Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 30, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | AMERICAN STATES WATER CO | ||
Entity Central Index Key | 1,056,903 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 36,774,205 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,625,678 | $ 2,099,687 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Regulated utility plant, at cost | ||
Water | $ 1,649,535 | $ 1,559,209 |
Electric | 106,064 | 99,726 |
Total | 1,755,599 | 1,658,935 |
Non-regulated utility property, at cost | 24,511 | 15,592 |
Total utility plant, at cost | 1,780,110 | 1,674,527 |
Less — accumulated depreciation | (561,855) | (533,370) |
Utility plant before construction work in progress | 1,218,255 | 1,141,157 |
Construction work in progress | 78,055 | 63,835 |
Net utility plant | 1,296,310 | 1,204,992 |
Other Property and Investments | ||
Goodwill | 1,116 | 1,116 |
Other property and investments | 25,356 | 24,070 |
Total other property and investments | 26,472 | 25,186 |
Current Assets | ||
Cash and cash equivalents | 7,141 | 214 |
Accounts receivable — customers, less allowance for doubtful accounts | 23,395 | 26,127 |
Unbilled revenue — receivable | 23,588 | 26,411 |
Receivable from U.S. government, less allowance for doubtful accounts | 21,543 | 3,725 |
Other accounts receivable, less allowance for doubtful accounts | 3,103 | 8,251 |
Income taxes receivable | 2,164 | 4,737 |
Materials and supplies | 5,775 | 4,795 |
Regulatory assets — current | 16,527 | 34,220 |
Prepayments and other current assets | 6,063 | 5,596 |
Contract assets (Note 2) | 22,169 | 0 |
Costs and estimated earnings in excess of billings on contracts (Note 2) | 0 | 41,387 |
Total current assets | 131,468 | 155,463 |
Regulatory and Other Assets | ||
Receivable from the U.S. government (Note 2) | 39,583 | 0 |
Contract assets (Note 2) | 2,278 | 0 |
Costs and estimated earnings in excess of billings on contracts (Note 2) | 0 | 25,426 |
Other | 5,322 | 5,667 |
Total other assets | 47,183 | 31,093 |
Total Assets | 1,501,433 | 1,416,734 |
Capitalization | ||
Common shareholder’s equity | 558,223 | 529,945 |
Long-term debt | 281,087 | 321,039 |
Total capitalization | 839,310 | 850,984 |
Current Liabilities | ||
Notes payable to banks | 0 | 59,000 |
Long-term debt — current | 40,320 | 324 |
Accounts payable | 59,532 | 50,978 |
Income taxes payable | 360 | 225 |
Accrued other taxes | 10,094 | 7,344 |
Accrued employee expenses | 13,842 | 12,969 |
Accrued interest | 3,865 | 3,861 |
Unrealized loss on purchased power contracts | 311 | 2,941 |
Contract liabilities (Note 2) | 7,530 | 3,911 |
Other | 10,731 | 15,109 |
Total current liabilities | 146,585 | 156,662 |
Other Credits | ||
Notes payable to banks | 95,500 | 0 |
Advances for construction | 66,305 | 67,465 |
Contributions in aid of construction — net | 124,385 | 123,602 |
Deferred income taxes | 114,216 | 115,703 |
Regulatory liabilities | 44,867 | 32,178 |
Unamortized investment tax credits | 1,367 | 1,436 |
Accrued pension and other post-retirement benefits | 57,636 | 57,695 |
Other | 11,262 | 11,009 |
Total other credits | 515,538 | 409,088 |
Commitments and Contingencies | 0 | 0 |
Total Capitalization and Liabilities | 1,501,433 | 1,416,734 |
GSWC | ||
Regulated utility plant, at cost | ||
Water | 1,649,535 | 1,559,209 |
Electric | 106,064 | 99,726 |
Total utility plant, at cost | 1,755,599 | 1,658,935 |
Less — accumulated depreciation | (551,244) | (524,481) |
Utility plant before construction work in progress | 1,204,355 | 1,134,454 |
Construction work in progress | 76,737 | 63,486 |
Net utility plant | 1,281,092 | 1,197,940 |
Other Property and Investments | ||
Other property and investments | 23,263 | 21,956 |
Total other property and investments | 23,263 | 21,956 |
Current Assets | ||
Cash and cash equivalents | 4,187 | 214 |
Accounts receivable — customers, less allowance for doubtful accounts | 23,395 | 26,127 |
Unbilled revenue — receivable | 17,892 | 18,852 |
Other accounts receivable, less allowance for doubtful accounts | 1,959 | 6,105 |
Income taxes receivable | 5,617 | 6,590 |
Materials and supplies | 4,797 | 4,046 |
Regulatory assets — current | 16,527 | 34,220 |
Prepayments and other current assets | 5,275 | 5,090 |
Total current assets | 79,649 | 101,244 |
Regulatory and Other Assets | ||
Other | 5,218 | 5,683 |
Total other assets | 5,218 | 5,683 |
Total Assets | 1,389,222 | 1,326,823 |
Capitalization | ||
Common shareholder’s equity | 503,575 | 474,374 |
Long-term debt | 281,087 | 321,039 |
Total capitalization | 784,662 | 795,413 |
Current Liabilities | ||
Intercompany payable to Parent | 0 | 34,836 |
Long-term debt — current | 40,320 | 324 |
Accounts payable | 47,865 | 42,497 |
Accrued other taxes | 9,911 | 7,108 |
Accrued employee expenses | 11,910 | 11,338 |
Accrued interest | 3,550 | 3,585 |
Unrealized loss on purchased power contracts | 311 | 2,941 |
Other | 9,432 | 14,705 |
Total current liabilities | 123,299 | 117,334 |
Other Credits | ||
Inter-company payable to Parent | 57,289 | 0 |
Advances for construction | 66,305 | 67,465 |
Contributions in aid of construction — net | 124,385 | 123,602 |
Deferred income taxes | 118,241 | 120,780 |
Regulatory liabilities | 44,867 | 32,178 |
Unamortized investment tax credits | 1,367 | 1,436 |
Accrued pension and other post-retirement benefits | 57,636 | 57,695 |
Other | 11,171 | 10,920 |
Total other credits | 481,261 | 414,076 |
Total Capitalization and Liabilities | $ 1,389,222 | $ 1,326,823 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITALIZATION - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Common Shareholders' Equity: | ||
Common shares, no par value | $ 253,689 | $ 250,124 |
Reinvested earnings in the business | 304,534 | 279,821 |
Long-Term Debt | ||
Less: Current maturities | (40,320) | (324) |
Debt Issuance Costs, Net | 3,571 | 3,902 |
Long-Term Debt | 281,087 | 321,039 |
Total Capitalization | 839,310 | 850,984 |
Common shareholder’s equity | 558,223 | 529,945 |
Debt and Capital Lease Obligations | 324,978 | 325,265 |
GSWC | ||
Common Shareholders' Equity: | ||
Common shares, no par value | 292,412 | 242,181 |
Reinvested earnings in the business | 211,163 | 232,193 |
Long-Term Debt | ||
Less: Current maturities | (40,320) | (324) |
Debt Issuance Costs, Net | 3,571 | 3,902 |
Long-Term Debt | 281,087 | 321,039 |
Total Capitalization | 784,662 | 795,413 |
Common shareholder’s equity | 503,575 | 474,374 |
Debt and Capital Lease Obligations | 324,978 | 325,265 |
6.81% notes due 2028 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 15,000 | 15,000 |
6.81% notes due 2028 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 15,000 | 15,000 |
6.59% notes due 2029 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
6.59% notes due 2029 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
7.875% notes due 2030 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 20,000 | 20,000 |
7.875% notes due 2030 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 20,000 | 20,000 |
7.23% notes due 2031 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 50,000 | 50,000 |
7.23% notes due 2031 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 50,000 | 50,000 |
6.00% notes due 2041 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 62,000 | 62,000 |
6.00% notes due 2041 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 62,000 | 62,000 |
3.45% notes due 2029 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 15,000 | 15,000 |
3.45% notes due 2029 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 15,000 | 15,000 |
9.56% notes due 2031 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 28,000 | 28,000 |
9.56% notes due 2031 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 28,000 | 28,000 |
5.87% notes due 2028 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
5.87% notes due 2028 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
6.70% notes due 2019 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
6.70% notes due 2019 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
5.50% notes due 2026 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 7,730 | 7,730 |
5.50% notes due 2026 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 7,730 | 7,730 |
Tax-Exempt State Water Project due 2035 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 3,667 | 3,772 |
Tax-Exempt State Water Project due 2035 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 3,667 | 3,772 |
Variable Rate Obligation due 2018 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 0 | 18 |
Variable Rate Obligation due 2018 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 0 | 18 |
American Recovery and Reinvestment Act Obligation due 2033 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 3,581 | 3,745 |
American Recovery and Reinvestment Act Obligation due 2033 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 3,581 | 3,745 |
Common Stock [Member] | ||
Long-Term Debt | ||
Common shareholder’s equity | 253,689 | 250,124 |
Common Stock [Member] | GSWC | ||
Long-Term Debt | ||
Common shareholder’s equity | $ 292,412 | $ 242,181 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CAPITALIZATION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt and Capital Lease Obligations | $ 324,978 | $ 325,265 |
Total capitalization | $ 839,310 | $ 850,984 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares outstanding | 36,757,842 | 36,680,794 |
GSWC | ||
Debt and Capital Lease Obligations | $ 324,978 | $ 325,265 |
Total capitalization | $ 784,662 | $ 795,413 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares outstanding | 165 | 146 |
6.81% notes due 2028 | ||
Debt and Capital Lease Obligations | $ 15,000 | $ 15,000 |
Interest rate per annum (as a percent) | 6.81% | 6.81% |
6.81% notes due 2028 | GSWC | ||
Debt and Capital Lease Obligations | $ 15,000 | $ 15,000 |
Interest rate per annum (as a percent) | 6.81% | 6.81% |
6.59% notes due 2029 | ||
Debt and Capital Lease Obligations | $ 40,000 | $ 40,000 |
Interest rate per annum (as a percent) | 6.59% | 6.59% |
6.59% notes due 2029 | GSWC | ||
Debt and Capital Lease Obligations | $ 40,000 | $ 40,000 |
Interest rate per annum (as a percent) | 6.59% | 6.59% |
7.875% notes due 2030 | ||
Debt and Capital Lease Obligations | $ 20,000 | $ 20,000 |
Interest rate per annum (as a percent) | 7.875% | 7.875% |
7.875% notes due 2030 | GSWC | ||
Debt and Capital Lease Obligations | $ 20,000 | $ 20,000 |
Interest rate per annum (as a percent) | 7.875% | 7.875% |
7.23% notes due 2031 | ||
Debt and Capital Lease Obligations | $ 50,000 | $ 50,000 |
Interest rate per annum (as a percent) | 7.23% | 7.23% |
7.23% notes due 2031 | GSWC | ||
Debt and Capital Lease Obligations | $ 50,000 | $ 50,000 |
Interest rate per annum (as a percent) | 7.23% | 7.23% |
6.00% notes due 2041 | ||
Debt and Capital Lease Obligations | $ 62,000 | $ 62,000 |
Interest rate per annum (as a percent) | 6.00% | 6.00% |
6.00% notes due 2041 | GSWC | ||
Debt and Capital Lease Obligations | $ 62,000 | $ 62,000 |
Interest rate per annum (as a percent) | 6.00% | 6.00% |
3.45% notes due 2029 | ||
Debt and Capital Lease Obligations | $ 15,000 | $ 15,000 |
Interest rate per annum (as a percent) | 3.45% | 3.45% |
3.45% notes due 2029 | GSWC | ||
Debt and Capital Lease Obligations | $ 15,000 | $ 15,000 |
Interest rate per annum (as a percent) | 3.45% | 3.45% |
9.56% notes due 2031 | ||
Debt and Capital Lease Obligations | $ 28,000 | $ 28,000 |
Interest rate per annum (as a percent) | 9.56% | 9.56% |
9.56% notes due 2031 | GSWC | ||
Debt and Capital Lease Obligations | $ 28,000 | $ 28,000 |
Interest rate per annum (as a percent) | 9.56% | 9.56% |
5.87% notes due 2028 | ||
Debt and Capital Lease Obligations | $ 40,000 | $ 40,000 |
Interest rate per annum (as a percent) | 5.87% | 5.87% |
5.87% notes due 2028 | GSWC | ||
Debt and Capital Lease Obligations | $ 40,000 | $ 40,000 |
Interest rate per annum (as a percent) | 5.87% | 5.87% |
6.70% notes due 2019 | ||
Debt and Capital Lease Obligations | $ 40,000 | $ 40,000 |
Interest rate per annum (as a percent) | 6.70% | 6.70% |
6.70% notes due 2019 | GSWC | ||
Debt and Capital Lease Obligations | $ 40,000 | $ 40,000 |
Interest rate per annum (as a percent) | 6.70% | 6.70% |
5.50% notes due 2026 | ||
Debt and Capital Lease Obligations | $ 7,730 | $ 7,730 |
Interest rate per annum (as a percent) | 5.50% | 5.50% |
5.50% notes due 2026 | GSWC | ||
Debt and Capital Lease Obligations | $ 7,730 | $ 7,730 |
Interest rate per annum (as a percent) | 5.50% | 5.50% |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Operating Revenues | ||||
Water | $ 295,258 | $ 306,332 | $ 302,931 | |
Electric | 34,350 | 33,969 | 35,771 | |
Contracted services | 107,208 | 100,302 | 97,385 | |
Total operating revenues | 436,816 | 440,603 | 436,087 | |
Operating Expenses | ||||
Water purchased | 68,904 | 68,302 | 64,442 | |
Power purchased for pumping | 8,971 | 8,518 | 8,663 | |
Groundwater production assessment | 19,440 | 18,638 | 14,993 | |
Power purchased for resale | 11,590 | 10,720 | 10,387 | |
Supply cost balancing accounts | (15,649) | (17,939) | (12,206) | |
Other operation | 31,650 | 29,994 | 28,257 | |
Administrative and general | 82,595 | 81,643 | 81,518 | |
Depreciation and amortization | [1] | 40,425 | 39,031 | 38,850 |
Maintenance | 15,682 | 15,176 | 16,470 | |
Property and other taxes | 18,404 | 17,905 | 16,801 | |
ASUS construction | 53,906 | 49,838 | 53,720 | |
Gain on sale of assets | (85) | (8,318) | 0 | |
Total operating expenses | 335,833 | 313,508 | 321,895 | |
Operating Income | 100,983 | 127,095 | 114,192 | |
Other Income and Expenses | ||||
Interest expense | (23,433) | (22,582) | (21,992) | |
Interest income | 3,578 | 1,790 | 757 | |
Other, net | 760 | 2,038 | 1,521 | |
Total other income and expenses | (19,095) | (18,754) | (19,714) | |
Income before income tax expense | 81,888 | 108,341 | 94,478 | |
Income tax expense | 18,017 | 38,974 | 34,735 | |
Net Income | $ 63,871 | $ 69,367 | $ 59,743 | |
Basic Earnings Per Common Share | ||||
Earnings Per Share, Basic | $ 1.73 | $ 1.88 | $ 1.63 | |
Fully Diluted Earnings Per Share | ||||
Earnings Per Share, Diluted | $ 1.72 | $ 1.88 | $ 1.62 | |
Weighted Average Number of Shares Outstanding (in shares) | 36,733 | 36,638 | 36,552 | |
Weighted Average Number of Diluted Shares (in shares) | 36,936 | 36,844 | 36,750 | |
Dividends Declared Per Common Share (in dollars per share) | $ 1.06 | $ 0.994 | $ 0.914 | |
GSWC | ||||
Operating Revenues | ||||
Water | $ 295,258 | $ 306,332 | $ 302,931 | |
Electric | 34,350 | 33,969 | 35,771 | |
Total operating revenues | 329,608 | 340,301 | 338,702 | |
Operating Expenses | ||||
Water purchased | 68,904 | 68,302 | 64,442 | |
Power purchased for pumping | 8,971 | 8,518 | 8,663 | |
Groundwater production assessment | 19,440 | 18,638 | 14,993 | |
Power purchased for resale | 11,590 | 10,720 | 10,387 | |
Supply cost balancing accounts | (15,649) | (17,939) | (12,206) | |
Other operation | 25,334 | 24,877 | 24,771 | |
Administrative and general | 62,156 | 62,408 | 64,698 | |
Depreciation and amortization | 38,395 | 37,852 | 37,804 | |
Maintenance | 13,104 | 12,970 | 14,519 | |
Property and other taxes | 16,809 | 16,402 | 15,444 | |
Gain on sale of assets | (8) | (8,318) | 0 | |
Total operating expenses | 249,046 | 234,430 | 243,515 | |
Operating Income | 80,562 | 105,871 | 95,187 | |
Other Income and Expenses | ||||
Interest expense | (22,621) | (22,055) | (21,782) | |
Interest income | 2,890 | 1,766 | 749 | |
Other, net | 784 | 2,234 | 1,424 | |
Total other income and expenses | (18,947) | (18,055) | (19,609) | |
Income before income tax expense | 61,615 | 87,816 | 75,578 | |
Income tax expense | 13,603 | 34,059 | 28,609 | |
Net Income | $ 48,012 | $ 53,757 | $ 46,969 | |
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CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN COMMON SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | GSWC | Common Stock [Member] | Common Stock [Member]GSWC | Earnings Reinvested in the Business | Earnings Reinvested in the BusinessGSWC |
Balances at Dec. 31, 2015 | $ 465,945 | $ 423,730 | $ 245,022 | $ 238,795 | $ 220,923 | $ 184,935 |
Balances (in shares) at Dec. 31, 2015 | 36,502,000 | 146 | ||||
Balances (in shares) at Dec. 31, 2016 | 36,571,000 | 146 | ||||
Add: | ||||||
Net Income | 59,743 | 46,969 | 59,743 | 46,969 | ||
Exercise of stock options and other issuance of Common Shares | $ 235 | $ 235 | ||||
Issuance of Common Shares (in shares) | 56,900 | 69,000 | ||||
Tax benefit from employee stock-based awards | $ 581 | 501 | $ 581 | $ 501 | ||
Compensation on stock-based awards | 1,201 | 1,020 | 1,201 | 1,020 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 193 | 166 | 193 | 166 | ||
Deduct: | ||||||
Dividends on Common Shares | 33,408 | 25,450 | 33,408 | 25,450 | ||
Dividend equivalent rights on stock-based awards | 193 | 166 | 193 | 166 | ||
Balances at Dec. 31, 2016 | 494,297 | 446,770 | $ 247,232 | $ 240,482 | 247,065 | 206,288 |
Balances (in shares) at Dec. 31, 2017 | 36,681,000 | 146 | ||||
Add: | ||||||
Net Income | 69,367 | 53,757 | 69,367 | 53,757 | ||
Exercise of stock options and other issuance of Common Shares | $ 909 | $ 909 | ||||
Issuance of Common Shares (in shares) | 56,498 | 110,000 | ||||
Compensation on stock-based awards | $ 1,789 | 1,527 | $ 1,789 | $ 1,527 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 194 | 172 | 194 | 172 | ||
Deduct: | ||||||
Dividends on Common Shares | 36,417 | 27,680 | 36,417 | 27,680 | ||
Dividend equivalent rights on stock-based awards | 194 | 172 | 194 | 172 | ||
Balances at Dec. 31, 2017 | 529,945 | 474,374 | $ 250,124 | $ 242,181 | 279,821 | 232,193 |
Balances (in shares) at Dec. 31, 2018 | 36,758,000 | 165 | ||||
Add: | ||||||
Net Income | 63,871 | 48,012 | 48,012 | |||
Exercise of stock options and other issuance of Common Shares | $ 546 | $ 546 | ||||
Issuance of Common Shares (in shares) | 44,906 | 77,000 | 19 | |||
Compensation on stock-based awards | $ 2,798 | 2,539 | $ 2,798 | $ 2,539 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 221 | 192 | 221 | 192 | ||
Deduct: | ||||||
Dividends on Common Shares | 38,937 | 68,850 | 38,937 | 68,850 | ||
Dividend equivalent rights on stock-based awards | 221 | 192 | 221 | 192 | ||
Balances at Dec. 31, 2018 | $ 558,223 | $ 503,575 | $ 253,689 | $ 292,412 | $ 304,534 | $ 211,163 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Operating Activities: | |||
Net Income | $ 63,871 | $ 69,367 | $ 59,743 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 40,663 | 39,273 | 39,109 |
Provision for doubtful accounts | 841 | 989 | 619 |
Deferred income taxes and investment tax credits | (5,773) | 12,153 | 27,640 |
Stock-based compensation expense | 3,851 | 2,885 | 2,538 |
Gain on sale of assets | (85) | (8,318) | 0 |
Other - net | 655 | (1,525) | (397) |
Changes in assets and liabilities: | |||
Accounts receivable - customers | 1,882 | (7,671) | (1,750) |
Unbilled revenue-receivable | 2,823 | (2,020) | (4,901) |
Other accounts receivable | 5,151 | (1,671) | (1,233) |
Receivable from the U.S. government | 20,976 | (4,742) | 2,606 |
Materials and supplies | (980) | (501) | 1,121 |
Prepayments and other assets | (519) | (1,641) | 2,239 |
Contract Assets | 5,941 | 0 | 0 |
Costs and estimated earnings in excess of billings on contracts | 0 | 2,881 | 10,433 |
Regulatory Assets / Liabilities | 33,834 | 24,626 | (5,610) |
Accounts payable | 1,282 | 4,358 | (3,442) |
Income taxes receivable / payable | 2,708 | 13,206 | (6,993) |
Accrued pension and other post-retirement benefits | (1,086) | (878) | (289) |
Contract liabilities/Billing in Excess of Cost of Earnings | 3,619 | 1,648 | (1,501) |
Other liabilities | (928) | (1,589) | 3,095 |
Net Cash Provided by (Used in) Operating Activities | 136,774 | 144,552 | 96,949 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (126,561) | (113,126) | (129,867) |
Proceeds from sale of assets | 72 | 34,324 | 0 |
Other investments | (1,553) | (1,229) | (1,354) |
Net Cash Provided by (Used in) Investing Activities | (128,042) | (80,031) | (131,221) |
Cash Flows From Financing Activities: | |||
Proceeds from stock option exercises | 546 | 909 | 235 |
Tax benefits from stock-based awards | 0 | 0 | 581 |
Receipt of advances for and contributions in aid of construction | 5,551 | 7,275 | 6,660 |
Refunds on advances for construction | 3,886 | 3,889 | 3,921 |
Retirement or repayments of long-term debt | 326 | 329 | 313 |
Net change in notes payable to banks | (36,500) | 31,000 | (62,000) |
Dividends paid | (38,937) | (36,417) | (33,408) |
Other | (1,253) | (1,292) | (1,490) |
Net Cash Provided by (Used in) Financing Activities | (1,805) | (64,743) | 30,344 |
Net increase (decrease) in cash and cash equivalents | 6,927 | (222) | (3,928) |
Cash and cash equivalents, beginning of year | 214 | 436 | 4,364 |
Cash and cash equivalents, end of year | 7,141 | 214 | 436 |
GSWC | |||
Cash Flows From Operating Activities: | |||
Net Income | 48,012 | 53,757 | 46,969 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 38,633 | 38,094 | 38,063 |
Provision for doubtful accounts | 850 | 816 | 627 |
Deferred income taxes and investment tax credits | (6,817) | 13,970 | 28,099 |
Stock-based compensation expense | 3,397 | 2,420 | 2,118 |
Gain on sale of assets | (8) | (8,318) | 0 |
Other - net | 585 | (1,613) | (352) |
Changes in assets and liabilities: | |||
Accounts receivable - customers | 1,882 | (7,671) | (1,750) |
Unbilled revenue-receivable | 960 | (1,152) | 481 |
Other accounts receivable | 4,140 | (544) | (896) |
Materials and supplies | (751) | (322) | 1,136 |
Prepayments and other assets | (154) | (1,450) | 2,114 |
Regulatory Assets / Liabilities | 33,834 | 24,626 | (5,610) |
Accounts payable | (1,907) | 4,927 | (1,514) |
Inter-company receivable / payable | (47) | (390) | 280 |
Income taxes receivable / payable | 973 | 15,266 | (10,856) |
Accrued pension and other post-retirement benefits | (1,086) | (878) | (289) |
Other liabilities | (2,057) | (1,930) | 2,666 |
Net Cash Provided by (Used in) Operating Activities | 120,439 | 129,608 | 101,286 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (116,354) | (110,487) | (127,913) |
Proceeds from sale of assets | 9 | 34,324 | 0 |
Other investments | (1,553) | (1,229) | (1,389) |
Net Cash Provided by (Used in) Investing Activities | (117,898) | (77,392) | (129,302) |
Cash Flows From Financing Activities: | |||
Proceeds from Issuance of Common Shares to Parent | 47,500 | 0 | 0 |
Tax benefits from stock-based awards | 0 | 0 | 501 |
Receipt of advances for and contributions in aid of construction | 5,551 | 7,275 | 6,660 |
Refunds on advances for construction | 3,886 | 3,889 | 3,921 |
Retirement or repayments of long-term debt | 326 | 329 | 313 |
Net change in inter-company borrowings | (22,500) | 26,500 | (49,500) |
Dividends paid | (68,850) | (27,680) | (25,450) |
Other | (1,057) | (1,088) | (1,253) |
Net Cash Provided by (Used in) Financing Activities | 1,432 | (52,211) | 25,724 |
Net increase (decrease) in cash and cash equivalents | 3,973 | 5 | (2,292) |
Cash and cash equivalents, beginning of year | 214 | 209 | 2,501 |
Cash and cash equivalents, end of year | $ 4,187 | $ 214 | $ 209 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 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 wholly owned subsidiaries, Fort Bliss Water Services Company (“FBWS”), Terrapin Utility Services, Inc. (“TUS”), Old Dominion Utility Services, Inc. (“ODUS”), Palmetto State Utility Services, Inc. (“PSUS”), Old North Utility Services, Inc. (“ONUS”), Emerald Coast Utility Services, Inc. (“ECUS”), and Fort Riley Utility Services, Inc. ("FRUS")). AWR and its subsidiaries may be collectively referred to as “Registrant” or “the Company.” The subsidiaries of ASUS are collectively referred to 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 260,000 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 nearly 90% of total water revenues in 2018 , 2017 and 2016 . The California Public Utilities Commission (“CPUC”) regulates GSWC’s water and electric businesses in matters including properties, rates, services, facilities, and transactions by GSWC with its affiliates. In December 2018, GSWC filed an application with the CPUC to effectuate a reorganization plan that would transfer BVES from a division of GSWC to Bear Valley Electric Service, Inc., a newly created separate legal entity and stand-alone subsidiary of AWR. This reorganization plan is subject to CPUC approval and, if approved, is not expected to result in a substantive change to Registrant's operations and business segments. ASUS, through its Military Utility Privatization Subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various U.S. military bases pursuant to 50 -year firm fixed-price contracts. These contracts are subject to annual economic price adjustments and modifications for changes in circumstances, changes in laws and regulations and additions to the contract value for new construction of facilities at the military bases. On July 1, 2018, ASUS assumed the operation, maintenance and construction management of the water distribution and wastewater collection and treatment facilities at Fort Riley, a United States Army installation located in Kansas, after completing a transition period. The 50 -year contract was awarded by the U.S. government in September 2017 and is subject to annual economic price adjustments. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or the Military Utility Privatization Subsidiaries. Basis of Presentation : The consolidated financial statements and notes thereto are presented in a combined report filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. Certain prior period amounts have been reclassified on the income statements to conform to the current-period presentation. AWR owns all of the outstanding Common Shares of GSWC and ASUS. ASUS owns all of the outstanding Common shares of the Military Utility Privatization Subsidiaries. The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Intercompany transactions and balances have been eliminated in the AWR consolidated financial statements. Related-Party Transactions : GSWC and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC also allocates certain corporate office administrative and general costs to its affiliate, ASUS, using allocation factors approved by the CPUC. During the years ended December 31, 2018 , 2017 and 2016 , GSWC allocated to ASUS approximately $4.2 million , $4.0 million and $3.9 million , respectively, of corporate office administrative and general costs. In addition, AWR has a $150.0 million credit facility, which expires in May 2023. AWR borrows under this facility and provides funds to its subsidiaries, including GSWC, in support of their operations. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest cost under the credit facility. Amounts owed to GSWC by AWR, including for allocated expenses, are included in GSWC's intercompany receivables as of December 31, 2018 and 2017 . The CPUC requires GSWC to completely pay down all intercompany borrowings from AWR within a 24 -month period. In November 2018, the Board of Directors approved the issuance of nineteen additional GSWC Common Shares to AWR for $47.5 million. On November 30, 2018, GSWC used the proceeds from this stock issuance to pay down its intercompany borrowings owed to AWR. The next 24 -month period in which GSWC is required to completely pay down its intercompany borrowings will be at the end of November 2020. As a result, GSWC’s intercompany borrowings of $57.3 million as of December 31, 2018 have been classified as a long-term liability on GSWC’s balance sheet. GSWC Long-Term Debt: In March of 2019, $40 million of GSWC's 6.70% senior note will mature. This note has been included in "Current Liabilities" in Registrant's balance sheets as of December 31, 2018 . GSWC intends to borrow under its intercompany borrowing arrangement with AWR to fund the repayment of this note. Utility Accounting : Registrant’s accounting policies conform to accounting principles generally accepted in the United States of America ("U.S. GAAP"), including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the CPUC and the Federal Energy Regulatory Commission. GSWC has incurred various costs and received various credits reflected as regulatory assets and liabilities. Accounting for such costs and credits as regulatory assets and liabilities is in accordance with the guidance for accounting for the effects of certain types of regulation. This guidance sets forth the application of U.S. GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. Under such accounting guidance, rate-regulated entities defer costs and credits on the balance sheet as regulatory assets and liabilities when it is probable that those costs and credits will be recognized in the ratemaking process in a period different from the period in which they would have been reflected in income by an unregulated company. These regulatory assets and liabilities are then recognized in the income statement in the period in which the same amounts are reflected in the rates charged for service. The amounts included as regulatory assets and liabilities that will be collected or refunded over a period exceeding one year are classified as long-term assets and liabilities as of December 31, 2018 and 2017 . Property and Depreciation : Registrant's property consists primarily of regulated utility plant at GSWC. GSWC capitalizes, as utility plant, the cost of construction and the cost of additions, betterments and replacements of retired units of property. Such cost includes labor, material and certain indirect charges. Water systems acquired are recorded at estimated original cost of utility plant when first devoted to utility service and the applicable depreciation is recorded to accumulated depreciation. The difference between the estimated original cost, less accumulated depreciation, and the purchase price, if recognized by the regulator, is recorded as an acquisition adjustment within utility plant. Depreciation is computed on the straight-line, remaining-life basis, group method, in accordance with the applicable ratemaking process. GSWC's provision for depreciation expressed as a percentage of the aggregate depreciable asset balances was 2.7% for 2018 , 2.6% for 2017 , and 2.9% for 2016 . Depreciation expense for GSWC, excluding amortization expense and depreciation on transportation equipment, totaled $37.3 million , $36.5 million and $36.1 million for the years ended December 31, 2018 , 2017 and 2016 . Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $238,000 , $242,000 and $259,000 for the years ended December 31, 2018 , 2017 and 2016 , respectively. Expenditures for maintenance and repairs are expensed as incurred. Replaced or retired property costs, including cost of removal, are charged to the accumulated provision for depreciation. Estimated useful lives of GSWC’s utility plant, as authorized by the CPUC, are as follows: Source of water supply 30 years to 50 years Pumping 25 years to 40 years Water treatment 20 years to 35 years Transmission and distribution 25 years to 55 years Generation 40 years Other plant 7 years to 40 years Non-regulated property consists primarily of equipment utilized by ASUS and its subsidiaries for its operations. This property is stated at cost, net of accumulated depreciation, which is calculated using the straight-line method over the useful lives of the assets. Asset Retirement Obligations : GSWC has a legal obligation for the retirement of its wells, which by law need to be properly capped at the time of removal. As such, GSWC incurs asset retirement obligations. GSWC records the fair value of a liability for these asset retirement obligations in the period in which they are incurred. When the liability is initially recorded, GSWC capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, GSWC either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. Retirement costs have historically been recovered through rates subsequent to the retirement costs being incurred. Accordingly, recoverability of GSWC’s asset retirement obligations are reflected as a regulatory asset. GSWC also reflects the loss or gain at settlement as a regulatory asset or liability on the balance sheet. With regards to removal costs associated with certain other long-lived assets, such as water mains, distribution and transmission assets, asset retirement obligations have not been recognized as GSWC believes there is no legal obligation to do so. There are no CPUC rules or regulations that require GSWC to remove any of its other long-lived assets. In addition, GSWC’s water pipelines are not subject to regulation by any federal regulatory agency. GSWC has franchise agreements with various municipalities in order to use the public right of way for utility purposes (i.e., operate water distribution and transmission assets), and if certain events occur in the future, GSWC could be required to remove or relocate certain of its pipelines. However, it is not possible to estimate an asset retirement amount since the timing and the amount of assets that may be required to be removed, if any, is not known. Amounts recorded for asset retirement obligations are subject to various assumptions and determinations, such as determining whether a legal obligation exists to remove assets, estimating the fair value of the costs of removal, when final removal will occur and the credit-adjusted risk-free interest rates to be utilized on discounting future liabilities. Changes that may arise over time with regard to these assumptions will change amounts recorded in the future. Revisions in estimates for timing or estimated cash flows are recognized as changes in the carrying amount of the liability and the related capitalized asset. The estimated fair value of the costs of removal was based on third-party costs. Impairment of Long-Lived Assets : Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable in accordance with accounting guidance for impairment or disposal of long-lived assets. Registrant would recognize an impairment loss on its regulated assets only if the carrying value amount of a long-lived asset is not recoverable from customer rates authorized by the CPUC. Impairment loss is measured as the excess of the carrying value over the amounts recovered in customer rates. For the years ended December 31, 2018 , 2017 and 2016 , no impairment loss was incurred. Goodwill : At December 31, 2018 and 2017 , AWR had approximately $1.1 million of goodwill. The $1.1 million goodwill arose from ASUS’s acquisition of a subcontractor’s business at some of the Military Utility Privatization Subsidiaries. In accordance with the accounting guidance for testing goodwill, AWR annually assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. For 2018 , AWR’s assessment of qualitative factors did not indicate that an impairment had occurred for goodwill at ASUS. Cash and Cash Equivalents : Cash and cash equivalents include short-term cash investments with an original maturity of three months or less. At times, cash and cash equivalent balances may be in excess of federally insured limits. Cash and cash equivalents are held with financial institutions with high credit standings. Accounts Receivable : Accounts receivable is reported on the balance sheet net of any allowance for doubtful accounts. The allowance for doubtful accounts is Registrant’s best estimate of the amount of probable credit losses in Registrant’s existing accounts receivable from its water and electric customers, and is determined based on historical write-off experience and the aging of account balances. Registrant reviews the allowance for doubtful accounts quarterly. Account balances are written off against the allowance when it is probable the receivable will not be recovered. When utility customers request extended payment terms, credit is extended based on regulatory guidelines, and collateral is not required. Receivables from the U.S. government include amounts due under contracts with the U.S. government to operate and maintain, and/or provide construction services for the water and/or wastewater systems at military bases. Other accounts receivable consist primarily of amounts due from third parties (non-utility customers) for various reasons, including amounts due from contractors, amounts due under settlement agreements, amounts due from other third-party prime government contractors pursuant to agreements for construction of water and/or wastewater facilities for such third-party prime contractors. The allowance for these other accounts receivable is based on Registrant’s evaluation of the receivable portfolio under current conditions and a review of specific problems and such other factors that, in Registrant’s judgment, should be considered in estimating losses. Allowances for doubtful accounts are disclosed in Note 17. Materials and Supplies : Materials and supplies are stated at the lower of cost or net realizable value. Cost is computed using average cost. Major classes of materials include pipe, hydrants and valves. Interest : Interest incurred during the construction of capital assets has generally not been capitalized for financial reporting purposes as such policy is not followed in the ratemaking process. Interest expense is generally recovered through the regulatory process. However, the CPUC has authorized certain capital projects to be filed for revenue recovery with advice letters when those projects are completed. During the time that such projects are under development and construction, GSWC may accrue an allowance for funds used during construction (“AFUDC”) on the incurred expenditures to offset the cost of financing project construction. For the year ended December 31, 2018 , $156,000 of AFUDC was recorded. For the year ended December 31, 2017 , no AFUDC was recorded and for the year ended December 31, 2016 , $101,000 , of AFUDC was recorded related to capital projects based on a weighted cost of capital of 8.34% for water and a cost of debt of 6.96% for electric, as approved by the CPUC. Debt Issuance Costs and Redemption Premiums : Original debt issuance costs are deducted from the carrying value of the associated debt liability and amortized over the lives of the respective issues. Premiums paid on the early redemption of debt, which is reacquired through refunding, are deferred and amortized over the life of the debt issued to finance the refunding as Registrant normally receives recovery of these costs in rates. Advances for Construction and Contributions in Aid of Construction : Advances for construction represent amounts advanced by developers for the cost to construct water system facilities in order to extend water service to their properties. Advances are refundable in equal annual installments, generally over 40 years . In certain instances, GSWC makes refunds on these advances over a specific period of time based on operating revenues related to the main or as new customers are connected to receive service from the main. Contributions in aid of construction are similar to advances but require no refunding. Generally, GSWC depreciates contributed property and amortizes contributions in aid of construction at the composite rate of the related property. Utility plant funded by advances and contributions is excluded from rate base. 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. The table below estimates the fair value of long-term debt issued by GSWC. Rates available to GSWC at December 31, 2018 and 2017 for debt with similar terms and remaining maturities were used to estimate fair value for long-term debt. Changes in the assumptions will produce differing results. 2018 2017 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—GSWC (1) $ 324,978 $ 387,889 $ 325,265 $ 424,042 (1) Excludes debt issuance costs and redemption premiums. 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). Publicly issued notes, private placement notes and other long-term debt are measured using current U.S. corporate bond yields for similar debt instruments and are classified as Level 2. The following table sets forth by level, within the fair value hierarchy, GSWC’s long-term debt measured at fair value as of December 31, 2018 : (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—GSWC — $ 387,889 — $ 387,889 Stock-Based Awards : AWR has issued stock-based awards to its employees under stock incentive plans. AWR has also issued stock-based awards to its Board of Directors under non-employee directors stock plans. Registrant applies the provisions in the accounting guidance for share-based payments in accounting for all of its stock-based awards. See Note 13 for further discussion. Recently Issued Accounting Pronouncements : Accounting Pronouncements Adopted in 2018 In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) . Under this guidance, an entity recognizes revenue when it transfers goods or services to customers in an amount that reflects what the entity expects in exchange for the goods or services. Registrant adopted this guidance under the modified retrospective approach beginning January 1, 2018. The adoption of this guidance did not have a material impact on Registrant's measurement or timing of revenue recognition but required additional disclosures (see Note 2). In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which changes the financial statement presentation for the costs of defined benefit pension plans and other retirement benefits. Prior to this guidance, the components of net benefit cost for retirement plans (such as service cost, interest cost, expected return on assets, and the amortization of prior service costs and actuarial gains and losses) were aggregated as operating costs for financial statement presentation purposes. Under the new guidance, the service cost component continues to be presented as operating costs, while all other components of net benefit cost are presented outside of operating income. The new guidance also limits any capitalization of net periodic benefits cost to the service cost component. Registrant adopted the new guidance beginning January 1, 2018, which did not have a material impact on its financial statements. Prior period amounts have been reclassified on the income statements to conform to the current-period presentation. Registrant used its prior year's disclosure of its pension and other employee benefit plans as an estimation for applying the retrospective presentation requirements of this guidance. The components of net periodic benefits cost, other than the service cost component, have been included in the line item “Other, net” in Registrant's income statements (see Note 12). In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash . The guidance requires restricted cash to be combined with cash and cash equivalents when reconciling the beginning and end of period cash balances in the statement of cash flows. The adoption of this new guidance in 2018 did not have an impact on Registrant's cash flow statements. In August 2016, the FASB also issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The adoption of this new guidance in 2018 did not have an impact on Registrant's cash flow statements. Accounting Pronouncements to be Adopted in Future Periods In February 2016, the FASB issued a new lease accounting standard, Leases (ASC 842), which replaces the prior lease guidance, (ASC 840). Under the new standard, lessees will recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). For income statement purposes, leases will be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. Registrant will apply the new standard on January 1, 2019 and any periods presented prior to January 1, 2019 will not be adjusted to conform to the new lease standard. Registrant examined all current agreements accounted for under ASC 840, as well as other agreements which were not recorded as leases under ASC 840, and applied the lease criteria under ASC 842 to assess whether these agreements qualify as leases under the new standard. Registrant elected the practical expedient under ASU 2018-01 Land Easement Practical Expedient for Transition to Topic 842 . The discount rates used to value the lease liabilities were based on Registrant's incremental borrowing rates for a similar term as the underlying leases' terms. Based on its current lease portfolio and the analysis of the new standard performed to-date, Registrant estimates an increase in consolidated assets and liabilities of less than $10 million, representing right-of-use assets and lease liabilities as a result of the adoption of ASC 842. In August 2018, the FASB issued ASU 2018-15-Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . Under this standard, entities that enter into cloud computing service arrangements will apply existing internal-use software guidance to determine which implementation costs are eligible for capitalization. Under that guidance, implementation costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred. The new guidance is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. Registrant will adopt this guidance effective January 1, 2019 and does not expect the adoption to have a significant impact on its financial statements. In August 2018, the FASB issued ASU 2018-14- Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans . This update removes disclosures to pension plans and other post-retirement benefit plans that no longer are considered cost beneficial, clarifies the specific disclosure requirements and adds disclosure requirements deemed relevant. The amendments in this ASU are effective for fiscal years ending after December 15, 2020 and will be applied on a retrospective basis to all periods presented. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenues Most of Registrant's revenues are accounted for under the revenue recognition accounting standard, "Revenue from Contracts with Customers - (Topic 606)." The adoption of this accounting standard effective January 1, 2018 did not have a material impact on Registrant's measurement or timing of revenue recognition. GSWC provides water and electric utility services to customers as specified by the CPUC. The transaction prices for water and electric revenues are based on tariff rates authorized by the CPUC, which include both quantity-based and flat-rate charges. Tariff revenues represent the adopted revenue requirement authorized by the CPUC intended to provide GSWC with an opportunity to recover its costs and earn a reasonable return on its net capital investment. The annual revenue requirements are comprised of operation and maintenance costs, administrative and general costs, depreciation and taxes in amounts authorized by the CPUC and a return on rate base consistent with the capital structure authorized by the CPUC. Water and electric revenues are recognized over time as customers simultaneously receive and use the utility services provided. Water and electric revenues include amounts billed to customers on a cyclical basis, nearly all of which are based on meter readings for services provided. Customer bills also include surcharges for cost-recovery activities, which represent CPUC-authorized balancing and memorandum accounts that allow for the recovery of previously incurred operating costs. Revenues from these surcharges result in no impact to earnings as they are offset by corresponding increases in operating expenses to reflect the recovery of the associated costs. Customer payment terms are approximately 20 business days from the billing date. Unbilled revenues are amounts estimated to be billed for usage since the last meter-reading date to the end of the accounting period. Historical customer usage forms the basis for estimating unbilled revenue. 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 and counties (based on their ordinances) in order to use public rights of way for utility purposes. GSWC bills these franchise fees to its customers based on a CPUC-authorized rate for each ratemaking area as applicable. These franchise fees, which are required to be paid regardless of GSWC’s ability to collect them from its customers, are accounted for on a gross basis. GSWC’s franchise fees billed to customers and recorded as operating revenue were approximately $3.6 million , $3.6 million and $3.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. When GSWC acts as an agent, and a tax is not required to be remitted if it is not collected from customers, the tax is accounted for on a net basis. As authorized by the CPUC, GSWC records in revenues the difference between the adopted level of volumetric revenues as authorized by the CPUC for metered accounts (volumetric revenues) and the actual volumetric revenues recovered in customer rates. The difference is tracked under the Water Revenue Adjustment Mechanism (“WRAM”) regulatory accounts for its water segment, and the Base Revenue Requirement Adjustment Mechanism ("BRRAM") regulatory account for its electric segment. If this difference results in an under-collection of revenues, GSWC records the additional revenue only to the extent that they are expected to be collected within 24 months following the year in which they are recorded in accordance with Accounting Standards Codification ("ASC") Topic 980, Regulated Operations . For ASUS, performance obligations consist of (i) performing ongoing operation and maintenance of the water and/or wastewater systems and treatment plants for each military base served, and (ii) performing construction activities (including renewal and replacement capital work) on each military base served. The transaction price for each performance obligation is either delineated in, or initially derived from, the applicable 50 -year contract and/or any subsequent contract modifications. Depending on the state in which operations are conducted, the Military Utility Privatization Subsidiaries are also subject to certain state non-income tax assessments, which are accounted for on a gross basis and have been immaterial to date. The ongoing performance of operation and maintenance of the water and/or wastewater systems and treatment plants is viewed as a single performance obligation for each 50 -year contract with the U.S. government. Registrant recognizes revenue for operations and maintenance fees monthly using the "right to invoice" practical expedient under ASC Topic 606. ASUS has a right to consideration from the U.S. government in an amount that corresponds directly to the value to the U.S. government of ASUS’s performance completed to-date. The contractual operations and maintenance fees are firm-fixed, and the level of effort or resources expended in the performance of the operations-and-maintenance-fees performance obligation is largely consistent over the 50 -year term. Therefore, Registrant has determined that the monthly amounts invoiced for operations and maintenance performance are a fair reflection of the value transferred to the U.S. government. Invoices to the U.S. government for operations and maintenance service, as well as construction activities, are due upon receipt. ASUS's construction activities consist of various projects to be performed. Each of these projects' transaction prices is delineated either in the 50 -year contract or through a specific contract modification for each construction project, which includes the transaction price for that project. Each construction project is viewed as a separate, single performance obligation. Therefore, it is generally unnecessary to allocate a construction transaction price to more than one construction performance obligation. Revenues for construction activities are recognized over time, with progress toward completion measured based on the input method using costs incurred relative to the total estimated costs (cost-to-cost method). Due to the nature of these construction projects, Registrant has determined the cost-to-cost input measurement to be the best method to measure progress towards satisfying its construction contract performance obligations, as compared to using an output measurement such as units produced. Changes in job performance, job site conditions, change orders and/or estimated profitability may result in revisions to costs and income for ASUS, and are recognized in the period in which any such revisions are determined. Pre-contract costs for ASUS, which consist of design and engineering labor costs, are deferred if recovery is probable, and are expensed as incurred if recovery is not probable. Deferred pre-contract costs have been immaterial to date. Contracted services revenues recognized during the year ended December 31, 2018 from performance obligations satisfied in previous periods were not material. Although GSWC has a diversified base of residential, commercial, industrial and other customers, revenues derived from residential and commercial customers account for nearly 90% of total water revenues, and 90% of total electric revenues. For the year ended December 31, 2018, disaggregated revenues from contracts with customers by segment are as follows: (dollar in thousands) For The Year Ended December 31, 2018 Water: Tariff-based revenues $ 298,818 CPUC-approved surcharges (cost-recovery activities) 2,962 Other 1,813 Water revenues from contracts with customers 303,593 WRAM over-collection (alternative revenue program) (8,335 ) Total water revenues 295,258 Electric: Tariff-based revenues 34,501 CPUC-approved surcharges (cost-recovery activities) 214 Electric revenues from contracts with customers 34,715 BRRAM over-collection (alternative revenue program) (365 ) Total electric revenues 34,350 Contracted services: Water 62,273 Wastewater 44,935 Contracted services revenues from contracts with customers 107,208 Total revenues $ 436,816 The opening and closing balances of the receivable from the U.S. government, contract assets and contract liabilities from contracts with customers, which related entirely to ASUS, are as follows: (dollar in thousands) December 31, 2018 January 1, 2018 Receivable from the U.S. government $ 61,126 $ 40,150 Contract assets $ 24,447 $ 30,388 Contract liabilities $ 7,530 $ 3,911 As a result of the adoption of ASC Topic 606, amounts previously reported under "Costs and estimated earnings in excess of billings on contracts" are now reflected as either "Receivable from U.S. government" or "Contract assets," depending on whether receipt of these amounts is conditional on something other than the passage of time. Amounts previously reported under "Billings in excess of costs and estimated earnings on contracts" are now reflected as "Contract liabilities." Contract Assets - Contract assets are those of ASUS and consist of unbilled revenues recognized from work-in-progress construction projects where the right to payment is conditional on something other than the passage of time. The classification of this asset as current or noncurrent is based on the timing of when ASUS expects to bill these amounts. Contract Liabilities - Contract liabilities are those of ASUS and consist of billings in excess of revenue recognized. The classification of this liability as current or noncurrent is based on the timing of when ASUS expects to recognize revenue. Revenues for the year ended December 31, 2018 that were included in contract liabilities at the beginning of the period were $3.7 million . As of December 31, 2018, Registrant's aggregate remaining performance obligations, all of which are for the contracted services segment, was $3.2 billion. Registrant expects to recognize revenue on these remaining performance obligations over the remaining terms of each of the 50 -year contracts, which range from 36 to 50 years. Each of the contracts with the U.S. government is subject to termination, in whole or in part, prior to the end of its 50 -year term for the convenience of the U.S. government. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 , Registrant had approximately $56.3 million of regulatory liabilities, net of regulatory assets, not accruing carrying costs. Of this amount, (i) $81.5 million of regulatory liabilities relates to the creation of an excess deferred income tax liability brought about by a lower federal income tax rate as a result of the Tax Cuts and Jobs Act (see Note 11) that is expected to be refunded to customers, (ii) $15.3 million relates to flow-through deferred income taxes including the gross-up portion on the deferred tax resulting from the excess deferred income tax regulatory liability (also see Note 11), and (iii) $36.2 million of regulatory assets relates to the underfunded position in Registrant's pension and other post-retirement obligations (not including the two-way pension balancing accounts). 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 requires it to write down the asset's value. Regulatory assets are offset against regulatory liabilities within each rate-making area. Amounts expected to be collected or refunded in the next twelve months have been classified as current assets and current liabilities by rate-making area. Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: December 31, (dollars in thousands) 2018 2017 GSWC Water Revenue Adjustment Mechanism and Modified Cost Balancing Account $ 17,763 $ 29,556 Costs deferred for future recovery on Aerojet case 9,516 10,656 Pensions and other post-retirement obligations (Note 12) 33,124 33,019 Derivative unrealized loss (Note 5) 311 2,941 Low income rate assistance balancing accounts 2,784 5,972 General rate case memorandum accounts 5,054 10,522 Other regulatory assets 15,656 16,393 Excess deferred income taxes (Note 11) (81,465 ) (83,231 ) Flow-through taxes, net (Note 11) (15,273 ) (17,716 ) Tax Cuts and Jobs Act ("Tax Act") memorandum accounts (8,293 ) — Various refunds to customers (7,517 ) (6,070 ) Total $ (28,340 ) $ 2,042 Alternative-Revenue Programs: Under the WRAM, GSWC records the difference between the adopted level of volumetric revenues as authorized by the CPUC for metered accounts (adopted volumetric revenues) and the actual volumetric revenues recovered in customer rates. While the WRAM tracks volumetric-based revenues, the revenue requirements approved by the CPUC include service charges, flat rate charges, and other items that are not subject to the WRAM. The adopted volumetric revenues consider the seasonality of consumption of water based upon historical averages. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as a component of revenue with an offsetting entry to an asset or liability balancing account (tracked individually for each rate making area). The variance amount may be positive or negative and represents amounts that will be billed or refunded to customers in the future. The WRAM only applies to customer classes with conservation rates in place. The majority of GSWC’s water customers have conservation rate structures. Under the Modified Cost Balancing Account (“MCBA”), GSWC tracks adopted expense levels for purchased water, purchased power and pump taxes, as established by the CPUC. Variances (which include the effects of changes in both rate and volume) between adopted and actual purchased water, purchased power, and pump tax expenses are recorded as a component of the MCBA to be recovered from or refunded to GSWC’s customers at a later date. This is reflected with an offsetting entry to an asset or liability balancing account (tracked individually for each rate-making area). Unlike the WRAM, the MCBA applies to all customer classes. The recovery or refund of the WRAM is netted against the MCBA over- or under-collection for the corresponding rate-making area and bears interest at the current 90 -day commercial-paper rate. During the year ended December 31, 2018 , $21.2 million of pre-2018 WRAM/MCBA balances were recovered. During 2018 , GSWC recorded an additional $9.4 million net under-collection in the WRAM/MCBA. The majority of this balance represents an under-collection of supply costs incurred and recorded in the MCBA due to a higher volume of purchased water as compared to adopted. As of December 31, 2018 , GSWC had an aggregated regulatory asset of $17.8 million , which is comprised of a $3.8 million over-collection in the WRAM accounts and a $21.6 million under-collection in the MCBA accounts. GSWC is expected to file with the CPUC for recovery of the 2018 WRAM/MCBA balances in March 2019. As required by the accounting guidance for alternative revenue programs, GSWC is required to collect its WRAM balances within 24 months following the year in which an under-collection is recorded. As of December 31, 2018 , there were no WRAM under-collections that were estimated to be collected over more than 24 months. Costs Deferred for Future Recovery : The CPUC authorized a memorandum account to allow for the recovery of costs incurred by GSWC related to contamination lawsuits brought against Aerojet-General Corporation ("Aerojet") and the state of California. In July 2005, the CPUC authorized GSWC to recover approximately $21.3 million of the Aerojet litigation memorandum account, through a rate surcharge, which will continue for no longer than 20 years. Beginning in October 2005, a surcharge went into effect to begin amortizing the memorandum account over a 20 -year period. Aerojet also agreed to reimburse GSWC $17.5 million , plus interest accruing from January 1, 2004, for GSWC’s past legal and expert costs, which is included in the Aerojet litigation memorandum account. The reimbursement of the $17.5 million is contingent upon the issuance of land use approvals for development in a defined area within Aerojet property in Eastern Sacramento County and the receipt of certain fees in connection with such development. It is management’s intention to offset any proceeds from the housing development by Aerojet in this area against the balance in this litigation memorandum account. At this time, management believes the full balance of the Aerojet litigation memorandum account will be collected either from customers or Aerojet. Pensions and Other Post-retirement Obligations : A regulatory asset has been recorded at December 31, 2018 and 2017 for the costs that would otherwise be charged to “other comprehensive income” within shareholders’ equity for the underfunded status of Registrant’s pension and other post-retirement benefit plans because the cost of these plans has historically been recovered through rates. As discussed in Note 12, as of December 31, 2018 , Registrant’s underfunded position for these plans that have been recorded as a regulatory asset totaled $36.2 million . Registrant expects this regulatory asset to be recovered through rates in future periods. The CPUC has authorized GSWC to use two-way balancing accounts to track differences between the forecasted annual pension expenses adopted in both water and electric rates and the actual annual expense to be recorded by GSWC in accordance with the accounting guidance for pension costs. The two-way balancing accounts bear interest at the current 90 -day commercial paper rate. As of December 31, 2018 , GSWC has a net $3.0 million over-collection in the two-way pension balancing accounts, consisting of a $2.0 million over-collection related to the general office and water regions, and a $1.0 million over-collection related to BVES. Low Income Balancing Accounts : This regulatory asset reflects primarily the costs of implementing and administering the California Alternate Rates for Water program in GSWC’s water regions and the California Alternate Rate for Energy program in GSWC’s BVES division. These programs mandated by the CPUC currently provide a discount of a fixed dollar amount which is intended to represent a 15% discount based on a typical customer bill for qualified low-income water customers and 20% for qualified low-income electric customers. GSWC accrues interest on its low income balancing accounts at the prevailing rate for 90 -day commercial paper. As of December 31, 2018 , there is an aggregate $2.8 million under-collection in the low income balancing accounts. Surcharges have been implemented to recover the costs included in these balancing accounts. 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. On December 15, 2016, the CPUC issued a decision on GSWC's water general rate case, which set rates for the years 2016 - 2018. The rates approved by the CPUC were retroactive to January 1, 2016. As a result, as of December 31, 2016, GSWC added $9.5 million to the general rate case memorandum accounts representing the rate difference between interim rates and final rates authorized by the CPUC, retroactive to January 1, 2016. As of December 31, 2018 , there is a net aggregate $5.1 million under-collection in these accounts, primarily related to the revenue difference between interim rates and final rates authorized by the CPUC in the December 2016 decision. GSWC has implemented surcharges ranging from 12 - 36 months to collect the $5.1 million balance. Tax Cuts and Jobs Act ("Tax Act") Memorandum Accounts: On December 22, 2017, the Tax Act was signed into federal law. The provisions of this major tax reform were generally effective January 1, 2018. The most significant provisions of the Tax Act impacting GSWC are the reduction of the federal corporate income tax rate from 35% to 21% and the elimination of bonus depreciation for regulated utilities. Pursuant to a CPUC directive, the 2018 impact of the Tax Act on the water segment’s adopted revenue requirement was tracked in a memorandum account effective January 1, 2018. For the year ended December 31, 2018 , over-collections of approximately $7.1 million related to the water segment were tracked and recorded as a regulatory liability. On July 1, 2018, new lower water rates, which incorporate the new federal income tax rate, were implemented for all water ratemaking areas. GSWC expects to refund the $7.1 million to water customers beginning in 2019. Furthermore, in March 2018, GSWC filed updated testimony revising the revenue requirements to reflect the impacts of the Tax Act in its pending water general rate case that will set new rates for the years 2019 - 2021. The CPUC also ordered GSWC to update its pending electric general rate case filing, which will determine new electric rates for the years 2018 - 2021, to reflect the lower federal corporate income tax rate. As a result, for the year ended December 31, 2018 , GSWC reduced electric revenues by approximately $1.2 million , and recorded a corresponding regulatory liability that will be satisfied as part of implementing overall new rates from the electric general rate case retroactive to January 1, 2018 once the CPUC issues a final decision. Reductions in the water and electric revenue requirements resulting from the impacts of the Tax Act are largely offset by decreases in GSWC's income tax expense, resulting in no material impact to net earnings (see Note 11). Other Regulatory Assets: Other regulatory assets represent costs incurred by GSWC for which it has received or expects to receive rate recovery in the future. These regulatory assets are supported by regulatory rules and decisions, past practices, and other facts or circumstances that indicate recovery is probable. Other Regulatory Matters: Renewables Portfolio Standard: BVES is subject to the renewables portfolio standard (“RPS”) law, which requires BVES to meet certain targets for purchases of energy from qualified renewable energy resources. In December 2012, GSWC entered into a ten-year agreement with a third party to purchase renewable energy credits (“RECs”) whereby GSWC agreed to purchase approximately 578,000 RECs over a 10 -year period, which would be used towards meeting California's RPS requirements. As of December 31, 2018 , GSWC believes it has purchased sufficient RECs to be in compliance for all periods through 2018 . Accordingly, no provision for loss or potential penalties has been recorded in the financial statements as of December 31, 2018 . GSWC intends to file its 2018 compliance report with the CPUC by the August 2019 deadline. The cost of these RECs has been included as part of the electric supply cost balancing account as of December 31, 2018 . In September 2018, the Governor of California signed a senate bill into law requiring, among other things, electric utilities to generate 40% of their electricity from renewable sources by 2024, 60% of their electricity from renewable energy sources by 2030 and 100% of their electricity from renewable energy sources and zero-carbon resources by 2045. The new requirement is in addition to the existing requirement for electric utilities to generate one third of their electricity from renewable sources by 2020. BVES is currently assessing various renewable energy opportunities to enable it to be in compliance with these requirements. Cost of Capital Proceeding: In March 2018, the CPUC issued a final decision in the cost of capital proceeding for GSWC and three other water utilities for the years 2018 - 2020. Among other things, the final decision adopted for GSWC's water segment a return on equity of 8.90% , with a return on rate base of 7.91% . The previously authorized return on equity for GSWC’s water segment was 9.43% , with a return on rate base of 8.34% . In April 2018, GSWC implemented new water rates to incorporate the cost of capital decision. For the year ended December 31, 2018 , GSWC recorded a regulatory liability with a corresponding decrease in water revenues of approximately $961,000 representing the revenue difference between the old and new cost of capital rates through April 2018. Pending General Rate Case Filings: Water Segment : In July 2017, GSWC filed a general rate case application for its water regions and the general office. The general rate case will determine new water rates for the years 2019 through 2021. On August 15, 2018, GSWC and the CPUC’s Public Advocates Office filed a joint motion to adopt a settlement agreement between GSWC and the Public Advocates Office in connection with this general rate case. If approved by the CPUC, the settlement would resolve all of the issues in the general rate case application. GSWC and the Public Advocates Office informed the assigned Administrative Law Judge ("ALJ”) that hearings would not be needed in light of the settlement agreement. Subsequently, the ALJ issued a ruling requesting additional information on a number of items in the general rate case. GSWC has provided the additional information requested by the ALJ and believes it has satisfied all of the questions raised. Both the ALJ’s request and GSWC’s response are public information. GSWC is awaiting a proposed decision by the ALJ, which is expected during the first quarter of 2019, with a final decision by the CPUC expected later in 2019. When approved, the new rates will be retroactive to January 1, 2019. Electric Segment : In May 2017, GSWC filed its electric general rate case application with the CPUC to determine new electric rates for the years 2018 through 2021. In November 2018, GSWC and the Public Advocates Office filed a joint motion to adopt a settlement agreement between the two parties resolving all issues in connection with the general rate case. Among other things, the settlement incorporates a previous stipulation in the case, which authorizes a new return on equity for GSWC's electric segment of 9.60% , as compared to its previously authorized return of 9.95% . The stipulation also included a capital structure and debt cost similar to those approved by the CPUC in March 2018 in connection with GSWC's water segment cost of capital proceeding. Because of the delay in finalizing the electric general rate case, year-to-date billed electric revenues in 2018 were based on 2017 adopted rates. A decision in this case is expected in 2019 and, when approved by the CPUC, the new rates will be retroactive to January 1, 2018. |
Utility Plant and Intangible As
Utility Plant and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Utility Plant and Intangible Assets | |
Utility Plant and Intangible Assets | Utility Plant and Intangible Assets The following table shows Registrant’s utility plant (regulated utility plant and non-regulated utility property) by major asset class: AWR GSWC December 31, (dollars in thousands) 2018 2017 2018 2017 Water Land $ 14,890 $ 14,895 $ 14,890 $ 14,895 Intangible assets 29,412 29,396 29,413 29,378 Source of water supply 91,349 88,168 91,349 88,168 Pumping 182,673 178,252 182,673 178,252 Water treatment 82,198 78,999 82,198 78,999 Transmission and distribution 1,142,105 1,064,271 1,142,105 1,064,271 Other 131,419 120,820 106,907 105,246 1,674,046 1,574,801 1,649,535 1,559,209 Electric Transmission and distribution 82,257 76,188 82,257 76,188 Generation 12,583 12,583 12,583 12,583 Other (1) 11,224 10,955 11,224 10,955 106,064 99,726 106,064 99,726 Less — accumulated depreciation (561,855 ) (533,370 ) (551,244 ) (524,481 ) Construction work in progress 78,055 63,835 76,737 63,486 Net utility plant $ 1,296,310 $ 1,204,992 $ 1,281,092 $ 1,197,940 (1) Includes intangible assets of $1.2 million for the years ended December 31, 2018 and 2017 for studies performed in association with the electricity segment of the Registrant’s operations. As of December 31, 2018 and 2017 , intangible assets consist of the following: Weighted Average Amortization AWR December 31, GSWC December 31, (dollars in thousands) Period 2018 2017 2018 2017 Intangible assets : Conservation programs 3 years $ 9,486 $ 9,486 $ 9,486 $ 9,486 Water and service rights (2) 30 years 8,695 8,695 8,124 8,124 Water planning studies 14 years 12,641 13,011 12,641 13,011 Total intangible assets 30,822 31,192 30,251 30,621 Less — accumulated amortization (24,399 ) (23,331 ) (24,268 ) (23,221 ) Intangible assets, net of amortization $ 6,423 $ 7,861 $ 5,983 $ 7,400 Intangible assets not subject to amortization (3) $ 422 $ 422 $ 404 $ 404 (2) Includes intangible assets of $571,000 for contracted services included in "Other Property and Investments" on the consolidated balance sheets as of December 31, 2018 and 2017 . (3) The intangible assets not subject to amortization primarily consist of organization and consent fees. For the years ended December 31, 2018 , 2017 and 2016 , amortization of intangible assets was $1.1 million , $1.5 million and $1.9 million , respectively, for both AWR and GSWC. Estimated future consolidated amortization expenses related to intangible assets for the succeeding five years are (in thousands): Amortization Expense 2019 $ 189 2020 90 2021 12 2022 12 2023 12 Total $ 315 Asset Retirement Obligations : The following is a reconciliation of the beginning and ending aggregate carrying amount of asset retirement obligations, which are included in “Other Credits” on the balance sheets as of December 31, 2018 and 2017 : (dollars in thousands) GSWC Obligation at December 31, 2016 $ 4,393 Additional liabilities incurred 562 Liabilities settled (229 ) Accretion 237 Obligation at December 31, 2017 $ 4,963 Additional liabilities incurred 256 Liabilities settled (46 ) Accretion 55 Obligation at December 31, 2018 $ 5,228 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments GSWC's electric division, BVES, purchases power under long-term contracts at a fixed cost depending on the amount of power and the period during which the power is purchased under such contracts. In December 2014, the CPUC approved an application that allowed BVES to enter into long-term purchased power contracts with energy providers, which BVES executed in December 2014. BVES began taking power under these long-term contracts effective January 1, 2015 at a fixed cost over three and five -year terms depending on the amount of power and period during which the power is purchased under the contracts. The long-term contracts executed in December 2014 are subject to the accounting guidance for derivatives and require mark-to-market derivative accounting. Among other things, the CPUC also authorized BVES to establish a regulatory asset and liability memorandum account to offset the mark-to-market entries required by the accounting guidance. Accordingly, all unrealized gains and losses generated from the purchased power contracts executed in December 2014 are deferred on a monthly basis into a non-interest bearing regulatory memorandum account that tracks the changes in fair value of the derivative throughout the term of the contract. As a result, these unrealized gains and losses do not impact GSWC’s earnings. The three -year contract expired on December 31, 2017. Registrant intends to enter into new purchased power contracts, subject to CPUC approval, once the five-year term contract expires in November 2019. As of December 31, 2018 , there was a $311,000 unrealized loss in the memorandum account, with a corresponding unrealized loss liability for the five -year purchased power contract as a result of the fixed prices being greater than the futures energy prices. The notional volume of derivatives remaining under this long-term contract as of December 31, 2018 was approximately 96,000 megawatt hours. As previously discussed in Note 1, the accounting guidance for fair value measurements establishes a framework for measuring fair value and requires fair value measurements to be classified and disclosed in one of three levels. Registrant’s valuation model utilizes various inputs that include quoted market prices for energy over the duration of the contract. The market prices used to determine the fair value for this derivative instrument were estimated based on independent sources such as broker quotes and publications that are not observable in or corroborated by the market. Registrant received one broker quote to determine the fair value of its derivative instrument. When such inputs have a significant impact on the measurement of fair value, the instrument is categorized as Level 3. Accordingly, the valuation of the derivative on Registrant’s purchased power contract has been classified as Level 3 for all periods presented. The following table presents changes in the fair value of GSWC’s derivatives for the years ended December 31, 2018 and 2017 : (dollars in thousands) 2018 2017 Balance, at beginning of the period $ (2,941 ) $ (4,901 ) Unrealized gain on purchased power contracts 2,630 1,960 Balance, at end of the period $ (311 ) $ (2,941 ) |
Military Privatization
Military Privatization | 12 Months Ended |
Dec. 31, 2018 | |
Military Privatization | |
Military Privatization | Military Privatization Each of the Military Utility Privatization Subsidiaries have entered into a service contract(s) with the U.S. government to operate and maintain, as well as perform construction activities to renew and replace, the water and/or wastewater systems at a military base or bases. The amounts charged for these services are based upon the terms of the 50 -year contract between ASUS or the Military Utility Privatization Subsidiaries and the U.S. government. Under the terms of each of these agreements, the Military Utility Privatization Subsidiaries agree to operate and maintain the water and/or wastewater systems for: (i) a monthly net fixed-price for operation and maintenance, and (ii) an amount to cover renewal and replacement capital work. In addition, these contracts may also include firm, fixed-priced initial capital upgrade projects to upgrade the existing infrastructure. Contract modifications are also issued for other necessary capital upgrades to the existing infrastructure approved by the U.S. government. Under the terms of each of these contracts, prices are subject to an economic price adjustment ("EPA") provision, on an annual basis. Prices may also be equitably adjusted for changes in law and other circumstances. During 2018, the U.S. government issued contract modifications for the majority of ASUS's 50 -year contracts addressing the impacts of the Tax Act. The modifications did not result in a material impact to ASUS's results for the year ended December 31, 2018. ASUS is permitted to file, and has filed, requests for equitable adjustment. Each of the contracts may be subject to termination, in whole or in part, prior to the end of the 50 -year term for convenience of the U.S. government or as a result of default or nonperformance by the Military Utility Privatization Subsidiaries. On July 1, 2018, ASUS assumed the operation, maintenance and construction management of the water distribution and wastewater collection and treatment facilities at Fort Riley, a United States Army installation located in Kansas. The 50 -year contract is subject to annual economic price adjustments. On June 15, 2017, ASUS assumed operations of the water and wastewater systems at Eglin AFB in Florida. This contract is also subject to annual economic price adjustments. ASUS has experienced delays in receiving EPAs as provided for under its 50 -year contracts. Because of the delays, EPAs, when finally approved, are retroactive. During 2018, the U.S. government approved EPAs at seven of the bases served. In some cases, these EPAs included retroactive operation and maintenance management fees for prior periods. For the year ended December 31, 2018 , retroactive operation and maintenance management fees related to periods prior to 2018 were immaterial. For the year ended December 31, 2017 , ASUS recorded approximately $1.0 million in retroactive operation and maintenance management fees and pretax operating income related to periods prior to 2017 . |
Earnings Per Share and Capital
Earnings Per Share and Capital Stock | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Capital Stock | Earnings Per Share and 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 restricted stock units that earn dividend equivalents on an equal basis with AWR’s Common Shares that have been issued under AWR’s 2000, 2008 and 2016 employee plans, and the 2003 and 2013 directors' plans. 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 for calculating basic net income per share: Basic: For The Years Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Net income $ 63,871 $ 69,367 $ 59,743 Less: (a) Distributed earnings to common shareholders 38,937 36,417 33,408 Distributed earnings to participating securities 204 197 187 Undistributed earnings 24,730 32,753 26,148 (b) Undistributed earnings allocated to common shareholders 24,601 32,577 26,003 Undistributed earnings allocated to participating securities 129 176 145 Total income available to common shareholders, basic (a)+(b) $ 63,538 $ 68,994 $ 59,411 Weighted average Common Shares outstanding, basic 36,733 36,638 36,552 Basic earnings per Common Share $ 1.73 $ 1.88 $ 1.63 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 and restricted stock units granted under AWR’s 2000, 2008 and 2016 employee plans, and the 2003 and 2013 directors' plans, and net income. At December 31, 2018 , there were 35,560 stock options outstanding under the 2000 and 2008 employee stock option plans. As of January 28, 2018, all stock options remaining outstanding under the 2000 plan were canceled in accordance with the terms of the 2000 plan. At December 31, 2018 , there were also 197,896 restricted stock units outstanding including performance shares awarded to officers of the Registrant. 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 Years Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Common shareholders earnings, basic $ 63,538 $ 68,994 $ 59,411 Undistributed earnings for dilutive stock options and restricted stock units 129 176 145 Total common shareholders earnings, diluted $ 63,667 $ 69,170 $ 59,556 Weighted average Common Shares outstanding, basic 36,733 36,638 36,552 Stock-based compensation (1) 203 206 198 Weighted average Common Shares outstanding, diluted 36,936 36,844 36,750 Diluted earnings per Common Share $ 1.72 $ 1.88 $ 1.62 (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 35,560 stock options and 197,896 restricted stock units, including performance awards, at December 31, 2018 were deemed to be outstanding in accordance with accounting guidance on earnings per share. During the years ended December 31, 2018 , 2017 and 2016 , AWR issued Common Shares totaling 44,906 , 56,498 and 56,900 , respectively, under AWR's employee stock incentive plans and the non-employee directors' plans. In addition, during the years ended December 31, 2018 , 2017 and 2016 , AWR issued 32,142 , 52,936 and 12,546 Common Shares for approximately $546,000 , $909,000 and $235,000 , respectively, as a result of the exercise of stock options. During 2018 , 2017 and 2016 , no cash proceeds received by AWR as a result of the exercise of stock options were distributed to any of AWR's subsidiaries. AWR has not issued any Common Shares during 2018, 2017 and 2016 under AWR's Common Share Purchase and Dividend Reinvestment Plan ("DRP") and the 401(k) Plan. Shares reserved for the 401(k) Plan are in relation to AWR’s matching contributions and investment by participants. As of December 31, 2018 , there were 1,055,948 and 387,300 Common Shares authorized for issuance directly by AWR but unissued under the DRP and the 401(k) Plan, respectively. GSWC’s outstanding Common Shares are owned entirely by its parent, AWR. To the extent GSWC does not reimburse AWR for stock-based compensation awarded under various stock compensation plans, such amounts increase the value of GSWC’s common shareholder’s equity. |
Dividend Limitations
Dividend Limitations | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Dividend Limitations | Dividend Limitations GSWC is subject to contractual restrictions on its ability to pay dividends. GSWC’s maximum ability to pay dividends is restricted by certain Note Agreements to the sum of $21.0 million plus 100% of consolidated net income from various dates plus the aggregate net cash proceeds received from capital stock offerings or other instruments convertible into capital stock from various dates. Under the most restrictive of the Note Agreements, $427.4 million was available to pay dividends to AWR as of December 31, 2018 . GSWC is also prohibited from paying dividends if, after giving effect to the dividend, its total indebtedness to capitalization ratio (as defined) would be more than 0.6667 -to-1. Dividends in the amount of $68.9 million , $27.7 million and $25.5 million were paid to AWR by GSWC during the years ended December 31, 2018 , 2017 and 2016 , respectively. The ability of AWR, ASUS and GSWC to pay dividends is also restricted by California law. Under California law, AWR, GSWC and ASUS are each permitted to distribute dividends to its shareholders so long as the Board of Directors determines, in good faith, that either: (i) the value of the corporation’s assets equals or exceeds the sum of its total liabilities immediately after the dividend, or (ii) its retained earnings equals or exceeds the amount of the distribution. Under the least restrictive of the California tests, approximately $304.5 million was available to pay dividends to AWR’s shareholders at December 31, 2018 . Approximately $211.2 million was available for GSWC to pay dividends to AWR at December 31, 2018 . Approximately $67.3 million was available for ASUS to pay dividends to AWR as of December 31, 2018 to the extent that the subsidiaries of ASUS are able to pay dividends in that amount to ASUS under applicable state laws. |
Bank Debt
Bank Debt | 12 Months Ended |
Dec. 31, 2018 | |
Bank Debt | |
Bank Debt | Bank Debt AWR has access to a $150.0 million credit facility, which was renewed in May 2018. All amounts borrowed by AWR under the renewed facility are contractually due in May 2023 pursuant to the new terms and are generally priced off a spread to LIBOR. The aggregate effective amount that may be outstanding under letters of credit is $25.0 million . AWR has obtained letters of credit, primarily for GSWC, in the aggregate amount of $940,000 , with fees of 0.65% including: (i) letters of credit in an aggregate amount of $340,000 as security for GSWC’s business automobile insurance policy; (ii) a letter of credit, in an amount of $585,000 as security for the purchase of power; and (iii) a $15,000 irrevocable letter of credit pursuant to a franchise agreement with the City of Rancho Cordova. Letters of credit outstanding reduce the amount that may be borrowed under the revolving credit facility. AWR is not required to maintain any compensating balances. Loans may be obtained under this credit facility at the option of AWR and bear interest at rates based on credit ratings and Euro rate margins. In July 2018, Standard and Poor’s Global Ratings (“S&P”) affirmed an A+ credit rating with a stable outlook on both AWR and GSWC. S&P’s debt ratings range from AAA (highest possible) to D (obligation is in default). In January 2019, Moody's Investors Service ("Moody's") affirmed its A2 rating with a positive outlook for GSWC. At December 31, 2018 , there was $95.5 million outstanding under the credit facility. At times, AWR borrows under this facility and provides loans to its subsidiaries in support of their operations, on terms that are similar to that of the credit facility. AWR’s borrowing activities (excluding letters of credit) for the years ending December 31, 2018 and 2017 were as follows: December 31, (in thousands, except percent) 2018 2017 Balance Outstanding at December 31, $ 95,500 $ 59,000 Interest Rate at December 31, 3.19 % 2.28 % Average Amount Outstanding $ 69,559 $ 65,242 Weighted Average Annual Interest Rate 2.66 % 1.69 % Maximum Amount Outstanding $ 95,500 $ 102,500 All of the letters of credit are issued pursuant to the revolving credit facility. The revolving credit facility contains restrictions on prepayments, disposition of property, mergers, liens and negative pledges, indebtedness and guaranty obligations, transactions with affiliates, minimum interest coverage requirements, a maximum debt to capitalization ratio and a minimum debt rating. Pursuant to the credit agreement, AWR must maintain a minimum interest coverage ratio of 3.25 times interest expense, a maximum total funded debt ratio of 0.65 to 1.00 and a minimum Moody’s Investor Service or S&P debt rating of Baa3 or BBB-, respectively. As of December 31, 2018 , 2017 and 2016 , AWR was in compliance with these requirements. As of December 31, 2018 , AWR had an interest coverage ratio of 6.23 times interest expense, a debt ratio of 0.43 to 1.00 and a debt rating of A+ by S&P. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Registrant’s long-term debt consists primarily of notes and debentures of GSWC. Registrant summarizes its long-term debt in the Statements of Capitalization. GSWC does not currently have any outstanding mortgages or other encumbrances on its properties. Each of the private placement notes issued by GSWC contain various restrictions. Private placement notes issued in the amount of $28 million due in 2031 contain restrictions on the payment of dividends, minimum interest coverage requirements, a maximum total indebtedness to capitalization ratio and a negative pledge. Pursuant to the terms of these notes, GSWC must maintain a minimum interest coverage ratio of two times interest expense. As of December 31, 2018 , GSWC had an interest coverage ratio of over four times interest expense. In December 2014, GSWC issued $15.0 million in 3.45% private placement senior notes due in 2029. In 2005 and 2009, GSWC issued two senior private placement notes to CoBank, ACB ("CoBank") due in 2028 and 2019, respectively. Pursuant to the terms of these three notes, GSWC must maintain a total indebtedness to capitalization ratio (as defined) of less than 0.6667 -to-1 and a total indebtedness to earnings before income taxes, depreciation and amortization ("EBITDA") of less than 8 -to-1. As of December 31, 2018 , GSWC had a total indebtedness to capitalization ratio of 0.4298 -to-1 and a total indebtedness to EBITDA of 3.1 -to-1. Certain long-term debt issues outstanding as of December 31, 2018 can be redeemed, in whole or in part, at the option of GSWC subject to redemption schedules embedded in the agreements particular to each redeemable issue. The 9.56% notes are subject to a make-whole premium based on 55 basis points above the applicable Treasury Yield if redeemed prior to 2021. After 2021, the maximum redemption premium is 3% of par value. The 5.87% and 6.7% senior notes with Co-Bank are subject to a make-whole premium based on the difference between Co-Bank’s cost of funds on the date of purchase and Co-Bank’s cost of funds on the date of redemption plus 0.5% . The $15.0 million, 3.45% senior notes due in 2029 have similar redemption premiums. In October 2009, GSWC entered into an agreement with the California Department of Health (“CDPH”) whereby CDPH agreed to provide funds to GSWC of up to $9.0 million under the American Recovery and Reinvestment Act. Proceeds from the funds received were used to reimburse GSWC for capital costs incurred to install water meters to convert customers in GSWC’s Arden-Cordova district from non-metered service to metered service. GSWC received a total of $8.6 million in reimbursements from the CDPH, half of which was recorded as a contribution in aid of construction and the other half as long-term debt in accordance with the terms of the agreement. The loan portion bears interest at a rate of 2.5% and is payable over 20 years beginning in 2013. A surcharge to recover from customers the debt service cost on this loan was approved by the CPUC and implemented in 2013. Annual maturities of all long-term debt at December 31, 2018 are as follows (in thousands): 2019 $ 40,320 2020 345 2021 365 2022 390 2023 404 Thereafter 283,154 Total $ 324,978 |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income Registrant records deferred income taxes for temporary differences pursuant to the accounting guidance that addresses items recognized for income tax purposes in a different period from when these items are reported in the financial statements. These items include differences in net asset basis (primarily related to differences in depreciation lives and methods, and differences in capitalization methods) and the treatment of certain regulatory balancing accounts and construction contributions and advances. The accounting guidance for income taxes requires that rate-regulated enterprises record deferred income taxes and offsetting regulatory liabilities and assets for temporary differences where the rate regulator has prescribed flow-through treatment for ratemaking purposes (Note 3). Deferred investment tax credits (“ITC”) are amortized ratably to deferred tax expense over the remaining lives of the property that gave rise to these credits. GSWC is included in both AWR’s consolidated federal income tax and its combined California state franchise tax returns. The impact of California’s unitary apportionment on the amount of AWR’s California income tax liability is a function of both the profitability of AWR’s non-California activities and the proportion of AWR’s California sales to its total sales. GSWC’s income tax expense is computed as if GSWC were autonomous and separately files its income tax returns, which is consistent with the method adopted by the CPUC in setting GSWC’s customer rates. On December 22, 2017, the Tax Cuts and Jobs Act (the "Tax Act") was signed into federal law. The provisions of this major tax reform were generally effective on January 1, 2018. Among its significant provisions, the Tax Act (i) reduced the federal corporate income tax rate from 35% to 21% ; (ii) eliminated bonus depreciation for regulated utilities, while allowing 100% expensing for the cost of qualified property for non-regulated businesses; (iii) eliminated the provision that treated contributions in aid of construction provided to regulated water utilities as non-taxable; (iv) eliminated the domestic production activities deduction, and (v) limits the amount of net interest that can be deducted; however, this limitation is not applicable to regulated utilities and, therefore has not had, nor is it anticipated to have, a material impact to Registrant’s ability to deduct net interest. Pursuant to ASC Topic 740, "Income Taxes" , the effects of changes in tax laws must be recognized within the period in which the tax law is enacted. This required AWR and GSWC to record an adjustment in its 2017 financial statements to reflect the impact of the reduction in the corporate income tax rate from 35% to 21% on its cumulative deferred income-tax balances and its tax-related regulatory assets/liabilities. The remeasurement of Registrant’s deferred income-tax balances and its tax-related regulatory assets/liabilities did not have a significant impact to Registrant's consolidated results of operations in 2017 since the majority of the remeasurement was related to GSWC’s rate-regulated activities and was offset by a corresponding increase to a regulatory liability (Note 3). Registrant has remeasured its deferred tax balances to account for the effects of the Tax Act, which are reflected in the December 31, 2018 financial statements. There were no material updates during the year ended December 31, 2018 to the remeasurement of Registrant's deferred income-tax balances and its tax-related regulatory assets/liabilities in accordance with Staff Accounting Bulletin 118. The significant components of the deferred tax assets and liabilities as reflected in the balance sheets at December 31, 2018 and 2017 are: AWR GSWC December 31, December 31, (dollars in thousands) 2018 2017 2018 2017 Deferred tax assets: Regulatory-liability-related (1) $ 33,419 $ 34,567 $ 33,419 $ 34,567 Contributions and advances 5,281 4,679 5,666 5,022 Other 2,988 1,934 3,310 1,625 Total deferred tax assets $ 41,688 $ 41,180 $ 42,395 $ 41,214 Deferred tax liabilities: Fixed assets $ (131,413 ) $ (130,115 ) $ (135,617 ) $ (134,437 ) Regulatory-asset-related: depreciation and other (18,146 ) (16,851 ) (18,146 ) (16,851 ) Balancing and memorandum accounts (non-flow-through) (6,325 ) (9,905 ) (6,873 ) (10,706 ) Total deferred tax liabilities (155,884 ) (156,871 ) (160,636 ) (161,994 ) Accumulated deferred income taxes - net $ (114,196 ) $ (115,691 ) $ (118,241 ) $ (120,780 ) (1) Primarily represents the gross-up portion of the deferred income tax (on the excess-deferred-tax regulatory liability) brought about by the Tax Act’s reduction in the federal income tax rate. The current and deferred components of income tax expense are as follows: AWR Year Ended December 31, (dollars in thousands) 2018 2017 2016 Current Federal $ 17,252 $ 20,978 $ 2,297 State 6,538 5,844 4,798 Total current tax expense $ 23,790 $ 26,822 $ 7,095 Deferred Federal $ (4,334 ) $ 11,543 $ 26,715 State (1,439 ) 609 925 Total deferred tax (benefit) expense (5,773 ) 12,152 27,640 Total income tax expense $ 18,017 $ 38,974 $ 34,735 GSWC Year Ended December 31, (dollars in thousands) 2018 2017 2016 Current Federal $ 14,488 $ 15,044 $ (3,115 ) State 5,932 5,045 3,625 Total current tax expense $ 20,420 $ 20,089 $ 510 Deferred Federal $ (5,531 ) $ 11,770 $ 25,864 State (1,286 ) 2,200 2,235 Total deferred tax (benefit) expense (6,817 ) 13,970 28,099 Total income tax expense $ 13,603 $ 34,059 $ 28,609 The AWR and GSWC effective tax rates differ from the federal statutory tax rate primarily due to (i) state taxes, (ii) permanent differences including the excess tax benefits from share-based payments, which were reflected in the income statements and resulted in a reduction to income tax expense during the years ended December 31, 2018 and 2017 , (iii) commencement of the amortization of the excess deferred income tax liability brought about by the lower federal corporate income tax rate, and (iv) differences between book and taxable income that are treated as flow-through adjustments in accordance with regulatory requirements (principally from plant, rate-case, and compensation expenses). As a regulated utility, GSWC treats certain temporary differences as flow-through in computing its income tax expense consistent with the income tax method used in its CPUC-jurisdiction ratemaking. Flow-through items either increase or decrease tax expense and thus impact the ETR. The reconciliations of the effective tax rates to the federal statutory rate are as follows: AWR Year Ended December 31, (dollars in thousands) 2018 2017 2016 Federal taxes on pretax income at statutory rate (21% in 2018; 35% in 2017 and 2016) $ 17,196 $ 37,919 $ 33,067 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 3,693 4,382 3,029 Change in tax rate (14 ) (82 ) — Excess deferred tax amortization (2,101 ) — — Flow-through on fixed assets 429 845 994 Flow-through on pension costs 373 412 (247 ) Flow-through on removal costs (1,445 ) (1,980 ) (2,068 ) Domestic production activities deduction (26 ) (1,421 ) (78 ) Investment tax credit (69 ) (93 ) (83 ) Other – net (19 ) (1,008 ) 121 Total income tax expense from operations $ 18,017 $ 38,974 $ 34,735 Pretax income from operations $ 81,888 $ 108,341 $ 94,478 Effective income tax rate 22.0 % 36.0 % 36.8 % GSWC Year Ended December 31, (dollars in thousands) 2018 2017 2016 Federal taxes on pretax income at statutory rate (21% in 2018; 35% in 2017 and 2016) $ 12,939 $ 30,736 $ 26,452 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 3,335 4,924 3,118 Change in tax rate — 1,063 — Excess deferred tax amortization (2,101 ) — — Flow-through on fixed assets 429 845 994 Flow-through on pension costs 373 412 (247 ) Flow-through on removal costs (1,445 ) (1,980 ) (2,068 ) Domestic production activities deduction (25 ) (1,148 ) — Investment tax credit (69 ) (93 ) (82 ) Other – net 167 (700 ) 442 Total income tax expense from operations $ 13,603 $ 34,059 $ 28,609 Pretax income from operations $ 61,615 $ 87,816 $ 75,578 Effective income tax rate 22.1 % 38.8 % 37.9 % AWR and GSWC had no unrecognized tax benefits at December 31, 2018 , 2017 and 2016 . Registrant’s policy is to classify interest on income tax over/underpayments in interest income/expense and penalties in “other operating expenses.” Registrant did not have any material interest receivables/payables from/to taxing authorities as of December 31, 2018 and 2017 , nor did it recognize any material interest income/expense or accrue any material tax-related penalties during the years ended December 31, 2018 , 2017 and 2016 . Registrant files federal, California and various other state income tax returns. The Internal Revenue Service (“IRS”) completed its examination of AWR’s federal 2010 through 2012 refund claims in February 2016 and issued a refund to AWR of approximately $2.1 million . AWR’s 2015 - 2017 tax years remain subject to examination by the IRS. AWR filed refund claims with the California Franchise Tax Board ("FTB") for the 2002 through 2008 tax years in connection with the matters reflected on the federal refund claims along with other state tax items. In the first quarter of 2017, the FTB issued a refund to AWR for the 2002 - 2004 claims of approximately $2.2 million . The FTB continues to review the 2005 - 2008 refund claims. The 2009 - 2017 tax years remain subject to examination by the FTB. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension and Post-Retirement Medical Plans : Registrant maintains a defined benefit pension plan (the “Pension Plan”) that provides eligible employees (those aged 21 and older, hired before January 1, 2011) monthly benefits upon retirement based on average salaries and length of service. The eligibility requirement to begin receiving these benefits is 5 years of vested service. The normal retirement benefit is equal to 2% of the 5 highest consecutive years’ average earnings multiplied by the number of years of credited service, up to a maximum of 40 , reduced by a percentage of primary Social Security benefits. There is also an early retirement option. Annual contributions are made to the Pension Plan, which comply with the funding requirements of the Employee Retirement Income Security Act (“ERISA”). At December 31, 2018 , Registrant had 945 participants in the Pension Plan. Employees hired or rehired after December 31, 2010 are eligible to participate in a defined contribution plan. Registrant's existing 401(k) Investment Incentive Program was amended to include this defined contribution plan. Under this plan, Registrant provides a contribution ranging from 3% to 5.25% of eligible pay each pay period into investment vehicles offered by the plan’s trustee. Full vesting under this plan occurs upon 3 years of service. Employees hired before January 1, 2011 continue to participate in and accrue benefits under the terms of the Pension Plan. Registrant also provides post-retirement medical benefits for all active employees hired before February of 1995 through a medical insurance plan. Eligible employees, who retire prior to age 65, and/or their spouses, are able to retain the benefits under the plan for active employees until reaching age 65. Eligible employees upon reaching age 65, and those eligible employees retiring at or after age 65, and/or their spouses, receive coverage through a Medicare supplement insurance policy paid for by Registrant subject to an annual cap limit. Registrant’s post-retirement medical plan does not provide prescription drug benefits to Medicare-eligible employees and is not affected by the Medicare Prescription Drug Improvement and Modernization Act of 2003. In accordance with the accounting guidance for the effects of certain types of regulation, Registrant has established a regulatory asset for its underfunded position in its pension and post-retirement medical plans that is expected to be recovered through rates in future periods. The changes in actuarial gains and losses, prior service costs and transition assets or obligations pertaining to the regulatory asset are recognized as an adjustment to the regulatory asset account as these amounts are recognized as components of net periodic pension costs each year and in the rate-making process. The following table sets forth the Pension Plan’s and post-retirement medical plan’s funded status and amounts recognized in Registrant’s balance sheets and the components of net pension cost and accrued liability at December 31, 2018 and 2017 : Pension Benefits Post-Retirement Medical Benefits (dollars in thousands) 2018 2017 2018 2017 Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 207,690 $ 180,364 $ 8,491 $ 8,802 Service cost 5,342 4,999 218 227 Interest cost 7,646 7,904 292 324 Plan amendment 3,626 — — — Actuarial (gain) loss (21,717 ) 20,397 (701 ) (355 ) Benefits/expenses paid (6,505 ) (5,974 ) (414 ) (507 ) Projected benefit obligation at end of year $ 196,082 $ 207,690 $ 7,886 $ 8,491 Changes in Plan Assets: Fair value of plan assets at beginning of year $ 173,648 $ 150,872 $ 11,053 $ 10,538 Actual return on plan assets (10,626 ) 22,246 (629 ) 1,022 Employer contributions 6,012 6,504 — — Benefits/expenses paid (6,505 ) (5,974 ) (414 ) (507 ) Fair value of plan assets at end of year $ 162,529 $ 173,648 $ 10,010 $ 11,053 Funded Status: Net amount recognized as accrued pension cost $ (33,553 ) $ (34,042 ) $ 2,124 $ 2,562 Pension Benefits Post-Retirement Medical Benefits (dollars in thousands) 2018 2017 2018 2017 Amounts recognized on the balance sheets: Non-current assets $ — $ — $ 2,124 $ 2,562 Current liabilities — — — — Non-current liabilities (33,553 ) (34,042 ) — — Net amount recognized $ (33,553 ) $ (34,042 ) $ 2,124 $ 2,562 Amounts recognized in regulatory assets consist of: Prior service cost (credit) $ 3,626 $ — $ — $ — Net (gain) loss 31,587 32,761 (4,459 ) (5,650 ) Regulatory assets (liabilities) 35,213 32,761 (4,459 ) (5,650 ) Unfunded accrued pension cost (1,660 ) 1,281 2,335 3,088 Net liability (asset) recognized $ 33,553 $ 34,042 $ (2,124 ) $ (2,562 ) Changes in plan assets and benefit obligations recognized in regulatory assets: Regulatory asset at beginning of year $ 32,761 $ 25,828 $ (5,650 ) $ (5,515 ) Net loss (gain) 81 7,856 421 (910 ) New prior service cost 3,626 — — — Amortization of net gain (loss) (1,255 ) (923 ) 770 775 Total change in regulatory asset 2,452 6,933 1,191 (135 ) Regulatory asset (liability) at end of year $ 35,213 $ 32,761 $ (4,459 ) $ (5,650 ) Net periodic pension costs $ 3,070 $ 4,121 $ (752 ) $ (690 ) Change in regulatory asset 2,452 6,933 1,191 (135 ) Total recognized in net periodic pension cost and regulatory asset (liability) $ 5,522 $ 11,054 $ 439 $ (825 ) Estimated amounts that will be amortized from regulatory asset over the next fiscal year: Prior service (cost) credit $ (434 ) $ — $ — $ — Net gain (loss) $ (1,435 ) $ (1,378 ) $ 598 $ 727 Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 196,082 $ 207,690 $ 7,886 $ 8,491 Accumulated benefit obligation $ 183,036 $ 190,438 N/A N/A Fair value of plan assets $ 162,529 $ 173,648 $ 10,010 $ 11,053 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 4.43 % 3.76 % 4.20 % 3.52 % Rate of compensation increase * * N/A N/A * Age-graded ranging from 3.0% to 8.0% . The components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool, for 2018 , 2017 and 2016 are as follows: Pension Benefits Post-Retirement Medical Benefits (dollars in thousands, except percent) 2018 2017 2016 2018 2017 2016 Components of Net Periodic Benefits Cost: Service cost $ 5,342 $ 4,999 $ 5,094 $ 218 $ 227 $ 247 Interest cost 7,646 7,904 7,910 292 324 371 Expected return on plan assets (11,172 ) (9,705 ) (9,838 ) (493 ) (466 ) (489 ) Amortization of prior service cost (credit) — — 49 — — (34 ) Amortization of actuarial (gain) loss 1,254 923 911 (769 ) (775 ) (701 ) Net periodic pension cost under accounting standards $ 3,070 $ 4,121 $ 4,126 $ (752 ) $ (690 ) $ (606 ) Regulatory adjustment — 465 859 — — — Total expense recognized, before surcharges and allocation to overhead pool $ 3,070 $ 4,586 $ 4,985 $ (752 ) $ (690 ) $ (606 ) Weighted-average assumptions used to determine net periodic cost: Discount rate 3.76 % 4.44 % 4.65 % 3.52 % 3.97 % 4.25 % Expected long-term return on plan assets 6.50 % 6.50 % 7.00 % * * * Rate of compensation increase ** ** ** N/A N/A N/A * 6.0% for union plan and 4.2% for non-union (net of income taxes) in 2018 and 2017 and 7.0% for union plan and 4.20 % for non-union (net of income taxes) for 2016 . ** Age-graded ranging from 3.0% to 8.0% . Regulatory Adjustment : The CPUC authorized GSWC to track differences between the forecasted annual pension expenses adopted in rates for its water and electric regions and the general office, and the actual annual expense to be recorded by GSWC in accordance with the accounting guidance for pension costs. During the years ended December 31, 2018 , 2017 and 2016 , GSWC's actual expense was lower than the amounts included in water and electric customer rates (including surcharges) by $1.7 million , $583,000 and $859,000 , respectively. In 2017 and 2016, these annual over-collections were used to recover previously incurred under-collections. The cumulative amounts recorded in the two-way pension balancing accounts are included within the pensions and other post-retirement obligations regulatory assets discussed in Note 3. As of December 31, 2018 , the two-way pension balancing accounts had a $3.0 million cumulative net over-collection included within regulatory assets. Plan Funded Status : The Pension Plan was underfunded at December 31, 2018 and 2017 . Registrant’s market related value of plan assets is equal to the fair value of plan assets. Past volatile market conditions have affected the value of GSWC’s trust established to fund its future long-term pension benefits. These benefit plan assets and related obligations are measured annually using a December 31 measurement date. Changes in the Pension Plan’s funded status will affect the assets and liabilities recorded on the balance sheet in accordance with accounting guidance on employers’ accounting for defined benefit pension and other post-retirement plans. Due to Registrant’s regulatory recovery treatment, the recognition of the underfunded status for the Pension Plan has been offset by a regulatory asset pursuant to guidance on the accounting for the effects of certain types of regulation. Plan Assets : The assets of the pension and post-retirement medical plans are managed by a third party trustee. The investment policy allocation of the assets in the trust was approved by Registrant’s Administrative Committee (the “Committee”) for the pension and post-retirement medical funds, which has oversight responsibility for all retirement plans. The primary objectives underlying the investment of the pension and post-retirement plan assets are: (i) attempt to maintain a fully funded status with a cushion for unexpected developments, possible future increases in expense levels, and/or a reduction in the expected return on investments; (ii) seek to earn long-term returns that compare favorably to appropriate market indexes, peer group universes and the policy asset allocation index; (iii) seek to provide sufficient liquidity to pay current benefits and expenses; (iv) attempt to limit risk exposure through prudent diversification; and (v) seek to limit costs of administering and managing the plans. The Committee recognizes that risk and volatility are present to some degree with all types of investments. High levels of risk may be avoided through diversification by asset class, style of each investment manager and sector and industry limits. Investment managers are retained to manage a pool of assets and allocate funds in order to achieve an appropriate, diversified and balanced asset mix. The Committee’s strategy balances the requirement to maximize returns using potentially higher-return generating assets, such as equity securities, with the need to control the risk of its benefit obligations with less volatile assets, such as fixed-income securities. The Committee approves the target asset allocations. Registrant’s pension and post-retirement plan weighted-average asset allocations at December 31, 2018 and 2017 , by asset category are as follows: Pension Benefits Post-Retirement Medical Benefits Asset Category 2018 2017 2018 2017 Actual Asset Allocations : Equity securities 53 % 57 % 59 % 59 % Debt securities 43 % 39 % 39 % 37 % Real Estate Funds 4 % 4 % — % — % Cash equivalents — % — % 2 % 4 % Total 100 % 100 % 100 % 100 % Equity securities did not include AWR’s Common Shares as of December 31, 2018 and 2017 . Target Asset Allocations for 2018: Pension Benefits Post-retirement Medical Benefits Equity securities 60 % 60 % Debt securities 40 % 40 % Total 100 % 100 % The Pension Plan assets are in collective trust funds managed by a management firm appointed by the Committee. The fair value of these collective trust funds is measured using net asset value per share. In accordance with ASU 2015-07 Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalents) , the fair value of the collective trust funds is not categorized in the fair value hierarchy as of December 31, 2018 and 2017 . The following tables set forth the fair value, measured by net asset value, of the pension investment assets as of December 31, 2018 and 2017 : Net Asset Value as of December 31, 2018 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 590 — N/A N/A Fixed income fund 70,642 — Daily Daily Equity securities : U.S. small/mid cap funds 22,313 — Daily Daily U.S. large cap funds 46,133 — Daily Daily International funds 15,548 — Daily Daily Total equity funds 83,994 — Real estate funds 7,303 — Daily Daily Total $ 162,529 — Net Asset Value as of December 31, 2017 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 489 — N/A N/A Fixed income fund 66,669 — Daily Daily Equity securities : U.S. small/mid cap funds 26,998 — Daily Daily U.S. large cap funds 53,985 — Daily Daily International funds 17,893 — Daily Daily Total equity funds 98,876 Real estate funds 7,614 — Daily Daily Total $ 173,648 — The collective trust funds may be invested or redeemed daily, and generally do not have any significant restrictions to redeem the investments. As previously discussed in Note 1, the accounting guidance for fair value measurements establishes a framework for measuring fair value and requires fair value measurements to be classified and disclosed in one of three levels. As required by the accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. All equity investments in the post-retirement medical plan are Level 1 investments in mutual funds. The fixed income category includes corporate bonds and notes. The majority of fixed income investments range in maturities from less than 1 to 20 years. The fair values of these investments are based on quoted market prices in active markets. The following tables set forth by level, within the fair value hierarchy, the post-retirement plan's investment assets measured at fair value as of December 31, 2018 and 2017 : Fair Value as of December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 263 — — $ 263 Fixed income 3,871 — — 3,871 U.S. equity securities 5,876 — — 5,876 Total investments measured at fair value $ 10,010 — — $ 10,010 Fair Value as of December 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 189 — — $ 189 Fixed income 4,364 — — 4,364 U.S. equity securities 6,507 — — 6,507 Total investments measured at fair value $ 11,060 — — $ 11,060 Plan Contributions : During 2018 , Registrant contributed $6.0 million to its pension plan and did not make a contribution to the post-retirement medical plan. Registrant expects to contribute approximately $3.6 million to its pension plan in 2019. Registrant’s policy is to fund the plans annually at a level which is deductible for income tax purposes and is consistent with amounts recovered in customer rates. Benefit Payments : Estimated future benefit payments at December 31, 2018 for the next five years and thereafter are as follows (in thousands): Pension Benefits Post-Retirement Medical Benefits 2019 $ 7,343 $ 585 2020 7,934 633 2021 8,597 709 2022 9,283 749 2023 9,860 764 Thereafter 57,832 3,172 Total $ 100,849 $ 6,612 Assumptions : Certain actuarial assumptions, such as the discount rate, long-term rate of return on plan assets, mortality, and the healthcare cost trend rate have a significant effect on the amounts reported for net periodic benefit cost as well as the related benefit obligation amounts. Discount Rate — The assumed discount rate for pension and post-retirement medical plans reflects the market rates for high-quality corporate bonds currently available. Registrant’s discount rates were determined by considering the average of pension yield curves constructed of a large population of high quality corporate bonds. The resulting discount rate reflects the matching of plan liability cash flows to the yield curves. Expected Long-Term Rate of Return on Assets — The long-term rate of return on plan assets represents an estimate of long-term returns on an investment portfolio consisting of a mixture of equities, fixed income and other investments. To develop the expected long-term rate of return on assets assumption for the pension plan, Registrant considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. Registrant’s policy is to fund the medical benefit trusts based on actuarially determined amounts as allowed in rates approved by the CPUC. Registrant has invested the funds in the post-retirement trusts that will achieve a desired return and minimize amounts necessary to recover through rates. The mix is expected to provide for a return on assets similar to the Pension Plan and to achieve Registrant’s targeted allocation. This resulted in the selection of the 6.0% long-term rate of return on assets assumption for the union plan and 4.2% (net of income taxes) for the non-union plan portion of the post-retirement plan. Mortality — Mortality assumptions are a critical component of benefit obligation amounts and a key factor in determining the expected length of time for annuity payments. In 2014, the Society of Actuaries ("SOA") released new mortality tables for pension plans. Beginning with 2014, the benefit obligation amounts assumed a longer life expectancy of participants as a result of the actuarial update to mortality tables. In 2016, the SOA published updated mortality tables reflecting three additional years of data and refined certain parameters used in developing the 2014 tables. Accordingly, the benefit obligation amounts as of December 31, 2018 and 2017 have incorporated these updates to the mortality tables. Healthcare Cost Trend Rate — The assumed health care cost trend rate for 2019 starts at 6.1% grading down to 4.6% in 2037 for those under age 65, and at 5.1% grading down to 4.2% in 2037 for those 65 and over. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects on the post-retirement medical plan: (dollars in thousands) 1-Percentage-Point Increase 1-Percentage-Point Decrease Effect on total of service and interest cost components $ 41 $ (35 ) Effect on post-retirement benefit obligation $ 759 $ (659 ) Supplemental Executive Retirement Plan : Registrant has a supplemental executive retirement plan (“SERP”) that is intended to restore retirement benefits to certain key employees and officers of Registrant that are limited by Sections 415 and 401(a)(17) of the Internal Revenue Code of 1986, as amended. The Board of Directors approved the establishment of a Rabbi Trust created for the SERP. Assets in a Rabbi Trust can be subject to the claims of creditors; therefore, they are not considered as an asset for purposes of computing the SERP’s funded status. As of December 31, 2018 , the balance in the Rabbi Trust totaled $16.4 million and is included in Registrant’s other property and investments. All equity investments in the Rabbi Trust are Level 1 investments in mutual funds. The fixed income category includes corporate bonds and notes. The fair values of these investments are based on quoted market prices in active markets. The following tables set forth by level, within the fair value hierarchy, the Rabbi Trust investment assets measured at fair value as of December 31, 2018 and 2017 : Fair Value as of December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 166 — — $ 166 Fixed income securities 6,251 — — 6,251 Equity securities 9,995 — — 9,995 Total investments measured at fair value $ 16,412 — — $ 16,412 Fair Value as of December 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 45 — — $ 45 Fixed income securities 6,072 — — 6,072 Equity securities 9,110 — — 9,110 Total investments measured at fair value $ 15,227 — — $ 15,227 The following provides a reconciliation of benefit obligations, funded status of the SERP, as well as a summary of significant estimates at December 31, 2018 and 2017 : (dollars in thousands) 2018 2017 Change in Benefit Obligation: Benefit obligation at beginning of year $ 24,062 $ 20,783 Service cost 1,096 930 Interest cost 888 893 Actuarial (gain) loss (1,104 ) 1,872 Benefits paid (425 ) (416 ) Benefit obligation at end of year $ 24,517 $ 24,062 Changes in Plan Assets: Fair value of plan assets at beginning and end of year — — Funded Status: Net amount recognized as accrued cost $ (24,517 ) $ (24,062 ) (in thousands) 2018 2017 Amounts recognized on the balance sheets: Current liabilities $ (433 ) $ (409 ) Non-current liabilities (24,084 ) (23,653 ) Net amount recognized $ (24,517 ) $ (24,062 ) Amounts recognized in regulatory assets consist of: Prior service cost $ — $ — Net loss 5,403 7,556 Regulatory assets 5,403 7,556 Unfunded accrued cost 19,114 16,506 Net liability recognized $ 24,517 $ 24,062 Changes in plan assets and benefit obligations recognized in regulatory assets consist of: Regulatory asset at beginning of year $ 7,556 $ 6,474 Net (gain) loss (1,104 ) 1,872 Amortization of prior service credit — (12 ) Amortization of net loss (1,049 ) (778 ) Total change in regulatory asset (2,153 ) 1,082 Regulatory asset at end of year $ 5,403 $ 7,556 Net periodic pension cost $ 3,033 $ 2,612 Change in regulatory asset (2,153 ) 1,082 Total recognized in net periodic pension and regulatory asset $ 880 $ 3,694 Estimated amounts that will be amortized from regulatory asset over the next fiscal year: Initial net asset (obligation) $ — $ — Prior service cost — — Net loss (471 ) (1,049 ) Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 24,517 $ 24,062 Accumulated benefit obligation 21,229 20,742 Fair value of plan assets — — Weighted-average assumptions used to determine benefit obligations: Discount rate 4.40 % 3.72 % Rate of compensation increase 4.00 % 4.00 % The components of SERP expense, before allocation to the overhead pool, for 2018 , 2017 and 2016 are as follows: (dollars in thousands, except percent) 2018 2017 2016 Components of Net Periodic Benefits Cost: Service cost $ 1,096 $ 930 $ 799 Interest cost 888 893 743 Amortization of prior service cost — 12 25 Amortization of net loss 1,049 777 292 Net periodic pension cost $ 3,033 $ 2,612 $ 1,859 Weighted-average assumptions used to determine net periodic cost: Discount rate 3.72 % 4.34 % 4.61 % Rate of compensation increase 4.00 % 4.00 % 4.00 % Benefit Payments : Estimated future benefit payments for the SERP at December 31, 2018 for the next ten years are as follows (in thousands): 2019 $ 433 2020 1,339 2021 1,396 2022 1,387 2023 1,378 Thereafter 8,003 Total $ 13,936 401(k) Investment Incentive Program : Registrant has a 401(k) Investment Incentive Program under which employees may invest a percentage of their pay, up to a maximum investment prescribed by law, in an investment program managed by an outside investment manager. Registrant’s cash contributions to the 401(k) are based upon a percentage of individual employee contributions and for the years ended December 31, 2018 , 2017 and 2016 were $2.4 million , $2.3 million and $2.2 million , respectively. The Investment Incentive Program also incorporates the defined contribution plan for employees hired on or after January 1, 2011. The cash contributions to the defined contribution plan for the years ended December 31, 2018 , 2017 and 2016 were $1.3 million , $1.1 million and $951,000 , respectively. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Summary Description of Stock Incentive Plans As of December 31, 2018, AWR had five stock incentive plans: the 2000, 2008 and 2016 stock incentive plans for its employees, and the 2003 and 2013 non-employee directors plans for its Board of Directors, each more fully described below. 2000, 2008 and 2016 Employee Plans — AWR adopted these employee plans, following shareholder approval, to provide stock-based incentive awards in the form of stock options, restricted stock units and restricted stock to employees as a means of promoting the success of Registrant by attracting, retaining and more fully aligning the interests of employees with those of customers and shareholders. The 2008 and 2016 employee plans also provide for the grant of performance awards. No additional grants may be made under the 2000 or 2008 employee plans. No restricted stock grants are currently outstanding under any of the plans. As of January 28, 2018, no stock options were outstanding under the 2000 plan. For stock options, Registrant’s Compensation Committee of the Board of Directors (“Compensation Committee”) determines, among other things, the date of grant, the form, term, option exercise price, vesting and exercise terms of each option. Stock options granted by AWR have been in the form of nonqualified stock options, expire 10 years from the date of grant, vest over a period of 3 years and are subject to earlier termination as provided in the form of option agreements approved by the Compensation Committee. The option price per share is determined by the Compensation Committee at the time of grant but may not be less than the fair market value of AWR's Common Shares on the date of grant. For restricted stock unit awards, the Compensation Committee determines the specific terms, conditions and provisions relating to each restricted stock unit. Each employee who has been granted a time-vested restricted stock unit is entitled to dividend equivalent rights in the form of additional restricted stock units until vesting of the time-vested restricted stock units. In general, time-vested restricted stock units vest over a period of 3 years. Restricted stock units may also vest upon retirement if the grantee is at least 55 and the sum of the grantee's age and years of service are equal to or greater than 75, or upon death or total disability. In addition, restricted stock units may vest following a change in control if the Company terminates the grantee other than for cause or the employee terminates employment for good reason. Each restricted stock unit is non-voting and entitles the holder of the restricted stock unit to receive one Common Share. The Compensation Committee also has the authority to determine the number, amount or value of performance awards, the duration of the performance period or performance periods applicable to the award and the performance criteria applicable to each performance award for each performance period. Each outstanding performance award granted by the Compensation Committee has been in the form of restricted stock units that generally vest over a period of three years as provided in the performance award agreement. The amount of the performance award paid to an employee depends upon satisfaction of performance criteria following the end of a three-year performance period. Performance awards may also vest and be payable upon retirement if the grantee is at least 55 and the sum of the grantee's age and years of service are equal to or greater than 75, or upon death or total disability. In addition, performance awards may vest following a change in control if the Company terminates the grantee other than for cause or the employee terminates employment for good reason. The amount of the payment for performance awards granted in 2018 will be at target in the event of death or a termination of employment (other than for cause) by the Company or termination by the employee for good reason within 24 months after a change in control. In all other circumstances, adjustments will be made to the amount of the payment to take into account the shortened performance period 2003 and 2013 Directors Plans — The Board of Directors and shareholders of AWR have approved the 2003 and 2013 directors plans in order to provide the non-employee directors with supplemental stock-based compensation to encourage them to increase their stock ownership in AWR. No more grants may be made under the 2003 directors plan. Non-employee directors are entitled to receive restricted stock units in an amount determined by the board of directors. This amount may not exceed two times the annual retainer paid to directors. Effective for grants of restricted stock units to non-employee directors after 2012, such units are convertible to AWR's Common Shares ninety days after the grant date. All non-employee directors of AWR who were directors of AWR at the 2003 annual meeting have also received restricted stock units which will be distributed upon termination of the director's service as a director. All stock options, restricted stock units and performance awards have been granted with dividend equivalent rights payable in the form of additional restricted stock units. Recognition of Compensation Expense Registrant recognizes compensation expense related to the fair value of stock-based compensation awards. Share-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant). Immediate vesting occurs if the employee is at least 55 years old and the sum of the employee’s age and years of employment is equal to or greater than 75. Registrant assumes that pre-vesting forfeitures will be minimal, and recognizes pre-vesting forfeitures as they occur, which results in a reduction in compensation expense. The following table presents share-based compensation expenses for the years ended December 31, 2018 , 2017 and 2016 . These expenses resulting from restricted stock units, including performance awards, are included in administrative and general expenses in AWR's and GSWC’s statements of income: AWR GSWC For The Years Ended December 31, For The Years Ended December 31, (in thousands) 2018 2017 2016 2018 2017 2016 Stock-based compensation related to: Restricted stock units $ 3,851 $ 2,885 $ 2,538 $ 3,397 $ 2,420 $ 2,118 Total stock-based compensation expense $ 3,851 $ 2,885 $ 2,538 $ 3,397 $ 2,420 $ 2,118 Equity-based compensation cost capitalized as part of GSWC's utility plant for the years ended December 31, 2018 , 2017 and 2016 was $199,000 , $195,000 and $155,000 , respectively, for both AWR and GSWC. For the years ended December 31, 2018 , 2017 and 2016 , AWR recorded approximately $1.6 million , $1.0 million and $581,000 , respectively, of tax benefits from stock-based awards. For the years ended December 31, 2018 , 2017 and 2016 , GSWC recorded approximately $1.6 million , $1.0 million and $501,000 , respectively, of tax benefits from stock-based awards. Registrant amortizes stock-based compensation over the requisite (vesting) period for the entire award. Options issued pursuant to the 2008 employee plan vest and were exercisable in installments of 33% the first two years and 34% in the third year, starting one year from the date of the grant. Time-vesting restricted stock units vest and become nonforfeitable in installments of 33% the first two years and 34% in the third year, starting one year from the date of the grant. Outstanding performance awards vest and become nonforfeitable in installments of 33% the first two years and 34% in the third year and are distributed at the end of the performance period if the performance criteria set forth in the award agreement are satisfied. Stock Options — There were no stock options granted during the years 2018 , 2017 or 2016 . A summary of stock option activity as of December 31, 2018 and changes during the year ended December 31, 2018 , are presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at January 1, 2018 69,202 $ 16.87 Exercised (32,142 ) 16.98 Forfeited or expired (1,500 ) 17.06 Options outstanding at December 31, 2018 35,560 $ 16.76 0.99 $ 1,788,028 Options exercisable at December 31, 2018 35,560 $ 16.76 0.99 $ 1,788,028 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between the closing price of AWR's Common Shares on the last trading day of the 2018 calendar year and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their option on December 31, 2018 . This amount changes if the fair market value of the Common Shares changes. The total intrinsic value of options exercised during the years ended December 31, 2018 , 2017 and 2016 was approximately $1,367,000 , $1,718,000 and $308,000 , respectively. During the years ended December 31, 2018 , 2017 and 2016 , Registrant received approximately $546,000 , $909,000 and $235,000 , respectively, in cash proceeds from the exercise of its stock options. Restricted Stock Units (Time-Vested) — A restricted stock unit (“RSU”) represents the right to receive a share of AWR’s Common Shares and are valued based on the fair market value of AWR's Common Shares on the date of grant. The fair value of RSUs were determined based on the closing trading price of Common Shares on the grant date. A summary of the status of Registrant’s outstanding RSUs, excluding performance awards, to employees and directors as of December 31, 2018 , and changes during the year ended December 31, 2018 , is presented below: Number of Restricted Share Units Weighted Average Grant-Date Value Restricted share units at January 1, 2018 107,287 $ 32.75 Granted 33,655 55.45 Vested (37,509 ) 47.29 Forfeited (1,198 ) 46.94 Restricted share units at December 31, 2018 102,235 $ 34.73 As of December 31, 2018 , there was approximately $611,000 of total unrecognized compensation cost related to time-vested restricted stock units granted under AWR’s employee and director’s stock plans. That cost is expected to be recognized over a weighted average period of 1.52 years. Restricted Stock Units (Performance Awards) – During the years ended December 31, 2018 , 2017 and 2016 , the Compensation Committee granted performance awards in the form of restricted stock units to officers of the Registrant. A performance award represents the right to receive a share of AWR's Common Shares if specified performance goals are met over the performance period specified in the grant (generally three years ). Each grantee of any outstanding performance award may earn between 0% and 200% of the target amount depending on Registrant's performance against performance goals, which are determined by the Compensation Committee on the date of grant. As determined by the Compensation Committee, the performance awards granted during the years ended December 31, 2018 , 2017 and 2016 included various performance-based conditions and one market-based condition related to total shareholder return ("TSR") that will be earned based on Registrant’s TSR compared to the TSR for a specific peer group of investor-owned water companies. A summary of the status of Registrant’s outstanding performance awards to officers as of December 31, 2018 , and changes during the year ended December 31, 2018 , is presented below: Number of Weighted Average Performance awards at January 1, 2018 97,879 $ 41.49 Granted 25,195 55.88 Performance criteria adjustment 3,803 43.98 Vested (31,216 ) 41.55 Performance awards at December 31, 2018 95,661 $ 45.36 A portion of the fair value of performance awards was estimated at the grant date based on the probability of satisfying the market-based condition using a Monte-Carlo simulation model, which assesses the probabilities of various outcomes of the market condition. The portion of the fair value of the performance awards associated with performance-based conditions was based on the fair market value of AWR's Common Shares at the grant date. The fair value of each outstanding performance award grant is amortized into compensation expense in installments of 33% the first two years and 34% in the third year of their respective vesting periods, which is generally over 3 years unless earlier vested pursuant to the terms of the agreement. The accrual of compensation costs is based on the estimate of the final expected value of the award and is adjusted as required for the portion based on the performance-based condition. Unlike the awards with performance-based conditions, for the portion based on the market-based condition, compensation cost is recognized, and not reversed, even if the market condition is not achieved, as required by the accounting guidance for share-based awards. As of December 31, 2018 , $300,000 of unrecognized compensation costs related to performance awards is expected to be recognized over a weighted average period of 1.92 years. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Commitments | Commitments GSWC’s Water Supply : GSWC obtains its water supply from its operating wells and purchases from others, principally member agencies of the Metropolitan Water District of Southern California (“MWD”). MWD is a public agency and quasi-municipal corporation created in 1928 by a vote of the electorates of several Southern California cities. MWD’s primary purpose was and is to provide a supplemental supply of water for domestic and municipal uses and purposes at wholesale rates to its member public agencies. GSWC has connections to MWD’s water distribution facilities and those of other member water agencies. MWD’s principal sources of water are the State Water Project and the Colorado River. GSWC has contracts to purchase water or water rights for an aggregate amount of $4.4 million as of December 31, 2018 . Included in the $4.4 million is a commitment of $2.2 million to lease water rights from a third party under an agreement which expires in 2028. The remaining $2.2 million is for commitments for purchased water with other third parties, which expire through 2038. GSWC’s estimated future minimum payments under these purchased water supply commitments at December 31, 2018 are as follows (in thousands): 2019 $ 407 2020 407 2021 407 2022 407 2023 407 Thereafter 2,410 Total $ 4,445 Bear Valley Electric Service : Generally, BVES purchases power at a fixed cost, under long-term purchased power contracts, depending on the amount of power and the period during which the power is purchased under such contracts. BVES began taking power pursuant to purchased power contracts approved by the CPUC effective January 1, 2015 at a fixed cost over three and five-year terms depending on the amount of power and period during which the power is purchased under the contracts. The three-year contract expired in 2017. As of December 31, 2018 , GSWC's commitment under BVES's remaining contract totaled approximately $5.2 million . Operating Leases : Registrant leases equipment and facilities primarily for its Regional and District offices and ASUS operations under non-cancelable operating leases with varying terms, provisions and expiration dates. Rent expense for leases that contain scheduled rent increases are recorded on a straight-line basis. During 2018 , 2017 and 2016 , Registrant’s consolidated rent expense was approximately $2.5 million , $2.4 million and $2.3 million , respectively. Registrant’s future minimum payments under long-term non-cancelable operating leases at December 31, 2018 are as follows (in thousands): 2019 $ 2,818 2020 2,530 2021 1,497 2022 1,007 2023 546 Thereafter 605 Total $ 9,003 There is no material difference between the consolidated operations of AWR and the operations of GSWC in regard to the future minimum payments under long-term non-cancelable operating leases. |
Contingencies and Gain on Sale
Contingencies and Gain on Sale of Assets | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies and Gain on Sale of Assets 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 that the owner of utility property (i) may contest whether the condemnation is necessary and in the public interest, and (ii) is entitled to receive the fair market value of its property if the property is ultimately taken. Claremont System: In December 2014, the City of Claremont, California (“the City”) filed an eminent-domain action against GSWC to condemn GSWC's Claremont water system. In December 2016, the judge presiding over the eminent domain lawsuit issued a decision rejecting the City's attempt to take over GSWC's Claremont water system, and further ordered that GSWC be entitled to recover $7.6 million (“Judgment Amount”) of its litigation expenses and related defense costs from Claremont. During the first quarter of 2017, Claremont appealed both decisions. In October 2017, GSWC and the City entered into a settlement agreement whereby the City agreed to drop its appeals and in December 2017 paid $2.0 million to GSWC as partial satisfaction of the Judgment Amount, plus interest accrued through the end of 2017. GSWC recorded the $2.0 million as a reduction to legal fees of $1.8 million and an increase in interest income of $200,000 in the fourth quarter of 2017. Furthermore, under the settlement agreement, quarterly interest-only payments calculated on the unpaid Judgment Amount of $5.9 million are to be made by Claremont to GSWC through the year 2029. If Claremont (i) makes all of the quarterly payments as required, and (ii) does not take formal action to condemn GSWC's Claremont water system before December 31, 2029, then on January 1, 2030, the unpaid Judgment Amount will be deemed satisfied by Claremont without further payment required to be made to GSWC. However, if Claremont were to take formal action any time prior to December 31, 2029 or miss any of the required payments specified in the settlement agreement, the unpaid Judgment Amount and any unpaid accrued interest would immediately become due and payable. GSWC is unable to predict the actions that Claremont will take prior to December 31, 2029 and, as a result, will record the quarterly payments only to the extent that they are collected from Claremont over this period. GSWC serves approximately 11,000 customers in Claremont. Ojai Water System and Gain on Sale of Assets: In June 2017, pursuant to a settlement agreement to resolve an eminent domain action, Casitas Municipal Water District acquired the operating assets of GSWC’s 2,900 -connection Ojai water system by eminent domain for $34.3 million in cash. As a result of this transaction, GSWC recorded a pretax gain of $8.3 million on the sale of the Ojai water system during the second quarter of 2017. The terms of the settlement agreement resolved the eminent domain action and dismissed all claims against GSWC brought by Casitas and another third party. Environmental Clean-Up and Remediation : GSWC has been involved in environmental remediation and cleanup 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. Analysis indicates that offsite monitoring wells may also be necessary to document effectiveness of remediation. As of December 31, 2018 , the total spent to clean-up and remediate the Chadron Plant was approximately $5.9 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 December 31, 2018 , GSWC has a regulatory asset and an accrued liability for the estimated remaining cost of $1.3 million to complete the cleanup at the site. The estimate includes costs for two years of continued activities of groundwater cleanup and monitoring, future soil treatment and site-closure-related activities. 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, some of which may include claims for compensatory and punitive damages. Management believes that rate recovery, proper insurance coverage and reserves are in place to insure against, among other things, property, general liability, employment, and workers’ compensation claims incurred in the ordinary course of business. Insurance coverage may not cover certain claims involving punitive damages. However, Registrant does not believe the outcome from any pending suits or administrative proceedings will have a material effect on Registrant's consolidated results of operations, financial position or cash flows. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments AWR has 3 reportable segments, water, electric and contracted services, whereas GSWC has 2 segments, water and electric. AWR has no material assets other than its investments in its subsidiaries on a stand-alone basis. All activities of GSWC are geographically located within California. Activities of ASUS and the Military Utility Privatization Subsidiaries are conducted in California, Florida, Georgia, Kansas, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. Each of the Military Utility Privatization Subsidiaries is regulated, if applicable, 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, as appropriate, with the commissions in the states in which ASUS’s subsidiaries are incorporated. The tables below set forth information relating to GSWC’s operating segments, ASUS and the Military Utility Privatization 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 balances are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC. As Of And For The Year Ended December 31, 2018 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 295,258 $ 34,350 $ 107,208 $ — $ 436,816 Operating income 74,342 6,220 20,414 7 100,983 Interest expense, net 18,403 1,328 (327 ) 451 19,855 Utility Plant 1,218,468 62,624 15,218 — 1,296,310 Depreciation and amortization expense (1) 36,137 2,258 2,030 40,425 Income tax expense/(benefit) 12,391 1,212 4,939 (525 ) 18,017 Capital additions 110,934 5,420 10,207 — 126,561 As Of And For The Year Ended December 31, 2017 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 306,332 $ 33,969 $ 100,302 $ — $ 440,603 Operating income (loss) (2) 98,678 7,193 21,320 (96 ) 127,095 Interest expense, net 18,909 1,380 255 248 20,792 Utility Plant 1,137,995 59,945 7,052 — 1,204,992 Depreciation and amortization expense (1) 35,706 2,146 1,179 — 39,031 Income tax expense/(benefit) 32,212 1,847 7,136 (2,221 ) 38,974 Capital additions 104,546 5,941 2,639 — 113,126 As Of And For The Year Ended December 31, 2016 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 302,931 $ 35,771 $ 97,385 $ — $ 436,087 Operating income (loss) (2) 87,331 7,856 19,024 (19 ) 114,192 Interest expense, net 19,696 1,337 68 134 21,235 Utility Plant 1,089,031 56,280 5,615 — 1,150,926 Depreciation and amortization expense (1) 35,777 2,027 1,046 — 38,850 Income tax expense/(benefit) 25,894 2,715 6,672 (546 ) 34,735 Capital additions 120,850 7,063 1,954 — 129,867 ____________________________ (1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $238,000 , $242,000 and $259,000 for the years ended December 31, 2018 , 2017 and 2016 , respectively. (2) Adjusted to conform to current-year presentation pursuant to the adoption of ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The following table reconciles total utility plant (a key figure for rate-making) to total consolidated assets (in thousands): December 31, 2018 2017 Total utility plant $ 1,296,310 $ 1,204,992 Other assets 205,123 211,742 Total consolidated assets $ 1,501,433 $ 1,416,734 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Allowance for Doubtful Accounts | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The table below presents Registrant’s provision for doubtful accounts charged to expense and accounts written off, net of recoveries. Provisions included in 2018 , 2017 , and 2016 for AWR and GSWC are as follows: AWR December 31, (dollars in thousands) 2018 2017 2016 Balance at beginning of year $ 1,041 $ 764 $ 944 Provision charged to expense 841 989 619 Accounts written off, net of recoveries (931 ) (712 ) (799 ) Balance at end of year $ 951 $ 1,041 $ 764 Allowance for doubtful accounts related to accounts receivable-customer $ 892 $ 806 $ 702 Allowance for doubtful accounts related to other accounts receivable 59 235 62 Total allowance for doubtful accounts $ 951 $ 1,041 $ 764 GSWC December 31, (dollars in thousands) 2018 2017 2016 Balance at beginning of year $ 865 $ 761 $ 919 Provision charged to expense 850 816 627 Accounts written off, net of recoveries (764 ) (712 ) (785 ) Balance at end of year $ 951 $ 865 $ 761 Allowance for doubtful accounts related to accounts receivable-customer $ 892 $ 806 $ 702 Allowance for doubtful accounts related to other accounts receivable 59 59 59 Total allowance for doubtful accounts $ 951 $ 865 $ 761 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table sets forth non-cash financing and investing activities and other cash flow information (in thousands). AWR GSWC December 31, December 31, 2018 2017 2016 2018 2017 2016 Taxes and Interest Paid: Income taxes paid, net $ 21,084 $ 13,615 $ 10,916 $ 19,448 $ 4,822 $ 8,437 Interest paid, net of capitalized interest 23,471 22,762 22,305 22,721 22,282 22,078 Non-Cash Transactions: Accrued payables for investment in utility plant $ 27,403 $ 20,131 $ 17,236 $ 27,403 $ 20,128 $ 17,207 Property installed by developers and conveyed 2,082 2,082 5,395 2,082 2,082 5,395 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | Note 19 — Selected Quarterly Financial Data (Unaudited) The quarterly financial information presented below is unaudited. Registrant's business is seasonal, and it is management’s opinion that comparisons of earnings for the quarterly periods do not reflect overall trends and changes in Registrant’s operations. AWR For The Year Ended December 31, 2018 (in thousands, except per share amounts) First Second Third Quarter Fourth Year Operating revenues $ 94,728 $ 106,901 $ 124,182 $ 111,005 $ 436,816 Operating income 18,691 25,568 33,975 22,749 100,983 Net income 10,782 16,348 22,952 13,789 63,871 Basic earnings per share * 0.29 0.44 0.62 0.37 1.73 Diluted earnings per share 0.29 0.44 0.62 0.37 1.72 GSWC For The Year Ended December 31, 2018 (in thousands) First Second Third Quarter Fourth Year Operating revenues $ 74,244 $ 84,574 $ 95,564 $ 75,226 $ 329,608 Operating income 16,297 22,645 27,540 14,080 80,562 Net income 8,890 13,648 17,919 7,555 48,012 AWR For The Year Ended December 31, 2017 (in thousands, except per share amounts) First Quarter Second Third Quarter Fourth Year Operating revenues $ 98,810 $ 113,195 $ 124,418 $ 104,180 $ 440,603 Operating income 24,576 42,026 38,534 21,959 127,095 Net income 12,701 22,792 21,006 12,868 69,367 Basic earnings per share * 0.35 0.62 0.57 0.35 1.88 Diluted earnings per share 0.34 0.62 0.57 0.35 1.88 GSWC For The Year Ended December 31, 2017 (in thousands) First Second Third Quarter Fourth Year Operating revenues $ 76,906 $ 88,346 $ 99,913 $ 75,136 $ 340,301 Operating income 21,876 35,229 32,986 15,780 105,871 Net income 10,749 18,363 17,336 7,309 53,757 * The sum of the quarterly basic earnings per share amounts do not agree to the yearly total due to rounding. (1) The second quarter of 2017 includes (i) an $8.3 million pretax gain related to the sale of GSWC's Ojai water system, and (ii) retroactive operating revenues at ASUS totaling $1.0 million related to periods prior to 2017 as a result of the U.S. government's approval of ASUS's economic price adjustment for one of its utility privatization contracts. (2) The fourth quarter of 2017 includes the remeasurement of deferred taxes as a result of the Tax Cuts and Jobs Act. In addition, a $1.8 million reduction to GSWC's operating expenses was recorded representing cash received for reimbursement of legal and other defense costs related to condemnation matters. |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT | CONDENSED BALANCE SHEETS December 31, (in thousands) 2018 2017 Assets Cash and equivalents $ 34 $ 48 Intercompany note receivables 76,072 45,955 Total current assets 76,106 46,003 Investments in subsidiaries 574,330 539,332 Deferred taxes and other assets 8,769 8,422 Total assets $ 659,205 $ 593,757 Liabilities and Capitalization Notes payable to bank $ — $ 59,000 Income taxes payable 3,672 2,780 Intercompany payable — 73 Deferred taxes and other liabilities 291 509 Total current liabilities 3,963 62,362 Notes payable to bank 95,500 — Income taxes payable and other liabilities 1,519 1,450 Total other liabilities 97,019 1,450 Common shareholders’ equity 558,223 529,945 Total capitalization 558,223 529,945 Total liabilities and capitalization $ 659,205 $ 593,757 The accompanying condensed notes are an integral part of these condensed financial statements. CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, (In thousands, except per share amounts) 2018 2017 2016 Operating revenues and other income $ — $ — $ 71 Operating expenses and other expenses 305 344 19 Income before equity in earnings of subsidiaries and income taxes (305 ) (344 ) 52 Equity in earnings of subsidiaries 63,651 67,490 59,145 Income before income taxes 63,346 67,146 59,197 Income tax benefit (525 ) (2,221 ) (546 ) Net income $ 63,871 $ 69,367 $ 59,743 Weighted Average Number of Common Shares Outstanding 36,733 36,638 36,552 Basic Earnings Per Common Share $ 1.73 $ 1.88 $ 1.63 Weighted Average Number of Diluted Common Shares Outstanding 36,936 36,844 36,750 Fully Diluted Earnings per Common Share $ 1.72 $ 1.88 $ 1.62 Dividends Paid Per Common Share $ 1.060 $ 0.994 $ 0.914 The accompanying condensed notes are an integral part of these condensed financial statements. CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, (in thousands) 2018 2017 2016 Cash Flows From Operating Activities $ 79,877 $ 36,024 $ 34,878 Cash Flows From Investing Activities: Loans (made to)/repaid from, wholly-owned subsidiaries (30,500 ) 30,500 (64,500 ) Increase in investment of subsidiary (47,500 ) — — Net cash provided (used) in investing activities (78,000 ) 30,500 (64,500 ) Cash Flows From Financing Activities: Proceeds from stock option exercises 546 909 235 Net change in notes payable to banks 36,500 (31,000 ) 62,000 Dividends paid (38,937 ) (36,417 ) (33,408 ) Other — — (9 ) Net cash provided (used) in financing activities (1,891 ) (66,508 ) 28,818 Change in cash and equivalents (14 ) 16 (804 ) Cash and equivalents at beginning of period 48 32 836 Cash and equivalents at the end of period $ 34 $ 48 $ 32 Basis of Presentation The accompanying condensed financial statements of AWR (parent) should be read in conjunction with the consolidated financial statements and notes thereto of American States Water Company and subsidiaries (“Registrant”) included in Part II, Item 8 of this Form 10-K. AWR’s (parent) significant accounting policies are consistent with those of Registrant and its wholly owned subsidiaries, Golden State Water Company (“GSWC”) and American States Utility Services, Inc. ("ASUS"), except that all subsidiaries are accounted for as equity method investments. Related-Party Transactions: As further discussed in Note 2 — Notes Payable to Banks , AWR (parent) has access to a $150.0 million revolving credit facility. AWR (parent) borrows under this facility and provides funds to its subsidiaries, in support of their operations. Any amounts owed to AWR (parent) for borrowings under this facility are reflected as inter-company receivables on the condensed balance sheets. The interest rate charged to the subsidiaries is sufficient to cover AWR (parent)’s interest cost under the credit facility. AWR (parent) guarantees performance of ASUS's military privatization contracts and agrees to provide necessary resources, including financing, which are necessary to assure the complete and satisfactory performance of such contracts. Note Payable to Banks AWR (parent) has access to a $150.0 million credit facility, which expires in May 2023. The aggregate effective amount that may be outstanding under letters of credit is $25.0 million . AWR has obtained letters of credit, primarily for GSWC, in the aggregate amount of $940,000 , with fees of 0.65% including: (i) letters of credit in an aggregate amount of $340,000 as security for GSWC’s business automobile insurance policy; (ii) a letter of credit in an amount of $585,000 as security for the purchase of power; and (iii) a $15,000 irrevocable letter of credit pursuant to a franchise agreement with the City of Rancho Cordova. Letters of credit outstanding reduce the amount that may be borrowed under the revolving credit facility. AWR was not required to maintain any compensating balances. Loans can be obtained under this credit facility at the option of AWR and bear interest at rates based on credit ratings and Euro rate margins. In July 2018, Standard and Poor’s Global Ratings (“S&P”) affirmed an A+ credit rating with a stable outlook on both AWR and GSWC. S&P’s debt ratings range from AAA (highest possible) to D (obligation is in default). In January 2019, Moody's Investors Service ("Moody's") affirmed its A2 rating with a positive outlook for GSWC. At December 31, 2018 , there was $95.5 million outstanding under this facility. At times, AWR (parent) borrows under this facility and provides loans to its subsidiaries in support of its operations, under terms that are similar to that of the credit facility. AWR’s (parent) borrowing activities (excluding letters of credit) for the years ended December 31, 2018 and 2017 were as follows: December 31, (in thousands, except percent) 2018 2017 Balance Outstanding at December 31, $ 95,500 $ 59,000 Interest Rate at December 31, 3.19 % 2.28 % Average Amount Outstanding $ 69,559 $ 65,242 Weighted Average Annual Interest Rate 2.66 % 1.69 % Maximum Amount Outstanding $ 95,500 $ 102,500 All of the letters of credit are issued pursuant to the revolving credit facility. The revolving credit facility contains restrictions on prepayments, disposition of property, mergers, liens and negative pledges, indebtedness and guaranty obligations, transactions with affiliates, minimum interest coverage requirements, a maximum debt to capitalization ratio and a minimum debt rating. Pursuant to the credit agreement, AWR must maintain a minimum interest coverage ratio of 3.25 times interest expense, a maximum total funded debt ratio of 0.65 to 1.00 and a minimum debt rating from Moody’s or S&P of Baa3 or BBB-, respectively. As of December 31, 2018 , AWR was in compliance with these covenants with an interest coverage ratio of 6.23 times interest expense, a debt ratio of 0.43 to 1.00 and a debt rating of A+ by S&P. Income Taxes AWR (parent) receives a tax benefit for expenses incurred at the parent-company level. AWR (parent) also recognizes the effect of AWR’s consolidated California unitary apportionment, which is beneficial or detrimental depending on a combination of the profitability of AWR’s consolidated non-California activities as well as the proportion of its consolidated California sales to total sales. Dividend from Subsidiaries Dividends in the amount of $79.0 million , $36.5 million and $33.8 million were paid to AWR (parent) by its wholly owned subsidiaries during the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation [Policy Text Block] | 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 wholly owned subsidiaries, Fort Bliss Water Services Company (“FBWS”), Terrapin Utility Services, Inc. (“TUS”), Old Dominion Utility Services, Inc. (“ODUS”), Palmetto State Utility Services, Inc. (“PSUS”), Old North Utility Services, Inc. (“ONUS”), Emerald Coast Utility Services, Inc. (“ECUS”), and Fort Riley Utility Services, Inc. ("FRUS")). AWR and its subsidiaries may be collectively referred to as “Registrant” or “the Company.” The subsidiaries of ASUS are collectively referred to 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 260,000 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 nearly 90% of total water revenues in 2018 , 2017 and 2016 . The California Public Utilities Commission (“CPUC”) regulates GSWC’s water and electric businesses in matters including properties, rates, services, facilities, and transactions by GSWC with its affiliates. In December 2018, GSWC filed an application with the CPUC to effectuate a reorganization plan that would transfer BVES from a division of GSWC to Bear Valley Electric Service, Inc., a newly created separate legal entity and stand-alone subsidiary of AWR. This reorganization plan is subject to CPUC approval and, if approved, is not expected to result in a substantive change to Registrant's operations and business segments. ASUS, through its Military Utility Privatization Subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various U.S. military bases pursuant to 50 -year firm fixed-price contracts. These contracts are subject to annual economic price adjustments and modifications for changes in circumstances, changes in laws and regulations and additions to the contract value for new construction of facilities at the military bases. On July 1, 2018, ASUS assumed the operation, maintenance and construction management of the water distribution and wastewater collection and treatment facilities at Fort Riley, a United States Army installation located in Kansas, after completing a transition period. The 50 -year contract was awarded by the U.S. government in September 2017 and is subject to annual economic price adjustments. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or the Military Utility Privatization Subsidiaries. Basis of Presentation : The consolidated financial statements and notes thereto are presented in a combined report filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. Certain prior period amounts have been reclassified on the income statements to conform to the current-period presentation. AWR owns all of the outstanding Common Shares of GSWC and ASUS. ASUS owns all of the outstanding Common shares of the Military Utility Privatization Subsidiaries. The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Intercompany transactions and balances have been eliminated in the AWR consolidated financial statements. |
Related Party Transactions [Policy Text Block] | Related-Party Transactions : GSWC and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC also allocates certain corporate office administrative and general costs to its affiliate, ASUS, using allocation factors approved by the CPUC. During the years ended December 31, 2018 , 2017 and 2016 , GSWC allocated to ASUS approximately $4.2 million , $4.0 million and $3.9 million , respectively, of corporate office administrative and general costs. In addition, AWR has a $150.0 million credit facility, which expires in May 2023. AWR borrows under this facility and provides funds to its subsidiaries, including GSWC, in support of their operations. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest cost under the credit facility. Amounts owed to GSWC by AWR, including for allocated expenses, are included in GSWC's intercompany receivables as of December 31, 2018 and 2017 . The CPUC requires GSWC to completely pay down all intercompany borrowings from AWR within a 24 -month period. In November 2018, the Board of Directors approved the issuance of nineteen additional GSWC Common Shares to AWR for $47.5 million. On November 30, 2018, GSWC used the proceeds from this stock issuance to pay down its intercompany borrowings owed to AWR. The next 24 -month period in which GSWC is required to completely pay down its intercompany borrowings will be at the end of November 2020. As a result, GSWC’s intercompany borrowings of $57.3 million as of December 31, 2018 have been classified as a long-term liability on GSWC’s balance sheet. GSWC Long-Term Debt: In March of 2019, $40 million of GSWC's 6.70% senior note will mature. This note has been included in "Current Liabilities" in Registrant's balance sheets as of December 31, 2018 . GSWC intends to borrow under its intercompany borrowing arrangement with AWR to fund the repayment of this note. |
Utility Accounting [Policy Text Block] | Utility Accounting : Registrant’s accounting policies conform to accounting principles generally accepted in the United States of America ("U.S. GAAP"), including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the CPUC and the Federal Energy Regulatory Commission. GSWC has incurred various costs and received various credits reflected as regulatory assets and liabilities. Accounting for such costs and credits as regulatory assets and liabilities is in accordance with the guidance for accounting for the effects of certain types of regulation. This guidance sets forth the application of U.S. GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. Under such accounting guidance, rate-regulated entities defer costs and credits on the balance sheet as regulatory assets and liabilities when it is probable that those costs and credits will be recognized in the ratemaking process in a period different from the period in which they would have been reflected in income by an unregulated company. These regulatory assets and liabilities are then recognized in the income statement in the period in which the same amounts are reflected in the rates charged for service. The amounts included as regulatory assets and liabilities that will be collected or refunded over a period exceeding one year are classified as long-term assets and liabilities as of December 31, 2018 and 2017 . |
Property and Depreciation [Policy Text Block] | Property and Depreciation : Registrant's property consists primarily of regulated utility plant at GSWC. GSWC capitalizes, as utility plant, the cost of construction and the cost of additions, betterments and replacements of retired units of property. Such cost includes labor, material and certain indirect charges. Water systems acquired are recorded at estimated original cost of utility plant when first devoted to utility service and the applicable depreciation is recorded to accumulated depreciation. The difference between the estimated original cost, less accumulated depreciation, and the purchase price, if recognized by the regulator, is recorded as an acquisition adjustment within utility plant. Depreciation is computed on the straight-line, remaining-life basis, group method, in accordance with the applicable ratemaking process. GSWC's provision for depreciation expressed as a percentage of the aggregate depreciable asset balances was 2.7% for 2018 , 2.6% for 2017 , and 2.9% for 2016 . Depreciation expense for GSWC, excluding amortization expense and depreciation on transportation equipment, totaled $37.3 million , $36.5 million and $36.1 million for the years ended December 31, 2018 , 2017 and 2016 . Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $238,000 , $242,000 and $259,000 for the years ended December 31, 2018 , 2017 and 2016 , respectively. Expenditures for maintenance and repairs are expensed as incurred. Replaced or retired property costs, including cost of removal, are charged to the accumulated provision for depreciation. Estimated useful lives of GSWC’s utility plant, as authorized by the CPUC, are as follows: Source of water supply 30 years to 50 years Pumping 25 years to 40 years Water treatment 20 years to 35 years Transmission and distribution 25 years to 55 years Generation 40 years Other plant 7 years to 40 years Non-regulated property consists primarily of equipment utilized by ASUS and its subsidiaries for its operations. This property is stated at cost, net of accumulated depreciation, which is calculated using the straight-line method over the useful lives of the assets. |
Asset Retirement Obligation [Policy Text Block] | Asset Retirement Obligations : GSWC has a legal obligation for the retirement of its wells, which by law need to be properly capped at the time of removal. As such, GSWC incurs asset retirement obligations. GSWC records the fair value of a liability for these asset retirement obligations in the period in which they are incurred. When the liability is initially recorded, GSWC capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, GSWC either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. Retirement costs have historically been recovered through rates subsequent to the retirement costs being incurred. Accordingly, recoverability of GSWC’s asset retirement obligations are reflected as a regulatory asset. GSWC also reflects the loss or gain at settlement as a regulatory asset or liability on the balance sheet. With regards to removal costs associated with certain other long-lived assets, such as water mains, distribution and transmission assets, asset retirement obligations have not been recognized as GSWC believes there is no legal obligation to do so. There are no CPUC rules or regulations that require GSWC to remove any of its other long-lived assets. In addition, GSWC’s water pipelines are not subject to regulation by any federal regulatory agency. GSWC has franchise agreements with various municipalities in order to use the public right of way for utility purposes (i.e., operate water distribution and transmission assets), and if certain events occur in the future, GSWC could be required to remove or relocate certain of its pipelines. However, it is not possible to estimate an asset retirement amount since the timing and the amount of assets that may be required to be removed, if any, is not known. Amounts recorded for asset retirement obligations are subject to various assumptions and determinations, such as determining whether a legal obligation exists to remove assets, estimating the fair value of the costs of removal, when final removal will occur and the credit-adjusted risk-free interest rates to be utilized on discounting future liabilities. Changes that may arise over time with regard to these assumptions will change amounts recorded in the future. Revisions in estimates for timing or estimated cash flows are recognized as changes in the carrying amount of the liability and the related capitalized asset. The estimated fair value of the costs of removal was based on third-party costs. |
Impairment of Long-Lived Assets [Policy Text Block] | Impairment of Long-Lived Assets : Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable in accordance with accounting guidance for impairment or disposal of long-lived assets. Registrant would recognize an impairment loss on its regulated assets only if the carrying value amount of a long-lived asset is not recoverable from customer rates authorized by the CPUC. Impairment loss is measured as the excess of the carrying value over the amounts recovered in customer rates. For the years ended December 31, 2018 , 2017 and 2016 , no impairment loss was incurred. |
Goodwill [Policy Text Block] | Goodwill : At December 31, 2018 and 2017 , AWR had approximately $1.1 million of goodwill. The $1.1 million goodwill arose from ASUS’s acquisition of a subcontractor’s business at some of the Military Utility Privatization Subsidiaries. In accordance with the accounting guidance for testing goodwill, AWR annually assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. For 2018 , AWR’s assessment of qualitative factors did not indicate that an impairment had occurred for goodwill at ASUS. |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents : Cash and cash equivalents include short-term cash investments with an original maturity of three months or less. At times, cash and cash equivalent balances may be in excess of federally insured limits. Cash and cash equivalents are held with financial institutions with high credit standings. |
Accounts Receivable [Policy Text Block] | Accounts Receivable : Accounts receivable is reported on the balance sheet net of any allowance for doubtful accounts. The allowance for doubtful accounts is Registrant’s best estimate of the amount of probable credit losses in Registrant’s existing accounts receivable from its water and electric customers, and is determined based on historical write-off experience and the aging of account balances. Registrant reviews the allowance for doubtful accounts quarterly. Account balances are written off against the allowance when it is probable the receivable will not be recovered. When utility customers request extended payment terms, credit is extended based on regulatory guidelines, and collateral is not required. Receivables from the U.S. government include amounts due under contracts with the U.S. government to operate and maintain, and/or provide construction services for the water and/or wastewater systems at military bases. Other accounts receivable consist primarily of amounts due from third parties (non-utility customers) for various reasons, including amounts due from contractors, amounts due under settlement agreements, amounts due from other third-party prime government contractors pursuant to agreements for construction of water and/or wastewater facilities for such third-party prime contractors. The allowance for these other accounts receivable is based on Registrant’s evaluation of the receivable portfolio under current conditions and a review of specific problems and such other factors that, in Registrant’s judgment, should be considered in estimating losses. Allowances for doubtful accounts are disclosed in Note 17. |
Materials and Supplies [Policy Text Block] | Materials and Supplies : Materials and supplies are stated at the lower of cost or net realizable value. Cost is computed using average cost. Major classes of materials include pipe, hydrants and valves. |
Interest [Policy Text Block] | Interest : Interest incurred during the construction of capital assets has generally not been capitalized for financial reporting purposes as such policy is not followed in the ratemaking process. Interest expense is generally recovered through the regulatory process. However, the CPUC has authorized certain capital projects to be filed for revenue recovery with advice letters when those projects are completed. During the time that such projects are under development and construction, GSWC may accrue an allowance for funds used during construction (“AFUDC”) on the incurred expenditures to offset the cost of financing project construction. For the year ended December 31, 2018 , $156,000 of AFUDC was recorded. For the year ended December 31, 2017 , no AFUDC was recorded and for the year ended December 31, 2016 , $101,000 , of AFUDC was recorded related to capital projects based on a weighted cost of capital of 8.34% for water and a cost of debt of 6.96% for electric, as approved by the CPUC. |
Debt Issuance Costs and Redemption Premiums [Policy Text Block] | Debt Issuance Costs and Redemption Premiums : Original debt issuance costs are deducted from the carrying value of the associated debt liability and amortized over the lives of the respective issues. Premiums paid on the early redemption of debt, which is reacquired through refunding, are deferred and amortized over the life of the debt issued to finance the refunding as Registrant normally receives recovery of these costs in rates. |
Advance for Construction and Contributions in Aid [Policy Text Block] | Advances for Construction and Contributions in Aid of Construction : Advances for construction represent amounts advanced by developers for the cost to construct water system facilities in order to extend water service to their properties. Advances are refundable in equal annual installments, generally over 40 years . In certain instances, GSWC makes refunds on these advances over a specific period of time based on operating revenues related to the main or as new customers are connected to receive service from the main. Contributions in aid of construction are similar to advances but require no refunding. Generally, GSWC depreciates contributed property and amortizes contributions in aid of construction at the composite rate of the related property. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 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. The table below estimates the fair value of long-term debt issued by GSWC. Rates available to GSWC at December 31, 2018 and 2017 for debt with similar terms and remaining maturities were used to estimate fair value for long-term debt. Changes in the assumptions will produce differing results. 2018 2017 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—GSWC (1) $ 324,978 $ 387,889 $ 325,265 $ 424,042 (1) Excludes debt issuance costs and redemption premiums. 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). Publicly issued notes, private placement notes and other long-term debt are measured using current U.S. corporate bond yields for similar debt instruments and are classified as Level 2. The following table sets forth by level, within the fair value hierarchy, GSWC’s long-term debt measured at fair value as of December 31, 2018 : (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—GSWC — $ 387,889 — $ 387,889 |
Stock-Based Awards [Policy Text Block] | Stock-Based Awards : AWR has issued stock-based awards to its employees under stock incentive plans. AWR has also issued stock-based awards to its Board of Directors under non-employee directors stock plans. Registrant applies the provisions in the accounting guidance for share-based payments in accounting for all of its stock-based awards. See Note 13 for further discussion. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements : Accounting Pronouncements Adopted in 2018 In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) . Under this guidance, an entity recognizes revenue when it transfers goods or services to customers in an amount that reflects what the entity expects in exchange for the goods or services. Registrant adopted this guidance under the modified retrospective approach beginning January 1, 2018. The adoption of this guidance did not have a material impact on Registrant's measurement or timing of revenue recognition but required additional disclosures (see Note 2). In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which changes the financial statement presentation for the costs of defined benefit pension plans and other retirement benefits. Prior to this guidance, the components of net benefit cost for retirement plans (such as service cost, interest cost, expected return on assets, and the amortization of prior service costs and actuarial gains and losses) were aggregated as operating costs for financial statement presentation purposes. Under the new guidance, the service cost component continues to be presented as operating costs, while all other components of net benefit cost are presented outside of operating income. The new guidance also limits any capitalization of net periodic benefits cost to the service cost component. Registrant adopted the new guidance beginning January 1, 2018, which did not have a material impact on its financial statements. Prior period amounts have been reclassified on the income statements to conform to the current-period presentation. Registrant used its prior year's disclosure of its pension and other employee benefit plans as an estimation for applying the retrospective presentation requirements of this guidance. The components of net periodic benefits cost, other than the service cost component, have been included in the line item “Other, net” in Registrant's income statements (see Note 12). In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash . The guidance requires restricted cash to be combined with cash and cash equivalents when reconciling the beginning and end of period cash balances in the statement of cash flows. The adoption of this new guidance in 2018 did not have an impact on Registrant's cash flow statements. In August 2016, the FASB also issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The adoption of this new guidance in 2018 did not have an impact on Registrant's cash flow statements. Accounting Pronouncements to be Adopted in Future Periods In February 2016, the FASB issued a new lease accounting standard, Leases (ASC 842), which replaces the prior lease guidance, (ASC 840). Under the new standard, lessees will recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). For income statement purposes, leases will be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. Registrant will apply the new standard on January 1, 2019 and any periods presented prior to January 1, 2019 will not be adjusted to conform to the new lease standard. Registrant examined all current agreements accounted for under ASC 840, as well as other agreements which were not recorded as leases under ASC 840, and applied the lease criteria under ASC 842 to assess whether these agreements qualify as leases under the new standard. Registrant elected the practical expedient under ASU 2018-01 Land Easement Practical Expedient for Transition to Topic 842 . The discount rates used to value the lease liabilities were based on Registrant's incremental borrowing rates for a similar term as the underlying leases' terms. Based on its current lease portfolio and the analysis of the new standard performed to-date, Registrant estimates an increase in consolidated assets and liabilities of less than $10 million, representing right-of-use assets and lease liabilities as a result of the adoption of ASC 842. In August 2018, the FASB issued ASU 2018-15-Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . Under this standard, entities that enter into cloud computing service arrangements will apply existing internal-use software guidance to determine which implementation costs are eligible for capitalization. Under that guidance, implementation costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred. The new guidance is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. Registrant will adopt this guidance effective January 1, 2019 and does not expect the adoption to have a significant impact on its financial statements. In August 2018, the FASB issued ASU 2018-14- Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans . This update removes disclosures to pension plans and other post-retirement benefit plans that no longer are considered cost beneficial, clarifies the specific disclosure requirements and adds disclosure requirements deemed relevant. The amendments in this ASU are effective for fiscal years ending after December 15, 2020 and will be applied on a retrospective basis to all periods presented. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of significant accounting policies | |
Schedule of estimates of the fair value of long-term debt [Table Text Block] | The table below estimates the fair value of long-term debt issued by GSWC. Rates available to GSWC at December 31, 2018 and 2017 for debt with similar terms and remaining maturities were used to estimate fair value for long-term debt. Changes in the assumptions will produce differing results. 2018 2017 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—GSWC (1) $ 324,978 $ 387,889 $ 325,265 $ 424,042 |
Schedule of estimated useful lives of utility plant, as authorized by the CPUC | Estimated useful lives of GSWC’s utility plant, as authorized by the CPUC, are as follows: Source of water supply 30 years to 50 years Pumping 25 years to 40 years Water treatment 20 years to 35 years Transmission and distribution 25 years to 55 years Generation 40 years Other plant 7 years to 40 years |
Schedule of long -term debt measured at fair value [Table Text Block] | The following table sets forth by level, within the fair value hierarchy, GSWC’s long-term debt measured at fair value as of December 31, 2018 : (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—GSWC — $ 387,889 — $ 387,889 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | (dollar in thousands) For The Year Ended December 31, 2018 Water: Tariff-based revenues $ 298,818 CPUC-approved surcharges (cost-recovery activities) 2,962 Other 1,813 Water revenues from contracts with customers 303,593 WRAM over-collection (alternative revenue program) (8,335 ) Total water revenues 295,258 Electric: Tariff-based revenues 34,501 CPUC-approved surcharges (cost-recovery activities) 214 Electric revenues from contracts with customers 34,715 BRRAM over-collection (alternative revenue program) (365 ) Total electric revenues 34,350 Contracted services: Water 62,273 Wastewater 44,935 Contracted services revenues from contracts with customers 107,208 Total revenues $ 436,816 |
Contract with Customer, Asset and Liability [Table Text Block] | The opening and closing balances of the receivable from the U.S. government, contract assets and contract liabilities from contracts with customers, which related entirely to ASUS, are as follows: (dollar in thousands) December 31, 2018 January 1, 2018 Receivable from the U.S. government $ 61,126 $ 40,150 Contract assets $ 24,447 $ 30,388 Contract liabilities $ 7,530 $ 3,911 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: December 31, (dollars in thousands) 2018 2017 GSWC Water Revenue Adjustment Mechanism and Modified Cost Balancing Account $ 17,763 $ 29,556 Costs deferred for future recovery on Aerojet case 9,516 10,656 Pensions and other post-retirement obligations (Note 12) 33,124 33,019 Derivative unrealized loss (Note 5) 311 2,941 Low income rate assistance balancing accounts 2,784 5,972 General rate case memorandum accounts 5,054 10,522 Other regulatory assets 15,656 16,393 Excess deferred income taxes (Note 11) (81,465 ) (83,231 ) Flow-through taxes, net (Note 11) (15,273 ) (17,716 ) Tax Cuts and Jobs Act ("Tax Act") memorandum accounts (8,293 ) — Various refunds to customers (7,517 ) (6,070 ) Total $ (28,340 ) $ 2,042 |
Utility Plant and Intangible _2
Utility Plant and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Utility Plant and Intangible Assets | |
Schedule of Public Utility Property Plant and Equipment Components [Table Text Block] | The following table shows Registrant’s utility plant (regulated utility plant and non-regulated utility property) by major asset class: AWR GSWC December 31, (dollars in thousands) 2018 2017 2018 2017 Water Land $ 14,890 $ 14,895 $ 14,890 $ 14,895 Intangible assets 29,412 29,396 29,413 29,378 Source of water supply 91,349 88,168 91,349 88,168 Pumping 182,673 178,252 182,673 178,252 Water treatment 82,198 78,999 82,198 78,999 Transmission and distribution 1,142,105 1,064,271 1,142,105 1,064,271 Other 131,419 120,820 106,907 105,246 1,674,046 1,574,801 1,649,535 1,559,209 Electric Transmission and distribution 82,257 76,188 82,257 76,188 Generation 12,583 12,583 12,583 12,583 Other (1) 11,224 10,955 11,224 10,955 106,064 99,726 106,064 99,726 Less — accumulated depreciation (561,855 ) (533,370 ) (551,244 ) (524,481 ) Construction work in progress 78,055 63,835 76,737 63,486 Net utility plant $ 1,296,310 $ 1,204,992 $ 1,281,092 $ 1,197,940 (1) Includes intangible assets of $1.2 million for the years ended December 31, 2018 and 2017 for studies performed in association with the electricity segment of the Registrant’s operations. |
Schedule of components of intangible assets | As of December 31, 2018 and 2017 , intangible assets consist of the following: Weighted Average Amortization AWR December 31, GSWC December 31, (dollars in thousands) Period 2018 2017 2018 2017 Intangible assets : Conservation programs 3 years $ 9,486 $ 9,486 $ 9,486 $ 9,486 Water and service rights (2) 30 years 8,695 8,695 8,124 8,124 Water planning studies 14 years 12,641 13,011 12,641 13,011 Total intangible assets 30,822 31,192 30,251 30,621 Less — accumulated amortization (24,399 ) (23,331 ) (24,268 ) (23,221 ) Intangible assets, net of amortization $ 6,423 $ 7,861 $ 5,983 $ 7,400 Intangible assets not subject to amortization (3) $ 422 $ 422 $ 404 $ 404 (2) Includes intangible assets of $571,000 for contracted services included in "Other Property and Investments" on the consolidated balance sheets as of December 31, 2018 and 2017 . (3) The intangible assets not subject to amortization primarily consist of organization and consent fees. |
Schedule of estimated future consolidated amortization expenses related to intangible assets | Estimated future consolidated amortization expenses related to intangible assets for the succeeding five years are (in thousands): Amortization Expense 2019 $ 189 2020 90 2021 12 2022 12 2023 12 Total $ 315 |
Schedule of reconciliation of the beginning and ending aggregate carrying amount of the asset retirement obligations | The following is a reconciliation of the beginning and ending aggregate carrying amount of asset retirement obligations, which are included in “Other Credits” on the balance sheets as of December 31, 2018 and 2017 : (dollars in thousands) GSWC Obligation at December 31, 2016 $ 4,393 Additional liabilities incurred 562 Liabilities settled (229 ) Accretion 237 Obligation at December 31, 2017 $ 4,963 Additional liabilities incurred 256 Liabilities settled (46 ) Accretion 55 Obligation at December 31, 2018 $ 5,228 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
GSWC | |
Derivative instruments | |
Schedule of changes in the fair value of the derivative | The following table presents changes in the fair value of GSWC’s derivatives for the years ended December 31, 2018 and 2017 : (dollars in thousands) 2018 2017 Balance, at beginning of the period $ (2,941 ) $ (4,901 ) Unrealized gain on purchased power contracts 2,630 1,960 Balance, at end of the period $ (311 ) $ (2,941 ) |
Earnings Per Share and Capita_2
Earnings Per Share and Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 for calculating basic net income per share: Basic: For The Years Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Net income $ 63,871 $ 69,367 $ 59,743 Less: (a) Distributed earnings to common shareholders 38,937 36,417 33,408 Distributed earnings to participating securities 204 197 187 Undistributed earnings 24,730 32,753 26,148 (b) Undistributed earnings allocated to common shareholders 24,601 32,577 26,003 Undistributed earnings allocated to participating securities 129 176 145 Total income available to common shareholders, basic (a)+(b) $ 63,538 $ 68,994 $ 59,411 Weighted average Common Shares outstanding, basic 36,733 36,638 36,552 Basic earnings per Common Share $ 1.73 $ 1.88 $ 1.63 |
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 Years Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Common shareholders earnings, basic $ 63,538 $ 68,994 $ 59,411 Undistributed earnings for dilutive stock options and restricted stock units 129 176 145 Total common shareholders earnings, diluted $ 63,667 $ 69,170 $ 59,556 Weighted average Common Shares outstanding, basic 36,733 36,638 36,552 Stock-based compensation (1) 203 206 198 Weighted average Common Shares outstanding, diluted 36,936 36,844 36,750 Diluted earnings per Common Share $ 1.72 $ 1.88 $ 1.62 (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 35,560 stock options and 197,896 restricted stock units, including performance awards, at December 31, 2018 were deemed to be outstanding in accordance with accounting guidance on earnings per share. |
Bank Debt (Tables)
Bank Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Bank Debt | |
Schedule of Short-term Debt [Table Text Block] | AWR’s borrowing activities (excluding letters of credit) for the years ending December 31, 2018 and 2017 were as follows: December 31, (in thousands, except percent) 2018 2017 Balance Outstanding at December 31, $ 95,500 $ 59,000 Interest Rate at December 31, 3.19 % 2.28 % Average Amount Outstanding $ 69,559 $ 65,242 Weighted Average Annual Interest Rate 2.66 % 1.69 % Maximum Amount Outstanding $ 95,500 $ 102,500 AWR’s (parent) borrowing activities (excluding letters of credit) for the years ended December 31, 2018 and 2017 were as follows: December 31, (in thousands, except percent) 2018 2017 Balance Outstanding at December 31, $ 95,500 $ 59,000 Interest Rate at December 31, 3.19 % 2.28 % Average Amount Outstanding $ 69,559 $ 65,242 Weighted Average Annual Interest Rate 2.66 % 1.69 % Maximum Amount Outstanding $ 95,500 $ 102,500 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of annual maturities of all long-term debt, including capitalized leases | Annual maturities of all long-term debt at December 31, 2018 are as follows (in thousands): 2019 $ 40,320 2020 345 2021 365 2022 390 2023 404 Thereafter 283,154 Total $ 324,978 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of significant components of the deferred tax assets and liabilities from continuing operations | The significant components of the deferred tax assets and liabilities as reflected in the balance sheets at December 31, 2018 and 2017 are: AWR GSWC December 31, December 31, (dollars in thousands) 2018 2017 2018 2017 Deferred tax assets: Regulatory-liability-related (1) $ 33,419 $ 34,567 $ 33,419 $ 34,567 Contributions and advances 5,281 4,679 5,666 5,022 Other 2,988 1,934 3,310 1,625 Total deferred tax assets $ 41,688 $ 41,180 $ 42,395 $ 41,214 Deferred tax liabilities: Fixed assets $ (131,413 ) $ (130,115 ) $ (135,617 ) $ (134,437 ) Regulatory-asset-related: depreciation and other (18,146 ) (16,851 ) (18,146 ) (16,851 ) Balancing and memorandum accounts (non-flow-through) (6,325 ) (9,905 ) (6,873 ) (10,706 ) Total deferred tax liabilities (155,884 ) (156,871 ) (160,636 ) (161,994 ) Accumulated deferred income taxes - net $ (114,196 ) $ (115,691 ) $ (118,241 ) $ (120,780 ) |
Schedule of current and deferred components of income tax expense from continuing operations | The current and deferred components of income tax expense are as follows: AWR Year Ended December 31, (dollars in thousands) 2018 2017 2016 Current Federal $ 17,252 $ 20,978 $ 2,297 State 6,538 5,844 4,798 Total current tax expense $ 23,790 $ 26,822 $ 7,095 Deferred Federal $ (4,334 ) $ 11,543 $ 26,715 State (1,439 ) 609 925 Total deferred tax (benefit) expense (5,773 ) 12,152 27,640 Total income tax expense $ 18,017 $ 38,974 $ 34,735 GSWC Year Ended December 31, (dollars in thousands) 2018 2017 2016 Current Federal $ 14,488 $ 15,044 $ (3,115 ) State 5,932 5,045 3,625 Total current tax expense $ 20,420 $ 20,089 $ 510 Deferred Federal $ (5,531 ) $ 11,770 $ 25,864 State (1,286 ) 2,200 2,235 Total deferred tax (benefit) expense (6,817 ) 13,970 28,099 Total income tax expense $ 13,603 $ 34,059 $ 28,609 |
Schedule of reconciliations of the effective tax rates to the federal statutory rate | The reconciliations of the effective tax rates to the federal statutory rate are as follows: AWR Year Ended December 31, (dollars in thousands) 2018 2017 2016 Federal taxes on pretax income at statutory rate (21% in 2018; 35% in 2017 and 2016) $ 17,196 $ 37,919 $ 33,067 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 3,693 4,382 3,029 Change in tax rate (14 ) (82 ) — Excess deferred tax amortization (2,101 ) — — Flow-through on fixed assets 429 845 994 Flow-through on pension costs 373 412 (247 ) Flow-through on removal costs (1,445 ) (1,980 ) (2,068 ) Domestic production activities deduction (26 ) (1,421 ) (78 ) Investment tax credit (69 ) (93 ) (83 ) Other – net (19 ) (1,008 ) 121 Total income tax expense from operations $ 18,017 $ 38,974 $ 34,735 Pretax income from operations $ 81,888 $ 108,341 $ 94,478 Effective income tax rate 22.0 % 36.0 % 36.8 % GSWC Year Ended December 31, (dollars in thousands) 2018 2017 2016 Federal taxes on pretax income at statutory rate (21% in 2018; 35% in 2017 and 2016) $ 12,939 $ 30,736 $ 26,452 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 3,335 4,924 3,118 Change in tax rate — 1,063 — Excess deferred tax amortization (2,101 ) — — Flow-through on fixed assets 429 845 994 Flow-through on pension costs 373 412 (247 ) Flow-through on removal costs (1,445 ) (1,980 ) (2,068 ) Domestic production activities deduction (25 ) (1,148 ) — Investment tax credit (69 ) (93 ) (82 ) Other – net 167 (700 ) 442 Total income tax expense from operations $ 13,603 $ 34,059 $ 28,609 Pretax income from operations $ 61,615 $ 87,816 $ 75,578 Effective income tax rate 22.1 % 38.8 % 37.9 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Employee benefit plans | |
Schedule of Pension Plan's funded status and amounts recognized in balance sheets and the components of net pension cost and accrued post-retirement liability | The following table sets forth the Pension Plan’s and post-retirement medical plan’s funded status and amounts recognized in Registrant’s balance sheets and the components of net pension cost and accrued liability at December 31, 2018 and 2017 : Pension Benefits Post-Retirement Medical Benefits (dollars in thousands) 2018 2017 2018 2017 Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 207,690 $ 180,364 $ 8,491 $ 8,802 Service cost 5,342 4,999 218 227 Interest cost 7,646 7,904 292 324 Plan amendment 3,626 — — — Actuarial (gain) loss (21,717 ) 20,397 (701 ) (355 ) Benefits/expenses paid (6,505 ) (5,974 ) (414 ) (507 ) Projected benefit obligation at end of year $ 196,082 $ 207,690 $ 7,886 $ 8,491 Changes in Plan Assets: Fair value of plan assets at beginning of year $ 173,648 $ 150,872 $ 11,053 $ 10,538 Actual return on plan assets (10,626 ) 22,246 (629 ) 1,022 Employer contributions 6,012 6,504 — — Benefits/expenses paid (6,505 ) (5,974 ) (414 ) (507 ) Fair value of plan assets at end of year $ 162,529 $ 173,648 $ 10,010 $ 11,053 Funded Status: Net amount recognized as accrued pension cost $ (33,553 ) $ (34,042 ) $ 2,124 $ 2,562 Pension Benefits Post-Retirement Medical Benefits (dollars in thousands) 2018 2017 2018 2017 Amounts recognized on the balance sheets: Non-current assets $ — $ — $ 2,124 $ 2,562 Current liabilities — — — — Non-current liabilities (33,553 ) (34,042 ) — — Net amount recognized $ (33,553 ) $ (34,042 ) $ 2,124 $ 2,562 Amounts recognized in regulatory assets consist of: Prior service cost (credit) $ 3,626 $ — $ — $ — Net (gain) loss 31,587 32,761 (4,459 ) (5,650 ) Regulatory assets (liabilities) 35,213 32,761 (4,459 ) (5,650 ) Unfunded accrued pension cost (1,660 ) 1,281 2,335 3,088 Net liability (asset) recognized $ 33,553 $ 34,042 $ (2,124 ) $ (2,562 ) Changes in plan assets and benefit obligations recognized in regulatory assets: Regulatory asset at beginning of year $ 32,761 $ 25,828 $ (5,650 ) $ (5,515 ) Net loss (gain) 81 7,856 421 (910 ) New prior service cost 3,626 — — — Amortization of net gain (loss) (1,255 ) (923 ) 770 775 Total change in regulatory asset 2,452 6,933 1,191 (135 ) Regulatory asset (liability) at end of year $ 35,213 $ 32,761 $ (4,459 ) $ (5,650 ) Net periodic pension costs $ 3,070 $ 4,121 $ (752 ) $ (690 ) Change in regulatory asset 2,452 6,933 1,191 (135 ) Total recognized in net periodic pension cost and regulatory asset (liability) $ 5,522 $ 11,054 $ 439 $ (825 ) Estimated amounts that will be amortized from regulatory asset over the next fiscal year: Prior service (cost) credit $ (434 ) $ — $ — $ — Net gain (loss) $ (1,435 ) $ (1,378 ) $ 598 $ 727 Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 196,082 $ 207,690 $ 7,886 $ 8,491 Accumulated benefit obligation $ 183,036 $ 190,438 N/A N/A Fair value of plan assets $ 162,529 $ 173,648 $ 10,010 $ 11,053 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 4.43 % 3.76 % 4.20 % 3.52 % Rate of compensation increase * * N/A N/A * Age-graded ranging from 3.0% to 8.0% . |
Schedule of components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool | The components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool, for 2018 , 2017 and 2016 are as follows: Pension Benefits Post-Retirement Medical Benefits (dollars in thousands, except percent) 2018 2017 2016 2018 2017 2016 Components of Net Periodic Benefits Cost: Service cost $ 5,342 $ 4,999 $ 5,094 $ 218 $ 227 $ 247 Interest cost 7,646 7,904 7,910 292 324 371 Expected return on plan assets (11,172 ) (9,705 ) (9,838 ) (493 ) (466 ) (489 ) Amortization of prior service cost (credit) — — 49 — — (34 ) Amortization of actuarial (gain) loss 1,254 923 911 (769 ) (775 ) (701 ) Net periodic pension cost under accounting standards $ 3,070 $ 4,121 $ 4,126 $ (752 ) $ (690 ) $ (606 ) Regulatory adjustment — 465 859 — — — Total expense recognized, before surcharges and allocation to overhead pool $ 3,070 $ 4,586 $ 4,985 $ (752 ) $ (690 ) $ (606 ) Weighted-average assumptions used to determine net periodic cost: Discount rate 3.76 % 4.44 % 4.65 % 3.52 % 3.97 % 4.25 % Expected long-term return on plan assets 6.50 % 6.50 % 7.00 % * * * Rate of compensation increase ** ** ** N/A N/A N/A * 6.0% for union plan and 4.2% for non-union (net of income taxes) in 2018 and 2017 and 7.0% for union plan and 4.20 % for non-union (net of income taxes) for 2016 . ** Age-graded ranging from 3.0% to 8.0% . |
Schedule of Actual Allocation of Plan Assets [Table Text Block] | The Committee approves the target asset allocations. Registrant’s pension and post-retirement plan weighted-average asset allocations at December 31, 2018 and 2017 , by asset category are as follows: Pension Benefits Post-Retirement Medical Benefits Asset Category 2018 2017 2018 2017 Actual Asset Allocations : Equity securities 53 % 57 % 59 % 59 % Debt securities 43 % 39 % 39 % 37 % Real Estate Funds 4 % 4 % — % — % Cash equivalents — % — % 2 % 4 % Total 100 % 100 % 100 % 100 % |
Schedule of pension and post-retirement plan target asset allocations | Equity securities did not include AWR’s Common Shares as of December 31, 2018 and 2017 . Target Asset Allocations for 2018: Pension Benefits Post-retirement Medical Benefits Equity securities 60 % 60 % Debt securities 40 % 40 % Total 100 % 100 % |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block] | The following tables set forth the fair value, measured by net asset value, of the pension investment assets as of December 31, 2018 and 2017 : Net Asset Value as of December 31, 2018 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 590 — N/A N/A Fixed income fund 70,642 — Daily Daily Equity securities : U.S. small/mid cap funds 22,313 — Daily Daily U.S. large cap funds 46,133 — Daily Daily International funds 15,548 — Daily Daily Total equity funds 83,994 — Real estate funds 7,303 — Daily Daily Total $ 162,529 — Net Asset Value as of December 31, 2017 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 489 — N/A N/A Fixed income fund 66,669 — Daily Daily Equity securities : U.S. small/mid cap funds 26,998 — Daily Daily U.S. large cap funds 53,985 — Daily Daily International funds 17,893 — Daily Daily Total equity funds 98,876 Real estate funds 7,614 — Daily Daily Total $ 173,648 — |
Schedule of estimated future benefit payments | stimated future benefit payments at December 31, 2018 for the next five years and thereafter are as follows (in thousands): Pension Benefits Post-Retirement Medical Benefits 2019 $ 7,343 $ 585 2020 7,934 633 2021 8,597 709 2022 9,283 749 2023 9,860 764 Thereafter 57,832 3,172 Total $ 100,849 $ 6,612 |
Schedule of effects of one-percentage-point change in assumed health care cost trend rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects on the post-retirement medical plan: (dollars in thousands) 1-Percentage-Point Increase 1-Percentage-Point Decrease Effect on total of service and interest cost components $ 41 $ (35 ) Effect on post-retirement benefit obligation $ 759 $ (659 ) |
Schedule of pension and post-retirement plans' investment assets measured at fair value | The following tables set forth by level, within the fair value hierarchy, the post-retirement plan's investment assets measured at fair value as of December 31, 2018 and 2017 : Fair Value as of December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 263 — — $ 263 Fixed income 3,871 — — 3,871 U.S. equity securities 5,876 — — 5,876 Total investments measured at fair value $ 10,010 — — $ 10,010 Fair Value as of December 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 189 — — $ 189 Fixed income 4,364 — — 4,364 U.S. equity securities 6,507 — — 6,507 Total investments measured at fair value $ 11,060 — — $ 11,060 |
Supplemental Employee Retirement Plan [Member] | |
Employee benefit plans | |
Schedule of Pension Plan's funded status and amounts recognized in balance sheets and the components of net pension cost and accrued post-retirement liability | The following provides a reconciliation of benefit obligations, funded status of the SERP, as well as a summary of significant estimates at December 31, 2018 and 2017 : (dollars in thousands) 2018 2017 Change in Benefit Obligation: Benefit obligation at beginning of year $ 24,062 $ 20,783 Service cost 1,096 930 Interest cost 888 893 Actuarial (gain) loss (1,104 ) 1,872 Benefits paid (425 ) (416 ) Benefit obligation at end of year $ 24,517 $ 24,062 Changes in Plan Assets: Fair value of plan assets at beginning and end of year — — Funded Status: Net amount recognized as accrued cost $ (24,517 ) $ (24,062 ) (in thousands) 2018 2017 Amounts recognized on the balance sheets: Current liabilities $ (433 ) $ (409 ) Non-current liabilities (24,084 ) (23,653 ) Net amount recognized $ (24,517 ) $ (24,062 ) Amounts recognized in regulatory assets consist of: Prior service cost $ — $ — Net loss 5,403 7,556 Regulatory assets 5,403 7,556 Unfunded accrued cost 19,114 16,506 Net liability recognized $ 24,517 $ 24,062 Changes in plan assets and benefit obligations recognized in regulatory assets consist of: Regulatory asset at beginning of year $ 7,556 $ 6,474 Net (gain) loss (1,104 ) 1,872 Amortization of prior service credit — (12 ) Amortization of net loss (1,049 ) (778 ) Total change in regulatory asset (2,153 ) 1,082 Regulatory asset at end of year $ 5,403 $ 7,556 Net periodic pension cost $ 3,033 $ 2,612 Change in regulatory asset (2,153 ) 1,082 Total recognized in net periodic pension and regulatory asset $ 880 $ 3,694 Estimated amounts that will be amortized from regulatory asset over the next fiscal year: Initial net asset (obligation) $ — $ — Prior service cost — — Net loss (471 ) (1,049 ) Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 24,517 $ 24,062 Accumulated benefit obligation 21,229 20,742 Fair value of plan assets — — Weighted-average assumptions used to determine benefit obligations: Discount rate 4.40 % 3.72 % Rate of compensation increase 4.00 % 4.00 % |
Schedule of components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool | The components of SERP expense, before allocation to the overhead pool, for 2018 , 2017 and 2016 are as follows: (dollars in thousands, except percent) 2018 2017 2016 Components of Net Periodic Benefits Cost: Service cost $ 1,096 $ 930 $ 799 Interest cost 888 893 743 Amortization of prior service cost — 12 25 Amortization of net loss 1,049 777 292 Net periodic pension cost $ 3,033 $ 2,612 $ 1,859 Weighted-average assumptions used to determine net periodic cost: Discount rate 3.72 % 4.34 % 4.61 % Rate of compensation increase 4.00 % 4.00 % 4.00 % |
Schedule of estimated future benefit payments | Estimated future benefit payments for the SERP at December 31, 2018 for the next ten years are as follows (in thousands): 2019 $ 433 2020 1,339 2021 1,396 2022 1,387 2023 1,378 Thereafter 8,003 Total $ 13,936 |
Schedule of pension and post-retirement plans' investment assets measured at fair value | The following tables set forth by level, within the fair value hierarchy, the Rabbi Trust investment assets measured at fair value as of December 31, 2018 and 2017 : Fair Value as of December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 166 — — $ 166 Fixed income securities 6,251 — — 6,251 Equity securities 9,995 — — 9,995 Total investments measured at fair value $ 16,412 — — $ 16,412 Fair Value as of December 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 45 — — $ 45 Fixed income securities 6,072 — — 6,072 Equity securities 9,110 — — 9,110 Total investments measured at fair value $ 15,227 — — $ 15,227 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation expenses | The following table presents share-based compensation expenses for the years ended December 31, 2018 , 2017 and 2016 . These expenses resulting from restricted stock units, including performance awards, are included in administrative and general expenses in AWR's and GSWC’s statements of income: AWR GSWC For The Years Ended December 31, For The Years Ended December 31, (in thousands) 2018 2017 2016 2018 2017 2016 Stock-based compensation related to: Restricted stock units $ 3,851 $ 2,885 $ 2,538 $ 3,397 $ 2,420 $ 2,118 Total stock-based compensation expense $ 3,851 $ 2,885 $ 2,538 $ 3,397 $ 2,420 $ 2,118 |
Schedule of assumptions used to estimate fair value of each option grant on the grant date using the Black-Scholes option-pricing model | will be earned based on Registrant’s TSR compared to the TSR for a specific peer group of investor-owned water companies. A summary of the status of Registrant’s outstanding performance awards to officers as of December 31, 2018 , and changes during the year ended December 31, 2018 , is presented below: Number of Weighted Average Performance awards at January 1, 2018 97,879 $ 41.49 Granted 25,195 55.88 Performance criteria adjustment 3,803 43.98 Vested (31,216 ) 41.55 Performance awards at December 31, 2018 95,661 $ 45.36 |
Summary of stock option activity | A summary of stock option activity as of December 31, 2018 and changes during the year ended December 31, 2018 , are presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at January 1, 2018 69,202 $ 16.87 Exercised (32,142 ) 16.98 Forfeited or expired (1,500 ) 17.06 Options outstanding at December 31, 2018 35,560 $ 16.76 0.99 $ 1,788,028 Options exercisable at December 31, 2018 35,560 $ 16.76 0.99 $ 1,788,028 |
Summary of the status of Registrant's outstanding restricted stock units to employees and directors | A summary of the status of Registrant’s outstanding RSUs, excluding performance awards, to employees and directors as of December 31, 2018 , and changes during the year ended December 31, 2018 , is presented below: Number of Restricted Share Units Weighted Average Grant-Date Value Restricted share units at January 1, 2018 107,287 $ 32.75 Granted 33,655 55.45 Vested (37,509 ) 47.29 Forfeited (1,198 ) 46.94 Restricted share units at December 31, 2018 102,235 $ 34.73 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule of estimated future minimum payments under purchased water supply commitments | GSWC’s estimated future minimum payments under these purchased water supply commitments at December 31, 2018 are as follows (in thousands): 2019 $ 407 2020 407 2021 407 2022 407 2023 407 Thereafter 2,410 Total $ 4,445 |
Schedule of future minimum payments under long-term non-cancelable operating leases | Registrant’s future minimum payments under long-term non-cancelable operating leases at December 31, 2018 are as follows (in thousands): 2019 $ 2,818 2020 2,530 2021 1,497 2022 1,007 2023 546 Thereafter 605 Total $ 9,003 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of reporting segments information | Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC. As Of And For The Year Ended December 31, 2018 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 295,258 $ 34,350 $ 107,208 $ — $ 436,816 Operating income 74,342 6,220 20,414 7 100,983 Interest expense, net 18,403 1,328 (327 ) 451 19,855 Utility Plant 1,218,468 62,624 15,218 — 1,296,310 Depreciation and amortization expense (1) 36,137 2,258 2,030 40,425 Income tax expense/(benefit) 12,391 1,212 4,939 (525 ) 18,017 Capital additions 110,934 5,420 10,207 — 126,561 As Of And For The Year Ended December 31, 2017 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 306,332 $ 33,969 $ 100,302 $ — $ 440,603 Operating income (loss) (2) 98,678 7,193 21,320 (96 ) 127,095 Interest expense, net 18,909 1,380 255 248 20,792 Utility Plant 1,137,995 59,945 7,052 — 1,204,992 Depreciation and amortization expense (1) 35,706 2,146 1,179 — 39,031 Income tax expense/(benefit) 32,212 1,847 7,136 (2,221 ) 38,974 Capital additions 104,546 5,941 2,639 — 113,126 As Of And For The Year Ended December 31, 2016 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 302,931 $ 35,771 $ 97,385 $ — $ 436,087 Operating income (loss) (2) 87,331 7,856 19,024 (19 ) 114,192 Interest expense, net 19,696 1,337 68 134 21,235 Utility Plant 1,089,031 56,280 5,615 — 1,150,926 Depreciation and amortization expense (1) 35,777 2,027 1,046 — 38,850 Income tax expense/(benefit) 25,894 2,715 6,672 (546 ) 34,735 Capital additions 120,850 7,063 1,954 — 129,867 |
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): December 31, 2018 2017 Total utility plant $ 1,296,310 $ 1,204,992 Other assets 205,123 211,742 Total consolidated assets $ 1,501,433 $ 1,416,734 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Allowance for Doubtful Accounts | |
Schedule of provision for doubtful accounts charged to expense and accounts written off, net of recoveries | The table below presents Registrant’s provision for doubtful accounts charged to expense and accounts written off, net of recoveries. Provisions included in 2018 , 2017 , and 2016 for AWR and GSWC are as follows: AWR December 31, (dollars in thousands) 2018 2017 2016 Balance at beginning of year $ 1,041 $ 764 $ 944 Provision charged to expense 841 989 619 Accounts written off, net of recoveries (931 ) (712 ) (799 ) Balance at end of year $ 951 $ 1,041 $ 764 Allowance for doubtful accounts related to accounts receivable-customer $ 892 $ 806 $ 702 Allowance for doubtful accounts related to other accounts receivable 59 235 62 Total allowance for doubtful accounts $ 951 $ 1,041 $ 764 GSWC December 31, (dollars in thousands) 2018 2017 2016 Balance at beginning of year $ 865 $ 761 $ 919 Provision charged to expense 850 816 627 Accounts written off, net of recoveries (764 ) (712 ) (785 ) Balance at end of year $ 951 $ 865 $ 761 Allowance for doubtful accounts related to accounts receivable-customer $ 892 $ 806 $ 702 Allowance for doubtful accounts related to other accounts receivable 59 59 59 Total allowance for doubtful accounts $ 951 $ 865 $ 761 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of non-cash financing and investing activities and other cash flow information | The following table sets forth non-cash financing and investing activities and other cash flow information (in thousands). AWR GSWC December 31, December 31, 2018 2017 2016 2018 2017 2016 Taxes and Interest Paid: Income taxes paid, net $ 21,084 $ 13,615 $ 10,916 $ 19,448 $ 4,822 $ 8,437 Interest paid, net of capitalized interest 23,471 22,762 22,305 22,721 22,282 22,078 Non-Cash Transactions: Accrued payables for investment in utility plant $ 27,403 $ 20,131 $ 17,236 $ 27,403 $ 20,128 $ 17,207 Property installed by developers and conveyed 2,082 2,082 5,395 2,082 2,082 5,395 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | Registrant's business is seasonal, and it is management’s opinion that comparisons of earnings for the quarterly periods do not reflect overall trends and changes in Registrant’s operations. AWR For The Year Ended December 31, 2018 (in thousands, except per share amounts) First Second Third Quarter Fourth Year Operating revenues $ 94,728 $ 106,901 $ 124,182 $ 111,005 $ 436,816 Operating income 18,691 25,568 33,975 22,749 100,983 Net income 10,782 16,348 22,952 13,789 63,871 Basic earnings per share * 0.29 0.44 0.62 0.37 1.73 Diluted earnings per share 0.29 0.44 0.62 0.37 1.72 GSWC For The Year Ended December 31, 2018 (in thousands) First Second Third Quarter Fourth Year Operating revenues $ 74,244 $ 84,574 $ 95,564 $ 75,226 $ 329,608 Operating income 16,297 22,645 27,540 14,080 80,562 Net income 8,890 13,648 17,919 7,555 48,012 AWR For The Year Ended December 31, 2017 (in thousands, except per share amounts) First Quarter Second Third Quarter Fourth Year Operating revenues $ 98,810 $ 113,195 $ 124,418 $ 104,180 $ 440,603 Operating income 24,576 42,026 38,534 21,959 127,095 Net income 12,701 22,792 21,006 12,868 69,367 Basic earnings per share * 0.35 0.62 0.57 0.35 1.88 Diluted earnings per share 0.34 0.62 0.57 0.35 1.88 GSWC For The Year Ended December 31, 2017 (in thousands) First Second Third Quarter Fourth Year Operating revenues $ 76,906 $ 88,346 $ 99,913 $ 75,136 $ 340,301 Operating income 21,876 35,229 32,986 15,780 105,871 Net income 10,749 18,363 17,336 7,309 53,757 * The sum of the quarterly basic earnings per share amounts do not agree to the yearly total due to rounding. (1) The second quarter of 2017 includes (i) an $8.3 million pretax gain related to the sale of GSWC's Ojai water system, and (ii) retroactive operating revenues at ASUS totaling $1.0 million related to periods prior to 2017 as a result of the U.S. government's approval of ASUS's economic price adjustment for one of its utility privatization contracts. (2) The fourth quarter of 2017 includes the remeasurement of deferred taxes as a result of the Tax Cuts and Jobs Act. In addition, a $1.8 million reduction to GSWC's operating expenses was recorded representing cash received for reimbursement of legal and other defense costs related to condemnation matters. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) customer in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2018USD ($)customerregistrantshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
Summary of significant accounting policies | |||||
Operating Lease, Right-of-Use Asset | $ 10,000,000 | ||||
Debt Issuance Costs, Net | 3,571,000 | $ 3,902,000 | |||
Related Party Transaction, Amounts of Transaction | $ 4,200,000 | 4,000,000 | $ 3,900,000 | ||
Basis of Presentation: | |||||
Number of registrants filing combined report | registrant | 2 | ||||
Related Party Transactions | |||||
Maximum borrowing capacity | $ 150,000,000 | ||||
Impairment of Long-Lived Assets | |||||
Impairment of long-lived assets | 0 | 0 | 0 | ||
Goodwill | |||||
Goodwill arose from acquisition of subcontractor's business | 1,100,000 | 1,100,000 | |||
Sales and Use Taxes: | |||||
Non-income tax assessments accounted on a gross basis | $ 18,404,000 | $ 17,905,000 | $ 16,801,000 | ||
Issuance of Common Shares (in shares) | shares | 44,906 | 56,498 | 56,900 | ||
Short-term Debt, Terms | P24M | ||||
Debt and Capital Lease Obligations | $ 324,978,000 | $ 325,265,000 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 10,000,000 | ||||
6.70% notes due 2019 | |||||
Sales and Use Taxes: | |||||
Debt and Capital Lease Obligations | $ 40,000,000 | $ 40,000,000 | |||
Interest rate per annum (as a percent) | 6.70% | 6.70% | |||
Contracted Services [Member] | |||||
Summary of significant accounting policies | |||||
Period of Fixed Price Contracts to Maintain Water Systems at Various Military Bases | 50 years | ||||
GSWC | |||||
Summary of significant accounting policies | |||||
Debt Issuance Costs, Net | $ 3,571,000 | $ 3,902,000 | |||
Property and Depreciation | |||||
Aggregate composite rate for depreciation (as a percent) | 2.70% | 2.60% | 2.90% | ||
Depreciation | $ 37,300,000 | $ 36,500,000 | $ 36,100,000 | ||
Depreciation on transportation equipment | $ 238,000 | 242,000 | 259,000 | ||
Estimated useful lives of utility plant, as authorized by the CPUC | |||||
Generation | 40 years | ||||
Interest | |||||
Amount recorded in AFUDC | $ 156,000 | 0 | 101,000 | ||
Alternative-Revenue Programs | |||||
Number of months within which expected additional revenue collection is recorded | 24 months | ||||
Advances for Construction and Contributions in aid of Constructions | |||||
Period for refund of advances for construction | 40 years | ||||
Fair Value of Financial Instruments | |||||
Long-term debt-GSWC | $ 387,889,000 | ||||
Sales and Use Taxes: | |||||
Cost of Reimbursable Expense | 3,600,000 | 3,600,000 | 3,500,000 | ||
Non-income tax assessments accounted on a gross basis | 16,809,000 | 16,402,000 | $ 15,444,000 | ||
Issuance of Common Shares | 47,500,000 | ||||
Debt and Capital Lease Obligations | 324,978,000 | 325,265,000 | |||
Inter-company payable to Parent | 57,289,000 | 0 | |||
GSWC | Level 1 | |||||
Fair Value of Financial Instruments | |||||
Long-term debt-GSWC | 0 | ||||
GSWC | Level 3 | |||||
Fair Value of Financial Instruments | |||||
Long-term debt-GSWC | 0 | ||||
GSWC | Carrying Amount | |||||
Fair Value of Financial Instruments | |||||
Long-term debt-GSWC | 324,978,000 | 325,265,000 | |||
GSWC | Fair Value | |||||
Fair Value of Financial Instruments | |||||
Long-term debt-GSWC | 424,042,000 | ||||
GSWC | Fair Value | Level 2 | |||||
Fair Value of Financial Instruments | |||||
Long-term debt-GSWC | $ 387,889,000 | ||||
GSWC | Minimum | |||||
Estimated useful lives of utility plant, as authorized by the CPUC | |||||
Source of water supply | 30 years | ||||
Pumping | 25 years | ||||
Water treatment | 20 years | ||||
Transmission and distribution | 25 years | ||||
Other plant | 7 years | ||||
GSWC | Maximum | |||||
Estimated useful lives of utility plant, as authorized by the CPUC | |||||
Source of water supply | 50 years | ||||
Pumping | 40 years | ||||
Water treatment | 35 years | ||||
Transmission and distribution | 55 years | ||||
Other plant | 40 years | ||||
GSWC | 6.70% notes due 2019 | |||||
Sales and Use Taxes: | |||||
Debt and Capital Lease Obligations | $ 40,000,000 | $ 40,000,000 | |||
Interest rate per annum (as a percent) | 6.70% | 6.70% | |||
GSWC | Notes Payable, Other Payables [Member] | Notes Receivable | |||||
Related Party Transactions | |||||
Notes Receivable, Related Parties, Current | $ 0 | ||||
GSWC | Water Service Utility Operations [Member] | |||||
Nature of Operations: | |||||
Number of customers served | customer | 260 | ||||
Interest | |||||
Weighted cost of capital (as a percent) | 8.34% | ||||
GSWC | Electric Service Utility Operations [Member] | |||||
Nature of Operations: | |||||
Number of customers served | customer | 24 | ||||
Sales and Use Taxes: | |||||
Cost Of Debt Percent | 6.96% | ||||
American States Utility Services [Member] | 6.70% notes due 2019 | |||||
Sales and Use Taxes: | |||||
Interest rate per annum (as a percent) | 6.70% | ||||
American States Utility Services [Member] | Contracted Services [Member] | |||||
Nature of Operations: | |||||
Period of fixed price contracts to operate and maintain the water and/or wastewater systems at various military bases | 50 years | 50 years | |||
Sales [Member] | GSWC | Water Service Utility Operations [Member] | |||||
Nature of Operations: | |||||
Percentage of total revenues | 90.00% | 90.00% | 90.00% | ||
Sales [Member] | GSWC | Electric Service Utility Operations [Member] | |||||
Nature of Operations: | |||||
Percentage of total revenues | 90.00% | ||||
Syndicated revolving credit facility | Syndicated revolving credit facility | |||||
Related Party Transactions | |||||
Maximum borrowing capacity | $ 150,000,000 | ||||
AWR | |||||
Related Party Transactions | |||||
Maximum borrowing capacity | $ 150,000,000 | ||||
Common Stock [Member] | |||||
Sales and Use Taxes: | |||||
Issuance of Common Shares (in shares) | shares | 77,000 | 110,000 | 69,000 | ||
Common Stock [Member] | GSWC | |||||
Sales and Use Taxes: | |||||
Issuance of Common Shares (in shares) | shares | 19 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue, Performance Obligation, Payment Terms | 20 days | ||||
Golden State Water Company [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Cost of Reimbursable Expense | $ 3.6 | $ 3.6 | $ 3.5 | ||
Period within which Expected Additional Revenue Collection is Recorded Subject to Undercollection of Revenue | 24 months | ||||
Contracted Services [Member] | American States Utility Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 50 years | 50 years | |||
Sales [Member] | Water Service Utility Operations [Member] | Golden State Water Company [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of total revenues | 90.00% | 90.00% | 90.00% | ||
Sales [Member] | Electric Service Utility Operations [Member] | Golden State Water Company [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of total revenues | 90.00% |
Revenues Disaggregation of Reve
Revenues Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 436,816 | ||
Regulated Operating Revenue,Water | 295,258 | $ 306,332 | $ 302,931 |
Golden State Water Company [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Regulated Operating Revenue,Water | 295,258 | $ 306,332 | $ 302,931 |
Golden State Water Company [Member] | Water Service Utility Operations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 295,258 | ||
Golden State Water Company [Member] | Water Service Utility Operations [Member] | Water Revenue Adjustment Mechanism [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Regulated Operating Revenue,Water | (8,335) | ||
Golden State Water Company [Member] | Electric Service Utility Operations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 34,350 | ||
Golden State Water Company [Member] | Electric Service Utility Operations [Member] | Water Revenue Adjustment Mechanism [Member] | |||
Disaggregation of Revenue [Line Items] | |||
BRRAM over-collection (alternative revenue program) | (365) | ||
American States Utility Services [Member] | Contracted Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 107,208 | ||
American States Utility Services [Member] | Contracted Services [Member] | Wastewater [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 44,935 | ||
American States Utility Services [Member] | Contracted Services [Member] | Water [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 62,273 | ||
Billed Revenues [Member] | Golden State Water Company [Member] | Water Service Utility Operations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 303,593 | ||
Billed Revenues [Member] | Golden State Water Company [Member] | Water Service Utility Operations [Member] | Tariff-based Revenues [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 298,818 | ||
Billed Revenues [Member] | Golden State Water Company [Member] | Water Service Utility Operations [Member] | Surcharges (Cost-recovery Activities) [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,962 | ||
Billed Revenues [Member] | Golden State Water Company [Member] | Water Service Utility Operations [Member] | Other Products and Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,813 | ||
Billed Revenues [Member] | Golden State Water Company [Member] | Electric Service Utility Operations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 34,715 | ||
Billed Revenues [Member] | Golden State Water Company [Member] | Electric Service Utility Operations [Member] | Tariff-based Revenues [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 34,501 | ||
Billed Revenues [Member] | Golden State Water Company [Member] | Electric Service Utility Operations [Member] | Surcharges (Cost-recovery Activities) [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 214 |
Revenues Contract assets and Co
Revenues Contract assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Contract with Customer, Asset and Liability [Line Items] | ||||
Contract with Customer, Liability, Revenue Recognized | $ 3,700 | |||
Revenue, Remaining Performance Obligation | 0 | |||
American States Utility Services [Member] | ||||
Contract with Customer, Asset and Liability [Line Items] | ||||
Government Contract Receivable | 61,126 | $ 40,150 | ||
Contract assets | 24,447 | 30,388 | ||
Contract liabilities | $ 7,530 | $ 3,911 | ||
Minimum | American States Utility Services [Member] | ||||
Contract with Customer, Asset and Liability [Line Items] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 36 years | |||
Maximum [Member] | American States Utility Services [Member] | ||||
Contract with Customer, Asset and Liability [Line Items] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 50 years | |||
Contracted Services [Member] | American States Utility Services [Member] | ||||
Contract with Customer, Asset and Liability [Line Items] | ||||
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 50 years | 50 years |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2005 | Jul. 31, 2005 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Regulatory matters: | |||||
Regulatory Asset Not Accruing Carrying Costs | $ 56,300,000 | ||||
Various refunds to customers | |||||
Regulatory matters: | |||||
Decrease in revenues requirement to reflect the newly adopted Cost of Capital for GSWC | 961,000 | ||||
Water Revenue Adjustment Mechanism [Member] | |||||
Regulatory matters: | |||||
Regulatory adjustment | 9,400,000 | ||||
Pension Costs and Other Postretirement Benefit Costs | |||||
Regulatory matters: | |||||
Regulatory Asset Not Accruing Carrying Costs | $ 36,200,000 | ||||
General Rate Case Memorandum Accounts [Member] | |||||
Regulatory matters: | |||||
Total | $ 9,500,000 | ||||
Cost of Capital, Proceeding for Water Regions [Member] | |||||
Regulatory matters: | |||||
Weighted Cost of Capital Percent | 8.34% | ||||
Settlement Agreement Proposed Authorized Return on Equity Percentage | 9.43% | ||||
GSWC | |||||
Regulatory matters: | |||||
Total | $ (28,340,000) | $ 2,042,000 | |||
GSWC | Revenue Subject to Refund for TCJA [Member] | |||||
Regulatory matters: | |||||
Total | (8,293,000) | 0 | |||
GSWC | Various refunds to customers | |||||
Regulatory matters: | |||||
Total | (7,517,000) | (6,070,000) | |||
GSWC | Renewables Portfolio Standard [Member] | |||||
Regulatory matters: | |||||
Provision for Other Losses | 0 | ||||
GSWC | Revenue Subject to Refund for TCJA [Member] | |||||
Regulatory matters: | |||||
Adjustments recorded to revalue deferred taxes as a result of the tax cut and job act of 2017 impact | 7,100,000 | ||||
GSWC | WRAM, net of MCBA | |||||
Regulatory matters: | |||||
Total | 17,763,000 | 29,556,000 | |||
GSWC | Water Revenue Adjustment Mechanism [Member] | |||||
Regulatory matters: | |||||
Total | 3,800,000 | ||||
Water | 0 | ||||
GSWC | Costs deferred for future recovery on Aerojet case | |||||
Regulatory matters: | |||||
Total | 9,516,000 | 10,656,000 | |||
Regulatory Asset Recovery Periods | 20 years | ||||
GSWC | Pension Costs and Other Postretirement Benefit Costs | |||||
Regulatory matters: | |||||
Regulatory Assets | 36,200,000 | ||||
Total | 33,124,000 | 33,019,000 | |||
GSWC | Gain (Loss) on Derivative Instruments [Member] | |||||
Regulatory matters: | |||||
Total | 311,000 | 2,941,000 | |||
GSWC | Flow-through taxes, net | |||||
Regulatory matters: | |||||
Total | (15,300,000) | (17,700,000) | |||
GSWC | Deferred Income Tax Charge [Member] | |||||
Regulatory matters: | |||||
Total | (81,465,000) | (83,231,000) | |||
GSWC | Low income rate assistance balancing accounts | |||||
Regulatory matters: | |||||
Total | 2,784,000 | 5,972,000 | |||
GSWC | Other regulatory assets, net | |||||
Regulatory matters: | |||||
Total | 15,656,000 | 16,393,000 | |||
GSWC | General Rate Case Memorandum Accounts [Member] | |||||
Regulatory matters: | |||||
Total | $ 5,054,000 | $ 10,522,000 | |||
GSWC | Cost of Capital, Proceeding for Water Regions [Member] | |||||
Regulatory matters: | |||||
Return on Equity Percentage | 8.90% | ||||
Weighted Cost of Capital Percent | 7.91% | ||||
Electric Service Utility Operations [Member] | Revenue Subject to Refund for TCJA [Member] | |||||
Regulatory matters: | |||||
Adjustments recorded to revalue deferred taxes as a result of the tax cut and job act of 2017 impact | $ 1,200,000 | ||||
Electric Service Utility Operations [Member] | Pending General Rate Case [Member] | |||||
Regulatory matters: | |||||
Return on Equity Percentage | 9.60% | ||||
Settlement Agreement Proposed Authorized Return on Equity Percentage | 9.95% | ||||
Minimum | GSWC | General Rate Case Memorandum Accounts [Member] | |||||
Regulatory matters: | |||||
Regulatory Asset Recovery Periods | 12 months | ||||
Maximum | GSWC | WRAM, net of MCBA | |||||
Regulatory matters: | |||||
Regulatory Asset Recovery Periods | 24 months | ||||
Maximum | GSWC | Costs deferred for future recovery on Aerojet case | |||||
Regulatory matters: | |||||
Regulatory Asset Recovery Periods | 20 years | ||||
Maximum | GSWC | General Rate Case Memorandum Accounts [Member] | |||||
Regulatory matters: | |||||
Regulatory Asset Recovery Periods | 36 months | ||||
Under Collection in Two Way Pension Balancing Account [Member] | GSWC | Pension Costs and Other Postretirement Benefit Costs | |||||
Regulatory matters: | |||||
Regulatory adjustment | $ (3,034,000) | ||||
Regulatory Assets | $ 3,000,000 |
Regulatory Matters 2 (Details)
Regulatory Matters 2 (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2005 | Jul. 31, 2005 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Regulatory matters: | |||||
Regulatory Asset Not Accruing Carrying Costs | $ 56,300 | ||||
Water | 295,258 | $ 306,332 | $ 302,931 | ||
Pension Costs and Other Postretirement Benefit Costs | |||||
Regulatory matters: | |||||
Regulatory Asset Not Accruing Carrying Costs | 36,200 | ||||
General Rate Case Memorandum Accounts [Member] | |||||
Regulatory matters: | |||||
Under (over) collection | (9,500) | ||||
WRAM | |||||
Regulatory matters: | |||||
Regulatory adjustment | $ 9,400 | ||||
Cost of Capital, Proceeding for Water Regions [Member] | |||||
Regulatory matters: | |||||
Weighted Cost of Capital Percent | 8.34% | ||||
GSWC | |||||
Regulatory matters: | |||||
Under (over) collection | $ 28,340 | (2,042) | |||
Water | 295,258 | 306,332 | $ 302,931 | ||
GSWC | Pension Costs and Other Postretirement Benefit Costs | |||||
Regulatory matters: | |||||
Under (over) collection | (33,124) | (33,019) | |||
Regulatory Assets | 36,200 | ||||
GSWC | Costs deferred for future recovery on Aerojet case | |||||
Regulatory matters: | |||||
Under (over) collection | (9,516) | (10,656) | |||
Recovery period | 20 years | ||||
Increase in Revenue Requirement, Recoverable through Surcharges | $ 21,300 | ||||
GSWC | Costs deferred for future recovery on Aerojet case | Maximum | |||||
Regulatory matters: | |||||
Recovery period | 20 years | ||||
GSWC | Gain (Loss) on Derivative Instruments [Member] | |||||
Regulatory matters: | |||||
Under (over) collection | (311) | (2,941) | |||
GSWC | Flow-through taxes, net | |||||
Regulatory matters: | |||||
Under (over) collection | 15,300 | 17,700 | |||
GSWC | General Rate Case Memorandum Accounts [Member] | |||||
Regulatory matters: | |||||
Under (over) collection | $ (5,054) | (10,522) | |||
GSWC | General Rate Case Memorandum Accounts [Member] | Minimum | |||||
Regulatory matters: | |||||
Recovery period | 12 months | ||||
GSWC | General Rate Case Memorandum Accounts [Member] | Maximum | |||||
Regulatory matters: | |||||
Recovery period | 36 months | ||||
GSWC | WRAM, net of MCBA | |||||
Regulatory matters: | |||||
Commercial paper, term | 90 days | ||||
Amount billed to customers as surcharges | $ 21,200 | ||||
Under (over) collection | $ (17,763) | (29,556) | |||
GSWC | WRAM, net of MCBA | Maximum | |||||
Regulatory matters: | |||||
Recovery period | 24 months | ||||
GSWC | WRAM | |||||
Regulatory matters: | |||||
Under (over) collection | $ (3,800) | ||||
GSWC | Modified Cost Balancing Account | |||||
Regulatory matters: | |||||
Under (over) collection | $ (21,600) | ||||
GSWC | Cost of Capital, Proceeding for Water Regions [Member] | |||||
Regulatory matters: | |||||
Weighted Cost of Capital Percent | 7.91% | ||||
Revenue Subject to Refund for TCJA [Member] | GSWC | |||||
Regulatory matters: | |||||
Under (over) collection | $ 8,293 | 0 | |||
Various refunds to customers | GSWC | |||||
Regulatory matters: | |||||
Under (over) collection | 7,517 | $ 6,070 | |||
Under Collection in Two Way Pension Balancing Account [Member] | GSWC | Pension Costs and Other Postretirement Benefit Costs | |||||
Regulatory matters: | |||||
Regulatory adjustment | (3,034) | ||||
Regulatory Assets | $ 3,000 |
Regulatory Matters 3 (Details)
Regulatory Matters 3 (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Regulatory matters: | ||
Other Liabilities, Current | $ 10,731 | $ 15,109 |
GSWC | ||
Regulatory matters: | ||
Under (over) collection | (28,340) | 2,042 |
Other Liabilities, Current | 9,432 | 14,705 |
Other Regulatory Assets Net [Member] | GSWC | ||
Regulatory matters: | ||
Under (over) collection | 15,656 | 16,393 |
Low income rate assistance balancing accounts | GSWC | ||
Regulatory matters: | ||
Under (over) collection | 2,784 | 5,972 |
Pension Costs and Other Postretirement Benefit Costs | GSWC | ||
Regulatory matters: | ||
Regulatory asset authorized under settlement | 36,200 | |
Under (over) collection | 33,124 | $ 33,019 |
Two-way pension balancing account | Pension Costs and Other Postretirement Benefit Costs | GSWC | ||
Regulatory matters: | ||
Regulatory asset authorized under settlement | 3,000 | |
Two-way pension balancing account | Purchase, production, distribution and sale of water | Pension Costs and Other Postretirement Benefit Costs | GSWC | ||
Regulatory matters: | ||
Regulatory asset authorized under settlement | (2,042) | |
Two-way pension balancing account | Electric | Pension Costs and Other Postretirement Benefit Costs | GSWC | ||
Regulatory matters: | ||
Regulatory asset authorized under settlement | $ (991) |
Regulatory Matters 4 (Details)
Regulatory Matters 4 (Details) - GSWC - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2005 | Jul. 31, 2005 | Dec. 31, 2018 | |
Costs deferred for future recovery on Aerojet case | |||
Regulatory matters: | |||
Increase in Revenue Requirement, Recoverable through Surcharges | $ 21.3 | ||
Recovery period | 20 years | ||
Reimbursement to recover costs | $ 17.5 | ||
Costs deferred for future recovery on Aerojet case | Maximum | |||
Regulatory matters: | |||
Recovery period | 20 years | ||
Water Revenue Adjustment Mechanism Net of Modified Cost Balancing Account [Member] | |||
Regulatory matters: | |||
Amount billed to customers as surcharges | $ 21.2 | ||
Water Revenue Adjustment Mechanism Net of Modified Cost Balancing Account [Member] | Maximum | |||
Regulatory matters: | |||
Recovery period | 24 months |
Regulatory Matters 5 (Details)
Regulatory Matters 5 (Details) - GSWC - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Regulatory matters: | ||
Total | $ (28,340) | $ 2,042 |
Pension Costs and Other Postretirement Benefit Costs | ||
Regulatory matters: | ||
Regulatory asset | 36,200 | |
Total | 33,124 | 33,019 |
Pension Costs and Other Postretirement Benefit Costs | Two-way pension balancing account | ||
Regulatory matters: | ||
Regulatory asset | $ 3,000 | |
Water Revenue Adjustment Mechanism Net of Modified Cost Balancing Account [Member] | ||
Regulatory matters: | ||
Commercial paper, term | 90 days | |
Total | $ 17,763 | 29,556 |
Low income rate assistance balancing accounts | ||
Regulatory matters: | ||
Commercial paper, term | 90 days | |
Discount percentage for qualified low-income water customers | 15.00% | |
Discount percentage for qualified low-income electric customers | 20.00% | |
Total | $ 2,784 | $ 5,972 |
Regulatory Matters 6 (Details)
Regulatory Matters 6 (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
GSWC | ||
Regulatory matters: | ||
Net regulatory assets | $ (28,340) | $ 2,042 |
Regulatory Matters 9 (Details)
Regulatory Matters 9 (Details) - GSWC renewable_energy in Thousands, $ in Thousands | 1 Months Ended | ||
Dec. 31, 2012renewable_energy | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Regulatory matters: | |||
Net regulatory assets | $ | $ (28,340) | $ 2,042 | |
Renewables Portfolio Standard [Member] | |||
Regulatory matters: | |||
Agreement period to purchase renewable energy credits | 10 years | ||
Number of renewable energy credits that would be purchased | renewable_energy | 578 |
Utility Plant and Intangible _3
Utility Plant and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Utility plant utilized in continuing operations by major asset class | |||
Total amortized intangible assets | $ 30,822 | $ 31,192 | |
Total utility plant, at cost | 1,780,110 | 1,674,527 | |
Less - accumulated depreciation | (561,855) | (533,370) | |
Construction work in progress | (78,055) | (63,835) | |
Net utility plant | 1,296,310 | 1,204,992 | $ 1,150,926 |
American States Utility Services [Member] | Intangible Assets [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 571 | 571 | |
Water Service Utility Operations [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 1,674,046 | 1,574,801 | |
Water Service Utility Operations [Member] | Land | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 14,890 | 14,895 | |
Water Service Utility Operations [Member] | Intangible Assets [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 29,412 | 29,396 | |
Water Service Utility Operations [Member] | Source of water supply | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 91,349 | 88,168 | |
Water Service Utility Operations [Member] | Pumping | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 182,673 | 178,252 | |
Water Service Utility Operations [Member] | Water treatment | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 82,198 | 78,999 | |
Water Service Utility Operations [Member] | Transmission and distribution | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 1,142,105 | 1,064,271 | |
Water Service Utility Operations [Member] | General | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 131,419 | 120,820 | |
Electric Service Utility Operations [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 106,064 | 99,726 | |
Electric Service Utility Operations [Member] | Intangible Assets [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 1,200 | 1,200 | |
Electric Service Utility Operations [Member] | Transmission and distribution | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 82,257 | 76,188 | |
Electric Service Utility Operations [Member] | Generation | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 12,583 | 12,583 | |
Electric Service Utility Operations [Member] | General | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 11,224 | 10,955 | |
GSWC | |||
Utility plant utilized in continuing operations by major asset class | |||
Total amortized intangible assets | 30,251 | 30,621 | |
Total utility plant, at cost | 1,755,599 | 1,658,935 | |
Less - accumulated depreciation | (551,244) | (524,481) | |
Construction work in progress | (76,737) | (63,486) | |
Net utility plant | 1,281,092 | 1,197,940 | |
GSWC | Water Service Utility Operations [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 1,649,535 | 1,559,209 | |
Net utility plant | 1,218,468 | 1,137,995 | 1,089,031 |
GSWC | Water Service Utility Operations [Member] | Land | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 14,890 | 14,895 | |
GSWC | Water Service Utility Operations [Member] | Intangible Assets [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 29,413 | 29,378 | |
GSWC | Water Service Utility Operations [Member] | Source of water supply | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 91,349 | 88,168 | |
GSWC | Water Service Utility Operations [Member] | Pumping | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 182,673 | 178,252 | |
GSWC | Water Service Utility Operations [Member] | Water treatment | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 82,198 | 78,999 | |
GSWC | Water Service Utility Operations [Member] | Transmission and distribution | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 1,142,105 | 1,064,271 | |
GSWC | Water Service Utility Operations [Member] | General | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 106,907 | 105,246 | |
GSWC | Electric Service Utility Operations [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 106,064 | 99,726 | |
Net utility plant | 62,624 | 59,945 | $ 56,280 |
GSWC | Electric Service Utility Operations [Member] | Transmission and distribution | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 82,257 | 76,188 | |
GSWC | Electric Service Utility Operations [Member] | Generation | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 12,583 | 12,583 | |
GSWC | Electric Service Utility Operations [Member] | General | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 11,224 | 10,955 | |
Conservation [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total amortized intangible assets | 9,486 | 9,486 | |
Conservation [Member] | GSWC | |||
Utility plant utilized in continuing operations by major asset class | |||
Total amortized intangible assets | $ 9,486 | $ 9,486 |
Utility Plant and Intangible _4
Utility Plant and Intangible Assets 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Intangible assets | ||||
Total utility plant, at cost | $ 1,780,110 | $ 1,674,527 | ||
Total amortized intangible assets | 30,822 | 31,192 | ||
Less - accumulated amortization | (24,399) | (23,331) | ||
Intangible assets, net of amortization | 6,423 | 7,861 | ||
Unamortized intangible assets | [1] | 422 | 422 | |
Amortization of intangible assets | 1,100 | $ 1,500 | $ 1,900 | |
Estimated future consolidated amortization expenses related to intangible assets | ||||
2,014 | 189 | |||
2,015 | 90 | |||
2,016 | 12 | |||
2,017 | 12 | |||
2,018 | 12 | |||
Total | $ 315 | |||
Conservation [Member] | ||||
Intangible assets | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | 3 years | ||
Total amortized intangible assets | $ 9,486 | $ 9,486 | ||
Water and water service rights | ||||
Intangible assets | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 30 years | 30 years | ||
Total amortized intangible assets | [2] | $ 8,695 | $ 8,695 | |
Water planning studies | ||||
Intangible assets | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | 14 years | ||
Total amortized intangible assets | $ 12,641 | $ 13,011 | ||
GSWC | ||||
Intangible assets | ||||
Total utility plant, at cost | 1,755,599 | 1,658,935 | ||
Total amortized intangible assets | 30,251 | 30,621 | ||
Less - accumulated amortization | (24,268) | (23,221) | ||
Intangible assets, net of amortization | 5,983 | 7,400 | ||
Unamortized intangible assets | [1] | $ 404 | $ 404 | |
GSWC | Conservation [Member] | ||||
Intangible assets | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | 3 years | ||
Total amortized intangible assets | $ 9,486 | $ 9,486 | ||
GSWC | Water and water service rights | ||||
Intangible assets | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 30 years | 30 years | ||
Total amortized intangible assets | [2] | $ 8,124 | $ 8,124 | |
GSWC | Water planning studies | ||||
Intangible assets | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | 14 years | ||
Total amortized intangible assets | $ 12,641 | $ 13,011 | ||
Intangible Assets [Member] | American States Utility Services [Member] | ||||
Intangible assets | ||||
Total utility plant, at cost | $ 571 | $ 571 | ||
[1] | The intangible assets not subject to amortization primarily consist of organization and consent fees. | |||
[2] | Includes intangible assets of $571,000 for contracted services included in "Other Property and Investments" on the consolidated balance sheets as of December 31, 2018 and 2017. |
Utility Plant and Intangible _5
Utility Plant and Intangible Assets 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the beginning and ending aggregate carrying amount of the asset retirement obligations | ||
Obligation at the beginning of the period | $ 4,963 | $ 4,393 |
Additional liabilities incurred | 256 | 562 |
Liabilities settled | (46) | (229) |
Accretion | 55 | 237 |
Obligation at the end of the period | $ 5,228 | $ 4,963 |
Derivative Instruments (Details
Derivative Instruments (Details) MWh in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)MWhquote | Dec. 31, 2017USD ($) | |
Purchase power contract | ||
Derivative instruments | ||
Number of broker quotes received to determine fair value of derivative instrument | quote | 1 | |
GSWC | ||
Derivative instruments | ||
Derivative Activity Volume | MWh | 96 | |
GSWC | Purchase power contract | ||
Changes in the fair value of the derivative | ||
Balance, at beginning of the period | $ (2,941) | $ (4,901) |
Unrealized gain on purchased power contracts | 2,630 | 1,960 |
Balance, at end of the period | $ (311) | $ (2,941) |
Minimum | GSWC | Purchase power contract | ||
Derivative instruments | ||
Derivative, Term of Contract | 3 years | |
Maximum | GSWC | Purchase power contract | ||
Derivative instruments | ||
Derivative, Term of Contract | 5 years |
Military Privatization (Details
Military Privatization (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Military Privatization | ||||||||||||
Contract liabilities (Note 2) | $ 7,530 | $ 3,911 | $ 7,530 | $ 3,911 | ||||||||
Receivables from the U.S. government: | ||||||||||||
Less: allowance for doubtful accounts | (951) | (1,041) | (951) | (1,041) | $ (764) | $ (944) | ||||||
Pretax income | ||||||||||||
Increase in pretax operating income | $ 22,749 | $ 33,975 | $ 25,568 | $ 18,691 | $ 21,959 | $ 38,534 | $ 42,026 | $ 24,576 | $ 100,983 | 127,095 | 114,192 | |
Contracted Services [Member] | ||||||||||||
Military Privatization | ||||||||||||
Period of fixed price contracts to maintain water systems at various military bases | 50 years | |||||||||||
American States Utility Services [Member] | Contracted Services [Member] | ||||||||||||
Pretax income | ||||||||||||
Increase in pretax operating income | $ 20,414 | $ 21,320 | $ 19,024 | |||||||||
Reportable Legal Entities [Member] | American States Utility Services [Member] | Contracted Services [Member] | ||||||||||||
Military Privatization | ||||||||||||
Revenue Recognition, Retrospective Rate-Setting Systems, Amount | $ 1,000 |
Earnings Per Share and Capita_3
Earnings Per Share and Capital Stock (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Basic | ||||||||||||
Net Income | $ 13,789,000 | $ 22,952,000 | $ 16,348,000 | $ 10,782,000 | $ 12,868,000 | $ 21,006,000 | $ 22,792,000 | $ 12,701,000 | $ 63,871,000 | $ 69,367,000 | $ 59,743,000 | |
Less: Distributed earnings to common shareholders | 38,937,000 | 36,417,000 | 33,408,000 | |||||||||
Less: Distributed earnings to participating securities | 204,000 | 197,000 | 187,000 | |||||||||
Undistributed earnings | 24,730,000 | 32,753,000 | 26,148,000 | |||||||||
Undistributed earnings allocated to common shareholders | 24,601,000 | 32,577,000 | 26,003,000 | |||||||||
Undistributed earnings allocated to participating securities | 176,000 | 145,000 | ||||||||||
Total income available to common shareholders, basic | $ 63,538,000 | $ 68,994,000 | $ 59,411,000 | |||||||||
Weighted average Common Shares outstanding, basic | 36,733,000 | 36,638,000 | 36,552,000 | |||||||||
Basic earnings per Common Share: | ||||||||||||
Earnings Per Share, Basic | $ 0.37 | $ 0.62 | $ 0.44 | $ 0.29 | $ 0.35 | $ 0.57 | $ 0.62 | $ 0.35 | $ 1.73 | $ 1.88 | $ 1.63 | |
Diluted | ||||||||||||
Total income available to common shareholders, basic | $ 63,538,000 | $ 68,994,000 | $ 59,411,000 | |||||||||
Undistributed earnings for dilutive stock options | 129,000 | 176,000 | 145,000 | |||||||||
Total common shareholders earnings, diluted | $ 63,667,000 | $ 69,170,000 | $ 59,556,000 | |||||||||
Weighted average Common Shares outstanding, basic | 36,733,000 | 36,638,000 | 36,552,000 | |||||||||
Stock-based compensation (in shares) | [1] | 203,000 | 206,000 | 198,000 | ||||||||
Weighted average common shares outstanding, diluted | 36,936,000 | 36,844,000 | 36,750,000 | |||||||||
Diluted earnings per Common Share: | ||||||||||||
Earnings Per Share, Diluted | $ 0.37 | $ 0.62 | $ 0.44 | $ 0.29 | $ 0.35 | $ 0.57 | $ 0.62 | $ 0.34 | $ 1.72 | $ 1.88 | $ 1.62 | |
Stock option and restricted stock option outstanding | ||||||||||||
Options outstanding (in shares) | 35,560 | 35,560 | ||||||||||
Share based compensation arrangement | ||||||||||||
Proceeds from Stock Options Exercised, Distributed to Subsidiaries | $ 0 | $ 0 | $ 0 | |||||||||
Dividend Reinvestment Plan Common Stock Capital Shares Reserved for Future Issuance | 1,055,948 | 1,055,948 | ||||||||||
Common Shares authorized for issuance but unissued under 401(k) Plan | 387,300 | 387,300 | ||||||||||
Restricted Stock Units | ||||||||||||
Share based compensation arrangement | ||||||||||||
Restricted stock units outstanding (in shares) | 197,896 | 197,896 | ||||||||||
[1] | (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 35,560 stock options and 197,896 restricted stock units, including performance awards, at December 31, 2018 were deemed to be outstanding in accordance with accounting guidance on earnings per share. |
Earnings Per Share and Capita_4
Earnings Per Share and Capital Stock 2 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capital stock | |||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | $ (176,000) | $ (145,000) | |
Additional disclosure | |||
Common Shares issued under DRP and the Employee Plans | 44,906 | 56,498 | 56,900 |
Dividend Reinvestment Plan Common Stock Capital Shares Reserved for Future Issuance | 1,055,948 | ||
Common Shares authorized for issuance but unissued under 401(k) Plan | 387,300 | ||
Common Shares issued as a result of the exercise of stock options | 32,142 | 52,936 | 12,546 |
Proceeds from Stock Options Exercised, Distributed to Subsidiaries | $ 0 | $ 0 | $ 0 |
GSWC | |||
Additional disclosure | |||
Value of Common Shares issued under DRP and the 2000 and 2008 Employee Plans | $ 47,500,000 | ||
Common Stock [Member] | |||
Additional disclosure | |||
Common Shares issued under DRP and the Employee Plans | 77,000 | 110,000 | 69,000 |
Common Stock [Member] | GSWC | |||
Additional disclosure | |||
Common Shares issued under DRP and the Employee Plans | 19 |
Dividend Limitations (Details)
Dividend Limitations (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Dividend limitations | ||||
Common shareholder’s equity | $ 558,223,000 | $ 529,945,000 | $ 494,297,000 | $ 465,945,000 |
Reinvested earnings in the business | 304,534,000 | 279,821,000 | ||
AWR | ||||
Dividend limitations | ||||
Common shareholder’s equity | 558,223,000 | 529,945,000 | ||
Subsidiaries [Member] | ||||
Dividend limitations | ||||
Dividends paid | 79,000,000 | 36,500,000 | 33,800,000 | |
GSWC | ||||
Dividend limitations | ||||
Fixed amount in computing maximum ability to pay dividends | $ 21,000,000 | |||
Percentage of consolidated net income plus the aggregate net cash proceeds received from capital stock offerings or other instruments convertible into capital stock | 100.00% | |||
Amount available to pay dividends under the most restrictive of the Note Agreements | $ 427,400,000 | |||
Dividends paid | 68,850,000 | 27,680,000 | 25,450,000 | |
Common shareholder’s equity | $ 503,575,000 | 474,374,000 | 446,770,000 | 423,730,000 |
Ratio of Indebtedness to Net Capital | 0.4298 | |||
Reinvested earnings in the business | $ 211,163,000 | 232,193,000 | ||
GSWC | Maximum | ||||
Dividend limitations | ||||
Ratio of Indebtedness to Net Capital | 0.6667 | |||
Earnings Reinvested in the Business | ||||
Dividend limitations | ||||
Common shareholder’s equity | $ 304,534,000 | 279,821,000 | 247,065,000 | 220,923,000 |
Earnings Reinvested in the Business | GSWC | ||||
Dividend limitations | ||||
Common shareholder’s equity | 211,163,000 | $ 232,193,000 | $ 206,288,000 | $ 184,935,000 |
Earnings Reinvested in the Business | American States Utility Services [Member] | ||||
Dividend limitations | ||||
Reinvested earnings in the business | $ 67,300,000 |
Bank Debt (Details)
Bank Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Bank debt | ||
Maximum borrowing capacity | $ 150,000,000 | |
Short-term borrowing activities (excluding letters of credit) | ||
Balance outstanding at the end of the period | 0 | $ 59,000,000 |
Long-term borrowing [Member] | ||
Short-term borrowing activities (excluding letters of credit) | ||
Balance outstanding at the end of the period | $ 95,500,000 | |
Short-term borrowing (excluding letters of credit) | ||
Short-term borrowing activities (excluding letters of credit) | ||
Balance outstanding at the end of the period | $ 59,000,000 | |
Interest Rate at the end of the period (as a percent) | 3.19% | 2.28% |
Average amount outstanding | $ 69,559,000 | $ 65,242,000 |
Weighted Average Annual Interest Rate (as a percent) | 2.66% | 1.69% |
Maximum Amount Outstanding | $ 95,500,000 | $ 102,500,000 |
Syndicated revolving credit facility | ||
Bank debt | ||
Variable rate basis | Euro rate | |
Syndicated revolving credit facility | Minimum | ||
Short-term borrowing activities (excluding letters of credit) | ||
Interest coverage ratio | 325.00% | |
Syndicated revolving credit facility | Maximum | ||
Short-term borrowing activities (excluding letters of credit) | ||
Total funded debt ratio | 65.00% | |
Syndicated revolving credit facility | Letter of Credit Irrevocable Franchise Agreement with City of Rancho Cordova [Member] | ||
Bank debt | ||
Letter of credit, amount | $ 15,000,000 | |
AWR | ||
Bank debt | ||
Maximum borrowing capacity | 150,000,000 | |
Short-term borrowing activities (excluding letters of credit) | ||
Balance outstanding at the end of the period | $ 0 | $ 59,000,000 |
AWR | Syndicated revolving credit facility | ||
Short-term borrowing activities (excluding letters of credit) | ||
Interest coverage ratio | 623.00% | |
Total funded debt ratio | 43.00% | |
AWR | Syndicated revolving credit facility | Minimum | ||
Short-term borrowing activities (excluding letters of credit) | ||
Interest coverage ratio | 325.00% | |
Total funded debt ratio | 65.00% | |
AWR | Syndicated revolving credit facility | Maximum | ||
Short-term borrowing activities (excluding letters of credit) | ||
Total funded debt ratio | 100.00% | |
AWR | Syndicated revolving credit facility | Letters of credit | ||
Bank debt | ||
Maximum borrowing capacity | $ 25,000,000 | |
Letter of credit, amount | $ 900,000 | |
Letter of credit fee (as a percent) | 0.65% | |
AWR | Syndicated revolving credit facility | Letter of Credit Business Automobile Insurance Policy Security [Member] | ||
Bank debt | ||
Letter of credit, amount | $ 340,000 | |
AWR | Syndicated revolving credit facility | Letter of Credit - Purchase of power | ||
Bank debt | ||
Letter of credit, amount | $ 585,000,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017 | Dec. 31, 2014USD ($) | Dec. 31, 2013 | |
GSWC | ||||
Long-term debt | ||||
Ratio of Indebtedness to Net Capital | 0.4298 | |||
Ratio of Indebtedness to EBITDA | 3.1 | |||
GSWC | Maximum | ||||
Long-term debt | ||||
Ratio of Indebtedness to Net Capital | 0.6667 | |||
Ratio of Indebtedness to EBITDA | 8 | |||
Private Placement Notes [Member] | GSWC | ||||
Long-term debt | ||||
Interest coverage ratio | 400.00% | |||
Private Placement Notes [Member] | GSWC | Minimum | ||||
Long-term debt | ||||
Interest coverage ratio | 200.00% | |||
9.56% notes due 2031 | ||||
Long-term debt | ||||
Interest rate (as a percent) | 9.56% | 9.56% | ||
9.56% notes due 2031 | GSWC | ||||
Long-term debt | ||||
Debt Instrument, Face Amount | $ 28,000,000 | |||
Interest rate (as a percent) | 9.56% | 9.56% | ||
Debt Instrument Redemption Premium above Treasury Yield | 5500.00% | |||
9.56% notes due 2031 | GSWC | Maximum | ||||
Long-term debt | ||||
Redemption premium after 2021 (as a percent) | 3.00% | |||
9.56% notes due 2031 | American States Utility Services [Member] | ||||
Long-term debt | ||||
Interest rate (as a percent) | 9.56% | |||
5.87% notes due 2028 | ||||
Long-term debt | ||||
Interest rate (as a percent) | 5.87% | 5.87% | ||
5.87% notes due 2028 | GSWC | ||||
Long-term debt | ||||
Interest rate (as a percent) | 5.87% | 5.87% | ||
5.87% notes due 2028 | American States Utility Services [Member] | ||||
Long-term debt | ||||
Interest rate (as a percent) | 5.87% | |||
6.70% notes due 2019 | ||||
Long-term debt | ||||
Interest rate (as a percent) | 6.70% | 6.70% | ||
6.70% notes due 2019 | GSWC | ||||
Long-term debt | ||||
Interest rate (as a percent) | 6.70% | 6.70% | ||
6.70% notes due 2019 | American States Utility Services [Member] | ||||
Long-term debt | ||||
Interest rate (as a percent) | 6.70% | |||
Senior Notes issued to Co-Bank | GSWC | ||||
Long-term debt | ||||
Additional spread on premium (as a percent) | 0.50% | |||
American Recovery and Reinvestment Act Obligation due 2033 | GSWC | ||||
Long-term debt | ||||
Interest rate (as a percent) | 2.50% | |||
3.45% notes due 2029 | ||||
Long-term debt | ||||
Interest rate (as a percent) | 3.45% | 3.45% | ||
3.45% notes due 2029 | GSWC | ||||
Long-term debt | ||||
Debt Instrument, Face Amount | $ 15,000,000 | $ 15,000,000 | ||
Interest rate (as a percent) | 3.45% | 3.45% | 3.45% |
Long-Term Debt 2 (Details)
Long-Term Debt 2 (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Annual maturities of all long-term debt, including capitalized leases | ||
Total | $ 324,978 | $ 325,265 |
GSWC | ||
Annual maturities of all long-term debt, including capitalized leases | ||
2,019 | 40,320 | |
2,020 | 345 | |
2,021 | 365 | |
2,022 | 390 | |
2,023 | 404 | |
Thereafter | 283,154 | |
Total | $ 324,978 | $ 325,265 |
Long-Term Debt 3 (Details)
Long-Term Debt 3 (Details) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2009USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2014USD ($) | Oct. 31, 2009USD ($) | |
Long-term debt | ||||||
Maximum amount of loan that can be borrowed | $ 150,000,000 | |||||
Notes Payable 3.45 Percent Due 2029 [Member] | ||||||
Long-term debt | ||||||
Interest rate (as a percent) | 3.45% | 3.45% | ||||
GSWC | ||||||
Long-term debt | ||||||
Ratio of Indebtedness to EBITDA | 3.1 | |||||
GSWC | Maximum | ||||||
Long-term debt | ||||||
Ratio of Indebtedness to EBITDA | 8 | |||||
GSWC | Private Placement Notes [Member] | ||||||
Long-term debt | ||||||
Debt Instrument Covenant Interest Coverage Ratio | 400.00% | |||||
GSWC | Private Placement Notes [Member] | Minimum | ||||||
Long-term debt | ||||||
Debt Instrument Covenant Interest Coverage Ratio | 200.00% | |||||
GSWC | Notes Payable 3.45 Percent Due 2029 [Member] | ||||||
Long-term debt | ||||||
Debt Instrument, Face Amount | $ 15,000,000 | $ 15,000,000 | ||||
Interest rate (as a percent) | 3.45% | 3.45% | 3.45% | |||
GSWC | American Recovery and Reinvestment Act Obligation due 2033 | ||||||
Long-term debt | ||||||
Maximum amount of loan that can be borrowed | $ 9,000,000 | |||||
Interest rate (as a percent) | 2.50% | |||||
Maturity term | 20 years | |||||
Loan proceeds received for reimbursement of costs of conversion | $ 8,600,000 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Taxes on income | ||||
Unrecognized Tax Benefits | $ 0 | $ 0 | $ 0 | |
Deferred tax assets: | ||||
Regulatory-liability-related | 33,419,000 | 34,567,000 | ||
Contributions and advances | 5,281,000 | 4,679,000 | ||
Deferred Tax Assets, Other | 2,988,000 | 1,934,000 | ||
Deferred tax assets | 41,688,000 | 41,180,000 | ||
Deferred tax liabilities: | ||||
Fixed assets | (131,413,000) | (130,115,000) | ||
Regulatory-asset-related: depreciation and other | (18,146,000) | (16,851,000) | ||
Balancing and memorandum accounts (non-flow-through) | (6,325,000) | (9,905,000) | ||
Deferred tax liabilities | (155,884,000) | (156,871,000) | ||
Accumulated deferred income taxes - net | (114,196,000) | (115,691,000) | ||
Current | ||||
Federal | 17,252,000 | 20,978,000 | 2,297,000 | |
State | 6,538,000 | 5,844,000 | 4,798,000 | |
Total current tax expense | 23,790,000 | 26,822,000 | 7,095,000 | |
Deferred | ||||
Federal | (4,334,000) | 11,543,000 | 26,715,000 | |
State | (1,439,000) | 609,000 | 925,000 | |
Total deferred tax (benefit) expense | (5,773,000) | 12,152,000 | 27,640,000 | |
Reconciliations of the effective tax rates to the federal statutory rate | ||||
Federal taxes on pretax income at statutory rate (21% in 2018; 35% in 2017 and 2016) | 17,196,000 | 37,919,000 | 33,067,000 | |
Increase (decrease) in taxes resulting from: | 3,693,000 | 4,382,000 | 3,029,000 | |
Change in tax rate | (14,000) | (82,000) | 0 | |
Excess deferred tax amortization | (2,101,000) | 0 | 0 | |
Flow-through on fixed assets | 429,000 | 845,000 | 994,000 | |
Flow-through on pension costs | 373,000 | 412,000 | (247,000) | |
Flow-through on removal costs | (1,445,000) | (1,980,000) | (2,068,000) | |
Domestic production activities deduction | (26,000) | (1,421,000) | (78,000) | |
Investment tax credit | (69,000) | (93,000) | (83,000) | |
Other- net | (19,000) | (1,008,000) | 121,000 | |
Total income tax expense operations | 18,017,000 | 38,974,000 | 34,735,000 | |
Pretax income from operations | $ 81,888,000 | $ 108,341,000 | $ 94,478,000 | |
Effective income tax rate (as a percent) | 22.00% | 36.00% | 36.80% | |
Proceeds from Income Tax Refunds | $ 2,200,000 | $ 2,100,000 | ||
GSWC | ||||
Deferred tax assets: | ||||
Regulatory-liability-related | $ 33,419,000 | $ 34,567,000 | ||
Contributions and advances | 5,666,000 | 5,022,000 | ||
Deferred Tax Assets, Other | 3,310,000 | 1,625,000 | ||
Deferred tax assets | 42,395,000 | 41,214,000 | ||
Deferred tax liabilities: | ||||
Fixed assets | (135,617,000) | (134,437,000) | ||
Regulatory-asset-related: depreciation and other | (18,146,000) | (16,851,000) | ||
Balancing and memorandum accounts (non-flow-through) | (6,873,000) | (10,706,000) | ||
Deferred tax liabilities | (160,636,000) | (161,994,000) | ||
Accumulated deferred income taxes - net | (118,241,000) | (120,780,000) | ||
Current | ||||
Federal | 14,488,000 | 15,044,000 | (3,115,000) | |
State | 5,932,000 | 5,045,000 | 3,625,000 | |
Total current tax expense | 20,420,000 | 20,089,000 | 510,000 | |
Deferred | ||||
Federal | (5,531,000) | 11,770,000 | 25,864,000 | |
State | (1,286,000) | 2,200,000 | 2,235,000 | |
Total deferred tax (benefit) expense | (6,817,000) | 13,970,000 | 28,099,000 | |
Reconciliations of the effective tax rates to the federal statutory rate | ||||
Federal taxes on pretax income at statutory rate (21% in 2018; 35% in 2017 and 2016) | 12,939,000 | 30,736,000 | 26,452,000 | |
Increase (decrease) in taxes resulting from: | 3,335,000 | 4,924,000 | 3,118,000 | |
Change in tax rate | 0 | (1,063,000) | 0 | |
Excess deferred tax amortization | (2,101,000) | 0 | 0 | |
Flow-through on fixed assets | 429,000 | 845,000 | 994,000 | |
Flow-through on pension costs | 373,000 | 412,000 | (247,000) | |
Flow-through on removal costs | (1,445,000) | (1,980,000) | (2,068,000) | |
Domestic production activities deduction | (25,000) | (1,148,000) | 0 | |
Investment tax credit | (69,000) | (93,000) | (82,000) | |
Other- net | 167,000 | (700,000) | 442,000 | |
Total income tax expense operations | 13,603,000 | 34,059,000 | 28,609,000 | |
Pretax income from operations | $ 61,615,000 | $ 87,816,000 | $ 75,578,000 | |
Effective income tax rate (as a percent) | 22.10% | 38.80% | 37.90% |
Employee Benefit Plans Employee
Employee Benefit Plans Employee Benefit Plans 1 (Details) - Pension Plan | 12 Months Ended |
Dec. 31, 2018itemparticipant | |
Employee benefit plans | |
Minimum age for eligibility under the Pension Plan | item | 21 |
Minimum period of service for eligibility under the Pension Plan | 5 years |
Normal retirement benefit (as a percent) | 2.00% |
Number of highest consecutive years' average earnings used in computing retirement benefit | 5 years |
Maximum number of years of credited service considered in determining retirement benefit | 40 years |
Number of participants in the Pension Plan | participant | 945 |
Eligibility for employer matching contributions, period of service | 3 years |
Maximum [Member] | |
Employee benefit plans | |
Percentage of participant's eligible pay contributed to the plan by the employer | 5.25% |
Minimum | |
Employee benefit plans | |
Percentage of participant's eligible pay contributed to the plan by the employer | 3.00% |
Employee Benefit Plans Employ_2
Employee Benefit Plans Employee Benefit Plans 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | |||
Change in Projected Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 207,690 | $ 180,364 | |
Service cost | 5,342 | 4,999 | $ 5,094 |
Interest cost | 7,646 | 7,904 | 7,910 |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 3,626 | 0 | |
Actuarial (gain) loss | (21,717) | 20,397 | |
Benefits/expenses paid | (6,505) | (5,974) | |
Projected benefit obligation at end of year | 196,082 | 207,690 | 180,364 |
Changes in Plan Assets: | |||
Fair value of plan assets at beginning of year | 173,648 | 150,872 | |
Actual return on plan assets | (10,626) | 22,246 | |
Employer contributions | 6,012 | 6,504 | |
Benefits/expenses paid | (6,505) | (5,974) | |
Fair value of plan assets at end of year | 162,529 | 173,648 | 150,872 |
Funded Status: | |||
Net amount recognized as accrued pension cost | (33,553) | (34,042) | |
Postemployment Retirement Benefits [Member] | |||
Change in Projected Benefit Obligation: | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 0 | |
Post-Retirement Medical Benefits | |||
Change in Projected Benefit Obligation: | |||
Projected benefit obligation at beginning of year | 8,491 | 8,802 | |
Service cost | 218 | 227 | 247 |
Interest cost | 292 | 324 | 371 |
Actuarial (gain) loss | (701) | (355) | |
Benefits/expenses paid | (414) | (507) | |
Projected benefit obligation at end of year | 7,886 | 8,491 | 8,802 |
Changes in Plan Assets: | |||
Fair value of plan assets at beginning of year | 11,053 | 10,538 | |
Actual return on plan assets | (629) | 1,022 | |
Employer contributions | 0 | 0 | |
Benefits/expenses paid | (414) | (507) | |
Fair value of plan assets at end of year | 10,010 | 11,053 | $ 10,538 |
Funded Status: | |||
Net amount recognized as accrued pension cost | $ 2,124 | $ 2,562 |
Employee Benefit Plans Employ_3
Employee Benefit Plans Employee Benefit Plans 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts recognized on the balance sheets: | |||||
Non-current liabilities | $ 57,636 | $ 57,695 | |||
Pension Benefits | |||||
Amounts recognized on the balance sheets: | |||||
Non-current assets | 0 | 0 | |||
Current liabilities | 0 | 0 | |||
Non-current liabilities | 33,553 | 34,042 | |||
Net amount recognized | (33,553) | (34,042) | |||
Amounts recognized in regulatory assets consist of: | |||||
Prior service cost (credit) | 3,626 | 0 | |||
Net (gain) loss | (31,587) | (32,761) | |||
Regulatory assets (liabilities) | $ 32,761 | $ 25,828 | $ 25,828 | 35,213 | 32,761 |
Unfunded accrued pension cost | 1,660 | 1,281 | |||
Net liability (asset) recognized | 33,553 | 34,042 | |||
Changes in plan assets and benefit obligations recognized in regulatory assets: | |||||
Regulatory asset at beginning of year | 32,761 | 25,828 | |||
Net loss (gain) | (81) | (7,856) | |||
Amortization of net gain (loss) | (1,255) | (923) | |||
Total change in regulatory asset | 2,452 | 6,933 | |||
Regulatory asset (liability) at end of year | 35,213 | 32,761 | 25,828 | ||
Net periodic pension costs | 3,070 | 4,121 | 4,126 | ||
Change in regulatory asset | 2,452 | 6,933 | |||
Total recognized in net periodic pension cost and regulatory asset (liability) | 5,522 | 11,054 | |||
Estimated amounts that will be amortized from regulatory asset over the next fiscal year: | |||||
Prior service (cost) credit | (434) | 0 | |||
Net gain (loss) | (1,435) | (1,378) | |||
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: | |||||
Projected benefit obligation | 196,082 | 207,690 | |||
Accumulated benefit obligation | 183,036 | 190,438 | |||
Fair value of plan assets | $ 162,529 | $ 173,648 | |||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||
Discount rate | 4.43% | 3.76% | |||
Post-Retirement Medical Benefits | |||||
Amounts recognized on the balance sheets: | |||||
Non-current assets | $ 2,124 | $ 2,562 | |||
Current liabilities | 0 | 0 | |||
Non-current liabilities | 0 | 0 | |||
Net amount recognized | 2,124 | 2,562 | |||
Amounts recognized in regulatory assets consist of: | |||||
Prior service cost (credit) | 0 | 0 | |||
Net (gain) loss | 4,459 | 5,650 | |||
Regulatory assets (liabilities) | (5,650) | (5,515) | (5,515) | (4,459) | (5,650) |
Unfunded accrued pension cost | 2,335 | 3,088 | |||
Net liability (asset) recognized | (2,124) | (2,562) | |||
Changes in plan assets and benefit obligations recognized in regulatory assets: | |||||
Regulatory asset at beginning of year | (5,650) | (5,515) | |||
Net loss (gain) | (421) | 910 | |||
Amortization of net gain (loss) | 770 | 775 | |||
Total change in regulatory asset | 1,191 | (135) | |||
Regulatory asset (liability) at end of year | (4,459) | (5,650) | (5,515) | ||
Net periodic pension costs | (752) | (690) | $ (606) | ||
Change in regulatory asset | 1,191 | (135) | |||
Total recognized in net periodic pension cost and regulatory asset (liability) | 439 | (825) | |||
Estimated amounts that will be amortized from regulatory asset over the next fiscal year: | |||||
Prior service (cost) credit | 0 | 0 | |||
Net gain (loss) | $ 598 | $ 727 | |||
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: | |||||
Projected benefit obligation | 7,886 | 8,491 | |||
Fair value of plan assets | $ 10,010 | $ 11,053 | |||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||
Discount rate | 4.20% | 3.52% | |||
Minimum | Pension Benefits | |||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||
Rate of compensation increase | 3.00% | 3.00% | |||
Maximum | Pension Benefits | |||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||
Rate of compensation increase | 8.00% | 8.00% |
Employee Benefit Plans Employ_4
Employee Benefit Plans Employee Benefit Plans 4 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | |||
Components of Net Periodic Benefits Cost: | |||
Service cost | $ 5,342 | $ 4,999 | $ 5,094 |
Interest cost | 7,646 | 7,904 | 7,910 |
Expected return on plan assets | (11,172) | (9,705) | (9,838) |
Amortization of prior service cost (credit) | 0 | 0 | 49 |
Amortization of actuarial (gain) loss | 1,254 | 923 | 911 |
Net periodic pension cost under accounting standards | 3,070 | 4,121 | 4,126 |
Regulatory adjustment | 0 | (465) | (859) |
Total expense recognized, before surcharges and allocation to overhead pool | $ 3,070 | $ 4,586 | $ 4,985 |
Weighted-average assumptions used to determine net periodic cost: | |||
Discount rate | 3.76% | 4.44% | 4.65% |
Expected long-term return on plan assets | 6.50% | 6.50% | 7.00% |
Expected long-term return on plan assets | 6.50% | 6.50% | 7.00% |
Post-Retirement Medical Benefits | |||
Components of Net Periodic Benefits Cost: | |||
Service cost | $ 218 | $ 227 | $ 247 |
Interest cost | 292 | 324 | 371 |
Expected return on plan assets | (493) | (466) | (489) |
Amortization of prior service cost (credit) | 0 | 0 | (34) |
Amortization of actuarial (gain) loss | (769) | (775) | (701) |
Net periodic pension cost under accounting standards | (752) | (690) | (606) |
Regulatory adjustment | 0 | 0 | 0 |
Total expense recognized, before surcharges and allocation to overhead pool | $ (752) | $ (690) | $ (606) |
Weighted-average assumptions used to determine net periodic cost: | |||
Discount rate | 3.52% | 3.97% | 4.25% |
Union plan | |||
Weighted-average assumptions used to determine net periodic cost: | |||
Expected long-term return on plan assets | 6.00% | 6.00% | 7.00% |
Expected long-term return on plan assets | 6.00% | 6.00% | 7.00% |
Non-union plan | |||
Weighted-average assumptions used to determine net periodic cost: | |||
Expected long-term return on plan assets | 4.20% | 4.20% | 4.20% |
Expected long-term return on plan assets | 4.20% | 4.20% | 4.20% |
Minimum | Pension Benefits | |||
Weighted-average assumptions used to determine net periodic cost: | |||
Rate of compensation increase | 3.00% | 3.00% | |
Maximum | Pension Benefits | |||
Weighted-average assumptions used to determine net periodic cost: | |||
Rate of compensation increase | 8.00% | 8.00% |
Employee Benefit Plans Employ_5
Employee Benefit Plans Employee Benefit Plans 5 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | |||
Employee benefit plans | |||
Regulatory adjustment | $ 0 | $ (465) | $ (859) |
GSWC | Pension Benefits | |||
Employee benefit plans | |||
Regulatory adjustment | (1,700) | $ (583) | $ (859) |
Pension Costs and Other Postretirement Benefit Costs | GSWC | |||
Employee benefit plans | |||
Regulatory asset authorized under settlement | 36,200 | ||
Two-way pension balancing account | Pension Costs and Other Postretirement Benefit Costs | GSWC | |||
Employee benefit plans | |||
Regulatory adjustment | (3,034) | ||
Regulatory asset authorized under settlement | $ 3,000 |
Employee Benefit Plans Employ_6
Employee Benefit Plans Employee Benefit Plans 6 (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Benefits | ||
Employee benefit plans | ||
Actual asset allocations | 100.00% | 100.00% |
Target asset allocations | 100.00% | |
Pension Benefits | Equity securities | ||
Employee benefit plans | ||
Actual asset allocations | 53.00% | 57.00% |
Target asset allocations | 60.00% | |
Pension Benefits | Debt securities | ||
Employee benefit plans | ||
Actual asset allocations | 43.00% | 39.00% |
Target asset allocations | 40.00% | |
Pension Benefits | Real Estate Funds | ||
Employee benefit plans | ||
Actual asset allocations | 4.00% | 4.00% |
Pension Benefits | Cash equivalents | ||
Employee benefit plans | ||
Actual asset allocations | 0.00% | 0.00% |
Post-Retirement Medical Benefits | ||
Employee benefit plans | ||
Actual asset allocations | 100.00% | 100.00% |
Target asset allocations | 100.00% | |
Post-Retirement Medical Benefits | Equity securities | ||
Employee benefit plans | ||
Actual asset allocations | 59.00% | 59.00% |
Target asset allocations | 60.00% | |
Post-Retirement Medical Benefits | Debt securities | ||
Employee benefit plans | ||
Actual asset allocations | 39.00% | 37.00% |
Target asset allocations | 40.00% | |
Post-Retirement Medical Benefits | Real Estate Funds | ||
Employee benefit plans | ||
Actual asset allocations | 0.00% | 0.00% |
Post-Retirement Medical Benefits | Cash equivalents | ||
Employee benefit plans | ||
Actual asset allocations | 2.00% | 4.00% |
Employee Benefit Plans Employ_7
Employee Benefit Plans Employee Benefit Plans 7 (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Employee benefit plans | |||
Fair Value | $ 162,529 | $ 173,648 | $ 150,872 |
Unfunded Commitments | 0 | 0 | |
Cash equivalents | |||
Employee benefit plans | |||
Fair Value | 590 | 489 | |
Unfunded Commitments | 0 | 0 | |
Fixed income fund | |||
Employee benefit plans | |||
Fair Value | 70,642 | 66,669 | |
Unfunded Commitments | 0 | 0 | |
U.S. small/mid cap funds | |||
Employee benefit plans | |||
Fair Value | 22,313 | 26,998 | |
Unfunded Commitments | 0 | 0 | |
U.S. large cap funds | |||
Employee benefit plans | |||
Fair Value | 46,133 | 53,985 | |
Unfunded Commitments | 0 | 0 | |
International funds | |||
Employee benefit plans | |||
Fair Value | 15,548 | 17,893 | |
Unfunded Commitments | 0 | 0 | |
Total equity funds | |||
Employee benefit plans | |||
Fair Value | 83,994 | 98,876 | |
Unfunded Commitments | 0 | ||
Real estate funds | |||
Employee benefit plans | |||
Fair Value | 7,303 | 7,614 | |
Unfunded Commitments | $ 0 | $ 0 |
Employee Benefit Plans Employ_8
Employee Benefit Plans Employee Benefit Plans 8 (Details) - Post-Retirement Medical Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee benefit plans | |||
Fair value of post-retirement plan assets | $ 10,010 | $ 11,053 | $ 10,538 |
Level 1 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 10,010 | 11,060 | |
Level 2 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Level 3 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Cash equivalents | Level 1 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 263 | 189 | |
Cash equivalents | Level 2 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Cash equivalents | Level 3 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Fixed income fund | Level 1 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 3,871 | 4,364 | |
Fixed income fund | Level 2 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Fixed income fund | Level 3 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
U.S. large cap funds | Level 1 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 5,876 | 6,507 | |
U.S. large cap funds | Level 2 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
U.S. large cap funds | Level 3 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Fair Value | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 10,010 | 11,060 | |
Fair Value | Cash equivalents | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 263 | 189 | |
Fair Value | Fixed income fund | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 3,871 | 4,364 | |
Fair Value | U.S. large cap funds | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | $ 5,876 | $ 6,507 | |
Minimum | Fixed income fund | |||
Employee benefit plans | |||
Investments Maturity Period | 1 year | ||
Maximum | Fixed income fund | |||
Employee benefit plans | |||
Investments Maturity Period | 20 years |
Employee Benefit Plans Employ_9
Employee Benefit Plans Employee Benefit Plans 9 (Details) - Pension Benefits - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee benefit plans | ||
Employer contributions | $ 6,012 | $ 6,504 |
Expected future employer's contribution | $ 3,600 |
Employee Benefit Plans Emplo_10
Employee Benefit Plans Employee Benefit Plans 10 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Pension Benefits | |
Employee benefit plans | |
2,019 | $ 7,343 |
2,020 | 7,934 |
2,021 | 8,597 |
2,022 | 9,283 |
2,023 | 9,860 |
Thereafter | 57,832 |
Total | 100,849 |
Post-Retirement Medical Benefits | |
Employee benefit plans | |
2,019 | 585 |
2,020 | 633 |
2,021 | 709 |
2,022 | 749 |
2,023 | 764 |
Thereafter | 3,172 |
Total | $ 6,612 |
Employee Benefit Plans Emplo_11
Employee Benefit Plans Employee Benefit Plans 11 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Healthcare Cost Trend Rate | |||
Initial health care cost for employees under age of 65 (as a percent) | 6.10% | ||
Ultimate health care cost for employees under age of 65 (as a percent) | 4.60% | ||
Initial Health care cost for employees of age 65 and over (as a percent) | 5.10% | ||
Ultimate health care cost for employees of age 65 and over (as a percent) | 4.20% | ||
Effects of one-percentage-point change in assumed health care cost trend rates | |||
Effect on total of service and interest cost components -1 Percentage Point Increase | $ 41 | ||
Effect on total of service and interest cost components -1 Percentage Point Decrease | (35) | ||
Effect on post-retirement benefit obligation -1 Percentage Point Increase | 759 | ||
Effect on post-retirement benefit obligation -1 Percentage Point Decrease | $ (659) | ||
Union plan | |||
Employee benefit plans | |||
Expected long-term return on plan assets | 6.00% | 6.00% | 7.00% |
Non-union plan | |||
Employee benefit plans | |||
Expected long-term return on plan assets | 4.20% | 4.20% | 4.20% |
Employee Benefit Plans Emplo_12
Employee Benefit Plans Employee Benefit Plans 12 (Details) - SERP - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance in Rabbi Trust | ||
Balance in Rabbi Trust | $ 16,400 | |
Fair value of assets held in Rabbi Trust | 0 | $ 0 |
Rabbi Trust | Level 1 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 16,412 | 15,227 |
Rabbi Trust | Level 2 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Level 3 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Cash equivalents | Level 1 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 166 | 45 |
Rabbi Trust | Cash equivalents | Level 2 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Cash equivalents | Level 3 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Fixed income fund | Level 1 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 6,251 | 6,072 |
Rabbi Trust | Fixed income fund | Level 2 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Fixed income fund | Level 3 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Equity securities | Level 1 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 9,995 | 9,110 |
Rabbi Trust | Equity securities | Level 2 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Equity securities | Level 3 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Fair Value | Rabbi Trust | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 16,412 | 15,227 |
Fair Value | Rabbi Trust | Cash equivalents | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 166 | 45 |
Fair Value | Rabbi Trust | Fixed income fund | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 6,251 | 6,072 |
Fair Value | Rabbi Trust | Equity securities | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | $ 9,995 | $ 9,110 |
Employee Benefit Plans Emplo_13
Employee Benefit Plans Employee Benefit Plans 13 (Details) - SERP - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 24,062 | $ 20,783 | |
Service cost | 1,096 | 930 | $ 799 |
Interest cost | 888 | 893 | 743 |
Actuarial (gain) loss | (1,104) | 1,872 | |
Benefits/expenses paid | (425) | (416) | |
Projected benefit obligation at end of year | 24,517 | 24,062 | $ 20,783 |
Changes in Plan Assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Funded Status: | |||
Net amount recognized as accrued pension cost | $ (24,517) | $ (24,062) |
Employee Benefit Plans Emplo_14
Employee Benefit Plans Employee Benefit Plans 14 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts recognized on the balance sheets: | ||||||
Non-current liabilities | $ 57,636 | $ 57,695 | ||||
SERP | ||||||
Amounts recognized on the balance sheets: | ||||||
Current liabilities | (433) | (409) | ||||
Non-current liabilities | 24,084 | 23,653 | ||||
Net amount recognized | (24,517) | (24,062) | ||||
Amounts recognized in regulatory assets consist of: | ||||||
Prior service cost (credit) | 0 | 0 | ||||
Net loss | 5,403 | 7,556 | ||||
Regulatory assets (liabilities) | $ 7,556 | $ 6,474 | $ 6,474 | 5,403 | 7,556 | $ 6,474 |
Unfunded accrued pension cost | 19,114 | 16,506 | ||||
Net liability (asset) recognized | 24,517 | 24,062 | ||||
Changes in plan assets and benefit obligations recognized in regulatory assets: | ||||||
Regulatory asset at beginning of year | 7,556 | 6,474 | ||||
Net (gain) loss | (1,104) | 1,872 | ||||
Amortization of prior service (cost) credit | 0 | (12) | ||||
Amortization of net gain (loss) | (1,049) | (778) | ||||
Change in regulatory asset | (2,153) | 1,082 | ||||
Regulatory asset (liability) at end of year | 5,403 | 7,556 | 6,474 | |||
Net periodic pension costs | 3,033 | 2,612 | $ 1,859 | |||
Change in regulatory asset | (2,153) | 1,082 | ||||
Total recognized in net periodic pension cost and regulatory asset (liability) | 880 | 3,694 | ||||
Estimated amounts that will be amortized from regulatory asset over the next fiscal year: | ||||||
Initial net asset (obligation) | 0 | 0 | ||||
Prior service cost | 0 | 0 | ||||
Net gain (loss) | $ (471) | $ (1,049) | ||||
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: | ||||||
Projected benefit obligation | 24,517 | 24,062 | $ 20,783 | |||
Accumulated benefit obligation | 21,229 | 20,742 | ||||
Fair value of plan assets | $ 0 | $ 0 | ||||
Weighted-average assumptions used to determine benefit obligations at December 31: | ||||||
Discount rate | 4.40% | 3.72% | ||||
Rate of compensation increase | 4.00% | 4.00% |
Employee Benefit Plans Emplo_15
Employee Benefit Plans Employee Benefit Plans 15 (Details) - SERP - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of Net Periodic Benefits Cost: | |||
Service cost | $ 1,096 | $ 930 | $ 799 |
Interest cost | 888 | 893 | 743 |
Amortization of prior service cost (credit) | 0 | 12 | 25 |
Amortization of actuarial (gain) loss | 1,049 | 777 | 292 |
Net periodic pension cost under accounting standards | $ 3,033 | $ 2,612 | $ 1,859 |
Weighted-average assumptions used to determine net periodic cost: | |||
Discount rate | 3.72% | 4.34% | 4.61% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Employee Benefit Plans Emplo_16
Employee Benefit Plans Employee Benefit Plans 16 (Details) - SERP $ in Thousands | Dec. 31, 2018USD ($) |
Employee benefit plans | |
2,019 | $ 433 |
2,020 | 1,339 |
2,021 | 1,396 |
2,022 | 1,387 |
2,023 | 1,378 |
Thereafter | 8,003 |
Total | $ 13,936 |
Employee Benefit Plans Emplo_17
Employee Benefit Plans Employee Benefit Plans 17 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Employer's contribution | $ 2,400 | $ 2,300 | $ 2,200 |
Employer discretionary contribution amount | $ 1,300 | $ 1,087 | $ 951 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)stock_planshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
Stock compensation plans | |||
Number of stock incentive plans | stock_plan | 5 | ||
Stock-based compensation recognized in the income statement, before taxes | $ 3,851 | $ 2,885 | $ 2,538 |
Tax benefits from exercise of stock-based awards | $ 0 | 0 | 581 |
Immediate vesting for employees of certain age and above | 55 years | ||
GSWC | |||
Stock compensation plans | |||
Stock-based compensation recognized in the income statement, before taxes | $ 3,397 | 2,420 | 2,118 |
Capitalized equity-based compensation cost | 199 | 195 | 155 |
Tax benefits from exercise of stock-based awards | 0 | 0 | 501 |
Nonqualified stock options | |||
Stock compensation plans | |||
Tax benefits from exercise of stock-based awards | $ 1,600 | $ 1,024 | $ 581 |
Granted (in shares) | shares | 0 | 0 | 0 |
Nonqualified stock options | GSWC | |||
Stock compensation plans | |||
Tax benefits from exercise of stock-based awards | $ 1,600 | $ 1,012 | $ 501 |
Restricted Stock Units | Employees and directors | |||
Stock compensation plans | |||
Stock-based compensation recognized in the income statement, before taxes | 3,851 | 2,885 | 2,538 |
Restricted Stock Units | Employees and directors | GSWC | |||
Stock compensation plans | |||
Stock-based compensation recognized in the income statement, before taxes | $ 3,397 | $ 2,420 | $ 2,118 |
Performance awards | |||
Stock compensation plans | |||
Vesting period | 3 years | ||
2000 Plan [Member] | Nonqualified stock options | |||
Stock compensation plans | |||
Granted (in shares) | shares | 0 | ||
2000 and 2008 Employee Plans | Nonqualified stock options | |||
Stock compensation plans | |||
Vesting period | 3 years | ||
Percentage of rights vesting in the first two years from the date of grant | 33.00% | ||
Percentage of rights vesting in the third year from the date of grant | 34.00% | ||
2000 and 2008 Employee Plans | Restricted Stock Units | |||
Stock compensation plans | |||
Common stock entitled to be received under each award | shares | 1 | ||
Percentage of rights vesting in the first two years from the date of grant | 33.00% | ||
Percentage of rights vesting in the third year from the date of grant | 34.00% | ||
2000 and 2008 Employee Plans | Performance awards | |||
Stock compensation plans | |||
Vesting period | 3 years | ||
Percentage of rights vesting in the first two years from the date of grant | 33.00% | ||
Percentage of rights vesting in the third year from the date of grant | 34.00% | ||
Maximum | |||
Stock compensation plans | |||
Chang in control, term | P24M | ||
Weighted Average [Member] | |||
Stock compensation plans | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 63 days | ||
Weighted Average [Member] | Restricted Stock Units | |||
Stock compensation plans | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 5 months 38 days |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans 2 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options | |||
Common Shares issued as a result of the exercise of stock options | 32,142 | 52,936 | 12,546 |
Options outstanding at the end of the period (in shares) | 35,560 | ||
Additional disclosure | |||
Cash proceeds from the exercise of stock options | $ 546,000 | $ 909,000 | $ 235,000 |
Tax benefit for the tax deduction from awards exercised | 0 | $ 0 | $ (581,000) |
Unrecognized compensation cost | $ 300,000 | ||
Maximum | |||
Additional disclosure | |||
Percentage of target amount of performance shares | 200.00% | ||
Minimum | |||
Additional disclosure | |||
Percentage of target amount of performance shares | 0.00% | ||
Weighted Average [Member] | |||
Additional disclosure | |||
Expected recognition period for unrecognized compensation cost | 1 year 9 months 63 days | ||
Stock options | |||
Number of Options | |||
Options Outstanding at the beginning of the period (in shares) | 69,202 | ||
Granted (in shares) | 0 | 0 | 0 |
Common Shares issued as a result of the exercise of stock options | 32,142 | ||
Forfeited or expired (in shares) | (1,500) | ||
Options outstanding at the end of the period (in shares) | 35,560 | 69,202 | |
Options exercisable at the end of the period (in shares) | 35,560 | ||
Weighted Average Exercise Price | |||
Options outstanding at the beginning of the period (in dollars per share) | $ 16.87 | ||
Exercised (in dollars per share) | 16.98 | ||
Forfeited or expired (in dollars per share) | 17.06 | ||
Options outstanding at the end of the period (in dollars per share) | 16.76 | $ 16.87 | |
Options exercisable at the end of the period (in dollars per share) | $ 16.76 | ||
Additional disclosure | |||
Weighted Average Remaining Contractual Term, Options outstanding | 9 months 88 days | ||
Weighted Average Remaining Contractual Term, Options Exercisable | 9 months 88 days | ||
Aggregate Intrinsic Value, Options outstanding | $ 1,788,028 | ||
Aggregate Intrinsic Value, Options Exercisable | 1,788,028 | ||
Total intrinsic value of options exercised | 1,367,000 | $ 1,718,000 | $ 308,000 |
Tax benefit for the tax deduction from awards exercised | (1,600,000) | $ (1,024,000) | (581,000) |
Restricted Stock Units | |||
Additional disclosure | |||
Unrecognized compensation cost related to performance awards | $ 611,000 | ||
Number of Restricted/Performance Share Units | |||
Restricted share units at the beginning of the period (in shares) | 107,287 | ||
Granted (in shares) | 33,655 | ||
Vested (in shares) | (37,509) | ||
Forfeited (in shares) | (1,198) | ||
Restricted share units at the end of the period (in shares) | 102,235 | 107,287 | |
Weighted Average Grant-Date Value | |||
Restricted share units at the beginning of the period (in dollars per share) | $ 32.75 | ||
Granted (in dollars per share) | 55.45 | ||
Vested (in dollars per share) | 47.29 | ||
Forfeited (in dollars per share) | 46.94 | ||
Restricted share units at the end of the period (in dollars per share) | $ 34.73 | $ 32.75 | |
Restricted Stock Units | Weighted Average [Member] | |||
Additional disclosure | |||
Expected recognition period for unrecognized compensation cost | 1 year 5 months 38 days | ||
Performance awards | |||
Additional disclosure | |||
Vesting period | 3 years | ||
Period to meet the performance goals | 3 years | ||
Number of Restricted/Performance Share Units | |||
Restricted share units at the beginning of the period (in shares) | 97,879 | ||
Granted (in shares) | 25,195 | ||
Performance criteria adjustment (in shares) | 3,803 | ||
Vested (in shares) | (31,216) | ||
Restricted share units at the end of the period (in shares) | 95,661 | 97,879 | |
Weighted Average Grant-Date Value | |||
Restricted share units at the beginning of the period (in dollars per share) | $ 41.49 | ||
Granted (in dollars per share) | 55.88 | ||
Performance criteria adjustment (in dollars per share) | 43.98 | ||
Vested (in dollars per share) | 41.55 | ||
Restricted share units at the end of the period (in dollars per share) | $ 45.36 | $ 41.49 | |
GSWC | |||
Additional disclosure | |||
Tax benefit for the tax deduction from awards exercised | $ 0 | $ 0 | (501,000) |
GSWC | Stock options | |||
Additional disclosure | |||
Tax benefit for the tax deduction from awards exercised | $ (1,600,000) | $ (1,012,000) | $ (501,000) |
Commitments 2 (Details)
Commitments 2 (Details) - GSWC - Water Supply $ in Thousands | Dec. 31, 2018USD ($) |
Estimated future minimum payments | |
2,019 | $ 407 |
2,020 | 407 |
2,021 | 407 |
2,022 | 407 |
2,023 | 407 |
Thereafter | 2,410 |
Total | 4,445 |
City of Claremont [Member] | |
Purchase commitments | |
Remaining amount of commitment | 2,200 |
Various third parties | |
Estimated future minimum payments | |
Total | $ 2,200 |
Commitments 3 (Details)
Commitments 3 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Water Purchase Commitments [Member] | GSWC | |
Purchase commitments | |
Total commitment under agreement | $ 4,445 |
Bear Valley Electric | Electric Service Utility Operations [Member] | |
Purchase commitments | |
Total commitment under agreement | $ 5,200 |
Commitments 4 (Details)
Commitments 4 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leases: | |||
Consolidated rent expense | $ 2,534 | $ 2,448 | $ 2,298 |
Future minimum payments under long-term non-cancelable operating leases | |||
2,019 | 2,818 | ||
2,020 | 2,530 | ||
2,021 | 1,497 | ||
2,022 | 1,007 | ||
2,023 | 546 | ||
Thereafter | 605 | ||
Total | $ 9,003 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | Jun. 08, 2017USD ($)connection | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2018USD ($)customer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Contingencies | ||||||
Net utility plant | $ 1,204,992 | $ 1,296,310 | $ 1,204,992 | $ 1,150,926 | ||
Gain on sale of assets | $ 8,300 | |||||
Proceeds from Sale of Other Assets | $ 34,300 | |||||
GSWC | ||||||
Contingencies | ||||||
Net utility plant | 1,197,940 | 1,281,092 | 1,197,940 | |||
Gain on sale of assets | $ 8,300 | |||||
Environmental Clean-Up and Remediation | GSWC | ||||||
Contingencies | ||||||
Amount spent in clean-up and remediation activities | 5,900 | |||||
Amount paid by the State of California Underground Storage Tank Fund for clean-up and remediation of plant facilities | 1,500 | |||||
Accrued liability for the estimated additional cost to complete the clean-up at the site | $ 1,300 | |||||
City of Claremont [Member] | ||||||
Contingencies | ||||||
Litigation Settlement, Expense | 2,000 | |||||
Legal Fees | 1,800 | |||||
Litigation Settlement Interest | $ 200 | |||||
City of Claremont [Member] | GSWC | ||||||
Contingencies | ||||||
Litigation Settlement, Expense | $ 5,900 | |||||
Number of customers served through water systems | customer | 11,000 | |||||
Maximum | City of Claremont [Member] | ||||||
Contingencies | ||||||
Litigation Settlement, Expense | $ 7,600 | |||||
Ojai Water System [Member] | ||||||
Contingencies | ||||||
Number of customers served through water systems | connection | 2,900 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2017 | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Details of reportable segment | |||||||||||||
Operating revenues | $ 111,005 | $ 124,182 | $ 106,901 | $ 94,728 | $ 104,180 | $ 124,418 | $ 113,195 | $ 98,810 | $ 436,816 | $ 440,603 | $ 436,087 | ||
Operating income (loss) | 22,749 | 33,975 | 25,568 | 18,691 | 21,959 | 38,534 | 42,026 | 24,576 | 100,983 | 127,095 | 114,192 | ||
Interest expense, net | (19,855) | (20,792) | (21,235) | ||||||||||
Net utility plant | 1,296,310 | 1,204,992 | 1,296,310 | 1,204,992 | 1,150,926 | ||||||||
Depreciation and amortization expense | [1] | 40,425 | 39,031 | 38,850 | |||||||||
Income tax expense/(benefit) | 18,017 | 38,974 | 34,735 | ||||||||||
Capital additions | $ 126,561 | 113,126 | 129,867 | ||||||||||
Parent Company | |||||||||||||
Details of reportable segment | |||||||||||||
Number of reportable segments | segment | 3 | ||||||||||||
Operating revenues | $ 0 | 0 | 0 | ||||||||||
Operating income (loss) | 7 | (96) | (19) | ||||||||||
Interest expense, net | (451) | (248) | (134) | ||||||||||
Net utility plant | 0 | 0 | 0 | 0 | 0 | ||||||||
Depreciation and amortization expense | [1] | 0 | 0 | ||||||||||
Income tax expense/(benefit) | (2,221) | (546) | |||||||||||
Capital additions | $ 0 | 0 | 0 | ||||||||||
GSWC | |||||||||||||
Details of reportable segment | |||||||||||||
Number of reportable segments | segment | 2 | ||||||||||||
Operating revenues | 75,226 | 95,564 | 84,574 | 74,244 | 75,136 | 99,913 | 88,346 | 76,906 | $ 329,608 | 340,301 | 338,702 | ||
Operating income (loss) | 14,080 | $ 27,540 | $ 22,645 | $ 16,297 | 15,780 | $ 32,986 | $ 35,229 | $ 21,876 | 80,562 | 105,871 | 95,187 | ||
Net utility plant | 1,281,092 | 1,197,940 | 1,281,092 | 1,197,940 | |||||||||
Depreciation and amortization expense | 38,395 | 37,852 | 37,804 | ||||||||||
Income tax expense/(benefit) | 13,603 | 34,059 | 28,609 | ||||||||||
GSWC | Water Service Utility Operations [Member] | |||||||||||||
Details of reportable segment | |||||||||||||
Operating revenues | 295,258 | 306,332 | 302,931 | ||||||||||
Operating income (loss) | 74,342 | 98,678 | 87,331 | ||||||||||
Interest expense, net | (18,403) | (18,909) | (19,696) | ||||||||||
Net utility plant | 1,218,468 | 1,137,995 | 1,218,468 | 1,137,995 | 1,089,031 | ||||||||
Depreciation and amortization expense | [1] | 36,137 | 35,706 | 35,777 | |||||||||
Income tax expense/(benefit) | 12,391 | 32,212 | 25,894 | ||||||||||
Capital additions | 110,934 | 104,546 | 120,850 | ||||||||||
GSWC | Electric Service Utility Operations [Member] | |||||||||||||
Details of reportable segment | |||||||||||||
Operating revenues | 34,350 | 33,969 | 35,771 | ||||||||||
Operating income (loss) | 6,220 | 7,193 | 7,856 | ||||||||||
Interest expense, net | (1,328) | (1,380) | (1,337) | ||||||||||
Net utility plant | 62,624 | 59,945 | 62,624 | 59,945 | 56,280 | ||||||||
Depreciation and amortization expense | [1] | 2,258 | 2,146 | 2,027 | |||||||||
Income tax expense/(benefit) | 1,212 | 1,847 | 2,715 | ||||||||||
Capital additions | 5,420 | 5,941 | 7,063 | ||||||||||
American States Utility Services [Member] | Contracted Services [Member] | |||||||||||||
Details of reportable segment | |||||||||||||
Operating revenues | 107,208 | 100,302 | 97,385 | ||||||||||
Operating income (loss) | 20,414 | 21,320 | 19,024 | ||||||||||
Interest expense, net | 327 | (255) | (68) | ||||||||||
Net utility plant | $ 15,218 | $ 7,052 | 15,218 | 7,052 | 5,615 | ||||||||
Depreciation and amortization expense | [1] | 2,030 | 1,179 | 1,046 | |||||||||
Income tax expense/(benefit) | 4,939 | 7,136 | 6,672 | ||||||||||
Capital additions | $ 10,207 | $ 2,639 | $ 1,954 | ||||||||||
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 50 years | 50 years | |||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjFhYmU2YTY0ZGY2NTQ2MjdhMjBjODQ2ZTE2YzBkZTVhfFRleHRTZWxlY3Rpb246NUM4NTcwM0FBNTE1NUUwQjlERjBCMDRBQjYwMEU2NTkM} |
Business Segments 2 (Details)
Business Segments 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | |||
Total utility plant | $ 1,296,310 | $ 1,204,992 | $ 1,150,926 |
Other assets | 205,123 | 211,742 | |
Total Assets | 1,501,433 | 1,416,734 | |
Parent Company | |||
Segment Reporting [Abstract] | |||
Total utility plant | 0 | 0 | 0 |
Total Assets | 659,205 | 593,757 | |
GSWC | |||
Segment Reporting [Abstract] | |||
Total utility plant | 1,281,092 | 1,197,940 | |
Total Assets | 1,389,222 | 1,326,823 | |
Segment Reporting Information [Line Items] | |||
Depreciation on transportation equipment | 238 | 242 | 259 |
Contracted Services [Member] | American States Utility Services [Member] | |||
Segment Reporting [Abstract] | |||
Total utility plant | $ 15,218 | $ 7,052 | $ 5,615 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in allowance for doubtful accounts | ||||||
Balance at beginning of year | $ 1,041 | $ 764 | $ 944 | |||
Provision charged to expense | 841 | 989 | 619 | |||
Accounts written off, net of recoveries | 931 | 712 | 799 | |||
Balance at end of year | 951 | 1,041 | 764 | |||
Components of allowance for doubtful accounts | ||||||
Allowance for doubtful accounts related to accounts receivable-customer | $ 892 | $ 806 | $ 702 | |||
Allowance for doubtful accounts related to other accounts receivable | 59 | 235 | 62 | |||
Total allowance for doubtful accounts | 1,041 | 764 | 944 | 951 | 1,041 | 764 |
GSWC | ||||||
Changes in allowance for doubtful accounts | ||||||
Balance at beginning of year | 865 | 761 | 919 | |||
Provision charged to expense | 850 | 816 | 627 | |||
Accounts written off, net of recoveries | 764 | 712 | 785 | |||
Balance at end of year | 951 | 865 | 761 | |||
Components of allowance for doubtful accounts | ||||||
Allowance for doubtful accounts related to accounts receivable-customer | 892 | 806 | 702 | |||
Allowance for doubtful accounts related to other accounts receivable | 59 | 59 | 59 | |||
Total allowance for doubtful accounts | $ 865 | $ 761 | $ 919 | $ 951 | $ 865 | $ 761 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Taxes and Interest Paid: | |||
Income taxes paid | $ 21,084 | $ 13,615 | $ 10,916 |
Interest paid | 23,471 | 22,762 | 22,305 |
Non-Cash Transactions: | |||
Accrued payables for investment in utility plant | 27,403 | 20,131 | 17,236 |
Property installed by developers and conveyed | 2,082 | 2,082 | 5,395 |
GSWC | |||
Taxes and Interest Paid: | |||
Income taxes paid | 19,448 | 4,822 | 8,437 |
Interest paid | 22,721 | 22,282 | 22,078 |
Non-Cash Transactions: | |||
Accrued payables for investment in utility plant | 27,403 | 20,128 | 17,207 |
Property installed by developers and conveyed | $ 2,082 | $ 2,082 | $ 5,395 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 08, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Operating revenues | $ 111,005 | $ 124,182 | $ 106,901 | $ 94,728 | $ 104,180 | $ 124,418 | $ 113,195 | $ 98,810 | $ 436,816 | $ 440,603 | $ 436,087 | |
Operating income (loss) | 22,749 | 33,975 | 25,568 | 18,691 | 21,959 | 38,534 | 42,026 | 24,576 | 100,983 | 127,095 | 114,192 | |
Net Income | $ 13,789 | $ 22,952 | $ 16,348 | $ 10,782 | $ 12,868 | $ 21,006 | $ 22,792 | $ 12,701 | $ 63,871 | $ 69,367 | $ 59,743 | |
Earnings Per Share, Basic | $ 0.37 | $ 0.62 | $ 0.44 | $ 0.29 | $ 0.35 | $ 0.57 | $ 0.62 | $ 0.35 | $ 1.73 | $ 1.88 | $ 1.63 | |
Earnings Per Share, Diluted | $ 0.37 | $ 0.62 | $ 0.44 | $ 0.29 | $ 0.35 | $ 0.57 | $ 0.62 | $ 0.34 | $ 1.72 | $ 1.88 | $ 1.62 | |
Gain on sale of assets | $ 8,300 | |||||||||||
GSWC | ||||||||||||
Operating revenues | $ 75,226 | $ 95,564 | $ 84,574 | $ 74,244 | $ 75,136 | $ 99,913 | $ 88,346 | $ 76,906 | $ 329,608 | $ 340,301 | $ 338,702 | |
Operating income (loss) | 14,080 | 27,540 | 22,645 | 16,297 | 15,780 | 32,986 | 35,229 | 21,876 | 80,562 | 105,871 | 95,187 | |
Net Income | $ 7,555 | $ 17,919 | $ 13,648 | $ 8,890 | $ 7,309 | $ 17,336 | 18,363 | $ 10,749 | $ 48,012 | 53,757 | $ 46,969 | |
Gain on sale of assets | 8,300 | |||||||||||
Cash received for reimbursement of legal and other defense costs | $ (1,800) | |||||||||||
Restatement Adjustment | American States Utility Services [Member] | ||||||||||||
Operating revenues | $ 1,000 |
SCHEDULE I - CONDENSED FINANC_2
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and equivalents | $ 7,141 | $ 214 | $ 436 | |
Income taxes receivable and other receivables | 2,164 | 4,737 | ||
Total current assets | 131,468 | 155,463 | ||
Deferred taxes and other assets | 5,322 | 5,667 | ||
Total Assets | 1,501,433 | 1,416,734 | ||
Liabilities and Capitalization | ||||
Notes payable to bank | 0 | 59,000 | ||
Income taxes payable | 360 | 225 | ||
Other Liabilities, Current | 10,731 | 15,109 | ||
Total current liabilities | 146,585 | 156,662 | ||
Notes payable to banks | 95,500 | 0 | ||
Deferred Tax Liabilities, Net, Noncurrent | 114,216 | 115,703 | ||
Liabilities, Noncurrent | 515,538 | 409,088 | ||
Common shareholders' equity | 558,223 | 529,945 | $ 494,297 | $ 465,945 |
Total capitalization | 839,310 | 850,984 | ||
Total Capitalization and Liabilities | 1,501,433 | 1,416,734 | ||
Parent Company | ||||
Assets | ||||
Cash and equivalents | 34 | 48 | ||
Inter-company loan receivables | 76,072 | 45,955 | ||
Total current assets | 76,106 | 46,003 | ||
Deferred taxes and other assets | 8,769 | 8,422 | ||
Investments in subsidiaries | 574,330 | 539,332 | ||
Total Assets | 659,205 | 593,757 | ||
Liabilities and Capitalization | ||||
Notes payable to bank | 0 | 59,000 | ||
Income taxes payable | 3,672 | 2,780 | ||
Intercompany payable | 0 | 73 | ||
Other Liabilities, Current | 291 | 509 | ||
Total current liabilities | 3,963 | 62,362 | ||
Notes payable to banks | 95,500 | 0 | ||
Income taxes payable and other liabilities | 1,519 | 1,450 | ||
Liabilities, Noncurrent | 97,019 | 1,450 | ||
Common shareholders' equity | 558,223 | 529,945 | ||
Total capitalization | 558,223 | 529,945 | ||
Total Capitalization and Liabilities | $ 659,205 | $ 593,757 |
SCHEDULE I - CONDENSED FINANC_3
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT 2 (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed financial statements | |||||||||||
Income before income tax expense | $ 81,888 | $ 108,341 | $ 94,478 | ||||||||
Net Income | $ 13,789 | $ 22,952 | $ 16,348 | $ 10,782 | $ 12,868 | $ 21,006 | $ 22,792 | $ 12,701 | $ 63,871 | $ 69,367 | $ 59,743 |
Weighted Average Number of Shares Outstanding (in shares) | 36,733 | 36,638 | 36,552 | ||||||||
Earnings Per Share, Basic | $ 0.37 | $ 0.62 | $ 0.44 | $ 0.29 | $ 0.35 | $ 0.57 | $ 0.62 | $ 0.35 | $ 1.73 | $ 1.88 | $ 1.63 |
Weighted Average Number of Diluted Common Shares Outstanding | 36,936 | 36,844 | 36,750 | ||||||||
Earnings Per Share, Diluted | $ 0.37 | $ 0.62 | $ 0.44 | $ 0.29 | $ 0.35 | $ 0.57 | $ 0.62 | $ 0.34 | $ 1.72 | $ 1.88 | $ 1.62 |
Dividends Declared Per Common Share (in dollars per share) | $ 1.06 | $ 0.994 | $ 0.914 | ||||||||
Parent Company | |||||||||||
Condensed financial statements | |||||||||||
Operating revenues and other income | $ 0 | $ 0 | $ 71 | ||||||||
Operating Expenses and Other Expenses | 305 | 344 | 19 | ||||||||
Operating income / (loss) | (305) | (344) | 52 | ||||||||
Equity in earnings of subsidiaries | 63,651 | 67,490 | 59,145 | ||||||||
Income before income tax expense | 63,346 | 67,146 | 59,197 | ||||||||
Income tax expense (benefit) | (525) | (2,221) | (546) | ||||||||
Net Income | $ 63,871 | $ 69,367 | $ 59,743 | ||||||||
Earnings Per Share, Basic | $ 1.73 | $ 1.88 | $ 1.63 | ||||||||
Earnings Per Share, Diluted | 1.72 | 1.88 | 1.62 | ||||||||
Dividends Declared Per Common Share (in dollars per share) | $ 1.060 | $ 0.994 | $ 0.914 |
SCHEDULE I - CONDENSED FINANC_4
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Financing Activities: | |||
Proceeds from stock option exercises | $ 546 | $ 909 | $ 235 |
Net change in notes payable to banks | (36,500) | 31,000 | (62,000) |
Dividends paid | (38,937) | (36,417) | (33,408) |
Other | (1,253) | (1,292) | (1,490) |
Net increase (decrease) in cash and cash equivalents | 6,927 | (222) | (3,928) |
Cash and cash equivalents, beginning of year | 214 | 436 | 4,364 |
Cash and cash equivalents, end of year | 7,141 | 214 | 436 |
Parent Company | |||
Condensed financial statements | |||
Cash Flows From Operating Activities | 79,877 | 36,024 | 34,878 |
Cash Flows From Investing Activities: | |||
Loans (made to)/repaid from, wholly-owned subsidiaries | (30,500) | 30,500 | (64,500) |
Investment Company, Net Assets, Period Increase (Decrease) | (47,500) | 0 | 0 |
Net cash used | (78,000) | 30,500 | (64,500) |
Cash Flows From Financing Activities: | |||
Proceeds from stock option exercises | 546 | 909 | 235 |
Net change in notes payable to banks | (36,500) | 31,000 | (62,000) |
Dividends paid | (38,937) | (36,417) | (33,408) |
Other | 0 | 0 | (9) |
Net cash provided (used) | (1,891) | (66,508) | 28,818 |
Net increase (decrease) in cash and cash equivalents | (14) | 16 | (804) |
Cash and cash equivalents, beginning of year | 48 | 32 | 836 |
Cash and cash equivalents, end of year | $ 34 | $ 48 | $ 32 |
SCHEDULE I - CONDENSED FINANC_5
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT 4 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Note payable to banks | |||
Maximum borrowing capacity | $ 150,000,000 | ||
Short-term borrowing activities (excluding letters of credit) | |||
Balance outstanding at the end of the period | $ 0 | $ 59,000,000 | |
Short-term borrowing (excluding letters of credit) | |||
Short-term borrowing activities (excluding letters of credit) | |||
Balance outstanding at the end of the period | $ 59,000,000 | ||
Interest Rate at the end of the period (as a percent) | 3.19% | 2.28% | |
Average Amount Outstanding | $ 69,559,000 | $ 65,242,000 | |
Weighted Average Annual Interest Rate (as a percent) | 2.66% | 1.69% | |
Maximum Amount Outstanding | $ 95,500,000 | $ 102,500,000 | |
Syndicated revolving credit facility | |||
Note payable to banks | |||
Variable rate basis | Euro rate | ||
Syndicated revolving credit facility | Minimum | |||
Short-term borrowing activities (excluding letters of credit) | |||
Interest coverage ratio | 325.00% | ||
Syndicated revolving credit facility | Maximum | |||
Short-term borrowing activities (excluding letters of credit) | |||
Total funded debt ratio | 65.00% | ||
Syndicated revolving credit facility | Letter of Credit Irrevocable Franchise Agreement with City of Rancho Cordova [Member] | |||
Note payable to banks | |||
Letter of credit, amount | $ 15,000,000 | ||
Parent Company | |||
Note payable to banks | |||
Maximum borrowing capacity | 150,000,000 | ||
Short-term borrowing activities (excluding letters of credit) | |||
Balance outstanding at the end of the period | $ 0 | 59,000,000 | |
Parent Company | Syndicated revolving credit facility | |||
Short-term borrowing activities (excluding letters of credit) | |||
Interest coverage ratio | 623.00% | ||
Total funded debt ratio | 43.00% | ||
Parent Company | Syndicated revolving credit facility | Minimum | |||
Short-term borrowing activities (excluding letters of credit) | |||
Interest coverage ratio | 325.00% | ||
Total funded debt ratio | 65.00% | ||
Parent Company | Syndicated revolving credit facility | Maximum | |||
Short-term borrowing activities (excluding letters of credit) | |||
Total funded debt ratio | 100.00% | ||
Parent Company | Syndicated revolving credit facility | Letters of credit | |||
Note payable to banks | |||
Maximum borrowing capacity | $ 25,000,000 | ||
Letter of credit, amount | $ 900,000 | ||
Letter of credit fee (as a percent) | 0.65% | ||
Parent Company | Syndicated revolving credit facility | Letter of Credit - GSWC business automobile insurance policy | |||
Note payable to banks | |||
Letter of credit, amount | $ 340,000 | ||
Parent Company | Syndicated revolving credit facility | Letter of Credit - Purchase of power | |||
Note payable to banks | |||
Letter of credit, amount | 585,000,000 | ||
Subsidiaries [Member] | |||
Short-term borrowing activities (excluding letters of credit) | |||
Dividends paid | (79,000,000) | (36,500,000) | $ (33,800,000) |
GSWC | |||
Short-term borrowing activities (excluding letters of credit) | |||
Dividends paid | (68,850,000) | (27,680,000) | $ (25,450,000) |
Syndicated revolving credit facility | Syndicated revolving credit facility | |||
Note payable to banks | |||
Maximum borrowing capacity | $ 150,000,000 | ||
Notes Receivable | Notes Payable, Other Payables [Member] | GSWC | |||
Short-term borrowing activities (excluding letters of credit) | |||
Notes Receivable, Related Parties, Current | $ 0 |