Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-14431 | |
Entity Registrant Name | American States Water Co | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 95-4676679 | |
Entity Address, Address Line One | 630 E. Foothill Blvd | |
Entity Address, City or Town | San Dimas | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91773-1212 | |
City Area Code | 909 | |
Local Phone Number | 394-3600 | |
Title of 12(b) Security | Common shares | |
Trading Symbol | AWR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 36,913,017 | |
Entity Central Index Key | 0001056903 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
GOLDEN STATE WATER COMPANY | ||
Entity Information [Line Items] | ||
Entity File Number | 001-12008 | |
Entity Registrant Name | Golden State Water Co | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 95-1243678 | |
Entity Address, Address Line One | 630 E. Foothill Blvd | |
Entity Address, City or Town | San Dimas | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91773-1212 | |
City Area Code | 909 | |
Local Phone Number | 394-3600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 170 | |
Entity Central Index Key | 0000092116 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment | ||
Regulated utility plant, at cost | $ 2,080,048 | $ 2,043,791 |
Non-utility property, at cost | 37,053 | 36,578 |
Total | 2,117,101 | 2,080,369 |
Less - Accumulated depreciation | (574,678) | (568,326) |
Net property, plant and equipment | 1,542,423 | 1,512,043 |
Other Property and Investments | ||
Goodwill | 1,116 | 1,116 |
Other property and investments | 35,811 | 35,318 |
Total other property and investments | 36,927 | 36,434 |
Current Assets | ||
Cash and cash equivalents | 6,951 | 36,737 |
Accounts receivable - customers, less allowance for doubtful accounts | 22,016 | 29,162 |
Unbilled receivable | 23,315 | 25,836 |
Receivable from the U.S. government (Note 2) | 23,606 | 25,182 |
Other accounts receivable, less allowance for doubtful accounts | 2,574 | 3,960 |
Income taxes receivable | 68 | 103 |
Materials and supplies, at weighted average cost | 8,751 | 8,619 |
Regulatory assets — current | 10,628 | 13,088 |
Prepayments and other current assets | 10,028 | 5,555 |
Unrealized gains on purchased power contracts | 1,224 | 0 |
Contract assets | 9,751 | 8,873 |
Total current assets | 118,912 | 157,115 |
Other Assets | ||
Unbilled revenue- receivable from U.S. government | 9,305 | 9,945 |
Receivable from the U.S. government ( Note 2) | 52,373 | 49,488 |
Contract assets (Note 2) | 3,975 | 1,384 |
Operating lease right-of-use assets | 10,718 | 11,146 |
Regulatory Assets | 7,635 | 3,451 |
Other | 10,553 | 10,597 |
Total other assets | 94,559 | 86,011 |
Total Assets | 1,792,821 | 1,791,603 |
Capitalization | ||
Common Stock, Value, Issued | 257,528 | 256,666 |
Earnings reinvested in the business | 391,865 | 385,007 |
Total common shareholders’ equity | 649,393 | 641,673 |
Long-term debt | 440,326 | 440,348 |
Total capitalization | 1,089,719 | 1,082,021 |
Current Liabilities | ||
Long-term debt — current | 364 | 358 |
Accounts payable | 57,360 | 63,788 |
Income taxes payable | 6,474 | 6,783 |
Accrued other taxes | 9,888 | 11,902 |
Accrued employee expenses | 18,138 | 15,122 |
Accrued interest | 7,277 | 4,832 |
Unrealized loss on purchased power contracts | 0 | 1,537 |
Contract liabilities | 1,049 | 1,800 |
Operating lease liabilities | 2,010 | 2,013 |
Other | 10,450 | 10,437 |
Total current liabilities | 113,010 | 118,572 |
Other Credits | ||
Notes payable to bank | 129,000 | 134,200 |
Advances for construction | 65,622 | 63,374 |
Contributions in aid of construction - net | 141,366 | 140,332 |
Deferred income taxes | 131,894 | 131,172 |
Unamortized investment tax credits | 1,206 | 1,224 |
Accrued pension and other postretirement benefits | 96,201 | 95,639 |
Operating lease liabilities | 9,159 | 9,636 |
Other | 15,644 | 15,433 |
Total other credits | 590,092 | 591,010 |
Commitments and Contingencies | ||
Total Capitalization and Liabilities | $ 1,792,821 | $ 1,791,603 |
Consolidated Balance Sheets(Parenthetical) | ||
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 |
Common Stock, Shares, Outstanding | 36,913,017 | 36,889,103 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Golden State Water Company | ||
Property, Plant and Equipment | ||
Total | $ 1,933,425 | $ 1,902,772 |
Less - Accumulated depreciation | (507,250) | (502,283) |
Net property, plant and equipment | 1,426,175 | 1,400,489 |
Other Property and Investments | ||
Total other property and investments | 33,736 | 33,240 |
Current Assets | ||
Cash and cash equivalents | 2,452 | 35,578 |
Accounts receivable - customers, less allowance for doubtful accounts | 19,707 | 26,920 |
Unbilled receivable | 17,805 | 19,330 |
Other accounts receivable, less allowance for doubtful accounts | 1,792 | 3,255 |
Intercompany receivable | 1,113 | 1,107 |
Materials and supplies, at weighted average cost | 3,926 | 3,659 |
Regulatory assets — current | 10,291 | 11,325 |
Prepayments and other current assets | 6,632 | 4,114 |
Total current assets | 63,718 | 105,288 |
Other Assets | ||
Notes Receivable from AWR parent | 12,000 | 0 |
Operating lease right-of-use assets | 10,573 | 11,103 |
Regulatory Assets | 5,939 | 1,048 |
Other | 9,582 | 9,614 |
Total other assets | 38,094 | 21,765 |
Total Assets | 1,561,723 | 1,560,782 |
Capitalization | ||
Common Stock, Value, Issued | 355,733 | 354,906 |
Earnings reinvested in the business | 228,178 | 228,392 |
Total common shareholders’ equity | 583,911 | 583,298 |
Long-term debt | 440,326 | 440,348 |
Total capitalization | 1,024,237 | 1,023,646 |
Current Liabilities | ||
Long-term debt — current | 364 | 358 |
Accounts payable | 39,835 | 45,613 |
Income taxes payable | 4,221 | 4,612 |
Accrued other taxes | 8,333 | 10,382 |
Accrued employee expenses | 14,639 | 12,351 |
Accrued interest | 6,972 | 4,545 |
Operating lease liabilities | 1,969 | 1,956 |
Other | 9,408 | 9,403 |
Total current liabilities | 85,741 | 89,220 |
Other Credits | ||
Advances for construction | 65,602 | 63,354 |
Contributions in aid of construction - net | 139,732 | 138,691 |
Deferred income taxes | 125,062 | 124,581 |
Unamortized investment tax credits | 1,206 | 1,224 |
Accrued pension and other postretirement benefits | 96,096 | 95,570 |
Operating lease liabilities | 9,095 | 9,636 |
Other | 14,952 | 14,860 |
Total other credits | 451,745 | 447,916 |
Commitments and Contingencies | ||
Total Capitalization and Liabilities | $ 1,561,723 | $ 1,560,782 |
Consolidated Balance Sheets(Parenthetical) | ||
Common Stock, Shares Authorized | 1,000 | 1,000 |
Common Stock, Shares, Outstanding | 170 | 170 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 6,478 | $ 5,263 |
Other accounts receivable, allowance for doubtful accounts | $ 53 | $ 53 |
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 |
Common Stock, Shares, Outstanding | 36,913,017 | 36,889,103 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
GOLDEN STATE WATER COMPANY | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 5,887 | $ 4,907 |
Other accounts receivable, allowance for doubtful accounts | $ 53 | $ 53 |
Common Stock, Shares Authorized | 1,000 | 1,000 |
Common Stock, Shares, Outstanding | 170 | 170 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Revenues | ||
Water | $ 75,029 | $ 71,424 |
Electric | 11,539 | 10,968 |
Contracted services | 30,492 | 26,685 |
Total operating revenues | 117,060 | 109,077 |
Operating Expenses | ||
Water purchased | 15,239 | 14,092 |
Power purchased for pumping | 2,145 | 1,859 |
Groundwater production assessment | 4,440 | 4,148 |
Power purchased for resale | 3,198 | 3,043 |
Supply cost balancing accounts | (2,427) | (2,165) |
Other operation | 8,217 | 8,486 |
Administrative and general | 22,053 | 22,950 |
Depreciation and amortization | 9,560 | 8,811 |
Maintenance | 2,662 | 3,884 |
Property and other taxes | 5,940 | 5,159 |
ASUS construction | 15,704 | 13,111 |
Total operating expenses | 86,731 | 83,378 |
Operating Income | 30,329 | 25,699 |
Other Income and Expenses | ||
Interest expense | (6,258) | (6,050) |
Interest income | 455 | 558 |
Other, net | 656 | (2,234) |
Total other income and expenses | (5,147) | (7,726) |
Income from operations before income tax expense | 25,182 | 17,973 |
Income tax expense | 5,914 | 3,901 |
Net Income | $ 19,268 | $ 14,072 |
Basic Earnings Per Common Share | ||
Weighted Average Number of Common Shares Outstanding (in shares) | 36,898 | 36,860 |
Basic Earnings Per Common Share (in dollars per share) | $ 0.52 | $ 0.38 |
Fully Diluted Earnings Per Share | ||
Weighted Average Number of Diluted Shares (in shares) | 36,993 | 36,969 |
Fully Diluted Earnings Per Common Share (in dollars per share) | $ 0.52 | $ 0.38 |
Dividends Declared Per Common Share (in dollars per share) | $ 0.335 | $ 0.305 |
GOLDEN STATE WATER COMPANY | ||
Operating Revenues | ||
Water | $ 75,029 | $ 71,424 |
Electric | 0 | 10,968 |
Total operating revenues | 75,029 | 82,392 |
Operating Expenses | ||
Water purchased | 15,239 | 14,092 |
Power purchased for pumping | 2,145 | 1,859 |
Groundwater production assessment | 4,440 | 4,148 |
Power purchased for resale | 0 | 3,043 |
Supply cost balancing accounts | (2,920) | (2,165) |
Other operation | 5,813 | 6,630 |
Administrative and general | 14,435 | 16,838 |
Depreciation and amortization | 8,062 | 8,029 |
Maintenance | 1,740 | 3,193 |
Property and other taxes | 5,016 | 4,633 |
Total operating expenses | 53,970 | 60,300 |
Operating Income | 21,059 | 22,092 |
Other Income and Expenses | ||
Interest expense | (5,798) | (5,777) |
Interest income | 87 | 318 |
Other, net | 651 | (2,203) |
Total other income and expenses | (5,060) | (7,662) |
Income from operations before income tax expense | 15,999 | 14,430 |
Income tax expense | 3,768 | 3,228 |
Net Income | $ 12,231 | $ 11,202 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGE IN COMMON SHAREHOLDERS' EQUITY Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | GOLDEN STATE WATER COMPANY | GOLDEN STATE WATER COMPANYCommon Stock [Member] | GOLDEN STATE WATER COMPANYRetained Earnings [Member] |
Balance (in shares) at Dec. 31, 2019 | 36,847,000 | 165 | ||||
Beginning balances at Dec. 31, 2019 | $ 601,530 | $ 255,566 | $ 345,964 | $ 551,188 | $ 293,754 | $ 257,434 |
Add: | ||||||
Net income | $ 14,072 | 14,072 | 11,202 | 11,202 | ||
Exercise of stock options and other issuance of Common Shares (in shares) | 37,157 | 37,000 | ||||
Exercise of stock options and other issuances of Common Shares | $ 30 | $ 30 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements | 193 | 193 | 254 | 254 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 52 | 52 | 46 | 46 | ||
Deduct: | ||||||
Dividends on Common Shares | 11,242 | 11,242 | 11,250 | 11,250 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 52 | 52 | 46 | 46 | ||
Ending balances at Mar. 31, 2020 | 604,583 | $ 255,841 | 348,742 | 551,394 | $ 294,054 | 257,340 |
Balances (in shares) at Mar. 31, 2020 | 36,884,000 | 165 | ||||
Balance (in shares) at Dec. 31, 2020 | 36,889,000 | 170 | ||||
Beginning balances at Dec. 31, 2020 | 641,673 | $ 256,666 | 385,007 | 583,298 | $ 354,906 | 228,392 |
Add: | ||||||
Net income | $ 19,268 | 19,268 | 12,231 | 12,231 | ||
Exercise of stock options and other issuance of Common Shares (in shares) | 23,914 | 24,000 | ||||
Exercise of stock options and other issuances of Common Shares | $ 0 | $ 0 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements | 813 | 813 | 782 | 782 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 49 | 49 | 45 | 45 | ||
Deduct: | ||||||
Dividends on Common Shares | 12,361 | 12,361 | 12,400 | 12,400 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 49 | 49 | 45 | 45 | ||
Ending balances at Mar. 31, 2021 | $ 649,393 | $ 257,528 | $ 391,865 | $ 583,911 | $ 355,733 | $ 228,178 |
Balances (in shares) at Mar. 31, 2021 | 36,913,000 | 170 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows From Operating Activities: | ||
Net income | $ 19,268 | $ 14,072 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,656 | 8,892 |
Provision for doubtful accounts | 255 | 273 |
Deferred income taxes and investment tax credits | (343) | 574 |
Stock-based compensation expense | 1,930 | 1,844 |
Gain on investments held in a trust | (628) | 2,413 |
Other — net | 104 | 110 |
Changes in assets and liabilities: | ||
Accounts receivable — customers | 5,711 | (4,085) |
Unbilled receivable | 3,161 | 1,417 |
Other accounts receivable | 1,386 | 64 |
Receivables from the U.S. government | (1,015) | 704 |
Materials and supplies | (132) | (914) |
Prepayments and other assets | (4,026) | (3,400) |
Contract assets | (3,763) | (3,716) |
Regulatory assets | (3,493) | (2,976) |
Accounts payable | (7,267) | (4,112) |
Income taxes receivable/payable | (274) | 3,326 |
Contract Liability | (751) | (492) |
Accrued pension and other postretirement benefits | 1,796 | 1,306 |
Other liabilities | 3,101 | 354 |
Net Cash Provided by (Used in) Operating Activities | 24,676 | 15,654 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (37,093) | (33,544) |
Other investing activities | 113 | 167 |
Net Cash Provided by (Used in) Investing Activities | (36,980) | (33,377) |
Cash Flows From Financing Activities: | ||
Proceeds from stock option exercises | 0 | 30 |
Receipt of advances for and contributions in aid of construction | 2,016 | 3,522 |
Refunds on advances for construction | (569) | (591) |
Retirement or repayments of long-term debt | (99) | (92) |
Net change in notes payable to banks | (5,200) | 27,000 |
Dividends paid | (12,361) | (11,242) |
Other financing activities | 1,269 | 1,809 |
Net Cash Provided by (Used in) Financing Activities | (17,482) | 16,818 |
Net change in cash and cash equivalents | (29,786) | (905) |
Cash and cash equivalents, beginning of period | 36,737 | 1,334 |
Cash and cash equivalents, end of period | 6,951 | 429 |
Non-cash transactions: | ||
Accrued payables for investment in utility plant | 28,700 | 15,748 |
Property installed by developers and conveyed | 2,761 | 856 |
GOLDEN STATE WATER COMPANY | ||
Cash Flows From Operating Activities: | ||
Net income | 12,231 | 11,202 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,126 | 8,111 |
Provision for doubtful accounts | 221 | 273 |
Deferred income taxes and investment tax credits | (505) | 542 |
Stock-based compensation expense | 1,790 | 1,706 |
Gain on investments held in a trust | (628) | 2,413 |
Other — net | 83 | 70 |
Changes in assets and liabilities: | ||
Accounts receivable — customers | 6,033 | (4,085) |
Unbilled receivable | 1,525 | 1,209 |
Other accounts receivable | 1,463 | (31) |
Materials and supplies | (267) | (788) |
Prepayments and other assets | (1,956) | (2,246) |
Regulatory assets | (3,165) | (2,976) |
Accounts payable | (5,674) | (1,427) |
Intercompany receivable/payable | 8 | (398) |
Income taxes receivable/payable | (391) | 2,686 |
Accrued pension and other postretirement benefits | 1,760 | 1,306 |
Other liabilities | 2,145 | 376 |
Net Cash Provided by (Used in) Operating Activities | 22,799 | 17,943 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (31,824) | (32,013) |
Note receivable from AWR parent | (23,000) | 0 |
Repayment of Notes Receivable from Related Parties | 11,000 | 0 |
Other investing activities | 109 | 121 |
Net Cash Provided by (Used in) Investing Activities | (43,715) | (31,892) |
Cash Flows From Financing Activities: | ||
Receipt of advances for and contributions in aid of construction | 2,013 | 3,522 |
Refunds on advances for construction | (569) | (591) |
Retirement or repayments of long-term debt | (99) | (92) |
Net change in intercompany borrowings | 0 | 24,000 |
Dividends paid | (12,400) | (11,250) |
Other financing activities | 1,155 | 1,610 |
Net Cash Provided by (Used in) Financing Activities | (12,210) | 13,979 |
Net change in cash and cash equivalents | (33,126) | 30 |
Cash and cash equivalents, beginning of period | 35,578 | 401 |
Cash and cash equivalents, end of period | 2,452 | 431 |
Non-cash transactions: | ||
Accrued payables for investment in utility plant | 25,529 | 15,748 |
Property installed by developers and conveyed | $ 2,761 | $ 856 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”), Bear Valley Electric Service, Inc. ("BVESI"), 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")). The subsidiaries of ASUS are collectively referred to as the “Military Utility Privatization Subsidiaries”. On July 1, 2020, GSWC completed the transfer of the electric utility assets and liabilities from its electric division to BVESI, a separate legal entity and wholly owned subsidiary of AWR (Note 11). This reorganization did not result in any substantive changes to AWR's operations and business segments. AWR, through its wholly owned subsidiaries, serves over one million people in nine states. GSWC and BVESI are both California public utilities. GSWC is engaged in the purchase, production, distribution and sale of water throughout California serving approximately 262,000 customer connections. BVESI distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,500 customer connections. The California Public Utilities Commission (“CPUC”) regulates GSWC’s and BVESI's businesses in matters including properties, rates, services, facilities, and transactions between GSWC, BVESI, and their affiliates. ASUS, through its wholly owned subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various U.S. military bases pursuant to initial 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. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or any of its wholly owned 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. AWR owns all of the outstanding common shares of GSWC, BVESI and ASUS. ASUS owns all of the outstanding common stock 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 ("GAAP"). Intercompany transactions and balances have been eliminated in the AWR consolidated financial statements. The consolidated financial statements included herein have been prepared by Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The December 31, 2020 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. In the opinion of management, all adjustments consisting of normal, recurring items, and estimates necessary for a fair statement of the results for the interim periods have been made. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2020 filed with the SEC. Related Party Transactions and Financing Activities : GSWC, BVESI and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC has allocated certain corporate office administrative and general costs to its affiliates, BVESI and ASUS, using allocation factors approved by the CPUC. GSWC allocated corporate office administrative and general costs to BVESI of approximately $799,000 during the three months ended March 31, 2021. GSWC allocated corporate office administrative and general costs to ASUS of approximately $1.5 million and $1.4 million during the three months ended March 31, 2021 and 2020, respectively. AWR borrows under a $200.0 million credit facility, which expires in May 2023, and provides funds to GSWC and ASUS in support of their operations. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest expense under the credit facility. As of March 31, 2021, there was $107.0 million outstanding under this facility. BVESI has a separate $35 million revolving credit facility, which expires in July 2023. Under the terms of the credit agreement, BVESI has the option to request an increase in the facility by an additional $15 million. As of March 31, 2021, there was $22.0 million outstanding under this facility. The CPUC requires GSWC to completely pay down all intercompany borrowings from AWR within a 24-month period. The next 24-month period in which GSWC is required to completely pay down its intercompany borrowings is at the end of March 2023 since GSWC had zero borrowings from AWR as of March 31, 2021. In October 2020, AWR issued an interest bearing promissory note to GSWC, which expires in May 2023. Under the terms of the note, AWR may borrow from GSWC amounts up to $30 million for working capital purposes. AWR agrees to pay any unpaid principal amounts outstanding under this note, plus accrued interest. As of March 31, 2021, there was $12.0 million outstanding under this note reflected as a non-current asset on GSWC's balance sheet. COVID-19 Impact : GSWC, BVESI and ASUS have continued their operations given that their water, wastewater, and electric utility services are deemed essential. AWR's responses take into account orders issued by the CPUC, and the guidance provided by federal, state, and local health authorities and other government officials to the COVID-19 pandemic. Some of the actions taken by GSWC and BVESI continue to include: (i) suspending service disconnections for nonpayment pursuant to CPUC and state orders, and (ii) telecommuting by employees. In February 2021, the CPUC adopted a resolution that extended the existing emergency customer protections previously established by the CPUC through June 30, 2021, including the suspension of service disconnections for non-payment by electric utility customers in response to the on-going COVID-19 pandemic. For water utilities, the moratorium on service disconnections was implemented in response to an order by the governor of California, which we believe would require another action by the governor to cease the moratorium on service disconnections for our water customers. It is expected that the CPUC will work with the governor’s office to coordinate the lifting of the moratorium for water utility customers consistent with the electric customers. The CPUC's February resolution did extend the COVID-19-related memorandum accounts established by GSWC and by BVESI to track incremental costs associated with complying with the resolution. In addition, the resolution required utilities in California to file transition plans to address the eventual discontinuance of the emergency customer protections. The goal of the transition plan is to effectively ease customers through a transition off the emergency customer protections by proactively communicating with customers to enroll in programs to manage their utility bills and informing them of the changes to programs in which they are already enrolled. GSWC and BVESI filed their respective transition plans with the CPUC on April 1, 2021. Initially and throughout 2020, the pandemic caused significant volatility on financial markets resulting in fluctuations in the fair value of plan assets in GSWC's pension and other retirement plans. In addition, due to expected future credit losses on utility customer bills, GSWC and BVESI have increased their allowance for doubtful accounts. However, the CPUC has authorized GSWC and BVESI to track incremental costs, including bad debt expense in excess of what is included in their respective revenue requirements, incurred as a result of the pandemic in COVID-19-related memorandum accounts, such as a Catastrophic Event Memorandum Account ("CEMA"), to be filed with the CPUC for future recovery. GSWC and BVESI have recorded a total of approximately $5.7 million in these accounts as regulatory assets, as it is believed such amounts are probable of recovery. CEMA and other emergency-type memorandum accounts are established as a result of a state/federal declared emergency, and are therefore recognized as regulatory assets for future recovery. As a result, the amounts recorded in the COVID-19-related memorandum accounts have not impacted GSWC's and BVESI's earnings. GSWC's COVID-19 memorandum account is being addressed in its pending water general rate case, while BVESI intends to include the memorandum account for recovery in its next general rate case application expected to be filed in 2022. Thus far, the COVID-19 pandemic has not had a material impact on ASUS's operations. Accounting Pronouncements Adopted in 2021 : In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes . The amendments in this update simplify the accounting for income taxes by removing certain exceptions and clarifying certain requirements regarding franchise taxes, goodwill, consolidated tax expenses, and annual effective tax rate calculations. The adoption of this guidance effective January 1, 2021 did not have a material impact on Registrant's financial statements. |
Revenue from Contract with Cust
Revenue from Contract with Customer | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenues Most of Registrant's revenues are derived from contracts with customers, including tariff-based revenues from its regulated utilities at GSWC and BVESI. ASUS's initial 50-year firm fixed-price contracts with the U.S. government are considered service concession arrangements under ASC 853, Service Concession Arrangements . Accordingly, the services under these contracts are accounted for under Topic 606 —Revenue from Contracts with Customers, and the water and/or wastewater systems are not recorded as Property, Plant and Equipment on Registrant’s balance sheets. Although GSWC and BVESI have a diversified base of residential, commercial, industrial, and other customers, revenues derived from residential and commercial customers generally account for approximately 90% of total water and electric revenues. The vast majority of ASUS's revenues are from the U.S. government. For the three months ended March 31, 2021 and 2020, disaggregated revenues from contracts with customers by segment were as follows: Three Months Ended March 31, (dollar in thousands) 2021 2020 Water: Tariff-based revenues $ 74,288 $ 69,254 Surcharges (cost-recovery activities) 534 734 Other 517 495 Water revenues from contracts with customers 75,339 70,483 WRAM (over) under-collection (alternative revenue program) (310) 941 Total water revenues 75,029 71,424 Electric: Tariff-based revenues 11,677 10,032 Surcharges (cost-recovery activities) 202 258 Electric revenues from contracts with customers 11,879 10,290 BRRAM (over) under-collection (alternative revenue program) (340) 678 Total electric revenues 11,539 10,968 Contracted services: Water 18,883 14,701 Wastewater 11,609 11,984 Contracted services revenues from contracts with customers 30,492 26,685 Total AWR revenues $ 117,060 $ 109,077 The opening and closing balances of the receivable from the U.S. government, contract assets, and contract liabilities from contracts with customers, which are related entirely to ASUS, were as follows: (dollar in thousands) March 31, 2021 December 31, 2020 Unbilled receivables $ 13,302 $ 14,924 Receivable from the U.S. government $ 75,979 $ 74,670 Contract assets $ 13,726 $ 10,257 Contract liabilities $ 1,049 $ 1,800 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 three months ended March 31, 2021, which were included in contract liabilities at the beginning of the period were $838,000. Contracted services revenues recognized during the three months ended March 31, 2021 from performance obligations satisfied in previous periods were not material. As of March 31, 2021, Registrant's aggregate remaining performance obligations, which are entirely for the contracted services segment, were $3.2 billion. Registrant expects to recognize revenue on these remaining performance obligations over the remaining term of each of the 50-year contracts, which range from 34 to 47 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 convenience of the U.S. government. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2021 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters In accordance with accounting principles for rate-regulated enterprises, GSWC and BVESI record regulatory assets, which represent probable future recovery of costs from customers through the ratemaking process, and regulatory liabilities, which represent probable future refunds that are to be credited to customers through the ratemaking process. At March 31, 2021, GSWC and BVESI had approximately $22.9 million of regulatory liabilities, net of regulatory assets, not accruing carrying costs. Of this amount, (i) $78.0 million of regulatory liabilities are excess deferred income taxes arising from the lower federal income tax rate due to the Tax Cuts and Jobs Act ("Tax Act") enacted in December 2017 that are expected to be refunded to customers, (ii) $9.7 million of regulatory liabilities are from flowed-through deferred income taxes, (iii) $65.4 million of net regulatory assets relates to the underfunded position in GSWC's pension and other retirement obligations (not including the two-way pension balancing accounts), and (iv) a $1.2 million regulatory liability related to a memorandum account authorized by the CPUC to track unrealized gains and losses on BVESI's purchase power contracts over the term of the contracts. The remainder relates to other items that do not provide for or incur carrying costs. Regulatory assets represent costs incurred by GSWC and/or BVESI for which they have received or expect to receive rate recovery in the future. In determining the probability of costs being recognized in other periods, GSWC and BVESI consider 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 either GSWC’s or BVESI's assets are not recoverable in customer rates, the applicable utility 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 ratemaking area. Amounts expected to be collected or refunded in the next twelve months have been classified as current assets and current liabilities by ratemaking area. Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: (dollars in thousands) March 31, December 31, GSWC Water Revenue Adjustment Mechanism and Modified Cost Balancing Account $ 16,580 $ 13,741 Costs deferred for future recovery on Aerojet case 6,544 6,751 Pensions and other post-retirement obligations (Note 8) 64,693 65,576 COVID-19 memorandum accounts 5,140 4,119 Excess deferred income taxes (73,926) (74,185) Flow-through taxes, net (9,013) (9,722) Other regulatory assets 10,739 10,670 Various refunds to customers (4,527) (4,577) Total GSWC $ 16,230 $ 12,373 BVESI Derivative unrealized (gain) loss (Note 5) (1,224) 1,537 Other regulatory assets 3,257 2,629 Total AWR $ 18,263 $ 16,539 Regulatory matters are discussed in the consolidated financial statements and the notes thereto included in the Company's Form 10-K for the year ended December 31, 2020 filed with the SEC. The discussion below focuses on significant matters and developments since December 31, 2020. Alternative-Revenue Programs: GSWC records the difference between what it bills its water customers and that which is authorized by the CPUC using the Water Revenue Adjustment Mechanism ("WRAM") and the Modified Cost Balancing Account (“MCBA”) accounts approved by the CPUC. The over- or under-collection of the WRAM is aggregated with the MCBA over- or under-collection for the corresponding ratemaking area and bears interest at the current 90-day commercial paper rate. As required by the accounting guidance for alternative revenue programs, GSWC is required to collect its WRAM balances, net of its MCBA, within 24 months following the year in which an under-collection is recorded in order to recognize such amounts as revenue. The recovery periods for the majority of GSWC's WRAM/MCBA balances are primarily within 12 to 24 months. GSWC has filed with the CPUC for recovery of its 2020 WRAM/MCBA balances. For the three months ended March 31, 2021 and 2020, surcharges (net of surcredits) of approximately $1.9 million and $2.2 million, respectively, were billed to customers to recover previously incurred net under-collections in the WRAM/MCBA accounts. During the three months ended March 31, 2021, GSWC recorded additional net under-collections in the WRAM/MCBA accounts of approximately $4.7 million due primarily to higher-than-adopted supply costs currently in billed customer rates. As of March 31, 2021, GSWC had an aggregated regulatory asset of $16.6 million, which is comprised of a $1.4 million under-collection in the WRAM accounts and a $15.1 million under-collection in the MCBA accounts. COVID-19 Memorandum Accounts : The CPUC has approved GSWC's and BVESI's requests to activate COVID-19-related memorandum accounts, such as a Catastrophic Event Memorandum Account ("CEMA"), for the impact of the COVID-19 pandemic. The Company's response to the pandemic has included suspending service disconnections for nonpayment, which has significantly increased the amount of delinquent customer accounts receivable during the COVID-19 pandemic. Costs incurred by GSWC and BVESI in response to the COVID-19 pandemic, including bad debt expense in excess of what is included in their respective revenue requirements, are being included in the COVID-19-related memorandum accounts for future recovery. As of March 31, 2021, a total of $5.7 million in COVID-19 related incremental costs have been recorded as regulatory assets as GSWC and BVESI believe their respective costs are probable of recovery. GSWC's COVID-19 memorandum account is being addressed in its pending water general rate case, while BVESI intends to include the memorandum account for recovery in its next general rate case application expected to be filed in 2022. Other Regulatory Assets : Other regulatory assets represent costs incurred by GSWC or BVESI 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. If the CPUC determines that a portion of either GSWC’s or BVESI's assets are not recoverable in customer rates, the applicable entity must determine if it has suffered an asset impairment that requires it to write down the asset's value. |
Earnings per Share_Capital Stoc
Earnings per Share/Capital Stock | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share/Capital Stock | Earnings per Share/Capital Stock In accordance with the accounting guidance for participating securities and earnings per share (“EPS”), Registrant uses the “two-class” method of computing EPS. The “two-class” method is an earnings allocation formula that determines EPS for each class of common stock and participating security. AWR has participating securities related to restricted stock units that earn dividend equivalents on an equal basis with AWR’s Common Shares, and that have been issued under AWR's stock incentive plans for employees and the non-employee directors stock 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 used for calculating basic net income per share: Basic: For The Three Months Ended March 31, (in thousands, except per share amounts) 2021 2020 Net income $ 19,268 $ 14,072 Less: (a) Distributed earnings to common shareholders 12,361 11,242 Distributed earnings to participating securities 37 37 Undistributed earnings 6,870 2,793 (b) Undistributed earnings allocated to common shareholders 6,850 2,784 Undistributed earnings allocated to participating securities 20 9 Total income available to common shareholders, basic (a)+(b) $ 19,211 $ 14,026 Weighted average Common Shares outstanding, basic 36,898 36,860 Basic earnings per Common Share $ 0.52 $ 0.38 Diluted EPS is based upon the weighted average number of Common Shares, including both outstanding shares and shares potentially issuable in connection with restricted stock units granted under AWR’s stock incentive plans for employees and the non-employee directors stock plans, and net income. There were no options outstanding as of March 31, 2021 and 2020 under these plans. At March 31, 2021 and 2020, there were 120,973 and 129,637 restricted stock units outstanding, respectively, 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 Three Months Ended March 31, (in thousands, except per share amounts) 2021 2020 Common shareholders earnings, basic $ 19,211 $ 14,026 Undistributed earnings for dilutive stock-based awards 20 9 Total common shareholders earnings, diluted $ 19,231 $ 14,035 Weighted average common shares outstanding, basic 36,898 36,860 Stock-based compensation (1) 95 109 Weighted average common shares outstanding, diluted 36,993 36,969 Diluted earnings per Common Share $ 0.52 $ 0.38 (1) All of the 120,973 and 129,637 restricted stock units at March 31, 2021 and 2020, respectively, were included in the calculation of diluted EPS for the three months ended March 31, 2021 and 2020. During the three months ended March 31, 2021, AWR issued 23,914 related to restricted stock units. During the three months ended March 31, 2020, AWR issued 37,157 common shares related to restricted stock units and stock options for approximately $30,000, under Registrant’s stock incentive plans for employees. During the three months ended March 31, 2021 and 2020, AWR paid $1.3 million and $1.8 million, respectively, to taxing authorities on employees' behalf for shares withheld related to net share settlements. During the three months ended March 31, 2021 and 2020, GSWC paid $1.2 million and $1.6 million, respectively, to taxing authorities on employees' behalf for shares withheld related to net share settlements. These payments are included in the stock-based compensation caption of the statements of equity. During the three months ended March 31, 2021 and 2020, AWR paid quarterly dividends of approximately $12.4 million, or $0.335 per share, and $11.2 million, or $0.305 per share, respectively. During the three months ended March 31, 2021 and 2020, GSWC paid dividends of $12.4 million and $11.3 million, respectively, to AWR during these periods. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments BVESI 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. These contracts provide power at a fixed cost over approximately three These purchase power contracts are subject to the accounting guidance for derivatives and require mark-to-market derivative accounting. Among other things, the CPUC authorized the use of 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 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 terms of the contracts. As a result, these unrealized gains and losses did not impact AWR’s earnings. As of March 31, 2021, there was a $1.2 million unrealized gain recorded as a regulatory liability in the memorandum account for the purchased power contracts. The notional volume of derivatives remaining under these long-term contracts as of March 31, 2021 was 445,573 megawatt hours. The accounting guidance for fair value measurements applies to all financial assets and financial liabilities that are measured and reported on a fair value basis. Under the accounting guidance, BVESI has made 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). To value the contracts, Registrant utilizes various inputs that include quoted market prices for energy over the duration of the contracts. 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. When such inputs have a significant impact on the measurement of fair value, the instruments are categorized as Level 3. Accordingly, the valuation of the derivatives 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 the Level 3 derivatives for the three months ended March 31, 2021 and 2020. The change in fair value was due to an increase in energy prices during the three months ended March 31, 2021. For The Three Months Ended March 31, (dollars in thousands) 2021 2020 Fair value at beginning of the period $ (1,537) $ (3,171) Unrealized gains (losses) on purchased power contracts 2,761 (1,109) Fair value at end of the period $ 1,224 $ (4,280) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For cash and cash equivalents, accounts receivable, accounts payable and short-term debt, the carrying amount is assumed to approximate fair value due to the short-term nature of these items. Investments held in a Rabbi Trust for the supplemental executive retirement plan ("SERP") are measured at fair value and totaled $26.5 million as of March 31, 2021. All equity investments in the Rabbi Trust are Level 1 investments in mutual funds. The investments held in the Rabbi Trust are included in "Other Property and Investments" on Registrant's balance sheets. The table below estimates the fair value of long-term debt held by GSWC. The fair values as of March 31, 2021 and December 31, 2020 were determined using rates for similar financial instruments of the same duration utilizing Level 2 methods and assumptions. Changes in the assumptions will produce different results. March 31, 2021 December 31, 2020 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—GSWC (1) $ 444,172 $ 519,888 $ 444,271 $ 559,752 ___________________ (1) Excludes debt issuance costs and redemption premiums. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesAWR's effective income tax rate (“ETR”) was 23.5% and 21.7% for the three months ended March 31, 2021 and 2020, respectively. GSWC's ETR was 23.6% and 22.4% for the three months ended March 31, 2021 and 2020, respectively.The AWR and GSWC effective tax rates differed from the federal corporate statutory tax rate of 21% 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 three months ended March 31, 2021 and 2020; (iii) the ongoing amortization of the excess deferred income tax liability; 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 related items). 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. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The components of net periodic benefit costs for Registrant’s pension plan, postretirement medical benefit plan, and SERP for the three months ended March 31, 2021 and 2020 were as follows: For The Three Months Ended March 31, Pension Benefits Other SERP (dollars in thousands) 2021 2020 2021 2020 2021 2020 Components of Net Periodic Benefits Cost: Service cost $ 1,625 $ 1,408 $ 40 $ 47 $ 348 $ 244 Interest cost 1,712 1,954 31 56 229 247 Expected return on plan assets (3,134) (2,950) (134) (127) — — Amortization of prior service cost 109 109 — — — — Amortization of actuarial (gain) loss 993 442 (287) (199) 419 211 Net periodic benefits costs under accounting standards 1,305 963 (350) (223) 996 702 Regulatory adjustment - deferred (351) (93) — — — — Total expense (benefit) recognized, before surcharges and allocation to overhead pool $ 954 $ 870 $ (350) $ (223) $ 996 $ 702 For the pension plan obligation, Registrant used a discount rate of 2.55% as of December 31, 2020 to determine the projected benefit obligation (“PBO”) of $272.8 million. Discount rates as of March 31, 2021 are approximately 65-basis points higher than those used as of December 31, 2020 based on recent changes in market interest-rate conditions. A 65-basis point increase in the assumed discount rate would have decreased the PBO as of December 31, 2020 by approximately 10% or $27.3 million. In 2021, Registrant expects to contribute approximately $3.6 million to its pension plan. As authorized by the CPUC in the water and electric general rate case decisions, GSWC and BVESI each utilize two-way balancing accounts to track differences between the forecasted annual pension expenses in rates, or expected to be in rates, and the actual annual expense recorded in accordance with the accounting guidance for pension costs. During the three months ended March 31, 2021 and 2020, GSWC's actual pension expense was higher than the amounts included in water customer rates by $351,000 and $93,000, respectively. BVESI's actual expense was lower than the amounts included in electric customer rates for all periods presented. As of March 31, 2021, GSWC and BVESI had over-collections in their two-way pension balancing accounts of $665,000 and $256,000 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Loss Contingencies [Line Items] | |
Contingencies | Contingencies Environmental Clean-Up and Remediation : GSWC has been involved in environmental remediation and cleanup at one of its plant sites 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 off-site monitoring wells may be necessary to document effectiveness of remediation. As of March 31, 2021, the total amount spent to clean up and remediate GSWC’s plant facility was approximately $6.4 million, of which $1.5 million has been paid by the State of California Underground Storage Tank Fund. Amounts paid by GSWC have been included in rate base and approved by the CPUC for recovery. As of March 31, 2021, GSWC has a regulatory asset and an accrued liability for the estimated additional 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. 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 | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments AWR has three reportable segments: water, electric and contracted services. Prior to July 1, 2020, GSWC had two segments, water and electric. On July 1, 2020, GSWC completed the transfer of the electric utility assets and liabilities from its electric division to BVESI, a separate legal entity and now a wholly owned subsidiary of AWR (Note 11). On a stand-alone basis, AWR has no material assets other than its equity investments in its subsidiaries, note payables to its subsidiaries and deferred taxes. All activities of GSWC and BVESI are geographically located within California. Activities of ASUS and its subsidiaries are conducted in California, Florida, Georgia, Kansas, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. Each of ASUS’s wholly owned 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 AWR’s operating segments and AWR Parent. The utility plant amounts are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash, excluding U.S. government- and third-party contractor-funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC or BVESI. As Of And For The Three Months Ended March 31, 2021 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 75,029 $ 11,539 $ 30,492 $ — $ 117,060 Operating income (loss) 21,059 3,448 5,824 (2) 30,329 Interest expense, net 5,711 86 (229) 235 5,803 Net property, plant and equipment 1,426,175 94,346 21,902 — 1,542,423 Depreciation and amortization expense (1) 8,062 639 859 — 9,560 Income tax expense (benefit) 3,768 884 1,391 (129) 5,914 Capital additions 31,824 4,782 487 — 37,093 As Of And For The Three Months Ended March 31, 2020 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 71,424 $ 10,968 $ 26,685 $ — $ 109,077 Operating income (loss) 18,605 3,487 3,609 (2) 25,699 Interest expense, net 5,133 326 (77) 110 5,492 Net property, plant and equipment 1,336,012 74,745 21,640 — 1,432,397 Depreciation and amortization expense (1) 7,422 607 782 — 8,811 Income tax expense (benefit) 2,378 850 748 (75) 3,901 Capital additions 28,459 3,554 1,531 — 33,544 (1) Depreciation computed on GSWC’s and BVESI's transportation equipment is recorded in other operating expenses and totaled $95,000 and $82,000 for the three months ended March 31, 2021 and 2020, respectively. The following table reconciles total net property, plant and equipment (a key figure for ratemaking) to total consolidated assets (in thousands): March 31, 2021 2020 Total net property, plant and equipment 1,542,423 $ 1,432,397 Other assets 250,398 228,492 Total consolidated assets $ 1,792,821 $ 1,660,889 |
Completion of Electric Utility
Completion of Electric Utility Reorganization Plan | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Completion of Electric Utility Reorganization Plan | Completion of Electric Utility Reorganization Plan On July 1, 2020, GSWC completed the transfer of approximately $71.3 million in net assets and equity (based on their recorded amounts) from its electric utility division to BVESI in exchange for common shares of BVESI of equal value. This was a non-cash transaction, and no gain or loss was recognized. GSWC then immediately distributed all of BVESI's common shares to AWR, whereupon BVESI became wholly owned directly by AWR. The reorganization did not result in any substantive changes to AWR's operations or business segments. In addition, pursuant to federal and state tax law, the exchange and distribution qualify as a tax-free reorganization; consequently, no income tax liability was triggered for the AWR consolidated group or any of its members. The transfer between GSWC and BVESI, both wholly owned subsidiaries of AWR, was considered a common control transaction. Although the electric utility division was considered a separate business segment and component of GSWC, the transfer did not qualify as a discontinued operation based on management's assessment of the applicable accounting guidance. As a result of this transfer, from July 1, 2020 onward, operating results and cash flows of the electric segment, as well as its assets and liabilities, are no longer included in GSWC's financial statements, but continue to be included in AWR's consolidated financial statements. GSWC's statements of income and cash flows for the three months ended March 31, 2020 include the electric segment's results. The table below sets forth selected information relating to the electric segment's results of operations for the three months ended March 31, 2021 and 2020, and its cash flows for the three months ended March 31, 2021 (in thousands): Three months ended March 31, 2021 2020 (Subsidiary of AWR) (Division of GSWC) Electric revenues $ 11,539 $ 10,968 Operating expenses 8,091 7,482 Operating income $ 3,448 $ 3,486 Net income $ 2,523 $ 2,346 Three Months Ended March 31, 2021 (Subsidiary of AWR) Net cash provided from operating activities $ 2,803 Net cash used in investing activities (4,782) Net cash provided from financing activities (1) 1,795 Net change in cash and cash equivalents (184) Cash and cash equivalents, beginning of period 367 Cash and cash equivalents, end of period $ 183 (1) Effective July 1, 2020, BVESI has a 3-year, $35 million revolving credit facility agreement. As of March 31, 2021, there was $22.0 million outstanding under this facility. Under the terms of the credit agreement, BVESI has the option to request an increase in the facility by an additional $15.0 million. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventGSWC's 9.56% private placement notes issued in the amount of $28.0 million and due in 2031 can be redeemed, in whole or in part, at the option of GSWC subject to redemption schedules embedded in the agreement. 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 May 15, 2021. After May 15, 2021, the maximum redemption premium is 3.0% of par value. On April 23, 2021, GSWC notified the note holders of its intent to redeem the notes on May 24, 2021. Pursuant to the agreement, the prepayment of the notes will include the redemption premium of 3.0% on par value, or $840,000. GSWC recovers redemption premiums in its embedded cost of debt as filed in cost of capital proceedings where the cost savings from redeeming high interest rate debt are passed on to customers. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies: (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”), Bear Valley Electric Service, Inc. ("BVESI"), 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")). The subsidiaries of ASUS are collectively referred to as the “Military Utility Privatization Subsidiaries”. On July 1, 2020, GSWC completed the transfer of the electric utility assets and liabilities from its electric division to BVESI, a separate legal entity and wholly owned subsidiary of AWR (Note 11). This reorganization did not result in any substantive changes to AWR's operations and business segments. AWR, through its wholly owned subsidiaries, serves over one million people in nine states. GSWC and BVESI are both California public utilities. GSWC is engaged in the purchase, production, distribution and sale of water throughout California serving approximately 262,000 customer connections. BVESI distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,500 customer connections. The California Public Utilities Commission (“CPUC”) regulates GSWC’s and BVESI's businesses in matters including properties, rates, services, facilities, and transactions between GSWC, BVESI, and their affiliates. ASUS, through its wholly owned subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various U.S. military bases pursuant to initial 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. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or any of its wholly owned 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. AWR owns all of the outstanding common shares of GSWC, BVESI and ASUS. ASUS owns all of the outstanding common stock 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 ("GAAP"). Intercompany transactions and balances have been eliminated in the AWR consolidated financial statements. The consolidated financial statements included herein have been prepared by Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The December 31, 2020 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. In the opinion of management, all adjustments consisting of normal, recurring items, and estimates necessary for a fair statement of the results for the interim periods have been made. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2020 filed with the SEC. |
Related Party Transactions and Financing Activities | Related Party Transactions and Financing Activities : GSWC, BVESI and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC has allocated certain corporate office administrative and general costs to its affiliates, BVESI and ASUS, using allocation factors approved by the CPUC. GSWC allocated corporate office administrative and general costs to BVESI of approximately $799,000 during the three months ended March 31, 2021. GSWC allocated corporate office administrative and general costs to ASUS of approximately $1.5 million and $1.4 million during the three months ended March 31, 2021 and 2020, respectively. AWR borrows under a $200.0 million credit facility, which expires in May 2023, and provides funds to GSWC and ASUS in support of their operations. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest expense under the credit facility. As of March 31, 2021, there was $107.0 million outstanding under this facility. BVESI has a separate $35 million revolving credit facility, which expires in July 2023. Under the terms of the credit agreement, BVESI has the option to request an increase in the facility by an additional $15 million. As of March 31, 2021, there was $22.0 million outstanding under this facility. The CPUC requires GSWC to completely pay down all intercompany borrowings from AWR within a 24-month period. The next 24-month period in which GSWC is required to completely pay down its intercompany borrowings is at the end of March 2023 since GSWC had zero borrowings from AWR as of March 31, 2021. |
COVID-19 Impact | COVID-19 Impact : GSWC, BVESI and ASUS have continued their operations given that their water, wastewater, and electric utility services are deemed essential. AWR's responses take into account orders issued by the CPUC, and the guidance provided by federal, state, and local health authorities and other government officials to the COVID-19 pandemic. Some of the actions taken by GSWC and BVESI continue to include: (i) suspending service disconnections for nonpayment pursuant to CPUC and state orders, and (ii) telecommuting by employees. In February 2021, the CPUC adopted a resolution that extended the existing emergency customer protections previously established by the CPUC through June 30, 2021, including the suspension of service disconnections for non-payment by electric utility customers in response to the on-going COVID-19 pandemic. For water utilities, the moratorium on service disconnections was implemented in response to an order by the governor of California, which we believe would require another action by the governor to cease the moratorium on service disconnections for our water customers. It is expected that the CPUC will work with the governor’s office to coordinate the lifting of the moratorium for water utility customers consistent with the electric customers. The CPUC's February resolution did extend the COVID-19-related memorandum accounts established by GSWC and by BVESI to track incremental costs associated with complying with the resolution. In addition, the resolution required utilities in California to file transition plans to address the eventual discontinuance of the emergency customer protections. The goal of the transition plan is to effectively ease customers through a transition off the emergency customer protections by proactively communicating with customers to enroll in programs to manage their utility bills and informing them of the changes to programs in which they are already enrolled. GSWC and BVESI filed their respective transition plans with the CPUC on April 1, 2021. Initially and throughout 2020, the pandemic caused significant volatility on financial markets resulting in fluctuations in the fair value of plan assets in GSWC's pension and other retirement plans. In addition, due to expected future credit losses on utility customer bills, GSWC and BVESI have increased their allowance for doubtful accounts. However, the CPUC has authorized GSWC and BVESI to track incremental costs, including bad debt expense in excess of what is included in their respective revenue requirements, incurred as a result of the pandemic in COVID-19-related memorandum accounts, such as a Catastrophic Event Memorandum Account ("CEMA"), to be filed with the CPUC for future recovery. GSWC and BVESI have recorded a total of approximately $5.7 million in these accounts as regulatory assets, as it is believed such amounts are probable of recovery. CEMA and other emergency-type memorandum accounts are established as a result of a state/federal declared emergency, and are therefore recognized as regulatory assets for future recovery. As a result, the amounts recorded in the COVID-19-related memorandum accounts have not impacted GSWC's and BVESI's earnings. GSWC's COVID-19 memorandum account is being addressed in its pending water general rate case, while BVESI intends to include the memorandum account for recovery in its next general rate case application expected to be filed in 2022. Thus far, the COVID-19 pandemic has not had a material impact on ASUS's operations. |
Recently Issued Accounting Pronouncements | Accounting Pronouncements Adopted in 2021 : In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes . The amendments in this update simplify the accounting for income taxes by removing certain exceptions and clarifying certain requirements regarding franchise taxes, goodwill, consolidated tax expenses, and annual effective tax rate calculations. The adoption of this guidance effective January 1, 2021 did not have a material impact on Registrant's financial statements. |
Revenue from Contract with Cu_2
Revenue from Contract with Customers (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | For the three months ended March 31, 2021 and 2020, disaggregated revenues from contracts with customers by segment were as follows: Three Months Ended March 31, (dollar in thousands) 2021 2020 Water: Tariff-based revenues $ 74,288 $ 69,254 Surcharges (cost-recovery activities) 534 734 Other 517 495 Water revenues from contracts with customers 75,339 70,483 WRAM (over) under-collection (alternative revenue program) (310) 941 Total water revenues 75,029 71,424 Electric: Tariff-based revenues 11,677 10,032 Surcharges (cost-recovery activities) 202 258 Electric revenues from contracts with customers 11,879 10,290 BRRAM (over) under-collection (alternative revenue program) (340) 678 Total electric revenues 11,539 10,968 Contracted services: Water 18,883 14,701 Wastewater 11,609 11,984 Contracted services revenues from contracts with customers 30,492 26,685 Total AWR revenues $ 117,060 $ 109,077 |
Contract with Customer, Asset and Liability | The opening and closing balances of the receivable from the U.S. government, contract assets, and contract liabilities from contracts with customers, which are related entirely to ASUS, were as follows: (dollar in thousands) March 31, 2021 December 31, 2020 Unbilled receivables $ 13,302 $ 14,924 Receivable from the U.S. government $ 75,979 $ 74,670 Contract assets $ 13,726 $ 10,257 Contract liabilities $ 1,049 $ 1,800 |
Regulatory Matters_ (Tables)
Regulatory Matters: (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Regulated Operations [Abstract] | |
Schedule of regulatory assets, less regulatory liabilities in the consolidated balance sheets for continuing operations | Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: (dollars in thousands) March 31, December 31, GSWC Water Revenue Adjustment Mechanism and Modified Cost Balancing Account $ 16,580 $ 13,741 Costs deferred for future recovery on Aerojet case 6,544 6,751 Pensions and other post-retirement obligations (Note 8) 64,693 65,576 COVID-19 memorandum accounts 5,140 4,119 Excess deferred income taxes (73,926) (74,185) Flow-through taxes, net (9,013) (9,722) Other regulatory assets 10,739 10,670 Various refunds to customers (4,527) (4,577) Total GSWC $ 16,230 $ 12,373 BVESI Derivative unrealized (gain) loss (Note 5) (1,224) 1,537 Other regulatory assets 3,257 2,629 Total AWR $ 18,263 $ 16,539 |
Earnings per Share_Capital St_2
Earnings per Share/Capital Stock: (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 | Basic: For The Three Months Ended March 31, (in thousands, except per share amounts) 2021 2020 Net income $ 19,268 $ 14,072 Less: (a) Distributed earnings to common shareholders 12,361 11,242 Distributed earnings to participating securities 37 37 Undistributed earnings 6,870 2,793 (b) Undistributed earnings allocated to common shareholders 6,850 2,784 Undistributed earnings allocated to participating securities 20 9 Total income available to common shareholders, basic (a)+(b) $ 19,211 $ 14,026 Weighted average Common Shares outstanding, basic 36,898 36,860 Basic earnings per Common Share $ 0.52 $ 0.38 |
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating diluted net income per share | The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share: Diluted: For The Three Months Ended March 31, (in thousands, except per share amounts) 2021 2020 Common shareholders earnings, basic $ 19,211 $ 14,026 Undistributed earnings for dilutive stock-based awards 20 9 Total common shareholders earnings, diluted $ 19,231 $ 14,035 Weighted average common shares outstanding, basic 36,898 36,860 Stock-based compensation (1) 95 109 Weighted average common shares outstanding, diluted 36,993 36,969 Diluted earnings per Common Share $ 0.52 $ 0.38 (1) All of the 120,973 and 129,637 restricted stock units at March 31, 2021 and 2020, respectively, were included in the calculation of diluted EPS for the three months ended March 31, 2021 and 2020. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
GOLDEN STATE WATER COMPANY | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments | The following table presents changes in the fair value of the Level 3 derivatives for the three months ended March 31, 2021 and 2020. The change in fair value was due to an increase in energy prices during the three months ended March 31, 2021. For The Three Months Ended March 31, (dollars in thousands) 2021 2020 Fair value at beginning of the period $ (1,537) $ (3,171) Unrealized gains (losses) on purchased power contracts 2,761 (1,109) Fair value at end of the period $ 1,224 $ (4,280) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments: (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
GOLDEN STATE WATER COMPANY | |
Fair value of financial instruments | |
Schedule of estimates of the fair value of long-term debt | The table below estimates the fair value of long-term debt held by GSWC. The fair values as of March 31, 2021 and December 31, 2020 were determined using rates for similar financial instruments of the same duration utilizing Level 2 methods and assumptions. Changes in the assumptions will produce different results. March 31, 2021 December 31, 2020 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—GSWC (1) $ 444,172 $ 519,888 $ 444,271 $ 559,752 |
Employee Benefit Plans_ (Tables
Employee Benefit Plans: (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit costs, before allocation to the overhead pool, for Registrant's pension plan, postretirement plan, and SERP | The components of net periodic benefit costs for Registrant’s pension plan, postretirement medical benefit plan, and SERP for the three months ended March 31, 2021 and 2020 were as follows: For The Three Months Ended March 31, Pension Benefits Other SERP (dollars in thousands) 2021 2020 2021 2020 2021 2020 Components of Net Periodic Benefits Cost: Service cost $ 1,625 $ 1,408 $ 40 $ 47 $ 348 $ 244 Interest cost 1,712 1,954 31 56 229 247 Expected return on plan assets (3,134) (2,950) (134) (127) — — Amortization of prior service cost 109 109 — — — — Amortization of actuarial (gain) loss 993 442 (287) (199) 419 211 Net periodic benefits costs under accounting standards 1,305 963 (350) (223) 996 702 Regulatory adjustment - deferred (351) (93) — — — — Total expense (benefit) recognized, before surcharges and allocation to overhead pool $ 954 $ 870 $ (350) $ (223) $ 996 $ 702 |
Business Segments_ (Tables)
Business Segments: (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of reporting segments information | The tables below set forth information relating to AWR’s operating segments and AWR Parent. The utility plant amounts are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash, excluding U.S. government- and third-party contractor-funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC or BVESI. As Of And For The Three Months Ended March 31, 2021 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 75,029 $ 11,539 $ 30,492 $ — $ 117,060 Operating income (loss) 21,059 3,448 5,824 (2) 30,329 Interest expense, net 5,711 86 (229) 235 5,803 Net property, plant and equipment 1,426,175 94,346 21,902 — 1,542,423 Depreciation and amortization expense (1) 8,062 639 859 — 9,560 Income tax expense (benefit) 3,768 884 1,391 (129) 5,914 Capital additions 31,824 4,782 487 — 37,093 As Of And For The Three Months Ended March 31, 2020 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 71,424 $ 10,968 $ 26,685 $ — $ 109,077 Operating income (loss) 18,605 3,487 3,609 (2) 25,699 Interest expense, net 5,133 326 (77) 110 5,492 Net property, plant and equipment 1,336,012 74,745 21,640 — 1,432,397 Depreciation and amortization expense (1) 7,422 607 782 — 8,811 Income tax expense (benefit) 2,378 850 748 (75) 3,901 Capital additions 28,459 3,554 1,531 — 33,544 (1) Depreciation computed on GSWC’s and BVESI's transportation equipment is recorded in other operating expenses and totaled $95,000 and $82,000 for the three months ended March 31, 2021 and 2020, respectively. |
Schedule of reconciliation of total utility plant (a key figure for rate-making) to total consolidated assets | The following table reconciles total net property, plant and equipment (a key figure for ratemaking) to total consolidated assets (in thousands): March 31, 2021 2020 Total net property, plant and equipment 1,542,423 $ 1,432,397 Other assets 250,398 228,492 Total consolidated assets $ 1,792,821 $ 1,660,889 |
Completion of Electric Utilit_2
Completion of Electric Utility Reorganization Plan (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Completion of Electric utility reorganization plan -selected information for the results of operations and its cash flows | The table below sets forth selected information relating to the electric segment's results of operations for the three months ended March 31, 2021 and 2020, and its cash flows for the three months ended March 31, 2021 (in thousands): Three months ended March 31, 2021 2020 (Subsidiary of AWR) (Division of GSWC) Electric revenues $ 11,539 $ 10,968 Operating expenses 8,091 7,482 Operating income $ 3,448 $ 3,486 Net income $ 2,523 $ 2,346 Three Months Ended March 31, 2021 (Subsidiary of AWR) Net cash provided from operating activities $ 2,803 Net cash used in investing activities (4,782) Net cash provided from financing activities (1) 1,795 Net change in cash and cash equivalents (184) Cash and cash equivalents, beginning of period 367 Cash and cash equivalents, end of period $ 183 (1) Effective July 1, 2020, BVESI has a 3-year, $35 million revolving credit facility agreement. As of March 31, 2021, there was $22.0 million outstanding under this facility. Under the terms of the credit agreement, BVESI has the option to request an increase in the facility by an additional $15.0 million. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies: (Details) | 3 Months Ended | ||||
Mar. 31, 2021USD ($)registrantcustomer | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Oct. 30, 2020USD ($) | Jul. 01, 2020USD ($) | |
Nature of Operations: | |||||
Number of customers | customer | 1,000,000 | ||||
Number of States in which Entity Operates | 9 | ||||
Basis of Presentation [Abstract] | |||||
Number of registrants filing combined report | registrant | 2 | ||||
Related Party Transactions | |||||
Incremental expansion of borrowing capacity | $ 30,000,000 | ||||
Parent Company [Member] | Syndicated Revolving Credit Facility member [Member] | |||||
Related Party Transactions | |||||
Notes Payable, Noncurrent | $ 107,000,000 | ||||
ASUS | |||||
Related Party Transactions | |||||
Payments to affiliate for corporate office administrative and general costs | $ 1,500,000 | $ 1,400,000 | |||
ASUS | Contracted Services | |||||
Nature of Operations: | |||||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | ||||
Bear Valley Electric Service, Inc. | |||||
Related Party Transactions | |||||
Payments to affiliate for corporate office administrative and general costs | $ 799,000 | ||||
Maximum borrowing capacity on line of credit | $ 35,000,000 | ||||
Incremental expansion of borrowing capacity | 15,000,000 | ||||
Outstanding borrowings | $ 22,000,000 | ||||
Bear Valley Electric Service, Inc. | Electric Service Utility Operations | |||||
Nature of Operations: | |||||
Number of customers | customer | 24,500 | ||||
Golden State Water Company | |||||
Related Party Transactions | |||||
Related Party Transaction, Terms and Manner of Settlement | 24 | ||||
Notes Receivable from AWR parent | $ 12,000,000 | $ 0 | |||
Due to Related Parties | $ 0 | ||||
Golden State Water Company | Water Service Utility Operations | |||||
Nature of Operations: | |||||
Number of customers | customer | 262,000 | ||||
Golden State Water Company and Bear Valley Electric Service Inc. | |||||
Summary of significant accounting policies | |||||
Regulatory asset-CEMA | $ 5,700,000 | ||||
Maximum [Member] | Parent Company [Member] | Revolving Credit Facility [Member] | |||||
Related Party Transactions | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 200,000,000 |
Revenue from Contract with Cu_3
Revenue from Contract with Customers - Additional Information (Details) - Sales | 3 Months Ended |
Mar. 31, 2021 | |
GOLDEN STATE WATER COMPANY | Water Service Utility Operations [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration Risk, Percentage | 90.00% |
Golden State Water Company and Bear Valley Electric Service Inc. | Electric Service Utility Operations | |
Disaggregation of Revenue [Line Items] | |
Concentration Risk, Percentage | 90.00% |
Revenue from Contract with Cu_4
Revenue from Contract with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 117,060 | $ 109,077 |
GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 75,029 | 82,392 |
Water Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 75,339 | 70,483 |
Total operating revenues | 75,029 | 71,424 |
Electric Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 10,290 | |
Total operating revenues | 10,968 | |
Electric Service Utility Operations | Bear Valley Electric Service, Inc. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 11,879 | |
Total operating revenues | 11,539 | |
Contracted Services | ASUS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 30,492 | 26,685 |
Tariff-based Revenues | Water Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 74,288 | 69,254 |
Tariff-based Revenues | Electric Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 10,032 | |
Tariff-based Revenues | Electric Service Utility Operations | Bear Valley Electric Service, Inc. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 11,677 | |
Surcharges (Cost-recovery Activities) | Water Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 534 | 734 |
Surcharges (Cost-recovery Activities) | Electric Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 258 | |
Surcharges (Cost-recovery Activities) | Electric Service Utility Operations | Bear Valley Electric Service, Inc. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 202 | |
Other Products and Services | Water Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 517 | 495 |
Alternative revenues program [Member] | Water Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Alternative revenue program | (310) | (941) |
Alternative revenues program [Member] | Electric Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Alternative revenue program | (678) | |
Alternative revenues program [Member] | Electric Service Utility Operations | Bear Valley Electric Service, Inc. | ||
Disaggregation of Revenue [Line Items] | ||
Alternative revenue program | (340) | |
Water | Contracted Services | ASUS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 18,883 | 14,701 |
Wastewater | Contracted Services | ASUS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | $ 11,609 | $ 11,984 |
Revenue from Contract with Cu_5
Revenue from Contract with Customers - Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Unbilled receivable | $ 23,315 | $ 25,836 |
Contract with Customer, Liability, Revenue Recognized | 838 | |
Revenue, Remaining Performance Obligation, Amount | 3,200,000 | |
ASUS | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Unbilled receivable | 13,302 | 14,924 |
Receivable from the U.S. government | 75,979 | 74,670 |
Contract assets | 13,726 | 10,257 |
Contract liabilities | $ 1,049 | $ 1,800 |
Maximum | ASUS | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | 47 | |
Minimum | ASUS | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | 34 | |
Contracted Services [Member] | ASUS | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 50 years |
Regulatory Matters_ (Details)
Regulatory Matters: (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Regulatory matters: | |||
Regulatory asset not accruing carrying costs | $ (22,900) | ||
Regulatory assets | (18,263) | $ (16,539) | |
Pension and other post-retirement obligations | |||
Regulatory matters: | |||
Regulatory asset not accruing carrying costs | (65,400) | ||
Deferred Income Tax Charge | |||
Regulatory matters: | |||
Regulatory asset not accruing carrying costs | (78,000) | ||
Flow-through taxes, net | |||
Regulatory matters: | |||
Regulatory asset not accruing carrying costs | (9,700) | ||
Water Revenue Adjustment Mechanism and Modified Cost Balancing Account | |||
Regulatory matters: | |||
Increase (Decrease) in Other Regulatory Assets | 4,700 | ||
Derivative unrealized (gain) loss | |||
Regulatory matters: | |||
Regulatory asset not accruing carrying costs | (1,200) | ||
Bear Valley Electric Service, Inc. | |||
Regulatory matters: | |||
Regulatory asset CEMA - Storm | 455 | ||
Bear Valley Electric Service, Inc. | Other Regulatory Assets Net [Member] | |||
Regulatory matters: | |||
Regulatory assets | (3,257) | (2,629) | |
Bear Valley Electric Service, Inc. | Derivative unrealized (gain) loss | |||
Regulatory matters: | |||
Regulatory assets | 1,224 | (1,537) | |
Golden State Water Company | |||
Regulatory matters: | |||
Regulatory assets | (16,230) | (12,373) | |
Golden State Water Company | Revenue Subject to Refund [Member] | |||
Regulatory matters: | |||
Regulatory assets | 4,527 | 4,577 | |
Golden State Water Company | Costs deferred for future recovery on Aerojet case | |||
Regulatory matters: | |||
Regulatory assets | (6,544) | (6,751) | |
Golden State Water Company | Pension and other post-retirement obligations | |||
Regulatory matters: | |||
Regulatory assets | (64,693) | (65,576) | |
Golden State Water Company | Catastrophic Event Memo Account (CEMA) [Member] | |||
Regulatory matters: | |||
Regulatory assets | (5,140) | (4,119) | |
Golden State Water Company | Deferred Income Tax Charge | |||
Regulatory matters: | |||
Regulatory assets | 73,926 | 74,185 | |
Golden State Water Company | Flow-through taxes, net | |||
Regulatory matters: | |||
Regulatory assets | 9,013 | 9,722 | |
Golden State Water Company | Other Regulatory Assets Net [Member] | |||
Regulatory matters: | |||
Regulatory assets | (10,739) | (10,670) | |
Golden State Water Company | Water Revenue Adjustment Mechanism and Modified Cost Balancing Account | |||
Regulatory matters: | |||
Amount billed to customers as surcharges | 1,900 | $ 2,200 | |
Regulatory assets | (16,580) | $ (13,741) | |
Golden State Water Company | Water Revenue Adjustment Mechanism [Member] | |||
Regulatory matters: | |||
Regulatory assets | (1,400) | ||
Golden State Water Company and Bear Valley Electric Service Inc. | |||
Regulatory matters: | |||
Regulatory asset-CEMA | $ 5,700 | ||
Maximum [Member] | Golden State Water Company | Water Revenue Adjustment Mechanism and Modified Cost Balancing Account | |||
Regulatory matters: | |||
Regulatory Asset Recovery Periods | 24 months | ||
Minimum [Member] | Golden State Water Company | Water Revenue Adjustment Mechanism and Modified Cost Balancing Account | |||
Regulatory matters: | |||
Regulatory Asset Recovery Periods | 12 months |
Regulatory Matters_ Alternative
Regulatory Matters: Alternative-Revenue Programs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Regulatory matters: | |||
Regulatory assets | $ 18,263 | $ 16,539 | |
Water Revenue Adjustment Mechanism and Modified Cost Balancing Account | |||
Regulatory matters: | |||
Increase (decrease) in other regulatory assets | 4,700 | ||
GOLDEN STATE WATER COMPANY | |||
Regulatory matters: | |||
Regulatory assets | $ 16,230 | 12,373 | |
GOLDEN STATE WATER COMPANY | Water Revenue Adjustment Mechanism and Modified Cost Balancing Account | |||
Regulatory matters: | |||
Commercial paper, term | 90 days | ||
Amount billed to customers as surcharges | $ 1,900 | $ 2,200 | |
Regulatory assets | $ 16,580 | $ 13,741 | |
GOLDEN STATE WATER COMPANY | Water Revenue Adjustment Mechanism and Modified Cost Balancing Account | Minimum | |||
Regulatory matters: | |||
Regulatory Asset Recovery Periods | 12 months | ||
GOLDEN STATE WATER COMPANY | Water Revenue Adjustment Mechanism and Modified Cost Balancing Account | Maximum | |||
Regulatory matters: | |||
Regulatory Asset Recovery Periods | 24 months | ||
GOLDEN STATE WATER COMPANY | Water Revenue Adjustment Mechanism [Member] | |||
Regulatory matters: | |||
Regulatory assets | $ 1,400 | ||
GOLDEN STATE WATER COMPANY | Modified Cost Balancing Account | |||
Regulatory matters: | |||
Regulatory assets | $ 15,100 |
Earnings per Share_Capital St_3
Earnings per Share/Capital Stock: (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 1,269 | $ 1,809 |
Dividends paid | 12,361 | 11,242 |
Basic | ||
Net income | $ 19,268 | $ 14,072 |
Dividends Declared Per Common Share (in dollars per share) | $ 0.335 | $ 0.305 |
Weighted Average Dividends Common Stock | $ 12,361 | $ 11,242 |
Less: Distributed earnings to participating securities | 37 | 37 |
Undistributed earnings | 6,870 | 2,793 |
Undistributed earnings allocated to common shareholders | 6,850 | 2,784 |
Undistributed earnings allocated to participating securities | 20 | 9 |
Total income available to common shareholders, basic | $ 19,211 | $ 14,026 |
Weighted average Common Shares outstanding, basic (in shares) | 36,898 | 36,860 |
Basic earnings per Common Share (in dollars per share) | $ 0.52 | $ 0.38 |
Diluted | ||
Total income available to common shareholders, basic | $ 19,211 | $ 14,026 |
Undistributed earnings for dilutive stock-based awards | 20 | 9 |
Total common shareholders earnings, diluted | $ 19,231 | $ 14,035 |
Weighted average Common Shares outstanding, basic (in shares) | 36,898 | 36,860 |
Stock-based compensation (in shares) | 95 | 109 |
Weighted Average Number of Diluted Shares (in shares) | 36,993 | 36,969 |
Diluted earnings per Common Share (in dollars per share) | $ 0.52 | $ 0.38 |
Earnings per Share_Capital St_4
Earnings per Share/Capital Stock: (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Capital stock | ||
Net income | $ 19,268 | $ 14,072 |
Total income available to common shareholders, basic | $ 19,211 | $ 14,026 |
Additional disclosure | ||
Options outstanding (in shares) | 0 | 0 |
Restricted stock units outstanding (in shares) | 120,973 | 129,637 |
Common Shares issued under DRP and the 2000 and 2008 Employee Plans | 23,914 | 37,157 |
Payment, Tax Withholding, Share-based Payment Arrangement | $ 1,269 | $ 1,809 |
Weighted Average Dividends Common Stock | 12,361 | 11,242 |
Dividends paid | $ 12,361 | $ 11,242 |
Dividends Declared Per Common Share (in dollars per share) | $ 0.335 | $ 0.305 |
Preferred Stock Dividends and Other Adjustments | $ 37 | $ 37 |
Undistributed Earnings, Basic | 6,870 | 2,793 |
Undistributed earnings allocated to common shareholders | 6,850 | 2,784 |
Undistributed earnings allocated to participating securities | $ 20 | $ 9 |
Weighted average Common Shares outstanding, basic (in shares) | 36,898,000 | 36,860,000 |
Basic earnings per Common Share (in dollars per share) | $ 0.52 | $ 0.38 |
Exercise of stock options and other issuances of Common Shares | $ 0 | $ 30 |
GOLDEN STATE WATER COMPANY | ||
Capital stock | ||
Net income | 12,231 | 11,202 |
Additional disclosure | ||
Payment, Tax Withholding, Share-based Payment Arrangement | 1,155 | 1,610 |
Dividends paid | $ 12,400 | $ 11,250 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)MWh | Mar. 31, 2020USD ($) | |
Commodity Contract | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at end of the period | $ 1,200 | |
GOLDEN STATE WATER COMPANY | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Description of derivative activity volume | MWh | 445,573 | |
GOLDEN STATE WATER COMPANY | Minimum | Commodity Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Term of derivative contract | 3 years | |
GOLDEN STATE WATER COMPANY | Maximum | Commodity Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Term of derivative contract | 5 years | |
Bear Valley Electric Service, Inc. | Commodity Contract | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of the period | $ (1,537) | $ (3,171) |
Unrealized gains (losses) on purchased power contracts | 2,761 | (1,109) |
Fair value at end of the period | $ 1,224 | $ (4,280) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments: (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
GOLDEN STATE WATER COMPANY | Reported Value Measurement | ||
Fair value of financial instruments | ||
Long-term Debt, Fair Value | $ 444,172 | $ 444,271 |
GOLDEN STATE WATER COMPANY | Estimate of Fair Value Measurement | ||
Fair value of financial instruments | ||
Long-term Debt, Fair Value | 519,888 | $ 559,752 |
Mutual Funds | Fair Value, Inputs, Level 1 | ||
Financial liabilities: | ||
Long-term debt-GSWC | $ 26,500 |
Income Taxes_ (Details)
Income Taxes: (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Effective income tax rate | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |
Golden State Water Company | ||
Effective income tax rate | ||
ETRs ( as a percent) | 23.60% | 22.40% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |
Parent [Member] | ||
Effective income tax rate | ||
ETRs ( as a percent) | 23.50% | 21.70% |
Employee Benefit Plans_ (Detail
Employee Benefit Plans: (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Components of Net Periodic Benefits Cost: | |||
Increase (Decrease) in Regulatory Assets and Liabilities | $ (3,493) | $ (2,976) | |
GOLDEN STATE WATER COMPANY | |||
Components of Net Periodic Benefits Cost: | |||
Increase (Decrease) in Regulatory Assets and Liabilities | (3,165) | (2,976) | |
Pension Benefits | |||
Components of Net Periodic Benefits Cost: | |||
Service cost | 1,625 | 1,408 | |
Interest cost | 1,712 | 1,954 | |
Expected return on plan assets | (3,134) | (2,950) | |
Amortization of prior service cost | 109 | 109 | |
Amortization of actuarial (gain) loss | 993 | 442 | |
Net periodic benefits costs under accounting standards | 1,305 | 963 | |
Increase (Decrease) in Regulatory Assets and Liabilities | (351) | (93) | |
Defined Benefit Plan, Net Periodic Benefit Cost before Allocation to Overhead Pool | 954 | 870 | |
Expected contributions in current fiscal year | $ 3,600 | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.55% | ||
'Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate, Increase (Decrease) | 0.65% | ||
Defined Benefit Plan, Benefit Obligation | $ 272,800 | ||
Pension Benefits | Pro Forma | |||
Components of Net Periodic Benefits Cost: | |||
Sensitivity Analysis For Defined Benefit Plan, Benefit Obligation, Impact Of 65 Basis Point Increase In Discount Rate, Percent | (10.00%) | ||
Sensitivity Analysis For Defined Benefit Plan, Benefit Obligation, Impact Of 65 Basis Point Increase In Discount Rate, Amount | $ (27,300) | ||
Pension Benefits | GOLDEN STATE WATER COMPANY | |||
Components of Net Periodic Benefits Cost: | |||
Regulatory adjustment — deferred | $ (665) | ||
Pension Benefits | Bear Valley Electric Service, Inc. | |||
Components of Net Periodic Benefits Cost: | |||
Regulatory adjustment — deferred | (256) | ||
Other Postretirement Benefits | |||
Components of Net Periodic Benefits Cost: | |||
Service cost | 40 | 47 | |
Interest cost | 31 | 56 | |
Expected return on plan assets | (134) | (127) | |
Amortization of prior service cost | 0 | 0 | |
Amortization of actuarial (gain) loss | (287) | (199) | |
Net periodic benefits costs under accounting standards | (350) | (223) | |
Increase (Decrease) in Regulatory Assets and Liabilities | 0 | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost before Allocation to Overhead Pool | (350) | (223) | |
SERP | |||
Components of Net Periodic Benefits Cost: | |||
Service cost | 348 | 244 | |
Interest cost | 229 | 247 | |
Expected return on plan assets | 0 | 0 | |
Amortization of prior service cost | 0 | 0 | |
Amortization of actuarial (gain) loss | 419 | 211 | |
Net periodic benefits costs under accounting standards | 996 | 702 | |
Increase (Decrease) in Regulatory Assets and Liabilities | 0 | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost before Allocation to Overhead Pool | 996 | $ 702 | |
Water Service Utility Operations [Member] | Pension Benefits | GOLDEN STATE WATER COMPANY | |||
Components of Net Periodic Benefits Cost: | |||
Increase (Decrease) in Regulatory Assets and Liabilities | $ (351) |
Contingencies (Details)
Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Loss Contingencies [Line Items] | |
Amount spent in clean-up and remediation activities [Abstract] | $ 1.5 |
Term estimate for the environmental cleanup | 2 years |
Environmental Clean-Up and Remediation | GOLDEN STATE WATER COMPANY | |
Loss Contingencies [Line Items] | |
Environmental Remediation Expense | $ 6.4 |
Accrued liability for the estimated additional cost to complete the clean-up at the site | $ 1.3 |
Business Segments_ (Details)
Business Segments: (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Details of reportable segment | |||
Revenues | $ 117,060 | $ 109,077 | |
Operating income (loss) | 30,329 | 25,699 | |
Interest expense, net | (5,803) | (5,492) | |
Net property, plant and equipment | 1,542,423 | 1,432,397 | $ 1,512,043 |
Depreciation and amortization | 9,560 | 8,811 | |
Income tax expense | 5,914 | 3,901 | |
Capital additions | $ 37,093 | 33,544 | |
AWR | |||
Details of reportable segment | |||
Number of reportable segments | segment | 3 | ||
GOLDEN STATE WATER COMPANY | |||
Details of reportable segment | |||
Public Utilities Property Plant and Equipment Depreciation on Transportation Equipment | 82 | ||
Number of reportable segments | segment | 2 | ||
Revenues | $ 75,029 | 82,392 | |
Operating income (loss) | 21,059 | 22,092 | |
Net property, plant and equipment | 1,426,175 | $ 1,400,489 | |
Depreciation and amortization | 8,062 | 8,029 | |
Income tax expense | 3,768 | 3,228 | |
GOLDEN STATE WATER COMPANY | Water Service Utility Operations | |||
Details of reportable segment | |||
Revenues | $ 75,029 | 71,424 | |
GOLDEN STATE WATER COMPANY | Electric Service Utility Operations | |||
Details of reportable segment | |||
Revenues | 10,968 | ||
ASUS | Contracted Services | |||
Details of reportable segment | |||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | ||
Bear Valley Electric Service, Inc. | Electric Service Utility Operations | |||
Details of reportable segment | |||
Revenues | $ 11,539 | ||
Golden State Water Company and Bear Valley Electric Service Inc. | |||
Details of reportable segment | |||
Public Utilities Property Plant and Equipment Depreciation on Transportation Equipment | 95 | ||
Reportable Legal Entities | GOLDEN STATE WATER COMPANY | Water Service Utility Operations | |||
Details of reportable segment | |||
Revenues | 75,029 | 71,424 | |
Operating income (loss) | 21,059 | 18,605 | |
Interest expense, net | (5,711) | (5,133) | |
Net property, plant and equipment | 1,426,175 | 1,336,012 | |
Depreciation and amortization | 8,062 | 7,422 | |
Income tax expense | 3,768 | 2,378 | |
Capital additions | 31,824 | 28,459 | |
Reportable Legal Entities | GOLDEN STATE WATER COMPANY | Electric Service Utility Operations | |||
Details of reportable segment | |||
Revenues | 10,968 | ||
Operating income (loss) | 3,487 | ||
Interest expense, net | (326) | ||
Net property, plant and equipment | 74,745 | ||
Depreciation and amortization | 607 | ||
Income tax expense | 850 | ||
Capital additions | 3,554 | ||
Reportable Legal Entities | ASUS | Contracted Services | |||
Details of reportable segment | |||
Revenues | 30,492 | 26,685 | |
Operating income (loss) | 5,824 | 3,609 | |
Interest expense, net | 229 | (77) | |
Net property, plant and equipment | 21,902 | 21,640 | |
Depreciation and amortization | 859 | 782 | |
Income tax expense | 1,391 | 748 | |
Capital additions | 487 | 1,531 | |
Reportable Legal Entities | Bear Valley Electric Service, Inc. | Electric Service Utility Operations | |||
Details of reportable segment | |||
Revenues | 11,539 | ||
Operating income (loss) | 3,448 | ||
Interest expense, net | (86) | ||
Net property, plant and equipment | 94,346 | ||
Depreciation and amortization | 639 | ||
Income tax expense | 884 | ||
Capital additions | 4,782 | ||
Intersegment Eliminations | AWR | |||
Details of reportable segment | |||
Revenues | 0 | 0 | |
Operating income (loss) | (2) | (2) | |
Interest expense, net | 235 | 110 | |
Net property, plant and equipment | 0 | 0 | |
Depreciation and amortization | 0 | 0 | |
Income tax expense | (129) | (75) | |
Capital additions | $ 0 | $ 0 |
Business Segments_ (Details 2)
Business Segments: (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Details of reportable segment | |||
Total utility plant | $ 1,542,423 | $ 1,432,397 | $ 1,512,043 |
Other assets | 250,398 | 228,492 | |
Total Assets | 1,792,821 | 1,660,889 | 1,791,603 |
GOLDEN STATE WATER COMPANY | |||
Details of reportable segment | |||
Depreciation on transportation equipment | $ 82 | ||
Total utility plant | 1,426,175 | 1,400,489 | |
Total Assets | 1,561,723 | $ 1,560,782 | |
Golden State Water Company and Bear Valley Electric Service Inc. | |||
Details of reportable segment | |||
Depreciation on transportation equipment | $ 95 |
Completion of Electric Utilit_3
Completion of Electric Utility Reorganization Plan (Details) - USD ($) $ in Thousands | Jul. 01, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Oct. 30, 2020 |
Completion of Electric Utility Reorganization Plan[Line Items] | ||||
Gain (loss) on asset transfer | $ 0 | |||
Electric | $ 11,539 | $ 10,968 | ||
Net income | 19,268 | 14,072 | ||
Net cash provided from operating activities | 24,676 | 15,654 | ||
Net cash used in investing activities | (36,980) | (33,377) | ||
Net cash provided from financing activities (1) | (17,482) | 16,818 | ||
Incremental expansion of borrowing capacity | $ 30,000 | |||
Bear Valley Electric Service, Inc. | ||||
Completion of Electric Utility Reorganization Plan[Line Items] | ||||
Net assets transferred | $ 71,300 | |||
Bear Valley Electric Service, Inc. | ||||
Completion of Electric Utility Reorganization Plan[Line Items] | ||||
Debt instrument term | 3 years | |||
Maximum borrowing capacity on line of credit | $ 35,000 | |||
Outstanding borrowings | 22,000 | |||
Incremental expansion of borrowing capacity | 15,000 | |||
Taxes Payable | $ 0 | |||
Bear Valley Electric Service, Inc. | Electric Service Utility Operations | ||||
Completion of Electric Utility Reorganization Plan[Line Items] | ||||
Electric | 11,539 | |||
Operating expenses | 8,091 | |||
Operating income | 3,448 | |||
Net income | 2,523 | |||
Net cash provided from operating activities | 2,803 | |||
Net cash used in investing activities | (4,782) | |||
Net cash provided from financing activities (1) | 1,795 | |||
Net change in cash and cash equivalents | (184) | |||
Cash and cash equivalents, beginning of period | 367 | |||
Cash and cash equivalents, end of period | 183 | |||
Golden State Water Company | ||||
Completion of Electric Utility Reorganization Plan[Line Items] | ||||
Electric | 0 | 10,968 | ||
Net income | 12,231 | 11,202 | ||
Net cash provided from operating activities | 22,799 | 17,943 | ||
Net cash used in investing activities | (43,715) | (31,892) | ||
Net cash provided from financing activities (1) | $ (12,210) | 13,979 | ||
Golden State Water Company | Electric Service Utility Operations | ||||
Completion of Electric Utility Reorganization Plan[Line Items] | ||||
Electric | 10,968 | |||
Operating expenses | 7,482 | |||
Operating income | 3,486 | |||
Net income | $ 2,346 |
Subsequent Event (Details)
Subsequent Event (Details) - Note Payable 9.56 Percent Due 2031 - Golden State Water Company - USD ($) $ in Thousands | May 24, 2021 | Mar. 31, 2021 |
Subsequent Event [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 9.56% | |
Debt Instrument, Face Amount | $ 28,000 | |
Debt Instrument, Basis Spread on Variable Rate | 0.55% | |
Maximum [Member] | ||
Subsequent Event [Line Items] | ||
Debt Instrument Redemption Premium as Percentage of Par Value after Specified Period | 3.00% | |
Subsequent Event [Member] | Forecast | ||
Subsequent Event [Line Items] | ||
Redemption price of debt instrument | $ 840 | |
Debt Instrument Redemption Premium as Percentage of Par Value after Specified Period | 3.00% |