ 3,046 Other non-regulated revenue 765 1,296 Non-regulated revenue from contracts with customers $ 3,264 $ 4,342 Lease revenue $ 563 $ 559 Total non-regulated revenue $ 3,827 $ 4,901 The following table disaggregates the Company’s operating revenue by source for the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Revenue from contracts with customers $ 134,833 $ 117,410 Regulatory balancing account revenue (a) (9,270 ) 8,701 Total operating revenue $ 125,563 $ 126,111 (a) As further discussed below, no amounts were recorded for the Company’s Water Revenue Adjustment Mechanism (WRAM), Modified Cost Balancing Account (MCBA), Pension Cost Balancing Account (PCBA), and Health Cost Balancing Account (HCBA) for the three months ended March 31, 2020 due to the delay in the resolution of the 2018 General Rate Case (GRC). In the following table, revenue from contracts with customers is disaggregated by class of customers for the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Residential $ 92,544 $ 84,259 Business 27,693 25,481 Industrial 7,878 7,264 Public authorities 5,897 4,471 Other (a) 821 (4,065 ) Total revenue from contracts with customers $ 134,833 $ 117,410 (a) Other includes the accrued unbilled revenue. |
Financing Receivable, Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses for the period ended March 31, 2020: As of March 31, 2020 Allowance for credit losses Customer Receivables Unbilled Revenue Beginning balance 374 397 Provision for credit loss expense 263 244 Write-offs (242 ) (277 ) Recoveries 41 38 Total ending allowance balance $ 436 $ 402 |
Schedule of Cash and Cash Equivalents | 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: March 31, 2020 December 31, 2019 Cash and cash equivalents 140,406 42,653 Restricted cash (included in "taxes, prepaid expenses and other assets") 590 645 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 140,996 $ 43,298 |
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: March 31, 2020 December 31, 2019 Cash and cash equivalents 140,406 42,653 Restricted cash (included in "taxes, prepaid expenses and other assets") 590 645 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 140,996 $ 43,298 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of changes in total common stockholders' equity | The Company’s changes in total common stockholders’ equity for the three months ended March 31, 2020 and 2019 were as follows: Three months ended March 31, 2020 Common Stock Additional Retained Total Shares Amount (In thousands) Balance at January 1, 2020 48,532 $ 485 $ 362,275 $ 417,146 $ 779,906 Net loss (20,307 ) (20,307 ) Issuance of common stock 210 2 7,227 7,229 Repurchase of common stock (28 ) — (1,373 ) (1,373 ) Dividends paid on common stock ($0.2125 per share) (10,315 ) (10,315 ) Balance at March 31, 2020 48,714 487 368,129 386,524 755,140 Three months ended March 31, 2019 Common Stock Additional Retained Total Shares Amount (In thousands) Balance at January 1, 2019 48,065 $ 481 $ 337,623 $ 392,053 $ 730,157 Net loss (7,640 ) (7,640 ) Issuance of common stock 109 — 3,179 — 3,179 Repurchase of common stock (40 ) — (2,074 ) — (2,074 ) Dividends paid on common stock ($0.1975 per share) (9,493 ) (9,493 ) Balance at March 31, 2019 48,134 481 338,728 374,920 714,129 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of SARs which were dilutive | The computations of basic and diluted loss per share are noted in the table below. Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding during the period. 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 March 31 2020 2019 (In thousands, except per share data) Net loss available to common stockholders $ (20,307 ) $ (7,640 ) Weighted average common shares outstanding, basic 48,583 48,086 Weighted average common shares outstanding, dilutive 48,583 48,086 Loss per share - basic $ (0.42 ) $ (0.16 ) Loss per share - diluted $ (0.42 ) $ (0.16 ) |
Pension Plan and Other Postre_2
Pension Plan and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit costs for the pension plans and other postretirement benefits | The following tables list components of net periodic benefit costs for the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits. Three Months Ended March 31 Pension Plan Other Benefits 2020 2019 2020 2019 Service cost $ 8,811 $ 6,565 $ 2,106 $ 1,762 Interest cost 6,433 6,642 1,210 1,337 Expected return on plan assets (8,265 ) (7,567 ) (1,811 ) (1,435 ) Amortization of prior service cost 1,057 1,262 49 49 Recognized net actuarial loss 3,196 1,312 14 104 Net periodic benefit cost $ 11,232 $ 8,214 $ 1,568 $ 1,817 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes is shown in the table below: Three Months Ended March 31 2020 2019 Income tax benefit $ (4,850 ) $ (2,163 ) |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Regulated Operations [Abstract] | |
Schedule of regulatory assets and liabilities | Regulatory assets and liabilities were comprised of the following as of March 31, 2020 and December 31, 2019 : Recovery Period March 31, 2020 December 31, 2019 Regulatory Assets Pension and retiree group health Indefinitely $ 208,157 $ 208,321 Property-related temporary differences (tax benefits flowed through to customers) Indefinitely 105,600 104,931 Other accrued benefits Indefinitely 20,885 20,030 Net WRAM and MCBA long-term accounts receivable 1-2 years 31,693 25,465 Asset retirement obligations, net Indefinitely 20,045 19,567 Interim rates long-term accounts receivable 1 year 4,642 4,642 Tank coating 10 years 14,426 13,535 Recoverable property losses 10 years 4,856 5,000 PCBA 1 year 21,465 21,465 Other components of net periodic benefit cost Indefinitely 5,503 5,145 Other regulatory assets Various 5,547 5,221 Total Regulatory Assets $ 442,819 $ 433,322 Regulatory Liabilities Future tax benefits due to customers $ 194,459 $ 194,501 HCBA 4,271 4,271 CEBA 559 2,742 Net WRAM and MCBA long-term payable 135 211 Tax accounting memorandum account 853 806 Cost of capital memorandum account 154 151 1,2,3 trichloropropane (TCP) settlement proceeds 9,491 8,426 Other regulatory liabilities 345 305 Total Regulatory Liabilities $ 210,267 $ 211,413 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of long-term debt, including current maturities and advances for construction | Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. March 31, 2020 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 808,331 — $ 989,749 — $ 989,749 Advances for construction 194,046 — 82,078 — 82,078 Total $ 1,002,377 $ — $ 1,071,827 $ — $ 1,071,827 December 31, 2019 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 808,622 $ — $ 873,454 $ — $ 873,454 Advances for construction 191,062 — 79,550 — 79,550 Total $ 999,684 — $ 953,004 $ — $ 953,004 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Consolidating Balance Sheet | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of March 31, 2020 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 3,395,699 $ 226,598 $ (7,197 ) $ 3,616,418 Less accumulated depreciation and amortization (1,130 ) (1,103,286 ) (67,230 ) 2,199 (1,169,447 ) Net utility plant 188 2,292,413 159,368 (4,998 ) 2,446,971 Current assets: Cash and cash equivalents 56,356 74,655 9,395 — 140,406 Receivables and unbilled revenue, net — 98,794 4,482 — 103,276 Receivables from affiliates 23,212 1,704 24 (24,940 ) — Other current assets 634 23,251 2,515 — 26,400 Total current assets 80,202 198,404 16,416 (24,940 ) 270,082 Other assets: Regulatory assets — 438,075 4,744 — 442,819 Investments in affiliates 752,501 — — (752,501 ) — Long-term affiliate notes receivable 29,579 — — (29,579 ) — Other assets 458 75,228 5,508 (221 ) 80,973 Total other assets 782,538 513,303 10,252 (782,301 ) 523,792 TOTAL ASSETS $ 862,928 $ 3,004,120 $ 186,036 $ (812,239 ) $ 3,240,845 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 755,140 $ 676,674 $ 81,031 $ (757,705 ) $ 755,140 Affiliate long-term debt — — 29,579 (29,579 ) — Long-term debt, net — 786,040 427 — 786,467 Total capitalization 755,140 1,462,714 111,037 (787,284 ) 1,541,607 Current liabilities: Current maturities of long-term debt, net — 21,743 121 — 21,864 Short-term borrowings 105,100 230,000 — — 335,100 Payables to affiliates 797 25 24,118 (24,940 ) — Accounts payable — 94,979 4,040 — 99,019 Accrued expenses and other liabilities 334 53,721 3,089 — 57,144 Total current liabilities 106,231 400,468 31,368 (24,940 ) 513,127 Unamortized investment tax credits — 1,575 — — 1,575 Deferred income taxes 1,557 213,617 3,292 (15 ) 218,451 Pension and postretirement benefits other than pensions — 260,337 — — 260,337 Regulatory liabilities and other — 261,072 7,845 — 268,917 Advances for construction — 193,568 478 — 194,046 Contributions in aid of construction — 210,769 32,016 — 242,785 TOTAL CAPITALIZATION AND LIABILITIES $ 862,928 $ 3,004,120 $ 186,036 $ (812,239 ) $ 3,240,845 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 3,332,331 $ 224,033 $ (7,197 ) $ 3,550,485 Less accumulated depreciation and amortization (1,107 ) (1,079,627 ) (65,561 ) 2,180 (1,144,115 ) Net utility plant 211 2,252,704 158,472 (5,017 ) 2,406,370 Current assets: Cash and cash equivalents 3,096 29,098 10,459 — 42,653 Receivables and unbilled revenue, net — 114,999 4,350 — 119,349 Receivables from affiliates 25,803 3,621 209 (29,633 ) — Other current assets 90 20,615 2,005 — 22,710 Total current assets 28,989 168,333 17,023 (29,633 ) 184,712 Other assets: Regulatory assets — 428,639 4,683 — 433,322 Investments in affiliates 777,170 — — (777,170 ) — Long-term affiliate notes receivable 30,060 — — (30,060 ) — Other assets 409 81,591 5,125 (221 ) 86,904 Total other assets 807,639 510,230 9,808 (807,451 ) 520,226 TOTAL ASSETS $ 836,839 $ 2,931,267 $ 185,303 $ (842,101 ) $ 3,111,308 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 779,906 $ 700,784 81,604 $ (782,388 ) $ 779,906 Affiliate long-term debt — — 30,060 (30,060 ) — Long-term debt, net — 786,310 444 — 786,754 Total capitalization 779,906 1,487,094 112,108 (812,448 ) 1,566,660 Current liabilities: Current maturities of long-term debt, net — 21,732 136 — 21,868 Short-term borrowings 55,100 120,000 — — 175,100 Payables to affiliates — 6,115 23,518 (29,633 ) — Accounts payable — 104,419 4,044 — 108,463 Accrued expenses and other liabilities 313 50,569 2,408 — 53,290 Total current liabilities 55,413 302,835 30,106 (29,633 ) 358,721 Unamortized investment tax credits — 1,575 — — 1,575 Deferred income taxes 1,520 217,847 3,243 (20 ) 222,590 Pension and postretirement benefits other than pensions — 258,907 — — 258,907 Regulatory and other liabilities — 262,859 7,397 — 270,256 Advances for construction — 190,568 494 — 191,062 Contributions in aid of construction — 209,582 31,955 — 241,537 TOTAL CAPITALIZATION AND LIABILITIES $ 836,839 $ 2,931,267 $ 185,303 $ (842,101 ) $ 3,111,308 |
Schedule of Condensed Consolidating Statement of Income | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF (LOSS) INCOME For the three months ended March 31, 2020 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 115,392 $ 10,171 $ — $ 125,563 Operating expenses: Operations: Water production costs — 51,758 2,218 — 53,976 Administrative and general — 26,892 2,788 — 29,680 Other operations — 12,155 1,965 (146 ) 13,974 Maintenance — 6,649 424 — 7,073 Depreciation and amortization 24 22,957 1,531 (20 ) 24,492 Income tax (benefit) expense (118 ) (4,022 ) 1 202 (3,937 ) Property and other taxes — 6,426 802 — 7,228 Total operating (income) expenses (94 ) 122,815 9,729 36 132,486 Net operating income (loss) 94 (7,423 ) 442 (36 ) (6,923 ) Other income and expenses: Non-regulated revenue 555 3,591 381 (700 ) 3,827 Non-regulated expenses — (8,255 ) (199 ) — (8,454 ) Other components of net periodic benefit cost — (1,401 ) (29 ) — (1,430 ) Allowance for equity funds used during construction — 1,614 — — 1,614 Income tax (expense) benefit on other income and expenses (155 ) 918 (46 ) 196 913 Net other income (loss) 400 (3,533 ) 107 (504 ) (3,530 ) Interest: Interest expense 397 10,400 555 (554 ) 10,798 Allowance for borrowed funds used during construction — (889 ) (55 ) — (944 ) Net interest expense 397 9,511 500 (554 ) 9,854 Equity loss of subsidiaries (20,404 ) — — 20,404 — Net (loss) income $ (20,307 ) $ (20,467 ) $ 49 $ 20,418 $ (20,307 ) CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF (LOSS) INCOME For the three months ended March 31, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 116,074 $ 10,037 $ — $ 126,111 Operating expenses: Operations: Water production costs — 43,426 2,166 — 45,592 Administrative and general — 26,203 2,894 — 29,097 Other operations — 16,122 1,845 (146 ) 17,821 Maintenance — 6,223 232 — 6,455 Depreciation and amortization 23 20,887 1,479 (21 ) 22,368 Income tax (benefit) expense (135 ) (3,105 ) 31 218 (2,991 ) Property and other taxes — 6,506 787 — 7,293 Total operating (income) expenses (112 ) 116,262 9,434 51 125,635 Net operating income (loss) 112 (188 ) 603 (51 ) 476 Other income and expenses: Non-regulated revenue 613 4,628 419 (759 ) 4,901 Non-regulated expenses — (2,038 ) (181 ) — (2,219 ) Other components of net periodic benefit cost — (1,229 ) (30 ) — (1,259 ) Allowance for equity funds used during construction — 1,533 — — 1,533 Income tax expense on other income and expenses (172 ) (810 ) (58 ) 212 (828 ) Net other income 441 2,084 150 (547 ) 2,128 Interest: Interest expense 459 10,613 616 (613 ) 11,075 Allowance for borrowed funds used during construction — (776 ) (55 ) — (831 ) Net interest expense 459 9,837 561 (613 ) 10,244 Equity loss of subsidiaries (7,734 ) — — 7,734 — Net (loss) income $ (7,640 ) $ (7,941 ) $ 192 $ 7,749 $ (7,640 ) |
Schedule of Condensed Consolidating Statement of Cash Flows | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2020 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net (loss) income $ (20,307 ) $ (20,467 ) $ 49 $ 20,418 $ (20,307 ) Adjustments to reconcile net (loss) income to net cash provided by operating activities: Equity loss of subsidiaries 20,404 — — (20,404 ) — Dividends received from affiliates 10,315 — — (10,315 ) — Depreciation and amortization 23 23,525 1,565 (20 ) 25,093 Changes in value of life insurance contracts — 4,717 — — 4,717 Allowance for equity funds used during construction — (1,614 ) — — (1,614 ) Changes in operating assets and liabilities (522 ) (230 ) 182 — (570 ) Other changes in noncurrent assets and liabilities 704 (4,021 ) 59 6 (3,252 ) Net cash provided by operating activities 10,617 1,910 1,855 (10,315 ) 4,067 Investing activities: Utility plant expenditures — (62,671 ) (2,599 ) — (65,270 ) Investment in affiliates (6,049 ) — — 6,049 — Changes in affiliate advances 5,980 1,917 155 (8,052 ) — Issuance of affiliate short-term borrowings (3,500 ) — — 3,500 — Reduction of affiliates long-term debt 592 — — (592 ) — Net cash used in investing activities (2,977 ) (60,754 ) (2,444 ) 905 (65,270 ) Financing Activities: Short-term borrowings 50,000 120,000 — — 170,000 Repayment of short-term borrowings — (10,000 ) — — (10,000 ) Investment from affiliates — 6,049 — (6,049 ) — Changes in affiliate advances 797 (6,090 ) (2,759 ) 8,052 — Proceeds from affiliate short-term borrowings — — 3,500 (3,500 ) — Repayment of affiliates long-term borrowings — — (592 ) 592 — Repayment of long-term debt — (166 ) (31 ) — (197 ) Advances and contributions in aid of construction — 6,400 32 — 6,432 Refunds of advances for construction — (2,156 ) (1 ) — (2,157 ) Repurchase of common stock (1,373 ) — — — (1,373 ) Issuance of common stock 6,511 — — — 6,511 Dividends paid to non-affiliates (10,315 ) — — — (10,315 ) Dividends paid to affiliates — (9,691 ) (624 ) 10,315 — Net cash provided by (used in) financing activities 45,620 104,346 (475 ) 9,410 158,901 Change in cash, cash equivalents, and restricted cash 53,260 45,502 (1,064 ) — 97,698 Cash, cash equivalents, and restricted cash at beginning of period 3,096 29,679 10,523 — 43,298 Cash, cash equivalents, and restricted cash at end of period $ 56,356 $ 75,181 $ 9,459 — $ 140,996 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net (loss) income $ (7,640 ) $ (7,941 ) $ 192 $ 7,749 $ (7,640 ) Adjustments to reconcile net (loss) income to net cash provided by operating activities: Equity loss of subsidiaries 7,734 — — (7,734 ) — Dividends received from affiliates 9,493 — — (9,493 ) — Depreciation and amortization 23 21,394 1,497 (21 ) 22,893 Changes in value of life insurance contracts — (2,254 ) — — (2,254 ) Allowance for equity funds used during construction — (1,533 ) — — (1,533 ) Changes in operating assets and liabilities (195 ) (201 ) 1,551 — 1,155 Other changes in noncurrent assets and liabilities 2,476 4,951 87 6 7,520 Net cash provided by operating activities 11,891 14,416 3,327 (9,493 ) 20,141 Investing activities: Utility plant expenditures — (57,410 ) (2,471 ) — (59,881 ) Changes in affiliate advances 184 1,330 (113 ) (1,401 ) — Issuance of affiliate short-term borrowings (4,300 ) — — 4,300 — Reduction of affiliates long-term debt 481 — — (481 ) — Net cash used in investing activities (3,635 ) (56,080 ) (2,584 ) 2,418 (59,881 ) Financing Activities: Short-term borrowings — 60,000 — — 60,000 Changes in affiliate advances (17 ) 772 (2,156 ) 1,401 — Proceeds from affiliate short-term borrowings — — 4,300 (4,300 ) — Repayment of affiliates long-term borrowings — — (481 ) 481 — Repayment of long-term debt — (171 ) (55 ) — (226 ) Advances and contributions in aid for construction — 5,979 65 — 6,044 Refunds of advances for construction — (1,789 ) (1 ) — (1,790 ) Repurchase of common stock (2,074 ) — — — (2,074 ) Issuance of common stock 454 — — — 454 Dividends paid to non-affiliates (9,493 ) — — — (9,493 ) Dividends paid to affiliates — (9,185 ) (308 ) 9,493 — Net cash (used in) provided by financing activities (11,130 ) 55,606 1,364 7,075 52,915 Change in cash, cash equivalents, and restricted cash (2,874 ) 13,942 2,107 — 13,175 Cash, cash equivalents, and restricted cash at beginning of period 3,779 34,238 9,698 — 47,715 Cash, cash equivalents, and restricted cash at end of period $ 905 $ 48,180 $ 11,805 — $ 60,890 |
Organization and Operations a_2
Organization and Operations and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Narrative (Details)
Narrative (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Maximum collection period | 24 months |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 134,833 | $ 117,410 |
Total operating revenue | 125,563 | 126,111 |
Total non-regulated revenue | 3,827 | 4,901 |
Regulated Water and WasteWater Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 134,833 | 117,410 |
Regulatory balancing account revenue | (9,270) | 8,701 |
Total operating revenue | 125,563 | 126,111 |
Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 92,544 | 84,259 |
Business | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 27,693 | 25,481 |
Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 7,878 | 7,264 |
Public authorities | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 5,897 | 4,471 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 821 | (4,065) |
Operating and maintenance revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 2,499 | 3,046 |
Other non-regulated revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 765 | 1,296 |
Non-Regulated Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,264 | 4,342 |
Lease Income | 563 | 559 |
Total non-regulated revenue | $ 3,827 | $ 4,901 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Allowance for credit losses (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Unbilled Revenue | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 397 |
Provision for credit loss expense | 244 |
Write-offs | (277) |
Recoveries | 38 |
Total ending allowance balance | 402 |
Customer Receivables | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 374 |
Provision for credit loss expense | 263 |
Write-offs | (242) |
Recoveries | 41 |
Total ending allowance balance | $ 436 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 140,406 | $ 42,653 | ||
Restricted cash (included in taxes, prepaid expenses and other assets) | 590 | 645 | ||
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | $ 140,996 | $ 43,298 | $ 60,890 | $ 47,715 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock-based Compensation | ||
Recorded compensation costs for the RSAs and RSUs | $ 0.8 | $ 2.7 |
RSAs | ||
Stock-based Compensation | ||
Granted (in shares) | 39,915 | 36,183 |
Canceled (in shares) | 5,034 | 8,334 |
Weighted average grant date fair value (in dollars per share) | $ 51.41 | $ 52.83 |
RSUs | ||
Stock-based Compensation | ||
Granted (in shares) | 32,720 | 26,473 |
Awards issued (in shares) | 41,731 | 62,726 |
Canceled (in shares) | 22,936 | 31,177 |
Weighted average grant date fair value (in dollars per share) | $ 51.41 | $ 52.83 |
Performance period | 3 years | |
Employees | RSAs | ||
Stock-based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 36 months | |
Director [Member] | RSAs | ||
Stock-based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 12 months |
Equity Narrative (Details)
Equity Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)shares | |
Equity [Abstract] | |
Sale of Stock, Number of Shares Issued in Transaction | shares | 115,834 |
Proceeds from sale of common stock | $ 6 |
Payments for commissions | 0.1 |
Equity issuance costs | $ 0.1 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | $ 779,906 | $ 730,157 |
Net loss | (20,307) | (7,640) |
Issuance of common stock | 7,229 | 3,179 |
Repurchase of common stock | (1,373) | (2,074) |
Dividends paid on common stock | $ (10,315) | $ (9,493) |
Dividends paid on common stock (in dollars per share) | $ 0.2125 | $ 0.1975 |
Balance at end of period (in shares) | 48,714,000 | 48,532,000 |
Balance at end of period | $ 755,140 | $ 714,129 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period (in shares) | 48,532,000 | 48,065,000 |
Balance at beginning of period | $ 485 | $ 481 |
Issuance of common stock (in shares) | 210,000 | 109,000 |
Issuance of common stock | $ 2 | $ 0 |
Repurchase of common stock (in shares) | (28,000) | (40,000) |
Balance at end of period (in shares) | 48,714,000 | 48,134,000 |
Balance at end of period | $ 487 | $ 481 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | 362,275 | 337,623 |
Issuance of common stock | 7,227 | 3,179 |
Repurchase of common stock | (1,373) | (2,074) |
Balance at end of period | 368,129 | 338,728 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | 417,146 | 392,053 |
Net loss | (20,307) | (7,640) |
Dividends paid on common stock | (10,315) | (9,493) |
Balance at end of period | $ 386,524 | $ 374,920 |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss available to common stockholders | $ (20,307) | $ (7,640) |
Weighted average common shares outstanding, basic (in shares) | 48,583 | 48,086 |
Weighed average common shares outstanding, dilutive (in shares) | 48,583 | 48,086 |
Earnings per share - basic (in dollars per share) | $ (0.42) | $ (0.16) |
Earnings per share - diluted (in dollars per share) | $ (0.42) | $ (0.16) |
Pension Plan and Other Postre_3
Pension Plan and Other Postretirement Benefits (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Plan | ||
Pension Plan and Other Postretirement Benefits | ||
Employer cash contributions | $ 7,900,000 | $ 0 |
Estimated cash contributions in the current fiscal year | 38,000,000 | |
Components of the pension plans and other postretirement benefits | ||
Service cost | 8,811,000 | 6,565,000 |
Interest cost | 6,433,000 | 6,642,000 |
Expected return on plan assets | (8,265,000) | (7,567,000) |
Amortization of prior service cost | 1,057,000 | 1,262,000 |
Recognized net actuarial loss | 3,196,000 | 1,312,000 |
Net periodic benefit cost | 11,232,000 | 8,214,000 |
Other Benefits | ||
Pension Plan and Other Postretirement Benefits | ||
Employer cash contributions | 2,200,000 | 1,400,000 |
Estimated cash contributions in the current fiscal year | 7,500,000 | |
Components of the pension plans and other postretirement benefits | ||
Service cost | 2,106,000 | 1,762,000 |
Interest cost | 1,210,000 | 1,337,000 |
Expected return on plan assets | (1,811,000) | (1,435,000) |
Amortization of prior service cost | 49,000 | 49,000 |
Recognized net actuarial loss | 14,000 | 104,000 |
Net periodic benefit cost | $ 1,568,000 | $ 1,817,000 |
Short-term and Long-term Borr_2
Short-term and Long-term Borrowings (Details) - Revolving Credit Facility - USD ($) | Mar. 29, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 550,000,000 | |||
Debt instrument, term | 5 years | |||
Average borrowing rate | 2.59% | 3.22% | ||
Parent Company | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 150,000,000 | |||
Incremental expansion of borrowing capacity | 50,000,000 | |||
Outstanding borrowings | $ 105,100,000 | $ 55,100,000 | ||
Cal Water | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 400,000,000 | |||
Incremental expansion of borrowing capacity | $ 150,000,000 | |||
Outstanding borrowings | $ 230,000,000 | $ 120,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Income tax expense increase (decrease) | $ (2,700) | ||
Income tax benefit | (4,850) | $ (2,163) | |
Pre-tax loss increase (decrease) | (15,400) | ||
Ratepayer net refund | 107,000 | ||
Unrecognized tax benefits | 11,700 | 10,100 | |
Tax benefits that, if recognized, would affect the effective tax rate | $ 3,300 | $ 3,000 | |
Forecast | |||
Income Taxes [Line Items] | |||
Effective tax rate estimate | 19.30% |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 19 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021 | Apr. 01, 2020 | Dec. 31, 2019 | |
Regulatory Assets and Liabilities | ||||
Total Regulatory Assets | $ 442,819 | $ 433,322 | ||
Total Regulatory Liabilities | 210,267 | 211,413 | ||
Short-term portion of the regulatory assets | 24,970 | 38,225 | ||
Short-term portion of the regulatory liabilities | 3,474 | 4,462 | ||
Property-related temporary differences (tax benefits flowed through to customers) | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Liabilities | 194,459 | 194,501 | ||
HCBA | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Liabilities | 4,271 | 4,271 | ||
CEBA | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Liabilities | 559 | 2,742 | ||
Net WRAM and MCBA long-term payable | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Liabilities | 135 | 211 | ||
Tax accounting memorandum account | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Liabilities | 853 | 806 | ||
Cost of capital memorandum account | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Liabilities | 154 | 151 | ||
1,2,3 trichloropropane (TCP) settlement proceeds | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Liabilities | 9,491 | 8,426 | ||
Other regulatory liabilities | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Liabilities | 345 | 305 | ||
Pension and retiree group health | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Assets | 208,157 | 208,321 | ||
Property-related temporary differences (tax benefits flowed through to customers) | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Assets | 105,600 | 104,931 | ||
Other accrued benefits | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Assets | 20,885 | 20,030 | ||
Net WRAM and MCBA long-term accounts receivable | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Assets | 31,693 | 25,465 | ||
Asset retirement obligations, net | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Assets | $ 20,045 | 19,567 | ||
Interim rates long-term accounts receivable | ||||
Regulatory Assets and Liabilities | ||||
Recovery Period | 1 year | |||
Total Regulatory Assets | $ 4,642 | 4,642 | ||
Tank coating | ||||
Regulatory Assets and Liabilities | ||||
Recovery Period | 10 years | |||
Total Regulatory Assets | $ 14,426 | 13,535 | ||
Recoverable property losses | ||||
Regulatory Assets and Liabilities | ||||
Recovery Period | 10 years | |||
Total Regulatory Assets | $ 4,856 | 5,000 | ||
PCBA | ||||
Regulatory Assets and Liabilities | ||||
Recovery Period | 1 year | |||
Total Regulatory Assets | $ 21,465 | 21,465 | ||
Other components of net periodic benefit cost | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Assets | 5,503 | 5,145 | ||
Other regulatory assets | ||||
Regulatory Assets and Liabilities | ||||
Total Regulatory Assets | $ 5,547 | $ 5,221 | ||
Minimum | Net WRAM and MCBA long-term accounts receivable | ||||
Regulatory Assets and Liabilities | ||||
Recovery Period | 1 year | |||
Maximum | Net WRAM and MCBA long-term accounts receivable | ||||
Regulatory Assets and Liabilities | ||||
Recovery Period | 2 years | |||
Forecast | ||||
Regulatory Assets and Liabilities | ||||
Amount of construction work in process included in rate base | $ 148,000 | |||
Forecast | 2019-2021 | Minimum | ||||
Regulatory Assets and Liabilities | ||||
Amount of construction work in process included in rate base | $ 609,000 | |||
Payments for Capital Improvements | 809,000 | |||
Forecast | 2019-2021 | Maximum | ||||
Regulatory Assets and Liabilities | ||||
Amount of construction work in process included in rate base | 628,000 | |||
Payments for Capital Improvements | $ 828,000 | |||
Forecast | 2018 | ||||
Regulatory Assets and Liabilities | ||||
Amount of construction work in process included in rate base | $ 200,000 |
Commitments and Contingencies -
Commitments and Contingencies - Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Contingency loss recognized liability | $ 2 | $ 2.5 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value of Financial Assets and Liabilities | ||
Risk premium (as a percent) | 1.83% | |
Advances for construction | $ 194,046 | $ 191,062 |
Cost | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 808,331 | 808,622 |
Advances for construction | 194,046 | 191,062 |
Total | 1,002,377 | 999,684 |
Total | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 989,749 | 873,454 |
Advances for construction | 82,078 | 79,550 |
Total | 1,071,827 | 953,004 |
Total | Level 1 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 0 | 0 |
Advances for construction | 0 | 0 |
Total | 0 | 0 |
Total | Level 2 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 989,749 | 873,454 |
Advances for construction | 82,078 | 79,550 |
Total | 1,071,827 | 953,004 |
Total | Level 3 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 0 | 0 |
Advances for construction | 0 | 0 |
Total | $ 0 | $ 0 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements - Additional Information (Details) - USD ($) | Mar. 31, 2020 | Nov. 17, 2010 |
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, 5.500% due 2040 | Cal Water | ||
Debt Instrument [Line Items] | ||
Debt issued | $ 100,000,000 | |
Interest rate | 5.50% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Utility plant: | ||||
Utility plant | $ 3,616,418 | $ 3,550,485 | ||
Less accumulated depreciation and amortization | (1,169,447) | (1,144,115) | ||
Net utility plant | 2,446,971 | 2,406,370 | ||
Current assets: | ||||
Cash and cash equivalents | 140,406 | 42,653 | ||
Receivables and unbilled revenue, net | 103,276 | 119,349 | ||
Receivables from affiliates | 0 | 0 | ||
Other current assets | 26,400 | 22,710 | ||
Total current assets | 270,082 | 184,712 | ||
Other assets: | ||||
Regulatory assets | 442,819 | 433,322 | ||
Investments in affiliates | 0 | 0 | ||
Long-term affiliate notes receivable | 0 | 0 | ||
Other assets | 80,973 | 86,904 | ||
Total other assets | 523,792 | 520,226 | ||
TOTAL ASSETS | 3,240,845 | 3,111,308 | ||
Capitalization: | ||||
Common stockholders’ equity | 755,140 | 779,906 | $ 714,129 | $ 730,157 |
Affiliate long-term debt | 0 | 0 | ||
Long-term debt, net | 786,467 | 786,754 | ||
Total capitalization | 1,541,607 | 1,566,660 | ||
Current liabilities: | ||||
Current maturities of long-term debt, net | 21,864 | 21,868 | ||
Short-term borrowings | 335,100 | 175,100 | ||
Payables to affiliates | 0 | 0 | ||
Accounts payable | 99,019 | 108,463 | ||
Accrued expenses and other liabilities | 57,144 | 53,290 | ||
Total current liabilities | 513,127 | 358,721 | ||
Unamortized investment tax credits | 1,575 | 1,575 | ||
Deferred income taxes | 218,451 | 222,590 | ||
Pension and postretirement benefits other than pensions | 260,337 | 258,907 | ||
Regulatory liabilities and other | 268,917 | 270,256 | ||
Advances for construction | 194,046 | 191,062 | ||
Contributions in aid of construction | 242,785 | 241,537 | ||
TOTAL CAPITALIZATION AND LIABILITIES | 3,240,845 | 3,111,308 | ||
Consolidating Adjustments | ||||
Utility plant: | ||||
Utility plant | (7,197) | (7,197) | ||
Less accumulated depreciation and amortization | 2,199 | 2,180 | ||
Net utility plant | (4,998) | (5,017) | ||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables and unbilled revenue, net | 0 | 0 | ||
Receivables from affiliates | (24,940) | (29,633) | ||
Other current assets | 0 | 0 | ||
Total current assets | (24,940) | (29,633) | ||
Other assets: | ||||
Regulatory assets | 0 | 0 | ||
Investments in affiliates | (752,501) | (777,170) | ||
Long-term affiliate notes receivable | (29,579) | (30,060) | ||
Other assets | (221) | (221) | ||
Total other assets | (782,301) | (807,451) | ||
TOTAL ASSETS | (812,239) | (842,101) | ||
Capitalization: | ||||
Common stockholders’ equity | (757,705) | (782,388) | ||
Affiliate long-term debt | (29,579) | (30,060) | ||
Long-term debt, net | 0 | 0 | ||
Total capitalization | (787,284) | (812,448) | ||
Current liabilities: | ||||
Current maturities of long-term debt, net | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Payables to affiliates | (24,940) | (29,633) | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Total current liabilities | (24,940) | (29,633) | ||
Unamortized investment tax credits | 0 | 0 | ||
Deferred income taxes | (15) | (20) | ||
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 | (812,239) | (842,101) | ||
Parent Company | Reportable Legal Entities | ||||
Utility plant: | ||||
Utility plant | 1,318 | 1,318 | ||
Less accumulated depreciation and amortization | (1,130) | (1,107) | ||
Net utility plant | 188 | 211 | ||
Current assets: | ||||
Cash and cash equivalents | 56,356 | 3,096 | ||
Receivables and unbilled revenue, net | 0 | 0 | ||
Receivables from affiliates | 23,212 | 25,803 | ||
Other current assets | 634 | 90 | ||
Total current assets | 80,202 | 28,989 | ||
Other assets: | ||||
Regulatory assets | 0 | 0 | ||
Investments in affiliates | 752,501 | 777,170 | ||
Long-term affiliate notes receivable | 29,579 | 30,060 | ||
Other assets | 458 | 409 | ||
Total other assets | 782,538 | 807,639 | ||
TOTAL ASSETS | 862,928 | 836,839 | ||
Capitalization: | ||||
Common stockholders’ equity | 755,140 | 779,906 | ||
Affiliate long-term debt | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Total capitalization | 755,140 | 779,906 | ||
Current liabilities: | ||||
Current maturities of long-term debt, net | 0 | 0 | ||
Short-term borrowings | 105,100 | 55,100 | ||
Payables to affiliates | 797 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 334 | 313 | ||
Total current liabilities | 106,231 | 55,413 | ||
Unamortized investment tax credits | 0 | 0 | ||
Deferred income taxes | 1,557 | 1,520 | ||
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 | 862,928 | 836,839 | ||
Cal Water | Reportable Legal Entities | ||||
Utility plant: | ||||
Utility plant | 3,395,699 | 3,332,331 | ||
Less accumulated depreciation and amortization | (1,103,286) | (1,079,627) | ||
Net utility plant | 2,292,413 | 2,252,704 | ||
Current assets: | ||||
Cash and cash equivalents | 74,655 | 29,098 | ||
Receivables and unbilled revenue, net | 98,794 | 114,999 | ||
Receivables from affiliates | 1,704 | 3,621 | ||
Other current assets | 23,251 | 20,615 | ||
Total current assets | 198,404 | 168,333 | ||
Other assets: | ||||
Regulatory assets | 438,075 | 428,639 | ||
Investments in affiliates | 0 | 0 | ||
Long-term affiliate notes receivable | 0 | 0 | ||
Other assets | 75,228 | 81,591 | ||
Total other assets | 513,303 | 510,230 | ||
TOTAL ASSETS | 3,004,120 | 2,931,267 | ||
Capitalization: | ||||
Common stockholders’ equity | 676,674 | 700,784 | ||
Affiliate long-term debt | 0 | 0 | ||
Long-term debt, net | 786,040 | 786,310 | ||
Total capitalization | 1,462,714 | 1,487,094 | ||
Current liabilities: | ||||
Current maturities of long-term debt, net | 21,743 | 21,732 | ||
Short-term borrowings | 230,000 | 120,000 | ||
Payables to affiliates | 25 | 6,115 | ||
Accounts payable | 94,979 | 104,419 | ||
Accrued expenses and other liabilities | 53,721 | 50,569 | ||
Total current liabilities | 400,468 | 302,835 | ||
Unamortized investment tax credits | 1,575 | 1,575 | ||
Deferred income taxes | 213,617 | 217,847 | ||
Pension and postretirement benefits other than pensions | 260,337 | 258,907 | ||
Regulatory liabilities and other | 261,072 | 262,859 | ||
Advances for construction | 193,568 | 190,568 | ||
Contributions in aid of construction | 210,769 | 209,582 | ||
TOTAL CAPITALIZATION AND LIABILITIES | 3,004,120 | 2,931,267 | ||
All Other Subsidiaries | Reportable Legal Entities | ||||
Utility plant: | ||||
Utility plant | 226,598 | 224,033 | ||
Less accumulated depreciation and amortization | (67,230) | (65,561) | ||
Net utility plant | 159,368 | 158,472 | ||
Current assets: | ||||
Cash and cash equivalents | 9,395 | 10,459 | ||
Receivables and unbilled revenue, net | 4,482 | 4,350 | ||
Receivables from affiliates | 24 | 209 | ||
Other current assets | 2,515 | 2,005 | ||
Total current assets | 16,416 | 17,023 | ||
Other assets: | ||||
Regulatory assets | 4,744 | 4,683 | ||
Investments in affiliates | 0 | 0 | ||
Long-term affiliate notes receivable | 0 | 0 | ||
Other assets | 5,508 | 5,125 | ||
Total other assets | 10,252 | 9,808 | ||
TOTAL ASSETS | 186,036 | 185,303 | ||
Capitalization: | ||||
Common stockholders’ equity | 81,031 | 81,604 | ||
Affiliate long-term debt | 29,579 | 30,060 | ||
Long-term debt, net | 427 | 444 | ||
Total capitalization | 111,037 | 112,108 | ||
Current liabilities: | ||||
Current maturities of long-term debt, net | 121 | 136 | ||
Short-term borrowings | 0 | 0 | ||
Payables to affiliates | 24,118 | 23,518 | ||
Accounts payable | 4,040 | 4,044 | ||
Accrued expenses and other liabilities | 3,089 | 2,408 | ||
Total current liabilities | 31,368 | 30,106 | ||
Unamortized investment tax credits | 0 | 0 | ||
Deferred income taxes | 3,292 | 3,243 | ||
Pension and postretirement benefits other than pensions | 0 | 0 | ||
Regulatory liabilities and other | 7,845 | 7,397 | ||
Advances for construction | 478 | 494 | ||
Contributions in aid of construction | 32,016 | 31,955 | ||
TOTAL CAPITALIZATION AND LIABILITIES | $ 186,036 | $ 185,303 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements - Condensed Consolidating Statement of (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Consolidating Financial Statements | ||
Operating revenue | $ 125,563 | $ 126,111 |
Operations: | ||
Water production costs | 53,976 | 45,592 |
Administrative and general | 29,680 | 29,097 |
Other operations | 13,974 | 17,821 |
Maintenance | 7,073 | 6,455 |
Depreciation and amortization | 24,492 | 22,368 |
Income tax (benefit) expense | (3,937) | (2,991) |
Property and other taxes | 7,228 | 7,293 |
Total operating (income) expenses | 132,486 | 125,635 |
Net operating income (loss) | (6,923) | 476 |
Other income and expenses: | ||
Non-regulated revenue | 3,827 | 4,901 |
Non-regulated expenses | (8,454) | (2,219) |
Other components of net periodic benefit cost | (1,430) | (1,259) |
Allowance for equity funds used during construction | 1,614 | 1,533 |
Income tax benefit (expense) on other income and expenses | 913 | (828) |
Net other income | (3,530) | 2,128 |
Interest expense: | ||
Interest expense | 10,798 | 11,075 |
Allowance for borrowed funds used during construction | (944) | (831) |
Net interest expense | 9,854 | 10,244 |
Equity loss of subsidiaries | 0 | 0 |
Net (loss) income | (20,307) | (7,640) |
Consolidating Adjustments | ||
Condensed Consolidating Financial Statements | ||
Operating revenue | 0 | 0 |
Operations: | ||
Water production costs | 0 | 0 |
Administrative and general | 0 | 0 |
Other operations | (146) | (146) |
Maintenance | 0 | 0 |
Depreciation and amortization | (20) | (21) |
Income tax (benefit) expense | 202 | 218 |
Property and other taxes | 0 | 0 |
Total operating (income) expenses | 36 | 51 |
Net operating income (loss) | (36) | (51) |
Other income and expenses: | ||
Non-regulated revenue | (700) | (759) |
Non-regulated expenses | 0 | 0 |
Other components of net periodic benefit cost | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 |
Income tax benefit (expense) on other income and expenses | 196 | 212 |
Net other income | (504) | (547) |
Interest expense: | ||
Interest expense | (554) | (613) |
Allowance for borrowed funds used during construction | 0 | 0 |
Net interest expense | (554) | (613) |
Equity loss of subsidiaries | 20,404 | 7,734 |
Net (loss) income | 20,418 | 7,749 |
Parent Company | Reportable Legal Entities | ||
Condensed Consolidating Financial Statements | ||
Operating revenue | 0 | 0 |
Operations: | ||
Water production costs | 0 | 0 |
Administrative and general | 0 | 0 |
Other operations | 0 | 0 |
Maintenance | 0 | 0 |
Depreciation and amortization | 24 | 23 |
Income tax (benefit) expense | (118) | (135) |
Property and other taxes | 0 | 0 |
Total operating (income) expenses | (94) | (112) |
Net operating income (loss) | 94 | 112 |
Other income and expenses: | ||
Non-regulated revenue | 555 | 613 |
Non-regulated expenses | 0 | 0 |
Other components of net periodic benefit cost | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 |
Income tax benefit (expense) on other income and expenses | (155) | (172) |
Net other income | 400 | 441 |
Interest expense: | ||
Interest expense | 397 | 459 |
Allowance for borrowed funds used during construction | 0 | 0 |
Net interest expense | 397 | 459 |
Equity loss of subsidiaries | (20,404) | (7,734) |
Net (loss) income | (20,307) | (7,640) |
Cal Water | Reportable Legal Entities | ||
Condensed Consolidating Financial Statements | ||
Operating revenue | 115,392 | 116,074 |
Operations: | ||
Water production costs | 51,758 | 43,426 |
Administrative and general | 26,892 | 26,203 |
Other operations | 12,155 | 16,122 |
Maintenance | 6,649 | 6,223 |
Depreciation and amortization | 22,957 | 20,887 |
Income tax (benefit) expense | (4,022) | (3,105) |
Property and other taxes | 6,426 | 6,506 |
Total operating (income) expenses | 122,815 | 116,262 |
Net operating income (loss) | (7,423) | (188) |
Other income and expenses: | ||
Non-regulated revenue | 3,591 | 4,628 |
Non-regulated expenses | (8,255) | (2,038) |
Other components of net periodic benefit cost | (1,401) | (1,229) |
Allowance for equity funds used during construction | 1,614 | 1,533 |
Income tax benefit (expense) on other income and expenses | 918 | (810) |
Net other income | (3,533) | 2,084 |
Interest expense: | ||
Interest expense | 10,400 | 10,613 |
Allowance for borrowed funds used during construction | (889) | (776) |
Net interest expense | 9,511 | 9,837 |
Equity loss of subsidiaries | 0 | 0 |
Net (loss) income | (20,467) | (7,941) |
All Other Subsidiaries | Reportable Legal Entities | ||
Condensed Consolidating Financial Statements | ||
Operating revenue | 10,171 | 10,037 |
Operations: | ||
Water production costs | 2,218 | 2,166 |
Administrative and general | 2,788 | 2,894 |
Other operations | 1,965 | 1,845 |
Maintenance | 424 | 232 |
Depreciation and amortization | 1,531 | 1,479 |
Income tax (benefit) expense | 1 | 31 |
Property and other taxes | 802 | 787 |
Total operating (income) expenses | 9,729 | 9,434 |
Net operating income (loss) | 442 | 603 |
Other income and expenses: | ||
Non-regulated revenue | 381 | 419 |
Non-regulated expenses | (199) | (181) |
Other components of net periodic benefit cost | (29) | (30) |
Allowance for equity funds used during construction | 0 | 0 |
Income tax benefit (expense) on other income and expenses | (46) | (58) |
Net other income | 107 | 150 |
Interest expense: | ||
Interest expense | 555 | 616 |
Allowance for borrowed funds used during construction | (55) | (55) |
Net interest expense | 500 | 561 |
Equity loss of subsidiaries | 0 | 0 |
Net (loss) income | $ 49 | $ 192 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Consolidating Financial Statements | ||
Net Income (Loss) Attributable to Parent | $ (20,307) | $ (7,640) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Equity loss of subsidiaries | 0 | 0 |
Dividends received from affiliates | 0 | 0 |
Depreciation and amortization | 25,093 | 22,893 |
Change in value of life insurance contracts | 4,717 | (2,254) |
Allowance for equity funds used during construction | (1,614) | (1,533) |
Changes in operating assets and liabilities: | ||
Changes in operating assets and liabilities | (570) | 1,155 |
Other changes in noncurrent assets and liabilities | (3,252) | 7,520 |
Net cash provided by operating activities | 4,067 | 20,141 |
Investing activities: | ||
Utility plant expenditures | (65,270) | (59,881) |
Investment in affiliates | 0 | |
Changes in affiliate advances | 0 | 0 |
Issuance of affiliate short-term borrowings | 0 | 0 |
Reduction of affiliates long-term debt | 0 | 0 |
Net cash used in investing activities | (65,270) | (59,881) |
Financing Activities: | ||
Short-term borrowings | 170,000 | 60,000 |
Changes in affiliate advances | 0 | |
Proceeds from affiliate short-term borrowings | 0 | |
Repayment of short-term borrowings | (10,000) | 0 |
Investment from affiliates | 0 | |
Changes in affiliate advances | 0 | |
Proceeds from affiliate short-term borrowings | 0 | |
Repayment of affiliates long-term borrowings | 0 | 0 |
Repayment of long-term debt | (197) | (226) |
Advances and contributions in aid of construction | 6,432 | 6,044 |
Refunds of advances for construction | (2,157) | (1,790) |
Repurchase of common stock | (1,373) | (2,074) |
Issuance of common stock | 6,511 | 454 |
Issuance of common stock | 454 | |
Dividends paid to non-affiliates | (10,315) | (9,493) |
Dividends paid to affiliates | 0 | 0 |
Net cash provided by financing activities | 158,901 | 52,915 |
Change in cash, cash equivalents, and restricted cash | 97,698 | 13,175 |
Cash, cash equivalents, and restricted cash at beginning of period | 43,298 | 47,715 |
Cash, cash equivalents, and restricted cash at end of period | 140,996 | 60,890 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 13,175 | |
Consolidating Adjustments | ||
Condensed Consolidating Financial Statements | ||
Net Income (Loss) Attributable to Parent | 20,418 | 7,749 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Equity loss of subsidiaries | (20,404) | (7,734) |
Dividends received from affiliates | (10,315) | (9,493) |
Depreciation and amortization | (20) | (21) |
Change in value of life insurance contracts | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 |
Changes in operating assets and liabilities: | ||
Changes in operating assets and liabilities | 0 | 0 |
Other changes in noncurrent assets and liabilities | 6 | 6 |
Net cash provided by operating activities | (10,315) | (9,493) |
Investing activities: | ||
Utility plant expenditures | 0 | 0 |
Investment in affiliates | (6,049) | |
Changes in affiliate advances | (8,052) | (1,401) |
Issuance of affiliate short-term borrowings | 3,500 | 4,300 |
Reduction of affiliates long-term debt | (592) | (481) |
Net cash used in investing activities | 905 | 2,418 |
Financing Activities: | ||
Short-term borrowings | 0 | 0 |
Changes in affiliate advances | 1,401 | |
Proceeds from affiliate short-term borrowings | (4,300) | |
Repayment of short-term borrowings | 0 | |
Investment from affiliates | (6,049) | |
Changes in affiliate advances | (8,052) | |
Proceeds from affiliate short-term borrowings | (3,500) | |
Repayment of affiliates long-term borrowings | (592) | (481) |
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 |
Issuance of common stock | 0 | |
Issuance of common stock | 0 | |
Dividends paid to non-affiliates | 0 | 0 |
Dividends paid to affiliates | 10,315 | 9,493 |
Net cash provided by financing activities | 9,410 | 7,075 |
Change in cash, cash equivalents, and restricted cash | 0 | |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | |
Parent Company | Reportable Legal Entities | ||
Condensed Consolidating Financial Statements | ||
Net Income (Loss) Attributable to Parent | (20,307) | (7,640) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Equity loss of subsidiaries | 20,404 | 7,734 |
Dividends received from affiliates | 10,315 | 9,493 |
Depreciation and amortization | 23 | 23 |
Change in value of life insurance contracts | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 |
Changes in operating assets and liabilities: | ||
Changes in operating assets and liabilities | (522) | (195) |
Other changes in noncurrent assets and liabilities | 704 | 2,476 |
Net cash provided by operating activities | 10,617 | 11,891 |
Investing activities: | ||
Utility plant expenditures | 0 | 0 |
Investment in affiliates | 6,049 | |
Changes in affiliate advances | 5,980 | 184 |
Issuance of affiliate short-term borrowings | (3,500) | (4,300) |
Reduction of affiliates long-term debt | 592 | 481 |
Net cash used in investing activities | (2,977) | (3,635) |
Financing Activities: | ||
Short-term borrowings | 50,000 | 0 |
Changes in affiliate advances | (17) | |
Proceeds from affiliate short-term borrowings | 0 | |
Repayment of short-term borrowings | 0 | |
Investment from affiliates | 0 | |
Changes in affiliate advances | (797) | |
Proceeds from affiliate short-term borrowings | 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 | (1,373) | (2,074) |
Issuance of common stock | 6,511 | |
Issuance of common stock | 454 | |
Dividends paid to non-affiliates | (10,315) | (9,493) |
Dividends paid to affiliates | 0 | 0 |
Net cash provided by financing activities | 45,620 | (11,130) |
Change in cash, cash equivalents, and restricted cash | 53,260 | |
Cash, cash equivalents, and restricted cash at beginning of period | 3,096 | 3,779 |
Cash, cash equivalents, and restricted cash at end of period | 56,356 | 905 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (2,874) | |
Cal Water | Reportable Legal Entities | ||
Condensed Consolidating Financial Statements | ||
Net Income (Loss) Attributable to Parent | (20,467) | (7,941) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Equity loss of subsidiaries | 0 | 0 |
Dividends received from affiliates | 0 | 0 |
Depreciation and amortization | 23,525 | 21,394 |
Change in value of life insurance contracts | 4,717 | (2,254) |
Allowance for equity funds used during construction | (1,614) | (1,533) |
Changes in operating assets and liabilities: | ||
Changes in operating assets and liabilities | (230) | (201) |
Other changes in noncurrent assets and liabilities | (4,021) | 4,951 |
Net cash provided by operating activities | 1,910 | 14,416 |
Investing activities: | ||
Utility plant expenditures | (62,671) | (57,410) |
Investment in affiliates | 0 | |
Changes in affiliate advances | 1,917 | 1,330 |
Issuance of affiliate short-term borrowings | 0 | 0 |
Reduction of affiliates long-term debt | 0 | 0 |
Net cash used in investing activities | (60,754) | (56,080) |
Financing Activities: | ||
Short-term borrowings | 120,000 | 60,000 |
Changes in affiliate advances | 772 | |
Proceeds from affiliate short-term borrowings | 0 | |
Repayment of short-term borrowings | (10,000) | |
Investment from affiliates | 6,049 | |
Changes in affiliate advances | 6,090 | |
Proceeds from affiliate short-term borrowings | 0 | |
Repayment of affiliates long-term borrowings | 0 | 0 |
Repayment of long-term debt | (166) | (171) |
Advances and contributions in aid of construction | 6,400 | 5,979 |
Refunds of advances for construction | (2,156) | (1,789) |
Repurchase of common stock | 0 | 0 |
Issuance of common stock | 0 | |
Issuance of common stock | 0 | |
Dividends paid to non-affiliates | 0 | 0 |
Dividends paid to affiliates | (9,691) | (9,185) |
Net cash provided by financing activities | 104,346 | 55,606 |
Change in cash, cash equivalents, and restricted cash | 45,502 | |
Cash, cash equivalents, and restricted cash at beginning of period | 29,679 | 34,238 |
Cash, cash equivalents, and restricted cash at end of period | 75,181 | 48,180 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 13,942 | |
All Other Subsidiaries | Reportable Legal Entities | ||
Condensed Consolidating Financial Statements | ||
Net Income (Loss) Attributable to Parent | 49 | 192 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Equity loss of subsidiaries | 0 | 0 |
Dividends received from affiliates | 0 | 0 |
Depreciation and amortization | 1,565 | 1,497 |
Change in value of life insurance contracts | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 |
Changes in operating assets and liabilities: | ||
Changes in operating assets and liabilities | 182 | 1,551 |
Other changes in noncurrent assets and liabilities | 59 | 87 |
Net cash provided by operating activities | 1,855 | 3,327 |
Investing activities: | ||
Utility plant expenditures | (2,599) | (2,471) |
Investment in affiliates | 0 | |
Changes in affiliate advances | 155 | (113) |
Issuance of affiliate short-term borrowings | 0 | 0 |
Reduction of affiliates long-term debt | 0 | 0 |
Net cash used in investing activities | (2,444) | (2,584) |
Financing Activities: | ||
Short-term borrowings | 0 | 0 |
Changes in affiliate advances | (2,156) | |
Proceeds from affiliate short-term borrowings | 4,300 | |
Repayment of short-term borrowings | 0 | |
Investment from affiliates | 0 | |
Changes in affiliate advances | 2,759 | |
Proceeds from affiliate short-term borrowings | 3,500 | |
Repayment of affiliates long-term borrowings | 592 | 481 |
Repayment of long-term debt | (31) | (55) |
Advances and contributions in aid of construction | 32 | 65 |
Refunds of advances for construction | (1) | (1) |
Repurchase of common stock | 0 | 0 |
Issuance of common stock | 0 | |
Issuance of common stock | 0 | |
Dividends paid to non-affiliates | 0 | 0 |
Dividends paid to affiliates | (624) | (308) |
Net cash provided by financing activities | (475) | 1,364 |
Change in cash, cash equivalents, and restricted cash | (1,064) | |
Cash, cash equivalents, and restricted cash at beginning of period | 10,523 | 9,698 |
Cash, cash equivalents, and restricted cash at end of period | $ 9,459 | 11,805 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | $ 2,107 |