Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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) | 36,980,592 | |
Entity Central Index Key | 0001056903 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
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) | 171 | |
Entity Central Index Key | 0000092116 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment | ||
Regulated utility plant, at cost | $ 2,433,884 | $ 2,321,712 |
Non-utility property, at cost | 39,239 | 38,285 |
Total | 2,473,123 | 2,359,997 |
Less - Accumulated depreciation | (622,652) | (606,231) |
Net property, plant and equipment | 1,850,471 | 1,753,766 |
Other Property and Investments | ||
Goodwill | 1,116 | 1,116 |
Other property and investments | 37,767 | 36,907 |
Total other property and investments | 38,883 | 38,023 |
Current Assets | ||
Cash and cash equivalents | 8,604 | 5,997 |
Accounts receivable - customers, less allowance for doubtful accounts | 32,600 | 26,206 |
Unbilled receivable | 24,248 | 20,663 |
Receivable from the U.S. government (Note 2) | 51,564 | 34,974 |
Other accounts receivable, less allowance for doubtful accounts | 6,755 | 4,215 |
Income taxes receivable | 59 | 3,901 |
Materials and supplies | 16,218 | 14,623 |
Regulatory assets — current | 32,355 | 14,028 |
Prepayments and other current assets | 6,525 | 5,450 |
Purchase power contract derivative at fair value (Note 5) | 1,525 | 11,847 |
Contract assets (Note 2) | 11,232 | 9,390 |
Total current assets | 191,685 | 151,294 |
Other Assets | ||
Unbilled revenue — receivable from the U.S. government (Note 2) | 5,854 | 6,456 |
Receivable from the U.S. government (Note 2) | 44,480 | 50,482 |
Contract assets (Note 2) | 2,776 | 5,592 |
Operating lease right-of-use assets | 8,512 | 9,535 |
Regulatory assets | 47,557 | 5,694 |
Other | 15,011 | 13,532 |
Total other assets | 124,190 | 91,291 |
Total Assets | 2,205,229 | 2,034,374 |
Capitalization | ||
Common stock, value, issued | 262,884 | 260,158 |
Earnings reinvested in the business | 508,453 | 449,391 |
Total common shareholders’ equity | 771,337 | 709,549 |
Long-term debt | 575,459 | 446,547 |
Total capitalization | 1,346,796 | 1,156,096 |
Current Liabilities | ||
Notes payable to banks | 37,000 | 255,500 |
Long-term debt — current | 353 | 399 |
Accounts payable | 71,829 | 84,849 |
Accrued other taxes | 17,369 | 16,257 |
Accrued employee expenses | 14,817 | 13,996 |
Accrued interest | 8,952 | 5,308 |
Income taxes payable | 28,627 | 1,848 |
Regulatory liabilities | 2,245 | 4,574 |
Contract liabilities (Note 2) | 596 | 903 |
Operating lease liabilities | 1,909 | 1,892 |
Other | 11,310 | 10,996 |
Total current liabilities | 195,007 | 396,522 |
Other Credits | ||
Notes payable to banks | 236,500 | 22,000 |
Advances for construction | 63,961 | 64,351 |
Contributions in aid of construction - net | 149,586 | 147,918 |
Deferred income taxes | 156,438 | 149,677 |
Regulatory liabilities | 0 | 40,602 |
Unamortized investment tax credits | 1,028 | 1,082 |
Accrued pension and other postretirement benefits | 34,111 | 33,636 |
Operating lease liabilities | 7,087 | 8,090 |
Other | 14,715 | 14,400 |
Total other credits | 663,426 | 481,756 |
Commitments and Contingencies (Note 9) | ||
Total Capitalization and Liabilities | $ 2,205,229 | $ 2,034,374 |
Consolidated Balance Sheets (Parenthetical) | ||
Common Stock, Par Value (in usd per share) | $ 0 | $ 0 |
Common Stock, Shares Authorized (in shares) | 60,000,000 | 60,000,000 |
Common Stock, Shares, Outstanding (in shares) | 36,980,592 | 36,962,241 |
GSWC | ||
Property, Plant and Equipment | ||
Total | $ 2,239,809 | $ 2,147,643 |
Less - Accumulated depreciation | (542,886) | (530,925) |
Net property, plant and equipment | 1,696,923 | 1,616,718 |
Other Property and Investments | ||
Total other property and investments | 35,524 | 34,655 |
Current Assets | ||
Cash and cash equivalents | 88 | 370 |
Accounts receivable - customers, less allowance for doubtful accounts | 30,352 | 23,107 |
Unbilled receivable | 18,351 | 15,006 |
Other accounts receivable, less allowance for doubtful accounts | 2,342 | 2,721 |
Income taxes receivable | 0 | 1,692 |
Materials and supplies | 6,495 | 6,120 |
Regulatory assets — current | 32,355 | 14,028 |
Prepayments and other current assets | 4,915 | 4,464 |
Total current assets | 95,426 | 68,129 |
Other Assets | ||
Operating lease right-of-use assets | 8,292 | 9,208 |
Regulatory assets | 28,511 | 0 |
Other | 13,329 | 12,598 |
Total other assets | 50,132 | 21,806 |
Total Assets | 1,878,005 | 1,741,308 |
Capitalization | ||
Common stock, value, issued | 370,680 | 358,123 |
Earnings reinvested in the business | 317,845 | 285,783 |
Total common shareholders’ equity | 688,525 | 643,906 |
Long-term debt | 540,646 | 411,748 |
Total capitalization | 1,229,171 | 1,055,654 |
Current Liabilities | ||
Long-term debt — current | 353 | 399 |
Accounts payable | 58,380 | 65,944 |
Accrued other taxes | 15,197 | 14,501 |
Accrued employee expenses | 11,695 | 11,233 |
Accrued interest | 7,449 | 4,364 |
Income taxes payable | 27,314 | 0 |
Operating lease liabilities | 1,783 | 1,788 |
Other | 10,806 | 10,152 |
Total current liabilities | 132,977 | 108,381 |
Other Credits | ||
Notes payable to banks | 0 | 129,000 |
Other Notes Payable, Noncurrent | 103,000 | 0 |
Advances for construction | 63,941 | 64,331 |
Contributions in aid of construction - net | 149,586 | 147,918 |
Deferred income taxes | 142,932 | 138,788 |
Regulatory liabilities | 0 | 40,602 |
Unamortized investment tax credits | 1,028 | 1,082 |
Accrued pension and other postretirement benefits | 33,820 | 33,421 |
Operating lease liabilities | 6,998 | 7,878 |
Other | 14,552 | 14,253 |
Total other credits | 515,857 | 577,273 |
Commitments and Contingencies (Note 9) | ||
Total Capitalization and Liabilities | $ 1,878,005 | $ 1,741,308 |
Consolidated Balance Sheets (Parenthetical) | ||
Common Stock, Par Value (in usd per share) | $ 0 | $ 0 |
Common Stock, Shares Authorized (in shares) | 1,000 | 1,000 |
Common Stock, Shares, Outstanding (in shares) | 171 | 170 |
GSWC | Related Party | ||
Current Assets | ||
Intercompany receivable | $ 528 | $ 621 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts Receivable, allowance for doubtful accounts | $ 4,136 | $ 4,387 |
Other accounts receivable, allowance for doubtful accounts | $ 53 | $ 53 |
Common Stock, Shares Authorized (in shares) | 60,000,000 | 60,000,000 |
Common Stock, Shares, Outstanding (in shares) | 36,980,592 | 36,962,241 |
Common Stock, Par Value (in usd per share) | $ 0 | $ 0 |
GOLDEN STATE WATER COMPANY | ||
Accounts Receivable, allowance for doubtful accounts | $ 4,057 | $ 4,143 |
Other accounts receivable, allowance for doubtful accounts | $ 53 | $ 53 |
Common Stock, Shares Authorized (in shares) | 1,000 | 1,000 |
Common Stock, Shares, Outstanding (in shares) | 171 | 170 |
Common Stock, Par Value (in usd per share) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Revenues | ||||
Water | $ 116,231 | $ 100,799 | $ 345,851 | $ 265,561 |
Electric | 8,956 | 8,919 | 30,688 | 29,028 |
Contracted services | 26,509 | 25,266 | 93,980 | 71,572 |
Total operating revenues | 151,696 | 134,984 | 470,519 | 366,161 |
Operating Expenses | ||||
Water purchased | 23,216 | 20,304 | 55,590 | 58,115 |
Power purchased for pumping | 4,291 | 3,878 | 9,514 | 9,182 |
Groundwater production assessment | 5,990 | 5,650 | 15,188 | 14,726 |
Power purchased for resale | 2,383 | 2,673 | 9,838 | 9,186 |
Supply cost balancing accounts | 723 | 640 | 15,126 | (6,160) |
Other operation | 10,429 | 9,696 | 30,261 | 28,028 |
Administrative and general | 20,982 | 21,594 | 66,032 | 65,030 |
Depreciation and amortization | 10,184 | 10,117 | 31,645 | 30,402 |
Maintenance | 4,097 | 3,408 | 11,026 | 10,120 |
Property and other taxes | 6,034 | 5,942 | 17,884 | 17,247 |
ASUS construction | 11,616 | 10,742 | 46,554 | 31,263 |
Total operating expenses | 99,945 | 94,644 | 308,658 | 267,139 |
Operating Income | 51,751 | 40,340 | 161,861 | 99,022 |
Other Income and Expenses | ||||
Interest expense | (11,691) | (7,331) | (31,900) | (19,246) |
Interest income | 2,125 | 667 | 5,792 | 1,387 |
Other, net | (1,073) | 338 | 2,243 | (2,370) |
Total other income and expenses, net | (10,639) | (6,326) | (23,865) | (20,229) |
Income before income tax expense | 41,112 | 34,014 | 137,996 | 78,793 |
Income tax expense | 9,547 | 8,360 | 33,503 | 19,026 |
Net Income | $ 31,565 | $ 25,654 | $ 104,493 | $ 59,767 |
Basic Earnings Per Common Share | ||||
Weighted Average Number of Common Shares Outstanding (in shares) | 36,977 | 36,958 | 36,974 | 36,953 |
Basic Earnings Per Common Share (in dollars per share) | $ 0.85 | $ 0.69 | $ 2.82 | $ 1.61 |
Fully Diluted Earnings Per Share | ||||
Weighted Average Number of Diluted Shares (in shares) | 37,071 | 37,042 | 37,064 | 37,034 |
Fully Diluted Earnings Per Common Share (in dollars per share) | $ 0.85 | $ 0.69 | $ 2.82 | $ 1.61 |
Dividends Declared Per Common Share (in dollars per share) | $ 0.4300 | $ 0.3975 | $ 1.2250 | $ 1.1275 |
GOLDEN STATE WATER COMPANY | ||||
Operating Revenues | ||||
Water | $ 116,231 | $ 100,799 | $ 345,851 | $ 265,561 |
Total operating revenues | 116,231 | 100,799 | 345,851 | 265,561 |
Operating Expenses | ||||
Water purchased | 23,216 | 20,304 | 55,590 | 58,115 |
Power purchased for pumping | 4,291 | 3,878 | 9,514 | 9,182 |
Groundwater production assessment | 5,990 | 5,650 | 15,188 | 14,726 |
Supply cost balancing accounts | 788 | 885 | 16,200 | (5,682) |
Other operation | 7,509 | 7,273 | 22,001 | 20,908 |
Administrative and general | 14,548 | 14,362 | 44,211 | 43,945 |
Depreciation and amortization | 8,610 | 8,475 | 26,890 | 25,573 |
Maintenance | 3,002 | 2,526 | 7,518 | 7,193 |
Property and other taxes | 5,034 | 4,995 | 14,733 | 14,440 |
Total operating expenses | 72,988 | 68,348 | 211,845 | 188,400 |
Operating Income | 43,243 | 32,451 | 134,006 | 77,161 |
Other Income and Expenses | ||||
Interest expense | (8,383) | (5,950) | (23,140) | (16,650) |
Interest income | 1,608 | 325 | 4,356 | 562 |
Other, net | (1,045) | (70) | 2,041 | (3,070) |
Total other income and expenses, net | (7,820) | (5,695) | (16,743) | (19,158) |
Income before income tax expense | 35,423 | 26,756 | 117,263 | 58,003 |
Income tax expense | 8,830 | 6,831 | 29,674 | 14,623 |
Net Income | $ 26,593 | $ 19,925 | $ 87,589 | $ 43,380 |
STATEMENTS OF CHANGES IN COMMON
STATEMENTS OF CHANGES IN COMMON SHAREHOLDER'S EQUITY - USD ($) $ in Thousands | Total | Common Shares | Reinvested Earnings in the Business | GOLDEN STATE WATER COMPANY | GOLDEN STATE WATER COMPANY Common Shares | GOLDEN STATE WATER COMPANY Reinvested Earnings in the Business |
Beginning Balance (in shares) at Dec. 31, 2021 | 36,936,000 | 170 | ||||
Beginning balances at Dec. 31, 2021 | $ 685,947 | $ 258,442 | $ 427,505 | $ 615,686 | $ 356,530 | $ 259,156 |
Add: | ||||||
Net income | 14,162 | 14,162 | 8,567 | 8,567 | ||
Issuances of Common Shares under stock-based compensation plans (in shares) | 20,000 | |||||
Issuances of Common Shares under stock-based compensation plans | 0 | $ 0 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | 801 | 801 | 742 | 742 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 41 | $ 41 | 39 | $ 39 | ||
Deduct: | ||||||
Dividends on Common Shares | 13,485 | 13,485 | 13,500 | 13,500 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 41 | 41 | 39 | 39 | ||
Ending Balances (in shares) at Mar. 31, 2022 | 36,956,000 | 170 | ||||
Ending balances at Mar. 31, 2022 | 687,425 | $ 259,284 | 428,141 | 611,495 | $ 357,311 | 254,184 |
Beginning Balance (in shares) at Dec. 31, 2021 | 36,936,000 | 170 | ||||
Beginning balances at Dec. 31, 2021 | 685,947 | $ 258,442 | 427,505 | 615,686 | $ 356,530 | 259,156 |
Add: | ||||||
Net income | $ 59,767 | 43,380 | ||||
Issuances of Common Shares under stock-based compensation plans (in shares) | 24,612 | |||||
Ending Balances (in shares) at Sep. 30, 2022 | 36,961,000 | 170 | ||||
Ending balances at Sep. 30, 2022 | $ 705,504 | $ 260,011 | 445,493 | 633,399 | $ 357,970 | 275,429 |
Beginning Balance (in shares) at Mar. 31, 2022 | 36,956,000 | 170 | ||||
Beginning balances at Mar. 31, 2022 | 687,425 | $ 259,284 | 428,141 | 611,495 | $ 357,311 | 254,184 |
Add: | ||||||
Net income | 19,951 | 19,951 | 14,888 | 14,888 | ||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | 338 | 338 | 274 | 274 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 34 | $ 34 | 31 | $ 31 | ||
Deduct: | ||||||
Dividends on Common Shares | 13,489 | 13,489 | 13,500 | 13,500 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 34 | 34 | 31 | 31 | ||
Ending Balances (in shares) at Jun. 30, 2022 | 36,956,000 | 170 | ||||
Ending balances at Jun. 30, 2022 | 694,225 | $ 259,656 | 434,569 | 613,157 | $ 357,616 | 255,541 |
Add: | ||||||
Net income | 25,654 | 25,654 | 19,925 | 19,925 | ||
Issuances of Common Shares under stock-based compensation plans (in shares) | 5,000 | |||||
Issuances of Common Shares under stock-based compensation plans | 0 | $ 0 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | 315 | 315 | 317 | 317 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 40 | $ 40 | 37 | $ 37 | ||
Deduct: | ||||||
Dividends on Common Shares | 14,690 | 14,690 | 37 | 37 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 40 | 40 | ||||
Ending Balances (in shares) at Sep. 30, 2022 | 36,961,000 | 170 | ||||
Ending balances at Sep. 30, 2022 | 705,504 | $ 260,011 | 445,493 | 633,399 | $ 357,970 | 275,429 |
Beginning Balance (in shares) at Dec. 31, 2022 | 36,962,000 | 170 | ||||
Beginning balances at Dec. 31, 2022 | 709,549 | $ 260,158 | 449,391 | 643,906 | $ 358,123 | 285,783 |
Add: | ||||||
Net income | 34,407 | 34,407 | $ 27,463 | 27,463 | ||
Issuances of Common Shares under stock-based compensation plans (in shares) | 14,000 | 1 | 1 | |||
Issuances of Common Shares under stock-based compensation plans | 0 | $ 0 | ||||
Issuance of common share to parent | $ 10,000 | $ 10,000 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | 1,587 | 1,587 | 1,603 | 1,603 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 47 | $ 47 | 44 | $ 44 | ||
Deduct: | ||||||
Dividends on Common Shares | 14,695 | 14,695 | 24,700 | 24,700 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 47 | 47 | 44 | 44 | ||
Ending Balances (in shares) at Mar. 31, 2023 | 36,976,000 | 171 | ||||
Ending balances at Mar. 31, 2023 | 730,848 | $ 261,792 | 469,056 | 658,272 | $ 369,770 | 288,502 |
Beginning Balance (in shares) at Dec. 31, 2022 | 36,962,000 | 170 | ||||
Beginning balances at Dec. 31, 2022 | 709,549 | $ 260,158 | 449,391 | 643,906 | $ 358,123 | 285,783 |
Add: | ||||||
Net income | $ 104,493 | $ 87,589 | ||||
Issuances of Common Shares under stock-based compensation plans (in shares) | 18,351 | 1 | ||||
Issuance of common share to parent | $ 10,000 | |||||
Ending Balances (in shares) at Sep. 30, 2023 | 36,981,000 | 171 | ||||
Ending balances at Sep. 30, 2023 | $ 771,337 | $ 262,884 | 508,453 | 688,525 | $ 370,680 | 317,845 |
Beginning Balance (in shares) at Mar. 31, 2023 | 36,976,000 | 171 | ||||
Beginning balances at Mar. 31, 2023 | 730,848 | $ 261,792 | 469,056 | 658,272 | $ 369,770 | 288,502 |
Add: | ||||||
Net income | 38,521 | 38,521 | 33,533 | 33,533 | ||
Issuances of Common Shares under stock-based compensation plans (in shares) | 1,000 | |||||
Issuances of Common Shares under stock-based compensation plans | 0 | $ 0 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | 396 | 396 | 320 | 320 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 42 | $ 42 | 39 | $ 39 | ||
Deduct: | ||||||
Dividends on Common Shares | 14,699 | 14,699 | 14,700 | 14,700 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 42 | 42 | 39 | 39 | ||
Ending Balances (in shares) at Jun. 30, 2023 | 36,977,000 | 171 | ||||
Ending balances at Jun. 30, 2023 | 755,066 | $ 262,230 | 492,836 | 677,425 | $ 370,129 | 307,296 |
Add: | ||||||
Net income | 31,565 | 31,565 | 26,593 | 26,593 | ||
Issuances of Common Shares under stock-based compensation plans (in shares) | 4,000 | |||||
Issuances of Common Shares under stock-based compensation plans | 0 | $ 0 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | 606 | 606 | 507 | 507 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 48 | $ 48 | 44 | $ 44 | ||
Deduct: | ||||||
Dividends on Common Shares | 15,900 | 15,900 | 16,000 | 16,000 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 48 | 48 | 44 | 44 | ||
Ending Balances (in shares) at Sep. 30, 2023 | 36,981,000 | 171 | ||||
Ending balances at Sep. 30, 2023 | $ 771,337 | $ 262,884 | $ 508,453 | $ 688,525 | $ 370,680 | $ 317,845 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows From Operating Activities: | ||
Net income | $ 104,493 | $ 59,767 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 32,327 | 30,688 |
Provision for doubtful accounts | 1,238 | 833 |
Deferred income taxes and investment tax credits | 919 | (1,098) |
Stock-based compensation expense | 3,095 | 2,439 |
(Gain) loss on investments held in a trust | (2,084) | 6,445 |
Other — net | (41) | 263 |
Changes in assets and liabilities: | ||
Accounts receivable — customers | (7,632) | (1,760) |
Unbilled receivable | (2,983) | 4,393 |
Other accounts receivable | (2,540) | 3,179 |
Receivables from the U.S. government | (10,588) | 5,333 |
Materials and supplies | (1,595) | (1,281) |
Prepayments and other assets | 403 | 520 |
Contract assets | 974 | (3,993) |
Regulatory assets/liabilities | (86,070) | (14,065) |
Accounts payable | (8,108) | (575) |
Income taxes receivable/payable | 30,621 | 947 |
Contract liabilities | (307) | 996 |
Accrued pension and other postretirement benefits | 48 | (3,070) |
Other liabilities | 4,348 | (28) |
Net cash provided (used) | 56,518 | 89,933 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (136,131) | (122,056) |
Other investing activities | 952 | 321 |
Net cash provided (used) | (135,179) | (121,735) |
Cash Flows From Financing Activities: | ||
Receipt of advances for and contributions in aid of construction | 7,205 | 5,489 |
Refunds on advances for construction | (3,839) | (3,941) |
Repayments of long-term debt | (334) | (377) |
Proceeds from the issuance of long-term debt, net of issuance costs | 129,665 | 34,826 |
Net changes in notes payable to banks | (5,222) | 36,000 |
Dividends paid | (45,294) | (41,664) |
Other financing activities | (913) | (1,236) |
Net cash provided (used) | 81,268 | 29,097 |
Net change in cash and cash equivalents | 2,607 | (2,705) |
Cash and cash equivalents, beginning of period | 5,997 | 4,963 |
Cash and cash equivalents, end of period | 8,604 | 2,258 |
Non-cash transactions: | ||
Accrued payables for investment in utility plant | 35,287 | 37,510 |
Property installed by developers and conveyed | 1,555 | 511 |
GOLDEN STATE WATER COMPANY | ||
Cash Flows From Operating Activities: | ||
Net income | 87,589 | 43,380 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 27,489 | 25,773 |
Provision for doubtful accounts | 1,147 | 784 |
Deferred income taxes and investment tax credits | (581) | (1,433) |
Stock-based compensation expense | 2,853 | 2,194 |
(Gain) loss on investments held in a trust | (2,084) | 6,445 |
Other — net | 146 | 248 |
Changes in assets and liabilities: | ||
Accounts receivable — customers | (8,392) | (1,678) |
Unbilled receivable | (3,345) | 2,344 |
Other accounts receivable | 379 | 1,723 |
Materials and supplies | (375) | 61 |
Prepayments and other assets | 997 | 163 |
Regulatory assets/liabilities | (81,854) | (12,549) |
Accounts payable | (2,869) | 3,918 |
Intercompany receivable/payable | 53 | 25 |
Income taxes receivable/payable | 29,006 | 3,197 |
Accrued pension and other postretirement benefits | (2) | (3,175) |
Other liabilities | 3,439 | (152) |
Net cash provided (used) | 53,596 | 71,268 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (113,921) | (107,668) |
Other investing activities | 303 | 224 |
Net cash provided (used) | (113,618) | (107,444) |
Cash Flows From Financing Activities: | ||
Proceeds from Issuance of Common Shares | 10,000 | 0 |
Receipt of advances for and contributions in aid of construction | 7,205 | 5,489 |
Refunds on advances for construction | (3,839) | (3,941) |
Repayments of long-term debt | (334) | (377) |
Proceeds from the issuance of long-term debt, net of issuance costs | 129,665 | 0 |
Net change in intercompany borrowings | (129,000) | 63,000 |
Borrowings on notes payable to banks, net of issuance costs | 102,278 | 0 |
Dividends paid | (55,400) | (27,000) |
Other financing activities | (835) | (1,134) |
Net cash provided (used) | 59,740 | 36,037 |
Net change in cash and cash equivalents | (282) | (139) |
Cash and cash equivalents, beginning of period | 370 | 525 |
Cash and cash equivalents, end of period | 88 | 386 |
Non-cash transactions: | ||
Accrued payables for investment in utility plant | 33,832 | 36,144 |
Property installed by developers and conveyed | $ 1,555 | $ 511 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”), Bear Valley Electric Service, Inc. (“BVES”), 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”), Fort Riley Utility Services, Inc. (“FRUS”), Patuxent River Utility Services LLC (“PRUS”), and Bay State Utility Services LLC (“BSUS”)) . The subsidiaries of ASUS are collectively referred to as the “Military Utility Privatization Subsidiaries.” AWR, through its wholly owned subsidiaries, serves over one million people in ten states. GSWC and BVES are both California public utilities. GSWC is engaged in the purchase, production, distribution and sale of water throughout California serving approximately 264,000 customer connections. BVES distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,700 customer connections. The California Public Utilities Commission (“CPUC”) regulates GSWC’s and BVES’s businesses in matters including properties, rates, services, facilities, and transactions between GSWC, BVES, 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. ASUS also from time to time performs construction services on military bases as a subcontractor or pursuant to a task order agreement. On August 15, 2023, ASUS was awarded a new 50-year contract by the U.S. government to operate, maintain, and provide construction management services for the water distri bution and wastewater collection and treatment facilities at Naval Air Station Patuxent River, a United States Navy air station loc ated in Maryland. The initial firm fixed-price value of the contract is estimated at $349 million over a 50-year period and is subject to annual economic price adjustments. This initial value is also subject to adjustment based on the results of a joint inventory of assets to be performed during the transition period. ASUS will assume operations at Naval Air Station Patuxent River following the completion of a 6-month transition period. On September 29, 2023, ASUS was awarded a new 15-year contract by the U.S. government that is different than its existing 50 -year contracts to operate, maintain, and provide construction management services for the water distribution and wastewater collection and treatment facilities at Joint Base Cape Cod (“JBCC”) located in Massachusetts. Under this contract, ASUS will have the opportunity to perform work at JBCC through the periodic issuance of task orders by the U.S. government for up to a maximum initial firm fixed-price value of $45.0 million over a 15-year period, subject to adjustments as task orders are issued. In September 2023, the first task order was issued with a value of $2.3 million to perform an evaluation, construction and transition services that are scheduled for completion in 2024. 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 hereto 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, BVES 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, 2022 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, 2022 filed with the SEC. Related Party and Intercompany Transactions : As discussed below under Liquidity and Financing Activities , prior to AWR and GSWC entering into new separate credit agreements in June 2023 that replaced AWR's previous credit agreement, AWR borrowed under its credit facility and provided funds to both GSWC and ASUS in support of their operations. Under AWR's new credit facility, AWR borrows and continues to provide funds to ASUS in support of its operations and AWR parent. GSWC's new credit facility provides support for its water operations. BVES has a separate credit facility to support its operations. Furthermore, GSWC, BVES 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, BVES and ASUS, using allocation factors approved by the CPUC. GSWC allocated corporate office administrative and general costs to BVES of approximately $707,000 and $663,000 during the three months ended September 30, 2023 and 2022, and $2.8 million and $2.1 million during the nine months ended September 30, 2023 and 2022, respectively. GSWC allocated corporate office administrative and general costs to ASUS of approximately $1.1 million and $1.3 million during the three months ended September 30, 2023 and 2022, respectively, and $3.8 million and $4.0 million during the nine months ended September 30, 2023 and 2022. In January 2023, the Board of Directors approved the issuance of one GSWC Common Share to AWR for $10.0 million. In January 2023, GSWC issued $130.0 million in unsecured long-term notes in a private placement. GSWC used the proceeds from both the issuance of equity and long-term debt to pay-off all intercompany borrowings from AWR. On June 28, 2023, GSWC borrowed for the first time under its new syndicated credit facility and used the proceeds to again pay-off its short-term intercompany borrowings due to AWR. The CPUC requires GSWC to pay-off all intercompany borrowings it has from AWR within a 24-month period. GSWC's borrowings under its new credit facility will also be required to be paid-off in full within a 24-month period. Liquidity and Financing Activities : On June 28, 2023, AWR and GSWC, each entered into new unsecured revolving credit agreements with a term of five years provided by a syndicate of banks and financial institutions. Both credit agreements will mature in June 2028. In connection with the new credit agreements, AWR and GSWC incurred legal and other fees totali ng $566,000 and $802,000, respectively. The syndicated credit facilities replaced AWR’s previous credit agreement with a sole bank where AWR had a borrowing capacity of $280.0 million to support both GSWC and ASUS operations. Funds from the new facilities were used to pay-off in all outstanding borrowings under AWR's prior credit facility and GSWC's outstanding intercompany borrowings from AWR. Under the new syndicated revolving credit facilities, AWR and GSWC have a borrowing capacity of $150.0 million and $200.0 million, respectively. The borrowing capacity for each of the credit facilities may be expanded up to an additional $75.0 million subject to the lenders’ approval. On November 6, 2023, AWR’s credit facility was amended to increase the borrowing capacity from $150.0 million to $165.0 million to provide additional support to ASUS and AWR parent. In connection with the increase in borrowing capacity, the amendment also provides for the addition of a new bank to the existing syndicate group participating in AWR’s credit facility. The aggregate amount that may be outstanding under letters of credit for AWR and GSWC is $10.0 million and $20.0 million, respectively. Loans may be obtained under the credit facilities at the option of AWR/GSWC and bear interest at rates based on either a base rate plus an applicable margin or an adjusted term secured overnight financing rate (“SOFR”) determined by the SOFR administrator, currently the Federal Reserve Bank of New York, plus an applicable margin. The applicable margin depends upon AWR’s and GSWC's respective credit ratings. AWR's outstanding borrowings under its credit facility of $133.5 million as of September 30, 2023 have been classified as non-current liabilities on AWR’s Consolidated Balance Sheet. GSWC's outstanding borrowings under its credit facility of $103.0 million as of September 30, 2023 have been classified as non-current liabilities on GSWC’s Balance Sheet. Both credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type, including, among other things, affirmative covenants relating to compliance with law and material contracts, and negative covenants relating to additional indebtedness, liens, investments, restricted payments and asset sales. AWR and GSWC are not permitted to have a total capitalization ratio (as defined in the respective credit agreements) greater than 0.65 to 1.00 at the end of any quarter. Default under any indebtedness of any subsidiary of AWR, other than BVES, will result in a default under AWR’s credit agreement. However, a default under any indebtedness of any subsidiary of AWR will not result in a default under GSWC’s credit agreement. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Most of Registrant’s revenues are derived from contracts with customers, including tariff-based revenues from its regulated utilities at GSWC and BVES. ASUS’s initial 15-and 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 BVES have a diversified customer 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. Most of ASUS’s revenues are derived from the U.S. government. For the three and nine months ended September 30, 2023 and 2022, disaggregated revenues from contracts with customers by segment were as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2023 2022 2023 2022 Water: Tariff-based revenues $ 102,225 $ 90,998 $ 301,144 $ 247,108 Surcharges (cost-recovery activities) 1,107 672 1,982 2,018 Other 674 625 2,060 1,714 Water revenues from contracts with customers 104,006 92,295 305,186 250,840 WRAM under/(over)-collection (alternative revenue program) 12,225 8,504 40,665 14,721 Total water revenues (1) 116,231 100,799 345,851 265,561 Electric: Tariff-based revenues 8,424 8,891 30,416 29,824 Surcharges (cost-recovery activities) 138 29 404 88 Electric revenues from contracts with customers 8,562 8,920 30,820 29,912 BRRAM under/(over)-collection (alternative revenue program) 394 (1) (132) (884) Total electric revenues 8,956 8,919 30,688 29,028 Contracted services: Water 16,504 16,142 58,103 43,862 Wastewater 10,005 9,124 35,877 27,710 Contracted services revenues from contracts with customers 26,509 25,266 93,980 71,572 Total AWR revenues $ 151,696 $ 134,984 $ 470,519 $ 366,161 (1) Water revenues for the nine months ended September 30, 2023 includes approximately $30 million from the impact of retroactive new rates for the full year of 2022 as a result of the CPUC's approval of GSWC's general rate case (Note 3). Furthermore, the CPUC also issued a final decision in June 2023 on GSWC's cost of capital proceeding. As a result of the final cost of capital decision (Note 3), the nine months ended September 30, 2023 water revenues include an increase of $6.4 million, from the reversal of revenues subject to refund due to a change in estimate from what had been recorded during 2022. 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: (dollars in thousands) September 30, 2023 December 31, 2022 Unbilled receivables $ 10,661 $ 10,125 Receivable from the U.S. government $ 96,044 $ 85,456 Contract assets $ 14,008 $ 14,982 Contract liabilities $ 596 $ 903 Unbilled receivables and Receivable from the U.S. government represent receivables where the right to payment is conditional only by the passage of time. Contract Assets - Contract assets are assets 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 liabilities 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 and nine months ended September 30, 2023, which were included in contract liabilities at the beginning of the period were not material. Contracted services revenues recognized during the three and nine months ended September 30, 2023 from performance obligations satisfied in previous periods were also not material. As of September 30, 2023, AWR’s aggregate remaining performance obligations, which are entirely from the contracted services segment, were $4.0 billion. ASUS expects to recognize revenue on these remaining performance obligations over the remaining term of each of the contracts, which range from 15 to 50 years. Each of the contracts with the U.S. government is subject to termination, in whole or in part, prior to the end of its contract term for convenience of the U.S. government. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2023 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters In accordance with accounting principles for rate-regulated enterprises, GSWC and BVES record regulatory assets, which represent probable future recovery of incurred 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 September 30, 2023, GSWC and BVES had approximately $67.1 million of regulatory liabilities, net of regulatory assets, not accruing carrying costs. Of this amount, (i) $74.4 million of regulatory liabilities are excess deferred income taxes arising from the lower federal income tax rate under the Tax Cuts and Jobs Act enacted in December 2017 that are being refunded to customers, (ii) $2.6 million of net regulatory assets relates to the underfunded position in Registrant's pension and other retirement obligations (not including the two-way pension balancing accounts), and (iii) a $1.5 million regulatory liability related to a memorandum account authorized by the CPUC to track unrealized gains and losses on BVES’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 including flowed-through deferred income taxes. Regulatory assets represent costs incurred by GSWC and/or BVES 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 BVES 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 BVES’s regulatory 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) September 30, December 31, GSWC 2022/2023 general rate case memorandum accounts (unbilled revenue) $ 55,140 $ — Water revenue adjustment mechanism, net of modified cost balancing account 46,597 31,803 COVID-19 memorandum accounts 3,543 3,478 Excess deferred income taxes (70,515) (71,870) Other regulatory assets 26,381 19,964 Other regulatory liabilities (280) (9,949) Total GSWC $ 60,866 $ (26,574) BVES Derivative instrument memorandum account (Note 5) (1,525) (11,847) Wildfire mitigation and other fire prevention related costs memorandum accounts 16,370 13,007 Other regulatory assets 10,136 7,965 Other regulatory liabilities (8,180) (8,005) Total AWR $ 77,667 $ (25,454) 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, 2022 filed with the SEC. The discussion below focuses on significant matters and developments since December 31, 2022. Water General Rate Case and the 2022/2023 General Rate Case Memorandum Accounts: On June 29, 2023, the CPUC adopted a final decision in GSWC's general rate case application for all of its water regions and its general office that determines new water rates for the years 2022–2024. The assigned administrative law judge at the CPUC had issued a proposed decision on April 13, 2023 that, among other things, (i) adopted the full settlement agreement between GSWC and the Public Advocates Office at the CPUC (“Public Advocates”) that resolved all issues related to the 2022 annual revenue requirement in the general rate case application, and (ii) allowed for additional increases in adopted revenues for 2023 and 2024 subject to an earnings test and inflationary index values at the time of filing for implementation of the new rates. The final decision issued on June 29, 2023 is consistent in all material respects with the proposed decision issued in April. The new 2022 rates, once approved, became effective and retroactive to January 1, 2022. As a result, t he impact of retroactive rates for the full year of 2022 were reflected in the 2023 first quarter results as it became probable based on the proposed decision that the approved retroactive rates would be permitted to be billed to customers in the future. Upon receiving the final decision, GSWC filed for the implementation of new 2023 rate increases that went into effect on July 31, 2023. However, the new rates for 2023 were retroactive to January 1, 2023 and because of the proposed decision, the second-year rate increases have been reflected in the results of operations beginning in the 2023 first quarter and through the nine months ended September 30, 2023. Due to the delay in finalizing the water general rate case, water revenues billed to customers for the year ended December 31, 2022 and for the period from January 1, 2023 to July 30, 2023 were based on 2021 adopted rates. G SWC was authorized to create general rate case memorandum accounts to track the revenue differences between the 2021 adopted rates and the new 2022 and 2023 rates authorized by the CPUC. As of September 30, 2023, there is an aggregate cumulative amount of $55.1 million in the general rate case memorandum accounts that GSWC began recording as regulatory assets upon receiving the proposed decision, and relates to unbilled water revenues recognized during the three and nine months ended September 30, 2023. This amount represents the difference between the 2021 adopted rates billed to customers and the rates authorized in the final decision for the full year of 2022 and the 2023 second-year rate increases recorded from January 1 to July 30, 2023. In October 2023, GSWC filed advice letters and surcharges were implemented to recover the cumulative retroactive rate differences over 36 months. Alternative-Revenue Programs: GSWC currently 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”) 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 of September 30, 2023, GSWC had an aggregated regulatory asset of $46.6 million, which is comprised of a $51.2 million under-collection in the WRAM accounts and a $4.6 over-collection in the MCBA accounts. During the nine months ended September 30, 2023, GSWC recorded additional net under-collections in the WRAM/MCBA accounts of approximately $34.9 million related to the 2023 year that resulted largely from lower-than-adopted water usage as authorized in the general rate case decision. In addition, GSWC recorded a net reduction of $9.8 million of under-collections during the first quarter of 2023 to reflect the cumulative full-year impact of 2022 based on authorized 2022 amounts approved in the general rate case decision for both the WRAM and MCBA accounts. On July 27, 2023, the CPUC approved the recovery of all pre-2023 WRAM/MCBA balances. Accordingly, GSWC has implemented surcharges and surcredits to recover/refund all of its WRAM/MCBA balances accumulated as of December 31, 2022. As required by the accounting guidance for alternative revenue programs, GSWC is required to collect its WRAM balances within 24 months following the year in which an under-collection is recorded. As of September 30, 2023, there were no significant WRAM under-collections that were estimated to be collected beyond this 24 month period. Cost of Capital Proceeding: O n June 29, 2023, a final decision was adopted by the CPUC in the cost of capital proceeding that, among other things, (i) adopts GSWC’s requested capital structure of 57% equity and 43% debt; (ii) adopts a cost of debt of 5.1% for GSWC as compared to 6.6% previously authorized; (iii) adopts a return on equity of 8.85% for GSWC as compared to 8.9% previously authorized; (iv) allows for the continuation of the Water Cost of Capital Mechanism (“WCCM”) through December 31, 2024; and (v) adopts the new cost of capital for the three Following the receipt of the final decision adopted on June 29 in the cost of capital proceeding, management updated its analysis and reassessed the accounting estimates recorded to date related to GSWC’s lower cost of debt. Accordingly, GSWC recorded a change in its estimate that resulted in an increase to water revenues during the nine months ended September 30, 2023 in the amount of $6.4 million as a r esult of reversing its regulatory liability for revenues subject to refund that it had recorded during 2022. The WCCM adjusts the return on equity and rate of return on rate base between the three 2023, GSWC filed an advice letter to establish the WCCM for 2023, which increased GSWC's 8.85% adopted return on equity in the decision to 9.36% effective July 31, 2023. Additionally, for the period from October 1, 2022 through September 30, 2023, the Moody's Aa utility bond rate increased by 139.7 basis points from the benchmark, which again triggered another WCCM adjustment. On October 12, 2023, GSWC filed an advice letter to establish the WCCM for 2024, which has been approved by the CPUC and will increase GSWC’ s 9.36% adopted return on equity t o 10.06% eff ective January 1, 2024. COVID-19 Emergency Memorandum Accounts : The CPUC had authorized GSWC and BVES 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 emergency-related memorandum accounts. As of September 30, 2023, GSWC and BVES had approximately $3.5 million and $500,000, respectively, in regulatory asset accounts related to bad debt expense in excess of their revenue requirements, the purchase of personal protective equipment, additional incurred printing costs, and other incremental COVID-19-related costs, which GSWC and BVES intend to file with the CPUC for future recovery. Emergency-related memorandum accounts are well-established cost recovery mechanisms authorized 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 emergency-related memorandum accounts have not impacted GSWC’s or BVES’s earnings. On April 10, 2023, the Biden Administration terminated the COVID-19 national emergency. The COVID-19 emergency-related memorandum accounts for GSWC and BVES expired when the COVID-19 national emergency ended and no additional amounts will be included in these memorandum accounts. The CPUC requires that amounts tracked in GSWC’s and BVES’s COVID-19 memorandum accounts for unpaid customer bills be first offset by any (i) federal and state relief for water or electric utility bill debt, and (ii) customer payments through payment plan arrangements, prior to receiving recovery from customers at large. After these offsets are made, GSWC will file with the CPUC for recovery of the remaining balance. BVES intends to include the remaining balance in its COVID-19 memorandum account for recovery once all alternative sources of funding have been exhausted and credited to eligible customer accounts. In 2022, the CPUC’s moratoriums on service disconnections for nonpayment for water and electric customers ended. Accordingly, service disconnections due to nonpayment resumed in June 2022 for delinquent residential customers. BVES Regulatory Assets: Wildfire Mitigation and Other Fire Prevention Related Costs Memorandum Accounts The CPUC adopted regulations intended to enhance the fire safety of overhead electric power lines. Those regulations included increased minimum clearances around electric power lines. BVES was authorized to track incremental costs incurred to implement the regulations in a fire hazard prevention memorandum account for the purpose of obtaining cost recovery in a future general rate case. In August 2019, the CPUC issued a final decision on the electric general rate case, which set new rates for BVES through the year 2022. Among other things, the decision authorized BVES to record incremental costs related to vegetation management, such as costs for increased minimum clearances around electric power lines, in a CPUC-approved memorandum account for future recovery. As of September 30, 2023, BVES had approximately $10.9 million in incremental vegetation management costs recorded as a regulatory asset, which has been included in a new general rate case application filed with the CPUC in August 2022 for future recovery. The incremental costs related to vegetation management included in the memorandum account will be subject to review during the pending general rate case proceeding. California legislation enacted in September 2018 requires all investor-owned electric utilities to submit an annual wildfire mitigation plan (“WMP”) to the CPUC for approval. The WMP must include a utility’s plans on constructing, maintaining and operating its electrical lines and equipment to minimize the risk of catastrophic wildfire. In December 2022, the Office of Energy Infrastructure Safety under the California Natural Resources Agency approved BVES's 2022 WMP update. In February 2023, the CPUC ratified BVES’s current WMP. As of September 30, 2023, BVES has approximately $5.5 million related to expenses accumulated in its other WMP memorandum accounts that have been recognized as regulatory assets for future recovery. All capital expenditures and other incremental costs incurred through September 30, 2023 as a result of BVES’s WMPs are not currently in rates and have been filed for future recovery in BVES’s general rate case application. These costs will be subject to review during BVES's general rate case proceeding. 2023 Winter Storm Other Regulatory Asset BVES activated a catastrophic emergency memorandum account (“CEMA”) to track the incremental costs incurred in response to a severe winter storm that occurred during certain weeks of the first and second quarters of 2023. The governor of California declared a state of emergency for the storm. Incremental costs of approximately $1.3 million were incurred and included in the CEMA account, which has been recorded as a regulatory asset as of September 30, 2023 for future recovery. The incremental costs included in the CEMA account will be subject to review and approval by the CPUC. CEMA accounts are well-established cost recovery mechanisms authorized 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 this CEMA account did not impact BVES’s earnings. Other Regulatory Assets : |
Earnings per Share_Capital Stoc
Earnings per Share/Capital Stock | 9 Months Ended |
Sep. 30, 2023 | |
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 For The Nine Months Ended (in thousands, except per share amounts) 2023 2022 2023 2022 Net income $ 31,565 $ 25,654 $ 104,493 $ 59,767 Less: (a) Distributed earnings to common shareholders 15,900 14,690 45,294 41,664 Distributed earnings to participating securities 46 38 124 104 Undistributed earnings 15,619 10,926 59,075 17,999 (b) Undistributed earnings allocated to common shareholders 15,574 10,897 58,913 17,955 Undistributed earnings allocated to participating securities 45 29 162 44 Total income available to common shareholders, basic (a)+(b) $ 31,474 $ 25,587 $ 104,207 $ 59,619 Weighted average Common Shares outstanding, basic 36,977 36,958 36,974 36,953 Basic earnings per Common Share $ 0.85 $ 0.69 $ 2.82 $ 1.61 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 directors, and net income. There were no stock options outstanding as of September 30, 2023 and 2022 under these plans. At September 30, 2023 and 2022, there were 106,879 and 96,629 restricted stock units outstanding, respectively, including performance shares awarded to officers of the Company. 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 For The Nine Months Ended (in thousands, except per share amounts) 2023 2022 2023 2022 Common shareholders earnings, basic $ 31,474 $ 25,587 $ 104,207 $ 59,619 Undistributed earnings for dilutive stock-based awards 45 29 162 44 Total common shareholders earnings, diluted $ 31,519 $ 25,616 $ 104,369 $ 59,663 Weighted average common shares outstanding, basic 36,977 36,958 36,974 36,953 Stock-based compensation (1) 94 84 90 81 Weighted average common shares outstanding, diluted 37,071 37,042 37,064 37,034 Diluted earnings per Common Share $ 0.85 $ 0.69 $ 2.82 $ 1.61 (1) All of the 106,879 and 96,629 restricted stock units at September 30, 2023 and 2022, respectively, were included in the calculation of diluted EPS for the three and nine months ended September 30, 2023 and 2022. During the nine months ended September 30, 2023 and 2022, AWR issued 18,351 and 24,612 common shares related to restricted stock units, respectively. During the nine months ended September 30, 2023 and 2022, AWR paid $913,000 and $1.2 million, respectively, to taxing authorities on employees’ behalf for shares withheld related to net share settlements. During the nine months ended September 30, 2023 and 2022, GSWC paid $835,000 and $1.1 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 September 30, 2023 and 2022, AWR paid quarterly dividends of approximately $15.9 million, or $0.4300 per share, and $14.7 million, or $0.3975 per share, respectively. During the nine months ended September 30, 2023 and 2022, AWR paid quarterly dividends of approximately $45.3 million, or $1.2250 per share, and $41.7 million, or $1.1275 per share, respectively. During the nine months ended September 30, 2023, GSWC issued one Common Share to AWR for $10.0 million. Proceeds from the stock issuance were used to pay down a portion of intercompany borrowings owed to AWR as described in Note 1. During the three months ended September 30, 2023, GSWC paid dividends of $16.0 million to AWR. During the three months ended September 30, 2022, GSWC did not pay a dividend to AWR. ASUS paid a $14.7 million dividend to AWR during this period. During the nine months ended September 30, 2023 and 2022, GSWC paid dividends of $55.4 million and $27.0 million, respectively, to AWR. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments BVES had entered into long-term fixed price contracts to purchase power over three five 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 derivative instruments in purchase 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 do not impact Registrant’s earnings. As of September 30, 2023, there was a $1.5 million derivative asset at fair value for the derivatives in the power purchase contracts, with a corresponding regulatory liability recorded in the derivative instrument memorandum account as a result of overall fixed prices under BVES's purchase power contracts being lower than future energy prices. The notional volume of derivatives remaining under these long-term contracts as of September 30, 2023 was 715,221 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, Registrant 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 derivatives in the purchase power contracts, BVES 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 the derivative instruments 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 within BVES's purchase power contracts have 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 and nine months ended September 30, 2023 and 2022. The change in fair value was due to the change in market energy prices during the three and nine months ended September 30, 2023 and 2022. For The Three Months Ended For The Nine Months Ended (dollars in thousands) 2023 2022 2023 2022 Fair value at beginning of the period $ 4,657 $ 8,114 $ 11,847 $ 4,441 Unrealized (losses) gains on purchase power contracts (3,132) (545) (10,322) 3,128 Fair value at end of the period $ 1,525 $ 7,569 $ 1,525 $ 7,569 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
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 totale d $29.6 million as of September 30, 2023 and $27.5 million as of December 31, 2022. 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 AWR and GSWC, respectively. The fair values as of September 30, 2023 and December 31, 2022 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. September 30, 2023 December 31, 2022 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—AWR (1) $ 579,047 $ 523,698 $ 450,373 $ 424,151 September 30, 2023 December 31, 2022 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—GSWC (2) $ 544,047 $ 492,499 $ 415,373 $ 391,198 __________________ (1) Excl udes debt issuance costs of approximately $3.2 million and $3.4 million as of September 30, 2023 and December 31, 2022, respectively. (2) Excludes debt issuance costs of approximately $3.0 million and $3.2 million as of September 30, 2023 and December 31, 2022, res pectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesAWR’s effective income tax rate (“ETR”) was 23.2% and 24.6% for the three months ended September 30, 2023 and 2022, respectively, and was 24.3% and 24.1% for the nine months ended September 30, 2023 and 2022, respectively. GSWC’s ETR was 24.9% and 25.5% for the three months ended September 30, 2023 and 2022, respectively, and was 25.3% and 25.2% for the nine months ended September 30, 2023 and 2022, respectively.The AWR and GSWC ETRs differed from the federal corporate statutory tax rate of 21% primarily due to (i) state taxes; (ii) permanent differences, including certain tax effects from stock compensation; (iii) the ongoing amortization of the excess deferred income tax liability; and (iv) differences between book and taxable income that are treated as flowed-through adjustments in accordance with regulatory requirements (principally from plant, rate-case, and compensation-related items). As regulated utilities, GSWC and BVES treat certain temporary differences as being flowed-through in computing its income tax expense consistent with the income tax method used in its CPUC-jurisdiction rate making. Flowed-through items either increase or decrease tax expense and thus impact the ETR. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2023 | |
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 and nine months ended September 30, 2023 and 2022 were as follows: For The Three Months Ended September 30, Pension Benefits Other SERP (dollars in thousands) 2023 2022 2023 2022 2023 2022 Components of Net Periodic Benefits Cost: Service cost $ 705 $ 1,411 $ 33 $ 30 $ 312 $ 298 Interest cost 2,581 1,850 26 13 411 256 Expected return on plan assets (2,617) (3,291) (119) (147) — — Amortization of prior service cost 110 109 — — — — Amortization of actuarial (gain) loss — — (242) (478) (8) 145 Net periodic benefits costs under accounting standards 779 79 (302) (582) 715 699 Regulatory adjustments - deferred (27) — — — — — Total expense (benefit) recognized, before surcharges and allocation to overhead pool $ 752 $ 79 $ (302) $ (582) $ 715 $ 699 For The Nine Months Ended September 30, Pension Benefits Other SERP (dollars in thousands) 2023 2022 2023 2022 2023 2022 Components of Net Periodic Benefits Cost: Service cost $ 2,397 $ 4,233 $ 99 $ 96 $ 936 $ 894 Interest cost 7,607 5,550 77 45 1,233 768 Expected return on plan assets (7,863) (9,873) (358) (441) — — Amortization of prior service cost 326 327 — — — — Amortization of actuarial (gain) loss — — (724) (1,302) (24) 435 Net periodic benefits costs under accounting standards 2,467 237 (906) (1,602) 2,145 2,097 Regulatory adjustments - deferred (211) — — — — — Total expense (benefit) recognized, before surcharges and allocation to overhead pool $ 2,256 $ 237 $ (906) $ (1,602) $ 2,145 $ 2,097 In September 2023, Registrant contributed approximately $2.9 million to its pension plan. As authorized by the CPUC in the water and electric general rate case decisions, GSWC and BV ES 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 and nine months ended September 30, 2023, GSWC’s actual pension expense was higher than the amounts included in water customer rates by $27,000 and $211,000, respectively. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Environmental Clean-Up and Remediation at GSWC : 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 September 30, 2023, the total amount spent to clean up and remediate GSWC’s plant facility was approximately $6.3 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 September 30, 2023, 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 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 continue to be approved in rate base by the CPUC. Contracted Services: Most of ASUS’s utility privatization contract services are provided to the U.S. government pursuant to the terms of the initial 15-and 50-year firm, fixed-price contracts and additional firm, fixed-price contracts subject to annual economic price adjustments. ASUS also, from time to time, performs construction services on military bases as a subcontractor or pursuant to a task order agreement. Entering into contracts with the U.S. government subjects ASUS to potential government audits or investigations of its business practices and compliance with government procurement statutes and regulations. ASUS had been under a civil government investigation over bidding and estimating practices used in certain capital upgrade projects and has fully cooperated with the investigation. In July 2023, ASUS and the U.S. government entered into an agreement that settles civil and monetary claims by the U.S. government. This settlement did not have a material impact on Registrant’s financial statements. 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 | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments AWR has three reportable segments: water, electric and contracted services. GSWC has one segment, water. On a stand-alone basis, AWR has no material assets or liabilities other than its equity investments in its subsidiaries, note payables to bank, deferred taxes and intercompany note receivables. All GSWC and BVES business activities are conducted in California. Activities of ASUS and the Military Utility Privatization Subsidiaries are conducted in California, Florida, Kansas, Maryland, Massachusetts, New Mexico, North Carolina, South Carolina, Texas and Virginia. Some of ASUS’s wholly owned subsidiaries are regulated by the state in which the subsidiary primarily conducts water and/or wastewater operations. Fees charged for operations and maintenance and renewal and replacement services are based upon the terms of the contracts with the U.S. government, which have been filed, 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 balances are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime contractor funded capital expenditures for ASUS, and property installed by developers and conveyed to GSWC and BVES. As Of And For The Three Months Ended September 30, 2023 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 116,231 $ 8,956 $ 26,509 $ — $ 151,696 Operating income (loss) 43,243 2,049 6,204 255 51,751 Interest expense (income), net 6,775 760 394 1,637 9,566 Net property, plant and equipment 1,696,923 137,299 16,249 — 1,850,471 Depreciation and amortization expense (1) 8,610 776 798 — 10,184 Income tax expense (benefit) 8,830 (154) 1,430 (559) 9,547 Capital additions 37,349 9,947 186 — 47,482 As Of And For The Three Months Ended September 30, 2022 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 100,799 $ 8,919 $ 25,266 $ — $ 134,984 Operating income (loss) 32,451 2,337 5,553 (1) 40,340 Interest expense (income), net 5,625 355 (27) 711 6,664 Net property, plant and equipment 1,584,888 115,379 17,885 — 1,718,152 Depreciation and amortization expense (1) 8,475 709 933 — 10,117 Income tax expense (benefit) 6,831 478 1,347 (296) 8,360 Capital additions 40,684 4,711 109 — 45,504 As Of And For The Nine Months Ended September 30, 2023 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 345,851 $ 30,688 $ 93,980 $ — $ 470,519 Operating income (loss) 134,006 7,783 19,854 218 161,861 Interest expense (income), net 18,784 1,987 948 4,389 26,108 Net property, plant and equipment 1,696,923 137,299 16,249 — 1,850,471 Depreciation and amortization expense (1) 26,890 2,283 2,472 — 31,645 Income tax expense (benefit) 29,674 794 4,621 (1,586) 33,503 Capital additions 113,921 20,985 1,225 — 136,131 As Of And For The Nine Months Ended September 30, 2022 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 265,561 $ 29,028 $ 71,572 $ — $ 366,161 Operating income (loss) 77,161 7,973 13,894 (6) 99,022 Interest expense (income), net 16,088 763 (264) 1,272 17,859 Net property, plant and equipment 1,584,888 115,379 17,885 — 1,718,152 Depreciation and amortization expense (1) 25,573 2,049 2,780 — 30,402 Income tax expense (benefit) 14,623 1,645 3,399 (641) 19,026 Capital additions 107,668 13,485 903 — 122,056 (1) Depreciation computed on GSWC’s and BVES’s transportation equipment is recorded in other operation expenses and totaled $160,000 and $97,000 for the three months ended September 30, 2023 and 2022, respectively, and totaled $683,000 and $286,000 for the nine months ended September 30, 2023 and 2022, respectively. For the nine months ended September 30, 2023, approximately $212,000 of additional depreciation expense on GSWC's transportation equipment was recorded that relates to the cumulative retroactive impact for the full year of 2022 approved in the CPUC final decision in GSWC's general rate case that resulted from an increase to the transportation equipment composite depreciation rates that are retroactive to January 1, 2022. The following table reconciles total net property, plant and equipment (a key figure for ratemaking) to total consolidated assets (in thousands): September 30, 2023 2022 Total net property, plant and equipment $ 1,850,471 $ 1,718,152 Other assets 354,758 264,423 Total consolidated assets $ 2,205,229 $ 1,982,575 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income | $ 31,565 | $ 38,521 | $ 34,407 | $ 25,654 | $ 19,951 | $ 14,162 | $ 104,493 | $ 59,767 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies: (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Accounting | Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”), Bear Valley Electric Service, Inc. (“BVES”), 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”), Fort Riley Utility Services, Inc. (“FRUS”), Patuxent River Utility Services LLC (“PRUS”), and Bay State Utility Services LLC (“BSUS”)) . The subsidiaries of ASUS are collectively referred to as the “Military Utility Privatization Subsidiaries.” AWR, through its wholly owned subsidiaries, serves over one million people in ten states. GSWC and BVES are both California public utilities. GSWC is engaged in the purchase, production, distribution and sale of water throughout California serving approximately 264,000 customer connections. BVES distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,700 customer connections. The California Public Utilities Commission (“CPUC”) regulates GSWC’s and BVES’s businesses in matters including properties, rates, services, facilities, and transactions between GSWC, BVES, 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. ASUS also from time to time performs construction services on military bases as a subcontractor or pursuant to a task order agreement. On August 15, 2023, ASUS was awarded a new 50-year contract by the U.S. government to operate, maintain, and provide construction management services for the water distri bution and wastewater collection and treatment facilities at Naval Air Station Patuxent River, a United States Navy air station loc ated in Maryland. The initial firm fixed-price value of the contract is estimated at $349 million over a 50-year period and is subject to annual economic price adjustments. This initial value is also subject to adjustment based on the results of a joint inventory of assets to be performed during the transition period. ASUS will assume operations at Naval Air Station Patuxent River following the completion of a 6-month transition period. On September 29, 2023, ASUS was awarded a new 15-year contract by the U.S. government that is different than its existing 50 -year contracts to operate, maintain, and provide construction management services for the water distribution and wastewater collection and treatment facilities at Joint Base Cape Cod (“JBCC”) located in Massachusetts. Under this contract, ASUS will have the opportunity to perform work at JBCC through the periodic issuance of task orders by the U.S. government for up to a maximum initial firm fixed-price value of $45.0 million over a 15-year period, subject to adjustments as task orders are issued. In September 2023, the first task order was issued with a value of $2.3 million to perform an evaluation, construction and transition services that are scheduled for completion in 2024. 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 hereto 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, BVES 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, 2022 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, 2022 filed with the SEC. |
Related Party and Intercompany Transactions | Related Party and Intercompany Transactions : As discussed below under Liquidity and Financing Activities , prior to AWR and GSWC entering into new separate credit agreements in June 2023 that replaced AWR's previous credit agreement, AWR borrowed under its credit facility and provided funds to both GSWC and ASUS in support of their operations. Under AWR's new credit facility, AWR borrows and continues to provide funds to ASUS in support of its operations and AWR parent. GSWC's new credit facility provides support for its water operations. BVES has a separate credit facility to support its operations. Furthermore, GSWC, BVES 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, BVES and ASUS, using allocation factors approved by the CPUC. GSWC allocated corporate office administrative and general costs to BVES of approximately $707,000 and $663,000 during the three months ended September 30, 2023 and 2022, and $2.8 million and $2.1 million during the nine months ended September 30, 2023 and 2022, respectively. GSWC allocated corporate office administrative and general costs to ASUS of approximately $1.1 million and $1.3 million during the three months ended September 30, 2023 and 2022, respectively, and $3.8 million and $4.0 million during the nine months ended September 30, 2023 and 2022. In January 2023, the Board of Directors approved the issuance of one GSWC Common Share to AWR for $10.0 million. In January 2023, GSWC issued $130.0 million in unsecured long-term notes in a private placement. GSWC used the proceeds from both the issuance of equity and long-term debt to pay-off all intercompany borrowings from AWR. On June 28, 2023, GSWC borrowed for the first time under its new syndicated credit facility and used the proceeds to again pay-off its short-term intercompany borrowings due to AWR. The CPUC requires GSWC to pay-off all intercompany borrowings it has from AWR within a 24-month period. GSWC's borrowings under its new credit facility will also be required to be paid-off in full within a 24-month period. |
Liquidity and Financing Plans | Liquidity and Financing Activities : On June 28, 2023, AWR and GSWC, each entered into new unsecured revolving credit agreements with a term of five years provided by a syndicate of banks and financial institutions. Both credit agreements will mature in June 2028. In connection with the new credit agreements, AWR and GSWC incurred legal and other fees totali ng $566,000 and $802,000, respectively. The syndicated credit facilities replaced AWR’s previous credit agreement with a sole bank where AWR had a borrowing capacity of $280.0 million to support both GSWC and ASUS operations. Funds from the new facilities were used to pay-off in all outstanding borrowings under AWR's prior credit facility and GSWC's outstanding intercompany borrowings from AWR. Under the new syndicated revolving credit facilities, AWR and GSWC have a borrowing capacity of $150.0 million and $200.0 million, respectively. The borrowing capacity for each of the credit facilities may be expanded up to an additional $75.0 million subject to the lenders’ approval. On November 6, 2023, AWR’s credit facility was amended to increase the borrowing capacity from $150.0 million to $165.0 million to provide additional support to ASUS and AWR parent. In connection with the increase in borrowing capacity, the amendment also provides for the addition of a new bank to the existing syndicate group participating in AWR’s credit facility. The aggregate amount that may be outstanding under letters of credit for AWR and GSWC is $10.0 million and $20.0 million, respectively. Loans may be obtained under the credit facilities at the option of AWR/GSWC and bear interest at rates based on either a base rate plus an applicable margin or an adjusted term secured overnight financing rate (“SOFR”) determined by the SOFR administrator, currently the Federal Reserve Bank of New York, plus an applicable margin. The applicable margin depends upon AWR’s and GSWC's respective credit ratings. AWR's outstanding borrowings under its credit facility of $133.5 million as of September 30, 2023 have been classified as non-current liabilities on AWR’s Consolidated Balance Sheet. GSWC's outstanding borrowings under its credit facility of $103.0 million as of September 30, 2023 have been classified as non-current liabilities on GSWC’s Balance Sheet. Both credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type, including, among other things, affirmative covenants relating to compliance with law and material contracts, and negative covenants relating to additional indebtedness, liens, investments, restricted payments and asset sales. AWR and GSWC are not permitted to have a total capitalization ratio (as defined in the respective credit agreements) greater than 0.65 to 1.00 at the end of any quarter. Default under any indebtedness of any subsidiary of AWR, other than BVES, will result in a default under AWR’s credit agreement. However, a default under any indebtedness of any subsidiary of AWR will not result in a default under GSWC’s credit agreement. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | For the three and nine months ended September 30, 2023 and 2022, disaggregated revenues from contracts with customers by segment were as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2023 2022 2023 2022 Water: Tariff-based revenues $ 102,225 $ 90,998 $ 301,144 $ 247,108 Surcharges (cost-recovery activities) 1,107 672 1,982 2,018 Other 674 625 2,060 1,714 Water revenues from contracts with customers 104,006 92,295 305,186 250,840 WRAM under/(over)-collection (alternative revenue program) 12,225 8,504 40,665 14,721 Total water revenues (1) 116,231 100,799 345,851 265,561 Electric: Tariff-based revenues 8,424 8,891 30,416 29,824 Surcharges (cost-recovery activities) 138 29 404 88 Electric revenues from contracts with customers 8,562 8,920 30,820 29,912 BRRAM under/(over)-collection (alternative revenue program) 394 (1) (132) (884) Total electric revenues 8,956 8,919 30,688 29,028 Contracted services: Water 16,504 16,142 58,103 43,862 Wastewater 10,005 9,124 35,877 27,710 Contracted services revenues from contracts with customers 26,509 25,266 93,980 71,572 Total AWR revenues $ 151,696 $ 134,984 $ 470,519 $ 366,161 (1) Water revenues for the nine months ended September 30, 2023 includes approximately $30 million from the impact of retroactive new rates for the full year of 2022 as a result of the CPUC's approval of GSWC's general rate case (Note 3). Furthermore, the CPUC also issued a final decision in June 2023 on GSWC's cost of capital proceeding. As a result of the final cost of capital decision (Note 3), the nine months ended September 30, 2023 water revenues include an increase of $6.4 million, from the reversal of revenues subject to refund due to a change in estimate from what had been recorded during 2022. |
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: (dollars in thousands) September 30, 2023 December 31, 2022 Unbilled receivables $ 10,661 $ 10,125 Receivable from the U.S. government $ 96,044 $ 85,456 Contract assets $ 14,008 $ 14,982 Contract liabilities $ 596 $ 903 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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) September 30, December 31, GSWC 2022/2023 general rate case memorandum accounts (unbilled revenue) $ 55,140 $ — Water revenue adjustment mechanism, net of modified cost balancing account 46,597 31,803 COVID-19 memorandum accounts 3,543 3,478 Excess deferred income taxes (70,515) (71,870) Other regulatory assets 26,381 19,964 Other regulatory liabilities (280) (9,949) Total GSWC $ 60,866 $ (26,574) BVES Derivative instrument memorandum account (Note 5) (1,525) (11,847) Wildfire mitigation and other fire prevention related costs memorandum accounts 16,370 13,007 Other regulatory assets 10,136 7,965 Other regulatory liabilities (8,180) (8,005) Total AWR $ 77,667 $ (25,454) |
Earnings per Share_Capital St_2
Earnings per Share/Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating basic net income per share | The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used for calculating basic net income per share: Basic: For The Three Months Ended For The Nine Months Ended (in thousands, except per share amounts) 2023 2022 2023 2022 Net income $ 31,565 $ 25,654 $ 104,493 $ 59,767 Less: (a) Distributed earnings to common shareholders 15,900 14,690 45,294 41,664 Distributed earnings to participating securities 46 38 124 104 Undistributed earnings 15,619 10,926 59,075 17,999 (b) Undistributed earnings allocated to common shareholders 15,574 10,897 58,913 17,955 Undistributed earnings allocated to participating securities 45 29 162 44 Total income available to common shareholders, basic (a)+(b) $ 31,474 $ 25,587 $ 104,207 $ 59,619 Weighted average Common Shares outstanding, basic 36,977 36,958 36,974 36,953 Basic earnings per Common Share $ 0.85 $ 0.69 $ 2.82 $ 1.61 |
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 For The Nine Months Ended (in thousands, except per share amounts) 2023 2022 2023 2022 Common shareholders earnings, basic $ 31,474 $ 25,587 $ 104,207 $ 59,619 Undistributed earnings for dilutive stock-based awards 45 29 162 44 Total common shareholders earnings, diluted $ 31,519 $ 25,616 $ 104,369 $ 59,663 Weighted average common shares outstanding, basic 36,977 36,958 36,974 36,953 Stock-based compensation (1) 94 84 90 81 Weighted average common shares outstanding, diluted 37,071 37,042 37,064 37,034 Diluted earnings per Common Share $ 0.85 $ 0.69 $ 2.82 $ 1.61 (1) All of the 106,879 and 96,629 restricted stock units at September 30, 2023 and 2022, respectively, were included in the calculation of diluted EPS for the three and nine months ended September 30, 2023 and 2022. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | The following table presents changes in the fair value of the Level 3 derivatives for the three and nine months ended September 30, 2023 and 2022. The change in fair value was due to the change in market energy prices during the three and nine months ended September 30, 2023 and 2022. For The Three Months Ended For The Nine Months Ended (dollars in thousands) 2023 2022 2023 2022 Fair value at beginning of the period $ 4,657 $ 8,114 $ 11,847 $ 4,441 Unrealized (losses) gains on purchase power contracts (3,132) (545) (10,322) 3,128 Fair value at end of the period $ 1,525 $ 7,569 $ 1,525 $ 7,569 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments: (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of estimates of the fair value of long-term debt | The table below estimates the fair value of long-term debt held by AWR and GSWC, respectively. The fair values as of September 30, 2023 and December 31, 2022 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. September 30, 2023 December 31, 2022 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—AWR (1) $ 579,047 $ 523,698 $ 450,373 $ 424,151 September 30, 2023 December 31, 2022 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—GSWC (2) $ 544,047 $ 492,499 $ 415,373 $ 391,198 __________________ (1) Excl udes debt issuance costs of approximately $3.2 million and $3.4 million as of September 30, 2023 and December 31, 2022, respectively. (2) Excludes debt issuance costs of approximately $3.0 million and $3.2 million as of September 30, 2023 and December 31, 2022, res pectively. |
Employee Benefit Plans_ (Tables
Employee Benefit Plans: (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 and nine months ended September 30, 2023 and 2022 were as follows: For The Three Months Ended September 30, Pension Benefits Other SERP (dollars in thousands) 2023 2022 2023 2022 2023 2022 Components of Net Periodic Benefits Cost: Service cost $ 705 $ 1,411 $ 33 $ 30 $ 312 $ 298 Interest cost 2,581 1,850 26 13 411 256 Expected return on plan assets (2,617) (3,291) (119) (147) — — Amortization of prior service cost 110 109 — — — — Amortization of actuarial (gain) loss — — (242) (478) (8) 145 Net periodic benefits costs under accounting standards 779 79 (302) (582) 715 699 Regulatory adjustments - deferred (27) — — — — — Total expense (benefit) recognized, before surcharges and allocation to overhead pool $ 752 $ 79 $ (302) $ (582) $ 715 $ 699 For The Nine Months Ended September 30, Pension Benefits Other SERP (dollars in thousands) 2023 2022 2023 2022 2023 2022 Components of Net Periodic Benefits Cost: Service cost $ 2,397 $ 4,233 $ 99 $ 96 $ 936 $ 894 Interest cost 7,607 5,550 77 45 1,233 768 Expected return on plan assets (7,863) (9,873) (358) (441) — — Amortization of prior service cost 326 327 — — — — Amortization of actuarial (gain) loss — — (724) (1,302) (24) 435 Net periodic benefits costs under accounting standards 2,467 237 (906) (1,602) 2,145 2,097 Regulatory adjustments - deferred (211) — — — — — Total expense (benefit) recognized, before surcharges and allocation to overhead pool $ 2,256 $ 237 $ (906) $ (1,602) $ 2,145 $ 2,097 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 balances are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime contractor funded capital expenditures for ASUS, and property installed by developers and conveyed to GSWC and BVES. As Of And For The Three Months Ended September 30, 2023 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 116,231 $ 8,956 $ 26,509 $ — $ 151,696 Operating income (loss) 43,243 2,049 6,204 255 51,751 Interest expense (income), net 6,775 760 394 1,637 9,566 Net property, plant and equipment 1,696,923 137,299 16,249 — 1,850,471 Depreciation and amortization expense (1) 8,610 776 798 — 10,184 Income tax expense (benefit) 8,830 (154) 1,430 (559) 9,547 Capital additions 37,349 9,947 186 — 47,482 As Of And For The Three Months Ended September 30, 2022 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 100,799 $ 8,919 $ 25,266 $ — $ 134,984 Operating income (loss) 32,451 2,337 5,553 (1) 40,340 Interest expense (income), net 5,625 355 (27) 711 6,664 Net property, plant and equipment 1,584,888 115,379 17,885 — 1,718,152 Depreciation and amortization expense (1) 8,475 709 933 — 10,117 Income tax expense (benefit) 6,831 478 1,347 (296) 8,360 Capital additions 40,684 4,711 109 — 45,504 As Of And For The Nine Months Ended September 30, 2023 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 345,851 $ 30,688 $ 93,980 $ — $ 470,519 Operating income (loss) 134,006 7,783 19,854 218 161,861 Interest expense (income), net 18,784 1,987 948 4,389 26,108 Net property, plant and equipment 1,696,923 137,299 16,249 — 1,850,471 Depreciation and amortization expense (1) 26,890 2,283 2,472 — 31,645 Income tax expense (benefit) 29,674 794 4,621 (1,586) 33,503 Capital additions 113,921 20,985 1,225 — 136,131 As Of And For The Nine Months Ended September 30, 2022 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 265,561 $ 29,028 $ 71,572 $ — $ 366,161 Operating income (loss) 77,161 7,973 13,894 (6) 99,022 Interest expense (income), net 16,088 763 (264) 1,272 17,859 Net property, plant and equipment 1,584,888 115,379 17,885 — 1,718,152 Depreciation and amortization expense (1) 25,573 2,049 2,780 — 30,402 Income tax expense (benefit) 14,623 1,645 3,399 (641) 19,026 Capital additions 107,668 13,485 903 — 122,056 (1) Depreciation computed on GSWC’s and BVES’s transportation equipment is recorded in other operation expenses and totaled $160,000 and $97,000 for the three months ended September 30, 2023 and 2022, respectively, and totaled $683,000 and $286,000 for the nine months ended September 30, 2023 and 2022, respectively. For the nine months ended September 30, 2023, approximately $212,000 of additional depreciation expense on GSWC's transportation equipment was recorded that relates to the cumulative retroactive impact for the full year of 2022 approved in the CPUC final decision in GSWC's general rate case that resulted from an increase to the transportation equipment composite depreciation rates that are retroactive to January 1, 2022. |
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): September 30, 2023 2022 Total net property, plant and equipment $ 1,850,471 $ 1,718,152 Other assets 354,758 264,423 Total consolidated assets $ 2,205,229 $ 1,982,575 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies: (Details) | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 28, 2023 USD ($) | Sep. 30, 2023 USD ($) state | Mar. 31, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) customer state registrant shares | Sep. 30, 2022 USD ($) shares | Nov. 06, 2023 USD ($) | Jun. 16, 2023 USD ($) | Jan. 13, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Summary of significant accounting policies | ||||||||||
Number of customers | customer | 1,000,000 | |||||||||
Number of states in which entity operates | state | 10 | 10 | ||||||||
Number of registrants filing combined report | registrant | 2 | |||||||||
Issuances of Common Shares under stock-based compensation plans (in shares) | shares | 18,351 | 24,612 | ||||||||
Debt instrument term | 5 years | |||||||||
Incremental expansion of borrowing capacity | $ 75,000,000 | $ 75,000,000 | ||||||||
Notes payable to banks | 236,500,000 | 236,500,000 | $ 22,000,000 | |||||||
Notes payable to banks | 37,000,000 | 37,000,000 | 255,500,000 | |||||||
Syndicated Revolving Credit Facility member [Member] | ||||||||||
Summary of significant accounting policies | ||||||||||
Line of credit arrangements | 566,000 | 566,000 | ||||||||
Repayments of Lines of Credit | $ 280,000,000 | |||||||||
Letter of Credit | Subsequent Event | ||||||||||
Summary of significant accounting policies | ||||||||||
Maximum borrowing capacity on line of credit | $ 10,000,000 | |||||||||
Syndicated Revolving Credit Facility member [Member] | ||||||||||
Summary of significant accounting policies | ||||||||||
Notes payable to banks | 133,500,000 | 133,500,000 | ||||||||
ASUS | ||||||||||
Summary of significant accounting policies | ||||||||||
Payments to affiliate for corporate office administrative and general costs | 1,100,000 | $ 1,300,000 | $ 3,800,000 | $ 4,000,000 | ||||||
ASUS | Contracted services: | ||||||||||
Summary of significant accounting policies | ||||||||||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | |||||||||
BVES | ||||||||||
Summary of significant accounting policies | ||||||||||
Payments to affiliate for corporate office administrative and general costs | 707,000 | $ 663,000 | $ 2,800,000 | $ 2,100,000 | ||||||
Current borrowing capacity | $ 35,000,000 | |||||||||
Incremental expansion of borrowing capacity | 25,000,000 | |||||||||
Maximum borrowing capacity on line of credit | $ 50,000,000 | |||||||||
BVES | Syndicated Revolving Credit Facility member [Member] | ||||||||||
Summary of significant accounting policies | ||||||||||
Notes payable to banks | 37,000,000 | $ 37,000,000 | ||||||||
BVES | Electric: | ||||||||||
Summary of significant accounting policies | ||||||||||
Number of customers | customer | 24,700 | |||||||||
GSWC | ||||||||||
Summary of significant accounting policies | ||||||||||
Issuances of Common Shares under stock-based compensation plans (in shares) | shares | 1 | 1 | ||||||||
Issuance of common share to parent | $ 10,000,000 | $ 10,000,000 | ||||||||
Intercompany borrowings payment term | 24 months | |||||||||
Notes payable to banks | 0 | $ 0 | $ 129,000,000 | |||||||
GSWC | Syndicated Revolving Credit Facility member [Member] | ||||||||||
Summary of significant accounting policies | ||||||||||
Line of credit arrangements | 802,000 | 802,000 | ||||||||
GSWC | Letter of Credit | Subsequent Event | ||||||||||
Summary of significant accounting policies | ||||||||||
Maximum borrowing capacity on line of credit | 20,000,000 | |||||||||
GSWC | Syndicated Revolving Credit Facility member [Member] | ||||||||||
Summary of significant accounting policies | ||||||||||
Notes payable to banks | 103,000,000 | $ 103,000,000 | ||||||||
GSWC | Unsecured Private Placement Notes | ||||||||||
Summary of significant accounting policies | ||||||||||
Face amount of debt | $ 130,000,000 | |||||||||
GSWC | Water: | ||||||||||
Summary of significant accounting policies | ||||||||||
Number of customers | customer | 264,000 | |||||||||
Patuxent River Utility Services LLC ( PRUS) | Contracted services: | ||||||||||
Summary of significant accounting policies | ||||||||||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | |||||||||
Initial price contract value | $ 349,000,000 | |||||||||
Period of transition to operate and maintain water system at new military base | 6 months | |||||||||
Bay State Utility Service LLC (" BSUS") | Contracted services: | ||||||||||
Summary of significant accounting policies | ||||||||||
Period of fixed price contracts to operate and maintain water systems at various military bases | 15 years | |||||||||
Initial price contract value | $ 45,000,000 | |||||||||
Contract initial order value to perform an evaluation, construction, and transition services. | $ 2,300,000 | |||||||||
Maximum | Syndicated Revolving Credit Facility member [Member] | ||||||||||
Summary of significant accounting policies | ||||||||||
Current borrowing capacity | $ 150,000,000 | $ 150,000,000 | ||||||||
Ratio of Indebtedness to Net Capital | 0.65 | 0.65 | ||||||||
Maximum | Syndicated Revolving Credit Facility member [Member] | Subsequent Event | ||||||||||
Summary of significant accounting policies | ||||||||||
Current borrowing capacity | $ 165,000,000 | |||||||||
Maximum | ASUS | ||||||||||
Summary of significant accounting policies | ||||||||||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | |||||||||
Maximum | GSWC | Syndicated Revolving Credit Facility member [Member] | ||||||||||
Summary of significant accounting policies | ||||||||||
Current borrowing capacity | $ 200,000,000 | $ 200,000,000 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
ASUS | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, amount | $ 4,000 |
ASUS | Minimum | |
Disaggregation of Revenue [Line Items] | |
Period of fixed price contracts to operate and maintain water systems at various military bases | 15 years |
ASUS | Maximum | |
Disaggregation of Revenue [Line Items] | |
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 50 years |
GSWC | Cost of capital proceeding | |
Disaggregation of Revenue [Line Items] | |
Revenue impact due to lower cost of debt | $ 6.4 |
Contracted services: | ASUS | |
Disaggregation of Revenue [Line Items] | |
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years |
Electric: | BVES | Sales | Customer Concentration Risk | |
Disaggregation of Revenue [Line Items] | |
Concentration risk, percentage | 90% |
Water: | |
Disaggregation of Revenue [Line Items] | |
Retroactive water revenues impact as a result of a proposed decision | $ 30 |
Water: | GSWC | Sales | Customer Concentration Risk | |
Disaggregation of Revenue [Line Items] | |
Concentration risk, percentage | 90% |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | $ 151,696 | $ 134,984 | $ 470,519 | $ 366,161 |
GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 116,231 | 100,799 | 345,851 | 265,561 |
Water: | GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 104,006 | 92,295 | 305,186 | 250,840 |
Total operating revenues | 116,231 | 100,799 | 345,851 | 265,561 |
Electric: | BVES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 8,562 | 8,920 | 30,820 | 29,912 |
Total operating revenues | 8,956 | 8,919 | 30,688 | 29,028 |
Contracted services: | ASUS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 26,509 | 25,266 | 93,980 | 71,572 |
Tariff-based revenues | Water: | GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 102,225 | 90,998 | 301,144 | 247,108 |
Tariff-based revenues | Electric: | BVES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 8,424 | 8,891 | 30,416 | 29,824 |
Surcharges (cost-recovery activities) | Water: | GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 1,107 | 672 | 1,982 | 2,018 |
Surcharges (cost-recovery activities) | Electric: | BVES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 138 | 29 | 404 | 88 |
Other | Water: | GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 674 | 625 | 2,060 | 1,714 |
WRAM under/(over)-collection (alternative revenue program) | Water: | GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue programs, net | 12,225 | 8,504 | 40,665 | 14,721 |
WRAM under/(over)-collection (alternative revenue program) | Electric: | BVES | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue programs, net | 394 | (1) | (132) | (884) |
Water | Contracted services: | ASUS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 16,504 | 16,142 | 58,103 | 43,862 |
Wastewater | Contracted services: | ASUS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | $ 10,005 | $ 9,124 | $ 35,877 | $ 27,710 |
Revenues - Assets and Liabiliti
Revenues - Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Disaggregation of Revenue [Line Items] | ||
Unbilled receivable | $ 24,248 | $ 20,663 |
ASUS | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled receivable | 10,661 | 10,125 |
Receivable from the U.S. government | 96,044 | 85,456 |
Contract assets | 14,008 | 14,982 |
Contract liabilities | $ 596 | $ 903 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2023 | Jun. 30, 2023 | Jun. 29, 2023 | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2024 | Sep. 30, 2023 USD ($) | Sep. 30, 2022 | Apr. 10, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Regulatory matters: | ||||||||||
Regulatory asset not accruing carrying costs | $ 67,100,000 | $ 67,100,000 | ||||||||
Net regulatory Assets | 77,667,000 | 77,667,000 | $ (25,454,000) | |||||||
Regulatory asset amount billed to customers as surcharges | $ 0 | |||||||||
Cost of capital proceeding | ||||||||||
Regulatory matters: | ||||||||||
Adjustment to return on equity, if more than 100 basis point change | 0.5 | |||||||||
Threshold percentage of Moody's average bond rate used adjusting return on equity and rate of return on rate base, increase (decrease) | 0.0100 | |||||||||
GSWC | ||||||||||
Regulatory matters: | ||||||||||
Net regulatory Assets | $ 60,866,000 | 60,866,000 | (26,574,000) | |||||||
Approved equity capital structure (in percent) | 57% | |||||||||
Approved debt capital structure (in percent) | 43% | |||||||||
Approved debt capital structure, percentage previously authorized | 6.60% | |||||||||
Approved return on equity previously authorized (in percent) | 8.90% | |||||||||
Regulatory asset-CEMA | $ 3,500,000 | $ 3,500,000 | ||||||||
GSWC | Cost of capital proceeding | ||||||||||
Regulatory matters: | ||||||||||
Approved debt capital structure in May 2021 cost of capital application (in percent) | 5.10% | |||||||||
Approved return on equity in May 2021 cost of capital application (in percent) | 8.85% | |||||||||
Term for the cost of capital proceeding | 3 years | |||||||||
Revenue impact due to lower cost of debt | $ 6,400,000 | |||||||||
Triggers for the WCMA adjustment, impact of 103 Basis Point increase in Moody's Rate (in percent) | 0.01397 | 0.01028 | ||||||||
Requested return on equity (in percent) | 9.36% | |||||||||
GSWC | Cost of capital proceeding | Subsequent Event | ||||||||||
Regulatory matters: | ||||||||||
Approved return on equity in May 2021 cost of capital application (in percent) | 9.36% | |||||||||
Requested return on equity (in percent) | 10.06% | |||||||||
BVES | ||||||||||
Regulatory matters: | ||||||||||
Regulatory asset-CEMA | 500,000 | $ 500,000 | $ 0 | |||||||
Regulatory Asset -incremental vegetation management costs | 10,900,000 | 10,900,000 | ||||||||
Regulatory asset- wildfire mitigation plans (WMP) | 5,500,000 | 5,500,000 | ||||||||
Regulatory asset CEMA - Storm | 1,300,000 | 1,300,000 | ||||||||
2022/2023 general rate case memorandum accounts (unbilled revenue) | GSWC | ||||||||||
Regulatory matters: | ||||||||||
Net regulatory Assets | $ 55,140,000 | $ 55,140,000 | 0 | |||||||
Amortization period | 36 months | 36 months | ||||||||
Water revenue adjustment mechanism, net of modified cost balancing account | ||||||||||
Regulatory matters: | ||||||||||
Increase (decrease) in other regulatory assets | $ (9,800,000) | $ 34,900,000 | ||||||||
Regulatory asset recovery periods | 24 months | |||||||||
Water revenue adjustment mechanism, net of modified cost balancing account | GSWC | ||||||||||
Regulatory matters: | ||||||||||
Net regulatory Assets | $ 46,597,000 | $ 46,597,000 | 31,803,000 | |||||||
Commercial paper, term | 90 days | |||||||||
Excess deferred income taxes | ||||||||||
Regulatory matters: | ||||||||||
Regulatory asset not accruing carrying costs | $ 74,400,000 | 74,400,000 | ||||||||
Excess deferred income taxes | GSWC | ||||||||||
Regulatory matters: | ||||||||||
Net regulatory Assets | (70,515,000) | (70,515,000) | (71,870,000) | |||||||
Derivative instrument memorandum account (Note 5) | ||||||||||
Regulatory matters: | ||||||||||
Regulatory asset not accruing carrying costs | 1,500,000 | 1,500,000 | ||||||||
Derivative instrument memorandum account (Note 5) | BVES | ||||||||||
Regulatory matters: | ||||||||||
Net regulatory Assets | (1,525,000) | (1,525,000) | $ (11,847,000) | |||||||
Pension Costs and Other Postretirement Benefit Costs [Member] | ||||||||||
Regulatory matters: | ||||||||||
Regulatory asset not accruing carrying costs | 2,600,000 | 2,600,000 | ||||||||
Modified Cost Balancing account ("MCBA") | GSWC | ||||||||||
Regulatory matters: | ||||||||||
Net regulatory Assets | (4,600,000) | (4,600,000) | ||||||||
Water Revenue Adjustment Mechanism ("WRAM") | GSWC | ||||||||||
Regulatory matters: | ||||||||||
Net regulatory Assets | $ 51,200,000 | $ 51,200,000 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | $ 77,667 | $ (25,454) |
GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | 60,866 | (26,574) |
GSWC | Other regulatory liabilities | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | (280) | (9,949) |
BVES | Other regulatory liabilities | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | (8,180) | (8,005) |
2022/2023 general rate case memorandum accounts (unbilled revenue) | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | 55,140 | 0 |
Water revenue adjustment mechanism, net of modified cost balancing account | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | 46,597 | 31,803 |
COVID-19 memorandum accounts | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | 3,543 | 3,478 |
Excess deferred income taxes | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | (70,515) | (71,870) |
Other regulatory assets | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | 26,381 | 19,964 |
Other regulatory assets | BVES | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | 10,136 | 7,965 |
Derivative instrument memorandum account (Note 5) | BVES | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | (1,525) | (11,847) |
Wildfire mitigation and other fire prevention related costs memorandum accounts | BVES | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Net regulatory Assets | $ 16,370 | $ 13,007 |
Earnings per Share_Capital St_3
Earnings per Share/Capital Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Capital stock | |||||
Options outstanding (in shares) | 0 | 0 | 0 | 0 | |
Issuances of Common Shares under stock-based compensation plans (in shares) | 18,351 | 24,612 | |||
Other financing activities | $ (913) | $ (1,236) | |||
Dividends paid | $ 45,294 | $ 41,664 | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.4300 | $ 0.3975 | $ 1.2250 | $ 1.1275 | |
Parent Company | |||||
Capital stock | |||||
Dividends paid | $ 15,900 | $ 14,700 | $ 45,300 | $ 41,700 | |
GSWC | |||||
Capital stock | |||||
Issuances of Common Shares under stock-based compensation plans (in shares) | 1 | 1 | |||
Other financing activities | $ (835) | (1,134) | |||
Dividends paid | $ 16,000 | 55,400 | $ 27,000 | ||
Issuance of common share to parent | $ 10,000 | $ 10,000 | |||
ASUS | |||||
Capital stock | |||||
Dividends paid | $ 14,700 | ||||
Restricted Stock | |||||
Capital stock | |||||
Restricted stock units outstanding (in shares) | 106,879 | 96,629 | 106,879 | 96,629 |
Earnings per Share_Capital St_4
Earnings per Share/Capital Stock - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic: | ||||||||
Net income | $ 31,565 | $ 38,521 | $ 34,407 | $ 25,654 | $ 19,951 | $ 14,162 | $ 104,493 | $ 59,767 |
Less: Distributed earnings to common shareholders | 15,900 | 14,690 | 45,294 | 41,664 | ||||
Less: Distributed earnings to participating securities | 46 | 38 | 124 | 104 | ||||
Undistributed earnings | 15,619 | 10,926 | 59,075 | 17,999 | ||||
Undistributed earnings allocated to common shareholders | 15,574 | 10,897 | 58,913 | 17,955 | ||||
Undistributed earnings allocated to participating securities | 45 | 29 | 162 | 44 | ||||
Common shareholders earnings, basic | $ 31,474 | $ 25,587 | $ 104,207 | $ 59,619 | ||||
Weighted average Common Shares outstanding, basic (in shares) | 36,977 | 36,958 | 36,974 | 36,953 | ||||
Basic earnings per Common Share (in dollars per share) | $ 0.85 | $ 0.69 | $ 2.82 | $ 1.61 | ||||
Diluted: | ||||||||
Common shareholders earnings, basic | $ 31,474 | $ 25,587 | $ 104,207 | $ 59,619 | ||||
Undistributed earnings for dilutive stock-based awards | 45 | 29 | 162 | 44 | ||||
Total common shareholders earnings, diluted | $ 31,519 | $ 25,616 | $ 104,369 | $ 59,663 | ||||
Weighted average Common Shares outstanding, basic (in shares) | 36,977 | 36,958 | 36,974 | 36,953 | ||||
Stock-based compensation (in shares) | 94 | 84 | 90 | 81 | ||||
Weighted Average Number of Diluted Shares (in shares) | 37,071 | 37,042 | 37,064 | 37,034 | ||||
Diluted earnings per Common Share (in dollars per share) | $ 0.85 | $ 0.69 | $ 2.82 | $ 1.61 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) MWh | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
BVES | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Description of derivative activity volume | MWh | 715,221 | |||||
Commodity Contract | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | $ (1,500) | |||||
Commodity Contract | BVES | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | $ 1,525 | $ 4,657 | $ 11,847 | $ 7,569 | $ 8,114 | $ 4,441 |
Minimum | Commodity Contract | BVES | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Term of derivative contract | 3 years | |||||
Maximum | Commodity Contract | BVES | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Term of derivative contract | 5 years |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Fair Value (Details) - Commodity Contract - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at end of the period | $ (1,500) | $ (1,500) | ||
BVES | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of the period | 4,657 | $ 8,114 | 11,847 | $ 4,441 |
Unrealized (losses) gains on purchase power contracts | (3,132) | (545) | (10,322) | 3,128 |
Fair value at end of the period | $ 1,525 | $ 7,569 | $ 1,525 | $ 7,569 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Mutual Funds | Fair Value, Inputs, Level 1 | ||
Fair value of financial instruments | ||
Long-term debt-GSWC | $ 29.6 | $ 27.5 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Outstanding Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair value of financial instruments | ||
Unamortized Debt Issuance Expense | $ 3,200 | $ 3,400 |
Reported Value Measurement | ||
Fair value of financial instruments | ||
Long-term Debt, Fair Value | 579,047 | 450,373 |
Estimate of Fair Value Measurement | ||
Fair value of financial instruments | ||
Long-term Debt, Fair Value | 523,698 | 424,151 |
GOLDEN STATE WATER COMPANY | ||
Fair value of financial instruments | ||
Unamortized Debt Issuance Expense | 3,000 | 3,200 |
GOLDEN STATE WATER COMPANY | Reported Value Measurement | ||
Fair value of financial instruments | ||
Long-term Debt, Fair Value | 544,047 | 415,373 |
GOLDEN STATE WATER COMPANY | Estimate of Fair Value Measurement | ||
Fair value of financial instruments | ||
Long-term Debt, Fair Value | $ 492,499 | $ 391,198 |
Income Taxes_ (Details)
Income Taxes: (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
GSWC | ||||
Effective income tax rate | ||||
ETRs ( as a percent) | 24.90% | 25.50% | 25.30% | 25.20% |
Parent | ||||
Effective income tax rate | ||||
ETRs ( as a percent) | 23.20% | 24.60% | 24.30% | 24.10% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Net Periodic Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Components of Net Periodic Benefits Cost: | ||||
Regulatory adjustments - deferred | $ (86,070) | $ (14,065) | ||
Pension Benefits | ||||
Components of Net Periodic Benefits Cost: | ||||
Service cost | $ 705 | $ 1,411 | 2,397 | 4,233 |
Interest cost | 2,581 | 1,850 | 7,607 | 5,550 |
Expected return on plan assets | (2,617) | (3,291) | (7,863) | (9,873) |
Amortization of prior service cost | 110 | 109 | 326 | 327 |
Amortization of actuarial (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefits costs under accounting standards | 779 | 79 | 2,467 | 237 |
Regulatory adjustments - deferred | (27) | 0 | (211) | 0 |
Total expense (benefit) recognized, before surcharges and allocation to overhead pool | 752 | 79 | 2,256 | 237 |
Other Postretirement Benefits | ||||
Components of Net Periodic Benefits Cost: | ||||
Service cost | 33 | 30 | 99 | 96 |
Interest cost | 26 | 13 | 77 | 45 |
Expected return on plan assets | (119) | (147) | (358) | (441) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial (gain) loss | (242) | (478) | (724) | (1,302) |
Net periodic benefits costs under accounting standards | (302) | (582) | (906) | (1,602) |
Regulatory adjustments - deferred | 0 | 0 | 0 | 0 |
Total expense (benefit) recognized, before surcharges and allocation to overhead pool | (302) | (582) | (906) | (1,602) |
SERP | ||||
Components of Net Periodic Benefits Cost: | ||||
Service cost | 312 | 298 | 936 | 894 |
Interest cost | 411 | 256 | 1,233 | 768 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial (gain) loss | (8) | 145 | (24) | 435 |
Net periodic benefits costs under accounting standards | 715 | 699 | 2,145 | 2,097 |
Regulatory adjustments - deferred | 0 | 0 | 0 | 0 |
Total expense (benefit) recognized, before surcharges and allocation to overhead pool | $ 715 | $ 699 | $ 2,145 | $ 2,097 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Increase (Decrease) in Regulatory Assets and Liabilities | $ 86,070 | $ 14,065 | ||
GSWC | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Increase (Decrease) in Regulatory Assets and Liabilities | 81,854 | 12,549 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 2,900 | |||
Increase (Decrease) in Regulatory Assets and Liabilities | $ 27 | $ 0 | 211 | 0 |
Pension Benefits | GSWC | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Regulatory adjustment — deferred | (1,138) | (1,138) | ||
Pension Benefits | BVES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Regulatory adjustment — deferred | $ (205) | $ (205) | ||
Pension Benefits | Water: | GSWC | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Increase (Decrease) in Regulatory Assets and Liabilities | $ 27 | $ 211 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) item | |
ASUS | Minimum | |
Loss Contingencies [Line Items] | |
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 15 years |
ASUS | Maximum | |
Loss Contingencies [Line Items] | |
Period of Fixed Price Contracts to Operate and Maintain Water Systems at Various Military Bases | 50 years |
Environmental Clean-Up and Remediation | GOLDEN STATE WATER COMPANY | |
Loss Contingencies [Line Items] | |
Number of plant facilities | item | 1 |
Environmental Remediation Expense | $ 6.3 |
Amount spent in clean-up and remediation activities | 1.5 |
Accrued liability for the estimated additional cost to complete the clean-up at the site | $ 1.3 |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 item segment | |
GSWC | |
Details of reportable segment | |
Number of reportable segments | item | 1 |
Parent Company | |
Details of reportable segment | |
Number of reportable segments | segment | 3 |
Business Segments - Schedule of
Business Segments - Schedule of Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Details of reportable segment | |||||
Operating revenues | $ 151,696 | $ 134,984 | $ 470,519 | $ 366,161 | |
Operating income (loss) | 51,751 | 40,340 | 161,861 | 99,022 | |
Interest expense (income), net | 9,566 | 6,664 | 26,108 | 17,859 | |
Net property, plant and equipment | 1,850,471 | 1,718,152 | 1,850,471 | 1,718,152 | $ 1,753,766 |
Depreciation and amortization | 10,184 | 10,117 | 31,645 | 30,402 | |
Income tax expense | 9,547 | 8,360 | 33,503 | 19,026 | |
Capital additions | 47,482 | 45,504 | 136,131 | 122,056 | |
AWR | Intersegment Eliminations | |||||
Details of reportable segment | |||||
Operating revenues | 0 | 0 | 0 | 0 | |
Operating income (loss) | 255 | (1) | 218 | (6) | |
Interest expense (income), net | 1,637 | 711 | 4,389 | 1,272 | |
Net property, plant and equipment | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Income tax expense | (559) | (296) | (1,586) | (641) | |
Capital additions | 0 | 0 | 0 | 0 | |
GOLDEN STATE WATER COMPANY | |||||
Details of reportable segment | |||||
Operating revenues | 116,231 | 100,799 | 345,851 | 265,561 | |
Operating income (loss) | 43,243 | 32,451 | 134,006 | 77,161 | |
Net property, plant and equipment | 1,696,923 | 1,696,923 | $ 1,616,718 | ||
Depreciation and amortization | 8,610 | 8,475 | 26,890 | 25,573 | |
Income tax expense | 8,830 | 6,831 | 29,674 | 14,623 | |
GOLDEN STATE WATER COMPANY | Water: | |||||
Details of reportable segment | |||||
Operating revenues | 116,231 | 100,799 | 345,851 | 265,561 | |
Public Utilities Property Plant and Equipment Depreciation on Transportation Equipment | 212 | ||||
GOLDEN STATE WATER COMPANY | Reportable Legal Entities | Water: | |||||
Details of reportable segment | |||||
Operating revenues | 116,231 | 100,799 | 345,851 | 265,561 | |
Operating income (loss) | 43,243 | 32,451 | 134,006 | 77,161 | |
Interest expense (income), net | 6,775 | 5,625 | 18,784 | 16,088 | |
Net property, plant and equipment | 1,696,923 | 1,584,888 | 1,696,923 | 1,584,888 | |
Depreciation and amortization | 8,610 | 8,475 | 26,890 | 25,573 | |
Income tax expense | 8,830 | 6,831 | 29,674 | 14,623 | |
Capital additions | 37,349 | 40,684 | 113,921 | 107,668 | |
BVES | Electric: | |||||
Details of reportable segment | |||||
Operating revenues | 8,956 | 8,919 | 30,688 | 29,028 | |
BVES | Reportable Legal Entities | Electric: | |||||
Details of reportable segment | |||||
Operating revenues | 8,956 | 8,919 | 30,688 | 29,028 | |
Operating income (loss) | 2,049 | 2,337 | 7,783 | 7,973 | |
Interest expense (income), net | 760 | 355 | 1,987 | 763 | |
Net property, plant and equipment | 137,299 | 115,379 | 137,299 | 115,379 | |
Depreciation and amortization | 776 | 709 | 2,283 | 2,049 | |
Income tax expense | (154) | 478 | 794 | 1,645 | |
Capital additions | 9,947 | 4,711 | 20,985 | 13,485 | |
ASUS | Reportable Legal Entities | Contracted services: | |||||
Details of reportable segment | |||||
Operating revenues | 26,509 | 25,266 | 93,980 | 71,572 | |
Operating income (loss) | 6,204 | 5,553 | 19,854 | 13,894 | |
Interest expense (income), net | 394 | (27) | 948 | (264) | |
Net property, plant and equipment | 16,249 | 17,885 | 16,249 | 17,885 | |
Depreciation and amortization | 798 | 933 | 2,472 | 2,780 | |
Income tax expense | 1,430 | 1,347 | 4,621 | 3,399 | |
Capital additions | 186 | 109 | 1,225 | 903 | |
Golden State Water Company and Bear Valley Electric Service Inc. | |||||
Details of reportable segment | |||||
Public Utilities Property Plant and Equipment Depreciation on Transportation Equipment | $ 160 | $ 97 | $ 683 | $ 286 |
Business Segments - Schedule _2
Business Segments - Schedule of PPE (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Segment Reporting [Abstract] | |||
Total net property, plant and equipment | $ 1,850,471 | $ 1,753,766 | $ 1,718,152 |
Other assets | 354,758 | 264,423 | |
Total Assets | $ 2,205,229 | $ 2,034,374 | $ 1,982,575 |