Cover
Cover | 9 Months Ended |
Sep. 30, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 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, $0.01 par value per share |
Trading Symbol | CWT |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 49,840,000 |
Entity Central Index Key | 0001035201 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Utility plant: | ||
Utility plant | $ 3,835,194 | $ 3,550,485 |
Less accumulated depreciation and amortization | (1,238,880) | (1,144,115) |
Net utility plant | 2,596,314 | 2,406,370 |
Current assets: | ||
Cash and cash equivalents | 113,312 | 42,653 |
Receivables: | ||
Customers, net | 53,397 | 32,058 |
Regulatory balancing accounts | 54,415 | 38,225 |
Other, net | 15,056 | 14,187 |
Unbilled revenue, net | 46,247 | 34,879 |
Materials and supplies at weighted average cost | 8,611 | 7,745 |
Taxes, prepaid expenses, and other assets | 14,726 | 14,965 |
Total current assets | 305,764 | 184,712 |
Other assets: | ||
Regulatory assets | 484,435 | 433,322 |
Goodwill | 30,349 | 2,615 |
Other assets | 89,572 | 84,289 |
Total other assets | 604,356 | 520,226 |
TOTAL ASSETS | 3,506,434 | 3,111,308 |
Capitalization: | ||
Common stock, $0.01 par value; 68,000 shares authorized, 49,840 and 48,532 outstanding in 2020 and 2019, respectively | 498 | 485 |
Additional paid-in capital | 422,391 | 362,275 |
Retained earnings | 467,303 | 417,146 |
Total common stockholders’ equity | 890,192 | 779,906 |
Long-term debt, net | 785,055 | 786,754 |
Total capitalization | 1,675,247 | 1,566,660 |
Current liabilities: | ||
Current maturities of long-term debt, net | 21,883 | 21,868 |
Short-term borrowings | 375,100 | 175,100 |
Accounts payable | 127,158 | 108,463 |
Regulatory balancing accounts | 11,003 | 4,462 |
Accrued interest | 14,233 | 5,810 |
Accrued expenses and other liabilities | 54,446 | 43,018 |
Total current liabilities | 603,823 | 358,721 |
Deferred income taxes | 245,456 | 222,590 |
Pension and postretirement benefits other than pensions | 261,081 | 258,907 |
Regulatory liabilities and other | 257,054 | 271,831 |
Advances for construction | 196,853 | 191,062 |
Contributions in aid of construction | 266,920 | 241,537 |
Commitments and contingencies (Note 10) | ||
TOTAL CAPITALIZATION AND LIABILITIES | $ 3,506,434 | $ 3,111,308 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 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) | 49,840,000 | 48,532,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||||||
Operating revenue | $ 304,108 | $ 232,537 | $ 605,155 | $ 537,679 | ||||
Operations: | ||||||||
Water production costs | 85,344 | 80,568 | 210,462 | 190,795 | ||||
Administrative and general | 29,208 | 26,779 | 85,827 | 81,310 | ||||
Other operations | 29,746 | 24,550 | 69,618 | 64,913 | ||||
Maintenance | 7,129 | 7,065 | 20,924 | 19,212 | ||||
Depreciation and amortization | 24,699 | 22,273 | 73,733 | 66,967 | ||||
Income taxes | 13,804 | 12,194 | 10,489 | 13,524 | ||||
Property and other taxes | 8,116 | 7,541 | 22,470 | 21,902 | ||||
Total operating (income) expenses | 198,046 | 180,970 | 493,523 | 458,623 | ||||
Net operating income | 106,062 | 51,567 | 111,632 | 79,056 | ||||
Other income and expenses: | ||||||||
Non-regulated revenue | 3,934 | 4,118 | 11,969 | 14,149 | ||||
Non-regulated expenses | (2,865) | (4,351) | (11,811) | (10,470) | ||||
Other components of net periodic benefit cost | (1,008) | (1,857) | (3,770) | (4,308) | ||||
Allowance for equity funds used during construction | 973 | 1,868 | 4,292 | 5,087 | ||||
Income tax (expense) benefit on other income and expenses | (245) | 330 | (152) | (985) | ||||
Net other income | 789 | 108 | 528 | 3,473 | ||||
Interest expense: | ||||||||
Interest expense | 11,162 | 10,279 | 33,573 | 33,532 | ||||
Allowance for borrowed funds used during construction | (671) | (1,028) | (2,747) | (2,783) | ||||
Net interest expense | 10,491 | 9,251 | 30,826 | 30,749 | ||||
Net income | $ 96,360 | $ 5,281 | $ (20,307) | $ 42,424 | $ 16,996 | $ (7,640) | $ 81,334 | $ 51,780 |
Earnings per share: | ||||||||
Basic (in dollars per share) | $ 1.94 | $ 0.88 | $ 1.66 | $ 1.08 | ||||
Diluted (in dollars per share) | $ 1.94 | $ 0.88 | $ 1.66 | $ 1.08 | ||||
Weighted average shares outstanding: | ||||||||
Basic (in shares) | 49,576 | 48,141 | 49,034 | 48,121 | ||||
Diluted (in shares) | 49,576 | 48,141 | 49,034 | 48,121 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities: | ||
Net income | $ 81,334 | $ 51,780 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 75,550 | 68,522 |
Change in value of life insurance contracts | (621) | (3,433) |
Allowance for equity funds used during construction | (4,292) | (5,087) |
Changes in operating assets and liabilities: | ||
Receivables and unbilled revenue | (41,374) | (29,436) |
Accounts payable | 7,199 | 16,735 |
Other current assets | (536) | (3,937) |
Other current liabilities | 16,304 | 11,597 |
Other changes in noncurrent assets and liabilities | (36,900) | 21,602 |
Net cash provided by operating activities | 96,664 | 128,343 |
Investing activities: | ||
Utility plant expenditures | (221,261) | (194,942) |
Purchase of life insurance contracts | (2,335) | (2,216) |
Business acquisition, net of cash acquired | (39,544) | 0 |
Net cash used in investing activities | (263,140) | (197,158) |
Financing activities: | ||
Short-term borrowings | 270,000 | 210,000 |
Repayment of short-term borrowings | (70,000) | (120,000) |
Issuance of long-term debt, net of expenses | 0 | 398,431 |
Repayment of long-term debt | (1,535) | (401,630) |
Advances and contributions in aid of construction | 19,862 | 21,266 |
Refunds of advances for construction | (7,017) | (5,560) |
Repurchase of common stock | (1,578) | (2,355) |
Issuance of common stock | 58,573 | 1,278 |
Dividends paid | (31,177) | (28,507) |
Net cash provided by financing activities | 237,128 | 72,923 |
Change in cash, cash equivalents, and restricted cash | 70,652 | 4,108 |
Cash, cash equivalents, and restricted cash at beginning of period | 43,298 | 47,715 |
Cash, cash equivalents, and restricted cash at end of period | 113,950 | 51,823 |
Supplemental information: | ||
Cash paid for interest (net of amounts capitalized) | 21,862 | 22,060 |
Supplemental disclosure of non-cash activities: | ||
Accrued payables for investments in utility plant | 47,015 | 31,676 |
Utility plant contribution by developers | $ 22,762 | $ 23,955 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Statement of Cash Flows [Abstract] | |
Payments of debt issuance costs | $ 1,569 |
Organization and Operations and
Organization and Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Operating revenue The following tables disaggregate the Company’s operating revenue by source for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 2020 2019 Revenue from contracts with customers $ 222,474 $ 214,963 Regulatory balancing account revenue (a) 81,634 17,574 Total operating revenue $ 304,108 $ 232,537 Nine Months Ended September 30 2020 2019 Revenue from contracts with customers $ 529,804 $ 499,840 Regulatory balancing account revenue (a) 75,351 37,839 Total operating revenue $ 605,155 $ 537,679 (a) The adjustments 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 first six months ended June 30, 2020 were recorded in the three months ended September 30, 2020 as the Company received a proposed decision for its 2018 General Rate Case for Cal Water (2018 GRC) in October of 2020. The Company also recorded an adjustment for its interim rate memorandum account (IRMA) where it was authorized to track the effect of the delay in the resolution of the 2018 GRC on customer billings. 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 condensed consolidated balance sheets, is inconsequential. In the following tables, revenue from contracts with customers is disaggregated by class of customers for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 2020 2019 Residential $ 151,938 $ 139,137 Business 36,951 38,247 Industrial 7,496 9,077 Public authorities 12,862 12,482 Other (a) 13,227 16,020 Total revenue from contracts with customers $ 222,474 $ 214,963 Nine Months Ended September 30 2020 2019 Residential $ 360,935 $ 330,745 Business 93,175 95,433 Industrial 21,996 23,866 Public authorities 26,470 24,566 Other (a) 27,228 25,230 Total revenue from contracts with customers $ 529,804 $ 499,840 (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 general rate case (GRC) is decoupled from the volume of the sales. Regulatory balancing account revenue is revenue related to rate mechanisms authorized in California by the CPUC, which allow the Company to recover the authorized revenue and are not considered contracts with customers. 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. Due to the delay in the resolution of the 2018 GRC, the CPUC authorized Cal Water to track the effect of the delay on customer billings in IRMA effective January 1, 2020. Variances between actual customer billings and those that would have been billed assuming the GRC had been effective January 1, 2020 are recorded as regulatory balancing account revenue. In the third quarter of 2020, Cal Water determined that the IRMA met regulatory asset 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 tables disaggregate the Company’s non-regulated revenue by source for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 2020 2019 Operating and maintenance revenue $ 2,680 $ 2,929 Other non-regulated revenue 625 626 Non-regulated revenue from contracts with customers $ 3,305 $ 3,555 Lease revenue $ 629 $ 563 Total non-regulated revenue $ 3,934 $ 4,118 Nine Months Ended September 30 2020 2019 Operating and maintenance revenue $ 7,969 $ 9,248 Other non-regulated revenue 2,223 3,189 Non-regulated revenue from contracts with customers $ 10,192 $ 12,437 Lease revenue $ 1,777 $ 1,712 Total non-regulated revenue $ 11,969 $ 14,149 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 and Unbilled Revenue are inconsequential. Customer receivables include receivables for water and wastewater services provided to residential customers, business, industrial, public authorities, and other customers. The overall risks related to the Company’s receivables are low as water and wastewater services are seen as essential services. The estimate for the allowance for credit losses is based on a historical loss ratio, in conjunction with a qualitative assessment of elements that impact the collectability of receivables to determine if the allowance for credit losses should be further adjusted in accordance with the accounting guidance for credit losses. Management contemplates available current information such as changes in economic factors, regulatory matters, industry trends, payment options and programs available to customers, and the methods that the Company is able to utilize to ensure payment. During the third quarter of 2020, the Company reviewed its allowance for credit losses utilizing a quantitative assessment, which included trend analysis of customer billing and collection, aging by customer class, and unemployment rates since the outbreak of COVID-19 in the first quarter of 2020. The Company also utilized a qualitative assessment, which considered the future collectability on customer outstanding balances, management's estimate of the cash recovery, and a general assessment of the economic conditions of the locations the Company serves due to the outbreak of COVID-19. The Company is complying with the CPUC requirements to suspend customer disconnections for non-payment and ceased agency collection activities, and anticipates this situation will continue until April 1, 2021. Based on the above assessments, the Company expects an increase in customer receivable write-offs as compared to historical experiences and adjusted its allowance for credit losses, accordingly. The following table presents the activity in the allowance for credit losses for the period ended September 30, 2020: Allowance for credit losses As of September 30, 2020 Beginning balance 771 Provision for credit loss expense 2,895 Write-offs (1,317) Recoveries 396 Total ending allowance balance $ 2,745 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: September 30, 2020 December 31, 2019 Cash and cash equivalents 113,312 42,653 Restricted cash (included in "taxes, prepaid expenses and other assets") 638 645 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 113,950 $ 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 | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Equity Incentive Plan The following table lists the number of Restricted Stock Awards (RSAs) granted and canceled during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 RSAs granted — — 39,915 36,183 RSAs canceled 2,153 2,739 9,338 14,394 During the first nine 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 cliff vest at the end of 12 months. The following table lists the number of performance-based Restricted Stock Unit Awards (RSUs) granted, issued, and canceled during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 RSUs granted — — 32,720 26,473 RSUs issued — — 41,731 62,726 RSUs canceled — — 22,936 31,177 Each RSU award reflects a target number of shares that may be issued to the award recipient. 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 $1.8 million and $1.4 million for the three months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020 and 2019, the Company has recorded compensation costs for the RSAs and RSUs in the amount of $3.1 million and $5.3 million, respectively. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Equity | EquityThe Company sold 432,420 shares of common stock through its at-the-market equity program and raised proceeds of $20.1 million net of $0.2 million in commissions paid under the equity distribution agreement during the three months ended September 30, 2020. During the nine months ended September 30, 2020, the Company sold 1,225,572 shares of common stock through its at-the-market equity program and raised proceeds of $57.3 million net of $0.6 million in commissions paid under the equity distribution agreement. The Company’s changes in total common stockholders’ equity for the nine months ended September 30, 2020 and 2019 were as follows: Nine months ended September 30, 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 Net income 5,281 5,281 Issuance of common stock 686 7 32,056 32,063 Repurchase of common stock (2) — (105) (105) Dividends paid on common stock ($0.2125 per share) (10,356) (10,356) Balance at June 30, 2020 49,398 494 400,080 381,449 782,023 Net income 96,360 96,360 Issuance of common stock 444 4 22,410 22,414 Repurchase of common stock (2) — (99) (99) Dividends paid on common stock ($0.2125 per share) (10,506) (10,506) Balance at September 30, 2020 49,840 498 422,391 467,303 890,192 Nine months ended September 30, 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 Net income 16,996 16,996 Issuance of common stock 8 — 1,675 1,675 Repurchase of common stock (2) — (129) (129) Dividends paid on common stock ($0.1975 per share) (9,507) (9,507) Balance at June 30, 2019 48,140 481 340,274 382,409 723,164 Net income 42,424 42,424 Issuance of common stock 9 — 1,866 — 1,866 Repurchase of common stock (4) — (152) — (152) Dividends paid on common stock ($0.1975 per share) (9,507) (9,507) Balance at September 30, 2019 48,145 481 341,988 415,326 757,795 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computations of basic and diluted earnings per share are noted in the table below. Basic earnings per share are computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the period. 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 September 30 2020 2019 (In thousands, except per share data) Net income available to common stockholders $ 96,360 $ 42,424 Weighted average common shares outstanding, basic 49,576 48,141 Weighted average common shares outstanding, dilutive 49,576 48,141 Earnings per share - basic $ 1.94 $ 0.88 Earnings per share - diluted $ 1.94 $ 0.88 Nine Months Ended September 30 2020 2019 (In thousands, except per share data) Net income available to common stockholders $ 81,334 $ 51,780 Weighted average common shares outstanding, basic 49,034 48,121 Weighted average common shares outstanding, dilutive 49,034 48,121 Earnings per share - basic $ 1.66 $ 1.08 Earnings per share - diluted $ 1.66 $ 1.08 |
Pension Plan and Other Postreti
Pension Plan and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 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 $25.8 million and $12.5 million for the nine months ended September 30, 2020 and 2019, respectively. Cash contributions made by the Company to the other postretirement benefit plans were $5.7 million and $5.6 million for the nine months ended September 30, 2020 and 2019, respectively. The total 2020 estimated cash contribution to the pension plans and other postretirement benefits plans are expected to be approximately $38.0 million and $7.5 million, respectively. 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 September 30 Pension Plan Other Benefits 2020 2019 2020 2019 Service cost $ 9,378 $ 6,910 $ 1,746 $ 2,082 Interest cost 6,440 6,941 808 1,407 Expected return on plan assets (8,284) (7,581) (1,804) (1,475) Amortization of prior service cost 1,058 1,262 50 49 Recognized net actuarial loss 3,208 1,821 (27) 214 Net periodic benefit cost $ 11,800 $ 9,353 $ 773 $ 2,277 Nine Months Ended September 30 Pension Plan Other Benefits 2020 2019 2020 2019 Service cost $ 27,002 $ 20,039 $ 5,959 $ 5,606 Interest cost 19,306 20,225 3,229 4,081 Expected return on plan assets (24,815) (22,714) (5,427) (4,346) Amortization of prior service cost 3,172 3,786 148 148 Recognized net actuarial loss 9,599 4,445 — 421 Net periodic benefit cost $ 34,264 $ 25,781 $ 3,909 $ 5,910 Service cost portion of the pension plan and other postretirement benefits is recognized in "administrative and general" expenses within the Condensed Consolidated Statements of Income. Other components of net periodic benefit costs include interest costs, expected return on plan assets, amortization of prior service costs, and recognized net actuarial loss and are reported together as "other components of net periodic benefit cost" within the Condensed Consolidated Statements of Income. |
Short-term and Long-term Borrow
Short-term and Long-term Borrowings | 9 Months Ended |
Sep. 30, 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 September 30, 2020 and December 31, 2019, respectively. There were $270.0 million and $120.0 million of borrowings on the Cal Water line of credit as of September 30, 2020 and December 31, 2019, respectively. The average borrowing rate for borrowings on the Company and Cal Water lines of credit during the nine months ended September 30, 2020 was 1.74% compared to 3.38% for the same period last year. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 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 tables below: Three Months Ended September 30 2020 2019 Income tax expense $ 14,049 $ 11,864 Nine Months Ended September 30 2020 2019 Income tax expense $ 10,641 $ 14,509 The income tax expense increased $2.1 million to $14.0 million for the three months ended September 30, 2020 as compared to $11.9 million for the three months ended September 30, 2019. The increase was mainly due to an increase in operating income, partially offset by tax repair benefit and amortization of excess deferred income tax as a result of the Tax Cuts and Jobs Acts (TCJA) in the 2018 GRC proposed decision. The income tax expense decreased $3.9 million to $10.6 million for the nine months ended September 30, 2020 as compared to income tax expense of $14.5 million for the nine months ended September 30, 2019. The decrease was mainly due to tax repair benefit and amortization of excess deferred income tax as a result of TCJA in the 2018 GRC proposed decision. The Company’s effective tax rate was 11.6% and 21.9% for the nine months ended September 30, 2020, and 2019, respectively. The lower effective rate for the nine months ended September 30, 2020, was primarily due to the amortization of the excess deferred taxes as a result of the TCJA in the proposed decision for the 2018 GRC. The US federal income tax rate was lowered by TCJA to 21% in 2018 from 35% in 2017. For the year ended December 31, 2018, the Company recorded a re-measurement of its deferred tax balances. The final impact may differ from the recorded amounts, possibly materially, due to regulatory decisions that could differ from the Company’s determination of how the impacts of the TCJA are allocated between customers and shareholders. In addition, 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 excess deferred tax 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 $12.9 million and $10.6 million as of September 30, 2020 and 2019, respectively. Included in the balance of unrecognized tax benefits, is approximately $3.5 million and $3.1 million, respectively, of tax benefits that, if recognized, would result in an adjustment to the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly within the next 12 months. During the nine months ended September 30, 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 September 30, 2020. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and LiabilitiesThe 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, and which were litigated, were continuation of the WRAM, MCBA, PCBA, and HCBA. On October 14, 2020, an Administrative Law Judge (ALJ) with the CPUC issued a proposed decision that is subject to adoption by the CPUC no earlier than the CPUC’s November 19, 2020 meeting. If adopted as proposed, the decision would approve the settlement reached in October of 2019 by Cal Water and the CPUC’s Public Advocates Office, allow Cal Water to continue its decoupling balancing accounts through 2022, and allow Cal Water to retain its PCBA and HCBA. Under this proposed decision, Cal Water would be authorized to invest $828.0 million in its districts throughout California through 2021. This includes $148 million of water system infrastructure upgrades that would be recovered via the CPUC’s advice letter procedure once those projects are completed. The proposed decision also authorizes total revenue of up to $698.7 million for 2020. The Company determined that the proposed decision provides additional evidence about conditions that existed as of September 30, 2020. As of November 6, 2020, the Company believes it is probable the proposed decision will be adopted by the CPUC without any material variation and accordingly, the Company recorded regulatory assets and associated revenues resulting from the regulatory mechanisms approved in the proposed decision as of September 30, 2020. In the unlikely event that the CPUC does not approve the proposed decision as issued, the Company will need to adjust regulatory asset balances and revenues in the fourth quarter of 2020. Regulatory assets and liabilities were comprised of the following as of September 30, 2020 and December 31, 2019: Recovery Period September 30, 2020 December 31, 2019 Regulatory Assets Pension and retiree group health Indefinitely $ 207,828 $ 208,321 Property-related temporary differences (tax benefits flowed through to customers) Indefinitely 107,962 104,931 Other accrued benefits Indefinitely 21,434 20,030 Net WRAM and MCBA long-term accounts receivable 1 - 2 years 40,036 25,465 Asset retirement obligations, net Indefinitely 21,018 19,567 Interim rates long-term accounts receivable 1 year 21,672 4,642 Tank coating 10 years 14,209 13,535 Recoverable property losses 10 years 4,775 5,000 PCBA 1 year 32,819 21,465 Other components of net periodic benefit cost Indefinitely 6,316 5,145 Other regulatory assets Various 6,366 5,221 Total Regulatory Assets $ 484,435 $ 433,322 Regulatory Liabilities Future tax benefits due to customers $ 173,048 $ 194,501 HCBA 7,407 4,271 CEBA 2,926 2,742 Net WRAM and MCBA long-term payable 374 211 Tax accounting memorandum account 711 806 Cost of capital memorandum account 15 151 1,2,3 trichloropropane (TCP) settlement proceeds 9,084 8,426 Other regulatory liabilities 374 305 Total Regulatory Liabilities $ 193,939 $ 211,413 Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets were $54.4 million as of September 30, 2020 and $38.2 million as of December 31, 2019. As of September 30, 2020, the short-term regulatory assets primarily consist of net WRAM and MCBA receivables and IRMA receivables. As of December 31, 2019, the short-term regulatory assets primarily consist of net WRAM and MCBA receivables. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 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 September 30, 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 September 30, 2020 and December 31, 2019, the Company recognized a liability of $2.4 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 | 9 Months Ended |
Sep. 30, 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 Company 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 of similar securities, 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. September 30, 2020 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 806,938 — $ 991,973 — $ 991,973 Advances for construction 196,853 — 82,150 — 82,150 Total $ 1,003,791 $ — $ 1,074,123 $ — $ 1,074,123 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 | 9 Months Ended |
Sep. 30, 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 5.50% 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 September 30, 2020 and December 31, 2019, the Condensed Consolidating Statements of Income for the three and nine months ended September 30, 2020 and 2019, and the Condensed Consolidating Statements of Cash Flows for the nine months ended September 30, 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% owned non-guarantor consolidated subsidiaries of California Water Service Group. No other subsidiary of the Company guarantees the securities. CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2020 (In thousands) Parent Cal Water All Other Consolidating Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 3,559,329 $ 281,744 $ (7,197) $ 3,835,194 Less accumulated depreciation and amortization (1,177) (1,151,266) (88,676) 2,239 (1,238,880) Net utility plant 141 2,408,063 193,068 (4,958) 2,596,314 Current assets: Cash and cash equivalents 16,679 85,877 10,756 — 113,312 Receivables and unbilled revenue, net — 160,479 8,636 — 169,115 Receivables from affiliates 26,962 942 261 (28,165) — Other current assets 272 20,933 2,132 — 23,337 Total current assets 43,913 268,231 21,785 (28,165) 305,764 Other assets: Regulatory assets — 479,613 4,822 — 484,435 Investments in affiliates 917,901 — — (917,901) — Long-term affiliate notes receivable 32,659 — — (32,659) — Other assets 2,349 84,154 33,636 (218) 119,921 Total other assets 952,909 563,767 38,458 (950,778) 604,356 TOTAL ASSETS $ 996,963 $ 3,240,061 $ 253,311 $ (983,901) $ 3,506,434 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 890,192 $ 805,444 $ 117,633 $ (923,077) $ 890,192 Affiliate long-term debt — — 32,659 (32,659) — Long-term debt, net — 784,715 340 — 785,055 Total capitalization 890,192 1,590,159 150,632 (955,736) 1,675,247 Current liabilities: Current maturities of long-term debt, net — 21,763 120 — 21,883 Short-term borrowings 105,100 270,000 — — 375,100 Payables to affiliates — 2,940 25,225 (28,165) — Accounts payable — 123,129 4,029 — 127,158 Accrued expenses and other liabilities 31 73,913 5,738 — 79,682 Total current liabilities 105,131 491,745 35,112 (28,165) 603,823 Deferred income taxes 1,640 235,791 8,025 — 245,456 Pension and postretirement benefits other than pensions — 261,081 — — 261,081 Regulatory liabilities and other — 251,230 5,824 — 257,054 Advances for construction — 196,324 529 — 196,853 Contributions in aid of construction — 213,731 53,189 — 266,920 TOTAL CAPITALIZATION AND LIABILITIES $ 996,963 $ 3,240,061 $ 253,311 $ (983,901) $ 3,506,434 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2019 (In thousands) Parent Cal Water All Other Consolidating 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 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 — 264,434 7,397 — 271,831 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 CASH FLOWS For the nine months ended September 30, 2020 (In thousands) Parent Cal Water All Other Consolidating Consolidated Operating activities: Net income $ 81,334 $ 76,855 $ 4,139 $ (80,994) $ 81,334 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (81,036) — — 81,036 — Dividends received from affiliates 31,177 — — (31,177) — Depreciation and amortization 70 70,604 4,935 (59) 75,550 Changes in value of life insurance contracts — (621) — — (621) Allowance for equity funds used during construction — (4,292) — — (4,292) Changes in operating assets and liabilities (463) (17,633) (311) — (18,407) Other changes in noncurrent assets and liabilities 3,262 (42,184) 2,005 17 (36,900) Net cash provided by operating activities 34,344 82,729 10,768 (31,177) 96,664 Investing activities: Utility plant expenditures — (212,288) (8,973) — (221,261) Business acquisition, net of cash acquired (1,950) — (37,594) — (39,544) Investment in affiliates (90,871) — — 90,871 — Changes in affiliate advances 2,238 2,679 (145) (4,772) — Issuance of affiliate short-term borrowings (3,500) — — 3,500 — Issuance of affiliate long-term borrowings (4,076) — — 4,076 — Reduction of affiliates long-term debt 1,580 — — (1,580) — Purchase of life insurance contracts — (2,335) — — (2,335) Net cash used in investing activities (96,579) (211,944) (46,712) 92,095 (263,140) Financing Activities: Short-term borrowings 50,000 220,000 — — 270,000 Repayment of short-term borrowings — (70,000) — — (70,000) Investment from affiliates — 57,266 33,605 (90,871) — Changes in affiliate advances — (3,175) (1,597) 4,772 — Proceeds from affiliate short-term borrowings — — 3,500 (3,500) — Proceeds from affiliate long-term borrowings — — 4,076 (4,076) — Repayment of affiliates long-term borrowings — — (1,580) 1,580 — Repayment of long-term debt — (1,415) (120) — (1,535) Advances and contributions in aid of construction — 19,735 127 — 19,862 Refunds of advances for construction — (7,015) (2) — (7,017) Repurchase of common stock (1,578) — — — (1,578) Issuance of common stock 58,573 — — — 58,573 Dividends paid to non-affiliates (31,177) — — — (31,177) Dividends paid to affiliates — (29,461) (1,716) 31,177 — Net cash provided by financing activities 75,818 185,935 36,293 (60,918) 237,128 Change in cash, cash equivalents, and restricted cash 13,583 56,720 349 — 70,652 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 $ 16,679 $ 86,399 $ 10,872 — $ 113,950 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2019 (In thousands) Parent Cal Water All Other Consolidating Consolidated Operating activities: Net income $ 51,780 $ 47,116 $ 4,363 $ (51,479) $ 51,780 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (51,523) — — 51,523 — Dividends received from affiliates 28,507 — — (28,507) — Depreciation and amortization 70 63,975 4,539 (62) 68,522 Changes in value of life insurance contracts — (3,433) — — (3,433) Allowance for equity funds used during construction — (5,087) — — (5,087) Changes in operating assets and liabilities 194 (6,744) 1,509 — (5,041) Other changes in noncurrent assets and liabilities 5,239 14,560 1,785 18 21,602 Net cash provided by operating activities 34,267 110,387 12,196 (28,507) 128,343 Investing activities: Utility plant expenditures — (185,883) (9,059) — (194,942) Changes in affiliate advances (3,199) 3,534 (320) (15) — Issuance of affiliate short-term borrowings (4,300) — — 4,300 — Reduction of affiliates long-term debt 1,462 — — (1,462) — Purchase of life insurance contracts — (2,216) — — (2,216) Net cash used in investing activities (6,037) (184,565) (9,379) 2,823 (197,158) Financing Activities: Short-term borrowings — 210,000 — — 210,000 Repayment of short-term borrowings — (120,000) — — (120,000) Changes in affiliate advances (17) 4,419 (4,417) 15 — Proceeds from affiliate short-term borrowings — — 4,300 (4,300) — Repayment of affiliates long-term borrowings — — (1,462) 1,462 — Issuance of long-term debt, net of expenses — 398,431 — — 398,431 Repayment of long-term debt — (401,417) (213) — (401,630) Advances and contributions in aid for construction — 21,176 90 — 21,266 Refunds of advances for construction — (5,560) — — (5,560) Repurchase of common stock (2,355) — — — (2,355) Issuance of common stock 1,278 — — — 1,278 Dividends paid to non-affiliates (28,507) — — — (28,507) Dividends paid to affiliates — (27,419) (1,088) 28,507 — Net cash (used in) provided by financing activities (29,601) 79,630 (2,790) 25,684 72,923 Change in cash, cash equivalents, and restricted cash (1,371) 5,452 27 — 4,108 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 $ 2,408 $ 39,690 $ 9,725 — $ 51,823 |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On March 27, 2020, the Company’s wholly owned subsidiary, Washington Water, received regulatory approval from the Washington Utilities and Transportation Commission (WUTC) for Washington Water's application for the sale and transfer of assets of Rainier View Water Company. Washington Water paid $37.6 million in cash to take control of the water system on June 1, 2020. The acquisition of Rainier View Water doubles the size of Washington Water’s operations and solidifies the Company’s position as the largest investor-owned water company in the state of Washington, regulated by the WUTC. Rainier View Water serves approximately 35,000 people in parts of Graham, Spanaway, Puyallup, Gig Harbor, and other nearby areas through approximately 18,500 customer connections in 27 water systems. Assets acquired were $32.7 million, including utility plant of $31.1 million, and liabilities of $22.9 million were assumed, including $21.3 million of contributions in aid of construction. Goodwill of $27.7 million was recorded and consists largely of the synergies expected from combining the operations of Rainier View Water Company and Washington Water. In the third quarter of 2020, the Company finalized identifying the acquired assets and liabilities. The Company is still in the process of finalizing the valuation of certain intangible assets; therefore, the goodwill recorded is subject to further refinement upon completion. The Company expects all the goodwill from the acquisition to be deductible for tax purposes. Condensed balance sheets and pro forma results of operations for this acquisition have not been presented since the impact of the acquisition was not material. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 condensed consolidated balance sheets, is inconsequential. In the following tables, revenue from contracts with customers is disaggregated by class of customers for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 2020 2019 Residential $ 151,938 $ 139,137 Business 36,951 38,247 Industrial 7,496 9,077 Public authorities 12,862 12,482 Other (a) 13,227 16,020 Total revenue from contracts with customers $ 222,474 $ 214,963 Nine Months Ended September 30 2020 2019 Residential $ 360,935 $ 330,745 Business 93,175 95,433 Industrial 21,996 23,866 Public authorities 26,470 24,566 Other (a) 27,228 25,230 Total revenue from contracts with customers $ 529,804 $ 499,840 (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 general rate case (GRC) is decoupled from the volume of the sales. Regulatory balancing account revenue is revenue related to rate mechanisms authorized in California by the CPUC, which allow the Company to recover the authorized revenue and are not considered contracts with customers. 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. Due to the delay in the resolution of the 2018 GRC, the CPUC authorized Cal Water to track the effect of the delay on customer billings in IRMA effective January 1, 2020. Variances between actual customer billings and those that would have been billed assuming the GRC had been effective January 1, 2020 are recorded as regulatory balancing account revenue. In the third quarter of 2020, Cal Water determined that the IRMA met regulatory asset 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 tables disaggregate the Company’s non-regulated revenue by source for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 2020 2019 Operating and maintenance revenue $ 2,680 $ 2,929 Other non-regulated revenue 625 626 Non-regulated revenue from contracts with customers $ 3,305 $ 3,555 Lease revenue $ 629 $ 563 Total non-regulated revenue $ 3,934 $ 4,118 Nine Months Ended September 30 2020 2019 Operating and maintenance revenue $ 7,969 $ 9,248 Other non-regulated revenue 2,223 3,189 Non-regulated revenue from contracts with customers $ 10,192 $ 12,437 Lease revenue $ 1,777 $ 1,712 Total non-regulated revenue $ 11,969 $ 14,149 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 and Unbilled Revenue are inconsequential. Customer receivables include receivables for water and wastewater services provided to residential customers, business, industrial, public authorities, and other customers. The overall risks related to the Company’s receivables are low as water and wastewater services are seen as essential services. The estimate for the allowance for credit losses is based on a historical loss ratio, in conjunction with a qualitative assessment of elements that impact the collectability of receivables to determine if the allowance for credit losses should be further adjusted in accordance with the accounting guidance for credit losses. Management contemplates available current information such as changes in economic factors, regulatory matters, industry trends, payment options and programs available to customers, and the methods that the Company is able to utilize to ensure payment. During the third quarter of 2020, the Company reviewed its allowance for credit losses utilizing a quantitative assessment, which included trend analysis of customer billing and collection, aging by customer class, and unemployment rates since the outbreak of COVID-19 in the first quarter of 2020. The Company also utilized a qualitative assessment, which considered the future collectability on customer outstanding balances, management's estimate of the cash recovery, and a general assessment of the economic conditions of the locations the Company serves due to the outbreak of COVID-19. The Company is complying with the CPUC requirements to suspend customer disconnections for non-payment and ceased agency collection activities, and anticipates this situation will continue until April 1, 2021. Based on the above assessments, the Company expects an increase in customer receivable write-offs as compared to historical experiences and adjusted its allowance for credit losses, accordingly. The following table presents the activity in the allowance for credit losses for the period ended September 30, 2020: Allowance for credit losses As of September 30, 2020 Beginning balance 771 Provision for credit loss expense 2,895 Write-offs (1,317) Recoveries 396 Total ending allowance balance $ 2,745 |
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) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate the Company’s operating revenue by source for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 2020 2019 Revenue from contracts with customers $ 222,474 $ 214,963 Regulatory balancing account revenue (a) 81,634 17,574 Total operating revenue $ 304,108 $ 232,537 Nine Months Ended September 30 2020 2019 Revenue from contracts with customers $ 529,804 $ 499,840 Regulatory balancing account revenue (a) 75,351 37,839 Total operating revenue $ 605,155 $ 537,679 (a) The adjustments 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 first six months ended June 30, 2020 were recorded in the three months ended September 30, 2020 as the Company received a proposed decision for its 2018 General Rate Case for Cal Water (2018 GRC) in October of 2020. The Company also recorded an adjustment for its interim rate memorandum account (IRMA) where it was authorized to track the effect of the delay in the resolution of the 2018 GRC on customer billings. In the following tables, revenue from contracts with customers is disaggregated by class of customers for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 2020 2019 Residential $ 151,938 $ 139,137 Business 36,951 38,247 Industrial 7,496 9,077 Public authorities 12,862 12,482 Other (a) 13,227 16,020 Total revenue from contracts with customers $ 222,474 $ 214,963 Nine Months Ended September 30 2020 2019 Residential $ 360,935 $ 330,745 Business 93,175 95,433 Industrial 21,996 23,866 Public authorities 26,470 24,566 Other (a) 27,228 25,230 Total revenue from contracts with customers $ 529,804 $ 499,840 (a) Other includes the accrued unbilled revenue. The following tables disaggregate the Company’s non-regulated revenue by source for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 2020 2019 Operating and maintenance revenue $ 2,680 $ 2,929 Other non-regulated revenue 625 626 Non-regulated revenue from contracts with customers $ 3,305 $ 3,555 Lease revenue $ 629 $ 563 Total non-regulated revenue $ 3,934 $ 4,118 Nine Months Ended September 30 2020 2019 Operating and maintenance revenue $ 7,969 $ 9,248 Other non-regulated revenue 2,223 3,189 Non-regulated revenue from contracts with customers $ 10,192 $ 12,437 Lease revenue $ 1,777 $ 1,712 Total non-regulated revenue $ 11,969 $ 14,149 |
Financing Receivable, Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses for the period ended September 30, 2020: Allowance for credit losses As of September 30, 2020 Beginning balance 771 Provision for credit loss expense 2,895 Write-offs (1,317) Recoveries 396 Total ending allowance balance $ 2,745 |
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: September 30, 2020 December 31, 2019 Cash and cash equivalents 113,312 42,653 Restricted cash (included in "taxes, prepaid expenses and other assets") 638 645 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 113,950 $ 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: September 30, 2020 December 31, 2019 Cash and cash equivalents 113,312 42,653 Restricted cash (included in "taxes, prepaid expenses and other assets") 638 645 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 113,950 $ 43,298 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Annual Restricted Awards and Performance-Based Restricted Stock Unit Awards | The following table lists the number of Restricted Stock Awards (RSAs) granted and canceled during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 RSAs granted — — 39,915 36,183 RSAs canceled 2,153 2,739 9,338 14,394 The following table lists the number of performance-based Restricted Stock Unit Awards (RSUs) granted, issued, and canceled during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 RSUs granted — — 32,720 26,473 RSUs issued — — 41,731 62,726 RSUs canceled — — 22,936 31,177 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of changes in total common stockholders' equity | The Company’s changes in total common stockholders’ equity for the nine months ended September 30, 2020 and 2019 were as follows: Nine months ended September 30, 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 Net income 5,281 5,281 Issuance of common stock 686 7 32,056 32,063 Repurchase of common stock (2) — (105) (105) Dividends paid on common stock ($0.2125 per share) (10,356) (10,356) Balance at June 30, 2020 49,398 494 400,080 381,449 782,023 Net income 96,360 96,360 Issuance of common stock 444 4 22,410 22,414 Repurchase of common stock (2) — (99) (99) Dividends paid on common stock ($0.2125 per share) (10,506) (10,506) Balance at September 30, 2020 49,840 498 422,391 467,303 890,192 Nine months ended September 30, 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 Net income 16,996 16,996 Issuance of common stock 8 — 1,675 1,675 Repurchase of common stock (2) — (129) (129) Dividends paid on common stock ($0.1975 per share) (9,507) (9,507) Balance at June 30, 2019 48,140 481 340,274 382,409 723,164 Net income 42,424 42,424 Issuance of common stock 9 — 1,866 — 1,866 Repurchase of common stock (4) — (152) — (152) Dividends paid on common stock ($0.1975 per share) (9,507) (9,507) Balance at September 30, 2019 48,145 481 341,988 415,326 757,795 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule basic and Diluted Earnings Per Share | The computations of basic and diluted earnings per share are noted in the table below. Basic earnings per share are computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the period. 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 September 30 2020 2019 (In thousands, except per share data) Net income available to common stockholders $ 96,360 $ 42,424 Weighted average common shares outstanding, basic 49,576 48,141 Weighted average common shares outstanding, dilutive 49,576 48,141 Earnings per share - basic $ 1.94 $ 0.88 Earnings per share - diluted $ 1.94 $ 0.88 Nine Months Ended September 30 2020 2019 (In thousands, except per share data) Net income available to common stockholders $ 81,334 $ 51,780 Weighted average common shares outstanding, basic 49,034 48,121 Weighted average common shares outstanding, dilutive 49,034 48,121 Earnings per share - basic $ 1.66 $ 1.08 Earnings per share - diluted $ 1.66 $ 1.08 |
Pension Plan and Other Postre_2
Pension Plan and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 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 September 30 Pension Plan Other Benefits 2020 2019 2020 2019 Service cost $ 9,378 $ 6,910 $ 1,746 $ 2,082 Interest cost 6,440 6,941 808 1,407 Expected return on plan assets (8,284) (7,581) (1,804) (1,475) Amortization of prior service cost 1,058 1,262 50 49 Recognized net actuarial loss 3,208 1,821 (27) 214 Net periodic benefit cost $ 11,800 $ 9,353 $ 773 $ 2,277 Nine Months Ended September 30 Pension Plan Other Benefits 2020 2019 2020 2019 Service cost $ 27,002 $ 20,039 $ 5,959 $ 5,606 Interest cost 19,306 20,225 3,229 4,081 Expected return on plan assets (24,815) (22,714) (5,427) (4,346) Amortization of prior service cost 3,172 3,786 148 148 Recognized net actuarial loss 9,599 4,445 — 421 Net periodic benefit cost $ 34,264 $ 25,781 $ 3,909 $ 5,910 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes is shown in the tables below: Three Months Ended September 30 2020 2019 Income tax expense $ 14,049 $ 11,864 Nine Months Ended September 30 2020 2019 Income tax expense $ 10,641 $ 14,509 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Regulated Operations [Abstract] | |
Schedule of regulatory assets and liabilities | Regulatory assets and liabilities were comprised of the following as of September 30, 2020 and December 31, 2019: Recovery Period September 30, 2020 December 31, 2019 Regulatory Assets Pension and retiree group health Indefinitely $ 207,828 $ 208,321 Property-related temporary differences (tax benefits flowed through to customers) Indefinitely 107,962 104,931 Other accrued benefits Indefinitely 21,434 20,030 Net WRAM and MCBA long-term accounts receivable 1 - 2 years 40,036 25,465 Asset retirement obligations, net Indefinitely 21,018 19,567 Interim rates long-term accounts receivable 1 year 21,672 4,642 Tank coating 10 years 14,209 13,535 Recoverable property losses 10 years 4,775 5,000 PCBA 1 year 32,819 21,465 Other components of net periodic benefit cost Indefinitely 6,316 5,145 Other regulatory assets Various 6,366 5,221 Total Regulatory Assets $ 484,435 $ 433,322 Regulatory Liabilities Future tax benefits due to customers $ 173,048 $ 194,501 HCBA 7,407 4,271 CEBA 2,926 2,742 Net WRAM and MCBA long-term payable 374 211 Tax accounting memorandum account 711 806 Cost of capital memorandum account 15 151 1,2,3 trichloropropane (TCP) settlement proceeds 9,084 8,426 Other regulatory liabilities 374 305 Total Regulatory Liabilities $ 193,939 $ 211,413 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 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. September 30, 2020 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 806,938 — $ 991,973 — $ 991,973 Advances for construction 196,853 — 82,150 — 82,150 Total $ 1,003,791 $ — $ 1,074,123 $ — $ 1,074,123 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) | 9 Months Ended |
Sep. 30, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Consolidating Balance Sheet | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2020 (In thousands) Parent Cal Water All Other Consolidating Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 3,559,329 $ 281,744 $ (7,197) $ 3,835,194 Less accumulated depreciation and amortization (1,177) (1,151,266) (88,676) 2,239 (1,238,880) Net utility plant 141 2,408,063 193,068 (4,958) 2,596,314 Current assets: Cash and cash equivalents 16,679 85,877 10,756 — 113,312 Receivables and unbilled revenue, net — 160,479 8,636 — 169,115 Receivables from affiliates 26,962 942 261 (28,165) — Other current assets 272 20,933 2,132 — 23,337 Total current assets 43,913 268,231 21,785 (28,165) 305,764 Other assets: Regulatory assets — 479,613 4,822 — 484,435 Investments in affiliates 917,901 — — (917,901) — Long-term affiliate notes receivable 32,659 — — (32,659) — Other assets 2,349 84,154 33,636 (218) 119,921 Total other assets 952,909 563,767 38,458 (950,778) 604,356 TOTAL ASSETS $ 996,963 $ 3,240,061 $ 253,311 $ (983,901) $ 3,506,434 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 890,192 $ 805,444 $ 117,633 $ (923,077) $ 890,192 Affiliate long-term debt — — 32,659 (32,659) — Long-term debt, net — 784,715 340 — 785,055 Total capitalization 890,192 1,590,159 150,632 (955,736) 1,675,247 Current liabilities: Current maturities of long-term debt, net — 21,763 120 — 21,883 Short-term borrowings 105,100 270,000 — — 375,100 Payables to affiliates — 2,940 25,225 (28,165) — Accounts payable — 123,129 4,029 — 127,158 Accrued expenses and other liabilities 31 73,913 5,738 — 79,682 Total current liabilities 105,131 491,745 35,112 (28,165) 603,823 Deferred income taxes 1,640 235,791 8,025 — 245,456 Pension and postretirement benefits other than pensions — 261,081 — — 261,081 Regulatory liabilities and other — 251,230 5,824 — 257,054 Advances for construction — 196,324 529 — 196,853 Contributions in aid of construction — 213,731 53,189 — 266,920 TOTAL CAPITALIZATION AND LIABILITIES $ 996,963 $ 3,240,061 $ 253,311 $ (983,901) $ 3,506,434 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2019 (In thousands) Parent Cal Water All Other Consolidating 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 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 — 264,434 7,397 — 271,831 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 INCOME For the three months ended September 30, 2020 (In thousands) Parent Cal Water All Other Consolidating Consolidated Operating revenue $ — $ 287,820 $ 16,288 $ — $ 304,108 Operating expenses: Operations: Water production costs — 82,829 2,515 — 85,344 Administrative and general — 25,802 3,406 — 29,208 Other operations — 27,312 2,579 (145) 29,746 Maintenance — 6,872 257 — 7,129 Depreciation and amortization 23 22,984 1,712 (20) 24,699 Income tax (benefit) expense (113) 12,787 930 200 13,804 Property and other taxes — 6,948 1,168 — 8,116 Total operating (income) expenses (90) 185,534 12,567 35 198,046 Net operating income 90 102,286 3,721 (35) 106,062 Other income and expenses: Non-regulated revenue 549 3,588 492 (695) 3,934 Non-regulated expenses — (2,321) (544) — (2,865) Other components of net periodic benefit cost — (1,016) 8 — (1,008) Allowance for equity funds used during construction — 973 — — 973 Income tax (expense) benefit on other income and expenses (152) (289) 2 194 (245) Net other income (loss) 397 935 (42) (501) 789 Interest: Interest expense 393 10,762 556 (549) 11,162 Allowance for borrowed funds used during construction — (631) (40) — (671) Net interest expense 393 10,131 516 (549) 10,491 Equity earnings of subsidiaries 96,266 — — (96,266) — Net income $ 96,360 $ 93,090 $ 3,163 $ (96,253) $ 96,360 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended September 30, 2019 (In thousands) Parent Cal Water All Other Consolidating Consolidated Operating revenue $ — $ 219,261 $ 13,276 $ — $ 232,537 Operating expenses: Operations: Water production costs — 78,048 2,520 — 80,568 Administrative and general — 24,498 2,281 — 26,779 Other operations — 22,872 1,825 (147) 24,550 Maintenance — 6,823 242 — 7,065 Depreciation and amortization 23 20,770 1,501 (21) 22,273 Income tax (benefit) expense (132) 11,332 779 215 12,194 Property and other taxes — 6,620 921 — 7,541 Total operating (income) expenses (109) 170,963 10,069 47 180,970 Net operating income 109 48,298 3,207 (47) 51,567 Other income and expenses: Non-regulated revenue 599 3,865 399 (745) 4,118 Non-regulated expenses — (3,907) (444) — (4,351) Other components of net periodic benefit cost — (1,784) (73) — (1,857) Allowance for equity funds used during construction — 1,868 — — 1,868 Income tax (expense) benefit on other income and expenses (168) 268 22 208 330 Net other income (loss) 431 310 (96) (537) 108 Interest: Interest expense 450 9,820 608 (599) 10,279 Allowance for borrowed funds used during construction — (954) (74) — (1,028) Net interest expense 450 8,866 534 (599) 9,251 Equity earnings of subsidiaries 42,334 — — (42,334) — Net income $ 42,424 $ 39,742 $ 2,577 $ (42,319) $ 42,424 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the nine months ended September 30, 2020 (In thousands) Parent Cal Water All Other Consolidating Consolidated Operating revenue $ — $ 567,494 $ 37,661 $ — $ 605,155 Operating expenses: Operations: Water production costs — 203,485 6,977 — 210,462 Administrative and general — 77,025 8,802 — 85,827 Other operations — 63,427 6,628 (437) 69,618 Maintenance — 19,980 944 — 20,924 Depreciation and amortization 70 68,886 4,836 (59) 73,733 Income tax (benefit) expense (341) 9,054 1,176 600 10,489 Property and other taxes — 19,618 2,852 — 22,470 Total operating (income) expenses (271) 461,475 32,215 104 493,523 Net operating income 271 106,019 5,446 (104) 111,632 Other income and expenses: Non-regulated revenue 1,648 11,102 1,304 (2,085) 11,969 Non-regulated expenses — (10,864) (947) — (11,811) Other components of net periodic benefit cost — (3,717) (53) — (3,770) Allowance for equity funds used during construction — 4,292 — — 4,292 Income tax expense on other income and expenses (460) (179) (96) 583 (152) Net other income 1,188 634 208 (1,502) 528 Interest: Interest expense 1,161 32,402 1,658 (1,648) 33,573 Allowance for borrowed funds used during construction — (2,604) (143) — (2,747) Net interest expense 1,161 29,798 1,515 (1,648) 30,826 Equity earnings of subsidiaries 81,036 — — (81,036) — Net income $ 81,334 $ 76,855 $ 4,139 $ (80,994) $ 81,334 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the nine months ended September 30, 2019 (In thousands) Parent Cal Water All Other Consolidating Consolidated Operating revenue $ — $ 502,785 $ 34,894 $ — $ 537,679 Operating expenses: Operations: Water production costs — 183,617 7,178 — 190,795 Administrative and general 23 73,908 7,379 — 81,310 Other operations — 59,851 5,499 (437) 64,913 Maintenance — 18,469 743 — 19,212 Depreciation and amortization 70 62,471 4,488 (62) 66,967 Income tax (benefit) expense (411) 12,019 1,265 651 13,524 Property and other taxes — 19,431 2,471 — 21,902 Total operating (income) expenses (318) 429,766 29,023 152 458,623 Net operating income 318 73,019 5,871 (152) 79,056 Other income and expenses: Non-regulated revenue 1,826 13,374 1,212 (2,263) 14,149 Non-regulated expenses — (9,610) (860) — (10,470) Other components of net periodic benefit cost — (4,177) (131) — (4,308) Allowance for equity funds used during construction — 5,087 — — 5,087 Income tax expense on other income and expenses (511) (1,028) (79) 633 (985) Net other income 1,315 3,646 142 (1,630) 3,473 Interest: Interest expense 1,376 32,141 1,841 (1,826) 33,532 Allowance for borrowed funds used during construction — (2,592) (191) — (2,783) Net interest expense 1,376 29,549 1,650 (1,826) 30,749 Equity earnings of subsidiaries 51,523 — — (51,523) — Net income $ 51,780 $ 47,116 $ 4,363 $ (51,479) $ 51,780 |
Schedule of Condensed Consolidating Statement of Cash Flows | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2020 (In thousands) Parent Cal Water All Other Consolidating Consolidated Operating activities: Net income $ 81,334 $ 76,855 $ 4,139 $ (80,994) $ 81,334 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (81,036) — — 81,036 — Dividends received from affiliates 31,177 — — (31,177) — Depreciation and amortization 70 70,604 4,935 (59) 75,550 Changes in value of life insurance contracts — (621) — — (621) Allowance for equity funds used during construction — (4,292) — — (4,292) Changes in operating assets and liabilities (463) (17,633) (311) — (18,407) Other changes in noncurrent assets and liabilities 3,262 (42,184) 2,005 17 (36,900) Net cash provided by operating activities 34,344 82,729 10,768 (31,177) 96,664 Investing activities: Utility plant expenditures — (212,288) (8,973) — (221,261) Business acquisition, net of cash acquired (1,950) — (37,594) — (39,544) Investment in affiliates (90,871) — — 90,871 — Changes in affiliate advances 2,238 2,679 (145) (4,772) — Issuance of affiliate short-term borrowings (3,500) — — 3,500 — Issuance of affiliate long-term borrowings (4,076) — — 4,076 — Reduction of affiliates long-term debt 1,580 — — (1,580) — Purchase of life insurance contracts — (2,335) — — (2,335) Net cash used in investing activities (96,579) (211,944) (46,712) 92,095 (263,140) Financing Activities: Short-term borrowings 50,000 220,000 — — 270,000 Repayment of short-term borrowings — (70,000) — — (70,000) Investment from affiliates — 57,266 33,605 (90,871) — Changes in affiliate advances — (3,175) (1,597) 4,772 — Proceeds from affiliate short-term borrowings — — 3,500 (3,500) — Proceeds from affiliate long-term borrowings — — 4,076 (4,076) — Repayment of affiliates long-term borrowings — — (1,580) 1,580 — Repayment of long-term debt — (1,415) (120) — (1,535) Advances and contributions in aid of construction — 19,735 127 — 19,862 Refunds of advances for construction — (7,015) (2) — (7,017) Repurchase of common stock (1,578) — — — (1,578) Issuance of common stock 58,573 — — — 58,573 Dividends paid to non-affiliates (31,177) — — — (31,177) Dividends paid to affiliates — (29,461) (1,716) 31,177 — Net cash provided by financing activities 75,818 185,935 36,293 (60,918) 237,128 Change in cash, cash equivalents, and restricted cash 13,583 56,720 349 — 70,652 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 $ 16,679 $ 86,399 $ 10,872 — $ 113,950 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2019 (In thousands) Parent Cal Water All Other Consolidating Consolidated Operating activities: Net income $ 51,780 $ 47,116 $ 4,363 $ (51,479) $ 51,780 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (51,523) — — 51,523 — Dividends received from affiliates 28,507 — — (28,507) — Depreciation and amortization 70 63,975 4,539 (62) 68,522 Changes in value of life insurance contracts — (3,433) — — (3,433) Allowance for equity funds used during construction — (5,087) — — (5,087) Changes in operating assets and liabilities 194 (6,744) 1,509 — (5,041) Other changes in noncurrent assets and liabilities 5,239 14,560 1,785 18 21,602 Net cash provided by operating activities 34,267 110,387 12,196 (28,507) 128,343 Investing activities: Utility plant expenditures — (185,883) (9,059) — (194,942) Changes in affiliate advances (3,199) 3,534 (320) (15) — Issuance of affiliate short-term borrowings (4,300) — — 4,300 — Reduction of affiliates long-term debt 1,462 — — (1,462) — Purchase of life insurance contracts — (2,216) — — (2,216) Net cash used in investing activities (6,037) (184,565) (9,379) 2,823 (197,158) Financing Activities: Short-term borrowings — 210,000 — — 210,000 Repayment of short-term borrowings — (120,000) — — (120,000) Changes in affiliate advances (17) 4,419 (4,417) 15 — Proceeds from affiliate short-term borrowings — — 4,300 (4,300) — Repayment of affiliates long-term borrowings — — (1,462) 1,462 — Issuance of long-term debt, net of expenses — 398,431 — — 398,431 Repayment of long-term debt — (401,417) (213) — (401,630) Advances and contributions in aid for construction — 21,176 90 — 21,266 Refunds of advances for construction — (5,560) — — (5,560) Repurchase of common stock (2,355) — — — (2,355) Issuance of common stock 1,278 — — — 1,278 Dividends paid to non-affiliates (28,507) — — — (28,507) Dividends paid to affiliates — (27,419) (1,088) 28,507 — Net cash (used in) provided by financing activities (29,601) 79,630 (2,790) 25,684 72,923 Change in cash, cash equivalents, and restricted cash (1,371) 5,452 27 — 4,108 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 $ 2,408 $ 39,690 $ 9,725 — $ 51,823 |
Organization and Operations a_2
Organization and Operations and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 222,474 | $ 214,963 | $ 529,804 | $ 499,840 |
Total operating revenue | 304,108 | 232,537 | 605,155 | 537,679 |
Total non-regulated revenue | 3,934 | 4,118 | 11,969 | 14,149 |
Regulated Water and WasteWater Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 222,474 | 214,963 | 529,804 | 499,840 |
Regulatory balancing account revenue | 81,634 | 17,574 | 75,351 | 37,839 |
Total operating revenue | 304,108 | 232,537 | 605,155 | 537,679 |
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 151,938 | 139,137 | 360,935 | 330,745 |
Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 36,951 | 38,247 | 93,175 | 95,433 |
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 7,496 | 9,077 | 21,996 | 23,866 |
Public authorities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 12,862 | 12,482 | 26,470 | 24,566 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 13,227 | 16,020 | 27,228 | 25,230 |
Operating and maintenance revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,680 | 2,929 | 7,969 | 9,248 |
Other non-regulated revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 625 | 626 | 2,223 | 3,189 |
Non-Regulated Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,305 | 3,555 | 10,192 | 12,437 |
Lease Income | 629 | 563 | 1,777 | 1,712 |
Total non-regulated revenue | $ 3,934 | $ 4,118 | $ 11,969 | $ 14,149 |
Narrative (Details)
Narrative (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Maximum collection period | 24 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Allowance for credit losses (Details) - As of September 30, 2020 $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 771 |
Provision for credit loss expense | 2,895 |
Write-offs | (1,317) |
Recoveries | 396 |
Total ending allowance balance | $ 2,745 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 113,312 | $ 42,653 | ||
Restricted cash (included in "taxes, prepaid expenses and other assets") | 638 | 645 | ||
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | $ 113,950 | $ 43,298 | $ 51,823 | $ 47,715 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock-based Compensation | ||||
Recorded compensation costs for the RSAs and RSUs | $ 1.8 | $ 1.4 | $ 3.1 | $ 5.3 |
RSAs | ||||
Stock-based Compensation | ||||
Granted (in shares) | 0 | 0 | 39,915 | 36,183 |
Canceled (in shares) | 2,153 | 2,739 | 9,338 | 14,394 |
Weighted average grant date fair value (in dollars per share) | $ 51.41 | $ 52.83 | ||
RSUs | ||||
Stock-based Compensation | ||||
Granted (in shares) | 0 | 0 | 32,720 | 26,473 |
Awards issued (in shares) | 0 | 0 | 41,731 | 62,726 |
Canceled (in shares) | 0 | 0 | 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 | ||||
Vesting period | 36 months | |||
Director | RSAs | ||||
Stock-based Compensation | ||||
Vesting period | 12 months |
Equity Narrative (Details)
Equity Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Equity [Abstract] | ||
Sale of Stock, Number of Shares Issued in Transaction (in shares) | 432,420 | 1,225,572 |
Proceeds from sale of common stock | $ 20.1 | $ 57.3 |
Payments for commissions | $ 0.2 | $ 0.6 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance at beginning of period (in shares) | 48,532,000 | 48,532,000 | ||||||
Balance at beginning of period | $ 782,023 | $ 755,140 | $ 779,906 | $ 723,164 | $ 714,129 | $ 730,157 | $ 779,906 | $ 730,157 |
Net income | 96,360 | 5,281 | (20,307) | 42,424 | 16,996 | (7,640) | $ 81,334 | 51,780 |
Issuance of common stock | 22,414 | 32,063 | 7,229 | 1,866 | 1,675 | 3,179 | ||
Repurchase of common stock | (99) | (105) | (1,373) | (152) | (129) | (2,074) | ||
Dividends paid on common stock | $ (10,506) | (10,356) | (10,315) | (9,507) | (9,507) | (9,493) | ||
Balance at end of period (in shares) | 49,840,000 | 49,840,000 | ||||||
Balance at end of period | $ 890,192 | $ 782,023 | $ 755,140 | $ 757,795 | $ 723,164 | $ 714,129 | $ 890,192 | $ 757,795 |
Dividends paid on common stock (in dollars per share) | $ 0.2125 | $ 0.2125 | $ 0.2125 | $ 0.1975 | $ 0.1975 | $ 0.1975 | ||
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance at beginning of period (in shares) | 49,398,000 | 48,714,000 | 48,532,000 | 48,140,000 | 48,134,000 | 48,065,000 | 48,532,000 | 48,065,000 |
Balance at beginning of period | $ 494 | $ 487 | $ 485 | $ 481 | $ 481 | $ 481 | $ 485 | $ 481 |
Issuance of common stock (in shares) | 444,000 | 686,000 | 210,000 | 9,000 | 8,000 | 109,000 | ||
Issuance of common stock | $ 4 | $ 7 | $ 2 | |||||
Repurchase of common stock (in shares) | (2,000) | (2,000) | (28,000) | (4,000) | (2,000) | (40,000) | ||
Balance at end of period (in shares) | 49,840,000 | 49,398,000 | 48,714,000 | 48,145,000 | 48,140,000 | 48,134,000 | 49,840,000 | 48,145,000 |
Balance at end of period | $ 498 | $ 494 | $ 487 | $ 481 | $ 481 | $ 481 | $ 498 | $ 481 |
Additional Paid-in Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance at beginning of period | 400,080 | 368,129 | 362,275 | 340,274 | 338,728 | 337,623 | 362,275 | 337,623 |
Issuance of common stock | 22,410 | 32,056 | 7,227 | 1,866 | 1,675 | 3,179 | ||
Repurchase of common stock | (99) | (105) | (1,373) | (152) | (129) | (2,074) | ||
Balance at end of period | 422,391 | 400,080 | 368,129 | 341,988 | 340,274 | 338,728 | 422,391 | 341,988 |
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance at beginning of period | 381,449 | 386,524 | 417,146 | 382,409 | 374,920 | 392,053 | 417,146 | 392,053 |
Net income | 96,360 | 5,281 | (20,307) | 42,424 | 16,996 | (7,640) | ||
Dividends paid on common stock | (10,506) | (10,356) | (10,315) | (9,507) | (9,507) | (9,493) | ||
Balance at end of period | $ 467,303 | $ 381,449 | $ 386,524 | $ 415,326 | $ 382,409 | $ 374,920 | $ 467,303 | $ 415,326 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||||
Net income available to common stockholders | $ 96,360 | $ 5,281 | $ (20,307) | $ 42,424 | $ 16,996 | $ (7,640) | $ 81,334 | $ 51,780 |
Weighted average common shares outstanding, basic (in shares) | 49,576 | 48,141 | 49,034 | 48,121 | ||||
Weighed average common shares outstanding, dilutive (in shares) | 49,576 | 48,141 | 49,034 | 48,121 | ||||
Earnings per share - basic (in dollars per share) | $ 1.94 | $ 0.88 | $ 1.66 | $ 1.08 | ||||
Earnings per share - diluted (in dollars per share) | $ 1.94 | $ 0.88 | $ 1.66 | $ 1.08 |
Pension Plan and Other Postre_3
Pension Plan and Other Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Plan | ||||
Pension Plan and Other Postretirement Benefits | ||||
Employer cash contributions | $ 25,800 | $ 12,500 | ||
Estimated cash contributions in the current fiscal year | $ 38,000 | 38,000 | ||
Components of the pension plans and other postretirement benefits | ||||
Service cost | 9,378 | $ 6,910 | 27,002 | 20,039 |
Interest cost | 6,440 | 6,941 | 19,306 | 20,225 |
Expected return on plan assets | (8,284) | (7,581) | (24,815) | (22,714) |
Amortization of prior service cost | 1,058 | 1,262 | 3,172 | 3,786 |
Recognized net actuarial loss | 3,208 | 1,821 | 9,599 | 4,445 |
Net periodic benefit cost | 11,800 | 9,353 | 34,264 | 25,781 |
Other Benefits | ||||
Pension Plan and Other Postretirement Benefits | ||||
Employer cash contributions | 5,700 | 5,600 | ||
Estimated cash contributions in the current fiscal year | 7,500 | 7,500 | ||
Components of the pension plans and other postretirement benefits | ||||
Service cost | 1,746 | 2,082 | 5,959 | 5,606 |
Interest cost | 808 | 1,407 | 3,229 | 4,081 |
Expected return on plan assets | (1,804) | (1,475) | (5,427) | (4,346) |
Amortization of prior service cost | 50 | 49 | 148 | 148 |
Recognized net actuarial loss | (27) | 214 | 0 | 421 |
Net periodic benefit cost | $ 773 | $ 2,277 | $ 3,909 | $ 5,910 |
Short-term and Long-term Borr_2
Short-term and Long-term Borrowings (Details) - Revolving Credit Facility - USD ($) | Mar. 29, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 550,000,000 | |||
Debt instrument, term | 5 years | |||
Average borrowing rate | 1.74% | 3.38% | ||
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 | $ 270,000,000 | $ 120,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense increase (decrease) | $ 2,100 | $ (3,900) | ||
Income tax expense (benefit) | 14,049 | $ 11,864 | $ 10,641 | $ 14,509 |
Effective tax rate estimate | 11.60% | 21.90% | ||
Unrecognized tax benefits | 12,900 | 10,600 | $ 12,900 | $ 10,600 |
Tax benefits that, if recognized, would affect the effective tax rate | $ 3,500 | $ 3,100 | $ 3,500 | $ 3,100 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 14, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Regulatory Assets and Liabilities | |||
Total Regulatory Assets | $ 484,435 | $ 433,322 | |
Total Regulatory Liabilities | 193,939 | 211,413 | |
Short-term portion of the regulatory assets | 54,415 | 38,225 | |
Short-term portion of the regulatory liabilities | 11,003 | 4,462 | |
Property-related temporary differences (tax benefits flowed through to customers) | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Liabilities | 173,048 | 194,501 | |
HCBA | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Liabilities | 7,407 | 4,271 | |
CEBA | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Liabilities | 2,926 | 2,742 | |
Net WRAM and MCBA long-term payable | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Liabilities | 374 | 211 | |
Tax accounting memorandum account | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Liabilities | 711 | 806 | |
Cost of capital memorandum account | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Liabilities | 15 | 151 | |
1,2,3 trichloropropane (TCP) settlement proceeds | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Liabilities | 9,084 | 8,426 | |
Other regulatory liabilities | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Liabilities | 374 | 305 | |
Pension and retiree group health | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Assets | 207,828 | 208,321 | |
Property-related temporary differences (tax benefits flowed through to customers) | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Assets | 107,962 | 104,931 | |
Other accrued benefits | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Assets | 21,434 | 20,030 | |
Net WRAM and MCBA long-term accounts receivable | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Assets | 40,036 | 25,465 | |
Asset retirement obligations, net | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Assets | $ 21,018 | 19,567 | |
Interim rates long-term accounts receivable | |||
Regulatory Assets and Liabilities | |||
Recovery Period | 1 year | ||
Total Regulatory Assets | $ 21,672 | 4,642 | |
Tank coating | |||
Regulatory Assets and Liabilities | |||
Recovery Period | 10 years | ||
Total Regulatory Assets | $ 14,209 | 13,535 | |
Recoverable property losses | |||
Regulatory Assets and Liabilities | |||
Recovery Period | 10 years | ||
Total Regulatory Assets | $ 4,775 | 5,000 | |
PCBA | |||
Regulatory Assets and Liabilities | |||
Recovery Period | 1 year | ||
Total Regulatory Assets | $ 32,819 | 21,465 | |
Other components of net periodic benefit cost | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Assets | 6,316 | 5,145 | |
Other regulatory assets | |||
Regulatory Assets and Liabilities | |||
Total Regulatory Assets | $ 6,366 | $ 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 | ||
2020 - 2021 | Subsequent Event | |||
Regulatory Assets and Liabilities | |||
Investments in Capital Improvements | $ 828,000 | ||
Revenue requirement threshold | 698,700 | ||
2020 - 2021 | Subsequent Event | Water System Infrastructure | |||
Regulatory Assets and Liabilities | |||
Investments in Capital Improvements | $ 148,000 |
Commitments and Contingencies -
Commitments and Contingencies - Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Contingency loss recognized liability | $ 2.4 | $ 2.5 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value of Financial Assets and Liabilities | ||
Risk premium (as a percent) | 1.83% | |
Advances for construction | $ 196,853 | $ 191,062 |
Cost | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 806,938 | 808,622 |
Advances for construction | 196,853 | 191,062 |
Total | 1,003,791 | 999,684 |
Fair Value | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 991,973 | 873,454 |
Advances for construction | 82,150 | 79,550 |
Total | 1,074,123 | 953,004 |
Fair Value | 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 |
Fair Value | Level 2 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 991,973 | 873,454 |
Advances for construction | 82,150 | 79,550 |
Total | 1,074,123 | 953,004 |
Fair Value | 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 ($) | Sep. 30, 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 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Utility plant: | ||||||||
Utility plant | $ 3,835,194 | $ 3,550,485 | ||||||
Less accumulated depreciation and amortization | (1,238,880) | (1,144,115) | ||||||
Net utility plant | 2,596,314 | 2,406,370 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | 113,312 | 42,653 | ||||||
Receivables and unbilled revenue, net | 169,115 | 119,349 | ||||||
Receivables from affiliates | 0 | 0 | ||||||
Other current assets | 23,337 | 22,710 | ||||||
Total current assets | 305,764 | 184,712 | ||||||
Other assets: | ||||||||
Regulatory assets | 484,435 | 433,322 | ||||||
Investments in affiliates | 0 | 0 | ||||||
Long-term affiliate notes receivable | 0 | 0 | ||||||
Other assets | 119,921 | 86,904 | ||||||
Total other assets | 604,356 | 520,226 | ||||||
TOTAL ASSETS | 3,506,434 | 3,111,308 | ||||||
Capitalization: | ||||||||
Common stockholders’ equity | 890,192 | $ 782,023 | $ 755,140 | 779,906 | $ 757,795 | $ 723,164 | $ 714,129 | $ 730,157 |
Affiliate long-term debt | 0 | 0 | ||||||
Long-term debt, net | 785,055 | 786,754 | ||||||
Total capitalization | 1,675,247 | 1,566,660 | ||||||
Current liabilities: | ||||||||
Current maturities of long-term debt, net | 21,883 | 21,868 | ||||||
Short-term borrowings | 375,100 | 175,100 | ||||||
Payables to affiliates | 0 | 0 | ||||||
Accounts payable | 127,158 | 108,463 | ||||||
Accrued expenses and other liabilities | 79,682 | 53,290 | ||||||
Total current liabilities | 603,823 | 358,721 | ||||||
Deferred income taxes | 245,456 | 222,590 | ||||||
Pension and postretirement benefits other than pensions | 261,081 | 258,907 | ||||||
Regulatory liabilities and other | 257,054 | 271,831 | ||||||
Advances for construction | 196,853 | 191,062 | ||||||
Contributions in aid of construction | 266,920 | 241,537 | ||||||
TOTAL CAPITALIZATION AND LIABILITIES | 3,506,434 | 3,111,308 | ||||||
Consolidating Adjustments | ||||||||
Utility plant: | ||||||||
Utility plant | (7,197) | (7,197) | ||||||
Less accumulated depreciation and amortization | 2,239 | 2,180 | ||||||
Net utility plant | (4,958) | (5,017) | ||||||
Current assets: | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Receivables and unbilled revenue, net | 0 | 0 | ||||||
Receivables from affiliates | (28,165) | (29,633) | ||||||
Other current assets | 0 | 0 | ||||||
Total current assets | (28,165) | (29,633) | ||||||
Other assets: | ||||||||
Regulatory assets | 0 | 0 | ||||||
Investments in affiliates | (917,901) | (777,170) | ||||||
Long-term affiliate notes receivable | (32,659) | (30,060) | ||||||
Other assets | (218) | (221) | ||||||
Total other assets | (950,778) | (807,451) | ||||||
TOTAL ASSETS | (983,901) | (842,101) | ||||||
Capitalization: | ||||||||
Common stockholders’ equity | (923,077) | (782,388) | ||||||
Affiliate long-term debt | (32,659) | (30,060) | ||||||
Long-term debt, net | 0 | 0 | ||||||
Total capitalization | (955,736) | (812,448) | ||||||
Current liabilities: | ||||||||
Current maturities of long-term debt, net | 0 | 0 | ||||||
Short-term borrowings | 0 | 0 | ||||||
Payables to affiliates | (28,165) | (29,633) | ||||||
Accounts payable | 0 | 0 | ||||||
Accrued expenses and other liabilities | 0 | 0 | ||||||
Total current liabilities | (28,165) | (29,633) | ||||||
Deferred income taxes | 0 | (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 | (983,901) | (842,101) | ||||||
Parent Company | Reportable Legal Entities | ||||||||
Utility plant: | ||||||||
Utility plant | 1,318 | 1,318 | ||||||
Less accumulated depreciation and amortization | (1,177) | (1,107) | ||||||
Net utility plant | 141 | 211 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | 16,679 | 3,096 | ||||||
Receivables and unbilled revenue, net | 0 | 0 | ||||||
Receivables from affiliates | 26,962 | 25,803 | ||||||
Other current assets | 272 | 90 | ||||||
Total current assets | 43,913 | 28,989 | ||||||
Other assets: | ||||||||
Regulatory assets | 0 | 0 | ||||||
Investments in affiliates | 917,901 | 777,170 | ||||||
Long-term affiliate notes receivable | 32,659 | 30,060 | ||||||
Other assets | 2,349 | 409 | ||||||
Total other assets | 952,909 | 807,639 | ||||||
TOTAL ASSETS | 996,963 | 836,839 | ||||||
Capitalization: | ||||||||
Common stockholders’ equity | 890,192 | 779,906 | ||||||
Affiliate long-term debt | 0 | 0 | ||||||
Long-term debt, net | 0 | 0 | ||||||
Total capitalization | 890,192 | 779,906 | ||||||
Current liabilities: | ||||||||
Current maturities of long-term debt, net | 0 | 0 | ||||||
Short-term borrowings | 105,100 | 55,100 | ||||||
Payables to affiliates | 0 | 0 | ||||||
Accounts payable | 0 | 0 | ||||||
Accrued expenses and other liabilities | 31 | 313 | ||||||
Total current liabilities | 105,131 | 55,413 | ||||||
Deferred income taxes | 1,640 | 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 | 996,963 | 836,839 | ||||||
Cal Water | Reportable Legal Entities | ||||||||
Utility plant: | ||||||||
Utility plant | 3,559,329 | 3,332,331 | ||||||
Less accumulated depreciation and amortization | (1,151,266) | (1,079,627) | ||||||
Net utility plant | 2,408,063 | 2,252,704 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | 85,877 | 29,098 | ||||||
Receivables and unbilled revenue, net | 160,479 | 114,999 | ||||||
Receivables from affiliates | 942 | 3,621 | ||||||
Other current assets | 20,933 | 20,615 | ||||||
Total current assets | 268,231 | 168,333 | ||||||
Other assets: | ||||||||
Regulatory assets | 479,613 | 428,639 | ||||||
Investments in affiliates | 0 | 0 | ||||||
Long-term affiliate notes receivable | 0 | 0 | ||||||
Other assets | 84,154 | 81,591 | ||||||
Total other assets | 563,767 | 510,230 | ||||||
TOTAL ASSETS | 3,240,061 | 2,931,267 | ||||||
Capitalization: | ||||||||
Common stockholders’ equity | 805,444 | 700,784 | ||||||
Affiliate long-term debt | 0 | 0 | ||||||
Long-term debt, net | 784,715 | 786,310 | ||||||
Total capitalization | 1,590,159 | 1,487,094 | ||||||
Current liabilities: | ||||||||
Current maturities of long-term debt, net | 21,763 | 21,732 | ||||||
Short-term borrowings | 270,000 | 120,000 | ||||||
Payables to affiliates | 2,940 | 6,115 | ||||||
Accounts payable | 123,129 | 104,419 | ||||||
Accrued expenses and other liabilities | 73,913 | 50,569 | ||||||
Total current liabilities | 491,745 | 302,835 | ||||||
Deferred income taxes | 235,791 | 217,847 | ||||||
Pension and postretirement benefits other than pensions | 261,081 | 258,907 | ||||||
Regulatory liabilities and other | 251,230 | 264,434 | ||||||
Advances for construction | 196,324 | 190,568 | ||||||
Contributions in aid of construction | 213,731 | 209,582 | ||||||
TOTAL CAPITALIZATION AND LIABILITIES | 3,240,061 | 2,931,267 | ||||||
All Other Subsidiaries | Reportable Legal Entities | ||||||||
Utility plant: | ||||||||
Utility plant | 281,744 | 224,033 | ||||||
Less accumulated depreciation and amortization | (88,676) | (65,561) | ||||||
Net utility plant | 193,068 | 158,472 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | 10,756 | 10,459 | ||||||
Receivables and unbilled revenue, net | 8,636 | 4,350 | ||||||
Receivables from affiliates | 261 | 209 | ||||||
Other current assets | 2,132 | 2,005 | ||||||
Total current assets | 21,785 | 17,023 | ||||||
Other assets: | ||||||||
Regulatory assets | 4,822 | 4,683 | ||||||
Investments in affiliates | 0 | 0 | ||||||
Long-term affiliate notes receivable | 0 | 0 | ||||||
Other assets | 33,636 | 5,125 | ||||||
Total other assets | 38,458 | 9,808 | ||||||
TOTAL ASSETS | 253,311 | 185,303 | ||||||
Capitalization: | ||||||||
Common stockholders’ equity | 117,633 | 81,604 | ||||||
Affiliate long-term debt | 32,659 | 30,060 | ||||||
Long-term debt, net | 340 | 444 | ||||||
Total capitalization | 150,632 | 112,108 | ||||||
Current liabilities: | ||||||||
Current maturities of long-term debt, net | 120 | 136 | ||||||
Short-term borrowings | 0 | 0 | ||||||
Payables to affiliates | 25,225 | 23,518 | ||||||
Accounts payable | 4,029 | 4,044 | ||||||
Accrued expenses and other liabilities | 5,738 | 2,408 | ||||||
Total current liabilities | 35,112 | 30,106 | ||||||
Deferred income taxes | 8,025 | 3,243 | ||||||
Pension and postretirement benefits other than pensions | 0 | 0 | ||||||
Regulatory liabilities and other | 5,824 | 7,397 | ||||||
Advances for construction | 529 | 494 | ||||||
Contributions in aid of construction | 53,189 | 31,955 | ||||||
TOTAL CAPITALIZATION AND LIABILITIES | $ 253,311 | $ 185,303 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements - Condensed Consolidating Statement of (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Consolidating Financial Statements | ||||
Operating revenue | $ 304,108 | $ 232,537 | $ 605,155 | $ 537,679 |
Operations: | ||||
Water production costs | 85,344 | 80,568 | 210,462 | 190,795 |
Administrative and general | 29,208 | 26,779 | 85,827 | 81,310 |
Other operations | 29,746 | 24,550 | 69,618 | 64,913 |
Maintenance | 7,129 | 7,065 | 20,924 | 19,212 |
Depreciation and amortization | 24,699 | 22,273 | 73,733 | 66,967 |
Income tax (benefit) expense | 13,804 | 12,194 | 10,489 | 13,524 |
Property and other taxes | 8,116 | 7,541 | 22,470 | 21,902 |
Total operating (income) expenses | 198,046 | 180,970 | 493,523 | 458,623 |
Net operating income | 106,062 | 51,567 | 111,632 | 79,056 |
Other income and expenses: | ||||
Non-regulated revenue | 3,934 | 4,118 | 11,969 | 14,149 |
Non-regulated expenses | (2,865) | (4,351) | (11,811) | (10,470) |
Other components of net periodic benefit cost | (1,008) | (1,857) | (3,770) | (4,308) |
Allowance for equity funds used during construction | 973 | 1,868 | 4,292 | 5,087 |
Income tax (expense) benefit on other income and expenses | (245) | 330 | (152) | (985) |
Net other income (loss) | 789 | 108 | 528 | 3,473 |
Interest expense: | ||||
Interest expense | 11,162 | 10,279 | 33,573 | 33,532 |
Allowance for borrowed funds used during construction | (671) | (1,028) | (2,747) | (2,783) |
Net interest expense | 10,491 | 9,251 | 30,826 | 30,749 |
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 96,360 | 42,424 | 81,334 | 51,780 |
Consolidating Adjustments | ||||
Condensed Consolidating Financial Statements | ||||
Operating revenue | 0 | 0 | 0 | 0 |
Operations: | ||||
Water production costs | 0 | 0 | 0 | 0 |
Administrative and general | 0 | 0 | 0 | 0 |
Other operations | (145) | (147) | (437) | (437) |
Maintenance | 0 | 0 | 0 | 0 |
Depreciation and amortization | (20) | (21) | (59) | (62) |
Income tax (benefit) expense | 200 | 215 | 600 | 651 |
Property and other taxes | 0 | 0 | 0 | 0 |
Total operating (income) expenses | 35 | 47 | 104 | 152 |
Net operating income | (35) | (47) | (104) | (152) |
Other income and expenses: | ||||
Non-regulated revenue | (695) | (745) | (2,085) | (2,263) |
Non-regulated expenses | 0 | 0 | 0 | 0 |
Other components of net periodic benefit cost | 0 | 0 | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 |
Income tax (expense) benefit on other income and expenses | 194 | 208 | 583 | 633 |
Net other income (loss) | (501) | (537) | (1,502) | (1,630) |
Interest expense: | ||||
Interest expense | (549) | (599) | (1,648) | (1,826) |
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 |
Net interest expense | (549) | (599) | (1,648) | (1,826) |
Equity earnings of subsidiaries | (96,266) | (42,334) | (81,036) | (51,523) |
Net income | (96,253) | (42,319) | (80,994) | (51,479) |
Parent Company | Reportable Legal Entities | ||||
Condensed Consolidating Financial Statements | ||||
Operating revenue | 0 | 0 | 0 | 0 |
Operations: | ||||
Water production costs | 0 | 0 | 0 | 0 |
Administrative and general | 0 | 0 | 0 | 23 |
Other operations | 0 | 0 | 0 | 0 |
Maintenance | 0 | 0 | 0 | 0 |
Depreciation and amortization | 23 | 23 | 70 | 70 |
Income tax (benefit) expense | (113) | (132) | (341) | (411) |
Property and other taxes | 0 | 0 | 0 | 0 |
Total operating (income) expenses | (90) | (109) | (271) | (318) |
Net operating income | 90 | 109 | 271 | 318 |
Other income and expenses: | ||||
Non-regulated revenue | 549 | 599 | 1,648 | 1,826 |
Non-regulated expenses | 0 | 0 | 0 | 0 |
Other components of net periodic benefit cost | 0 | 0 | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 |
Income tax (expense) benefit on other income and expenses | (152) | (168) | (460) | (511) |
Net other income (loss) | 397 | 431 | 1,188 | 1,315 |
Interest expense: | ||||
Interest expense | 393 | 450 | 1,161 | 1,376 |
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 |
Net interest expense | 393 | 450 | 1,161 | 1,376 |
Equity earnings of subsidiaries | 96,266 | 42,334 | 81,036 | 51,523 |
Net income | 96,360 | 42,424 | 81,334 | 51,780 |
Cal Water | Reportable Legal Entities | ||||
Condensed Consolidating Financial Statements | ||||
Operating revenue | 287,820 | 219,261 | 567,494 | 502,785 |
Operations: | ||||
Water production costs | 82,829 | 78,048 | 203,485 | 183,617 |
Administrative and general | 25,802 | 24,498 | 77,025 | 73,908 |
Other operations | 27,312 | 22,872 | 63,427 | 59,851 |
Maintenance | 6,872 | 6,823 | 19,980 | 18,469 |
Depreciation and amortization | 22,984 | 20,770 | 68,886 | 62,471 |
Income tax (benefit) expense | 12,787 | 11,332 | 9,054 | 12,019 |
Property and other taxes | 6,948 | 6,620 | 19,618 | 19,431 |
Total operating (income) expenses | 185,534 | 170,963 | 461,475 | 429,766 |
Net operating income | 102,286 | 48,298 | 106,019 | 73,019 |
Other income and expenses: | ||||
Non-regulated revenue | 3,588 | 3,865 | 11,102 | 13,374 |
Non-regulated expenses | (2,321) | (3,907) | (10,864) | (9,610) |
Other components of net periodic benefit cost | (1,016) | (1,784) | (3,717) | (4,177) |
Allowance for equity funds used during construction | 973 | 1,868 | 4,292 | 5,087 |
Income tax (expense) benefit on other income and expenses | (289) | 268 | (179) | (1,028) |
Net other income (loss) | 935 | 310 | 634 | 3,646 |
Interest expense: | ||||
Interest expense | 10,762 | 9,820 | 32,402 | 32,141 |
Allowance for borrowed funds used during construction | (631) | (954) | (2,604) | (2,592) |
Net interest expense | 10,131 | 8,866 | 29,798 | 29,549 |
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 93,090 | 39,742 | 76,855 | 47,116 |
All Other Subsidiaries | Reportable Legal Entities | ||||
Condensed Consolidating Financial Statements | ||||
Operating revenue | 16,288 | 13,276 | 37,661 | 34,894 |
Operations: | ||||
Water production costs | 2,515 | 2,520 | 6,977 | 7,178 |
Administrative and general | 3,406 | 2,281 | 8,802 | 7,379 |
Other operations | 2,579 | 1,825 | 6,628 | 5,499 |
Maintenance | 257 | 242 | 944 | 743 |
Depreciation and amortization | 1,712 | 1,501 | 4,836 | 4,488 |
Income tax (benefit) expense | 930 | 779 | 1,176 | 1,265 |
Property and other taxes | 1,168 | 921 | 2,852 | 2,471 |
Total operating (income) expenses | 12,567 | 10,069 | 32,215 | 29,023 |
Net operating income | 3,721 | 3,207 | 5,446 | 5,871 |
Other income and expenses: | ||||
Non-regulated revenue | 492 | 399 | 1,304 | 1,212 |
Non-regulated expenses | (544) | (444) | (947) | (860) |
Other components of net periodic benefit cost | 8 | (73) | (53) | (131) |
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 |
Income tax (expense) benefit on other income and expenses | 2 | 22 | (96) | (79) |
Net other income (loss) | (42) | (96) | 208 | 142 |
Interest expense: | ||||
Interest expense | 556 | 608 | 1,658 | 1,841 |
Allowance for borrowed funds used during construction | (40) | (74) | (143) | (191) |
Net interest expense | 516 | 534 | 1,515 | 1,650 |
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | $ 3,163 | $ 2,577 | $ 4,139 | $ 4,363 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Consolidating Financial Statements | ||||
Net income | $ 96,360 | $ 42,424 | $ 81,334 | $ 51,780 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 |
Dividends received from affiliates | 0 | 0 | ||
Depreciation and amortization | 75,550 | 68,522 | ||
Change in value of life insurance contracts | (621) | (3,433) | ||
Allowance for equity funds used during construction | (973) | (1,868) | (4,292) | (5,087) |
Changes in operating assets and liabilities: | ||||
Changes in operating assets and liabilities | (18,407) | (5,041) | ||
Other changes in noncurrent assets and liabilities | (36,900) | 21,602 | ||
Net cash provided by operating activities | 96,664 | 128,343 | ||
Investing activities: | ||||
Utility plant expenditures | (221,261) | (194,942) | ||
Business acquisition, net of cash acquired | (39,544) | 0 | ||
Investment in affiliates | 0 | |||
Changes in affiliate advances | 0 | 0 | ||
Issuance of affiliate short-term borrowings | 0 | 0 | ||
Issuance of affiliate long-term borrowings | 0 | |||
Reduction of affiliates long-term debt | 0 | 0 | ||
Purchase of life insurance contracts | (2,335) | (2,216) | ||
Net cash used in investing activities | (263,140) | (197,158) | ||
Financing Activities: | ||||
Short-term borrowings | 270,000 | 210,000 | ||
Repayment of short-term borrowings | (70,000) | (120,000) | ||
Investment from affiliates | 0 | |||
Changes in affiliate advances | 0 | 0 | ||
Proceeds from affiliate short-term borrowings | 0 | 0 | ||
Proceeds from affiliate long-term borrowings | 0 | |||
Repayment of affiliates long-term borrowings | 0 | 0 | ||
Issuance of long-term debt, net of expenses | 0 | 398,431 | ||
Repayment of long-term debt | (1,535) | (401,630) | ||
Advances and contributions in aid of construction | 19,862 | 21,266 | ||
Refunds of advances for construction | (7,017) | (5,560) | ||
Repurchase of common stock | (1,578) | (2,355) | ||
Issuance of common stock | 58,573 | 1,278 | ||
Dividends paid to non-affiliates | (31,177) | (28,507) | ||
Dividends paid to affiliates | 0 | 0 | ||
Net cash provided by financing activities | 237,128 | 72,923 | ||
Change in cash, cash equivalents, and restricted cash | 70,652 | 4,108 | ||
Cash, cash equivalents, and restricted cash at beginning of period | 43,298 | 47,715 | ||
Cash, cash equivalents, and restricted cash at end of period | 113,950 | 51,823 | 113,950 | 51,823 |
Consolidating Adjustments | ||||
Condensed Consolidating Financial Statements | ||||
Net income | (96,253) | (42,319) | (80,994) | (51,479) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity earnings of subsidiaries | 96,266 | 42,334 | 81,036 | 51,523 |
Dividends received from affiliates | (31,177) | (28,507) | ||
Depreciation and amortization | (59) | (62) | ||
Change in value of life insurance contracts | 0 | 0 | ||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 |
Changes in operating assets and liabilities: | ||||
Changes in operating assets and liabilities | 0 | 0 | ||
Other changes in noncurrent assets and liabilities | 17 | 18 | ||
Net cash provided by operating activities | (31,177) | (28,507) | ||
Investing activities: | ||||
Utility plant expenditures | 0 | 0 | ||
Business acquisition, net of cash acquired | 0 | |||
Investment in affiliates | 90,871 | |||
Changes in affiliate advances | (4,772) | (15) | ||
Issuance of affiliate short-term borrowings | 3,500 | 4,300 | ||
Issuance of affiliate long-term borrowings | 4,076 | |||
Reduction of affiliates long-term debt | (1,580) | (1,462) | ||
Purchase of life insurance contracts | 0 | 0 | ||
Net cash used in investing activities | 92,095 | 2,823 | ||
Financing Activities: | ||||
Short-term borrowings | 0 | 0 | ||
Repayment of short-term borrowings | 0 | 0 | ||
Investment from affiliates | (90,871) | |||
Changes in affiliate advances | 4,772 | 15 | ||
Proceeds from affiliate short-term borrowings | (3,500) | (4,300) | ||
Proceeds from affiliate long-term borrowings | (4,076) | |||
Repayment of affiliates long-term borrowings | 1,580 | 1,462 | ||
Issuance of long-term debt, net of expenses | 0 | |||
Repayment of long-term debt | 0 | 0 | ||
Advances and contributions in aid of construction | 0 | 0 | ||
Refunds of advances for construction | 0 | 0 | ||
Repurchase of common stock | 0 | 0 | ||
Issuance of common stock | 0 | 0 | ||
Dividends paid to non-affiliates | 0 | 0 | ||
Dividends paid to affiliates | 31,177 | 28,507 | ||
Net cash provided by financing activities | (60,918) | 25,684 | ||
Change in cash, cash equivalents, and restricted cash | 0 | 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 | 0 | 0 |
Parent Company | Reportable Legal Entities | ||||
Condensed Consolidating Financial Statements | ||||
Net income | 96,360 | 42,424 | 81,334 | 51,780 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity earnings of subsidiaries | (96,266) | (42,334) | (81,036) | (51,523) |
Dividends received from affiliates | 31,177 | 28,507 | ||
Depreciation and amortization | 70 | 70 | ||
Change in value of life insurance contracts | 0 | 0 | ||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 |
Changes in operating assets and liabilities: | ||||
Changes in operating assets and liabilities | (463) | 194 | ||
Other changes in noncurrent assets and liabilities | 3,262 | 5,239 | ||
Net cash provided by operating activities | 34,344 | 34,267 | ||
Investing activities: | ||||
Utility plant expenditures | 0 | 0 | ||
Business acquisition, net of cash acquired | (1,950) | |||
Investment in affiliates | (90,871) | |||
Changes in affiliate advances | 2,238 | (3,199) | ||
Issuance of affiliate short-term borrowings | (3,500) | (4,300) | ||
Issuance of affiliate long-term borrowings | (4,076) | |||
Reduction of affiliates long-term debt | 1,580 | 1,462 | ||
Purchase of life insurance contracts | 0 | 0 | ||
Net cash used in investing activities | (96,579) | (6,037) | ||
Financing Activities: | ||||
Short-term borrowings | 50,000 | 0 | ||
Repayment of short-term borrowings | 0 | 0 | ||
Investment from affiliates | 0 | |||
Changes in affiliate advances | 0 | (17) | ||
Proceeds from affiliate short-term borrowings | 0 | 0 | ||
Proceeds from affiliate long-term borrowings | 0 | |||
Repayment of affiliates long-term borrowings | 0 | 0 | ||
Issuance of long-term debt, net of expenses | 0 | |||
Repayment of long-term debt | 0 | 0 | ||
Advances and contributions in aid of construction | 0 | 0 | ||
Refunds of advances for construction | 0 | 0 | ||
Repurchase of common stock | (1,578) | (2,355) | ||
Issuance of common stock | 58,573 | 1,278 | ||
Dividends paid to non-affiliates | (31,177) | (28,507) | ||
Dividends paid to affiliates | 0 | 0 | ||
Net cash provided by financing activities | 75,818 | (29,601) | ||
Change in cash, cash equivalents, and restricted cash | 13,583 | (1,371) | ||
Cash, cash equivalents, and restricted cash at beginning of period | 3,096 | 3,779 | ||
Cash, cash equivalents, and restricted cash at end of period | 16,679 | 2,408 | 16,679 | 2,408 |
Cal Water | Reportable Legal Entities | ||||
Condensed Consolidating Financial Statements | ||||
Net income | 93,090 | 39,742 | 76,855 | 47,116 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 |
Dividends received from affiliates | 0 | 0 | ||
Depreciation and amortization | 70,604 | 63,975 | ||
Change in value of life insurance contracts | (621) | (3,433) | ||
Allowance for equity funds used during construction | (973) | (1,868) | (4,292) | (5,087) |
Changes in operating assets and liabilities: | ||||
Changes in operating assets and liabilities | (17,633) | (6,744) | ||
Other changes in noncurrent assets and liabilities | (42,184) | 14,560 | ||
Net cash provided by operating activities | 82,729 | 110,387 | ||
Investing activities: | ||||
Utility plant expenditures | (212,288) | (185,883) | ||
Business acquisition, net of cash acquired | 0 | |||
Investment in affiliates | 0 | |||
Changes in affiliate advances | 2,679 | 3,534 | ||
Issuance of affiliate short-term borrowings | 0 | 0 | ||
Issuance of affiliate long-term borrowings | 0 | |||
Reduction of affiliates long-term debt | 0 | 0 | ||
Purchase of life insurance contracts | (2,335) | (2,216) | ||
Net cash used in investing activities | (211,944) | (184,565) | ||
Financing Activities: | ||||
Short-term borrowings | 220,000 | 210,000 | ||
Repayment of short-term borrowings | (70,000) | (120,000) | ||
Investment from affiliates | 57,266 | |||
Changes in affiliate advances | (3,175) | 4,419 | ||
Proceeds from affiliate short-term borrowings | 0 | 0 | ||
Proceeds from affiliate long-term borrowings | 0 | |||
Repayment of affiliates long-term borrowings | 0 | 0 | ||
Issuance of long-term debt, net of expenses | 398,431 | |||
Repayment of long-term debt | (1,415) | (401,417) | ||
Advances and contributions in aid of construction | 19,735 | 21,176 | ||
Refunds of advances for construction | (7,015) | (5,560) | ||
Repurchase of common stock | 0 | 0 | ||
Issuance of common stock | 0 | 0 | ||
Dividends paid to non-affiliates | 0 | 0 | ||
Dividends paid to affiliates | (29,461) | (27,419) | ||
Net cash provided by financing activities | 185,935 | 79,630 | ||
Change in cash, cash equivalents, and restricted cash | 56,720 | 5,452 | ||
Cash, cash equivalents, and restricted cash at beginning of period | 29,679 | 34,238 | ||
Cash, cash equivalents, and restricted cash at end of period | 86,399 | 39,690 | 86,399 | 39,690 |
All Other Subsidiaries | Reportable Legal Entities | ||||
Condensed Consolidating Financial Statements | ||||
Net income | 3,163 | 2,577 | 4,139 | 4,363 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 |
Dividends received from affiliates | 0 | 0 | ||
Depreciation and amortization | 4,935 | 4,539 | ||
Change in value of life insurance contracts | 0 | 0 | ||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 |
Changes in operating assets and liabilities: | ||||
Changes in operating assets and liabilities | (311) | 1,509 | ||
Other changes in noncurrent assets and liabilities | 2,005 | 1,785 | ||
Net cash provided by operating activities | 10,768 | 12,196 | ||
Investing activities: | ||||
Utility plant expenditures | (8,973) | (9,059) | ||
Business acquisition, net of cash acquired | (37,594) | |||
Investment in affiliates | 0 | |||
Changes in affiliate advances | (145) | (320) | ||
Issuance of affiliate short-term borrowings | 0 | 0 | ||
Issuance of affiliate long-term borrowings | 0 | |||
Reduction of affiliates long-term debt | 0 | 0 | ||
Purchase of life insurance contracts | 0 | 0 | ||
Net cash used in investing activities | (46,712) | (9,379) | ||
Financing Activities: | ||||
Short-term borrowings | 0 | 0 | ||
Repayment of short-term borrowings | 0 | 0 | ||
Investment from affiliates | 33,605 | |||
Changes in affiliate advances | (1,597) | (4,417) | ||
Proceeds from affiliate short-term borrowings | 3,500 | 4,300 | ||
Proceeds from affiliate long-term borrowings | 4,076 | |||
Repayment of affiliates long-term borrowings | (1,580) | (1,462) | ||
Issuance of long-term debt, net of expenses | 0 | |||
Repayment of long-term debt | (120) | (213) | ||
Advances and contributions in aid of construction | 127 | 90 | ||
Refunds of advances for construction | (2) | 0 | ||
Repurchase of common stock | 0 | 0 | ||
Issuance of common stock | 0 | 0 | ||
Dividends paid to non-affiliates | 0 | 0 | ||
Dividends paid to affiliates | (1,716) | (1,088) | ||
Net cash provided by financing activities | 36,293 | (2,790) | ||
Change in cash, cash equivalents, and restricted cash | 349 | 27 | ||
Cash, cash equivalents, and restricted cash at beginning of period | 10,523 | 9,698 | ||
Cash, cash equivalents, and restricted cash at end of period | $ 10,872 | $ 9,725 | $ 10,872 | $ 9,725 |
Acquisition (Details)
Acquisition (Details) people in Thousands, $ in Thousands | Jun. 01, 2020USD ($)waterSystempeoplecustomerConnection | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 30,349 | $ 2,615 | |
Rainier View Water Company | |||
Business Acquisition [Line Items] | |||
Number of people served | people | 35 | ||
Number of customer connections | customerConnection | 18,500 | ||
Water systems | waterSystem | 27 | ||
Rainier View Water Company | |||
Business Acquisition [Line Items] | |||
Cash paid | $ 37,600 | ||
Assets acquired and liabilities assumed | 32,700 | ||
Assets acquired and liabilities assumed, property, plant, and equipment | 31,100 | ||
Recognized identifiable assets acquired and liabilities assumed, liabilities | 22,900 | ||
Recognized identifiable assets acquired and liabilities assumed, aid for construction | 21,300 | ||
Goodwill | $ 27,700 |