Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'AMERICAN STATES WATER CO | ' |
Entity Central Index Key | '0001056903 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 38,778,608 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment | ' | ' |
Regulated utility plant, at cost | $1,449,437,000 | $1,443,623,000 |
Non-utility property, at cost | 10,254,000 | 9,519,000 |
Utility plant, at cost | 1,459,691,000 | 1,453,142,000 |
Less - Accumulated depreciation | -475,762,000 | -471,665,000 |
Net property, plant and equipment | 983,929,000 | 981,477,000 |
Other Property and Investments | ' | ' |
Goodwill | 1,116,000 | 1,116,000 |
Other property and investments | 15,828,000 | 15,806,000 |
Total other property and investments | 16,944,000 | 16,922,000 |
Current Assets | ' | ' |
Cash and cash equivalents | 74,936,000 | 38,226,000 |
Accounts receivable - customers, less allowance for doubtful accounts | 19,902,000 | 23,829,000 |
Unbilled revenue | 16,038,000 | 18,552,000 |
Receivable from the U.S. government, less allowance for doubtful accounts | 7,717,000 | 7,106,000 |
Other accounts receivable, less allowance for doubtful accounts | 2,670,000 | 4,914,000 |
Income taxes receivable | 3,718,000 | 9,214,000 |
Materials and supplies, at average cost | 4,319,000 | 4,558,000 |
Regulatory assets — current | 22,905,000 | 27,676,000 |
Prepayments and other current assets | 4,876,000 | 2,481,000 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 46,623,000 | 45,508,000 |
Deferred income taxes — current | 9,538,000 | 9,553,000 |
Total current assets | 213,242,000 | 191,617,000 |
Regulatory and Other Assets | ' | ' |
Regulatory assets | 96,745,000 | 95,005,000 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 6,350,000 | 7,823,000 |
Receivable from the U.S. government, less allowance for doubtful accounts | 2,956,000 | 3,104,000 |
Other | 13,605,000 | 14,235,000 |
Total regulatory and other assets | 119,656,000 | 120,167,000 |
Total Assets | 1,333,771,000 | 1,310,183,000 |
Capitalization | ' | ' |
Common shares, no par value | 254,217,000 | 253,961,000 |
Earnings reinvested in the business | 241,582,000 | 238,443,000 |
Total common shareholders’ equity | 495,799,000 | 492,404,000 |
Long-term debt | 326,010,000 | 326,079,000 |
Total capitalization | 821,809,000 | 818,483,000 |
Current Liabilities | ' | ' |
Notes payable to banks | 24,000,000 | 0 |
Long-term debt — current | 6,291,000 | 6,298,000 |
Accounts payable | 42,593,000 | 49,787,000 |
Income taxes payable | 655,000 | 507,000 |
Accrued other taxes | 7,102,000 | 9,802,000 |
Accrued employee expenses | 12,655,000 | 10,801,000 |
Accrued interest | 6,248,000 | 3,897,000 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 6,496,000 | 6,852,000 |
Other | 13,036,000 | 12,962,000 |
Total current liabilities | 119,076,000 | 100,906,000 |
Other Credits | ' | ' |
Advances for construction | 69,272,000 | 69,332,000 |
Contributions in aid of construction - net | 115,166,000 | 114,916,000 |
Deferred income taxes | 159,846,000 | 159,506,000 |
Unamortized investment tax credits | 1,768,000 | 1,790,000 |
Accrued pension and other postretirement benefits | 40,317,000 | 38,726,000 |
Other | 6,517,000 | 6,524,000 |
Total other credits | 392,886,000 | 390,794,000 |
Commitments and Contingencies (Note 7) | 0 | 0 |
Total Capitalization and Liabilities | 1,333,771,000 | 1,310,183,000 |
GOLDEN STATE WATER COMPANY | ' | ' |
Property, Plant and Equipment | ' | ' |
Utility plant, at cost | 1,449,437,000 | 1,443,623,000 |
Less - Accumulated depreciation | -470,140,000 | -466,329,000 |
Net property, plant and equipment | 979,297,000 | 977,294,000 |
Other Property and Investments | ' | ' |
Total other property and investments | 13,678,000 | 13,653,000 |
Current Assets | ' | ' |
Cash and cash equivalents | 43,567,000 | 37,875,000 |
Accounts receivable - customers, less allowance for doubtful accounts | 19,902,000 | 23,829,000 |
Unbilled revenue | 16,038,000 | 18,552,000 |
Inter-company receivable | 531,000 | 718,000 |
Other accounts receivable, less allowance for doubtful accounts | 2,000,000 | 3,570,000 |
Income taxes receivable from Parent | 4,700,000 | 9,704,000 |
Note receivable from Parent | 0 | 500,000 |
Materials and supplies, at average cost | 2,228,000 | 1,859,000 |
Regulatory assets — current | 22,905,000 | 27,676,000 |
Prepayments and other current assets | 3,967,000 | 2,218,000 |
Deferred income taxes — current | 8,621,000 | 8,573,000 |
Total current assets | 124,459,000 | 135,074,000 |
Regulatory and Other Assets | ' | ' |
Regulatory assets | 96,745,000 | 95,005,000 |
Other accounts receivable | 395,000 | 913,000 |
Other | 11,346,000 | 11,442,000 |
Total regulatory and other assets | 108,486,000 | 107,360,000 |
Total Assets | 1,225,920,000 | 1,233,381,000 |
Capitalization | ' | ' |
Common shares, no par value | 233,698,000 | 233,721,000 |
Earnings reinvested in the business | 200,207,000 | 203,892,000 |
Total common shareholders’ equity | 433,905,000 | 437,613,000 |
Long-term debt | 326,010,000 | 326,079,000 |
Total capitalization | 759,915,000 | 763,692,000 |
Current Liabilities | ' | ' |
Long-term debt — current | 6,291,000 | 6,298,000 |
Accounts payable | 30,677,000 | 37,611,000 |
Accrued other taxes | 6,540,000 | 9,299,000 |
Accrued employee expenses | 11,012,000 | 9,536,000 |
Accrued interest | 6,246,000 | 3,897,000 |
Other | 12,891,000 | 12,880,000 |
Total current liabilities | 73,657,000 | 79,521,000 |
Other Credits | ' | ' |
Advances for construction | 69,272,000 | 69,332,000 |
Contributions in aid of construction - net | 115,166,000 | 114,916,000 |
Deferred income taxes | 159,452,000 | 158,994,000 |
Unamortized investment tax credits | 1,768,000 | 1,790,000 |
Accrued pension and other postretirement benefits | 40,317,000 | 38,726,000 |
Other | 6,373,000 | 6,410,000 |
Total other credits | 392,348,000 | 390,168,000 |
Commitments and Contingencies (Note 7) | 0 | 0 |
Total Capitalization and Liabilities | $1,225,920,000 | $1,233,381,000 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts receivable - customers, allowance for doubtful accounts | $777 | $755 |
Other accounts receivable, allowance for doubtful accounts | 348 | 432 |
GOLDEN STATE WATER COMPANY | ' | ' |
Accounts receivable - customers, allowance for doubtful accounts | 777 | 755 |
Other accounts receivable, allowance for doubtful accounts | $276 | $359 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Revenues | ' | ' |
Water | $70,757 | $69,233 |
Electric | 10,456 | 10,734 |
Contracted services | 20,732 | 30,585 |
Total operating revenues | 101,945 | 110,552 |
Operating Expenses | ' | ' |
Water purchased | 11,224 | 10,732 |
Power purchased for pumping | 1,964 | 1,639 |
Groundwater production assessment | 3,540 | 3,187 |
Power purchased for resale | 2,699 | 3,680 |
Supply cost balancing accounts | 818 | 1,371 |
Other operation | 6,947 | 5,454 |
Administrative and general | 20,184 | 17,907 |
Depreciation and amortization | 10,530 | 9,816 |
Maintenance | 3,489 | 3,934 |
Property and other taxes | 4,325 | 4,148 |
ASUS construction | 13,457 | 20,733 |
Net gain on sale of property | 0 | -12 |
Total operating expenses | 79,177 | 82,589 |
Operating Income | 22,768 | 27,963 |
Other Income and Expenses | ' | ' |
Interest expense | -5,627 | -5,778 |
Interest income | 112 | 187 |
Other, net | 125 | 342 |
Total other income and expenses | -5,390 | -5,249 |
Income from operations before income tax expense | 17,378 | 22,714 |
Income tax expense | 6,357 | 9,249 |
Net Income | 11,021 | 13,465 |
Weighted Average Number of Common Shares Outstanding (in shares) | 38,747 | 38,529 |
Basic Earnings Per Common Share (in dollars per share) | $0.28 | $0.35 |
Weighted Average Number of Diluted Shares (in shares) | 38,944 | 38,772 |
Fully Diluted Earnings Per Common Share (in dollars per share) | $0.28 | $0.35 |
Dividends Paid Per Common Share (in dollars per share) | $0.20 | $0.18 |
GOLDEN STATE WATER COMPANY | ' | ' |
Operating Revenues | ' | ' |
Water | 70,757 | 69,233 |
Electric | 10,456 | 10,734 |
Total operating revenues | 81,213 | 79,967 |
Operating Expenses | ' | ' |
Water purchased | 11,224 | 10,732 |
Power purchased for pumping | 1,964 | 1,639 |
Groundwater production assessment | 3,540 | 3,187 |
Power purchased for resale | 2,699 | 3,680 |
Supply cost balancing accounts | 818 | 1,371 |
Other operation | 6,356 | 4,797 |
Administrative and general | 16,985 | 14,234 |
Depreciation and amortization | 10,240 | 9,522 |
Maintenance | 3,061 | 3,493 |
Property and other taxes | 3,896 | 3,716 |
Total operating expenses | 60,783 | 56,371 |
Operating Income | 20,430 | 23,596 |
Other Income and Expenses | ' | ' |
Interest expense | -5,611 | -5,748 |
Interest income | 109 | 178 |
Other, net | 124 | 342 |
Total other income and expenses | -5,378 | -5,228 |
Income from operations before income tax expense | 15,052 | 18,368 |
Income tax expense | 5,705 | 7,663 |
Net Income | $9,347 | $10,705 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOW (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash Flows From Operating Activities: | ' | ' |
Net income | $11,021 | $13,465 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 10,802 | 10,066 |
Provision for doubtful accounts | 326 | 188 |
Deferred income taxes and investment tax credits | -415 | 270 |
Stock-based compensation expense | 805 | 661 |
Other b net | 165 | -172 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable b customers | 3,628 | 1,998 |
Unbilled revenue | 2,514 | 1,625 |
Other accounts receivable | 2,735 | 1,585 |
Receivable from the U.S. government | -463 | 8,251 |
Materials and supplies | 239 | -1,862 |
Prepayments and other current assets | -2,395 | 140 |
Regulatory assets b supply cost balancing accounts | 818 | 1,371 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 358 | -5,080 |
Other assets (including other regulatory assets) | 2,872 | -13,147 |
Accounts payable | -630 | 2,229 |
Income taxes receivable/payable | 5,644 | 15,111 |
Billings in excess of costs and estimated earnings on uncompleted contracts | -356 | -9,870 |
Accrued pension and other postretirement benefits | 1,692 | 3,021 |
Other liabilities | 1,572 | 1,155 |
Net cash provided | 40,932 | 31,005 |
Cash Flows From Investing Activities: | ' | ' |
Construction expenditures | -20,531 | -18,425 |
Other investments | -116 | 0 |
Proceed from sale of property | 0 | 12 |
Net cash used | -20,647 | -18,413 |
Cash Flows From Financing Activities: | ' | ' |
Proceeds from issuance of common shares and stock option exercises | 201 | 625 |
Receipt of advances for and contributions in aid of construction | 1,516 | 4,151 |
Refunds on advances for construction | -452 | -430 |
Repayments of long-term debt | -76 | -22 |
Increase in notes payable to banks | 24,000 | 0 |
Dividends paid | -7,846 | -6,838 |
Other b net | -918 | -770 |
Net cash provided (used) | 16,425 | -3,284 |
Net increase in cash and cash equivalents | 36,710 | 9,308 |
Cash and cash equivalents, beginning of period | 38,226 | 23,486 |
Cash and cash equivalents, end of period | 74,936 | 32,794 |
GOLDEN STATE WATER COMPANY | ' | ' |
Cash Flows From Operating Activities: | ' | ' |
Net income | 9,347 | 10,705 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 10,512 | 9,772 |
Provision for doubtful accounts | 326 | 188 |
Deferred income taxes and investment tax credits | -361 | 279 |
Stock-based compensation expense | 564 | 400 |
Other b net | 150 | -159 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable b customers | 3,628 | 1,998 |
Unbilled revenue | 2,514 | 1,625 |
Other accounts receivable | 2,061 | 2,441 |
Materials and supplies | -369 | -80 |
Prepayments and other current assets | -1,749 | 544 |
Regulatory assets b supply cost balancing accounts | 818 | 1,371 |
Other assets (including other regulatory assets) | 2,873 | -13,102 |
Accounts payable | -370 | 730 |
Inter-company receivable/payable | 187 | -2,822 |
Income taxes receivable/payable from/to Parent | 5,004 | 13,654 |
Accrued pension and other postretirement benefits | 1,692 | 3,021 |
Other liabilities | 1,040 | 808 |
Net cash provided | 37,867 | 31,373 |
Cash Flows From Investing Activities: | ' | ' |
Construction expenditures | -19,796 | -18,111 |
Note receivable from AWR parent | -8,300 | 0 |
Receipt of payment of note receivable from AWR parent | 8,800 | 0 |
Other investments | -116 | 0 |
Net cash used | -19,412 | -18,111 |
Cash Flows From Financing Activities: | ' | ' |
Receipt of advances for and contributions in aid of construction | 1,516 | 4,151 |
Refunds on advances for construction | -452 | -430 |
Repayments of long-term debt | -76 | -22 |
Dividends paid | -13,000 | -6,800 |
Other b net | -751 | -604 |
Net cash provided (used) | -12,763 | -3,705 |
Net increase in cash and cash equivalents | 5,692 | 9,557 |
Cash and cash equivalents, beginning of period | 37,875 | 22,578 |
Cash and cash equivalents, end of period | $43,567 | $32,135 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies: | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies: | |
Nature of Operations: American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”) and American States Utility Services, Inc. (“ASUS”) (and its subsidiaries, Fort Bliss Water Services Company (“FBWS”), Terrapin Utility Services, Inc. (“TUS”), Old Dominion Utility Services, Inc. (“ODUS”), Palmetto State Utility Services, Inc. (“PSUS”) and Old North Utility Services, Inc. (“ONUS”)). The subsidiaries of ASUS may be collectively referred to herein as the “Military Utility Privatization Subsidiaries.” | |
GSWC is a public utility engaged principally in the purchase, production, distribution and sale of water in California serving approximately 257,000 customers. GSWC also distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,000 customers through its Bear Valley Electric Service (“BVES”) division. Although Registrant has a diversified base of residential, industrial and other customers, revenues derived from commercial and residential water customers accounted for approximately 90% of total water revenues during the three months ended March 31, 2014 and 2013. The California Public Utilities Commission (“CPUC”) regulates GSWC’s water and electric businesses, including properties, rates, services, facilities and other matters, and transactions by GSWC with its affiliates. AWR’s assets and operating income are primarily those of GSWC. | |
ASUS, through its wholly-owned subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases pursuant to 50-year firm fixed-price contracts. These contracts are subject to periodic price redeterminations and modifications for changes in circumstances and changes in laws and regulations. | |
There is no direct regulatory oversight by the CPUC over AWR or the operation, rates or services provided by ASUS or any of its wholly owned subsidiaries. | |
Basis of Presentation: The consolidated financial statements and notes thereto are being presented in a combined report being filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. | |
The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries, all of which are wholly owned. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Inter-company transactions and balances have been eliminated in the AWR consolidated financial statements. | |
On May 20, 2013, AWR's Board of Directors approved a two-for-one stock split of the Company's common shares. In September 2013, shareholders of record received one additional share for each AWR common share they owned. This two-for-one stock split has been retroactively applied to these financial statements, resulting in an increase in the number of shares outstanding for all periods presented. | |
The consolidated financial statements included herein have been prepared by Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The December 31, 2013 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles ("GAAP"). The preparation of the consolidated financial statements 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 date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments consisting of normal, recurring items and estimates necessary for a fair statement of the results for the interim periods have been made. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2013 filed with the SEC. | |
GSWC's Related Party Transactions: In May 2013, AWR issued an interest bearing promissory note (the "Note") to GSWC for $20.0 million which expires on May 23, 2018. Under the terms of the Note, AWR may borrow from GSWC amounts up to $20.0 million for working capital purposes. AWR agrees to pay any unpaid principal amounts outstanding under the Note, plus accrued interest. As of March 31, 2014, AWR had no amounts outstanding to GSWC under this Note. | |
GSWC and ASUS provide and receive various services to and from their parent, AWR, and among themselves. In addition, AWR has a $100.0 million syndicated credit facility. AWR borrows under this facility and provides funds to its subsidiaries, including GSWC, in support of their operations. During the three months ended March 31, 2014, AWR borrowed $24 million under this credit facility, which AWR then provided to ASUS. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest cost under the credit facility. GSWC also allocates certain corporate office administrative and general costs to its affiliate, ASUS, using allocation factors approved by the CPUC. Amounts owed to GSWC by its parent, AWR, or for allocated expenses are included in inter-company receivables as of March 31, 2014 and December 31, 2013. | |
Notes Payable to Banks: On May 23, 2013, AWR entered into a fourth amendment to its revolving credit agreement to, among other things, extend the expiration date of the syndicated credit facility to May 23, 2018, reduce the amount of interest and fees paid by the Company, and update certain representations and covenants in the credit agreement. The aggregate amount that may be borrowed under this facility is unchanged at $100.0 million. The Company may, under the terms of the fourth amendment, elect to increase the aggregate commitment by up to an additional $50.0 million. As of March 31, 2014, $24.0 million was outstanding under this credit facility. | |
Sales and Use Taxes: GSWC bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which GSWC pays to various municipalities (based on ordinances adopted by these municipalities) in order to use public right of way for utility purposes. GSWC bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of GSWC’s ability to collect from the customer, are accounted for on a gross basis. GSWC’s franchise fees billed to customers and recorded as operating revenue were approximately $845,000 and $811,000 for the three months ended March 31, 2014 and 2013, respectively. When GSWC acts as an agent, and the tax is not required to be remitted if it is not collected from the customer, the taxes are accounted for on a net basis. | |
Depending on the state in which the operations are conducted, ASUS and its subsidiaries are also subject to certain state non-income tax assessments generally computed on a “gross receipts” or “gross revenues” basis. These non-income tax assessments are required to be paid regardless of whether the subsidiary is reimbursed by the U.S. government for these assessments under its 50-year contracts with the U.S. government. The non-income tax assessments are accounted for on a gross basis and totaled $149,000 and $162,000 during the three months ended March 31, 2014 and 2013, respectively. | |
Recently Issued Accounting Pronouncements: In July 2013 the Financial Accounting Standards Board issued updated accounting guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The update requires an entity to present in certain cases, an unrecognized tax benefit, or portion of an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward when settlement is available in this manner under the tax law. The updated guidance is effective for reporting periods beginning after December 15, 2013. The adoption of the guidance did not, and is not expected to, have a material impact on the Company’s consolidated results of operations or consolidated balance sheet. |
Regulatory_Matters
Regulatory Matters: | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Regulated Operations [Abstract] | ' | ||||||||
Regulatory Matters | ' | ||||||||
Regulatory Matters: | |||||||||
In accordance with accounting principles for rate-regulated enterprises, Registrant records regulatory assets, which represent probable future recovery of costs from customers through the ratemaking process, and regulatory liabilities, which represent probable future refunds that are to be credited to customers through the ratemaking process. At March 31, 2014, Registrant had approximately $36.8 million of regulatory assets, net of regulatory liabilities not accruing carrying costs. Of this amount, $15.1 million relates to the underfunding of pension and other post-retirement obligations and $16.3 million relates to deferred income taxes representing accelerated tax benefits flowed through to customers, which will be included in rates concurrently with recognition of the associated future tax expense. The remainder relates to other items that do not provide for or incur carrying costs. | |||||||||
Regulatory assets represent costs incurred by GSWC for which it has received or expects to receive rate recovery in the future. In determining the probability of costs being recognized in other periods, GSWC considers regulatory rules and decisions, past practices, and other facts or circumstances that would indicate if recovery is probable. If the CPUC determines that a portion of GSWC’s assets are not recoverable in customer rates, GSWC must determine if it has suffered an asset impairment that would require a write-down in the assets’ valuation. Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: | |||||||||
(dollars in thousands) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
GSWC | |||||||||
Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account | $ | 18,077 | $ | 16,345 | |||||
Base Revenue Requirement Adjustment Mechanism | 9,088 | 8,725 | |||||||
Costs deferred for future recovery on Aerojet case | 14,561 | 14,763 | |||||||
Pensions and other post-retirement obligations (Note 6) | 19,452 | 20,241 | |||||||
Flow-through taxes, net (Note 5) | 16,938 | 16,189 | |||||||
Low income rate assistance balancing accounts | 9,992 | 9,979 | |||||||
General rate case memorandum accounts | 12,993 | 15,645 | |||||||
Other regulatory assets | 22,124 | 25,086 | |||||||
Various refunds to customers | (3,575 | ) | (4,292 | ) | |||||
Total | $ | 119,650 | $ | 122,681 | |||||
Regulatory matters are discussed in detail in the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2013 filed with the SEC. The discussion below focuses on significant matters and developments since December 31, 2013. | |||||||||
Alternative-Revenue Programs: | |||||||||
GSWC records the difference between what it bills its water customers and that which is authorized by the CPUC using the Water Revenue Adjustment Mechanism (“WRAM”) and Modified Cost Balancing Account (“MCBA”) accounts approved by the CPUC. GSWC has implemented surcharges to recover all of its WRAM, net of the MCBA balances, as of December 31, 2013. The recovery or refund of the WRAM is netted against the MCBA over- or under-collection for the corresponding rate-making area and is interest bearing at the current 90-day commercial paper rate. Based on CPUC guidelines, recovery periods relating to the majority of GSWC’s WRAM/MCBA balances range between 18 and 24 months. For the three months ended March 31, 2014 and 2013, surcharges (net of surcredits) of approximately $1.8 million and $3.6 million, respectively, were billed to customers to recover previously incurred under-collections in the WRAM, net of MCBA accounts. As of March 31, 2014, GSWC has a net aggregated regulatory asset of $18.1 million which is comprised of an $18.4 million under-collection in the WRAM accounts and $303,000 over-collection in the MCBA accounts. | |||||||||
For BVES, the CPUC approved the Base Revenue Requirement Adjustment Mechanism (“BRRAM”) which adjusts certain revenues to adopted levels. Pending a final decision on the BVES general rate case, the 2013 and 2014 BRRAM balances have been recorded using 2012 adopted levels authorized by the CPUC. As of March 31, 2014, GSWC had a regulatory asset of $9.1 million under-collection in the BRRAM. | |||||||||
General Rate Case Memorandum Accounts: | |||||||||
The balance in the general rate case memorandum accounts represents the revenue differences between interim rates and final rates authorized by the CPUC due to delays in receiving decisions on various general rate case applications. As of March 31, 2014, there is an aggregate $13.0 million in the general rate case memorandum accounts, $8.9 million of which is for retroactive rate increases effective January 1, 2013 as a result of the final decision issued by the CPUC in May 2013 on GSWC’s water general rate case. Surcharges ranging from 12 to 24 months, with the majority being 12 months, were implemented during the third quarter of 2013 to recover the retroactive adopted revenues related to the May 2013 CPUC decision. | |||||||||
Other Regulatory Matters: | |||||||||
CPUC Rehearing Matter: | |||||||||
In July 2011, the CPUC issued an order granting the rehearing of certain issues from the Region II, Region III and general office rate case approved in November 2010. Among the issues in the rehearing was the La Serena plant improvement project included in rate base totaling approximately $3.5 million. In March 2013, GSWC and the Office of Ratepayer Advocates ("ORA") reached a settlement agreement, subject to CPUC approval, to resolve all the issues in the rehearing. In March 2013, GSWC filed for CPUC approval of the settlement agreement. The settlement agreement, if approved, will resolve all issues arising from the rehearing. As a result of the CPUC's decision in November 2010 and the settlement agreement reached in March 2013, GSWC recorded pretax charges during 2010 and 2012 totaling $2.6 million related to this matter, which includes the disallowance of a portion of the La Serena capital costs and the related revenues earned on those capital costs to be refunded to customers. | |||||||||
Procurement Audits: | |||||||||
In December 2011, the CPUC issued a final decision on its investigation of certain work orders and charges paid to a specific contractor used previously for numerous construction projects. As part of the CPUC decision, GSWC agreed to be subject to three separate independent audits of its procurement practices over a period of ten years from the date the settlement was approved by the CPUC. The audits will cover GSWC’s procurement practices related to contracts with other contractors from 1994 forward and could result in disallowances of costs. The cost of the audits will be borne by shareholders and may not be recovered by GSWC in rates to customers. The first audit is currently underway. At this time, management cannot predict the outcome of these audits or determine an estimated loss or range of loss, if any, resulting from these audits. | |||||||||
BVES General Rate Case: | |||||||||
In February 2012, BVES filed its general rate case (“GRC”) for new rates in years 2013 through 2016. In August 2012, ORA issued its report on the GRC, which included recommendations for BVES to record a $2.0 million retroactive ratemaking proposal to increase BVES’ accumulated depreciation balance, and for one-half of deferred rate case costs to be borne by shareholders rather than entirely by customers, as has been authorized by the CPUC in prior rate cases. As of March 31, 2014, GSWC had a $1.6 million regulatory asset representing deferred rate case costs for the current BVES general rate case, which the CPUC has historically allowed utilities to recover. At this time, GSWC does not believe a potential loss is probable. | |||||||||
BVES has been in settlement negotiations with all of the parties involved in this rate case. Those negotiations have resulted in an agreement in principle and BVES anticipates that a settlement agreement will be filed with the CPUC during the second quarter. A final decision from the CPUC is expected in late 2014. |
Earnings_per_ShareCapital_Stoc
Earnings per Share/Capital Stock: | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings per Share/Capital Stock | ' | |||||||||||
Earnings per Share/Capital Stock: | ||||||||||||
In accordance with the accounting guidance for participating securities and earnings per share (“EPS”), Registrant uses the “two-class” method of computing EPS. The “two-class” method is an earnings allocation formula that determines EPS for each class of common stock and participating security. AWR has participating securities related to its stock-based awards that earn dividend equivalents on an equal basis with AWR’s Common Shares (the “Common Shares”). In applying the “two-class” method, undistributed earnings are allocated to both common shares and participating securities. | ||||||||||||
The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used for calculating basic net income per share: | ||||||||||||
Basic: | For The Three Months Ended | |||||||||||
March 31, | ||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | ||||||||||
Net income | $ | 11,021 | 13,465 | |||||||||
Less: (a) | Distributed earnings to common shareholders | 7,846 | 6,839 | |||||||||
Distributed earnings to participating securities | 43 | 45 | ||||||||||
Undistributed earnings | 3,132 | 6,581 | ||||||||||
(b) | Undistributed earnings allocated to common shareholders | 3,114 | 6,539 | |||||||||
Undistributed earnings allocated to participating securities | 18 | 42 | ||||||||||
Total income available to common shareholders, basic (a)+(b) | $ | 10,960 | $ | 13,378 | ||||||||
Weighted average Common Shares outstanding, basic | 38,747 | 38,529 | ||||||||||
Basic earnings per Common Share | $ | 0.28 | $ | 0.35 | ||||||||
Diluted EPS is based upon the weighted average number of Common Shares, including both outstanding shares and shares potentially issuable in connection with stock options granted under Registrant’s 2000 and 2008 Stock Incentive Plans, the 2003 Non-Employee Directors Plan, and net income. At March 31, 2014 and 2013, there were 247,064 and 352,096 options outstanding, respectively, under these Plans. At March 31, 2014 and 2013, there were also 237,174 and 290,416 restricted stock units outstanding, respectively, under these plans and the 2013 Non-Employee Directors Plan. | ||||||||||||
The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share: | ||||||||||||
Diluted: | For The Three Months Ended | |||||||||||
March 31, | ||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | ||||||||||
Common shareholders earnings, basic | $ | 10,960 | $ | 13,378 | ||||||||
Undistributed earnings for dilutive stock options | 18 | 42 | ||||||||||
Total common shareholders earnings, diluted | $ | 10,978 | $ | 13,420 | ||||||||
Weighted average Common Shares outstanding, basic | 38,747 | 38,529 | ||||||||||
Stock-based compensation (1) | 197 | 243 | ||||||||||
Weighted average Common Shares outstanding, diluted | 38,944 | 38,772 | ||||||||||
Diluted earnings per Common Share | $ | 0.28 | $ | 0.35 | ||||||||
(1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 247,064 stock options and 352,096 restricted stock units at March 31, 2014 and 2013, respectively, were deemed to be outstanding in accordance with accounting guidance on earnings per share. All of the 237,174 and 290,416 restricted stock units at March 31, 2014 and 2013, respectively, were included in the calculation of diluted EPS for the three months ended March 31, 2014 and 2013. | ||||||||||||
No stock options outstanding at March 31, 2014 had an exercise price greater than the average market price of AWR’s Common Shares for the three months ended March 31, 2014. There were no stock options outstanding at March 31, 2014 or 2013 that were anti-dilutive. | ||||||||||||
During the three months ended March 31, 2014 and 2013, Registrant issued 57,249 and 92,586 Common Shares, for approximately $201,000 and $625,000, respectively, under Registrant’s common share Purchase and Dividend Reinvestment Plan (“DRP”), the 401(k) Plan, the 2000 and 2008 Stock Incentive Plans, and the 2003 and 2013 Non-Employee Directors Stock Plans. In addition, Registrant purchased 159,754 and 85,194 Common Shares on the open market during the three months ended March 31, 2014 and 2013, respectively, under Registrant’s 401(k) Plan and the DRP. The Common Shares purchased by Registrant were used to satisfy the requirements of these plans. | ||||||||||||
During the three months ended March 31, 2014 and 2013, AWR paid quarterly dividends of approximately $7.8 million, or $0.2025 per share, and $6.8 million, or $0.1775 per share, respectively. | ||||||||||||
On March 27, 2014, AWR's Board of Directors approved a stock repurchase program, authorizing the Company to repurchase up to 1.25 million shares of the Company's Common Shares from time to time through June 30, 2016. During the three months ended March 31, 2014, there were no repurchases made under this program. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments: | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments: | |||||||||||||||||
For cash and cash equivalents, accounts receivable, accounts payable and short-term debt, the carrying amount is assumed to approximate fair value due to the short-term nature of the amounts. Investments held in a Rabbi Trust for the supplemental executive retirement plan are measured at fair value and totaled $6.9 million as of March 31, 2014. All equity investments in the Rabbi Trust are Level 1 investments in mutual funds. The investments held in the Rabbi Trust are included in Other Property and Investments on Registrant's balance sheets. As a result of the expiration in November 2013 of BVES's purchased power contracts, Registrant has no derivative instruments as of March 31, 2014 and December 31, 2013. | |||||||||||||||||
The accounting guidance for fair value measurements applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Under the accounting guidance, GSWC makes fair value measurements that are classified and disclosed in one of the following three categories: | |||||||||||||||||
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | |||||||||||||||||
Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability, or | |||||||||||||||||
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). | |||||||||||||||||
The table below estimates the fair value of long-term debt held by GSWC. The fair values as of March 31, 2014 and December 31, 2013 have been determined using rates for similar financial instruments of the same duration utilizing level 2 methods and assumptions. The interest rates used for the March 31, 2014 valuation increased as compared to December 31, 2013, decreasing the fair value of long-term debt as of March 31, 2014. Changes in the assumptions will produce differing results. | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
(dollars in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Financial liabilities: | |||||||||||||||||
Long-term debt—GSWC | $ | 332,301 | $ | 415,895 | $ | 332,377 | $ | 412,590 | |||||||||
Income_Taxes
Income Taxes: | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes: | |
As a regulated utility, GSWC treats certain temporary differences as flow-through adjustments in computing its income tax provision consistent with the income tax approach approved by the CPUC for ratemaking purposes. Flow-through adjustments increase or decrease tax expense in one period, with an offsetting decrease or increase occurring in another period. Giving effect to these temporary differences as flow-through adjustments typically results in a greater variance between the effective tax rate (“ETR”) and the statutory federal income tax rate in any given period than would otherwise exist if GSWC were not required to account for its income taxes as a regulated enterprise. The GSWC ETR was 37.9% and 41.7% for the three months ended March 31, 2014 and 2013, respectively. The GSWC ETRs deviated from the statutory rate primarily due to state taxes and differences between book and taxable income that are treated as flow-through adjustments in accordance with regulatory requirements (primarily related to plant, rate-case and compensation items), as well as permanent items. | |
Changes in Tax Law: | |
In September 2013, the U.S. Treasury Department issued final regulations related to the tax treatment of tangible property, including guidance on expensing certain repair and maintenance expenditures. The regulations are effective for tax years beginning on or after January 1, 2014. Registrant’s current tax treatment of tangible property continues to be permitted; however, Registrant is evaluating its water-pipeline tax repair-cost method, as well as other tax-method changes pursuant to these regulations. If Registrant adopts new methods, the impact to total income tax expense and the effective tax rate is not expected to be significant. | |
In January 2013, the American Taxpayer Relief Act of 2012 extended 50% bonus depreciation for qualifying property through 2013. Although this change in law reduced AWR’s current taxes payable, it did not reduce its total income tax expense or ETR. |
Employee_Benefit_Plans
Employee Benefit Plans: | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||||||||||
Employee Benefit Plans: | |||||||||||||||||||||||||
The components of net periodic benefit costs, before allocation to the overhead pool, for Registrant’s pension plan, postretirement plan and Supplemental Executive Retirement Plan (“SERP”) for the three months ended March 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
For The Three Months Ended March 31, | |||||||||||||||||||||||||
Pension Benefits | Other | SERP | |||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Components of Net Periodic Benefits Cost: | |||||||||||||||||||||||||
Service cost | $ | 1,487 | $ | 1,864 | $ | 99 | $ | 106 | $ | 192 | $ | 201 | |||||||||||||
Interest cost | 1,915 | 1,731 | 130 | 113 | 154 | 129 | |||||||||||||||||||
Expected return on plan assets | (2,215 | ) | (1,893 | ) | (113 | ) | (95 | ) | — | — | |||||||||||||||
Amortization of transition | — | — | 104 | 105 | — | — | |||||||||||||||||||
Amortization of prior service cost (benefit) | 30 | 30 | (50 | ) | (50 | ) | 40 | 40 | |||||||||||||||||
Amortization of actuarial (gain) loss | 7 | 711 | (66 | ) | — | 35 | 85 | ||||||||||||||||||
Net periodic pension cost under accounting standards | 1,224 | 2,443 | 104 | 179 | 421 | 455 | |||||||||||||||||||
Regulatory adjustment — deferred | 300 | (510 | ) | — | — | — | — | ||||||||||||||||||
Total expense recognized, before allocation to overhead pool | $ | 1,524 | $ | 1,933 | $ | 104 | $ | 179 | $ | 421 | $ | 455 | |||||||||||||
Registrant expects to contribute approximately $8.4 million to the pension plan during 2014. | |||||||||||||||||||||||||
Regulatory Adjustment: | |||||||||||||||||||||||||
In May 2013, the CPUC issued a final decision that authorized GSWC to establish a two-way balancing account for its water regions and the general office to track differences between the forecasted annual pension expenses adopted in rates and the actual annual expense recorded by GSWC in accordance with the accounting guidance for pension costs. As of March 31, 2014, GSWC has a $4.4 million under-collection in the two-way pension balancing account included as part of the pension regulatory asset (Note 2). A surcharge is currently in place to recover a portion of this under-collection. | |||||||||||||||||||||||||
Affordable Care Act: | |||||||||||||||||||||||||
In 2010, the Patient Protection and Affordable Care Act ("Affordable Care Act") was passed and was to become effective in 2014. In July 2013, compliance with the employer mandate and certain reporting requirements under the Affordable Care Act were delayed until 2015. Registrant’s health care plan meets the current requirements of the Affordable Care Act for the majority of its employees. Registrant is evaluating alternatives to address those employees for which the plan may not currently meet the requirements. Registrant continues to assess the impact of the Affordable Care Act on its health care benefit costs, but does not expect it to have a material impact in the near future on the Registrant's consolidated financial position, results of operations or cash flows. |
Contingencies
Contingencies: | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies: | |
Condemnation of Properties: | |
The laws of the State of California provide for the acquisition of public utility property by governmental agencies through their power of eminent domain, also known as condemnation, where doing so is necessary and in the public interest. In addition, these laws provide: (i) that the owner of utility property may contest whether the condemnation is actually necessary and in the public interest, and (ii) that the owner is entitled to receive the fair market value of its property if the property is ultimately taken. | |
The City of Claremont (“Claremont”) located in GSWC’s Region III, has expressed various concerns to GSWC about rates charged by GSWC and the effectiveness of the CPUC’s rate-setting procedures. In November 2012 and again in September 2013, Claremont made an offer to acquire GSWC’s water system servicing Claremont. GSWC rejected both offers and informed the City that the system is not for sale. Claremont continues to express a desire to potentially take the system by eminent domain. GSWC serves approximately 11,000 customers in Claremont. | |
In April 2011, an organization called Ojai FLOW ("Friends of Locally Owned Water") started a local campaign for the Casitas Municipal Water District (“CMWD”) to purchase GSWC’s Ojai water system. In March 2013, CMWD passed resolutions authorizing the establishment of a Community Facilities District, an entity authorized pursuant to the Mello-Roos Community Facilities District Act of 1982 (“Mello-Roos Act”) and the issuance of bonds to finance the potential acquisition of GSWC’s Ojai system by eminent domain. In August 2013, Ojai residents approved the levying of a special tax to satisfy the planned bond obligations. GSWC filed a petition in the Superior Court, Ventura County, which, among other things, challenged the legality of CMWD’s effort to utilize the Mello-Roos Act to acquire property by eminent domain and to fund legal and expert costs of the planned condemnation. Ojai FLOW members filed a motion with the Superior Court asking that all residents of GSWC’s Ojai service area be certified as class defendants in GSWC's pending action. They contend that the class would later be entitled to sue GSWC for damages if GSWC's challenge is denied. Without deciding whether such a lawsuit would be permitted, the Court granted the motion for class certification. On March 13, 2014, the Court denied GSWC's petition. On April 9, 2014, GSWC filed a Notice of Appeal. GSWC is unable to predict the outcome of the appeal at this time. GSWC serves approximately 3,000 customers in Ojai. | |
Environmental Clean-Up and Remediation: | |
GSWC has been involved in environmental remediation and clean-up at a plant site (“Chadron Plant”) that contained an underground storage tank which was used to store gasoline for its vehicles. This tank was removed from the ground in July 1990 along with the dispenser and ancillary piping. Since then, GSWC has been involved in various remediation activities at this site. Recent monitoring results show gasoline has been reduced to a sheen on top of the groundwater surface. Testing has recently been conducted to determine if alternative remediation will be effective in reducing the contamination further. As of March 31, 2014, the total spent to clean-up and remediate GSWC’s plant facility was approximately $3.5 million, of which $1.5 million has been paid by the State of California Underground Storage Tank Fund. Amounts paid by GSWC have been included in rate base and approved by the CPUC for recovery. | |
As of March 31, 2014, GSWC has a regulatory asset and an accrued liability for the estimated additional cost of $1.0 million to complete the clean-up at the site. The ultimate cost may vary as there are many unknowns in remediation of underground gasoline spills and this is an estimate based on currently available information. Management also believes it is probable that the estimated additional costs will be approved in rate base by the CPUC. | |
Other Litigation: | |
Registrant is also subject to other ordinary routine litigation incidental to its business. Management believes that rate recovery, proper insurance coverage and reserves are in place to insure against property, general liability and workers’ compensation claims incurred in the ordinary course of business. Registrant is unable to predict an estimate of the loss, if any, resulting from any pending suits or administrative proceedings. |
Business_Segments
Business Segments: | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Business Segments | ' | ||||||||||||||||||||
Business Segments: | |||||||||||||||||||||
AWR has three reportable segments, water, electric and contracted services, whereas GSWC has two segments, water and electric. AWR has no material assets other than cash and its investments in its subsidiaries on a stand-alone basis. All activities of GSWC are geographically located within California. | |||||||||||||||||||||
Activities of ASUS and its subsidiaries are conducted in California, Georgia, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. Each of ASUS’s wholly-owned subsidiaries is regulated by the state in which the subsidiary primarily conducts water and/or wastewater operations. Fees charged for operations and maintenance and renewal and replacement services are based upon the terms of the contracts with the U.S. government which have been filed with the regulatory commissions in the states in which ASUS’ subsidiaries are incorporated. | |||||||||||||||||||||
The tables below set forth information relating to GSWC’s operating segments, ASUS and its subsidiaries and other matters. Total assets by segment are not presented below, as certain of Registrant’s assets are not tracked by segment. The utility plant amounts are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude property installed by developers and conveyed to GSWC. | |||||||||||||||||||||
As Of And For The Three Months Ended March 31, 2014 | |||||||||||||||||||||
GSWC | ASUS | AWR | Consolidated | ||||||||||||||||||
(dollars in thousands) | Water | Electric | Contracts | Parent | AWR | ||||||||||||||||
Operating revenues | $ | 70,757 | $ | 10,456 | $ | 20,732 | $ | — | $ | 101,945 | |||||||||||
Operating income (loss) | 18,395 | 2,035 | 2,384 | (46 | ) | 22,768 | |||||||||||||||
Interest expense, net | 5,168 | 334 | 67 | (54 | ) | 5,515 | |||||||||||||||
Utility plant | 938,744 | 40,553 | 4,632 | — | 983,929 | ||||||||||||||||
Depreciation and amortization expense (1) | 9,563 | 677 | 290 | — | 10,530 | ||||||||||||||||
Income tax expense (benefit) | 4,958 | 747 | 823 | (171 | ) | 6,357 | |||||||||||||||
Capital additions | 19,324 | 472 | 735 | — | 20,531 | ||||||||||||||||
As Of And For The Three Months Ended March 31, 2013 | |||||||||||||||||||||
GSWC | ASUS | AWR | Consolidated | ||||||||||||||||||
(dollars in thousands) | Water | Electric | Contracts | Parent | AWR | ||||||||||||||||
Operating revenues | $ | 69,233 | $ | 10,734 | $ | 30,585 | $ | — | $ | 110,552 | |||||||||||
Operating income | 21,763 | 1,833 | 4,367 | — | 27,963 | ||||||||||||||||
Interest expense, net | 5,194 | 376 | 60 | (39 | ) | 5,591 | |||||||||||||||
Utility plant | 883,863 | 40,963 | 4,712 | — | 929,538 | ||||||||||||||||
Depreciation and amortization expense (1) | 8,930 | 592 | 294 | — | 9,816 | ||||||||||||||||
Income tax expense (benefit) | 6,941 | 722 | 1,666 | (80 | ) | 9,249 | |||||||||||||||
Capital additions | 17,878 | 233 | 314 | — | 18,425 | ||||||||||||||||
(1) Depreciation expense computed on GSWC’s transportation equipment of $272,000 and $250,000 for the three months ended March 31, 2014 and 2013, respectively, is recorded in administrative and general expenses. | |||||||||||||||||||||
The following table reconciles total utility plant (a key figure for rate-making) to total consolidated assets (in thousands): | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Total utility plant | $ | 983,929 | $ | 929,538 | |||||||||||||||||
Other assets | 349,842 | 359,976 | |||||||||||||||||||
Total consolidated assets | $ | 1,333,771 | $ | 1,289,514 | |||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies: (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Operations and Basis of Presentation | ' |
Nature of Operations: American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”) and American States Utility Services, Inc. (“ASUS”) (and its subsidiaries, Fort Bliss Water Services Company (“FBWS”), Terrapin Utility Services, Inc. (“TUS”), Old Dominion Utility Services, Inc. (“ODUS”), Palmetto State Utility Services, Inc. (“PSUS”) and Old North Utility Services, Inc. (“ONUS”)). The subsidiaries of ASUS may be collectively referred to herein as the “Military Utility Privatization Subsidiaries.” | |
GSWC is a public utility engaged principally in the purchase, production, distribution and sale of water in California serving approximately 257,000 customers. GSWC also distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,000 customers through its Bear Valley Electric Service (“BVES”) division. Although Registrant has a diversified base of residential, industrial and other customers, revenues derived from commercial and residential water customers accounted for approximately 90% of total water revenues during the three months ended March 31, 2014 and 2013. The California Public Utilities Commission (“CPUC”) regulates GSWC’s water and electric businesses, including properties, rates, services, facilities and other matters, and transactions by GSWC with its affiliates. AWR’s assets and operating income are primarily those of GSWC. | |
ASUS, through its wholly-owned subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases pursuant to 50-year firm fixed-price contracts. These contracts are subject to periodic price redeterminations and modifications for changes in circumstances and changes in laws and regulations. | |
There is no direct regulatory oversight by the CPUC over AWR or the operation, rates or services provided by ASUS or any of its wholly owned subsidiaries. | |
Basis of Presentation: The consolidated financial statements and notes thereto are being presented in a combined report being filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. | |
The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries, all of which are wholly owned. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Inter-company transactions and balances have been eliminated in the AWR consolidated financial statements. | |
On May 20, 2013, AWR's Board of Directors approved a two-for-one stock split of the Company's common shares. In September 2013, shareholders of record received one additional share for each AWR common share they owned. This two-for-one stock split has been retroactively applied to these financial statements, resulting in an increase in the number of shares outstanding for all periods presented. | |
The consolidated financial statements included herein have been prepared by Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The December 31, 2013 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles ("GAAP"). The preparation of the consolidated financial statements 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 date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments consisting of normal, recurring items and estimates necessary for a fair statement of the results for the interim periods have been made. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2013 filed with the SEC. | |
GSWC's Related Party Transactions | ' |
GSWC's Related Party Transactions: In May 2013, AWR issued an interest bearing promissory note (the "Note") to GSWC for $20.0 million which expires on May 23, 2018. Under the terms of the Note, AWR may borrow from GSWC amounts up to $20.0 million for working capital purposes. AWR agrees to pay any unpaid principal amounts outstanding under the Note, plus accrued interest. As of March 31, 2014, AWR had no amounts outstanding to GSWC under this Note. | |
GSWC and ASUS provide and receive various services to and from their parent, AWR, and among themselves. In addition, AWR has a $100.0 million syndicated credit facility. AWR borrows under this facility and provides funds to its subsidiaries, including GSWC, in support of their operations. During the three months ended March 31, 2014, AWR borrowed $24 million under this credit facility, which AWR then provided to ASUS. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest cost under the credit facility. GSWC also allocates certain corporate office administrative and general costs to its affiliate, ASUS, using allocation factors approved by the CPUC. Amounts owed to GSWC by its parent, AWR, or for allocated expenses are included in inter-company receivables as of March 31, 2014 and December 31, 2013. | |
Sales and Use Taxes | ' |
Sales and Use Taxes: GSWC bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which GSWC pays to various municipalities (based on ordinances adopted by these municipalities) in order to use public right of way for utility purposes. GSWC bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of GSWC’s ability to collect from the customer, are accounted for on a gross basis. GSWC’s franchise fees billed to customers and recorded as operating revenue were approximately $845,000 and $811,000 for the three months ended March 31, 2014 and 2013, respectively. When GSWC acts as an agent, and the tax is not required to be remitted if it is not collected from the customer, the taxes are accounted for on a net basis. | |
Depending on the state in which the operations are conducted, ASUS and its subsidiaries are also subject to certain state non-income tax assessments generally computed on a “gross receipts” or “gross revenues” basis. These non-income tax assessments are required to be paid regardless of whether the subsidiary is reimbursed by the U.S. government for these assessments under its 50-year contracts with the U.S. government. | |
Recently Adopted Accounting Pronouncements | ' |
In July 2013 the Financial Accounting Standards Board issued updated accounting guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The update requires an entity to present in certain cases, an unrecognized tax benefit, or portion of an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward when settlement is available in this manner under the tax law. The updated guidance is effective for reporting periods beginning after December 15, 2013. The adoption of the guidance did not, and is not expected to, have a material impact on the Company’s consolidated results of operations or consolidated balance sheet. |
Regulatory_Matters_Tables
Regulatory Matters: (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Regulated Operations [Abstract] | ' | ||||||||
Schedule of regulatory assets, less regulatory liabilities in the consolidated balance sheets for continuing operations | ' | ||||||||
Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: | |||||||||
(dollars in thousands) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
GSWC | |||||||||
Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account | $ | 18,077 | $ | 16,345 | |||||
Base Revenue Requirement Adjustment Mechanism | 9,088 | 8,725 | |||||||
Costs deferred for future recovery on Aerojet case | 14,561 | 14,763 | |||||||
Pensions and other post-retirement obligations (Note 6) | 19,452 | 20,241 | |||||||
Flow-through taxes, net (Note 5) | 16,938 | 16,189 | |||||||
Low income rate assistance balancing accounts | 9,992 | 9,979 | |||||||
General rate case memorandum accounts | 12,993 | 15,645 | |||||||
Other regulatory assets | 22,124 | 25,086 | |||||||
Various refunds to customers | (3,575 | ) | (4,292 | ) | |||||
Total | $ | 119,650 | $ | 122,681 | |||||
Earnings_per_ShareCapital_Stoc1
Earnings per Share/Capital Stock: (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating basic net income per share | ' | |||||||||||
The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used for calculating basic net income per share: | ||||||||||||
Basic: | For The Three Months Ended | |||||||||||
March 31, | ||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | ||||||||||
Net income | $ | 11,021 | 13,465 | |||||||||
Less: (a) | Distributed earnings to common shareholders | 7,846 | 6,839 | |||||||||
Distributed earnings to participating securities | 43 | 45 | ||||||||||
Undistributed earnings | 3,132 | 6,581 | ||||||||||
(b) | Undistributed earnings allocated to common shareholders | 3,114 | 6,539 | |||||||||
Undistributed earnings allocated to participating securities | 18 | 42 | ||||||||||
Total income available to common shareholders, basic (a)+(b) | $ | 10,960 | $ | 13,378 | ||||||||
Weighted average Common Shares outstanding, basic | 38,747 | 38,529 | ||||||||||
Basic earnings per Common Share | $ | 0.28 | $ | 0.35 | ||||||||
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating diluted net income per share | ' | |||||||||||
The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share: | ||||||||||||
Diluted: | For The Three Months Ended | |||||||||||
March 31, | ||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | ||||||||||
Common shareholders earnings, basic | $ | 10,960 | $ | 13,378 | ||||||||
Undistributed earnings for dilutive stock options | 18 | 42 | ||||||||||
Total common shareholders earnings, diluted | $ | 10,978 | $ | 13,420 | ||||||||
Weighted average Common Shares outstanding, basic | 38,747 | 38,529 | ||||||||||
Stock-based compensation (1) | 197 | 243 | ||||||||||
Weighted average Common Shares outstanding, diluted | 38,944 | 38,772 | ||||||||||
Diluted earnings per Common Share | $ | 0.28 | $ | 0.35 | ||||||||
(1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 247,064 stock options and 352,096 restricted stock units at March 31, 2014 and 2013, respectively, were deemed to be outstanding in accordance with accounting guidance on earnings per share. All of the 237,174 and 290,416 restricted stock units at March 31, 2014 and 2013, respectively, were included in the calculation of diluted EPS for the three months ended March 31, 2014 and 2013. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments: (Tables) (GSWC) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
GSWC | ' | ||||||||||||||||
Fair value of financial instruments | ' | ||||||||||||||||
Schedule of estimates of the fair value of long-term debt | ' | ||||||||||||||||
The table below estimates the fair value of long-term debt held by GSWC. The fair values as of March 31, 2014 and December 31, 2013 have been determined using rates for similar financial instruments of the same duration utilizing level 2 methods and assumptions. The interest rates used for the March 31, 2014 valuation increased as compared to December 31, 2013, decreasing the fair value of long-term debt as of March 31, 2014. Changes in the assumptions will produce differing results. | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
(dollars in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Financial liabilities: | |||||||||||||||||
Long-term debt—GSWC | $ | 332,301 | $ | 415,895 | $ | 332,377 | $ | 412,590 | |||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans: (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of components of net periodic benefit costs, before allocation to the overhead pool, for Registrant's pension plan, postretirement plan, and SERP | ' | ||||||||||||||||||||||||
The components of net periodic benefit costs, before allocation to the overhead pool, for Registrant’s pension plan, postretirement plan and Supplemental Executive Retirement Plan (“SERP”) for the three months ended March 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
For The Three Months Ended March 31, | |||||||||||||||||||||||||
Pension Benefits | Other | SERP | |||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Components of Net Periodic Benefits Cost: | |||||||||||||||||||||||||
Service cost | $ | 1,487 | $ | 1,864 | $ | 99 | $ | 106 | $ | 192 | $ | 201 | |||||||||||||
Interest cost | 1,915 | 1,731 | 130 | 113 | 154 | 129 | |||||||||||||||||||
Expected return on plan assets | (2,215 | ) | (1,893 | ) | (113 | ) | (95 | ) | — | — | |||||||||||||||
Amortization of transition | — | — | 104 | 105 | — | — | |||||||||||||||||||
Amortization of prior service cost (benefit) | 30 | 30 | (50 | ) | (50 | ) | 40 | 40 | |||||||||||||||||
Amortization of actuarial (gain) loss | 7 | 711 | (66 | ) | — | 35 | 85 | ||||||||||||||||||
Net periodic pension cost under accounting standards | 1,224 | 2,443 | 104 | 179 | 421 | 455 | |||||||||||||||||||
Regulatory adjustment — deferred | 300 | (510 | ) | — | — | — | — | ||||||||||||||||||
Total expense recognized, before allocation to overhead pool | $ | 1,524 | $ | 1,933 | $ | 104 | $ | 179 | $ | 421 | $ | 455 | |||||||||||||
Business_Segments_Tables
Business Segments: (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Schedule of reporting segments information | ' | ||||||||||||||||||||
The tables below set forth information relating to GSWC’s operating segments, ASUS and its subsidiaries and other matters. Total assets by segment are not presented below, as certain of Registrant’s assets are not tracked by segment. The utility plant amounts are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude property installed by developers and conveyed to GSWC. | |||||||||||||||||||||
As Of And For The Three Months Ended March 31, 2014 | |||||||||||||||||||||
GSWC | ASUS | AWR | Consolidated | ||||||||||||||||||
(dollars in thousands) | Water | Electric | Contracts | Parent | AWR | ||||||||||||||||
Operating revenues | $ | 70,757 | $ | 10,456 | $ | 20,732 | $ | — | $ | 101,945 | |||||||||||
Operating income (loss) | 18,395 | 2,035 | 2,384 | (46 | ) | 22,768 | |||||||||||||||
Interest expense, net | 5,168 | 334 | 67 | (54 | ) | 5,515 | |||||||||||||||
Utility plant | 938,744 | 40,553 | 4,632 | — | 983,929 | ||||||||||||||||
Depreciation and amortization expense (1) | 9,563 | 677 | 290 | — | 10,530 | ||||||||||||||||
Income tax expense (benefit) | 4,958 | 747 | 823 | (171 | ) | 6,357 | |||||||||||||||
Capital additions | 19,324 | 472 | 735 | — | 20,531 | ||||||||||||||||
As Of And For The Three Months Ended March 31, 2013 | |||||||||||||||||||||
GSWC | ASUS | AWR | Consolidated | ||||||||||||||||||
(dollars in thousands) | Water | Electric | Contracts | Parent | AWR | ||||||||||||||||
Operating revenues | $ | 69,233 | $ | 10,734 | $ | 30,585 | $ | — | $ | 110,552 | |||||||||||
Operating income | 21,763 | 1,833 | 4,367 | — | 27,963 | ||||||||||||||||
Interest expense, net | 5,194 | 376 | 60 | (39 | ) | 5,591 | |||||||||||||||
Utility plant | 883,863 | 40,963 | 4,712 | — | 929,538 | ||||||||||||||||
Depreciation and amortization expense (1) | 8,930 | 592 | 294 | — | 9,816 | ||||||||||||||||
Income tax expense (benefit) | 6,941 | 722 | 1,666 | (80 | ) | 9,249 | |||||||||||||||
Capital additions | 17,878 | 233 | 314 | — | 18,425 | ||||||||||||||||
(1) Depreciation expense computed on GSWC’s transportation equipment of $272,000 and $250,000 for the three months ended March 31, 2014 and 2013, respectively, is recorded in administrative and general expenses. | |||||||||||||||||||||
Schedule of reconciliation of total utility plant (a key figure for rate-making) to total consolidated assets | ' | ||||||||||||||||||||
The following table reconciles total utility plant (a key figure for rate-making) to total consolidated assets (in thousands): | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Total utility plant | $ | 983,929 | $ | 929,538 | |||||||||||||||||
Other assets | 349,842 | 359,976 | |||||||||||||||||||
Total consolidated assets | $ | 1,333,771 | $ | 1,289,514 | |||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies: (Details) (USD $) | 0 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||
20-May-13 | Mar. 31, 2014 | Mar. 31, 2013 | 31-May-13 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | 23-May-13 | Mar. 31, 2014 | |
registrant | AWR | AWR | GSWC | GSWC | GSWC | GSWC | ASUS | ASUS | ASUS | Fourth Amendment to Revolving Credit Agreement | Fourth Amendment to Revolving Credit Agreement | Sales | |||
Promissory Note | Syndicated Credit Facility | Purchase, production, distribution and sale of water | Electricity distribution | Contracts | AWR | AWR | GSWC | ||||||||
customer | customer | Syndicated Credit Facility | Syndicated Credit Facility | Electricity distribution | |||||||||||
Nature of Operations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers served | ' | ' | ' | ' | ' | ' | ' | 257,000 | 24,000 | ' | ' | ' | ' | ' | ' |
Percentage of total revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% |
Period of fixed price contracts to operate and maintain the water and/or wastewater systems at various military bases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '50 years | ' | ' | ' |
Basis of Presentation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of registrants filing combined report | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock split, conversion ratio | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maximum borrowing capacity | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity on line of credit | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' |
Notes Payable to Banks: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity on line of credit | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' |
Maximum borrowing capacity on line of credit, potential election to increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' |
Line of credit, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,000,000 | ' | ' |
Sales and Use Taxes: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Franchise fees billed to customers and recorded as operating revenue | ' | ' | ' | ' | ' | 845,000 | 811,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Period of fixed price contracts to operate and maintain the water and/or wastewater systems at various military bases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '50 years | ' | ' | ' |
Non-income tax assessments accounted on a gross basis | ' | $4,325,000 | $4,148,000 | ' | ' | $3,896,000 | $3,716,000 | ' | ' | $149,000 | $162,000 | ' | ' | ' | ' |
Regulatory_Matters_Details
Regulatory Matters: (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Regulatory matters: | ' | ' |
Regulatory asset not accruing carrying costs | $36,800,000 | ' |
Pension and other post-retirement obligations | ' | ' |
Regulatory matters: | ' | ' |
Regulatory asset not accruing carrying costs | 15,100,000 | ' |
Flow-through taxes, net | ' | ' |
Regulatory matters: | ' | ' |
Regulatory asset not accruing carrying costs | 16,300,000 | ' |
GOLDEN STATE WATER COMPANY | ' | ' |
Regulatory matters: | ' | ' |
Regulatory assets | 119,650,000 | 122,681,000 |
GOLDEN STATE WATER COMPANY | Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account | ' | ' |
Regulatory matters: | ' | ' |
Regulatory assets | 18,077,000 | 16,345,000 |
GOLDEN STATE WATER COMPANY | Base Revenue Requirement Adjustment Mechanism | ' | ' |
Regulatory matters: | ' | ' |
Regulatory assets | 9,088,000 | 8,725,000 |
GOLDEN STATE WATER COMPANY | Costs deferred for future recovery on Aerojet case | ' | ' |
Regulatory matters: | ' | ' |
Regulatory assets | 14,561,000 | 14,763,000 |
GOLDEN STATE WATER COMPANY | Pension and other post-retirement obligations | ' | ' |
Regulatory matters: | ' | ' |
Regulatory assets | 19,452,000 | 20,241,000 |
GOLDEN STATE WATER COMPANY | Flow-through taxes, net | ' | ' |
Regulatory matters: | ' | ' |
Regulatory assets | 16,938,000 | 16,189,000 |
GOLDEN STATE WATER COMPANY | Low income rate assistance balancing accounts | ' | ' |
Regulatory matters: | ' | ' |
Regulatory assets | 9,992,000 | 9,979,000 |
GOLDEN STATE WATER COMPANY | General rate case memorandum accounts | ' | ' |
Regulatory matters: | ' | ' |
Regulatory assets | 12,993,000 | 15,645,000 |
GOLDEN STATE WATER COMPANY | Other regulatory assets | ' | ' |
Regulatory matters: | ' | ' |
Regulatory assets | 22,124,000 | 25,086,000 |
Various refunds to customers | GOLDEN STATE WATER COMPANY | ' | ' |
Regulatory matters: | ' | ' |
Regulatory assets | ($3,575,000) | ($4,292,000) |
Regulatory_Matters_Alternative
Regulatory Matters: Alternative-Revenue Programs (Details) (GSWC, USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Regulatory matters: | ' | ' | ' |
Under (over) collection | $119,650,000 | ' | $122,681,000 |
WRAM, net of MCBA | ' | ' | ' |
Regulatory matters: | ' | ' | ' |
Commercial paper, term | '90 days | ' | ' |
Amount billed to customers as surcharges | 1,800,000 | 3,600,000 | ' |
Under (over) collection | 18,077,000 | ' | 16,345,000 |
WRAM, net of MCBA | Minimum | ' | ' | ' |
Regulatory matters: | ' | ' | ' |
Regulatory asset recovery periods | '18 months | ' | ' |
WRAM, net of MCBA | Maximum | ' | ' | ' |
Regulatory matters: | ' | ' | ' |
Regulatory asset recovery periods | '24 months | ' | ' |
WRAM | ' | ' | ' |
Regulatory matters: | ' | ' | ' |
Under (over) collection | 18,400,000 | ' | ' |
Modified Cost Balancing Account | ' | ' | ' |
Regulatory matters: | ' | ' | ' |
Under (over) collection | -303,000 | ' | ' |
Base revenue requirement adjustment mechanism | ' | ' | ' |
Regulatory matters: | ' | ' | ' |
Under (over) collection | $9,088,000 | ' | $8,725,000 |
Regulatory_Matters_General_Rat
Regulatory Matters: General Rate Case Memorandum Accounts and Other Regulatory Assets (Details) (USD $) | 3 Months Ended | 3 Months Ended | ||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
GSWC | GSWC | GSWC | GSWC | GSWC | GSWC | Minimum | Maximum | Majority | ||
General rate case memorandum accounts | General rate case memorandum accounts | Other regulatory assets, net | Other regulatory assets, net | GSWC | GSWC | GSWC | ||||
General rate case memorandum accounts | General rate case memorandum accounts | General rate case memorandum accounts | ||||||||
Regulatory matters: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory assets | ' | $119,650,000 | $122,681,000 | $12,993,000 | $15,645,000 | $22,124,000 | $25,086,000 | ' | ' | ' |
Net regulatory assets increase (decrease) due to settlement of rate case | $8,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory asset recovery periods | ' | ' | ' | ' | ' | ' | ' | '12 months | '24 months | '12 months |
Regulatory_Matters_CPUC_Rehear
Regulatory Matters: CPUC Rehearing Matter and Procurement Audits (Details) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2011 | Mar. 31, 2013 | Jul. 31, 2011 |
Audit | GSWC | ||
La Serena Plant Improvement Project | |||
CPUC Rehearing Matter | |||
Regulatory matters: | ' | ' | ' |
Costs included in rehearing matter | ' | ' | $3.50 |
Disallowed costs and related refunds | ' | $2.60 | ' |
Separate independent audits | 3 | ' | ' |
Separate independent audits, period of years after settlement date | '10 years | ' | ' |
Regulatory_Matters_BVES_Genera
Regulatory Matters: BVES General Rate Case and Renewables Portfolio Standard (Details) (GSWC, USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2012 | Mar. 31, 2014 |
BVES General Rate Case | BVES General Rate Case | |||
Regulatory matters: | ' | ' | ' | ' |
Amount of retroactive ratemaking proposal included in DRA's recommendation to increase accumulated depreciation | ' | ' | $2,000,000 | ' |
Net regulatory assets | $119,650,000 | $122,681,000 | ' | $1,600,000 |
Portion of deferred rate case costs required to be written off, if DRA prevails | ' | ' | ' | 50.00% |
Percentage of deferred rate case cost to be borne by shareholders | ' | ' | ' | 50.00% |
Earnings_per_ShareCapital_Stoc2
Earnings per Share/Capital Stock: (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Basic | ' | ' | ||
Net income | $11,021 | $13,465 | ||
Less: Distributed earnings to common shareholders | 7,846 | 6,839 | ||
Less: Distributed earnings to participating securities | 43 | 45 | ||
Undistributed earnings | 3,132 | 6,581 | ||
Undistributed earnings allocated to common shareholders | 3,114 | 6,539 | ||
Undistributed earnings allocated to participating securities | 18 | 42 | ||
Total income available to common shareholders, basic | 10,960 | 13,378 | ||
Weighted average Common Shares outstanding, basic (in shares) | 38,747 | 38,529 | ||
Basic earnings per Common Share (in dollars per share) | $0.28 | $0.35 | ||
Diluted | ' | ' | ||
Total income available to common shareholders, basic | 10,960 | 13,378 | ||
Undistributed earnings for dilutive stock options | 18 | 42 | ||
Total common shareholders earnings, diluted | $10,978 | $13,420 | ||
Weighted average Common Shares outstanding, basic (in shares) | 38,747 | 38,529 | ||
Stock-based compensation (in shares) | 197 | [1] | 243 | [1] |
Weighted average common shares outstanding, diluted (in shares) | 38,944 | 38,772 | ||
Diluted earnings per Common Share (in dollars per share) | $0.28 | $0.35 | ||
[1] | In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 247,064 stock options and 352,096 restricted stock units at MarchB 31, 2014 and 2013, respectively, were deemed to be outstanding in accordance with accounting guidance on earnings per share. All of the 237,174 and 290,416 restricted stock units at MarchB 31, 2014 and 2013, respectively, were included in the calculation of diluted EPS for the three months ended MarchB 31, 2014 and 2013. |
Earnings_per_ShareCapital_Stoc3
Earnings per Share/Capital Stock: (Details 2) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 27, 2014 |
Additional disclosure | ' | ' | ' |
Options outstanding (in shares) | 247,064 | 352,096 | ' |
Stock options included in the calculation of diluted EPS (in shares) | 247,064 | 352,096 | ' |
Stock options not included in the calculation of diluted EPS (in shares) | 0 | ' | ' |
Anti-dilutive stock options not included in the computation of diluted EPS (in shares) | 0 | 0 | ' |
Common Shares issued under DRP and the 2000 and 2008 Employee Plans | 57,249 | 92,586 | ' |
Value of Common Shares issued under DRP and the 2000 and 2008 Employee Plans | $201 | $625 | ' |
Common Shares repurchased in the open market under DRP and 401(k) Plan | 159,754 | 85,194 | ' |
Dividends paid | $7,846 | $6,838 | ' |
Quarterly dividends paid, per share of common stock (in dollars per share) | $0.20 | $0.18 | ' |
Authorized shares to be repurchased | ' | ' | 1,250,000 |
Restricted Stock Units | ' | ' | ' |
Additional disclosure | ' | ' | ' |
Restricted stock units outstanding (in shares) | 237,174 | 290,416 | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments: (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
GSWC | Carrying Amount | ' | ' |
Financial liabilities: | ' | ' |
Long-term debt-GSWC | $332,301,000 | $332,377,000 |
GSWC | Total | ' | ' |
Financial liabilities: | ' | ' |
Long-term debt-GSWC | 415,895,000 | 412,590,000 |
Mutual Funds [Member] | Level 1 | ' | ' |
Fair value of financial instruments | ' | ' |
Investments | $6,900,000 | ' |
Income_Taxes_Details
Income Taxes: (Details) (GSWC) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
GSWC | ' | ' |
Effective income tax rate | ' | ' |
ETRs (as a percent) | 37.90% | 41.70% |
Employee_Benefit_Plans_Details
Employee Benefit Plans: (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Components of Net Periodic Benefits Cost: | ' | ' |
Regulatory adjustment b deferred | $818,000 | $1,371,000 |
Expected employer's contribution in 2014 | 8,400,000 | ' |
GSWC | ' | ' |
Components of Net Periodic Benefits Cost: | ' | ' |
Regulatory adjustment b deferred | 818,000 | 1,371,000 |
Pension Benefits | ' | ' |
Components of Net Periodic Benefits Cost: | ' | ' |
Service cost | 1,487,000 | 1,864,000 |
Interest cost | 1,915,000 | 1,731,000 |
Expected return on plan assets | -2,215,000 | -1,893,000 |
Amortization of transition | 0 | 0 |
Amortization of prior service cost (benefit) | 30,000 | 30,000 |
Amortization of actuarial (gain) loss | 7,000 | 711,000 |
Net periodic pension cost under accounting standards | 1,224,000 | 2,443,000 |
Regulatory adjustment b deferred | 300,000 | -510,000 |
Total expense recognized, before allocation to overhead pool | 1,524,000 | 1,933,000 |
Pension Benefits | GSWC | ' | ' |
Components of Net Periodic Benefits Cost: | ' | ' |
Regulatory adjustment b deferred | 4,400,000 | ' |
Other Postretirement Benefits | ' | ' |
Components of Net Periodic Benefits Cost: | ' | ' |
Service cost | 99,000 | 106,000 |
Interest cost | 130,000 | 113,000 |
Expected return on plan assets | -113,000 | -95,000 |
Amortization of transition | 104,000 | 105,000 |
Amortization of prior service cost (benefit) | -50,000 | -50,000 |
Amortization of actuarial (gain) loss | -66,000 | 0 |
Net periodic pension cost under accounting standards | 104,000 | 179,000 |
Regulatory adjustment b deferred | 0 | 0 |
Total expense recognized, before allocation to overhead pool | 104,000 | 179,000 |
SERP | ' | ' |
Components of Net Periodic Benefits Cost: | ' | ' |
Service cost | 192,000 | 201,000 |
Interest cost | 154,000 | 129,000 |
Expected return on plan assets | 0 | 0 |
Amortization of transition | 0 | 0 |
Amortization of prior service cost (benefit) | 40,000 | 40,000 |
Amortization of actuarial (gain) loss | 35,000 | 85,000 |
Net periodic pension cost under accounting standards | 421,000 | 455,000 |
Regulatory adjustment b deferred | 0 | 0 |
Total expense recognized, before allocation to overhead pool | $421,000 | $455,000 |
Contingencies_Details
Contingencies: (Details) (GSWC, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Environmental Clean-Up and Remediation | ' |
Contingencies | ' |
Amount spent in clean-up and remediation activities | $3.50 |
Amount paid by the State of California Underground Storage Tank Fund for clean-up and remediation of plant facilities | 1.5 |
Accrued liability for the estimated additional cost to complete the clean-up at the site | $1 |
City of Claremont | Condemnation of Properties | ' |
Contingencies | ' |
Number of customers served through water systems | 11,000 |
Ojai FLOW | Condemnation of Properties | ' |
Contingencies | ' |
Number of customers served through water systems | 3,000 |
Business_Segments_Details
Business Segments: (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Details of reportable segment | ' | ' | ' |
Operating revenues | $101,945 | $110,552 | ' |
Operating income (loss) | 22,768 | 27,963 | ' |
Interest expense, net | 5,515 | 5,591 | ' |
Utility Plant | 983,929 | 929,538 | 981,477 |
Depreciation and amortization expense | 10,530 | 9,816 | ' |
Income tax expense (benefit) | 6,357 | 9,249 | ' |
Capital additions | 20,531 | 18,425 | ' |
GSWC | ' | ' | ' |
Details of reportable segment | ' | ' | ' |
Number of reportable segments | 2 | ' | ' |
Operating revenues | 81,213 | 79,967 | ' |
Operating income (loss) | 20,430 | 23,596 | ' |
Utility Plant | 979,297 | ' | 977,294 |
Depreciation and amortization expense | 10,240 | 9,522 | ' |
Income tax expense (benefit) | 5,705 | 7,663 | ' |
AWR Parent | ' | ' | ' |
Details of reportable segment | ' | ' | ' |
Number of reportable segments | 3 | ' | ' |
Reportable Entities | GSWC | Water | ' | ' | ' |
Details of reportable segment | ' | ' | ' |
Operating revenues | 70,757 | 69,233 | ' |
Operating income (loss) | 18,395 | 21,763 | ' |
Interest expense, net | 5,168 | 5,194 | ' |
Utility Plant | 938,744 | 883,863 | ' |
Depreciation and amortization expense | 9,563 | 8,930 | ' |
Income tax expense (benefit) | 4,958 | 6,941 | ' |
Capital additions | 19,324 | 17,878 | ' |
Reportable Entities | GSWC | Electric | ' | ' | ' |
Details of reportable segment | ' | ' | ' |
Operating revenues | 10,456 | 10,734 | ' |
Operating income (loss) | 2,035 | 1,833 | ' |
Interest expense, net | 334 | 376 | ' |
Utility Plant | 40,553 | 40,963 | ' |
Depreciation and amortization expense | 677 | 592 | ' |
Income tax expense (benefit) | 747 | 722 | ' |
Capital additions | 472 | 233 | ' |
Reportable Entities | ASUS | Contracts | ' | ' | ' |
Details of reportable segment | ' | ' | ' |
Operating revenues | 20,732 | 30,585 | ' |
Operating income (loss) | 2,384 | 4,367 | ' |
Interest expense, net | 67 | 60 | ' |
Utility Plant | 4,632 | 4,712 | ' |
Depreciation and amortization expense | 290 | 294 | ' |
Income tax expense (benefit) | 823 | 1,666 | ' |
Capital additions | 735 | 314 | ' |
Intersegment Eliminations | AWR Parent | ' | ' | ' |
Details of reportable segment | ' | ' | ' |
Operating revenues | 0 | 0 | ' |
Operating income (loss) | -46 | 0 | ' |
Interest expense, net | -54 | -39 | ' |
Utility Plant | 0 | 0 | ' |
Depreciation and amortization expense | 0 | 0 | ' |
Income tax expense (benefit) | -171 | -80 | ' |
Capital additions | $0 | $0 | ' |
Business_Segments_Details_2
Business Segments: (Details 2) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Details of reportable segment | ' | ' | ' |
Total utility plant | $983,929 | $929,538 | $981,477 |
Other assets | 349,842 | 359,976 | ' |
Total Assets | 1,333,771 | 1,289,514 | 1,310,183 |
GOLDEN STATE WATER COMPANY | ' | ' | ' |
Details of reportable segment | ' | ' | ' |
Total utility plant | 979,297 | ' | 977,294 |
Total Assets | 1,225,920 | ' | 1,233,381 |
Depreciation on transportation equipment | $272 | $250 | ' |